Guidance document for heavy-duty vehicle greenhouse gas emission: chapters A to E

Official title: Guidance document for the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations made under the Canadian Environmental Protection Act, 1999

This document does not reflect the recently published Regulations Amending the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations and Other Regulations Made under the Canadian Environmental Protection Act, 1999 (the regulations) published in the Canada Gazette, Part II on May 30th, 2018.

This document is intended to provide guidance only. This is not a legal document. It does not in any way supersede or modify the Canadian Environmental Protection Act, 1999 (CEPA) or the regulations, including its amendments. In the event of an inconsistency between this document and CEPA or the regulations, CEPA and the regulations including its amendments prevail.

A. Introduction

This guidance document provides information about the requirements of the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (the regulations) established under the authority of the Canadian Environmental Protection Act, 1999 (CEPA 1999 or the act). This guidance document cites both the regulations and the act to aid in understanding the requirements of the regulations and the act.

Canadian manufacturers, distributors and importers of heavy-duty vehicles and engines have legal obligations under these regulations. The regulations applies to heavy-duty pickup trucks and vans, tractors, as well as a wide variety of vocational vehicles such as: school, transit and intercity buses; recreational vehicles (motor homes); as well as freight, delivery, service, cement, refuse and dump trucks.

This guidance document may be updated from time to time to improve clarity and to address issues with the implementation of the regulations.

Figure 1 illustrates how this document is organized, each chapter covering a specific aspect of the regulations.

Figure 1: document overview

Document overview (see long description below).

Description of figure 1

Figure 1 illustrates how this document is organized, each chapter covering a specific aspect of the regulations. The first box at the top states that the regulatory framework is described in chapter B. There are two arrows leading from the first box to two other boxes: one on the left that states that the information relating to vehicles and engines subject to the regulations is located in chapter C, while the box on the right states that the information on persons subject to the regulations is located in chapter D. These boxes both lead to a single box below which states where additional details are located with regard to the following subjects: chapter E for the national emission mark; chapter F for emission standards and requirements; chapter G and section F.6.1 for the CO₂ emission credit system; chapter H for evidence of conformity, records and reports; chapter I for importing a vehicle or engine; chapter J for other obligations and section F.6 for compliance flexibilities. This box leads to another one which states that compliance and enforcement information is located in chapter K. This box leads to a final one presenting the titles of the Appendices: Appendix I - Example of an EPA certificate; Appendix II - Procedure for the submission of evidence of conformity under section 54 of the regulations; Appendix III - Examples of statement of compliance letters; Appendix IV - Technical information requirements (for Canada-unique Type 3 - vehicles or engines not covered by an EPA certificate); Appendix V - Compliance label for engines that are not covered by an EPA certificate; Appendix VI - Compliance label for vehicles that are not covered by an EPA certificate; Appendix VII - Definitions - glossary.

B. Regulatory framework

B.1 Introduction to regulatory framework

The Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (the regulations) establish Canadian emission standards and test procedures under the authority of the Canadian Environmental Protection Act, 1999 (CEPA or the act). These standards and procedures are aligned with those of the U.S. Code of Federal Regulations (CFR) for on-road heavy-duty vehicles and engines, which were published by the Environmental Protection Agency (EPA) in the U.S. Federal Register on September 15, 2011 in the Final Rule, entitled Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles.

You can find the regulations on the CEPA Environmental Registry (the registry) website.

You can find the U.S. Final Rule on the United States EPA website.

B.2 Purpose of the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations

The purpose of the regulations is to reduce greenhouse gas (GHG) emissions from heavy-duty vehicles and engines by establishing emission standards and test procedures that are harmonized with the federal requirements of the United States.

B.3 The Canadian Environmental Protection Act, 1999

CEPA is “an act respecting pollution prevention and the protection of the environment and human health in order to contribute to sustainable development.” CEPA 1999 is Canada’s main federal environmental protection legislation. Part 7, Division 5 of the act, allows Environment Canada to make regulations for controlling vehicle, engine and equipment emissions.

B.4 The CEPA Environmental Registry

The registry gives Canadians the opportunity to learn more about how the federal government administers the act and invites industries, individuals, interest groups and others to participate in the public consultations and decision-making processes that take place under the act. The main goal of the registry is to make it easier to access current information related to CEPA 1999. The registry is where the public can view information on up-to-date environmental regulations and their support documents. The registry contains guidance materials and templates related to the regulations. It also has information on other instruments, including other transportation related regulations, voluntary agreements and interim orders. The registry is also where public consultations are announced.

