Revised Draft on the Proposed Regulation Amending the On-Road Vehicule and Engine Emission Regulations

1.(1) The definition "motorcycle" in subsection 1(1) of the On-Road Vehicle and Engine Emission Regulations¹ is replaced by the following:

"motorcycle" means an on-road vehicle with a headlight, taillight and stoplight that has two or three wheels and a curb weight of 793 kg (1,749 pounds) or less. (motocyclette)

(2) Subsection 1(1) of the Regulations is amended by adding the following in alphabetical order:

"Class I motorcycle" means a motorcycle having an engine displacement of less than 170 cm³. (motocyclette de classe I)

"Class II motorcycle" means a motorcycle having an engine displacement of 170 cm³ or more but less than 280 cm³. (motocyclette de classe II)

"Class III motorcycle" means a motorcycle having an engine displacement of 280 cm³ or more. (motocyclette de classe III)

"HC+NO_x" means the sum of the hydrocarbon and oxides of nitrogen exhaust emissions. (HC+NO_x)

2. The Regulations are amended by adding the following after section 2:

BACKGROUND

2.1 These Regulations set out

1. prescribed classes of on-road vehicles and engines for the purposes of section 149 of the Act;
2. requirements respecting the conformity of on-road vehicles and engines with emission standards for the purposes of sections 153 and 154 of the Act; and
3. other requirements for carrying out the purposes of Division 5, Part 7 of the Act.

3. The portion of section 9 of the French version of the Regulations before paragraph (a) is replaced by the following:

9. L'entreprise peut apposer la marque nationale sur les véhicules ou moteurs dont l'assemblage principal ou la fabrication, selon le cas, a été terminé avant le 1^er janvier 2004, si les conditions suivantes sont réunies :

4. Paragraphs 11(1)(a) and (b) of the English version of the Regulations are replaced by the following:

1. in its operation, release a substance that causes air pollution and that would not have been released if the system were not installed; or
2. in its operation or malfunction, make the vehicle unsafe or endanger persons or property in or near the vehicle.

5. Section 17 of the Regulations is replaced by the following:

17. Subject to sections 17.1, 19 and 32.2, motorcycles of a specific model year

1. shall conform to the exhaust and evaporative emission standards applicable to motorcycles of that model year set out in section 410, subpart E, of the CFR; and
2. shall not release any crankcase emissions.

17.1 (1) A company that manufactures or imports fewer than 200 motorcycles for sale in Canada per year and has fewer than 500 employees worldwide is exempt from the requirement to conform to the HC+NO_x emission standard set out in the section of the CFR that is referred to in paragraph 17(a) in respect of its Class III motorcycles of the 2006 and 2007 model years that conform to the hydrocarbon emission standard referred to in that section and applicable to 2005 model year motorcycles.

(2) A company that manufactures or imports fewer than 200 motorcycles for sale in Canada per year and has fewer than 500 employees worldwide is exempt from the requirement to conform to the HC+NO_x emission standard set out in the section of the CFR that is referred to in paragraph 17(a) in respect of its Class III motorcycles of the 2010 and later model years that conform to the HC+NO_x emission standard referred to in that section and applicable to 2009 model year motorcycles.

(3) A company that manufactures or imports fewer than 200 motorcycles for sale in Canada per year and having fewer than 500 employees worldwide is exempt from the requirement to conform to the applicable evaporative emission standards set out in the section of the CFR that is referred to in paragraph 17(a) in respect of its 2008 and 2009 model year motorcycles.

6. The heading "FLEET AVERAGING REQUIREMENTS" before section 20 of the Regulations is replaced by the following:

FLEET AVERAGING REQUIREMENTS FOR LIGHT-DUTY VEHICLES, LIGHT-DUTY TRUCKS AND MEDIUM-DUTY PASSENGER VEHICLES

7. Section 28 of the Regulations is replaced by the following:

28. Subject to section 31, if a company's average NO_x value in respect of a fleet of a specific model year is higher than the fleet average NO_x standard for that model year, the company shall calculate the negative number that is the value of a NO_x emission deficit incurred in that model year using the formula set out in subsection 26(2).

