:
I call the meeting to order.
[Translation]
Good morning, colleagues.
[English]
Today is meeting number 15 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 two hours.
For those here in person, please follow the health and safety guidelines on the cards found on the table to prevent audio or feedback incidents.
[Translation]
I'd like the committee to adopt the three budgets distributed by the clerk. These amounts are to reimburse the witnesses for their expenses for appearing, as well as our own logistics costs.
First of all, is it the will of the committee to adopt a budget in the amount of $1,000 for the study of the copper redhorse's critical habitat in the Verchères Islands?
Some hon. members: Agreed.
:
That budget is adopted.
Thank you very much, colleagues.
We will continue with the next steps.
The committee is resuming its study of the electric vehicle availability standard. This morning, the committee will hear from the following witnesses.
[English]
From the Canadian Charging Infrastructure Council, we have Travis Allan, president and chief executive officer. Welcome.
[Translation]
I'd like to welcome the co-founder and CEO of Edison Motors, Eric Little.
[English]
From Greenpeace Canada, we have Keith Stewart, senior energy strategist, by video conference. Welcome.
Witnesses, when you see this yellow card going up, I'm telling you that you have one more minute to complete your thoughts. When we get to this card, you have no more minutes, but finish your sentence. I'll give you time for that.
Thank you very much.
[Translation]
Each speaker will have five minutes for their opening remarks.
We'll begin with Mr. Travis Allan.
[English]
The floor is yours for five minutes.
:
Good morning, Mr. Chair and members of the committee.
Thank you for the invitation to appear before you.
My name is Travis Allan, and I'm the president and CEO of the Canadian Charging Infrastructure Council.
[English]
We are an industry association that represents over half of the EV charging stations in Canada, and our objective is to expand Canada's charging infrastructure. When we do that, we create jobs, we attract investment and we leverage Canada's clean energy advantages.
Over the coming decades, if Canada is able to achieve its electrification objectives, our industry will commit billions of dollars to the Canadian economy, and as you likely know because you've been studying this matter, transportation is Canada's second-largest greenhouse gas emissions contributor on a sectoral basis and charging is, of course, fundamental to trying to get that under control.
Canadians, when surveyed, will typically tell you that the availability of home or near-home charging and public charging is essential in their decision to adopt an EV, so how we get there is primarily a question of economics. At the end of the day, the charging industry is a commercial business, and particularly when we look at public fast charging, the cost of the newer, faster charging stations that are being deployed all over Canada can be around $125,000 per port. The way that you convince capital providers to fund those stations is by looking at the anticipated demand for EV charging, which is typically measured by the number of vehicles on the road, and, of course, you need to look at the cost factors.
The money that is invested isn't just for the charging stations. In fact, most of it is typically spent on local trades across Canada, like electrical contractors and civil contractors. This is obviously a massive infrastructure project, and the only thing right now that is creating some real headwinds in the space is questions around the regulatory and financing structures that have been put in place to help catalyze this industry.
The specific challenge is that unlike an industry that's in a steady state model, the EV charging industry is being buffeted by trade challenges from our southern neighbours, but it is also being asked to invest not with a one-year return horizon but, typically, with a 10-year return horizon.
We need to forecast not only the charging right now but the charging five to seven years in advance. Whenever those financial models are put together for capital providers, they use the EV availability standard as the floor. That is the regulatory floor that allows them to make appropriate assumptions about the revenue that is required, so if we're going to meet Canadians where they are with respect to charging access, we need to find a way to give capital providers the certainty they need to green-light those investments.
So far, our industry has done very well. We estimate that we have about a million EV drivers in Canada, or folks who've chosen EVs, and we have over 7,500 public charging ports the last time I checked. We have 30,000 public level 2 charging ports, and many residential stations, because that's where most Canadians will charge between 70% to 90% of the time if they have access. This roughly lines up with the ratios that we believe are warranted based on the current stock of electric vehicles. Not only that, but we are on track to continue to achieve the targets under the current EV availability standard if we continue with the rate of investment that has been over 25% for the last five years running.
If the EV availability standard is reduced, that means capital providers will not green-light as many new stations, and the implications can be very significant.
We have done some analysis at CCIC in a recent policy-maker brief and found that if the target is changed from 60% by 2030 to 40%, this is likely to result in a 38% decrease in the number of charging stations that would be built. If that target goes down to 30% by 2030, it is likely to result in a 62% reduction in stations built versus what would have been built under the current targets, simply because there is a cumulative impact. Every year all the way up to the 2030 target, you're seeing fewer EVs sold, which means there's lower demand, so you get non-linear impacts.
My name is Eric Little.
[English]
I am the CEO of Edison Motors. We are building electric hybrid semi-trucks in Golden, British Columbia. That's a rural town. We employ 32. We're a small business, but we are growing very quickly.
We have become one of Canada's fastest-growing clean technology companies. It basically started four years ago in a backyard in Merritt. Now we have a valuation of $300 million Canadian. We're growing and trying very hard to commercialize our technology.
The semi-trucks we build are electric. They are powered exclusively from a battery. This battery powers a suite of train motors, meaning that, quite frankly, this technology was going to happen eventually. We're just very lucky to be able to build it right here in Canada.
