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

Marginal note:Acquisition or merger

• 46 (1) A company that acquires another company or that results from a merger of companies must offset any outstanding deficit of the purchased or merged companies.

• Marginal note:Ceasing activities

  (2) If a company ceases to manufacture, import or sell heavy-duty vehicles or heavy-duty engines, it must offset all outstanding deficits for its averaging sets before submitting its last end of model year report.

Early Action Credits

Marginal note:Eligibility

• 47 (1) A company may obtain early action credits for an averaging set of heavy-duty vehicles or heavy-duty engines that are compression-ignition engines of the 2013 model year or for an averaging set of heavy-duty engines that are spark-ignition engines of the 2015 model year, if the number of credits calculated for that averaging set is greater than the number of deficits incurred for that model year and the company reports the credits

  • (a) in its 2014 end of model year report, in the case of heavy-duty vehicles and heavy-duty engines that are compression-ignition engines; or

  • (b) in its 2016 end of model year report, in the case of heavy-duty engines that are spark-ignition engines.

• Marginal note:Electric vehicles

  (2) A company may obtain early action credits by grouping its fleets of electric vehicles of the 2011 to 2013 model years into the applicable averaging sets and if the company reports the credits in its 2014 end of model year report.

• Marginal note:What to include

  (3) For the purpose of obtaining early action credits, a company must group

  • (a) into the applicable fleet, all its vocational vehicles, tractors, Class 2B and Class 3 heavy-duty vehicles equipped with a spark-ignition engine or Class 2B and Class 3 heavy-duty vehicles equipped with a compression-ignition engine, except in the case of electric vehicles; and

  • (b) into the applicable averaging set, all its heavy-duty engines.

• Marginal note:Date

  (4) A company obtains early action credits on the day on which its 2014 end of model year report is submitted in the case of heavy-duty vehicles and heavy-duty engines that are compression-ignition engines, and on the day on which its 2016 end of model year report is submitted in the case of heavy-duty engines that are spark-ignition engines.

• Marginal note:Calculation

  (5) Early action credits obtained or deficits incurred within each averaging set for the following fleets must be calculated in accordance with sections 35 to 41, as applicable, using the following standards:

  • (a) in the case of heavy-duty vehicles and heavy-duty engines that are compression-ignition engines of the 2013 model year, the emission standards applicable to the 2014 model year;

  • (b) in the case of electric vehicles of the 2011 to 2013 model years, the emission standards applicable to the 2014 model year; and

  • (c) in the case of heavy-duty engines that are spark-ignition engines of the 2015 model year, the emission standards applicable to the 2016 model year.

• Marginal note:Credit multiplier

  (6) Early action credits obtained for vocational vehicles, tractors or heavy-duty engines may be multiplied by 1.5 if the company does not use the additional credit multiplier referred to in subsection 38(4), 39(3) or 40(2) for the same vehicles or engines.

• Marginal note:Time limit

  (7) Early action credits may be used as follows:

  • (a) credits obtained for heavy-duty vehicles or heavy-duty engines that are compression-ignition engines of the 2013 model year may be used for the 2014 to 2018 model years;

  • (b) credits obtained for electric vehicles of the 2011 to 2013 model years may be used for the 2014 to 2018 model years; and

  • (c) credits obtained for heavy-duty engines that are spark-ignition engines of the 2015 model year may be used for the 2016 to 2020 model years.

• Marginal note:Use

  (8) The rules set out in sections 45 and 46 with respect to credits also apply to early action credits.

CO₂ Emission Credit System — Full-aero Box Van Trailers

Calculation of Credits and Deficits

Marginal note:Credits

• 47.1 (1) For the purposes of subparagraph 162(1)(b)(i) of the Act, a company obtains CO₂ emission credits if the CO₂ emissions for a fleet or subfleet, as the case may be, of full-aero box van trailers of a given model year are lower than the CO₂ emission standard applicable to the trailers of that fleet or subfleet, as the case may be, for that model year.

