4. Summary of Company Fleet Average NOx Emission Performance

• 4.1 Scope of Company Reports
• 4.2 Company Fleet Average NO_x Values for the 2004 Model Year
• 4.3 Emission Credits/Deficits for the 2004 Model Year
• 4.4 End of Model Year Balance of Emission Credits/Deficits

Table 3 presents a summary of the companies that submitted a fleet average NO_x report for the 2004 model year in accordance with the requirements of the Regulations, including the vehicle divisions and the number of tests groups⁷ covered by the company reports.

A total of twenty-one companies submitted reports covering 2004 model year vehicles in 310 test groups.

Tables 4 and 5 summarize the total number of vehicles and average NO_x values for each company's fleets of LDV/LLDT and HLDT/Medium-duty passenger vehicles">MDPV, respectively.

Although the Regulations came in effect on January 1, 2004, the Regulations give companies the option of including all of their 2004 model year vehicles, including those manufactured before January 1, 2004, in the fleet average calculations or only those manufactured after January 1, 2004. All companies elected to report on the basis of all of their 2004 model year vehicles. In addition, Land Rover Canada, Toyota Canada Inc. and Volkswagen Canada Inc. reported vehicles for a limited number of heavy light-duty trucks (HLDT) test groups certified to Tier 1 standards. This is consistent with U.S. EPA Tier 2 provisions for heavy light-duty trucks of the 2004 model year whose model year commenced before December 21, 2003. These vehicles are not included in the fleet average value calculations for the 2004 model year.

The company average NO_x values ranged from 0.14703 grams/mile to 0.32947 grams/mile for LDV/LLDT and 0.20230 grams/mile to 0.6000 grams/mile for HLDT/Medium-duty passenger vehicles">MDPV. The calculated average NO_x values for three of the twenty-one companies LDV/LLDT fleet are above the average NO_x standard of 0.25 grams/mile. One company also reported an average NO_x value for HLDT/Medium-duty passenger vehicles">MDPV fleet above the average NO_x standard of 0.53 grams/mile. Average NO_x values above the applicable average NO_x standard for a given fleet are generally attributed to one or more of the following reasons:

1. Fleet contains a very limited number of vehicles. The U.S. EPA exempts "small-volume" manufacturers from the requirements of the fleet average NO_x program during the phase-in period. For example, a "small-volume" manufacturer's fleet of light-duty vehicles and light light-duty trucks is subject to a fleet average NO_x standard of 0.3 grams/mile for 2004-2006, and then subject to a fleet average NO_x standard of 0.07 grams/mile in 2007. In Canada, there is no such provision. A company can, however, elect to exclude U.S. certified vehicles that are sold concurrently in both countries from the mandatory fleet average standard in Canada.
2. Fleet includes a substantial number of diesel-fuelled vehicles. It is recognized that achieving low NO_x levels, particularly pending the availability of low sulphur diesel in 2006 that will enable the use of sophisticated emission control technologies, represents a greater technical challenge for diesel-fuelled vehicles. Diesel engines, however, typically produce lower emissions of volatile organic compounds (VOCs), carbon monoxide (CO) and carbon dioxide (CO₂) relative to comparable gasoline-fuelled vehicles.
3. Average NO_x value of only one of the fleet is above the average NO_x standard. A company can average values from the LDV/LLDT and HLDT/Medium-duty passenger vehicles">MDPV fleets to satisfy the requirements of the average NO_x emission program in Canada.

Ferrari North America Inc., Land Rover Canada, Mitsubishi Motor Sales of Canada Inc., Maserati North America Inc. and Volkswagen Canada Inc. elected to exclude their group of vehicles that were sold concurrently in Canada and the U.S. from compliance with the fleet average NO_x standard, which effectively applies to their entire fleets of the 2004 model year vehicles. As all of their group of vehicles satisfy the applicable restrictions, fleet average NO_x values from those companies were reported in this section for information purposes only, but do not generate any emission credits/deficits in Section 4.3.

Table 6 summarizes the emission credits earned by each company for the 2004 model year. Companies that elected to exclude their group of vehicles from compliance with the fleet average NO_x standard or that did not report vehicles for a particular fleet are assigned "0" credits/deficits.

Notes:

• A negative "-" sign indicates a deficit.
• ¹ The company elected to exclude their group of vehicles from compliance with the fleet average NO_x standard.
• ² The company's fleet did not have any vehicles for the applicable class.

A total of 95,416 credits were earned for the 2004 model year. None of the companies reported an overall deficit for the 2004 model year, although one company used credits from one of its fleet to offset a NO_x emission deficit from the other fleet.

Table 7 shows all activity relating to credits for the 2004 model year.

Note:

• ¹ The company elected to exclude their group of vehicles from compliance with the fleet average NO_x standard.

As this is the first year that the fleet averaging provisions are in effect, no credits were available from previous years to be applied to this model year. While trading of emission credits between companies was permitted, no trading was reported for the 2004 model year. Credits generated in the 2004 model year may be used to offset deficits in future years.

⁷ A test group is the basic classification unit for the purpose of demonstrating compliance with exhaust emission standards and comprises light-duty vehicles, light-duty trucks or medium-duty passenger vehicles having similar exhaust emission performance and that share all of the features described in section 1827, subchapter C, part 86 of the CFR.