Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (SOR/2013-24)

Additional Credits

Marginal note:Obtaining additional credits

• 36 (1) A company may obtain additional credits for vehicles or engines as follows:

  • (a) for the 2020 model year and earlier model years, in accordance with sections 37 to 41;

  • (b) for the 2021 to 2027 model years, in accordance with sections 40.1 and 41; and

  • (c) for the 2028 model year and subsequent model years, in accordance with section 41.

• Marginal note:Limitation

  (2) Additional credits may only be obtained once for a vehicle or engine with regard to the same type of greenhouse gas emission reduction technology.

Marginal note:Credit multiplier — Class 2B and Class 3 vehicles

37 A company that obtains credits under paragraph 35(1)(a) for Class 2B and Class 3 heavy-duty vehicles and cab-complete vehicles that are electric vehicles, fuel cell vehicles, hybrid vehicles or are equipped with an engine that includes a Rankine-cycle or other bottoming cycle exhaust energy recovery system, may multiply the number of credits obtained for those vehicles by 1.5.

Marginal note:Equivalent conventional vehicle and footprint

• 38 (1) For the purpose of the calculation in subsection (2),

  • (a) equivalent conventional vehicle means a vocational vehicle, incomplete vocational vehicle, tractor or incomplete tractor that is being compared with a vocational vehicle, incomplete vocational vehicle, tractor or incomplete tractor that is an electric vehicle, a fuel cell vehicle, a hybrid vehicle, or that is equipped with an engine that includes a Rankine-cycle or other bottoming cycle exhaust energy recovery system that has, as a minimum, the same footprint, class, coefficient of aerodynamic drag, tires and wheels, and has the same number of power take-off circuits and the equivalent take-off power as the vehicle in question; and

  • (b) footprint means the result of the product of the average width, measured in inches and rounded to the nearest tenth of an inch, of the lateral distance between the centrelines of the front and rear base tires at ground level, multiplied by the longitudinal distance between the front and rear wheel centrelines, measured in inches and rounded to the nearest tenth of an inch, divided by 144 and rounded to the nearest tenth of a square foot.

• Marginal note:Calculation — tractors and vocational vehicles

  (2) In the case of vocational vehicles, incomplete vocational vehicles, tractors or incomplete tractors that are electric vehicles, fuel cell vehicles, hybrid vehicles or that are equipped with an engine that includes a Rankine-cycle or other bottoming cycle exhaust energy recovery system, a company may obtain additional credits by replacing the value determined for (A – B) in the equation set out in paragraph 35(1)(b) or (c), as the case may be, with the following benefit to emission credits, expressed in grams of CO₂ per short ton-mile and determined by the equation

  (A – B) = improvement factor x modelling result B

  where

  improvement factor

  is the value determined by the formula

  (emission rate A – emission rate B) ÷ (emission rate A)

  where

  emission rate A

  is the emission test result, expressed in grams of CO₂ per short ton-mile, obtained by an equivalent conventional vehicle when tested using the duty cycle test set out in section 510 of Title 40, chapter I, subchapter U, part 1037, subpart F, of the CFR, taking into account section 501 of Title 40, chapter I, subchapter U, part 1037, subpart F, of the CFR; and

  emission rate B

  is the emission test result, expressed in grams of CO₂ per short ton-mile, obtained by the vehicle in question, which is

  • (a) for an electric vehicle, zero grams of CO₂ per short ton-mile, and

  • (b) for any other vehicle, subject to subsection (3), the result obtained by the vehicle when tested using the duty cycle test set out in section 510 of Title 40, chapter I, subchapter U, part 1037, subpart F, of the CFR, taking into account sections 501 and 540 of Title 40, chapter I, subchapter U, part 1037, subpart F, of the CFR; and

  modelling result B

  is the CO₂ emission rate obtained for the vocational vehicle, incomplete vocational vehicle, tractor or incomplete tractor that is an electric vehicle, a fuel cell vehicle, a hybrid vehicle, or that is equipped with an engine that includes a Rankine-cycle or other bottoming cycle exhaust energy recovery system, when modelled in accordance with subsection 26(2) or subsection 27(2), as the case may be.

