Thank you very much, Mr. Chair.
My name is Megan Nichols. I am the assistant deputy minister of the environmental protection branch at Environment and Climate Change Canada.
I'm pleased to be here today to provide a technical briefing on the electric vehicle availability standard and to answer any questions that the committee members may have to help inform their upcoming study.
I'm joined today by Mark Cauchi, director general of energy and transportation at ECCC, as well as Derek Hermanutz, the director general of economic analysis at ECCC.
In our opening remarks, we will provide an overview of the purpose of the electric vehicle availability standard, how it works and the review that is currently under way.
I'll start by saying that from a climate change perspective, transportation is Canada's second-highest emitting sector, and a net-zero future will require a transition to zero-emission vehicles over time.
Transportation emissions in Canada represented 27% of all GHG emissions in 2023, with light-duty vehicles representing close to half of those sector emissions. We have seen improvements overall in GHG performance from passenger cars and light trucks since 2019. Some of this is due to electric vehicle deployment since that time, but it's also due to overall fuel efficiency improvements in fleet performance due to other federal regulations in place since 2010.
The electric vehicle availability standard, or EVAS, program was finalized in December 2023. It was intended to work alongside a range of other policy measures led by various federal departments aimed at supporting the electric vehicle transition.
This included the incentives for zero‑emission vehicles, or iZEV, implemented by Transport Canada; a zero‑emission vehicle infrastructure program, or ZEVIP, implemented by Natural Resources Canada; and funding implemented by Innovation, Science and Economic Development Canada to support battery and electric vehicle manufacturing in Canada.
The electric vehicle availability standard was designed to further reduce GHG emissions from light-duty vehicles by ensuring a growing supply of zero-emission vehicles and choices for Canadians. It is part of a comprehensive plan to facilitate the ZEV transition and develop a robust electric vehicle supply chain and infrastructure. When the availability standard was published, we estimated that it would bring total cumulative GHG reductions of 362 megatonnes between 2026 and 2050. This is in addition to GHG reductions from Canada's light-duty vehicle GHG standards.
In addition to GHG reductions, electric vehicles bring health benefits and cost savings to Canadians. They reduce air pollution in Canadian communities and reduce health care costs. Health Canada analysis shows that the air pollution from on-road vehicles in Canada annually contributes to asthma, lung disease, an estimated 1,200 premature deaths and millions of cases of non-fatal health outcomes. The total estimated economic cost of on-road vehicle-related air pollution to Canada is $9.5 billion each year. By 2050, the availability standard is projected to reduce various air pollutant emissions from light-duty vehicles, including particulate matter by 36%, NOx by 50%, volatile organic compounds by 61%, and carbon monoxide by 68%.
From a cost-benefit perspective, electric vehicles have lower operating and maintenance costs than gas and diesel vehicles, making their total cost of ownership lower than comparable gas-powered vehicles, even with purchase price differences. Their total cost is lower than it is for their gas counterparts, because of their significantly smaller fuelling and maintenance costs. Battery electric vehicles have fewer moving parts than other vehicles, do not require oil changes or engine tune-ups, and do not contain spark plugs or engine air filters that require replacement. The Canadian Automobile Association estimates that the average electric vehicle owner saves 40% to 50% in maintenance costs compared with having a gas-powered vehicle. The association also estimates that the average Canadian spends close to $3,000 per year on gas, whereas the annual cost of electricity to power an average electric vehicle is only a few hundred dollars. In 2023, it was estimated that Canadians will save about $36.7 billion in energy costs between now and 2050 as a result of the regulations.
I'll now turn it over to my colleague Mark Cauchi to explain how the availability standard works.