The Canadian government has proclaimed into law the Motor Vehicle Fuel Consumption Standards Act (MVFCSA).
Under the MVFCSA, fuel consumption standards will be established for light-duty road motor vehicles. These standards will come into force following the expiration of a Memorandum of Understanding (MoU) between the auto industry and the Government of Canada in 2010 and will be implemented for model year 2011.
The government will develop the new MVFCSA standards with input from stakeholders. The standards will be designed for Canada to maximize its environmental and economic benefits, will be achievable within the integrated North American market and will be benchmarked against a stringent, dominant North American standard, according to the government. The new standards will be published by the end of 2008.
The proclamation of this act is good news for Canada. Setting mandatory fuel consumption standards will lead to sustained improvements in fuel efficiency and help to reduce greenhouse gas emissions from vehicles purchased in Canada.
—Gary Lunn, Minister of Natural Resources Canada
The Motor Vehicle Fuel Consumption Standards Act provides that:
-
All motor vehicle fuel consumption values must be registered with Transport Canada;
-
Each motor vehicle must bear a fuel consumption label and a national fuel consumption mark;
-
Company Average Fuel Consumption (CAFC) standards will be set for specific classes of motor vehicles;
-
Each vehicle maker or importer must submit the data required to calculate their CAFC values for comparison against the standards;
-
Fines will be set for each vehicle maker or importer whose CAFC value for a particular class of motor vehicle is higher than the standard for that class; and
-
CAFC credits will be recorded for each vehicle maker or importer whose CAFC value for a particular class of motor vehicle is lower than the standard. If a penalty year occurs, credits may be taken from any or all of the three years before or from the year following the penalty year, to reduce the fine.
Background. The Canadian and the US motor vehicle manufacturing industries have grown increasingly integrated since the 1965 Auto Pact, which reduced barriers to the flow of automotive trade and investment between the two countries. In 1976, the Government of Canada established voluntary Company Average Fuel Consumption (CAFC) targets. These targets, by agreement with the motor vehicle industry, were set to represent an equivalent level of vehicle fuel-efficiency as provided by the then recently-enacted CAFE standards in the US
In 1982, Parliament passed the Motor Vehicle Fuel Consumption Standards Act (MVFCSA), providing for mandatory fuel consumption standards. The Act establishes the legal authority to regulate fuel consumption for prescribed classes of motor vehicles. However, the government did not proclaim the act due to the voluntary commitment by manufacturers to continue to provide vehicles that meet US standards. The voluntary commitment was broadly consistent with the framework and authorities established by the Act.
In 2005, the Government of Canada and the Canadian automotive industry signed a Memorandum of Understanding (MOU) stipulating that the Canadian automotive industry would take actions to voluntarily reduce greenhouse gas (GHG) emissions of new vehicles in Canada. The agreement called on the automobile industry to cut GHG emissions from light-duty vehicles (cars, minivans, sport utility vehicles and pickup trucks) so that by 2010, annual emissions reductions will reach 5.3 megatonnes (Mt).
In October 2006, the Government of Canada announced, under a Notice of Intent to Regulate, that it intends to regulate the fuel consumption of road motor vehicles under the Motor Vehicle Fuel Consumption Standards Act after the expiration of the MOU between the auto industry and the Government of Canada. This was confirmed in April 2007, under the Regulatory Framework for Air Emissions. (Earlier post.)
Originally Syndicated via RSS from Green Car Congress