This program will be fully operating by January 2009, and will encourage people to scrap their gas-guzzling vehicles and to turn to environmentally-friendly transportation. The incentives include:
- Public transit passes;
- Bicycles;
- a rebate on the purchase of a new car;
- Membership in a car-sharing program; or
- $300 cash.
"We know Canadians want to do their part to help clean up the air we breathe and our Government shares their desire," said Minister Baird. "That's why we are launching a national program to get Canadian's smog-causing gas-guzzlers off the road. This investment, combined with our Turning the Corner plan to cut air pollution from industry by up to 50 per cent, is what Canadians want and what we are delivering."
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"We are thrilled to be leading this program," said Ersilia Serafini, Executive Director of the Clean Air Foundation. "Car Heaven is a leading program in Canada and we look forward to working with additional local programs to build on their experience and to enhance this network nationally even more."
Of the 18 million cars and trucks on Canada's roads, about five million were manufactured before 1996 (which is when new environmentally conscious standards were introduced). These pre-1996 models produce about 19 times more air pollutants than newer cars and trucks.
Until the program is fully up and running in January 2009, the Government of Canada is providing $3.4 million funding to local vehicle scrappage programs across the country.
This will encourage Canadians to take action now by rewarding them with incentives for retiring their old vehicles that will be part of the national program. These local scrappage programs will have an opportunity to become part of the Clean Air Foundation's network for the delivery of the new national program in 2009.
As part of the Government's commitment to high environmental standards, the program will also include a National Car Recycling Code of Practice. This tough code, currently being developed with the Automotive Recyclers of Canada will raise the standard of environmental care for vehicle recycling and apply to all participating recyclers.
The Automotive Recyclers of Canada (ARC) and its provincial associations have partnered with the Clean Air Foundation over the years to help deliver vehicle scrappage programs. "We look forward to helping take this to a national scale through our network of local auto dismantlers and recyclers," said Steve Fletcher, Managing Director of ARC. "Ensuring that the vehicles are properly and permanently retired is the expertise we bring to the national program."
This initiative is part of the Government's Turning the Corner action plan, which includes a commitment to reduce emissions from transportation sources and cut smog-forming industrial air pollution in half by 2015.
For information on the vehicle scrappage program, please consult the related Backgrounder or visit: www.ec.gc.ca/VehicleScrappage.
BACKGROUNDER
Government gets tough on smog-forming air pollution:
Canada's New National Vehicle Scrappage Program
Protecting and preserving our environment is a priority for Canadians and this Government. Canada's new National Vehicle Scrappage Program will create incentives for Canadians to trade in their old, higher-polluting vehicles and promote environmentally friendly transportation choices. By replacing older, higher-polluting vehicles with newer, cleaner alternatives means cleaner air and a healthier environment for Canadians.
Older Vehicles and Air Pollution
Of the 18 million personal vehicles in use in Canada, an estimated five million are 1995 or older models. These older vehicles were not manufactured according to today's more stringent emissions standards, and produce 19 times more smog forming air pollution than newer vehicles. Although they make up less than one-third of vehicles on the road, older cars generate as much as two-thirds of the smog-forming pollutants caused by personal vehicle use.
The Government of Canada is committed to cleaning up the air Canadians breathe and that's why we are launching a new national vehicle scrappage program with $92 million in funding that offers Canadians rewards for voluntarily retiring their old, high-polluting vehicles. In addition to reducing air pollution, the program will reduce greenhouse gas emissions by promoting environmentally-friendly transportation alternatives. It will also ensure that vehicles are recycled responsibly, thereby further preventing the release of harmful substances into the environment.
The new national program will be delivered by the Clean Air Foundation, who will develop partnerships and a local delivery network to offer a range of new rewards that will be available in all provinces beginning in January 2009. In the meantime, the Government of Canada will provide substantial funding to existing local vehicle scrappage programs for expanded program delivery and incentives. These local organizations will have an opportunity to become part of the Clean Air Foundation's national network of partners who will help deliver the national program in 2009.
Building on Success
The first Canadian vehicle scrappage program aimed at retiring old, "live" (licensed, insured, and in running condition) vehicles was the Scrap-It program, launched in lower mainland British Columbia in 1996. Since then, other initiatives run by not-for-profit organizations have been introduced across Canada.
The Government of Canada will provide $3.4 million to fund the not-for-profit organizations for delivery of local scrappage initiatives until December 31, 2008.
These local scrappage initiatives include:
(i) BC Scrap-It program (Vancouver, British Columbia) (i) Cash for Klunkers (Kelowna, British Columbia) (i) Car Heaven Alberta (Calgary, Edmonton, Lethbridge, Alberta) (i) Bye Bye Beaters (Winnipeg, Brandon, Manitoba (i) Faites de l'air!, Quebec (Quebec areas served by public transit) (i) New Brunswick Vehicle Scrappage (Fredericton, Moncton, Saint John, New Brunswick) (i) Nova Scotia Steer Clean (Halifax, Nova Scotia) The Clean Air Foundation, which has proven its ability to successfully manage a national scrappage program, will deliver the new program with a network of national and local partners, including not-for-profit organizations that currently deliver local scrappage initiatives.
Of the $92 million in this national program, the Clean Air Foundation will be receiving up to $61 million to manage the new vehicle scrappage program and provide rewards to Canadians. The foundation will be eligible to receive an additional $14 million for rewards to Canadians, starting April 2009, based on performance and delivery of the program.
The remaining part of the $92 million (approximately $12 million) allocated for this program will be used by Environment Canada for program administration, research, tracking and evaluation, the development of a national code of practice for vehicle recyclers, audits of recyclers, and program promotion.
Rewards
The rewards will include options to encourage the use of environmentally-friendly transportation, like a public transit pass or a membership in a car-sharing program, or $300 cash. Although rewards could also include a rebate on the purchase of a newer vehicle, no federal funding will be used for the vehicle rebates. Instead, manufacturers and dealers will be encouraged to become partners in the new program.
Vehicle Eligibility
Canadians who own personal vehicles (i.e. cars, pick-up trucks, minivans, or sport-utility vehicles) made in 1995 or earlier can trade their old vehicle for an incentive if it is in running condition and has been registered and insured with the current owner for at least the past six months.
Owners of vehicles that are not eligible for a reward could receive a tax receipt for the value of the scrap metal. The Clean Air Foundation and local scrappage initiatives will collaborate with car donation programs run by various charities.
Responsible Vehicle Recycling
If not handled properly, scrapped vehicles can damage the environment by releasing harmful substances such as oil, antifreeze, and mercury. Environment Canada has been working with the Automotive Recyclers of Canada to develop a national code of practice for vehicle recycling to ensure high environmental standards and consistent practices for vehicles retired under the program. Participating recyclers will be required to follow this code, which is expected to be finalized later this year.
Other Initiatives to Reduce Transportation Emissions
The Government of Canada's comprehensive environmental agenda includes initiatives such as the ecoMOBILITY program to help increase transit ridership and alternative transportation; the ecoENERGY for Personal Vehicles program to encourage Canadians to make better purchasing, driving and vehicle maintenance decisions; a Pollution Prevention Notice for automotive manufacturers and steel mills to address the uncontrolled release of mercury from the processing of scrap vehicles that contain mercury switches; and action on renewable fuels.
