Motor Vehicle Fuel Consumption Standards Act — M-9 16
Applications for exemption from fuel consumption standard 16 (1) On application by a company in the prescribed form and containing the prescribed information, the Governor in Council may, by order, in respect of up to three years, (a) exempt from a fuel consumption standard up to one thousand motor vehicles per year manufactured by a manufacturer whose world production was less than ten thousand motor vehicles in the second year preceding the year in respect of which the application for exemption is made, if the Governor in Council is of the opinion that it would not be desirable to have the fuel consumption standard apply to those motor vehicles; and (b) exempt from a fuel consumption standard any or all vehicles manufactured or imported by a company, where the Governor in Council is of the opinion that compliance with the fuel consumption standard would (i) create substantial financial hardship for the company, or (ii) prevent the development of new kinds of motor vehicles. New fuel consumption standard may be imposed (2) The Governor in Council may, by order, in respect of a company that has been granted an exemption under subsection (1), impose a new fuel consumption standard applicable to the motor vehicles exempted under that subsection. Effect of exemption (3) Where all the motor vehicles manufactured or imported by a company are exempted under paragraph (1)(a) or (b) and no new fuel consumption standard is imposed under subsection (2), sections 11 to 15 do not apply in respect of that company. Idem (4) Where all the motor vehicles manufactured or imported by a company are exempted under paragraph (1)(a) or (b) and a new fuel consumption standard is imposed under subsection (2), sections 11 to 15 apply in respect of that company, but a reference in subsection 11(1) or (2) to “fuel consumption standard” shall be read as a reference to the new fuel consumption standard imposed under subsection (2). Idem (5) Where some but not all of the motor vehicles manufactured or imported by a company are exempted under paragraph (1)(a) or (b), then (a) the Minister shall calculate, in respect of that company, in the same manner as he would calculate the company average fuel consumption, (i) a partial company average fuel consumption, based on the motor vehicles other than those exempted, and (ii) where applicable, a second partial company average fuel consumption, based on the exempted vehicles for which a new fuel consumption standard has been imposed under subsection (2); (b) a penalty under subsection 11(2) shall be calculated on the basis of the partial company average fuel consumption described in subparagraph (a)(i); and (c) where a new fuel consumption standard has been imposed under subsection (2) and the partial company average fuel consumption described in subparagraph (a)(ii) exceeds that new fuel consumption standard, (i) the Minister shall issue an assessment against the company imposing a penalty, subject to subsection (6), equal to the product obtained by multiplying (A) one dollar for every one-hundredth of a litre per one hundred kilometres by which that partial company average fuel consumption exceeds the new fuel consumption standard by (B) the aggregate number of motor vehicles to which the new fuel consumption standard applies, and (ii) subsections 11(3) and (4) and sections 12 to 15 apply, with such modifications as the circumstances require, in respect of a penalty imposed under subparagraph (i). Maximum penalty (6) A penalty imposed under subparagraph (5)(c)(i) shall not exceed the penalty that would have been imposed had no exemption been granted under subsection (1). 1980-81-82-83, c. 113, s. 16