In March 2007, the Canadian Government announced the Vehicle Efficiency Incentive (VEI) program, which contained an “ecoAuto” rebate for up to $2,000 CAD for purchases of fuel-efficient vehicles and a “Green Levy” on inefficient vehicles of up to $4,000 CAD. Much like the Ontarian provincial program, the majority of the Nation’s new vehicles fell in the “donut hole” and were not eligible for either the ecoAuto or the Green Levy. ecoAuto is no longer in effect, but the Green Levy program remains active.
The rebate program initially offered $1,000 for new automobiles with a combined fuel consumption rating of 6.5 L/100 km (43.5 mpg) or better and minivans, sport utility vehicles (SUVs) & other light trucks with fuel consumption of 8.3 L/100 km (34 mpg) or better, calculated based on a combined 55 per cent city and 45 per cent highway rating. An addition $500 was offered for each half litre per 100 km improvement in the combined fuel-efficiency rating of the vehicle below these thresholds, for a maximum total of $2,000. The ecoAUTO rebate program applied to 2006, 2007 and 2008 model-year vehicles purchased or leased (12 months or more) between March 20, 2007 and December 31, 2008. All applications must have been received by March 31, 2009.
A Green Levy was charged for new passenger vehicles (excluding trucks) with fuel-efficiency ratings of 13.0 L/100 km (21.7 mpg) or worse. The incentive structure will include a new Green Levy on these types of vehicles, payable by the manufacturer or importer when the vehicles are delivered into the Canadian market. The fuel-efficiency rating is calculated based on the same criteria as the rebate program above. The Green Levy will start at $1,000 for passenger vehicles with combined fuel-efficiency ratings of at between 13.0 L/100 km and 14.0 L/100 km (20.2 mpg), and increase in $1,000 increments for each full litre per 100 km increase in the combined fuel-efficiency rating above the 13.0 L/100 km floor, to a maximum of $4,000, for vehicles with ratings of 16.0 L/100 km (17.7 mpg) or worse.