Benefits to Consumers
- New
legislation will result in significant fuel cost savings for drivers. On average, consumers
will save $3,600 in fuel costs over the life of a new vehicle (based on
fuel at $1/litre). These savings will pay back any increases in vehicle
costs in about three years.
- It will provide consumers with
more environmentally conscious choices without compromising vehicle
performance, reliability or safety.
- It will ensure that
consumers will continue to be able to choose from the full range of
vehicles available today.
- Adoption
of the California standards will help protect consumers from the impacts
of predicted constraints on oil supply and associated record high gasoline
prices.
Greenhouse Gas Reductions
- The transportation sector
is responsible for 38 per cent of B.C.’s total GHG emissions.
- The standards will reduce
GHG emissions by about 22 per cent and 30 per cent in an average new car
in 2012 and 2016, respectively, relative to current models.
- When fully implemented in
2016, the standards will achieve a reduction of personal vehicle GHG
emissions of nearly 600,000 tonnes annually in B.C.
- This amount is over and
above the reduction expected from the new fuel efficiency standards
adopted nationally in the U.S. and committed to as a minimum by the
Canadian federal government.
Industry Implications
- Analysis by the California
Air Resources Board and the Northeast States Centre for a Clean Air Future
indicates that manufacturers can meet the 2016 standards with no change in
the mix of models offered for sale, using technologies that are already
available or under development – without compromising performance,
reliability or safety.
- Because the
standards apply on a fleet average basis, they do not restrict consumer
choice. Manufacturers will comply
by selling enough low GHG emission vehicles to meet average fleet
requirements.
- Each of two
weight classes of vehicles is considered a fleet, and has its own annual
standard: one for passenger cars / small trucks; one for larger trucks /
SUVs / vans.
o
Thus, many manufacturers will have two fleets.
o
By separating weight class, the regulation
preserves choice for heavier vehicles often used for work purposes.
- A U.S. federal court in
September 2007 rejected automaker claims that the California-style
regulations were burdensome and would cause undue economic hardship to the
industry.
- The benefit of the
standards is that they will accelerate the broader adoption of clean
technologies.
Enforcement
- Under the act, automakers’
fleets of vehicles will not be allowed to exceed pre-determined
fleet-average GHG emission standards. The “fleet-average” approach
enables manufacturers to keep selling vehicles that exceed the allowed
emissions – provided they sell enough low-emission vehicles for their
fleets to meet the new average standards.
- Following California’s
model, the regulations will set two separate fleet average standards per
year: one standard for passenger cars and small trucks, and a less
stringent standard for larger trucks, SUVs and vans.
- Also following the California model,
the act provides for automatic administrative penalties for non-compliance
with key requirements.
- In addition, and consistent
with enforcement provisions in other B.C. climate action bills, the new
legislation establishes that certain actions, such as failure to comply
with reporting requirements, or providing false or misleading information,
will be considered offences and may be subject to prosecution and
penalties steeper than the administrative penalties.
- Prosecutions may be initiated
where circumstances warrant, such as in cases of particularly serious
contraventions.
Government of Canada
(Federal Standards)
- The
Government of Canada recently announced that it will match the new U.S.
Corporate Fuel Economy (CAFE) standard as a minimum.
- That
standard would take effect in 2011. National standards are voluntary until
that time. However, B.C. is committed to the California standard.
- The
Province does not need approval from the federal government to put this
standard in place, and the regulation will be ready to be activated when
California starts to implement its regulation.
To learn
more about B.C.’s climate change initiatives, please visit the Ministry of
Environment and the Climate Action Secretariat websites at www.gov.bc.ca/env and www.climateactionsecretariat.gov.bc.ca.
For all the details on this and other new legislation, please visit www.leg.bc.ca/38th4th/votes/progress-of-bills.htm.
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