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

Marginal note:Allowance for certain innovative technologies

• 18.3 (1) Subject to subsections (3) and (3.1), a company may elect to calculate an allowance for the use, in its fleet of the 2014 model year and subsequent model years, of innovative technologies that result in a measurable CO₂ emission reduction and that are referred to in section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR, using the following formula:

  (Σ (A × B)) ÷ C

  where

  A

  is the allowance for each of those technologies that is used in the fleet, determined in accordance with section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, of the CFR and expressed in grams of CO₂ per mile;

  B

  is the number of passenger automobiles or light trucks in the fleet that are equipped with the innovative technology; and

  C

  is the total number of passenger automobiles or light trucks in the fleet.

• Marginal note:Alternative procedure

  (2) Instead of determining the allowance for each innovative technology that is used in the fleet in accordance with the description of A in subsection (1), a company may

  • (a) determine that allowance in accordance with the provisions for the 5-cycle methodology set out in section 1869(c) of Title 40, chapter I, subchapter C, part 86, of the CFR, expressed in grams of CO₂ per mile;

  • (b) use the credit value approved by the EPA for that technology under section 1869(e) of Title 40, chapter I, subchapter C, part 86, of the CFR, expressed in grams of CO₂ per mile, if the company provides the Minister with evidence of that approval in its end of model year report; or

  • (c) determine that allowance in accordance with an alternative procedure, if the company provides the Minister with evidence demonstrating that the alternative procedure allows for a more accurate determination of the emission reduction attributable to the innovative technology and that the allowance determined in accordance with that procedure more accurately represents that emission reduction.

• Marginal note:Maximum allowance — certain innovative technologies

  (3) If, for one of the 2014 to 2022 model years, the 2027 model year or any subsequent model year, the total of the allowances for innovative technologies that a company elects to determine, for a single vehicle, in accordance with the description of A in subsection (1) is greater than 10 grams of CO₂ per mile, the company must calculate, using the following formula, the allowance for the use, in its fleet of passenger automobiles or light trucks of that model year, of innovative technologies that result in a measurable CO₂ emission reduction and that are referred to in section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR:

  ( Σ (A × B)) ÷ C

  where

  A

  is the allowance for each innovative technology for which an allowance is determined for the purposes of subsection (4);

  B

  is the number of passenger automobiles or light trucks that are equipped with the innovative technology that is used for the purposes of subsection (4); and

  C

  is the total number of passenger automobiles or light trucks in the fleet.

• Marginal note:Maximum allowance for 2023 to 2026 model years — certain innovative technologies

  (3.1) If, for a model year of the 2023 to 2026 model years, the total of the allowances for innovative technologies that a company elects to determine, for a single vehicle, in accordance with the description of A in subsection (1) is greater than 15 grams of CO₂ per mile, the company must calculate, using the formula set out in subsection (3), the allowance for the use, in its fleet of passenger automobiles or light trucks of that model year, of innovative technologies that result in a measurable CO₂ emission reduction and that are referred to in section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR.

• Marginal note:Adjustment

  (4) For the purposes of subsections (3) and (3.1), the company must perform the following calculation and ensure that the result does not exceed 10 or 15 grams of CO₂ per mile, respectively:

  $\frac{(\Sigma \; (A\; \times {\mathrm{B}}_{\mathrm{a}})\; \times \; 195,264)\; +\; (\Sigma \; (A\; \times {\mathrm{B}}_{\mathrm{t}})\; \times \; 225,865)}{(\Sigma {\mathrm{C}}_{\mathrm{a}}\times \; 195,264)\; +\; (\Sigma {\mathrm{C}}_{\mathrm{t}}\times \; 225,865)}$

  where

  A

  is the allowance for each innovative technology that is used in the fleet and that the company decides to take into account, determined in accordance with subsection (1);

  B_a

  is the number of passenger automobiles in the fleet that are equipped with the innovative technology in question and that the company decides to take into account;

  B_t

  is the number of light trucks in the fleet that are equipped with the innovative technology in question and that the company decides to take into account;

  C_a

  is the total number of passenger automobiles in the fleet; and

  C_t

  is the total number of light trucks in the fleet.

• Marginal note:Allowance for innovative technologies

  (5) A company may elect to calculate, using the following formula, an allowance for the use, in its fleet of passenger automobiles or light trucks, of innovative technologies — other than those referred to in subsection (1) — that result in a measurable CO₂ emission reduction:

  (Σ (A × B)) ÷ C

  where

  A

  is the allowance for each innovative technology that is used in the fleet, determined in accordance with the provisions for the 5-cycle methodology set out in section 1869(c) of Title 40, chapter I, subchapter C, part 86, of the CFR and expressed in grams of CO₂ per mile;

  B

  is the number of passenger automobiles or light trucks in the fleet that are equipped with the innovative technology; and

  C

  is the total number of passenger automobiles or light trucks in the fleet.

