Vol. 137, No. 5 — February 1, 2003

Regulations Amending the Disposal at Sea Regulations (Miscellaneous Program)

Statutory Authority

Canadian Environmental Protection Act, 1999

Sponsoring Department

Department of the Environment

REGULATORY IMPACT ANALYSIS STATEMENT

Description

These proposed Regulations amending the Disposal at Sea Regulations (Miscellaneous Program) made pursuant to subsections 135(1) and 332(1) of the Canadian Environmental Protection Act, 1999, are of a technical nature. They do not include any substantive changes to the Disposal at Sea Regulations. It is expected that these changes will have a positive impact on the clarity of the Disposal at Sea Regulations and will have no impact on the obligations or intent of those regulations.

The proposed regulatory amendments:

1. Align the English and the French versions of the phrase "waste or other matter" (« déchets ou autre matières ») with the following amendments:

(a) In section 4 of the French version of the Disposal at Sea Regulations, the expression "déchets et autres matières" is replaced by "déchets ou autres matières".
(b) In subsection 5(1) of the French version of the Disposal at Sea Regulations, the expression "déchets et autres matières" is replaced by "déchets ou autres matières".

2. Correct the spelling of "amphipod" in the English version of subsection 5(2) of the Disposal at Sea Regulations by replacing it with:

(a) The acute lethality test shall be conducted using the test methodology entitled Biological Test Method: Reference Method for Determining Acute Lethality of Sediment to Marine or Estuarine Amphipods (Reference Method EPS 1/RM/35), December 1998, published by the Department of the Environment, as amended from time to time.

3. Correct the title of a test method in the French version of subsection 5(4) of the Disposal at Sea Regulations by replacing it with:

(a) Le test de bioaccumulation est effectué conformément à la méthode intitulée Guidance Manual: Bedded Sediment Bioaccumulation Tests (EPA/600/R-93/183), publiée en septembre 1993 par l'Environmental Protection Agency des États-Unis, compte tenu de ses modifications successives.

The above proposed regulatory amendments will come into force on the day that they are registered.

Contact

Céline Labossière, Senior Economist, Economic and Regulatory Affairs Directorate, Policy and Communications, Environment Canada, 10 Wellington St., 24th Floor, Hull, Quebec K1A 0H3, 819-997-2377 (Telephone), 819-997-2769 (Facsimile), celine.labossiere@ec.gc.ca (Electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to subsection 332(1) of the Canadian Environmental Protection Act, 1999 (see footnote a) , that the Minister of the Environment proposes, pursuant to subsection 135(1) of that Act, to make the annexed Regulations amending the Disposal at Sea Regulations (Miscellaneous program).

Any person may, within 60 days after the publication of this notice, file with the Minister of the Environment comments with respect to the proposed Order or a notice of objection requesting that a board of review be established under section 333 of the Canadian Environmental Protection Act, 1999 (see footnote b)  and stating the reasons for the objection. All comments and notices must cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the Director, Marine Environment Branch, Toxics Pollution Prevention Directorate, Environmental Protection Service, Department of the Environment, Ottawa, Ontario K1A 0H3.

A person who provides information to the Minister may submit with the information a request for confidentiality under section 313 of that Act.

Ottawa, January 30, 2003

EILEEN BOYD

Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE DISPOSAL AT SEA REGULATIONS (MISCELLANEOUS PROGRAM)

AMENDMENT

1. In section 4 of the French version of the Disposal at Sea Regulations (see footnote 1) , the expression "déchets et autres matières" is replaced by "déchets ou autres matières".

2. (1) In subsection 5(1) of the French version of the Regulations, the expression "déchets et autres matières" is replaced by "déchets ou autres matières".

(2) Subsection 5(2) of the English version of the Regulations is replaced by the following:

(2) The acute lethality test shall be conducted using the test methodology entitled Biological Test Method: Reference Method for Determining Acute Lethality of Sediment to Marine or Estuarine Amphipods (Reference Method EPS 1/RM/35), December 1998, published by the Department of the Environment, as amended from time to time.

(3) Subsection 5(4) of the French version of the Regulations is replaced by the following:

(4) Le test de bioaccumulation est effectué conformément à la méthode intitulée Guidance Manual: Bedded Sediment Bioaccumulation Tests (EPA/600/R-93/183), publiée en septembre 1993 par l'Environmental Protection Agency des États-Unis, compte tenu de ses modifications successives.

