Canada Gazette, Part I, Volume 150, Number 21: Regulations Amending Certain Regulations Made Under Sections 140, 209 and 286.1 of the Canadian Environmental Protection Act, 1999

May 21, 2016

Statutory authority

Canadian Environmental Protection Act, 1999

Sponsoring department

Department of the Environment

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

The Department of the Environment administers a wide range of regulations under the Canadian Environmental Protection Act, 1999 (CEPA). To ensure that these regulations continue to be administered efficiently and to provide clarity for regulated parties, these regulations are reviewed and updated from time to time. The Department of the Environment has identified the need for a number of changes to the regulatory texts of five regulations made under CEPA in response to concerns, comments and recommendations from the Standards Council of Canada (SCC) regarding outdated standards referenced in Canadian federal regulations, from the Standing Joint Committee for the Scrutiny of Regulations (SJCSR) regarding a lack of clarity and some inconsistencies in the regulatory text of several regulations, and from the Commissioner of the Environment and Sustainable Development (CESD) regarding the enforceability of regulations. (see footnote 1) The Department of the Environment has also identified other necessary changes and minor issues.

The following regulations (collectively referred to as “the five regulations”) have been identified for amendments as part of this omnibus regulatory process:

Objectives

The objectives of the proposed Regulations Amending Certain Regulations Made Under Sections 140, 209 and 286.1 of the Canadian Environmental Protection Act, 1999 (the proposed Amendments) are to improve the clarity and consistency of the regulatory texts, align the English and French versions of the regulations, update references to external standards, and clarify compliance and enforcement components. Furthermore, the proposed Amendments aim to respond to concerns, comments and recommendations from the SCC, the SJCSR and the CESD.

Description

The Department of the Environment proposes to amend the five regulations within an omnibus process in order to make required changes to improve the clarity and consistency of the regulatory texts and compliance requirements, and to keep references to standards up to date. The proposed Amendments would not have an incremental impact on compliance costs, while a reduction in administrative costs is expected for one of these regulations (Sulphur in Diesel Fuel Regulations).

The proposed Amendments would also make amendments to the Designation Regulations to reflect the recent repeal of designated provisions and add new provisions.

The proposed Amendments to their respective regulations are found below.

1. Fuels Information Regulations, No.1

The Fuels Information Regulations, No. 1 were adopted in 1977 to provide the Department of the Environment with information regarding liquid fuel composition, particularly concerning sulphur dioxide (SO2) emissions from combustion. These Regulations require annual reporting on sulphur levels in fuels and one-time reporting on non-lead fuel additive content. Additional reporting of additives is required when there are changes in these levels or content. The Regulations apply to all fuels in liquid form that originate from crude oils, coal or bituminous sands.

The proposed Amendments would make changes to the Fuels Information Regulations, No. 1 to enable electronic reporting, update units of measurement and make minor changes to Form 1 in order to be consistent with the regulatory text and increase clarity. The proposed Amendments would

2. Gasoline Regulations

The Gasoline Regulations limit the concentration of lead in gasoline that is produced, imported, sold or offered for sale in Canada and limit the concentration of phosphorus in unleaded gasoline. These Regulations also specify the acceptable analytical methods for determining the concentration of lead and phosphorus in gasoline and impose record-keeping and reporting obligations about leaded gasoline. Gasoline for use in aircraft is exempt from the Regulations, and leaded gasoline for use in competition vehicles is not subject to the lead concentration restrictions imposed by the Regulations.

The proposed Amendments would make changes to the Gasoline Regulations to update a reference to a standard that was replaced by a new version, as well as to allow for the addition of electronic reporting. The proposed Amendments would

3. Sulphur in Diesel Fuel Regulations

The Sulphur in Diesel Fuel Regulations set maximum limits for sulphur in diesel fuel for use in on-road, off-road, rail (locomotive), vessel, and stationary engines. The goal of the Sulphur in Diesel Fuel Regulations is to ensure that the level of sulphur in diesel fuel used in Canada would not impede the effective operation of advanced emission control technologies installed in vehicles and engines.

The proposed Amendments would make changes to the Sulphur in Diesel Fuel Regulations to address comments and concerns raised by the SJCSR and address inconsistencies between French and English. The proposed Amendments would

The proposed Amendments would also update the Regulations in a manner that does not impact compliance requirements. One proposed change (3.5) would provide a minor reduction in administrative burden. The proposed Amendments would

4. Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations

The main objective of the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations is to prevent soil and groundwater contamination from storage tank systems under federal jurisdiction.