B.5 The Code of Federal Regulations

The Code of Federal Regulations (CFR) is a list of U.S. regulations, parts of which are incorporated by reference in the Environment Canada regulations. The Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations incorporate by reference five (5) specific parts of the CFR from title 40, chapter I, namely:

Part 86, Control of emissions from new and in-use highway vehicles and engines
Part 600, Fuel economy and greenhouse gas exhaust emissions of motor vehicles
Part 1036, Control of emissions from new and in-use heavy-duty highway engines
Part 1037, Control of emissions from new heavy-duty motor vehicles
Part 1065, Engine-testing procedures

For concision, only the part and section numbers are provided for CFR references in this document (that is, “part.section of the CFR”) and all references to the CFR identified herein are found in title 40.

When amendments are made to sections of the CFR that are incorporated by reference, these U.S. amendments come automatically into force in the regulations, as the CFR is incorporated “as amended from time to time”. Therefore, changes to these sections of the CFR should be taken into consideration when complying with the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations.

B.6 The references to CEPA and the various sections of the CFR incorporated in the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations

The regulations include references to CEPA 1999 and to the CFR. References to the act are usually related to those sections that provide the authority to regulate a specific activity, or these references may also be to a definition. For example, subsection 3(a) of the regulations refers to section 149 of the act. This section of the act is where vehicles and engines are defined.

When the regulations incorporate by reference a specific section of the CFR, this section is usually part of a standard or a test procedure. An example of this may be found in section 16 of the regulations. In this section, the test procedure and standards for determining the total leakage rate of an air conditioning system are incorporated by referencing the corresponding provisions of the CFR, namely section 1037.115(c).

Subsection 1(2) of the regulations also includes general information specific to references to the CFR. It should be noted that when the regulations refers to the CFR, they exclude:

references to the EPA or its Administrator using any kind of discretion
references to the Secretary of Transportation exercising discretion in any way
alternative standards related to fleet averages, other averages, emission credits, small volume manufacturers or financial hardship - meaning that if, for instance, a company participates in the Averaging, Banking and Trading (ABT) program in the U.S., credits obtained under the U.S. program may not be used in Canada, as well as if a company uses some exemptions for small volume manufacturers or financial hardship in the U.S., these are not applicable in Canada, and
standards established by any authority other than the EPA or evidence of conformity with any authority other than the EPA

In summary, in order to understand the requirements of the regulations, being aware of those sections of the act and of the CFR that are referenced is also needed.

U.S. amendments made to sections of the CFR that are incorporated by reference in the regulations should be taken into consideration, as the CFR sections are incorporated in the regulations “as amended from time to time” and their amendments come automatically into force.

B.7 Differences between the regulations and the CFR

While the goals of Environment Canada and EPA are similar, the laws of Canada and the U.S. differ. Thus, there are important differences in how environmental regulations are developed and enforced in Canada and in the U.S.

The regulations were developed to align Canadian emission standards and test procedures with those of the EPA. The provisions are as similar as possible, while respecting the different regulatory authorities in the act in Canada and those in the Clean Air Act in the U.S.

C. Vehicles and engines subject to the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (the regulations)

C.1 Introduction to vehicles and engines subject to the regulations

The regulations set requirements for the whole range of on-road heavy-duty vehicles of the 2014 and later model years from heavy-duty pick-up trucks and vans to tractors, as well as a wide variety of vocational vehicles such as: school, transit and intercity buses; as well as freight, delivery, service, cement, garbage and dump trucks.

This effectively includes all on-road vehicles with a Gross Vehicle Weight Rating (GVWR) of more than 3856 kg (8500 lb), except medium-duty passenger vehicles as defined in subsection 1(1) of the On-Road Vehicle and Engine Emission Regulations and those vehicles that are subject to the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations. Trailers are also not subject to the regulations.

The regulations apply to heavy-duty vehicles and engines manufactured in or imported into Canada. They introduce greenhouse gas (GHG) emission standards that apply to prescribed classes of heavy-duty vehicles. Under the regulations, the heavy-duty pick-up trucks and vans are regulated as “Class 2B and Class 3 heavy-duty vehicles”, and combination tractors as “tractors”. All other heavy-duty vehicles not covered under the two aforementioned prescribed classes are regulated as “vocational vehicles”, which include buses. section C.2 of this document describes the classes (also referred to as weight classes) and prescribed classes.

