Appendix 6: Example of Regulatory Text for Setting Requirements for Sulphur in Fuel Oils

As an aid to facilitate discussions on the merits of setting requirements for sulphur in LFO and HFO, a draft of possible regulatory text is presented below. Note: this does not imply that Environment Canada has decided to use a regulatory approach to reduce sulphur in fuel oils.

Setting aside for the moment the merits of setting sulphur requirements for fuel oils, Environment Canada is interested in the views of stakeholders on several regulatory design issues. As can be observed below, this example sets out the "dual" approach used by the European Union for setting requirements for HFO; that is, one limit for HFO used in facilities without any emission control equipment to reduce emissions of SO₂ and a higher limit allowed for HFO used in facilities with such equipment.

1. (1) The following definitions apply in these Regulations.

"Act" means the Canadian Environmental Protection Act, 1999. (Loi)

"authorized official" means

• in respect of a corporation, an officer of the corporation who is authorized to act on its behalf;
• in respect of any other person, that person or a person authorized to act on behalf of that person; and
• in respect of any other entity, a person authorized to act on its behalf. (agent autorisé)

"heavy fuel oil" means petroleum residual fuel that is used in liquid-fuel-burning equipment. (mazout lourd)

"light fuel oil" means petroleum distillate fuel that is used in liquid-fuel-burning equipment and does not require pre-heating of the fuel. (mazout léger)

"sulphur-controlled facility" means any combustion plant where

• the emissions of sulphur dioxide from the plant are less than or equal to X mg/Nm3 at an oxygen content in the flue gas of 3% by volume on a dry basis,
• the emissions of sulphur dioxide described in clause (a) are measured in accordance with subsection 3(2), and
• the person owning the combustion plant has provided to the Minister the information required under subsection 4(6).

(2) Any standard or method that is incorporated by reference in these Regulations is incorporated as amended from time to time.

[Question A: Should emulsions be covered by the definition of HFO?]

[Question B: Should LFO and HFO be differentiated by a viscosity cut-off instead of a use/pre-heating criteria?]

[Question C: What is the appropriate emission limit for? Should there be a different cut-off emission rate? Are the European units applicable in the Canadian context?]

[Question D: The European emission limit is an instantaneous limit for all facilities, except for refineries which meet the same limit but averaged over a one month period. Should Canada adopt an instantaneous or average limit? If an average limit, what should be the duration? How will this be measured, reported, audited and enforced? Should different types of facilities be allowed different averaging periods?

2. (1) For the purpose of section 139 of the Act and effective January 1, 2008, the concentration of sulphur in light fuel oil produced in Canada or imported into Canada that shall not be exceeded is 0.10% by mass.

(2) For the purpose of section 139 of the Act and effective January 1, 2008, the concentration of sulphur in heavy fuel produced in Canada or imported into Canada for use in a facility other than a sulphur-controlled facility that shall not be exceeded is 1.00% by mass.

(3) For the purpose of section 139 of the Act and effective January 1, 2008, the concentration of sulphur in heavy fuel oil produced in Canada or imported into Canada for use in a sulphur-controlled facility that shall not be exceeded is 2.00% by mass.

[Question E: Should a higher limit for sulphur-controlled facilities be allowed? Should it be in line with general rural limits in the U.S.?]

3. (1) For the purpose of determining compliance with the prescribed concentration in section 2 of these Regulations, the concentrations of sulphur in light fuel oil fuel oil shall be measured in accordance with the National Standard of Canada method CAN/CGSB-3.0 No. 16.0-95, Methods of Testing Petroleum and Associated Products, Sulphur in Diesel Fuel by Energy Dispersive X-ray Fluorescence Spectrometry (EDXRF).

(2) For the purpose of determining compliance with the prescribed concentration in section 2 of these Regulations, the concentrations of sulphur in heavy fuel oil fuel oil shall be measured in accordance with the American Society for Testing and Materials method ASTM D 4294.

(3) For the purpose of determining the emissions of sulphur dioxide from a sulphur-controlled facility, the emissions of sulphur dioxide shall be measured in accordance to the method specified in subsection (4).

[Question F: What should be the method for measuring sulphur dioxide emissions from a facility? Is a mass-balance method sufficient or should emissions be monitored on a continuous or semi-continuous basis?]

4. (1) Every person who produces in Canada, or imports into Canada light fuel oil or heavy fuel oil shall submit to the Minister on or before January 31 following the end of the calendar year during which the fuel oil was produced in Canada or imported into Canada, a report containing the information set out in Schedule 1 for each calendar quarter during which the person produced or imported fuel oil.

(2) For the purpose of subsection (1), the information relating to the concentration of sulphur set out in Schedule 1 shall be calculated using

• the standard test method referred to in subsection 3(1);
• the standard test method referred to in subsection 3(2);
• the American Society for Testing and Materials method ASTM D 1266;
• the American Society for Testing and Materials method ASTM D 1552;
• the American Society for Testing and Materials method ASTM D 2622; or
• the American Society for Testing and Materials method ASTM D 5453.

[Question G: Are all these alternative methods necessary? Are alternative methods for reporting purposes only necessary at all for LFO and HFO? Should equivalent methods be allowed, similar to other federal fuel regulations?]

(3) Subsection (2) shall not be interpreted as an exemption from any requirement under section 2.

(4) Every person who produces light fuel oil or heavy fuel oil in Canada or imports light fuel oil or heavy fuel oil into Canada shall submit the information specified in Schedule 2 to the Minister by the later of

• September 1, 2007, and
• 15 days before the person starts to produce light fuel oil or heavy fuel in Canada or to import light fuel oil or heavy fuel oil into Canada.

(5) With the exception of changes in the information on typical annual volumes, if the information submitted under subsection (4) changes, the person identified in subsection (4) must advise the Minister in writing of the change no more than five days after the change.

(6) Every person who owns a sulphur-controlled facility shall submit the information specified in Schedule 3 by the later of

• September 1, 2007, and
• 15 days before the sulphur-controlled facility commences operation.

(7) Each report referred to in subsections (1), (4), (5) and (6) shall be signed by an authorized official.

(8) A copy of each report referred to in subsections (1), (4), (5) and (6) shall be maintained in Canada for a period of five years after the report is made

• at the facility in Canada where the light fuel oil or heavy fuel oil was produced,
• at the place of business of the importer in Canada as identified in Schedule 2, or,
• in the case of the report required under subsection (6), at the sulphur-controlled facility.

5. (1) Every person who produces in Canada, imports into Canada, or sells in Canada light fuel oil or heavy fuel oil shall keep a record of the volumes of light fuel oil or heavy fuel oil that the person produces in Canada, imports into Canada, and sells in Canada.

(2) Effective January 1, 2008, every person who produces in Canada or imports into Canada heavy fuel oil shall identify in a record any heavy fuel oil that is for use in a sulphur-controlled facility prior to the dispatch or importation of the heavy fuel oil, along with the volume and the date of dispatch from the production facility or of importation into Canada of the heavy fuel oil.

(3) A record referred to in subsections (1) and (2) shall be maintained in Canada, at the point of production or retail sale or place of business of the importer as identified in Schedule 2, for a period of five years after the record is made.

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