Thank you, Madam Chair.
Thank you, committee members.
I'll start by talking a little bit about who we are, so you get an understanding of our perspective.
We are an alliance of provincial trucking associations from coast to coast. We represent over 4,500 trucking companies. Our board is made up of 80 executives from across the country who are either owners or senior vice-presidents, so we represent the ownership within the trucking industry, from for-hire trucking, couriers, and private carriers—all aspects of the industry.
I'm going to tell you a story. I'm going to do what my media guys tell me never to do, which is to bury the lead, but I think you need to have an understanding of where we're coming from and our perspective when I get to the point of CEPA and enforcement.
There are two things to be mindful of as I tell this story and as I get through the recommendations. The Canadian Trucking Alliance is extremely supportive of environmental controls on our engines, which started with air-quality emissions and are moving forward with greenhouse gas emissions. Make no mistake about our support for cleaning the air and reducing our carbon footprint.
The second element of this issue to remember, when I get to it, when I give our recommendations, is that this is not a new issue I bring before this committee. The Canadian Trucking Alliance has raised the issue of enforcement in CEPA in this particular example, which I'll get to in about five or six minutes, since 2012 or 2013. It's not a new issue, but we thought this was a wonderful opportunity, and we thank you for this review to bring it forward again.
First, I'm going to talk about trucks and the environment to give you an idea of how we are regulated. We are the only freight mode in North America that is regulated both from an air-quality emission perspective and from a greenhouse gas perspective.
I'll start with the air-quality emissions. We are the only mode regulated for particulate matter and NOx. What are those two key emissions? Think smog, and on the particulate side, think respiratory-illness diseases. That rule was phased in over three periods: 2004, 2007, and 2010. By 2010, our engines—and all engines sold since 2010—are what the U.S. EPA has called “the near-zero emissions engine”. What does that mean? It means that the air you're breathing outside in Ottawa today is probably dirtier than the emissions coming out of truck tailpipes with regard to particulates and NOx.
The second phase of the regulations that come into force is on carbon footprint. Trucking is the only freight mode in Canada with engines regulated from a carbon perspective. That rule started in 2014. It goes to 2018. A second phase we're currently working with the EPA and Environment Canada on developing will start and come into effect in 2018. It will deal not only with truck engines but also with tractors and trailers.
Both of these rules are fantastic for the environment. They work, and we're supportive of them.
In terms of some of the backdrop, and no doubt you've heard this from every other sector, these rules come with a cost. One is the capital acquisition cost, which really isn't the issue I'm bringing before you; it's just an information item. Costs for those 2004, 2007, and 2010 trucks were around $15,000 more per tractor. That's not an insignificant cost when you're looking at a tractor of around $120,000, especially when you get to larger fleets and sizes, and when you're talking about for small businesses. But that's the cost of clean air. That's not an objection from CTA; it's just a fact for your consideration.
The more important issue is the cost of maintenance and downtime. The 2004, 2007, and 2010 air quality regulations were developed in a Field of Dreams type of mode: build the rig, and the technology will come.
The technology came, but it really wasn't ready. What does that mean? It means for trucking companies today that if you are a 100-truck operator you now need 120 trucks, 20% more in your fleet, to deal with downtime related to emissions controls. That's a reality.
The other reality of the regulation is to protect the environment and to ensure that these environmental components are dealt with by the fleet owners and their shops. Think of a “check engine” light, except a little bit more sophisticated. Every truck has one now, and when that check engine light comes on, it's called limp mode, which means there is a problem with some of the environmental control devices on that truck. Unlike your check engine light, which you look at and it gets annoying and you wonder if that thing is ever going to go away, for a trucking company and for a truck driver, that's a ticking clock. Eventually the truck shuts down if you don't address the issue. Keep in mind that we're dealing with trucks that are underperforming from a reliability standpoint as well as the limp mode issue.
I'll raise this in my recommendations moving forward, but what CTA will recommend going forward, because the limp mode is also going to be a function of the GHG regulation, is that we extend the distance of the limp mode to allow truck drivers who may be in various parts of the country to get home so their truck can get fixed. The environment will be dealt with but these truck drivers will be able to get home and be safe and also deliver their load as many of the loads are very time sensitive. We'll address the environment, driver safety, and the economy.
Again, I want to emphasize, as I now get into the heart of my recommendations and why you're here today, that the CTA is very supportive of the rules as they concern air quality and GHG, but there are issues. Some within our industry, with regard to maintenance and the limp mode, have decided to go an alternative route. What is that route? They've used what we generically term defeat devices. These are devices that circumvent the environmental controls on trucks. We are not supportive of the use of that technology.
In the United States, the Clean Air Act allows the U.S. federal government to go after manufacturers, resellers, and installers of these defeat devices. In Canada we do not have that authority under CEPA. Also, the provinces themselves have rules—some do and some don't—with regard to these defeat devices. Those are inconsistent and they have dark holes. We've also found consistently poor enforcement, I would label it, across the country with regard to these defeat devices.
The following are our recommendations:
One is that CEPA be amended to allow the Canadian government to enforce the same or similar penalties to those administered under the Clean Air Act for engine tampering.
Two is that although it's not ultimately the decision of the Government of Canada, Transport Canada and Environment Canada would assist the CTA in championing a tampering inspection that specifically looks for evidence of EGR and DPF devices. Those are the two main components under the clean air emissions controls to be added to the periodic mandatory vehicle inspection program. What is that? Good trucking companies will inspect their vehicles five, six, seven, eight, ten times a year from a safety perspective, but according to provincial law, a truck must be inspected at least once a year.
We're saying that at these private inspection licence facilities performing what’s called the PMVI, periodic motor vehicle inspections, a program under provincial control, these issues of defeat devices be monitored and that trucks be failed if they are found to have them.
Three is that Environment Canada must begin working with Transport Canada to establish testing protocols for greenhouse gas reduction qualifying technology and supporting wiring systems.
Although we are not making excuses for people who use defeat devices, there is a reason this is happening in the marketplace. It is creating an unlevel playing field, but there is also a motivation out there, the reason this is being done.
Four, in June 2015 the Government of Canada introduced the safer vehicles for Canadians act. The bill proposes new powers, which would allow the Minister of Transport to order a company to issue a recall and require manufacturers to fix defective or non-compliant vehicles. The minister could also order manufacturers or importers to pay for repairs and ensure that new vehicles perform reliably before they are sold to the public.
In addition, manufacturers and importers can face fines of up to $200,000 per violation. These fines are an alternative to prosecution to help address safety issues more quickly.
The Canadian government should re-examine the introduction and expansion of the safer vehicles for Canadians act to better protect purchasers of commercial equipment.
Lastly, CTA supports a modified form of limp mode technology, which I explained earlier.
In closing, I think this is a wonderful opportunity for this committee and the Government of Canada to ensure that environmental controls are in place under CEPA, and that defeat devices aren't out there, so we protect the environment and also create a level playing field for businesses. The vast majority of trucking businesses are playing by the rules and working through these maintenance rules.
Thank you, Madam Chair.
Thank you, committee members.