The regulations also establish separate GHG emission standards for engines designed to be used in vocational vehicles and tractors.

The standards apply to stand-alone (loose) engines, as well as those that are already installed in vocational vehicles and tractors.

C.2 Heavy-duty vehicles and engines subject to the regulations

CEPA and the regulations apply to the prescribed classes of vehicles and engines established under the regulations.

The following table presents a summary of heavy-duty vehicle weight classes defined in the regulations.

Table 1 - heavy-duty vehicle weight classes defined in the regulations
Weight class	Heavy-duty vehicle having a GVWR of more than:	…but not more than:
Class 2B	3 856 kg (8 500 lb)	4 536 kg (10 000 lb)
Class 3	4 536 kg (10 000 lb)	6 350 kg (14 000 lb)
Class 4	6 350 kg (14 000 lb)	7 257 kg (16 000 lb)
Class 5	7 257 kg (16 000 lb)	8 845 kg (19 500 lb)
Class 6	8 845 kg (19 500 lb)	11 793 kg (26 000 lb)
Class 7	11 793 kg (26 000 lb)	14 969 kg (33 000 lb)
Class 8	14 969 kg (33 000 lb)	n/a

As per subsections 5(1) and (2) of the regulations, the prescribed classes of vehicles and engines set out in the regulations are as follows:

class 2B and class 3 heavy-duty vehicles
vocational vehicles
tractors
heavy-duty incomplete vehicles, and
heavy-duty engines

C.2.1 Class 2B and class 3 heavy-duty vehicles

The class 2B and class 3 heavy-duty vehicle prescribed class includes heavy-duty vehicles that have a GVWR of more than 3 856 kg (8 500 lb), but not more than 6 350 kg (14 000 lb). This prescribed class mainly includes heavy-duty pick-up trucks and vans.

Certain class 2B and class 3 heavy-duty vehicles are subject to the vocational vehicle standards, as explained below in section C.2.2.

C.2.2 Vocational vehicles

Vocational vehicles include:

class 4 to class 6 heavy-duty vehicles
class 7 and class 8 heavy-duty vehicles that are not a tractor
vocational tractors
- Vocational tractors are tractors that are not designed primarily to operate at high and constant speeds such as on highways, or would otherwise not benefit from efficiency improvements designed for line-haul tractors, such as aerodynamic devices. Vocational tractors also meet specific physical characteristics, as described in section F.6.6.1.
heavy-duty incomplete vehicles that are not a cab-complete vehicle and are equipped with spark-ignition engines conforming to the alternative standards referred to in section 25 of the regulations
- Section 25 of the regulations provides alternate standards for a limited number of spark-ignition engines that are primarily designed to be used for pickup trucks and vans, in the case where these engines are not installed (loose) or installed in heavy-duty incomplete vehicles that are not cab- complete vehicles. When these vehicles are equipped with an engine conforming to section 25, these vehicles are defined as vocational vehicles and must comply with the CO₂ emission standard pertaining to vocational vehicles. Section F.5.1.4 of this document provides more detail on section 25 of the regulations.
class 2B and class 3 heavy-duty vehicles that are excluded from the standards set out in section 1037.104 of the CFR [the exclusion itself being specified under section 1037.104(f)], which are those that are not chassis-certified for criteria pollutants under part 86, subsection S of the CFR

C.2.3 Tractors

Tractors are class 7 or class 8 heavy-duty vehicles manufactured primarily for pulling a trailer, but not for carrying cargo other than the cargo in the trailer.

C.2.4 Heavy-duty incomplete vehicles

A heavy-duty incomplete vehicle is manufactured by assembling components - none of which, taken separately, constitutes a heavy-duty incomplete vehicle. It consists of, at a minimum, a chassis structure, a powertrain and wheels in the state in which all of those components are to be part of the heavy-duty completed vehicle, but it requires further manufacturing operations to become so.

Heavy-duty incomplete vehicles include cab-complete vehicles (also known as chassis-cab within the industry), incomplete tractors and incomplete vocational vehicles. Heavy-duty incomplete vehicles must meet the same requirements of the Regulations as for complete vehicles. For example, an incomplete vocational vehicle must meet the emission standards and requirements applicable to vocational vehicles.

