No. H074/04 For release October 20, 2004 OTTAWA - Transport Minister Jean-C. Lapierre today announced funding for four new projects to help the freight transportation sector reduce the growth of greenhouse gas emissions. The $1,518,000 in funding comes from Transport Canada's Freight Incentives Program. "These projects 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." The four winning projects were proposed by Canadian National Railway, IDC Distribution Services Ltd., La Compagnie minière Québec Cartier, and the Société des Chemins de Fer du Québec inc. 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 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 and the wining projects is attached. -30- Contacts: Irène Marcheterre Director of Communications Office of the Minister, Ottawa (613) 991-0700 Jacques Gravel Communications Transport Canada, Ottawa (613) 990-6867 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 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. The four successful projects under the first round of funding of the Freight Incentives Program are: Locotrol Electronic Airbrake Distributed Power Systems Canadian National of Montreal, Quebec will receive $500,000 for a project to purchase and install six Locotrol Electronic Airbrake Distributed Power Systems on locomotives. Distributed power entails placing locomotives in the middle and/or end of the train to assist in pulling/pushing the cars. The Locotrol Distributed Power System provides the ability to control these 'helper' locomotives from the lead locomotive. The six locomotives will run on CN's subdivision between St. Romuald and Montreal East on the Ultramar train. This project has the potential to reduce greenhouse gas emissions by about 10 per cent on the specified subdivision. QES III Electronic Autostart System and QES III Excitation System La Société des Chemins de Fer du Québec inc. of Montreal, Quebec will receive $500,000 for the purchase and installation of two different technologies: the QES III Autostart system and QES III Excitation Systems. The Autostart System monitors the locomotive engine and automatically shuts down and restarts during idle periods. The QES Excitation System allows better engine management, thereby reducing greenhouse gas emissions and improving fuel consumption. The expected results are a reduction in fuel consumption and exhaust emissions. Railpower Hybrid Switching Locomotive - Green Kid IDC Distribution Services Ltd. of Vancouver, B.C. will receive $370,000 for the purchase of 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. IDC Distribution Services Ltd. has estimated that the use of a Green Kid will reduce their fuel consumption by as much as 57 per cent when compared with a traditional locomotive. Top of rail friction modifications system La Compagnie minière Québec Cartier of Port Cartier, Quebec will receive $147,500 for the purchase and installation of four top-of-rail systems on their existing locomotives. Top-of-rail systems involve applying a lubricant, which dissipates after use, to the top of both rails behind the last locomotive axle, to lower the wheel-to-rail friction of the following cars, thus reducing the energy required to pull the train. It is expected that the project will result in the reduction of emissions by as much as five per cent. October 2004
