Sulphur in Diesel Fuel Regulations: consultations on potential amendments

Official title: Consultations on potential amendments to Sulphur in Diesel Fuel Regulations - Compendium of stakeholder comments

Fuels Section
Oil, Gas and Energy Division
Environment Canada

January 2006

Compendium of stakeholders comments

This document presents a compendium of submissions received in response to Environment Canada's discussion paper entitled "Consultations on potential amendments to Sulphur in Diesel Fuel Regulations".

(The following material originates with an organization not subject to the Official Languages Act and is available in the language in which it was written.)

(PDF 1.33 Mb)

Transportation Industry

Ministère des Ressources naturelles et de la Faune du Québec

Ministère des Ressources naturelles et de la Faune
Direction du développement des hydrocarbures
5700 4e Avenue Ouest A-401
Charlesbourg QC G1H 6R1
Téléphone : 418-627-6385
Télécopieur : 418-528-0690
Courrier électronique : hydrocarbures@mrnf.gouv.qc.ca

Le 31 octobre 2005

Monsieur Jeffrey Guthrie
Direction du pétrole, du gaz et de l'énergie
Environnement Canada
351 boulevard Saint-Joseph 20e étage
Gatineau (Québec) K1A 0H3

Objet: Consultations d'Environnement Canada sur des modifications éventuelles au Règlement sur le soufre dans le carburant diesel

Monsieur Guthrie,

Le Ministère des Ressources naturelles et de la Faune du Québec (MRNF) est favorable à la souplesse dont Environnement Canada entend faire preuve dans l'application de la norme de teneur en soufre du carburant diesel, en autorisant une limite maximale de 22 mg/kg pour le produit vendu entre le 1er septembre 2006 et le 15 octobre 2006, afin de faciliter l'introduction du nouveau carburant diesel a très basse teneur en soufre dans les réseaux de distribution. Cette approche s'alignerait avec le changement déjà annoncé par Environmental Protection Agency (EPA) des États-Unis.

Le MRNF a toujours appuyé le principe de l'alignement des normes affectant l'industrie pétrolière d'ici, et les produits pétroliers, sur celles en vigueur aux États-Unis puisque nos industries pétrolières fonctionnent dans un marché continental et même international. Ainsi, la compétitivité des pétrolières québécoises par rapport à celle des industries des États-Unis est mieux assurée.

La souplesse envisagée permettrait l'harmonisation entre les conditions imposées au Canada pour la production et la consommation des carburants par rapport a celles des États-Unis. Elle faciliterait l'approvisionnement en carburant diesel à très basse teneur en soufre et son commerce. Elle contribuerait à éviter les perturbations sérieuses en ces domaines tout en ayant un effet marginal sur le niveau des émissions de soufre. Le MRNF est donc d'accord avec la démarche envisagée par Environnement Canada et l'appuiera, le cas échéant.

Je vous prie d'agréer, Monsieur Guthrie, l'expression de mes sentiments les meilleurs.

Le directeur,

Consumers' Co-operative Refineries Limited

Consumers' Co-operative Refineries Limited
9th Avenue North
P.O. Box 260
Regina SK  S4P 3A1
Telephone: 306-721-5353
Fax: 306-721-5348

September 20, 2005

Jeffrey Guthrie
Oil, Gas & Energy Branch
Environment Canada
20th Floor 351 St. Joseph Boulevard
Gatineau QC  K1A 0H3

Re: Aligning Canada's On-Road Low Sulphur Diesel Regulations with Changes Announced by the US EPA

I am writing to you to acknowledge that Consumers' Co-operative Refineries Limited (CCRL) is in agreement with proposed Canadian Petroleum Products Institute (CPPI)'s amendments to Canada's Sulphur in Diesel Regulations such that Canada's Regulations align with those announced by the US Environmental Protection Agency (EPA) on May 27, 2005.

Our understanding of the US situation is that:

  1. Starting June 1, 2006, all on-road diesel must not exceed 15 mg/kg sulphur (S) at the point of production (i.e., at the refinery gate) or importation.
  2. Downstream of the refinery and up to September 1, 2006, all on-road diesel sold must be less than 500 mg/kg S. Between September 1, 2006 and October 15, 2006, all on-road diesel sold must be less than 22 mg/kg.
  3. After October 15, 2006, all on-road diesel must be less than 15mg/kg S.

