Greenhouse Gas Emission Standards
On-Road Vehicle and Engine Emission Regulations
8. (1) An emission control system that is installed in a vehicle to enable it to conform to the standards set out in these Regulations must be in conformity with subsection 11(1) of the On-Road Vehicle and Engine Emission Regulations.
Defeat device
(2) A vehicle must not be equipped with a defeat device.
Test procedures
(3) Subsections 11(3) and (4) of the On-Road Vehicle and Engine Emission Regulations apply, except that the test procedures in question are the ones set out in section 10.
Nitrous oxide and methane emission standards
9. Passenger automobiles and light trucks of the 2012 or subsequent model years must conform to the exhaust emission standards for nitrous oxide (N2O) and methane (CH4) set out in section 1818 of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR, for the applicable model year.
Interpretation of standards
10. The standards referred to in section 9 are the certification and in-use standards set out in subpart B of Title 40, chapter I, subchapter C, part 86, of the CFR, at the applicable useful life, and include the test procedures, fuels and calculation methods set out in subpart B for those standards.
Vehicles covered by an EPA certificate
11. (1) Every vehicle of a specific model year that is covered by an EPA certificate and that is sold concurrently in Canada and the United States must conform to, instead of the standards set out in sections 8 and 9, the certification and in-use standards referred to in the EPA certificate.
Subsection 153(3) of the Act
(2) For the purposes of subsection 153(3) of the Act, the provisions of the CFR that are applicable to a vehicle referred to in subsection (1) pursuant to the EPA certificate correspond to the certification and in-use standards referred to in subsection (1).
EPA
(3) For the purposes of subsection 153(3) of the Act, the EPA is the prescribed agency.
Definition -- fleet
12. In sections 14 to 33, "fleet" refers to
- all passenger automobiles or light trucks of a specific model year that a company manufactures in Canada or imports into Canada for the purpose of sale of those vehicles to the first retail purchaser; or
- if a company makes an election under section 20, all passenger automobiles or light trucks of a specific model year that a company manufactures in Canada or imports into Canada for the purpose of sale of those vehicles to the first retail purchaser that have not been included in the temporary optional fleet created under section 20 for that model year.
Rounding
13. If any of the calculations in these Regulations results in a number that is not a whole number, the number must be rounded to the nearest whole number in accordance with section 6 of the American Society for Testing and Materials method ASTM E 29-93a, Standard Practice for Using Significant Digits in Test Data to Determine Conformance with Specifications.
Requirements respecting CO2 equivalent emissions
14. Subject to sections 17 and 18, the fleet average CO2 equivalent emission value for a company's fleet of passenger automobiles and fleet of light trucks of the 2011 and subsequent model years must not exceed the applicable fleet average CO2 equivalent emission standard for the model year in question.
Calculation of fleet average CO2 equivalent emission standard for model year 2011
14.1 (1) A company must calculate the fleet average CO2 equivalent emission standard, expressed in grams of CO2 equivalent per mile, in respect of each one of its fleets of passenger automobiles or light trucks of the 2011 model year, by dividing 8,887 by the following
- in the case of passenger automobiles, the manufacturer specific passenger automobile fuel economy standard for the 2011 model year determined in accordance with section 5 of Title 49, subtitle B, chapter V, part 531, of the CFR; and
- in the case light trucks, the manufacturer specific light truck fuel economy standard for the 2011 model year determined in accordance with section 5 of Title 49, subtitle B, chapter V, part 533, of the CFR.
Model type and group
15. (1) For the purposes of this section, passenger automobiles or light trucks of the same model type and that have the same footprint constitute a group.
Calculation of fleet average CO2 equivalent emission standard for 2012 and subsequent model years
(2) Subject to section 20, a company must calculate the fleet average CO2 equivalent emission standard in respect of each one of its fleets of passenger automobiles or light trucks of the 2012 and subsequent model years, in accordance with the following formula:
where
- A is the CO2 emission target value for each group of passenger automobiles or light trucks, determined in accordance with subsection (3) or (4) and expressed in grams of CO2 per mile;
- B is the number of passenger automobiles or light trucks in the group in question; and
- C is the total number of passenger automobiles or light trucks in the fleet.
