Miscellaneous Issues

Reply: The Diesel Fuel Regulations are made under the Fuels sections of the Canadian Environmental Protection Act (CEPA). Regulations under these provisions set out the requirements for a fuel. The prohibition on production, importation and sales is set out in section 139(1) of CEPA. The Act itself sets out the prohibition that "no person shall produce, import or sell a fuel that does not meet the prescribed requirements".

Therefore, there is no flexibility for the regulations to specify only one compliance point in the supply system.

Reply: Environment Canada considers that a certain minimum amount of information is required to be reported for monitoring and enforcement of regulations. The proposed regulations retain the quarterly reporting of diesel sulphur levels that is already required under the existing Diesel Fuel Regulations (which would be revoked).

Reply: The proposed regulations prohibit the sale of diesel fuel with more than 15 ppm sulphur for use in on-road vehicles. The term "on-road vehicle" is defined as "a self-propelled vehicle designed for transporting persons, property, material or permanently or temporarily affixed apparatus on a common or public road, street, avenue, parkway or highway". Environment Canada expects that most military vehicles would classify as on-road vehicles, and thus would use low-sulphur diesel.

Reply: A credit trading system would greatly complicate the proposed regulations. All the stakeholders who commented on the May 2001 Discussion Paper supported simple one-step regulations. Accordingly, a credit system similar to the one in the U.S. rule is not included in the proposed regulations.

Natural Resources Canada recommended "that Canadian regulations restricting the level of sulphur in on-road diesel should be delayed until after the U.S. situation is better defined."

Reply: The U.S. EPA passed final regulations in January 2001 requiring 15 ppm on-road diesel fuel commencing in 2006. CPPI, representing Canadian refiners has indicated that final Canadian regulations should be in place by mid-2002 in order to provide industry with adequate lead time. In order to achieve that timing, the proposed regulations must be published in Part I of the Canada Gazette by early 2002.

Reply: New vehicle emission regulations are under development by Environment Canada and are intended to be published in Part I of the Canada Gazette early in 2002.

Reply: Environment Canada has committed to explore complementary measures to promote the early introduction of low sulphur fuels, including examining purchasing cleaner fuels for use in government vehicles. Environment Canada plans to develop a handbook for purchasers to use to facilitate procurement of low sulphur fuels. The target audience includes the federal government, municipalities and other agencies. We will also continue to work with federal government departments and other agencies to increase awareness of cleaner fuels procurement issues.

Some stakeholders recommended that the proposed regulations also set sulphur limits for off-road diesel.

Reply: The Minister's Notice of Intent on Cleaner Vehicles, Engines and Fuels addresses off-road diesel fuel. It states:

It is currently anticipated that the U.S. will move forward with proposing a sulphur limit for off-road diesel sometime in 2002. Environment Canada will continue monitor U.S. activities in this regard.

Reply: The proposed Sulphur in Diesel Regulations address the sulphur content of on-road diesel fuel. However, by reducing the level of sulphur in diesel fuel, these regulations will reduce emissions of PM2.5 from vehicles. Furthermore, the lower sulphur level will enable more stringent companion vehicle emission standards to be enacted, which will further reduce emission of PM2.5 from new diesel-powered vehicles.

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