:
I call the meeting to order.
Good morning, colleagues.
Good morning, witnesses.
Today is meeting number 12 of the Standing Committee on Environment and Sustainable Development. This meeting is taking place in a hybrid format and is in public.
We have witness testimony for the first hour and committee business in camera for the second hour.
For those attending in person, please follow the health and safety guidelines for using earpieces. The guidelines are written on the cards found on the table.
[Translation]
The Standing Committee on Environment and Sustainable Development is starting its study on the electric vehicle availability standard.
[English]
This morning we are meeting with the following witnesses.
[Translation]
We have with us officials from the Department of the Environment. We're joined by Megan Nichols, assistant deputy minister of the environmental protection branch, and Mark Cauchi, director general of energy and transportation.
[English]
I see a third person—Mr. Derek Hermanutz. Is that correct?
:
Thank you very much, Mr. Chair.
My name is Megan Nichols. I am the assistant deputy minister of the environmental protection branch at Environment and Climate Change Canada.
[Translation]
I'm pleased to be here today to provide a technical briefing on the electric vehicle availability standard and to answer any questions that the committee members may have to help inform their upcoming study.
[English]
I'm joined today by Mark Cauchi, director general of energy and transportation at ECCC, as well as Derek Hermanutz, the director general of economic analysis at ECCC.
In our opening remarks, we will provide an overview of the purpose of the electric vehicle availability standard, how it works and the review that is currently under way.
I'll start by saying that from a climate change perspective, transportation is Canada's second-highest emitting sector, and a net-zero future will require a transition to zero-emission vehicles over time.
Transportation emissions in Canada represented 27% of all GHG emissions in 2023, with light-duty vehicles representing close to half of those sector emissions. We have seen improvements overall in GHG performance from passenger cars and light trucks since 2019. Some of this is due to electric vehicle deployment since that time, but it's also due to overall fuel efficiency improvements in fleet performance due to other federal regulations in place since 2010.
[Translation]
The electric vehicle availability standard, or EVAS, program was finalized in December 2023. It was intended to work alongside a range of other policy measures led by various federal departments aimed at supporting the electric vehicle transition.
This included the incentives for zero‑emission vehicles, or iZEV, implemented by Transport Canada; a zero‑emission vehicle infrastructure program, or ZEVIP, implemented by Natural Resources Canada; and funding implemented by Innovation, Science and Economic Development Canada to support battery and electric vehicle manufacturing in Canada.
[English]
The electric vehicle availability standard was designed to further reduce GHG emissions from light-duty vehicles by ensuring a growing supply of zero-emission vehicles and choices for Canadians. It is part of a comprehensive plan to facilitate the ZEV transition and develop a robust electric vehicle supply chain and infrastructure. When the availability standard was published, we estimated that it would bring total cumulative GHG reductions of 362 megatonnes between 2026 and 2050. This is in addition to GHG reductions from Canada's light-duty vehicle GHG standards.
In addition to GHG reductions, electric vehicles bring health benefits and cost savings to Canadians. They reduce air pollution in Canadian communities and reduce health care costs. Health Canada analysis shows that the air pollution from on-road vehicles in Canada annually contributes to asthma, lung disease, an estimated 1,200 premature deaths and millions of cases of non-fatal health outcomes. The total estimated economic cost of on-road vehicle-related air pollution to Canada is $9.5 billion each year. By 2050, the availability standard is projected to reduce various air pollutant emissions from light-duty vehicles, including particulate matter by 36%, NOx by 50%, volatile organic compounds by 61%, and carbon monoxide by 68%.
From a cost-benefit perspective, electric vehicles have lower operating and maintenance costs than gas and diesel vehicles, making their total cost of ownership lower than comparable gas-powered vehicles, even with purchase price differences. Their total cost is lower than it is for their gas counterparts, because of their significantly smaller fuelling and maintenance costs. Battery electric vehicles have fewer moving parts than other vehicles, do not require oil changes or engine tune-ups, and do not contain spark plugs or engine air filters that require replacement. The Canadian Automobile Association estimates that the average electric vehicle owner saves 40% to 50% in maintenance costs compared with having a gas-powered vehicle. The association also estimates that the average Canadian spends close to $3,000 per year on gas, whereas the annual cost of electricity to power an average electric vehicle is only a few hundred dollars. In 2023, it was estimated that Canadians will save about $36.7 billion in energy costs between now and 2050 as a result of the regulations.
