Environment Committee on Nov. 23rd, 2020

[Cedric Smith]

As just a bit of background, the Pembina Institute represents a national coalition of businesses looking to accelerate low-carbon solutions in trucking, especially in last-mile solutions. This is an area that is a bit more of a nascent market than the electric car area. There are challenges to electrification in this area that are not in electric cars, or are not as significant in electric cars.

The sales are much lower. Internationally, sales of electric, medium and heavy-duty vehicles were about 3,000 units annually until 2013, and they peaked at about 200,000 in 2016. In Canada and the United States, it's especially nascent. There were only about 600 units sold in 2019, and the vast majority of those were in the United States.

In Canada again, it's mainly a number of initial projects or pilot projects. There's the AZETEC project, which is trucks that are running from Calgary to Edmonton, but it's something that is in the initial stages at the moment. At the same time, there's good reason to be optimistic.

[Peter Schiefke, Liberal, Vaudreuil—Soulanges, QC]

The next question is regarding hydrogen vehicles. The electrification of our vehicles across the country is obviously an important step toward reducing our GHGs. Last week, our government tabled the net-zero accountability act, which would aim to set Canada on the path to net zero by 2050. We know that electrification of transport will play a significant role, obviously, in getting us there. With that in mind, we also see momentum building around hydrogen fuel cell vehicles.

Once again to the Pembina Institute, how can we promote the purchase of those hydrogen-powered vehicles, and how would we balance those incentives with our desire to increase the use of electric vehicles?

[Cedric Smith]

That's a fascinating and great question.

The Pembina Institute does consider hydrogen fuel cell electric vehicles within that broader electric vehicle banner. Traditionally, zero-emission vehicles are considered to be hydrogen, battery electric or plug-in hybrid electric. If you look at, for example, the zero-emission vehicle infrastructure program, it does provide infrastructure incentives to those hydrogen-powered vehicles. Similarly, the iZEV program, by my understanding, covers all types of zero-emission vehicles.

What we would really like to see is specified incentives, specifically for the heavy-duty sector. We would like to see something on a national scale that replicates what we're seeing with the specialty-use vehicle incentive program in British Columbia, which does fund these programs.

At the same time, we're realizing that those prices are higher, so there's also room for non-financial incentive programs as well. A lot of these green vehicle licence plate programs you're seeing across the country exclude commercial vehicles, either explicitly or implicitly. We'd love to see them, to the extent that's possible, included there. There's room for low-emission zones. There's room for curbside management practices in municipalities that also incentivize the uptake of these zero-emission vehicles. This is really an exciting new space that we're seeing, and there's a lot of research to be done here.

[The Chair, Liberal, Francis Scarpaleggia]

Ms. Pauzé, the floor is yours.

[Monique Pauzé, Bloc, Repentigny, QC]

Thank you.

I want to thank all the witnesses for agreeing to stay a little longer.

For the two and a half minutes that I have left, I'll do things a little differently. I'll conduct a short survey.

You all stated, either verbally or in writing, your positions on the importance of the clean fuel standard, on the need to regulate sales targets for manufacturers, on the maintenance of provincial and federal financial incentives, and on charging infrastructure.

I'll ask just one question. I'll identify you one at a time so that you can quickly answer yes or no.

Do you see a federal mandate on zero-emission vehicles as the next step to ensure an effective transition in the sector?

[The Chair, Liberal, Francis Scarpaleggia]

We'll start with Ms. Goldberg.

[Suzanne Goldberg]

Just to clarify, is it vehicle emissions regulations?

[Monique Pauzé, Bloc, Repentigny, QC]

Yes, I was talking about legislation.

[Suzanne Goldberg]

Yes, I agree.

[The Chair, Liberal, Francis Scarpaleggia]

Mr. Charron.

[Maxime Charron]

Yes.

[The Chair, Liberal, Francis Scarpaleggia]

Mr. Kazi.

[Faisal Kazi]

I agree.

[The Chair, Liberal, Francis Scarpaleggia]

Mr. Smith.

[Cedric Smith]

I agree.

[The Chair, Liberal, Francis Scarpaleggia]

Mr. DiCaro.

[Angelo DiCaro]

Yes.

[The Chair, Liberal, Francis Scarpaleggia]

Mr. Bateman.

[Patrick Bateman]

Yes, me too.

[Monique Pauzé, Bloc, Repentigny, QC]

Do I have a few minutes left?

[The Chair, Liberal, Francis Scarpaleggia]

You have about 45 seconds left.

[Monique Pauzé, Bloc, Repentigny, QC]

My next question is for Mr. Kazi.

Your organization is international. We know that Europe has a financial mechanism called the “bonus-malus” system. This tax method is designed to fight greenhouse gases. Consumers are steered towards purchasing vehicles with low greenhouse gas emissions.

In your opinion, could we consider using this type of method here in Canada?

[Faisal Kazi]

I'm sorry. I didn't fully understand the question. I really apologize.

[Monique Pauzé, Bloc, Repentigny, QC]

I wanted to talk about another possible solution, the “bonus-malus” system. We know that, in Europe, this tax method is used to fight greenhouse gases. Consumers are steered towards purchasing vehicles with low greenhouse gas emissions.

In your opinion, could we consider using this type of method here in Canada?

[Faisal Kazi]

I think so. It would be useful.