Vol. 151, No. 12 — June 14, 2017

Registration

SOR/2017-110 June 2, 2017

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Regulations Amending Certain Regulations Made Under Sections 140, 209 and 286.1 of the Canadian Environmental Protection Act, 1999

P.C. 2017-569 June 2, 2017

Whereas, pursuant to subsection 332(1) (see footnote a) of the Canadian Environmental Protection Act, 1999 (see footnote b), the Minister of the Environment published in the Canada Gazette, Part I, on May 21, 2016, a copy of the proposed Regulations Amending Certain Regulations Made Under Sections 140, 209 and 286.1 of the Canadian Environmental Protection Act, 1999, substantially in the annexed form, and persons were given an opportunity to file comments with respect to the proposed Regulations or to file a notice of objection requesting that a board of review be established and stating the reasons for the objection;

Whereas the Governor in Council is of the opinion that the proposed Regulations relating to amendments to the Fuels Information Regulations, No. 1, the Gasoline Regulations and the Sulphur in Diesel Fuel Regulations could make a significant contribution to the prevention of, or reduction in, air pollution resulting, directly or indirectly, from the fuel or any of its components, or the fuel’s effect on the operation, performance or introduction of combustion or other engine technology or emission control equipment;

Whereas, pursuant to subsection 140(4) of that Act, before recommending the proposed Regulations relating to amendments to the Fuels Information Regulations, No.  1, the Gasoline Regulations and the Sulphur in Diesel Fuel Regulations, the Minister of the Environment offered to consult with the provincial governments and the members of the Committee who are representatives of Aboriginal governments;

And whereas, pursuant to subsection 209(3) of that Act, before recommending the amendments to the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations that are contained in the proposed Regulations, the Minister of the Environment offered to consult with the governments of the territories to which those amendments apply and with the members of the Committee who are representatives of Aboriginal governments that have jurisdiction over Aboriginal land to which those amendments apply;

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of the Environment, pursuant to sections 140 (see footnote c), 209 and 286.1 (see footnote d) of the Canadian Environmental Protection Act, 1999 (see footnote e), makes the annexed Regulations Amending Certain Regulations Made Under Sections 140, 209 and 286.1 of the Canadian Environmental Protection Act, 1999.

Regulations Amending Certain Regulations Made under Sections 140, 209 and 286.1 of the Canadian Environmental Protection Act, 1999

Fuels Information Regulations, No. 1

1 The long title of the Fuels Information Regulations, No. 1 (see footnote 1) is replaced by the following:

Fuels Information Regulations, No. 1

2 Section 1 of the Regulations and the heading before it are repealed.

3 The Regulations are amended by adding the following after section 5:

6 (1) Information that is required under these Regulations shall be sent electronically in the form and format specified by the Minister and shall bear the electronic signature of an authorized official.

(2) If the Minister has not specified an electronic form and format or if it is impractical to send the information electronically in accordance with subsection (1) because of circumstances beyond the control of the person sending the information, they shall send it on paper, signed by an authorized official, in the form and format specified by the Minister. However, if no form and format have been so specified, the information may be in any form and format.

(3) For the purposes of subsections (1) and (2) and the schedule, an authorized official is

4 The schedule to the Regulations is amended by replacing the references after the heading “SCHEDULE” with the following:

(Sections 4 to 6)

5 Form 1 of the schedule to the Regulations is replaced by the Form 1 set out in Schedule 1 to these Regulations.

Gasoline Regulations

6 The long title of the Gasoline Regulations (see footnote 2) is replaced by the following:

Gasoline Regulations

7 Section 1 of the Regulations and the heading before it are repealed.

8 Sections 7 and 8 of the Regulations are replaced by the following:

7 The concentration of lead in gasoline produced in, imported into or sold in Canada shall be measured in accordance with the National Standard of Canada method CAN/CGSB-3.0 No. 19.5-2011, Methods of Testing Petroleum and Associated Products: Determination of Lead in Automotive Gasoline (Atomic Absorption), as amended from time to time.

8 The concentration of phosphorus in gasoline produced, imported or sold in Canada shall be measured in accordance with the ASTM International method ASTM D3231-13, Standard Test Method for Phosphorus in Gasoline, as amended from time to time.

9 Subsection 11(4) of the Regulations is repealed.

10 The Regulations are amended by adding the following after section 11:

12 (1) A record that is required under these Regulations shall be sent electronically in the form and format specified by the Minister and shall bear the electronic signature of an authorized official.

