Act
Reducing Burden in the Transition from Summer to Winter Gasoline under O. Reg. 271/91
Regulation Number(s):
O. Reg. 271/91
Instrument Type:
Act
Bill or Act:
Environmental Protection Act, R.S.O. 1990
Summary of Proposal:
We have implemented regulatory changes to O. Reg 271/91 to make it easier for the petroleum industry to switch between summer and winter. These changes will streamline processes and reduce administrative burden, while still keeping people and the environment safe.
Transfer of Winter Gasoline
Each spring in Ontario, petroleum facilities are required to switch from winter-grade to summer-grade gasoline. This reduces air pollution in warmer weather. In the fall, these facilities can switch back to winter-grade gasoline. Current regulations prohibit the transfer of fuel from refineries or from vehicles delivering imported gasoline before the official switchover date. This restriction can be costly for the industry and, in the case of imports arriving by boat, can lead to excessive emissions from cargo ships waiting to be unloaded.
Under new changes, companies will be permitted to transfer winter-grade gasoline to a storage facility before the established switchover date. However, the broader distribution, including retail sales, of winter-grade gasoline will still be prohibited before the switchover date.
Specifically, we have changed the "points of compliance" under the regulation. "Points of compliance" refers to the location where the regulatory restrictions apply. "Points of compliance" have been changed from refineries and imports to bulk plants, terminals, and service stations that receive gasoline directly from refineries or importers.
This new approach aligns Ontario's points of compliance with those of the Canadian General Standards Board. These changes reduce unnecessary administrative burden while accommodating complex shipping and distribution timelines. For example, companies are now less likely to incur docking costs also known as 'demurrage fees'. Additionally, in the lead up to the switchover date, the current regulation causes logistical challenges for companies beginning preparations for their distribution chain.
Finally, the new changes are not expected to affect air quality in Ontario. The new regulation amendments are primarily administrative and do not alter the volatility limits for summer or the duration of the summer season dates. However, reduced idling in the ports is expected to decrease greenhouse gas emissions.
Testing Methods
To improve clarity and better align the regulation with the Canadian General Standards Board requirements, the regulation has been amended to explicitly list acceptable testing methods for gasoline volatility. This includes listing all four methods referenced within ASTM D4814 (which was previously approved for use under the regulation), as well as the other methods already included.
Theses changes are administrative, and do not substantially alter the acceptable testing methods. Additionally, they do not compromise the protection of human health and the environment.
Transfer of Winter Gasoline
Each spring in Ontario, petroleum facilities are required to switch from winter-grade to summer-grade gasoline. This reduces air pollution in warmer weather. In the fall, these facilities can switch back to winter-grade gasoline. Current regulations prohibit the transfer of fuel from refineries or from vehicles delivering imported gasoline before the official switchover date. This restriction can be costly for the industry and, in the case of imports arriving by boat, can lead to excessive emissions from cargo ships waiting to be unloaded.
Under new changes, companies will be permitted to transfer winter-grade gasoline to a storage facility before the established switchover date. However, the broader distribution, including retail sales, of winter-grade gasoline will still be prohibited before the switchover date.
Specifically, we have changed the "points of compliance" under the regulation. "Points of compliance" refers to the location where the regulatory restrictions apply. "Points of compliance" have been changed from refineries and imports to bulk plants, terminals, and service stations that receive gasoline directly from refineries or importers.
This new approach aligns Ontario's points of compliance with those of the Canadian General Standards Board. These changes reduce unnecessary administrative burden while accommodating complex shipping and distribution timelines. For example, companies are now less likely to incur docking costs also known as 'demurrage fees'. Additionally, in the lead up to the switchover date, the current regulation causes logistical challenges for companies beginning preparations for their distribution chain.
Finally, the new changes are not expected to affect air quality in Ontario. The new regulation amendments are primarily administrative and do not alter the volatility limits for summer or the duration of the summer season dates. However, reduced idling in the ports is expected to decrease greenhouse gas emissions.
Testing Methods
To improve clarity and better align the regulation with the Canadian General Standards Board requirements, the regulation has been amended to explicitly list acceptable testing methods for gasoline volatility. This includes listing all four methods referenced within ASTM D4814 (which was previously approved for use under the regulation), as well as the other methods already included.
Theses changes are administrative, and do not substantially alter the acceptable testing methods. Additionally, they do not compromise the protection of human health and the environment.
Analysis of Regulatory Impact:
The proposal will mostly impact companies in Ontario that deal with the importing, refining, distribution and retailing of gasoline and have storage terminals at marine ports like Hamilton, Oakville, Sault Ste Marie and Thunder Bay. It aims to cut down on the regulatory costs these companies face by simplifying the logistics needed to meet the regulatory requirements and reducing the time ships spend waiting at ports.
Over the span of ten-year period (2024-2033), the proposal is predicted to save regulated companies approximately $3.1 million or $0.3 million each year, considering a 2.5 percent real discount rate.
Moreover, because the proposal will free up space at these ports and lower shipping costs, regulated facilities might choose to increase their shipments or switch to marine transportation instead of more expensive options like rail and trucking (potentially saving up to about $2.5 million annually, with the same discount rate).
The proposal is not expected to impact air quality, and any changes in emissions (which would be from increased off-gassing due to potentially slightly warmer temperatures), if any, are likely to be very minor.
Over the span of ten-year period (2024-2033), the proposal is predicted to save regulated companies approximately $3.1 million or $0.3 million each year, considering a 2.5 percent real discount rate.
Moreover, because the proposal will free up space at these ports and lower shipping costs, regulated facilities might choose to increase their shipments or switch to marine transportation instead of more expensive options like rail and trucking (potentially saving up to about $2.5 million annually, with the same discount rate).
The proposal is not expected to impact air quality, and any changes in emissions (which would be from increased off-gassing due to potentially slightly warmer temperatures), if any, are likely to be very minor.
Further Information:
Proposal Number:
24-MECP008
Posting Date:
September 27, 2024
Comments Due Date:
July 14, 2024
Contact Address:
Air Policy
135 St. Clair Avenue West
Floor 6
Toronto, ON
M4V 1P5
Canada
135 St. Clair Avenue West
Floor 6
Toronto, ON
M4V 1P5
Canada
Proposal Status:
Decision Summary
Ontario has changed restrictions on the transfer and storage of winter-grade gasoline prior to the winter switchover date by amending O. Reg. 271/91 (Gasoline Volatility). We have also added clarifications about acceptable gasoline testing methods.
Ontario has changed restrictions on the transfer and storage of winter-grade gasoline prior to the winter switchover date by amending O. Reg. 271/91 (Gasoline Volatility). We have also added clarifications about acceptable gasoline testing methods.