• Marginal note:Alternative procedure to the 5-cycle methodology

  (6) If the 5-cycle methodology referred to in subsection (5) cannot adequately measure the emission reduction attributable to an innovative technology, a company may, instead of determining the allowance for the innovative technology in accordance with the description of A in subsection (5),

  • (a) use the credit value approved by the EPA for that technology under section 1869(e) of Title 40, chapter I, subchapter C, part 86, of the CFR, expressed in grams of CO₂ per mile, if the company provides the Minister with evidence of the EPA approval in its end of model year report; or

  • (b) determine that allowance in accordance with an alternative procedure, if the company provides the Minister with evidence demonstrating that the alternative procedure allows for a more accurate determination of the emission reduction attributable to the innovative technology and that the allowance determined in accordance with that procedure more accurately represent that emission reduction.

Marginal note:Allowance for certain full-size pick-up trucks

• 18.4 (1) Subject to subsections (2) to (4), a company may elect to calculate, using the following formula, a CO₂ allowance for the presence, in its fleet, of full-size pick-up trucks equipped with hybrid electric technologies and of full-size pick-up trucks that achieve carbon-related exhaust emission values below the applicable target value:

  $\frac{\mathrm{\Sigma \; (}{\mathrm{A}}_{\mathrm{H}}\times {\mathrm{B}}_{\mathrm{H}})\; +\; \Sigma \; ({\mathrm{A}}_{\mathrm{R}}\times {\mathrm{B}}_{\mathrm{R}})}{\mathrm{C}}$

  where

  A_H

  is the allowance for the use of hybrid electric technologies, namely,

  • (a) 10 grams of CO₂ per mile for mild hybrid electric technologies, or

  • (b) 20 grams of CO₂ per mile for strong hybrid electric technologies;

  B_H

  is the number of full-size pick-up trucks in the fleet that are equipped with mild hybrid electric technologies or that are equipped with strong hybrid electric technologies, as the case may be;

  A_R

  is the allowance for full-size pick-up trucks that achieve a certain carbon-related exhaust emission value, namely,

  • (a) 10 grams of CO₂ per mile for full-size pick-up trucks that achieve a carbon-related exhaust emission value that is less than or equal to their applicable target value, determined in accordance with subsection 17(7), multiplied by 0.85 and greater than their applicable target value multiplied by 0.8, or

  • (b) 20 grams of CO₂ per mile for full-size pick-up trucks that achieve a carbon-related exhaust emission value that is less than or equal to their applicable target value, determined in accordance with subsection 17(7), multiplied by 0.8;

  B_R

  is the number of full-size pick-up trucks in the fleet that achieve a carbon-related exhaust emission value that is within the range referred to in paragraph (a) of the description of A_R or that is less than or equal to their applicable target value, determined in accordance with subsection 17(7), multiplied by 0.8, as the case may be; and

  C

  is the total number of light trucks in the fleet.

• Marginal note:Allowance limitations — hybrid electric technologies

  (2) The allowance for the use of hybrid electric technologies referred to in paragraphs (a) and (b) of the description of A_H in subsection (1) may be calculated in respect of full-size pick-up trucks of a model year only if the percentage in the fleet of full-size pick-up trucks of that model year that are equipped with those technologies is equal to or greater than the percentage for that model year set out in section 1870(a)(1) or (2), depending on the technology used, of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR. The allowance referred to in paragraph (a) of the description of A_H may be calculated only for full-size pick-up trucks of the 2017 to 2021, 2023 and 2024 model years.

• Marginal note:Description of A_H

  (2.1) If the percentage in the fleet of full-size pick-up trucks of a model year that are equipped with mild hybrid electric technologies or strong hybrid electric technologies is less than the percentage set out for the model year in, depending on the technology used, section 1870(a)(1) or (2) of Title 40, chapter I, subchapter C, part 86, of the CFR, the allowance for the use of hybrid electric technologies referred to in the description of A_H in subsection (1) is 10 grams of CO₂ per mile for those trucks, if the percentage in the fleet of full-size pick-up trucks that are equipped with either mild hybrid electric technologies or strong hybrid electric technologies is equal to or greater than the percentage referred to in section 1870(a)(3) of Title 40, chapter I, subchapter C, part 86, of the CFR. The allowance may be calculated only for full-size pick-up trucks of the 2017 to 2021 model years.

