Canada Gazette, Part I, Volume 160, Number 44: ORDERS IN COUNCIL

October 31, 2026

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Order Approving the Interim Order Modifying the Operation of Certain Regulations Made Under the Canadian Environmental Protection Act, 1999

P.C. 2026-1003 October 23, 2026

Her Excellency the Governor General in Council, on the recommendation of the Minister of the Environment, under subsection 163(3) of the Canadian Environmental Protection Act, 1999^{footnote a}, approves the Interim Order Modifying the Operation of Certain Regulations Made Under the Canadian Environmental Protection Act, 1999, made by the Minister of the Environment on October 13, 2026.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

Pursuant to subsection 163(3) of the Canadian Environmental Protection Act, 1999 (CEPA), this Order approves the Interim Order Modifying the Operation of Certain Regulations Made Under the Canadian Environmental Protection Act, 1999 (the Interim Order), made by the Minister of the Environment (the Minister) on October 13, 2026. The Interim Order suspends the application of the greenhouse gas (GHG) emission standards for trailers in the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations. The Interim Order modifies the operation of the On-Road Vehicle and Engine Emission Regulations to maintain alignment with the United States Environmental Protection Agency (U.S. EPA) air pollutant emission standards for on-road vehicles and engines, and to update references to the United States (U.S.) Code of Federal Regulations. The Interim Order also modifies the operation of the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations to maintain alignment with the U.S. EPA vehicle classifications. This Order of the Governor in Council extends the Interim Order for a period of up to one year from the date the Interim Order was made by the Minister.

Objective

The objective of this proposal is to extend the Interim Order made by the Minister for a period of up to one year to ensure continued alignment with the U.S. EPA on various Canadian emission regulations following recent amendments to the corresponding provisions of the U.S. Code of Federal Regulations.

Background

The Department of the Environment (the Department) has historically aligned its vehicle and engine emission regulations made under Part 7, Division 5 of the CEPA with the standards set out in the U.S. Code of Federal Regulations, providing significant environmental and economic benefits for both industry and the Canadian government while enhancing the competitiveness of the Canadian automotive industry.

Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations

The Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations set GHG emission standards for heavy-duty vehicles and engines beginning with the 2014 model year and for trailers manufactured on or after January 1, 2020. These regulations apply to companies that manufacture or import new on-road heavy-duty vehicles, engines and trailers for sale in Canada.

The Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations were amended in 2018 to introduce, among other regulatory changes, new GHG emission standards for trailers hauled by on-road transport tractors. Given the integration of the North American vehicle manufacturing sector, these standards were aligned with corresponding standards and test procedures set out in the final rule Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles — Phase 2 (referred to as Phase 2) published by the U.S. EPA in October 2016. However, following a successful legal challenge, the Phase 2 GHG emission standards for trailers were never implemented in the United States, and following the publication of the final rule Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles — Phase 3 (referred to as Phase 3) by the U.S. EPA in April 2024, the Phase 2 GHG emission standards for trailers were repealed.

The analysis of the Department indicates that Canadian companies would be at a competitive disadvantage if the trailer standards were to apply in Canada. Most Canadian trailer manufacturers and trucking businesses are small relative to those in the United States and have a lower share of the North American trailer market. These smaller companies have fewer opportunities to spread the costs of compliance with trailer standards across their operations.

Without the Interim Order, companies subject to the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations would be required to meet the trailer standards set out in these regulations.

On-Road Vehicle and Engine Emission Regulations

The On-Road Vehicle and Engine Emission Regulations set air pollutant emission standards for both light-duty vehicles and heavy-duty vehicles and engines beginning with the 2004 model year. These regulations have been amended from time to time to align with corresponding standards and test procedures in the U.S. Code of Federal Regulations, including those set out in the final rule Control of Air Pollution from Motor Vehicles: Tier 3 Motor Vehicle Emission and Fuel Standards (referred to as Tier 3) published by the U.S. EPA in April 2014. This alignment is achieved by using dynamic incorporation by reference of the standards of the U.S. Code of Federal Regulations.

In January 2023, the U.S. EPA published the final rule Control of Air Pollution from New Motor Vehicles: Heavy-Duty Engine and Vehicle Standards, which introduced more stringent air pollutant emission standards for heavy-duty vehicles and engines starting in model year 2027 and updated maintenance instructions and labelling requirements. The standards that apply to model year 2027 and later are now set out in parts 1036 and 1037 of the U.S. Code of Federal Regulations, whereas the standards that apply to model year 2026 and earlier remain in part 86 of the U.S. Code of Federal Regulations. References to the U.S. Code of Federal Regulations in the On-Road Vehicle and Engine Emission Regulations need to be updated to maintain alignment with U.S. air pollutant emission standards and to continue recognizing EPA-certified heavy-duty vehicles and engines in Canada.

