Motor Vehicle Fuel Consumption Standards Act

An Act respecting motor vehicle fuel consumption standards Short title This Act may be cited as the Motor Vehicle Fuel Consumption Standards Act. Definitions In this Act, company means a person engaged in the business of manufacturing motor vehicles in Canada, engaged in the business of importing motor vehicles into Canada, or engaged in the business of selling to other persons, principally for the purpose of resale, motor vehicles obtained directly from a person described in paragraph (a) or his agent; (compagnie) company average fuel consumption means, in relation to a given company, the average fuel consumption of all motor vehicles of a prescribed class, calculated in accordance with section 10; (moyenne de consommation de carburant d’une compagnie) fuel means gasoline, diesel oil or any other combustible matter and includes any other prescribed form of energy; (carburant) fuel consumption means the quantity of fuel used by a motor vehicle when driven a given distance; (consommation de carburant) fuel consumption number means a number that represents the fuel consumption of a motor vehicle under controlled test conditions; (cote de consommation de carburant) fuel consumption standard means a standard prescribed pursuant to section 3; (norme de consommation de carburant) inspector means a person designated as an inspector pursuant to subsection 23(1); (inspecteur) Minister means the Minister of Transport; (ministre) motor vehicle means any vehicle designed to be driven or drawn on roads by any means other than exclusively by muscular power, and includes pedal cycles with auxiliary motors, minibikes and motorized snow vehicles, but does not include any vehicle designed for running exclusively on rails; (véhicule automobile) prescribed means prescribed by regulation; (Version anglaise seulement) year means a calendar year. (année) Fuel consumption standards The Governor in Council may, on the recommendation of the Minister and the Minister of Natural Resources, make regulations prescribing, for the purposes of section 11, a fuel consumption standard for any prescribed class of motor vehicle for any year. Publication of proposed regulations Subject to subsection (2), a copy of each regulation that the Governor in Council proposes to make under section 3 or 37 shall be published in the Canada Gazette at least ninety days before the proposed effective date thereof, and a reasonable opportunity within those ninety days shall be afforded to companies and other interested persons to make representations to the Minister with respect thereto. Exceptions Subsection (1) does not apply in respect of a proposed regulation that has previously been published pursuant to that subsection, whether or not it has been changed as a result of representations made pursuant to that subsection; or makes no substantive change to an existing regulation. Validity of fuel consumption standard A fuel consumption standard prescribed under section 3 for a particular year is not valid unless one of the following conditions is met: the fuel consumption standard has been published in the Canada Gazette before the end of the third year preceding that year; the fuel consumption standard is no more stringent than the fuel consumption standard applicable to the preceding year; or no objections by a company were received by the Minister during the ninety day period following publication of the proposed fuel consumption standard under subsection 4(1). Interprovincial trade and imports No company shall, for the purpose of sale, ship a motor vehicle of a prescribed class from the province in which it was manufactured to another province, or import into Canada a motor vehicle of a prescribed class unless a fuel consumption number in respect of that motor vehicle is registered pursuant to section 7, a label setting out the prescribed information relating to fuel consumption is affixed to the motor vehicle in the prescribed manner, and 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. Saving provision No contravention of subsection (1) shall be deemed to be committed by a company if the requirements of paragraphs (1)(c) to (e) are met before the motor vehicle leaves the possession of that company or its consignee. Application for registration Where a company has established a fuel consumption number in accordance with the prescribed procedure, it may submit an application to the Minister, in prescribed form and containing the prescribed information, requesting registration of that fuel consumption number in respect of the motor vehicles described in the application. Prescribed procedure must be used A company shall not submit an application under subsection (1) where the fuel consumption number was not established in accordance with the prescribed procedure. Minister to register fuel consumption number Where the Minister receives a duly completed application under subsection (1), he shall forthwith register the fuel consumption number set out in the application. Prohibition orders re advertising The Minister may, by order, prohibit the use by any company of a registered fuel consumption number, and fuel consumption information related to that registered fuel consumption number in advertising or other representations to the public relating to a motor vehicle if the Minister has reasonable grounds to believe that the motor vehicle is not, 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, that the application for registration of the fuel consumption number contained false or misleading information, or that the fuel consumption number was not established in accordance with the prescribed procedure, and that, as a result, the registered fuel consumption number does not correctly represent the fuel consumption of that motor vehicle. When order takes effect An order under subsection (1) takes effect sixty days after the order is made or on such later date as is fixed by the order. Revised fuel consumption number Where the Minister has made an order under subsection (1), the company that had obtained that registered fuel consumption number under section 7 may apply to the Minister for registration of a revised fuel consumption number, and subsections 7(1) and (2) apply to such an application. Minister’s discretion Where a company applies under subsection (3) for registration of a revised fuel consumption number, the