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Sulphur in Gasoline Regulations (SOR/99-236)

Regulations are current to 2021-04-20 and last amended on 2020-12-16. Previous Versions

PART 2Requirements Pertaining to a Pool Average (continued)

Calculation of Pool Average

  •  (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.

  • SOR/2015-187, s. 9

 [Repealed, SOR/2015-187, s. 10]

Record of Composition

 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.

  • SOR/2003-319, s. 8
  • SOR/2015-187, s. 11

Temporary Sulphur Compliance Unit Trading System

Election

  •  (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.

  • SOR/2015-187, s. 12
  • SOR/2020-277, s. 5

Creating Sulphur Compliance Units

  •  (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.

  • SOR/2015-187, s. 12
  • SOR/2020-277, s. 6

Using Sulphur Compliance Units

  •  (1) A primary supplier who is participating in the trading system may use a sulphur compliance unit that they hold, in respect of a pool for which an election is made under section 13, to adjust the pool average of that pool for any of the years 2020 to 2025.

  • (2) The adjusted pool average for a year shall be determined in accordance with the following formula:

    ((X × Y) – Z)/Y

    where

    X
    is the pool average for the year, in mg/kg;
    Y
    is the volume of low-sulphur gasoline that was used to calculate the pool average, in m3; and
    Z
    is the number of sulphur compliance units that are being used for the year by the primary supplier.
  • (3) A sulphur compliance unit is used when the primary supplier makes an entry of its use 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 March 31 of the year after the year for which the unit is used.

  • SOR/2015-187, s. 12
  • SOR/2020-277, s. 7

Transfer of Sulphur Compliance Units

 A primary supplier who is participating in the trading system may transfer any sulphur compliance units that they hold between pools for which they have made elections under section 13 or to another primary supplier who is participating in the trading system. However, a sulphur compliance unit may only be transferred between primary suppliers once.

  • SOR/2015-187, s. 12

Ceasing Participation

  •  (1) A primary supplier may, in respect of a pool, cease to participate in the trading system by submitting to the Minister a notice to that effect no later than November 1 of the last year to which the election to participate applies.

  • (2) A primary supplier who withdraws their election under subsection 9(4) in respect of a pool ceases to participate in the trading system in respect of that pool as of the date of that withdrawal.

  • (3) If a primary supplier ceases to participate in the trading system in respect of a pool in accordance with this section, all sulphur compliance units that they hold in respect of that pool are cancelled.

  • SOR/2015-187, s. 12

Sulphur Compliance Unit Account Book

[
  • SOR/2020-277, s. 8(F)
]

 A primary supplier who is participating in the trading system shall, for each pool in respect of which they make an election under section 13, maintain a sulphur compliance unit account book that contains the following information:

  • (a) the composition of the pool for which the book is being maintained;

  • (b) for each year, the number of sulphur compliance units created, the date of their creation, the calculations performed under subsection 14(1) to determine the number of sulphur compliance units created and the values used to perform those calculations;

  • (c) for each year, the number of sulphur compliance units that are used to adjust the pool average and the dates on which they were used;

  • (d) for each year, the number of sulphur compliance units transferred or received by the primary supplier in relation to the pool, the date on which each transfer or receipt occurred, the name of the primary suppliers involved and the registration number of each refinery, blending facility or province of importation that corresponds to each pool involved in the transaction for which the primary supplier has made the election;

  • (e) the number of sulphur compliance units cancelled in relation to the pool, if any; and

  • (f) the balance of sulphur compliance units that the primary supplier holds in relation to the pool after each occasion on which a sulphur compliance unit is created, used, transferred, received or cancelled.

  • SOR/2015-187, s. 12
  • SOR/2020-277, s. 9(F)
 
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