8. (1) Subsection 31(1) of the Regulations is replaced by the following:

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) The portion of subsection 31(7) of the French version of the Regulations before paragraph (a) is replaced by the following:

(7) Si l'entreprise fait le choix prévu au paragraphe (1) et que la valeur moyenne de NO_x pour le groupe en cause, calculée en application de l'alinéa (4)a), dépasse la norme moyenne de NO_x qui s'appliquerait au parc selon les articles 21, 22 ou 23 :

(3) Subsection 31(8) of the French version of the Regulations is replaced by the following:

(8) L'entreprise ne peut faire le choix prévu au paragraphe (1) pour une année de modèle au cours de laquelle elle a transféré des points relatifs aux émissions de NO_x à une autre entreprise si la valeur moyenne de NO_x pour le groupe, calculée en application de l'alinéa (4)a), dépasse la norme moyenne de NO_x qui s'appliquerait au parc selon les articles 21, 22 ou 23.

9. The Regulations are amended by adding the following after section 32:

SUBFLEET AVERAGING REQUIREMENTS FOR MOTORCYCLES

General

32.1 The following definitions apply in this section and sections 32.2 to 32.7 and 37.1.

"engine family" means

1. in respect of a company's motorcycles that are covered by an EPA certificate, the classification unit for which the EPA certificate was issued; and
2. in respect of any other of the company's motorcycles, the classification unit determined in accordance with section 420, subpart E, of the CFR. (famille de moteurs)

"family emission limit" means the maximum emission level established by a company for an engine family for the purpose of emissions averaging. (limite d'émissions de la famille de moteurs)

"fuel tank permeation emissions" means evaporative emissions resulting from permeation of fuel through the fuel tank materials. (émissions par perméation du réservoir de carburant)

"subfleet" means motorcycles of a specific model year that have a family emission limit and that a company manufactures in Canada, or imports into Canada, for the purpose of sale to the first retail purchaser. Each of the following groupings of motorcycles constitutes a subfleet for the purpose of emissions averaging:

1. in respect of the applicable HC+NO_x emission standard for all Class I and Class II motorcycles;
2. in respect of the applicable HC+NO_x emission standard for all Class III motorcycles;
3. in respect of the fuel tank permeation emission standard for all motorcycles with a non-metal fuel tank. (sous-parc)

32.2 (1) Subject to subsection (2), any motorcycle that does not conform to the applicable HC+NO_x emission standard or fuel tank permeation emission standard set out in the section of the CFR that is referred to in paragraph 17(a) shall conform, as the case may be, to:

1. the applicable family emission limit for HC+NO_xemissions; or
2. the family emission limit for fuel tank permeation emissions.

(2) In any model year, the HC+NO_x family emission limit applicable to a motorcycle shall not exceed the applicable family emission limit cap set out in section 449, subpart E, of the CFR.

(3) In any model year, a company's subfleet may include motorcycles that conform to a family emission limit that is greater than the applicable HC+NO_x emission standard set out in the section of the CFR that is referred to in paragraph 17(a) or subsection 17.1(2) or the fuel tank permeation emission standard set out in that section if

1. each motorcycle of a subfleet is covered by an EPA certificate, each motorcycle conforms to the family emission limit referred to in the EPA certificate and belongs to an engine family of which the total number of units sold in Canada does not exceed the total number of units sold in the United States; or
2. in respect of a subfleet that contains motorcycles that do not meet all of the criteria set out in paragraph (a), the average HC+NO_x value or the average fuel tank permeation value, as the case may be, does not exceed the applicable HC+NO_x emission standard set out in the section of the CFR that is referred to in paragraph 17(a) or subsection 17.1(2) or the fuel tank permeation emission standard set out in that section, in respect of
   
   
   1. the subfleet, or
   2. the group of motorcycles within the subfleet that do not meet all of the criteria set out in paragraph (a).

Calculation of Subfleet Average Emission Values

32.3 (1) If a company's subfleet includes one or more motorcycles that conform to a family emission limit that is greater than the applicable HC+NO_x emission standard set out in the section of the CFR that is referred to in paragraph 17(a) or subsection 17.1(2), the company shall calculate the average HC+NO_x value for the subfleet using the following formula:

[Σ (A x B x C)] / [Σ (B x C)]

where

1. A is the applicable family emission limit, expressed to the same number of decimal places as the emission standard it replaced;
   
2. B is the useful life of the engine family expressed in years or kilometres; and
   
3. C is the number of motorcycles in the engine family.

(2) If a company's subfleet includes one or more motorcycles that conform to a family emission limit that is greater than the fuel tank permeation emission standard set out in the section of the CFR that is referred to in paragraph 17(a), the company shall calculate the average fuel tank permeation value for its subfleet in accordance with the following formula:

[Σ (A x B x C x 365.24)] / [Σ (B x C x 365.24)]

where

1. A is the applicable family emission limit, expressed to the same number of decimal places as the emission standard it replaced;
   
2. B is the useful life of the engine family expressed in years; and
   
3. C is the number of motorcycles in the engine family multiplied by the average internal surface area of the motorcycles' fuel tanks, where the average internal surface area is expressed in m² to at least three decimal places.

(3) The average HC+NO_x value and average fuel tank permeation value for a subfleet shall be expressed in g/km and g/m²/d, respectively, and be rounded to one decimal place.

(4) When calculating the average HC+NO_x value for a subfleet of the 2006 model year, a company may include all of its motorcycles of that model year, including those manufactured before the coming into force of this section.

Emission Credits for Class III Motorcycles

32.4 (1) A company shall obtain HC+NO_x emission credits in relation to a specific model year if

1. the average HC+NO_x value in respect of a subfleet of Class III motorcycles of that model year is lower than the applicable HC+NO_x emission standard for that class and model year; and
2. the company reports the credits in its end of model year report.

(2) The HC+NO_x emission credits, expressed in units of vehicle-grams, shall be calculated using the following formula, rounded to the nearest whole number:

(A - B) x C x D

where

1. A is the applicable HC+NO_x emission standard for the subfleet;
   
2. B is the average HC+NO_x value for the subfleet;
   
3. C is the total number of motorcycles in the subfleet; and
   
4. D is the useful life expressed in kilometres.

(3) The HC+NO_x emission credits for a specific model year are credited on the last day of that model year and may only be used by a company to offset an HC+NO_x emission deficit that it incurred in the same model year as calculated in section 32.5.

Emission Deficits for Class I and Class II Motorcycles

32.5 (1) If a company's average HC+NO_x value in respect of a subfleet of Class I and Class II motorcycles of a model year is higher than the applicable HC+NO_x emission standard, the company shall calculate the value of the emission deficit it incurred in that model year.

(2) The HC+NO_x emission deficit for a subfleet of Class I and Class II motorcycles of a model year is the sum of the credits or deficits that would be generated for each class of motorcycle within the subfleet calculated using the formula set out in subsection 32.4(2), with any necessary modifications.

32.6 (1) A company shall offset an HC+NO_x emission deficit in the model year in which the deficit was incurred, no later than the day on which the company submits its end of model year report.

(2) A company shall offset an HC+NO_x emission deficit with an equivalent number of HC+NO_x emission credits obtained in the same model year in accordance with section 32.4.

End of Model Year Reports

32.7 (1) A company shall submit to the Minister an end of model year report, signed by a person who is authorized to act on behalf of the company, no later than May 1 after the end of each model year.

(2) A company shall include in its end of model year report a statement that

1. each of Classes I, II and III motorcycles, as the case may be, conforms to the applicable exhaust and evaporative emission standards set out in the section of the CFR that is referred to in paragraph 17(a) or section 17.1; and
2. in respect of each subfleet, as the case may be,
   
   
   1. each motorcycle in the subfleet meets all of the criteria set out in paragraph 32.2(3)(a), or
   2. the subfleet contains motorcycles that do not meet all of the criteria set out in paragraph 32.2(3)(a), but the subfleet conforms to the emissions averaging requirements set out in paragraph 32.2(3)(b), or the group of motorcycles referred to in subparagraph 32.2(3)(b)(ii) conforms to the emissions averaging requirements set out in paragraph 32.2(3)(b).

(3) In a model year during which any of the company's subfleets includes one or more motorcycles that conform to a family emission limit that is greater than the applicable HC+NO_x emission standard set out in the section of the CFR that is referred to in paragraph 17(a) or subsection 17.1(2) or the fuel tank permeation emission standard set out that section, the end of model year report shall contain the following information in respect of each subfleet:

1. the applicable HC+NO_x emission standard and the fuel tank permeation emission standard;
2. the average HC+NO_x value and the average fuel tank permeation value;
3. for each model of motorcycle, the values used in calculating the average HC+NO_x value and the average fuel tank permeation value;
4. the total number of motorcycles in the subfleet;
5. the HC+NO_x emission credits, if any, in that model year; and
6. the HC+NO_x emission deficits, if any, in that model year.

(4) If the company's end of model year report contains the statement referred to in subparagraph (2)(b)(ii) in respect of a group of motorcycles, the report shall also contain the information required under paragraphs (3)(a) to (d), with any necessary modifications, with respect to the group of motorcycles described in subparagraph 32.2(3)(b)(ii).

(5) A company that avails itself of an exemption referred to in section 17.1 shall include in its end of model year report

1. the number and class of motorcycles that it manufactured or imported under each exemption;
2. the total number of motorcycles that it manufactured or imported for sale in Canada during the model year; and
3. the number of employees of the company worldwide.

10. (1) The portion of subsection 33(1) of the French version of the Regulations before paragraph (a) is replaced by the following:

33. (1) L'entreprise veille à ce que soient fournies au premier usager de chaque véhicule des instructions écrites concernant l'entretien relatif aux émissions qui sont conformes aux instructions d'entretien données pour l'année de modèle en question :

(2) Subsection 33(2) of the French version of the Regulations is replaced by the following:

(2) Les instructions sont fournies en français, en anglais ou dans les deux langues officielles, suivant la demande de l'usager.

11. Section 36 of the Regulations is replaced by the following:

36. (1) For the purpose of paragraph 153(1)(b) of the Act, a company shall obtain and produce evidence of conformity for a vehicle or engine other than one referred to in section 35 in a form and manner satisfactory to the Minister instead of as specified in that section.

(2) For greater certainty, a company shall submit the evidence of conformity to the Minister before importing a vehicle or engine or applying a national emissions mark to it.

36.1 For greater certainty, a company that imports a vehicle or engine or applies a national emissions mark to it under subsection 153(2) of the Act is not required to provide the evidence of conformity referred to in subsection 36(1) to the Minister before importing it or applying a national emissions mark to it, but must provide that evidence in accordance with subsection 153(2) before the vehicle or engine leaves the possession or control of the company and, in the case of a vehicle, before it is presented for registration under the laws of a province or an aboriginal government.

12. The heading before section 37 of the Regulations is replaced by the following:

Fleet Average NO_x Records for Light-Duty Vehicles, Light-Duty Trucks and Medium-Duty Passenger Vehicles

13. The Regulations are amended by adding the following after section 37:

Records Concerning Subfleet Average Emission Values for Motorcycles

37.1 A company shall maintain records containing the following information for each of its subfleets of motorcycles:

1. the model year;
2. all values used in calculating the average HC+NO_xvalues and average fuel tank permeation values reported in its end of model year report; and
3. for each motorcycle in the subfleet,
   
   
   1. the model,
   2. the name and street address of the plant where it was assembled,
   3. its vehicle identification number, and
   4. the name and street or mailing address of the first purchaser in Canada.

14. Subsection 38(1) of the Regulations is amended by striking out the word "and" at the end of paragraph (a) and by replacing paragraph (b) with the following:

1. for light-duty vehicles, light-duty trucks and medium-duty passenger vehicles, in respect of each model year, the records referred to in section 37 and a copy of its end of model year report under section 32, for a period of eight years after the end of the model year; and
2. for motorcycles, in respect of each model year, the records referred to in section 37.1 and a copy of its end of model year report under section 32.7, for a period of three years after the due date of the end of model year report.

15. Subsection 44(1) of the Regulations is amended by adding the word "and" at the end of paragraph (e), by striking out the word "and" at the end of paragraph (f) and by repealing paragraph (g).

16. (1) Subject to subsection (2), these Regulations come into force on the day on which they are registered.

(2) Subsection 1(1) comes into force on December 1, 2006.

¹ SOR/2003-2