Interim Order Extends Trailer GHG Suspension

Summary#

This Order approves an interim federal change that keeps Canada aligned with recent U.S. vehicle rules. It temporarily suspends greenhouse‑gas rules for certain trailers, fixes a calculation reference for plug‑in hybrid cars, and updates a vehicle‑type definition — all for up to one year from January 31, 2025.

What it does#

• Approves the Interim Order Modifying the Operation of Certain Regulations Made Under the Canadian Environmental Protection Act, 1999 made on January 31, 2025 and extends it for up to one year (about January 31, 2026).
• Suspends the greenhouse‑gas (GHG) standards for trailers in the Heavy‑duty Vehicle and Engine Greenhouse Gas Emission Regulations so those trailer standards do not come into force in Canada for now.
• Updates the reference used to calculate emissions for plug‑in hybrid light vehicles in the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations, so companies can keep calculating and reporting fleet averages.
• Revises the definition of “medium‑duty passenger vehicle” in the On‑Road Vehicle and Engine Emission Regulations to match a U.S. change that expands the gross vehicle weight rating (GVWR) range to 8,500 pounds up to 14,000 pounds starting in model year 2027.
• The Order was approved under the Canadian Environmental Protection Act, 1999 by the Governor in Council on February 14, 2025 (P.C. 2025‑90).

Who's affected#

• Canadian trailer manufacturers and trucking companies facing the trailer GHG rules.
• Automakers and importers who must report under the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations.
• Companies that build or import heavier passenger vehicles (including large battery‑electric models) that fall into the revised “medium‑duty passenger vehicle” weight range.
• Consumers may be indirectly affected by slower uptake of fuel‑saving trailer technologies and by how vehicle credits and compliance costs are passed on.
• If it’s unclear who exactly is affected in a specific case, affected companies should check whether their vehicles or trailers fall under the named regulations.

Why it matters#

• The pause keeps Canada aligned with recent U.S. regulatory changes. That avoids putting smaller Canadian trailer makers at a competitive disadvantage compared with U.S. firms.
• It delays some expected emission reductions: about 0.5 megatonnes (Mt) CO2e for the lifetime of model year 2026 trailers, and roughly 3.1 Mt CO2e over the 2020–2050 portion of the lifetime for trailers from model years 2020 to 2026 combined.
• Trailer makers and trucking firms save on near‑term compliance and investment costs, but Canadians lose some fuel‑saving benefits while the standards are delayed.
• Fixing the plug‑in hybrid calculation and the vehicle‑type definition prevents reporting problems and reduces administrative burdens for companies that would otherwise be forced to report under different (heavier‑vehicle) rules.
• The government says it will propose formal regulatory amendments over the next year to resolve the misalignment with U.S. rules.