Targets -- fleet of passenger automobiles
(3) The CO2 emission target value applicable to a group of passenger automobiles of a given model year corresponds to the following:
| Column 1 | Column 2 | |
|---|---|---|
| Item | Model Year | CO2 Emission Target Value (g/mile) |
| 1. | 2012 | 242 |
| 2. | 2013 | 234 |
| 3. | 2014 | 227 |
| 4. | 2015 | 215 |
| 5. | 2016 and subsequent model years | 204 |
| Column 1 | Column 2 | |
|---|---|---|
| Item | Model Year | b |
| 1. | 2012 | 48.8 |
| 2. | 2013 | 40.8 |
| 3. | 2014 | 33.2 |
| 4. | 2015 | 22.0 |
| 5. | 2016 and subsequent model years | 10.9 |
| Column 1 | Column 2 | |
|---|---|---|
| Item | Model Year | CO2 Emission Target Value (g/mile) |
| 1. | 2012 | 313 |
| 2. | 2013 | 305 |
| 3. | 2014 | 297 |
| 4. | 2015 | 286 |
| 5. | 2016 and subsequent model years | 275 |
Targets -- fleet of light trucks
(4) The CO2 emission target value applicable to a group of light trucks of a given model year corresponds to the following:
| Column 1 | Column 2 | |
|---|---|---|
| Item | Model Year | CO2 Emission Target Value (g/mile) |
| 1. | 2012 | 298 |
| 2. | 2013 | 287 |
| 3. | 2014 | 276 |
| 4. | 2015 | 261 |
| 5. | 2016 and subsequent model years | 246 |
| Column 1 | Column 2 | |
|---|---|---|
| Item | Model Year | b |
| 1. | 2012 | 132.6 |
| 2. | 2013 | 121.6 |
| 3. | 2014 | 110.3 |
| 4. | 2015 | 95.2 |
| 5. | 2016 and subsequent model years | 80.4 |
| Column 1 | Column 2 | |
|---|---|---|
| Item | Model Year | CO2 Emission Target Value (g/mile) |
| 1. | 2012 | 399 |
| 2. | 2013 | 388 |
| 3. | 2014 | 377 |
| 4. | 2015 | 362 |
| 5. | 2016 and subsequent model years | 347 |
Fleet average CO2 equivalent emission value
16. (1) A company must calculate the fleet average CO2 equivalent emission value for each of its fleets of passenger automobiles and light trucks of the 2011 and subsequent model years, in accordance with the following formula:
where
- D is the average carbon-related exhaust emission value for each fleet determined in accordance with subsection (2) or (10), and subject to subsections (3) to (5);
- E is the allowance for reduction of air conditioning refrigerant leakage determined in accordance with subsection (6);
- F is the allowance for improving air conditioning system efficiency determined in accordance with subsection (7); and
- G is the allowance for the use of innovative technologies that have a measurable CO2 reduction, determined in accordance with subsection (8).
Average carbon-related exhaust emission value for 2012 and subsequent model years
(2) The average carbon-related exhaust emission value for each fleet of the 2012 or subsequent model years is calculated using with the following formula:
where
- A is the carbon-related exhaust emission value for each model type, determined in accordance with the provisions of section 510(j)(2) of Title 40, chapter I, part 600, subpart F, of the CFR, for the model year in question and expressed in grams of CO2 per mile;
- B is the number of vehicles of the model type in question in the fleet; and
- C is the total number of vehicles in the fleet.
Advanced technology
(3) When calculating the fleet average carbon-related exhaust emission value in accordance with the provisions of subsection (2) for vehicles of the 2012 to 2016 model years, a company may, for the purposes of amounts B and C in subsection (2), multiply the number of advanced technology vehicles in its fleet by 2, if the following conditions are met:
- documentation of the use of the multiplier and the number of credits obtained by its use are included in the end of model year report; and
- vehicles are certified to the emission standards of bin 5 or a more stringent bin set out in a horizontal row in Table S04-1 in section 1811 of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR.
Maximum decrease for dual fuel vehicles
(4) For the purposes of subsection (2) and for vehicles of the model years 2012 to 2015, if the fleet contains alcohol dual fuel vehicles or natural gas dual fuel vehicles, the fleet average carbon-related exhaust emission value is the greater of:
- the fleet average carbon-related exhaust emission value calculated in accordance with subsection (2); and
- the fleet average carbon-related exhaust emission value determined in accordance with subsection (2) but assuming that all alcohol dual fuel vehicles and natural gas dual fuel vehicles operate exclusively on gasoline or diesel fuel, minus the applicable limit set out in section 510(i) of Title 40, chapter I, part 600, subpart F, of the CFR.
