ARCHIVED — Vol. 145, No. 44 — October 29, 2011

Regulations Amending the On-Road Vehicle and Engine Emission Regulations (On-Board Diagnostic Systems for Heavy-Duty Engines and Other Amendments)

Statutory authority

Canadian Environmental Protection Act, 1999

Sponsoring department

Department of the Environment

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

Both Canada and the United States have standards for smog-forming emissions of various classes of on-road vehicles and engines, including requirements for on-board diagnostic (OBD) systems. OBD systems are designed to monitor components for malfunctions and to identify such malfunctions to facilitate proper repair and maintain emission performance.

Because the North American engine and vehicle market is integrated and to ensure a level playing field among all parties involved, Canada has a policy to align its requirements with the corresponding federal emission standards of the United States Environmental Protection Agency (U.S. EPA).

On February 24, 2009, the U.S. EPA published a final rule (see footnote 1) to extend the OBD systems to heavy-duty engines used or intended to be used in heavy-duty vehicles that have a gross vehicle weight rating (GVWR) of more than 6 350 kg, which include minibuses, school buses, road tractors and dump trucks. Given Canada’s policy of alignment, the proposed Regulations Amending the On-Road Vehicle and Engine Emission Regulations(On-Board Diagnostic Systems for Heavy-Duty Engines and Other Amendments) [the proposed Amendments] will impose an OBD requirement for heavy-duty engines used or intended to be used in heavy-duty vehicles that have a GVWR of more than 6 350 kg. Even if most of Canadian production is exported to the United States and is already meeting U.S. EPA standards, the proposed Amendments would provide that all Canadian manufacturers, importers and distributors operating in the Canadian market comply with the same standards.

Description and rationale

Background

Significant regulatory actions were initiated under the Federal Agenda on Cleaner Vehicles, Engines and Fuels (see footnote 2) (Agenda) [February 2001], which sets out a 10-year plan that includes regulations for vehicles, engines and fuels, both on- and off-road, and other initiatives to reduce air pollution from transportation sources. The regulatory actions set out in the Agenda were primarily based on a policy of alignment with the federal rules of the United States.

There are strong environmental and economic rationales for Canada to continue to align its emission standards with those of the United States. In the context of the highly integrated engine and vehicle industry of Canada and the United States and the progressive nature of the federal emission standards of the United States, there has been broad stakeholder (i.e. industry, other government departments, environmental non-governmental organizations [ENGOs]) support for the policy of Canada–United States alignment of standards. This support was evidenced throughout the consultation processes associated with the regulatory development processes for the On-Road Vehicle and Engine Emission Regulations, the Off-Road Small Spark-Ignition Engine Emission Regulations and the Off-Road Compression-Ignition Engine Emission Regulations that are in force under the Canadian Environmental Protection Act, 1999 (CEPA 1999). Aligning with U.S. standards allows for significant reductions in emissions and is cost-effective for companies and consumers. Competitive markets for Canadian heavy-duty vehicles and engines would be maintained while the adverse environmental and health impacts of emissions from these vehicles and engines would be reduced.

On January 1, 2003, the On-Road Vehicle and Engine Emission Regulations (see footnote 3) (the Regulations), made pursuant to CEPA 1999, were published in the Canada Gazette, Part Ⅱ. They contain standards for smog-forming emissions (such as NOx, non-methane organic gases, CO, formaldehyde and particulate matter) for various classes of on-road vehicles and engines, including requirements for OBD systems for light-duty vehicles, light-duty trucks, medium-duty passenger vehicles, complete heavy-duty vehicles, heavy-duty diesel vehicles that have a GVWR of 6 350 kg or less and heavy-duty diesel engines used or intended for use in these heavy-duty vehicles. Examples of vehicles that were targeted by the OBD requirements are cars, pickup trucks, vans and sport utility vehicles.

The Notice of intent to develop and implement regulations and other measures to reduce air emissions (see footnote 4) (October 2006) and the associated Regulatory Framework for Air Emissions (see footnote 5) released on April 26, 2007, reaffirmed the Government’s commitment to propose additional regulations as needed to continue to align Canada’s emission standards aimed at reducing smog-forming emissions from vehicles, engines and fuel with those of the United States.

