Motor Vehicle Policy
(Publié aussi en français sous le titre Politique sur les véhicules automobiles)
Table of Contents
1. Effective date
2. Policy objective
3. Policy statement
4. Application
5. Policy requirements
6. Procedural requirements
7. Responsibilities
8. Monitoring
9. References
10. Enquiries
Appendix A – Procedural Requirements of the Motor Vehicle Policy Flowing from the Alternative Fuels Act
Appendix B – Selecting Alternative Fuel Vehicles
Appendix C – Guidelines on the Motor Vehicle Policy
Appendix D – Motor vehicle accident claims

1.	Effective date
This policy became effective on June 19, 1996.  It replaces the version of this policy dated April 15, 1994.
2.	Policy objective
The objective of this policy is to ensure that government motor vehicles are selected, acquired, and used in ways that provide the best possible support to government operations, the environment, and other government objectives.
3.	Policy statement
It is government policy:
–	that motor vehicles be provided only when required to conduct government business;
–	that motor vehicle fleets be managed in accordance with the life cycle approach to materiel management and with the principles of economy, prudence, and probity, while minimizing any negative environmental impact.  

4.	Application
This policy applies to departments and agencies listed in schedules I and II of the Financial Administration Act and to branches designated as departments for purposes of the Act.  Where this policy conflicts with the general direction provided through the Foreign Service Directives approved by the Treasury Board, the Foreign Service Directives prevail.
5.	Policy requirements
(a)	Fleet management procedures must minimize life cycle cost while meeting operational requirements.  (See the definition of life cycle cost in Appendix B under the explanation of terms.)  These include:
(i)	analyzing the various transportation options to reduce the total travel costs in the organization, including but not limited to the cost of vehicle purchases, leases (only operating leases are permitted), local short‑term rentals, taxis, and costs for employee provided vehicles;
(ii)	selecting the most beneficial vehicle to lease or purchase by analyzing and evaluating historical and anticipated future life cycle data.  This will include a cost comparison of fuel types for the expected fuel consumption, maintenance, and repair data and expected resale values as well as expected emission levels when compared to other vehicles in the same class (see Appendix B for guidance on selecting alternative fuel vehicles); and
(iii)	contributing to a reduction of 30 per cent in tailpipe greenhouse gas emissions in the fleet by the year 2000.  (See Appendix C, Guidelines on the Motor Vehicle Policy, section 10 – Environmental Considerations.) 
(b)	Appendix A provides an overview of the Alternative Fuels Act.  Compliance with the requirements of the Alternative Fuels Act and associated regulations must include:
(i)	using alternative fuels in vehicles capable of operating on such a fuel when it is determined to be operationally feasible and cost‑effective to do so; and  
(ii)	purchasing vehicles capable of using alternative fuels according to the specified schedule in the Act.  The percentages in the schedule apply to those vehicles when it is predetermined to be operationally feasible and cost‑effective to use alternative fuels.  
(c)	Procurement and leasing practices must be consistent with government direction to standardize vehicle selection whenever possible and to minimize life cycle cost by:
(i)	acquiring vehicles through procurement arrangements established by the headquarters of Public Works and Government Services Canada (PWGSC) when this is the lowest cost option.  Call‑ups against such arrangements must be consistent with the classes named in the Government Motor Vehicle Ordering Guide (GMVOG) unless specifically exempted;
(ii)	conducting vehicle purchases by using the method of procurement offering the lowest life cycle cost based on criteria applied by PWGSC and approved by the Treasury Board;
(iii)	using Bulk Buys, Departmental Individual Standing Offers, and Government Vehicle Inventory, generally the most cost‑effective procurement methods of supply.  Vehicles acquired through Dealer Stock are generally the most expensive and are to be avoided whenever possible.  Trade‑ins are not permitted for passenger cars, wagons, and light trucks that are similar in type to those described in the Government Motor Vehicle Ordering Guide;
(iv)	providing input to dealer purchase reports that PWGSC headquarters prepares.  Reports will include a vehicle description and a description of the emergency that required an exception to the policy or normal purchase process, including the department name, contact person, and the justification provided to PWGSC.  The report will also include an estimate of the premiums paid for such action over the best price that was available through normal procurement practices.  All requisitions for dealer stock purchases must be sent to PWGSC headquarters along with justification for this type of purchase.  If PWGSC cannot obtain the requested vehicle through the most cost‑effective procurement method of supply, the dealer stock justification will be referred to Treasury Board of Canada, Secretariat (Secretariat) for a ruling, which is normally provided within two working days.  If the justification is approved by the Secretariat, PWGSC headquarters will authorize its appropriate regional office to purchase the vehicle locally;
(v)	avoiding emergency purchases from dealer stock.  These types of purchases should be rare and are not justifiable on grounds of planning difficulties, year‑end surplus spending, or the length of the procurement process, particularly with the fleet planning tools now available to departments; 
(vi)	following open tendering practices in Canada except when the General Agreement on Tariffs and Trade (GATT) applies.  For purchases in excess of the established North American Free Trade Agreement (NAFTA) benchmarks, complying with NAFTA procedures.  The Free Trade Agreement (FTA) and Auto‑Pact were subsumed under NAFTA with the above mentioned conditions;
(vii)	satisfying lease requirements on a competitive basis through professional fleet lessors to obtain the best terms and price.  Only operating leases are permitted.  Operating leases are available as open‑ended leases, which are less costly and are recommended for most requirements.  Open‑ended leases are most commonly used in the private sector;
(viii)	predetermining the most desirable disposal timeframes at the time a vehicle is purchased.  Departments will ensure budgets anticipate such replacement costs and the lead‑times required for purchase, which can be up to six months.  At the time replacement is being considered, a challenge mechanism must be in place to ensure there is an ongoing need for transportation and that of all the options, including leasing and sharing other vehicles, the best response to that need continues to be the procurement of a vehicle.  (See section 1 of Appendix C for guidelines on this challenge process.)
(d)	Within the established legislative and policy framework, departments must operate vehicles to minimize the life cycle cost of the fleet to the government by:
(i)	adhering to the vehicle self‑underwriting policy to avoid costs associated with using commercial insurance (see Appendix C, Guidelines on the Motor Vehicle Policy, section 8) and other forms of insurance such as extended warranty offerings from manufacturers; 
(ii)	eliminating unauthorized or personal use of vehicles (see Appendix C, Guidelines on the Motor Vehicle Policy, sections 7 and 8).  Notwithstanding the business uses permitted under the policy, users of federal vehicles must be aware of “personal use” interpretations in the Income Tax Act.  For this reason users must read Revenue Canada Interpretation Bulletins IT‑63R3 and IT‑63R2 or succeeding publications (available on the Revenue Canada Internet home page).  The bulletins will also provide information on taxable benefits with respect to using a government vehicle for purposes deemed to be personal use in the Income Tax Act, including the calculations required;
(iii)	not using government funds to pay for fines for speeding, illegal parking, and other traffic violations as well as damage from accidents due to driver negligence.  Such results of poor driving practices are examples of unauthorized use of a government motor vehicle, the costs of which the vehicle user must pay personally.  Unauthorized vehicle use may also be grounds for disciplinary action.
(e)	Departments must ensure a corporate capability for tracking essential information about the fleet for management and reporting requirements by:
(i)	using a private sector fleet management information system and the companion credit card to monitor the cost of maintaining, repairing and operating vehicles as part of a life cycle management approach, except where specifically excluded.  Exceptions will be subject to assessment by the Secretariat and Treasury Board approval, as appropriate.  The assessment will focus on cost‑effectiveness and on whether the system sufficiently mirrors best practices in the private sector; 
(ii)	avoiding duplicate or competing systems, or systems that do not retain a department‑wide focus.  The database must be flexible and responsive to internal and external reporting on environmental and life cycle management requirements; 
(iii)	ensuring one headquarters manager is authorized and accountable for maintaining a complete and accurate vehicle fleet database that is responsive to reporting requirements for the departmental vehicle fleet;
(iv)	identifying the vehicle including make, model, Vehicle Identification Number, expected service life of the vehicle, and engine particulars (i.e., engine size in litres, number of cylinders, fuel types the vehicle can use, and Transport Canada gasoline consumption rating).  (See Annex D of Appendix C for a listing of the data that should be retained.)  To calculate cost‑effectiveness for alternative fuel vehicles, use the rating of a gasoline engine for the particular model that is required;
(v)	identifying vehicle location including the responsibility centre address and the physical location of the vehicle, if it is at a different address;
(vi)	providing a general description of the operating duties, including:  whether the vehicle is single, multi‑user or pooled; whether the vehicle is shared with other departments; the pool manager’s name and telephone number; the repair and maintenance history, including emission test data; the current odometer reading; and the expected disposal date;
(vii)	tracking the disposal value received or the disposal status, including the physical location of a vehicle declared surplus but still waiting for disposal, the date it was declared surplus, and the date of its disposal; 
(viii)	retaining an electronic or manual file record of the life cycle history of vehicles for the period that they are in the fleet.  This information must be retained for a period of five years after a vehicle leaves the fleet and must include purchase, operations, maintenance, repair, and disposal records.
(f)	Departments must perform self‑assessments annually and report the results to the President of the Treasury Board for purposes of reporting to Cabinet committee.