Minister is not required to register that number if he has reasonable grounds to believe that it does not correctly represent the fuel consumption of the motor vehicle. Where order deemed not to be contravened In any prosecution under paragraph 30(1)(b) for contravention of an order made under subsection (1), a company shall be deemed not to have contravened the order if it establishes that it took all reasonable measures to withdraw the offending advertising or representations; and to substitute new advertising or representations, with similar distribution, using a registered revised fuel consumption number obtained pursuant to this section. Company’s annual report to Minister 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 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, the number of those motor vehicles that it has imported into Canada in that year for the purpose of sale in Canada, and 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. Year of manufacture or importation of motor vehicle 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. 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 the information contained in the annual report submitted by the company pursuant to section 9; and prescribed equivalence factors, in the case of motor vehicles that use fuels other than the prescribed reference gasoline. Company average fuel consumption not to exceed fuel consumption standard A company that ships motor vehicles of a prescribed class from the province in which they were manufactured to another province, imports into Canada motor vehicles of a prescribed class, applies to motor vehicles of a prescribed class any national fuel consumption mark, or 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. Penalty where company exceeds fuel consumption standard 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 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 the aggregate number of motor vehicles set out in the report submitted pursuant to section 9. Credits will reduce penalty The penalty calculated under subsection (2) shall be reduced by an amount equal to the product obtained by multiplying 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 the aggregate number of motor vehicles set out in the report submitted pursuant to section 9 in respect of any or all of the three years preceding the year for which the penalty is imposed, and the year immediately following the year for which the penalty is imposed. A credit usable only once An amount used under subsection (3) to reduce a penalty is not available to reduce a subsequent penalty. 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). Notice of assessment 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. Objection to assessment 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. Reconsideration of assessment On receipt of a notice of objection under subsection (2), the Minister shall forthwith reconsider the assessment objected to; confirm, cancel or vary the assessment; and serve a copy of his decision on the company. Considerations The Minister’s decision under subsection (3) to confirm, cancel or vary an assessment shall be based solely on the following criteria: whether the information on which the original assessment was based was correct; and whether this Act and the regulations were correctly applied to that information. Methods of service 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. Right of appeal 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. Institution of appeal 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. Disposal of appeal 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). 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. Applications for exemption from fuel consumption standard 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, 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 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 create substantial financial hardship for the company, or prevent the development of new kinds of motor vehicles. New fuel consumption standard may be imposed 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. Effect of exemption 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. Idem 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). Where some but not all of the motor vehicles manufactured or imported by a company are exempted under paragraph (1)(a) or (b), then the Minister shall calculate, in respect of that company, in the same manner as he would calculate the company average fuel consumption, a partial company average fuel consumption, based on the motor vehicles other than those exempted, and 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); 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 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, the Minister shall issue an assessment against the company imposing a penalty, subject to subsection (6), equal to the product obtained by multiplying 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 the aggregate number of motor vehicles to which the new fuel consumption standard applies, and 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). Maximum penalty 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 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. Prohibition No person shall use any national fuel consumption mark except in accordance with section 19 and the regulations thereunder. Conditions for use of national fuel consumption marks No person shall apply to a motor vehicle of a prescribed class any national fuel consumption mark, or 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 a label setting out the prescribed information relating to fuel consumption is affixed to the motor vehicle in the prescribed manner, 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 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. 