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

Regulations are current to 2022-05-16 and last amended on 2018-11-16. Previous Versions

Greenhouse Gas Emission Standards (continued)

Fleet Averaging Requirements (continued)

Offsetting Deficits and Use of Credits

Marginal note:Deficits

  •  (1) Subject to subsection (5), a company must use credits obtained for a fleet of passenger automobiles or light trucks of a specific model year to offset any outstanding deficits incurred for any of its fleets.

  • Marginal note:Remaining credits

    (2) Subject to subsection (2.1), a company may bank any remaining credits to offset a future deficit or transfer the remaining credits to another company, except during the 2012 to 2015, and, if applicable, 2016, model years if the company elects to create a temporary optional fleet under section 24.

  • Marginal note:Remaining credits — transfer prohibited

    (2.1) A company that has made an election under section 28.1 and obtained credits in respect of its fleets of the 2017 to 2020 model years may not transfer any remaining credits to another company.

  • Marginal note:Offset

    (3) Subject to subsection (4), a company may offset a deficit with an equivalent number of credits obtained in accordance with section 20 or with an equivalent number of credits transferred from another company.

  • Marginal note:Adjustment

    (4) The number of credits obtained in respect of fleets of the 2011 model year that contain alcohol dual fuel vehicles or natural gas dual fuel vehicles and that are available to offset a deficit incurred in respect of a fleet of passenger automobiles or light trucks of the 2012 or subsequent model years must be adjusted with the assumption that all alcohol dual fuel vehicles and natural gas dual fuel vehicles operate only on gasoline or diesel fuel.

  • Marginal note:Offset — time limit

    (5) A company must offset a deficit incurred in respect of a model year no later than the day on which the company submits the end of model year report for vehicles of the third model year after the model year for which the company incurred the deficit.

  • SOR/2014-207, s. 13

Marginal note:Limit on use of 2011 model year credits

  •  (1) Despite subsection 21(3), the total number of credits obtained in respect of fleets of the 2011 model year that a company may use to offset a deficit incurred in respect of a fleet of passenger automobiles or light trucks of a given model year or a temporary optional fleet of passenger automobiles or light trucks of a given model year must not exceed the maximum number calculated using the following formula:

    (A – Bharmonic) × C × D1,000,000– X

    where

    A
    is the fleet average CO2 equivalent emission standard calculated in accordance with section 16 for the 2011 model year expressed in grams of CO2 equivalent per mile;
    Bharmonic
    is the fleet average CO2 equivalent emission value calculated in accordance with section 18, expressed in grams of CO2 equivalent per mile, except that the value of D is calculated as follows:

    8,887 × Σ  BNo ATVANo ATV + Σ AATV × BATVC

    where

    BNo ATV
    is the number of vehicles of the model type in question in the fleet, excluding advanced technology vehicles,
    ANo ATV
    is the fuel economy level for each model type, excluding advanced technology vehicles, expressed in miles per gallon, determined for the 2011 model year in accordance with section 510(c)(2) of Title 40, chapter I, part 600, subpart F, of the CFR, taking into account subsection 19(2),
    AATV
    is the carbon-related exhaust emission value for each model type of advanced technology vehicles, expressed in grams of CO2 equivalent per mile, determined for the 2011 model year in accordance with section 208 of Title 40, chapter I, part 600, subpart C, of the CFR, taking into account subsection 19(2),
    BATV
    is the number of advanced technology vehicles of the model type in question in the fleet, and
    C
    is the total number of passenger automobiles or light trucks in the fleet;
    C
    is the total number of passenger automobiles or light trucks in the fleet;
    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; and

    X
    is the number of credits obtained in respect of fleets of the 2011 model year that have been used by a company to offset a deficit incurred in respect of a fleet of passenger automobiles or light trucks or a temporary optional fleet of passenger automobiles or light trucks of the 2012 model year, expressed in megagrams of CO2 equivalent.
  • Marginal note:Advanced technology

    (2) For the purposes of description of BATV in subsection (1), a company may elect to multiply the number of advanced technology vehicles by 1.2, if the company made that election for the 2011 model year and reported that election in its end of model year report for the 2011 model year.

  • Marginal note:Representative data

    (3) When a company determines the value corresponding to the description of ANoATV and AATV in subsection (1), the data and values used in the calculation must represent at least 90% of the vehicles in question in the company’s fleet with respect to the configuration.

  • Marginal note:Number of vehicles in fleet

    (4) For the purposes of subsection (1), the company must include in its fleet of passenger automobiles or light trucks the same number of vehicles that it included in its fleets for the purposes of its end of model year report for the 2011 model year.

