Government of Canada and Clean Air Join Forces to Get Gas-Guzzlers Off the Road

OTTAWA, ONTARIO, Jun 04 (MARKET WIRE) --
Canada's Environment Minister, John Baird, today was joined by the Clean
Air Foundation to launch a National Vehicle Scrappage Program, which will
offer incentives to people who retire their 1995 or older model vehicles.

This program will be fully operating by January 2009, and will encourage
people to scrap their gas-guzzling vehicles and to turn to
environmentally-friendly transportation. The incentives include:

- Public transit passes;

- Bicycles;

- a rebate on the purchase of a new car;

- Membership in a car-sharing program; or

- $300 cash.

"We know Canadians want to do their part to help clean up the air we
breathe and our Government shares their desire," said Minister Baird.
"That's why we are launching a national program to get Canadian's
smog-causing gas-guzzlers off the road. This investment, combined with
our Turning the Corner plan to cut air pollution from industry by up to
50 per cent, is what Canadians want and what we are delivering."

The Government is providing $92 million over four years to implement the
program, which will be delivered by the Clean Air Foundation - a national
not-for-profit organization that runs the award-winning Car Heaven
program.

"We are thrilled to be leading this program," said Ersilia Serafini,
Executive Director of the Clean Air Foundation. "Car Heaven is a leading
program in Canada and we look forward to working with additional local
programs to build on their experience and to enhance this network
nationally even more."

Of the 18 million cars and trucks on Canada's roads, about five million
were manufactured before 1996 (which is when new environmentally
conscious standards were introduced). These pre-1996 models produce about
19 times more air pollutants than newer cars and trucks.

Until the program is fully up and running in January 2009, the Government
of Canada is providing $3.4 million funding to local vehicle scrappage
programs across the country.

This will encourage Canadians to take action now by rewarding them with
incentives for retiring their old vehicles that will be part of the
national program. These local scrappage programs will have an opportunity
to become part of the Clean Air Foundation's network for the delivery of
the new national program in 2009.

As part of the Government's commitment to high environmental standards,
the program will also include a National Car Recycling Code of Practice.
This tough code, currently being developed with the Automotive Recyclers
of Canada will raise the standard of environmental care for vehicle
recycling and apply to all participating recyclers.

The Automotive Recyclers of Canada (ARC) and its provincial associations
have partnered with the Clean Air Foundation over the years to help
deliver vehicle scrappage programs. "We look forward to helping take this
to a national scale through our network of local auto dismantlers and
recyclers," said Steve Fletcher, Managing Director of ARC. "Ensuring that
the vehicles are properly and permanently retired is the expertise we
bring to the national program."

This initiative is part of the Government's Turning the Corner action
plan, which includes a commitment to reduce emissions from transportation
sources and cut smog-forming industrial air pollution in half by 2015.

For information on the vehicle scrappage program, please consult the
related Backgrounder or visit: www.ec.gc.ca/VehicleScrappage.

BACKGROUNDER

Government gets tough on smog-forming air pollution:

Canada's New National Vehicle Scrappage Program

Protecting and preserving our environment is a priority for Canadians and
this Government. Canada's new National Vehicle Scrappage Program will
create incentives for Canadians to trade in their old, higher-polluting
vehicles and promote environmentally friendly transportation choices. By
replacing older, higher-polluting vehicles with newer, cleaner
alternatives means cleaner air and a healthier environment for Canadians.

Older Vehicles and Air Pollution

Of the 18 million personal vehicles in use in Canada, an estimated five
million are 1995 or older models. These older vehicles were not
manufactured according to today's more stringent emissions standards, and
produce 19 times more smog forming air pollution than newer vehicles.
Although they make up less than one-third of vehicles on the road, older
cars generate as much as two-thirds of the smog-forming pollutants caused
by personal vehicle use.

The Government of Canada is committed to cleaning up the air Canadians
breathe and that's why we are launching a new national vehicle scrappage
program with $92 million in funding that offers Canadians rewards for
voluntarily retiring their old, high-polluting vehicles. In addition to
reducing air pollution, the program will reduce greenhouse gas emissions
by promoting environmentally-friendly transportation alternatives. It
will also ensure that vehicles are recycled responsibly, thereby further
preventing the release of harmful substances into the environment.