• Marginal note:Deficits

  (2) A company incurs deficits if the CO₂ emissions for a fleet or subfleet, as the case may be, of full-aero box van trailers of a given model year are higher than the CO₂ emission standard applicable to the trailers of that fleet or subfleet, as the case may be, for that model year.

• Marginal note:End of model year report

  (3) The company must report any credits obtained and any deficits incurred in its end of model year report in accordance with section 48.

Marginal note:Calculation

47.2 A company must calculate the credits or deficits for each of its fleets or subfleets, as the case may be, of full-aero box van trailers using the formula

Averaging Sets

Marginal note:Calculation

• 47.3 (1) The credits or deficits for each averaging set of full-aero box van trailers are calculated by adding the credits obtained and deficits incurred for all fleets and, if applicable, subfleets of that averaging set. The credits and deficits must be added together before rounding and the result must be rounded to the nearest megagram of CO₂.

• Marginal note:Date of credits or deficits

  (2) A company obtains credits or incurs deficits for an averaging set of full-aero box van trailers on the day on which the company submits the end of model year report for that model year.

Marginal note:Offsetting

• 47.4 (1) A company must use the credits obtained for an averaging set of full-aero box van trailers of a given model year to offset any outstanding deficits incurred for that averaging set. Deficits are offset by an equivalent number of credits.

• Marginal note:Use of credits — time limitations

  (2) Credits obtained by a company for an averaging set of full-aero box van trailers of a given model year may be used only to offset an outstanding deficit in respect of the same averaging set of full-aero box van trailers of a model year that is up to three model years before the model year for which the credits are obtained. The company must offset the deficit not later than the day on which the company submits the end of model year report in accordance with section 48.

Marginal note:Acquisition or merger

• 47.5 (1) A company that acquires another company or that results from a merger of companies must offset any outstanding deficit of the purchased or merged companies.

• Marginal note:Ceasing activities

  (2) If a company ceases to manufacture, import or sell full-aero box van trailers, it must offset all outstanding deficits for its averaging sets before submitting its last end of model year report.

Reports

End of Model Year Report

Marginal note:Deadline

• 48 (1) A company must submit to the Minister an end of model year report, signed by a person who is authorized to act on behalf of the company, for all heavy-duty vehicles and heavy-duty engines of the 2014 model year or of a subsequent model year, and all trailers of the 2020 model year or a subsequent model year, that it imported or manufactured in Canada, not later than June 30 of the calendar year following the calendar year that corresponds to the model year in question.

• Marginal note:Exclusion

  (1.1) Subsection (1) does not apply to a company in respect of any of their heavy-duty vehicles or heavy-duty incomplete vehicles that they have altered in accordance with subsection 11(1).

• Marginal note:Statement

  (2) The end of model year report must indicate the model year for which the report is made and must include the following statements by the company for its vehicles, engines and trailers, as applicable:

  • (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,

    • (i) in respect of the fleet average CO₂ emission standard, that all its vehicles are grouped into one or more fleets in accordance with section 18, and

    • (ii) in respect of the N₂O and CH₄ emission standards, that its vehicles

      • (A) conform to the applicable N₂O and CH₄ emission standards,

      • (B) are covered by an EPA certificate, bear the label referred to in subparagraph 53(d)(i) and conform either to the emission standards referred to in the EPA certificate or to a N₂O or CH₄ family emission limit, as the case may be, that is lower than the N₂O or CH₄ emission standard applicable to the model year of the vehicles under these Regulations, or

      • (C) are grouped into one or more fleets in accordance with section 18 for the purpose of offsetting a deficit in accordance with subsection 20(5);

  • (b) in the case of tractors and vocational vehicles, that its vehicles

    • (i) conform to the applicable CO₂ emission standard,

    • (ii) are covered by an EPA certificate, bear the label referred to in subparagraph 53(d)(i) and conform either to the emission standard referred to in the EPA certificate or to a CO₂ family emission limit that is lower than the CO₂ emission standard applicable to the model year of the vehicles under these Regulations,

