Environment Committee on April 16th, 2026

[The Chair, Liberal, Shannon Miedema]

I call this meeting to order.

Good morning, everyone.

This is meeting number 33 of the Standing Committee on Environment and Sustainable Development.

For those here in person, please remember to follow the health and safety guidelines, as per the cards on your table, to prevent audio or feedback incidents.

Today, we are doing an additional session for our study on the electric vehicle availability standard. We have witnesses from various government departments here today.

Thank you so much for being here with us.

From the Department of Industry, we have Benoit Tessier, director general, automotive, transportation and industrial skills branch.

From the Department of the Environment, we have Mark Cauchi, director general, energy and transportation, environmental protection branch.

From the Department of Natural Resources, we have Anna van der Kamp, executive director of decarbonization programs.

To begin, every witness will have five minutes to give an opening statement. I have cards and will give you a one-minute warning and let you know when your time is up, if that is helpful. After all three of you have given your comments, we will go to questions from committee members.

Let's begin with Mr. Tessier.

The floor is yours.

[Benoit Tessier, Director General, Automotive, Transportation and Industrial Skills Branch, Department of Industry]

Thank you, Madam Chair and members of the committee.

It's my pleasure to appear today to discuss the Government of Canada's actions to support the automotive sector and the workers who are the foundation of this industry.

For over a century, Canada's auto industry and its dedicated workforce have been a pillar of the Canadian economy.

In 2025, the sector contributed over $17 billion to Canada’s gross domestic product and supported more than 120,000 direct jobs across the country. It remains, of course, one of Canada’s largest export industries.

Earlier this year, the government launched Canada’s automotive strategy to protect the industry in the face of trade disruptions and to position it to become a global leader in next-generation vehicle manufacturing. ISED is mainly responsible for the strategic response fund component of the auto strategy, so I can summarize the strategy in my remarks, but I suggest that specific questions related to each element be directed to the appropriate departments.

This strategy charts a course for a sector that is electrifying and becoming increasingly competitive on a global scale. It aims to protect manufacturers operating in Canada and their supply chains, while attracting new investments.

The Government of Canada announced an allocation of up to $3 billion through the strategic response fund and up to $100 million through the regional tariff response initiative to support large-scale projects and small and medium-sized enterprises across the automotive supply chain.

The government is also seeking to strengthen the automotive duty remission framework to better align trade policy with industrial objectives, while maintaining countertariffs on U.S. vehicle imports for as long as necessary to protect Canadian workers and manufacturers.

At the heart of the strategy is the long-term certainty it provides regarding projections for reducing emissions from light-duty vehicles, which is particularly relevant to this committee.

The Government of Canada will introduce new Canada-specific greenhouse gas emissions standards for light-duty vehicles for model years 2027 to 2032, and will repeal the electric vehicle availability standard in order to provide a more flexible, outcome-based approach that supports emissions reductions in a technology-neutral manner, enabling industry to adapt to market conditions and consumer demand.

To support electric vehicle adoption, the Government of Canada has launched a new five-year electric vehicle affordability program. This program provides up to $5,000 for battery electric and fuel cell vehicles and up to $2,500 for plug-in hybrid vehicles to help make zero-emission vehicles more accessible to Canadian families and businesses.

In parallel, the Government of Canada will develop a national charging infrastructure strategy supported by a $1.5-billion investment through the Canada Infrastructure Bank. This initiative seeks to accelerate the deployment of charging infrastructure, leverage private sector investment and ensure that Canadians have reliable access to charging across the country. Taken together, these measures are aiming to support an automotive sector that is competitive, resilient and aligned with Canada’s environmental and economic objectives.

Thank you. I look forward to your questions.

[The Chair, Liberal, Shannon Miedema]

Thank you, Mr. Tessier.

Now we will move to Mr. Cauchi for five minutes.

The floor is yours.

[Mark Cauchi, Director General, Energy and Transportation, Environmental Protection Branch, Department of the Environment]

Thank you, Madam Chair, vice-chairs and members of the committee, for the opportunity to appear before you today.

