Automotive

Federal budget expected to offer subsidies for electric cars

  • Last Updated:
  • Oct 5th, 2019 10:39 pm
[OP]
Member
Sep 25, 2015
231 posts
250 upvotes
Toronto, ON

Federal budget expected to offer subsidies for electric cars


Environment and Climate Change Minister Catherine McKenna released the council’s report in Montreal, Que. on Thursday, saying the government is committed to increasing the availability of lower-emission transportation.


The federal government’s pre-election budget is expected to include subsidies for Canadians to purchase electric cars as part of Ottawa’s long-promised commitment to adopt a zero-emission vehicle strategy to reduce greenhouse-gas emissions.

Senior government officials confirmed to The Globe and Mail that next week’s budget will take action based on recommendations from an advisory council, which called for subsidies of up to $5,000 toward the purchase of an electric vehicle (EV) or plug-in hybrid, as well as additional funding for EV charging stations. Environment and Climate Change Minister Catherine McKenna released the council’s report in Montreal on Thursday, saying the government is committed to increasing the availability of lower-emission transportation.

The officials, who were granted anonymity because they were not authorized to speak publicly, declined to confirm details such as the precise size of any federal incentive. But one source said the government would not support tax breaks that apply to the purchase of the most expensive electric vehicles, which led to criticism of Ontario’s former incentive program.

The council recommended that any incentive be short-lived to account for expectations that the cost of electric cars will soon be more competitive with traditional vehicles. Currently, only Quebec and British Columbia offer EV subsidies; the Ontario government cancelled that province’s subsidy program last year. EVs run on battery only and are considered zero-emission vehicles, while the plug-in hybrids have a back-up gasoline engine that takes over when the battery runs down.

In a report to Ms. McKenna and Finance Minister Bill Morneau, the advisory council said EVs and plug-in hybrids “have quickly emerged as a viable alternative to gasoline or diesel vehicles,” but still require federal support to ensure broader appeal. In addition to the rebate, it recommended that Ottawa help fund a national network of charging stations, similar to the effort in Quebec, which now has 1,000 public charging outlets and is committed to having 2,000 by the end of 2020.

“Choosing a zero-emissions vehicle as their next car is a meaningful way that Canadians can have a positive environmental impact without major changes to their lifestyle,” said the panel, which was co-chaired by Montreal-based environmentalist Steven Guilbeault and Tamara Vrooman, chief executive at Vancity, a B.C. credit union.

Transportation Minister Marc Garneau in January announced targets to increase the sales of zero-emission vehicles – including EVs and hydrogen-powered cars – to 10 per cent of the market by 2025, 30 per cent in 2030, and 100 per cent by 2040. However, it has not proposed regulations to force manufacturers to meet those targets, as Quebec has and B.C. plans to adopt. Last year, 2.2 per cent of new vehicles sold in Canada were either EVs or plug-in hybrids, as sales more than doubled over the previous year, according to Electric Mobility Canada, an industry-backed organization.

The advisory council – which submitted its report to government last week – noted consumers face a $10,000 price gap between EV and a similar model with a gasoline or diesel engine. A $5,000 incentive would make “electric vehicles more affordable for middle- and lower-income Canadians,” the report said.

The previous Ontario government faced criticism because the incentive was being used to buy high-end luxury vehicles with purchase prices in the six figures. In response, the province limited the now-defunct program in 2018 to vehicles that cost $75,000 or less.

Quebec limits its subsidies to vehicles that cost $75,000 or less, while B.C.’s program applies to vehicles up to $77,000. Even though both thresholds represent prices that are out of reach of most Canadian consumers, the advisory council said the Quebec and B.C. limits “might serve as a basis” for a federal threshold.

A 2019 Nissan Leaf EV, one of the most popular models in Canada, starts at $36,798 before taxes. While EVs can cost $10,000 more than comparable gasoline-powered models, lower operating costs and maintenance can shave $1,400 a year off the cost of maintaining a vehicle, Mr. Guilbeault noted in an interview. With the recommended $5,000 incentive, an EV buyer could break even in less than four years, he said.

