Sulphur in Gasoline Regulations (SOR/99-236)

4 [Repealed, SOR/2015-187, s. 5]

Records of Type of Gasoline

• 5 (1) A primary supplier may, before importing a batch of gasoline or dispatching one from a refinery or blending facility, identify the gasoline by recording it as one of the following types:

  • (a) low-sulphur gasoline;

  • (b) gasoline for use in aircraft;

  • (c) gasoline for use in competition vehicles;

  • (d) gasoline for use in scientific research;

  • (e) gasoline for export;

  • (f) gasoline in transit through Canada; or

  • (g) [Repealed, SOR/2015-187, s. 6]

  • (h) gasoline-like blendstock.

• (2) Any batch of gasoline dispatched by a primary supplier from a refinery or blending facility, or imported by a primary supplier, that has not been identified and recorded under subsection (1) is considered, for the purposes of these Regulations, to have been identified as low-sulphur gasoline.

• (3) A primary supplier shall, for each batch of gasoline that is identified as a type referred to in any of paragraphs (1)(b) to (f), keep a record of its type and the use for which it was sold or delivered.

Gasoline-like Blendstock

• 6 (1) Before any batch of gasoline-like blendstock is dispatched from a refinery or blending facility, or imported or sold, the person who dispatches, imports or sells the batch shall make a record that identifies the fuel as “gasoline-like blendstock that is intended to be further refined or blended to produce low-sulphur gasoline” and that contains the following information:

  • (a) the name and address of the person who dispatched, imported or sold the batch;

  • (b) the name and address of the primary supplier who originally produced or imported the batch;

  • (c) the registration number pertaining to the refinery or blending facility at which the batch was produced or to the province into which the batch had originally been imported;

  • (d) the name and address of the person who purchases or receives the batch and the name and address of the facility to which the batch is dispatched;

  • (e) the date of the dispatch, importation or sale of the batch; and

  • (f) the volume of the batch that is scheduled to be dispatched or imported.

• (2) No person shall sell a batch of gasoline-like blendstock without providing the person purchasing or receiving the batch, before the transfer of possession or ownership of the batch, with a copy of the record that the seller is required to make under subsection (1).

• (3) [Repealed, SOR/2015-187, s. 7]

Retention of Records

7 Every person required to make a record under section 5 or 6 shall maintain the record in Canada for a period of five years after the day on which the record was made.

Submission of Samples and Records

8 At the Minister’s request, any person who produces, imports or sells gasoline shall submit to the Minister

• (a) a sample of the gasoline;

• (b) a copy of any records required by section 5, 6 or 12; and

• (c) the name and address of any person from whom the gasoline was acquired and the date of acquisition.

PART 2Requirements Pertaining to a Pool Average

Pool Average Election

• 9 (1) A primary supplier may, in respect of a pool, elect to calculate the concentration of sulphur in gasoline that is in the pool on the basis of a pool average by submitting to the Minister a notice of the election within the period specified in subsection (2.1) or (2.2).

• (1.1) A pool shall be composed of one of the following:

  • (a) gasoline that is produced at a particular refinery;

  • (b) gasoline that is produced at a particular blending facility;

  • (c) gasoline that is imported.

• (2) Notice of an election under subsection (1) shall

  • (a) specify the pool to which the election applies;

  • (b) describe the techniques that the primary supplier will use to construct and evidence the pool average, including

    • (i) the location at its facilities where, the manner in which, and the frequency with which, the primary supplier will collect samples,

    • (ii) the location at which the primary supplier will determine the sulphur concentration of batches,

    • (iii) the method by which the primary supplier will determine the volume of batches,

    • (iv) the method by which the primary supplier will make and maintain the records,

    • (v) the location in Canada where the primary supplier will keep the samples and records, and

    • (vi) how subparagraphs (i) to (v) will be applied to any batch referred to in any of subsections 10(3) to (5); and

  • (c) if the primary supplier intends to adjust the recorded concentration of sulphur of a batch of gasoline in accordance with subsection 10(6), describe the techniques that the primary supplier will use to construct and evidence that adjustment and the sulphur concentration and volume of the sulphur-limited oxygenate or sulphur-limited butane added to the batch, including

    • (i) the name and civic address of each facility at which the sulphur-limited oxygenate or sulphur-limited butane will be added,

    • (ii) the method by which, and the location at which, the primary supplier will determine the sulphur concentration of the sulphur-limited oxygenate or sulphur-limited butane,

    • (iii) the method by which the primary supplier will determine the volume of the sulphur-limited oxygenate or sulphur-limited butane,

    • (iv) the method by which the primary supplier will adjust the sulphur concentration of each batch,

    • (v) the method by which the primary supplier will keep the record required under paragraph 12(d), and

    • (vi) the location in Canada where the primary supplier will keep the records.

• (2.1) The notice shall be submitted to the Minister

  • (a) in the case where the primary supplier is, for the first time, producing or importing gasoline, no later than 60 days before the first day on which the gasoline is produced or imported; and

  • (b) in any other case, no later than November 1 of the year before the first year in respect of which the calculation will be made on the basis of a pool average.

• (2.2) Despite subsection (2.1), if the year in respect of which the calculation will be made on the basis of a pool average is the year 2020, the notice shall be submitted to the Minister no later than 30 days after the day on which this subsection comes into force.