In April 2024, the U.S. EPA published the final rule Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles (referred to as Tier 4), which introduced more stringent air pollutant emission standards for light-duty vehicles and medium-duty (Class 2B and 3) vehicles of model years 2027 to 2032, new and amended definitions, revised nomenclature, and provisions to differentiate the Tier 3 and Tier 4 standards. That same final rule also introduced more stringent GHG emission standards that have since been repealed by the U.S. EPA.

Despite the use of dynamic incorporation by reference, the On-Road Vehicle and Engine Emission Regulations do not include certain new and amended U.S. Code of Federal Regulations definitions, new provisions that are set out in different parts of the U.S. Code of Federal Regulations than those currently incorporated, and the new phase-in flexibility and fleet average requirements for light- and medium-duty vehicles. Therefore, modifications to the On-Road Vehicle and Engine Emission Regulations are needed to maintain alignment with the U.S. Code of Federal Regulations as amended by the January 2023 and April 2024 final rules of the U.S. EPA.

In May 2026, the U.S. EPA published a notice of proposed rulemaking titled Revision of Tier 4 Criteria Pollutant Standards, Part 1: Amendments to Phase-In Schedule for Light-Duty and Medium-Duty Vehicles, which proposes to delay the implementation of the Tier 4 standards for light- and medium-duty vehicles by two years to begin in model year 2029. The purpose of this proposed rule is to provide the U.S. EPA with additional time to reconsider the Tier 4 standards in a subsequent rulemaking. If finalized as written, this rule would allow companies to continue to comply with the Tier 3 standards for model years 2027 and 2028. However, until a final rule has been published, the Tier 4 standards remain in effect and are set to begin in model year 2027. During the time that the Interim Order remains in effect, it is expected that any changes to the implementation of the Tier 4 standards in the United States would also apply in Canada through the continued use of dynamic incorporation by reference.

In July 2026, the U.S. EPA published a notice of proposed rulemaking titled Amendments and Nonconformance Penalties for Model Year 2027 and Later Heavy-Duty Highway Engines and Amendments to Inducement Provisions for SCR-Equipped Diesel Engines, which proposes to amend certain compliance provisions and test procedures related to model year 2027 and later heavy-duty vehicles and engines. If the proposed amendments are finalized as written, they would include changes to useful life periods and emission-related warranty requirements, introduce non-conformance penalties, and require visible and audible notifications instead of engine derates for diesel engines equipped with selective catalytic reduction systems. During the time that the Interim Order remains in effect, it is expected that any changes to the useful life periods, requirements for inducements related to selective catalytic reduction, and emission-related maintenance instructions would also apply in Canada through the continued use of dynamic incorporation by reference.

The current misalignment with the U.S. Code of Federal Regulations could prevent companies subject to the On-Road Vehicle and Engine Emission Regulations from importing EPA-certified model year 2027 and later heavy-duty vehicles and engines. This misalignment could also allow companies to manufacture or import new heavy-duty vehicles and engines in Canada that comply with less stringent air pollutant emission standards than those of the U.S. EPA, resulting in relatively higher emissions of air pollutants and thus relatively lower public health outcomes.

Furthermore, without the Interim Order, companies would still be required to meet the Tier 4 standards for individual test groups of light- and medium-duty vehicles, but they would not be subject to the fleet average requirements. Rather than being required to meet the progressively more stringent Tier 4 fleet average emission standards each year, companies could instead continue to certify individual test groups to the highest allowable emission bin of the Tier 4 standards. As a result, companies would not face regulatory pressure to improve the emissions performance of Canadian fleets.

In addition, as currently written, the On-Road Vehicle and Engine Emission Regulations do not provide the flexibilities and ancillary regulatory requirements that were introduced in the United States for the Tier 4 standards. The differences in the Canadian and U.S. compliance regimes could place administrative and compliance burden on companies subject to the On-Road Vehicle and Engine Emission Regulations.

Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations

The Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations set GHG emission standards for light-duty vehicles beginning with the 2011 model year. These regulations have been amended from time to time to align with corresponding standards and test procedures in the U.S. Code of Federal Regulations.

Following the publication of the Tier 4 final rule by the U.S. EPA in April 2024, certain definitions in the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations are not aligned with corresponding definitions in the U.S. Code of Federal Regulations relating to vehicle classifications and therefore must be updated. This will ensure vehicles are categorized in the same way in Canada and the United States regarding their compliance with their respective emission standards.