What's really important to note is that it is a hybrid. These semi-trucks that we build are powered from a battery, but it is charged throughout its working day by a diesel generator. It basically uses all the benefits of an electric vehicle. You have regenerative braking. By the way, in a traditional semi-truck, you need to burn more fuel to slow down the vehicle because they're just so heavy, so regenerative braking is going to be awesome for this.
Furthermore, the efficiency of the drivetrain itself means that, cumulatively, these vehicles have a 30% fuel reduction. That's a minimum. There will be applications like logging—we're former loggers— where it could be upwards of 90% because you go uphill unloaded and then you come downhill loaded. You can use gravity to produce more energy to charges your batteries. It's really cool stuff.
Fundamentally, the reason I'm here today is while we have all the benefits of building an EV right in Canada, unfortunately, there's a bit of a roadblock in terms of the environmental regulation itself. Under CEPA, there is a very specific regulation called the hybrid alternative engine standard. This does not allow Edison to use a diesel generator engine on an on-road vehicle. Because of this, we've actually been forced as a business to switch totally from hybrids to building traditional trucks, which is not the goal of this committee nor our business because we have thousands of fans and investors that have supported us throughout this journey to build hybrids right here in Canada.
I did provide a brief to the committee. What this really provides is a recommendation pathway to try to address our issue. It's a very simple amendment with two core parts.
The first thing I'd like to say is that we've worked very closely with the department, ECCC. They've been incredibly supportive. They actually helped me write, at least in part.... They provided their support in writing the amendments that I provided the committee.
First and foremost, it's to include EPA-certified diesel generator engines for our trucks. This is really critical because it allows us to not need to recertify an engine that's already certified in Canada. We at Edison really don't understand why we need to recertify a diesel engine that is used to produce electricity already for on-road use. I mean, it's not allowing our commercialization pathway at all. Quite frankly, it's a risk to our business.
Second, what I found very curious about the regulation is that it sunsets in 2027. Technically, as it is written, we cannot build hybrid trucks anyway after 2027. The department has also recommended that we extend this to 2032, which is in line with the U.S. regulations.
Fundamentally, our problem is that we are so tied to U.S. regulations that we, as a Canadian truck manufacturer, cannot build the technology we desire. More importantly, we can't even get an exemption because those exemptions are completely dependent on U.S. regulators and the industry, which means that we can't compete.
I really appreciate your time on this matter and I'm hoping that I can answer as many questions as possible. Thank you very much.
:
Thank you very much for the opportunity to be with you today to discuss the electric vehicle availability standard.
I'm Keith Stewart. I'm a senior energy strategist with Greenpeace Canada and a sessional lecturer at the University of Toronto, where I teach a course on energy and environmental policy.
[Translation]
The electric vehicle availability standard is an important part of Canada's climate action plan. The transition to electric vehicles helps us keep our air clean and reduces our monthly bills while driving cars that are not only comfortable and reliable, but also cheaper to drive and maintain. All of these benefits are now in jeopardy.
[English]
I understand that in this era of elbows up, all discussions of public policy must begin with a hockey metaphor, so please excuse this tortured analogy. If you are serious about winning the Stanley Cup, you don't trade away your star forward because you have a good goalie. By winning the Stanley Cup, I mean fulfilling Canada's international commitment on climate change. The star forward is the electric vehicle availability standard.
Let's start with what the government seems to be getting right. The goalie in this metaphor is industrial carbon pricing. Good goaltending is vital, which is why I think the government should strengthen the existing industrial carbon price and apply the federal backstop in provinces whose regimes don't measure up.
Industrial carbon pricing does some things—like reducing emissions from large industrial facilities—really well. I'd refer you to the stellar work of the Canadian Climate Institute on how it can do those things even better. However, there are necessary things it doesn't do well, like convincing North American car companies to make affordable electric vehicles rather than gas-guzzling SUVs or getting solar panels on the roofs of your constituents' homes.
To return to my hockey metaphor, even if you have a great goalie, you are never going to win a game, much less the cup, unless somebody scores on the opposing net. I'm concerned that the current government is considering trading away all of our goal scorers. The consumer carbon tax is retired, and the Impact Assessment Act is on the injury list thanks to Bill , which can exempt fossil fuel megaprojects from environmental laws. It also appears that our star defencemen, the oil and gas emissions cap and north coast oil tanker ban, are on the trading block as part of a potential grand bargain to enable a massive new oil sands pipeline.
We're here today to talk with the star forward who's currently riding the bench—the electric vehicle availability standard. It's time to put a retooled EVAS back in the game so it can reduce greenhouse gas emissions, make electric vehicles more available and affordable for consumers and future-proof Canada's auto sector. These are my top three recommendations for the revised EVAS.
First, prioritize a strong Canadian availability standard over harmonizing with the Trump administration or even the Biden-era vehicle emission standards. You could reward domestic assembly through extra partial credits for vehicles assembled in Canada and/or with a battery manufactured in Canada.
Second, keep the 2030 and 2050 targets. This will send a strong signal to vehicle manufacturers that we are joining the world outside Trump's America in electrifying transportation, so they can skate to where the puck is going.