(2) If the Minister has not specified an electronic form and format or if it is impractical to send the record electronically in accordance with subsection (1) because of circumstances beyond the control of the person sending the record, they shall send it on paper, signed by an authorized official, in the form and format specified by the Minister. However, if no form and format have been so specified, the record may be in any form and format.

(3) For the purposes of subsections (1) and (2), an authorized official is

Sulphur in Diesel Fuel Regulations

11 Subsection 1(2) of the French version of the Sulphur in Diesel Fuel Regulations (see footnote 3) is replaced by the following:

(2) Dans le présent règlement, toute mention d’une norme ou d’une méthode incorporées par renvoi constitue un renvoi à la norme ou à la méthode avec ses modifications successives.

12 Section 4 of the Regulations is replaced by the following:

4 The concentration of sulphur in diesel fuel referred to in section 3 shall be measured in accordance with the ASTM International method ASTM D5453-16, Standard Test Method for Determination of Total Sulfur in Light Hydrocarbons, Spark Ignition Engine Fuel, Diesel Engine Fuel, and Engine Oil by Ultraviolet Fluorescence.

13 (1) Subsection 5(1) of the Regulations is replaced by the following:

5 (1) Every person who produces or imports diesel fuel shall, for each calendar year during which diesel fuel is produced or imported, submit to the Minister, within 45 days after the end of that calendar year, a report that contains the information referred to in Schedule 1 for each facility where the person produces diesel fuel and for each province into which the person imports diesel fuel.

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

(3) Subsection 5(6) of the Regulations is repealed.

14 (1) Paragraph 5.1(2)(b) is amended, by adding “or” at the end of subparagraph (ii), by striking out “or” at the end of subparagraph (iii) and by repealing subparagraph (iv).

(2) Paragraph 5.1(3)(e) of the Regulations is replaced by the following:

15 (1) Subsection 5.2(2) of the English version of the Regulations is replaced by the following:

(2) If the Minister has not specified an electronic form and format or if it is impractical to send the report or notice electronically in accordance with subsection (1) because of circumstances beyond the control of the person sending the report or notice, they shall send it on paper, signed by an authorized official and in the form and format specified by the Minister. However, if no form and format have been so specified, the report or notice may be in any form and format.

(2) Section 5.2 of the Regulations is amended by adding the following after subsection (2):

(3) Despite subsections (1) and (2), the notice required under subsection 5.1(1) is not required to be signed by an authorized official.

16 Subsections 6(2) and (3) of the Regulations are replaced by the following:

(2) Every record made in accordance with subsection (1) shall be kept, for a period of five years after it is made, at the production facility in Canada or at the importer’s principal place of business in Canada as identified in the information submitted under subsections 5(4), (5) and (5.1).

17 Schedule 1 to the Regulations is replaced by the Schedule 1 set out in Schedule 2 to these Regulations.

18 Sections 4 to 6 of Schedule 2 to the Regulations are replaced by the following:

4 Indicate if one or more of the following apply:

5 For each facility in Canada at which diesel fuel is produced

TABLE

Item

Column 1

Intended Use

Column 2

Diesel Fuel

1

Use in on-road vehicles

___________________________

2

Use in off-road engines

___________________________

3

Use in vessel engines other than those installed on a vessel propelled
by a large diesel
engine

___________________________

4

Use in vessel engines installed on a vessel propelled by a large diesel engine

___________________________

5

Use in small stationary engines

___________________________

6

Use in large stationary engines

___________________________

7

Use in locomotive engines

___________________________

8

Use in scientific
research

___________________________

9

Any other use
(specify)

___________________________

6 For importers

TABLE

Item

Column 1

Intended Use

Column 2

Diesel Fuel

1

Use in on-road vehicles

___________________________

2

Use in off-road engines

___________________________

3

Use in vessel engines other than those installed on a vessel propelled
by a large diesel engine

___________________________

4

Use in vessel engines installed on a vessel propelled by a large diesel engine

___________________________

5

Use in small stationary engines

___________________________

6

Use in large stationary engines

___________________________

7

Use in locomotive engines

___________________________

8

Use in scientific
research

___________________________

9

Any other use
(specify)

___________________________

Storage Tank Systems For Petroleum Products and Allied Petroleum Products Regulations

19 The heading before section 1 of the French version of the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations (see footnote 4) is replaced by the following:

Définitions et interprétation

20 (1) The definition spill in section 1 of the Regulations is repealed.

