No. H234/05
For release November 17, 2005
MONTREAL - Funding for a new project in Quebec under Transport Canada's Freight Incentives Program was announced today by Transport Minister Jean-C. Lapierre.
The Government of Canada is investing $215,500 in Chemin de fer de la Matapédia et du Golfe inc. to purchase and install 20 Portec Rail Trackside Lubricators with Kelsan's Keltrack Friction Modifier.
"This announcement is great news for the Province of Quebec," said Mr. Lapierre. "This project will enable the rail systems in the province to become more sustainable by using new technologies that save on fuel and produce less greenhouse gas emissions."
The trackside lubricators will dispense friction modifier to reduce curving and rolling resistance, which will lead to lower fuel consumption and reduced greenhouse gas emissions. This project will increase fuel savings and will lead to lateral load reductions.
"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
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BACKGROUNDERFREIGHT 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