Third, build in measures to make EVs more affordable. This could include extra credits for affordable electric vehicles. This will offer carmakers greater flexibility while doing more to drive EV affordability and address that top barrier to adoption.
Thanks for your time. I'd be happy to answer any questions you might have.
:
Thank you, Mr. Chairman.
Mr. Little, congratulations. Four years ago, you started this initiative, and that's probably when I met you as an MLA in the B.C. legislature. I couldn't understand why the provincial and federal governments were not actually supporting your cause, because it was one of the most exciting ones I, and all the other MLAs, had come across in a long time. Now, MPs actually agree. It seems like a bit of an oxymoron that the title of this hearing is basically the EV availability standard, but the regulations currently are not making your vehicle available for a number of reasons.
Congratulations, there. Well done. You've done incredible lobbying work. What is the next big step to make sure your vehicle is available for all Canadians in the industrial sector?
Thank you to the witnesses for coming forward on this important topic.
I want to start off by thanking Mr. Little—it's the second time that we've met each other—and thanking my friend Mr. Ross, who introduced us the last time you were on the Hill.
I'm from British Columbia as well, on the other side of British Columbia in Vancouver. I really commend you for the innovation that you're seeking in this small business, and I hope you continue to have success.
I know that you've been working with Environment and Climate Change Canada as you move this product to market. I want you to talk about the work you've done with them. I know you had the NEM authorization yesterday, which I'm sure you're very happy about. What other steps are needed to move forward?
:
It's very exciting to know that Edison now has its national emissions mark authorization. This is a big step in our business, because now the department sees us as very much understanding the current regulations and being able to apply a mark onto our vehicles once they are ready for sale.
The next step would be to submit letters. They're called C-Us. One is for the vehicle itself, which I can only submit once I get the national emissions mark. With that hurdle behind us, I look forward to submitting this soon.
Furthermore, because of our hybrid engines—in this case it's a Scania 9-litre that we get from Sweden, which is EPA certified—I have to submit another letter of C-U for this particular engine. This essentially describes all of its basic fundamentals, its GHG emissions and some more information on specifications, which is different from what you need to do for a traditional truck. If it's already a compliant engine, I don't need to submit that letter. It is an additional layer or step that I need to comply with, but I'm more than happy to do so.
I really want to tell the committee that Environment Climate Change Canada staff have been incredible to work with, especially after all this publicity caused throughout this issue we're having, and we're getting incredible support. I'm really happy to bring the committee some recommendations they've made to try to address this issue with this amendment to the regulation. We're really pleased by this, and I hope to continue to work really well with the ECCC as we get permission.
:
I'm old enough to remember when the vehicle manufacturers resisted seat belt laws, saying that was going to destroy the industry, and then it was catalytic converters that were going to destroy the industry. They're a very conservative body and they like to stick with what they know, which makes sense. They also like to keep competitors out. I think, as one of your previous panel members was saying, these guys like to keep out the competition and the alternative. That's why we needed laws for seat belts and for catalytic converters.
They're going to resist change whenever they can, because they want to stick with what they know. For the industrial carbon price or even the old-fashioned CAFE standards, they're really good at tweaking and getting incremental change in the existing system, but when you're trying to actually change the system, like a switch from gas-powered vehicles to electric vehicles, you need a much more comprehensive approach.
This point was made really well by one of the other panellists. He said they will build the number of chargers that they know are going to be guaranteed based on the number of vehicles in this law, and in the same way, companies always say they want certainty to make long-term investments. This provides that long-term incentive. It says, “This is where we're headed. If you make these investments, you're not going to lose your money.” That's really important, and I think Canada should stick to its guns on this and move forward with that transition to electric vehicles, which is happening all around the world.
Donald Trump is trying to hold it back, but if we're looking to expand our trade and integrate more with the rest of the world, we need to skate to where the puck is going to be, not where it is right now or where Donald Trump is trying to put it.
:
We don't want to get left behind. There is this possibility that Canada, if we align with the Trump administration—and who knows what will happen next down south—we could end up as this backwater in terms of vehicles, because electric vehicles are simply better in so many ways. Look at the rapid adaptation not just in places like Europe but also in the global south. That's where the technology is going. If we want to be able to trade more with those places, there's that element, but this is also key to achieving our climate objectives.
After oil and gas production, the transportation sector is the second-largest source of greenhouse gas emissions in the country. If we don't electrify, we're not going to be able to really get at those emissions in any kind of deep way.
The passenger vehicles are relatively easy because that technology is now available. It's spreading around. We have to bring in more affordable vehicles here. It's amazing that in Europe there are like 21 EVs available under $40,000, and here, I think there's only one. If we design this law right, we can actually get those affordable vehicles here.
It's also fascinating to see that, even in other sectors of transportation, like heavy-duty trucks, we're beginning to electrify those as well. That's great to see, and Canada should be sticking with the leaders on this, not the laggards.
Thank you, Mr. Little, for joining us today and also for pushing through with this technology. I'm an entrepreneur myself, and I know there are many challenges in your journey.
