MTO discussion paper on electric vehicle incentive initiatives under the Climate Change Action Plan

Description of policy

The purpose of this discussion paper is to seek feedback on key program design questions regarding increasing the education, awareness and uptake of low-to zero-emission vehicles, specifically electric vehicles (EVs) . Actions that were identified in the June 2016 Ontario Climate Change Action Plan (CCAP) to be implemented by MTO include:

Incentives to encourage the purchase of EVs

• Maintaining incentives for EVs ($140 to $160 million)

Ensuring charging infrastructure is widely available

• Providing more EV charging stations (up to $80 million)

Increasing Public and Dealership Awareness

• EV educational campaigns
• Partner and dealership programs (up to $20 million)
• Private fleet awareness campaign

This discussion paper serves as the basis of MTO’s consultation on the above actions and contains key questions specific to each action. We invite you to provide us with your responses to any or all of them.

Purpose of policy

Ontario's CCAP, released on June 8, 2016, committed to creating a cleaner transportation sector in Ontario. The CCAP laid out actions to reduce emissions from the existing vehicle fleet on Ontario’s roads and actions to promote adoption of zero and low emissions vehicles now and in the future.

When designing incentive programs, the government is committed to ensuring its investments are providing good value to Ontarians. Ontario’s goal is to establish its EV programs such that it balances the differing needs and motivations of manufacturers, taxpayers and vehicles owners while also attempting to meet GHG emission reduction targets.

Through the CCAP, the government will be implementing a province-wide sales target for EVs and hydrogen vehicles. The underlying goal of this sales target and supporting incentive programs is the increased adoption of EVs in Ontario. Increased numbers of EVs is a driver behind reducing GHG emissions from the passenger vehicle sector of the transportation system.

Other information

To help guide the development and refinement of MTO’s EV programs, we are seeking feedback on the following key questions:

1. Electric Vehicle Incentive Program (EVIP)
   • What should the government tie the EV purchase incentives to (e.g., vehicle tailpipe GHG emissions, battery size, technology type, etc.) in order to support a significant growth in EV sales and GHG emissions reductions?
   • How should the government adjust the current 30 per cent Manufacturer’s Suggested Retail Price (MSRP) incentive cap and the $3000 cap on vehicles with an MSRP greater than $75,000 in order to promote EV sales and GHG emission reductions in a fiscally responsible manner (e.g. remove the cap? Relax the cap)?
     • Do you think these caps influence an EV buyer’s decision to purchase an EV or a specific type of EV?
   • How can the government adjust the Electric Vehicle Charging Incentive Program (EVCIP) to benefit even more EV owners?
2. Electric Vehicle Chargers Ontario Program (EVCO)
   • What program features (e.g., eligibility requirements, evaluation criteria, technical requirements) should be considered in a program to deploy charging stations at workplaces, multi-unit residential buildings, downtowns and town centres?
   • Specifically for multi-residential and workplaces:
     • Who are best positioned to implement the installation of charging stations?
     • How should funding for charging stations be structured and/or capped? What value(s) of cap(s) should be applied?
     • How can government best engage workplaces, condos and apartment boards to participate in the EVCO program?
   • How should government ensure that Local Distribution Companies are involved in EVCO applications?
   • What aspects of the first round of EVCO do you feel should be repeated or done differently?
3. Education and Awareness
   • EV Educational Campaigns
     • What are your current perceptions related to EVs? How can government help in improving perceptions related to EVs, and help consumers better understand the benefits of EVs?
     • What innovative education and/or awareness programs or policies, currently operating in other jurisdictions that provide support for the adoption of EVs, could be applied in Ontario?
     • Who should the government be partnering and collaborating with to deliver an EV educational campaign?
     • To increase education and awareness of the benefits of EVs, what forms of communication and key messages should the government consider to reach an audience beyond the EV community?
   • Partner and Dealership Programs
     • What are potential tools that can be used to increase the availability of EV models on the showroom floor, for test drives and for purchase at dealerships?
     • What supportive mechanisms and/or incentives should the government provide to EV salespeople and dealerships in order to increase EV sales?
   • Private Fleet Awareness Campaign
     • How can we effectively raise awareness of EVs and EV incentives to private fleets?
     • What elements should be included in a decision-making tool or cost calculator to help fleets consider purchasing an EV?

Public consultation

This proposal was posted for a 31 day public review and comment period starting October 14, 2016. Comments were to be received by November 14, 2016.

All comments received during the comment period are being considered as part of the decision-making process by the Ministry.

Please Note: All comments and submissions received have become part of the public record.

Other public consultation opportunities

In accordance with its Statement of Environmental Values, the Ministry of Transportation (MTO) believes that public consultation is critical to sound decision making. Manufacturers, taxpayers, vehicles owners and other interested groups and individuals across Ontario are invited to submit written comments regarding the attached discussion paper. Alternatively, you may submit your comments online. Please quote the Environmental Registry Number when submitting comments.

You will not receive a formal response to your comments, however, all comments received during the posting of this proposal will be taken into consideration.

If you have any questions, or would like to submit your comments, please do so within the public review and comment period to the individual listed under Contact. Additionally, you may submit your comments online.

For further technical information, contact:

Dale Marsden
Team Lead, Sustainable and Innovative Transportation
Ontario Ministry of Transportation
777 Bay Street, 30^th Floor
Toronto ON M7A 2J8
sustainabletransportation@ontario.ca
(844) 835-2348