I'll now turn it over to my colleague Mark Cauchi to explain how the availability standard works.
The EVAS requirements were implemented through amendments to Canada's existing greenhouse gas regulations for passenger cars and light trucks, which were originally published in 2010. The regulations were implemented under existing authorities set out in the Canadian Environmental Protection Act, 1999. The EVAS sets annual EV sales requirements, starting at 20% by 2026 and growing to 60% by 2030, then 100% by 2035.
Canada is not the only country to have EV targets. Other jurisdictions outside—and inside—Canada also have targets. In the U.S., 11 state governments, representing 40% of the North American auto market, have EV targets and measures. The United Kingdom, the European Union and those 11 U.S. states, including California, New York and Washington state, have adopted targets of 100% EV sales by 2035. China also adopted a lower target, 20% EV sales by 2020, which has already been surpassed. Over 50% of vehicle sales in China are now electric vehicles. Norway will likely be the first country to achieve its world-leading target of 100% EV sales by 2025. Ethiopia was the first country to disallow the import of all gas-powered vehicles in 2024.
In Canada, British Columbia and Quebec have adopted EV targets. B.C.'s current target is 100% EV sales by 2035. Quebec recently announced a new target of 90% battery electric vehicles and plug-in hybrids by 2035.
Canada's regulations go beyond mandatory sales targets.
[Translation]
The standard includes a series of compliance flexibilities including early action credits, the ability of automakers to carry forward credit deficits by three years, credits for the sale of plug‑in hybrid vehicles as well as investments in fast‑charging infrastructure.
[English]
In essence, this means that there are multiple ways companies can comply with the regulations. For example, companies could sell more EVs or purchase surplus credits from other companies. Automakers could also use their own excess credits from previous years, including early action credits accumulated in 2024 and 2025. They could invest in fast-charging infrastructure or apply credits earned through the sale of plug-in hybrids.
The regulations apply to all companies that manufacture new passenger cars, SUVs and pickup trucks in Canada or import those on-road vehicles into Canada for the purpose of selling them to the first retail purchaser. It does not apply to on-road, medium and heavy-duty vehicles or off-road vehicles used in areas such as construction, agriculture, forestry or mining.
[Translation]
Manufacturers and importers have the option to exclude emergency vehicles. All companies have the same targets.
[English]
The regulations define zero-emission vehicles as battery electric vehicles, or BEVs, which are fuelled only with electricity; fuel cell vehicles, FCVs, which operate using hydrogen; and plug-in hybrid electric vehicles, PHEVs, which can run exclusively on electricity for a specified minimum distance before they transition to operating as hybrid vehicles using both liquid fuels and electricity.
On September 5, 2025, the announced a 60-day review of the electric vehicle availability standard. The review recognizes that automakers are navigating extreme market dynamics. It was launched in the context of the 2025 U.S. tariffs placed on Canadian vehicles, the resulting shifts in the automotive industry, and the related economic uncertainty.
[Translation]
The objective of the review is to ensure that the EVAS continues to reflect market realities, remains effective for Canadians and doesn't place an undue burden on automakers, while keeping a clear focus on a net‑zero future.
[English]
The also announced that automakers' compliance obligations for the 2026 model year would be removed to help reduce the economic pressure due to tariffs. The government also announced that it would explore ways to improve Canadians' access to more affordable EVs, and that work is being led by Transport Canada. The review will consider potential amendments to the annual sales targets, including the 2035 standard, and it will explore possible additional flexibilities.
[Translation]
The 60‑day review is giving Canadians and all interested parties an immediate opportunity to provide input on the regulations. The review will ensure that the standard is effective and achievable and that it supports both our climate goals and the competitiveness of our automotive sector.
[English]
One in four vehicles sold in the world today is an electric vehicle, and demand is expected to continue to increase in Canada over time as upfront purchase prices come down and more vehicle choices come to market.
During the review, the government has received considerable input from stakeholders, provinces and territories and indigenous organizations as part of a comprehensive process to identify potential changes that could provide additional flexibilities and reduce costs. As the review period comes to a close on November 4, the government will consider the feedback received from automotive manufacturers, industry associations, environmental non-governmental organizations, national indigenous organizations, provinces, territories and others.
[Translation]
The review is ongoing until midnight on November 4. We expect to receive submissions up until that time. No decisions on regulatory changes have been made at this time.
