Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations

Marginal note:Deficits

• 21 (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.