# Guidance document for subfleet averaging and reporting for on-road motorcycles: chapter 6

## 6. HC+NOx Emission Credits and Deficits

### 6.1 What are HC+NOx emission credits?

HC+NOx emission credits are obtained when a company's average HC+NOx emission value for its subfleet of Class III motorcycles of a given model year is lower than the applicable HC+NOx emission standard and the company reports the credits in its end of model year report. This is set out in subsection 32.4(1) of the Regulations.

### 6.2 What is an HC+NOx emission deficit?

An HC+NOx emission deficit occurs when a company's average HC+NOx emission value for its subfleet of Class I and Class II motorcycles of a given model year is higher than the applicable HC+NOx emission standard. This is set out in subsection 32.5(1) of the Regulations.

### 6.3 How are HC+NOx emission credits and deficit calculated?

As set out in subsection 32.4(2) of the Regulations, HC+NOx emission credits for the subfleet of Class III motorcycles, expressed in vehicle-grams, are calculated in accordance with the following equation:

(A − B) × C × D [3]

where

A   represents the applicable HC+NOx emission standard for the subfleet;
B   represents the average HC+NOx value for the subfleet;
C   represents the total number of motorcycles in the subfleet; and
D   represents the useful life expressed in kilometres.

An HC+NOx emission deficit for the subfleet of Class I and Class II motorcycles is also calculated using the above formula. However, the calculation is performed by calculating the sum of individual credits/deficit of each of the classes IA, IB and II. This distinction is required since the useful life for each class of motorcycles is different. This is set out in subsection 32.5(2) of the Regulations.

### 6.4 Are there provisions respecting the procedures for rounding the calculated credits/deficit?

Yes. As specified in subsection 32.4(2) of the Regulations, the emission credits for Class III motorcycles and the emission deficit for Class I and Class II motorcycles must be rounded to the nearest whole number.

Furthermore, consistent with the definition of “rounded” in section 1 of the Regulations, all rounding must be performed in accordance with method ASTM-E29-93a of the American Society for Testing and Materials.

### 6.5 When are HC+NOx emission credits obtained?

HC+NOx emission credits for a specific model year are credited on the last day of the model year, as provided in subsection 32.4(3) of the Regulations. Pursuant to section 5 of the Regulations, the last day of a given model year can not be later than December 31 of that year.

### 6.6 What can a company do with the HC+NOx emission credits that it has obtained for its subfleet of Class III motorcycles in a given model year?

HC+NOx emission credits obtained by a company for its subfleet of Class III motorcycles in a given model year may only be used to offset an HC+NOx emission deficit that the company incurred in the same model year for its subfleet of Class I and Class II motorcycles as set out in subsection 32.4(3).

### 6.7 Can a company obtain HC+NOx emission credits for its subfleet of Class I and Class II motorcycles if the average HC+NOx emission value is below the applicable standard?

No. A company is only allowed to generate HC+NOx emission credits when its subfleet of Class III motorcycles achieves an average emission value lower than the applicable HC+NOx emission standard.

### 6.8 Can emission credits be banked for future model years or traded to other companies?

No. HC+NOx emission credits for Class III motorcycles can only be used in the same model year that they were obtained and by the company that obtained them.

### 6.9 Is a company always required to calculate HC+NOx emission credits for its subfleets?

No. A company is only required to calculate the HC+NOx emission credits for its subfleet of Class III motorcycles when it is required to compensate for a deficit incurred in its subfleet of Class I and Class II motorcycles (i.e., when the average HC+NOx value for the subfleet of Class I and Class II motorcycles is above the applicable HC+NOx emission standard).