[English]
We will provide an update later this year on the results of the review. ECCC will be moving to publish a regulatory proposal in the winter of 2026 for additional consultation prior to finalizing the amendments in late 2026.
Thank you.
Thank you to our witnesses for joining us here today. It's good to see some of you again.
I have a question with respect to some of the dealerships that I represent in my riding. According to a recent report, EV adoption nationwide is only 14.6%. There are 69 new car dealerships in Newfoundland and Labrador. Many of them are rural, and they are family-run businesses. They're reporting that they have these EVs just sitting on the lot, taking up space and tying up investment capital. It's threatening their viability.
I'm just wondering what assessment has been done on how many of those dealerships are being hurt by unsold EV inventory that's tying up consumer choices. What specific steps are you taking to prevent these mandates from weakening the already limited rural automotive retail network, specifically in Newfoundland and Labrador?
:
I would say that's exactly one of the reasons that we're conducting this review, to make sure that, indeed, the standards remain appropriate and fit for purpose, and that they are working to the benefit of Canadians and also not hurting the auto sector.
In terms of rural and remote regions, we do realize that it's important that there be other right options available for consumers that meet their needs, whether it's for long driving distance, cold weather or certain types and classes of vehicles.
In terms of the 14.6%, we've seen that go down this year. It's right now sitting at around 9%. We think that's perhaps for a range of reasons—for example, the pause to the federal incentives for zero-emission vehicle program—so there is still that upfront cost for zero-emission vehicles that is a barrier to many Canadians, even though the life cycle costs tend to work in their favour.
This is exactly the kind of thing we're looking at. We are speaking to the Canadian Automotive Dealers Association, hearing directly from the dealers association on their views about what we should be considering in the review under way.
Another myth claims that, by 2026, according to the current suspended standard, 20% of vehicles sold by manufacturers must be electric. This isn't true. There are other ways for manufacturers to comply with the standard, including compliance credits, as you said.
Am I right?
If so, why don't you set the record straight publicly, on the government side, and why do you allow these lies spread by manufacturers, oil companies and the Conservatives to flourish?
:
Thank you, witnesses, for joining us today.
In your testimony, you talked about the lower total ownership costs of EVs. You talked about the lower cost of maintenance and the lower operating costs. I believe I heard that, on average, a Canadian passenger vehicle requires 3,000 dollars' worth of gas per year compared to roughly $300—or a few hundred, I think, was your term—to energize an electric vehicle.
Those are compelling differences. I think the market—the long-term trend, as was referred to—is going to see Canadians take advantage of those advantages.
As the world transitions toward electrifying transportation, what are the consequences for Canadians if Canada lags the world in this transition?
:
Obviously, this is an industry in flux. This is a product that's evolving. Certainly, a couple of things jump out at me.
On life-cycle emissions, as I mentioned, I think that one in particular is a concern. There's ample evidence to suggest that life-cycle emissions are lower from zero-emission vehicles. I think that's intuitive, but it's also borne out by various studies, including in Canada.
Range has improved quite a bit. I know people are still concerned. Range anxiety, in particular, has come up during our review, and it remains a preoccupation for those who don't want to buy an EV. That's a legitimate preoccupation and concern. On the other hand, we've seen pretty steady improvements in range in EVs, and the technology continues to get better.
Is it where it needs to be? That's a fair question. Certainly, given what we see in terms of how much people actually drive in a day, generally speaking, and with the improvements in range, that certainly would be on my list of things.
I'll leave it with those two, but others may want to raise more concerns.
Obviously, we support the 's finally coming. I believe it's been 48 days since she was first asked to appear. This will make the fourth appearance invitation—pending—so obviously I don't have a lot of hope that it will happen any time soon. Her schedule must be incredibly busy if she cannot make an appearance.
In terms of the specific nature of the motion that was moved, it is not clear to me that it is for two hours. If we are going to be coming to discuss two separate topics, the should be appearing for one hour on the supplementary estimates. Typically, that meeting is flanked by officials, because the minister is often unable to answer specific questions about the contents of the supplementary estimates. My concern is that we are trying—due to her lack of willingness to appear and be accountable before this committee and before Parliament—to merge two separate issues into one meeting.
If we are going to be very clear, I'm happy to amend the language of the motion, such that it is the appearing on supplementary estimates for the first hour and there is a second appearance on her mandate and priorities, which was the one that was passed 48 days ago. Because the government has not released the mandate letters for various specific ministers, we have no idea what she might think.
