Clean Energy Canada | Final U.S.-Canada tailpipe regulations pave the way to a clean car future
March 20, 2024

OTTAWA — Joanna Kyriazis, director of public affairs at Clean Energy Canada, made the following statement in response to the U.S. Environmental Protection Agency’s final Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles:

“The tailpipe regulations finalized today are good news for North Americans, who will reap the benefits of cleaner cars and fresher air.

“The new rules, which automatically apply in Canada, require automakers to reduce tailpipe emissions and improve the fuel efficiency of the vehicles they make, including by selling more electric vehicles. While these rules are weaker than originally proposed, they will still drive increased EV sales in the U.S. and Canada, in line with our own EV sales requirements. 

“Importantly for drivers, better fuel efficiency means fewer trips to the gas station. The U.S. Environmental Protection Agency anticipates that consumers buying a car in 2032 will pay US$6,000 less over its lifetime than if the rules did not exist. But perhaps the best way to cut gas pump prices is to skip the station altogether. Going electric can save between $30,000 and $50,000 over a ten-year ownership period, even taking into account the purchase cost. 

“The new regulations will also continue to support the transformation of the North American auto industry. Canada has already attracted over $34 billion worth of EV and battery-related investment over the last three years, recently dethroning China as the top ranking country in the world for our EV battery supply chain potential, while the U.S. has attracted US$84.8 billion in planned investments, supporting over 50,000 new jobs.

“While these new rules lay out a clear vision for North America’s auto future, it is vital that Canada continues to take the wheel on its own clean car plans—as many U.S. states have done. Indeed, when Canada introduced its EV availability standard, which requires automakers to make an increasing proportion of EVs available for sale, it joined California and 16 other U.S. states representing nearly 40% of the U.S. car market. After all, the current tailpipe rules were subject to a major back pedal during the previous Trump administration. And with a U.S. election around the corner, Canada cannot allow its auto future to be decided on by another country’s voters.”

KEY FACTS

  • The U.S. EPA estimates that the total annualized net benefits of this rule are approximately $99 billion, including:

    • $13 billion in health benefits to Americans, such as reduced rates of respiratory and cardiovascular illnesses, nonfatal heart attacks, aggravated asthma, and premature deaths linked to air pollution.
    • $72 billion in climate benefits.
    • $46 billion in fuel savings and $16 billion in repair and maintenance savings.

  • Under the new rules, consumers will save an average of $6,000 over the lifetime of a model year 2032 vehicle, compared to a vehicle meeting the 2026 standards.
  • Automakers can meet these standards by improving the fuel efficiency of the internal combustion engine vehicles they sell or by selling more hybrid electric, plug-in hybrid electric, battery electric or fuel cell vehicles. They can also purchase credits from other automakers that surpassed their own targets in a given year.
  • The projected zero-emission vehicle sales that will result from the U.S. tailpipe emission regulations are generally in-line with the targets set under Canada’s Electric Vehicle Availability Standard and will result in more EV sales than the standard alone would drive pre-2030:

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  • EV sales in Canada continue to break records, with 11.7% of all new car sales in 2023 being zero-emission, according to S&P Global Mobility.
  • A recent report from Clean Energy Canada comparing popular EV models with their gas equivalents finds that going electric can save a typical Canadian driver $3,800 annually.

    • For instance, choosing a Chevrolet Bolt instead of a Toyota Corolla Hatchback would save $33,600 over a 10-year ownership period (that’s including the upfront purchase cost and current rebates). Province-specific savings can be downloaded here.
    • Similarly, the electric version of the Ford F-150 saves $47,000 over 10 years compared to its gas equivalent. 
    • EV drivers can expect half the maintenance- and repair-related costs of a similar gas vehicle, according to Consumer Reports. 
    • A majority of Canadians (63%) correctly recognize that opting for an electric vehicle and a heat pump is cheaper than choosing fossil-fuel-powered alternatives. 

  • Transportation makes up 24% of emissions in Canada, and passenger vehicles make up around half of that.
  • More than 15,300 premature deaths each year in Canada are linked to air pollution. Canada’s federal EV regulations will result in over $90 billion in health benefits for Canadians over the next 25 years, including up to 11,000 avoided premature deaths, according to analysis by the Atmospheric Fund.

RESOURCES

Report | A Clean Bill

Media Brief | Countering common myths about electric vehicles

Poll | Six in ten Canadians believe an electric vehicle will ultimately cost them less than a gas car

Video | How clean energy makes life cheaper for Canadians

Video | A Zero Emission Vehicle Mandate for Canada