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

Regulations are current to 2017-11-20 and last amended on 2015-07-16. Previous Versions

Averaging Sets

Marginal note:Calculation

 The credits or deficits for each averaging set of heavy-duty vehicles or heavy-duty engines are determined by adding the credits obtained and deficits incurred for all fleets of that averaging set.

Marginal note:Date of credits or deficits

 A company obtains credits or incurs deficits for an averaging set of heavy-duty vehicles or heavy-duty engines on the day on which the company submits the end of model year report for that model year.

Marginal note:Use of credits — time limit

 Credits obtained for an averaging set of heavy-duty vehicles or heavy-duty engines of a given model year may be used for that averaging set up to five model years after the model year for which the credits were obtained, after which the credits are no longer valid.

Marginal note:Deficits
  •  (1) Subject to subsections (4) and (6), a company must use the credits obtained for an averaging set of heavy-duty vehicles or heavy-duty engines of a given model year to offset any outstanding deficits incurred for that averaging set.

  • Marginal note:Remaining credits

    (2) A company may bank any remaining credits to offset a future deficit for that averaging set or it may transfer the remaining credits to another company.

  • Marginal note:Offsetting

    (3) Subject to subsection (4), a company may offset a deficit that it incurs for an averaging set of heavy-duty vehicles or heavy-duty engines with an equivalent number of credits obtained in accordance with section 35 or transferred from another company for that averaging set.

  • Marginal note:Transfer of credits

    (4) A company that obtains credits in accordance with sections 37 to 40 for an averaging set may transfer them to one of its other averaging sets to offset a deficit incurred in accordance with any of paragraphs 35(1)(a) to (d) if the following conditions are met:

    • (a) if the company obtained credits in accordance with section 37, they are used to offset any deficits for other vehicles in that averaging set before transferring any remaining credits to other averaging sets; and

    • (b) not more than 6 000 Mg of CO2 emission credits per model year are transferred between any of the following groups of averaging sets:

      • (i) averaging sets of spark-ignition engines, light heavy-duty engines that are compression-ignition engines and light heavy-duty vehicles,

      • (ii) averaging sets of medium heavy-duty engines that are compression-ignition engines and medium heavy-duty vehicles, or

      • (iii) averaging sets of heavy heavy-duty engines that are compression-ignition engines and heavy heavy-duty vehicles.

  • Marginal note:Exception

    (5) The credit transfer limit between the groups set out in paragraph (4)(b) does not apply when the credits are used between the averaging sets of the engines and vehicles referred to in each of the subparagraphs of that paragraph.

  • Marginal note:Offsetting deficits — time limit

    (6) A company must offset a deficit incurred for an averaging set of heavy-duty vehicles or heavy-duty engines of a given model year no later than the day on which the company submits the end of model year report in accordance with section 48 for vehicles or engines of the third model year after the model year for which the company incurred the deficit.

Marginal note:Acquisition or merger
  •  (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
  •  (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.

  • 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.

Reports

End of Model Year Report

Marginal note:Deadline
  •  (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 and subsequent model years that it imported or manufactured in Canada, no later than June 30 of the calendar year following the calendar year that corresponds to the model year in question.

  • Marginal note:Statement

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

    • (a) in the case of Class 2B and Class 3 heavy-duty vehicles and cab-complete vehicles, excluding those referred to in the definition vocational vehicle in subsection 1(1),

      • (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 section 17, or

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

    • (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), or

        • (D) are grouped into one or more fleets in accordance with section 18 for the purpose of participation in the CO2 emission credit system, 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, 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 29(6).

  • Marginal note:Statement when conforming to standards

    (3) If an end of model year report contains any statement referred to in clause (2)(a)(ii)(A), subparagraph (2)(b)(i) and clauses (2)(c)(i)(A) and (ii)(A) for a given model year, it must contain the number of heavy-duty vehicles or heavy-duty engines for each type referred to in subparagraphs 18(3)(a)(i) to (xiii) or (b)(i) to (vi).

  • Marginal note:Statement when covered by EPA certificate

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

    • (a) the number of vehicles or engines for each type referred to in subparagraphs 18(3)(a)(i) to (xiii) or (b)(i) to (vi);

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

    • (c) the number of vehicles 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), the number of heavy-duty engines sold in the United States that are grouped into 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;

    • (b) the average number of tractors and vocational vehicles that the company manufactured or imported for sale in Canada for the three most recent consecutive model years preceding that model year; and

    • (c) the number of tractors and vocational vehicles that the company manufactured or imported for sale in Canada 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) and clauses (2)(c)(i)(D) and (ii)(C) 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 or heavy-duty engines 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 referred to in the definition vocational vehicle in subsection 1(1),

        • (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 subfleet, determined for A in the formula set out in paragraph 35(1)(b),

      • (iii) for tractors and incomplete tractors, the CO2 emission standard that applies to the vehicles of each subfleet, determined for A in the formula set out in paragraph 35(1)(c), and

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

    • (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 referred to in the definition vocational vehicle in subsection 1(1) — 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), and

      • (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);

    • (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;

    • (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) 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;

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

    • (u) the number of CO2 emission credits and early action credits, if any, 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) an accounting of the CO2 emission credits, early action credits and deficits; 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.

  • SOR/2015-186, s. 65.
 
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