This consultation was open from:
September 6, 2017
to October 6, 2017
Decision summary
We're providing incentives to eligible businesses that want to buy low-carbon commercial vehicles and technologies to reduce emissions. Our goal is to reduce greenhouse gas emissions from the movement of goods and non-passenger related services by encouraging a shift towards low-carbon fuels and emission reducing technologies.
Decision details
Decision of policy
Following a period of 30 days of public consultation, six changes of note were made on December 14, 2017 to the final program design to address public comments. These are:
- Retroactive eligibility to September 1, 2017;
- Provision of an early adopter bonus of an additional 10% on purchases made before March 31, 2018;
- Lower the eligible model year from 2014 to 2010 for vehicle conversions;
- Include funding for all classes of electric vehicles;
- Increase incentives for long combination vehicle dual fuel conversions; and
- Increase funding amounts for electric auxiliary power units (APUs).
Comment(s) received on the proposal: 54
Public Consultation on the proposal for this decision was provided for 30 Days, from September 06, 2017 to October 06, 2017.
As a result of public consultation on the proposal, the Ministry received a total of 54 comments: 30 comments were received in writing and 24 were received online.
Additionally, a copy of all comments are available for public viewing by contacting the Contact person listed in this notice.
Effects of consultation
Effect(s) of consultation on this decision
Comments were received from a varied and representative sample of interested stakeholders. These include members of the public, businesses, government, industry associations and other non-governmental organizations. The majority of comments were positive and supportive of the draft program design.
The majority of requested changes concerned raising incentive values, expanding applicant, vehicle and device eligibility, and the inclusion of funding for fueling infrastructure.
Effects of comments
All comments that fell within the scope of the program were taken into consideration. There were six proposed changes which the ministry has implemented in the final program design. These are:
- Retroactive eligibility to September 1, 2017;
- Provision of an early adopter bonus of an additional 10% on purchases made before March 31, 2018;
- Lower the eligible model year from 2014 to 2010 for vehicle conversions;
- Include funding for all classes of electric vehicles;
- Increase incentives for long combination vehicle dual fuel conversions; and
- Increase funding amounts for electric auxiliary power units (APUs).
The remaining comments, although thoughtful and well researched, did not warrant inclusion into the current program design at this time. Reasons for exclusion from further program design at this time include:
- Falling outside the scope of the program; and
- Not aligning with the desired goals and outcomes of the program, or not in line with the vision of the program.
A description of the most prevalent comments as follows:
Comment: Lower vehicle weight requirements under eligibility to include funding for class 2 vehicles.
Response: This is not necessary under the GCVP as MTO currently provides funding for class 1 and 2 electric vehicles under the Electric Vehicle Incentive Program (EVIP).
Comment: Include funding for fueling and charging infrastructure.
Response: This is being addressed through other Climate Change Action Plan initiatives. MTO currently provides funding for electric vehicle chargers through the Electric Vehicle Chargers Ontario (EVCO) program. There is a separate commitment to establish a network of natural gas and low- or zero carbon fuelling stations.
Comment: Include funding for propane fueled vehicles.
Response: MTO has undertaken extensive research on propane as an alternative fuel and had multiple consultations with stakeholders from the propane industry. Per available modelling, propane yields minimal greenhouse gas (GHG) reductions when compared to conventional diesel vehicles.
Additionally, one of the guiding principles of the GCVP is to fund fuels with the highest GHG reduction potential in each vehicle class. In the classes in which propane vehicles are most commonly used, electric vehicles are also commercially available and offer a greater GHG reduction potential.
MTO will consider a pilot project to validate the GHG reduction potential of propane for potential inclusion in future years of the program if the GHG reduction potential is found to be sufficiently greater than what was originally modelled.
Comment: Include funding for low rolling resistance and single-wide tires, and tire inflation systems.
Response: The decision not to fund these technologies is based on considerations such as potential for fuel savings, relative incremental costs, product commercial availability and certification by the EPA – SmartWay Technology Program or similar programs.
Tires, including low rolling resistance and single-wide, as well as tire systems were not found to provide sufficient fuel saving potential to merit inclusion in the program.
Comment: Increase incentive amounts for specific alternative fuel vehicles. (Each sector advocated for greater incentive amounts for their specific technologies.)
Response: The current proposal reflects the program priorities. The proposed levels are designed to encourage uptake and achieve maximum cost-effective GHG benefits. Greater incentives are offered for technologies with greater potential for GHG reductions.
MTO has done extensive research and consultations to arrive at the current incentive amounts, which align with similar programs in other jurisdictions. Support for the current incentive structure was voiced by key industry stakeholders.
MTO will explore the option to adjust incentive levels in subsequent years of the program based on review of actual uptake, cost of vehicles, continued stakeholder interest and other factors.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
Connect with us
Contact
Katerina Minaeva
777 Bay Street
Suite 700
Toronto,
ON
M7A 2J8
Canada
Original proposal
Proposal details
Updates
From 2008-2010, the Ministry of Transportation offered a pilot Green Commercial Vehicle Program. The program provided funding incentives to install anti-idling devices on trucks and to buy low-carbon truck platforms. Through the Climate Change Action Plan, a modernized Green Commercial Vehicle Program would build on this previous experience and further drive adoption of fuel saving technologies and alternative fuels in the commercial transportation sector.
Description of policy
Ontario’s Climate Change Action Plan (CCAP) was released on June 8, 2016 and includes a commitment for a new Green Commercial Vehicle Program (GCVP), which would provide incentives to eligible businesses that want to buy low-carbon commercial vehicles and technologies to reduce emissions, including electric and natural gas-powered trucks, aerodynamic devices, anti-idling devices, and trailer refrigeration units. Development of the GCVP is being led by Ontario Ministry of Transportation (MTO), with support from partners, including the Ministries of Economic Development and Growth (MEDG), Environment and Climate Change (MOECC) and Energy (ENERGY).
The objective of the GCVP is to reduce greenhouse gas emissions from the movement of goods and non-passenger related services by encouraging a shift towards low-carbon fuels and technologies to reduce emissions. The GCVP is envisioned as a rebate-based program predominantly for the trucking sector, where rebates would be provided upon proof of purchase. Incentive amounts would be based on 15%-50% of the incremental cost compared to an equivalent diesel/gasoline vehicle, or the total cost of a device/technology.
The program would provide incentives to encourage the purchase/lease of alternative fuel vehicles including:
- Fully electric vehicles.
- Those that operate using only natural gas or diesel/natural gas dual fuel configurations;
- Conversions of existing conventional fuel vehicles to natural gas; and
The program would also provide incentives to encourage the purchase of technologies to improve fuel efficiency:
- Aerodynamic devices, such as boat tails or side skirts;
- Anti-idling devices, such as auxiliary power units or cab heaters and coolers; and
- Trailer refrigeration units.
In addition to the general GCVP funding stream detailed in the program guide, a second Commercial Transportation Innovation Pilot funding stream will support innovative projects and technologies which are not yet widely commercially available but have the potential for significant reductions in GHG emissions today and in the future.
Eligible projects could include:
- Testing of fuels and/or technologies that are not yet commercially available, or existing fuels/technologies which currently have low to non-existent market presence;
- Testing of innovative fuels/technologies that support commercial vehicles providing passenger-related services (e.g., electric transit buses, CNG coach buses, etc.);
- Testing of fuelling/charging infrastructure as well as vehicles;
Purpose of policy
The GCVP is motivated by recognition of the fact that, while vital to Ontario’s economy, commercial transportation is a significant contributor to Ontario’s transportation GHG emission profile. A reduction in the sector’s GHG emission footprint and an improvement in the fuel efficiency of vehicles used would have a meaningful contribution to achieving the province’s climate change targets. The program is therefore focused on achieving outcomes that contribute to an increased and accelerated adoption of alternative fuel vehicles and fuel saving technologies and a resulting reduction in GHG emissions. The three main outcomes envisioned for the program are:
- Wider adoption of vehicles and technologies that have lower levels of GHG emissions;
- An industry shift to incorporating lower emission vehicles into commercial fleets; and
- A market evolution towards offering more and lower priced alternative fuel vehicles and fuel efficient technologies.
Other information
Public consultation
This proposal was posted for a 30 day public review and comment period starting September 06, 2017. Comments were to be received by October 06, 2017.
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
We invite you to (1) review the attached draft program guide that summarizes the proposed program parameters, protocols and requirements, and then (2) review the discussion questions below and provide us with any specific comments on some or all of these questions and/or more general comments about the contents of the program guide.
The input received will help further refine the program’s design and ensure that it both achieves its objectives and meets the needs of all program participants.
Program design discussion questions
- Please comment on the selection of alternative fuel vehicles, and fuel saving devices that have been identified as eligible for funding.
- Will the incentive values proposed support and promote adoption? How appropriate are the percentages and funding caps proposed for the incremental costs for each supported vehicle fuel type or fuel saving device?
- Are there any potential barriers to successful uptake of the program as designed?
Application and funding process discussion questions
- Are the eligibility requirements realistic and achievable?
- Is a process where dealer/vendors apply for the rebate on behalf of purchasers preferred? Are there any issues with this approach?
- Is there another funding mechanism that you think would be better suited to fund vehicles and devices?
- Are there any approaches that could be used to streamline or simplify the process of determining eligibility and incentive amounts for specific models of vehicles?
Data collection discussion questions
Participation in a data collection program is a mandatory requirement for funding and a sample of applicants may be required to install telematics devices.
- Where fleet vehicles already have telematics devices on board, could this electronic data be shared, both for baseline and funded vehicles, in order to facilitate documentation of GHG reductions?
- Are there any considerations or concerns regarding data privacy?
- Should other types of data be collected in the context of GHG emission reductions?
Innovation pilot discussion questions
- What type of pilot projects could be funded under this category?
- What are some future trends that you believe will have an impact on the commercial transportation sector?
In accordance with the Ministry of Transportation’s Statement of Environmental Values, the Ministry believes that public consultation is critical to sound environmental decision making. The public is invited to submit written comments regarding the proposal to the address listed below (please quote the Environmental Registry number when submitting comments. Additionally, you may submit your comments online.
For further technical information contact:
Stefan Babut
Policy Advisor
Ministry of Transportation
Policy and Planning Division
Transportation Policy Branch
Commercial and Advanced Transportation Office
Phone: (416) 585-7189
All comments will be considered as part of the decision-making by the Ministry if they:
- are submitted online through this EBR posting or submitted in writing with the EBR Registry number clearly referenced; and
- are received by the Contact person within the specified comment period.
Please Note: No acknowledgment or individual response will be provided to those who comment. All comments and submissions received will become part of the public record.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
Comment
Commenting is now closed.
This consultation was open from September 6, 2017
to October 6, 2017
Connect with us
Contact
Katerina Minaeva
777 Bay Street
Suite 700
Toronto,
ON
M7A 2J8
Canada
Comments received
Through the registry
24By email
0By mail
30