Proposal
Reducing sulphur dioxide emissions from Ontario's petroleum facilities
Regulation Number(s):
TBD
Instrument Type:
Proposal
Bill or Act:
Environmental Protection Act
Summary of Decision:
The new sector specific regulation will apply to the existing five petroleum facilities in Ontario:
• Imperial Oil (Sarnia, Nanticoke)
• Shell (Sarnia)
• Suncor (Sarnia)
• Petro-Canada Lubricants (Mississauga)
The new regulation, together with amendments to O. Reg. 530/18 (Air Pollution - Discharge of Sulphur Dioxide from Petroleum Facilities), requires a reduction in sulphur dioxide emissions by the phasing in of the following requirements:
• Deployment of sulphur dioxide-reducing additives on any Fluidized Catalytic Cracking Units within two months of the regulation applying until the relevant emission limits phase in;
• Establishing emission limits. Some emission limits will begin to apply immediately after December 31, 2026 and all limits will be in effect immediately after December 31, 2028. These would apply to emissions from a piece of equipment and/or facility-wide caps over a specified period (e.g., rolling 365-day average). Specific emission limits would apply to:
-Fluidized Catalytic Cracking Unit (FCCU), Fluid Coking Unit (FCU), and Houdry Catalytic Cracking Unit (HCCU),
-Sulphur Recovery Unit (SRU),
-Combustion devices, and
-Flares
• Prohibition on the use of solid fuels in combustion devices at affected facilities immediately on filing of the new regulation;
• Restrict the use of fuel oil such as refinery fuel oil in combustion devices to certain circumstances
As noted in the proposal, facilities will be required to implement management practices that will help us:
• better understand the source of emissions
• determine the cause of peak sulphur dioxide concentrations
• identify appropriate corrective and preventive actions
• Imperial Oil (Sarnia, Nanticoke)
• Shell (Sarnia)
• Suncor (Sarnia)
• Petro-Canada Lubricants (Mississauga)
The new regulation, together with amendments to O. Reg. 530/18 (Air Pollution - Discharge of Sulphur Dioxide from Petroleum Facilities), requires a reduction in sulphur dioxide emissions by the phasing in of the following requirements:
• Deployment of sulphur dioxide-reducing additives on any Fluidized Catalytic Cracking Units within two months of the regulation applying until the relevant emission limits phase in;
• Establishing emission limits. Some emission limits will begin to apply immediately after December 31, 2026 and all limits will be in effect immediately after December 31, 2028. These would apply to emissions from a piece of equipment and/or facility-wide caps over a specified period (e.g., rolling 365-day average). Specific emission limits would apply to:
-Fluidized Catalytic Cracking Unit (FCCU), Fluid Coking Unit (FCU), and Houdry Catalytic Cracking Unit (HCCU),
-Sulphur Recovery Unit (SRU),
-Combustion devices, and
-Flares
• Prohibition on the use of solid fuels in combustion devices at affected facilities immediately on filing of the new regulation;
• Restrict the use of fuel oil such as refinery fuel oil in combustion devices to certain circumstances
As noted in the proposal, facilities will be required to implement management practices that will help us:
• better understand the source of emissions
• determine the cause of peak sulphur dioxide concentrations
• identify appropriate corrective and preventive actions
Analysis of Regulatory Impact:
Over a ten-year period (2022-2031), the new regulation is expected to result in a positive net benefit for Ontarians. The net benefits are the quantified health benefits less the estimated costs for affected facilities to reduce their sulphur dioxide emissions.
Benefits:
The health benefits are due to:
• reduced exposure to sulphur dioxide
• the co-benefits of reduced exposure to secondary fine particulate matter (PM2.5)
The health benefits include reduced:
• premature mortality
• asthma levels
• emergency room visits
• hospitalizations
• doctor's office visits
• restricted activity and asthma days
Health benefits are expected to occur across much of the province and would be more pronounced in southwestern Ontario where facilities are located as well as the Greater Toronto Area.
In addition, other benefits for those living in communities where the facilities are located are anticipated, which have not been quantified. They include:
• less anticipated odour and other complaints
• greater trust and confidence in government and industry action, and
• greater transparency from new public reporting requirements
Costs:
Facilities are expected to incur new compliance and administrative costs to meet the requirements of the regulation.
The main costs are capital costs and operating costs over the period to reduce emissions; these costs have been annualized. Additional costs could include those associated with monitoring, assessments and plans, and reporting and record keeping.