Proposed Amendments

While the majority of heavy-duty vehicles and engines sold in Canada would likely already comply with U.S. EPA standards, it is important to recognize that some of these vehicles or engines sold in Canada may not. The proposed Amendments add the requirement that the heavy-duty engines of a specific model year used or intended to be used in heavy-duty vehicles that have a GVWR of more than 6 350 kg be equipped with an on-board diagnostic system that conforms to the standards applicable to engines of that model year set out in section 18 of subpart A of the Code of Federal Regulations (CFR) of the United States. This approach seeks to ensure that the specified standards remain identical in both countries. Therefore, the proposed Amendments would create a level playing field for companies supplying the North American market with heavy-duty vehicles and engines. At the domestic level, the proposed Amendments would ensure that all manufacturers, importers and operating distributors comply with the same standards.

The proposed Amendments also make administrative changes to the Regulations.

Proposed OBD system requirements for engines used or intended to be used in heavy-duty vehicles that have a GVWR of more than 6 350 kg

In the U.S. EPA final rule, heavy-duty engines used or intended for use in heavy-duty vehicles that have a GVWR of more than 6 350 kg are to be equipped with OBD systems designed to monitor the emission-related components for deterioration or malfunction. A malfunction will be determined when emissions increase beyond the applicable threshold specified in the U.S. EPA final rule or when the performance of a given component or system based on electrical information or temperature information is not within the prescribed range. Similar to the current requirements for light vehicles and trucks, the requirement that a dashboard malfunction indicator light be illuminated to inform the driver when a problem exists is proposed. OBD systems will also be required to be designed to operate for the actual life of the engine.

An OBD system monitors the performance of some major engine components, including individual emission controls. The system provides owners with an early warning of malfunctions by way of a dashboard “Check Engine” light. By giving vehicle owners this early warning, the OBD system protects not only the environment but also consumers, identifying minor problems before they become major repair bills. A repair technician would consult the vehicle’s OBD system before attempting a repair. OBD systems lead to more accurate and quicker diagnoses and more cost-effective repairs. An OBD system also reduces unnecessary trips back to the repair shop.

It is proposed to add an OBD system requirement for engines used or intended to be used in heavy-duty vehicles that have a GVWR of more than 6 350 kg, consistent with the U.S. EPA final rule. If the engines were to be imported as single engines or complete heavy-duty vehicles, they would need to be equipped with OBD systems before entering the country, while engines imported as incomplete heavy-duty vehicles would need to meet the requirement once the vehicles were completed. The proposed Amendments only apply to heavy-duty engines of the 2013 and later model years.

Engines and vehicles covered by a U.S. EPA certificate

Given that the proposed Amendments establish OBD system requirements in Canada that are aligned with the U.S. EPA final rule, the proposed Amendments allow for the acceptance of engines and vehicles covered by a U.S. EPA certificate of conformity provided that the engines and vehicles

  1. are sold concurrently in Canada and the United States; and
  2. meet the standards referred to in the U.S. EPA certificate with respect to that engine or vehicle.
Administrative changes

In order to add clarity to the regulatory text and to reconcile the English and French versions of the Regulations, the following revisions are proposed:

  • Repeal section 4 of the Regulations. Given that vehicles or engines deemed to be covered by a U.S. EPA certificate still need to provide evidence of conformity to the Minister of the Environment as per section 36 of the Regulations, section 4 of the Regulations is redundant.
  • Add text to section 35 of the Regulations to specify that documents submitted to the U.S. EPA for the purpose of amending the original application for certification must be maintained as part of the evidence of conformity.
  • Include the requirement for companies importing or manufacturing light-duty vehicles, light-duty trucks, medium-duty passenger vehicles and motorcycles to specify the period of production included in a model year; and the additional requirement for motorcycle companies to specify the total number of motorcycles imported or manufactured in Canada that will be offered for sale in Canada. These requirements would help ensure compliance with the Regulations and its verification. The requirements for the submission of importation declarations were modified such that these declarations must now be submitted periodically to the Minister.
  • Align the English and French versions of subsection 30(1) by replacing the term “purchase” with “acquire” in the English version to ensure consistency with the term “acquiert” in the French version, which covers a wide variety of corporate changes.
  • Add a subsection to section 32 to ensure that a company that acquires another company, including as a result of the merger of companies, and that is the owner of record on May 1, is required to submit an end of model year report.
Heavy-duty vehicles and engines

Under the Regulations, a heavy-duty vehicle is defined as an on-road vehicle that has a GVWR of more than 3 856 kg, a curb weight of more than 2 722 kg or a basic vehicle frontal area in excess of 4.2 m2. These vehicles include large 3/4 ton pickup trucks, minibuses, school buses, road tractors and dump trucks.

