OCETA Becomes an Ontario Commercialization Network (OCN) Agent for the Market Readiness Program (MRP)

On October 16, 2007, OCETA was approved to become an OCN Agent for the Market Readiness Program's Business Advisory Service. See Update below for recent news!

MRP, operated through the MaRS facility and funded by the Ontario Ministry of Research and Innovation, is a single access point for entrepreneurial services and resources province-wide. The program was designed to meet the needs of start-up and early-stage science and technology companies as well as small- and medium-sized enterprises in these sectors.

The two major components of the MRP are Entrepreneur Training and Business Mentorship. Individual companies are eligible for up to $10,000 worth of services in a given year (defined as 12 months between individual projects). Examples of services that would be eligible for funding under the Business Advisory Assistance program are:

• Intellectual Property Protection – filing, translation and agent fees, both domestically and internationally. NB – the MRP will NOT contribute to 1st round filings, only subsequent rounds.
• Contracts of Licensing Expertise – fees to develop licensing agreements and negotiations thereof to conclude a licensing deal.
• Product Certifications – e.g. from CSA, UL, FM etc.
• 3rd Party Validation and Testing – such as preliminary testing, proof of the concept, and verification through ETV Canada. An independent test lab must be used.
• Specialized Research – meant to cover fees charged by an expert in the technology where the work performed is in the commercialization area not in the R&D area.
• Targeted Market Intelligence/Primary Market Research – fees charged by credible market research companies, university/college groups and specialized centres, such as OCETA and ETV Canada.

Access to the program can only be made through OCN agent organizations and Entrepreneurs in Residence (see Update below), by invitation only and on a case-by-case basis. For information on the program and locations of agent organizations please visit the program web site at: http://www.marsdd.com.

MRP-OCETA contact: Steve Guerin, 905-822-4133, e-mail sguerin ( @oceta.on.ca )

For information about OCETA please visit the web site at http://www.oceta.on.ca.

For information about ETV Canada please visit the web site at http://www.etvcanada.ca.

Update – March 2008: the MRP has approved an Entrepreneur in Residence (EIR) at OCETA, Mr. James Sbrolla, whose contact information is: Phone 416-828-2077 or 416-234-5120; e-mail james.sbrolla ( @ebccanada.com ). James will be the principal point of contact for SMEs interested in the services available from the MRP as well as the Innovation Accelerator Fund. Please see the announcement at www.oceta.on.ca/news_release/2008_mar17/.

Introducing our new promotional brochure
(Click for PDF)

ANNOUNCEMENT TO VENDORS/DISTRIBUTORS OF ENGINE/VEHICLE AFTER-MARKET DEVICES (EAMDs)

A series of meetings held thus far this year with stakeholders in the vehicle fleet area has produced the "Draft Protocol for Testing and Verifying the Performance of Engine and Vehicle After-Market Technologies" which was adopted by the Canadian Association of Municipal Fleet Managers (CAMFM) on May 31, 2007. The procedure as outlined in the protocol (herein, referred to as the "Guidance Document") is now the recommended approach. Fleet managers and engine/vehicle after-market device (EAMD) vendors agree on the stepwise approach of screening, lab testing and on-road testing and each of the lab testing and on-road testing steps would include testing, verification and cost benefit analysis.

We are now informing EAMD vendors about what this means in terms of pursuing ETV Canada verification, as required by the municipal fleet managers, and possibly other stakeholders.

A copy of the Guidance Document, Version 1.1, dated November 2, 2007, is provided here.

Who is ETV Canada?
ETV Canada is a division of the Ontario Centre for Environmental Technology Advancement (OCETA) and is the sole licensee of the Government of Canada’s Environmental Technology Verification (ETV) program, reporting to Environment Canada (EC). The ETV program provides third-party verification of environmental technology performance claims and assurance to the market that claims are based on high quality, independent test data. The ETV Canada program uses EC’s General Verification Protocol (GVP) and brings in independent test labs as well as independent Verification Entities (VEs) into each verification project. For further information about the ETV Canada process please visit the web site at www.etvcanada.ca.