6.	Procedural requirements
See section 5, Appendix A for procedural requirements flowing from the Alternative Fuels Act.
7.	Responsibilities
Public Works and Government Services Canada’s headquarters will provide reports requested by Treasury Board of Canada, Secretariat.
8.	Monitoring
Treasury Board of Canada, Secretariat will periodically assess the effectiveness of the policy and its impact on departmental operations and performance.  
9.	References
9.1	Authority
This policy is issued under the authority of section 7 of the Financial Administration Act.
9.2	Relevant legislation
Alternative Fuels Act.
Alternative Fuels Regulations.
9.3	Treasury Board of Canada, Secretariat publications
Risk Management Policy (for more information about the government's liability for motor vehicles).
Federal Identity Program (for more information about markings on government vehicles).
10.	Enquiries
Please direct enquiries about this policy to:  
Government Services and Materiel Management
Bureau of Real Property and Materiel
Government Operations
Treasury Board of Canada, Secretariat 
Fax:  (613) 957‑2405

Appendix A – Procedural Requirements of the Motor Vehicle Policy Flowing from the Alternative Fuels Act
1.	Background
On June 22, 1995, the Alternative Fuels Act became law.  The Act requires that:
(a)	the federal fleet use alternative fuels whenever it is cost‑effective and operationally feasible;
(b)	departments adhere to a schedule for procuring vehicles that operate on alternative fuels; and
(c)	terms defined in the Act be amended by regulation.  

2.	Definitions of terms in the Act
Alternative fuel (carburant de remplacement) – for use in motor vehicles to deliver direct propulsion; less damaging to the environment than conventional fuels; prescribed by regulation including, without limiting the generality of the foregoing, ethanol, methanol, propane gas, natural gas, hydrogen, or electricity when used as a sole source of direct propulsion energy.
Motor vehicle (véhicule automobile) – any motor vehicle of a class prescribed by regulation, including, without limiting the generality of the foregoing, an automobile, passenger van, or light duty truck.
3.	Requirements of the Alternative Fuels Act
3.1	Targets for procuring vehicles 
Where operationally feasible and cost‑effective, alternative fuel vehicles must be purchased annually by departments in accordance with the following schedule:
1997‑98	50%	
1998‑99	60%	
1999‑2000	75%	

3.2	Alternative fuel use
When it is cost‑effective and operationally feasible to do so, a federal body shall use an alternative fuel in operating any vehicle that can operate on such a fuel.  (This includes blended fuels that contain alternative fuels.)
3.3	Reporting
Beginning in the 1997‑98 fiscal year, the President of the Treasury Board will report to Parliament, as soon as possible, but within six months after the end of the fiscal year, on the application of the Alternative Fuels Act in respect of all federal bodies (excluding Crown corporations, all of which are required to report separately).
3.4	Authority to make regulations
The Treasury Board may make regulations on the recommendation of the President of the Treasury Board and may take such other measures as necessary to give effect to the purpose or any provision of this Act.
4.	Approved regulations
Regulations have been used 
(a)	for the purpose of acquiring motor vehicles under paragraph 4(1) of the Act, to expand the definition of an alternative fuel to include blended fuels when an alternative fuel makes up at least 50 per cent of the blend.  The definition includes flex fuel and bi‑fuel vehicles;
(b)	for the purposes of using alternative fuels under paragraph 4(2) of the Act, to expand the definition of alternative fuels to include bio‑diesel and blended fuels to the extent any of the approved alternative fuels appears in the blend;
(c)	for the purpose of the definition “motor vehicle” in paragraph 2(1) of the Act, to include medium duty trucks and buses as classes of vehicles.