The Canadian heavy-duty vehicle industry consists of a number of medium and small size manufacturers. Most heavy-duty manufacturers target the North American market and concentrate their production in three categories: truck, bus and engines.

Most heavy-duty engines are imported into Canada and most of these engines are manufactured in the United States. The engines are imported into Canada as single engines, incomplete heavy-duty vehicles, or complete heavy-duty vehicles. There is only one company that manufactures heavy-duty engines in Canada and all of its production is exported to the United States for final assembly in heavy-duty vehicles.

The 2008 Canadian production of heavy-duty vehicles consisted of 64 000 vehicles of which approximately 90% were exported to the United States. In 2008, the total number of sales of new heavy-duty vehicles which had a GVWR of 6 350 kg or more (including buses) was estimated at 50 500 in Canada. (see footnote 6) It is estimated that approximately 93% of the sales were imported, of which 90% came from the United States and the remaining 10% came from Asia and Europe. The sales trend of the Canadian heavy-duty vehicles for the next decade is expected to be stable with a peak in 2012 at 59 900. (see footnote 7)

Benefits and costs

The proposed Amendments would provide greater assurance through the OBD requirement that the air quality and health benefits associated with the reduction in emissions resulting from the Regulations will actually occur.

In addition to the health and environmental benefits, the proposed Amendments would create a level playing field for companies supplying the North American market for heavy-duty vehicles and engines.

It is also anticipated that the proposed OBD system requirements would provide additional benefits to consumers, by identifying minor problems before they lead to major repair bills. On-board diagnostic systems lead to more accurate and quicker diagnoses and more cost-effective repairs. It also reduces unnecessary trips back to the repair shop.

Furthermore, given that the emission certification process for engines and vehicles is complex and costly for manufacturers and governments, aligning Canada’s requirements for OBD with those of the U.S. EPA would allow Canada to benefit from the U.S. EPA’s emission certification program. This would result in significant cost savings for Canadian companies, the federal government and Canadian consumers.

The increased costs to manufacturers to meet the additional OBD standards for heavy-duty vehicles have been estimated by the U.S. EPA in its support document (see footnote 8) associated with the final rulemaking. This analysis breaks total estimated costs into two primary categories: variable costs and fixed costs. Variable costs are those costs associated with any new hardware required to meet the requirements, the associated assembly time to install that hardware, and any increased warranty costs associated with the new hardware. The fixed costs are those for research and development, certification, and production evaluation testing.

The U.S. EPA estimated that, in order for manufacturers to design, certify, and build compliant heavy-duty engines used or intended to be used in heavy-duty vehicles that have a GVWR of more than 6 350 kg, the additional costs are expected to range from a maximum CAN$160 (US$155) (see footnote 9) for a diesel engine to a maximum of CAN$79 (US$77) for a gasoline engine.

Given that all heavy-duty engines and vehicles sold in Canada are designed for both the U.S. and Canadian markets, much of the technology development and manufacturing changes required to meet the newer, more stringent OBD standards in the U.S. final rule rulemaking were implemented by manufacturers in order to comply with the proposed U.S. EPA rules. Accordingly, much of the increased cost was already incurred even though there was no Canadian requirement for OBD yet. Using 2008 sales data, (see footnote 10) along with the estimated incremental per engine costs shown above and assuming that all vehicles and engines are non-compliant, the maximum incremental cost for the implementation of the OBD standards to heavy-duty vehicles is estimated at CAN$8 million. However, assuming that at least 90% of the engines of heavy-duty vehicles that enter into the Canadian market will be U.S. EPA-compliant and that only 5% of Canadian production is for the Canadian market, the estimated incremental cost would be approximately CAN$780 000 per year.

