Reply to Comments Received on the proposed Off-Road Compression-Ignition Engine Emission Regulations

Transportation Systems Branch
Environment Canada
November 2004

In May 2004, Environment Canada published the Off-Road Compression-Ignition Engine Emission Regulations1 in the Canada Gazette Part I. This document provides a detailed summary of the comments received from stakeholders and provides Environment Canada's responses.

Please note that the information contained in this document, and in particular that which relates to the contents of the revised draft Regulations, is subject to change pending final approval. Once final approval is received, the Regulations will be published in Part II of the Canada Gazette.

The comments received are divided into two subsections: broad policy-related questions, and technical questions related to interpretation of the proposed Regulations or editorial suggestions regarding the regulatory text.

Submissions on the proposed Regulations were received from:

  1. Hudson Bay Mining and Smelting Co., Limited
  2. Quebec Cartier Mining Company
  3. Frontier Equipment Ltd.
  4. Toyota Canada Inc.
  5. Manufacturers of Emission Controls Association (MECA)
  6. Engine Manufacturers Association (EMA)
  7. Canadian Trucking Alliance
  8. Toronto Community & Neighbourhood Services
  9. B. McDowell Equipment Ltd.

Comments from Quebec Cartier Mining Company were translated from French.

Alignment with and reference to U.S. EPA Emission Standards

The comments reaffirm support from respondents for Canada to align emission standards with the corresponding U.S. standards. The proposed Regulations incorporate by reference where possible the applicable technical standards contained in the U.S. Code of Federal Regulations.

Regulatory versus non-regulatory approach

Division 5, Part 7 of CEPA 1999 (Vehicle, Engine and Equipment Emissions) does not provide Environment Canada with the authority to regulate emissions from the rail and commercial marine sectors.

Regulation of Marine and Locomotive Engines
Exemption of competition engines

We also support initiating a rulemaking in the future to set standards to further reduce emissions from locomotives and marine vessels. We believe with the availability of 15 ppm sulfur fuel and with adequate lead-time significant emission reductions from these categories could be achieved using advanced emission control technology." [5]

For the marine sector, new international regulations have been finalized by the International Maritime Organization in Annex VI of MARPOL, the International Convention for the Prevention of Pollution from Ships, and will come into force in May 2005. Annex VI, entitled "Regulations for the Prevention of Air Pollution from Ships," includes standards to limit the sulphur content of marine fuel oils and NOx emission standards from marine engines. Transport Canada is developing domestic regulations to align with these international standards, allowing Canada to ratify the MARPOL annex.

For the rail sector, the Railway Association of Canada (RAC) entered into a Memorandum of Understanding with Environment Canada regarding locomotive emissions. Under the MOU, the RAC agreed to publish annual total locomotive emissions in Canada and to uphold a voluntary cap of 115 kilotonnes on NOx emissions produced by its member companies. The MOU remains in effect to December 2005. Environment Canada, Transport Canada and the RAC have initiated discussions towards a new agreement aimed at reaching emission reductions equivalent to those that would be achieved if standards aligned with those of the U.S. EPA were in effect in Canada.

Delay coming into force of Regulations until 2009

Quebec Cartier Mining Company initially expressed concerns regarding the operability of engines in cold climates and the increased operational costs upon the company's competitiveness. During follow-up discussions the company requested a delay to 2009 for implementation of emission standards for 750 hp and larger engines to ensure adequate lead time to field test such engines.

No changes have been made to the Regulations.

Should technical information indicating a problem become available, the Canadian Environmental Protection Act, 1999 (CEPA 1999) enables a company to apply to the Governor in Council to be granted an exemption from any standards prescribed under the Regulations. Under section 156 of CEPA 1999, an exemption from any prescribed standards will be granted only if, in the opinion of the Governor in Council, conformity with that standard would:

With regard to the cost estimates, as discussed in the Regulatory Impact Analysis Statement, in 1998, the U.S. EPA estimated price increases for off-road diesel engines designed to meet the corresponding U.S. Tier 2 and 3 standards of about 0.5 to 3 percent for some power ranges. Most engines sold in Canada are already certified to U.S. EPA standards and therefore this is reflected in Canadian prices. Price increases due to this regulation are expected to be minimal.

