emissions standards

Canadian equipment prices to rise with emission rules

OTTAWA, ON - The federal government has published its plans for new Greenhouse Gas limits that will apply to 2018-29 Model Year equipment, effectively mirroring changes introduced by the U.S. Environmental Protection Agency (EPA). The required upgrades will cost Canada's trucking industry an extra $4.1 billion, but save $10.3 billion in fuel, according to the Department of the Environment. When considering the overall lifespan of the affected vehicles, net benefits are expected to reach $8.8 billion between 2018 and 2050. The upgrades are projected to add 8% to the cost of a typical 2027 Model Year tractor, or $11,322. Vocational vehicles in the same model year will cost an extra 4%, or $4,369. Trailers - introduced in emissions standards for the first time beginning with the 2018 Model Year - will see an average 4% price bump on 2027 models. That will be up $1,237. Heavy-duty pickup trucks and vans, meanwhile, will see price tags increase an average of 3% or $1,324 per vehicle.

Cleaner air, higher equipment prices

Clean air comes at a cost, and that is particularly apparent whenever regulators tighten the limits on emissions. Luckily, Phase II Greenhouse Gases rules will improve fuel economy, giving truckers a chance to recoup the investments on 2018-27 Model Year equipment. That's the good news. While Environment Canada traditionally aligns its rules with the U.S. Environmental Protection Agency, that could threaten some uniquely Canadian spec'ing options. Research into everything from tires to 6x2 tractors will continue as regulators prepare to unveil Canadian versions of the rules.