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New Measures: Incentive Eligibility

Zero Emission Vehicle Infrastructure Program: Incentive Eligibility in Response to New Measures Announced by Finance Canada

On July 2nd, 2024, the federal government launched a 30-day public consultation on potential policy responses to protect Canada’s auto workers and its growing electric vehicle industry from China’s unfair trade policies and practices. Following these consultations, the federal government announced a series of measures to level the playing field for Canadian workers and allow Canada’s EV industry and steel and aluminum producers to compete in domestic, North American, and global markets.

As part of these measures and as of October 1st, 2024, the federal government will limit eligibility for support under the Zero Emission Vehicle Infrastructure Program (ZEVIP) to products made in countries which have negotiated Free Trade Agreements with Canada.

Program Questions:

  1. How could this affect projects that currently have Contributions in place?

    If you currently have a signed Contribution Agreement (prior to October 1, 2024) under ZEVIP you are not affected by these new measures as they are not retroactive. This exemption applies to both equipment that has already been purchased as well as purchases that will be made after October 1st, 2024.

  2. How does this affect projects that are applying for ZEVIP’s current Request for Proposals?

    The current RFP is closing on September 19th, 2024, before the measure takes effect. ZEVIP will accept proposals and review them based on the criteria in place before October 1st. If a project is selected for funding, during the Contribution Agreement negotiation period of 3 months, the program will allow the applicant to submit quotes or specifications that will comply with the measure implemented on October 1st, 2024. It is important to note that for projects starting after October 1st, 2024, to be eligible for funding under ZEVIP, charging or refuelling equipment will need to be manufactured in countries with which Canada has  an “In forced” Free Trade Agreement.

  3. Which countries does Canada have “negotiated” Free Trade Agreements with?

    A comprehensive list of countries that have Free Trade Agreements “In force” with Canada is available here.

  4. How does ZEVIP define the country in which the equipment was manufactured in?

    ZEVIP defines the manufacturing country based on where the was substantially manufactured (i.e. country of origin). To determine if the infrastructure is eligible for funding, ZEVIP reserves the right to validate the import transaction number issued by the Canadian Border Services Agency at any given point as prescribed by the Contribution Agreement and the surviving clauses. This number is available from the EV supply equipment company.

  5. Are there any documents or certifications required due to the new eligibility rules?

    Successful Proponents should plan to purchase and install EV chargers that are manufactured in a country in which Canada has a Free Trade Agreement. Successful Applicants will receive a Letter of Conditional Approval that includes language related to this measure and will be invited to negotiate and sign a Contribution Agreement that will enforce this.

    To determine if the infrastructure is eligible for funding, ZEVIP reserves the right to validate the import transaction number issued by the Canadian Border Services Agency. This number is available from the EV supply equipment company. It is the responsibility of the Proponent to retain any document that could be use in a recipient audit.

  6. Will ZEVIP increase its funding maximum as a result of potential higher costs of equipment after October 1?

    The Program must adhere to funding levels that were communicated during the RFP to maintain fairness and transparency. For example, an organization may not have applied for funding if they assessed that the NRCan Contribution was not sufficient to meet their project needs. If the Program was to increase funding levels after October 1st, the organization may have decided to apply and would consider the process unfair.

    Nonetheless, throughout the negotiation period of a Contribution Agreement, the project’s budget can be revised to reflect updated project costs and funding levels within the Program's technology caps and cost-sharing limits.

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