(2) The definition partially buried tank in section 1 of the Regulations is replaced by the following:

partially buried tank means a tank that has part of its volume above ground and part of its volume below ground, unless all of the tank volume is encased within an unfilled secondary containment. (réservoir partiellement enfoui)

(3) The definitions aboveground tank and underground tank in section 1 of the English version of the Regulations are replaced by the following:

aboveground tank means a tank that operates at atmospheric pressure and that has all of its volume either above ground or encased within an unfilled secondary containment. (réservoir hors sol)

underground tank means a tank that operates at atmospheric pressure and that has all of its storage volume below ground and completely surrounded by fill. (réservoir souterrain)

21 The Regulations are amended by adding the following after section 1:

1.1 (1) A method or standard that is incorporated by reference into these Regulations is incorporated as amended from time to time.

(2) For the purposes of interpreting documents that are incorporated by reference into these Regulations, “should” must be read to mean “must” and any recommendation or suggestion must be read as an obligation.

22 Paragraph 2(1)(b) of the Regulations is replaced by the following:

23 The Regulations are amended by adding the following before section 3:

2.1 (1) A person must not release — or permit or cause any release of — a petroleum product or allied petroleum product, in liquid form in the environment, from a storage tank system unless, in the case of a system that provides secondary containment, the release does not reach outside that secondary containment.

(2) A person must not release — or permit or cause any release of — a petroleum product or allied petroleum product, in liquid form in the environment, during the transfer of the product to or from a storage tank system if, in the case of a system that has a transfer area, the release during transfer reaches outside the transfer area.

24 Sections 5 and 6 of the Regulations are replaced by the following:

5 The owner or operator of a storage tank system that has tanks designed to be installed above ground that were installed before June 12, 2008 below ground or encased within a filled secondary containment must, by June 12, 2012, permanently withdraw that system from service in accordance with section 44 and remove it in accordance with section 45.

6 The owner or operator of a storage tank system that has tanks designed to be installed underground that were installed before June 12, 2008 above ground or encased within an unfilled secondary containment must, by June 12, 2012, permanently withdraw that system from service in accordance with section 44 and remove it in accordance with section 45.

25 Subsection 10(2) of the Regulations is amended by replacing “the day on which these Regulations come into force” with “June 12, 2008”.

26 Section 13 of the English version of the Regulations is replaced by the following:

13 A person must not use a secondary containment area for storage purposes.

27 (1) The portion of subsection 14(1) of the Regulations before paragraph (a) is replaced by the following:

14 (1) The owner or operator of a storage tank system that installs the system or any component of the system on or after June 12, 2008 must ensure that the system or the component conforms to the applicable requirements set out in the following provisions of the CCME Code of Practice:

(2) Subparagraph 14(1)(c)(ii) of the Regulations is replaced by the following:

(3) The portion of subsection 14(2) of the Regulations before paragraph (b) is replaced by the following:

(2) The owner or operator of a storage tank system that has aboveground tanks that installs those tanks on or after June 12, 2008 must ensure that those tanks are equipped with a spill containment device that bears a certification mark certifying conformity with ULC-ORD-C142.19, Spill Containment Devices for Aboveground Flammable and Combustible Liquid Storage Tanks, or with CAN/ULC-S663-11, Standard for Spill Containment Devices for Flammable and Combustible Liquid Aboveground Storage Tanks, whichever was the most recent at the time the storage tank system was manufactured, unless

(4) Subparagraphs 14(2)(b)(i) to (vi) of the Regulations are replaced by the following:

(5) The portion of subsection 14(3) of the Regulations before paragraph (a) is replaced by the following:

(3) The owner or operator of a storage tank system that has underground tanks that installs those tanks on or after June 12, 2008 must ensure that those tanks bear a certification mark certifying conformity with one of the following standards:

(6) Subparagraph 14(3)(a)(i) of the Regulations is replaced by the following:

(7) Clauses 14(3)(a)(ii)(A) and (B) of the Regulations are replaced by the following:

(8) Subparagraphs 14(3)(b)(i) and (ii) of the Regulations are replaced by the following:

(9) Paragraph 14(3)(c) of the Regulations is replaced by the following:

(10) The portion of subsection 14(4) of the Regulations before paragraph (b) is replaced by the following:

(4) The owner or operator of a storage tank system that has steel underground tanks that installs those tanks on or after June 12, 2008 must ensure that those tanks are protected from corrosion as follows:

(11) The portion of subsection 14(5) of the Regulations before paragraph (a) is replaced by the following:

(5) The owner or operator of a storage tank system that installs piping on or after June 12, 2008 must ensure that

(12) Subparagraph 14(5)(b)(ii) of the Regulations is replaced by the following:

(13) Subsection 14(6) of the Regulations is replaced by the following:

(6) Any reference to a standard in this section is a reference to the version of that standard that is in effect at the time the storage tank system’s component is erected or manufactured, as applicable.

28 Subsection 15(1) of the Regulations is replaced by the following:

15 (1) The owner or operator of a storage tank system must ensure that petroleum product and allied petroleum product transfer areas are designed to contain any releases in liquid form in the environment that occur during the transfer process.

29 Section 18 of the Regulations is replaced by the following:

18 Any reference to a standard in this section is a reference to the version of that standard that exists at the time of the certification. Equipment used for automatic tank gauging referred to in subparagraphs 16(a)(i) and 17(1)(a)(ii) must have an alarm located at a place of work where it can be readily heard and seen and must bear a certification mark certifying conformity with one of either

30 The portion of subsection 25(1) of the Regulations before paragraph (a) is replaced by the following:

25 (1) The owner or operator of a storage tank system that has turbine, transition, dispenser or pump sumps must, by June 12, 2010, visually inspect those sumps to determine if they are leaking and after that inspection they must either

31 (1) Subsections 28(1) and (2) of the Regulations are replaced by the following:

28 (1) The owner of a storage tank system that is installed before June 12, 2008 must identify the system by submitting to the Minister, in writing, the information set out in Schedule 2

(2) The owner of a storage tank system that is installed on or after June 12, 2008 must identify the system by submitting to the Minister, in writing, the information set out in Schedule 2 before the day on which the first transfer of petroleum products or allied petroleum products into any tank of the system occurs.

(2) Subsection 28(6) of the Regulations is replaced by the following:

(6) A person must not operate a storage tank system unless an identification number has been issued for that system. In the case of a storage tank system referred to in subsection (1), this subsection applies beginning June 12, 2010.

32 Paragraph 29(a) of the Regulations is replaced by the following:

33 Paragraph 30(2)(d) of the English version of the Regulations is replaced by the following:

34 Subsection 35(2) of the Regulations is replaced by the following:

(2) If the owner or operator becomes aware of a leak in the storage tank system or a release in liquid form in the environment, they must, without delay, measure the thickness of the free oil layer and the separated solids layer in the oil-water separator and keep a record of that measurement.

35 (1) Paragraph 41(1)(c) of the Regulations is replaced by the following:

(2) Paragraphs 41(1)(f) and (g) of the Regulations are replaced by the following:

(3) Subsection 41(2) of the Regulations is replaced by the following:

(2) In the event of a release in the environment of less than 100 L of a petroleum product or an allied petroleum product, in liquid form, the report under paragraph 212(1)(a) of the Canadian Environmental Protection Act, 1999 is not required.

36 Schedule 1 to the Regulations is replaced by the Schedule 1 set out in Schedule 3 to these Regulations.

37 The Regulations are amended by replacing “the day on which these Regulations come into force” and “the coming into force of these Regulations” with “June 12, 2008” in the following provisions:

Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999)

38 Item 16 of the schedule to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999) (see footnote 5) is amended by adding, in column 2, the following after paragraph (a):

Item

Column 2

Provisions

16

(b) subsections 5(1) and (2)

39 Item 17 of the schedule to the Regulations is repealed.

40 The portion of item 20 of the schedule to the Regulations in column 2 is replaced by the following:

Item

Column 2

Provisions

20
  • (a) section 2.1
  • (b) section 3
  • (c) section 5
  • (d) section 6
  • (e) section 7
  • (f) section 8
  • (g) subsection 9(1)
  • (h) subsection 10(1)
  • (i) section 11
  • (j) section 12
  • (k) subsections 14(1) to (5)
  • (l) subsection 15(1)
  • (m) subsection 36(2)
  • (n) subsection 37(2)
  • (o) section 38
  • (p) subsection 40(1)
  • (q) paragraph 44(3)(c)