I am from Newfoundland and Labrador, from a very rural area, where there's a lot of resource development. There are a lot of industries that depend on heavy trucks to stay competitive. They're under immense pressure financially right now.
I believe there's an affordability component also built into your product. I just wanted to give you an opportunity to expand a bit on that for the benefit of the panel, just so that they know the fullness of what your technology can offer consumers and people in small businesses.
:
That's fantastic. Thank you very much for the opportunity to talk about the technology's benefits.
From a financial perspective, the fuel reduction is quite significant. It's 30% of fuel consumption, which is essentially one of the highest costs of operating a truck. This can account for $30,000 to $50,000 a year per operator. This is a pretty significant savings, and we want to be able to pass that on to the consumer.
What's great about our technology is that it doesn't influence payload. As you know, a truck really is paid for by what it can carry, and because of our drivetrain and how it works, it has a very small battery and a small diesel engine. It's about a third smaller than a traditional diesel engine. Therefore, there is no compromise on payload, which is an advantage that BEVs or fully electric vehicles would never have. We're quite pleased that we can offer no range anxiety to the consumer who is used to filling up the tank with diesel, while still providing a 30% reduction in operating cost.
Don't get me started on maintenance. Our system doesn't have a whole bunch of mechanical parts, gears and drivetrains. It's just motors directly at the wheels. This means that there could be upwards of 50% in maintenance savings. Once we actually get permission to sell our vehicles in Canada, I look forward to being able to share, with you and our fans, what those true numbers are.
I have a quick question for Mr. Allan.
The International Energy Agency said that, I think, about 20% of vehicle sales last year were electric. It's anticipated to be about 25% this year, and I believe 40% by 2030.
Can you maybe comment on that, and do you see similar trends in Canada?
As well, tied to that, what impact does that have for charging infrastructure within Canada?
:
We also see them as investments, and I think there are two areas that are critical.
The good news is that for Canadians who can charge at home, with a detached house or driveway, there is really very little issue. We just want to make sure it supports the grid. We have that tech already. When you're talking about public areas and about people who live in condominiums and stratas, these are areas where the economics are still challenging. There is a very useful role, in addition to the EVAS, for a tax credit that can work to support the economics. That's what my members would tell you. We're trying to figure out a way to get these financial statements to work and just unlock private capital.
We can do that with a clean technology ITC that works for on-road transportation, for public charging, and also for multi-unit residential buildings, which currently would not be eligible. That would make a huge difference.
:
Thank you, and sorry I couldn't be with you today.
Thanks to all the witnesses for your testimony.
My question is for Mr. Allan. I used to work for Halifax Regional Municipality on environment and climate, and we were really struggling with trying to roll out charging infrastructure, and we were trying to think about ways to incentivize that charging infrastructure being required in multi-unit apartment buildings, because there are several places where you don't have that garage access within our urban setting.
Does your organization work with local as well as provincial and territorial governments on the policy side? I get the ITC conversation, but can you speak to that? Is there any good work happening? We were trying to do it through planning documents and bylaws.
If you could share your thoughts on that, that would be great.
Thank you.
:
The meeting will resume.
[Translation]
The committee is resuming its study on the electric vehicle availability standard.
This afternoon, the committee is meeting with the following witnesses:
[English]
from Dunsky Energy and Climate, Mr. Jeff Turner, director of mobility, and from Environmental Defence Canada, Mr. Sam Hersh, clean transportation program manager.
[Translation]
Each speaker has five minutes for their remarks.
[English]
When you see a yellow card going up, it means that you have one minute to speak. When I turn it over, please complete your sentence.
We will start with Mr. Jeff Turner for five minutes.
Thank you.
:
Thank you, Mr. Chair and members of the committee.
My name is Jeff Turner. I'm the director of mobility at Dunsky Energy and Climate Advisors.
I'll begin by providing a bit of background on my own professional experience, followed by an overview of the type of work that Dunsky does in the EV space and some specific findings from recent projects as they relate to the EV availability standards, or EVAS.
My career has been focused on transportation electrification for almost 20 years. I have degrees in mechanical engineering from McGill University, where my research involved designing prototype hybrid and electric vehicles and modelling battery performance in cold climates. I've worked for two different vehicle manufacturers—one selling EVs in London and another based in Vancouver, B.C., developing hybrid and electric commercial vehicles in partnership with Ford Motor Company.
Following this, I spent four years at BC Hydro's Powertech Labs, where I focused on technologies that help integrate EVs into the grid and deploying public charging infrastructure.
In 2017, I joined Dunsky, which is a Canadian firm with over 65 professionals focused on analysis and strategy development to support the energy transition. Since then, we've conducted projects with governments, utilities and corporations in all 10 provinces, as well as leading states like California, Colorado and Massachusetts to help them to understand and design policies to overcome barriers to the adoption of EVs, anticipate the pace of adoption and associated demand on the grid, and develop policies for effective deployment of charging infrastructure.
Here in Ottawa, our name is often associated with reports we've published on EV availability in dealerships for Transport Canada or on charging infrastructure forecasts and fleet electrification for Enercan. We've also developed load forecasts for 15 Canadian electric utilities across eight provinces, as well as EV analysis and strategies for 22 Canadian cities from Halifax to Victoria, Toronto to Calgary and many in between.