5.	Procedural requirements of the Motor Vehicle Policy
5.1	Definitions
Bi‑fuel vehicle (véhicule bicarburant) – a vehicle with two separate fuel systems that operates on either fuel (e.g., a bi‑fuel gasoline/propane vehicle can operate on either gasoline or propane).
Cost‑effective (rentable) – cost‑effectiveness shall be determined in the standardized approach established by the Fleetwise Task Force consistent with the methodology in Appendix B of the Motor Vehicle Policy.  An alternative fuel vehicle will be considered cost‑effective when it delivers a life cycle cost equal to or lower than the equivalent gasoline powered vehicle (see Appendix B for an explanation of the calculation and Annex B of Appendix C for a description of the Fleetwise Task Force).
Dual‑fuel vehicle (véhicule à deux carburants) – a vehicle with two separate fuel systems that operates on one specific fuel or on both fuels simultaneously (e.g., a dual‑fuel diesel/natural gas vehicle burns diesel for ignition and natural gas for the source of power; the vehicle can also operate entirely on diesel).  
Flex‑fuel vehicle (véhicule polycarburant) – a vehicle with a single fuel system that operates on either of two different fuels or a blend of the two (e.g., an M85 vehicle can operate on gasoline alone or on any blend of gasoline and methanol to a maximum of 85 per cent methanol).  Future vehicles might operate on gasoline or methanol alone, or any blend of the two.
Mono‑fuel vehicle (véhicule monocarburant) – a vehicle with a single fuel system that operates on one fuel only (e.g., a mono‑fuel natural gas vehicle operates on natural gas only).
Operationally feasible (faisable) – decisions regarding operational feasibility will relate to the vehicle platform, the fuel availability, and the proposed use of the vehicle as described in Appendix B of the Motor Vehicle Policy.
5.2	Selecting an alternative fuel vehicle 
(a)	Inefficient fleets must be rationalized to reduce the number of vehicles in the fleet and to maximize the use of the remaining vehicles in the fleet before considering using alternative fuels.
(b)	Vehicles in a rationalized fleet must first be identified as good candidates for using alternative fuels based on operational feasibility considerations that include fuel availability (see Appendix B of the Motor Vehicle Policy for selection of alternative fuel vehicles).  
(c)	A vehicle must also meet the cost‑effectiveness test.  If the proposed vehicle is cost‑effective (meaning that it delivers a life cycle cost as low as or lower than the comparable gasoline or standard diesel powered vehicle), it is then confirmed as a cost‑effective candidate for use of alternative fuels.  It can be replaced with an alternative fuel vehicle purchased from a manufacturer, converted in the aftermarket or leased as a vehicle capable of operating on an alternative fuel such as propane, natural gas, ethanol, methanol, hydrogen, or electricity.  

Note:
Vehicles that meet all other criteria, but are borderline failures in meeting the cost‑effectiveness test, must be purchased or converted to run on alternative fuels.
5.3	Purchasing or leasing a manufactured alternative fuel vehicle 
(a)	If a decision is made to purchase or lease a replacement vehicle, consideration must be given to both dedicated alternative fuel vehicles and flex‑fuel or bi‑fuel vehicles capable of operating on gasoline and an alternative fuel.  Operational feasibility considerations will also determine this choice.  In considering service support for Original Equipment Manufacturer’s (OEM) alternative fuel vehicles, departments must ensure the manufacturer has qualified the local service dealership to service the type of alternative fuel vehicle being purchased or leased.  Not all OEM dealerships may be qualified or equipped to service the alternative fuel vehicles sold by the manufacturer.
(b)	Alternative fuel vehicles that are certified to Transport Canada emission standards will not require testing.

5.4	Aftermarket conversions of gasoline vehicles
The integrity of the basic vehicle warranty must not be affected by converting a gasoline vehicle to use an alternative fuel.  Departments shall use the same source of supply to purchase and install fuel conversion equipment to avoid conversion warranty problems.  Conversion contractors must provide a minimum one‑year written warranty on the performance of equipment and the quality of installation.  The contract shall require that vehicles within 100 kilometres of testing facilities approved under the fleetwise program be tested under IM 240 or Hot 505 to confirm that the converted vehicle meets, as a minimum, the contract requirement to maintain Transport Canada emission standards as well as any provincial standards while operating on an alternative fuel.  Other vehicles in more remote areas will be subject to random testing.  
5.5	Re‑using conversion equipment
Moving conversion equipment from one vehicle to another is not recommended.  However, when conversion equipment is re‑used, it must comply with the requirements in the paragraph above and renewed warranty provisions must exist for the installation and use of the alternative fuel equipment in a second vehicle.
5.6	Emission testing of converted in‑service vehicles
A gasoline vehicle converted in the aftermarket to use alternative fuels must undergo a service emission test while operating on an approved alternative fuel if it is located within 100 kilometres of a test facility.  This IM 240 or Hot 505 emission test is in addition to the test conducted when a converted vehicle is put into service.  It will be conducted within the warranty period and at least three months or 5000 kilometres from any engine tune‑up or maintenance work and after consuming alternative fuel equivalent to at least 500 litres of gasoline.  Vehicles that fail pre‑conversion or post‑conversion tests must have the necessary warranty work done to correct the problem and be retested until the vehicle meets the Transport Canada emission standard and any provincial standards while operating on the alternative fuel chosen.  The cost of emission tests does not form part of the cost‑effectiveness calculation.
5.7	Fuel use
Role of flex‑fuel and bi‑fuel vehicles
Flex‑fuel and bi‑fuel vehicles will contribute to lowering emissions in proportion to the amount of alternative fuel consumed.  The department is responsible for ensuring that the electronic motor vehicle credit card and the department’s tracking system capture all fuel consumption by type of fuel in order to track alternative fuel use and report on emission reductions.
Role of low‑level blends 
All vehicles in the federal fleet that operate with standard gasoline engines shall use blends containing the maximum level of alternative fuel that is available through distributors displaying the Ecologo, that is cost‑effective, and that is authorized to be used by the vehicle manufacturer.  Authorized fuels for the original vehicle engine configuration are normally indicated in the vehicle’s user manual.  
(For example, E10 is a blended fuel consisting of 10 per cent ethanol and 90 per cent gasoline.  A department would therefore be credited as consuming an alternative fuel at 10 per cent of the consumption volume for this particular blend.)
Vehicle maintenance
An effective alternative fuel vehicle must meet Transport Canada emission standards throughout the vehicle’s useful life cycle.  Departments must maintain their vehicles regularly in accordance with the manufacturer’s specifications.
Emission monitoring for all alternative fuel vehicles
Departments are to maintain in the fleet database the Transport Canada fuel consumption rating for each vehicle in the fleet and the dates and kilometre readings when the emission tests are conducted.  Copies of all emission test results (and corrective action taken in the case of failed tests) are to be retained on file for any audit or inquiry from internal auditors or the Treasury Board of Canada, Secretariat.
5.8	Reporting
Annual reports on the progress of implementing the Alternative Fuels Act, associated regulations, and the Motor Vehicle Policy will be tabled by the President of the Treasury Board in Parliament as required under the Act.  The information in this reporting requirement will be consistent with reporting requirements for the fleet under sustainable development action plans required under section 24 of Bill C‑83.  Written justification is required on file to support decisions about the choice of the vehicles purchased and fuel used.  Reports may be requested about the reasons for the choice of vehicles and the associated fuel system configuration.  The Auditor General, departmental internal auditors or Secretariat representatives may request details about departmental justifications.  (See Annex D of Appendix C for suggested minimum fleet data fields to be captured.)

