# Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations (SOR/2010-201)

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Regulations are current to 2022-01-12 and last amended on 2018-11-16. Previous Versions

## Greenhouse Gas Emission Standards (continued)

### Fleet Averaging Requirements (continued)

#### Calculation of Fleet Average CO2 Equivalent Emission Values (continued)

Marginal note:Allowance for reduction of air conditioning refrigerant leakage

•  (1) A company may elect to calculate, using the following formula, an allowance for the use, in its fleet of passenger automobiles or light trucks, of air conditioning systems that incorporate technologies designed to reduce air conditioning refrigerant leakage:

(Σ (A × B)) ÷ C

where

A
is the CO2 equivalent leakage reduction for each air conditioning system in the fleet that incorporates those technologies, determined in accordance with section 1867 of Title 40, chapter I, subchapter C, part 86, of the CFR and expressed in grams of CO2 equivalent per mile;
B
is the number of passenger automobiles or light trucks in the fleet that are equipped with the air conditioning system; and
C
is the total number of passenger automobiles or light trucks in the fleet.
• Marginal note:Allowance for improvement of air conditioning system efficiency

(2) A company may elect to calculate, using the following formula, an allowance for the use, in its fleet of passenger automobiles or light trucks, of air conditioning systems that incorporate technologies designed to reduce air-conditioning-related CO2 emissions by improving air conditioning system efficiency:

(Σ (A × B)) ÷ C

where

A
is the air conditioning efficiency allowance for each air conditioning system in the fleet that incorporates those technologies, determined in accordance with the provisions relating to credits in section 1868 of Title 40, chapter I, subchapter C, part 86, of the CFR and expressed in grams of CO2 per mile;
B
is the number of passenger automobiles or light trucks in the fleet that are equipped with the air conditioning system; and
C
is the total number of passenger automobiles or light trucks in the fleet.
• SOR/2014-207, s. 10
• SOR/2015-186, s. 57

Marginal note:Allowance for certain innovative technologies

•  (1) Subject to subsection (3), a company may elect to calculate, using the following formula, an allowance for the use, in its fleet of passenger automobiles or light trucks of the 2014 model year and subsequent model years, of innovative technologies that result in a measurable CO2 emission reduction and that are referred to in section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, of the CFR:

(Σ (A × B)) ÷ C

where

A
is the allowance for each of those technologies that is used in the fleet, determined in accordance with section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, of the CFR and expressed in grams of CO2 per mile;
B
is the number of passenger automobiles or light trucks in the fleet that are equipped with the innovative technology; and
C
is the total number of passenger automobiles or light trucks in the fleet.
• Marginal note:Alternative procedure

(2) Instead of determining the allowance for each innovative technology that is used in the fleet in accordance with the description of A in subsection (1), a company may

• (a) determine that allowance in accordance with the provisions for the 5-cycle methodology set out in section 1869(c) of Title 40, chapter I, subchapter C, part 86, of the CFR, expressed in grams of CO2 per mile;

• (b) use the credit value approved by the EPA for that technology under section 1869(e) of Title 40, chapter I, subchapter C, part 86, of the CFR, expressed in grams of CO2 per mile, if the company provides the Minister with evidence of that approval in its end of model year report; or

• (c) determine that allowance in accordance with an alternative procedure, if the company provides the Minister with evidence demonstrating that the alternative procedure allows for a more accurate determination of the emission reduction attributable to the innovative technology and that the allowance determined in accordance with that procedure more accurately represents that emission reduction.

• Marginal note:Maximum allowance — certain innovative technologies

(3) If, for a model year, the total of the allowances for innovative technologies that a company elects to determine, for a single vehicle, in accordance with the description of A in subsection (1) is greater than 10 grams of CO2 per mile, the company must calculate, using the following formula, the allowance for the use, in its fleet of passenger automobiles or light trucks of that model year, of innovative technologies that result in a measurable CO2 emission reduction and that are referred to in section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, of the CFR:

( Σ (A × B)) ÷ C

where

A
is the allowance for each innovative technology for which an allowance is determined for the purposes of subsection (4);
B
is the number of passenger automobiles or light trucks that are equipped with the innovative technology that is used for the purposes of subsection (4); and
C
is the total number of passenger automobiles or light trucks in the fleet.