• (3) At least 45 days before the day on which any change that affects information referred to in subsection (2) is implemented, the primary supplier shall submit a notice containing the updated information to the Minister.

• (4) A primary supplier may withdraw an election made under subsection (1) by submitting to the Minister a notice to that effect at least 60 days before the end of the last year to which the election applies.

• (5) [Repealed, SOR/2020-277, s. 4]

Calculation of Pool Average

• 10 (1) Subject to subsections (2) to (6), a primary supplier shall, for each pool in respect of which they make an election under section 9, calculate the pool average of all gasoline in the pool that was identified as low-sulphur gasoline under section 5.

• (2) In calculating a pool average, a primary supplier shall exclude all batches of low-sulphur gasoline that were exported by the primary supplier or an affiliate of the primary supplier.

• (3) If a primary supplier imports and delivers a batch of low-sulphur gasoline to a refinery or a blending facility, the primary supplier may include that batch in the pool average for the refinery or blending facility if the batch is excluded from the pool average for gasoline that is imported.

• (4) If a primary supplier dispatches from a refinery and delivers, or imports and delivers, gasoline-like blendstock to a blending facility where it is blended to produce a batch of low-sulphur gasoline, the primary supplier may include the volume of that gasoline-like blendstock and its concentration of sulphur in the pool average for the refinery or for gasoline that is imported, if

  • (a) the primary supplier owns the gasoline-like blendstock;

  • (b) the gasoline-like blendstock is, prior to being blended, segregated from all other batches of gasoline stored at the blending facility; and

  • (c) the batch of low-sulphur gasoline is excluded from the pool average for that blending facility.

• (5) If a primary supplier dispatches from a refinery and delivers, or imports and delivers, gasoline-like blendstock to a blending facility where it is blended with low-sulphur gasoline to produce a batch of low-sulphur gasoline, the primary supplier shall include the volume of that gasoline-like blendstock and its concentration of sulphur in the pool average for the refinery or for gasoline that is imported.

• (6) If a primary supplier dispatches from a refinery and delivers, or imports and delivers, a batch of low-sulphur gasoline to a facility where sulphur-limited oxygenate or sulphur-limited butane is added to the batch, the primary supplier may, if they own the batch, adjust the recorded concentration of sulphur of the batch to reflect the addition of the oxygenate or butane and may use the adjusted recorded concentration of the batch, instead of its measured concentration, to calculate the pool average for the refinery or for gasoline that is imported.

• (7) For the purpose of subsection (6), if the sulphur-limited oxygenate that is added to the batch is denatured fuel ethanol, the primary supplier may, in adjusting the recorded concentration of the batch, assume that the sulphur concentration of the oxygenate is 5 mg/kg.

11 [Repealed, SOR/2015-187, s. 10]

Record of Composition

12 A primary supplier who makes an election in respect of a pool under section 9 shall, for each batch of gasoline in the pool, keep a record in Canada, for a period of five years after the day on which the record is made, that sets out the following information:

• (a) a unique identification number that links the batch to any sample taken;

• (b) the date or dates on which the primary supplier dispatched or imported the batch;

• (c) the concentration of sulphur, the volume and the grade of the batch; and

• (d) if its concentration of sulphur is adjusted in accordance with subsection 10(6), its adjusted concentration of sulphur together with the sulphur concentration and volume of the sulphur-limited oxygenate or sulphur-limited butane that was added to the batch.

Temporary Sulphur Compliance Unit Trading System

Election

• 13 (1) A primary supplier who makes an election under section 9 may, in respect of the pool to which that election applies, elect to participate in the temporary sulphur compliance unit trading system by submitting to the Minister a notice of the election to participate in accordance with subsection (2).

• (2) The notice shall identify the pool to which the election applies and be submitted to the Minister

  • (a) within 30 days after the day on which this section comes into force; or

  • (b) if the election under section 9 is made after the day on which this section comes into force and the primary supplier is, for the first time, producing or importing gasoline, no later than 60 days before the first day on which the gasoline is produced or imported.

Creating Sulphur Compliance Units

• 14 (1) A primary supplier who is participating in the trading system may, in respect of the pool to which the election applies, create a number of sulphur compliance units, for a year, that is equal to the amount determined in accordance with the following formula:

  (A – B) × C

  where

  A

  is 10 mg/kg;

  B

  is the pool average of that pool for the year, in mg/kg; and

  C

  is the volume of low-sulphur gasoline that was used to calculate the pool average, in m³.

• (2) If a primary supplier makes an election under subsection 13(1) in respect of a pool for which they made an election under subsections 13(1) or (3) as it read immediately before the day on which this subsection comes into force, the primary supplier may, in respect of that pool, create for the year 2020 a number of sulphur compliance units that is less than or equal to the balance of the sulphur compliance units reported for that pool for the year 2019 under paragraph 5(e) of Schedule 2.

• (3) [Repealed, SOR/2020-277, s. 6]

• (4) If the number determined in accordance with the formula is not a whole number, it shall be rounded down to the nearest whole number.

• (5) A sulphur compliance unit is created when the primary supplier makes an entry of its creation in the sulphur compliance unit account book maintained by the primary supplier in accordance with section 18. The entry shall be made no later than February 15 of the year after the year for which the units are being created.