Appendix B – Selecting Alternative Fuel Vehicles
1.	Introduction
This appendix provides a consistent approach for determining whether a vehicle would be capable of operating cost effectively on alternative fuels over its useful life in the federal fleet.  It also provides further guidance on what constitutes operational feasibility.  (Software called Q Tool is available for departments to help automate the cost‑effective calculation.)
2.	Determining life cycle cost‑effectiveness for the use of an alternative fuel vehicle – Explanation of terms
Adjusted annual fuel consumption (consommation de carburant annuelle rajustée) – is the expected number of (gasoline equivalent) litres of alternative fuel to be consumed annually by the vehicle.  It is calculated by multiplying the projected annual consumption based on the gasoline rating for the vehicle (the annual mileage multiplied by the Transport Canada published fuel consumption for city driving) by the gasoline equivalent factor for the alternative fuel being compared.
Example:
The comparable consumption rating for gasoline and propane for a vehicle rated at 17 litres per 100 kilometres and expected to go 30,000 km annually would be calculated as follows:  the fuel consumed is 30,000/100 x 17 = 5,100 litres of gasoline per year.  If the same vehicle is converted to propane, which has a gasoline conversion factor of 1.36, it will use 5,100 x 1.36 = 6,936 litres of propane annually.  Similar calculations can be used for other fuels for which Natural Resources Canada has provided a conversion factor.  (Note that a conversion factor different from that provided in the cost‑effective model for each fuel can be used if the manufacturer provides a certificate for the efficiency factor.  The certificate is to be retained on file and a copy sent to Government Services and Materiel Management, Treasury Board of Canada, Secretariat, attention Motor Vehicle Policy Analyst).
Annual fuel savings (économies annuelles liées au carburant) – is the difference between the annual cost for gasoline and the annual cost for the gasoline equivalent of the alternative fuel.  
Example:
Using our previously calculated consumption figures and a pump selling price for gasoline of 55.9 cents/litre and the pump selling price for propane of 29.9 cents/litre, the annual cost savings will be (5,100 x 0.559) – (6,936 x 0.299) = $777, which is the expected annual fuel savings using propane.
Annual travel (kilométrage annuel) – is the expected number of kilometres per year that the vehicle will register based in part on experience with the vehicle it is replacing or the vehicles that are performing similar functions, with adjustments based on knowledge of future travel pattern changes.
Capital cost (coût en capital) – is the difference in cost of purchasing a vehicle capable of operating on gasoline and the cost of purchasing the same vehicle capable of operating on an approved alternative fuel (see the definition of alternative fuel).
Cost‑effectiveness (rentabilité) – a vehicle is cost‑effective to operate on an alternative fuel when the payback period is shorter than the life expectancy of the vehicle in the federal fleet.  
Example:
If purchasing an alternative fuel vehicle results in additional capital cost of $2,500 but generates annual savings of $777 in fuel cost, the payback period would be 3.2 years or 39 months ($2,500/$777).  If the vehicle life expectancy is 4 years, it would be cost‑effective to operate the vehicle on propane.  
Life cycle cost (coût du cycle de vie) – is the expected net total cost for purchase, maintenance, and repair, less disposal proceeds for the sale of the vehicle at the end of its useful life in the federal fleet.  Alternative fuel vehicle emission tests are not part of this calculation.
Payback period (période de récupération) – is the period of time over which the department recovers the additional capital cost through fuel savings by using an alternative fuel.  The calculation is additional capital cost divided by annual savings in fuel cost = payback period in years.
Vehicle life (durée de vie du véhicule) – is the expected time the vehicle will be in service in the federal fleet.  (For the example above, four years has been used.) 
3.	Operational feasibility
(a)	Some change in operational procedure must be expected to accommodate using and refuelling alternative fuel vehicles.  In specific cases, in spite of best efforts, it may not be operationally feasible to use alternative fuels in some locations or for specific vehicles.  All of the following must be in place to make the use of alternative fuels operationally feasible:
(i)	fuel must be available for the area of operation and range of the vehicle;
(ii)	vehicle service and maintenance support must be in place; 
(iii)	 the vehicle must meet operational and tailpipe emission requirements while operating on an alternative fuel; 
(iv)	the vehicle must be durable for the operating environment;
(v)	certification and an adequate warranty for conversion work must be available; and
(vi)	the manufacturer's vehicle warranty must not be affected.  
(b)	A detailed analysis must be on file for each vehicle supporting the method of acquisition and rationale for the choice of engine configuration to consume specific fuels, whether it be an alternative fuel or gasoline engine.  This information must be kept on file for five years after the vehicle’s useful life in the fleet has ended.

Appendix C – Guidelines on the Motor Vehicle Policy
1.	Determining transportation requirements
The challenge process established in departments to assess the need for new vehicles or replacement vehicles should consider all other transportation options and document the reasons for choosing the purchase of a vehicle.  When a vehicle is the transportation supply method of choice, consideration should be given to:
(a)	the nature, extent, and duration of the requirements, the types of fuel available in the area of operation, and the type of vehicle best suited to the job;
(b)	the effect on life cycle costs and operational effectiveness of the vehicle purchase compared to other options including, but not limited to, leasing (annually or seasonally), using existing vehicles, pooling vehicles for departmental or interdepartmental use, and using personal vehicles and various means of public transportation.  All options should be considered before determining which vehicle to purchase as the best method of satisfying a requirement.
(i)	Ownership may not be cost‑effective if the vehicle travels less than 20,000 km per year, but will vary with the type of vehicle and its use.  
(ii)	The best price for leases is normally available through corporate fleet specialists such as those who provide fleet management and credit card services to departments.  Only operating leases are permitted.  Open‑ended operating leases are preferred because they are generally the most cost‑effective and are consistent with the requirements of the Financial Administration Act.  They also make up the majority of leases in the private sector.
(iii)	Vehicle leases should:
–	offer no buy‑out at the end of the lease
–	pay for the actual service period only (no excess to book value)
–	make the lessee responsible for the proceeds or shortfalls from book value;
(c)	buying alternative fuel vehicles from manufacturers or converting vehicles through technically competent suppliers should be considered using the cost‑effectiveness and operational feasibility criteria (see Appendix B of the Motor Vehicle Policy);
(d)	determining the expected in‑service life of the vehicle, the maintenance cost, and emission levels based on experience with similar vehicles and current technology and market information;
(e)	the availability of other vehicles in the federal fleet and, for surplus newer vehicles, the possibility of reassigning them to other locations or departments at fair market value before considering outside disposal.  Internal transfers of surplus vehicles between departments can be done at fair market value using journal vouchers to transfer funds.  Such transactions do not have to go through the Crown Assets Distribution Centre;
(f)	vehicle security and custody when not in use;
(g)	the availability of dealer maintenance and repair facilities;
(h)	technical information in the Government Motor Vehicle Ordering Guide (GMVOG) that may be used to assist in meeting requirements (if the GMVOG does not apply to requirements, departments should seek early technical advice from PWGSC on what vehicle specification might best meet their needs and what delivery might apply);
(i)	purchasing optional equipment at the time the vehicle is ordered, when it is available and cost‑effective, rather than adding equipment at higher cost after taking delivery of the vehicle;
(j)	promoting the standardization of vehicles in the federal fleet whenever it is cost‑effective, while maintaining operational effectiveness.  This includes minimizing the variety of vehicles in the fleet and using the manufacturer’s standard paint offerings.  Custom painting should be avoided;
(k)	using the government motor vehicle inventory (GVI) operated by PWGSC to provide shorter delivery times by entering into joint prerequisition planning with PWGSC.  

