Regulatory uncertainty about US EPA 2027 heavy-duty standards spills into Canada
3 November 2026
Canada’s Minister of the Environment issued an Interim Order that aligns certain provisions of Canadian emission regulations for light-, medium-, and heavy-duty engines and vehicles with those by the US Environmental Protection Agency (EPA).
In particular, the Interim Order aligns Canadian requirements for model year 2027 and later heavy-duty engines with the US EPA 2027 rule, as originally published in the US Federal Register in January 2023 [5724]. EPA 2010 engines will still be allowed into Canada for MY 2027 provided they were manufactured before December 20, 2026. Prior to this Interim Order, Canada had not yet adopted the EPA 2027 emission standards.
In July 2026, the EPA proposed several changes to the 2027 regulation that have not yet been finalized. This creates some uncertainty regarding the importation of heavy-duty trucks and buses into Canada in 2027 because very few engines, if any, sold in the United States during the first several months of 2027 will fully comply with the EPA 2027 standards.
The EPA amendments proposed in July relax certain provisions of the 2027 regulation, such as the regulatory emission warranty and useful life periods, and the driver inducement rules for vehicles with SCR systems. To provide more regulatory lead time for manufacturers, the proposal introduces non-conformance penalties (NCP) that allow manufacturers to temporarily continue sales of non-compliant engines past the regulatory compliance dates. While pre-made 2010 compliant engines will be allowed into Canada, it is currently unclear how engines subject to NCPs will be treated.
The general approach to setting vehicle emission standards in Canada has been to harmonize them with US EPA federal standards. An important aspect of this harmonization is the recognition of emission certificates issued by the US EPA. Most vehicles and engines are sold in Canada under the principle of concurrent sales, meaning that if a vehicle or an engine of a given model year is sold concurrently in Canada and the United States, the US EPA emission certificate is recognized as a proof of emission compliance and the vehicle or engine does not require a Canadian emission approval.
According to trade media estimates, the price increase for an EPA 2027-compliant engine is expected to be between US$10,000 and $16,000 per truck, while the non-compliance penalties will likely be in the $7,000-$8,000 range. If non-compliant engines can indeed be sold in the United States at a price advantage, they are likely to be available for most of 2027 and beyond. Among engine manufacturers, only Daimler announced the availability of the EPA 2027-compliant Detroit Gen 6 DD13 and DD15 engines from January 2027 (with the DD16 to follow in January 2028).
The Interim Order is valid for one year or until the relevant regulations are amended. A Final Order is expected later this year.
Among other provisions, the Interim Order suspends the application of GHG emission standards for heavy-duty trailers and introduces a number of modifications to the Canadian regulations to maintain alignment with the current US EPA emission standards for light-duty vehicles and with the EPA vehicle classifications.
Source: Canada Gazette, Part I | trucknews.com