Consumers would likely bear the incremental costs through increase in prices of heavy-duty vehicles. However, considering that very few heavy-duty vehicles are priced under $100 000 and some go over $450 000, the added cost for OBD compliance is considered to be insignificant. In addition, as described previously, it is expected that these costs would be partially offset by the savings from reduced maintenance costs. Emission control systems working throughout the life of the engines will translate into engines being less likely to require service.

Incremental costs would be incurred by the federal government associated with the administration of the proposed Amendments to supplement the existing program under the Regulations. The major cost components would include regulatory administration, compliance promotion, compliance verification and enforcement activities related to the proposed OBD system requirements for heavy-duty vehicles. The incremental total annual cost to government to implement the proposed Amendments would vary from year to year and is estimated to be up to $50 000 per year during the initial years of implementation.

As the proposed Amendments are structured in a manner that helps deliver the environmental objective of reducing emissions from heavy-duty vehicles and engines and minimize the regulatory burden on companies, the overall net impact of the proposed Amendments is expected to be positive.

Consultation

In recent years, several regulations have been adopted based on a policy of alignment with U.S. standards, including the Regulations, the Off-Road Small Spark-Ignition Engine Emission Regulations and the Off-Road Compression-Ignition Engine Emission Regulations. The consultations associated with the development of each of those regulations revealed a broad consensus that Canada’s regulatory emission standards for on-road and off-road vehicles and engines should be based on alignment with corresponding U.S. federal requirements. Stakeholders have generally identified that the integrated nature of the Canadian/American economy and the implementation of aggressive national programs for on-road and off-road vehicles and engines by the U.S. EPA are two key elements supporting a policy of alignment with the U.S. federal programs as a logical approach for Canada to achieve significant emission reductions in a cost-effective manner.

In October 2010, the intent to propose amendments to the Regulations to include new requirements for OBD system standards for engines used or intended to be used in heavy-duty vehicles that have a GVWR of more than 6 350 kg was signalled by Environment Canada via email as part of a prepublication consultation package to stakeholders. The list of stakeholders includes other federal departments, the industry, associations representing the industry and non-governmental organizations. The consultation indicated that there was broad support for the proposed Amendments.

Implementation, enforcement and service standards

Implementation

Environment Canada administers a comprehensive program to monitor compliance with vehicle and engine emission standards. Manufacturers and importers will be responsible for ensuring that their products comply with the proposed Amendments and will be required to maintain and produce evidence of such conformity. Environment Canada’s program to monitor compliance includes

  • authorizing and monitoring use of the national emissions mark;
  • monitoring vehicle and engine importation;
  • reviewing company evidence of conformity;
  • monitoring data submission for compliance with the emissions averaging program;
  • registering company notices of defects affecting emission controls;
  • inspecting test engines and vehicles and their emission-related components; and
  • laboratory testing of emissions of new engine and vehicle samples that are representative of products offered for sale in Canada.

Environment Canada coordinates efforts with the U.S. EPA by sharing information to increase program efficiency and effectiveness.

If an engine or vehicle is found not to comply with the proposed Amendments, the manufacturer or importer will be subject to the enforcement provisions of CEPA 1999. In this situation, the normal course of events is to first perform an engineering assessment to determine if a notice of defect should be issued.

Environment Canada also plans to undertake various compliance promotion activities such as providing information to regulatees concerning the requirements of the proposed Amendments; maintaining a Web page related to the proposed Amendments on Environment Canada’s CEPA Environmental Registry to make such information widely available, distributing advisory emails and letters, and responding to inquiries as required.

Enforcement

Environment Canada’s Compliance and Enforcement Policy for CEPA 1999 will be applied when verifying compliance with the proposed Amendments. The Policy sets out the range of possible responses to alleged violations, including warnings, directions, environmental protection compliance orders, ticketing, ministerial orders, injunctions, prosecution and environmental protection alternative measures (which are an alternative to a court prosecution after the laying of charges for a CEPA 1999 violation). In addition, the Policy explains when Environment Canada will resort to civil suits by the Crown for cost recovery.