• Marginal note:Allowance limitations — carbon-related exhaust emissions performance

  (3) The allowance for full-size pick-up trucks that achieve a carbon-related exhaust emission value referred to in paragraphs (a) and (b) of the description of A_R in subsection (1) may be calculated in respect of full-size pick-up trucks of a model year only if the percentage in the fleet of full-size pick-up trucks of that model year that achieve such a value is equal to or greater than the percentage for that model year set out in section 1870(b)(1) or (2), depending on the emission performance achieved, of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR. The allowance referred to in paragraph (a) of the description of A_R may be calculated only for full-size pick-up trucks of the 2017 to 2021, 2023 and 2024 model years.

• Marginal note:Single allowance

  (4) A company must not claim, in respect of the same pick-up truck, both the allowance referred to in the description of A_H in subsection (1) and the allowance referred to in the description of A_R in that subsection.

• Marginal note:Election

  (5) A company that elects to multiply the number of advanced technology vehicles in its fleet in accordance with subsection 18.1(4) must not use the allowance referred to in the description of A_R in subsection (1) for the same vehicle.

Marginal note:Interpretation of standards

• 19 (1) The carbon-related exhaust emission value and the fuel economy level that are calculated in accordance with section 18.1 must be calculated taking into account the applicable test procedures, fuels and calculation methods set out in subpart B of Title 40, chapter I, subchapter C, part 86 and in subpart B of Title 40, chapter I, subchapter Q, part 600, of the CFR and taking into account any clarifications or additional information issued by the EPA, if the company keeps a copy of those clarifications or that additional information.

• Marginal note:Representative data

  (2) When a company calculates the fleet average carbon-related exhaust emission value under section 18, the data and values used in the calculation must represent at least 90% of the total number of vehicles in the company’s fleet with respect to the configuration.

CO₂ Equivalent Emission Credit System

Marginal note:CO₂ equivalent emission credits

• 20 (1) For the purposes of subparagraph 162(1)(b)(i) of the Act, a company obtains CO₂ equivalent emission credits if the fleet average CO₂ equivalent emission value in respect of a fleet of passenger automobiles or a fleet of light trucks of a specific model year is lower than the fleet average CO₂ equivalent emission standard for that fleet and model year and the company reports the credits in its end of model year report.

• Marginal note:Deficits

  (2) A company incurs deficits if the fleet average CO₂ equivalent emission value in respect of a fleet of passenger automobiles or a fleet of light trucks of a specific model year is higher than the fleet average CO₂ equivalent emission standard for that fleet and model year.

• Marginal note:Calculation

  (3) Subject to subsections (3.1) to (3.4), a company must calculate, using the following formula, the credits or deficits for each of its fleets:

  ECD = ((A – B) × C × D) ÷ 1,000,000

  where

  ECD

  is the number of credits, if the result is positive, or the number of deficits, if the result is negative, expressed in megagrams of CO₂ equivalent;

  A

  is the fleet average CO₂ equivalent emission standard calculated in accordance with section 16 or 17, as the case may be, expressed in grams per mile;

  B

  is the fleet average CO₂ equivalent emission value calculated in accordance with section 18, expressed in grams per mile;

  C

  is the total number of passenger automobiles or light trucks in the fleet; and

  D

  is the assumed total mileage of the vehicles in question, namely,

  • (a) 195,264 miles for a fleet of passenger automobiles, or

  • (b) 225,865 miles for a fleet of light trucks.

• Marginal note:Alternative standard — nitrous oxide

  (3.1) For each test group in respect of which a company uses, for any given model year, an alternative standard for nitrous oxide (N₂O) under subsection 10(1) or 12(1), the company must use the following formula, expressing the result in megagrams of CO₂ equivalent, and add the sum of the results for each test group to the number of credits or deficits calculated in accordance with subsection (3) for the fleet to which the test group belongs:

  (298 × A × (B – C) × D) ÷ 1,000,000

  where

  A

  is the total number of passenger automobiles or light trucks in the test group;

  B

  is the exhaust emission standard for nitrous oxide (N₂O) set out in section 1818(f)(1) of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR, for the applicable model year, expressed in grams per mile;

  C

  is the alternative exhaust emission standard for nitrous oxide (N₂O) under subsection 10(1) or 12(1) to which the company certifies the test group, expressed in grams per mile; and

  D

  is the assumed total mileage of the vehicles in question, namely,

  • (a) 195,264 miles for a fleet of passenger automobiles, or

  • (b) 225,865 miles for a fleet of light trucks.