COMING INTO FORCE

3. These Regulations come into force on the day that they are registered.

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Regulations Amending the Sulphur in Gasoline Regulations

Statutory Authority

Canadian Environmental Protection Act, 1999

Sponsoring Department

Department of the Environment

REGULATORY IMPACT ANALYSIS STATEMENT

Description

This statement describes the Regulations Amending the Sulphur in Gasoline Regulations, hereinafter referred to as the proposed Regulations. The Sulphur in Gasoline Regulations, hereinafter referred to as the Regulations, were published in Part II of the Canada Gazette on June 23, 1999. The Regulations limit the level of sulphur in gasoline to an average of 150 parts per million (p.p.m.), and further reduce the limit to 30 p.p.m. starting in 2005.

The Regulations Amending the Sulphur in Gasoline Regulations are being proposed, at the request of industry, to change the test method for measuring sulphur content to a recently developed method that provides for more accurate measurement of sulphur at low levels. Environment Canada agrees that this new method is a superior method that provides the means to measure sulphur concentrations at low levels with precision. The limits of sulphur content for gasoline remain the same as in the past, but are expressed in milligrams per kilogram rather than in percent by weight. At the same time, a number of other minor changes are being proposed to update the Regulations, clarify some provisions, and make the Regulations more consistent with other federal fuels regulations. The Regulations Amending the Benzene in Gasoline Regulations are also being proposed in parallel to ensure consistency between the fuels regulations.

The following provisions of the proposed Regulations will change the test method, update the Regulations and clarify provisions:

— revise the test methods for measuring sulphur in gasoline, in oxygenates and in butane;

— change the units for expressing the sulphur limits from percent by weight to milligrams per kilogram (mg/kg) to express the units in metric and provide consistency with the units of the test methods;

— update references in the Regulations to the California Requirements applicable to California gasoline; and

— change the requirement for retaining records from three years after the records are made to five years and clarify identification and record-keeping requirements.

The following proposed changes will align the Regulations with the provisions of the Fuels Division of Part 7 of the Canadian Environmental Protection Act, 1999:

— exempt gasoline that is imported in the fuel tank of a vehicle from the Regulations and exempt gasoline produced or sold for export or gasoline that is in transit through Canada, if that gasoline is accompanied by written evidence establishing that it is for export or is in transit; and

— adjust the requirements for making and transferring records pertaining to gasoline-like blendstock to focus on the person providing the blendstock rather than on the person receiving the blendstock.

The changes to be put in place by the proposed Regulations are of a minor technical nature and do not alter the intent of the Regulations. The Government of Canada is as interested as industry is in ensuring use of the most precise test method available, in order to ensure that the objective of the Regulations — namely the reduction of sulphur content — is being achieved. Changes such as the use of metric units instead of a percentage to express sulphur content likewise do not change the intent of the Regulations or the importance of reducing the sulphur levels, but achieve consistency with units used in the sulphur test method.

Background

The test method for measuring the concentration of sulphur in gasoline is currently specified in the Sulphur in Gasoline Regulations as the National Standard of Canada method CAN/CGSB-3.0 No. 16.1. The Regulations state that, if the method is not amended to include sulphur levels as low as 10 p.p.m. before November 2, 2004, the test method will change to ASTM D2622. The Canadian General Standards Board (CGSB) Petroleum Coordinating Committee has indicated that there are no plans to amend CAN/CGSB-3.1 No. 16.1 by November 2004. Through the CGSB, industry has therefore requested that the Regulations be amended to change the test method to ASTM D5453, a method which is becoming the method of choice in Canadian petroleum laboratories and is considered by CGSB and Environment Canada to be superior to ASTM D2622.

In a letter dated February 20, 2002, the Canadian General Standards Board informed Environment Canada that "it would be appropriate to amend the Sulphur in Gasoline Regulations to replace the current method of analysis for sulphur in gasoline, CAN/CGSB-3.0 No. 16.1, with the American Society for Testing and Materials method, ASTM D5453, and to delete the reference to the American Society for Testing and Materials method ASTM D2622". In the letter, CGSB states that the current test method is not applicable below about 50 p.p.m. sulphur, and that the suggested method, ASTM D5453, "is viewed by industry as superior for measuring low sulphur levels in gasoline". The replacement test method recommended by the CGSB has been specified as the test method for measuring sulphur concentrations in the Sulphur in Diesel Fuel Regulations, which were published in Part II of the Canada Gazette on July 31, 2002. CGSB indicated that changing the test method would provide industry with the advantage of using the same equipment to test both sulphur in diesel fuel and gasoline. Accordingly, the proposed Regulations are being put forth to effect this change.

Alternatives

Two alternatives were considered in response to the request from industry to revise the test method.

