Guidance document on Sulphur in Diesel Fuel Regulations: general questions


General Questions

G.1 What are the penalties if I do not comply with the Sulphur in Diesel Fuel Regulations?

Compliance with regulations is mandatory. Environment Canada's Compliance and Enforcement Policy for CEPA 1999 sets out the criteria for responses by Environment Canada enforcement officers to alleged violations. Under subsections 272 and 273 of the Canadian Environmental Protection Act,1999 (CEPA 1999), every person who is found guilty of contravening or failing to comply with the Act or its regulations is subject to fines, imprisonment or other court orders. These sections should also be read in conjunction with s. 276 of the Act which provides that where an offence is committed or continued on more than one day, then each day on which the offence occurred may be prosecuted as a separate offence.

A copy of Environment Canada's Enforcement and Compliance Policy is available on request from the address listed below:

Director
Enforcement Branch
Environment Canada
351 St. Joseph Boulevard
Gatineau, Quebec K1A 0H3

You may also obtain a copy of the policy from the Compliance and Enforcement Policy for CEPA (1999) webpage.

In addition to financial and administrative penalties, if there is a contravention of the regulation, the Minister may require a producer, processor, importer, retailer or distributor to take any or all of the following measures:

  • provide notification of the relevant characteristics of the fuel and of any danger to the environment or to human life or health that might be posed by the fuel;
  • replace the fuel with fuel that meets the applicable requirement;
  • accept return of the fuel from the purchaser and refund the purchase price;
  • take other measures to mitigate the effect of the contravention on the environment or on human life or health; and
  • report on the steps taken.

G.2 Why is sulphur in diesel fuel regulated?

Sulphur occurs naturally in crude oil and so is found in diesel fuel. It is directly emitted from vehicles as sulphur dioxide and sulphate particles. Emissions caused by high sulphur levels affect the health of Canadians.

Reduction of sulphur to 15 mg/kg in diesel fuel is required to enable the efficient operation of advanced exhaust emission control technologies needed to comply with the new diesel vehicle and engine emission standards that are coming into effect. The lower sulphur level is required to enable the efficient operation of advanced exhaust emission control technologies needed to comply with the new emission standards.

Sulphur in diesel fuel is currently regulated in other jurisdictions with many countries requiring levels of 15 mg/kg or lower. In December 2000, the U.S. Environmental Protection Agency (EPA) adopted regulations limiting sulphur in diesel fuel for on-road applications to 15 mg/kgFootnote 1  starting June 2006. In June 2004, the U.S. EPA adopted further regulations to limit sulphur in diesel fuel for off-road, rail and marine applications to 500 mg/kg starting June 2007 and to 15 mg/kg in 2010 to 2012. In May 2001, the European Union proposed to introduce "zero" sulphur (defined as less than 10 mg/kg sulphur) on-road diesel fuel commencing January 1, 2005.

The Sulphur in Diesel Fuel Regulations align Canadian requirements for the allowable level of sulphur in diesel fuels for on-road vehicles, off-road engines, locomotive engines and vessel engines with those of the U.S.

G.3 Why are there limits for sulphur in diesel fuel used in rail and marine applications?

Locomotive and marine diesel engines are becoming a more significant contributor to air pollution in many areas. In 2005 the U.S. EPA passed requirements for non-road diesel fuel that include sulphur limits for rail and marine diesel fuels, decreasing allowable levels of sulphur by 99 percent. These fuel improvements will create immediate and significant environmental and public health benefits by reducing particulate matter (PM) from existing engines.

The EPA also announced its intent to propose more stringent locomotive engine emission standardsthat are modeled after its Clean Air Non-road Diesel Engines Program. Such standards would require the use of advanced emission-control technologies similar to those already passed for heavy-duty diesel trucks and buses. The availability of clean non-road diesel fuel required under the new non-road fuel standards will enable the use of this technology on locomotive engines. EPA estimates that nitrogen oxides (NOx) and PM emissions could be reduced by 90 percent by applying such advanced technology to locomotive engines.

The Sulphur in Diesel Fuel Regulations align Canadian requirements for the allowable level of sulphur in diesel fuels for on-road vehicles, off-road engines, locomotive engines and vessel engines with those of the U.S.

G.4 I understand that the regulations have been amended. Where can I find the various amendments?

The various amendments are available on the CEPA Registry under the parent regulations.

G.5 I find it confusing to read these regulations and the various amendments. Where can I find a consolidated regulation?

The consolidated regulations are available on-line from the Department of Justice.

