5. Averaging Requirements

The planned regulations will establish fleet average emission requirements with the objective of creating a regulatory framework that will achieve a Canadian fleet emission performance comparable with the U.S.

Under the planned regulations, the term "fleet" will refer to vehicles and engines of a specific model year that a company manufactures in Canada and/or imports into Canada for sale in Canada. There will be separate fleets for each type of recreational vehicle and for marine engines and emission credits cannot be exchanged between a company's fleets. Therefore emission credits from a company's fleet of snowmobiles cannot be used to offset an emission deficit from the same company's fleet of outboard and personal watercraft engines. Section 5.2 will describe how a company can offset an emission deficit.

The methods of calculating fleet average values and emission credits will be consistent with those set out in the U.S. Code of Federal Regulations. However these equations have been modified to be consistent with the planned regulatory framework which will be similar to the one developed for the On-Road Vehicle and Engine Emission Regulations.

The U.S. rule for marine spark-ignition engines includes only a single equation for calculating emission credits. This equation was simplified by curve fitting and adapted to the planned regulatory framework requiring equations for the fleet average emission value and the fleet average standard. The resulting equations are in a form consistent with the averaging equations for recreational vehicles that are also intended to be included in the planned regulations.

The variables (described in section 5.1) are given single-letter names to make the equations easier to incorporate into a bilingual text. Appendix B describes the modifications and demonstrates that the equations in the U.S. Code of Federal Regulations and the modified version of those equations for the planned regulations are equivalent.

The following equations will be part of the regulatory framework for averaging:

A equals the summation of the product of Wi Yi Zi for i equal to 1 to TOT divided by the summation of the product of  Yi Zi for i = 1 to TOT
A equals the summation of the product of Wi Yi Zi for i equal to 1 to TOT divided by the summation of the product of  Yi Zi for i = 1 to TOT
credits equals the product of the difference between A and B and the summation of Yi Zi for i equal to 1 to TOT

As shown in Table 3, all engines or vehicles in a given fleet can be arranged into one of six categories (identified as A to F in the table) according to the answer to each of the following questions:

Table 3: Categories of engines and vehicles for averaging purposes
Is the vehicle or engine covered by an EPA certificate and sold concurrently in the U.S.? Are the vehicle or engine emissions below the applicable standards? Is the quantity of vehicles or engines of the same model sold in Canada less than in the U.S.?
A yes yes yes
B yes yes no
C yes no yes
D yes no no
E no yes n/a
F no no n/a

When calculating values required to meet the averaging requirements, the planned regulations will allow a company

Figure 1 illustrates the framework for averaging. Based on its vehicles and engines sales, a company will determine its sales-weighted "fleet average standard" and calculate its sales-weighted "fleet average emission value" for each applicable emission (HC, HC+NOx, CO, and evaporative permeation, as the case may be). Based on these two values, the emission credits for the fleet will then be calculated.

Positive emission credits obtained in a specific model year may be used by the company to offset a future deficit or may be transferred to another company. Negative emission credits (or deficits) must be off-set by using previously accumulated credits or by obtaining credits from another company. Emission credits (or deficits) are obtained by applicable emissions from a given fleet.

The planned regulations will require companies to report their fleet averages and emission credits at the end of each model year.

Framework for averaging

Long description for figure 1.

16 The value A does not need to be calculated for a fleet of snowmobiles, off-highway motorcycles or all-terrain vehicles as the emission standard is obtained directly from the emission standard table applicable to the model year and the type of vehicle in the fleet.

17 Family emission limit represents an emission level that is declared by the manufacturer for certification purposes for a given engine family.

18 For vehicles that have standards in g/kW-hr and a useful life in km, the useful life is converted to kW-hr based on the maximum power output and an assumed vehicle speed of 30 km/hr

Useful Life in kiloWatt-hours is equal to the Useful Life in kilometers multiplied by the quotient of maximum power in kilometers divided by 30 kilometers per hour.

For evaporative permeation standards expressed in g/m2/day, the useful life expressed in years is multiplied by 365.24 days.

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