It should be noted that, for concision, any provision applying to tractors or vocational vehicles also applies, for the purpose of this document, to incomplete tractors or incomplete vocational vehicles, respectively.

C.2.5 Heavy-duty engines

As per subsection 5(2) of the regulations, the prescribed class of engines are heavy-duty engines. Heavy-duty engines are engines that are designed to be used for motive power in vocational vehicles or tractors.

In the Regulations, the engines are also further categorised as follows:

“Light heavy-duty engine” are heavy-duty engines that are designed to be used in class 2B, class 3, class 4 or class 5 heavy-duty vehicles
“Medium heavy-duty engine” are heavy-duty engines that are designed to be used in class 6 and class 7 heavy-duty vehicles
“Heavy heavy-duty engine” are heavy-duty engines that have cylinder liners designed for multiple rebuilds and designed to be used in class 8 heavy-duty vehicles

C.3 Model year and its importance

The model year is the year used by a vehicle manufacturer or engine manufacturer to designate the period of production of a particular model of a vehicle or engine, as the case may be, and is determined in accordance with section 4 of the regulations. This is relevant as standards and test procedures apply per model year.

The model year can span a period of up to two calendar years less one day, but can include only one January 1. If the period of production does not include a January 1, the model year corresponds to the calendar year during which production occurred; otherwise it corresponds to the calendar year during which January 1 fell. For example, a vehicle produced between March 1, 2014 and January 31, 2015 would be a 2015 model year vehicle and would need to meet the standards applicable to the 2015 model year.

C.4 Provisions that allow the importation of vehicles or engines whose assembly must be completed in Canada in order to comply with the regulations

Subsection 153(2) of the act allows vehicles or engines that do not meet all the applicable requirements to be imported provided that they comply with these once their assembly in Canada is completed, before the engine or vehicle leaves the possession or control of the company and, in the case of a vehicle, before it is presented for registration. A company may be required to apply a national emissions mark (see chapter E).

C.5 Vehicles or engines for which the Governor in Council has granted an exemption

A company may apply to the Governor in Council to be granted an exemption from any standard prescribed under the regulations. In order for such a request to be admissible, it must be submitted before importation and, in the case of a vehicle or engine manufactured in Canada, before applying the national emissions mark, before the vehicle or engine leaves the possession or control of the company and before the vehicle is presented for registration under the laws of a province or of an Aboriginal government. Under section 156 of the act, an exemption from any prescribed standard will be granted only if, in the opinion of the Governor in Council, compliance with that standard would:

create substantial financial hardship for the company
impede the development of new features for safety, emission monitoring or emission control that are equivalent or superior to those that conform to prescribed standards, or
impede the development of new kinds of vehicles or engines or of systems and components for these

An exemption may not be granted for a model of vehicle or engine if the exemption would substantially diminish the control of its emissions, or if the company applying for the exemption has not provided evidence that it has attempted in good faith to bring the model into conformity with all applicable prescribed standards.

Under subsection 156(4) of the act, an exemption for financial hardship may not be granted:

if the world production of vehicles or engines manufactured by the company or by the manufacturer of the model that is the subject of the application for exemption exceeded 10 000 vehicles or engines in the 12-month period beginning two years before the beginning of the exemption period (which does not exceed three years when abovementioned condition a. applies, and does not exceed two years when conditions b. or c. apply), or
if the total number of vehicles or engines manufactured for, or imported into, the Canadian market by the company exceeded 1000 vehicles or engines in that 12-month period

Section 62 of the regulations incorporates by reference section 44 of the On-Road Vehicle and Engine Emission Regulations. The latter describes the information to be provided to the minister when applying for an exemption.

D. Persons subject to the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations

The regulations apply to companies manufacturing, importing or distributing on-road heavy-duty vehicles and engines of the 2014 and later model years for the purpose of sale in Canada. However, the Canadian Environmental Protection Act, 1999 (CEPA 1999 or the act) requires that a person who is permanently importing from the U.S. a vehicle or engine of a prescribed class for their own use ensure that it bear a label showing that it conforms to the emission standards in effect at the time of its manufacture.