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. Use of similar marks prohibited No person shall use a mark or designation so closely resembling a national fuel consumption mark as to be likely to be mistaken therefor. Company to keep records A company shall maintain records in prescribed form containing the prescribed information relating to the procedure by which it established each registered fuel consumption number; details of the manufacture of each motor vehicle to which a registered fuel consumption number applies; applications made to the Minister for registration of each fuel consumption number; applications made to the Governor in Council for exemptions under section 16; interim statistics and forecasts of the information to be contained in the annual reports to the Minister under section 9; and the company’s annual reports to the Minister under section 9. Minister may examine records When the Minister so requests, a company shall provide him forthwith with any information contained in the records described in subsection (1). Records to be kept five years 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. Minister may examine test vehicle or component The Minister may request a company to make available, at such place as the Minister requests, a motor vehicle or any component thereof that was used in tests conducted to establish a registered fuel consumption number, or 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. Minister may dismantle and examine motor vehicle or component Where a company makes available to the Minister a motor vehicle or a component thereof pursuant to subsection (1), the Minister may dismantle and examine the motor vehicle or the component; and conduct all necessary tests to verify the accuracy of tests conducted by the company to establish the fuel consumption number. Minister to return motor vehicle or component 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. Inspectors The Minister may designate as an inspector for the purposes of this Act any person who, in his opinion, is qualified to be so designated. Certificate to be produced The Minister shall furnish every inspector with a certificate of his designation as an inspector and on entering any place described in subsection 24(1) an inspector shall, if so required, produce the certificate to the person in charge of that place. Powers of inspectors An inspector may at any reasonable time enter any place in which he believes on reasonable grounds that there is a motor vehicle of a class for which a fuel consumption standard has been prescribed and that is owned by, or situated on the premises of a company or a consignee of imported motor vehicles, a component of a motor vehicle of a class for which a fuel consumption standard has been prescribed, or any record described in section 21, and may examine any motor vehicle, any component of a motor vehicle or any records found in that place, open and examine any package found therein that he believes on reasonable grounds contains any component of a motor vehicle or any records, and require any person to produce for inspection any books, reports, test data, control records, shipping bills, bills of lading or other documents or papers that he believes on reasonable grounds contain any information relevant to the administration or enforcement of this Act, and make copies thereof or extracts therefrom. Assistance to inspectors The owner or person in charge of a place entered by an inspector pursuant to subsection (1) and every person found therein shall give the inspector all reasonable assistance to enable the inspector to carry out his duties under this Act, and shall furnish the inspector with any information he may reasonably require with respect to the administration or enforcement of this Act. Obstruction of inspectors No person shall obstruct or hinder an inspector engaged in carrying out his duties under this Act. False statements No person shall knowingly make any false or misleading statement, either orally or in writing, to an inspector engaged in carrying out his duties under this Act. Disclosure is not warranty A disclosure relating to fuel consumption that is required to be made by a company under this Act in respect of tests conducted in accordance with this Act does not create an express or implied warranty by anyone that the fuel consumption established by those tests will be achieved under conditions of actual use. Privileged information Except as provided in this section, information obtained by the Minister under this Act or by the Minister of Natural Resources under subsection (2) is privileged and shall not knowingly be or be permitted to be communicated, disclosed or made available without the written consent of the person from whom it was obtained. Certain exceptions Information obtained under this Act may be communicated, disclosed or made available for the purposes of the administration or enforcement of this Act, legal proceedings related thereto or criminal proceedings under an Act of Parliament, and may be communicated, disclosed or made available to the Minister of Natural Resources. Minister may disclose certain information The Minister may disclose registered fuel consumption numbers or fuel consumption numbers derived therefrom; descriptions of the motor vehicles to which any number referred to in paragraph (a) relates; and the company average fuel consumption of any company. Disclosure of other information In addition to the right to disclose information described in subsection (3), the Minister may, where in his opinion it is in the public interest and will not unduly impair a company’s competitive position, disclose any information obtained under this Act. Notification and opportunity to make representations Where the Minister proposes to disclose information pursuant to subsection (4) in a form that identifies or permits the identification of the company to which the information relates, he shall so notify the company and afford it a reasonable opportunity to make representations respecting the effect that the disclosure of the information might have on the company’s competitive position. Evidentiary privilege Notwithstanding any other Act or law, no person who obtains information under this Act shall be required, in connection with any legal proceedings, other than proceedings relating to the administration or enforcement of this Act or criminal proceedings under an Act of Parliament, to give evidence relating to any information that is privileged under this Act or to produce any statement, document, writing or portion thereof containing any such information. Research and equipment The Minister may conduct such research, studies and evaluations as he deems necessary for the administration or enforcement of this Act; purchase or lease such equipment as he deems necessary in order to carry out tests under this Act; have tests related to this