The proposed Amendments would make changes to the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations to address inconsistencies between the French and English versions of the Regulations. The proposed Amendments would

These changes would align the connection between the federal work and the use of a storage tank, and maintain a direct link to the locations that are listed below the paragraph;

The proposed Amendments would address SJCSR concerns:

The proposed Amendments would address an issue related to the compliance and enforcement components of the Regulations. The proposed Amendments would

In addition, the Department of the Environment has identified that this proposed amendment would meet the criteria to be designated under section 286.1 of CEPA. Consequently, an amendment to the Designation Regulations would be required in order to add the new section to Item 20 of the schedule (see description in section 5.5).

The proposed Amendments would also update references to technical standards:

5. Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999)

The Environmental Enforcement Act received royal assent on June 18, 2009, and introduced a new fine scheme to be applied by courts following a successful prosecution pursuant to any of the nine environmental statutes that it amends. Under the new scheme, designated offences involving direct harm or risk of harm to the environment, or obstruction of authority, are subject to an increased fine range. For CEPA, this fine scheme came into force on June 22, 2012.

The Department of the Environment has identified provisions of certain regulations that meet the criteria to be designated under the Regulations Designating Regulatory Provisions for the Purposes of Enforcement (Canadian Environmental Protection Act, 1999) [Designation Regulations]. The proposed Amendments would make changes to the schedule of the Designation Regulations to effect the changes listed below:

“One-for-One” Rule

The “One-for-One” Rule applies to the proposed Amendments, which are considered an “OUT” under the Rule. One of the proposed regulatory changes would result in a reduction of administrative and reporting costs, while the other amendments cause no change in administrative costs to stakeholders.

The removal of the requirement for the signature of an authorized official for the 12-hour advance notification of imports under the Sulphur in Diesel Fuel Regulations (proposed amendment in section 3.5) would decrease the administrative burden for stakeholders that import diesel fuels. The Department of the Environment estimates that 850 notifications would be submitted per year, with each report estimated to take 1.5 hours, at $56 an hour, for an authorized official to review before signing. (see footnote 7)

Overall, the proposed Amendments are expected to result in a reduction of annualized average administrative burden of approximately $68,265, (see footnote 8) using a 10-year time period and a 7% discount rate. Per business, this is about $1,393 on an annualized average basis. (see footnote 9)

Small business lens

The small business lens does not apply to the proposed Amendments as, overall, there would be a reduction in administrative costs for small businesses combined with no increase in compliance costs.

Consultation

Given that the proposed Amendments would improve the clarity and consistency of regulatory texts and that they are minor in nature, no formal consultations have been held with stakeholders. The CEPA National Advisory Committee (NAC) (see footnote 10) was provided with an offer to consult on the proposed Amendments; however, no responses were received.

In conjunction with prepublication in the Canada Gazette, Part I, the Department of the Environment will notify key stakeholders, provincial authorities and other stakeholders of the proposed Amendments to the Designation Regulations, the impact on fines issued under CEPA for offences against designated provisions, and the public comment period associated with prepublication. This information is posted on the Department of the Environment Web site. (see footnote 11)

Following prepublication in the Canada Gazette, Part I, the Department of the Environment will communicate with representatives of the petroleum refining sector and petroleum importers, the fuel transportation and distribution sector, fuel storage terminals, and retail fuel suppliers to consult on the proposed Amendments and the assumptions behind the “One-for-One” calculation, including an estimated average number of hours of staff time reduced per company per year due to the updated administrative reporting requirements.

Rationale

The proposed Amendments would respond to the concerns, comments and recommendations identified by the SJCSR, the SCC, and the CESD, and address numerous minor issues and inconsistencies in the current regulatory texts of the five regulations. As well, the proposed Amendments would make amendments to the Designation Regulations to reflect the recent repeal of designated provisions and add new provisions. By addressing the proposed Amendments collectively under an omnibus regulatory package, the Department of the Environment would make the many necessary changes to the regulatory texts of many regulations in the most effective and efficient manner for stakeholders.

The impact of the proposed Amendments on stakeholders is expected to be minimal as the proposed Amendments are relatively minor in nature. The changes related to compliance and enforcement components are not expected to have impacts on stakeholders, as they aim to clarify the existing regulatory text. Stakeholders of the Sulphur in Diesel Fuel Regulations would have a reduction in administrative burden. Overall, the impacts of the proposed Amendments are expected to be positive in consideration of the benefits listed above and the reduction in administrative burden costs for stakeholders.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that no important environmental effects, either positive or negative, are expected. Therefore, and in accordance with the Cabinet Directive, a strategic environmental assessment is not required.