D.1 Introduction to persons subject to the regulations

Section 149 of CEPA defines a company as:

an importer of vehicles or engines for the purpose of sale
a Canadian vehicle or engine manufacturer, and
a distributor of Canadian vehicles or engines

A person importing a vehicle or engine into Canada for other than the purpose of sale or lease is not a “company” as defined under the act and regulations. Nonetheless, it is important to note that such a person still needs to comply with CEPA 1999. The act namely requires a person to ensure that the vehicles or engines of prescribed classes that they import bear a label showing that they conformed to the emission standards in effect at the time of their manufacture.

Example: John Smith Trucking Company Inc. of Woodbine, Ontario purchases class 7 tractors from a U.S. dealer and imports the vehicles directly into Canada for its Canadian trucking operations. John Smith Trucking Company Inc., as the importer, is not a “company” as defined under the act and regulations since it is importing the vehicles for use in its operations. However, the vehicles must bear a label showing that they conformed to the emission standards in effect at the time of their manufacture.

D.2 Company under the act

In section 149 of the act, a company is defined as a “person” who:

is engaged in the business of manufacturing vehicles, engines or equipment in Canada
is engaged in the business of selling to other persons, for the purpose of resale by those persons, vehicles, engines or equipment obtained directly from a person described in paragraph (a) or the agent of such person; or
imports any vehicle, engine or equipment into Canada for the purpose of sale (this includes importing vehicles to lease)

D.3 Canadian engine manufacturer

A Canadian engine manufacturer is a person or company in Canada who, before sale of the engine to the first retail purchaser,

manufactures an engine from raw parts
modifies equipment on the engine (for example by adding or modifying the emission control system, or altering the engine configuration in a way that affects emissions), or
modifies an engine (for example adapts a diesel engine to run on natural gas)

A Canadian engine manufacturer may need to apply the national emissions mark to its engines. See chapter E for more information about the national emissions mark.

D.4 Canadian vehicle manufacturer

A Canadian vehicle manufacturer is a person or company in Canada who, before the sale of the vehicle to the first retail purchaser,

manufactures a vehicle from raw parts
takes part, along with other manufacturers, in the process of manufacturing a vehicle in stages (for example, body and/or equipment installer)
alters a vehicle that was in conformity to the Regulations in such a manner that its stated type, mentioned on the vehicle compliance label, is no longer accurate (for example, by adding or removing features on a vehicle that considerably alters its gross vehicle weight rating (GVWR), such that weight class is changed)
changes any of the components on a vehicle that may alter the value of a parameter used in the Greenhouse Gas Emissions Model (GEM) which is a free computer simulation model provided by the Environmental Protection Agency (EPA)
alters the engine (for example, adapts a diesel engine to run on natural gas)
alters the engine configuration in a way that affects emissions, or
alters the emission control system

A Canadian vehicle manufacturer may need to apply the national emissions mark to its vehicles. See chapter E on the national emissions mark.

D.5 Distributor of Canadian vehicles or engines

A person who is engaged in the business of selling to other persons, for the purpose of sale by those persons, vehicles or engines obtained directly from a Canadian manufacturer or its agent, is a distributor of Canadian vehicles or engines and is a company under the act.

Vehicles or engines, manufactured in Canada, that are transported between provinces or territories require a national emissions mark (see chapter E).

D.6 Regulatory requirements for each type of “person” subject to the act and regulations

Table 2 provides a summary of the responsibilities for the four different types of persons who have obligations under the act and regulations. When necessary, more detailed information is provided elsewhere in this guidance document, as outlined below.

Note that the type of person subject to the act and regulations, along with the corresponding obligations, may vary for a given vehicle or engine depending on the activity being carried out. For example, in the case of an importation of vehicles or engines for the purpose of sale or for personal use, the applicable requirements differ depending on the final application of the vehicle or engine, as the case may be.

Table 2 - summary of applicable requirements
Summary of applicable requirements	Importer of engine or vehicle for the purpose of sale	Importer of engine or vehicle for personal use (that is, not for sale)	Canadian manufacturer of vehicles or engines	Distributor of Canadian vehicles or engines	Chapters and sections in the guidance document
Affix the national emissions mark			Yes	Yes	E
Supply vehicles or engines that comply with emission standards	Yes	Yes	Yes	Yes	F
Provide evidence of conformity	Yes^a	Yes^b	Yes	Yes	H.1
Submit an importation declaration	Yes^c	Yes^c	Yes^c	Yes^c	I.1
Submit annual end of model year report	Yes^a		Yes	Yes	H.2
Ensure prescribed label is affixed to the vehicle or engine	Yes	Yes	Yes	Yes	H.1.12
Provide maintenance instructions	Yes^a		Yes	Yes	J.1
Cause notice of defect to be given, if necessary	Yes		Yes	Yes	J.3
Ensure the engine bears a unique identification number^d	Yes	Yes	Yes	Yes	Appendix V