The new national program will be delivered by the Clean Air Foundation,
who will develop partnerships and a local delivery network to offer a
range of new rewards that will be available in all provinces beginning in
January 2009. In the meantime, the Government of Canada will provide
substantial funding to existing local vehicle scrappage programs for
expanded program delivery and incentives. These local organizations will
have an opportunity to become part of the Clean Air Foundation's national
network of partners who will help deliver the national program in 2009.

Building on Success

The first Canadian vehicle scrappage program aimed at retiring old,
"live" (licensed, insured, and in running condition) vehicles was the
Scrap-It program, launched in lower mainland British Columbia in 1996.
Since then, other initiatives run by not-for-profit organizations have
been introduced across Canada.

The Government of Canada will provide $3.4 million to fund the
not-for-profit organizations for delivery of local scrappage initiatives
until December 31, 2008.

These local scrappage initiatives include:

(i) BC Scrap-It program (Vancouver, British Columbia) (i) Cash for
Klunkers (Kelowna, British Columbia) (i) Car Heaven Alberta (Calgary,
Edmonton, Lethbridge, Alberta) (i) Bye Bye Beaters (Winnipeg, Brandon,
Manitoba (i) Faites de l'air!, Quebec (Quebec areas served by public
transit) (i) New Brunswick Vehicle Scrappage (Fredericton, Moncton, Saint
John, New Brunswick) (i) Nova Scotia Steer Clean (Halifax, Nova Scotia)
The Clean Air Foundation, which has proven its ability to successfully
manage a national scrappage program, will deliver the new program with a
network of national and local partners, including not-for-profit
organizations that currently deliver local scrappage initiatives.

Of the $92 million in this national program, the Clean Air Foundation
will be receiving up to $61 million to manage the new vehicle scrappage
program and provide rewards to Canadians. The foundation will be eligible
to receive an additional $14 million for rewards to Canadians, starting
April 2009, based on performance and delivery of the program.

The remaining part of the $92 million (approximately $12 million)
allocated for this program will be used by Environment Canada for program
administration, research, tracking and evaluation, the development of a
national code of practice for vehicle recyclers, audits of recyclers, and
program promotion.

Rewards

The rewards will include options to encourage the use of
environmentally-friendly transportation, like a public transit pass or a
membership in a car-sharing program, or $300 cash. Although rewards could
also include a rebate on the purchase of a newer vehicle, no federal
funding will be used for the vehicle rebates. Instead, manufacturers and
dealers will be encouraged to become partners in the new program.

Vehicle Eligibility

Canadians who own personal vehicles (i.e. cars, pick-up trucks, minivans,
or sport-utility vehicles) made in 1995 or earlier can trade their old
vehicle for an incentive if it is in running condition and has been
registered and insured with the current owner for at least the past six
months.

Owners of vehicles that are not eligible for a reward could receive a tax
receipt for the value of the scrap metal. The Clean Air Foundation and
local scrappage initiatives will collaborate with car donation programs
run by various charities.

Responsible Vehicle Recycling

If not handled properly, scrapped vehicles can damage the environment by
releasing harmful substances such as oil, antifreeze, and mercury.
Environment Canada has been working with the Automotive Recyclers of
Canada to develop a national code of practice for vehicle recycling to
ensure high environmental standards and consistent practices for vehicles
retired under the program. Participating recyclers will be required to
follow this code, which is expected to be finalized later this year.

Other Initiatives to Reduce Transportation Emissions

The Government of Canada's comprehensive environmental agenda includes
initiatives such as the ecoMOBILITY program to help increase transit
ridership and alternative transportation; the ecoENERGY for Personal
Vehicles program to encourage Canadians to make better purchasing,
driving and vehicle maintenance decisions; a Pollution Prevention Notice
for automotive manufacturers and steel mills to address the uncontrolled
release of mercury from the processing of scrap vehicles that contain
mercury switches; and action on renewable fuels.

For more information on the new national vehicle scrappage program, or
existing local programs, please visit: www.ec.gc.ca/VehicleScrappage.

offert en francais

Contacts:
Office of the Minister of the Environment
Eric Richer
Press Secretary
819-997-1441

Environment Canada
Media Relations
819-934-8008
1-888-908-8008
www.ec.gc.ca

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