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Incentives and Funding

"Leadership Vehicles" are vehicles that, because of their fuel type and/or advanced technology, significantly reduce vehicle emissions and/or improve fuel economy. In addition, the Alternative Fuels Act required that as of April 1, 2004, where cost-effective and operationally feasible, most new vehicles purchased by the Government of Canada had to be capable of operating on alternative fuels.

In order to increase the proportion of Leadership Vehicles in the federal fleet, the Federal Vehicles Initiative Federal Vehicles Initiative (FVI) offered adveral departments and agencies that wished to acquire these vehicles. Using Leadershice and other support to fedip Vehicles instead of conventional vehicles significantly reduced the federal fleet's greenhouse gas emissions that contribute to climate change.

Leadership Vehicles acquired by departments with the assistance of the FVI had to meet certain criteria, including:

  • justified operational requirement to be met by the new vehicle
  • vehicle visibility
  • availability of alternative fuel
  • fleet composition
  • inter-fleet cooperation

Meeting these criteria ensured that environmental benefits were realized.

The FVI promoted the acquisition of Leadership Vehicles through sharing information and coordinating the efforts of federal fleet managers in planning their vehicle acquisitions.

E-85 Fuel Credit Initiative

E-85, a blend of 85 percent ethanol and 15 percent gasoline, can provide superior performance characteristics and burn more efficiently than gasoline. Moreover, the ethanol portion is renewable. The FVI promoted greater use and purchase of E-85 fuel by the federal fleet. In return for support from the FVI, federal departments set E-85 usage performance targets.

E-85 Fuel Infrastructure

Availability of alternative fuel infrastructure was one of the major obstacles to the widespread use of alternative fuel vehicles in the federal fleet. The FVI worked with other government departments and with municipal and provincial governments to determine locations for fuelling facilities. This initiative specifically supported the installation of the E-85 fuelling infrastructure for government.

Optimal usage of these facilities often required monitoring or inter-departmental/inter-governmental agreements. The FVI coordinated the development and implementation of such arrangements.

Demonstration Project Initiatives

Natural Resources Canada offered financial incentives to help implement new technologies and adopt new approaches to fleet management that benefited the environment and optimized fleet operations.