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Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations (SOR/2010-201)

Regulations are current to 2024-02-06 and last amended on 2023-12-15. Previous Versions

Greenhouse Gas Emission Standards (continued)

Combined Fleet Requirements — Zero-emission Vehicles (continued)

Offsetting Deficits and Use of Units

Marginal note:Deficits

  •  (1) Subject to subsection (4), a company must use compliance units obtained in respect of its combined fleet of a given model year to offset a deficit incurred in respect of its combined fleet.

  • Marginal note:Remaining compliance units

    (2) A company may bank all or some of any remaining compliance units to offset a future deficit or transfer all or some of them to another company.

  • Marginal note:Offset

    (3) A company may offset a deficit with,

    • (a) in the case of a deficit incurred in respect of the 2026 and 2027 model years, a number of units equal to the deficit, consisting of

      • (i) compliance units obtained in accordance with section 30.14, early compliance units obtained in accordance with section 30.16 or charging station units created in accordance with section 30.21,

      • (ii) compliance units or charging station units that were transferred to it by another company, or

      • (iii) a combination of any of these units;

    • (b) in the case of a deficit incurred in respect of the 2028 to 2030 model years, a number of units equal to the deficit, consisting of

      • (i) compliance units obtained in accordance with section 30.14 or charging station units created in accordance with section 30.21,

      • (ii) compliance units or charging station units that were transferred to it by another company, or

      • (iii) a combination of any of these units;

    • (c) in the case of a deficit incurred in respect of the 2031 to 2034 model years, a number of compliance units equal to the deficit, consisting of compliance units obtained in accordance with section 30.14 or that were transferred to it by another company, or a combination of any of these units.

  • Marginal note:Offsetting deficits — sum of early compliance units and charging station units

    (4) The sum of early compliance units and charging station units, including those charging station units that were transferred to it by another company, that a company uses to offset a deficit incurred in respect of the combined fleet of any of the 2026 to 2030 model years may not exceed, for the model year in question, the amount calculated using the following formula:

    0.1 × A × B

    where

    A
    is the ZEV requirement for the model year in question; and
    B
    is the total number of automobiles in the combined fleet.
  • Marginal note:Offsetting deficits 2026 to 2034 model years — time limit

    (5) Any deficit incurred in respect of a combined fleet for a given model year must be offset no later than

    • (a) in the case of a deficit in respect of the 2026 to 2031 model years, the day on which the company submits the end of model year report of the third model year after the model year for which the company incurred the deficit; or

    • (b) in the case of a deficit in respect of the 2032 to 2034 model years, the day on which the company submits the end of model year report for the 2035 model year.

  • Marginal note:No offset — 2035 model years and subsequent model years

    (6) No deficits incurred in respect of a combined fleet for the 2035 model year and subsequent model years can be offset.

Early Compliance Units — Zero-emission Vehicles of the 2024 and 2025 model years

Marginal note:Obtaining units

  •  (1) A company may obtain early compliance units in respect of its combined fleet of the 2024 and 2025 model year, if there are zero-emission vehicles in its combined fleet, the amount calculated in accordance with subsections (2) and (3) is positive and the company reports those units in the end of model year report for the model year in question.

  • Marginal note:Calculation — 2024 model year

    (2) The number of early compliance units that a company may obtain for its combined fleet of the 2024 model year is equal to the lesser of

    • (a) the number of units calculated using the following formula:

      0.12 × A

      where

      A
      is the total number of automobiles in the combined fleet; and
    • (b) the number calculated using the following formula:

      (0.15 × A + 0.75 × B + C + D) − (0.08 × E)

      where

      A
      is the total number of plug-in hybrid electric vehicles in the combined fleet with an all-electric driving range of at least 35 km and not more than 49 km,
      B
      is the total number of plug-in hybrid electric vehicles in the combined fleet equipped with less than seven seats with an all-electric driving range of at least 50 km and not more than 64 km,
      C
      is the total number of plug-in hybrid electric vehicles in the combined fleet equipped with seven seats or more with an all-electric driving range of at least 50 km and not more than 64 km,
      D
      is the total number of electric vehicles and fuel cell vehicles, and plug-in hybrid electric vehicles with an all-electric driving range of at least 65 km, in the combined fleet, and
      E
      is the total number of automobiles in the combined fleet.
  • Marginal note:Calculation — model year 2025

    (3) The number of early compliance units that a company may obtain for its combined fleet of the 2025 model year is the lesser of

    • (a) the number of units calculated using the following formula:

      0.07 × A

      where

      A
      is the total number of automobiles in the combined fleet; and
    • (b) the number calculated using the following formula:

      (0.15 × A + 0.75 × B + C + D) − (0.13 × E)

      where

      A
      is the total number of plug-in hybrid electric vehicles in the combined fleet with an all-electric driving range of at least 35 km and not more than 49 km,
      B
      is the total number of plug-in hybrid electric vehicles in the combined fleet equipped with less than seven seats with an all-electric driving range of at least 50 km and not more than 64 km,
      C
      is the total number of plug-in hybrid electric vehicles in the combined fleet equipped with seven seats or more with an all-electric driving range of at least 50 km and not more than 64 km,
      D
      is the total number of electric vehicles and fuel cell vehicles, and plug-in hybrid electric vehicles with an all-electric driving range of at least 65 km, in the combined fleet, and
      E
      is the total number of automobiles in the combined fleet.
  • Marginal note:Date of units

    (4) A company obtains early compliance units with respect to its combined fleet on the day on which the end of model year report for the model year in question is submitted.

