The federal government's recently released Budget 2016 proposes to provide more than $1 billion over four years, starting in 2017–18, to support clean technology in various sectors, including energy, forestry, fisheries, mining, and agriculture.
Of particular interest will be the accelerated capital cost allowance for storage technologies, as well as for charging stations for electric vehicles. Off-grid Indigenous and northern communities also get $10.7 million over two years for renewable energy projects to replace diesel power.
Under various categories, the budget proposes the following:
Accelerating Clean Technology Development
• More than $130 million over five years, starting in 2016–17, to support clean technology research, development and demonstration activities:
» $50 million over four years, starting in 2017–18, to Sustainable Development Technology Canada (SDTC) for the SD Tech Fund. These resources will enable SDTC to announce new clean technology projects in 2016 that support the development and demonstration of new technologies that address climate change, air quality, clean water, and clean soil.
» $82.5 million over two years, starting in 2016–17, to Natural Resources Canada to support research, development and demonstration of clean energy technologies.
Investing in Electric Vehicle and Alternative Transportation Fuels Infrastructure
• $62.5 million over two years, starting in 2016–17, 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.
Expanding Tax Support for Clean Energy – EVs and storage
Budget 2016 proposes to expand eligibility for accelerated capital cost allowance (CCA) rates in two important emerging areas: electric vehicle charging and electrical energy storage.
First, the incentive will be extended to include electric car charging stations, with the most generous treatment provided to chargers that provide enough power for long-distance travel.
Second, the range of stationary electrical energy storage equipment eligible under CCA Classes 43.1 and 43.2 will be clarified and expanded to explicitly allow a much broader range of equipment ancillary to eligible generation equipment. In addition, stand-alone electrical energy storage property will be included in Class 43.1 when the round trip efficiency of the energy storage is greater than 50 per cent.
Investing in World-Leading Researchers in Clean and Sustainable Technology
• $20 million over eight years, starting in 2018–19, to create two additional Canada Excellence Research Chairs in fields related to clean and sustainable technology. These Chairs will be selected, in addition to the anticipated 20 new Chairs, as part of the upcoming competition to be launched in the spring of 2016.
Increasing Federal Support for Clean Technology Activities in All Regions
• A doubling of annual aggregate support by Canada's six Regional Development Agencies for clean technology to $100 million per year, from existing resources, starting in 2016–17.
Advancing Regional Electricity Cooperation
• $2.5 million over two years, starting in 2016–17, to Natural Resources Canada to facilitate regional dialogues and studies that identify the most promising electricity infrastructure projects with the potential to achieve significant greenhouse gas reductions.
Environment
In addition, under the heading of a cleaner, more sustainable environment, Budget 2016 proposes to provide almost $2.9 billion over five years, starting in 2016–17, to address climate change and air pollution issues. The funding is to:
• Support the development of the pan-Canadian Framework, including a Low Carbon Economy Fund;
• Help ensure that Canada meets its international obligations;
• Take action to reduce emissions from Canada's largest sources—transportation and energy;
• Advance science and programming activities to better understand and adapt to the changing climate; and
• Enable evidence-based decisions to address air pollution.
Supporting the Pan-Canadian Framework on Clean Growth and Climate Change
• $2 billion over two years, starting in 2017–18, to establish the Low Carbon Economy Fund. The Fund will support provincial and territorial actions that materially reduce greenhouse gas emissions and are incremental to current plans, and achieve significant reductions within the period of Canada's nationally determined target. Resources will be allocated towards those projects that yield the greatest absolute greenhouse gas reductions for the lowest cost per tonne.
• $109.1 million over five years, starting in 2016–17, to Environment and Climate Change Canada to continue to advance the Government's domestic climate change objectives. The resources will be used to undertake actions in four interconnected areas: science, data reporting, policy and regulations. Sustained action on climate change, framed by sound science and driven by transparent reporting of results and ambitious policy and regulatory measures, will support the transition to a low-carbon economy in Canada.
Supporting Energy Efficiency and Renewable Energy Development
• $128.8 million over five years, starting in 2016–17, to Natural Resources Canada to deliver energy efficiency policies and programs, and maintain clean energy policy capacity. These resources will support improved energy efficiency standards and codes for products, buildings, industry and vehicles, and further the development of a legislative framework for offshore renewable energy projects.
• $10.7 million over two years, starting in 2016–17, to Indigenous and Northern Affairs Canada to implement renewable energy projects in off-grid Indigenous and northern communities that rely on diesel and other fossil fuels to generate heat and power. First Nations will also benefit from proposed new funding for the First Nations Infrastructure Fund (see Chapter 3—A Better Future for Indigenous Peoples), which will support a range of community infrastructure investments, including energy systems.
Adapting to Climate Change Impacts
• $129.5 million over five years, starting in 2016–17, to seven federal departments and agencies to implement programming focused on building the science base to inform decision-making, protecting the health and well-being of Canadians, building resilience in the North and Indigenous communities, and enhancing competitiveness in key economic sectors.
• An additional $40.0 million over five years, starting in 2016–17, to integrate climate resilience into building design guides and codes. The funding will support revised national building codes by 2020 for residential, institutional, commercial and industrial facilities. Guides integrating climate resiliency into the design and rehabilitation of public infrastructure are expected to be ready for adoption by 2020.
Ensuring International Environmental Cooperation
• $61.3 million over five years, starting in 2016–17, to Environment and Climate Change Canada, Natural Resources Canada and Global Affairs Canada to continue international environmental engagement, in particular with the United States and Mexico to advance Canada's climate change and air pollution objectives.
Further details about the allocation of the above funding are to be provided in the coming months as part of the implementation of the Government's Innovation Agenda.
Source: budget.gc.ca, chapter 4. http://www.budget.gc.ca/2016/docs/plan/ch4-en.html#_Toc446106748