TORONTO, ONTARIO--
New Ontario alternative fuel bonus + PST rebate = a lower price
for the cleaner bus
A provincial financial incentive for buying alternative
fuel-powered transit vehicles announced this year has erased the
price premium for cleaner-burning natural gas buses - and in fact
made them cheaper than conventional diesel buses.
"Thanks to this new initiative by the Eves government, it now
actually costs a municipality less to buy a cleaner,
environmentally preferred natural gas-powered bus than a diesel
bus," said Stan Kokotka, Manager, Natural Gas Vehicles, Enbridge
Gas Distribution Inc.
"We already know that using natural gas-powered buses instead of
diesel substantially cuts smog and toxic emissions," said Mr.
Kokotka. "Compressed natural gas (CNG) bus technology has been
market-tested for 15 years and today accounts for 20 per cent of
North American bus production."
The new incentive means that the province will pay municipal
transit authorities replacing existing buses one-third of the
difference in the cost between diesel-powered buses and
alternative fuel-powered buses, most of which run on CNG. The
list price for CNG buses typically is 15 to 20 per cent more than
diesel buses.
This incentive, when combined with the existing provincial 33 per
cent subsidy for all transit vehicles and the existing provincial
sales tax (PST) rebate for the entire cost of an alternative fuel
transit vehicle, makes the cost of a CNG bus lower than the price
of a diesel bus.
Following is a comparison of the costs related to the purchase of
a new diesel bus compared to a CNG bus.
Diesel bus CNG busBase price $500,000 $590,0008% PST 40,000 47,200PST rebate Not applicable (47,200)Provincial transit subsidy (1/3 of cost) (166,667) (196,667)Alternative fuel bonus Not applicable (30,000)Cost per bus $373,333 $363,333
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