Interim orders

Six ministerial interim orders covering the period from May 2019 to February 2025, all entitled Interim Order Modifying the Operation of the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (Trailer Standards), were successively made that suspended the application of the GHG emission standards for trailers, such that these trailer standards have never applied in Canada. These interim orders responded to the concerns raised by trailer manufacturers and the economic implications assessed by the Government of proceeding with the implementation of the standards for trailers in the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations while the standards were not in effect in the United States.

On January 31, 2025, a seventh ministerial interim order, titled Interim Order Modifying the Operation of Certain Regulations Made Under the Canadian Environmental Protection Act, 1999, was made to extend the suspension of the GHG emission standards for trailers. This interim order also updated a reference used to calculate GHG emissions from light-duty plug-in hybrid electric vehicles and revised the definition of medium-duty passenger vehicle to maintain regulatory alignment with the United States following the publication of the Tier 4 final rule in April 2024. A similar eighth ministerial interim order was made on November 24, 2025, and it was repealed when the Interim Order was made on October 13, 2026.

Implications

CEPA provides the authority for an interim order to suspend or modify the operation of regulations governing emissions from vehicles, engines, and equipment for a period of up to one year to respond to an enactment of a foreign government that is amended where the regulations in Canada are aligned with those in the other country. Pursuant to subsection 163(1) of CEPA, the Minister can issue an interim order to maintain alignment.

In accordance with subsection 163(3) of CEPA, the Interim Order will cease to have effect 14 days after it is made unless approved by the Governor in Council. This Order of the Governor in Council approves the Interim Order to suspend the application of GHG emission standards for trailers in Canada, to update references and provisions to maintain alignment with the U.S. EPA’s air pollutant emission standards for light- and medium-duty vehicles and heavy-duty vehicles and engines, and to make other ancillary changes such as revisions to definitions. In accordance with subsection 163(5) of CEPA, the Interim Order will cease to have effect if it is repealed, if the regulations are amended or repealed to give effect to the Interim Order, or one year after the Interim Order is made, whichever is earlier. Given the integrated nature of the North American market, issuing the Interim Order is necessary to continue to maintain regulatory alignment with the U.S. in the short term. The Interim Order is not anticipated to have any negative effect on recent trade actions between the United States and Canada.

Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations

Suspending the implementation of the GHG emission standards for trailers in Canada by another model year would decrease the estimated GHG emission reductions of the 2018 amendments to the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations by 0.7 megatonnes (Mt) of carbon dioxide equivalent (CO₂e) over the lifetime operation of trailers of model year 2028. For trailers of model years 2020 to 2028 combined, delaying the trailer standards by another model year with the Interim Order is anticipated to lead to forgone GHG emission reductions of approximately 4.5 Mt of CO₂e, or 0.5 Mt of CO₂e on average per model year, over the portion of the lifetime operation of this cohort of trailers that occurs during the 2020–2050 period.

While the Interim Order is in place, the trailer industry would benefit from cost savings (such as avoided compliance costs and investment in new technologies), but it would not realize the expected benefit of fuel savings associated with the adoption of technologies to meet the trailer standards.

On-Road Vehicle and Engine Emission Regulations

The vehicles and engines targeted by the Interim Order are a significant source of air pollutant emissions, including fine particulate matter (PM_2.5), nitrogen oxides (NO_x), volatile organic compounds (VOCs), carbon monoxide (CO), sulphur dioxide (SO₂), and other toxic substances. These pollutants can affect ambient levels of secondarily formed PM_2.5 and ozone. Exposure to ozone and PM_2.5 (two principal components of smog) is linked to adverse health impacts, such as premature deaths, as well as other important health and environmental effects. Air pollutant emissions may disproportionately impact children, elderly people, individuals with underlying health conditions and people living in high exposure areas.

While maintaining alignment with the more stringent air pollutant standards of the U.S. EPA would increase compliance costs for companies manufacturing or importing on-road vehicles or engines in Canada, it would mitigate traffic-related air pollution, delivering health benefits to the Canadian population. It would also help minimize compliance burden for companies that produce or sell vehicles and engines in both the United States and Canada. The Department intends to complete a full cost-benefit analysis of the more stringent air pollutant standards when regulatory amendments are proposed to give permanent effect to the standards.

This Interim Order provides regulatory certainty to companies subject to the On-Road Vehicle and Engine Emission Regulations regarding the manufacture and import of these vehicles and engines. This Interim Order will also ensure that companies can import EPA-certified model year 2027 vehicles and engines, which meet more stringent air pollutant standards, into Canada. In addition, revisions to some definitions are expected to reduce administrative burden on companies and support overall compliance with the Canadian regulations.

Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations

Aligning with certain revised definitions in the U.S. Code of Federal Regulations is expected to reduce administrative burden on companies and support overall compliance with the Canadian regulations. The revised definitions of automobile and work truck in the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations will enable companies that manufacture large battery-electric passenger vehicles to obtain credits for these vehicles under the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations. These vehicles would otherwise be considered heavy-duty vehicles and subject to the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations. The revised definition of electric vehicle will direct companies to the relevant emission bin in the U.S. Code of Federal Regulations following a change in the United States specifying that electric vehicles must be certified to bin 0 emission standards.

Right to a healthy environment

The Government of Canada has a duty, in the administration of CEPA, to protect the right to a healthy environment as provided for under CEPA, subject to reasonable limits. An implementation framework sets out considerations to protect this right and uphold the principles described in the framework.

During the development of the Interim Order, the Department considered environmental, health, and economic factors associated with maintaining alignment with the United States on trailer GHG emission standards and vehicle and engine air pollutant emission standards.

The Interim Order would lead to some forgone GHG emission reductions in the heavy-duty trailer sector. On the other hand, maintaining regulatory harmonization with the United States in this sector will help prevent unintended economic consequences that would result from heavy-duty trailer requirements unique to Canada. By maintaining alignment with air pollutant emission standards in the United States, this Interim Order contributes to an environment that has clean and healthy air by reducing air pollution from new on-road vehicles and engines. An improvement in air quality further supports the principle of environmental justice because certain marginalized groups face increased exposure to or are subject to increased risks associated with air pollution; as a result, they can experience disproportionate negative health outcomes relative to non-marginalized groups. This regulatory harmonization is also expected to help prevent trade disruptions for companies operating in the integrated North American market, eliminating unintended economic consequences due to non-harmonization.

The Department considered the impacts of the Interim Order on Indigenous rights by completing an Assessment of Modern Treaty Implications as required by the Cabinet Directive on Regulation, as well as an analysis to ensure consistency with the United Nations Declaration on the Rights of Indigenous Peoples Act.

The Assessment of Modern Treaty Implications examined the geographic scope and subject matter of the Interim Order in relation to modern treaties in effect. The Assessment identified that some regulated parties are located on Tsawwassen First Nation modern treaty land. The Department had met with Tsawwassen First Nation in December 2024 to discuss a regulatory proposal that intended to address the issues in the Interim Order, among other changes, and no concerns with the regulatory proposal were raised by Tsawwassen First Nation at that time.

The United Nations Declaration on the Rights of Indigenous Peoples is an international human rights instrument that sets out minimum standards for the survival, dignity and well-being of Indigenous peoples. Through the United Nations Declaration on the Rights of Indigenous Peoples Act, the Government of Canada is committed to taking effective measures, including legislative and policy measures, in consultation and cooperation with Indigenous peoples, to advance implementation of the United Nations Declaration on the Rights of Indigenous Peoples. The Interim Order may contribute to the implementation of the United Nations Declaration on the Rights of Indigenous Peoples by protecting the environment in accordance with Indigenous peoples’ perspectives. By maintaining alignment with the U.S. EPA air pollutant standards, the Interim Order is expected to support reductions in air pollution from new vehicles.

The Department continues to protect the environment through existing GHG and air pollutant emission regulations for vehicles and engines, which have significant emission reduction impacts.

Path forward

A regulatory process is underway to amend the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations. Once finalized, these amendments will resolve misalignments with the United States on certain definitions that are addressed in this Interim Order.

The Department is planning subsequent regulatory amendments that will update Canada’s regulations for on-road vehicles and engines. It is planned that these amendments would permanently resolve the regulatory misalignments that have required the repeated use of interim orders, including the suspension of GHG emission standards for trailers in the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations, and they would bring the On-Road Vehicle and Engine Emission Regulations into alignment with U.S. air pollutant standards, while taking into account any new developments in the United States. These amendments will follow the standard regulatory development process under CEPA, including a formal comment period. The Department will work closely with stakeholders in the development of these amendments.

Consultation

The Department continues to engage with the Canadian trailer manufacturing and trucking industry, the automotive industry, and their associations on a regular basis. Based on discussions with manufacturers, it is expected that Canadian industry will support the Interim Order as it would temporarily maintain alignment with U.S. air pollutant requirements, minimize administrative and compliance burden, and provide regulatory certainty to stakeholders. In general, industry supports broad alignment of the Canadian vehicle and engine emission regulations with those of the U.S. EPA.

The Department is committed to ongoing consultation with all stakeholders, thoroughly considering the relevant issues raised, and communicating decisions with respect to these regulations in a timely manner.

Contact

Josephine Davidson
Acting Executive Director
Transportation Division
Environment and Climate Change Canada
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: infovehiculeetmoteur-vehicleandengineinfo@ec.gc.ca