November 8, 2007

Federal government proclaims Motor Vehicle Consumption Standards Act into law

Ottawa, Ontario – The federal government has proclaimed the Motor Vehicle Fuel Consumption Standards Act (MVFCSA) into law. The Act was originally passed in 1982 but was not proclaimed at that time, due to a voluntary commitment by manufacturers to continue to provide vehicles that meet U.S. standards.

“Regulating the fuel efficiency of new motor vehicles is an important element of the government’s legal framework for reducing greenhouse gas emissions,” said Lawrence Cannon, Minister of Transport, Infrastructure and Communities. “Proclaiming the Act is an important step towards achieving one mandatory national standard.”

In 2005, the Government of Canada and the Canadian automotive industry signed a Memorandum of Understanding, stipulating that the Canadian automotive industry would take action to voluntarily reduce greenhouse gas (GHG) emissions of new vehicles in Canada. The agreement called on the automobile industry to cut GHG from light-duty road motor vehicles (cars, minivans, SUVs and pickup trucks) so that, by 2010, annual emissions will reach 5.3 megatonnes.

Under the MVFCSA, fuel consumption standards will be established for light-duty vehicles that will come into force following the expiration of the Memorandum of Understanding in 2010. The standards will be implemented for model-year 2011.

MVFCSA standards will be developed with input from stakeholders, and will be designed for Canada to maximize our environmental and economic benefits, will be achievable within the integrated North American market, and will be benchmarked against a stringent, dominant North American standard. The new standards will be published by the end of 2008.

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