• Marginal note:Emission rate B

  (3) In the case of fuel cell vehicles, the company may use the alternative procedure referred to in section 615 of Title 40, chapter I, subchapter U, part 1037, subpart G, of the CFR to calculate emission rate B in the equation set out in subsection (2).

• Marginal note:Credit multiplier — tractors and vocational vehicles

  (4) The additional credits calculated in subsection (2) may be multiplied by 1.5 if the company does not use the early action credit multiplier referred to in subsection 47(6) for the same vehicles.

Marginal note:Definitions

• 39 (1) The following definitions apply in this section:

  post-transmission hybrid system

  post-transmission hybrid system means a powertrain that includes features that recover and store energy from braking but that cannot function as a hybrid system without the transmission. (système hybride post-transmission)

  pre-transmission hybrid system

  pre-transmission hybrid system means an engine system that includes features that recover and store energy during engine motoring operation but not from the vehicle wheels. (système hybride pré-transmission)

• Marginal note:Calculation — post-transmission and pre-transmission hybrid systems

  (2) In the case of vocational vehicles, incomplete vocational vehicles, tractors and incomplete tractors that are equipped with post-transmission hybrid systems or pre-transmission hybrid systems, a company may obtain additional credits, expressed in megagrams of CO₂, using the following formula:

  (A × B × C × D) ÷ (1 000 000)

  where

  A

  is the benefit obtained from A to B testing, expressed in grams of CO₂ per short ton-mile, determined in accordance with,

  • (a) in the case of a post-transmission hybrid system, section 555 of Title 40, chapter I, subchapter U, part 1037, subpart F, of the CFR, taking into account section 525 of Title 40, chapter I, subchapter U, part 1036, subpart F, of the CFR, and

  • (b) in the case of a pre-transmission hybrid system, part 1065 of Title 40, chapter I, subchapter U, of the CFR, or section 555 of Title 40, chapter I, subchapter U, part 1037, subpart F, of the CFR, taking into account section 525 of Title 40, chapter I, subchapter U, part 1036, subpart F, of the CFR;

  B

  is the payload for the class of vocational vehicles, incomplete vocational vehicles, tractors or incomplete tractors, as the case may be, which is

  • (a) 2.85 short tons for vocational vehicles that are light heavy-duty vehicles and incomplete vocational vehicles that are to become light heavy-duty vehicles,

  • (b) 5.6 short tons for vocational vehicles that are medium heavy-duty vehicles and incomplete vocational vehicles that are to become medium heavy-duty vehicles,

  • (c) 7.5 short tons for vocational vehicles that are heavy heavy-duty vehicles and incomplete vocational vehicles that are to become heavy heavy-duty vehicles,

  • (d) 12.5 short tons for Class 7 tractors and incomplete tractors, and

  • (e) 19 short tons for Class 8 tractors and incomplete tractors;

  C

  is the number of vehicles in the fleet or subfleet, as the case may be; and

  D

  is the useful life of the vehicles of the fleet or subfleet, as the case may be, expressed in miles.

• Marginal note:Credit multiplier

  (3) The additional credits calculated in subsection (2) may be multiplied by 1.5 if the company does not use the early action credit multiplier referred to in subsection 47(6) for the same vehicles.

Marginal note:Calculation — Rankine-cycle engines

• 40 (1) In the case of heavy-duty engines that include a Rankine-cycle or other bottoming cycle exhaust energy recovery system, a company may obtain additional credits, expressed in megagrams of CO₂, using the following formula:

  (A × B × C × D) ÷ (1 000 000)

  where

  A

  is the benefit obtained from A to B testing, expressed in grams of CO₂ per brake horsepower-hour, determined in accordance with section 615 of Title 40, chapter I, subchapter U, part 1036, subpart G of the CFR, or using an alternative procedure if,

  • (a) in the case of an engine that is covered by an EPA certificate, the alternative procedure has been approved by the EPA for that technology and the company provides the Minister with evidence of the EPA approval, or

