Federal Finance Minister Bill Morneau\u2019s first budget tabled today is aimed tax cuts and programs for the \u201cmiddle class\u201d, battling climate change though green technology and carbon pricing, and boosting infrastructure for cities.<\/p>\n
Below are some of the main highlights of the 2016 Budget as they could relate to the trucking industry, directly or indirectly:<\/p>\n
Infrastructure \/ Green Initiatives\u00a0 <\/strong><\/p>\n The government plans to\u00a0invest more than $120 billion in total infrastructure, including transit funding and programs to combat GHG emissions, over 10 years in two phases.<\/p>\n Budget 2016 proposes to invest $5 billion over the next five years in infrastructure that \u201cprotects communities and supports Canada\u2019s ongoing transition to a clean growth economy,\u201d including investments in electric vehicle and alternative transportation fuel infrastructure.<\/p>\n The budget sets aside $62.5 million over two years, starting in 2016\u201317, to Natural Resources Canada to support the deployment of infrastructure for alternative transportation fuels, including charging infrastructure for electric vehicles and natural gas and hydrogen refueling stations. The government says it will advance these objectives by working with provinces and territories, municipalities and the private sector.<\/p>\n \u201cEarly action is needed to support the transition to low-carbon transportation fuels, as vehicle choices made today will determine the mix of technologies on the road in 2030,\u201d the budget stated.<\/p>\n The budget refers to tax support for clean vehicles, although only electric vehicles and natural gas facilities \u2013 not natural gas engines \u2013 are specifically mentioned. Budget 2016 proposes to expand eligibility for accelerated capital cost allowance (CCA) in electric vehicle charging and electrical energy storage. The budget also reiterates the CCA allowance currently available for certain liquefied natural gas (LNG) facilities.<\/p>\n The language in the budget as it relates to electric and LNG did not specifically refer to commercial vehicles, although CTA is engaging in discussions with the federal government on how this funding can help support and expedite alternative, green power for commercial vehicles into the market place.<\/p>\n The budget also proposes $2.9 billion over five years to support the development of\u00a0 a \u201cLow Carbon Economy Fund.\u201d Pricing carbon, states the budget, will be a key element to transitioning\u00a0 to a low carbon economy.<\/p>\n To budget also includes $75 million to support\u00a0 \u201cmunicipalities\u2019 front-line efforts\u201d to address climate change, to be delivered by the Federation of Canadian Municipalities as well as $125 million over the next two years to the Federation of Canadian Municipalities to enhance the Green Municipal Fund. These investments\u00a0 are aimed municipality-led projects to identify and implement GHG reduction opportunities and municipal green infrastructure projects. Again, CTA and the provincial trucking associations will be looking at how the trucking industry can participate.<\/p>\n There were no specific funding details in the budget for\u00a0highways or bridge infrastructure, except to say that the government aims\u00a0 \u201cto deliver fast, efficient trade corridors that allow Canadian exporters to benefit fully from international trade.\u201d It notes \u201cambitious projects will be supported to reduce urban transportation congestion, improve and expand trade corridors, and reduce the carbon footprint of the national energy system.\u201d<\/p>\n Border<\/strong><\/p>\n In its pre-budget submissions, CTA frequently calls for funding and investment for initiatives that ensure the efficient movement of goods across the border. This budget makes a general mention of border infrastructure support. It states: \u201cBudget 2016 proposes to provide $3.4 billion over the next five years, on a cash basis, to maintain and upgrade federal infrastructure assets such as national parks, small craft harbours, federal airports and border infrastructure.\u201d CTA is hopeful that part of the border infrastructure funding will be allocated to RFID infrastructure.<\/p>\n Vehicle Technology \/ Manufacturing <\/strong><\/p>\n Budget 2016 proposes to provide $7.3 million over two years to increase inspection capacity and support the development of a regulatory framework for emerging vehicle technologies, such as automated vehicles. The budget also announces the elimination of\u00a0 tariffs on about a dozen manufacturing inputs, providing an estimated $9 million in tariff savings over the next five years to Canadian manufacturers in the consumer goods and transportation sectors. Moreover,\u00a0the budget extends the Automotive Innovation Fund, which is currently scheduled to sunset at the end of 2017\u201318, through to the end of 2020\u201321.<\/p>\n Odds & Ends<\/strong><\/p>\n\n
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