No. H 006/08
For release - January 17, 2008
OTTAWA — The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, today announced he is delivering on the Government of Canada's commitment to implement fuel consumption regulations. For the first time Canada will regulate the fuel consumption of new cars and light trucks, beginning with the 2011 model year. Consultations will begin with automotive, environmental and other stakeholders as part of the government's commitment to implement national fuel consumption regulations for motor vehicles.
"We made a commitment to implement fuel consumption regulations for the 2011 model year that are benchmarked against a stringent, dominant North American standard, and we are keeping our word," said Minister Cannon. "Our government recognizes that the transportation sector is one of the largest sources of greenhouse gas and air pollutant emissions in Canada, accounting for 25 per cent of all Canada's GHG emissions. That's why we are taking action now to make sure that, into the future, we have the most environmentally responsible cars and trucks on Canadian roads."
In 2006, the combined (car and light truck) new vehicle fleet average fuel consumption was approximately 8.6 L/100 km in Canada. This is equivalent to 27 miles per gallon. The regulations will prescribe a standard that will be designed to maximize the environmental and economic benefits for Canada. The federal government will monitor closely the work of the U.S. government, towards establishing an environmentally ambitious North American regulatory standard for cars and light-duty trucks.
"The United States Congress has set an ambitious target of 35 miles per gallon — or 6.7 litres/100 kilometres — for the average fuel economy of vehicles sold in 2020," explained Minister Cannon. "We welcome the U.S. goal, but are committed to developing made-in-Canada standards that achieve — at minimum — that same target in Canada. The consultations ahead will be key to delivering the standard. Put simply, this means that the government will regulate by the 2011 model year. By 2020, the average new vehicle sold in Canada will have a fuel consumption better than some of today's hybrid cars, and produce fewer GHG emissions, than approximately 93 per cent of all vehicle entries listed in the 2008 Fuel Consumption Guide. I am very proud to start this historic regulatory process."
Consultations on the development of the fuel consumption regulations will include the automotive industry, environmental non-governmental organizations, provinces and territories, and other stakeholders. A short issue brief has been developed to inform these consultations. All interested parties are encouraged to review the brief and submit their views in writing to Transport Canada no later than March 15, 2008.
Following consultations, the Government of Canada will publish draft regulations in the Canada Gazette, Part I. This will be followed by a 90-day comment and review period to provide a formal opportunity for Canadians to respond. The Government of Canada will then review the comments in order to develop final regulations. It is anticipated that these final regulations will be published in the Canada Gazette, Part II, by the end of 2008. The regulations will come into force for the 2011 model year.
The issue brief "A Better Canada — A Cleaner Environment: Development of Motor Vehicle Fuel Consumption Regulations" is available at http://www.tc.gc.ca/pol/en/environment/FuelConsumption/index.html. A backgrounder that provides more information about fuel consumption in Canada is attached.
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Contacts:
Karine White
Press Secretary
Office of the Minister of Transport, Infrastructure and Communities, Ottawa
613-991-0700
Media Relations
Transport Canada, Ottawa
613-993-0055
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BACKGROUNDER
MOTOR VEHICLE FUEL CONSUMPTION CONSULTATIONS
Efficient, accessible and reliable transportation is critically important for Canada's economy and standard of living. It is essential for personal mobility and for the efficient movement of freight in domestic and international markets. However, our reliance on our transportation system comes at a price: transportation is one of the largest sources of air pollutants and greenhouse gas (GHG) emissions in Canada. It accounts for about 25 per cent of all Canada's GHG emissions and grew by 27 per cent between 1990 and 2004. Cars and light trucks together account for about 12 per cent of total national emissions.
Over the past 30 years, Canada has had a voluntary policy for improvements in fuel consumption from cars and light trucks. In 2005, the vehicle suppliers signed a Memorandum of Understanding (MOU) to reduce GHG emissions from cars and light trucks by 5.3 million tonnes in 2010. Despite some improvements in fuel consumption and emissions control technology brought by these voluntary policies, total fuel consumed and GHG emissions have risen substantially over the last two decades.
More needs to be done. For the first time, Canada will regulate the fuel consumption of new cars and light trucks, beginning with the 2011 model year. By the end of 2008, the Government of Canada will establish an ambitious mandatory fuel consumption standard that will be implemented through regulations developed under the authority of the Motor Vehicle Fuel Consumption Standards Act (MVFCSA). The Act was proclaimed on November 2, 2007.
In April 2007, Transport Canada and the United States Department of Transportation signed a Memorandum of Cooperation aimed at improving motor vehicle fuel efficiency. The Memorandum of Cooperation provides opportunities for the two governments to meet periodically to share respective strategies and regulatory practices governing motor vehicle fuel efficiency; exchange research, modelling and analysis related to fuel efficiency standards; and exchange information on motor vehicle fuel efficiency developments and initiatives within the two countries.
Specifically, the Memorandum of Cooperation refers to exchanging information on:
the assessment of technological changes to improve the fuel efficiency of vehicles;
potential options for fuel economy standards;
the assessment of the proposed standards' impact on the auto industry;
developments related to potential credit trading systems; and
experiences relating to the use of economic instruments and sharing of work plans.
The Memorandum of Cooperation will allow the two countries to benefit from their knowledge and experience in the area of motor vehicle fuel efficiency.
The motor vehicle fuel consumption regulations will be consistent with the spirit of the Security and Prosperity Partnership of North America to develop regulatory approaches that are compatible across our borders and reduce the effects of climate change and air pollution, while fuelling the North American economy. In August 2007, Security and Prosperity Partnership leaders specifically agreed to explore ways to cooperate on national auto fuel efficiency standards.
The regulations will be developed in keeping with our commitment to work in close collaboration with the U.S. government, towards establishing an environmentally ambitious North American regulatory standard for cars and light-duty trucks.
Options for a Canadian Standard
The Government of Canada policy for the development of the Canadian standard was outlined in the Regulatory Framework for Air Emissions, released on April 26, 2007. This policy document broadly defines the options to be considered for fuel consumption standards in Canada and clarifies that the standard will be designed to maximize Canada's environmental and economic benefits.
The level of the standard will be determined through the normal regulatory process. No decision has yet been made on the general format of a Canadian standard. In general, however, the standard will be specified for fuel consumption, retaining established test procedures, and will be compatible with the U.S. federal approach to fuel economy standards. The Canadian standard will also be prescribed under the MVFCSA and will apply to each manufacturer or importer of vehicles sold in Canada.
January 2008