Canada's Regulations has the final 15 mg/kg S limit in effect on September 1, 2006 where the US requirement is at 22 mg/kg S (from September 1, 2006 until October 15, 2006). This difference needs to be nullified if there is to be a level playing field between Canada and the USA.

I thank you for the opportunity to comment on this matter.

Senior Vice-President - Refining

Home Office
P.O. Box 1050
Saskatoon, Sask., Canada
S7K 3M9

Irving Oil Limited

Irving Oil Limited
P.O. Box 1260
Saint John NB
E2L 4H6

September 2, 2005

Mr. Jeffrey Guthrie
Oil, Gas & Energy Branch
Environment Canada
20th floor 351 Saint-Joseph Boulevard
Gatineau QC
K1A 0H3

Re: Consultations on potential amendments to the Sulphur in Diesel Fuel Regulations

Irving Oil Limited has reviewed the proposed potential amendments to the Sulphur in Diesel Fuel Regulations that would add minor flexibility to facilitate the 2006 introduction of lower sulphur diesel fuel for on-road use by allowing a slightly higher limit of 22 mg/kg from September 1, 2006 to October 15, 2006 when the 15 mg/kg limit would apply.

Irving Oil Limited supports the proposed amendments to the Sulphur in Diesel Fuel Regulations solely on the basis that it would align the implementation of the sulphur specification for on-road diesel with those outlined by the United States Environmental Protection Agency. Absent the harmonization objective, Irving Oil Limited does not favour changes to existing regulatory timeline requirements, as significant capital investment must be expended in order to meet such regulatory requirements.

Regards,

Refinery Environment Manager
Irving Oil Limited

Suncor Energy

Suncor Energy Products Inc.
36 York Mills Road
North York ON  M2P 2C5
Tel: 416-733-7000
www.suncor.com

2005 September 13

Mr. Jeffrey Guthrie
Oil, Gas & Energy Branch
Environment Canada
20th floor 351 Saint-Joseph Boulevard
Gatineau QC
K1A OH3

Dear Mr. Guthrie,

Suncor Energy Products Inc. (SEPI) supports the CPPI's 2005 July 12 proposal to modify the "on-road" portion of the Sulphur in Diesel Fuel Regulations in order to maintain alignment with rule modifications proposed by the US EPA.

With respect to on-road diesel fuels, this proposal would not impact the 15 mg/kg S (maximum) limit at points of manufacture and import that becomes effective 2006 June 1. However, it would briefly change the point of sale limit from 15 to 22 mg/kg S from 2006 September 1 to October 15 (after which date, this limit would become 15 mg/kg S).

SEPI believes that allowing a temporary point of sale limit of 22 mg/kg S during the last 45 days of the "transition period" from 500 mg/kg S to 15mg/kg S on-road diesel fuel will:

  • promote a more competitive diesel fuel marketing environment between Canada and the USA,
  • ensure availability of alternative on-road diesel fuel supply from the USA (during this 45 day period), and
  • support successful conversion to the to the 15 mg/kg S on-road diesel fuel limit throughout the farthest reaches of the Canadian diesel fuel distribution system, i.e. at secondary and tertiary bulk-plants.

CPPI's proposed modification to the Sulphur in Diesel Fuels Regulations, evenly applied to all diesel fuel marketers, will support the introduction of diesel fuels that enable the engine tailpipe emissions standards that come into effect with the 2007 model year heavy duty on-road diesel engines.

Sincerely,

Suncor Energy Products Inc.
Director, Distribution Operations and National Sales

Canadian Vehicle Manufacturers' Association

Canadian Vehicle Manufacturers' Association
170 Attwell Drive
Suite 400
Toronto ON
M9W 5Z5
Tel: 416-364-9333 / 1-800-758-7122
Fax: 416-367-3221
info@cvma.ca
www.cvma.ca

September 16 2005

Mr. Jeffrey Guthrie
Environment Canada
Oil, Gas and Energy Branch
20th floor 351 Saint-Joseph Boulevard
Gatineau QC K1A 0H3

Dear Mr. Guthrie:

Subject: Potential amendments to the Sulphur in Diesel Fuel Regulations

The Canadian Vehicle Manufacturers' Association (CVMA) appreciates the opportunity to comment on the potential amendments to the Sulphur in Diesel Fuel Regulations that proposes to add minor flexibility to facilitate the 2006 introduction of lower sulphur diesel fuel for on-road use. We have reviewed the material and offer the following comments.