^a The company may arrange with the vehicle or engine manufacturer that certain required information be provided by the vehicle or engine manufacturer on behalf of the company.
^b The presence of the prescribed label on the vehicle or engine is considered to be evidence that the vehicle or engine conforms to the prescribed emission standards when it is imported by a person for purposes other than sale (for personal use).
^c While the Regulations do not require a signed declaration to the Minister prior to importation, such declaration is required under the On-Road Vehicle and Engine Emission Regulations for heavy-duty vehicles and engines.
^d Note that for vehicles, a Vehicle Identification Number (VIN) is required under the Motor Vehicle Safety Regulations of Transport Canada.

D.7 Foreign vehicle or engine manufacturers subject to the regulations

Vehicles or engines produced by foreign manufacturers (either in the United States or any other country) and imported into Canada must conform to the act and the regulations.

Importers may require the assistance of a foreign vehicle or engine manufacturer to demonstrate compliance with the regulations. In particular, the assistance of foreign vehicle or engine manufacturers may be required to ensure that vehicles or engines imported into Canada meet the prescribed standards and to provide evidence of conformity to that effect. These requirements are described in chapters chapterH and chapterI.

A foreign entity (which is therefore at a location outside of Canada) is not considered to be a company under CEPA 1999 unless it engages, in Canada, in one of the activities under the definition of company outlined in section D.2. In the case of engines or vehicles manufactured outside of Canada, the responsibility for complying with the applicable provisions of the regulations and the act is with the person or company who imports^{Footnote 1} the engine or vehicle. In the event of a violation of a provision of the act or the regulations in respect of an imported engine or vehicle, the person or company who imports the engine would be subject to the enforcement provisions of the act.

E. National emissions mark

Several administrative provisions are aligned with those under other existing regulations under CEPA, including provisions respecting the national emissions mark.

E.1 Introduction to national emissions mark

Section 152 of the act does not allow a company to transport engines and vehicles that are manufactured in Canada between provinces or territories unless the engines or vehicles have a national emissions mark (NEM) affixed.

The national emissions mark is the symbol shown in figure 2. Section 150 of the act specifies that the NEM is a national trademark and establishes limitations on any person’s use of the mark (or the use of any other mark in such a manner that it is likely to be mistaken for a national emissions mark). Companies must obtain the minister’s authorization to use the national emissions mark (see section E.3).

Figure 2: the national emissions mark

Figure 2 represents the national emissions mark. This mark consists in capital letters “E” and “C” with a maple leaf in the centre of the “C”.

Subsections 5(4) and (5) of the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (the regulations) state that a NEM must be affixed only to engines manufactured in Canada and to vehicles for which the main assembly is completed in Canada; these subsections also state that the NEM is not required if:

the vehicle or engine will be used in Canada solely for purposes of exhibition, demonstration, evaluation or testing
the engine is to be installed in a heavy-duty vehicle before sale to the vehicle’s first retail purchaser - as per subsections 26(9) and 27(10), the vehicle must be equipped with an engine that is in compliance with the regulations - of note, despite paragraph 5(5)(b), it is not forbidden that an engine installed in a vehicle bears a NEM
the engine is to be installed as a replacement engine in a heavy-duty vehicle that has a national emissions mark applied to it, if the replacement engine is of the same model year as the original engine, and is identical to or better than the original engine with respect to emissions

E.2 Conditions in regard to affixing a national emissions mark to an engine or vehicle

Section 153 of the act prohibits a company from applying the national emissions mark to a vehicle or an engine unless the emission standards are met, the evidence of conformity has been produced in the prescribed form and manner and the company has applied for and received the minister’s authorization to do so. The emission standards that the vehicle and engine must meet are described in this document in chapter F.

E.3 Application of the national emissions mark

Under section 151 of the act, a company must have received authorization from the minister to apply the national emissions mark to vehicles or engines.

When authorized, the company will receive an authorization in the form that is set out in Schedule 1 of the On-Road Vehicle and Engine Emission Regulations. The authorization will include a company identification number from the minister.

