Motor Vehicle Fuel Consumption Standards Act (R.S.C., 1985, c. M-9)

Act current to 2017-09-14 and last amended on 2007-11-02. Previous Versions

Calculation of Company Average Fuel Consumption

Marginal note:Company’s annual report to Minister
  •  (1) Every company shall, before the prescribed time, submit to the Minister a report with respect to each year, in prescribed form, setting out, by registered fuel consumption number, with respect to all motor vehicles to which registered fuel consumption numbers apply, the aggregate of

    • (a) the number of those motor vehicles that it has manufactured in Canada in that year for the purpose of sale in a province other than the province of manufacture,

    • (b) the number of those motor vehicles that it has imported into Canada in that year for the purpose of sale in Canada, and

    • (c) in accordance with subsection 19(2), the number of those motor vehicles that it has manufactured in Canada in that year for the purpose of sale in Canada, other than motor vehicles described in paragraph (a), and to which has been applied a national fuel consumption mark described in section 17.

  • Marginal note:Year of manufacture or importation of motor vehicle

    (2) For the purposes of subsection (1), a motor vehicle shall be deemed to have been manufactured or imported either in the year in which it was in fact manufactured or imported, as the case may be, or in the following year, at the option of the company.

  • 1980-81-82-83, c. 113, s. 9.
Marginal note:Calculation of company average fuel consumption

 For each prescribed class of motor vehicle, the Minister shall calculate for each year, in litres per one hundred kilometres, according to the prescribed method of calculation, the company average fuel consumption for each company, based on

  • (a) the information contained in the annual report submitted by the company pursuant to section 9; and

  • (b) prescribed equivalence factors, in the case of motor vehicles that use fuels other than the prescribed reference gasoline.

  • 1980-81-82-83, c. 113, s. 10.

Enforcement of Fuel Consumption Standards

Marginal note:Company average fuel consumption not to exceed fuel consumption standard
  •  (1) A company that

    • (a) ships motor vehicles of a prescribed class from the province in which they were manufactured to another province,

    • (b) imports into Canada motor vehicles of a prescribed class,

    • (c) applies to motor vehicles of a prescribed class any national fuel consumption mark, or

    • (d) sells, offers for sale, has in possession for sale or delivers for sale motor vehicles of a prescribed class to which has been applied any national fuel consumption mark

    shall ensure that, for that class of motor vehicle, its company average fuel consumption for any particular year does not exceed the fuel consumption standard for that year.

  • Marginal note:Penalty where company exceeds fuel consumption standard

    (2) Subject to section 16, where, for any year, for a particular prescribed class of motor vehicle, the company average fuel consumption of a company exceeds the fuel consumption standard, the Minister shall issue an assessment against that company imposing, subject to subsection (3), a penalty equal to the product obtained by multiplying

    • (a) one dollar for every one-hundredth of a litre per one hundred kilometres by which the company average fuel consumption exceeds the fuel consumption standard

      by

    • (b) the aggregate number of motor vehicles set out in the report submitted pursuant to section 9.

  • Marginal note:Credits will reduce penalty

    (3) The penalty calculated under subsection (2) shall be reduced by an amount equal to the product obtained by multiplying

    • (a) one dollar for every one-hundredth of a litre per one hundred kilometres by which the company average fuel consumption for the same prescribed class of motor vehicle is lower than the fuel consumption standard

      by

    • (b) the aggregate number of motor vehicles set out in the report submitted pursuant to section 9

    in respect of

    • (c) any or all of the three years preceding the year for which the penalty is imposed, and

    • (d) the year immediately following the year for which the penalty is imposed.

  • Marginal note:A credit usable only once

    (4) An amount used under subsection (3) to reduce a penalty is not available to reduce a subsequent penalty.

  • 1980-81-82-83, c. 113, s. 11.
Marginal note:When penalty payable

 A penalty imposed under section 11 is payable to the Receiver General one year after the notice of assessment has been served on the company under subsection 13(1).

  • 1980-81-82-83, c. 113, s. 12.
Marginal note:Notice of assessment
  •  (1) Where the Minister issues an assessment against a company under section 11, he shall forthwith serve a notice of the assessment on the company and cause notice of the assessment to be published in the Canada Gazette.

  • Marginal note:Objection to assessment

    (2) A company that objects to an assessment under section 11 may, within thirty days from the day on which it is served with the notice of assessment, serve on the Minister a notice of objection, in prescribed form, setting out the reasons for objecting to the assessment.

  • Marginal note:Reconsideration of assessment

    (3) On receipt of a notice of objection under subsection (2), the Minister shall forthwith

    • (a) reconsider the assessment objected to;

    • (b) confirm, cancel or vary the assessment; and

    • (c) serve a copy of his decision on the company.