Status Quo

The Minister considered making no changes to the Sulphur in Gasoline Regulations. Industry has requested a change in the test method to ASTM D5453, a test method superior to ASTM D2622, the method specified in the Regulations after November 2, 2004. The test equipment required to perform the ASTM D2622 method is expensive and is not currently in widespread use in Canada. If the current test method is not changed, the Sulphur in Gasoline Regulations, the Benzene in Gasoline Regulations and the Sulphur in Diesel Fuels Regulations would all specify different test methods for measuring sulphur levels. For these reasons, and given industry's request to change the test method, the status quo was rejected.

Amendments to Change the Test Method

The Minister considered amending the Sulphur in Gasoline Regulations to change the test method for measuring sulphur levels specified in those regulations. Changing the test method would provide for a lower detection limit and better precision for determining the concentration of sulphur in gasoline. Furthermore, changing the test method as recommended by industry would result in the same test method being used in the Sulphur in Gasoline Regulations, the Benzene in Gasoline Regulations and the Sulphur in Diesel Fuel Regulations. This option will be put in place by the proposed Regulations.

Benefits and Costs

Industry

The test equipment for the method currently specified in the Sulphur in Gasoline Regulations is expensive and is not in widespread use in Canada. The change in test methods would result in the same test method being used in the Sulphur in Gasoline Regulations as is already specified under the Sulphur in Diesel Fuels Regulations. Since many fuel producers and importers handle both gasoline and diesel fuel, the change will reduce the costs to industry of measuring the sulphur concentration of fuels.

Changing the requirements for retaining records from three years to five years may result in some minor additional costs to industry. The other changes are not expected to impose additional costs on industry.

While the impact on costs to industry of the proposed amendments has not been quantified, it is expected to result in overall savings, since there will be only one method for measuring sulphur in gasoline and diesel, instead of three. This will allow for consistency between the various fuels regulations.

Government

The proposed Regulations are not expected to impose additional costs on the Government of Canada. Changing the test method will streamline testing requirements to determine sulphur levels under the three regulations. This will facilitate enforcement and is expected to result in reduced costs to the federal government. The five-year retention period for records is consistent with other regulations under CEPA 1999 that contain record-keeping requirements.

Public

The proposed Regulations will not affect the required sulphur levels and timing and do not alter the intent of the Regulations. They will not affect the level of environmental protection that will be achieved with these Regulations, therefore, there will be no impact on the public.

Consultation

The changes to be put in place by the proposed Regulations are of a minor technical nature and will not alter the intent of the Regulations. The changes relating to the sulphur test method are being proposed at the request of industry to change the test method to a recently developed method that provides for more accurate measurement of sulphur at low levels.

Consistent with the requirements of subsection 145(2) of CEPA 1999, in August 2002, the Minister of the Environment offered to consult on a draft of the Regulations with the governments of provinces and territories and members of the CEPA National Advisory Committee who are representatives of aboriginal governments. None of the parties took up the offer to consult within 60 days of the offer being made.

In addition, any person wishing to provide comments on the proposed Regulations Amending the Sulphur in Gasoline Regulations can do so during the 60-day period after the pre-publication of these Regulations in the Canada Gazette, Part I.

Compliance and Enforcement

Since the proposed Regulations will be promulgated under the Canadian Environmental Protection Act, 1999, CEPA enforcement officers will apply the Compliance and Enforcement Policy implemented under the Act. Their compliance promotion activities are limited to the distribution of the Act, the Regulations and the CEPA 1999 Compliance and Enforcement Policy. The Policy outlines measures to be implemented by Environment Canada scientists and engineers to promote compliance, including education, information and consultation on the development of proposed Regulations.

This Policy sets out the range of possible responses to alleged violations: warnings, directions and environmental protection compliance orders, ticketing, ministerial orders, injunctions, prosecution and environmental protection alternative measures (which are an alternative to a court prosecution after the laying of charges for a CEPA 1999 violation). In addition, the policy explains when Environment Canada will resort to civil suits by the Crown for cost recovery.

When, following an inspection or an investigation, a CEPA enforcement officer discovers an alleged violation, the officer will choose the appropriate enforcement action based on the following criteria:

— Nature of the alleged violation: This includes consideration of the seriousness of the harm or potential harm to the environment, the intent of the alleged violator, whether it is a repeat violation, and whether an attempt has been made to conceal information or otherwise subvert the objectives and requirements of the Act.

— Effectiveness in achieving the desired result with the alleged violator: The desired result is compliance with the Act within the shortest possible time and with no further repetition of the violation. Factors to be considered include the violator's history of compliance with the Act, willingness to cooperate with enforcement officers, and evidence of corrective action already taken.