Contacts

Stewart Lindale
Director
Regulatory Innovation and Management Systems
Department of the Environment
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Telephone: 819-420-7792
Fax: 819-420-7386
Email: stewart.lindale@canada.ca

Yves Bourassa
Director
Regulatory Analysis and Valuation Division
Department of the Environment
200 Sacré-Cœur Boulevard
Gatineau, Quebec
K1A 0H3
Telephone: 873-469-1452
Fax: 819-938-3374
Email: DARV.RAVD@canada.ca

PROPOSED REGULATORY TEXT

Notice is given, pursuant to subsection 332(1) (see footnote a) of the Canadian Environmental Protection Act, 1999 (see footnote b), that the Governor in Council proposes, pursuant to sections 140 (see footnote c), 209 and 286.1 (see footnote d) of that Act, to make the annexed Regulations Amending Certain Regulations Made Under Sections 140, 209 and 286.1 of the Canadian Environmental Protection Act, 1999.

Any person may, within 75 days after the date of publication of this notice, file with the Minister of the Environment comments with respect to the proposed Regulations or, within 60 days after that date, file with the Minister a notice of objection requesting that a board of review be established under section 333 of that Act and stating the reasons for the objection. All comments and notices must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Stewart Lindale, Director, Regulatory Innovation and Management Systems, Legislative and Regulatory Affairs Directorate, Department of the Environment, Gatineau, Quebec K1A 0H3 (fax: 819-420-7386; email: stewart.lindale@canada.ca).

A person who provides the Minister with information may submit with the information a request for confidentiality under section 313 of that Act.

Ottawa, May 12, 2016

Jurica Čapkun
Assistant Clerk of the Privy Council

Regulations Amending Certain Regulations Made Under Sections 140, 209 and 286.1 of the Canadian Environmental Protection Act, 1999

Regulations Respecting Information Regarding the Chemical Composition of Fuels

1 The long title of the Regulations Respecting Information Regarding the Chemical Composition of Fuels (see footnote 12) is replaced by the following:

FUELS INFORMATION REGULATIONS, NO. 1

2 Section 1 of the Regulations and the heading before it are repealed.

3 The Regulations are amended by adding the following after section 5:

6 (1) Information that is required under these Regulations shall be sent electronically in the form and format specified by the Minister and shall bear the electronic signature of an authorized official.

(2) If the Minister has not specified an electronic form and format or if it is impractical to send the information electronically in accordance with subsection (1) because of circumstances beyond the control of the person sending the information, they shall send it on paper, signed by an authorized official, in the form and format specified by the Minister. However, if no form and format have been so specified, the information may be in any form and format.

(3) For the purposes of subsections (1) and (2) and the schedule, an authorized official is

4 The schedule to the Regulations is amended by replacing the references after the heading “SCHEDULE” with the following:

(Sections 4 to 6)

5 Form 1 of the schedule to the Regulations is replaced by the Form 1 set out in Schedule 1 to these Regulations.

Regulations Respecting Concentrations of Lead and Phosphorus in Gasoline

6 The long title of the Regulations Respecting Concentrations of Lead and Phosphorus in Gasoline (see footnote 13) is replaced by the following:

Gasoline Regulations

7 Section 1 of the Regulations and the heading before it are repealed.

8 Section 7 of the Regulations is replaced by the following:

7 The concentration of lead in gasoline produced in, imported into or sold in Canada shall be measured in accordance with the National Standard of Canada method CAN/CGSB-3.0 No. 19.5-2011, Methods of Testing Petroleum and Associated Products: Determination of Lead in Automotive Gasoline (Atomic Absorption), as amended from time to time.

9 Subsection 11(4) of the Regulations is repealed.

10 The Regulations are amended by adding the following after section 11:

12 (1) A record that is required under these Regulations shall be sent electronically in the form and format specified by the Minister and shall bear the electronic signature of an authorized official.

(2) If the Minister has not specified an electronic form and format or if it is impractical to send the record electronically in accordance with subsection (1) because of circumstances beyond the control of the person sending the record, they shall send it on paper, signed by an authorized official, in the form and format specified by the Minister. However, if no form and format have been so specified, the record may be in any form and format.

