Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations

Marginal note:Allowance for certain innovative technologies

• 18.3 (1) Subject to subsections (3) and (3.1), a company may elect to calculate an allowance for the use, in its fleet of the 2014 model year and subsequent model years, of innovative technologies that result in a measurable CO₂ emission reduction and that are referred to in section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR, using the following formula:

  (Σ (A × B)) ÷ C

  where

  A

  is the allowance for each of those technologies that is used in the fleet, determined in accordance with section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, of the CFR and expressed in grams of CO₂ per mile;

  B

  is the number of passenger automobiles or light trucks in the fleet that are equipped with the innovative technology; and

  C

  is the total number of passenger automobiles or light trucks in the fleet.

• Marginal note:Alternative procedure

  (2) Instead of determining the allowance for each innovative technology that is used in the fleet in accordance with the description of A in subsection (1), a company may

  • (a) determine that allowance in accordance with the provisions for the 5-cycle methodology set out in section 1869(c) of Title 40, chapter I, subchapter C, part 86, of the CFR, expressed in grams of CO₂ per mile;

  • (b) use the credit value approved by the EPA for that technology under section 1869(e) of Title 40, chapter I, subchapter C, part 86, of the CFR, expressed in grams of CO₂ per mile, if the company provides the Minister with evidence of that approval in its end of model year report; or

  • (c) determine that allowance in accordance with an alternative procedure, if the company provides the Minister with evidence demonstrating that the alternative procedure allows for a more accurate determination of the emission reduction attributable to the innovative technology and that the allowance determined in accordance with that procedure more accurately represents that emission reduction.

• Marginal note:Maximum allowance — certain innovative technologies

  (3) If, for one of the 2014 to 2022 model years, the 2027 model year or any subsequent model year, the total of the allowances for innovative technologies that a company elects to determine, for a single vehicle, in accordance with the description of A in subsection (1) is greater than 10 grams of CO₂ per mile, the company must calculate, using the following formula, the allowance for the use, in its fleet of passenger automobiles or light trucks of that model year, of innovative technologies that result in a measurable CO₂ emission reduction and that are referred to in section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR:

  ( Σ (A × B)) ÷ C

  where

  A

  is the allowance for each innovative technology for which an allowance is determined for the purposes of subsection (4);

  B

  is the number of passenger automobiles or light trucks that are equipped with the innovative technology that is used for the purposes of subsection (4); and

  C

  is the total number of passenger automobiles or light trucks in the fleet.

• Marginal note:Maximum allowance for 2023 to 2026 model years — certain innovative technologies

  (3.1) If, for a model year of the 2023 to 2026 model years, the total of the allowances for innovative technologies that a company elects to determine, for a single vehicle, in accordance with the description of A in subsection (1) is greater than 15 grams of CO₂ per mile, the company must calculate, using the formula set out in subsection (3), the allowance for the use, in its fleet of passenger automobiles or light trucks of that model year, of innovative technologies that result in a measurable CO₂ emission reduction and that are referred to in section 1869(b)(1) of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR.

• Marginal note:Adjustment

  (4) For the purposes of subsections (3) and (3.1), the company must perform the following calculation and ensure that the result does not exceed 10 or 15 grams of CO₂ per mile, respectively:

  $\frac{(\Sigma \; (A\; \times {\mathrm{B}}_{\mathrm{a}})\; \times \; 195,264)\; +\; (\Sigma \; (A\; \times {\mathrm{B}}_{\mathrm{t}})\; \times \; 225,865)}{(\Sigma {\mathrm{C}}_{\mathrm{a}}\times \; 195,264)\; +\; (\Sigma {\mathrm{C}}_{\mathrm{t}}\times \; 225,865)}$

  where

  A

  is the allowance for each innovative technology that is used in the fleet and that the company decides to take into account, determined in accordance with subsection (1);

  B_a

  is the number of passenger automobiles in the fleet that are equipped with the innovative technology in question and that the company decides to take into account;

  B_t

  is the number of light trucks in the fleet that are equipped with the innovative technology in question and that the company decides to take into account;

  C_a

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

  C_t

  is the total number of light trucks in the fleet.

• Marginal note:Allowance for innovative technologies

  (5) A company may elect to calculate, using the following formula, an allowance for the use, in its fleet of passenger automobiles or light trucks, of innovative technologies — other than those referred to in subsection (1) — that result in a measurable CO₂ emission reduction:

  (Σ (A × B)) ÷ C

  where

  A

  is the allowance for each innovative technology that is used in the fleet, determined in accordance with the provisions for the 5-cycle methodology set out in section 1869(c) of Title 40, chapter I, subchapter C, part 86, of the CFR and expressed in grams of CO₂ per mile;

  B

  is the number of passenger automobiles or light trucks in the fleet that are equipped with the innovative technology; and

  C

  is the total number of passenger automobiles or light trucks in the fleet.

• Marginal note:Alternative procedure to the 5-cycle methodology

  (6) If the 5-cycle methodology referred to in subsection (5) cannot adequately measure the emission reduction attributable to an innovative technology, a company may, instead of determining the allowance for the innovative technology in accordance with the description of A in subsection (5),

  • (a) use the credit value approved by the EPA for that technology under section 1869(e) of Title 40, chapter I, subchapter C, part 86, of the CFR, expressed in grams of CO₂ per mile, if the company provides the Minister with evidence of the EPA approval in its end of model year report; or

  • (b) determine that allowance in accordance with an alternative procedure, if the company provides the Minister with evidence demonstrating that the alternative procedure allows for a more accurate determination of the emission reduction attributable to the innovative technology and that the allowance determined in accordance with that procedure more accurately represent that emission reduction.