Act carried out by any person; and lease or loan equipment owned by Her Majesty to any person, for periods not exceeding twelve months, for testing or research related to this Act. Offences and punishment Every person who contravenes or fails to comply with any provision of this Act, other than subsection 11(1) or 27(1), or the regulations, contravenes an order made by the Minister under section 8, fails to comply with an order of the court under subsection 36(1), or knowingly makes a false or misleading statement in any report or application under this Act is guilty of an offence and liable on summary conviction, to a fine not exceeding one hundred thousand dollars or to imprisonment for a term not exceeding one year or to both, or on conviction on indictment, to a fine not exceeding one million dollars or to imprisonment for a term not exceeding five years or to both. Continuing offences Where an offence under subsection (1) is committed on more than one day or is continued for more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued. Offence by employee or agent In any prosecution for an offence under subsection 30(1), it is sufficient proof of the offence to establish that it was committed by an employee or agent of the accused whether or not the employee or agent is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without his knowledge or consent and that he exercised all due diligence to prevent its commission. Officers, etc., of corporations Where a corporation commits an offence under subsection 30(1), any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted. Contravention of subsection 27(1) Every person who contravenes subsection 27(1) is guilty of an offence punishable on summary conviction. Limitation period Any proceedings by way of summary conviction in respect of an offence under this Act may be instituted at any time within but not later than two years after the time when the subject-matter of the proceedings arose. Venue A complaint or information in respect of an offence under this Act may be heard, tried or determined by a court if the accused is resident or carrying on business within the territorial jurisdiction of that court, although the matter of the complaint or information did not arise in that territorial jurisdiction. Company to give notice of defects affecting fuel consumption Where a company has been convicted of an offence for contravening section 6 or subsection 19(1) on the basis of paragraph 6(1)(e) or 19(1)(e), as the case may be, and the convicting court is of the opinion that the dissimilarity was in the nature of a defect the result of which is that the registered fuel consumption number does not correctly represent the fuel consumption of that motor vehicle, the court may order the company to give notice forthwith, in the prescribed manner, containing a statement of the means to be taken to correct the defect at the company’s expense, to the person who has obtained that motor vehicle from the company for the purpose of sale or resale; the current owner of that motor vehicle as determined from any warranty by the manufacturer, distributor or importer of that motor vehicle with respect to the functioning of that motor vehicle that has, to the company’s knowledge, been given, sold or transferred to the current owner, or from provincial motor vehicle registration records; and the Minister. Company to correct defects at its own expense Where the court makes an order against a company under subsection (1), the company shall, forthwith after giving notice pursuant to that order, correct the defect at its own expense in respect of motor vehicles described in the order in accordance with its usual warranty procedures; or in such manner as the Minister may direct. Two year limitation A company’s obligation under subsection (2) does not extend to a motor vehicle presented to the company for correction of the defect more than two years after the company gave notice in respect of that motor vehicle pursuant to the court order made under subsection (1). Notice by publication in newspapers Where it is made to appear to the satisfaction of the Minister that the name of the current owner of a motor vehicle cannot reasonably be determined in the manner provided under paragraph (1)(b), the Minister may order notice to be given by publication in the prescribed form for a period of five consecutive days in two major daily newspapers in each of the six regions of Canada, namely, the Atlantic provinces, Quebec, Ontario, the Prairie provinces, British Columbia, and the three territories, or by an alternative medium for any period that the Minister deems expedient, and the notice is deemed to be notice given in the manner prescribed for the purpose of subsection (1); or the Minister may, in his discretion, order that the current owner need not be notified and that the obligation to notify the current owner of any defect under subsection (1) has been discharged. Quarterly reports to be submitted Every company that gives a notice mentioned in subsection (1) to the Minister shall submit to the Minister, in the prescribed form and manner, quarterly reports containing prescribed information relating to the defect. Unless the Minister otherwise directs, the quarterly reports referred to in subsection (5) shall be submitted to the Minister for a period of two years from the date of the notice mentioned in subsection (1). Regulations The Governor in Council may, on the recommendation of the Minister, make regulations prescribing anything that is by this Act to be prescribed; and respecting such other matters or things as are necessary to carry out the provisions of this Act. Annual report The Minister and the Minister of Natural Resources shall, as soon as possible after the end of each year, prepare and cause to be laid before Parliament a report on the administration and enforcement of this Act for that year. Coming into force This Act, except sections 3, 5 and 11 to 16, shall come into force on a day to be fixed by proclamation. Sections 3, 5 and 11 to 16 shall come into force on a day, not earlier than the day fixed under subsection (1), to be fixed by proclamation on the recommendation of the Minister and the Minister of Natural Resources. [Note: Act, except sections 3, 5 and 11 to 16, in force November 2, 2007, see SI/2007-109; sections 3, 5 and 11 to 16 in force November 2, 2007, see SI/2007-110.]