Toyota 2015 Annual Report Download - page 41

In January 2012, the CARB approved a new Low Emission Vehicle program for model years 2015 to 2025
as part of Advanced Clean Cars. The program covers greenhouse gas standards for cars and light-duty trucks,
reductions of smog-forming emissions, zero-emission vehicles regulations and clean fuels outlet regulations.
Other States’ Standards
The states of New York, Massachusetts, Connecticut, Maine, Maryland, New Jersey, Oregon, Rhode Island
and Vermont have either adopted, or plan to adopt, regulations substantially similar to California’s zero-emission
vehicles requirement. With regard to greenhouse gas emissions regulations, in addition to these states,
Pennsylvania and Washington have also adopted California’s regulations.
Canadian Standards
Canada has established vehicle emission standards equivalent to the federal standards in the United States,
including the heightened requirements that became applicable to passenger vehicles and light-duty trucks in
model years 2004 and beyond. In addition, in response to the strengthening of the federal greenhouse gas
emission standards in the United States applicable to model years 2017 to 2025, Canada finalized equivalent
standards in October 2014. Furthermore, certain Canadian provinces are currently considering enacting their own
regulations on vehicle emissions of greenhouse gases. Canada also adopted more stringent fuel legislation, which
is based on fuel legislation in the United States, that reduces refineries’ annual average sulfur concentration of
gasoline to 10 mg/kg from 2017 with a new addition of credit system to secure compliance.
European Standards
The European Union adopted a directive that establishes increasingly stringent emission standards for
passenger vehicles and light commercial vehicles in October 1998. Under this directive, the standards adopted
beginning with year 2000 require manufacturers to recall any vehicles which fail to meet the standards for
five years or 80 thousand kilometers, whichever occurs first. Toyota introduced vehicles complying with this
directive in 1999. Under standards adopted in 2005, manufacturers are obligated to meet the more stringent
standards for five years or total vehicle miles of 100 thousand kilometers, whichever occurs first. In 2007, the
European Parliament adopted more stringent emission standards for passenger vehicles and light commercial
vehicles. The effective dates for phasing in these stricter standards for passenger vehicles were September 2009
for Euro 5 and September 2014 for Euro 6. For light commercial vehicles, the effective dates are September 2010
for Euro 5 and September 2015 for Euro 6. Euro 5 provides for lower emission levels for gasoline and diesel
powered vehicles and also extends the manufacturers’ responsibility for emission performance to total vehicle
miles of 160 thousand kilometers. The primary focus of Euro 6 is to limit further emissions of diesel powered
vehicles and bring them down to a level equivalent to gasoline powered vehicles. In addition, Euro 6 will be
implemented in two stages, and beginning with the second stage (September 2017 for passenger vehicles and
September 2018 for commercial vehicles), the EU is implementing the Real Driving Emission (RDE)
regulations, which regulate emissions under real driving conditions, and the Worldwide harmonized Light
vehicles Test Procedure (WLTP). A second RDE package of regulations establishing quantitative limits for
emissions in RDE tests was approved by the European Parliament and Council in February 2016.
Chinese Standards
Emissions regulations are being implemented throughout China pursuant to the Chinese National Standards
(GB) of the Ministry of Environmental Protection of the People’s Republic of China, and the manufacture and
sale of models not meeting these regulations are prohibited.
For passenger vehicles, pursuant to GB18352.3-2005, Level 3 Emissions Regulations (corresponding to
Euro 3 standards) apply to new models after July 2007 and Level 4 Emissions Regulations (corresponding to
Euro 4 standards) apply to new models after July 2010. New models after July 2008 are also required to be
36