In December 2021, City Council directed Municipal Licensing and Standards (MLS) to set a goal of net zero emissions by 2030 for vehicles-for-hire (VFH), and to align plans for vehicle electrification and emissions reduction to achieve this ambitious goal. The transportation sector as a whole represents an estimated one third of the city’s total emissions, of which the VFH industry contributes 4-6% of total transportation emissions. The VFH industry, which encompasses taxicabs, limousines, and private transportation companies (PTCs) such as Lyft and Uber, has a unique opportunity to be a leader in zero emission transportation, as VFH on a per-vehicle basis travel three to four times the number of yearly kilometres driven by private passenger vehicles. Transitioning this industry to net zero is part of the City’s broader efforts to achieve community-wide net zero emissions through the TransformTO Net Zero Strategy. This report outlines a proposed approach to support the VFH industry to achieve the Council-directed net zero by 2030 requirement, including recommended by-law updates and complementary programs. It includes the following suite of proposals: requiring VFH to be zero emission vehicles (ZEVs) by 2030 (with some exceptions) — temporarily reducing licensing fees via grants for early adopters in the VFH industry who operate with a ZEV prior to 2030 — supporting the expansion of electric vehicle charging infrastructure — providing operational flexibility by waiving vehicle age limits for ZEVs — permitting plug-in hybrid electric vehicles (PHEVs) to operate as VFH for an additional two years (until 2032) and extending VFH due for replacement in 2023 by one additional year — and providing education on the benefits and total cost of ZEVs ownership. The proposed approach was developed in response to feedback from industry and public stakeholders as well as consideration of the equity impacts of the net zero by 2030 requirement, as a substantial proportion of the VFH industry consists of lower-income individuals and equity-seeking groups. Accomplishing the goal of net zero by 2030 requires a financial investment by the City, and an all-of-government approach, including key partnerships with City divisions, corporations, and agencies. The proposals, both regulatory and financial, are the first step towards transitioning the VFH industry to net zero by 2030 and are designed to support the achievement of this ambitious goal as directed by Council. The goal of net zero by 2030 in the VFH industry is feasible only if equity-related barriers are adequately addressed and infrastructure development, ZEV availability, and market projections are achieved. Staff will continue to monitor and report back to Committee and Council on these key elements, as required. This report was prepared in consultation with Environment & Climate, Transportation Services, Policy, Planning, Finance and Administration, and Legal Services.
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