Setting the Pace: Zero-Emission Vehicle Policies

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The “Regulation to Amend the Regulation Respecting the Application of the Act to Increase the Number of Zero-Emission Motor Vehicles in Québec” updates the framework for zero-emission vehicles (ZEVs) in the province. This regulation is a part of the broader initiative of the province’s objective of reducing greenhouse gas emissions and other pollutants, thereby contributing to achieving Québec’s environmental goals.

One of the amendments is the revised definition of reconditioned motor vehicles, where the threshold for qualification has been increased from 40,000 to 100,000 kilometers. This change allows a wider range of vehicles to be eligible for ZEV incentives. Additionally, the regulation now specifies that vehicles must meet California’s stringent emission standards for model years 2020-2025. By eliminating previous generalizations, it ensures that only models meeting or exceeding the Super Ultra Low Emission Vehicle (SULEV) standards are considered.

Starting with the 2025 model year, intermediate volume manufacturers will be reclassified as large volume manufacturers, which eliminates the possibility of reclassification back to a smaller category. This aims to standardize expectations and responsibilities among manufacturers. In terms of compliance, the number of credits that manufacturers must accumulate to demonstrate adherence to zero-emission mandates is increasing, reflecting a growing commitment to ZEVs. The percentage of credits required for ZEVs sold will rise incrementally, reaching 100% by 2035.

Manufacturers are to provide detailed reports on their vehicle sales and projections for ZEV and low-emission vehicle sales over the next three years. This transparency is intended to track progress and hold manufacturers accountable. Furthermore, the credit system is enhanced with refined calculations for credits earned from the sale or lease of reconditioned vehicles, establishing incentives based on the model year.

Similar frameworks are applied to low-emission vehicles, ensuring they contribute to the overall reduction goals. For instance, a new low-emission vehicle registered after September 2025 will earn half a credit. Additionally, new metrics for evaluating the performance of zero-emission and low-emission vehicles based on their electric range will require more rigorous adherence to performance standards.

The adjustments to definitions, classifications, and credit systems are intended to be a comprehensive strategy designed to accelerate the transition to a cleaner automotive sector while holding manufacturers accountable.

Quebec (OC 1422-2023) September 20, 2023