On-Road Vehicle and Engine Emission Regulations (SOR/2003-2)

• 29.1 (1) A company shall offset a NMOG + NO_X, cold NMHC or evaporative emission deficit no later than the date on which the company submits the end of model year report for the third model year after the model year in which the deficit was incurred.

• (2) A company may offset a NMOG + NO_X, cold NMHC or evaporative emission deficit with an equivalent number of NMOG + NO_X, cold NMHC or evaporative emission credits, as the case may be, obtained in accordance with section 26.1, 26.2 or 26.3 or obtained from another company.

• 30 (1) A company that acquires another company or that results from a merger of companies is responsible for offsetting, in accordance with section 29 or 29.1, any emission deficits of the acquired company or merged companies.

• (2) In the case of a company that ceases to manufacture, import or sell light-duty vehicles, light-duty trucks, medium-duty passenger vehicles, Class 2B vehicles or Class 3 vehicles, the company shall, no later than three calendar years after submitting its last end of model year report, offset all emission deficits that are outstanding at the time that it ceases those activities.

Election for Vehicles Covered by an EPA Certificate

• 31 (1) Subject to subsection (8), a company may elect to exclude the group of vehicles in a fleet that are covered by an EPA certificate and that are sold concurrently in Canada and the United States from the requirement to meet the standards set out in section 21, 22 or 23, as the case may be, and from the NO_X emission deficit calculations in respect of a fleet under section 28.

• (2) Subject to subsection (3), a company shall include in the group referred to in subsection (1) all of the vehicles of the fleet that are covered by an EPA certificate and that are sold concurrently in Canada and the United States.

• (3) A company shall not include in the group referred to in subsection (1) any vehicle that is covered by an EPA certificate and

  • (a) in respect of which the total number of units sold in Canada exceeds the total number of units sold in the United States that are covered by the same EPA certificate; and

  • (b) that conforms to a full useful life emission bin having a NOx standard that is greater than the applicable fleet average NOx standard for the model year in respect of which the election is made.

• (4) Subject to subsection (5), if a company makes an election under subsection (1), it shall calculate an average NOx value in accordance with section 24, with the necessary modifications, in respect of

  • (a) the group that is subject to the election; and

  • (b) the vehicles in the fleet that are not part of the group referred to in paragraph (a), if any.

• (5) A company may elect not to make the calculations referred to in subsection (4) for a group of vehicles described in paragraph (4)(a) or (b) if every vehicle in the group conforms to a full useful life emission bin having a NOx standard equal to or less than the fleet average NOx standard that would otherwise apply under section 21, 22 or 23, as the case may be.

• (6) If a company makes an election under subsection (5) the average NOx emission value for the group of vehicles of a fleet for which the election was made shall be the applicable fleet average NOx standard.

• (7) If a company makes the election referred to in subsection (1) and the average NOx value for the group that is subject to the election, calculated under paragraph (4)(a) exceeds the fleet average NOx standard that would otherwise apply under section 21, 22 or 23, as the case may be, the company shall

  • (a) forfeit any NOx emission credits obtained in previous model years; and

  • (b) not obtain any NOx emission credits in the model year in respect of which the election was made.

• (8) A company shall not make the election referred to in subsection (1) in respect of a model year in which it has transferred NO_X emission credits to another company if the average NO_X value calculated under paragraph (4)(a) for the group that is subject to the election exceeds the fleet average NO_X standard that would otherwise apply under section 21, 22 or 23, as the case may be.

• 31.1 (1) Subject to subsection (8), a company may elect to exclude the group of vehicles in a fleet that are covered by an EPA certificate and that are sold concurrently in Canada and the United States from the requirement to meet the standards set out in sections 24.1 to 24.4, 24.6, 24.7 and 24.10, as applicable, and from the NMOG + NO_X, cold NMHC or evaporative emission deficit calculations, as the case may be, in respect of a fleet under section 28.

• (2) Subject to subsection (3), a company shall include in the group referred to in subsection (1) all of the vehicles of a fleet that are covered by an EPA certificate and that are sold concurrently in Canada and the United States.

• (3) A company shall not include in the group referred to in subsection (1) any vehicle that is covered by an EPA certificate and

  • (a) in respect of which the total number of units sold in Canada exceeds the total number of units sold in the United States that are covered by the same EPA certificate; and

  • (b) that conforms, as applicable, to

    • (i) a full useful life emission bin having a NMOG + NO_X standard that is greater than the applicable fleet average NMOG + NO_X standard for the model year in respect of which the election is made, or

    • (ii) a family emission limit for cold NMHC or evaporative emissions, as the case may be, that is greater than the applicable fleet average cold NMHC or evaporative emission standard for the model year in respect of which the election is made.