  • (b) in the case of an engine that is not covered by an EPA certificate, the company provides the Minister with evidence demonstrating that the alternative procedure provides a more representative benefit than A to B testing for that technology;

  B

  is the transient cycle conversion factor calculated in accordance with the applicable variable “CF” in section 705(b) of Title 40, chapter I, subchapter U, part 1036, subpart H, of the CFR, except that a reference to “production volumes” in that section must be read as a reference to “number of engines of that engine family that a company imports or manufactures in Canada for the purpose of sale in Canada to the first retail purchaser”;

  C

  is the number of engines in the fleet; and

  D

  is the useful life of the engines of the fleet, expressed in miles.

• Marginal note:Credit multiplier

  (2) The additional credits calculated in subsection (1) may be multiplied by 1.5 if the company does not use the early action credit multiplier referred to in subsection 47(6) for the same engines.

Marginal note:Credit multipliers — 2021 to 2027 model years

40.1 A company that obtains credits under section 35 for its heavy-duty vehicles of the 2021 to 2027 model years that are plug-in hybrid vehicles, electric vehicles or fuel cell vehicles may multiply the number of credits obtained for those vehicles by the following number:

• (a) 4 in the case of plug-in hybrid vehicles;

• (b) 5 in the case of electric vehicles; and

• (c) 5.5 in the case of fuel cell vehicles.

Marginal note:Innovative technologies

• 41 (1) A company may obtain additional credits, expressed in megagrams of CO₂, for its fleet or subfleet, as the case may be, of heavy-duty vehicles or heavy-duty engines for the use of innovative technologies by

  • (a) in the case of Class 2B and Class 3 heavy-duty vehicles and cab-complete vehicles, excluding those that are vocational vehicles or incomplete vocational vehicles, using the following formula:

    (A × B × C) ÷ (1 000 000)

    where

    A

    is the five-cycle credit value determined in accordance with section 1869(c) of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR, and expressed in grams of CO₂ per mile,

    B

    is the number of vehicles manufactured with the innovative technology in question in the fleet, and

    C

    is the useful life of the vehicles of the fleet, expressed in miles;

  • (b) in the case of vocational vehicles and incomplete vocational vehicles, or tractors and incomplete tractors, either

    • (i) by using the following formula:

      ((A – B) × C × D × E) ÷ (1 000 000)

      where

      (A – B)

      is the difference between the in-use emission rate of the vehicle manufactured without the innovative technology and the in-use emission rate of the vehicle manufactured with the innovative technology and determined in accordance with section 610(c) of Title 40, chapter I, subchapter U, part 1037, subpart G, of the CFR, expressed in grams of CO₂ per short ton-mile,

      C

      is the number of vehicles manufactured with the innovative technology in question in the fleet or subfleet, as the case may be,

      D

      is the payload for the class of vehicles, which is

      • (A) 2.85 short tons for vocational vehicles that are light heavy-duty vehicles and incomplete vocational vehicles that are to become light heavy-duty vehicles,

      • (B) 5.6 short tons for vocational vehicles that are medium heavy-duty vehicles and incomplete vocational vehicles that are to becomes medium heavy-duty vehicles,

      • (C) 7.5 short tons for vocational vehicles that are heavy heavy-duty vehicles and incomplete vocational vehicles that are to become heavy heavy-duty vehicles,

      • (D) 12.5 short tons for Class 7 tractors and incomplete tractors,

      • (E) 19 short tons for Class 8 tractors and incomplete tractors of the 2020 model year or an earlier model year and for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of less than 54 431 kg (120,000 pounds), and

      • (F) 43 short tons for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of 54 431 kg (120,000 pounds) or more, and

      E

      is the useful life of the vehicles of the fleet or subfleet, as the case may be, expressed in miles, or

    • (ii) by substituting the result obtained in accordance with paragraph 35(1)(b) or (c), as the case may be, with the result obtained in accordance with one of the following formulas, whichever applies:

      • (A) for vocational vehicles and incomplete vocational vehicles:

