Guidance document on Sulphur in Diesel Fuel Regulations: questions on section 5

Questions on Section 5 of the Regulations

Section 5: Reports

Identification Information (subsections 5(4) and 5(5))

5.1 Who is required to submit information under subsection 5(4)?

Every person who produces or imports diesel fuel.

5.2 When do I submit the information under subsection 5(4)?

If you produce or import diesel fuel, you were required to submit the information within 60 days after the amended regulations come into force, (i.e. by March 2^nd, 2006 ). If you commence to produce or import diesel fuel after that date, you are required to submit the information 15 days before you produce or import diesel fuel for the first time.

5.3 How do I submit the information?

You submit the information set out in Schedule 2 of the Sulphur in Diesel Fuel Regulations to the applicable regional office of Environment Canada. The addresses of these offices are provided in Appendix A of this guidance document. You must provide information on all of your production facilities and all usual points of importation.

5.4 Will Environment Canada issue me a registration or identification number after I submit the information required in Schedule 2?

Environment Canada does not plan to issue such numbers under the Sulphur in Diesel Fuel Regulations.

5.5 What am I required to do if there are changes to the information that I submitted?

You must notify the Minister in writing of any changes in the information that you have provided in Schedule 2, no more than five days after the change. The only exception to that requirement is any change in the information on your typical annual volumes. If typical annual volume changes, no update is required.

Submit changes to the applicable regional office of Environment Canada. The addresses of these offices are provided in Appendix A.

5.6 Why are producers and importers required to submit identification information?

The purpose of requiring the submission of identifying information to Environment Canada is to aid in the administration of the regulations. It allows Environment Canada to identify persons who produce or import diesel fuel and provides basic information needed to administer the regulations.

5.7 Should I include under Schedule 2 of the Regulations (registration information) ports of entry that are not my normal import locations but which are points where I might someday import?

Unless these locations become your "usual port of entry", there is no need to submit the location in your Schedule 2. Note you have the option to update the information in Schedule 2 no more than five days after a change as per subsection 5(5) of the Regulations.

5.8 What is a usual port of entry in Canada?

The "usual port of entry in Canada" can be either a land based border crossing or the first harbour on the Canadian Coast where the imported fuel is usually off-loaded.  Emergency alternative ports of entry would not be considered as a " usual port of entry".

5.9 I have a terminal at which batches of diesel fuel with different sulphur levels (eg. < 15 mg/kg and > 15 mg/kg) may be mixed together. Do I need to register the terminal as "a facility producing diesel fuel"?

No. The blending operation described does not result in the production of diesel fuel.

5.10 Do I have to use the Schedule 2 form as provided in the Regulations or the Compliance Promotion Package?

The Sulphur in Diesel Fuel Regulations do not specify what forms can be used. They require that the regulatee submit the information listed in Schedule 2.

Regular Reports (Quarterly until 2015 then Annual)

5.11 I produce or import diesel fuel. What information do the regulations require me to report?

You are required to submit the information set out in Schedule 1 of the Sulphur in Diesel Fuel Regulations.

5.12 How often and when do I need to report?

Quarterly until 2015; the frequency changes to annual starting January 1, 2015.

5.13 What units should be used for reporting requirements?

Subsection 6(1) of Schedule 1 of the regulations specifies that sulphur concentration is to be reported as mg/kg.

5.14 I only sell diesel fuel, what do I report under the regulations?

If you are not a producer or importer of diesel fuel, you are not required to report under the regulations.

5.15 When must the regular reports be submitted?

Quarterly reports are to be submitted within 45 days after the end of each calendar quarter until 2015. Starting January 1, 2015, these reports become annual and are required to be submitted 45 days after the end of the calendar year.

The last quarterly report would be due February 14^th, 2015 covering the fourth quarter, 2014. The next report would cover the calendar year 2015 and would be due February 14^th, 2016.

5.16 For which facilities do I submit the regular report?

The Quarterly (Annual starting 2015) Report of Sulphur Concentration in Diesel Fuel (Schedule 1) must be submitted separately for each facility at which a person produces diesel fuel and for each province or territory into which a person imports diesel fuel.

5.17 Are reports required for facilities in the distribution network that may occasionally blend diesel with other distillate components?

Generally no. Paragraph 5 (1) (b) of the regulations requires you to submit a report for each facility at which you produce (or import) diesel fuel. The mixing of batches of diesel fuel does not produce diesel fuel.

If a non-diesel fuel middle distillate were blended with diesel fuel to produce a batch of diesel fuel, then the resulting volume of diesel fuel should be reported under the regulations as diesel fuel that has been produced at the facility.

5.18 At my terminal I blend a batch of diesel fuel that has a sulphur level < 15 mg/kg with another batch of diesel fuel and the resulting product has a sulphur level < 15 mg/kg. Am I required to report this activity under subsection 5(1) and to make records under section 6?

No, the blending operation described did not result in the production of diesel fuel.

5.19 At my refinery I blend a batch of diesel fuel that has a sulphur level > 15 mg/kg with another batch of diesel fuel and the resulting product has a sulphur level < 15 mg/kg. Am I required to report this activity under section 5(1) and to make records under section 6?