2.	Credit card use
To maintain a useful database, it is recommended that a separate electronic credit card be assigned to capture transactions for each individual vehicle.  The card should not be used for purchases for other vehicles or equipment.  Work covered by warranty should also be recorded.  Emergency transactions not paid by credit card should be reported to the appropriate authority for manual entry into the vehicle management database.  
3.	Odometer readings
All vehicle operators (drivers) are expected, as part of their responsibilities, to report the vehicle's odometer reading at regular intervals as specified by the department.  Outdated odometer readings can have a negative effect on monthly management report results used to manage the fleet.
4.	Provincial requirements 
Departments should comply with provincial legislation and regulations for vehicles by
(a)	registering vehicles, including paying for compulsory inspections, driver examinations, or other requirements, unless specific agreements exist to the contrary; and
(b)	paying environmental levies on tires or batteries that may be payable to these provinces under federal‑provincial reciprocal taxation agreements.

5.	Vehicle registration
(a)	Where possible, departments should arrange for bulk registration of vehicles to reduce administrative costs.
(b)	The first line of all addresses on vehicle registrations should include consistent wording to describe the department, such as the department's commonly used name.  Wording such as "Her Majesty the Queen in the right of the Minister of" is not necessary as part of the registration address and has the effect of removing the essential part of the department’s name from the address generated by some provincial computer printouts.  This can also cause provincial billing to go to the wrong responsibility centres.  

6.	Insuring rental vehicles
(a)	The government's self‑underwriting policy applies to Crown employees using a federal vehicle or a rented or leased vehicle for government business (except when using rented vehicles while travelling).  
(b)	The standard collision damage waiver of deductible required by rental agencies is mandatory (under the National Joint Council’s Travel Directive) for rental vehicles used while travelling.  
(c)	The use of short‑term rental vehicles for normal business requirements (not while travelling) allows departments, after due regard for the risks, to follow the travel status practice for insuring vehicles, although it is the practice not to insure government owned vehicles and vehicles on long‑term leases.  Where it is decided to take no insurance, the self‑underwriting policy for collision and liability risks applies and the rental agency premium for a collision damage waiver of deductible is not paid.  
(d)	The use of Diners Club and Enroute cards to pay for vehicle rentals provides a free collision damage waiver of deductible and should be strongly encouraged as the preferred option.  Waiver premiums that are paid in contravention of departmental policy should not be reimbursed.

7.	Use of government vehicles by non‑government employees 
(a)	Individuals who are not government employees but who are authorized to operate a government motor vehicle while on government business may be exposed to potential liability for property damage, including damage to other vehicles, personal injury, and other third party claims.  
(b)	Departments are authorized to allow individuals who are not government employees to operate government vehicles under the self‑underwriting policy, provided good risk management practices are followed in determining the amount of risk the Crown and the contractor or driver will assume.

8.	Minimum strategy for managing risk 
This strategy applies when individuals who are not government employees are authorized to operate government vehicles.  In these cases departments should:
(a)	ask vehicle users who are not employees to provide evidence of a valid driver's licence; and
(b)	decide on the most appropriate manner of underwriting the risk to the Crown for damage to the vehicle, driver injury, or third party claims.  Options that departments should consider as a minimum include:
(i)	having contractors assume all the risk.  The contractor provides proof of insurance to cover the risk and at the department’s option provides a limited or unlimited indemnification of the Crown against damage to the vehicle and third party risks;
(ii)	assuming the risk of damage to the vehicle where negligence is not involved and requiring an indemnification from the contractor against third party risks.  The department could limit or waive this when supported by an adequate amount of insurance (e.g., $10,000,000);
(iii)	purchasing commercial insurance when there are particular advantages to be gained, such as insuring against high risk activity, preserving an arm’s length relationship, gaining economy, and getting insurer provided services such as claims settlement; or 
(iv)	assuming all the risk under the self‑underwriting policy, much as the department does for vehicles operated by employees.

9.	Travel outside Canada
(a)	Damage to a federal vehicle registered in Canada while on official business outside Canada is covered by the self‑underwriting policy.
(b)	Insurance for third party liability and personal injury is required for travel in the United States (US).  Public Works and Government Services Canada arranges a contract each year to provide commercial insurance to cover travel to the US.  The designated insurer provides proof of insurance documents for vehicles on request for immediate or future use.  The annual charge for insurance is based on use estimates calculated from prior years' data provided by departments to the insurer through PWGSC.  Proof of insurance documents must be carried in the vehicle while travelling in the US.
(c)	Government vehicles licensed outside Canada for use at Canadian ports abroad fall under the separate authority of  Foreign Affairs and International Trade Canada, which arranges for liability insurance pursuant to international protocols.

10.	Environmental considerations
(a)	To the extent possible, departments should minimize the adverse environmental impact of motor vehicle operations and maintenance.  Section 17 of these guidelines provides a checklist to help you quickly assess opportunities to "green" your fleet.  
(b)	While much improved in new models, vehicle exhaust emissions continue to pose an environmental hazard, particularly from older models still in operation.  Departments should provide scheduled maintenance to pollution control equipment on every vehicle and repair or dispose of vehicles that significantly exceed normal exhaust emissions for that model year and type of vehicle.  