        ([A – (B × C)] × D × E × F) ÷ (1 000 000)

        where

        A

        is the CO₂ emission standard under subsection 26(1) or (1.1) that applies to the vocational vehicles and incomplete vocational vehicles of the fleet or subfleet, as the case may be, expressed in grams of CO₂ per short ton-mile,

        B

        is the CO₂ family emission limit for the fleet or subfleet, as the case may be, expressed in grams of CO₂ per short ton-mile,

        C

        is the improvement factor calculated in accordance with sections 610(b)(1) and (c) of Title 40, chapter I, subchapter U, part 1037, subpart G, of the CFR, for the fleet or subfleet, as the case may be, of vocational vehicles and incomplete vocational vehicles or, in the case of vocational vehicles and incomplete vocational vehicles of the 2018 to 2020 model years, is the applicable improvement factor set out in section 150(y)(2) of Title 40, chapter I, subchapter U, part 1037, subpart B, of the CFR, for the fleet or subfleet, as the case may be,

        D

        is the payload for the class of vocational vehicles and incomplete vocational vehicles, which is

        • (I) 2.85 short tons for vocational vehicles that are light heavy-duty vehicles and incomplete vocational vehicles that are to become light heavy-duty vehicles,

        • (II) 5.6 short tons for vocational vehicles that are medium heavy-duty vehicles and incomplete vocational vehicles that are to become medium heavy-duty vehicles, and

        • (III) 7.5 short tons for vocational vehicles that are heavy heavy-duty vehicles and incomplete vocational vehicles that are to become heavy heavy-duty vehicles,

        E

        is the number of vocational vehicles and incomplete vocational vehicles manufactured with the innovative technology in question in the fleet or subfleet, as the case may be, and

        F

        is the useful life of the vehicles of the fleet or subfleet, as the case may be, expressed in miles, or

      • (B) for tractors and incomplete tractors:

        ([A – (B × C)] × D × E × F) ÷ (1 000 000)

        where

        A

        is the CO₂ emission standard under subsection 27(1), (1.1) or (1.2) that applies to the tractors and incomplete tractors of the fleet or subfleet, as the case may be, expressed in grams of CO₂ per short ton-mile,

        B

        is the CO₂ family emission limit for the fleet or subfleet, as the case may be, expressed in grams of CO₂ per short ton-mile,

        C

        is the improvement factor calculated in accordance with sections 610(b)(1) and (c) of Title 40, chapter I, subchapter U, part 1037, subpart G, of the CFR, for the fleet or subfleet, as the case may be, of tractors and incomplete tractors or, in the case of tractors and incomplete tractors of the 2018 to 2020 model years, is the applicable improvement factor set out in section 150(y)(2)(i) of Title 40, chapter I, subchapter U, part 1037, subpart B, of the CFR, for the fleet or subfleet, as the case may be,

        D

        is the payload for the class of tractors, which is

        • (I) 12.5 short tons for Class 7 tractors or incomplete tractors,

        • (II) 19 short tons for Class 8 tractors and incomplete tractors of the 2020 model year or an earlier model year and for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of less than 54 431 kg (120,000 pounds), and

        • (III) 43 short tons for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of 54 431 kg (120,000 pounds) or more,

        E

        is the number of tractors and incomplete tractors manufactured with the innovative technology in question in the fleet or subfleet, as the case may be, and

        F

        is the useful life of the tractors or incomplete tractors of the fleet or subfleet, as the case may be, expressed in miles; or

  • (c) in the case of heavy-duty engines,

    • (i) by using the following formula for engines tested on a chassis:

      ((A – B) × C × D × E) ÷ (1 000 000)

      where

      (A – B)

      is the difference between the in-use emission rate of the engine manufactured without the innovative technology and the in-use emission rate of the engine manufactured with the innovative technology, determined in accordance with chassis A to B testing or in-use A to B testing of pairs of vehicles equipped with the engines differing only with respect to the innovative technology in question, and expressed in grams of CO₂ per short ton-mile,

      C

      is the number of vocational vehicles, incomplete vocational vehicles, tractors or incomplete tractors with engines manufactured with the innovative technology in the fleet,

