Zero Emission: Dealers Moving Into the Future

The Zero Emission Vehicle (ZEV) Standard came into effect on January 11, 2018. While some U.S. states have similar laws, Quebec is the first Canadian province to adopt such legislation. On April 30, 2018, there were 27,014 electric vehicles on Quebec roads. This number has been increasing at a rate of approximately 50% per year. The ZEV Standard applies to electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and hydrogen fuel cell electric vehicles (FCEVs). The government sets quotas for manufacturers, who can earn credits by selling or leasing these vehicles long-term. If these targets are not met, manufacturers must pay a fee to the government or buy credits from other, more environmentally conscious manufacturers. The targets increase each year, making it possible for the government to predict that by 2025, one in ten cars will be green.

GROWING GLOBAL DEMAND

Consultants at Navigant Research1 estimate that sales of light-duty electric vehicles will reach nearly 11 million units by 2025, or 9% of total light-duty vehicle sales. Between 2015 and 2016, global electric vehicle sales increased by 40%, bringing the total to 770,000 vehicles. There are currently more than 2 million electric vehicles in the world.

TRANSPORTATION ELECTRIFICATION ACTION PLAN 2015-2020

 On October 9, 2015, the Quebec government unveiled the Transportation Electrification Action Plan 2015- 2020. The Plan states the government’s desire to join the fight against climate change by reducing greenhouse gas emissions and setting a goal of 100,000 electric and plug-in hybrid vehicles registered in Quebec by 2020.

 AN AMBITIOUS BUT ACHIEVABLE TARGET

Although ambitious, the target is achievable if the Quebec government takes a global view of the issue. Nevertheless, the CCAQ believes that the ZEV Standard is not enough to help the government reach its goal of 100,000 electric vehicles and plug-in hybrids registered in Quebec by 2020 and is proposing the implementation of the following measures:

1. Invest the financial resources needed to install thousands of public charging stations, including 2,000 fast charging stations. The prime minister is aware that a lack of charging stations is the most important barrier to increased sales of electric vehicles. That is why, on April 20, he announced that the Quebec government would see to it that citizens would have access to 2,500 electric vehicle charging stations within two years, although he did not specify what proportion would be fast charging stations. On May 15, Minister of Energy and Natural Resources Pierre Moreau presented a bill to the National Assembly with the objective of adding 1,600 fast charging stations within 10 years. The CCAQ fully supports these efforts.

1. In addition to the current $8,000 purchase rebate, the Quebec government could consider other measures to encourage the purchase of 100% electric and plug-in hybrid vehicles. For example, the Quebec government could consider eliminating or reducing the provincial portion of the sales tax (QST) for 100% electric and plug-in hybrid vehicles. With elections on the horizon, the CCAQ believes that this kind of short-term measure would help boost sales.

III. Make grants available to homeowners, commercial building owners, and condominium corporations for the installation of electrical charging stations and power supply infrastructure. In its Sustainable Mobility Policy 2030, the Quebec government states that it will continue its efforts to improve charging networks in multiple unit residential buildings and new office buildings.

2025. Invest in advertising to increase public awareness of the advantages of 100% electric and plug-in hybrid vehicles. The CCAQ is delighted that Minister Pierre Moreau has allocated $4 million to Transition énergétique Québec, the organization responsible for the Drive Electric program and for raising public awareness about the electrification of transportation. The grant will serve to fund an awareness, information, and education campaign on electric vehicles. However, the province must lead by example as the purchase of 100% electric and plug-in hybrid vehicles cannot be forced. To this end, the government plans to implement measures for its departments and agencies starting in 2025. By mandating the acquisition of 100% electric vehicles for their fleet of passenger vehicles, the province intends to model the efforts that must be made to achieve this goal.

1. Invest in training on the sale and after-sales service of 100% electric and plug-in hybrid vehicles. Professional training and skills development are key to the electrification of transportation. That is why the CCAQ has begun training dealers and their sales teams on the best way to sell 100% electric and plug-in hybrid vehicles to help guide the public into the world of electromobility. It is currently working on a brochure for buyers of 100% electric and plug-in hybrid vehicles.

 THE CCAQ: CONNECTED TO THE FUTURE