Made in Canada fuel economy standards

Today the federal government announced plans to create ‘made-in-Canada’ fuel economy standards for cars and light trucks, which would, at a minimum, meet regulations recently introduced in the US.

Speaking at the Montreal International Auto Show, Federal Transport Minister Lawrence Cannon said consultations with industry, environmental groups and the provinces and territories would soon begin to ensure that Canada reach the target of improving fuel economy by 40% by 2020 with a unique Canadian approach. By which time, Cannon projected, vehicles sold in Canada will offer better fuel consumption than many hybrids on the road today. New standards would be imposed on models starting in 2011 to reach the goal.

In December, US President George W. Bush approved a law requiring automakers to increase the average fuel economy of their entire fleets by 40% by 2020. Under the new legislation, motor vehicles would be required to meet an average 35 miles per US gallon (6.7 L/100 km) within 12 years.

Environmental groups have lambasted the US plan as not going far enough in the context of international standards aimed at fighting climate change and greenhouse gas emissions. Ken Ogilvie, the executive director of the environmental research group Pollution Probe, called the US standards the ‘weakest in the world.’ Critics also note that the law also fails to set intermediate requirements for automakers, which would give industry plenty of opportunity to lobby against the 2020 target.

Some provinces, including British Columbia and Quebec, hope to follow California’s lead in attempting to set fuel economy standards more stringent than federal rules, which would achieve better fuel economy about four years ahead of the Bush administration plan. However, California is currently in a legal dispute with the Environmental Protection Agency over jurisdiction to set a separate standard. Meanwhile, Ontario, whose manufacturing sector is bolstered by a significant auto industry presence, has called for a national standard.

The US law came into play this week in the presidential campaign, as former Massachusetts governor Mitt Romney pledged before the Michigan primary that he would ease emissions restrictions on the auto industry if elected to the White House.

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