The Government of Quebec recently announced its intention to expand the definition of eligible vehicle types under the province's zero-emission vehicle (ZEV) standard to include hybrid electric vehicles (HEVs) in addition to the previously included battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).1 The updated regulations introduce new credit incentives for automakers and dealerships that prioritize the sale of ZEVs.
Context:
In early 2018, the Quebec government enacted legislation aimed at reducing greenhouse gases and other pollutants emitted by motor vehicles.2 As part of this mandate, Quebec set a target of reaching 100% ZEV sales by 2035 (see here for McMillan's previous publications on the matter).3 To reach this goal, the government has adopted a two-pronged strategy: (1) subsidizing consumer purchases of ZEVs, and (2) implementing a credit-based compliance system for automakers.4 Despite these efforts, ZEV sales have recently declined, driven by a suspension of both provincial and federal incentive programs and broader economic uncertainty shaped by the ongoing tariff disputes.5
Changes include Hybrid Electric Vehicle in program eligibility
The most notable change is the expanded inclusion of HEVs in the definition of ZEVs. The Quebec government's new definition is broad and includes HEVs in the definition of a "low-emission vehicle" (LEV), being a vehicle propelled by a combination of electric propulsion and internal combustion engine.6 Now, all LEVs, including HEVs, are entitled to a 0.5 credit7 while BEVs and PHEVs with ranges of 80+ kilometres will receive a full credit instead of the previous half a credit.8 The lower range PHEVs and gasoline powered HEVs will earn from half a credit to no credits at all.9 The provincial government "invites" the federal government to adjust to this "new economic situation" and review its objectives to keep on track for this trajectory.10
Implementation and timing
The implementation of this change for HEVs starts with vehicles registered as of September 1, 2025 and onwards while the change for PEVs and BEVs applies to model years 2025 and onwards.11
Footnotes
5 Gouvernement du Québec, Norme véhicules zéro émission – Québec s'adapte aux nouvelles réalités du marché et invite le fédéral à en faire autant.
7 Regulation respecting the application of the Act to increase the number of zero-emission motor vehicles in Québec in order to reduce greenhouse gas and other pollutant emissions, CQLR c A-33.02, r 1, at article 27.1.
8 Regulation respecting the application of the Act to increase the number of zero-emission motor vehicles in Québec in order to reduce greenhouse gas and other pollutant emissions, CQLR c A-33.02, r 1, at article 29.2 and Gouvernement du Québec, Norme véhicules zéro émission – Québec s'adapte aux nouvelles réalités du marché et invite le fédéral à en faire autant.
9 Regulation respecting the application of the Act to increase the number of zero-emission motor vehicles in Québec in order to reduce greenhouse gas and other pollutant emissions, CQLR c A-33.02, r 1, at article 29.2 and Gouvernement du Québec, Norme véhicules zéro émission – Québec s'adapte aux nouvelles réalités du marché et invite le fédéral à en faire autant.
10 Gouvernement du Québec, Norme véhicules zéro émission – Québec s'adapte aux nouvelles réalités du marché et invite le fédéral à en faire autant.
11 Regulation respecting the application of the Act to increase the number of zero-emission motor vehicles in Québec in order to reduce greenhouse gas and other pollutant emissions, CQLR c A-33.02, r 1, at articles 27.1 and 29.2.
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
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