• Marginal note:Alternative standard — methane

  (3.2) For each test group in respect of which a company uses, for any given model year, an alternative standard for methane (CH₄) under subsection 10(1) or 12(1), the company must use the following formula, expressing the result in megagrams of CO₂ equivalent, and add the sum of the results for each test group to the number of credits or deficits calculated in accordance with subsection (3) for the fleet to which the test group belongs:

  (25 × A × (B – C) × D) ÷ 1,000,000

  where

  A

  is the total number of passenger automobiles or light trucks in the test group;

  B

  is the exhaust emission standard for methane (CH₄) set out in section 1818(f)(1) of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR, for the applicable model year, expressed in grams per mile;

  C

  is the alternative exhaust emission standard for methane (CH₄) under subsection 10(1) or 12(1) to which the company certifies the test group, expressed in grams per mile; and

  D

  is the assumed total mileage of the vehicles in question, namely,

  • (a) 195,264 miles for a fleet of passenger automobiles, or

  • (b) 225,865 miles for a fleet of light trucks.

• Marginal note:Calculation and recalculation for the 2017 to 2021 model years

  (3.3) A company may elect to calculate or recalculate its credits or deficits for any of its fleets of the 2017 to 2021 model years by making the election referred to in subsection 18.1(4) and by using the equation set out in subsection (3) but replacing the descriptions of A and C with the following:

  A

  is the adjusted fleet average CO₂ equivalent emission standard, expressed in grams per mile, calculated in accordance with section 17 but, for the purposes of the descriptions of B and C in subsection 17(3), in the case of advanced technology vehicles, natural gas vehicles or natural gas dual fuel vehicles, the number of vehicles is multiplied by the number set out in the table to subsection 18.1(4) in respect of that type of vehicle for the model year in question;

  C

  is determined by the formula

  N_v + Σ (N_cv × M)

  where

  N_v

  is the number of passenger automobiles or light trucks in the fleet, excluding advanced technology vehicles, natural gas vehicles and natural gas dual fuel vehicles,

  N_cv

  is the number of advanced technology vehicles, natural gas vehicles or natural gas dual fuel vehicles in the fleet, as the case may be, and

  M

  is the multiplier set out in the table to subsection 18.1(4) in respect of the type of vehicle for the model year in question.

• Marginal note:2022 to 2024 model years

  (3.4) For the 2022 to 2024 model years, if a company makes the election under subsection 18.1(4), the descriptions of A and C in subsection (3) are replaced by the descriptions of A and C in subsection (3.3).

• Marginal note:Date of credit or deficit

  (4) Subject to subsection (4.1), a company obtains credits or incurs deficits for a specific fleet on the day on which the company submits the end of model year report for the model year in question.

• Marginal note:Date of credit or deficit — 2017 to 2021 model years

  (4.1) A company obtains credits or reduces its deficits for a specific fleet of the 2017 to 2021 model years if the report includes the following information in respect of that fleet:

  • (a) the number of credits or deficits calculated in accordance with subsection (3) and, as applicable, the number of credits or deficits calculated in accordance with subsection (3.3), as well as the difference between the results; and

  • (b) a statement that the company has elected to recalculate credits or deficits in accordance with subsection (3.3) and an indication of the number of additional credits, or the reduction in the number of deficits, obtained as a result of that election as well as the number of vehicles in question.

• Marginal note:Time limit — credits for 2011 to 2016 model years

  (5) Credits obtained for a fleet of passenger automobiles or light trucks of the 2011 to 2016 model years may be used in respect of any fleet of passenger automobiles or light trucks of any model year after the model year in respect of which the credits were obtained, until the 2021 model year, after which the credits are no longer valid.

• Marginal note:Time limit — credits for 2017 and 2018 model years

  (6) Credits obtained for a fleet of passenger automobiles or light trucks of the 2017 and 2018 model years may be used in respect of any fleet of passenger automobiles or light trucks of a model year that is up to three model years before or up to six model years after the model year in respect of which the credits were obtained, after which the credits are no longer valid.

• Marginal note:Time limit — credits for 2019 model year and subsequent model years

  (7) Credits obtained for a fleet of passenger automobiles or light trucks of the 2019 model year and a subsequent model year may be used in respect of any fleet of passenger automobiles or light trucks of a model year that is up to three model years before or up to five model years after the model year in respect of which the credits were obtained, after which the credits are no longer valid.