    • (iii) are covered by an EPA certificate, bear the label referred to in subparagraph 53(d)(i), conform to a CO₂ family emission limit that exceeds the CO₂ emission standard applicable to the model year of the vehicles under these Regulations and are not grouped into one or more fleets in accordance with subsection 13(4),

    • (iv) are grouped into one or more fleets in accordance with section 18 for the purpose of participation in the CO₂ emission credit system,

    • (v) are exempted under subsection 17(1),

    • (vi) in the case of vocational tractors, conform to the emission standards applicable to vocational vehicles in accordance with section 28,

    • (vii) are equipped with an engine that meets the conditions set out in subsection 12.2(2) and conforms to the standards referred to in subsection 12.2(3), or

    • (viii) are equipped with an engine that conforms to the alternate standards referred to in subsection 12.2(4);

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

    • (i) in respect of the CO₂ emission standard, that its engines

      • (A) conform to the applicable CO₂ emission standard,

      • (B) are covered by an EPA certificate, bear the label referred to in subparagraph 53(d)(ii) and conform either to the emission standard referred to in the EPA certificate or to a CO₂ family certification level that is lower than the CO₂ emission standard applicable to the model year of the engines under these Regulations,

      • (C) are covered by an EPA certificate, bear the label referred to in subparagraph 53(d)(ii), conform to a CO₂ family certification level that exceeds the CO₂ emission standard applicable to the model year of the engines under these Regulations and are not grouped into one or more fleets in accordance with subsection 13(8),

      • (D) are grouped into one or more fleets in accordance with section 18 for the purpose of participation in the CO₂ emission credit system, or

      • (E) are exempted under subparagraph 17(1.1)(a)(ii) or paragraph 17(1.1)(b), and

    • (ii) in respect of the N₂O and CH₄ emission standards, that its engines

      • (A) conform to the applicable N₂O and CH₄ emission standards,

      • (B) are covered by an EPA certificate, bear the label referred to in subparagraph 53(d)(ii) and conform either to the emission standards referred to in the EPA certificate or to a N₂O or CH₄ family emission limit, as the case may be, that is lower than the N₂O or CH₄ emission standard applicable to the model year of the engines under these Regulations,

      • (B.1) are covered by an EPA certificate, bear the U.S. engine information label referred to in subparagraph 53(d)(ii), conform to a N₂O or CH₄ family emission limit, as the case may be, that exceeds the N₂O or CH₄ emission standard applicable to the model year of the engines under these Regulations and, in accordance with subsection 13(7.1), do not conform to subsections 29(4) to (7),

      • (C) are grouped into one or more fleets in accordance with section 18 for the purpose of offsetting a deficit in accordance with subsection 29(6), or

      • (D) are exempted under subparagraph 17(1.1)(a)(i) or paragraph 17(1.1)(b); and

  • (d) in the case of trailers, that

    • (i) its trailers conform to the applicable standards set out in subsection 16.1(1) or section 33.1, as the case may be,

    • (ii) its trailers are covered by an EPA certificate, bear the U.S. emission control information label referred to in subparagraph 53(d)(i) and conform either to the emission standard referred to in the EPA certificate or, in the case of full-aero box van trailers, to a CO₂ family emission limit that is lower than the CO₂ emission standard applicable to the model year of the trailers under these Regulations,

    • (iii) its full-aero box van trailers are grouped into one or more fleets in accordance with section 18 for the purpose of participation in the CO₂ emission credit system,

    • (iv) its trailers are exempted under section 17.1, or

    • (v) a certain number of its trailers are exempted under section 17.2.

• Marginal note:Statement when conforming to standards

  (3) If an end of model year report contains any of the statements referred to in clause (2)(a)(ii)(A), subparagraph (2)(b)(i), clauses (2)(c)(i)(A) and (ii)(A) and subparagraph (2)(d)(i) for a given model year, it must contain

  • (a) the number of heavy-duty vehicles or heavy-duty engines for each type referred to in paragraph 18(3)(a) or (b) or the number of trailers for each type referred to in subsection 16.1(1) or 33.1(1) or (2), as the case may be; and

  • (b) the CO₂ emission standard and, if applicable, the N₂O and CH₄ emission standards to which the vehicles, engines or trailers, as the case may be, conform.

