Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations

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) 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:Validity — time limit

  (5) Credits obtained for a fleet of passenger automobiles or light trucks of a specific model year can be used in respect of any fleet of passenger automobiles or light trucks of five model years after the model year in respect of which the credits were obtained, after which the credits are no longer valid.