Memorandum of Understanding - Marine Spark-Ignition Engine Exhaust Emissions Standards

1.0 PURPOSE

1.1 The purpose of this Memorandum of Understanding (MOU) between Environment Canada and the Canadian Marine Manufacturers Association (CMMA) is to set out the terms and conditions applicable to the control of exhaust emissions from new marine spark-ignition engines marketed and sold in Canada beginning with the 2001 model year.

1.2 This non-regulatory program, while considered acceptable to both parties concerned, does not preclude the Government of Canada from introducing new regulations under the Canadian Environmental Protection Act (CEPA) and in accordance with the Government of Canada's regulatory process.

1.3 The parties to this MOU recognize and acknowledge the benefits of harmonized Canadian and United States marine spark-ignition engine emission control programs. This forms the basis for this agreement.

2.0 DEFINITIONS

In this Memorandum of Understanding:

2.1 Marine spark-ignition engine means any engine used to propel a marine vessel, which utilizes the spark ignition (SI) cycle.

2.2 Outboard engine (OB) is a marine spark ignition engine that, when properly mounted on a marine vessel in the position to operate, houses the engine and drive unit external to the hull of the marine vessel.

2.3 Personal watercraft engine (PWC) is a marine SI engine that does not meet the definition of outboard engine, inboard engine or sterndrive engine.

2.4 Inboard engine means a four stroke marine SI engine that is designed such that the propeller shaft penetrates the hull of the marine vessel while the engine and the remainder of the drive unit is internal to the hull of the marine vessel.

2.5 Sterndrive engine means a four stroke marine SI engine that is designed such that the drive unit is external to the hull of the marine vessel, while the engine is internal to the hull of the marine vessel.

2.6 Existing Technology OB/PWC means an Existing Technology outboard engine or personal watercraft engine as described in the United States Code of Federal Regulations (CFR) Title 40, Part 91, Sub-part A, Section 91.3-Definitions.

2.7 New Technology OB/PWC means all outboard engines or personal watercraft engines other than those described in 2.6.

3.0 AGREEMENT

Both parties understand and mutually agree that:

3.1 Beginning in the 2001 model year and subject to section 3.2, marine spark-ignition engines made available for sale in Canada by the undersigned company shall have been issued a Certificate of Conformity as applicable under the United States Code of Federal Regulations, Title 40, Part 91 pertaining to the applicable model year. These requirements are commonly known as the United States Environmental Protection Agency (U.S. EPA) federal exhaust emission standards as they pertain to Marine Spark-Ignition Engines.

3.2 All new applicable marine spark-ignition engines made available for sale in Canada by the undersigned company beginning with the 2001 model year shall demonstrate compliance with the requirements referenced in paragraph 3.1. Compliance to said requirements cited in paragraph 3.1 shall, upon request, be demonstrated by:

• Production of the valid U.S. EPA certificate of conformity and supporting data for the model.

3.3 The undersigned company shall affix a permanent, legible label in a readily accessible position on every 2001 and later model year applicable marine spark-ignition engine made available for sale in Canada, in such a manner that the label cannot be removed without being destroyed or defaced. The information provided on the label, and where applicable, in the Owner's Manual, shall meet the requirements, as written, in Part 91, Sub-part B, Section 113 of the U.S. EPA requirements. All required information in the French language to be contained exclusively in the owner's manual or other documents to be supplied to the original retail purchaser at the time of first delivery.

3.4 The undersigned company will cover all new 2001 and later model year marine spark-ignition engines made available for sale in Canada with an emissions Design and Defect Warranty and emissions non-compliance recall provisions which, as a minimum, reflect the level of coverage offered to marine spark-ignition engines sold in the United States in accordance with U.S. EPA Federal requirements for the applicable model year. The undersigned company shall also furnish with each new marine spark-ignition engine, in English and French, a full explanation of the emissions warranty coverage which is consistent with the information provided with marine spark-ignition engines sold in the United States in accordance with U.S. EPA federal requirements.

3.5 Within 30 days of receiving a request from Environment Canada, the undersigned company shall supply Environment Canada with the information necessary to verify compliance with the provisions of paragraphs 3.1, 3.3 and 3.4 of this Agreement.

3.6 Either party may terminate this MOU no sooner than 90 days following written notice to the other. Environment Canada shall notify all other signatories to the MOU in the event that an agreement has been terminated.

Signed by the Minister of the Environment and the members of the CCMA.