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To: Importers of off-road diesel engines / machinery and trade associations that represent these importers

Re: Preliminary Consultation on a Discussion Draft of the Off-Road Compression-Ignition Engine Emission Regulations

Environment Canada has prepared a discussion draft of Regulations that will establish emissions standards for off-road diesel engines. The discussion draft of the proposed regulations is being made available to solicit comments prior to the preparation of a formal proposal in the Canada Gazette, Part I, planned for Fall 2003.

This letter is to draw attention to certain aspects contained in the discussion draft of the proposed regulations that may affect an importer of compression-ignition engines or machines powered by these engines. Diesel engines operate on the "compression-ignition" cycle, thus the terms are used interchangeably herein.

The proposed regulations will be established under Part 7, Division 5 of the Canadian Environmental Protection Act, 1999 (CEPA 1999). Most of the provisions of the proposed Regulations will apply to a company which, under CEPA 1999, includes "a person who (...) imports any vehicle, engine or equipment into Canada for the purpose of sale". As defined by CEPA 1999, to sell "includes to offer for sale or lease, have in possession for sale or lease or deliver for sale or lease".

The provisions of the proposed regulations prohibit the importation of engines by a company unless they comply with the regulations. Other provisions include providing information about the engine and a statement of compliance at the time of importation, submitting records related to compliance upon request and providing notice of defect in the event of an emission defect being identified.

The proposed emission standards apply to 2006 and later model-year compression-ignition engines and are aligned with the corresponding United States Environmental Protection Agency (EPA) standards for Nonroad Compression-Ignition Engines.

The proposed Regulations are structured to minimize the administrative and financial burden since most compression-ignition engines currently supplied to the Canadian market comply with the EPA emission standards. Engines sold concurrently in Canada and the United States and covered by a valid EPA certificate of conformity can enter Canada with an appropriate declaration at the border. For other engines, it is required to demonstrate conformity with the Canadian standards prior to importation.

Records related to evidence of conformity are described in the proposed regulations together with the deadlines for their submission if requested. When an engine is covered an EPA certificate of conformity, these records include copies of the certificate of conformity, supporting documentation used to obtain this certification and evidence demonstrating concurrent sales in Canada and the United States. Companies are responsible for providing these records upon request but the proposed regulations do not oblige companies to maintain them.

A company importing a compression-ignition engine or a machine powered by such an engine is required to submit a declaration of conformity at the time of importation. The declaration can be added to a commercial invoice that contains the information required to accompany the declaration. Bulk declaration is allowed for companies importing more than 50 engines in a calendar year.

The discussion draft is available for electronic retrieval. Please contact Mr. Morrie Kirshenblatt at 819-953-0914 (offroad_comments@ec.gc.ca) if you have any questions.

Sincerely,
Ross M. White Director
Transportation Systems Branch
Environment Canada
351 St-Joseph Blvd
Gatineau QC K1A 0H3

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