  • Marginal note:Negative result

    (5) For greater certainty, if the result of the calculation set out in subsection (1) in respect of fleets of the 2011 model year is negative, then the total number of credits that a company may use to offset a deficit is zero.

  • SOR/2014-207, s. 14

Marginal note:Purchased or merged companies

  •  (1) A company that purchases another company or that results from the merger of companies is responsible for offsetting any outstanding deficits of the purchased or merged companies.

  • Marginal note:Ceasing activities

    (2) If a company ceases to manufacture, import or sell passenger automobiles or light trucks, it must, before submitting its last end of model year report, offset all outstanding deficits for its fleets.

Obtention of Credits upon Payment to the Receiver General

Marginal note:Receiver General — 2011 model year

  •  (1) Upon payment to the Receiver General, a company may obtain the necessary number of credits to offset a deficit incurred for the 2011 model year at a rate of $20 per megagram of CO2 equivalent.

  • Marginal note:Payment date to Receiver General

    (2) To obtain the credits under subsection (1), a company must make the payment no later than the day preceding the earlier of:

    • (a) the date of submission of the end of model year report for model year 2014; and

    • (b) May 1, 2015.

  • Marginal note:Restriction

    (3) The credits obtained by a company under subsection (1) can only be used to offset a deficit incurred for the 2011 model year and cannot be transferred to another company.

Temporary Optional Fleets

Marginal note:Optional fleet

  •  (1) Subject to sections 27 and 28, a company may elect not to include for a given year a certain number of vehicles of its fleets in the calculation of the fleet average CO2 equivalent emission standard set out in section 17 and to create temporary optional fleets of passenger automobiles or light trucks if the following conditions are met:

    • (a) if the company manufactured or imported in total 750 or more, but less than 7,500, passenger automobiles and light trucks of the 2009 model year for sale in Canada, the combined total number of passenger automobiles and light trucks included in the temporary optional fleets must not exceed 30,000 of the model years 2012 to 2015 and 7,500 of the 2016 model year;

    • (b) if the company manufactured or imported in total 7,500 or more, but less than 60,000, passenger automobiles and light trucks of the 2009 model year for sale in Canada, the combined total number of passenger automobiles and light trucks included in the temporary optional fleets must not exceed 15,000 of the model years 2012 to 2015;

    • (c) subject to sections 25 and 26, the fleet average CO2 equivalent emission value for a company’s temporary optional fleet of passenger automobiles and temporary optional fleet of light trucks of a given model year must not exceed the optional fleet average CO2 equivalent emission standards for that model year, calculated in accordance with subsection (2); and

    • (d) the company must have manufactured or imported at least one passenger automobile or light truck of the 2009 model year for sale in Canada.

  • Marginal note:Optional fleet average standards

    (2) A company that creates a temporary optional fleet must calculate the optional fleet average CO2 equivalent emission standard in accordance with the following formula for each model year:

    (Σ (A × B)) ÷ C × 1.25

    where

    A
    is the CO2 equivalent emission target value for each group of passenger automobiles or light trucks included in the temporary optional fleet, determined in accordance with
    • (a) subsection 17(4) for the groups of passenger automobiles, or

    • (b) subsection 17(5) for the groups of light trucks;

    B
    is the number of passenger automobiles or light trucks in the group in question; and
    C
    is the total number of passenger automobiles or light trucks in the temporary optional fleet.
  • Marginal note:Optional fleet average values

    (3) A company that creates a temporary optional fleet must determine, for each model year, the optional fleet average CO2 equivalent emission value using the formula set out in section 18.

Marginal note:Application of section 20

  •  (1) A company that creates a temporary optional fleet of passenger automobiles or light trucks obtains credits or incurs deficits in respect of its temporary optional fleet in accordance with subsection 20(1) or (2), as the case may be.

  • Marginal note:Calculation

    (2) The company must calculate the credits or deficits for each of its temporary optional fleets using the equation set out in subsection 20(3).

  • Marginal note:Application of subsection 20(4)

    (3) Subsection 20(4) applies to credits obtained or deficits incurred in accordance with this section.

  • Marginal note:Validity — time limit

    (4) Credits obtained for a temporary optional fleet of passenger automobiles or light trucks of a given model year can only be used to offset a deficit incurred in respect of temporary optional fleets of passenger automobiles or light trucks of the following model years, after which the credits are no longer valid:

    • (a) 2012 to 2016, for a company set out in paragraph 24(1)(a); or

    • (b) 2012 to 2015, for a company set out in paragraph 24(1)(b).

