SURREY, BC, March 1, 2013 /CNW/ - Communities around the province will soon see more natural gas-powered vehicles on the road after FortisBC awarded approximately $6 million in incentives to transportation operators to purchase compressed natural gas (CNG)-fueled vehicles for their fleets.
"These organizations have shown a commitment to choosing
natural gas as a transportation fuel solution," said Doug Stout, vice
president of energy solutions and external relations at FortisBC.
"Building on the initial successes we've had with natural gas vehicles and
the benefits they bring to the environment and our gas customers, this program
is making widespread use of natural gas for transportation a reality."
The program was made possible following the creation of the
Government of B.C.'s Greenhouse Gas Reduction regulation.
"The government of B.C. is committed to ensuring natural gas
is a significant part of the transportation sector because it is cheaper,
cleaner and abundant in B.C.," said Transportation and Infrastructure
Minister Mary Polak. "This new program will help encourage more transportation
companies to use natural gas as the transportation fuel choice of the
future."
A total of approximately $6 million for CNG vehicles was awarded
to the following vehicle fleet operators:
·
BC Transit - $937,500
·
BFI Canada - $937,958
·
City of Vancouver -
$1,854,600
·
Cold Star Freight System
Inc. - $450,997
·
Emterra Environmental -
$745,500
·
School District No. 23
(Kelowna) - $67,893
·
Smithrite Disposal Ltd.
- $953,775
The incentives were granted through a public and transparent
selection process. The $6 million awarded is part of a $104.5 million program
announced in May 2012 to assist qualifying heavy-duty fleet operators to
purchase natural gas vehicles. The $104.5 million will help offset the cost of
switching fleets to natural gas, fund training and upgrades to facilities to
safely maintain natural gas vehicles, and to build CNG or liquid natural gas
(LNG) fuelling stations.
In addition to decreased greenhouse gas emissions and noise,
refuelling for CNG vehicles is estimated to be 25 to 50 per cent less expensive
than refuelling traditional diesel vehicles due to the current difference in
prices.
Under the program, FortisBC provides funding to offset a
percentage of the incremental capital cost between a qualifying natural gas vehicle
and the cost of an equivalent diesel vehicle. Depending on the agreement,
FortisBC could fund up to 75 per cent of the incremental cost of the natural
gas vehicles.
Rounds of funding will continue over the next four years, with the
next round beginning April, 2013. Eligible heavy-duty fleet operators can learn
more by emailing ngt@fortisbc.com to
receive updates or by visiting http://fortisbc.com/ngt.
FortisBC gas utility customers benefit from additional volumes of
natural gas for transportation moving through FortisBC's pipeline system.
Better year-round, utilization of FortisBC's infrastructure, especially during
the summer months when heating requirements are reduced, helps to keep natural
gas delivery rates low for all customers.
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