This is not to mention our work with provincial governments of all stripes, including B.C., Manitoba, Ontario, Quebec, New Brunswick, P.E.I. and Nova Scotia.
Through these projects, we gain a deep understanding of how EVs are working in these regions, what specific barriers are holding consumers back and how these barriers are evolving over time. This has given us the chance to continually refine our analysis and, in particular, our EV adoption forecasting model, which we first launched in 2018. We recently had the opportunity to put this model to use developing forecasts for EV adoption in each province and territory as part of the Powering Up project with Electric Mobility Canada. We forecasted EV adoption under a range of policy scenarios and quantified the associated electrical load growth in each region.
Over the past two months, we've been able to revisit this analysis and focus in specifically on the impact of EVAS and explore a few alternate policy scenarios, all while accounting for the disruptions we've observed in the market in 2025, including the sudden pause in financial rebates and the resulting uncertainty in the market. Our analysis found that even in the absence of supportive policies, we are likely to see the Canadian light-duty vehicle market transition to EVs, driven by ongoing technology progress that is global in nature.
We also found that policies like EVAS can significantly accelerate this transition, bringing the benefits of EVs to more Canadians sooner. These benefits include affordability—EVs save, on average, about $1,700 per year in fuel costs alone—and reductions of GHG emissions and other emissions that have significant health impacts for Canadians.
On affordability, while EVs can save their owners money over the life of the vehicle, we know that most vehicle shoppers are not like me—they don't use a spreadsheet to calculate total cost of ownership—and their primary focus is on the sticker price. Our modelling captures this dynamic and captures how adoption increases as upfront EV prices come down over time.
Our modelling highlighted that while EVAS helps by ensuring a smoother EV shopping experience, fewer months-long wait-lists, more vehicles on lots and motivated salespeople, it can also drive automakers to accelerate these EV price reductions through greater competition and economies of scale.
We also modelled a multipronged approach that includes complementary strategies to help increase EV affordability, including modest government rebates that are phased out gradually over time, helping to share the load of achieving those price points.
With the right policy mix, we found that a target of 50% EV market share is achievable by 2030, leading to an additional $30 billion of fuel savings and $4 billion in health benefits, thanks to improved air quality in Canadian cities.
Finally, across all our work, we see repeatedly how valuable this type of policy is in terms of providing market certainty, especially for the utilities and private sector actors we work with, who are considering significant investments in grid capacity and charging infrastructure. We have seen first-hand how regulated targets increase confidence and solidify business cases, unlocking significant investment in Canada from valuable partners in the EV transition.
I look forward to your questions. Thank you.
:
Thank you. Good afternoon, Chair and members of the committee.
My name is Sam Hersh and I'm the clean transportation program manager at Environmental Defence, which is a leading Canadian environmental advocacy organization. We work with government, industry and individuals to defend clean water, a safe climate and healthy communities.
[Translation]
Our position is clear: Canada must maintain a strict EV availability standard. Weakening or pausing these regulations would harm consumers, compromise climate goals and jeopardize Canada's competitiveness in the global transition to clean transportation. It would also benefit an auto industry that has resisted progress for decades.
[English]
The standard has a simple purpose: to make electric vehicles available and affordable in every region of Canada. Before the standard, Canadians faced chronic shortages, and this was not because Canadians didn't want EVs. It was because automakers restricted the supply by prioritizing high-margin gasoline trucks and SUVs over more affordable electric models.
The EVAS changes that by ensuring that Canada receives its fair share of EV supply. When EVs become available, the benefits are substantial. Some modelling shows that, with a strong EVAS, Canadians would save $45 billion in fuel costs by 2035, about $1,750 per EV driver per year, because electricity is far cheaper and more stable in price than gasoline.
[Translation]
The standard is also one of the most effective and least expensive climate policies in Canada. It would reduce emissions by 69 megatonnes by 2035, which would be the equivalent of taking 15 million gas-powered cars off the road. There are also huge health benefits, and these benefits would quickly diminish if regulations were weakened or delayed.
[English]
Despite what the auto industry claims, now is the right time to move forward with an EV standard. Recent sales declines were driven by a pause in federal and provincial rebates and by short-term uncertainty about the future of the EVAS itself. This is exactly why the regulation includes extensive, built-in flexibility, including early action credits, a three-year averaging period, credit banking, limited PHEV contributions and credits for infrastructure investments. The EVAS was designed to absorb short-term shocks. Pausing 2026 compliance obligations was unnecessary and created more uncertainty, not less.
Automakers have proven time and time again that voluntary measures are not enough. Legacy automakers have opposed or delayed every major environmental and safety regulation for decades, as someone on the previous panel mentioned, from seat belts to fuel efficiency standards to earlier electric vehicle policies. In Canada alone, they have held more than 200 lobbying meetings specifically about the EVAS with federal officials since the standard was introduced and are running coordinated campaigns to weaken or eliminate the EVAS. All of this aligns with a long-standing strategy: Preserve the high-profit gasoline truck business model for as long as possible. A status quo without the EVAS overwhelmingly benefits the automakers, not Canadians in urban, suburban or rural areas.
