Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations (SOR/2010-201)

Marginal note:Deficits

• 30.15 (1) Subject to subsection (4), a company must use compliance units obtained in respect of its combined fleet of a given model year to offset a deficit incurred in respect of its combined fleet.

• Marginal note:Remaining compliance units

  (2) A company may bank all or some of any remaining compliance units to offset a future deficit or transfer all or some of them to another company.

• Marginal note:Offset

  (3) A company may offset a deficit with,

  • (a) in the case of a deficit incurred in respect of the 2026 and 2027 model years, a number of units equal to the deficit, consisting of

    • (i) compliance units obtained in accordance with section 30.14, early compliance units obtained in accordance with section 30.16 or charging station units created in accordance with section 30.21,

    • (ii) compliance units or charging station units that were transferred to it by another company, or

    • (iii) a combination of any of these units;

  • (b) in the case of a deficit incurred in respect of the 2028 to 2030 model years, a number of units equal to the deficit, consisting of

    • (i) compliance units obtained in accordance with section 30.14 or charging station units created in accordance with section 30.21,

    • (ii) compliance units or charging station units that were transferred to it by another company, or

    • (iii) a combination of any of these units;

  • (c) in the case of a deficit incurred in respect of the 2031 to 2034 model years, a number of compliance units equal to the deficit, consisting of compliance units obtained in accordance with section 30.14 or that were transferred to it by another company, or a combination of any of these units.

• Marginal note:Offsetting deficits — sum of early compliance units and charging station units

  (4) The sum of early compliance units and charging station units, including those charging station units that were transferred to it by another company, that a company uses to offset a deficit incurred in respect of the combined fleet of any of the 2026 to 2030 model years may not exceed, for the model year in question, the amount calculated using the following formula:

  0.1 × A × B

  where

  A

  is the ZEV requirement for the model year in question; and

  B

  is the total number of automobiles in the combined fleet.

• Marginal note:Offsetting deficits 2026 to 2034 model years — time limit

  (5) Any deficit incurred in respect of a combined fleet for a given model year must be offset no later than

  • (a) in the case of a deficit in respect of the 2026 to 2031 model years, the day on which the company submits the end of model year report of the third model year after the model year for which the company incurred the deficit; or

  • (b) in the case of a deficit in respect of the 2032 to 2034 model years, the day on which the company submits the end of model year report for the 2035 model year.

• Marginal note:No offset — 2035 model years and subsequent model years

  (6) No deficits incurred in respect of a combined fleet for the 2035 model year and subsequent model years can be offset.