If either of the batches were produced at your refinery, then you should make records in respect of the resulting product and include it in your reports.

5.20 I reprocess used or virgin motor oil to create a fuel that can evaporate at atmospheric pressure, that boils within the range of 130°C to 400°C and that is for use in diesel engines (as per the definition of diesel fuel under Section 1, Interpretation, of the Regulations). Am I considered a producer of diesel fuel under the regulation?

Yes, the activity described is production of diesel fuel under the regulation.

5.21 I produce kerosene or light fuel oil at my refinery. After the product has left the refinery, I want to re-designate it and sell it as diesel fuel. How do I deal with this situation under the regulations?

The product that you produced at your refinery would normally be a fuel that can evaporate at atmospheric pressure and that boils within the range of 130°C to 400°C. The product is also for use in diesel engines (as per the definition of diesel fuel under Section 1, Interpretation, of the Regulations.) Therefore the product produced at your refinery is diesel fuel under the regulations.

The product is subject to the sulphur limits set out in section 3. Under section 6 records must be made in respect of diesel fuel; subsection 6(2) requires that a record be made prior to its dispatch of a batch of diesel fuel. Such volumes of diesel fuel must also be reported under subsection 5(1), Schedule 1 of the Regulations

5.22 I have multiple import points in a province or territory. Do I submit a regular report for each import point?

There is only one report required per province or territory of import.

5.23 To whom do I send the report?

Reports are to be submitted to the applicable regional office of Environment Canada. The addresses of these offices are provided in Appendix A.

5.24 Who is an authorized official?

"Authorized official" is defined in section 1 of the regulations. In respect of a corporation, an "authorized official" is an officer of the corporation who is authorized to act on its behalf. In respect to any other person (whether an individual, a commercial entity or a government body) the authorized official is the person authorized to act on behalf of the individual, commercial entity or government body.

5.25 Can an officer of a corporation delegate a senior official of the corporation to act on his/her behalf for the purposes of being an "authorized official"?

No. If the producer or importer is a corporation, the regulations require that an officer of the corporation sign the relevant forms.

5.26 Are the reports the same as those I submit under the Fuels Information Regulations, No. 1?

No. The reports under the Fuels Information Regulations, No. 1 contain quarterly data on sulphur levels in a number of liquid fuels, including diesel fuel. Those reports are required to be submitted by January 31 of the following year.

5.27 Under the old Diesel Fuel Regulations, I could use the same forms that I used for submitting information under the Fuels Information Regulations, No. 1. Can I still use these forms under the Sulphur in Diesel Fuel Regulations?

The Sulphur in Diesel Fuel Regulations do not specify what forms can be used. They require that the regulatee submit the information listed in Schedule 1. This information contains items not found in the current form for the quarterly reports under the Fuels Information Regulations, No. 1.

5.28 Do I have to use the Schedule 1 form as provided in the Regulations or the Compliance Promotion Package?

The Sulphur in Diesel Fuel Regulations do not specify what forms can be used. They require that the regulatee submit the information listed in Schedule 1.

5.29 If I do not produce or import diesel fuel during a reporting period, do I still have to submit a report?

No. However a courtesy nil report is welcome if this is an unusual occurrence, and will reduce calls from Environment Canada.

5.30 Why are regular reports required?

Environment Canada considers that a certain minimum amount of information is required to be reported for monitoring purposes. As the 15 mg/kg limit comes into effect this information is required quarterly. In 2015, o nce there has been a few years experience with most of the diesel fuel pool at the 15 mg/kg limit, the reporting frequency changes to annual in 2015.

5.31 Can I submit electronic copies for reporting purposes?

A report signed by an authorized official is required.

5.32 Where do I submit the reports to Environment Canada ?

Reports are submitted to the applicable regional office of Environment Canada (addresses are listed in Appendix A).

5.33 The reporting requirements contain confidential business information. How will Environment Canada protect this information from disclosure?

Information that is submitted will be subject to the Access to Information Act, and the Privacy Act. In addition, section 313 of CEPA 1999 allows any person submitting information to the Minister of Environment to request that information be treated as confidential. The request for confidentiality must be made to the Minister in writing, and section 315 of the Act allows the Minister to over-ride that request in specific circumstances set out in that section of the Act.

5.34 If the information submitted under the reporting requirements of the regulations is used in reports or other publications by Environment Canada, will individual company data be aggregated regionally, to maintain data confidentiality?

Environment Canada considers information on volume of fuels produced or imported by a company to be confidential. Company reported information on fuel quality may be presented in public reports.

5.35 How will the information that is submitted under the reporting requirements be used?

The information will be used by Environment Canada to report on and monitor diesel fuel quality.

5.36 I import diesel fuel. Am I required to inform Environment Canada regarding such imports 12 hours in advance as is required under the Benzene in Gasoline Regulations?

No.

5.37 I produce or import diesel fuel. Prior to the October 2005 amendments to the regulations, paragraph 5(1)(a) required me to report on diesel fuel that I sold in each province. Am I required to report sales information afterJanuary 1, 2006?