41 The schedule to the Regulations is amended by adding the following in numerical order:

Item

Column 1

Regulations

Column 2

Provisions

26

Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations
  • (a) subsection 3(1)
  • (b) subsection 6(5)
  • (c) paragraph 10(e)
  • (d) subsection 14(5)

27

Prohibition of Certain
Toxic Substances
Regulations, 2012
  • (a) subsection 4(1)
  • (b) subsection 6(1)

28

Products Containing Mercury Regulations
  • (a) paragraphs 3(a) and (b)

Coming into Force

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

SCHEDULE 1

(Section 5)

FORM 1

Report on Sulphur Content

Reporting Period _____________________________________________

Company Name ______________________________________________

Facility Name ________________________________________________

Telephone __________________________________________________

Facility Address ______________________________________________

Fuels Produced in or Imported into Canada








Item

Column 1





Name of Fuel

Column 2



Quantity Produced
(m3)

Column 3



Quantity Imported
(m3)

Column 4

API Gravity
or Density
(kg/m3)

Column 5

Sulphur Content (mg/kg)

Highest

Lowest

Weighted Average

1

Aviation fuel

  • (a) Aviation gasoline
  • (b) Jet A
  • (c) Jet A-1
  • (d) Jet B
  • (e) Other (specify)
            

2

Gasoline

  • (a) Regular
  • (b) Mid-grade
  • (c) Premium
  • (d) Super-premium
  • (e) Other (specify)
            

3

Kerosene

  • (a) Kerosene
  • (b) Other (specify)
            

4

Diesel fuel (by sulphur content)

  • (a) Less than or equal to 15 mg/kg
  • (b) Greater than 15 mg/kg and less than or equal to 1000 mg/kg
  • (c) Greater than 1000 mg/kg
  • (d) Other (specify)
            

5

Heating fuel oil

  • (a) Type 0 (No. 0)
  • (b) Type 1 (No. 1)
  • (c) Type 2 (No. 2)
  • (d) Type 4 (No. 4)
  • (e) Type 5 (No. 5)
  • (f) Type 6 (No. 6)
  • (g) Other (specify)
            

6

Synthetic crude (sold as fuel)

            

7

A fuel other than the fuels named in items 1 to 6

            

_________________________________________ (Signature of authorized official)

_________________________________________ (Title)

_________________________________________ (Date Signed)

SCHEDULE 2

(Section 17)

Schedule 1

(Subsection 5(1))

Report of Sulphur Concentration in Diesel Fuel

1 Calendar year ____________________________

2 Name of producer or importer _________________

3 Name of the facility in Canada at which the diesel fuel is produced or the province into which it is imported

4 Civic address (and mailing address if different) of the facility in Canada at which the diesel fuel is produced or of the importer’s principal place of business in Canada

5 Provide the required information for each type of fuel, indicating the volume of diesel fuel in m3 and the sulphur concentration in mg/kg, in the following table:

TABLE

Item

Column 1

Required Information

Column 2

Diesel Fuel

1

Diesel fuel with a sulphur concentration that is less than or equal to 15 mg/kg

  
  • (a) volume of diesel fuel
  • (b) highest sulphur concentration
  • (c) lowest sulphur concentration
  • (d) volume-weighted average sulphur concentration
  • (e) method used (for reporting purposes) to measure sulphur concentration

_________________________________________________

_________________________________________________

_________________________________________________

_________________________________________________

_________________________________________________

2

Diesel fuel with a sulphur concentration that is greater than 15 mg/kg but less than or equal to 1000 mg/kg

  
  • (a) volume of diesel fuel
  • (b) highest sulphur concentration
  • (c) lowest sulphur concentration
  • (d) volume-weighted average sulphur concentration
  • (e) method used (for reporting purposes) to measure sulphur concentration

_________________________________________________

_________________________________________________

_________________________________________________

_________________________________________________

_________________________________________________

3

Diesel fuel with a sulphur concentration that is greater than 1000 mg/kg

  
  • (a) volume of diesel fuel
  • (b) highest sulphur concentration
  • (c) lowest sulphur concentration
  • (d) volume-weighted average sulphur concentration
  • (e) method used (for reporting purposes) to measure sulphur concentration

_________________________________________________

_________________________________________________

_________________________________________________

_________________________________________________

_________________________________________________

6 Authorized official

Name _____________________________________________________

Title ______________________________________________________

Signature and date __________________________________________

Telephone number ( ) _____________________

Fax number ( ) _____________________

SCHEDULE 3

(Section 36)