If Canada retreats from the EVAS now, EV prices will remain high, affordable models will remain scarce and charging infrastructure investment will slow. We would also risk losing ground to international competitors that are surging ahead in global sales. Meanwhile, U.S. automakers would gain an advantage in the remaining gasoline vehicle market just as they are aggressively lobbying for slower transition times.
Environmental Defence Canada urges the committee to maintain the EVAS with only limited recalibration. We recommend, in a submission that we put forward to this committee with other organizations, reinstating a 2026 requirement that reflects the actual market share, resuming the trajectory of requirements no later than 2027 and avoiding new flexibility mechanisms that dilute the standard.
[Translation]
The EV availability standard is not the problem; it's the solution. It protects consumers, strengthens Canada's competitiveness, improves public health and enables climate progress without multi-billion-dollar government subsidies. Weakening it now would be a costly mistake. A rigorous standard is the best way to ensure that Canadians have cleaner and more affordable vehicles and that Canada remains a leader in the clean transportation economy.
[English]
Thank you.
I look forward to your questions.
:
The manufacturers have told the government—that's why this pause was initiated—that the demand is not there. When I talk to my local dealers, certainly the demand is not there in rural areas. That's because of the lack of infrastructure. In our last panel, we did have some good information on some of the requirements.
Again, I'd like to go back to the electricity. Ultimately, whatever that cost is—we've heard upwards of $250 billion to electrify this country enough to do that—the utility companies are not going to eat those costs. Those costs are going to be passed on. As much as we talk about how they are certainly cheaper at this point in time, that is not going to be the case.
Don't get me wrong; these vehicles are marvels of innovation. I think anybody who wants to buy one should have the option. Where the folks that I represent struggle is to be told by the government what they can and cannot buy. Yes, it's the manufacturers that are being told that they have to build them, but if people don't want to buy them, they are being forced into it.
I can look at, for instance, somebody who has bought a used beater. They're a low-income or modest-income person or are called working poor. They're working their tail off to try to support their family. They really struggle with this ivory tower government that tries to tell them what is best for them, and that it is going to save them so much money, when they can barely afford to put groceries on their table. What would you recommend I say to a low-income resident in my riding when they say to me that they don't want to buy an electric vehicle?
:
Again, that's not what the standard is saying. I think when we're talking about the cost, we should also look at the opportunity cost that's mentioned in the report by Dunsky. Again, I'm sure Mr. Turner can speak more to that.
When it comes to health care, for example, over the long term, from some modelling that we did as well, there's $90 billion in savings when it comes to health care, with 11,000 fewer premature deaths. I think there are lots more benefits to implementing this and to making sure that we reach our climate targets as well.
Again, I think a lot of people in rural Canada want to be able to afford an electric car as well. I don't think every single person in rural Canada and other ridings across the country wants to drive just gas cars. What the EVAS does is, again, give them the ability to choose. By driving up supply it lowers prices and gives people the ability to be able to afford an electric car, which I think is positive and what we need in this country.
It's nice to see you both, Mr. Turner and Mr. Hersh.
During the course of this study and in our previous one, we've talked a lot about myth-busting. I just witnessed a great example of that with my honourable colleague from the Conservative Party.
I wonder, Mr. Turner, if you would like to add to that conversation and talk a little bit about mandate versus availability standard, and what it means specifically for automakers, what it means for dealerships and what it means for the consumer.
:
Thank you, Mr. Chair. I'm happy to contribute.
I'd say, thinking about how to respond to constituents who are concerned about this policy, first of all, one of the aspects to keep in mind is the time trajectory that we're talking about here. For example, today we're not at all talking about forcing everybody to buy an EV. We're talking about a policy that would require automakers to find 20% market share of their sales somewhere in the country to be electric. So, yes, it's possible that some people are reluctant, but the chances are that if we were at 14% market share in 2024 with the right mix of policy measures in place, 20% shouldn't be too much of a stretch.
Now, the elephant in the room is that, of course, over time that target increases. I think one of the things I mentioned is that in our analysis we pay careful attention to technology evolution. I think if you go back 10 years, the EVs on the market had maybe 120, 140 kilometres of range. You could only buy cars. There were no pickups on the market. Today, we have fully electric pickup trucks with a range of over 700 kilometres. We're having debates about exactly which use cases can or cannot be supported by the current crop of EVs. We'll be seeing plug-in hybrid pickup trucks coming to market from Ram next year, which should address a lot of concerns around range anxiety and things like that.
I think that's really important to keep in mind, when we project out 10 years from now, where we think the technology is going. We also have EVs that can charge in under 20 minutes at this point. I think there's generally a lack of awareness of this progress and the various technology options that are coming to market both here in Canada and elsewhere across the world.
