Environment Minister Steven Guilbeault’s mandate requiring that Canadians drive electric cars will cost at least $99 billion, according to new federal figures. Those numbers did not include millions in hidden costs like retraining auto mechanics, said his department..“The proposed amendments are expected to lead to a loss of consumer choice as the non-zero emission vehicles which are preferred by some will eventually be phased out of the light duty vehicle market,” the department wrote in a regulatory notice Saturday, according to Blacklock's Reporter..“Furthermore zero emission vehicles are expected to generally cost more than non-zero emission vehicles and this vehicle price increase could lead to a reduction in the quantity of vehicles purchased,” said the Regulatory Impact Analysis Statement. “The magnitude of these consumer welfare losses is difficult to estimate.”.The Analysis Statement is the first to quantify costs of the mandate that 20% of new vehicles sold be electric by the 2026 model year, rising by increments to 100% by 2035. Estimated and budgeted costs were:.• $55.8 billion in “total increased electricity costs over the time frame”;• $24.5 billion for electric vehicles and home charging;• $16 billion in federal subsidies for manufacturers of batteries and electric cars;• $1.7 billion in rebates for electric car buyers from 2023 to 2025;• $680 million in federal subsidies for commercial fast charging stations;• $500 million in Canada Infrastructure Bank financing to build charging stations;• $300 million already spent on $5,000 rebates for electric car buyers..The $99.4 billion total does not include related expenses like “cost of retraining mechanics,” higher insurance costs for accidents involving electric vehicles that “tend to be heavier due to the weight of batteries on board” and lost profits for “gas stations with attached convenience stores,” wrote staff..Total costs also excluded the expense to homeowners of installing high speed 240-volt charging plugs, which range up to $870. “Installation costs have not been accounted for in this analysis and may be underestimated,” said the Analysis Statement..“There is an urgent need to address climate change and move towards a low carbon economy,” wrote staff. “Greenhouse gases are primary contributors to climate change and the transportation sector accounts for 25% of domestic greenhouse gas emissions in Canada.”.The electric car mandates are not yet a legal requirement under the Canada Environmental Protection Act. Cabinet set no deadline for finalizing its regulations..Currently electrics account for 5% of vehicles on the road, by official estimate. No independent authority to date has confirmed total costs of the electric mandate..The Department of Natural Resources in a November 15 report Canada’s Public Charging Infrastructure Needs: Updated Projections said billions were required to install the minimum 442,000 public charging stations needed to meet the mandate. “In the very long term our overall estimate for public charging infrastructure needs across Canada would represent a total investment of approximately $20 billion over the next three decades,” said Updated Projections.
Environment Minister Steven Guilbeault’s mandate requiring that Canadians drive electric cars will cost at least $99 billion, according to new federal figures. Those numbers did not include millions in hidden costs like retraining auto mechanics, said his department..“The proposed amendments are expected to lead to a loss of consumer choice as the non-zero emission vehicles which are preferred by some will eventually be phased out of the light duty vehicle market,” the department wrote in a regulatory notice Saturday, according to Blacklock's Reporter..“Furthermore zero emission vehicles are expected to generally cost more than non-zero emission vehicles and this vehicle price increase could lead to a reduction in the quantity of vehicles purchased,” said the Regulatory Impact Analysis Statement. “The magnitude of these consumer welfare losses is difficult to estimate.”.The Analysis Statement is the first to quantify costs of the mandate that 20% of new vehicles sold be electric by the 2026 model year, rising by increments to 100% by 2035. Estimated and budgeted costs were:.• $55.8 billion in “total increased electricity costs over the time frame”;• $24.5 billion for electric vehicles and home charging;• $16 billion in federal subsidies for manufacturers of batteries and electric cars;• $1.7 billion in rebates for electric car buyers from 2023 to 2025;• $680 million in federal subsidies for commercial fast charging stations;• $500 million in Canada Infrastructure Bank financing to build charging stations;• $300 million already spent on $5,000 rebates for electric car buyers..The $99.4 billion total does not include related expenses like “cost of retraining mechanics,” higher insurance costs for accidents involving electric vehicles that “tend to be heavier due to the weight of batteries on board” and lost profits for “gas stations with attached convenience stores,” wrote staff..Total costs also excluded the expense to homeowners of installing high speed 240-volt charging plugs, which range up to $870. “Installation costs have not been accounted for in this analysis and may be underestimated,” said the Analysis Statement..“There is an urgent need to address climate change and move towards a low carbon economy,” wrote staff. “Greenhouse gases are primary contributors to climate change and the transportation sector accounts for 25% of domestic greenhouse gas emissions in Canada.”.The electric car mandates are not yet a legal requirement under the Canada Environmental Protection Act. Cabinet set no deadline for finalizing its regulations..Currently electrics account for 5% of vehicles on the road, by official estimate. No independent authority to date has confirmed total costs of the electric mandate..The Department of Natural Resources in a November 15 report Canada’s Public Charging Infrastructure Needs: Updated Projections said billions were required to install the minimum 442,000 public charging stations needed to meet the mandate. “In the very long term our overall estimate for public charging infrastructure needs across Canada would represent a total investment of approximately $20 billion over the next three decades,” said Updated Projections.
