Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (SOR/2013-24)

Averaging Sets

Marginal note:Calculation

42 The credits or deficits for each averaging set of heavy-duty vehicles or heavy-duty engines are calculated by adding the credits obtained and deficits incurred for all fleets and, if applicable, subfleets of that averaging set. The credits and deficits must be added together before rounding and the result must be rounded to the nearest megagram of CO₂.

Marginal note:Date of credits or deficits

43 A company obtains credits or incurs deficits for an averaging set of heavy-duty vehicles or heavy-duty engines on the day on which the company submits the end of model year report for that model year.

Marginal note:Use of credits — time limitations

• 44 (1) For the purposes of section 45, credits obtained by a company for an averaging set of heavy-duty vehicles or heavy-duty engines of a given model year may be used only in respect of the same averaging set of heavy-duty vehicles or heavy-duty engines of

  • (a) a model year that is up to three model years before the model year for which the credits are obtained; or

  • (b) a model year that is up to five model years after the model year for which the credits are obtained.

• Marginal note:Election — subsection 26(1.2)

  (2) Paragraph (1)(b) does not apply in the case of vocational vehicles in respect of which a company has made the election referred to in subsection 26(1.2).

• Marginal note:Exception — heavy-duty vehicles

  (3) Despite paragraph (1)(b), credits obtained by a company for an averaging set of vocational vehicles that are light heavy-duty vehicles or medium heavy-duty vehicles of the 2018 to 2021 model years may be used only in respect of the same averaging set of heavy-duty vehicles of any subsequent model year, ending with the 2027 model year.

• Marginal note:Exception — heavy-duty engines

  (4) Despite paragraph (1)(b), credits obtained by a company for an averaging set of medium heavy-duty engines or heavy heavy-duty engines of the 2018 to 2024 model years may be used only in respect of the same averaging set of heavy-duty engines of any subsequent model year, ending with the 2030 model year.

Marginal note:Deficits

• 45 (1) Subject to subsections (4) and (6), a company must use the credits obtained for an averaging set of heavy-duty vehicles or heavy-duty engines of a given model year to offset any outstanding deficits incurred for that averaging set.

• Marginal note:Remaining credits

  (2) Except in the case of an averaging set of vocational vehicles in respect of which a company has made the election referred to in subsection 26(1.2), a company may bank any remaining credits to offset a future deficit for that averaging set or it may transfer the remaining credits to another company.

• Marginal note:Credit multiplier

  (2.1) Credits obtained by a company for any of the averaging sets of the 2016 to 2020 model years referred to in paragraph (a) or (b) that are used to offset a deficit incurred for the same averaging set of the 2021 model year or a subsequent model year may be multiplied by

  • (a) 1.36, in the case of the averaging sets referred to in paragraph (b), (e) or (f) of the definition averaging set in subsection 1(1); and

  • (b) 1.25, in the case of the averaging set referred to in paragraph (a) of the definition averaging set in subsection 1(1).

• Marginal note:Offsetting

  (3) Subject to subsection (4), a company may offset a deficit that it incurs for an averaging set of heavy-duty vehicles or heavy-duty engines with an equivalent number of credits obtained in accordance with section 35 or transferred from another company for that averaging set.

• Marginal note:Transfer of credits

  (4) A company that obtains credits in accordance with sections 37 to 40 for an averaging set may transfer them to one of its other averaging sets to offset a deficit incurred in accordance with any of paragraphs 35(1)(a) to (d) if the following conditions are met:

  • (a) if the company obtained credits in accordance with section 37, they are used to offset any deficits for other vehicles in that averaging set before transferring any remaining credits to other averaging sets; and

  • (b) not more than 6 000 Mg of CO₂ emission credits per model year are transferred between any of the following groups of averaging sets:

    • (i) averaging sets of spark-ignition engines, light heavy-duty engines that are compression-ignition engines and light heavy-duty vehicles,

    • (ii) averaging sets of medium heavy-duty engines that are compression-ignition engines and medium heavy-duty vehicles, or

    • (iii) averaging sets of heavy heavy-duty engines that are compression-ignition engines and heavy heavy-duty vehicles.

• Marginal note:Exception

  (5) The credit transfer limit between the groups set out in paragraph (4)(b) does not apply when the credits are used between the averaging sets of the engines and vehicles referred to in each of the subparagraphs of that paragraph.

• Marginal note:Offsetting deficits — time limit

  (6) A company must offset a deficit incurred for an averaging set of heavy-duty vehicles or heavy-duty engines of a given model year no later than the day on which the company submits the end of model year report in accordance with section 48 for vehicles or engines of the third model year after the model year for which the company incurred the deficit.

Marginal note:Acquisition or merger

• 46 (1) A company that acquires another company or that results from a merger of companies must offset any outstanding deficit of the purchased or merged companies.