On the topic of grid impacts, we were the authors of the study that's often reported on in terms of the cost of upgrading our grid. We presented a range of possible outcomes, including more optimistic and more conservative scenarios. We find that, of course, the very top end of that estimate is often quoted. Our central estimate is that grid upgrades are more on the order of $90 billion, and that's for both light and heavy-duty transportation. Just for light-duty vehicles, we are talking about $45 billion by our latest estimates. Crucially, those EVs contribute over $70 billion in revenue to electric utilities because EV drivers pay for more electricity. The revenue that utilities collect from these EV drivers more than offsets the cost of the upgrades required to support them. This mirrors findings that we're seeing south of the border as well in California that find that EVs are actually a net benefit to the grid and can drive electricity costs down for all electricity consumers, whether they drive an EV or not. I think that's in parallel to significant benefits in terms of fuel savings as well.
:
Thank you for your question.
[English]
I would say that this is often left out of the discussion. I think a lot of our analysis in previous years had a big focus on reducing greenhouse gas emissions, but I think this loses sight of a number of benefits that are much closer to home for the average consumer.
I mentioned my neighbour, who is very happy to be saving thousands of dollars a year by driving an EV. That's one of the benefits of this technology that is, really, overlooked. I think the vast majority of people are still unaware of how much more affordable an EV can be to drive.
In terms of air quality, anybody who lives in a city is familiar with those days, during the peak of summer, when you go in and you see that yellow haze over the city. The numbers show that this has a significant impact on a portion of our population who deals with respiratory challenges.
:
Thank you for your question.
[English]
I think those are great examples of the transformation that we've seen in other countries. Some countries are going from not having a developed electricity system at all to suddenly seeing rapid development in that space. If you look back 100 or 150 years here in Canada, you see that we did not have an electricity system.
Yes, it is a significant transformation. We are talking about significant low growth over time, but there are two elements that work in favour and mean that electric utilities actually like transportation electrification.
First of all, it's not going to happen overnight. Some people like to talk about what would happen if everybody switched to an EV tomorrow; that's simply not going to happen. Even if we hit 100% of new sales in 2035, it would take until about 2050 before the entire fleet was electric; that fleet turnover time gives utilities a long runway to react to this transition.
More importantly, utilities see EVs as a very flexible load. Most people want an EV with 500 kilometres of range, but they drive only 50 kilometres a day, and it takes about one to two hours per day to charge for that. Most people plug in at 6 p.m. and unplug the next day at 6 a.m. or 7 a.m. There's a lot of flexibility in when that charging can happen, and that's really the key ingredient that allows utilities to turn EVs into a net benefit in the grid. It's a flexible load that can accommodate and shift away from when the grid is already at full capacity and maximize the use of variable sources of renewable energy.
:
Thank you for your question.
Of course, we can send you that report.
[English]
We've been in the room with electric utilities as they try to decide what forecast they should build their plan around. They're actively trying to decide what kinds of investments they need to make.
It used to be that, when we first started doing these kinds of forecasts in 2018, we would put forth several different scenarios for how many EVs might materialize on their service territory. Our job has become a lot easier as we've started talking about these regulated targets. It might actually put me out of a job because, frankly, if they can just point to a target and say, “Well, we know there are going to be at least this many EVs,” then that narrows in our forecast of what we need to build for, and we can focus on other challenges.
We've seen first-hand how that can really make it easier for these utilities to plan and also to make the case to their regulators that these are investments they can and should make, and that they are in the best interests of the ratepayers.
:
That's great. Thank you.
Mr. Hersh, I have a question for you.
On November 4, Environmental Defence Canada published a reaction online to budget 2025. Environmental Defence Canada said, “More positively, the government promises that the Climate Competitiveness Strategy will strengthen industrial carbon pricing, including strengthening the backstop...fixing the benchmark.” Further, it talks about other climate issues, such as methane regulations.
Can you provide a copy of this news release to the committee? Why does Environmental Defence think that certain climate policies, for example, industrial carbon price, are important?
Mr. Chair, I'd like to resume debate on my motion that I filed on October 31 to study the industrial carbon price.
A few weeks ago, I submitted this motion. I thought it was very important. It was adjourned, but I do think it's quite important. It is in budget 2025, which was passed earlier this week. The industrial carbon price is, according to the Canadian Climate Institute, one of the most effective climate policies.
I think it would be very pertinent for this committee to spend some time studying the industrial carbon price, so I'd like to go back and bring my motion to a vote.
:
As the motion was brought forward by MP St-Pierre, he has the floor now to speak on that motion.
The witnesses who are here will no longer be speaking.
As you can see from the clock, we are 10 minutes from the end of our meeting. Therefore, as a matter of courtesy, I made the comment to request that the witnesses leave.
If your wish is not to have them leave, then I'm going to bring this to a vote and we can decide that way.
All in favour of the witnesses leaving?
[Translation]
Mr. Bonin, the witnesses don't need to be here. As a courtesy, I would ask that they be free to leave. Are you okay with them leaving?
I appreciate that the government has decided to offer any clarity. When this motion was first tabled, I was very skeptical that they would want it to be a very long study to run out the clock of this committee's important work, and it turns out that seven is just how long they want to run out the clock for on the important work of this committee. I think that is exceedingly long, given that the government has indicated in the budget that they plan to strengthen it, with no indication as to what that looks like, while also simultaneously paring back other marquee Liberal-era policies regarding the environment.