• Marginal note:Statement when covered by EPA certificate

  (4) If an end of model year report contains any of the statements referred to in clause (2)(a)(ii)(B), subparagraphs (2)(b)(ii) and (iii), clauses (2)(c)(i)(B) and (C) and (ii)(B) and (B.1) and subparagraph (2)(d)(ii) for a given model year, it must contain the following information for each type of heavy-duty vehicle, heavy-duty engine or trailer, as the case may be:

  • (a) the number of vehicles or engines for each type referred to in paragraph 18(3)(a) or (b) or the number of trailers for each type referred to in subsection 16.1(1) or 33.1(1) or (2);

  • (b) in the case of vehicles and trailers, the CO₂ family emission limit and, in the case of engines, the CO₂ family certification level;

  • (c) the number of vehicles, trailers or engines for each CO₂ family emission limit or CO₂ family certification level, as the case may be;

  • (d) if applicable, the N₂O or CH₄ family emission limit;

  • (e) if applicable, the number of vehicles or engines for each N₂O or CH₄ family emission limit; and

  • (f) if an end of model year report contains the statement referred to in clause (2)(c)(i)(C) or (ii)(B.1), the number of heavy-duty engines sold in the United States that are of the same engine family.

• Marginal note:Statement for exempted tractors and vocational vehicles

  (5) If an end of model year report contains the statement referred to in subparagraph (2)(b)(v) for a given model year, the report must contain the following information:

  • (a) the number of tractors and vocational vehicles that the company manufactured or imported in 2011 for sale in Canada; and

  • (b) [Repealed, SOR/2018-98, s. 52]

  • (c) the number of tractors and vocational vehicles that the company manufactured or imported for sale in Canada for that model year.

• Marginal note:Statement — vehicle referred to in subsection 12.2(2)

  (5.1) If an end of model year report contains the statement referred to in subparagraph (2)(b)(vii) for a given model year, the report must contain the following information:

  • (a) the number of vocational vehicles and tractors that the company manufactured or imported for sale in Canada for that model year; and

  • (b) the model year of the engine installed in each vehicle and, in each case, which of the conditions set out in paragraphs 12.2(2)(a) to (d) the engine meets.

• Marginal note:Statement — vehicle referred to in subsection 12.2(4)

  (5.2) If an end of model year report contains the statement referred to in subparagraph (2)(b)(viii) for a given model year, the report must contain the number of hybrid vehicles that the company elected to equip with an engine that conforms to the alternate standards referred to in subsection 12.2(4).

• Marginal note:Statement — exempted engines

  (5.3) If an end of model year report contains the statement referred to in clause (2)(c)(i)(E) or (ii)(D) for a given model year, the report must contain the number of engines that are installed in the vocational vehicles and tractors referred to in subsection 17(1) that the company has elected to exempt under subsection 17(1.1).

• Marginal note:Statement — exempted trailers

  (5.4) If an end of model year report contains the statement referred to in subparagraph (2)(d)(iv) or (v) for a given model year, the report must contain the following information:

  • (a) in the case of the statement referred to in subparagraph (2)(d)(iv), the number of trailers that the company manufactured or imported for sale in Canada in 2020; and

  • (b) in the case of the statement referred to in subparagraph (2)(d)(v),

    • (i) for each type of trailer, the number of trailers that the company manufactured or imported for sale in Canada for the model year in question, and

    • (ii) the number of trailers that the company has elected to exempt under section 17.2 for that model year.

• Marginal note:Alternative standards for engines — section 25

  (6) If the company includes in a fleet, in accordance with section 25, spark-ignition engines that are not installed in vehicles or that are installed in heavy-duty incomplete vehicles that are not cab-complete vehicles, it must provide the number of those engines, along with the total number of engines in that vehicle fleet — whether they are installed in vehicles or not — that are of the same model year, design and hardware.