Alternative value
(5) For the purposes of sections 510(j)(2)(vi) and (vii) of Title 40, chapter I, part 600, subpart F, of the CFR, a company may use an alternative value for the weighting factor "F" if the company provides the Minister with evidence demonstrating that the alternative value of "F" is more representative of the company's fleet.
Allowance for reduction of air conditioning refrigerant leakage
(6) A company may calculate an allowance for the use, in its fleet of passenger automobiles or light trucks, of air conditioning systems that incorporate technologies designed to reduce air conditioning refrigerant leakage, calculated using the following formula:
where
- A is the CO2 equivalent leakage reduction for each of the air conditioning systems in the fleet that incorporates those technologies, determined in accordance with the provisions of sections 166 and 1866(b) of Title 40, chapter I, subchapter C, Part 86, of the CFR and expressed in grams of CO2 equivalent per mile;
- B is the total number of vehicles in the fleet equipped with the air conditioning system; and
- C is the total number of vehicles in the fleet.
Allowance for improving air conditioning system efficiency
(7) A company may calculate an allowance for the use, in its fleet of passenger automobiles or light trucks, of air conditioning systems that incorporate technologies designed to reduce air-conditioning-related CO2 emissions by improving the air conditioning system efficiency of those fleets, calculated using the following formula:
where
- A is the air conditioning efficiency allowance for each of the air conditioning systems in the fleet that incorporate those technologies, determined in accordance with the provisions relating to credits in sections 165 and 1866(c) of Title 40, chapter I, subchapter C, Part 86, of the CFR and expressed in grams of CO2 per mile;
- B is the total number of vehicles in the fleet equipped with the air conditioning system; and
- C is the total number of vehicles in the fleet.
Allowance for innovative technologies
(8) A company may calculate an allowance for the use, in its fleet of passenger automobiles or light trucks, of innovative technologies that have a measurable CO2 emission reduction in accordance with the following formula, if the CO2 reduction is not captured by the test procedures used to determine the carbon-related exhaust emissions for those technologies:
where
- A is the allowance for each innovative technology used in the fleet, determined in accordance with the provisions for the 5-cycle methodology set out in section 1866(d)(2)(i) of Title 40, chapter I, subchapter C, Part 86, of the CFR and expressed in grams of CO2 per mile;
- B is the total number of vehicles in the fleet equipped with the innovative technology; and
- C is the total number of vehicles in the fleet.
Alternative procedure
(9) If the 5-cycle methodology referred to in the description of A in subsection (8) cannot adequately measure the emission reduction attributable to an innovative technology, a company may calculate the allowance in question using an alternative procedure if
- the alternative procedure has been approved by the EPA in accordance with section 1866(d)(2)(ii) of Title 40, chapter I, subchapter C, Part 86, of the CFR; and
- the Minister is provided with evidence of the EPA approval in the end of model year report.
Fleet average carbon-related exhaust emission value for the 2011 model year
(10) The average carbon-related exhaust emission value for each of fleets of the 2011 model year, expressed in grams of CO2 equivalent per mile, is calculated by dividing 8,887 by the company's fleet average fuel economy for that model year determined in accordance with section 510 of Title 40, chapter I, part 600, subpart F, of the CFR.
CO2 equivalent emission credits
17. (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 year model report.
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 for a specific model year is higher than the fleet average CO2 equivalent emission standard for that fleet and model year.
Calculation
(3) A company must calculate the credits or deficits for each of its fleets using the following equation:
where
- ECD is the number of credits, if the result is positive, or the number of deficits, if the result is negative, expressed in units of megagrams of CO2 equivalent;
- A is the fleet average CO2 equivalent emission standard calculated in accordance with section 15, expressed in grams per mile;
- B is the fleet average CO2 equivalent emission value calculated in accordance with section 16, 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:
- 190,971 miles for a fleet of passenger automobiles; and
- 221,199 miles for a fleet of light trucks.
Date of credit or deficit
(4) A company obtains credits and 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.
Validity - time limit
(5) Credits obtained for a fleet of passenger automobiles or light trucks of a specific model year can be used in respect of any fleet of passenger automobiles or light trucks of five model years after the model year in respect of which the credits were obtained, after which the credits are no longer valid.
