Appendix 1: Scenario Analysis: Fleet Average NOx Emissions in Canada - Conclusions

The objectives of the Regulations are to continue to align Canadian emission standards with those of the U.S. and to achieve Canadian vehicle emission performance comparable with that of the U.S, which has the strictest national emission standards in the world.

The vast majority of vehicles sold in Canada will be designed to meet the 0.07 g/mi fleet average NOx standard in the U.S. The preceding analysis shows that, when these vehicles are sold concurrently in the U.S. and Canada, a similar but not identical fleet average will occur in Canada, both fleet-wide and on a per company basis. The U.S. program serves as an anchor for the Canadian fleet average provided that there are safeguards in place to prevent any systematic manipulation of the fleet of U.S. certified vehicles sold in Canada.

Taking into account the integrated nature of the North American automobile manufacturing industry and the expected composition of the future Canadian fleet, the analysis shows that the Canadian fleet averaging program can achieve a Canadian fleet emission performance that will be very close to that of the U. S. while providing the flexibility to accommodate legitimate differences between the two markets.