Ottawa expected to release promised EV sales regulations Tuesday

Automakers are set to get a jolt Tuesday when Ottawa unveils its promised electric vehicle regulations.

CBC News has learned that Ottawa will release final regulations it says will ensure that all new passenger cars sold in Canada by 2035 are zero-emission vehicles, a senior government source said.

The source — who was not authorized to speak publicly — said the new regulations are meant to ensure that automakers produce enough affordable zero-emissions vehicles to meet the demand.

The regulations will be called the Electric Vehicle Availability Standard.

The source said Canada is concerned about other countries, notably the U.S., dominating the supply of zero-emission vehicles. Several states have adopted sales targets for zero-emissions vehicles already.

The regulations will apply to automakers, not dealerships. Under the legislation, manufacturers must earn enough credits to demonstrate they are meeting the targets.

Manufacturers will earn credits based on the number of low- and no-emissions vehicles they sell, and those credits determine whether they're in compliance with the regulations. Different vehicles earn different amounts of credits, depending on how close they come to a zero-emissions standard.

The source added auto manufacturers could earn early credits through a compliance system — up to a maximum of 10 per cent of their overall compliance requirements for 2026 — if they bring more EVs onto the market before then.

Automakers can also earn more credits if they help build out EV charging infrastructure.

Companies that exceed or fall short of their targets can sell or purchase credits from other companies, or use banked ones.

The source said more details of the regulations, to be enacted under the Canadian Environmental Protection Act, will be revealed on Tuesday.

The regulations will apply to model year 2026 and sales targets will increase each year until 2035.

The federal government wants 20 per cent of all vehicles sold to be zero-emissions vehicles by 2026. That target rises to 60 per cent by 2030, and 100 per cent by 2035.

According to a 2022 government analysis, the total anticipated cost to consumers of zero-emissions vehicles and chargers will be $24.5 billion over 25 years, but Canadians can expect to save $33.9 billion in net energy costs.