Environment and Sustainable Development

The House of Commons Standing Committee on Environment and Sustainable Development met to study the Electric Vehicle Availability Standard (EVAS). The witnesses were Tim Reuss, President and CEO of the Canadian Automobile Dealers Association; Charles Bernard, Chief Economist of the same association; Brian Kingston, President and CEO of the Canadian Vehicle Manufacturers' Association; and Jerome Gessaroli, Senior Fellow at the Macdonald-Laurier Institute.

Tim Reuss stated that the EVAS mandates are impossible to meet due to weak consumer demand, technology limitations, and infrastructure shortfalls, especially after the cancellation of federal purchase incentives. He recommended suspending the EV mandate until trade negotiations with the U.S. are clearer, counting all hybrid vehicles toward targets, excluding EVs and hybrids from the luxury tax, preventing companies like Tesla from profiting from credit sales, and harmonizing federal rules with those of B.C. and Quebec.

Charles Bernard argued that the mandated supply of EVs is not aligned with consumer demand, creating negative effects that outweigh the intended benefits. He noted that while EV uptake is positive in some regions, it falls short of federal targets, and the disparity is worsened by rising prices and tariffs. He called for a new approach based on data from consumers and dealerships rather than political positions.

Brian Kingston said that ZEV sales have collapsed and that the EVAS targets are unrealistic, requiring a 256% increase to meet the 2027 target. He recommended fully repealing the EVAS and focusing on purchase incentives and charging infrastructure, noting that only 37,000 public charging ports exist against a need for 410,000 by 2035. He argued the EVAS duplicates existing greenhouse gas regulations and forces automakers to restrict sales of gas and hybrid vehicles and purchase over $3 billion in compliance credits, with 95% of vehicles built in Canada prohibited for sale under the mandate.

Jerome Gessaroli highlighted that EV mandates can raise costs for low-income families by reducing the supply of affordable gas vehicles and increasing used car prices. He noted that the benefits of lower operating costs are uneven, as renters and lower-income households often lack home charging and face higher public charging costs. He argued that rural and remote communities face reduced EV practicality due to long distances, cold climates, and sparse charging networks, and recommended aligning mandates with realistic demand and infrastructure rollout while focusing on emission outcomes rather than prescribing technology.

After the testimony, the committee debated a motion by Branden Leslie requesting that Tesla provide information on compliance credits sold or committed to Canadian corporations. An amendment was adopted to also request the same information from Ford, Toyota, Honda, General Motors, and Stellantis. The motion, as amended, was agreed to.