The sudden halt of the Écocamionnage Program may lead to the slowing down of Quebec’s transition to electric trucks, advocates fear

Quebec fleets looking to secure incentives for the adoption of electric medium- and heavy-duty trucks are facing disappointment after the government temporarily suspended its Écocamionnage rebate program this month.

The Écocamionnage program is a key component of Quebec’s 2030 Green Economy Plan. The plan is a long-term strategy to reduce greenhouse gas emissions, build resilience to climate change and foster economic growth.

It targets the reduction of GHG emissions in freight transport by incentivizing the adoption of electric medium- and heavy-duty vehicles (MHDVs) and clean technologies.

Now, the program’s sudden suspension — even if only temporary — is sparking concerns throughout Quebec’s trucking industry.

The Association du camionnage du Québec (ACQ), a non-profit organization with over 500 members representing public and private carriers and suppliers in Quebec’s trucking industry, says the sudden pause has left businesses in a challenging position.

In a statement on its website, the ACQ says, “Carriers, dealers, and manufacturers in Quebec have already warned that freezes on orders for electric vehicles will increase if no action is taken.”

This challenge stems from how the Écocamionnage subsidy is applied. Under the provincial program, fleets can only apply for the rebate after they’ve purchased and received the vehicle. (Unlike federal assistance, which applies the discount at the point of sale.)

Companies anticipating delivery of their vehicle(s) are now facing uncertainty about whether they will receive the provincial rebate.

Program’s budget reduced

The current version of the Écocamionnage program, which began December 14, 2021, was expected to run until March 31, 2025.

The Ministry of Transport and Sustainable Mobility posted the notice of suspension on the Écocamionnage website on September 6, citing “exceptional enthusiasm” and an overwhelming “high number of applications.”

However, a closer look at the program reveals budgetary concerns that have been present since earlier this year.

The Quebec government set the 2024 budget for the rebate program at $30 million in June, down from the $55.8 million initially forecast in the 2023–2028 Implementation Plan.

According to Émilie Lord, public relations officer and spokesperson for the Ministry, the budget was cut to “balance the financial framework” of the new 2024–2029 plan.

In an email to Electric Autonomy, Lord explains the program’s funding is reviewed annually. This is to account for evolving climate goals and technological advancements.

“It is important to understand, however, that the program’s budget, like most government programs, is conditional on available funds,” says Lord.

Lord confirms that applications submitted before the Sept. 6 deadline will still be reviewed. Additionally, it will honour all commitments of financial assistance already made to successful applicants.

However, there is no word yet on when the program may be reinstated.

Funding revisions

The ACQ and its members are voicing frustration over the program’s suspension in letters to the Premier and other ministries. The ACQ is asking several major trucking industry players to join them in expressing their dissatisfaction about the situation.

The rebate program has been essential for many companies transitioning to electric fleets, including Kruger Energy, Coca-Cola Canada Bottling, Loblaw and Martin Brower.

Under the Écocamionnage rebate program, heavy-duty electric or plug-in hybrid vehicles in Quebec may qualify for a subsidy up to $175,000. There’s also an additional 15 per cent subsidy boost if vehicle manufacturing happens in-province.

The Ministry indicates a budget revision for the 2025–2026 fiscal year will come in the next iteration of the province’s 2025–2030 Implementation Plan. That update will come in 2025.

“In the short term, in view of the rapidly growing demand, the suspension of the program allows the Ministry to paint a fair picture of the situation in order to provide input into the possible solutions linked to the program,” says Lord.