• (4) Subject to subsection (5), if a company makes an election under subsection (1), it shall calculate an average NMOG + NO_X, cold NMHC or evaporative emission value in accordance with section 24.5, 24.8 or 24.11, as the case may be, with the necessary modifications, in respect of

  • (a) the group that is subject to the election; and

  • (b) the vehicles in the fleet that are not part of the group referred to in paragraph (a), if any.

• (5) A company may elect not to make the calculations referred to in subsection (4) for a group of vehicles described in paragraph (4)(a) or (b) if every vehicle in the group conforms to

  • (a) a full useful life emission bin having a NMOG + NO_X standard that is equal to or less than the fleet average NMOG + NO_X standard that would otherwise apply under sections 24.1 to 24.4; or

  • (b) a family emission limit for cold NMHC or evaporative emissions, as the case may be, that is equal to or less than the fleet average cold NMHC or evaporative emission standard that would otherwise apply under section 24.6, 24.7 or 24.10.

• (6) If a company makes an election under subsection (5), the average NMOG + NO_X, cold NMHC or evaporative emission value, as the case may be, for the group of vehicles of a fleet for which the election was made shall be the applicable fleet average NMOG + NO_X, cold NMHC or evaporative emission standard.

• (7) If a company makes the election referred to in subsection (1) and the average NMOG + NO_X, cold NMHC or evaporative emission value, as the case may be, for the group that is subject to the election, calculated under paragraph (4)(a), exceeds the fleet average NMOG + NO_X, cold NMHC or evaporative emission standard that would otherwise apply under section 24.1, 24.2, 24.3, 24.4, 24.6, 24.7 or 24.10, the company shall

  • (a) forfeit any NMOG + NO_X, cold NMHC or evaporative emission credits, as the case may be, obtained for previous model years; and

  • (b) not obtain any NMOG + NO_X, cold NMHC or evaporative emission credits, as the case may be, for the model year in respect of which the election was made.

• (8) A company shall not make an election referred to in subsection (1) in respect of any of the following emission standards for a model year in respect of which it has transferred emission credits to another company if

  • (a) in the case of NMOG + NO_X standards, the average NMOG + NO_X value, calculated under paragraph (4)(a) for the group that is subject to the election, exceeds the fleet average NMOG + NO_X standard that would otherwise apply under section 24.1, 24.2, 24.3 or 24.4;

  • (b) in the case of cold NMHC standards, the average cold NMHC value, calculated under paragraph (4)(a) for the group that is subject to the election, exceeds the fleet average cold NMHC standard that would otherwise apply under section 24.6 or 24.7; or

  • (c) in the case of evaporative emissions standards, the average evaporative emission value, calculated under paragraph (4)(a) for the group that is subject to the election, exceeds the fleet average evaporative emission standard that would otherwise apply under section 24.10.

End of Model Year Reports

• 32 (1) A company shall submit to the Minister an end of model year report, signed by a person who is authorized to act on behalf of the company, no later than May 1 after the end of each model year.

• (2) The end of model year report shall contain the following information:

  • (a) for each of a company’s fleets described in sections 21 to 23

    • (i) the applicable fleet average NO_X standard,

    • (ii) the average NO_X value achieved under section 24 or 25,

    • (iii) for each model of vehicle, the values used in calculating the average NO_X value achieved in respect of the fleet,

    • (iv) the total number of vehicles in the fleet,

    • (v) the NO_X emission credits calculated in accordance with subsection 26(2) for the model year, if any,

    • (vi) the NO_X emission deficits incurred for the model year, if any, and

    • (vii) the balance of credits or deficits at the end of the model year;

  • (b) for each of a company’s fleets described in sections 24.1 to 24.4

    • (i) the applicable fleet average NMOG + NO_X standard,

    • (ii) the average NMOG + NO_X value achieved under section 24.5 or 25.1,

    • (iii) for each model of vehicle, the values used in calculating the average NMOG + NO_X value achieved in respect of the fleet, including any compliance credits taken into account by the company in choosing the full useful life emission bin applicable to the vehicles,

    • (iv) the total number of vehicles in the fleet,

    • (v) the NMOG + NO_X emission credits calculated in accordance with subsection 26.1(2) for the model year, if any,

    • (vi) the NMOG + NO_X emission deficits incurred for the model year, if any, and

    • (vii) the balance of credits or deficits at the end of the model year;

  • (c) for each of a company’s fleets described in sections 24.6 and 24.7

    • (i) the applicable fleet average cold NMHC standard,

    • (ii) the average cold NMHC value achieved under section 24.8 or 25.2,

    • (iii) for each model of vehicle, the values used in calculating the average cold NMHC value achieved in respect of the fleet,

    • (iv) the total number of vehicles in the fleet,

    • (v) the cold NMHC emission credits calculated in accordance with subsection 26.2(2) for the model year, if any,