• Marginal note:Contents

  (7) If an end of model year report contains any statement referred to in subparagraph (2)(a)(i), clause (2)(a)(ii)(C), subparagraph (2)(b)(iv), clauses (2)(c)(i)(D) and (ii)(C) and subparagraph (2)(d)(iii) for a given model year, the report must contain the following information for each averaging set:

  • (a) if applicable, a statement that the company has elected to exclude from its fleets heavy-duty vehicles, heavy-duty engines or full-aero box van trailers in accordance with subsection 18(2);

  • (b) if applicable, a statement that the company has elected to comply with the alternative standards for vocational vehicles equipped with spark-ignition engines referred to in subsection 26(6);

  • (c) an identification of all fleets and subfleets referred to in section 18 within the averaging set;

  • (d) in relation to CO₂ emission standards and, if applicable, the N₂O and CH₄ emission standards:

    • (i) for Class 2B and Class 3 heavy-duty vehicles and cab-complete vehicles, excluding those that are vocational vehicles or incomplete vocational vehicles,

      • (A) the N₂O and CH₄ emission standards applicable to each fleet,

      • (B) the fleet average CO₂ emission standard, determined for A in the formula set out in paragraph 35(1)(a),

      • (C) the CO₂ emission target value for each vehicle subconfiguration of each fleet, determined for A in the formula set out in subsection 22(1),

      • (D) the work factor for each vehicle subconfiguration calculated in accordance with subsection 22(3), and

      • (E) the GVWR, curb weight, GCWR, type of transmission, gear ratio, axle ratio and type of engine for each vehicle configuration,

    • (ii) for vocational vehicles and incomplete vocational vehicles, the CO₂ emission standard that applies to the vehicles of each fleet or subfleet, as the case may be, determined for A in paragraph 35(1)(b),

    • (iii) for tractors and incomplete tractors, the CO₂ emission standard that applies to the vehicles of each fleet or subfleet, as the case may be, determined for A in paragraph 35(1)(c),

    • (iv) for heavy-duty engines, the CO₂ emission standard and N₂O and CH₄ emission standards that apply to the engines of each fleet, and

    • (v) for full-aero box van trailers, the CO₂ emission standard that applies to the trailers of each fleet or subfleet, as the case may be, determined for A in section 47.2;

  • (e) in relation to CO₂ emissions, and if applicable, to N₂O and CH₄ emissions,

    • (i) for each fleet of Class 2B and Class 3 heavy-duty vehicles and cab-complete vehicles — excluding those that are vocational vehicles or incomplete vocational vehicles — the following values:

      • (A) the fleet average CO₂ emission value, determined for B in the formula set out in paragraph 35(1)(a),

      • (B) the CO₂ emission value for each vehicle configuration, determined for A in the formula set out in subsection 23(1) and taking into account subsection 23(2), and

      • (C) if applicable, the N₂O or CH₄ family emission limit, determined for B in the formula set out in subsection 20(3),

    • (ii) for each fleet of vocational vehicles and incomplete vocational vehicles, the CO₂ family emission limit for each subfleet, determined for B in the formula set out in paragraph 35(1)(b),

    • (iii) for each fleet of tractors and incomplete tractors, the CO₂ family emission limit for each subfleet, determined for B in the formula set out in paragraph 35(1)(c),

    • (iv) for each fleet of heavy-duty engines,

      • (A) the CO₂ family certification level, determined for B in the formula set out in paragraph 35(1)(d), and

      • (B) if applicable, the N₂O and CH₄ family emission limits, determined for B in the formula set out in subsection 29(4), and

    • (v) for each fleet of full-aero box van trailers, the CO₂ family emission limit for each fleet or subfleet, as the case may be;

  • (f) the number of heavy-duty vehicles or heavy-duty engines in each averaging set, fleet, subfleet, vehicle configuration, engine configuration and the number of vehicles in each vehicle subconfiguration;