(3) For the purposes of subsections (1) and (2), an authorized official is

Sulphur in Diesel Fuel Regulations

11 Subsection 1(2) of the French version of the Sulphur in Diesel Fuel Regulations (see footnote 14) is replaced by the following:

(2) Dans le présent règlement, toute mention d'une norme ou d'une méthode incorporées par renvoi constitue un renvoi à la norme ou à la méthode avec ses modifications successives.

12 (1) Subsection 5(1) of the Regulations is replaced by the following:

5 (1) Every person who produces or imports diesel fuel shall, for each calendar year during which diesel fuel is produced or imported, submit to the Minister, within 45 days after the end of that calendar year, a report that contains the information referred to in Schedule 1 for each facility where the person produces diesel fuel and for each province into which the person imports diesel fuel.

(2) Paragraph 5(2)(b) of the Regulations is replaced by the following:

(3) Subsection 5(6) of the Regulations is repealed.

13 (1) Subsection 5.2(2) of the English version of the Regulations is replaced by the following:

(2) If the Minister has not specified an electronic form and format or if it is impractical to send the report or notice electronically in accordance with subsection (1) because of circumstances beyond the control of the person sending the report or notice, they shall send it on paper, signed by an authorized official and in the form and format specified by the Minister. However, if no form and format have been so specified, the report or notice may be in any form and format.

(2) Section 5.2 of the Regulations is amended by adding the following after subsection (2):

(3) Despite subsections (1) and (2), the notice under subsection 5.1(1) is not required to be signed by an authorized official.

14 Section 2 of Schedule 1 to the Regulations is repealed.

15 Section 5 of Schedule 1 to the English version of the Regulations is amended by adding “of” after “or”.

Storage Tank Systems For Petroleum Products and Allied Petroleum Products Regulations

16 (1) The definition spill in section 1 of the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations (see footnote 15) is repealed.

(2) The definition partially buried tank in section 1 of the Regulations is replaced by the following:

partially buried tank means a tank that has part of its volume above ground and part of its volume below ground, unless all of the tank volume is encased within an unfilled secondary containment. (réservoir partiellement enfoui)

17 The Regulations are amended by adding the following after section 1:

1.1 (1) A method or standard that is incorporated by reference into these Regulations is incorporated as amended from time to time.

(2) For the purposes of interpreting documents that are incorporated by reference into these Regulations, “should” must be read to mean “must” and any recommendation or suggestion must be read as an obligation.

18 Paragraph 2(1)(b) of the Regulations is replaced by the following:

19 The Regulations are amended by adding the following before section 3:

2.1 (1) A person must not release — or permit or cause any release of — a petroleum product or allied petroleum product, in liquid form in the environment, from a storage tank system unless, in the case of a system that provides secondary containment, the release does not reach outside that secondary containment.

(2) A person must not release — or permit or cause any release of — a petroleum product or allied petroleum product, in liquid form in the environment, during the transfer of the product to or from a storage tank system if, in the case of a system that has a transfer area, the release during transfer reaches outside the transfer area.

20 Section 13 of the English version of the Regulations is replaced by the following:

13 A person must not use a secondary containment area for storage purposes.

21 (1) Subparagraph 14(1)(c)(ii) of the Regulations is replaced by the following:

(2) The portion of subsection 14(2) of the Regulations before paragraph (b) is replaced by the following:

(2) The owner or operator of a storage tank system that has aboveground tanks that installs those tanks on or after June 12, 2008 must ensure that those tanks are equipped with a spill containment device that bears a certification mark certifying conformity with ULC-ORD-C142.19, Spill Containment Devices for Aboveground Flammable and Combustible Liquid Storage Tanks, or with CAN/ULC-S663-11, Standard for Spill Containment Devices for Flammable and Combustible Liquid Aboveground Storage Tanks, whichever was in the most recent at the time the storage tank system was manufactured, unless

(3) Subparagraph 14(2)(b)(i) of the Regulations is replaced by the following:

(4) Subparagraphs 14(2)(b)(iii) to (vi) of the Regulations are replaced by the following:

(5) Subparagraph 14(3)(a)(i) of the Regulations is replaced by the following:

(6) Subparagraph 14(3)(b)(i) of the Regulations is replaced by the following:

(7) Subparagraph 14(5)(b)(ii) of the Regulations is replaced by the following:

(8) Subsection 14(6) of the Regulations is replaced by the following:

(6) Any reference to a standard in this section is a reference to the version of that standard that is in effect at the time the storage tank system's component is erected or manufactured, as applicable.

