Ontario's Ministry of Transportation is studying the safety of the Zenn Motor a low speed electric vehicle, built by a Toronto company. According to a promotional video it costs about a penny a mile to operate the car.

"The Zenn requires no gas and is as simple as plugging in a cellphone to recharge," says the video.

But unlike in British Columbia and Quebec, the Toronto-based company's cars are still not street legal. The Ontario Transportation Ministry is examining whether the cars are safe to drive.

"Transport Canada certified that the vehicle met or exceeded all the safety requirements of the class, so we are a little confused as to why an additional safety requirement is required," said Catherine Scrimgeour, spokeswoman for Zenn.

It's that kind of red tape that prompted electric vehicle entrepreneur Monte Gisborne to move to New York state. He can't believe electric car safety is still an issue in Ontario when it has been cleared by other states and provinces.

"You know, what's so unique about Ontario? That we need our own study? Just get these things on the road now." said Gisborne.

Gisborne believes Ontario is choking its homegrown green industry in red tape.

Scrimgeour said that despite the frustrations, they're not planning on relocating the company.

"We are proudly Canadian and plan on staying here," she said.

But Scrimgeour said Zenn is looking to Europe as a test market for its next generation of electric vehicle.