(4) For the purposes of subsection (3), the company must perform the following calculation and ensure that the result does not exceed 10 grams of CO2 per mile:

$\frac{\left(\Sigma \left(A ×{B}_{a}\right) × 195,264\right) + \left(\Sigma \left(A ×{B}_{t}\right) × 225,865\right)}{\left(\Sigma {B}_{a}× 195,264\right) + \left(\Sigma {B}_{t}× 225,865\right)}$

where

A
is the allowance for each innovative technology that is used in the fleet and that the company decides to take into account, determined in accordance with subsection (1);
Ba
is the number of passenger automobiles in the fleet that are equipped with the innovative technology in question and that the company decides to take into account; and
Bt
is the number of light trucks in the fleet that are equipped with the innovative technology in question and that the company decides to take into account.
• Marginal note:Allowance for innovative technologies

(5) A company may elect to calculate, using the following formula, an allowance for the use, in its fleet of passenger automobiles or light trucks, of innovative technologies — other than those referred to in subsection (1) — that result in a measurable CO2 emission reduction:

(Σ (A × B)) ÷ C

where

A
is the allowance for each innovative technology that is used in the fleet, determined in accordance with the provisions for the 5-cycle methodology set out in section 1869(c) of Title 40, chapter I, subchapter C, part 86, of the CFR and expressed in grams of CO2 per mile;
B
is the number of passenger automobiles or light trucks in the fleet that are equipped with the innovative technology; and
C
is the total number of passenger automobiles or light trucks in the fleet.
• Marginal note:Alternative procedure to the 5-cycle methodology

(6) If the 5-cycle methodology referred to in subsection (5) cannot adequately measure the emission reduction attributable to an innovative technology, a company may, instead of determining the allowance for the innovative technology in accordance with the description of A in subsection (5),

• (a) use the credit value approved by the EPA for that technology under section 1869(e) of Title 40, chapter I, subchapter C, part 86, of the CFR, expressed in grams of CO2 per mile, if the company provides the Minister with evidence of the EPA approval in its end of model year report; or

• (b) determine that allowance in accordance with an alternative procedure, if the company provides the Minister with evidence demonstrating that the alternative procedure allows for a more accurate determination of the emission reduction attributable to the innovative technology and that the allowance determined in accordance with that procedure more accurately represent that emission reduction.

• SOR/2014-207, s. 10

Marginal note:Allowance for certain full-size pick-up trucks

•  (1) Subject to subsections (2) to (4), for fleets of light trucks of the 2017 to 2025 model years, a company may elect to calculate, using the following formula, a CO2 allowance for the presence, in its fleet, of full-size pick-up trucks equipped with hybrid electric technologies and of full-size pick-up trucks that achieve carbon-related exhaust emission values below the applicable target value:

$\frac{\Sigma \left({A}_{H}×{B}_{H}\right) + \Sigma \left({A}_{R}×{B}_{R}\right)}{C}$

where

AH
is the allowance for the use of hybrid electric technologies, namely,
• (a) 10 grams of CO2 per mile for mild hybrid electric technologies, or

• (b) 20 grams of CO2 per mile for strong hybrid electric technologies;

BH
is the number of full-size pick-up trucks in the fleet that are equipped with mild hybrid electric technologies or that are equipped with strong hybrid electric technologies, as the case may be;
AR
is the allowance for full-size pick-up trucks that achieve a certain carbon-related exhaust emission value, namely,
• (a) 10 grams of CO2 per mile for full-size pick-up trucks that achieve a carbon-related exhaust emission value that is less than or equal to their applicable target value, determined in accordance with subsection 17(7), multiplied by 0.85 and greater than their applicable target value multiplied by 0.8, or

• (b) 20 grams of CO2 per mile for full-size pick-up trucks that achieve a carbon-related exhaust emission value that is less than or equal to their applicable target value, determined in accordance with subsection 17(7), multiplied by 0.8;

BR
is the number of full-size pick-up trucks in the fleet that achieve a carbon-related exhaust emission value that is within the range referred to in paragraph (a) of the description of AR or that is less than or equal to their applicable target value, determined in accordance with subsection 17(7), multiplied by 0.8, as the case may be; and
C
is the total number of light trucks in the fleet.
• Marginal note:Allowance limitations — hybrid electric technologies

