Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations

Marginal note:Application

• 62 (1) A company applying under section 156 of the Act for an exemption from conformity with any standard prescribed under these Regulations must, before importing a vehicle or engine or applying a national emissions mark to a vehicle or engine, submit in writing to the Minister

  • (a) its name, street address and, if different, its mailing address;

  • (b) the province or country under the laws of which it is established;

  • (c) the section number, title and text or substance of the standards from which an exemption is sought;

  • (d) the duration requested for the exemption;

  • (e) the reason for requesting an exemption; and

  • (f) if the company is requesting that the information submitted be treated as confidential under section 313 of the Act, the reasons for the request.

• Marginal note:Exemption — paragraph 156(1)(a) of the Act

  (2) If the basis of an application for an exemption is the substantial financial hardship referred to in paragraph 156(1)(a) of the Act, the company must include in the submission to the Minister

  • (a) the world production of vehicles or engines manufactured by the company or by the manufacturer of the model that is the subject of the application in the 12-month period beginning two years before the beginning of the period in respect of which the exemption is sought;

  • (b) the total number of vehicles or engines manufactured for, or imported into, the Canadian market in the 12-month period beginning two years before the beginning of the period in respect of which the exemption is sought;

  • (c) technical and financial information demonstrating in detail why conformity to the standards referred to in paragraph (1)(c) would create substantial financial hardship, including

    • (i) a list of each of the items that would have to be altered in order to achieve conformity,

    • (ii) an itemized and detailed description of the estimated cost to make the alterations referred to in subparagraph (i)

      • (A) at the end of one year after the day on which the application is submitted, if the duration of the requested exemption is for a period of one year or more but less than two years,

      • (B) at the end of two years after the day on which the application is submitted, if the duration of the requested exemption is for a period of two years or more but less than three years, or

      • (C) at the end of three years after the day on which the application is submitted, if the duration of the requested exemption is for a period of three years,

    • (iii) the estimated price increase per vehicle or engine to counter the total costs incurred under subparagraph (ii) and a statement of the anticipated effect of each such price increase, and

    • (iv) corporate balance sheets and income statements for the three fiscal years before the filing of the application;

  • (d) a description of the company’s efforts to have its vehicles or engines conform to the standards from which the exemption is sought, including

    • (i) a description of any other means of achieving conformity that were considered and the reasons for rejecting each of them, and

    • (ii) a description of the steps to be taken while the exemption is in effect and the estimated date by which conformity will be achieved through design changes to or the termination of the production of non-conforming vehicles or engines; and

  • (e) a copy of the research, development and testing documentation establishing that an exemption would not substantially diminish the control of emissions of the vehicle or the engine, including

    • (i) the reasons why not conforming to the prescribed standards would not substantially diminish the control of emissions of the vehicle or the engine, and

    • (ii) a description of other means of achieving conformity with the prescribed standards that were considered by the company and the reasons for rejecting each of them.

• Marginal note:Exemption — paragraph 156(1)(b) of Act

  (3) If the basis of an application for an exemption is the development of new emission monitoring or emission control features referred to in paragraph 156(1)(b) of the Act, the company must include in the submission to the Minister

  • (a) a description of the new features;

  • (b) a copy of the research, development and testing documentation establishing the innovative nature of the new features;

  • (c) an analysis of how the level of performance of the new features is equivalent or superior to the level of performance required by the prescribed standards, including

    • (i) a detailed description of how a vehicle or engine equipped with the new features would, if exempted, differ from a vehicle or engine that conforms to the prescribed standards, and

    • (ii) the results of tests conducted on the new features that demonstrate a level of performance that is equivalent or superior to that required by the prescribed standards;

  • (d) evidence that an exemption would facilitate the development or the field evaluation of the vehicle or the engine; and

  • (e) a statement as to whether the company intends, at the end of the exemption period,

    • (i) to have the vehicle or the engine conform to the prescribed standards,

    • (ii) to apply for a further exemption, or

    • (iii) to request that the prescribed standards be amended to incorporate the new features.

• Marginal note:Exemption — paragraph 156(1)(c) of Act

  (4) If the basis of an application for an exemption is the development of new kinds of vehicles, engines or vehicle or engine systems or components referred to in paragraph 156(1)(c) of the Act, the company must include in the submission to the Minister

  • (a) a copy of the research, development and testing documentation establishing that an exemption would not substantially diminish the control of emissions of the vehicle or the engine, including

    • (i) a detailed description of how the vehicle or the engine equipped with the new kinds of vehicle systems or components would, if exempted, differ from one that conforms to the prescribed standards,

    • (ii) the reasons why not conforming to the prescribed standards would not substantially diminish the control of emissions of the vehicle or the engine, and

    • (iii) a description of other means of achieving conformity that were considered and the reasons for rejecting each of them;

  • (b) evidence that an exemption would facilitate the development or the field evaluation of the vehicle or the engine; and

  • (c) a statement as to whether the company intends, at the end of the exemption period, to have the vehicle or the engine conform to the prescribed standards.

• Marginal note:New exemption

  (5) If a company wishes to obtain a new exemption to take effect after the expiry of an exemption referred to in subsection (3) or (4), the company must submit, in writing, to the Minister

  • (a) the information required under subsection (3) or (4), as the case may be; and

  • (b) a statement of the total number of vehicles or engines sold in Canada under the expiring exemption.