— Consistency in enforcement: Enforcement officers will consider how similar situations have been handled in determining the measures to be taken to enforce the Act.

Contacts

Mark Tushingham, Fuels Division, Environment Canada, Hull, Quebec K1A 0H3, (819) 994-0510 (Telephone), (819) 953-8903 (Facsimile), mark.tushingham@ec.gc.ca (Electronic mail); or Céline Labossière, Regulatory and Economic Analysis Branch, Environment Canada, Hull, Quebec K1A 0H3, (819) 997-2377 (Telephone), (819) 997-2769 (Facsimile), celine.labossiere@ec.gc.ca (Electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to subsection 332(1) of the Canadian Environmental Protection Act, 1999 (see footnote c) , that the Governor in Council proposes, pursuant to section 140 of that Act, to make the annexed Regulations Amending the Sulphur in Gasoline Regulations.

Any person may, within 60 days after the publication of this notice, file with the Minister of the Environment comments with respect to the proposed Regulations or a notice of objection requesting that a board of review be established under section 333 of the Canadian Environmental Protection Act, 1999 (see footnote d)  and stating the reasons for the objection. All comments and notices must cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the Director General, Air Pollution Prevention Directorate, Environmental Protection Service, Department of the Environment, Ottawa, Ontario K1A 0H3.

A person who provides information to the Minister may submit with the information a request for confidentiality under section 313 of that Act.

Ottawa, January 30, 2003

EILEEN BOYD

Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE SULPHUR IN GASOLINE REGULATIONS

AMENDMENTS

1. (1) The definition "California Phase 2 Gasoline" in subsection 1(1) of the Sulphur in Gasoline Regulations (see footnote 2)  is repealed.

(2) Paragraphs (a) and (b) of the definition "blend" in subsection 1(1) of the Regulations are replaced by the following:

(a) the mixing of only low-sulphur gasolines or California gasolines, or both; or
(b) the adding of only additives, sulphur-limited butane or sulphur-limited oxygenates to low-sulphur gasoline or California gasoline. (mélange).

(3) Paragraphs (a) and (b) of the definition "sulphur-limited butane" in subsection 1(1) of the Regulations are replaced by the following:

(a) in respect of butane added to gasoline until December 31, 2004, 140 mg/kg; and
(b) in respect of butane added to gasoline after December 31, 2004, 40 mg/kg. (butane à concentration limitée en soufre)

(4) Paragraphs (a) and (b) of the definition "sulphur-limited oxygenate" in subsection 1(1) of the Regulations are replaced by the following:

(a) in respect of oxygenate added to gasoline until December 31, 2004, 170 mg/kg; and
(b) in respect of oxygenate added to gasoline after December 31, 2004, 40 mg/kg. (produit oxygéné à concentration limitée en soufre)

(5) Subsection 1(1) of the Regulations is amended by adding the following in alphabetical order:

"California gasoline" means gasoline that

(a) meets the compositional requirements described in The California Reformulated Gasoline Regulations, Title 13, California Code of Regulations, Division 3, Chapter 5, Article 1, Subarticle 2; and
(b) has been identified as California gasoline under subsection 5(1) of these Regulations. (essence Californie)

2. (1) Subparagraphs 2(1)(a)(i) and (ii) of the Regulations are replaced by the following:

(i) for the period beginning on October 1, 2003 and ending on December 31, 2004, 300 mg/kg, and
(ii) on or after January 1, 2005, 80 mg/kg; and

(2) Subparagraphs 2(1)(b)(i) and (ii) of the Regulations are replaced by the following:

(i) for the period beginning on July 1, 2002 and ending on December 31, 2004, 170 mg/kg, and
(ii) on or after January 1, 2005, 40 mg/kg.

(3) Paragraphs 2(2)(a) and (b) of the Regulations are replaced by the following:

(a) for the period beginning on July 1, 2002 and ending on December 31, 2004, 150 mg/kg; and
(b) on or after January 1, 2005, 30 mg/kg.

(4) Paragraphs 2(3)(a) and (b) of the Regulations are replaced by the following:

(a) for the period beginning on January 1, 2004 and ending on March 31, 2005, 300 mg/kg; and
(b) on or after April 1, 2005, 80 mg/kg.

(5) Subsection 2(4) of the Regulations is amended by striking out the word "or" at the end of paragraph (c) and by adding the following after paragraph (e):

(f) gasoline being imported in a fuel tank that supplies the engine of a conveyance that is used for transportation, whether by water, land or air;
(g) gasoline in transit through Canada, from a place outside Canada to another place outside Canada, accompanied by written evidence establishing that the gasoline is in transit; or
(h) gasoline produced or sold for export and accompanied by written evidence establishing that the gasoline will be exported.