SCHEDULE 1

(Section 1)

Allied Petroleum Products

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

The Department of the Environment (the Department) administers a wide range of regulations under the Canadian Environmental Protection Act, 1999 (CEPA). To ensure that these regulations continue to be administered efficiently and to provide clarity for regulated parties, these regulations are reviewed and updated from time to time. The Department has identified the need for a number of changes to the regulatory texts of five regulations made under CEPA in response to comments from the Standards Council of Canada (SCC) regarding outdated standards referenced in Canadian federal regulations, from the Standing Joint Committee for the Scrutiny of Regulations (SJCSR) regarding a lack of clarity and some inconsistencies in the regulatory text of several regulations, and from the Commissioner of the Environment and Sustainable Development (CESD) regarding the enforceability of regulations. (see footnote 6) The Department has also identified other necessary changes and minor issues.

The following regulations (collectively referred to as the five regulations) have been identified for amendments as part of this omnibus regulatory process:

Objectives

The objectives of the Regulations Amending Certain Regulations Made Under Sections 140, 209 and 286.1 of the Canadian Environmental Protection Act, 1999 (the Amendments) are to improve the clarity and consistency of the regulatory texts, align the English and French versions of the regulations and update references to external standards. Furthermore, the Amendments aim to respond to comments from the SCC, the SJCSR and the CESD.

Description

The five regulations have been amended within an omnibus process to make required changes to improve the clarity and consistency of the regulatory texts and to keep references to standards up to date. The Amendments are not expected to have an incremental impact on compliance costs, while a reduction in administrative costs is expected for one of these regulations (Sulphur in Diesel Fuel Regulations).

The Amendments will also make amendments to the Designation Regulations to reflect the recent repeal of designated provisions and add new provisions.

The Amendments to their respective regulations are found below.

1. Fuels Information Regulations, No. 1

The Fuels Information Regulations, No. 1 were adopted in 1977 to provide the Department with liquid fuel composition information, particularly concerning sulphur dioxide (SO2) emissions from combustion. These Regulations require annual reporting on sulphur levels in fuels and one-time reporting on non-lead fuel additive content. Additional reporting of additives is required when there are changes in these levels or content. The Regulations apply to all fuels in liquid form that originate from crude oils, coal or bituminous sands.

The Amendments will make changes to the Fuels Information Regulations, No. 1 to enable electronic reporting, update units of measurement and make changes to Form 1 in order to be consistent with the regulatory text, increase clarity, and align both the English and French fuel names with those used in CGSB (see footnote 7) standards. The Amendments will

Based on comments received following prepublication in the Canada Gazette, Part I, instead of changing “super carburant” to “super” in the French text in Form 1 and in addition to updating from “lead free” motor gasoline to “mid-grade” motor gasoline, the Amendments will

2. Gasoline Regulations

The Gasoline Regulations limit the concentration of lead in gasoline that is produced, imported, sold or offered for sale in Canada and limit the concentration of phosphorus in unleaded gasoline. These Regulations also specify the acceptable analytical methods for determining the concentration of lead and phosphorus in gasoline and impose record-keeping and reporting obligations about leaded gasoline. Gasoline for use in aircraft is exempt from the Regulations, and leaded gasoline for use in competition vehicles is not subject to the lead concentration restrictions imposed by the Regulations. The Amendments will make changes to the Gasoline Regulations to update a reference to a standard that was replaced by a new version, as well as to allow for the addition of electronic reporting. The Amendments will

As well, following prepublication in the Canada Gazette, Part I, and departmental review, the Amendments will also

3. Sulphur in Diesel Fuel Regulations

The Sulphur in Diesel Fuel Regulations set maximum limits for sulphur in diesel fuel for use in on-road, off-road, rail (locomotive), vessel, and stationary engines. The goal of the Sulphur in Diesel Fuel Regulations is to ensure that the level of sulphur in diesel fuel used in Canada will not impede the effective operation of advanced emission control technologies installed in vehicles and engines.