What are the Benefits of obtaining ETV Canada verification for EAMDs?
There are several tangible benefits, including: compliance with the requirements and performance expectations of various fleets; a Technology Fact Sheet containing the specific performance claim(s) of the technology and a description of the technology; verifiable and credible data; competitive advantage over vendors without verification; and a basis for determining the environmental benefits of the technology in terms of GHG emission reductions potential. In addition, there may be the possibility of future co/joint verification with the USEPA-ETV program, depending on timing and the specific technologies of interest to the USEPA-ETV program.

What is the Purpose of the Proposed Test Procedure?
Most fleet managers do not have the technical ability to understand the numerous devices and methods claiming to reduce fuel use and tail-pipe emissions. Through this procedure, fleet managers will be able to understand how a particular device works but more importantly be provided with reliable data on its actual performance. In addition, the procedure provides a performance benchmark for all EAMD vendors and helps create a level playing field.

Applicability of the Testing and Verification Procedure
While the current process was developed in cooperation with CAMFM, it is nevertheless applicable to ALL fleets, e.g. Provincial and Federal Government, and private fleets, and to all EAMDs, if ETV Canada is involved.

Step 1 – PreScreening
It is recommended that an independent, qualified individual or organization be engaged to perform the preliminary technical review, with the cost borne by the vendor. Such an individual or organization must be independent and have subject matter expertise, e.g. automotive, mechanical engineering, chemical engineering related to the specific technology of the EAMD. Possible sources of expertise are the Society of Automotive Engineers, one of the recognized test labs, e.g. Emissions Research and Measurement Division, Environment Canada (EC-ERMD), Bodycote Materials Testing Canada Inc. or the Prairie Agricultural Machinery Institute (PAMI), or someone suggested by one of the three labs, which may include internal or external experts. A copy of the report generated by the consultant/expert should be provided to ETV Canada to initiate the applicant file. ETV Canada would not offer any commentary on the report except to the vendor. A short-cycle chassis dynamometer test is a recommended option as part of prescreening or prior to full-scale testing in order to provide feedback and avoid unnecessary costs to the vendor.

Step 2 – Testing Under Controlled Lab Conditions
The preferred approach is to have the vendor select one test lab from the three currently recognized labs and then select a different lab to act as the Verification Entity. An alternative test lab can be suggested, provided the lab is accredited to perform the test method(s) proposed and acceptable to ETV Canada. A copy of the technical pre-screening review should be provided to the selected lab. At this point it is very important to consult with EC-ERMD on the proposed test method(s) as EC-ERMD is the lead technical institution in the area of EAMD test method review and development. ETV Canada would be involved prior to any testing to ensure that the testing meets the criteria of the verification program, and the Environment Canada General Verification Protocol (GVP).

Step 3 – Verification
In the EAMD area, verification through testing under controlled conditions is mandatory, and whoever performs the testing cannot be the Verification Entity. If the vendor wishes to pursue the addition of road testing/verification, the two components could be combined into one verification project, if this is practical and warranted, e.g. there may be a lengthy time lag involved between controlled lab testing and on-road testing. A decision would be made by ETV Canada regarding the issuance of one or two verification certificates. The cost of verification is borne by the vendor, and pricing would be reviewed if two verifications are being pursued by any one vendor.

Step 4 – Cost Benefit Analysis
The respective fleet manager, or ‘buyer’, would be responsible for performing the cost benefit analysis and there should be no cost to the vendor. This analysis can only be performed after testing as the degree of statistically valid improvement (if any) in fuel usage and/or reduction in the tail-pipe emissions, would need to be quantified. A decision to accept or reject any particular EAMD on the basis of the cost benefit analysis rests solely with the fleet manager. The vendor must be prepared to accept the risk involved in testing and the potential to be rejected by the fleet manager. It is recommended that vendors have their own compelling cost benefit arguments in their favour, prior to initiating the verification process. Equally, it would be prudent to understand at what percentage improvement in fuel usage and/or tail-pipe emissions would be of interest to a particular fleet manager. This could be established through direct communication with the target fleet(s).

Step 5 – Pilot Testing Within the Fleet
On the assumption that a particular fleet expresses interest in a specific EAMD(s), the two parties can make suitable arrangements to perform the on-road testing within the fleet. As per the Guidance Document, a Portable Emission Measurement System (PEMS) could be involved, with suitable data logging, along with logging of other data such as vehicle performance and other factors that may affect fuel usage or emissions. The involvement of an independent, qualified test agent is recommended and mandatory if performance verification is being considered as part of this step. It is advisable that both ETV Canada and EC-ERMD be consulted prior to any on-road testing, so that the variables are understood and the testing methodology is sound. If verification of the on-road testing is being pursued, the involvement of ETV Canada is mandatory. The vendor and the fleet manager are free to negotiate any cost-sharing arrangement between them as appropriate. It should be recognized that the respective fleet manager may decide to perform an additional cost benefit analysis following the pilot program with the fleet. Furthermore, the decision to accept or reject any particular EAMD would rest solely with the fleet manager.