I would like to begin by acknowledging that we are gathered on the traditional and unceded territory of the Algonquin Anishinabe people.

I am pleased to be here with colleagues from across the government to discuss the auto strategy that the Government of Canada announced and the approach we are taking to reduce emissions in the transportation sector while supporting jobs, investment and affordability for Canadians. While transportation is central to Canadians' daily lives and our economy, it is also one of the largest sources of greenhouse gases and air pollutant emissions. This gives us an opportunity.

The challenge before us is not whether change is coming to the auto sector—it is already under way globally—but how Canada manages that transition in a way that maintains the auto sector's competitiveness while enabling Canadian drivers to have access to the most innovative, affordable and clean vehicles and technologies possible.

At its core, this discussion is about practicality. Canadians expect environmental policies to deliver results in the real world, not just on paper. Canada's auto industry is grounded in a simple principle: Focus on outcomes that matter to Canadians while giving industry the flexibility it needs to succeed in a rapidly changing global market.

This means three things.

First, ensuring Canadians have access to clean, affordable transportation options.

Second, reducing emissions in real and measurable ways.

Third, supporting a competitive, resilient automotive sector that provides good jobs and reduces unnecessary red tape.

To this end, following extensive consultations, the Prime Minister announced in 2026 that we will repeal the electric vehicle availability standard and strengthen Canada's light-duty greenhouse gas performance standard for new vehicles and make them sovereign. This is not a retreat from climate ambition. It is a move toward a simpler, more coherent and more effective regulatory framework. By focusing on a performance-based standard, Canada is setting clear and achievable expectations for emissions reductions while remaining technology neutral. It is expected to drive increased zero-emissions vehicle sales as the standard becomes more stringent.

The outcome is clear: Emissions must come down. What remains flexible is how industry gets there. An informed and rational policy approach recognizes the need for increased flexibility for everyone, especially in the context of the current tariff situation and the price volatility of oil and gas, while still moving decisively toward lower emissions. Automakers will have flexibility in how they comply, whether through battery electric vehicles, hybrid technologies that include both plug-in hybrids and conventional hybrids and increasingly efficient internal combustion vehicles. What they cannot do is avoid reducing emissions further. This will be non-negotiable.

This approach sets Canada on a credible path toward approximately 75% electric vehicle sales by 2035, with an aspirational target of 90% by 2040.

It also increases flexibility for automakers while still positioning us to continue reducing emissions on a pathway to net zero by 2050. In short, it's a win-win.

As many of you know, Canada's auto sector employs nearly half a million people and contributes billions of dollars annually to our economy. At a time when the sector is facing global competition, trade pressures and rapid technological change, competitiveness matters and so does affordability. One in four new vehicles sold globally is now an electric vehicle, and that share is rising.

Many Canadians want cleaner, more efficient vehicles, but cost and practicality remain a consideration. That is why regulatory measures are being complemented by a broader national auto strategy developed in collaboration with Transport Canada, Natural Resources Canada and ISED in an effort to create supportive policies for consumers and industry. These include the renewal of federal purchase incentives of up to $5,000, investments to expand charging infrastructure and actions to increase access to a wider range of lower-cost electric vehicles.

Thank you. I look forward to the committee's questions.

[The Chair, Liberal, Shannon Miedema]

Thank you very much, Mr. Cauchi, for your testimony.

We will now move to Ms. van der Kamp.

The floor is yours for five minutes.

[Anna van der Kamp, Executive Director, Decarbonization Programs, Department of Natural Resources]

Thank you very much.

Thank you for the opportunity to testify today.

I'd like to present some of the issues that really impact charging affordability, availability and convenience for Canadians in both rural and urban areas. As you know, the vast majority of charging is going to happen at home, when a car is sitting idle for several hours, generally overnight. This is generally provided by what's called level 2 charging. It takes about eight hours or so to recharge a battery and should serve, actually, 80% to 90% of charging needs of the average Canadian, even in a rural area, where they may travel 60 to 70 kilometres, as compared to urban daily travel, which is only about 30 to 40 kilometres. The average range for an EV now is 450 kilometres. That's enough for daily travel, even in the coldest winter.

