STAFF REPORT

March 1, 2000

To: Planning and Transportation Committee

From: Paula M. Dill, Commissioner, Urban Development Services

Subject: Refining Qualifications for Taxi Natural Gas Extension

Purpose:

To report, as directed by the Licensing Sub-Committee on February 14, 2000, on a mechanism for closing the loophole which allows taxicab owners to convert their vehicles to natural gas in the final year of the vehicle's life as a taxicab simply to qualify for the two-year extension.

Financial Implications and Impact Statement:

There are no financial implications arising.

Recommendations:

It is recommended that:

By-law 20-85 be amended to only allow a two-year extension to natural gas fuelled vehicles which are Originally Equipped Manufactured (OEM) vehicles or are converted to natural gas within six months of first being registered as a taxicab.

Comments:

Section 48, (8), paragraph (b) of Schedule 8 of By-law 20-85 provides that vehicles fuelled by natural gas may be granted a two-year extension to their use as taxicabs in Toronto. This provision was enacted in direct response to a recommendation contained in the October, 1998 Report to Review the Taxi Industry. The Task Force recommendation was based on environmental concerns surrounding the size of Toronto's taxi fleet and the twenty four hour-a-day operation of many of the taxis.

The situation that the current legislation creates is that a gasoline fuelled vehicle could be registered as a taxicab and operate for five years in this fashion before converting to natural gas to gain another two years' life as a taxicab. This situation is inconsistent with the intent of the Task Force recommendation which was to add incentive for an owner who elects to operate a more environmentally friendly vehicle.

OEM vehicles are available in today's marketplace but not all vehicle manufacturers provide them. It would be necessary for some owners who wished to purchase a particular type of vehicle to convert to a natural gas burning engine after purchasing the vehicle. It is anticipated that this conversion could be completed within six months of purchase.

Conclusions:

The recommendation to amend the by-law to only allow for the extension for factory installed natural gas vehicles or vehicles converted within six months of registration as taxicabs will effectively close the loophole which exists in the current legislation.

Contact:

Bruce Robertson, Director

Taxi Industry Unit

Municipal Licensing and Standards

Urban Development Services

Telephone: 392-3070; Fax: 392-3102

PAULA M. DILL

Commissioner

Urban Development Services

BR/dg

February 17, 2000

To: Commissioner, Urban Development Services

From: City Clerk, Licensing Sub-Committee

Subject: Propane Gas/Alternate Fuels

At its meeting on February 14, 2000, the Licensing Sub-Committee received the following submissions regarding propane gas/alternate fuels:

· (February 9, 2000) from Stan Steiner, Taxicab Consulting Services, forwarding comments respecting jurisdiction over fuel safety standards;

· (February 11, 2000) from Brian Maher, NGV Business Development, Enbridge Consumers Gas, forwarding a summary of their current commitments to the City and Industry Stakeholders in terms of Taxi Reform;

· (February 10, 2000) from Jeff Passmore, IOGEN Corporation, forwarding comments to the Fuel Safety Network Inc. respecting By-law 20-85 and suggesting that the City of Toronto adjust its by-law to stipulate that all "alternative fuels" are to be encouraged for use in taxis;

· (February 7, 2000) from Baljit Sikand, BEST-TECH Auto Repair, forwarding comments respecting the current by-law and suggesting that it is discriminatory;

· (undated) from Wali's Gas Bar requesting that the Sub-Committee take a fuel neutral approach;

· (February 10, 2000) from Rachhpal Singh, Bellamy Auto Garage & Barnala-Transportation Ontario Inc., requesting that the Sub-Committee take a fuel neutral approach

· (February 14, 2000) from Tom Corrigan, Superior Propane Inc., requesting the Sub-Committee to reconsider By-law 20-85;

· (February 14, 2000) from Alex Goerk, Carling Propane Inc., submitting marketers' view of the recent by-law change relative to the fuel use issue for Toronto taxi operators;

· (February 14, 2000) from John E. Ammar, P.C.I. Propane Conversions Inc., respecting the unfairness of the two-year extension to Natural Gas fueled cars; and

· (February 10, 2000) Ford News Release, submitted by Tony O'Donohue, titled "Ford Expands Alternative Fuel Lineup with Propane-Powered Super Duty F-Series".

The following persons addressed the Licensing Sub-Committee respecting Propane Gas/Alternate Fuels:

(1) Brian Maher, General Supervisor, NGV Business Development, Enbridge Consumers Gas

(2) Greg Zilbersard, National Account Manager for Alternative Fuel Vehicles, Ford, U.S.A.

(3) René Mallais, Technical Sales Representative, Enbridge Consumers Gas

(4) Dave Kennedy, Propane Gas Association of Canada

(5) Alex L. Goerk, President, Carling Propane Inc.

(6) John Ammar, PCI Propane Conversions Inc.

(7) Peter Zahakos, Co-op Taxi

(8) Randy Burkett, RNG Interquip

(9) Tony O'Donohue, P.Eng., Environmental Probe Ltd.

(10) E.W. Meikle, President, Toronto Taxi Drivers Association

Committee Action:

The Licensing Sub-Committee requested the Commissioner, Urban Development Services, to report to the Planning and Transportation Committee on the pros and cons of eliminating or retaining the provision in the Licensing By-law 20-85, Section 48, that allows a two-year extension of the use of motor vehicles which are fuelled by natural gas and used as standard taxicabs, and on ways by which the five-year loophole can be closed.

City Clerk

Renée Mina/ed

Item 1 (attached)

c.: Executive Director, Municipal Licensing and Standards, Urban Development Services

Director, Municipal Licensing and Standards, Urban Development Services

Committee Administrator, Planning and Transportation Committee

Interested Persons