What is the role of Emissions Research and Measurement Division of Environment Canada (EC-ERMD)?
EC-ERMD is the lead technical institution in the area of test method development and review related to mobile emissions source control technologies. EC-ERMD has agreed to be the designated lead in these areas in a proposed effort to harmonize test methods and verification protocols with other jurisdictions around the world, e.g. the US and possibly the EU.

What do EAMD vendors do if they have existing data/results?
The intention is not to force vendors through the process if they believe that they have reliable data, whether it was generated in a lab, on-road or both, and in a particular jurisdiction, e.g. Canada, US, Europe etc. The recommended process is clear that dynamometer testing is mandatory, but flexible on the type of test and duty cycle. There are some instances (i.e. auxiliary power systems) where dynamometer testing may not be required. Where there is existing data, it may have been generated according to the current process and in fact may have been generated by one of the three recognized test labs (listed in the Guidance Document). ETV Canada is prepared to be flexible, but equally, will not take short-cuts regarding data quality and independently produced by an accredited laboratory or testing agency.

Current Status of Demonstration Project
There has been some discussion about pursuing a demonstration project potentially involving up to 10 different EAMD technologies. ETV Canada, in cooperation with CAMFM, has initiated discussions with a number of potential funding sources to augment any financial or in-kind contributions from EAMD vendors, CAMFM, and others. The cost of such a project would depend on a number of factors. Full funding of this demonstration project may not occur for several months. Therefore EAMD vendors may choose to pursue ETV Canada verification on their own, using the 5-Step process as outlined in the Guidance Document.

Other Points
- Reference should be made to the Guidance Document for more detailed information – this e-mail is intended to guide the vendors on some of the administrative and logistical details;
- Notwithstanding that municipal fleet managers are requesting ETV Canada verification of EAMDs, the process is still voluntary and vendors are free to market their product as they see fit and according to advertising standards;
- Nothing in the consultation process nor the Guidance Document is meant to act as a barrier to any vendor wishing to sell their product – it is the obligation of fleet managers to act prudently in undertaking their own procurement and installation activities and procedures;
- The consultation process and the development of the Guidance Document involved representatives of the EAMD vendor community;
- ETV Canada is committed to working with all stakeholders to ensure transparency, fairness, quality and reliable test results so that informed decisions can be made.

RECENT DEVELOPMENTS

• The Canadian Urban Transit Association has expressed an interest in the EAMD area.
• A delegation representing Environment Canada, NRCan, T.E.A.M. (Technology Early Action Measures) and ETV Canada, visited the USEPA-ETV program in Raleigh, North Carolina on July 16-17. The delegation also visited the Research Triangle Institute and Southern Research Institute. Discussions were held to explore co/joint verification in the EAMD and other areas. As a result of these meetings, a Diesel Sub Working Group was formed, consisting of technical representatives from Canada and the US. This group will, in part, examine technologies that might be suitable for co/joint verification – initially as pilot projects. Any EAMD vendor wishing to be considered should inform ETV Canada, keeping in mind that only a few vendors may end up being considered as potential pilot projects. There is NO financial subsidy being provided for these projects, however OCETA may be able to access limited funds to help defray some of the Canadian verification costs. Also, the Diesel Sub Working Group is looking for projects where the EAMD technology has a high probability of passing both the US and Canadian ETV programs. In light of this, any EAMD technology that only indicates marginal improvement in tail pipe emissions or reductions in fuel use are likely not going to be considered.

Additional Questions and Clarifications

For additional information, please contact ETV Canada:

Steve Guerin
General Manager ETV Canada
OCETA
2070 Hadwen Road, Unit 201A
Mississauga, Ontario L5K 2C9
Phone: 905-822-4133 x228
Fax: 905-822-3558
E-mail: sguerin(at)oceta.on.ca
Websites: www.etvcanada.ca and www.oceta.on.ca