SEMARNAT PUBLISHES THE PARAMETERS FOR CALCULATING CARBON DIOXIDE EMISSIONS BY LIGHT MODEL-YEAR 2018 AUTOMOBILES WITH WEIGHT NOT EXCEEDING 3,847 KILOGRAMS, USING DIESEL OR GASOLINE AS FUEL.

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SEMARNAT PUBLISHES THE PARAMETERS FOR CALCULATING CARBON DIOXIDE EMISSIONS BY LIGHT MODEL-YEAR 2018 AUTOMOBILES WITH WEIGHT NOT EXCEEDING 3,847 KILOGRAMS, USING DIESEL OR GASOLINE AS FUEL

On January 23rd, 2018, the Ministry of Environment and Natural Resources (“SEMARNAT”) published in the Federal Official Gazette (“DOF”) the Official Communication regarding the standards that must be used to measure the CO² produced by new light automobiles that weigh 3,847 kilograms or less, use gasoline or diesel as fuel, are traded in Mexico, and are model-year 2018 (“Official Communication”).

The Official Communication establishes that, vehicles with model-year 2018 (“vehicles 2018”) must comply with the terms established for vehicles model-year 2016, as set forth in NOM-163-SEMARNAT-ENER-SCFI-2013 (“NOM-163”), to obtain the compliance certificate or “NOM Certificate”.

In this regard, the Official Communication establishes the following dates:

1. 31 January 2018

As established in the NOM-163; Corporations have the possibility to obtain Credits for Anticipated Efforts (“Credits”), which are favorable considerations during the Certification process, and which may even be exchanged among Corporations, if they are not used or are remaining after the evaluation of the compliance with NOM-163 of the vehicles 2018.

Corporations can pursue such Credits by submitting a Technology Introduction Program before the Mexican Environmental Authorities, to evidence the achievement of any of the following situations:

1. Introducing highly efficient technologies:  in this case, credits are granted for offering or producing in Mexico vehicles 2018 that are hybrid, hybrid plug-in, electric, or any other vehicle that ensure a saving of at least 20% CO²
2. Air conditioning improvements: credits are granted for introducing more efficient technologies of air conditioning systems; such as those that improve the fuel performance, higher hermeticity, or even the substitution of refrigerant gases with less global warming potential.
3. Introduction of technology: credits granted for the implementation of programs that reduce the CO² emissions and increase the performance of the vehicles; among others: six speeds or more transmissions, direct injection fuel engines, start/stop systems, regenerative brakes, etc.
4. 30 April 2019

In such date, the Corporations must submit before PROFEPA or any certification entity the Annual Report of Information, as established in section 7.2.4 of NOM-163, with the purpose of obtaining the NOM Certificate.

The ​​Environmental Practice of the firm will be pleased to provide any additional information.

Sincerely,

Mexico City, January 26, 2018