Adoption of Tier 4 standards

The February 2001 Federal Agenda on Cleaner Vehicles, Engines and Fuels sets out Canada's policy to develop emission standards aligned with the U.S. federal emission standards. Environment Canada plans to propose alignment with the EPA Tier 4 (2008) engine emission standards through a separate regulatory process.

Environment Canada proposed amendments to the Sulphur in Diesel Fuel Regulations to regulate sulphur levels for off-road diesel fuel in alignment with U.S. EPA levels and as necessary to support engine emission control technologies.

Low-sulphur diesel fuel for the rail and marine sectors

The proposed Regulations Amending the Sulphur in Diesel Fuel Regulations include limits on the sulphur content of diesel fuel for rail and marine applications, with the level and timing aligned with EPA requirements.

Prescribed classes of engines (Section 5)

New engines designed exclusively for use in underground mines are exempt from the Regulations. Provincial requirements govern the use of diesel engines used in underground mines.

National emissions mark (Section 6)

Companies are only required to apply the national emissions mark to prescribed engines that are manufactured in Canada for sale in Canada.

Replacement engines (Section 12)

Section 12 has been modified to enable alternative standards in the case of a replacement engine if there is no current model year engine with the physical or performance characteristics necessary for the operation of the machine available from the original engine manufacturer or the manufacturer offering the replacement engine.

Labelling requirements (Sections 13 and 24)

The references within subsections 13(4) and 24(1) of the proposed Regulations to labelling requirements of subsections 7(3) and (4) incorporate only the visibility and durability requirements.

No change is being made to the labelling requirements.

Importation requirements and documents (Section 19)

The Regulations do not specify importation documentation. The required information corresponds to information provided on a commercial invoice submitted at the time of importation. A company may add the statement of conformity onto their commercial invoice. This should reduce the administrative burden on both importers and the government by eliminating the need to create and submit additional forms.

Environment Canada is working with the Canada Border Services Agency to ensure a smooth transition once the Regulations come into force.

The Department is preparing a guidance document for the Regulations.

The Regulations include a provision (section 16) enabling a company to demonstrate compliance through a valid EPA certificate of conformity.

European Union standards are not fully aligned with the proposed Canadian standards and therefore are not accepted as evidence of conformity. Work is underway to develop global technical regulations with a view to facilitating trade in these kinds of engines.

Also, note that under paragraph 5(2)(f) of the Regulations, "engines that are being exported and are accompanied by a written statement establishing that they will not be sold or used in Canada" are exempt from the standards.

Defect information (Section 25)

While Environment Canada intends to administer notice of defect requests in a manner compatible with U.S. practice, the Canadian legislation is different and the Regulations will not align exactly.

Section 157 of CEPA 1999 outlines the obligations of a company on "becoming aware of a defect in the design, construction or functioning of the engine that affects or is likely to affect its compliance with the prescribed standard." This includes an initial notice and follow-up reports for a period of two years unless the Minister directs otherwise. Environment Canada expects to be given a report similar to that described by the EPA under subsection 85.1903 of the CFR.

Environment Canada plans to provide further information in the guidance document for the Regulations.

Miscellaneous questions

  1. There is no requirement to change existing engines. The Regulations apply to 2006 and later model-year engines and come into force on January 1, 2006. The definition of a model year is contained in the Regulations.
  2. The Regulations do not address the existing or in-use fleet of engines.
  3. Once the Regulations come into force, 2006 and later model-year engines must meet the standards, as in the U.S., as a condition of importation into Canada. A full range of engines is expected to be available.
  4. The Regulatory Impact Analysis Statement (RIAS) that accompanied the Regulations has further information regarding the expected costs of new engines designed to meet the standards. The RIAS can be retrieved from the Environment Canada CEPA Registry at Off-Road Compression-Ignition Engine Emission Regulations (SOR/2005-32)
  5. See #2.

1 The Regulations are available at: Off-Road Compression-Ignition Engine Emission Regulations (SOR/2005-32)

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