  • (f.1) the number of full-aero box van trailers in each averaging set, fleet and subfleet;

  • (g) if applicable, the evidence of the variable F referred to in the formula set out in paragraph 24(3)(b);

  • (h) if applicable, the evidence of the EPA approval referred to in paragraph 27(6)(a);

  • (i) if applicable, the evidence referred to in paragraph 27(6)(b);

  • (j) if applicable, evidence of the EPA approval referred to in paragraph (a) of the description of A in the formula set out in subsection 40(1);

  • (k) if applicable, the evidence referred to in paragraph (b) of the description of A in the formula set out in subsection 40(1);

  • (l) if applicable, the evidence of the EPA approval referred to in paragraph 41(2)(a);

  • (m) if applicable, the evidence referred to in paragraph 41(2)(b);

  • (n) if applicable, the number of CO₂ emission credits calculated in accordance with subsection 29(8) for an N₂O family emission limit that is less than 0.04 g/BHP-hr;

  • (o) in the case of heavy-duty vehicles or heavy-duty engines, the number of credits and deficits, calculated in accordance with section 35 for each fleet and subfleet, and the value of each variable — along with its description — used in calculating them;

  • (o.1) in the case of full-aero box van trailers, the number of credits and deficits, calculated in accordance with section 47.2 for each fleet and subfleet, and the value of each variable — along with its description — used in calculating them;

  • (p) the number of additional credits, calculated in accordance with section 38 for each fleet, including the following values:

    • (i) the improvement factor,

    • (ii) the emission rate A,

    • (iii) the emission rate B,

    • (iv) the modelling result B, along with the value and description of each parameter used in determining that result, and

    • (v) the values determined for C, D and E;

  • (q) the number of additional credits, calculated in accordance with section 39 for each fleet and subfleet, and the value of each variable used in calculating them;

  • (r) the number of additional credits, calculated in accordance with section 40, for each fleet and subfleet, and the value of each variable used in calculating them;

  • (s) the number of additional credits, calculated in accordance with section 41, for each fleet and subfleet, and the value of each variable used in calculating them;

  • (t) an identification of every instance in each fleet or subfleet, as the case may be, when the following credit multipliers were used:

    • (i) the 1.5 credit multiplier referred to in section 37 and subsections 38(4), 39(3) and 40(2), and

    • (ii) the credit multipliers referred to in section 40.1;

  • (u) if applicable, the number of CO₂ emission credits and early action credits that are used to offset a deficit incurred for the model year or an outstanding deficit and the averaging set and the model year for which the credits were obtained;

  • (v) if applicable, an accounting of the CO₂ emission credits, early action credits and deficits and, for each averaging set in respect of which the credit multiplier referred to in paragraph 45(2.1)(a) or (b) was used, a statement that the multiplier was used; and

  • (w) for the purposes of paragraphs 13(4)(a) and (b), in the company’s end of model year reports for the 2015 and 2016 model years, the percentage of its vocational vehicles and incomplete vocational vehicles and the percentage of its tractors and incomplete tractors that are grouped into one or more fleets in accordance with section 18 for the purpose of participation in the CO₂ emission credit system.

• Marginal note:Statement — subparagraph (2)(b)(vi)

  (8) If an end of model year report contains the statement referred to in subparagraph (2)(b)(vi) for a given model year, the company must provide in its end of model year report the number of Class 7 and Class 8 vocational tractors that conform to the emission standards applicable to vocational vehicles in accordance with section 28 and that it manufactures or imports for that model year and for the two previous model years.

• Marginal note:Additional information — emission credit transfers

  (9) The end of model year report must also contain the following information for each CO₂ emission credit transfer and early action credit transfer to or from the company since the submission of the previous end of model year report:

  • (a) the name, street address and, if different, the mailing address of the company that transferred the credits and the model year for which that company obtained those credits;

  • (b) the name, street address and, if different, the mailing address of the company that received the credits;

  • (c) the date of the transfer; and

  • (d) the number of credits transferred, expressed in megagrams of CO₂.