Marginal note:Offsetting — application of sections 21 and 22

  •  (1) Subsections 21(1) and (5) and section 22 apply to credits obtained and deficits incurred for a temporary optional fleet.

  • Marginal note:Limit on use of credits

    (2) A company must not use credits obtained for a temporary optional fleet to offset a deficit incurred for a fleet to which the fleet average CO2 equivalent emission standard set out in section 17 applies.

  • Marginal note:Future deficit

    (3) A company may bank any remaining credits obtained for a model year for a temporary optional fleet to offset a future deficit incurred for another temporary optional fleet.

  • Marginal note:Use of credits

    (4) A company must use any remaining credits obtained for a fleet of passenger automobiles or light trucks to which the fleet average CO2 equivalent emission standard set out in section 17 applies to offset a deficit incurred for a temporary optional fleet.

Marginal note:Merger

  •  (1) If a company merges with one or more companies after September 23, 2010, the company that results from the merger may make an election under section 24 and report that election in its first end of model year report if the following conditions are met:

    • (a) the total number of passenger automobiles and light trucks of the 2009 model year set out in section 24 is equal to the total number of passenger automobiles and light trucks manufactured or imported for sale in Canada by the merged companies for the 2009 model year; and

    • (b) the conditions set out in subsection 24(1) are met taking into account the adjustments set out in subsection (2).

  • Marginal note:Adjustments

    (2) If the total calculated in accordance with subsection (1) is, as the case may be,

    • (a) equal to or greater than 750, but less than 7,500 for the 2009 model year, the combined total number of passenger automobiles and light trucks included in the temporary optional fleets by the merged companies, for the model years preceding the merger, must be subtracted from the applicable quantitative limits set out in paragraph 24(1)(a); or

    • (b) equal to or greater than 7,500, but less than 60,000 for the 2009 model year, the combined total number of passenger automobiles and light trucks included in the temporary optional fleets by the merged companies, for the model years preceding the merger, must be subtracted from the applicable quantitative limits set out in paragraph 24(1)(b).

  • SOR/2014-207, s. 25

Marginal note:Purchase

  •  (1) If a company purchases one or more companies after September 23, 2010, it must

    • (a) in the case where the company had made an election under section 24 before the purchase, recalculate its total number of passenger automobiles and light trucks manufactured or imported for sale in Canada for the 2009 model year to include that total for each of those purchased companies and report it in its first end of model year report after the purchase year; or

    • (b) in the case where the company makes an election under section 24 after the purchase, calculate the total number of passenger automobiles and light trucks manufactured or imported for sale in Canada for the 2009 model year to include that total for each of those purchased companies.

  • Marginal note:Adjustments

    (2) The company that purchases one or more companies and that is still eligible under section 24 must adjust, for the purposes of paragraph 24(1)(a) or (b) in accordance with the calculation set out in subsection (1), the combined total number of passenger automobiles and light trucks included as of that day in the temporary optional fleet by adding to it the combined total number of passenger automobiles and light trucks that have been included in the temporary optional fleets of the companies that it purchased.

  • SOR/2014-207, s. 25

Flexibility Measures For the 2017 to 2020 Model Years

Marginal note:CO2 emission target values

 A company that has elected to create a temporary optional fleet under subsection 24(1) and that manufactured or imported in total 750 or more, but less than 7,500, passenger automobiles and light trucks of the 2009 model year for sale in Canada may, when calculating the fleet average CO2 equivalent emission standard under section 17 for fleets of the 2017 to 2020 model years, elect, for a given model year, to replace the CO2 emission target value applicable to a given group of passenger automobiles or light trucks under section 17 with the following, if the company reports that election in its end of model year report:

  • (a) in the case of a fleet of passenger automobiles or light trucks of the 2017 or 2018 model year, the CO2 emission target value that would be applicable to that group under section 17 if the passenger automobiles or light trucks included in that group were of the 2016 model year;

  • (b) in the case of a fleet of passenger automobiles or light trucks of the 2019 model year, the CO2 emission target value that would be applicable to that group under section 17 if the passenger automobiles or light trucks included in that group were of the 2018 model year; or

  • (c) in the case of a fleet of passenger automobiles or light trucks of the 2020 model year, the CO2 emission target value that would be applicable to that group under section 17 if the passenger automobiles or light trucks included in that group were of the 2019 model year.

  • SOR/2014-207, s. 15
 
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