11.	Air conditioning
When vehicles with air conditioning are required, those using CFC‑free refrigerant should be purchased.  CFCs should not be removed from vehicles' air conditioning systems before disposal.  Only qualified technicians with appropriate recovery and recycling equipment should work on air conditioning systems in federal vehicles.  Air conditioning that is part of the standard equipment for a vehicle should not be removed at the time of purchase.  However, air conditioning provided as optional equipment should be essential to the job being done or should provide a lower life cycle cost for the vehicle, or both.
12.	Vehicle pooling
Departments should use motor vehicle pools to the fullest possible extent for economy and should carry out regular maintenance on pooled vehicles to increase safety and economy.  In complexes where there are two or more departments, they should consider sharing a  pool of vehicles.  
13.	Federal Identity Program
The Federal Identity Program promotes the use of the Government of Canada signature as the only marking for vehicles, buildings, and other assets.  Departmental signatures are expensive in times of continuous change and do not promote having a common pool of vehicles.  This common government signature reduces cost and provides more flexibility for managing the fleet.  
14.	Seasonal use of vehicles
Departments requiring seasonal use of vehicles should consider seasonal leases or the disposal of owned vehicles at the end of each season.  The most cost‑effective approach should be used based on a cost‑benefit analysis that incorporates the life cycle cost to purchase or lease the vehicle (see life cycle cost under explanation of terms).  
15.	Options selection criteria
(a)	The following guidelines outline options that departments may acquire with government motor vehicles, but that are considered to be beyond normal requirements for motor vehicles (e.g., cassette players, power windows or power seats).
(b)	In deciding which, if any, options to recommend for approval, departments should consider:
(i)	whether the employees need the option to carry out their duties;
(ii)	the public’s perception when departments provide what could be considered luxury options for government vehicles;
(iii)	cost implications such as the initial purchase, operating expenses, and resale value (reasonable options can add to the initial cost of the vehicle and may result in higher maintenance costs, but countervailing reasons such as increased employee productivity and higher resale value may offset the increased initial cost);
(iv)	the efficiency and safety of the employees using the vehicle;
(v)	normal fleet practice (i.e., the normal government or private sector practice for the type of work being carried out);
(vi)	the location where the vehicle will be used; 
(vii)	consistency (i.e., equitable treatment to employees in similar work environments and work circumstances); 
(viii)	the effect on life cycle cost; and
(ix)	the difference in cost between, on one hand, models with significant upgrades in options and, on the other hand, higher level base models where the options required are standard equipment.  It may be less expensive to buy vehicles with extensive standard features than it is to add options to a lower model, especially if these vehicles retain more value when disposed of.
(c)	The rationale and supporting documentation should be maintained on file for decisions taken.  This is particularly important where decisions result in higher initial cost.  These documents should be available for audits or other evaluations.

16.	Monitoring criteria
The purpose of the following questions is to provide guidelines for monitoring and auditing motor vehicle fleets.  
(a)	Have baselines been established from which departments can regularly measure improvements in vehicle fleet operations?
(b)	Is the department using the most effective method to acquire, use, maintain, and dispose of vehicles to achieve the lowest life cycle cost? 
(c)	Is the department adequately justifying deviations from approved specifications and standards (e.g., operational requirements in the case of larger vehicles)?
(d)	Is the department applying the policy to all categories of departmental vehicles, whether purchased or leased? Are adequate records being maintained to provide an audit trail that supports departmental choices? 
(e)	Is the department taking full advantage of the private sector credit card system for recording vehicle expenditures and other related data? Is the system recording environmental data such as the use of cleaner alternative fuels and recycled oil?
(f)	Has the department established adequate controls over the use of its vehicles?
(g)	Have other less costly but effective controls been considered?
(h)	Is the department monitoring the use of private motor vehicles for government business and using that information in acquisition decisions?
(i)	Is the department following the Federal Identity Program requirements and affixing, to the vehicle dashboard, the unauthorized use decal (CGSB) Standard Form 86P (Revised), available from PWGSC?
(j)	Have other methods for providing vehicles been considered, such as using private vehicles with paid mileage or pooling vehicles within the department or between departments where it is cost‑effective?

17.	Green Fleet Management Checklist
(a)	The Green Fleet Management Checklist was developed by the Office of Federal Environmental Stewardship, Environment Canada, to help departments evaluate their vehicle fleets.
(b)	Adverse environmental effects resulting from corporate vehicle use can be minimized through environmentally responsible fleet management.  The three major environmental concerns facing fleet managers and operators are energy consumption, emissions, and waste generation.  As a guide to environmentally responsible fleet management, the following checklist should be used to evaluate departmental fleets.

17.1	Planning
–	environmentally responsible fleet management guidelines developed
–	needs carefully assessed to minimize fleet size
–	vehicle use and routing carefully planned to maximize efficiency and minimize mileage driven

17.2	Acquisition
–	vehicles of appropriate size and attributes purchased according to the needs assessment
–	vehicles selected are as fuel efficient and durable as possible
–	harmful emissions reduced through buying alternative fuel vehicles or converting vehicles that can meet Transport Canada emission requirements for new vehicles (for the same model year)
–	ecological products such as coolants and re‑refined oil certified by Environmental Choice purchased where available and cost‑effective
–	ecological cleaning products purchased in bulk and in a non‑aerosol format
–	water with four drops of dishwasher soap substituted for windshield washer fluid in summer months when deemed safe and practical for local driving conditions
–	retreaded tires purchased for large‑wheeled or slow‑moving vehicles

17.3	Maintenance and Operations
–	preventive maintenance performed regularly to ensure optimal vehicle operation
–	where facilities exist, recycled oil and lubricants, engine fluids, antifreeze, batteries, and tires recycled
–	fuel consumption and vehicle maintenance records monitored regularly
–	driver inspections carried out weekly and prior to extended trips to ensure correct tire pressure, oil, and coolant levels, and to identify possible signs of other fluid leaks
–	periodic testing of vehicle emission levels through federal testing program
–	CFC‑based air conditioning maintained by repair shops that capture, clean, and recycle used CFCs
–	for bulk‑segregated collection of used oil:  tanks and overflow systems designed for containing spills
–	vehicle operator awareness programs in place, perhaps in conjunction with existing safe driving courses, for reducing fuel consumption and emissions.  These programs include:
(i)	reducing idling time
(ii)	minimizing air conditioning use (if applicable)
(iii)	adopting conservative driving habits such as gradual acceleration, strict adherence to speed limits, and anticipation of traffic movements
–	through environmentally responsible contract clauses, maintenance contractors required to follow sound practices such as those described herein

17.4	Disposal
–	maintenance contractors required to follow sound disposal practices
–	if facilities are not available for collecting and recycling hazardous materials such as waste oil, lubricants, antifreeze, and batteries, steps must be taken to ensure waste is disposed of safely 

17.5	Monitoring
Departments should ensure that the systems they use to compile operating and maintenance data on the departmental fleet incorporate a capacity to track environmental data.  At a minimum, whenever it is practical, departments should track fuel used by specific type (e.g., ethanol 5,10,15,85 or similar methanol blends, diesel or biodiesel, regular, mid‑grade or high‑test gasoline, natural gas, or propane) and oil used, either refined, re‑refined, or synthetic.

