On-Road Vehicle and Engine Emission Regulations

29 (1) A company shall offset a NOx emission deficit no later than the date on which the company submits the end of model year report under section 32 for the third model year after the model year in which the deficit was incurred.

(2) Subject to subsection (3), a company may offset a NOx emission deficit with an equivalent number of NOx emission credits obtained in accordance with section 26 or obtained from another company.

(3) If any part of a NOx emission deficit for a specific model year is outstanding following the submission of the end of model year report for the second model year after the model year in which the deficit was incurred, the number of NOx emission credits required to offset that outstanding deficit in the next model year is 120% of the deficit.