DC fast charging, or level 3 charging, generally only takes 15 to 30 minutes now to charge an EV. That's used for the occasional long trip of over 400 kilometres a day. These are placed along highways, but also in town centres, like at a grocery store or a fast food restaurant. The idea is to place them in convenient places where you would already want to stop for 15 to 30 minutes.

NRCan has mapped every square populated kilometre in Canada and every major travel corridor to estimate the expected demand two years out based on many factors. I'd like to give you some highlights of our findings.

With respect to daily travel for EV owners, drivers in rural areas should actually be okay, but with respect to corridors, we see gaps in those northern and remote regions. In urban areas, with respect to daily travel there are actually serious gaps, but in most cities the main corridors around them are fine.

The issue in urban areas is that many don't have access to home charging. One-third of Canadians live in multi-unit residential buildings, and the vast majority of those buildings don't have charging. If you have a single family home with a parking spot, it's feasible to install a charger. That costs about $1,500.

I would note that the new proposed regulatory approach is technology neutral, and so more Canadians in rural areas are going to purchase plug-in hybrids or conventional hybrids that actually require even less charging, if any at all. However, for those living in apartment buildings or condos, it can be prohibitive, costing between $2,500 and $10,000 to have charging installed in your space. There are many other barriers, so we need to consider the Canadians who don't have private parking spots at all.

Another important part is affordability. Level 2 charging is by far the cheapest, especially at home. In Canada, on average, if you can just charge at home, this will cost only about $700 a year. You can recuperate the cost of that charger in a year. As a point of reference, filling a tank of gas, at about $1.50 per litre, would be more than $3,000 a year. Level 3 charging is the most expensive. The average cost currently is about 42¢ per kilowatt hour. If this is your sole source of charging, it will cost you about $2,000 annually, three times as much as charging at home.

There is another option, which is level 2 public charging. This could be at a community centre, a restaurant or, hopefully, where you work, somewhere where your car is going to sit for a few hours. If you had to rely on only this charging, that would be about $1,200. The point is that level 2 charging at home or at work is fundamentally cheaper and more convenient for Canadians.

The amount of public charging that's required is dependent on how much private charging we have. In Canada, we have around 700,000 private chargers and just under 40,000 public chargers. However, over 30,000 of those public chargers are level 2 chargers.

Public charging is concentrated, as we can see, where there is demand. However, I would note that those areas that have the highest demand still actually have the highest capacity gaps. We need a basic level of service for public charging for sure, but the real underserved areas in two years will continue to be remote corridors as well as urban and suburban areas with high-density housing.

To reiterate, private level 2 charging should be favoured, and access to private charging impacts how much public charging we need. I like to think of that level 3 charging, which most people are concerned about, as the tip of the iceberg above the water. The real issue is below the water, those level 2 chargers.

Given all these complexities, that's why the government is committed to putting together this national charging infrastructure strategy as part of the automotive strategy that will bring together the Canadian ecosystem to address top barriers and to attract more private sector investment, which is going to be necessary to meet demand. Private investment in charging is dependent on how much revenue can be generated. Currently, only the sites with high traffic areas are getting the utilization rates that attract significant private investment.

The zero emission vehicle infrastructure program, which I manage, is designed to support charging where it is needed, but also where it's challenging to attract private investment. To date, a large percentage of our funds have gone to those multi-unit residential buildings, and I would note that our last two calls for project proposals were focused on filling the gaps in Canada’s charging infrastructure in rural and remote areas.

Thank you.

[The Chair, Liberal, Shannon Miedema]

Thank you very much for your testimony.

We will now move to questions from committee members. We will begin with Mr. Leslie for six minutes.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

Thank you, Madam Chair.

I'm going to direct most of my questions to ECCC, but if somebody knows more, please step in.

Have the EV mandate regulations been officially repealed?