To verify compliance, enforcement officers may carry out an inspection. An inspection may identify an alleged violation, and alleged violations may also be identified by Environment Canada’s technical personnel, through information transmitted to the Department by the Canada Border Services Agency or through complaints received from the public. Whenever a possible violation of the proposed Amendments is identified, enforcement officers may carry out investigations.

When, following an inspection or an investigation, an enforcement officer discovers an alleged violation, the officer will choose the appropriate enforcement action based on the following factors:

  • Nature of the alleged violation: This includes consideration of the damage, the intent of the alleged violator, whether it is a repeat violation, and whether an attempt has been made to conceal information or otherwise subvert the objectives and requirements of the Act.
  • Effectiveness in achieving the desired result with the alleged violator: The desired result is compliance within the shortest possible time with no further repetition of the violation. Factors to be considered include the violator’s history of compliance with the Act, willingness to cooperate with enforcement officers, and evidence of corrective action already taken.
  • Consistency in enforcement: Enforcement officers will consider how similar situations have been handled in determining the measures to be taken to enforce the Act.
Service standards

According to CEPA 1999, vehicles must conform to standards prescribed by the Regulations, and evidence of conformity with those standards must be “obtained and produced in the prescribed form and manner or, if the regulations so provide, in a form and manner satisfactory to the Minister.”

For these proposed Amendments, the Department, in its administrative process, will send a response to the manufacturer or the importer once the Department receives evidence of conformity. The Department’s response will generally consist of the following:

  • acknowledgement that the evidence of conformity was received;
  • request for additional information (if necessary); and
  • acknowledgement that the evidence presented is considered to be in a form and manner that is satisfactory based on a set of criteria established by the Department.

A guidance document will also be published to present what evidence of conformity is required and what procedures should be followed when submitting required documentation. Environment Canada will strive to respond to submissions according to the timelines.

Contacts

  • Josée Lavergne
    Manager
    Regulatory Development Section
    Energy and Transportation Directorate
    Environment Canada
    351 Saint-Joseph Boulevard
    Gatineau, Quebec
    K1A 0H3
    Telephone: 819-953-1651
    Fax: 819-953-7815
    Email: Josee.Lavergne@ec.gc.ca

  • Luis Leigh
    Director
    Regulatory Analysis and Valuation Division
    Environment Canada
    10 Wellington Street, 25th Floor
    Gatineau, Quebec
    K1A 0H3
    Telephone: 819-953-1170
    Fax: 819-953-3241
    Email: Luis.Leigh@ec.gc.ca

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to subsection 332(1) (see footnote a) of the Canadian Environmental Protection Act, 1999 (see footnote b), that the Governor in Council, on the recommendation of the Minister of the Environment, pursuant to sections 160 and 162 of that Act, proposes to make the annexed Regulations Amending the On-Road Vehicle and Engine Emission Regulations (On-Board Diagnostic Systems for Heavy-Duty Engines and Other Amendments).

Any person may, within 75 days after the date of publication of this notice, file with the Minister of the Environment comments with respect to the proposed Regulations or, within 60 days after the date of publication of this notice, file with that Minister a notice of objection requesting that a board of review be established under section 333 of that Act and stating the reasons for the objection. All comments and notices must cite the Canada Gazette, Part Ⅰ, and the date of publication of this notice, and be addressed to Steve McCauley, Director General, Transportation Division, Energy and Transportation Directorate, Environmental Stewardship Branch, Department of the Environment, Gatineau, Quebec K1A 0H3 (fax: 819-953-9547; email: Steve.McCauley@ ec.gc.ca).

A person who provides information to the Minister of the Environment may submit with the information a request for confidentiality under section 313 of that Act.

