On-Road Vehicle and Engine Emission Regulations

31 (1) Subject to subsections (2), (3) and (8), a company may elect to exclude the group of vehicles in a fleet that are covered by an EPA certificate and that are sold concurrently in Canada and the United States from the requirement to meet the standards set out in section 21, 22 or 23, as the case may be, and from the NO_x emission deficit calculations in respect of a fleet under section 28.

(2) For greater certainty and subject to subsection (3), a company shall include in the group referred to in subsection (1) all of the vehicles of a fleet that are covered by an EPA certificate and that are sold concurrently in Canada and the United States.

(3) A company shall not include in the group referred to in subsection (1) any vehicle that is covered by an EPA certificate and

• (a) in respect of which the total number of units sold in Canada exceeds the total number of units sold in the United States that are covered by the same EPA certificate; and

• (b) that conforms to a full useful life emission bin having a NOx standard that is greater than the applicable fleet average NOx standard for the model year in respect of which the election is made.

(4) Subject to subsection (5), if a company makes an election under subsection (1), it shall calculate an average NOx value in accordance with section 24, with the necessary modifications, in respect of

• (a) the group that is subject to the election; and

• (b) the vehicles in the fleet that are not part of the group referred to in paragraph (a), if any.

(5) A company may elect not to make the calculations referred to in subsection (4) for a group of vehicles described in paragraph (4)(a) or (b) if every vehicle in the group conforms to a full useful life emission bin having a NOx standard equal to or less than the fleet average NOx standard that would otherwise apply under section 21, 22 or 23, as the case may be.

(6) If a company makes an election under subsection (5) the average NOx emission value for the group of vehicles of a fleet for which the election was made shall be the applicable fleet average NOx standard.

(7) If a company makes the election referred to in subsection (1) and the average NOx value for the group that is subject to the election, calculated under paragraph (4)(a) exceeds the fleet average NOx standard that would otherwise apply under section 21, 22 or 23, as the case may be, the company shall

• (a) forfeit any NOx emission credits obtained in previous model years; and

• (b) not obtain any NOx emission credits in the model year in respect of which the election was made.

(8) A company may not make the election referred to in subsection (1) in respect of a model year in which it has transferred NOx emission credits to another company if the average NOx value calculated under paragraph (4)(a) for the group that is subject to the election exceeds the fleet average NOx standard that would otherwise apply under section 21, 22 or 23, as the case may be.