Offsetting Deficits and Use of Credits
21. (1) Subject to subsection (5), 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.
Marginal note:Remaining credits
(2) A company may bank any remaining credits to offset a future deficit or may transfer the remaining credits to another company, except during the 2012 to 2015 and if applicable, 2016 model years if the company elects to create a temporary optional fleet under section 24.
(3) Subject to subsection (4), a company may offset a deficit with an equivalent number of credits obtained in accordance with section 20 or with an equivalent number of credits transferred from another company.
(4) The number of credits obtained in respect of fleets of the 2011 model year that contain alcohol dual fuel vehicles or natural gas dual fuel vehicles and that are available to offset a deficit incurred in respect of a fleet of passenger automobiles or light trucks of the 2012 or subsequent model years must be adjusted with the assumption that all alcohol dual fuel vehicles and natural gas dual fuel vehicles operate only on gasoline or diesel fuel.
Marginal note:Offset — time limit
(5) A company must offset a deficit incurred in respect of a model year 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.
Marginal note:Purchased or merged companies
22. (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.
Marginal note: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 outstanding deficits for its fleets.
Obtention of Credits upon Payment to the Receiver General
Marginal note:Receiver General — 2011 model year
23. (1) Upon payment to the Receiver General, a company may obtain the necessary number of credits to offset a deficit incurred for the 2011 model year at a rate of $20 per megagram of CO2 equivalent.
Marginal note:Payment date to Receiver General
(2) To obtain the credits under subsection (1), a company must make the payment no later than the day preceding the earlier of:
(a) the date of submission of the end of model year report for model year 2014; and
(b) May 1, 2015.
(3) The credits obtained by a company under subsection (1) can only be used to offset a deficit incurred for the 2011 model year and cannot be transferred to another company.
- Date modified: