§ 1037.705 - Generating and calculating CO2 emission credits.

§ 1037.705 Generating and calculating CO₂ emission credits.

Cross Reference

Link to an amendment published at 89 FR 29789, Apr. 22, 2024.

(a) The provisions of this section apply separately for calculating CO₂ emission credits for each pollutant.

(b) For each participating family or subfamily, calculate positive or negative emission credits relative to the otherwise applicable emission standard. Calculate positive emission credits for a family or subfamily that has an FEL below the standard. Calculate negative emission credits for a family or subfamily that has an FEL above the standard. Sum your positive and negative credits for the model year before rounding. Round the sum of emission credits to the nearest megagram (Mg), using consistent units with the following equation:

Emission credits (Mg) = (Std−FEL) × · PL × · Volume × · UL × · 10⁻⁶

Eq. 1037.705-1

Where:

Std = the emission standard associated with the specific regulatory subcategory (g/ton-mile).

FEL = the family emission limit for the vehicle subfamily (g/ton-mile).

PL = standard payload, in tons.

Volume = U.S.-directed production volume of the vehicle subfamily, subject to the exclusions described in paragraph (c) of this section. For example, if you produce three configurations with the same FEL, the subfamily production volume would be the sum of the production volumes for these three configurations.

UL = useful life of the vehicle, in miles, as described in §§ 1037.105 and 1037.106. Use 250,000 miles for trailers.

(c) As described in § 1037.730, compliance Compliance with the requirements of this subpart is determined at the end of the model year by calculating emission credits based on actual U.S.-directed production volumes. Keep appropriate records to document these production volumes. Do not include production volumes, excluding any of the following vehicles to calculate emission credits:

(1) Vehicles that you do not certify to the CO₂ standards of this part because they are permanently exempted under subpart G of this part or under 40 CFR part 1068.

(2) Exported vehicles , even if they are certified under this part and labeled accordingly.

(3) Vehicles not subject to the requirements of this part, such as those excluded under § 1037.5.

(4) Any other vehicles, where we indicate elsewhere in this part 1037 that they are not to be included in the calculations of this subpart.

[81 FR 74048, Oct. 25, 2016, as amended at 86 FR 34491, June 29, 2021; 88 FR 4653, Jan. 24, 2023; 89 FR 29789, Apr. 22, 2024]