  • Marginal note:Considerations

    (4) The Minister’s decision under subsection (3) to confirm, cancel or vary an assessment shall be based solely on the following criteria:

    • (a) whether the information on which the original assessment was based was correct; and

    • (b) whether this Act and the regulations were correctly applied to that information.

  • Marginal note:Methods of service

    (5) Documents required to be served under this section may be served personally or by registered mail, and, if served by registered mail, shall be deemed to have been served on the day of actual receipt.

  • 1980-81-82-83, c. 113, s. 13.
Marginal note:Right of appeal
  •  (1) Where the Minister confirms or varies an assessment, the company may, within thirty days of being served with the Minister’s decision, appeal the Minister’s decision to the Federal Court.

  • Marginal note:Institution of appeal

    (2) An appeal to the Federal Court under subsection (1) shall be instituted in the manner set forth in section 48 of the Federal Courts Act.

  • Marginal note:Disposal of appeal

    (3) The Federal Court shall dispose of an appeal under this section by confirming, cancelling or varying the assessment, and shall base its decision solely on the criteria set out in paragraphs 13(4)(a) and (b).

  • R.S., 1985, c. M-9, s. 14;
  • 2002, c. 8, ss. 182, 183.
Marginal note:Debt due Her Majesty

 A penalty payable under section 12 is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction.

  • 1980-81-82-83, c. 113, s. 15.

Exemption from Fuel Consumption Standard

Marginal note:Applications for exemption from fuel consumption standard
  •  (1) On application by a company in the prescribed form and containing the prescribed information, the Governor in Council may, by order, in respect of up to three years,

    • (a) exempt from a fuel consumption standard up to one thousand motor vehicles per year manufactured by a manufacturer whose world production was less than ten thousand motor vehicles in the second year preceding the year in respect of which the application for exemption is made, if the Governor in Council is of the opinion that it would not be desirable to have the fuel consumption standard apply to those motor vehicles; and

    • (b) exempt from a fuel consumption standard any or all vehicles manufactured or imported by a company, where the Governor in Council is of the opinion that compliance with the fuel consumption standard would

      • (i) create substantial financial hardship for the company, or

      • (ii) prevent the development of new kinds of motor vehicles.

  • Marginal note:New fuel consumption standard may be imposed

    (2) The Governor in Council may, by order, in respect of a company that has been granted an exemption under subsection (1), impose a new fuel consumption standard applicable to the motor vehicles exempted under that subsection.

  • Marginal note:Effect of exemption

    (3) Where all the motor vehicles manufactured or imported by a company are exempted under paragraph (1)(a) or (b) and no new fuel consumption standard is imposed under subsection (2), sections 11 to 15 do not apply in respect of that company.

  • Marginal note:Idem

    (4) Where all the motor vehicles manufactured or imported by a company are exempted under paragraph (1)(a) or (b) and a new fuel consumption standard is imposed under subsection (2), sections 11 to 15 apply in respect of that company, but a reference in subsection 11(1) or (2) to “fuel consumption standard” shall be read as a reference to the new fuel consumption standard imposed under subsection (2).

  • Marginal note:Idem

    (5) Where some but not all of the motor vehicles manufactured or imported by a company are exempted under paragraph (1)(a) or (b), then

    • (a) the Minister shall calculate, in respect of that company, in the same manner as he would calculate the company average fuel consumption,

      • (i) a partial company average fuel consumption, based on the motor vehicles other than those exempted, and

      • (ii) where applicable, a second partial company average fuel consumption, based on the exempted vehicles for which a new fuel consumption standard has been imposed under subsection (2);

    • (b) a penalty under subsection 11(2) shall be calculated on the basis of the partial company average fuel consumption described in subparagraph (a)(i); and

    • (c) where a new fuel consumption standard has been imposed under subsection (2) and the partial company average fuel consumption described in subparagraph (a)(ii) exceeds that new fuel consumption standard,

      • (i) the Minister shall issue an assessment against the company imposing a penalty, subject to subsection (6), equal to the product obtained by multiplying

        • (A) one dollar for every one-hundredth of a litre per one hundred kilometres by which that partial company average fuel consumption exceeds the new fuel consumption standard

        by

        • (B) the aggregate number of motor vehicles to which the new fuel consumption standard applies, and

      • (ii) subsections 11(3) and (4) and sections 12 to 15 apply, with such modifications as the circumstances require, in respect of a penalty imposed under subparagraph (i).

  • Marginal note:Maximum penalty

    (6) A penalty imposed under subparagraph (5)(c)(i) shall not exceed the penalty that would have been imposed had no exemption been granted under subsection (1).

  • 1980-81-82-83, c. 113, s. 16.
 
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