Benefits:
The health benefits are due to:
• reduced exposure to sulphur dioxide
• the co-benefits of reduced exposure to secondary fine particulate matter (PM2.5)
The health benefits include reduced:
• premature mortality
• asthma levels
• emergency room visits
• hospitalizations
• doctor's office visits
• restricted activity and asthma days
Health benefits are expected to occur across much of the province and would be more pronounced in southwestern Ontario where facilities are located as well as the Greater Toronto Area.
In addition, other benefits for those living in communities where the facilities are located are anticipated, which have not been quantified. They include:
• less anticipated odour and other complaints
• greater trust and confidence in government and industry action, and
• greater transparency from new public reporting requirements
Costs:
Facilities are expected to incur new compliance and administrative costs to meet the requirements of the regulation.
The main costs are capital costs and operating costs over the period to reduce emissions; these costs have been annualized. Additional costs could include those associated with monitoring, assessments and plans, and reporting and record keeping.
Further Information:
Link to Environmental Registry
O. Reg. 88/22: AIR POLLUTION - DISCHARGE OF SULPHUR DIOXIDE FROM PETROLEUM FACILITIES
O. Reg. 89/22: AIR POLLUTION - DISCHARGE OF SULPHUR DIOXIDE FROM PETROLEUM FACILITIES (ontario.ca)
O. Reg. 90/22: AIR POLLUTION - LOCAL AIR QUALITY
O. Reg. 91/22: ENVIRONMENTAL PENALTIES
O. Reg. 88/22: AIR POLLUTION - DISCHARGE OF SULPHUR DIOXIDE FROM PETROLEUM FACILITIES
O. Reg. 89/22: AIR POLLUTION - DISCHARGE OF SULPHUR DIOXIDE FROM PETROLEUM FACILITIES (ontario.ca)
O. Reg. 90/22: AIR POLLUTION - LOCAL AIR QUALITY
O. Reg. 91/22: ENVIRONMENTAL PENALTIES
Proposal Number:
21-MECP037
Posting Date:
November 11, 2021
Summary of Proposal:
The Government of Ontario is taking more ambitious action to improve Ontario's air quality and creating strong and effective standards for cleaner air that protects human health and the environment.
As part of this commitment, the ministry is working to regulate air contaminants released by certain industrial facilities. In particular, the Ministry is proposing to reduce sulphur dioxide (SO2) emissions from petroleum facilities.
Petroleum facilities in southern Ontario are a significant source of sulphur dioxide air emissions, particularly in Sarnia, where three of the province's five major petroleum facilities are located.
Although the sector has made improvements to reduce emissions from their facilities, sulphur dioxide emission events and elevated ambient concentrations of the substance continue to be a concern in some communities where these facilities are located.
To help address these issues, the ministry is consulting on a new regulation that would reduce emissions of sulphur dioxide from petroleum facilities in Ontario. This proposed regulation would:
• Over a defined time period, reduce SO2 emissions by approximately 90%;
• Require implementation of certain management practices;
• Maintain requirements for flaring events;
• Provide facilities with regulatory certainty;
• Require an immediate emissions reduction of up to 30% from heavy emitters; and,
• Authorize the use of additional environmental penalties.
More details on the proposed regulation are provided in the Plain Language Overview that accompanies this notice, along with questions for public input.
The Government of Ontario invites feedback from the public, municipalities, First Nations, environmental groups, and industry on the proposed regulation in pursuit of cleaner air for all who live in Ontario.
As part of this commitment, the ministry is working to regulate air contaminants released by certain industrial facilities. In particular, the Ministry is proposing to reduce sulphur dioxide (SO2) emissions from petroleum facilities.
Petroleum facilities in southern Ontario are a significant source of sulphur dioxide air emissions, particularly in Sarnia, where three of the province's five major petroleum facilities are located.
Although the sector has made improvements to reduce emissions from their facilities, sulphur dioxide emission events and elevated ambient concentrations of the substance continue to be a concern in some communities where these facilities are located.
To help address these issues, the ministry is consulting on a new regulation that would reduce emissions of sulphur dioxide from petroleum facilities in Ontario. This proposed regulation would:
• Over a defined time period, reduce SO2 emissions by approximately 90%;
• Require implementation of certain management practices;
• Maintain requirements for flaring events;
• Provide facilities with regulatory certainty;
• Require an immediate emissions reduction of up to 30% from heavy emitters; and,
• Authorize the use of additional environmental penalties.
More details on the proposed regulation are provided in the Plain Language Overview that accompanies this notice, along with questions for public input.
The Government of Ontario invites feedback from the public, municipalities, First Nations, environmental groups, and industry on the proposed regulation in pursuit of cleaner air for all who live in Ontario.
Contact Address:
Effective Date:
February 25, 2022
Decision:
Approved