No. H232/05
For release November 17, 2005
WINNIPEG - Funding for a new project in Manitoba under Transport Canada's
Freight Incentives Program was announced today by Reg Alcock, President of the
Treasury Board and Minister responsible for the Canadian Wheat Board, on behalf
of Transport Minister Jean-C. Lapierre.
The Government of Canada is investing $474,000 in the Winnipeg Airports
Authority Inc.'s project to purchase aircraft gate technologies.
"Today's funding will enable Winnipeg Airports Authority Inc. to replace air
units that in some cases are 15-to-30 years old," said Mr. Alcock. "This is an opportunity for the airport to
receive funding not only to upgrade its systems for efficiency's sake, but to
choose more environmentally friendly ways of doing so."
Winnipeg Airports Authority Inc. will receive $474,000 in funding to purchase
six Electronic Ground Power Systems and Electronic Preconditioned Air Units for
its aircraft gates. This project will replace diesel portable ground units and
portable onboard preconditioned air units currently in use with electric
systems. These changes will result in significant reductions of greenhouse
gases.
"Today's announcement will enable companies in various modes of transportation
to be more environmentally friendly," said Mr. Lapierre. "The selected projects
will result in a significant reduction of greenhouse gas emissions for the
freight companies involved."
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
eligible applicants to purchase and install efficiency-enhancing technologies.
The program began accepting its first round of proposals in May 2004. This is
the second round of funding under the current program authority. The deadline to
apply for the next round of Freight Incentives Program funding is May 31, 2006.
This initiative was announced as part of the 2002 Climate Change Plan for
Canada.
A backgrounder with more information on Transport Canada's Freight Incentives
Program is attached.
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Contacts:
Mylène Dupéré
Press Secretary
Office of the Minister, Ottawa
(613) 991-0700
Chris Krepski
Communications
Transport Canada, Ottawa
(613) 993-0055
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.
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BACKGROUNDER
FREIGHT INCENTIVES PROGRAM
On August 12, 2003, the Government of Canada announced that it would invest $1 billion towards the implementation of the 2002 Climate Change Plan for Canada. This investment is part of the Budget 2003 allocation and builds on the $1.7 billion the government has invested in reducing greenhouse gas emissions over the past five years. Part of this investment is funding the four-year, $5-million Freight Incentives Program.
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 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 annually until 2006, and projects can last up to a maximum of two years. All projects must be completed by March 31, 2007. The deadline to apply for the next round of Freight Incentives Program funding is May 31, 2006.
The program funds the purchase and installation of greenhouse gas reduction technologies 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.
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 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 the 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.
November 2005