  • Marginal note:Banking

    (5) A company may bank but cannot transfer its early compliance units.

  • Marginal note:End of validity

    (6) Early compliance units are no longer valid after the day on which the company submits its end of model year report for the 2027 model year.

Registered Charging Station Installation Project — Charging Station Units

Marginal note:Registration

 Subject to section 30.19, the Minister may, on the application of one company, register a charging station installation project so that charging station units are created if the application contains the information that is required by section 30.18. The Minister will complete registration by no later than December 31, 2027.

Marginal note:Registration application content

 The application for registration of the project must contain

  • (a) the name, street and mailing addresses, telephone number and, if any, email address of the company;

  • (b) the name, title, street and mailing addresses, telephone number and, if any, email address of the person who is authorized to act on behalf of the company;

  • (c) the name, title, street and mailing addresses, telephone number and, if any, email address of its contact person, other than the person referred to in paragraph (b);

  • (d) if applicable, the information referred to in paragraphs (a) to (c) with respect to each company and third party that invests in the project;

  • (e) the following information with respect to the project:

    • (i) the name by which the project is known,

    • (ii) the estimated total investment in the project and, if applicable, the amount to be invested by each company and third party and the proportion, expressed as a percentage, of their investment in the total investment in the project,

    • (iii) the estimated number of charging stations,

    • (iv) the rated power of each station,

    • (v) the location of each station, according to the Global Positioning System (GPS), to the fifth decimal place,

    • (vi) the anticipated date of commencement of operation of each station, and

    • (vii) the estimated number of charging station units to be created; and

  • (f) a statement affirming that

    • (i) the project targets the installation of charging stations for zero-emission vehicles,

    • (ii) the charging stations will be certified for use in Canada and will be installed in a permanent manner in Canada, in locations where there are no charging stations or to increase the number of charging stations already installed at a given location,

    • (iii) the charging stations will have a rated power of at least 150 kW,

    • (iv) the charging stations can be used, without restricting the power output, at all times and at the same price by all makes and models of zero-emission vehicles that are equipped with a compatible charging port or necessary adaptor to connect to the stations,

    • (v) the charging stations will be operational no earlier than on January 1, 2024 and no later than two years after the date of registration of the project, but the date must not be later than December 31, 2027,

    • (vi) the charging stations will remain in operation for at least five years,

    • (vii) no financial contribution or other benefit will be granted with respect to the project from a government program, and

    • (viii) no compliance credits, referred to in sections 102 and 103 of the Clean Fuel Regulations, will be created with respect to the project.

Marginal note:Registration — conditions

 The Minister must not register a charging station installation project under section 30.17 unless the Minister is satisfied that the statement referred to in paragraph 30.18(f) will be complied with.

Marginal note:Cancellation of registration

 The Minister must cancel the registration of any charging station installation project that does not comply with subparagraph 30.18(f)(i), (vii) or (viii).

Marginal note:Creation of charging station units

  •  (1) A company may create charging station units with respect to any registered charging station project if

    • (a) all charging stations became operational no earlier than on January 1, 2024 and no later than two years after the date of registration of the project, but the date must not be later than December 31, 2027; and

    • (b) the company reports those units in its end of model year report.

  • Marginal note:Number of units — one investor

    (2) If a company is the only investor in a registered project, the company must calculate the number of charging station units it will create using the following formula:

    A ÷ B

    where

    A
    is the lesser of
    • (a) the total amount of the company’s investment; and

    • (b) the total of the maximum allowable investment amounts for each charging station, in accordance with the table below; and

    Column 1Column 2
    Rated power of charging stationsMaximum investment for each charging station
    150 kW to 199 kW$150,000
    200 kW and above$200,000
    B
    is $20,000.
  • Marginal note:Number of units — multiple investors

    (3) If a company invests in the registered project with other companies or third parties, that company must calculate the number of charging station units it will create using the following formula:

    (A ÷ B) × C

    where

    A
    is the lesser of
    • (a) the total investment amount in the project, and

    • (b) the total of the maximum allowable investment amounts for each charging station, in accordance with the table in subsection (2);

    B
    is $20,000; and
    C
    is the proportion of the company’s investment in the project, as compared to the total investment in the project, expressed as a percentage of the total investment.
  • Marginal note:Date of units

    (4) A company creates charging station units with respect to a registered project on the day on which the end of model year report for the model year in question is submitted.