Only for the last quarter of 2005.

5.38 I produce or import diesel fuel. Do I have to report on provincial sales for 2005?

Yes.

5.39 The October 2005 amendments to the Sulphur in Diesel Fuel Regulations introduce changes to Schedule 1 that take effect January 1, 2006. What do I report in 2006?

The last regular report under the pre October amendment Schedule 1 would cover the last quarter of 2005 (Q4/05) and would be due February 14, 2006. The first report under the revised Schedule 1 and per the October 2005 amendments would cover the first quarter of 2006 (Q1/06) and would be due May 15, 2006.

Alternative Test Methods

5.40 Subsection 5(3) states "... method referred to in paragraph (2)(b) is to be used for reporting purposes only and shall not be used for the purpose of determining compliance... ". What does this mean?

The method referred to in section paragraph 5(2)(b) may be used for reporting purposes. The test method specified in section 4 is used to determine compliance with the regulations. In the case of any conflict in the results obtained from the methods, the reference test method specified in section 4 will prevail.

5.41 Can I use an alternative test method to determine if diesel fuel that I produce, import or sell meets the sulphur limit?

No. The regulations specify that an alternative test, that is equivalent to the one stipulated in the regulations, may be used for reporting purposes only.

5.42 How do I apply to use an equivalent test method?

At least 60 days before the method is to be used, you must send to Environment Canada, by registered mail or courier, (i) a description of the proposed equivalent method, and (ii) evidence demonstrating that the proposed analysis method is "equivalent" to the method specified in Section 4 of the Sulphur in Diesel Fuel Regulations. The information should be sent to the applicable regional office of Environment Canada. The addresses of these offices are provided in Appendix A.

5.43 How do I demonstrate that the alternative method is equivalent to the one specified in Section 4 of the Sulphur in Diesel Fuel Regulations?

Methods must be validated as equivalent in accordance with ASTM D-4855-97 published by the American Society of Testing and Materials.

5.44 If equivalency of a test method has been demonstrated by another regulatee, may I use it?

A producer or importer of diesel fuel may use alternative analysis methods to meet reporting requirements, provided that it advises Environment Canada and submits evidence demonstrating equivalency at least 60 days before use of the method. Alternative test methods must be validated as equivalent under subparagraph 5(2)(f)(i).

Producers or importers of diesel fuel intending to use an alternative analysis method approved for use by another regulatee may reference the evidence provided by the other regulatee in demonstrating equivalency. The producer or importer of diesel fuel still must advise Environment Canada if it intends to use an alternative analysis method at least 60 days before use (subparagraph 5 (2)(f)(ii)).

5.45 Is a test method for measuring sulphur that has been approved for use under a U.S. fuel regulation automatically equivalent under section 5?

No. An alternative test method must be demonstrated to be equivalent under section 5(2)(f) in order to be used. See question 5.44.

5.46 Can I use an method for which equivalency has been demonstrated in accordance with the regulations under the Benzene In Gasoline Regulations?

You can only use a test method pursuant to paragraph 5(2)(f) of the Sulphur in Diesel Fuel Regulations, which requires that test methods be validated as equivalent and that you provide the Minister with the specified information.

5.47 Why do the regulations allow equivalent methods of analysis for sulphur content for reporting purposes?

The Sulphur in Diesel Fuel Regulations allow test methods that are validated as being equivalent to be used for reporting purposes. The regulations allow such methods to reduce administrative costs to industry associated with the regulations

5.48 Under what circumstances can Environment Canada reject an alternative method?

Environment Canada may reject the use of an alternative method for reporting purposes at any time if it is determined that the alternative method does not provide equivalent results to the applicable method. Environment Canada will notify the producer or importer of diesel fuel if a method is rejected.

5.49 Will Environment Canada issue a list of methods that have been demonstrated to be equivalent to the test method for reporting purposes?

Environment Canada maintains a list of test methods that have been validated as equivalent to the test method for reporting purposes identified in the regulations.

5.50 Are there test methods for which equivalency has already been demonstrated in accordance with the regulations?

There are methods for which equivalency to the reference test method for reporting purposes has been demonstrated in accordance with the regulation. A list of these methods can be found on the Environment Canada web-site and may be referred to in respect of evidence of equivalency.

Please note that subparagraph 5(2)(f)(ii) of the regulations requires that a producer or importer proposing to use an equivalent test method send Environment Canada at least 60 days before using the method a description of the method and evidence that it is equivalent.

5.51 What are the test methods for which equivalency has already been demonstrated ?

Refer to question 5.49

5.52 Can I just start using a test methods for which equivalency has been demonstrated ?

Subparagraph 5(2)(f)(ii) of the regulations requires that a producer or importer proposing to use an equivalent test method send Environment Canada at least 60 days before using the method a description of the method and evidence that it is equivalent.

Note that an alternative test method on the list of these methods at Environment Canada web-site may not necessarily be valid in respect of all products. (E.g. methods may not be equivalent valid for biodiesel.)