Interim Order Guidance Letter

December 20, 2010
(aussi disponible en français)

To: Manufacturers and Importers of Off-Road Compression-Ignition Engines and Machines

Subject: Interim Order Modifying the Operation of the Off-Road Compression-Ignition Engine Emission Regulations (Interim Order)

I am writing to inform you of the Government of Canada's decision to issue an Interim Order (PDF 1.7 MB) and to communicate the evidence of conformity requirements under the Interim Order.

As you are likely aware, Environment Canada has initiated a process to amend the Off-Road Compression-Ignition Engine Emission Regulations - SOR/2005-32 (Regulations) to maintain alignment with the more stringent Tier 4 emission standards of the United States Environmental Protection Agency (U.S. EPA) for off-road diesel engines. However, it is not expected that these amendments would come into force before the 2012 model year. Environment Canada recognizes that until such time that the Canadian Regulations are amended to maintain alignment with the "Tier 4" standards, there may be certain instances where companies seek to import "Tier 4 flexibility" engines into Canada. Engines manufactured under the U.S. EPA flexibility program are effectively a carry-over of a Tier 2 or 3 build, but would not be covered by a U.S. EPA certificate of conformity.

Consistent with Environment Canada's policy of alignment with U.S. EPA standards, our objective is to ensure that Canadians have access to the same engines as those offered in the U.S. Accordingly, the Interim Order modifies the operation of the Regulations thereby permitting the import of "Tier 4 flexibility" engines into Canada. The Interim Order will, in accordance with subsection 163(5) of the Canadian Environmental Protection Act, 1999, remain in force until it is repealed, until the Regulations are amended, or for a period of up to one year. A copy of the Interim Order (PDF 1.7 MB) is available on the department's CEPA Registry website.

In consideration of the above there are three possible options for importing off-road diesel engines into Canada.

1. Engines sold concurrently in Canada and the U.S. under the U.S. EPA Tier 4 flexibility provisions;
2. Engines covered by a valid U.S. EPA certificate of conformity that are sold concurrently in Canada and the United States; and
3. Engines that will not be sold concurrently in Canada and the United States (i.e. so-called "Canada Unique" engines);

Attached is a document that describes these options and their required corresponding evidence of conformity in greater detail.

If you have any questions concerning this matter or the forthcoming amendments to the Regulations, please contact the Regulatory Administration Section or the Air Pollutant Regulatory Development Section, as the case may be. Both sections can be reached via VehicleandEngineInfo@ec.gc.ca or by telephone at (819) 956-5941.

 

Sincerely,

 

 

Mark Cauchi
Director, Transportation Division
Energy and Transportation Directorate
ESB
Environment Canada

Attach.

Please be aware that this is intended as general guidance and should not be construed as legal advice. In the event of a discrepancy between this guidance, the Regulations, and the Interim Order, the Regulations and the Interim order, as the case may be, prevail.

Section 16 and 17 of the Off-Road Compression-Ignition Engine Emissions Regulations specify the evidence of conformity requirements for off-road diesel engines. The responsibility to submit evidence of conformity rests, in all cases, with the company, as defined in CEPA 1999. Companies seeking to import off-road diesel engines must make the necessary arrangements to ensure that they are able to produce the evidence of conformity as required. Please contact Environment Canada at Emission-Verification@ec.gc.ca for further information regarding evidence of conformity.

While the Interim Order is in effect, a company may import an engine that is produced under the U.S. EPA "Tier 4 flexibility" provisions and sold concurrently in Canada and the U.S. Under the Interim Order, instead of conforming to the standards set out in sections 9 to 11 of the Regulations, an engine that bears the U.S. emission control information label referred to in section 625(j)(1) must conform to the emission standards referred to in section 625, part 1039, of Title 40 of the U.S. Code of Federal Regulations.

To do so, the company and engine must conform to all other applicable requirements of the Regulations. Additionally, the company must submit the declaration referred to in section 19 of the Regulations (please refer to Chapter 8 of the "Guidance Document for the Off-Road Compression-Ignition Engine Emission Regulations") and make the statement under subparagraph 19(1)(e)(ii) that "The company complies with section 17 of the Off-Road Compression-Ignition Engine Emission Regulations".

