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Regulatory Alert

EPA Proposes Major Changes to DEF “Derates”

EMA Regulatory Counsel Contacts:
Jeff Leiter and Jorge Roman
 

Thursday, July 16, 2026 – EPA has proposed substantial changes to the way diesel engines respond when they detect low diesel exhaust fluid (DEF), poor-quality DEF or possible tampering with selective catalytic reduction (SCR) systems.

The DEF provisions are part of a much broader EPA proposal addressing model year 2027 and later heavy-duty diesel-engine emissions requirements. The larger rulemaking would revise emission-related warranty periods, delay certain extended useful-life requirements, authorize nonconformance penalties for some medium- and heavy-heavy-duty engines, amend testing and diagnostic provisions, and revise requirements for SCR-equipped highway and nonroad engines. EPA is not proposing to repeal the underlying model year 2027 nitrogen-oxide and particulate-matter standards.

Current SCR systems commonly use “inducements” or “deratements” — progressive reductions in engine power or vehicle speed — to compel operators to refill the DEF tank or correct an emissions-system problem. EPA acknowledges that derates have caused operational and safety problems for truckers, farmers, motorcoach operators and other diesel-equipment users. Defective sensors, corroded wiring and diagnostic errors can trigger derates even when the operator has used proper DEF and has not tampered with the system.

Under the Agency’s proposal, original equipment manufacturers generally would replace DEF-related engine and speed derates with visible and audible warnings. For a low-DEF level, a 90-second alarm would begin approximately three hours before the tank is empty (or when the tank reaches 2.5 percent full), repeat 30 and 60 minutes after the tank runs empty, and then repeat hourly. Poor DEF quality or suspected tampering would trigger a separate, less frequent warning. Derates would not disappear entirely, as manufacturers could still apply a derate where continued operation would damage the engine or aftertreatment system, and any optional speed reduction would have to phase in gradually — no more than one mile per hour every five minutes. EPA is seeking comment on all aspects of the proposed inducement changes, including whether the proposed warnings are sufficient.

The warning-based system would become mandatory for new engines no later than model year 2029, although manufacturers could adopt it earlier. EPA also proposes requiring engines to compensate for reasonable variations in DEF concentration and generally would not require a DEF-quality warning unless urea concentration falls below 20 percent, compared with the normal 32.5 percent concentration.

For EMA members that sell DEF, the proposal likely would have limited direct effect on overall DEF demand. Trucks and equipment would still require DEF for SCR systems to meet emissions standards, and operators would remain responsible for maintaining an adequate supply of commercially available, properly formulated DEF. Indeed, EPA says that DEF is now widely available and that operators routinely purchase it when refueling with diesel.

The commercial effects are therefore more likely to involve purchasing patterns than total consumption. Fewer sudden derates could reduce emergency purchases of packaged DEF made solely to restore vehicle operation. At the same time, fewer false failures and less operator frustration may discourage tampering and could reinforce routine DEF use, potentially supporting pump, bulk and regularly scheduled DEF sales.

Some industry groups are questioning EPA’s proposal, stating that eliminating mandatory derates will invite consumer confusion and threatens to decrease DEF’s availability and increase its price, and adding that EPA should instead allow its 2025 and early-2026 guidance — software updates, NOx sensors in place of urea-quality sensors, and adjusted derate schedules — to take effect before fundamentally altering the regulatory backdrop for DEF.

Comments are due by August 29, 2026 (Docket No. EPA-HQ-OAR-2026-0728), and EPA will hold virtual public hearings on July 29 and 30, 2026.