Ottawa, October 20, 2011

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE ON-ROAD VEHICLE AND ENGINE EMISSION REGULATIONS (ON-BOARD DIAGNOSTIC SYSTEMS FOR HEAVY-DUTY ENGINES AND OTHER AMENDMENTS)
AMENDMENTS

1. The definitions “curb weight” and “rounded” in subsection 1(1) of the On-Road Vehicle and Engine Emission Regulations (see footnote 11) are replaced by the following:

“curb weight” means, at the manufacturer’s choice, the actual or manufacturer’s estimated weight of a vehicle in operational status with all standard equipment and weight of fuel at nominal tank capacity and the weight of optional equipment. (masse en état de marche)

“rounded” means rounded in accordance with the rounding method described in section 6 of ASTM E 29-93a of the American Society for Testing and Materials, entitled Standard Practice for Using Significant Digits in Test Data to Determine Conformance with Specifications. (arrondir)

2. Section 3 of the Regulations is replaced by the following:

3. Subject to subsection 24(7), these Regulations apply to vehicles for which the main assembly is completed in Canada and engines that are manufactured in Canada, or vehicles and engines that are imported into Canada, on or after January 1, 2004.

3. Section 4 of the Regulations is repealed.

4. (1) Paragraph 6(3)(a) of the English version of the Regulations is replaced by the following:

  • (a) any vehicle for which the main assembly was completed 15 years or more before the date of its importation into Canada; or

(2) The portion of subsection 6(4) of the Regulations before paragraph (a) is replaced by the following:

(4) For the purpose of section 152 of the Act, the prescribed vehicles and engines are the classes of vehicles and engines referred to in subsections (1) and (2) for which the main assembly is completed in Canada or that are manufactured in Canada, as the case may be, except

5. Sections 9 and 10 of the Regulations are repealed.

6. Section 16 of the Regulations is amended by adding the following after subsection (3):

(4) Subject to section 19, heavy-duty engines of a specific model year used or intended for use in heavy-duty vehicles that have a GVWR of more than 6350 kg (14,000 pounds) shall be equipped with an on-board diagnostic system that conforms to the standards applicable to engines of that model year set out in section 18, subpart A, of the CFR.

7. Section 23 of the French version of the Regulations is replaced by the following:

23. Sous réserve des articles 24 à 31, pour l’année de modèle 2009 et les années ultérieures, la valeur moyenne de NOx pour le parc d’une entreprise constitué de l’ensemble de ses véhicules légers, de ses camionnettes et de ses véhicules moyens à passagers, ne doit pas dépasser 0,07 grammes/mille.

8. Subsection 24(7) of the English version of the Regulations is replaced by the following:

(7) When calculating the average NOx value under subsection (1) for a fleet of the 2004 model year, a company may include all vehicles of that model year, including those for which the main assembly was completed before January 1, 2004.

9. Subsection 30(1) of the English version of the Regulations is replaced by the following:

30. (1) A company that acquires another company or that results from the merger of companies is responsible for offsetting, in accordance with section 29, any outstanding NOx emission deficits of the acquired company or merged companies.

10. (1) Subsection 32(2) of the Regulations is amended by striking out “and” at the end of paragraph (f), by adding “and” at the end of paragraph (g) and by adding the following after paragraph (g):

  • (h) for each model of vehicle, the start and end dates for the period of production for that model year.

(2) Section 32 of the Regulations is amended by adding the following after subsection (5):

(6) For the purpose of subsection (1), a company that acquires another company or that results from the merger of companies and that is the owner of record on May 1 is responsible for ensuring that the end of model year report is submitted.

11. Subsection 32.3(4) of the Regulations is replaced by the following:

(4) When calculating the average HC+NOx value for a subfleet of the 2006 model year, a company may include all of its motorcycles of that model year, including those for which the main assembly was completed before November 2, 2006.

12. Subsection 32.7(2) of the Regulations is replaced by the following:

(2) A company shall include the following in its end of model year report:

  • (a) a statement that each Class I, II or III motorcycle, as the case may be, imported or manufactured in Canada for sale in Canada conforms to the applicable exhaust and evaporative emission standards set out in the section of the CFR that is referred to in paragraph 17(a) or section 17.1;
  • (b) in respect of each subfleet, a statement that
    • (i) each motorcycle in the subfleet meets all of the criteria set out in paragraph 32.2(3)(a), or
    • (ii) the subfleet contains motorcycles that do not meet all of the criteria set out in paragraph 32.2(3)(a), but the subfleet conforms to the emissions averaging requirements set out in paragraph 32.2(3)(b), or the group of motorcycles referred to in subparagraph 32.2(3)(b)(ii) conforms to the emissions averaging requirements set out in paragraph 32.2(3)(b);
  • (c) for each class, the total number of motorcycles and their model; and
  • (d) for each model of motorcycle, the start and end dates for the period of production for that model year.

