Canadian Policy

In September 2010, Environment Canada finalized greenhouse gas emissions regulations for 2011–2016 model year passenger automobiles and light trucks. This regulation aligns emission standards and test procedures with those of the U.S. The regulation provides companies with similar compliance flexibilities to those available under the U.S. Environmental Protection Agency’s greenhouse gas (GHG) regulation, including advanced technology credits, air conditioning leakage and efficiency credits, flexible-fuel vehicle credits and credit transfer among fleets. The Canadian federal government is also expected to publish a final regulation in 2014 for light-duty vehicles that maintains alignment with EPA vehicle GHG standards for the 2017 to 2025 model years.

In February 2013, Environment Canada published the final regulation for 2014 to 2018 heavy-duty vehicles. It is also in alignment with the U.S. federal heavy-duty vehicle GHG regulations, which will begin with the 2014 model year. The Provinces of Quebec, Manitoba and British Columbia participate in the Western Climate Change Initiative and had committed to adopt GHG regulations based on California standards. Quebec has promulgated a GHG regulation based on the California standards, but with fewer flexibility mechanisms. Now that the Canadian federal regulation is in place, the Quebec government has amended the Quebec regulation to recognize equivalency with the federal standards. Reporting of Quebec fleet performance is still required. We are hopeful that Quebec will see the benefit of a single standard for Canada, consistent with the One National Program effort in the U.S. Ford has participated in regulatory discussions on this issue, providing technical expertise and supporting a tough, aligned, national standard. British Columbia and Manitoba have both acknowledged the value of the new federal standards.

Environment Canada has also regulated renewable fuel content in on-road gasoline. Effective September 2010, renewable levels in the national pool of gasoline must average 5 percent. Environment Canada has also implemented a regulation for renewable content in diesel fuel. As of July 2011, the regulation requires 2 percent renewable content in diesel fuels.