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

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Regulations are current to 2021-06-03 and last amended on 2018-11-16. Previous Versions

## Greenhouse Gas Emission Standards (continued)

### Fleet Averaging Requirements (continued)

#### Calculation of Fleet Average CO2 Equivalent Emission Values (continued)

Marginal note:Interpretation of standards

•  (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.

• SOR/2014-207, s. 11

#### CO2 Equivalent Emission Credit System

Marginal note:CO2 equivalent emission credits

•  (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) and (3.2), a company must calculate the credits or deficits for each of its fleets using the following equation:

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), 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) to which the company has elected to certify 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), 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) to which the company has elected to certify 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:Date of credit or deficit

(4) A company obtains credits and 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: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 model year and subsequent model years

(6) Credits obtained for a fleet of passenger automobiles or light trucks of the 2017 model year or a subsequent model year may be used in respect of any fleet of passenger automobiles or light trucks of any model year 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.

• SOR/2014-207, s. 12

#### 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.

(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:

$\frac{{\mathrm{\left(A – B}}_{\mathrm{harmonic}}\mathrm{\right) × C × D}}{\mathrm{1,000,000}}– X$

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:

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.

(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

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