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Notice

Vol. 137, No. 5 — February 1, 2003

Regulations Amending the Benzene in Gasoline Regulations

Statutory Authority

Canadian Environmental Protection Act, 1999

Sponsoring Departments

Department of the Environment and Department of Health

REGULATORY IMPACT ANALYSIS STATEMENT

Description

This statement describes the proposed Regulations Amending the Benzene in Gasoline Regulations, hereinafter referred to as the proposed Regulations. The Benzene in Gasoline Regulations, hereinafter referred to as the Regulations, were published in the Canada Gazette, Part II, on November 26, 1997. These current Regulations limit the level of benzene in gasoline to one percent by volume and control the benzene emission number, which relates gasoline composition to estimated emissions of benzene from vehicles. These Regulations also specify sulphur limits for commercially pure butane and oxygenate, and the required test methods for measuring these limits.

The Regulations Amending the Benzene in Gasoline Regulations are being proposed in parallel with the Regulations Amending the Sulphur in Gasoline Regulations, which propose a new and more precise test method for measuring sulphur content. The proposed Regulations will align the sulphur limits for commercially pure butane and oxygenate in the Benzene in Gasoline Regulations with the levels and timings of the sulphur limits in the Sulphur in Gasoline Regulations. The test methods for sulphur will also be updated to align the two Regulations.

A number of other minor changes are being proposed at the same time to update the Regulations, clarify some provisions, and make the Regulations more consistent with other federal fuels regulations. The proposed changes will ensure consistency between the fuels regulations.

The following proposed changes will align the Regulations with provisions in the current Sulphur in Gasoline Regulations and provisions being proposed in the Regulations Amending the Sulphur in Gasoline Regulations:

— 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;

— update the definitions of commercially pure oxygenate and commercially pure butane to align with the sulphur levels and timing requirements of the Sulphur in Gasoline Regulations;

— 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 (these changes also align the Regulations with provisions of the Fuels Division of Part 7 of the Canadian Environmental Protection Act, 1999) (CEPA 1999);

— align the records section with the structure of the records section of the Sulphur in Gasoline Regulations; and,

— change the requirement for retaining records from three years after the records are made to five years.

Additional changes included in the proposed Regulations are as follows:

— clarify the timing requirements to cancel yearly pool average elections, the definition of complying gasoline and the specific test methods that may be used for taking samples; and,

— change the quantity of sample required to be retained for analysis to 1.7L to allow for adequate head space in the sample container.

The proposed changes are of a minor technical nature and do not alter the intent of the Regulations. The Government of Canada is as interested as industry in ensuring use of the most precise test method available, in order to ensure that the objective of the Regulations — namely 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, but achieve consistency with units used in the sulphur test method.

Background

The current test method for measuring sulphur levels specified in the Benzene in Gasoline Regulations is CAN/CGSB-3.0 No. 16.1. This method is not applicable below 50 mg/kg (50 p.p.m.). With the introduction of lower sulphur limits for gasoline, through the Sulphur in Gasoline Regulations, a more accurate test method for sulphur is required.

In a letter dated February 20, 2002, the Canadian General Standards Board (CGSB) informed Environment Canada that "it would be appropriate 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". The replacement test method recommended by the CGSB is becoming the method of choice in Canadian petroleum laboratories and has already been specified as the test method for measuring sulphur concentrations in the Sulphur in Diesel Fuel Regulations, which were published in the Canada Gazette, Part II, on July 31, 2002. Environment Canada agrees that this new method is a superior method that provides the means to measure sulphur concentrations at low levels with precision. Accordingly, the proposed Regulations are being put forth to effect this change.

Alternatives

Two alternatives were considered in response to industry's request to revise the methods.

Status Quo

The Minister considered making no changes to the Benzene in Gasoline Regulations.

Since the Regulations Amending the Sulphur in Gasoline Regulations are being proposed to update the test method for measuring sulphur in gasoline, this would result in different test methods between the two Regulations. For this reason, and given industry's request to change the test method for the Sulphur in Gasoline Regulations, the status quo was rejected.

Amendments to Change the Test Method

The Minister considered amending the Benzene 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 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 has been selected.