Deficits
18. (1) Subject to subsection (4), a company must use credits obtained for a fleet of passenger automobiles or light trucks of a specific model year to offset any outstanding deficits incurred for any of its fleets.
Remaining credits
(2) A company may bank any remaining credits to offset a future deficit or may transfer the credits to another company, except during the 2012 to 2015 model years if the company elects to create a temporary optional fleet under section 20.
Offset
(3) A company may offset a deficit with an equivalent number of credits obtained in accordance with section 17 or with an equivalent number of credits transferred from another company.
Offset - time limit
(4) A company must offset a deficit no later than the day on which the company submits the end of model year report for vehicles of the third model year after the model year for which the company incurred the deficit.
Receiver General - Model Year 2011
(5) A company may offset a deficit incurred in the 2011 model year with an equivalent number of credits obtained by the payment of an amount to the Receiver General, at a rate to be prescribed in these Regulations.*
*Note: Interested parties are invited to provide comments on the rate to be prescribed.
Purchased or merged companies
19. (1) A company that purchases another company or that results from the merger of companies is responsible for offsetting any outstanding deficits of the purchased or merged companies.
Ceasing activities
(2) If a company ceases to manufacture, import or sell passenger automobiles or light trucks, it must, before submitting its last end of model year report, offset all deficits that are outstanding for its fleets.
Optional fleets
20. (1) A company that manufactured or imported in total less than 40 000 passenger automobiles and light trucks of the 2009 model year for sale in Canada may, for vehicles of the 2012 to 2015 model years, elect to not include, for a given year, a number of vehicles of the model years 2012, 2013, 2014 and 2015 in the calculation of the fleet average CO2 equivalent emission standard set out in section 15 and to create temporary optional fleets of passenger automobiles or light trucks with the following restrictions:
- the combined total of passenger automobiles and light trucks for the model years 2012 to 2015 in the temporary optional fleets must not exceed 10 000;
- subject to sections 21 and 22, the fleet average CO2 equivalent emission value for a company's temporary optional fleet of passenger automobiles or temporary optional fleet of light trucks of a given model year must comply with the alternative fleet average CO2 equivalent emission standards for that model year, calculated in accordance with subsection (2); and
- the company must have manufactured or imported at least one passenger automobile or light truck of the 2009 model year for sale in Canada.
Optional fleet average standards
(2) The company that creates a temporary optional fleet must calculate the optional fleet average CO2 equivalent emission standard in accordance with the following formula, for each model year, rounding the result to the nearest whole number:
where
- A is the CO2 equivalent emission target value for each group of passenger automobiles or light trucks included in the temporary optional fleet, determined in accordance with:
- subsection 15(3) for the groups of passenger automobiles, or
- subsection 15(4) for the groups of light trucks.
- B is the number of passenger automobiles or light trucks in the group in question; and
- C is the total number of passenger automobiles or light trucks in the temporary optional fleet.
Optional fleet average values
(3) The company that creates a temporary optional fleet must determine, for each model year, the optional fleet average CO2 equivalent emission value using the formula set out in section 16.
Use of credits
21. (1) A company that creates a temporary optional fleet of passenger automobiles or light trucks obtains credits or incurs deficits in respect of its optional fleet in accordance with subsection 17(1) or (2), as the case may be.
Calculation
(2) The company must calculate the credits or deficits for each of its temporary optional fleets using the equation set out in subsection 17(3).
Subsection 17(4)
(3) Subsection 17(4) applies to credits and deficits obtained or incurred in accordance with this section.
Validity -- time limit
(4) Credits obtained for a temporary optional fleet of passenger automobiles or light trucks of a given model year can only be used to offset a deficit incurred in respect of temporary optional fleets of passenger automobiles or light trucks of the 2012 to 2015 model years, after which the credits are no longer valid.
Application of sections 18 and 19
22. (1) Subsections 18(1) and (4) and section 19 apply to credits obtained and deficits incurred for a temporary optional fleet.
Limit on use of credits
(2) The company must not use credits obtained for a temporary optional fleet to offset a deficit incurred for a fleet of passenger automobiles or light trucks to which the fleet average CO2 equivalent emission standard set out in section 15 applies.
Future deficit
(3) The company may bank any remaining credits obtained for a temporary optional fleet to offset a future deficit incurred for another temporary optional fleet.