I have very little faith that the work of this committee is going into the development of an actual policy of what “strengthening” looks like, and I'd be very curious whether the Liberal members might have some insight as to when their “might be” announced changes come because, realistically, we will not start this study until February.
Based on the calendar, we have four outstanding appearances from the , and I noticed that the minister's appearance is not even included in this. It seems odd that the government would not want their own minister to appear on such an important issue, to discuss what “strengthening” might look like. Perhaps it's because we have yet to see the minister before this committee. I know she is slated to attend some time in early December, after not one but four separate invitations to appear before this committee. Again, a glaring omission from this particular motion itself is the fact that there is no desire to have the minister come before this committee to explain what “strengthening” means in the budget.
I'm opposed to the entirety of this motion because I think it's on the government to come forward with clarity about what their own policy is, unless they give us some confidence that anything we do during a study of this would actually go towards looking at what strengthening a policy would look like. However, given the calendar as it exists and that the environment commissioner came out with reports—which the government, I'm sure, doesn't want to hear, when he comes to tell us that we are nowhere near on track to meeting our emissions reduction targets—I think that should certainly take a priority, as well as the calendar, which is already very full.
Again, this is going to start in February, when we return—maybe late January in a best-case scenario. Setting up for seven meetings will take us, with other ongoing drafting, we have numerous reports.... This is an obscenely long study for the review of a policy that, I would hope.... Given the urgency this government stated it's going to act on, in terms of both economic growth and emissions reductions, but has yet to live up to, it seems silly for us to commit ourselves to such a lengthy study so far into the future.
I do not believe that we should be giving ourselves seven meetings. Frankly, I think we should put a pause on the entirety of this to allow the government to come forward with its plans for what strengthening the industrial carbon tax actually looks like.
I'll pause there, Mr. Chair.
:
Yes. Thank you, Mr. Chair.
I don't really want to ask questions, but perhaps my Liberal colleagues across the way may know and be able to respond after. This is just to build on my colleague Mr. Ross's comments regarding the timeliness and lack of information, assuming that the budget language is around strengthening.... That's leaving aside the emissions cap, but it's certainly an issue that we may want to study.
To my colleague across the way, yes, I am more than happy to talk about the industrial tax on everything in this country, but until we reach a point where it's clear what the government's plan is, I find it silly for us to try to make comments without knowing what the actual plan is. I would like to propose a different approach to this study, recognizing that I would like to have this study, which will be in February or March. Again, I would be shocked if the government didn't move forward with some sort of clarity on what a new carbon tax scheme looks like by then.
Are we on debate for an amendment right now?
An hon. member: It's a subamendment.
Branden Leslie: Okay.
My point is that I'd like to invite the and officials to come for two hours after the announcement is made to explain what the changes are. Then, if this committee so chooses, at that point in time—maybe we'll all agree that they are incredibly great changes, or maybe we'll think they are not strong enough, or whatever the situation might be—we could look at whether it's the specific language of this motion as presented or something different, but it comes forward with the same purpose, which is to study the industrial carbon tax.
I just think it behooves us to allow the government to do ITS work and fulfill ITS promises and then for us to criticize—not to just come up and pontificate and waste this committee's time when we have so many other issues. Locking it in, whether it be for even four meetings, really reduces the ability for us to be nimble. By the time we are studying this, there may be yet another environment commissioner's report on a whole suite of other issues. I just think it behooves us to remain nimble and responsive to issues as they emerge on the international stage and on the domestic stage.
Again, hopefully there's a middle ground here if we bring the and officials to talk specifically about what strengthening the industrial carbon tax means; we allow her to explain what the policy is and what it's going to be; we from there revisit this issue; and then we decide how many meetings make sense, based on the changes the government has put forward.
:
That's a very fair question from my colleague.
I'm trying to buffer against the four invitations that have gone unanswered by this . My expectation is that the environment minister will continue to hide from this committee and will not appear. The amendment is an effort to ensure that the minister shows accountability to this committee and Parliament, broadly speaking, by showing up within a set period.
That's a very fair point, not knowing when the strengthening of the industrial carbon tax announcement or any further details may be coming. I'm willing to make changes to the specific text of that, but my concern is that we are soon, hopefully, to be giving drafting instructions on the failure of this government to meet its 2030 emissions reduction targets. Specifically in that motion, we have not yet fulfilled it because one of the centrepiece items in that motion was to have the appear. I'd hate for us to forget that this was a key part of the motion that you, my colleague from Quebec, had sponsored to bring the minister here. We still have not heard from her.
She is slated to come on the supplementary estimates. Great. The most basic thing a could do is come before her committee on the money going out the door to her department. We had to fight tooth and nail to get her to stay for a second hour on what was the first motion this committee passed in its infancy, which was, “Hey Minister, come here to talk about your priorities and your mandates since there are no longer public mandate letters.” We have outstanding...on the emissions reductions target and the electric vehicle mandates that are in place, although on pause.
My concern with making that particular proposed amendment.... I'm willing to be flexible on that, but we have just such a long track record. The history of the so-called new Liberal government is the refusing to appear—