    • (vi) the cold NMHC emission deficits incurred for the model year, if any, and

    • (vii) the balance of credits or deficits at the end of the model year;

  • (d) for each of a company’s fleets described in section 24.10

    • (i) the applicable fleet average evaporative emission standard,

    • (ii) the average evaporative emission value achieved under section 24.11 or 25.3 and either the percentage of vehicles in the fleet that conform to the applicable fleet average evaporative emission standard or a statement that every vehicle in the fleet meets the requirements of paragraph 24.10(2)(a) or (b), as applicable,

    • (iii) the allowances taken into account in the calculation of the percentage of vehicles in the fleet that conform to the applicable fleet average evaporative emission standard, if any,

    • (iv) for each model of vehicle, the values used in calculating the average evaporative emission value achieved in respect of the fleet,

    • (v) the total number of vehicles in the fleet,

    • (vi) the evaporative emission credits calculated in accordance with subsection 26.3(2) for the model year, if any,

    • (vii) the evaporative emission deficits incurred for the model year, if any, and

    • (viii) the balance of credits or deficits at the end of the model year; and

  • (e) for each of a company’s fleets described in sections 26.4 to 26.6, the early action credits obtained for the model year in question, if any.

• (2.1) The end of model year report for the 2017 to 2021 model years shall also contain either the percentage of vehicles in a company’s groups of vehicles that conform to the applicable particulate matter exhaust emission standards referred to in subsection 17.2(1) or a statement that every vehicle in the group meets the requirements of paragraph 17.2(3)(a) or (b), as applicable.

• (3) The end of model year report must also contain the following information on each credit transfer to or from the company since the submission of the previous end of model year report:

  • (a) the name, street address and, if different, the mailing address of the company that transferred the credits and the model year in which that company obtained those credits;

  • (b) the name, street address and, if different, the mailing address of the company that received the credits;

  • (c) the date of the transfer; and

  • (d) the quantity of credits transferred.

• (4) The company shall include in the end of model year report, if applicable,

  • (a) for any of its fleets described in sections 21 to 23, a statement that

    • (i) it has made the election under section 25, or

    • (ii) it has made the election under subsection 31(1) and, if applicable, it has made an election under subsection 31(5) in respect of a group of vehicles described in paragraph 31(4)(a) or (b);

  • (b) for any of its fleets described in sections 24.1 to 24.4, a statement that

    • (i) it has made the election under section 25.1, or

    • (ii) it has made the election under subsection 31.1(1) and, if applicable, it has made an election under subsection 31.1(5) in respect of a group of vehicles described in paragraph 31.1(4)(a) or (b);

  • (c) for any of its fleets described in sections 24.6 and 24.7, a statement that

    • (i) it has made the election under section 25.2, or

    • (ii) it has made the election under subsection 31.1(1) and, if applicable, it has made an election under subsection 31.1(5) in respect of a group of vehicles described in paragraph 31.1(4)(a) or (b); and

  • (d) for any of its fleets described in section 24.10, a statement that

    • (i) it has made the election under section 25.3, or

    • (ii) it has made the election under subsection 31.1(1) and, if applicable, it has made an election under subsection 31.1(5) in respect of a group of vehicles described in paragraph 31.1(4)(a) or (b).

• (5) A company that makes an election under subsection 31(1) or 31.1(1) in respect of a group of vehicles in a fleet shall include in the end of model year report

  • (a) the following average values:

    • (i) for the 2016 and earlier model years, the average NO_X value, determined under subsection 31(4) or (6), as the case may be,

    • (ii) for the 2017 model year,

      • (A) in the case of a company’s heavy light-duty trucks and medium-duty passenger vehicles, the average NO_X value, determined under subsection 31(4) or (6), as the case may be, and the average cold NMHC or evaporative emission value, as the case may be, determined under subsection 31.1(4) or (6), or

      • (B) in the case of a company’s vehicles other than its heavy light-duty trucks and medium-duty passenger vehicles, the average NMOG + NO_X, cold NMHC or evaporative emission value, as the case may be, determined under subsection 31.1(4) or (6), as the case may be, or

    • (iii) for the 2018 and later model years, the average NMOG + NO_X, cold NMHC or evaporative emission value, as the case may be, determined under subsection 31.1(4) or (6), as the case may be;

  • (b) the values used in calculating the average values referred to in subparagraph (a)(i), clause (a)(ii)(A) or (B) or subparagraph (a)(iii), as the case may be; and

  • (c) information demonstrating compliance with subsection 31(3) or 31.1(3), as the case may be.

• (6) For the purpose of subsection (1), a company that acquires another company or that results from the merger of companies and that is the owner of record on May 1 is responsible for ensuring that the end of model year report is submitted.