The Amendments will make changes to the Sulphur in Diesel Fuel Regulations to address comments raised by the SJCSR and address inconsistencies between French and English. The Amendments will

The Amendments will also update the Regulations without impacting compliance requirements. One change (3.5) will provide a minor reduction in administrative burden. The Amendments will

As well, to address comments from the SJCSR, additional changes were made following prepublication in the Canada Gazette, Part I. The Amendments will

The repeal of subsection 6(2) will result in subsection 6(3) referencing a repealed subsection as a result of amendment 3.9. In addressing this, the Department will also address an error that was introduced in amendments made to the Regulations in 2012, which unintentionally removed the requirement to keep records made in accordance with subsection 6(1) for five years. Thus, the Amendments will

As well, following prepublication in the Canada Gazette, Part I, and departmental review, the Amendments will also

4. Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations

The main objective of the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations is to prevent soil and groundwater contamination from storage tank systems under federal jurisdiction.

The Amendments will make changes to the application section of the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations to clarify that the Regulations apply to storage tank systems that are owned by a regulated federal work or undertaking or that are operated to provide a service to one of those federal works or undertakings. The Amendments will

The Amendments will also address inconsistencies between the French and English versions of the Regulations. The Amendments will

To address comments from SJCSR, the Amendments will

The Amendments will address an issue related to the compliance and enforcement components of the Regulations. The Amendments will

In addition, the Department has identified that this amendment will meet the criteria to be designated under section 286.1 of CEPA. Consequently, an amendment to the Designation Regulations will be required in order to add the new section to Item 20 of the schedule (see description in section 5.5).

To update references to technical standards, the Amendments will

5. Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999)

The Environmental Enforcement Act received royal assent on June 18, 2009, and introduced a new fine regime to be applied by courts following a conviction pursuant to any of the nine environmental statutes that it amends. Under the new regime, designated offences involving direct harm or risk of harm to the environment, or obstruction of authority, are subject to an increased fine range. For CEPA, this fine regime came into force on June 22, 2012.

The Department has identified provisions of certain regulations that meet the criteria to be designated under the Designation Regulations. The Amendments will make changes to the schedule of the Designation Regulations to effect the changes listed below:

“One-for-One” Rule

The “One-for-One” Rule applies to the Amendments, which are considered an “OUT” under the Rule. One of the regulatory changes will result in a reduction of administrative and reporting costs, while the other amendments cause no change in administrative costs to stakeholders.

The removal of the requirement for the signature of an authorized official for the 12-hour advance notification of imports under the Sulphur in Diesel Fuel Regulations (amendment in section 3.5) is expected to decrease the administrative burden for stakeholders that import diesel fuels. The Department estimates that 850 notifications will be submitted per year, with each report estimated to take 1.5 hours, at $56 an hour, for an authorized official to review before signing. (see footnote 12)

Overall, the Amendments are expected to result in a reduction of annualized average administrative burden of approximately $68,000, using a 10-year time period and a 7% discount rate. Per business, this is about $1,400 on an annualized average basis. (see footnote 13)

Small business lens

The small business lens does not apply to the Amendments as, overall, there will be a reduction in administrative costs for small businesses combined with no increase in compliance costs.

Consultation

Consultations prior to the prepublication of the proposed Amendments in the Canada Gazette, Part I

Given that the Amendments will improve the clarity and consistency of regulatory texts and that they are minor in nature, no formal consultations were held with stakeholders. The CEPA National Advisory Committee (NAC) (see footnote 14)was provided with an offer to consult on the proposed Amendments; however, no responses were received.

Consultation following the prepublication of the proposed Amendments in the Canada Gazette, Part I

During the 75-day public comment period, the Department communicated with representatives of the petroleum refining sector and petroleum importers, the fuel transportation and distribution sector, fuel storage terminals, and retail fuel suppliers to solicit feedback on the Amendments and the assumptions behind the “One-for-One” calculation, including an estimated average number of hours of staff time reduced per company per year due to the updated administrative reporting requirements.

Eight submissions were received from four industry stakeholders, one industry association, one Indigenous group and the SJCSR. Industry stakeholders were generally supportive of the proposed Amendments. The Indigenous group sought clarification on the objectives of the proposed Amendments but shared no other comments. Additional input from the SJCSR and the SCC was also considered in developing the regulatory amendments. Changes were made to the proposed amendments to the Sulphur in Diesel Fuel Regulations as a result of SJCSR input, and stakeholders were given another opportunity to comment on these new proposed amendments.

