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

Regulations are current to 2024-05-14 and last amended on 2022-10-03. Previous Versions

Greenhouse Gas Emission Standards (continued)

CO2 Emission Credit System — Vehicles and Engines (continued)

[
  • SOR/2018-98, s. 37
]

Additional Credits (continued)

Marginal note:Credit multipliers — 2021 to 2027 model years

 A company that obtains credits under section 35 for its heavy-duty vehicles of the 2021 to 2027 model years that are plug-in hybrid vehicles, electric vehicles or fuel cell vehicles may multiply the number of credits obtained for those vehicles by the following number:

  • (a) 4 in the case of plug-in hybrid vehicles;

  • (b) 5 in the case of electric vehicles; and

  • (c) 5.5 in the case of fuel cell vehicles.

  • SOR/2018-98, s. 44

Marginal note:Innovative technologies

  •  (1) A company may obtain additional credits, expressed in megagrams of CO2, for its fleet or subfleet, as the case may be, of heavy-duty vehicles or heavy-duty engines for the use of innovative technologies by

    • (a) in the case of Class 2B and Class 3 heavy-duty vehicles and cab-complete vehicles, excluding those that are vocational vehicles or incomplete vocational vehicles, using the following formula:

      (A × B × C) ÷ (1 000 000)

      where

      A
      is the five-cycle credit value determined in accordance with section 1869(c) of Title 40, chapter I, subchapter C, part 86, subpart S, of the CFR, and expressed in grams of CO2 per mile,
      B
      is the number of vehicles manufactured with the innovative technology in question in the fleet, and
      C
      is the useful life of the vehicles of the fleet, expressed in miles;
    • (b) in the case of vocational vehicles and incomplete vocational vehicles, or tractors and incomplete tractors, either

      • (i) by using the following formula:

        ((A – B) × C × D × E) ÷ (1 000 000)

        where

        (A – B)
        is the difference between the in-use emission rate of the vehicle manufactured without the innovative technology and the in-use emission rate of the vehicle manufactured with the innovative technology and determined in accordance with section 610(c) of Title 40, chapter I, subchapter U, part 1037, subpart G, of the CFR, expressed in grams of CO2 per short ton-mile,
        C
        is the number of vehicles manufactured with the innovative technology in question in the fleet or subfleet, as the case may be,
        D
        is the payload for the class of vehicles, which is
        • (A) 2.85 short tons for vocational vehicles that are light heavy-duty vehicles and incomplete vocational vehicles that are to become light heavy-duty vehicles,

        • (B) 5.6 short tons for vocational vehicles that are medium heavy-duty vehicles and incomplete vocational vehicles that are to becomes medium heavy-duty vehicles,

        • (C) 7.5 short tons for vocational vehicles that are heavy heavy-duty vehicles and incomplete vocational vehicles that are to become heavy heavy-duty vehicles,

        • (D) 12.5 short tons for Class 7 tractors and incomplete tractors,

        • (E) 19 short tons for Class 8 tractors and incomplete tractors of the 2020 model year or an earlier model year and for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of less than 54 431 kg (120,000 pounds), and

        • (F) 43 short tons for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of 54 431 kg (120,000 pounds) or more, and

        E
        is the useful life of the vehicles of the fleet or subfleet, as the case may be, expressed in miles, or
      • (ii) by substituting the result obtained in accordance with paragraph 35(1)(b) or (c), as the case may be, with the result obtained in accordance with one of the following formulas, whichever applies:

        • (A) for vocational vehicles and incomplete vocational vehicles:

          ([A – (B × C)] × D × E × F) ÷ (1 000 000)

          where

          A
          is the CO2 emission standard under subsection 26(1) or (1.1) that applies to the vocational vehicles and incomplete vocational vehicles of the fleet or subfleet, as the case may be, expressed in grams of CO2 per short ton-mile,
          B
          is the CO2 family emission limit for the fleet or subfleet, as the case may be, expressed in grams of CO2 per short ton-mile,
          C
          is the improvement factor calculated in accordance with sections 610(b)(1) and (c) of Title 40, chapter I, subchapter U, part 1037, subpart G, of the CFR, for the fleet or subfleet, as the case may be, of vocational vehicles and incomplete vocational vehicles or, in the case of vocational vehicles and incomplete vocational vehicles of the 2018 to 2020 model years, is the applicable improvement factor set out in section 150(y)(2) of Title 40, chapter I, subchapter U, part 1037, subpart B, of the CFR, for the fleet or subfleet, as the case may be,
          D
          is the payload for the class of vocational vehicles and incomplete vocational vehicles, which is
          • (I) 2.85 short tons for vocational vehicles that are light heavy-duty vehicles and incomplete vocational vehicles that are to become light heavy-duty vehicles,