The transportation sector accounted for 25 per cent of the country’s greenhouse gas emissions in 2016, with passenger cars and light trucks representing fully half of that total, according to Environment Canada. A zero-emission vehicle strategy “is an essential component of tackling emissions in Canada," Mr. Guilbeault said
Source:
https://www.theglobeandmail.com/politic ... incentive/
Thread Summary
Those who are wondering what others are talking about regarding the limited range. Check out this post - https://www.engadget.com/2019/05/01/tes ... -mile-ran/
616 replies
Deal Guru
Mar 22, 2004
12414 posts
2930 upvotes
RFD
Should be in the "Everything about EVs!" thread
Deal Addict
User avatar
Jan 16, 2011
3376 posts
2838 upvotes
The NORTH
radeonboy wrote:
Mar 14th, 2019 9:31 pm
Should be in the "Everything about EVs!" thread
No it shouldn't, mega threads are a great way for good information to be missed by people that don't want to dig through hundreds of posts.

This deserves it's own thread, thanks OP for the heads up.
Member
Jan 29, 2017
241 posts
122 upvotes
does pre election budget mean for 2020? or only if elected?
Sr. Member
Jun 10, 2003
631 posts
71 upvotes
Halifax
I think the money would be better spent on charging infrastructure. $5K is not going to stop someone who wants an EV from getting one, they are still toys for people with extra money (I have a Leaf BTW). Building more infrastructure would encourage more people to buy EVs who could afford one but not enough places to quick charge. Once a good amount of charging infrastructure is built you then start to offer subsidies for the cars. Its at this point where cost would be the biggest hurdle for people that want an EV but don't have one.
Deal Addict
Oct 6, 2015
2279 posts
1221 upvotes
The carbon tax system should be the incentive program that pushes people into, for example, electric vehicles. They're already heavily subsidized by the lack of road taxes on the 'fuel'.
Deal Fanatic
Aug 29, 2006
7645 posts
1516 upvotes
The people pushing these agendas seems to think the batteries in those EV grow on trees or the electricity to charge those are all generated from renewable resources ??
The Devil made me buy it - RFD. :twisted:
Deal Addict
Mar 21, 2013
1715 posts
1850 upvotes
Edmonton
So can anyone advise whether the subsidy could be in place for a few months prior to the election? Since budgets are for fiscal years and now calendar years?
Deal Addict
Sep 8, 2017
2664 posts
2662 upvotes
Vancouver
hdom wrote:
Mar 15th, 2019 4:57 am
The people pushing these agendas seems to think the batteries in those EV grow on trees or the electricity to charge those are all generated from renewable resources ??
Perhaps charging an EV is more environmentally friendly in some provinces versus others.

Image

https://www.nrcan.gc.ca/sites/www.nrcan ... _17_En.pdf
Penalty Box
Nov 8, 2017
2193 posts
674 upvotes
It depends on time of day. From time to time, provinces like Ontario have to import from out of province sources.
Deal Guru
User avatar
Oct 6, 2010
12252 posts
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Toronto
stagefright wrote:
Mar 14th, 2019 10:06 pm
does pre election budget mean for 2020? or only if elected?
Only if elected. This is just an attempt to gain some voters in Ontario specifically that tend to be more liberal and are pissed about Ford scrapping the EV rebate. Bad dreams coming soon for the non class fiberal party of Canada.
derass wrote:
Mar 18th, 2019 2:49 pm
Perhaps charging an EV is more environmentally friendly in some provinces versus others.

Image

https://www.nrcan.gc.ca/sites/www.nrcan ... _17_En.pdf
Hm... The only place outside of BC that I could think of would be Quebec. That includes having the infrastructure to support EV charging beyond the home.
DYI difficulty scale:
0-joke
10-no joke

¯\_(ツ)_/¯
Deal Addict
Sep 8, 2017
2664 posts
2662 upvotes
Vancouver
What I mean is that it's less environmentally friendly to charge an EV in a province like AB or SK, because the majority of their electricity comes from burning coal and natural gas. As opposed to QC, MN, etc where the majority is hydroelectric.
Deal Fanatic
Aug 29, 2006
7645 posts
1516 upvotes
OR in Ont, where it will likely come from "Nuclear" .
derass wrote:
Mar 18th, 2019 3:24 pm
What I mean is that it's less environmentally friendly to charge an EV in a province like AB or SK, because the majority of their electricity comes from burning coal and natural gas. As opposed to QC, MN, etc where the majority is hydroelectric.
The Devil made me buy it - RFD. :twisted:
Deal Addict
Nov 10, 2018
2486 posts
2459 upvotes
What a colossal redistribution of people's OWN MONEY.
For legal topics and discussions, the opinion, guidance, and thoughts provided are my own and are not considered to be legal advice, in any manner.
Temp. Banned
Jan 13, 2017
456 posts
358 upvotes
this is stupid. stop wasting tax payer's money

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