Note that the consolidated regulations are updated regularly but may not always reflect the latest amendments.

G.6 To whom do the regulations apply?

The regulations apply to every person who produces, imports or sells diesel fuel.

G.7 Is there diesel fuel that is not subject to the regulations?

Diesel fuel that meets the following criteria is exempt from the regulations, provided that it is accompanied by written evidence establishing that it meets the defined criteria:

  • Diesel fuel that is in transit through Canada, from a place outside of Canada to another place outside of Canada ;
  • Diesel fuel that is produced or sold for export;
  • Imported diesel fuel for use in on-road vehicles, off-road engines, vessel engines or locomotive engines that exceeds sulphur concentrations and that will be further processed to meet the respective sulphur limit before the fuel is used or sold.

Persons seeking to avail themselves of these exemptions have to ensure that the diesel fuel is accompanied by written evidence establishing that it meets the defined criteria.

Diesel fuel that is being imported in a fuel tank that supplies the engine of conveyance is also not subject to the regulations.

G.8 What are the sulphur limits and associated timing under the regulations?

The production, import and sales limits for diesel fuel are summarized in the table below.

Sulphur Limit
(mg/kg)
On-Road
Diesel Fuel
Off-Road
Diesel Fuel
Rail and Marine
Diesel Fuel
500 Production
or Import
Since 1998 June 1, 2007 June 1, 2007
Sales Since 1998 October 1, 20072 October 1, 20072
15 Production
or Import
June 1, 2006 June 1, 2010 June 1, 2012
Sales September 1, 20061 October 1, 20103 N/A

1 September 1, 2007 in the Northern Supply Area
2 December 1, 2008 in the Northern Supply Area
3 December 1, 2011 in the Northern Supply Area

G.9 Are there sulphur limits for diesel fuel for off-road, rail or marine use prior to 2007?

No. Limits for those fuels take effect in 2007. The regulations do however require reporting on diesel fuel for these uses.

Note also that there may be provincial and or municipal regulations that set limits for sulphur in these fuels. In addition, there are commercial standards for these fuels set by the Canadian General Standards Board that may include sulphur levels.

G.10 I only import or produce diesel fuel that is not for use in on- or off-road vehicles, rail or marine applications. Do the regulations apply to me?

Yes, while the sulphur limits apply only to diesel fuel for those uses, you are required to submit schedule 2 (Identification Information) and to report as per Section 5. There are also record keeping requirements as per Section 6.

G.11 Does EC plan to regulate diesel fuel for use in stationary facilities?

In June 2005, the U.S. EPA proposed new emission standards for stationary diesel internal combustion engines. This proposed rule would limit the amount of sulphur in the diesel fuel used in those engines.

Environment Canada has a general policy of alignment with U.S. EPA fuel quality requirements. Therefore, if the U.S. EPA regulates requirements for stationary diesel fuel, EC would consider developing similar standards.

It should be noted that diesel engines designed for use in off-road, rail and marine applications may also be used for stationary applications. Such engines fall under the regulations' definition of "off-road engine".

G.12 If I only buy diesel fuel, but do not refine or import myself, what requirements do the regulations require me to meet?

If you buy diesel fuel from others and do not produce or import it, then the regulations only apply to you if you sell the diesel fuel. Refer to G.8 for a summary of the sales limits.

G.13 How do these regulations relate to the federal Fuels Information Regulations No. 1?

The federal Fuels Information Regulations, No. 1require that refiners and importers of fuels report annually on the average levels of sulphur in all liquid fuels, including diesel fuel, for each quarter of the year. They also require one-time notification of any changes in the use of additives in liquid fuels. The Fuels Information Regulations No. 1 do not limit the sulphur concentration in fuels. Those regulations are separate from the Sulphur in Diesel Fuel Regulations,which have both reporting requirements and limits on sulphur concentration in diesel fuel for use in on-road vehicles. Both regulations must be complied with.

G.14 How do these regulations relate to the federal Diesel Fuels Regulations?

The federal Sulphur in Diesel Fuel Regulations revoked and replaced the federal Diesel Fuel Regulations effective January 1, 2003.

G.15 How do these regulations relate to provincial diesel fuel regulations?

Some provinces require that the Canadian General Standards Board's (CGSB) standard diesel fuel be met. Both provincial and federal regulations must be complied with.

G.16 Do the regulations include labeling requirements at the pump for diesel fuel that is sold?

No.

G.17 The "Minister" is referred to throughout the Regulation. Who is the "Minister"?

