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Medium and heavy-duty fleet incentives

Program update

Changes to the BC Greenhouse Gas Reduction (Clean Energy) Regulation now make it easier for FortisBC to help companies experience the benefits of natural gas for their fleets. We can provide 25 to 75 per cent of the incremental cost of upgrading to compressed natural gas (CNG) or liquefied natural gas (LNG) versus the equivalent diesel vehicle. Applicants who have previously received incentive funding under this program for the following types of vehicles are not eligible to receive funding for additional vehicles that will fuel at their existing fuelling stations:

  • waste removal and/or recycling vehicles (with greater than 12 CNG powered vehicles)
  • transit vehicles

Who's eligible?

This program is open to any owner or lessor of eligible vehicles in British Columbia who refuel within the FortisBC service area:

  • heavy-duty vehicle – a truck or tractor-trailer with a manufacturer’s gross vehicle weight rating of 11,793 kg or more
  • medium-duty vehicle – a vehicle with a manufacturer’s gross vehicle weight rating of more than 5,360 kg but less than 11,793 kg

Fleets must operate at least 75 per cent within British Columbia, and incentive awards will be prorated based on the percentage of kilometres run within the province.

We have a separate incentive program for light duty vehicles.

Incentive calculation

For 2018, the medium and heavy-duty vehicle incentive program provides a base incentive of 25 per cent of the incremental capital cost between a qualifying natural gas vehicle and an equivalent diesel vehicle. This base incentive is expected to decrease in subsequent years. Some customers may be eligible for additional incentives, for up to 75 per cent of the incremental cost:

Early adopter: 10 per cent

​Incentive of 10 per cent for eligible applicants who are among the first in their market segment. A company may only qualify for the early adopter incentive once in the lifetime of the program. This incentive will be available for specific market segments until they are deemed to be penetrated, at the discretion of FortisBC. The market application of eligible vehicles includes:

  • wholesale distribution of food or beverages by truck
  • short-haul trucking between a port and a railway, warehouse or trucking depot
  • medium and heavy-duty vehicle leasing
  • passenger transportation by charter bus, other than a transit bus or school bus
  • package courier service by truck
  • off-highway mine hauling by truck
  • transportation of goods or passengers by rail
  • shipping, passenger transportation or commercial services by marine vessels fuelled in BC
  • dump truck services
  • transportation of cement in cement-mixing trucks
  • bucket and digger trucking services
  • pipe cleaning or hydro-vacuum excavation trucking services
  • on-highway hauling in trucks with a manufacturer’s gross vehicle weight rating of more than 36,000 kg
  • off-highway earth excavation, grading and moving for construction or mining
  • engine conversion vehicles
Additional load: up to 20 per cent

​Incentive of up to 20 per cent for eligible applicants based on the amount of annual fuel consumption (in gigajoules) until the market segment is penetrated.

  • on-road vehicle: 10 to 20 per cent incentives for fleets such as food/beverage distributors, package delivery trucks, port drayage/yard hostlers, truck rentals and charter buses
​Load per year (range) ​Incentive
​2,500 – 8,000 GJ ​10%
​8,001 – 12,000 GJ ​15%
​12,001 GJ and higher ​20%
Fuelling station: 20 per cent

​An additional incentive of 20 per cent is available for applicants who also build a natural gas fuelling station that is available for third-party use and is located along specific strategic transportation corridors in BC.

Evaluation process and criteria

Applicants must meet the following minimum criteria:

  • Equifax Credit Information score of 30 or less
  • Equifax Payment Index of 45 days or less
  • Satisfactory Carrier Safety Rating (audited or unaudited)

Applicants who have previously received incentive funding under this program for the following types of vehicles are not eligible to receive funding for additional vehicles that will fuel at their existing fuelling stations:

  • waste removal and/or recycling vehicles (with greater than 12 CNG powered vehicles)
  • transit vehicles

Applicants will also be evaluated based upon the diversity of the Applications received and fuelling infrastructure plans. FortisBC seeks diversity by vehicle type and geographic location within British Columbia. This is up to the discretion of Fortis BC to make that determination to strategically award applicants that further the objectives of Greenhouse Gas Reduction Regulation.

How to Apply

FortisBC intends to accept applications every quarter. Applicants who intend to apply in the later quarters run the risk of the funding being fully subscribed in the previous quarters. Once awarded, the Applicant must sign a Contribution Agreement with FortisBC before the end of the next quarter and submit a binding Purchase Order (PO) by the deadline set out in the Contribution Agreement. For example, an Applicant who applied and was awarded funding in Q1 must sign the Contribution Agreement by June 30th, which will require a binding PO by no later than the end of the next quarter. The award may be cancelled if the Applicant failed to sign the Contribution Agreement or submit a binding PO by the applicable deadline. The table below summarizes the estimated timelines for 2018.

Q1​ ​Q2 ​Q3 ​Q4
​Application
period
Jan 1-Mar 31, 2018 ​Apr 1-June 30, 2018 July 1-Sept 30, 2018 Oct 1-Dec 31, 2018
​Incentive % Base percentage of 25% ​ ​ ​
​Application deadline 31-Mar-2018 30-Jun-2018 30-Sep-2018 31-Dec-2018
​Contribution agreement deadline 30-Jun-2018 30-Sep-2018​ 31-Dec-2018 31-Mar-2019
​PO deadline ​30-Sep-2018 31-Dec-2018 31-Mar-2019 ​30-Jun-2019
The completed Application Form, signed by the applicant, must be submitted to ngt@fortisbc.com by 11:59 (PST) on the day of the application deadline. 

Where to fuel

While fuelling service is available from FortisBC, it can also be provided directly by the applicant or through contracts with third-party providers.

Questions?

Review the frequently asked questions or email us at ngt@fortisbc.com.

 

1 The actual percentage may differ under certain circumstances and is at the discretion of FortisBC.