Over 150 new compressed natural gas vehicles to hit the streets across B.C.

FortisBC awards an initial $6 million to convert fleets to natural gas, with further incentives to follow

SURREY, BC, March 1, 2013 /CNW/ - Communities around the province will soon see more natural gas-powered vehicles on the road after FortisBC awarded approximately $6 million in incentives to transportation operators to purchase compressed natural gas (CNG)-fueled vehicles for their fleets.

"These organizations have shown a commitment to choosing natural gas as a transportation fuel solution," said Doug Stout, vice president of energy solutions and external relations at FortisBC. "Building on the initial successes we've had with natural gas vehicles and the benefits they bring to the environment and our gas customers, this program is making widespread use of natural gas for transportation a reality."

The program was made possible following the creation of the Government of B.C.'s Greenhouse Gas Reduction regulation.

"The government of B.C. is committed to ensuring natural gas is a significant part of the transportation sector because it is cheaper, cleaner and abundant in B.C.," said Transportation and Infrastructure Minister Mary Polak. "This new program will help encourage more transportation companies to use natural gas as the transportation fuel choice of the future."

A total of approximately $6 million for CNG vehicles was awarded to the following vehicle fleet operators:

  • BC Transit - $937,500
  • BFI Canada - $937,958
  • City of Vancouver - $1,854,600
  • Cold Star Freight System Inc. - $450,997
  • Emterra Environmental - $745,500
  • School District No. 23 (Kelowna) - $67,893
  • Smithrite Disposal Ltd. - $953,775

The incentives were granted through a public and transparent selection process. The $6 million awarded is part of a $104.5 million program announced in May 2012 to assist qualifying heavy-duty fleet operators to purchase natural gas vehicles. The $104.5 million will help offset the cost of switching fleets to natural gas, fund training and upgrades to facilities to safely maintain natural gas vehicles, and to build CNG or liquid natural gas (LNG) fuelling stations.

In addition to decreased greenhouse gas emissions and noise, refuelling for CNG vehicles is estimated to be 25 to 50 per cent less expensive than refuelling traditional diesel vehicles due to the current difference in prices.​

Under the program, FortisBC provides funding to offset a percentage of the incremental capital cost between a qualifying natural gas vehicle and the cost of an equivalent diesel vehicle. Depending on the agreement, FortisBC could fund up to 75 per cent of the incremental cost of the natural gas vehicles.

Rounds of funding will continue over the next four years, with the next round beginning April, 2013. Eligible heavy-duty fleet operators can learn more by emailing ngt@fortisbc.com to receive updates or by visiting http://fortisbc.com/ngt.

FortisBC gas utility customers benefit from additional volumes of natural gas for transportation moving through FortisBC's pipeline system. Better year-round, utilization of FortisBC's infrastructure, especially during the summer months when heating requirements are reduced, helps to keep natural gas delivery rates low for all customers.

FortisBC is a regulated utility focused on providing safe and reliable energy, including natural gas, electricity, propane and thermal energy solutions. FortisBC employs more than 2,300 British Columbians and serves approximately 1.1 million customers in more than 135 B.C. communities. FortisBC is indirectly wholly owned by Fortis Inc., the largest investor-owned distribution utility in Canada. FortisBC owns and operates four regulated hydroelectric generating plants, approximately 7,000 kilometres of transmission and distribution power lines and approximately 47,000 kilometres of natural gas transmission and distribution pipelines. FortisBC Inc., FortisBC Energy Inc., FortisBC Energy (Vancouver Island) Inc., and FortisBC Energy (Whistler) Inc. do business as FortisBC. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com or www.sedar.com. 

SOURCE: FortisBC

For further information:

MEDIA CONTACT:

Michael Allison
Corporate Communications Advisor
FortisBC
Phone: 604-592-7536
fortisbc.com
twitter.com/FortisBC 
youtube.com/FortisBC


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