Miscellaneous Issues
- Sunoco suggested that "Enforcement of the regulation should be at one point only in the supply system."
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.
- Irving Oil suggested that Environment Canada should consider "reducing the record keeping and reporting requirements of companies that consistently refine, import, and/or distribution transportation fuels that meet or exceed regulated standards. … Eventually, compliant companies with a proven record should be allowed to report only on an "as requested" basis. The Record keeping will be ongoing and available for auditing at any time, however the administrative burden would be reduced."
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).
- The Saint John Citizens Coalition for Clean Air requested that "Canadian military vehicles must follow and not be exempted from the new sulphur content regulation."
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.
- Health Canada pointed out that "there may be concern that programs which are not regionally based would result in disparities in pollution prevention efforts. Population density may be a critical aspect to consider when characterizing the impact of a trading program on regional air sheds."
- Natural Resources Canada expressed the view that "there are not enough individual refineries in each area of Canada to warrant a regulated sulphur credit trading system."
- Irving Oil advocated that "Environment Canada should consider adopting a sulphur credit trading program very similar to the one currently being used by the United States Environmental Protection Agency".
- Pollution Probe stated "Sulphur credit trading is a very complex proposition. Pollution Probe has concerns about the local variances in the health benefits that would accrue, due to the potential for regional dirty diesel hot spots. More information is certainly needed before we could give a definitive response to this question."
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.
- Petro-Canada pointed out that "to receive maximum societal benefit from the introduction of the new fuel there needs to be a parallel initiative to ensure vehicle emissions are also aligned with those of the USA."
- Sunoco expressed the view that "it is essential that a regulation requiring alignment of the 2007 diesel engine emissions standards proceeds on a parallel track".
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.
- Friends of the Earth and the Lung Association recommended that "the federal government should take a leadership role through the procurement of low sulphur diesel fuel for its own fleet. They both called "for the federal government to procure on-road diesel fuel for off-road fuel use."
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.
- Friends of the Earth and the Lung Association encouraged "the harmonizing of an off-road diesel regulation with that for on-road by 2006".
- Pollution Probe expressed concerns "about the sulphur concentrations in off-road diesel fuel and supports any effort on the part of the Canadian government to reduce sulphur levels in this fuel to the same level as proposed for on-road diesel."
- The Canadian Public Health Association indicated that it was "regrettable that the strategy, as outlined in the report, does not pertain to off-road fuel."
- The New Brunswick Lung Association would have preferred that Environment Canada includes "all diesel fuels (on-road and off-road) in this regulation".
- The Ontario Ministry of the Environment encouraged "further action to limit the level of sulphur in off-road diesel fuel."
- The City of Toronto called on Environment Canada "to harmonize sulphur standards for off-road diesel with those being established for on-road diesel".
- Tharby Technology Consultants recommended that "Action on the reduced sulphur for on road diesel fuel must be done in parallel with a significant reduction for off road diesel fuels especially those used in equipment operating in urban environments such as construction, railway and some agricultural equipment."
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.
- The Canadian Public Health Association requested that Environment Canada "consider including PM2.5 in the standard".
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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