On-Road Vehicle and Engine Emission Regulations (SOR/2003-2)

31. (1) Subject to subsections (2), (3) and (8), a company may elect to exclude the group of vehicles in a fleet that are covered by an EPA certificate and that are sold concurrently in Canada and the United States from the requirement to meet the standards set out in section 21, 22 or 23, as the case may be, and from the NO_x emission deficit calculations in respect of a fleet under section 28.

(2) For greater certainty and subject to subsection (3), a company shall include in the group referred to in subsection (1) all of the vehicles of a fleet that are covered by an EPA certificate and that are sold concurrently in Canada and the United States.

(3) A company shall not include in the group referred to in subsection (1) any vehicle that is covered by an EPA certificate and

• (a) in respect of which the total number of units sold in Canada exceeds the total number of units sold in the United States that are covered by the same EPA certificate; and

• (b) that conforms to a full useful life emission bin having a NOx standard that is greater than the applicable fleet average NOx standard for the model year in respect of which the election is made.

(4) Subject to subsection (5), if a company makes an election under subsection (1), it shall calculate an average NOx value in accordance with section 24, with the necessary modifications, in respect of

• (a) the group that is subject to the election; and

• (b) the vehicles in the fleet that are not part of the group referred to in paragraph (a), if any.

(5) A company may elect not to make the calculations referred to in subsection (4) for a group of vehicles described in paragraph (4)(a) or (b) if every vehicle in the group conforms to a full useful life emission bin having a NOx standard equal to or less than the fleet average NOx standard that would otherwise apply under section 21, 22 or 23, as the case may be.

(6) If a company makes an election under subsection (5) the average NOx emission value for the group of vehicles of a fleet for which the election was made shall be the applicable fleet average NOx standard.

(7) If a company makes the election referred to in subsection (1) and the average NOx value for the group that is subject to the election, calculated under paragraph (4)(a) exceeds the fleet average NOx standard that would otherwise apply under section 21, 22 or 23, as the case may be, the company shall

• (a) forfeit any NOx emission credits obtained in previous model years; and

• (b) not obtain any NOx emission credits in the model year in respect of which the election was made.

(8) A company may not make the election referred to in subsection (1) in respect of a model year in which it has transferred NOx emission credits to another company if the average NOx value calculated under paragraph (4)(a) for the group that is subject to the election exceeds the fleet average NOx standard that would otherwise apply under section 21, 22 or 23, as the case may be.

32. (1) A company shall submit to the Minister an end of model year report, signed by a person who is authorized to act on behalf of the company, no later than May 1 after the end of each model year.

(2) The end of model year report shall contain the following information for each of its fleets described in sections 21 to 23:

• (a) the applicable fleet average NOx standard;

• (b) the average NOx value achieved under section 24 or 25;

• (c) for each model of vehicle, the values used in calculating the average NOx value achieved in respect of the fleet;

• (d) the total number of vehicles in the fleet;

• (e) the NOx emission credits calculated in accordance with subsection 26(2) in that model year, if any;

• (f) the NOx emission deficits incurred in that model year, if any; and

• (g) the balance of credits or deficits at the end of the model year.

(3) The end of model year report must also contain the following information on each credit transfer to or from the company since the submission of the previous end of model year report:

• (a) the name, street address and, if different, the mailing address of the company that transferred the credits and the model year in which that company obtained those credits;

• (b) the name, street address and, if different, the mailing address of the company that received the credits;

• (c) the date of the transfer; and

• (d) the quantity of credits transferred.

(4) The company shall include in the end of model year report, if applicable, for any of its fleets described in sections 21 to 23, a statement that

• (a) it has made the election under section 25;

• (b) it has made the election under subsection 31(1); and

• (c) it has made an election under subsection 31(5) in respect of a group of vehicles described in paragraph 31(4)(a) or (b).

(5) A company that makes an election under subsection 31(1) in respect of a group of vehicles in a fleet shall include in the end of model year report

• (a) the average NOx values, determined under subsection 31(4) or (6) as the case may be;

• (b) the values used in calculating the fleet average NOx values referred to in paragraph (a); and

• (c) information demonstrating compliance with subsection 31(3).