The evidence of conformity in this case shall include the below noted items that must be submitted to the Minister upon request pursuant to section 18 of the Regulations and is not required prior to importation:

1. A copy of the prior year U.S. EPA certificate of conformity;
2. A copy of all records provided to the U.S. EPA to obtain the U.S. EPA certificate of conformity;
3. A copy of all documentation provided to the U.S. EPA related to the flexibility engine pursuant to CFR 1039.625(j);
4. A statement that the engine is built to the same specifications as in a previous model year to obtain the applicable Tier 2 or Tier 3 U.S. EPA certificate (as applicable to the power category);
5. A document demonstrating that the engine is sold concurrently in the U.S. during the period corresponding to the model year of the engine;
6. A copy of the engine information label indicating that the engine is part of the U.S. EPA flexibility program under CFR 1039.625;

An engine that is covered by a U.S. EPA certificate of conformity would be required to comply with the emission requirements referred to in the U.S. EPA certificate pursuant subsection 14(2) of the Regulations. The evidence of conformity remains as specified in section 16 of the Regulations with an engine information label consistent with that specified in the U.S. EPA certificate. The evidence of conformity must be obtained and produced by the company upon request by the Minister and is not required prior to importation.

In this case the evidence of conformity, pursuant to section 16 of the Regulations, consists of the following:

1. A copy of the certificate;
2. A document to demonstrate concurrent sale;
3. Supporting documentation submitted to the U.S. EPA; and
4. A U.S. engine information label

An engine that is not covered by a U.S. EPA certificate of conformity or that is not sold concurrently in Canada and the United States is required to comply with all applicable standards specified in the Regulations and is subject to the provisions of section 17 of the Regulations. In this case, evidence of conformity required under paragraph 153(1)(b) of the Act must be obtained and produced by a company in a form and manner that is satisfactory to the Minister prior to its importation.

The following list elaborates on section 7.3 of the "Guidance Document for the Off-Road Compression-Ignition Engine Emission Regulations" which outlines the procedure to provide evidence of conformity in a form and manner satisfactory to the Minister, pursuant to section 17 of the Regulations. Evidence of Conformity must consist of:

1. Information equivalent to what must be submitted to the U.S. EPA to obtain a certificate of conformity. In the case of an engine that was previously covered by a U.S. EPA certificate of conformity, a copy of the records previously submitted to the U.S. EPA in support of the application for the issuance of the U.S. EPA certificate in respect of the engine;
2. A copy of the previously issued U.S. EPA certificate of conformity (if previously covered by a U.S. EPA certificate of conformity);
3. A copy of the engine information label;
4. A copy of the English and French emission-related maintenance instructions;
5. A statement that the engine is built to the same specifications as in a previous model year to obtain a U.S. EPA certificate and meets Tier 2 or 3 standards (If applicable and as applicable to the power category);
6. An original signed Statement of Compliance Letter from an authorized representative of the company that is importing the engines into Canada which includes the following information as a minimum:
   • Name and address of the company;
   • Business number assigned to the company by the Minister of National Revenue;
   • The identification of the engines (e.g. make, model, model year, engine family);
   • Estimated projected Canadian sales;
   • A statement of compliance with all applicable standards set out in the Off-Road Compression-Ignition Engine Emission Regulations made under the Canadian Environmental Protection Act, 1999;
   • A statement acknowledging that the signatory is authorized to act on behalf of the company;
   • A request for an acknowledgment by Environment Canada that the evidence of conformity submitted has been obtained and produced in a form and manner satisfactory to the Minister;

The Statement of Compliance Letter may include the following additional information:

• The identity of persons/entities (both inside or outside of the company) that Environment Canada may contact regarding the submission (e.g. technical contacts for companies);
• Indicate whether some information is to be treated as confidential;
• Any other information believed to be relevant.

To reduce the regulatory paperwork burden upon companies seeking to import "Canada-unique" engines, some engine manufacturers may voluntarily submit their technical documentation (i.e. items (a) through (e)) directly to Environment Canada. In this case, companies would then be required to submit a Statement of Compliance Letter (item (f)) prior to importation for each subject engine family. It is the responsibility of companies (importers) to ascertain whether this technical documentation has been submitted for engines (machines) they plan to import.

The electronic version of this document contains embedded hyperlinks to the Off-Road Compression-Ignition Engine Emission Regulations as well as the related guidance material. These documents are also available on the CEPA Registry website.