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Satellite image of Canada. This link opens a new window. Office of Energy Efficiency - Government.

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Incentives and Funding

Leadership Vehicle Initiative

"Leadership Vehicles" are vehicles that, because of their fuel type and/or advanced technology, significantly reduce vehicle emissions and/or improve fuel economy. In addition, the Alternative Fuels Act requires that as of April 1, 2004, where cost-effective and operationally feasible, most new vehicles purchased by the Government of Canada be capable of operating on alternative fuels.

In order to increase the proportion of Leadership Vehicles in the federal fleet, the Federal Vehicles Initiative (FVI) offers advice and other support to federal departments and agencies that wish to acquire these vehicles. Is an alternative fuel vehicle the right choice for your department?

As of the 2002/03 fiscal year, Leadership Vehicles (currently comprising alternative fuel and hybrid vehicles) accounted for 6 percent of the total federal fleet. Using Leadership Vehicles instead of conventional vehicles significantly reduces the federal fleet's greenhouse gas emissions that contribute to climate change.

Leadership Vehicles acquired by departments with the assistance of the FVI must meet certain criteria, including:

  • justified operational requirement to be met by the new vehicle
  • vehicle visibility
  • availability of alternative fuel
  • fleet composition
  • inter-fleet cooperation

Meeting these criteria ensures that environmental benefits are realized.

The FVI promotes the acquisition of Leadership Vehicles through sharing information and coordinating the efforts of federal fleet managers in planning their vehicle acquisitions for the 2005/06 fiscal year.

E-85 Fuel Credit Initiative

E-85, an 85 percent ethanol and 15 percent gasoline blend, provides superior performance characteristics and burns more efficiently than gasoline. Moreover, the ethanol portion is renewable. The FVI promotes greater use and purchase of E-85 fuel by the federal fleet. In return for support from the FVI, federal departments set E-85 usage performance targets.

E-85 Fuel Infrastructure

Availability of alternative fuel infrastructure is one of the major obstacles to the widespread use of alternative fuel vehicles in the federal fleet. The FVI works with other government departments and with municipal and provincial governments to determine locations for fuelling facilities. This initiative specifically supports the installation of the E-85 fuelling infrastructure

Optimal usage of these facilities often requires monitoring or inter-departmental/inter-governmental agreements. The FVI coordinates the development and implementation of such arrangements.

Demonstration Project Initiatives

Natural Resources Canada offers financial incentives to help implement new technologies and adopt new approaches to fleet management that benefit the environment and optimize fleet operations.

For more information, please contact the FVI at (613) 996-5902 or by e-mail.