25. (1) A company may elect not to calculate an average NOx value for a fleet of a specific model year if every vehicle in that fleet conforms to a full useful life emission bin that has a NOx standard equal to or less than the applicable fleet average NOx standard for that model year that is set out in section 21, 22 or 23.
(2) For the purposes of section 26 and paragraphs 32(2)(b) and 37(1)(c), the average NOx emission value in respect of a fleet in a model year when a company makes an election under subsection (1) shall be deemed to be the fleet average NOx standard applicable to the fleet for which the election was made.
NOx Emission Credits
26. (1) For the purposes of subparagraph 162(1)(b)(i) of the Act, a company shall obtain NOx emission credits if the average NOx value in respect of a fleet of a specific model year is lower than the fleet average NOx standard for that model year and the company reports the credits under paragraph 32(2)(e).
(2) NOx emission credits, expressed in units of vehicle-grams per mile, shall be calculated using the following formula, rounding the result to the nearest whole number:
(A - B) x C
- is the fleet average NOx standard
- is the average NOx value in respect of the fleet, and
- is the total number of vehicles in the fleet.
(3) The NOx emission credits for a specific model year are credited on the last day of that model year.
27. NOx emission credits obtained in a specific model year shall be used by the company to offset any outstanding NOx emission deficit described in section 28, and any remaining credits may be used to offset a future deficit or may be transferred to another company.
NOx Emission Deficits
28. Subject to section 31, if a company’s average NOx value in respect of a fleet of a specific model year is higher than the fleet average NOx standard for that model year, the company shall calculate the negative number that is the value of a NOx emission deficit incurred in that model year using the formula set out in subsection 26(2).
- SOR/2006-268, s. 7.
29. (1) A company shall offset a NOx emission deficit no later than the date on which the company submits the end of model year report under section 32 for the third model year after the model year in which the deficit was incurred.
(2) Subject to subsection (3), a company may offset a NOx emission deficit with an equivalent number of NOx emission credits obtained in accordance with section 26 or obtained from another company.
(3) If any part of a NOx emission deficit for a specific model year is outstanding following the submission of the end of model year report for the second model year after the model year in which the deficit was incurred, the number of NOx emission credits required to offset that outstanding deficit in the next model year is 120% of the deficit.
30. (1) A company that purchases another company or that results from the merger of companies is responsible for offsetting, in accordance with section 29, any outstanding NOx emission deficits of the purchased or merged companies.
(2) In the case of a company that ceases to manufacture, import or sell light-duty vehicles, light-duty trucks and medium-duty passenger vehicles, the company shall, no later than three calendar years after submitting its last end of model year report, offset all NOx emission deficits that are outstanding at the time that it ceases those activities.
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