2. Introduction

On January 1, 2004, the On-Road Vehicle and Engine Emission Regulations came into effect under the Canadian Environmental Protection Act, 1999 (CEPA 1999). These regulations introduced more stringent national emission standards for on-road vehicles and engines. The regulations align Canada's emission standards for light-duty vehicles, light-duty trucks, medium-duty passenger vehicles, heavy-duty vehicles, heavy-duty engines and motorcycles with those of the U.S. Environmental Protection Agency (EPA).

The Regulations require that new light-duty vehicles (LDV)¹, light light-duty trucks (LLDT)², heavy light-duty trucks (HLDT)³ and medium-duty passenger vehicles (MDPV)⁴ manufactured or imported for sale in Canada conform to the emission standards associated with one of eleven available "bins" that are generally known as "Tier 2" Bins (1 to 11). Each "bin" is defined by a specific set of maximum limits for exhaust emissions of oxides of nitrogen (NO_x), non-methane organic gases (NMOG), carbon monoxide (CO), formaldehyde (HCHO) and particulate matter (PM), when measured in accordance with the applicable test procedures. A company's choice of "bin" to which individual vehicle models are certified in a given model year is limited by the obligation to comply with the fleet average NO_x emission standards associated with that model year. The emission "bins", fleet average NO_x emission standards, timing of phase-ins and methods of calculating fleet average NO_x values are aligned with the U.S. Tier 2 emission program. There are, however, differences in the structure of the NO_x averaging program in Canada designed to recognize vehicles that are sold concurrently in Canada and the U.S. The structure of the regulatory requirements are designed to deliver fleet average emissions comparable to the U.S. while minimizing the regulatory burden on companies and enabling the marketing of vehicles in Canada independently from the U.S.

The Regulations require that companies submit a report to the Minister of the Environment at the end of each model year containing specific information concerning the company's fleets and fleet average NO_x emission performance for the model year.

¹ Light-duty vehicles generally consist of passenger cars.

² Light light-duty trucks generally consist of vans, sport utility vehicles and pick-up trucks having a GVWR of 2,722 kg (6,000 pounds) or less.

³ Heavy light-duty trucks generally comprise vans, sport utility vehicles and pick-up trucks having a GVWR of more than 2,722 kg (6,000 pounds) and up to 3,856 kg (8,500 pounds).

⁴ Medium-duty passenger vehicles generally consist of heavier passenger-type vehicles, such as vans and sport utility vehicles having a GVWR greater than 3,856 kg (8,500 pounds) and less than 4,536 kg (10,000 pounds).