Use of credits
(4) The company must use any remaining credits obtained for a fleet of passenger automobiles or light trucks to which the fleet average CO2 equivalent emission standard set out in section 15 applies, to offset a deficit incurred for a temporary optional fleet.
Early action credits -- 2008, 2009 and 2010 model years
23. (1) A company may obtain early action credits in respect of its fleets of passenger automobiles and light trucks of the 2008, 2009 and 2010 model years if the total number of credits calculated in respect of those fleets of the 2008, 2009 and 2010 model years is greater than the total number of deficits incurred for those model years and the company reports the credits in its 2011 model year report provided for in section 25.
Date of early action credits
(2) The early action credits are obtained by a company on the day on which the report referred to in subsection (1) is submitted.
Calculation
(3) Early action credits obtained or deficits incurred in respect of its fleets of passenger automobiles and light trucks of the 2008, 2009 and 2010 model years must be calculated in accordance with subsection 17(3), except that the fleet average CO2 equivalent emission standard for the 2008, 2009 and 2010 model years, as determined for A, is the following:
- in the case of 2008, 2009 and 2010 model year passenger automobiles, 323 grams per mile;
- in the case of 2008 model year light trucks, 395 grams per mile;
- in the case of 2009 model year light trucks, 381 grams per mile; and
- in the case of 2010 model year light trucks, 376 grams per mile.
2008 model year -- limitation
(4.1) Early action credits calculated for a fleet of passenger automobiles or light trucks of the 2008 model year can only be subtracted from a deficit calculated for the 2008, 2009, 2010 or 2011 model years.
2009 and 2010 model years
(4.2) Early action credits calculated for a fleet of passenger automobiles or light trucks of the 2009 or 2010 model years can be subtracted from a deficit calculated for the 2008, 2009, 2010 or 2011 model years.
Validity -- time limit
(5) Subject to subsection (5.1), early action credits obtained for a fleet of passenger automobiles or light trucks of the model year 2009 or 2010 can be used as of the 2012 model year, but only in respect of any fleet of passenger automobiles or light trucks of five model years after the model year in respect of which the credits were obtained, after which the credits are no longer valid.
Adjustment
(5.1) If the early action credits are obtained in respect of fleets that contain alcohol dual fuel vehicles or natural gas dual fuel vehicles, the number of early action credits that can be used as of the 2012 model year is calculated with the assumption that all alcohol dual fuel vehicles and natural gas dual fuel vehicles operate exclusively on gasoline or diesel fuel. This adjustment also applies to credits obtained in respect of the 2011 model year.
Use of early action credits
(6) The rules set out in sections 18 and 19 with respect to credits also apply to early action credits.
Definitions
24. (1) For the purposes of this section:
- "light-duty vehicle" and "medium-duty passenger vehicle" have the same meaning as in subsection 1(1) of the On-Road Vehicle and Engine Emission Regulations;
- "light light-duty truck" means a light-duty truck, as defined in subsection 1(1) of the Regulations referred to in paragraph (a), that has a GVWR of 1 701 kg (3,750 pounds) or less;
- "heavy light-duty truck" means a light-duty truck, as defined in subsection 1(1) of the Regulations referred to in paragraph (a), that has a GVWR of more than 1 701 kg (3,750 pounds).
Alternative fleet combination for early action credits
(2) Instead of obtaining early action credits in respect of its fleets of passenger automobiles and light trucks of the 2008, 2009 and 2010 model years, a company may obtain early action credits in respect of its combined fleet of light-duty vehicles and light light-duty trucks and its combined fleet of heavy light-duty trucks and medium-duty passenger vehicles.
Fleet average CO2 equivalent emission standard
(3) Section 23 applies to the combined fleets referred to in subsection (1), except that the fleet average CO2 equivalent emission standard provided for in paragraph 23(3)(a), is the following:
- in the case of 2008 and 2009 model year light-duty vehicles and light light-duty trucks, 321 grams per mile;
- in the case of 2008 and 2009 model year heavy light-duty trucks and medium-duty passenger vehicles, 437 grams per mile;
- in the case of 2010 model year light-duty vehicles and light light-duty trucks, 299 grams per mile; and
- in the case of 2010 model year heavy light-duty trucks and medium-duty passenger vehicles, 418 grams per mile.
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