Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations

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.