22 Subsection 15(1) of the Regulations is replaced by the following:

15 (1) The owner or operator of a storage tank system must ensure that petroleum product and allied petroleum product transfer areas are designed to contain any releases in liquid form in the environment that occur during the transfer process.

23 Paragraph 29(a) of the Regulations is replaced by the following:

24 Paragraph 30(2)(d) of the Regulations is replaced by the following:

25 Subsection 35(2) of the Regulations is replaced by the following:

(2) If the owner or operator becomes aware of a leak in the storage tank system or a release in liquid form in the environment, they must, without delay, measure the thickness of the free oil layer and the separated solids layer in the oil-water separator and keep a record of that measurement.

26 (1) Paragraph 41(1)(c) of the Regulations is replaced by the following:

(2) Paragraphs 41(1)(f) and (g) of the Regulations are replaced by the following:

(3) Subsection 41(2) of the Regulations is replaced by the following:

(2) In the event of a release of less than 100 L of a petroleum product or an allied petroleum product, in liquid form, the report under paragraph 212(1)(a) of the Canadian Environmental Protection Act, 1999 is not required.

27 Schedule 1 to the Regulations is replaced by the Schedule 1 set out in the Schedule 2 to these Regulations.

28 The English version of the Regulations is amended by replacing “grade” with “ground” in the following provisions:

29 The Regulations are amended by replacing “the day on which these Regulations come into force” and “the coming into force of these Regulations” with “June 12, 2008” in the following provisions:

30 The French version of the Regulations is amended by replacing “celle-ci” with “cette date” in the following provisions:

Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999)

31 (1) Item 16 of the schedule to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999) (see footnote 16) is amended by adding, in column 2, the following after paragraph (a):
Item

Column 2

Provisions
16
  • (b) subsections 5(1) and (2)

(2) Item 17 of the schedule to the Regulations is repealed.

(3) The portion of item 20 of the schedule to the Regulations in column 2 is replaced by the following:
Item

Column 2

Provisions
20
  • (a) section 2.1
  • (b) section 3
  • (c) section 5
  • (d) section 6
  • (e) section 7
  • (f) section 8
  • (g) subsection 9(1)
  • (h) subsection 10(1)
  • (i) section 11
  • (j) section 12
  • (k) subsections 14(1) to (5)
  • (l) subsection 15(1)
  • (m) subsection 36(2)
  • (n) subsection 37(2)
  • (o) section 38
  • (p) subsection 40(1)
  • (q) paragraph 44(3)(c)
(4) The schedule to the Regulations is amended by adding the following:
Item

Column 1

Regulations

Column 2

Provisions
26 Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations
  • (a) subsection 3(1)
  • (b) subsection 6(5)
  • (c) paragraph 10(e)
  • (d) subsection 14(5)
27 Prohibition of Certain Toxic Substances Regulations, 2012
  • (a) subsection 4(1)
  • (b) subsection 6(1)
28 Products Containing Mercury Regulations
  • (a) paragraphs 3(a) and (b)

Coming into Force

32 These Regulations come into force on the day on which they are registered.

SCHEDULE 1

(Section 5)

FORM 1

Report on Sulphur Content

Reporting Period ________________________________________

Company Name _________________________________________

Facility Name ______________________________

Telephone ___________________

Facility Address ____________________________________________

Fuels Produced in or Imported into Canada

Item

Column 1

Name of Fuel

Column 2

Quantity Produced or Imported (m3) (see footnote 17)

Column 3

API Gravity or Density (kg/m3)

Column 4

Sulphur Content (mg/kg)

Highest

Lowest

Weighted Average

1

Aviation Turbo Fuel

          

2

Motor Gasoline

  • (a) mid grade
  • (b) regular
  • (c) premium
          

3

Kerosene and Stove Oil

          

4

Diesel Oil (by type)

          

5

No. 2 Light Fuel Oil

          

6

Heavy Fuel Oil

  • (a) #4
  • (b) #5
  • (c) #6
          

7

Synthetic Crude (sold as fuel)

          

8

A fuel other than the fuels named in items 1 to 5

          
 

(Signature of Authorized Official)

(Title)

(Date Signed)

SCHEDULE 2

(Section 27)

SCHEDULE 1

(Section 1)

Allied petroleum products

NOTE: The CGSB standards are established by the Canadian General Standards Board.

[21-1-o]