Benefits and Costs

Industry

The test equipment for the method to determine sulphur content that is specified in the current Benzene in Gasoline Regulations is expensive and is not in widespread use in Canada. The change in test method would result in the same test method being used in the proposed Regulations Amending the Benzene in Gasoline Regulations as is already specified under the Sulphur in Diesel Fuels Regulations and the proposed Regulations Amending the Sulphur in Gasoline 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 Regulations 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 federal government. Changing the test method will streamline testing requirements to determine sulphur levels under three federal fuels 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 benzene level or Benzene Emissions Number and will 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 impacts on the public.

Consultation

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 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. As stated earlier, these changes are being proposed in parallel with the proposed Regulations Amending the Sulphur in Gasoline Regulations.

Consistent with the requirements of subsection 93(3) of CEPA 1999, in July 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 Benzene in Gasoline Regulations can do so during the 60-day period after the pre-publication of these proposed 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 a) , that the Governor in Council, pursuant to subsection 93(1) of that Act, proposes to make the annexed Regulations Amending the Benzene in Gasoline Regulations.

Any person may, within 60 days after the date of 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 that Act 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 addressed to 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 of the Environment 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 BENZENE IN GASOLINE REGULATIONS

AMENDMENTS

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

(2) The definition "complying gasoline" in subsection 1(1) of the Regulations is replaced by the following:

"complying gasoline" means gasoline that meets the compositional requirements of these Regulations relating to benzene and the benzene emissions number and that has been identified as

essence conforme

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

mélange

(4) Paragraph (c) of the definition of "commercially pure butane" in subsection 1(1) of the Regulations is replaced by the following:

butane pur de qualité commerciale

(5) Paragraph (c) of the definition "commercially pure oxygenate" in subsection 1(1) of the Regulations is replaced by the following:

produit oxygéné pur de qualité commerciale

(6) Paragraph (b) of the definition "model parameters" in subsection 1(1) of the Regulations is replaced by the following:

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

"California gasoline" means gasoline that

The

California Reformulated Gasoline Regulations

California Code of Regulations

essence Californie

2.(1) Subsections 2(2) and (3) of the Regulations are replaced by the following:

(2) Subject to sections 9 to 11, these Regulations do not apply to

(3) Subsection 3(1) and sections 4, 16 and 17 do not apply to U.S. reformulated gasoline or California gasoline.

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

(5) Any batch that is supplied during the summer but is intended for use during the winter in the northern supply area is considered to be supplied during the winter if the primary supplier identifies the batch under subsection 9(1) as northern winter complying gasoline.

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

5.(1) Subject to subsection 6(1), all samples must be taken in accordance with any one of the American Society for Testing and Materials sampling methods specifically set out in section 7 of the National Standard of Canada Standard CAN/CGSB-3.5-99, Unleaded Automotive Gasoline.

(2) Subsections 5(4) to (6) of the Regulations are replaced by the following:

(4) The concentration of sulphur in gasoline referred to in Schedule 1 must be measured in accordance with

Sulphur in Gasoline by Energy Dispersive X-Ray Fluorescence Spectrometry (EDXRF)

Standard Test Method for Determination of Total Sulphur in Light Hydrocarbons, Motor Fuels and Oils by Ultraviolet Fluorescence

(5) The vapour pressure of gasoline at 37.8°C (100°F) referred to in Schedule 1 must be measured in accordance with the American Society for Testing and Materials method D 5191-01, Standard Test Method for Vapour Pressure of Petroleum Products (Mini Method) and converted to "dry vapour pressure equivalent" as described in that method.

(6) The evaporative fractions of gasoline at 93.3°C (200°F) and 148.9°C (300°F) referred to in Schedule 1 must be measured in accordance with the American Society for Testing and Materials method D 86-01, Standard Test Method for Distillation of Petroleum Products at Atmospheric Pressure.

(3) Subsections 5(9) to (11) of the Regulations are replaced by the following:

(9) The concentration of benzene and that of aromatics in butane referred to in the definition "commercially pure butane" in subsection 1(1) must be measured in accordance with the American Society for Testing and Materials method D 2163-91, Standard Test Method for Analysis of Liquefied Petroleum (LP) Gases and Propene Concentrates by Gas Chromatography.

(10) The concentration of sulphur in oxygenates referred to in the definition "commercially pure oxygenate" in subsection 1(1) must be measured in accordance with the American Society for Testing and Materials method D 5453-00, Standard Test Method for Determination of Total Sulphur in Light Hydrocarbons, Motor Fuels and Oils by Ultraviolet Fluorescence.