(6) Subsection 2(5) of the Regulations is replaced by the following:

(5) Subparagraph (1)(b)(ii) does not apply to California gasoline.

3. Subsections 3(2) to (5) of the Regulations are replaced by the following:

(2) For the purposes of these Regulations, the following concentrations described in paragraphs (a) to (c) shall be measured as indicated:

(a) the concentration of sulphur in gasoline shall be measured

(i) until December 31, 2003, in accordance with the method set out in National Standard of Canada CAN/CGSB-3.0 No. 16.1-98, Sulphur in Gasoline by Energy-Dispersive X-Ray Fluorescence Spectrometry (EDXRF), and
(ii) after December 31, 2003, in accordance with the American Society for Testing and Materials method D 5453-00, Standard Test Method for Determination of Total Sulfur in Light Hydrocarbons, Motor Fuels and Oils by Ultraviolet Fluorescence;

(b) the concentration of sulphur in an oxygenate shall be measured in accordance with the American Society for Testing and Materials method D 5453-00, Standard Test Method for Determination of Total Sulfur in Light Hydrocarbons, Motor Fuels and Oils by Ultraviolet Fluorescence; and
(c) the concentration of sulphur in butane shall be measured in accordance with the American Society for Testing and Materials method D 6667-01, Standard Test Method for Determination of Total Volatile Sulfur in Gaseous Hydrocarbons and Liquefied Petroleum Gases by Ultraviolet Fluorescence.

4. (1) The portion of subsection 4(1) of the Regulations before paragraph (a) is replaced by the following:

4. (1) For each year in which a primary supplier produces or imports gasoline identified under subsections 5(1) or (2) as low-sulphur gasoline, California gasoline or gasoline-like blendstock, the primary supplier shall submit to the Minister a report, on or before February 15 of the following year,

(2) Paragraph 4(2)(d) of the Regulations is replaced by the following:

(d) for gasoline produced or imported by the primary supplier and identified under subsection 5(1) as California gasoline, the volume of that gasoline and, subject to subsection (3), the highest concentration of sulphur in that gasoline; and

5. (1) The portion of subsection 5(1) of the Regulations before paragraph (a) is replaced by the following:

5. (1) A primary supplier may, before importing a batch of gasoline or dispatching one from a refinery or blending facility, identify the gasoline by recording it as one of the following types:

(2) Paragraph 5(1)(g) of the Regulations is replaced by the following:

(g) California gasoline; or

(3) Paragraph 5(3)(b) of the Regulations is replaced by the following:

(b) that each batch that it identified under paragraph (1)(g) meets the compositional requirements for California gasoline.

6. Sections 6 and 7 of the Regulations are replaced by the following:

6. (1) Before any batch of gasoline-like blendstock is dispatched from a refinery or blending facility, or imported or sold, the person who dispatches, imports or sells the batch shall make a record that identifies the fuel as "gasoline-like blendstock that is intended to be further refined or blended to produce low-sulphur gasoline" and that contains the following information:

(a) the name and address of the person who dispatched, imported or sold the batch;
(b) the name and address of the primary supplier who originally produced or imported the batch;
(c) the registration number pertaining to the refinery or blending facility at which the batch was produced or to the province into which the batch had originally been imported;
(d) the name and address of the person who purchases or receives the batch and the name and address of the facility to which the batch is dispatched;
(e) the date of the dispatch, importation or sale of the batch; and
(f) the volume of the batch.

(2) No person shall sell a batch of gasoline-like blendstock without providing the person purchasing or receiving the batch, before the transfer of possession or ownership of the batch, with a copy of the record that the seller is required to make under subsection (1).

(3) Every primary supplier shall provide the Minister with the information prescribed under subsection (1) as an annex to the report required under section 4, for each batch of gasoline-like blendstock that was dispatched or imported during the period covered by the report.

Retention of Records

7. Every person required to make a record under section 5 or 6 shall maintain the record in Canada for a period of five years after the day on which the record was made.

7. The portion of section 12 of the Regulations before paragraph (a) is replaced by the following:

12. A primary supplier shall maintain a record in Canada, for a period of five years after the day on which the record was made, for each batch in respect of which it made an election under section 9, that includes

COMING INTO FORCE

8. These Regulations come into force on the day on which they are registered.

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Footnote a 

S.C. 1999, c. 33

Footnote b 

S.C. 1999, c. 33

Footnote 1 

SOR/2001-275

Footnote c 

S.C. 1999, c. 33

Footnote d 

S.C. 1999, c. 33

Footnote 2 

SOR/99-236

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