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

Marginal note:When penalty payable

12 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).

Marginal note:Notice of assessment

• 13 (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.

Marginal note:Right of appeal

• 14 (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).

Marginal note:Debt due Her Majesty

15 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.

Exemption from Fuel Consumption Standard

Marginal note:Applications for exemption from fuel consumption standard

• 16 (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).

National Fuel Consumption Marks

Marginal note:National fuel consumption marks

17 The words “Canada Motor Vehicle Fuel Consumption Standard” and “Normes de consommation de carburant des véhicules automobiles du Canada”, and any abbreviations thereof, shall be national trademarks and, except as provided in this Act, the exclusive property in and right to the use of those marks, referred to in sections 18, 19 and 20 as “national fuel consumption marks”, is hereby declared to be vested in Her Majesty in right of Canada.

Marginal note:Prohibition

18 No person shall use any national fuel consumption mark except in accordance with section 19 and the regulations thereunder.

Marginal note:Conditions for use of national fuel consumption marks

• 19 (1) No person shall

  • (a) apply to a motor vehicle of a prescribed class any national fuel consumption mark, or

  • (b) sell, offer for sale, have in possession for sale or deliver for sale a motor vehicle of a prescribed class to which has been applied any national fuel consumption mark

  unless

  • (c) a fuel consumption number in respect of that motor vehicle is registered pursuant to section 7,

  • (d) a label setting out the prescribed information relating to fuel consumption is affixed to the motor vehicle in the prescribed manner,

  • (e) the motor vehicle is, according to its manufacturer’s specifications and according to the prescribed rules, substantially similar to the motor vehicle or vehicles used to establish the registered fuel consumption number, and

  • (f) the national fuel consumption mark is in the prescribed form and is applied to the motor vehicle in the prescribed manner and at the prescribed place on the vehicle.

• Marginal note:Idem

  (2) It is a further condition of the use of any national fuel consumption mark that, where a national fuel consumption mark has been applied to a motor vehicle of a prescribed class, other than a motor vehicle exported from Canada, that motor vehicle shall be included in the aggregate set out in the report under section 9 and shall be taken into account for purposes of the calculation of the company average fuel consumption under section 10 and any assessment of a penalty under section 11.

Marginal note:Use of similar marks prohibited

20 No person shall use a mark or designation so closely resembling a national fuel consumption mark as to be likely to be mistaken therefor.

Records

Marginal note:Company to keep records

• 21 (1) A company shall maintain records in prescribed form containing the prescribed information relating to

  • (a) the procedure by which it established each registered fuel consumption number;

  • (b) details of the manufacture of each motor vehicle to which a registered fuel consumption number applies;

  • (c) applications made to the Minister for registration of each fuel consumption number;

  • (d) applications made to the Governor in Council for exemptions under section 16;

  • (e) interim statistics and forecasts of the information to be contained in the annual reports to the Minister under section 9; and

  • (f) the company’s annual reports to the Minister under section 9.

• Marginal note:Minister may examine records

  (2) When the Minister so requests, a company shall provide him forthwith with any information contained in the records described in subsection (1).

• Marginal note:Records to be kept five years

  (3) A company shall keep the records described in subsection (1) for a period of five years from the end of the year to which such records relate.

Test Vehicles

Marginal note:Minister may examine test vehicle or component

• 22 (1) The Minister may request a company to make available, at such place as the Minister requests, a motor vehicle or any component thereof that

  • (a) was used in tests conducted to establish a registered fuel consumption number, or

  • (b) is representative of a motor vehicle or component that was used in tests conducted to establish a registered fuel consumption number,

  and the company shall forthwith comply with the Minister’s request.

• Marginal note:Minister may dismantle and examine motor vehicle or component

  (2) Where a company makes available to the Minister a motor vehicle or a component thereof pursuant to subsection (1), the Minister may

  • (a) dismantle and examine the motor vehicle or the component; and

  • (b) conduct all necessary tests to verify the accuracy of tests conducted by the company to establish the fuel consumption number.

• Marginal note:Minister to return motor vehicle or component

  (3) A motor vehicle or component made available to the Minister under this section shall not be detained by the Minister after the expiration of thirty days after the completion of the examination and tests referred to in subsection (2) unless, before that time, proceedings have been instituted in respect of an offence under this Act, in which case the motor vehicle or component may be detained until the proceedings are finally concluded.