Guidance document on Sulphur in Diesel Fuel Regulations: questions on section 2

Questions on Section 2 of the Regulations

Section 2: Application

2.1 Do the regulations apply to all diesel fuel?

The limits in the regulations apply to diesel fuel for use in on-road vehicles , off-road, vessel (marine) and locomotive (rail) engines . Diesel fuel that is not for use in such engines is not required to meet the compositional requirements of the regulations but is subject to reporting and record keeping requirements.

The regulations do not apply to:

Diesel Fuel in Transit: The fuel is in transit through Canada , from a place outside Canada to another place outside Canada , and is accompanied by written evidence establishing that the fuel is in transit;

Diesel Fuel for Export: The fuel is produced or sold for export and is accompanied by written evidence establishing that the fuel will be exported;

Diesel Fuel to be further processed: The fuel being imported is for use in on-road vehicles, off-road engines, vessel engines or locomotive engines, its concentration exceeds the sulphur limit and the fuel is accompanied by written evidence establishing that it will meet the requirements of the regulations 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.

The regulations also do not apply to:

Diesel fuel in tank of vehicle: Diesel fuel in a fuel tank that is connected to the engine of a conveyance that is used for transportation by water, land or air.

2.2 I produce / import / sell diesel fuel for use in stationary facilities. What are the requirements under the regulations for this fuel?

Presently, the Sulphur in Diesel Fuel Regulations do not have sulphur limits that apply to diesel fuel for use in stationary facilities. There, however may be municipal and/or provincial regulations that limit sulphur in such diesel fuel. It should be noted that diesel engines designed for off-road, rail and marine applications may also be used for stationary applications. Such engines fall under the regulations' definition of "off-road engine".

The regulations do have reporting and record-keeping requirements for all producers and importers of diesel fuel, including stationary diesel fuel. Refer to Section 5 (Reports) and 6 (Records) for further details on these requirements. In June 2005, the U.S. EPA proposed a rule addressing emission controls for stationary diesel internal combustion engines. This proposed rule contains fuel requirements that limit the amount of sulphur in the diesel fuel used to run these engines.

2.3 I import or produce diesel fuel for scientific research. Is this fuel exempt from the requirements of the regulations?

No, all requirements of the regulations apply.

2.4 There are barrels of diesel fuel stored throughout northern Canada designated for emergency purposes. Do the regulations apply to such stores of diesel fuel?

There are no exemptions in the regulation for stored diesel fuel. Diesel fuel that is sold is subject to the limits summarized in 3.10.

In developing the regulations, Environment Canada consulted the provinces and territories that might have strategic stores of diesel fuel on whether special provisions were required for this fuel. Environment Canada was advised that no special provisions were required.

As such volumes of diesel fuel have been stored for emergency purposes, it would be desirable that they meet the lowest sulphur limit, 15 mg/kg maximum, in order to be compatible with any engine that could use the fuel.

2.5 Paragraphs 2 (a), (b) and (c) stipulate that the regulations do not apply under certain circumstances, provided that the fuel is "accompanied by written evidence". What is meant by "written evidence"?

The circumstances set out in paragraphs 2 (a), (b) and (c) are copied from subsection 139(2) of CEPA 1999. 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. CEPA 1999 does not define the requirements for written evidence. If there was an issue around the sufficiency of written evidence during a prosecution under the regulations, it would be decided by the court.

2.6 What requirements apply to diesel fuel in transit between refineries in Canada and intended to be further processed, prior to being sold or transferred?

The regulations do not differentiate diesel fuel in transit between refineries in Canada from other diesel fuel. Such fuel is therefore subject to all of the requirements of the regulations.