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

ZEV Value for Combined Fleet

Marginal note:Calculation of ZEV value

• 30.13 (1) A company must calculate, for the 2026 model year and subsequent model years, the ZEV value of its combined fleet using the following formula:

  (A ÷ B) + C

  where

  A

  is the total number of electric vehicles and fuel cell vehicles in the combined fleet;

  B

  is the total number of automobiles in the combined fleet; and

  C

  is, with respect to plug-in hybrid electric vehicles, the lesser of the following results:

  • (a) the contribution of these plug-in hybrid electric vehicles to the actual performance of a company’s combined fleet with respect to zero-emission vehicles, calculated using the following formula:

    (0.15 × A + 0.75 × B + C + D + 0.75 × E + F + 0.75 × G + H) ÷ I

    where

    A

    is, for the 2026 model year, 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, for the 2026 model year, 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, for the 2026 model year, 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, for the 2026 model year, the total number of plug-in hybrid electric vehicles in the combined fleet with an all-electric driving range of at least 65 km,

    E

    is, for the 2027 model year, 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 79 km,

    F

    is, for the 2027 model year, 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 79 km,

    G

    is, for the 2028 model year, the total number of plug-in hybrid electric vehicles in the combined fleet with an all-electric driving range of at least 50 km and not more than 79 km,

    H

    is, for the 2027 and subsequent model years, the total number of plug-in hybrid electric vehicles in the combined fleet with an all-electric driving range of at least 80 km, and

    I

    is the total number of automobiles in the combined fleet, and

  • (b) the allowable portion of the contribution of these plug-in hybrid electric vehicles to the ZEV requirement for a company’s combined fleet, calculated using the following formula:

    A × B

    where

    A

    is the ZEV requirement for the model year in question, and

    B

    is the allowable portion of that ZEV requirement, set out in column 2 of the following table, for the model year set out in column 1:

  Item	Column 1	Column 2
  	Model year	Allowable portion of ZEV requirement
  1	2026	0.45
  2	2027	0.30
  3	2028 and subsequent	0.20

• Marginal note:All-electric driving range

  (2) For the purposes of subsection (1), the all-electric driving range is calculated using the following formula, rounded to the nearest whole number or, if the number is equidistant between two consecutive whole numbers, to the higher number:

  A × 0.7

  where

  A

  is the actual charge-depleting range in kilometres, determined in accordance with section 311(j)(4)(i) of Title 40, chapter I, subchapter Q, part 600, subpart D of the CFR, rounded to the nearest tenth of a unit or, if the number is equidistant between two consecutive tenths of a unit, to the higher tenth.

Compliance Unit or Deficit System

Marginal note:Obtaining units

• 30.14 (1) As of the 2026 model year, a company obtains compliance units in respect of its combined fleet if its ZEV value is greater than the ZEV requirement for the model year in question and the company reports the compliance units in its end of model year report.

• Marginal note:Deficits

  (2) As of the 2026 model year, a company incurs a deficit in respect of its combined fleet if its ZEV value is less than the ZEV requirement for the model year in question.

• Marginal note:Calculation

  (3) A company must calculate the compliance units or deficit for its combined fleet of a given model year using the following formula:

  (A − B) × C

  where

  A

  is the ZEV value of its combined fleet of the model year;

  B

  is the ZEV requirement for the model year; and

  C

  is the total number of automobiles in the combined fleet.

• Marginal note:Date of units or deficit

  (4) A company obtains compliance units or incurs a deficit in respect of its combined fleet on the day on which the end of model year report for the model year in question is submitted.

• Marginal note:Use of units — time limit

  (5) Compliance units obtained for a combined fleet of any of the 2026 to 2034 model years may be used to offset a deficit incurred in respect of any combined fleet of up to three model years before the model year for which those units were obtained and, at the latest, of the earlier of

  • (a) the fifth model year after the model year for which the units were obtained; and

  • (b) the 2034 model year.

• Marginal note:End of validity

  (6) Compliance units are no longer valid after the day on which the company submits its end of model year report for the 2035 model year.

Offsetting Deficits and Use of Units

Marginal note:Deficits

• 30.15 (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

• 30.16 (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.