May 31, 2004

Incentive program offers fleet managers $3,000 toward purchase of natural gas vehicles

OTTAWA, ONT-A pilot program will encourage managers of Canada's on-road fleets to choose vehicles that run on natural gas instead conventional gasoline, by offering a $3,000 incentive toward the purchase price of a natural gas vehicle. Vehicles that use natural gas produce 21% percent fewer greenhouse gas (GHG) emissions than those fuelled by conventional gasoline. The $1.4-million Natural Gas for Vehicles Market Transformation Pilot Project is being funded by Natural Resources Canada (NRCan) and implemented by the Canadian Natural Gas Vehicles Alliance (CNGVA). The initiative is targeted at urban areas in Ontario, Alberta and British Columbia. It will measure market activity in these regions and single out top-selling models. NRCan and the CNGVA will also examine ways to boost the market availability of natural gas vehicles during the period of the pilot project. Other goals of the project include investigating other issues such as a made-in-Canada emission verification system and the regulation of modified natural gas vehicles, and determining how to create and develop a successful program over the long term. The Natural Gas for Vehicles Market Transformation Pilot Project is the first initiative to be funded under the $9.9-million Natural Gas for Vehicles measure announced in the 2003 federal budget.
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