• Marginal note:Ceasing activities

  (2) If a company ceases to manufacture, import or sell heavy-duty vehicles or heavy-duty engines, it must offset all outstanding deficits for its averaging sets before submitting its last end of model year report.

Early Action Credits

Marginal note:Eligibility

• 47 (1) A company may obtain early action credits for an averaging set of heavy-duty vehicles or heavy-duty engines that are compression-ignition engines of the 2013 model year or for an averaging set of heavy-duty engines that are spark-ignition engines of the 2015 model year, if the number of credits calculated for that averaging set is greater than the number of deficits incurred for that model year and the company reports the credits

  • (a) in its 2014 end of model year report, in the case of heavy-duty vehicles and heavy-duty engines that are compression-ignition engines; or

  • (b) in its 2016 end of model year report, in the case of heavy-duty engines that are spark-ignition engines.

• Marginal note:Electric vehicles

  (2) A company may obtain early action credits by grouping its fleets of electric vehicles of the 2011 to 2013 model years into the applicable averaging sets and if the company reports the credits in its 2014 end of model year report.

• Marginal note:What to include

  (3) For the purpose of obtaining early action credits, a company must group

  • (a) into the applicable fleet, all its vocational vehicles, tractors, Class 2B and Class 3 heavy-duty vehicles equipped with a spark-ignition engine or Class 2B and Class 3 heavy-duty vehicles equipped with a compression-ignition engine, except in the case of electric vehicles; and

  • (b) into the applicable averaging set, all its heavy-duty engines.

• Marginal note:Date

  (4) A company obtains early action credits on the day on which its 2014 end of model year report is submitted in the case of heavy-duty vehicles and heavy-duty engines that are compression-ignition engines, and on the day on which its 2016 end of model year report is submitted in the case of heavy-duty engines that are spark-ignition engines.

• Marginal note:Calculation

  (5) Early action credits obtained or deficits incurred within each averaging set for the following fleets must be calculated in accordance with sections 35 to 41, as applicable, using the following standards:

  • (a) in the case of heavy-duty vehicles and heavy-duty engines that are compression-ignition engines of the 2013 model year, the emission standards applicable to the 2014 model year;

  • (b) in the case of electric vehicles of the 2011 to 2013 model years, the emission standards applicable to the 2014 model year; and

  • (c) in the case of heavy-duty engines that are spark-ignition engines of the 2015 model year, the emission standards applicable to the 2016 model year.

• Marginal note:Credit multiplier

  (6) Early action credits obtained for vocational vehicles, tractors or heavy-duty engines may be multiplied by 1.5 if the company does not use the additional credit multiplier referred to in subsection 38(4), 39(3) or 40(2) for the same vehicles or engines.

• Marginal note:Time limit

  (7) Early action credits may be used as follows:

  • (a) credits obtained for heavy-duty vehicles or heavy-duty engines that are compression-ignition engines of the 2013 model year may be used for the 2014 to 2018 model years;

  • (b) credits obtained for electric vehicles of the 2011 to 2013 model years may be used for the 2014 to 2018 model years; and

  • (c) credits obtained for heavy-duty engines that are spark-ignition engines of the 2015 model year may be used for the 2016 to 2020 model years.

• Marginal note:Use

  (8) The rules set out in sections 45 and 46 with respect to credits also apply to early action credits.

CO₂ Emission Credit System — Full-aero Box Van Trailers

Calculation of Credits and Deficits

Marginal note:Credits

• 47.1 (1) For the purposes of subparagraph 162(1)(b)(i) of the Act, a company obtains CO₂ emission credits if the CO₂ emissions for a fleet or subfleet, as the case may be, of full-aero box van trailers of a given model year are lower than the CO₂ emission standard applicable to the trailers of that fleet or subfleet, as the case may be, for that model year.

• Marginal note:Deficits

  (2) A company incurs deficits if the CO₂ emissions for a fleet or subfleet, as the case may be, of full-aero box van trailers of a given model year are higher than the CO₂ emission standard applicable to the trailers of that fleet or subfleet, as the case may be, for that model year.

• Marginal note:End of model year report

  (3) The company must report any credits obtained and any deficits incurred in its end of model year report in accordance with section 48.

Marginal note:Calculation

47.2 A company must calculate the credits or deficits for each of its fleets or subfleets, as the case may be, of full-aero box van trailers using the formula

Averaging Sets

Marginal note:Calculation

• 47.3 (1) The credits or deficits for each averaging set of full-aero box van trailers are calculated by adding the credits obtained and deficits incurred for all fleets and, if applicable, subfleets of that averaging set. The credits and deficits must be added together before rounding and the result must be rounded to the nearest megagram of CO₂.

• Marginal note:Date of credits or deficits

  (2) A company obtains credits or incurs deficits for an averaging set of full-aero box van trailers on the day on which the company submits the end of model year report for that model year.