In conjunction with prepublication in the Canada Gazette, Part I, the Department notified key stakeholders, provincial authorities and other stakeholders of the additional amendments to the Designation Regulations, the impact on fines issued under CEPA for offences against designated provisions, and the public comment period associated with prepublication. Information regarding enforcement and compliance is posted on the Department’s Web site. (see footnote 15) Only one request for clarification was received during the public comment period for the Designation Regulations with regard to the Products Containing Mercury Regulations and is unrelated to the Amendments.

The CEPA NAC was provided with another offer to consult on further changes made to the Amendments after pre-publication in the Canada Gazette, Part I; however, no responses were received.

Fuels Information Regulations, No.1

Comment: Industry stakeholders provided comments on the Fuels Information Regulations, No. 1 concerning the formatting of Form 1 and the list of fuels that appears in this form.

Response: In response to these comments, the list of fuels was updated to provide clarification by more closely aligning with published industry standards. Stakeholders were then given another opportunity to comment on this revised Form 1, and no comments were received. The changes to Form 1 have been reflected in the Amendments.

Sulphur in Diesel Fuel Regulations

Comment: One industry association was seeking verification that their members would not be penalized for amendments made that affect the record retention time and information required for previous production and importation of diesel fuel. There was also concern that the proposed changes to Schedule 1 and Schedule 2 reporting might impact the types of activities subject to reporting.

Response: The proposed changes come into force at the time of registration and will not retroactively affect the record keeping requirements of regulated parties. The proposed changes to Schedule 1 and Schedule 2 do not impact the types of activities subject to reporting. Volumes of biomass-based diesel and conventional diesel produced and imported were to have been reported separately in the schedules previously, despite the Regulations not explicitly distinguishing between the two types of fuels. They will be reported together on the new schedules.

Comment: The same industry association also raised the fact that the Amendments could create inconsistencies with the proposed Environmental Violations Administrative Monetary Penalties Regulations (AMPs Regulations), which were prepublished in the Canada Gazette, Part I, on April 9, 2016, since the proposed AMPs Regulations referenced a subsection that is being repealed in the Amendments.

Response: The Department is aware of these inconsistencies and plans to address any inconsistencies in the AMPs Regulations regarding the Sulphur in Diesel Fuel Regulations introduced by the Amendments at the next opportunity. In the meantime, these inconsistencies are not expected to impact the implementation of either of these regulations.

Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations

Comment: One industry stakeholder misunderstood the clarification of the application of the Regulations to storage tanks associated with federal works, believing that compliance requirement would change. There was also concern for provisions to expressly prohibit any liquid releases to the environment.

Response: The Department has responded to the stakeholder to clarify his or her misunderstanding. The Amendments are addressing the inconsistencies between the French and English versions of the Regulations, clarifying that the Regulations apply to storage tank systems that are owned by a regulated federal work or undertaking or that are operated to provide a service to one of those federal works or undertakings. The Amendments also clarify that any liquid releases to the environment are prohibited. Since this is how the Regulations are currently interpreted, the Amendments do not alter existing regulatory requirements.

Comment: The same industry stakeholder raised additional issues with the Regulations related to the application of particular standards and challenges faced in complying with certain requirements.

Response: These comments are beyond the scope of an omnibus regulation, and cannot be addressed with the Amendments. However, these comments will be considered during future review of the Regulations.

Rationale

The Amendments will respond to the comments identified by the SJCSR, the SCC, and the CESD, and address numerous minor issues and inconsistencies in the current regulatory texts of the five regulations. As well, the Amendments will make changes to the Designation Regulations to reflect the recent repeal of designated provisions and add new provisions.

The impact of the Amendments on stakeholders is expected to be minimal as the Amendments are relatively minor in nature. The changes related to compliance components are not expected to have impacts on stakeholders, as they aim to clarify the existing regulatory text. Stakeholders of the Sulphur in Diesel Fuel Regulations will have a reduction in administrative burden. Overall, the impacts of the Amendments are expected to be positive in consideration of the benefits listed above and the reduction in administrative burden costs for stakeholders.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Contacts

Astrid Telasco
Director
Regulatory Innovation and Management Systems
Department of the Environment
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Telephone: 819-938-4478
Fax: 819-420-7386
Email: ec.affairesreglementaires-regulatoryaffairs.ec@canada.ca

Matthew Watkinson
Director
Regulatory Analysis and Valuation Division
Department of the Environment
200 Sacré-Cœur Boulevard
Gatineau, Quebec
K1A 0H3
Telephone: 873-469-1452
Fax: 819-938-3374
Email: DARV.RAVD@canada.ca