The "Minister" is the federal Minister of Environment. Note that where the regulations require information to be submitted to the Minister, it should be sent to the Regional Director of the applicable regional office of Environment Canada, who acts on behalf of the Minister in this regard. The addresses of these offices are provided in Appendix A.

G.18 How do these regulations relate to the On-Road Vehicle and Engine Emission Regulations?

The Sulphur in Diesel Fuel Regulations limit sulphur in diesel fuel to the required level that will enable the efficient operation of advanced exhaust emission control technologies needed to comply with the new emission standards set out in those regulations.

G.19 How do these regulations relate to the Off-Road Compression-Ignition Engine Emission Regulations?

The Sulphur in Diesel Fuel Regulations limit sulphur in diesel fuel to a level that will enable the efficient operation of advanced exhaust emission control technologies needed to comply with the new emission standards set out in the next phase of those regulations.

The next phase of those regulations will align with the Tier 4 standards as described in the U.S. EPA -nonroad rule.

G.20 How do the Sulphur in Diesel Fuel Regulations relate to the Off-Road Small Spark-Ignition Engine Emission Regulations?

Those regulations do not deal with diesel-powered engines. Refer to the Sulphur in Gasoline Regulations and the Benzene in Gasoline Regulations for regulations on gasoline.

G.21 What are the important dates in the regulations?

A list of important dates in the regulations is presented below:

Important Dates in the Sulphur in Diesel Fuel Regulations

      January 1, 2003

Sulphur in Diesel Fuel Regulations (SOR/2002-253) come into force and the Diesel Fuel Regulations (SOR/97-110) are repealed.

Limit for sulphur in diesel fuel for use in on-road vehicles does not change.

Some changes in administrative provisions (eg. reporting, record keeping).

      March 2, 2003

Every person who produces or imports diesel fuel must submit registration information as set out in Schedule 2 of the regulations.

      May 15, 2003

Every person who produces or imports diesel fuel must submit first quarterly report under the new regulations providing the information prescribed by subsection 5(1). Future reports are due no later than 45 days after the end of each quarter.

      January 1, 2004

Reference method for measuring the concentration of sulphur in diesel changes from CAN/CGSB-3.0 No. 16.0-95 to ASTM D 5453-00.

Method for reporting concentration of sulphur in diesel is ASTM D 5453-00 or an equivalent method if the conditions of 5(2)(f) are met.

      October 19, 2005

The Regulations Amending the Sulphur in Diesel Fuel Regulations (SOR/2005-305) are published in Part II of the Canada Gazette.

      January 1, 2006

The Regulations Amending the Sulphur in Diesel Fuel Regulations (SOR/2005-305) come into force.

      March 2, 2006

Every person who produces or imports diesel fuel must submit updated registration information as set out in Schedule 2 of the Amending Regulations.

      June 1, 2006

15 mg/kg limit for concentration of sulphur in diesel fuel for use in on-road vehicles comes into effect for production and imports.

      September 1, 2006

15 mg/kg limit for concentration of sulphur in diesel fuel for use in on-road vehicles comes into effect for sales and offers to sell (except in northern supply area). (Note: refer also to question 3.13 regarding possible changes to this date.)

      June 1, 2007

500 mg/kg limit for concentration of sulphur in diesel fuel for use in off-road, rail and marine diesel engines comes into effect for production and imports.

      September 1, 2007

15 mg/kg limit for concentration of sulphur in diesel fuel for use in on-road vehicles comes into effect for sales and offers to sell in the northern supply area.

      October 1, 2007

500 mg/kg limit for concentration of sulphur in diesel fuel for use in off-road, rail and marine diesel engines comes into effect for sales and offers to sell (except in northern supply area).

      December 1, 2008

500 mg/kg limit for concentration of sulphur in diesel fuel for use in off-road, rail and marine diesel engines comes into effect for sales and offers to sell in the northern supply area.

      June 1, 2010

15 mg/kg limit for concentration of sulphur in diesel fuel for use in off-road engines comes into effect for production and imports.

      October 1, 2010

15 mg/kg limit for concentration of sulphur in diesel fuel for use in off-road engines comes into effect for sales and offers to sell (except in northern supply area).

      December 1, 2011

15 mg/kg limit for concentration of sulphur in diesel fuel for use in off-road engines comes into effect for sales and offers to sell in the northern supply area.

      June 1, 2012

15 mg/kg limit for concentration of sulphur in diesel fuel for use in rail and marine diesel engines comes into effect for production and imports.

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