Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations

Marginal note:CO₂ equivalent emission credits

• 20 (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) to (3.4), a company must calculate, using the following formula, the credits or deficits for each of its fleets:

  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) or 12(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) under subsection 10(1) or 12(1) to which the company certifies 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) or 12(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) under subsection 10(1) or 12(1) to which the company certifies 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:Calculation and recalculation for the 2017 to 2021 model years

  (3.3) A company may elect to calculate or recalculate its credits or deficits for any of its fleets of the 2017 to 2021 model years by making the election referred to in subsection 18.1(4) and by using the equation set out in subsection (3) but replacing the descriptions of A and C with the following:

  A

  is the adjusted fleet average CO₂ equivalent emission standard, expressed in grams per mile, calculated in accordance with section 17 but, for the purposes of the descriptions of B and C in subsection 17(3), in the case of advanced technology vehicles, natural gas vehicles or natural gas dual fuel vehicles, the number of vehicles is multiplied by the number set out in the table to subsection 18.1(4) in respect of that type of vehicle for the model year in question;

  C

  is determined by the formula

  N_v + Σ (N_cv × M)

  where

  N_v

  is the number of passenger automobiles or light trucks in the fleet, excluding advanced technology vehicles, natural gas vehicles and natural gas dual fuel vehicles,

  N_cv

  is the number of advanced technology vehicles, natural gas vehicles or natural gas dual fuel vehicles in the fleet, as the case may be, and

  M

  is the multiplier set out in the table to subsection 18.1(4) in respect of the type of vehicle for the model year in question.

• Marginal note:2022 to 2024 model years

  (3.4) For the 2022 to 2024 model years, if a company makes the election under subsection 18.1(4), the descriptions of A and C in subsection (3) are replaced by the descriptions of A and C in subsection (3.3).

• Marginal note:Date of credit or deficit

  (4) Subject to subsection (4.1), a company obtains credits or 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:Date of credit or deficit — 2017 to 2021 model years

  (4.1) A company obtains credits or reduces its deficits for a specific fleet of the 2017 to 2021 model years if the report includes the following information in respect of that fleet:

  • (a) the number of credits or deficits calculated in accordance with subsection (3) and, as applicable, the number of credits or deficits calculated in accordance with subsection (3.3), as well as the difference between the results; and

  • (b) a statement that the company has elected to recalculate credits or deficits in accordance with subsection (3.3) and an indication of the number of additional credits, or the reduction in the number of deficits, obtained as a result of that election as well as the number of vehicles 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 and 2018 model years

  (6) Credits obtained for a fleet of passenger automobiles or light trucks of the 2017 and 2018 model years may be used in respect of any fleet of passenger automobiles or light trucks of a model year that is up to three model years before or up to six model years after the model year in respect of which the credits were obtained, after which the credits are no longer valid.

• Marginal note:Time limit — credits for 2019 model year and subsequent model years

  (7) Credits obtained for a fleet of passenger automobiles or light trucks of the 2019 model year and a subsequent model year may be used in respect of any fleet of passenger automobiles or light trucks of a model year that is up to three model years before or 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.