E.4 Requirements for size, location and manner of affixing the national emissions mark to an engine or vehicle

Requirements on the size, location and manner of affixing the national emissions mark to engines or vehicle can be found in section 7 of the regulations, which references section 8 of the On-Road Vehicle and Engine Emission Regulations.

The national emissions mark shall be at least 7 mm in height and 10 mm in width. The identification number, assigned by the minister to the authorized company, shall be in figures that are at least 2 mm in height and be located immediately below or to the right of the national emissions mark.

The national emissions mark shall be placed immediately beside the compliance label, the U.S. engine information label or the U.S. emission control information label, as the case may be. It may also be placed on the compliance label, the U.S. engine information label or the U.S. emission control information label, meaning that it is combined within the compliance or U.S. label.

The national emissions mark shall be on a permanently applied, weather resistant label that is readable.

E.5 Application for the minister’s authorization to use the national emissions mark

A company must submit an application to obtain the minister’s authorization to use the national emissions mark. The authorization is obtained in accordance with section 6 of the regulations, which references paragraphs 7(2)(a) to (c) and (e) of the On-Road Vehicle and Engine Emission Regulations. The following information must be included in the application:

the name and street address of the head office of the company and, if different, its mailing address
the prescribed classes of the vehicles or engines for which the authorization is requested
the street address of the location where the NEM will be applied
the street address where records referred to in section 59 of the regulations will be maintained, and
the information to show that the company is capable of verifying compliance with the standards in the regulations (see section F.6 and chapter H for more information on compliance verification)

A company’s application must be signed by a person who is authorized to act on behalf of the company.

When the minister authorizes a company to use the national emissions mark, a company identification number will be assigned to the company. The company identification number is not to be confused with the unique identification number that must be permanently affixed, engraved or stamped on every engine or the Vehicle Identification Number (VIN) for vehicles.

Note that, as per subsection 6(2) of the regulations, a company that has already submitted an application and that is currently authorized to apply the national emissions mark to its heavy-duty vehicles or engines under the On-Road Vehicle and Engine Emission Regulations, does not need to submit a new application for the regulations.

E.6 Information to show that the company is capable of verifying compliance with the standards

The information that satisfies the requirement of paragraph 6(1) of the regulations, which references paragraph 7(2)(e) of the On-Road Vehicle and Engine Emission Regulations to show that a company is capable of verifying compliance with the regulatory standards, may be presented in various forms, including, but not limited to, the following:

Recent experience in complying with Canadian regulatory emission standards

When applicable, a company may provide the minister with the following statement:

"The company has applied the national safety mark to on-road vehicles within the last five years to certify conformance to Canadian vehicle emission regulatory standards".

Some aspects of the regulations are designed to align with administrative requirements under the Motor Vehicle Safety Act. Accordingly, companies are requested to provide their authorization number assigned by the Minister of Transport to use the national safety mark.
Recent experience in obtaining Environmental Protection Agency (EPA) emission certification

When applicable, a company may provide the minister with the following statement:

"The company has been issued certificates of conformity by the U.S. EPA within the last five years as evidence of conformity with U.S. regulatory emission standards for vehicles or engines covered under the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations."
Technical information

The company may provide technical information to show that it is capable of verifying compliance with the standards set out in the regulations including, but not limited to, information describing the capabilities of the emission test facilities operated by, or on behalf of, the company to produce evidence that its engines or vehicles conform to the standards set out in the regulations. This may include evidence that the emission test facility used on behalf of the company has produced test results used in support of a successful application to the EPA for the issuance of a certificate of conformity.

The company (if, for instance, it is in the business of distributing/importing) may arrange with the vehicle or engine manufacturer that certain required information be provided by the vehicle or engine manufacturer on behalf of the company.

The minister will assess the information provided to determine whether the company meets the requirements for being authorized to affix the national emissions mark on engines or vehicles.

E.7 Imported engines or vehicles and the national emissions mark requirement

Subsection 153(1) of the act requires that imported engines or vehicles conform to the requirements of the regulations as a condition for their importation into Canada. Also, affixing a national emissions mark to imported vehicles or engines is not required. Nonetheless, a company that is authorized by the minister may apply the national emissions mark to engines or vehicles that are imported into Canada, provided they conform to the requirements of the regulations.

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Date modified:: 2019-04-10