Regulatory Harmonization Subcommitee:
Progress Report

May 30, 2003

Overview

• Regulatory harmonization was identified as one of the key pillars of a new strategic automotive policy for Canada.
• The CAPC Subcommittee on Regulatory Harmonization developed a Vision for Regulatory Harmonization and identified immediate harmonization priorities.

Vision for Regulatory Harmonization

For Products: A product environment that respects self-certification to one set of regulatory requirements across North America and in the longer term, globally, and satisfies societal needs efficiently.

Within Canada: One set of globally competitive manufacturing and vehicle in-use requirements across all jurisdictions in Canada.

Recommendation: Develop a formal harmonization policy with clear statements that is recognized across government departments with responsibility for the automotive sector.

Immediate Harmonization Priorities & Recommendations

1. Harmonize Canadian Motor Vehicle Safety Standard 208 (CMVSS 208) for occupant protection with the belted requirements of US Federal Motor Vehicle Safety Standard 208 (FMVSS 208).
2. Fully accept self-certification.
3. Maintain fuel economy standards that are fully consistent between Canada and the US.
4. From a manufacturing and facilities perspective, harmonize emission inventories and reporting regulations for Ontario ONAir Regulation 127 and the federal National Pollutants Release Inventory (NPRI).

Status Report on Subcommittee Actions to Date

• A background paper on Regulatory Harmonization has been completed.
• Issues papers on the immediate priorities have been completed.
• The issue of harmonization of fuel economy standards between Canada and the US was added to the mandate of the Regulatory Harmonization Subcommittee.
• Since the December 2002 CAPC meeting, three meetings have been held to address immediate harmonization priorities and a number of action items were identified and acted upon.

CMVSS 208

• Industry provided Industry Canada with a detailed overview of the issue of CMVSS 208 harmonization.
• The Regulatory Harmonization Subcommittee formally requested data from Transport Canada that supports the need for a different standard for chest deflection in Canada than in the US.
• No Canadian data to support a unique Canadian need for different chest deflection has been provided.
• Transport Canada acknowledges that no Canadian field data is available that would specifically support the intended unique Canadian chest protection requirements - i.e. there is no demonstrable need for different Canadian chest protection requirements.
• Transport Canada has released a draft report of Benefits and Costs. Industry has serious concerns with this analysis, and these concerns will be communicated to Transport Canada. A workshop to discuss the Benefits and Costs report has been scheduled for June 25, 2003.
• Industry has raised numerous concerns with Transport Canada with respect to Transport Canada's intended direction that have not been addressed.

Self-Certification

• Discussions between industry and Transport Canada are ongoing. Progress towards a resolution continues to be slow.

Fuel Economy

• An issue paper has been developed that outlines the need to maintain common fuel economy targets between Canada and the US.

Harmonization of Ontario Emissions Reporting with Federal NPRI

• A smaller working group has been established with MEOI to better understand industry issues.
• Harmonization of both substance thresholds and reporting requirements will be addressed.
• 38 differences have been identified between ONAir 127 and NPRI.

Next Steps

Process Required to Act on Recommendations

• A clear and efficient process needs to be established to deal with recommendations that are developed by the Regulatory Harmonization Subcommittee, particularly for recommendations that impact a number of departments.

Commitment to Develop a Vision for Regulatory Harmonization

• Progress towards resolution of immediate priorities would benefit from a vision on regulatory harmonization that spans across all departments that deal with automotive issues.
• Governments within Canada should adopt a policy of harmonization of standards and regulations, unless compelling Canadian evidence exists that a different standard in Canada is necessary.

Background Information: Immediate Harmonization Priorities, Recommendations and Rationale

CMVSS 208

• Harmonize the requirements of CMVSS 208 with the belted requirements of US regulation FMVSS 208.

  Rationale:

• To date Transport Canada has not produced Canadian accident data that supports the need for a different standard in Canada than in the US.
• US FMVSS 208 requirements for belted occupants after extensive analysis by the US National Highway Traffic Safety Administration of medical, accident and scientific data, which included participation from medical experts, automotive safety experts and Transport Canada. US FMVSS 208 represents a major step forward for in occupant protection that will benefit all vehicle occupants, including small statured females and out-of-position occupants.
• Since Transport Canada is being asked to harmonize with US FMVSS 208 regulations for belted occupants, the different level of seat belt usage between Canada and the US (90% vs 75%) is irrelevant.

Self-Certification

• Transport Canada should formally recognize self-certification consistent with the interpretations of the US National Highway Safety Traffic Administration (NHTSA) and many years of successful application in Canada.

Rationale:

• Transport Canada should encourage manufacturers to use engineering judgment and advanced technologies such as computer simulation to certify vehicles in order to bring safety improvements to the road more quickly, efficiently and to higher performance levels than would otherwise be possible.

Fuel Efficiency

• Maintain consistent fuel economy standards between Canada and the US. Ensure Canadian CAFC remains a voluntary program with targets that are fully harmonized with US CAFÉ.

Rationale:

• The Canadian market is too small to support unique-to-Canada vehicles, particularly on low volume vehicle lines such as advanced technology or alternative fuel technology vehicles.
• Canadians presently enjoy vehicles meeting the most stringent emission standards and most comprehensive vehicle standards in the world at some of the lowest vehicle prices due to the economies of scale enabled by a single Canada/US market.
• There are no technological reasons for unique-to-Canada standards.

Manufacturing Emissions Monitoring and Reporting

• Ontario ONAir Regulation 127 should be fully harmonized through single window reporting with the federal government's National Pollutants Release Inventory. Substances and thresholds should also be harmonized.

Rationale:

• Emissions reporting requirements are administratively burdensome and require a large dedication of engineering resources that could otherwise be utilized in activities to add value by improving facility or production processes.
• Tracking and reporting emissions does not in any way impact actual emissions levels.