      D

      is the payload, if applicable, for the class of vehicles, which is

      • (A) 2.85 short tons for vocational vehicles that are light heavy-duty vehicles and incomplete vocational vehicles that are to become light heavy-duty vehicles,

      • (B) 5.6 short tons for vocational vehicles that are medium heavy-duty vehicles and incomplete vocational vehicles that are to become medium heavy-duty vehicles,

      • (C) 7.5 short tons for vocational vehicles that are heavy heavy-duty vehicles and incomplete vocational vehicles that are to become heavy heavy-duty vehicles,

      • (D) 12.5 short tons for Class 7 tractors and incomplete tractors,

      • (E) 19 short tons for Class 8 tractors and incomplete tractors of the 2020 model year or an earlier model year and for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of less than 54 431 kg (120,000 pounds), and

      • (F) 43 short tons for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of 54 431 kg (120,000 pounds) or more, and

      E

      is the useful life of the vehicles of the fleet, expressed in miles,

    • (ii) by using the following formula for engines tested on an engine dynamometer:

      ((A – B) × C × D × E) ÷ (1 000 000)

      where

      (A – B)

      is the difference between the in-use emission rate of the engine manufactured without the innovative technology and the in-use emission rate of the engine manufactured with the innovative technology, determined in accordance with engine dynamometer A to B testing of pairs of engines differing only with respect to the innovative technology in question and expressed in grams of CO₂ per brake horsepower-hour,

      C

      is the transient cycle conversion factor calculated in accordance with the applicable variable “CF” in section 705(b) of Title 40, chapter I, subchapter U, part 1036, subpart H, of the CFR, except that a reference to “production volumes” in that section must be read as a reference to “number of engines of that engine family that a company imports or manufactures in Canada for the purpose of sale in Canada to the first retail purchaser”,

      D

      is the number of engines manufactured with the innovative technology in the fleet,

      E

      is the useful life of the engines of the fleet, expressed in miles, or

    • (iii) by substituting the result obtained in accordance with paragraph 35(1)(d) with the result determined in accordance with the following formula:

      ([A – (B × C)] × D × E × F) ÷ (1 000 000)

      where

      A

      is the CO₂ emission standard that applies to the fleet of heavy-duty engines under section 30 or subsection 31(2), as the case may be, expressed in grams of CO₂ per brake horsepower-hour,

      B

      is the CO₂ family certification level for the fleet, subject to subsection 35(3), expressed in grams of CO₂ per brake horsepower-hour,

      C

      is the improvement factor calculated in accordance with section 610(b)(1) of Title 40, chapter I, subchapter U, part 1036, subpart G, of the CFR, based on results of A to B testing, chassis A to B testing or in-use A to B testing of pairs of engines using an engine dynamometer or of pairs of vehicles equipped with the engines in question, as the case may be, differing only with respect to the innovative technology in question,

      D

      is the transient cycle conversion factor calculated in accordance with the applicable variable “CF” in section 705(b) of Title 40, chapter I, subchapter U, part 1036, subpart H, of the CFR, except that a reference to “production volumes” in that section must be read as a reference to “number of engines of that engine family that a company imports or manufactures in Canada for the purpose of sale in Canada to the first retail purchaser”,

      E

      is the number of engines manufactured with the innovative technology in the fleet, and

      F

      is the useful life of the engines of the fleet, expressed in miles.

• Marginal note:Calculation — alternative procedure

  (2) If the five-cycle credit value referred to in the description of A in the formula set out in paragraph (1)(a) cannot adequately measure the emission reduction attributable to an innovative technology, the company may calculate that five-cycle credit value using the alternative procedure set out in section 1869(d) of Title 40, chapter I, subchapter C, part 86, of the CFR, if

  • (a) in the case of a vehicle that is covered by an EPA certificate, the alternative procedure has been approved by the EPA for that technology and the company provides the Minister with evidence of the EPA approval; or

  • (b) in the case of a vehicle that is not covered by an EPA certificate, the company provides the Minister with evidence demonstrating that the alternative procedure provides a more representative benefit for that technology.