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Ottawa pulling the plug on short-lived program that rewarded buyers of fuel-efficient vehicles, but keeps guzzler tax. (http://www.thestar.com/Federal%20Budget/article/307255)

http://www.cleanmpg.com/photos/data/501/2008_Fit_Sport.jpgTony Van Alphen - Toronto Star - Feb. 27, 2008

Canadian Honda Fit - from 32.3/40.6 mpgUS in 2007 to 33.1/41.3 mpgUS city/highway with a little help in the form of EcoAuto rebates.

With inclusion of a credit for FFV’s and some gas guzzlers in its second year iteration, it wasn’t perfect but it did create incentives for some automakers to move their vehicles FE higher. -- Ed.

Ottawa is eliminating a controversial rebate program for fuel-efficient cars after less than two years.

The federal government announced yesterday that it will no longer offer rebates ranging from $1,000 to $2,000 on eligible 2006, 2007 and 2008 models under the ecoAuto program after the end of this year.

"The program will not be available beyond the 2008 model year," said a one-line statement in the government's budget papers.

However, the government added it will keep its gas-guzzler tax or "Green Levy" of up to $4,000 on a few big sport-utility vehicles. The original levy never applied to pickup trucks.

Officials from the federal Finance Department said it was never the government's intent to extend the program beyond a two-year period… http://www.thestar.com/Federal%20Budget/article/307255

Thanks for the find Mike!

Hmm. I wonder why the incentives were controversial. In the US, we have plenty of incentives to be more energy efficient in our homes and I don't believe they are controversial. I guess it was the implementation that was controversial. I wonder what the criteria was to give the rebate. If it's just a straight-up mpg number, I don't see how that's worse than no incentive at all.

Hmm. I wonder why the incentives were controversial. In the US, we have plenty of incentives to be more energy efficient in our homes and I don't believe they are controversial. I guess it was the implementation that was controversial. I wonder what the criteria was to give the rebate. If it's just a straight-up mpg number, I don't see how that's worse than no incentive at all.
Most of the controversy I heard was from people representing groups that didn't make the cut. Buzz Hargrove of the Canadian Auto Workers union said the program meant less vehicle assembly jobs for Canadians as most of the vehicles meeting the criteria were not built by CAW workers.

The rebate has 3 tiers based on fuel efficiency. Minimum requirements are an average of 6.5L/100km (36mpg) for cars and 8.5L/100km (28mpg) for SUV's, which gives a rebate of $1000. Each 0.5L/100km improvement means another $500, up to a maximum rebate of $2000.