Lower vehicle emissions capability is enabled by the proper fuels as vehicle emission control systems and fuels are an integrated system. Without the fuel, the emissions performance benefit is not possible and will not be realized.

CVMA is disappointed in the proposed delay and strongly believes that there cannot be further delays to the introduction of 15 ppm diesel for the clean diesel vehicle technologies that are entering the marketplace.

Also, the refinery timing of June 1, 2006 should not be delayed. We understand that the proposed delay should not impact this timing but add only a 45-day delay to the delivery system for the 15 ppm sulphur diesel fuel for on-road use.

We trust that our comments will be given serious consideration. Please contact me should you have any questions at 416-364-9333.

Yours sincerely,

Vice-President, Environment, Health and Safety

Canadian Trucking Alliance

Canadian Trucking Alliance
Alliance Canadienne du Camionage
555 Dixon Road
Toronto, ON Canada  M9W 1H8
Tel: 416-249-7401 Fax: 416-245-6152

130 Slater Street, Suite 1025
Ottawa, ON Canada  K1P 6E2
Tel: 613-236-9426 Fax: 613-563-2701

Sent by Email: Jeffrey.Guthrie@ec.gc.ca

September 14, 2005

Mr. Jeffrey Guthrie
Oil, Gas & Energy Branch
Environment Canada
20th floor 351 Saint-Joseph Boulevard
Gatineau QC
K1A 0H3

Dear Mr. Guthrie:

Re: Consultations on potential amendments to Sulphur in Diesel Fuel Regulations

The Canadian Trucking Alliance (CTA) is responding to Environment Canada's request for comments regarding proposed amendments to the Sulphur in Diesel Fuel Regulations put forward by the Canadian Petroleum Products Institute (CPPI). As outlined in the Environment Canada document CPPI is requesting the following two amendments in order to harmonize the Canadian regulation with recent changes proposed by the U.S. EPA:

  1. Shift the retail compliance date for meeting the lower sulphur standard by 45 days (from September 1 to October 15, 2006).
  2. Allow on-road diesel fuel with a sulphur level of up to 22 ppm to be marketed until October 15, 2006.

CTA recognizes the need to ensure truck engine and fuel regulations remain harmonized as much as possible with US EPA standards. As such should the EPA implement these above amendments CTA has no objection to the proposed amendments put foreword by CPPI. However, CTA does believe CPPI and Environment Canada must begin working with the Alliance in examining and resolving two issues associated with the introduction of ultra-low sulphur diesel (ULSD): (1) pre-October 15, 2006 availability of ULSD and (2) lubricity issues associated with ULSD.

In a September 2005 meeting with the Class 8 engine manufacturers, CTA was informed that the current lack of availability of ULSD in the Canadian market is causing problems in the road testing of 2007 Class 8 proto-type models. As you are aware the 2007 model trucks can only run on ULSD. This road testing phase is of critical importance to the engine makers in collecting needed data on the emission and engine performance characteristics of the 2007 engines and the corresponding impacts of ULSD on their product. This road testing phase will allow the engine makers to address any concerns associated with ULSD, such as lubricity, with CPPI before the 2007 trucks hit the marketplace.

Regarding lubricity concerns associated with the introduction of ULSD, in a 2002 joint meeting with CPPI and Environment Canada, CPPI informed CTA that their sector would work with the trucking industry to ensure that lubricity problems experienced by the for-hire sector in 1995, due to the introduction of 500 ppm sulphur diesel fuels, would not be repeated in 2006. While CTA does not want to appear alarmist, the lack of ULSD in the 2005 marketplace is hampering the identification of potential issues that may impact the environmental and operational performance of Class 8 2007 model trucks. CTA does not want members facing increased maintenance and fuel efficiency costs associated with ULSD that could have been avoided if proper research and cooperation took place prior to 2007.

CTA requests that Environment Canada intervene in this matter to ensure that CPPI members begin making sufficient ULSD product available for testing on 2007 Class 8 proto-type trucks and that Environment Canada develop a mechanism to ensure that CPPI respond to the concerns highlighted by the engine manufacturers regarding the impact of various grades of ULSD on the operational and environmental performance of 2007 vehicles. CTA would also request assurances from Environment Canada that ULSD will be the exclusive fuel available in the Canadian market, excluding remote northern communities as outlined in the 2002 regulation, post October 15, 2006.

Sincerely,

Vice President, Economic Affairs

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