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CTA Supports ECCC’s Informed Policy Discussion on GHG Trailer Rule

Environment and Climate Change Canada (ECCC) yesterday informed the Canadian Trucking Alliance (CTA) it is proceeding with a policy to further delay the implementation of the trailer standards in Canada for up to one year. The development, which comes in the form of a second Interim Order Modifying the Operation of the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (Trailer Standards), will continue to push the implementation date in Canada while the U.S. continues to leave its own rule on hold.

The trucking industry is the only freight mode mandated to use equipment regulated for both carbon reductions and air quality improvements. Phase II of the Environment Climate Change Canada’s GHG regulations for trailers, which mirror those of the United States Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA), introduced new requirements for heavy-duty trailers in North America. The regulations were supported by both the CTA and the American Trucking Association (ATA). However, after both rules were introduced, legal challenges in the U.S. specific to the trailer rule and compliance period put the rule in the U.S. on hold. It continues to be suspended in 2020.

As a result of the US legal issues and questions surrounding the integration of manufacturing practices for North American trailer makers, CTA requested ECCC re-examine the specifics of the Canadian trailer rule in light of the U.S. delay and its impact on the Canadian industry and timelines for compliance. Both the Canadian trucking and trailer manufacturing community supported the call. After reviewing the situation, ECCC informed stakeholders it would issue interim order delaying implementation and compliance requirements in Canada until May 2020 so that further analysis could be undertaken. ECCC’s latest decision effectively expands the delay for up to a year while the department continues to review the situation.

States ECCC:

“The U.S. Environmental Protection Agency (U.S. EPA) trailer standards continue to be legally stayed, and ECCC continues to monitor U.S. developments, as well as the economic impacts if Canada proceeded to implement the trailer standards without the standards of the U.S. EPA being in force. The purpose of the second Interim Order is to provide time to conduct further analysis on the economic impacts of implementing trailer standards in Canada to inform a future decision on whether Canada should maintain or amend its trailer standards. This will also allow time to consult with stakeholders on the path forward for Canada. As such, the Department intends to reach out to stakeholders this spring to present its initial analysis of economic trends in Canada’s trailer market, as well as seek comments on the next steps for trailer standards in Canada.

An invitation to participate in these consultations will be sent to interested parties at a later time… This has allowed the Department time to begin assessing the concerns from Canada’s trailer industry on potential adverse economic impacts if Canada proceeded to implement the trailer standards without the standards of the U.S. EPA being in force. It is expected that the second Interim Order will be made before May 27, 2020, to avoid a regulatory gap, and will be published in the Canada Gazette this spring. Note that the Interim Order will not affect any provisions related to the vehicle and engine standards of the Regulations.”

CTA will continue to work with ECCC and its membership through this process and keep the industry informed.

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