Appendix D – Motor vehicle accident claims
This text has been copied from the Claims and Ex gratia Payment Policy as revised June 1, 1998.
1. Provincial unsatisfied judgement funds
Before attempting to recover from provincial unsatisfied judgement funds any claims resulting from automobile accidents, departments should abide by all applicable provisions established by provincial legislation, including any limitation period. In this instance, the Crown is governed by the same liabilities imposed by provincial laws as any subject of the Crown. As the periods vary between provinces and are changed from time to time, departments should consult their legal services without delay.
Because proceedings leading to attempts to recover from unsatisfied judgement funds are complex, technical and expensive, departments should take prompt action to obtain satisfaction of claims by the Crown by other means.
If the size of the claim and the failure of alternative collection action makes it reasonable to seek redress from an unsatisfied judgement fund, the department should ensure that the claim is referred to the Deputy Minister of Justice within the limitation period prescribed for a subject of the Crown. In most provinces the prescribed period is one year.
2. Motor vehicle property damage claims
Except as provided below, claims are to be handled in the usual manner of claims by and against the Crown in respect of collisions with motor vehicle owners and their insurers.
Certain provinces have established a system of direct compensation to resolve motor vehicle property damage claims. In that context, pursuant to Treasury Board decision of September 17, 1992, the President of the Treasury Board, in consultation with the Minister of Justice, has the authority to commit federal entities within the application of this policy to adopting a motor vehicle damage claim scheme in the provinces. In some provinces (e.g. Quebec) such a scheme is referred to as "direct compensation" and in others (e.g. Ontario) as "no fault". To implement such a commitment, the TB decision also authorizes the President, if necessary, to enter into an agreement with a single representative of insurers in any province. Accordingly, the federal Crown has filed a formal undertaking with the Ontario Insurance Commission for motor vehicle accidents in Ontario and has negotiated an informal arrangement with the Groupement des assureurs automobiles (GAA) for motor vehicle accidents in Quebec.
2.1 Ontario
The following provisions pertain to property damage to motor vehicles sustained in an accident in Ontario. The claims arising from such damage, and the resolution of those claims are to be processed according to the provisions of the Ontario Motorist Protection Plan.
2.1.1 Direct compensation
Effective June 1, 1998 and in accordance with the undertaking filed by the Treasury Board of Canada Secretariat with the Ontario Insurance Commission, the following applies: 
-	in cases of automobile accidents occurring in Ontario that involve Ontario-insured vehicles and commercially uninsured government-owned or leased vehicles, the Crown will pay for its own property damage and will make no claims against owners of Ontario-insured vehicles. 

More specifically, the undertaking filed by the Treasury Board of Canada Secretariat reads as follows: 
"Although departments of the Government of Canada, as defined by section 2 of the Financial Administration Act, R.S.C. 19985, c. F-11, including the Office of the Secretary to the Governor General, (collectively the "federal Crown") are exempt from the requirement to be insured under the Compulsory Automobile Insurance Act, the federal Crown hereby undertakes that any property damage occurring in Ontario on or after June 1, 1998 and arising from the ownership, operation or use of an automobile owned by or leased to the federal Crown shall be settled in accordance with section 263 of the Insurance Act as though the federal Crown were an insurer licensed in Ontario that insures the automobile under a contract evidenced by a motor vehicle liability policy."
"This Undertaking shall remain in effect for so long as the federal Crown remains exempt from the requirement to be insured under the Compulsory Automobile Insurance Act, or until withdrawn by the federal Crown."

2.2 Quebec
The following provisions only pertain to property damage to motor vehicles sustained in an accident in Quebec, the claims arising from such damage, and the resolution of those claims in light of the Quebec Automobile Insurance Act. They will apply to all collisions occurring in Quebec as of January 1, 1997.
In Quebec, any insurer authorized to write automobile insurance under the Quebec Insurance Act and holding a license from the Inspector General of Financial Institutions is an authorized insurer and is a member of the Groupement des assureurs automobiles.Under section 173 of the Quebec Automobile Insurance Act, GAA has established a Direct Compensation Agreement (DCA) binding upon all authorized insurers, the Quebec government, its agents and representatives and any person referred to in section 102 of the Quebec Automobile Insurance Act (self-insured). Other parties not referred to in the act have voluntarily agreed to abide and be bound by the DCA.
2.2.1 Direct compensation
Under an informal arrangement with the GAA as representative of insurers in Quebec, the following apply: 
-	The Crown will pay for its own motor vehicle property damage as a result of a collision, as defined in section 1 of the DCA, occurring in Quebec, and will make no claim against owners of vehicles insured by an automobile liability policy in Quebec or any other party bound by the DCA, involved in such a collision. Likewise, those bound by the DCA have been advised by the GAA to forbear from suing the Crown for property damage resulting from a collision in Quebec involving Crown-owned motor vehicles. 

2.2.2 Conditions
This arrangement is subject to the following qualifications: 
-	Crown reserves right to sue and defend. The Crown reserves the right to defend any claims made against it by a party bound by the DCA or an insured party who insists on suing the Crown. The Crown also reserves the right to advance claims against vehicle owners whose insurers do not adhere to the direct compensation arrangement.
-	Furthermore, consistent with Section IV of the DCA, there are exceptional circumstances for which the Crown and other insurers have the right to sue:
	-	where the Crown vehicle is damaged while in the care, custody and control of any garage owner, any parking lot operator, a motor vehicle dealer (as referred to in the Highway Safety Code of Quebec), and any towing business operator;
	-	where the Crown vehicle is damaged while being towed;
	-	where the Crown vehicle is damaged by a vehicle which is exempted from being insured under an automobile liability policy for example: a farm tractor, a farm trailer, a snowmobile, a vehicle intended for use off a public highway, as provided by the Regulations respecting exemptions from the obligation to hold a liability insurance contract, O.C. 614-84. 

Note:
Where the owner of an exempted vehicle has chosen to have that vehicle covered by an automobile liability policy, then the provisions of the DCA apply to the settlement of a claim arising from an accident with that vehicle. 
-	Property Transported. For property transported in a Crown vehicle, which is lost or damaged as a result of an accident, the Crown will pay for the loss or damage to its own property up to a maximum of $2,000.00, and will have the right to claim any amount in excess of the $2,000.00 limit against the owner of the other vehicle.
-	Arbitration. Since the arrangement between the GAA and the Crown is informal, the Crown is not bound by Section V of the DCA pertaining to the arbitration of any dispute between parties bound by the DCA and resulting therefrom. 

3. Bodily injury
In the event that a servant suffers personal injury caused by a motor vehicle accident while on duty, it should be handled as an injury on duty according to the standard procedures in the Treasury Board’s Workers’ Compensation and Injury-on-Duty Leave policies that are part of the Insurance and Related Benefits group of Treasury Board policies.
Enquiries regarding the effect that receipt of compensation payments for bodily injury under provincial automobile insurance programs will have, or an employee's entitlement to benefits under the Public Service Disability Insurance Plan or the Long-term Disability Insurance Plan of the Public Service Management Insurance Plan (PSMIP), may be directed to the Safety, Health, Employee Benefits and Services Group of the Human Resources Branch, Treasury Board of Canada Secretariat.