13. Paragraph 35(1)(c) of the Regulations is replaced by the following:

  • (c) a copy of the records submitted to the EPA in support of the application or amended application for the EPA certificate in respect of the vehicle or engine; and

14. The heading “GENERAL PROVISIONS” before section 39 of the Regulations is replaced by the following:

EVIDENCE OF CONFORMITY

15. (1) The portion of subsection 39(1) of the Regulations before paragraph (a) is replaced by the following:

39. (1) Subject to subsections (1.1) and (2), for the purposes of paragraph 153(1)(b) of the Act, any person importing a vehicle into Canada shall submit, prior to the importation, a declaration to the Minister, signed by that person or their duly authorized representative, that contains the following information:

(2) Paragraph 39(1)(c) of the Regulations is replaced by the following:

  • (c) the expected date of importation;

(3) Clause 39(1)(f)(i)(B) of the English version of the Regulations is replaced by the following:

  • (B) the U.S. emission control information label referred to in paragraph 35(1)(d) showing that the vehicle conformed to the EPA emission standards in effect when its main assembly was completed, or

(4) Subparagraph 39(1)(f)(ii) of the English version of the Regulations is replaced by the following:

  • (ii) a statement from the manufacturer or its duly authorized representative that the vehicle conformed to the standards set out in these Regulations, or to the standards referred to in clause (i)(B) or (C), when its main assembly was completed.

(5) Section 39 of the Regulations is amended by adding the following after subsection (1):

(1.1) A person that is not a company and that imports 10 vehicles or less in a calendar year is exempt from the obligation of submitting the declaration to the Minister.

16. Section 40 of the Regulations is replaced by the following:

40. (1) Subject to subsection (2), for the purposes of paragraph 153(1)(b) of the Act, any person importing an engine into Canada shall submit, prior to the importation, a declaration to the Minister, signed by that person or their duly authorized representative, that contains the following information:

  • (a) the name, street address and, if different, mailing address of the importer;
  • (b) the name of the manufacturer of the engine;
  • (c) the expected date of importation;
  • (d) a description of the engine;
  • (e) in the case of a company, a statement that the engine bears the national emissions mark or that the company has the evidence of conformity referred to in section 35 or 36; and
  • (f) in the case of a person that is not a company,
    • (i) a statement from the person that the engine bears
      • (A) the national emissions mark,
      • (B) the U.S. engine information label referred to in paragraph 35(1)(d) showing that the engine conformed to the EPA emission standards in effect at the time of its manufacture, or
      • (C) a label showing that the engine conformed to the emission standards of the California Air Resources Board in effect at the time of its manufacture, or
    • (ii) a statement from the manufacturer or its duly authorized representative that the engine conformed to the standards set out in these Regulations, or to the standards referred to in clause (i)(B) or (C), at the time of its manufacture.

(2) A person that is not a company and that imports 10 engines or less in a calendar year is exempt from the obligation of submitting the declaration to the Minister.

17. The portion of section 42 of the Regulations before paragraph (a) is replaced by the following:

42. A company that imports a vehicle or engine in reliance on subsection 153(2) of the Act shall submit, prior to the importation, a declaration to the Minister, signed by its duly authorized representative, that contains the information described in paragraphs 39(1)(a) to (e) or 40(1)(a) to (e), as the case may be, and, in addition,

18. (1) Paragraph 44(1)(b) of the French version of the Regulations is replaced by the following:

  • b) le nom de la province ou du pays sous le régime des lois duquel elle est constituée;

(2) Paragraph 44(2)(c) of the Regulations is amended by adding “and” at the end of subparagraph (iii) and by repealing subparagraph (v).

19. Paragraph 45(3)(d) of the Regulations is replaced by the following:

  • (d) the total number or percentage of vehicles or engines repaired by or on behalf of the company, including vehicles or engines requiring inspection only.

COMING INTO FORCE

20. These Regulations come into force on the day on which they are registered.

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