No. H076/04 For release October 20, 2004 VANCOUVER - Industry Minister and Regional Minister for British Columbia David Emerson, on behalf of Transport Minister Jean-C. Lapierre, today announced $370,000 in funding for a new project to help the freight transportation sector reduce the growth of greenhouse gas emissions in the province of British Columbia. The funding comes from Transport Canada's Freight Incentives Program. "Projects announced under the program represent a wide range of initiatives within the freight sector to reduce greenhouse gas emissions using new technologies," said Mr. Lapierre. "All of the projects will result in a significant reduction of greenhouse gas emissions for the freight companies involved." IDC Distribution Services Ltd. of Vancouver B.C. will use the funds to purchase a Railpower Hybrid Switching Locomotive - Green Kid. The Green Kid locomotive will be used as a switching locomotive to transfer railcars between the common user storage tracks owned by the Fraser River Port Authority and the ramp tracks located on the facility. It is estimated that the use of a Green Kid will reduce fuel consumption by as much as 57 per cent compared with a traditional locomotive. "All Canadians have a role to play in addressing climate change," said Mr. Emerson. "The reduction in fuel consumption by locomotives at IDC Distribution Services Ltd. will contribute to Canada's efforts to reduce greenhouse gas emissions." The Freight Incentives Program is a four-year, $5-million program designed to encourage the adoption and use of technology and equipment that reduce greenhouse gas emissions cost-effectively in the rail, marine and air freight transportation sectors. To achieve this goal, the program provides funding to enable eligible applicants to purchase and install efficiency-enhancing technologies. The Freight Incentives Program began accepting its first round of proposals in May 2004. The program is part of $32.3 million allocated for the Commercial Transportation Energy Efficiency and Fuels Initiative announced on August 12, 2003. This initiative falls under the Climate Change Plan for Canada. Funding for these projects was provided for in the February 2003 federal budget and is therefore built into the existing financial framework. A backgrounder with more information on Transport Canada's Freight Incentives Program is attached. -30- Contacts: Irène Marcheterre Director of Communications Office of the Minister, Ottawa (613) 991-0700 Rod Nelson Communications Transport Canada, Vancouver (604) 666-1675 Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada. This news release may be made available in alternative formats for persons with visual disabilities. BACKGROUNDER FREIGHT INCENTIVES PROGRAM On August 12, 2003, the Government of Canada announced that it would invest $1 billion towards the implementation of the Climate Change Plan for Canada. This investment is part of the Budget 2003 allocation and builds on $1.7 billion the Government of Canada has invested in climate change over the past five years. Part of this investment is funding the four-year, $5-million Freight Incentives Program, a key component of the Freight Efficiency Program, which is part of the $32.3 million allocated for the Commercial Transportation Energy Efficiency and Fuels Initiative. The Freight Incentives Program is designed to encourage the adoption and use of technology and equipment that reduce greenhouse gas emissions cost-effectively in the rail, marine and air-freight transportation sectors. To achieve this goal, the program provides funding to enable eligible applicants to purchase and install efficiency-enhancing technologies. Preference will be given to technologies previously demonstrated under the Freight Sustainability Demonstration Program. Applications are accepted on an annual basis until 2006, and projects can last up to a maximum of two years. All projects must be completed by March 31, 2007. Annual application deadlines for the program are May 31, 2004, 2005 and 2006. The program is scheduled to end by March 31, 2007. The program funds the purchase and installation of greenhouse gas reduction technologies in the air, rail and marine freight transportation sectors, to a maximum of: 50 per cent of total eligible costs, $500,000 over a two-year period, and 50 units or 75 per cent of a company fleet, whichever is lowest. Funding from all federal government sources for any one project is limited to 50 per cent of total eligible costs. Total government assistance from all levels of government cannot exceed 100 per cent of total eligible costs. Applications are first screened by Transport Canada to ensure eligibility. To be eligible, applicants must: belong to a private Canadian air, marine or rail carrier enterprise, or a Canadian not-for-profit organization that provides air, marine or rail freight services; be planning a project that involves the purchase and installation of technology and equipment that reduce greenhouse gas emissions cost-effectively in the freight transportation sector; and demonstrate that at least 50 per cent of total eligible project costs will be secured from sources other than the Government of Canada. Applications that meet the program's eligibility criteria are evaluated based on the: degree to which the project's proposed technology has the potential to reduce greenhouse gas emissions effectively; degree to which the project will provide benefits other than greenhouse gas emission reduction, such as saving time, reducing operating costs or improving air quality; level of uncertainty or risk associated with implementation of the project and its benefits; degree to which project technology can be adopted by other organizations; degree to which project technology represents good value in terms of cost per tonne of reduced greenhouse gas emissions; and degree to which the applicant demonstrates experience and competence in establishing a work plan and schedule, and assigning resources to report results and control quality. Successful applicants are required to enter into a contribution agreement-a legal contract between the funding recipient and Transport Canada. The agreement clearly defines the nature and scope of work to be performed, and the maximum contribution to be made by the program. The agreement also specifies project milestones, anticipated results, payment schedules and financial reporting requirements. Applicants must identify all sources of project funding when the contribution agreement is negotiated. Applicants must also notify Transport Canada of any changes to funding prior to project completion. Recipients of funding are required to deliver a variety of project information to Transport Canada throughout the project's lifespan. October 2004