          • (II) 5.6 short tons for vocational vehicles that are medium heavy-duty vehicles and incomplete vocational vehicles that are to become medium heavy-duty vehicles, and

          • (III) 7.5 short tons for vocational vehicles that are heavy heavy-duty vehicles and incomplete vocational vehicles that are to become heavy heavy-duty vehicles,

          E
          is the number of vocational vehicles and incomplete vocational vehicles manufactured with the innovative technology in question in the fleet or subfleet, as the case may be, and
          F
          is the useful life of the vehicles of the fleet or subfleet, as the case may be, expressed in miles, or
        • (B) for tractors and incomplete tractors:

          ([A – (B × C)] × D × E × F) ÷ (1 000 000)

          where

          A
          is the CO2 emission standard under subsection 27(1), (1.1) or (1.2) that applies to the tractors and incomplete tractors of the fleet or subfleet, as the case may be, expressed in grams of CO2 per short ton-mile,
          B
          is the CO2 family emission limit for the fleet or subfleet, as the case may be, expressed in grams of CO2 per short ton-mile,
          C
          is the improvement factor calculated in accordance with sections 610(b)(1) and (c) of Title 40, chapter I, subchapter U, part 1037, subpart G, of the CFR, for the fleet or subfleet, as the case may be, of tractors and incomplete tractors or, in the case of tractors and incomplete tractors of the 2018 to 2020 model years, is the applicable improvement factor set out in section 150(y)(2)(i) of Title 40, chapter I, subchapter U, part 1037, subpart B, of the CFR, for the fleet or subfleet, as the case may be,
          D
          is the payload for the class of tractors, which is
          • (I) 12.5 short tons for Class 7 tractors or incomplete tractors,

          • (II) 19 short tons for Class 8 tractors and incomplete tractors of the 2020 model year or an earlier model year and for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of less than 54 431 kg (120,000 pounds), and

          • (III) 43 short tons for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of 54 431 kg (120,000 pounds) or more,

          E
          is the number of tractors and incomplete tractors manufactured with the innovative technology in question in the fleet or subfleet, as the case may be, and
          F
          is the useful life of the tractors or incomplete tractors of the fleet or subfleet, as the case may be, expressed in miles; or
    • (c) in the case of heavy-duty engines,

      • (i) by using the following formula for engines tested on a chassis:

        ((A – B) × C × D × E) ÷ (1 000 000)

        where

        (A – B)
        is the difference between the in-use emission rate of the engine manufactured without the innovative technology and the in-use emission rate of the engine manufactured with the innovative technology, determined in accordance with chassis A to B testing or in-use A to B testing of pairs of vehicles equipped with the engines differing only with respect to the innovative technology in question, and expressed in grams of CO2 per short ton-mile,
        C
        is the number of vocational vehicles, incomplete vocational vehicles, tractors or incomplete tractors with engines manufactured with the innovative technology in the fleet,
        D
        is the payload, if applicable, for the class of vehicles, which is
        • (A) 2.85 short tons for vocational vehicles that are light heavy-duty vehicles and incomplete vocational vehicles that are to become light heavy-duty vehicles,

        • (B) 5.6 short tons for vocational vehicles that are medium heavy-duty vehicles and incomplete vocational vehicles that are to become medium heavy-duty vehicles,

        • (C) 7.5 short tons for vocational vehicles that are heavy heavy-duty vehicles and incomplete vocational vehicles that are to become heavy heavy-duty vehicles,

        • (D) 12.5 short tons for Class 7 tractors and incomplete tractors,

        • (E) 19 short tons for Class 8 tractors and incomplete tractors of the 2020 model year or an earlier model year and for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of less than 54 431 kg (120,000 pounds), and

        • (F) 43 short tons for Class 8 tractors and incomplete tractors of the 2021 model year or a subsequent model year that have a GCWR of 54 431 kg (120,000 pounds) or more, and

        E
        is the useful life of the vehicles of the fleet, expressed in miles,
      • (ii) by using the following formula for engines tested on an engine dynamometer:

        ((A – B) × C × D × E) ÷ (1 000 000)

        where

        (A – B)
        is the difference between the in-use emission rate of the engine manufactured without the innovative technology and the in-use emission rate of the engine manufactured with the innovative technology, determined in accordance with engine dynamometer A to B testing of pairs of engines differing only with respect to the innovative technology in question and expressed in grams of CO2 per brake horsepower-hour,
        C
        is the transient cycle conversion factor calculated in accordance with the applicable variable “CF” in section 705(b) of Title 40, chapter I, subchapter U, part 1036, subpart H, of the CFR, except that a reference to “production volumes” in that section must be read as a reference to “number of engines of that engine family that a company imports or manufactures in Canada for the purpose of sale in Canada to the first retail purchaser”,
        D
        is the number of engines manufactured with the innovative technology in the fleet,
        E
        is the useful life of the engines of the fleet, expressed in miles, or
      • (iii) by substituting the result obtained in accordance with paragraph 35(1)(d) with the result determined in accordance with the following formula:

        ([A – (B × C)] × D × E × F) ÷ (1 000 000)

        where

        A
        is the CO2 emission standard that applies to the fleet of heavy-duty engines under section 30 or subsection 31(2), as the case may be, expressed in grams of CO2 per brake horsepower-hour,
        B
        is the CO2 family certification level for the fleet, subject to subsection 35(3), expressed in grams of CO2 per brake horsepower-hour,
        C
        is the improvement factor calculated in accordance with section 610(b)(1) of Title 40, chapter I, subchapter U, part 1036, subpart G, of the CFR, based on results of A to B testing, chassis A to B testing or in-use A to B testing of pairs of engines using an engine dynamometer or of pairs of vehicles equipped with the engines in question, as the case may be, differing only with respect to the innovative technology in question,
        D
        is the transient cycle conversion factor calculated in accordance with the applicable variable “CF” in section 705(b) of Title 40, chapter I, subchapter U, part 1036, subpart H, of the CFR, except that a reference to “production volumes” in that section must be read as a reference to “number of engines of that engine family that a company imports or manufactures in Canada for the purpose of sale in Canada to the first retail purchaser”,
        E
        is the number of engines manufactured with the innovative technology in the fleet, and
        F
        is the useful life of the engines of the fleet, expressed in miles.
  • Marginal note:Calculation — alternative procedure

    (2) If the five-cycle credit value referred to in the description of A in the formula set out in paragraph (1)(a) cannot adequately measure the emission reduction attributable to an innovative technology, the company may calculate that five-cycle credit value using the alternative procedure set out in section 1869(d) of Title 40, chapter I, subchapter C, part 86, of the CFR, if

    • (a) in the case of a vehicle that is covered by an EPA certificate, the alternative procedure has been approved by the EPA for that technology and the company provides the Minister with evidence of the EPA approval; or

    • (b) in the case of a vehicle that is not covered by an EPA certificate, the company provides the Minister with evidence demonstrating that the alternative procedure provides a more representative benefit for that technology.

  • SOR/2018-98, ss. 45, 60, 61

Averaging Sets

Marginal note:Calculation

 The credits or deficits for each averaging set of heavy-duty vehicles or heavy-duty engines are calculated by adding the credits obtained and deficits incurred for all fleets and, if applicable, subfleets of that averaging set. The credits and deficits must be added together before rounding and the result must be rounded to the nearest megagram of CO2.

  • SOR/2018-98, s. 46

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 limitations

  •  (1) For the purposes of section 45, credits obtained by a company for an averaging set of heavy-duty vehicles or heavy-duty engines of a given model year may be used only in respect of the same averaging set of heavy-duty vehicles or heavy-duty engines of

    • (a) a model year that is up to three model years before the model year for which the credits are obtained; or

    • (b) a model year that is up to five model years after the model year for which the credits are obtained.

  • Marginal note:Election — subsection 26(1.2)

    (2) Paragraph (1)(b) does not apply in the case of vocational vehicles in respect of which a company has made the election referred to in subsection 26(1.2).

  • Marginal note:Exception — heavy-duty vehicles

    (3) Despite paragraph (1)(b), credits obtained by a company for an averaging set of vocational vehicles that are light heavy-duty vehicles or medium heavy-duty vehicles of the 2018 to 2021 model years may be used only in respect of the same averaging set of heavy-duty vehicles of any subsequent model year, ending with the 2027 model year.

  • Marginal note:Exception — heavy-duty engines

    (4) Despite paragraph (1)(b), credits obtained by a company for an averaging set of medium heavy-duty engines or heavy heavy-duty engines of the 2018 to 2024 model years may be used only in respect of the same averaging set of heavy-duty engines of any subsequent model year, ending with the 2030 model year.

  • SOR/2018-98, s. 47

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) Except in the case of an averaging set of vocational vehicles in respect of which a company has made the election referred to in subsection 26(1.2), 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:Credit multiplier

    (2.1) Credits obtained by a company for any of the averaging sets of the 2016 to 2020 model years referred to in paragraph (a) or (b) that are used to offset a deficit incurred for the same averaging set of the 2021 model year or a subsequent model year may be multiplied by

    • (a) 1.36, in the case of the averaging sets referred to in paragraph (b), (e) or (f) of the definition averaging set in subsection 1(1); and

    • (b) 1.25, in the case of the averaging set referred to in paragraph (a) of the definition averaging set in subsection 1(1).

  • 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.

  • SOR/2018-98, s. 48
 

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