It's a great opportunity to combine, but it needs to be very specifically clear that this is two appearances. That would now wipe off half the invitations. I would love to find out when the may be able to be scheduled on the two remaining invitations in the very near future as well.
Thank you, Mr. Chair.
I would just like to say that we support this motion. I think, if there are other avenues, they should be pursued in parallel.
This is something that goes to the process on how the government works. In something that's urgent and emergent, and it's evolving with these new Major Projects Office procedures and how they're starting to roll out.
I would like to add an amendment that “and that the committee further invite Dawn Farrell, CEO of the Major Projects Office, to provide a briefing and overview of the office's operations and procedures before the end of November 2025.”
:
I'd like to ask my colleague a question to clarify something.
The English version of the motion refers to
[English]
the Canadian Environmental Assessment Agency.
[Translation]
I'm wondering if it might be more appropriate to talk about the Impact Assessment Agency of Canada. I'm not trying to correct you, but we should check that. There may be a jurisdictional issue.
I'm new, and I'm trying to better understand. I have my doubts, and I just want to make sure that, if we are to call witnesses, we call them from the right agency. We shouldn't be calling them unnecessarily.
:
If it really could happen tomorrow, as Monsieur Bonin says, this committee is not the right tool for an injunction around the potential risk to an endangered species. It's 100% not the right tool. I think there are many other tools that could be explored.
In terms of the amendment, Mr. Bexte, you said in your response that it's typical of what we do in committee, which is to answer the questions we ask. I don't consider that to be a briefing.
If you really want Ms. Farrell to come and talk specifically about this issue, I think that something would probably have to be prepared around that, with details. She may not know the answers, because she is probably really high-level, with a big machine under her. I can envision it occurring as it did in the past visit, when questions were asked on all kinds of things about major projects, climate, Canada, etc.
I would encourage a refinement of the language or a reconsideration that this is potentially out of scope for this motion.
:
Ms. Miedema, if I may, I have something to say before giving you the floor.
First of all, I see that it is 1:35. We should ask ourselves whether we should continue this debate.
Second, the study we started today was already scheduled for November 17. If we want to add more meetings, we'll have to cancel all the meetings that were already scheduled for the 17th. In addition, notices have already been sent out for that date as well as for subsequent meetings.
I'm just concerned about what the clerk has to do.
[English]
It's to undo and redo and undo again. Let us be conscious of all of this.
I leave the floor now to you, Ms. Miedema.
:
My honourable colleague is quite familiar with environmental groups in Quebec. I invite him to contact them.
Personally, I am in contact with the Centre québécois du droit de l'environnement, or CQDE. This organization is recognized, and it is quite concerned. My colleague can also contact Nature Québec and Eau secours, two organizations that are no doubt concerned as well. There are also national groups.
In my opinion, there are already enough groups, and those who specialize in the matter are clearly saying that the situation is worrisome. I invite my honourable colleague to take greater ownership of this issue, because urgent action is required. Currently, his government is not taking action.
:
At the risk of repeating myself, I would say that work could start on the site tomorrow. Your government issued a permit. It put this project on the list of national interest projects set out in Bill . That allows it to override the Species at Risk Act and move forward, despite all the legislation that was put in place over the past few decades in Canada.
Urgent action is needed. I've heard that the copper redhorse was at risk. I saw that environmental groups were calling for an investigation and a suspension of the permit and that work could begin at any time. If that's not the case, prove it to me.
If there are other ways to avoid endangering the species, so much the better. Let's explore them. We must do everything in our power to clarify the situation and protect the copper redhorse, a threatened species found only in Quebec. It doesn't live anywhere else in the world.
This committee's role is very specific, and this falls within its mandate. We have a responsibility here, and I expect this committee to live up to its mandate to protect this endangered species.
:
Mr. Chair, thank you for the opportunity to address the committee.
[English]
We work at the will of the committee and are grateful for a chance to quickly outline an approach to report drafting that has worked well for this committee.
Now that the testimony has concluded for the emissions reduction plan study, we assume the committee would like a report to be drafted. Members can now guide the preparation of the report that will be tabled in the House.
As Mr. Iacono mentioned, there was an email sent from the clerk. The type of drafting instructions—they're typically offered verbally—would be topics to emphasize in the report, particular witnesses or briefs that members would like reflected, and then recommendations, which are typically directed to the Government of Canada.