Annex A – How to Approach Suppliers and Installers of Alternative Fuel Conversion Kits
Questions to ask potential conversion suppliers to help ensure that a qualified conversion is installed
Company detail
How long has the company been in business?
How many offices and locations does it have?
What technical support does it offer?
(a)	Field support?
(b)	Inside support (telephone)?
(c)	Training courses?

Warehousing
Are kits and spare parts readily available?
Which brands of equipment are carried (i.e., underhood components, electronics, and tanks)?
Equipment detail
What emission certifications or approvals has the equipment received?
What technical support does the conversion kit manufacturer provide?
Who are other Canadian distributors?
Where is the equipment manufactured?
What are the terms of the equipment and emission warranty?
What support is provided if there is a warranty dispute with the vehicle manufacturer?
What information is provided to the installer to ensure that the kit is installed correctly?
What information is provided to the vehicle operator (i.e., owner's manual with recommended maintenance information)?
Can fuel tanks be rented rather than purchased?
Equipment installer
How long has the installing company been in business?
How long have they been doing conversions?
How many conversions do they do annually?
Do they also do the service?
What equipment is required to do the conversion well?
How many installers does the company have?
How many conversions or kits do they sell annually?
Can the contractor or installer warrant the vehicle to meet Transport Canada emission standards for new vehicles of the same year, make, and model for the first year of operation?
Can the contractor or installer warrant the equipment and labour for one year after installation?
Can the contractor or installer provide evidence that the manufacturer’s warranty on the vehicle will not be affected by the installation?
Installation mechanic
What is the relationship with the installing company (is the mechanic an employee or a contractor)?
What qualifications does a mechanic need to become an installer for the company?
How often are training and qualifications updated?
Maintenance and service
Who provides warranty service for the vehicle?
What information is provided to the customer regarding service intervals and items requiring servicing?
Is the vehicle serviced where it was converted?
If not, how will normal vehicle servicing be handled?

Annex B – The Government Motor Vehicle Committee and the Task Force on Alternative Fuels in the Federal Fleet
1.	The Government Motor Vehicle Committee 
The Government Motor Vehicle Committee was formed to promote sound fleet management practices in departments, to advise Public Works and Government Services Canada (PWGSC) and to be the focal point for consultation on government motor vehicle matters.  It is responsible for:
(a)	advising PWGSC on planning and implementing new vehicle services;
(b)	formulating and recommending improved policies and procedures to the Secretariat;
(c)	considering suggestions to improve motor vehicle management; 
(d)	providing a focal point to discuss and resolve fleet policy implementation and general issues; and
(e)	promoting the standardization of vehicles in the federal fleet whenever it is cost‑effective while maintaining operational effectiveness.

2.	Task Force for the Federal Fleet Initiative – Fleetwise
(a)	The Task Force on Alternative Fuels in the Federal Fleet is made up of representatives from Natural Resources Canada, Environment Canada, Treasury Board of Canada, Secretariat and Public Works and Government Services Canada.
(b)	The Task Force:
(i)	helps departments to identify specific vehicles that are suitable for cost‑effective use of alternative fuels and reaches agreement with each department on a schedule for incorporating the use of alternative fuel vehicles in the departmental fleet to meet the policy requirements;
(ii)	provides detailed guidelines and advice to departments to assist them in making their selections.  Natural Resources Canada and Environment Canada will conduct pilot projects with their departmental fleet to ensure longer term knowledge of the market and availability of assistance to other departments making decisions about buying alternative fuel vehicles and using alternative fuels; 
(iii)	reports to the Treasury Board Motor Vehicle Committee semi‑annually on the agreements reached and on the progress departments are making in adopting alternative fuels according to the agreements and the impact the agreements have on meeting the policy requirements; 
(iv)	negotiates financial arrangements for private sector financing (with alternative fuel suppliers) of the incremental capital cost to purchase or convert a vehicle to use an alternative fuel.  This option would provide departments with a method of financing the initial incremental capital cost that would be repaid from the savings the department realizes at the pump by using the alternative fuel;
(v)	determines the CO2 tailpipe emission reductions for the federal fleet based on fuel consumption data provided by departments;
(vi)	organizes and conducts information and training sessions for departmental fleet managers and drivers;
(vii)	obtains advance product information from vehicle manufacturers and alternative fuel suppliers and encourages the development and technical advancement of alternative fuel vehicles and products that will benefit the Canadian market; and
(viii)	monitors emission results for a first‑year test on alternative fuel vehicles.

Annex C – Other Reference Material
Environment Canada, Greening the Fleet:  A Manager’s Guide.
Natural Resources Canada, The Car Economy Book.
Natural Resources Canada, Slow Down and Save! Driver's Tips for Energy Conservation.
For more information on improving energy efficiency, contact Natural Resources Canada.
For information on the Bureau of Real Property and Materiel, visit its site on the Treasury Board of Canada, Secretariat Web site at http://www.tbs‑sct.gc.ca/tb/rp/index.html.

Annex D – Recommended Minimum Fleet Data Fields
Data Fields	
Unique fleet vehicle number	
Model year	
Manufacturer	
Model name	
Motor vehicle specification codes used by PWGSC	
Number of cylinders in engine	
Size of engine by number of cylinders and litres	
Specific fuel type and grade (where applicable)	
Transmission ‑ automatic(A) or manual(M) and the number of gears (3, 4, 5)	
Transport Canada Rating ‑ City	
Transport Canada Rating ‑ Highway	
Plate	
VIN (Vehicle Identification Number)	
On‑road or taken‑on‑strength date	
On‑system date (if different)	
Most recent odometer reading in kilometres	
Most recent odometer date	
Annual kilometres driven, estimated using the most recent odometer reading and the taken‑on‑strength date	
Annual kilometres driven, estimated using the two recent odometer readings and dates	
Annual fuel consumption, using estimated annual kilometres travelled and the Transport Canada city fuel efficiency rating	
Actual annual and life fuel consumption – gasoline	
Actual annual and life fuel consumption – diesel	
Actual annual and life fuel consumption – natural gas	
Actual annual and life fuel consumption – propane	
Actual annual and life fuel consumption – methanol 85	
Actual annual and life fuel consumption – ethanol 85	
Actual annual and life fuel consumption – ethanol 7	
Vehicle fuel costs	
Vehicle maintenance and repair costs	
System Supplier Billing Codes	
Program name	
Physical location – street address	
Physical location – city	
Physical location – province	
Physical location – postal code