  • Marginal note:Banking or transfer

    (5) A company may bank all or some of the charging station units created with respect to the registered project and transfer all or some of them to another company.

  • Marginal note:Cancellation of charging station units

    (6) The Minister must cancel

    • (a) in respect of each charging station of the registered project that does not comply with any of subparagraph 30.18(f)(ii) to (vi), those charging station units created with respect to the station; and

    • (b) in respect of the cancellation of the registration of a project under section 30.20, all units created with respect to that project.

  • Marginal note:End of validity

    (7) Charging station units are no longer valid after the day on which the company submits its end of model year report for the 2030 model year.

Reports

Marginal note:2011 model year report

  •  (1) A company must submit to the Minister a report for the end of model year for the 2011 model year signed by a person who is authorized to act on behalf of the company no later than May 1, 2012.

  • Marginal note:Content of report

    (2) Subject to subsection (3), the end of model year 2011 model year report must contain the following information:

    • (a) in respect of each of the company’s fleets of the 2011 model year,

      • (i) the fleet average CO2 equivalent emission standard, calculated in accordance with section 16, and expressed in grams per mile,

      • (ii) the fleet average carbon-related exhaust emission value, calculated in accordance with subsection 18.1(1), and the values and data used in the calculation of that value,

      • (iii) the total number of advanced technology vehicles included in the fleet for calculating the fleet average carbon-related exhaust emission value,

      • (iv) the number of credits or deficits, calculated in accordance with subsection 20(3) and, if applicable, the number of available credits adjusted in accordance with subsection 21(4),

      • (v) the information set out in paragraphs 33(2)(g), (j) to (o), (q), (r) and (t),

      • (vi) if applicable, a statement that the company has elected to exclude from its fleets the passenger automobiles or light trucks that it manufactures or imports and that will be used in Canada solely for the purposes of exhibition, demonstration, evaluation or testing,

      • (vii) if applicable, a statement that the company has elected to include in its fleets all of its passenger automobiles or light trucks of the 2011 model year,

      • (viii) if applicable, a statement that the company has elected to exclude all emergency vehicles from its fleets of passenger automobiles or light trucks, and

      • (ix) if any, the number of CO2 emission credits and early action credits that are used to offset a deficit incurred in respect of the fleets, as well as their identification by fleet of origin and model year; and

    • (b) in respect of its fleets of the 2008 to 2010 model years, the total number of early action credits calculated in accordance with subsection 29(1), and, if applicable, the number of available early action credits adjusted in accordance with subsection 29(8) for both fleets of those model years; and

    • (c) the total number of advanced technology vehicles included for the fleets of the 2008 to 2010 model years in the calculation conducted for the purposes of section 29.

  • Marginal note:Reporting early action credits

    (3) In order to obtain early action credits under section 29 or 30 in respect of its fleets of the 2008 to 2010 model years, a company must also include in its 2011 model year report the following information in respect of each of the 2008 to 2010 model years and each fleet:

    • (a) the number of credits or deficits calculated in accordance with subsection 20(3);

    • (b) the fleet average CO2 equivalent emission standard used in the calculation of the number of credits or deficits;

    • (c) the fleet average CO2 equivalent emission value, calculated in accordance with section 18;

    • (d) the fleet average carbon-related exhaust emission value, calculated in accordance with subsection 18.1(2);

    • (e) the total number of vehicles in the fleet;

    • (f) the carbon-related exhaust emission value for each model type in the fleet, calculated in accordance with subsection 18.1(2), and all the values and data used in the calculation of that value;

    • (g) the number of vehicles of each model type;

    • (h) if the company calculates an allowance referred to in subsection 18.2(1), the value of the allowance for the fleet and, for each air conditioning system,

      • (i) a description of the system,

      • (ii) the CO2 equivalent leakage reduction, calculated in accordance with that subsection, and all the values and data used in the calculation of the reduction, and

      • (iii) the total number of vehicles in the fleet that are equipped with the system;

    • (i) if the company calculates an allowance referred to in subsection 18.2(2), the value of the allowance for the fleet and, for each air conditioning system,

      • (i) a description of the system,

      • (ii) the air conditioning efficiency allowance, calculated in accordance with that subsection, and all the values and data used in the calculation of the allowance, and

      • (iii) the total number of vehicles in the fleet that are equipped with the system;

    • (j) if the company calculates an allowance referred to in subsection 18.3(5), the value of the allowance for the fleet and, for each innovative technology,

      • (i) a description of the technology,

      • (ii) the allowance for each innovative technology, determined in accordance with that subsection and, if applicable, subsection 18.3(6), and the values and data used in the calculation of the allowance, and

      • (iii) the total number of vehicles in the fleet that are equipped with the technology; and

    • (k) if applicable, evidence of the EPA approval referred to in subsection 18.3(6).

  • SOR/2014-207, ss. 17, 23, 24
 

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