No. H230/05
For release November 17, 2005
VANCOUVER - Funding for four new projects in British Columbia under Transport
Canada's Freight Incentives Program was announced today by David L. Emerson,
Minister of Industry and co-Senior Minister responsible for British Columbia, on
behalf of Transport Minister Jean-C. Lapierre.
The Government of Canada is investing $878,073 in these projects. The
organizations selected to receive the funding are BC Ferries, Canadian National,
Pioneer Rail Services Ltd., and the Southern Railway of British Columbia.
"The Government of Canada is committed to helping companies in the Province
of British Columbia make environmentally sound improvements to their
operations," said Mr. Emerson. "I applaud these companies for helping the
environment and I look forward to seeing the results of their projects."
"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 and the winning projects 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.
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 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.
The four successful projects in British Columbia under the second round of
funding of the Freight Incentives Program are:
Stellar Marine Electronic Speed Control 1000, Victoria, British Columbia
BC Ferries will receive $78,500 to purchase two Stellar Marine Electronic Speed
Control 1000 Systems. This technology uses precise electronic throttle controls
to time an engine and propeller to match ocean conditions. This project aims to
reduce fuel oil consumption by a minimum of four per cent, which translates into
an annual fuel saving of close to 428,500 litres.
Portec Rail Trackside Lubricators (dispensing Keltrack Top of Rail Friction
Modifier),
British Columbia (from Kamloops to Vancouver)
Canadian National will receive $220,000 to purchase and install 21 Portec Rail
Trackside Lubricators with Kelsan's Keltrack Friction Modifier. These 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 also reduce rail wear by 35 per cent and extend the
life of the rail clips, pads and ties by 30 per cent.
Railpower Hybrid Green Goat Locomotives,
Prince George, British Columbia
Pioneer Rail Services Ltd. will receive $427,000 to purchase two Railpower
Hybrid Green Goat Locomotives. By using a hybrid power design instead of the
conventional yard switch engine, the project team will eliminate engine idle
time and reduce greenhouse gas emissions by 60 to 90 per cent.
ZTR SmartStart Technology, New Westminster, British Columbia
The Southern Railway of British Columbia will receive $152,573 to purchase 18
ZTR SmartStart Systems. The systems will ensure that outfitted locomotives are
always in a "ready to operate" condition, while also minimizing idling time.
This project aims to save approximately 45 to 60 litres of fuel daily per
locomotive.
November 2005