[Mark Cauchi]

The mandate regulations are in the process of being repealed. They have not been legally repealed. That will require a publication in the Canada Gazette. We are in the process of developing that repeal document for Governor in Council approval.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

Now, in lieu of this, the Liberals are set to announce tougher tailpipe rules. If those rules are set high enough, is this not just a rebranded EV forced mandate program?

[Mark Cauchi]

We are not implementing a sales mandate. The direction we've been given by the government is to develop GHG performance standards. These standards were put in place originally in Canada in 2010 by the Harper government. These standards are technology neutral. They do not require sales of any particular kind of vehicle.

The stringency, however, of those standards will be set at a level that will definitely drive increased efficiency—

[Branden Leslie, Conservative, Portage—Lisgar, MB]

Will it also drive a higher cost for the manufacturer?

[Mark Cauchi]

We're going to be releasing our cost-benefit analysis on that. There's pretty clear evidence that technology-neutral GHG performance standards are lower cost. I think the industry has now gone on the record to say that they support the government's announcement to—

[Branden Leslie, Conservative, Portage—Lisgar, MB]

There certainly seems to be lots of details lacking.

What is the anticipated timeline? Are the regulations finalized on your end? When are they planning to be gazetted? You're talking about 2027. That's under nine months away. Manufacturers are going to have to make adjustments to abide by these new regulations. What does this timeline look like?

[Mark Cauchi]

The regulations are in place right now for the 2026 model year. The government is going to publish the revised regulations by the end of the year.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

How would a manufacturer for the 2027 model year, as outlined in the plan, make those necessary adjustments if they don't know the regulations?

[Mark Cauchi]

As the Prime Minister announced on February 5, the existing regulations remain in place for 2026, the GHG performance standards.

The stringency for next year, which the Prime Minister also stated, is the same as this year, so the auto sector does have some certainty as to what those regulations look like and what the stringency will be.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

Well, they don't actually start in 2027. I can probably buy a 2027 model in a month. They come out quite a bit earlier. It's actually a 2028 model year.

[Mark Cauchi]

Legal obligations will apply for the 2027 model year, the new stringency, running out until 2032. The existing regulations are in place now.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

You mentioned 2010. That was the harmonization with the United States. My expectation is that we are going to be deharmonizing with the United States and having more stringent tailpipe emissions requirements. What impact is that going to have on the cost for manufacturers? What impact is it going to have in terms of availability of models that may not be able to come in here? Most importantly perhaps, with the ongoing and upcoming CUSMA negotiations and the government's seemingly lack of an auto strategy, what does the collaboration look like in terms of trade negotiations? If we don't maintain harmony with tailpipe emissions with the United States, what impact is that going to have on availability and cost for Canadian consumers?

[Mark Cauchi]

I have a couple of things on that point.

While CUSMA definitely is in the mix here, and we've seen a long history of alignment in Canada, I would say that the air pollution regulations that Canada has right now on vehicles will remain aligned with those of the United States. Those are critical alignment areas. Those include test cycles. There will be a consistency of test cycles across the border in Canada and the U.S., so they will remain identical.

Most of the vehicles that are electric are actually being imported from outside the U.S. About 80% of EVs are coming from jurisdictions outside the U.S.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

I'm talking about non-electric vehicles.

[Mark Cauchi]

The technology-neutral performance standard does not require a specific type of vehicle to be sold. OEMs will have the choice as to what vehicles they bring for sale into Canada. There's no enforcement on the particular type of vehicle.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

It's reasonable to think it's going to reduce the number of models coming into the country. We're a smaller market than the United States. That's our predominant interaction in terms of manufacturing. It's reasonable to believe that fewer models from fewer manufacturers are going to make their way in here if they can just sell more cars in the United States and have lower tailpipe emissions. That was the point of harmonization back in 2010, if I recall correctly.

[Mark Cauchi]

Yes. I would say it was another time, 2010, and now we're in very different times. We see a much more efficient fleet both in Canada and the U.S. We also see state-level requirements remaining in place in the United States. About 40% of the U.S. auto market is under some sort of state-level regulation, which is also going to drive the fleet. We're not entirely clear that the U.S. fleet is going to—