Environment Committee on Nov. 3rd, 2025

[Bruce Fanjoy, Liberal, Carleton, ON]

How does Canada's approach to electric vehicles compare to those of the U.S. and the European Union? How does that alignment support our competitiveness?

[Mark Cauchi]

As I mentioned in the opening statement, we see that a number of U.S. states—New York, California, Washington state and others—have set their own targets at the state level for electric vehicles. At our last calculation, that was representing roughly 40% of the market. There are about 11 states roughly that have put in place their own targets.

Obviously, the U.S. government has announced its intent to repeal its existing greenhouse gas regulations for vehicles, so our assumption is that those measures will disappear, although no final rule has been tabled in that regard from the U.S. government. We're waiting to see the outcome of that, as Megan mentioned. That's the situation in the U.S.

The European Union has EV targets. The United Kingdom has EV targets. China has EV targets. Other jurisdictions do as well.

[Bruce Fanjoy, Liberal, Carleton, ON]

Thank you.

As we've often seen in the past, geopolitical events and wars in other parts of the world can dramatically change the price of gas here in Canada and make life less affordable. Inflation related to oil and gas also impacts affordability.

Does electrifying transportation insulate Canadians against inflation that they would otherwise pay for via fossil fuels?

[Mark Cauchi]

There is quite a bit of literature on global oil and gas prices.

We do see quite a bit of volatility, historically, in oil and gas prices. Domestically produced electricity has had more price stability than globally set oil and gas markets. I think that's a fair assessment.

Derek, you're probably better to speak to this point.

[Derek Hermanutz]

Megan mentioned the $36.7 billion in net energy cost savings over the period in the analysis we did in 2023. This will need to be updated, of course. That net savings was the result of an increase of costs on electricity of $63.3 billion, but it was offset by $100 billion on fuel savings over the period for Canadians.

[Bruce Fanjoy, Liberal, Carleton, ON]

Thank you, Chair.

[The Chair, Liberal, Angelo Iacono]

Thank you.

Next, we have Mr. Gill for five minutes.

[Amanpreet S. Gill, Conservative, Calgary Skyview, AB]

Thank you.

In rural and northern Canada, people rely on long distance travel. In harsh conditions, how will this mandate protect their mobility and safety?

[Megan Nichols]

That is certainly something we took into consideration in designing the availability standard. For example, we have made sure to include plug-in hybrid vehicles to be considered as zero-emission vehicles under the standard. Plug-in hybrids have both the electric capability as well as traditional gas motors, so they can provide that extra backup that could be required for some Canadians.

Similarly, we see that even though range can be reduced in very cold weather, with the rapid technological improvements that are happening in this technology, that range will only improve. We see very high rates of electric vehicle uptake in other cold countries, such as Norway, where it's currently at 90%. This is another reason the availability standard increases the sales standards over time, recognizing that it will take time for those technological improvements to happen.

[Amanpreet S. Gill, Conservative, Calgary Skyview, AB]

Do you believe Canada should force the same vehicle rules on rural Canadians as it does for downtown Toronto, Vancouver or Calgary?

[Mark Cauchi]

Our regulations are national applications. I appreciate the point that in rural communities, charging infrastructure in particular may be a concern.

That being said, when we look at the data, average Canadians do not travel more than 17 kilometres a day in their commute. The EV range now more than covers that.

I appreciate the comment that long travel maybe a concern in rural communities. For that, as we mentioned, PHEVs and existing conventional vehicles are able to handle that.

[Amanpreet S. Gill, Conservative, Calgary Skyview, AB]

Will Canadians pay more for vehicles under this mandate, yes or no?

[Megan Nichols]

It's hard to give just a yes or no answer. Right now, the upfront price is higher, but over the life cycle of the car, Canadians will save money.

[Amanpreet S. Gill, Conservative, Calgary Skyview, AB]

I would like to share my time with my colleague, David Bexte.

[David Bexte, Conservative, Bow River, AB]

Thank you.

I'd like to follow up on a question. You indicated that 17 kilometres a day is the average Canadian commute. That goes directly to my colleague's question about the difference between the life of rural Canadians versus downtown Toronto. My commute was 100 kilometres one way, when I was working as a professional. This is not the same environment at all.

How are these mandates going to affect the supply of the appropriate variety of vehicles in order to supply the market of consumers who live in rural and remote regions in Canada?

[Megan Nichols]

Right now, the range of vehicles is continually improving. We're seeing over a 400-kilometre range in some cases. Again, plug-in hybrid vehicles, which have the gas engine as well, are part of our electric vehicle availability standards, so there will be a wide range of choices for consumers.

[David Bexte, Conservative, Bow River, AB]

It's a wide range of choices, but are they choices of adequate capabilities, ranges and capacities?

[Megan Nichols]

Yes.

[David Bexte, Conservative, Bow River, AB]

You're impacting this in a very negative way for that particular demographic, because you're impacting the manufacturers, and the supply is not going to be there.

I would like to go back to the diesel hybrid question, because I think we got off track here. The diesel hybrid does not seem to be accepted or included in your EV standard equivalent, and that is a local Canadian domestic innovation. Why is that?

[Mark Cauchi]

I think you're referring to HEVs or conventional hybrids. I don't think there's a country that classifies HEVs as ZEVs, as zero-emission vehicles, because they are largely combustion vehicles.

[David Bexte, Conservative, Bow River, AB]

They are plug-in hybrids, but they just have a different battery capacity and maybe not the arbitrary range designation. Is that correct?

[Mark Cauchi]

Plug-in hybrids are eligible under the regulation.

[David Bexte, Conservative, Bow River, AB]

With the range capacity, though, they have to have a certain range. This particular product, then, serves a very important market niche. It has basically been developed, but it's not included, and there's no apparent avenue to include it. Why is that?

[Mark Cauchi]

Edison is not captured by this regulation, as it is not subject to the regulation.

[David Bexte, Conservative, Bow River, AB]

However, it doesn't qualify under these regulations either.