(2) The allowance for the use of hybrid electric technologies referred to in paragraphs (a) and (b) of the description of AH in subsection (1) may be calculated in respect of full-size pick-up trucks of a model year only if the percentage in the fleet of full-size pick-up trucks of that model year that are equipped with those technologies is equal to or greater than the percentage for that model year set out in section 1870(a)(1) or (2), depending on the technology used, of Title 40, chapter I, subchapter C, part 86, of the CFR. The allowance referred to in paragraph (a) of the description of AH may be calculated only for full-size pick-up trucks of the 2017 to 2021 model years.

• Marginal note:Description of AH

(2.1) If the percentage in the fleet of full-size pick-up trucks of a model year that are equipped with mild hybrid electric technologies or strong hybrid electric technologies is less than the percentage set out for the model year in, depending on the technology used, section 1870(a)(1) or (2) of Title 40, chapter I, subchapter C, part 86, of the CFR, the allowance for the use of hybrid electric technologies referred to in the description of AH in subsection (1) is 10 grams of CO2 per mile for those trucks, if the percentage in the fleet of full-size pick-up trucks that are equipped with either mild hybrid electric technologies or strong hybrid electric technologies is equal to or greater than the percentage referred to in section 1870(a)(3) of Title 40, chapter I, subchapter C, part 86, of the CFR. The allowance may be calculated only for full-size pick-up trucks of the 2017 to 2021 model years.

• Marginal note:Allowance limitations — carbon-related exhaust emissions performance

(3) The allowance for full-size pick-up trucks that achieve a carbon-related exhaust emission value referred to in paragraphs (a) and (b) of the description of AR in subsection (1) may be calculated in respect of full-size pick-up trucks of a model year only if the percentage in the fleet of full-size pick-up trucks of that model year that achieve such a value is equal to or greater than the percentage for that model year set out in section 1870(b)(1) or (2), depending on the emission performance achieved, of Title 40, chapter I, subchapter C, part 86, of the CFR. The allowance referred to in paragraph (a) of the description of AR may be calculated only for full-size pick-up trucks of the 2017 to 2021 model years.

• Marginal note:Single allowance

(4) A company must not claim, in respect of the same pick-up truck, both the allowance referred to in the description of AH in subsection (1) and the allowance referred to in the description of AR in that subsection.

• Marginal note:Election

(5) A company that elects to multiply the number of advanced technology vehicles in its fleet in accordance with subsection 18.1(4) must not use the allowance referred to in the description of AR in subsection (1) for the same vehicle.

• SOR/2014-207, s. 10
• SOR/2018-98, s. 74

Marginal note:Interpretation of standards

•  (1) The carbon-related exhaust emission value and the fuel economy level that are calculated in accordance with section 18.1 must be calculated taking into account the applicable test procedures, fuels and calculation methods set out in subpart B of Title 40, chapter I, subchapter C, part 86 and in subpart B of Title 40, chapter I, subchapter Q, part 600, of the CFR and taking into account any clarifications or additional information issued by the EPA, if the company keeps a copy of those clarifications or that additional information.

• Marginal note:Representative data

(2) When a company calculates the fleet average carbon-related exhaust emission value under section 18, the data and values used in the calculation must represent at least 90% of the total number of vehicles in the company’s fleet with respect to the configuration.

• SOR/2014-207, s. 11

#### CO2 Equivalent Emission Credit System

Marginal note:CO2 equivalent emission credits

•  (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:Time limit — credits for 2011 to 2016 model years

(5) Credits obtained for a fleet of passenger automobiles or light trucks of the 2011 to 2016 model years may be used in respect of any fleet of passenger automobiles or light trucks of any model year after the model year in respect of which the credits were obtained, until the 2021 model year, after which the credits are no longer valid.

• Marginal note:Time limit — credits for 2017 model year and subsequent model years

(6) Credits obtained for a fleet of passenger automobiles or light trucks of the 2017 model year or a subsequent model year may be used in respect of any fleet of passenger automobiles or light trucks of any model year up to five model years after the model year in respect of which the credits were obtained, after which the credits are no longer valid.

• SOR/2014-207, s. 12

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