(11) The concentration of sulphur in butane referred to in the definition "commercially pure butane" in subsection 1(1) must be measured in accordance with the American Society for Testing and Materials method D 6667-01, Standard Test Method for Determination of Total Volatile Sulphur in Gaseous Hydrocarbons and Liquefied Petroleum Gases by Ultraviolet Fluorescence.

4. Paragraph 6(2)(a) of the Regulations is replaced by the following:

Standard Practice for Comparing Test Methods

Standard Practice for Validation of Process Stream Analyzer Systems

5. Subsection 8(3) of the Regulations is replaced by the following:

(3) Despite sections 5 and 6, a record of analysis as required by the Regulation of Fuels and Fuel Additives: Standards for Reformulated and Conventional Gasoline, Title 40, Code of Federal Regulations of the United States, Part 80, section 80.74 or 80.104, or as required by The California Reformulated Gasoline Regulations, Title 13, California Code of Regulations, Division 3, Chapter 5, Article 1, Subarticle 2, section 2270, may be used to provide the information on gasoline composition for a report referred to in subsection (1).

6. Sections 9 and 10 of the Regulations are replaced by the following:

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

(2) Any batch of gasoline dispatched by a primary supplier from a refinery or blending facility, or imported by a primary supplier, that has not been identified under subsection (1) is considered, for the purposes of these Regulations, to have been identified as complying gasoline.

(3) Every primary supplier must have a record for each batch it dispatches or imports that includes

(4) For each batch of complying gasoline received at a refinery or non-mobile blending facility, every primary supplier must record the name and address of the seller or provider, the date of the purchase or transfer of ownership, and the volume and the grade.

(5) Every primary supplier must have written evidence that establishes that each batch identified under subsection (1) as one of the following types of gasoline was sold or delivered for the use appropriate to the identified type:

(6) For each batch identified under subsection (1) as U.S. reformulated gasoline or California gasoline, every primary supplier must have written evidence that establishes that the batch meets the compositional requirements for U.S. reformulated gasoline or California gasoline, as the case may be.

Retention of Records

10. Every primary supplier must retain in Canada any record and any related written evidence referred to in section 9, 13 or 20

7. (1) Paragraphs 12(1)(a) and (b) of the Regulations are replaced by the following:

(2) Paragraph 12(2)(b) of the Regulations is replaced by the following:

(3) Paragraph 12(3)(e) of the Regulations is replaced by the following:

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

13.(1) For every batch identified under subsection 9(1) as gasoline-like blendstock, every primary supplier must, before dispatching the batch from its refinery or blending facility or before importing the batch, record the name and address of the person who purchases or receives the batch, the date of dispatch or importation and the volume of the batch.

9. Subsection 15(2) of the Regulations is replaced by the following:

(2) A primary supplier may cancel the election by notifying the Minister by registered mail or courier any time prior to 60 days before the start of the first year for which the basis will not be a yearly pool average.

10. Subparagraph 18(2)(b)(i) of the Regulations is replaced by the following:

(i) all batches that it supplied during the year that were identified under subsectin 9(1) as a type of gasoline other than complying gasoline or northern winter complying gasoline,

11. Paragraph 19(8)(b) of the Regulations is replaced by the following:

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

13. Schedule 1 to the Regulations is amended by replacing the reference "(Section 1)" after the heading "Schedule 1" with the reference "(Sections 1 and 5)".

14. The definition "SUL" in section 1 of Schedule 1 to the Regulations is replaced by the following:

"SUL" means the concentration of sulphur in the gasoline, in mg/kg. (SUL)

15. The table to subsection 2(1) of Schedule 1 to the Regulations is amended by replacing the expression "0.000 to 0.100% by weight" opposite the reference "SUL" with the expression "0 to 1,000 mg/kg".

16. The portion of item 2 of the table to section 2 of Schedule 3 to the Regulations in column 1 is replaced by the following:

Item	Column 1 Parameter
2.	Sulphur concentration (mg/kg)

COMING INTO FORCE

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

[5-1-o]

Footnote a

S.C. 1999, c. 33

Footnote 1

SOR/97-493

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with hypertext language (HTML). Its content is very similar except for the footnotes, the symbols and the tables.


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