This consultation was open from:
June 14, 2024
to July 14, 2024
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.
Decision details
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.
Effects of consultation
MECP Response to comments received:
- Request to remove requirement under s. 5(1) of the regulation to use accredited lab services when testing gasoline vapour pressure.
The requirement to use an accredited laboratory under s. 5(1) has been retained. Although this proposed approach is taken in some other jurisdictions, it is not consistent with Ontario’s typical approach for testing requirements such as these, which is to require they be carried out by a certified lab.
- Remove test method ASTM D323 from section 6 as it is not accepted under the Canadian General Standards Board rules.
Section 6 of the regulation sets out several approved methods by which the vapour pressure of a batch of gasoline can be verified. These methods have been established by ASTM International, which is an industry recognized standards organization, ASTM D323 is one such method and is a current ASTM-approved method of determining gasoline vapour pressure. It has been an accepted method under the regulation for many years without raising concerns about its use. Ontario wishes to provide for a range of options for determining vapour pressure and there does not appear to be any benefit to removing it.
- Remove restrictions on winter-grade gasoline that is transferred from a refinery to a large terminal in Ontario.
The amended regulation allows refineries to transfer gasoline to fuel distribution facilities prior to the switchover date. However, it does not allow them to transfer it further through the chain for retail sale until after the existing switchover date.
- With respect to acceptable testing methods set out in s.6 of the regulation, expand to include all methods approved for use under applicable CGSB rules.
The regulation now lists all acceptable testing methods accepted by the CGSB.
- These changes will make it easier for fossil fuels to come into Ontario when the province should be seeking out alternative fuel sources.
Our analysis shows that this change is unlikely to result in more fossil fuels being consumed. Rather it will likely decrease greenhouse gas emissions from the boats that no longer need to idle in port.
Supporting materials
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135 St. Clair Avenue West
Floor 6
Toronto,
ON
M4V 1P5
Canada
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Contact
Priya Mathur
135 St. Clair Avenue West
Floor 6
Toronto,
ON
M4V 1P5
Canada
Original proposal
Proposal details
Ontario is proposing to ease restrictions on the offloading of winter-grade gasoline from ships before the winter switchover date. The province is also proposing clarifications about gasoline testing methods. No changes are proposed to the volatility limits for gasoline.
The proposed amendments will reduce burden on industry and ensure consistency with national standards, while maintaining protection of human health and the environment.
Proposed Changes
The proposed amendments to O. Reg. 271/91 – Gasoline Volatility are:
- Removing restriction on offloading marine imports to a dockside terminal
Currently, the restrictions on winter gasoline production, transfer and sale apply to places where gasoline is refined, imported, and blended at large storage and terminal stations. Winter gasoline arriving by boat before the switchover date cannot be offloaded to a storage terminal at the dock as it is considered “importing.”
We are proposing to impose the restriction at dockside marine terminals rather than the boat itself. This would allow boats to offload the gasoline, while still maintaining the restrictions on producing, transferring and selling winter gasoline across Ontario prior to the switchover date.
- Allowing for the importing of winter-grade gasoline in the two weeks leading up to the winter switchover date.
This change would work with the change described above to make it clear that offloading from marine vessels is permitted.
- Testing Methodology clarifications
The Gasoline Volatility Regulation currently identifies the following accepted American Society for Testing and Materials (ASTM) testing methodologies for determining vapour pressure in accordance with the regulation:
- ASTM D323 (Standard Test Method for Vapor Pressure of Petroleum Products)
- ASTM D4814 (Standard Specification for Automotive Spark-Ignition Engine Fuel)
- ASTM D5191 (Standard Test Method for Vapor Pressure of Petroleum Products and Liquid Fuels (Mini Method))
ASTM D4814 in turn directs users to follow one of four other methods, depending on specific circumstances, namely:
- ASTM D4953 (Standard Test Method for Vapor Pressure of Gasoline and Gasoline-Oxygenate Blends (Dry Method)
- ASTM D5191 (Standard Test Method for Vapor Pressure of Petroleum Products and Liquid Fuels (Mini Method)
- ASTM D5482 (Standard Test Method for Vapor Pressure of Petroleum Products and Liquid Fuels (Mini Method—Atmospheric)
- ASTM D6378 (Standard Test Method for Determination of Vapor Pressure (VPX) of Petroleum Products, Hydrocarbons, and Hydrocarbon-Oxygenate Mixtures (Triple Expansion Method)
To improve clarity and better align the regulation with the Canadian General Standards Board requirements, the regulation will be amended to explicitly list all four of the methods referenced within ASTM D4814 along with the other methods already included.
Background
Under O. Reg. 271/91 – Gasoline Volatility, during the prescribed summer months, petroleum facilities must switch production and sale to summer-grade gasoline. This has a lower volatility (produces less vapours) than winter-grade gasoline. Reducing volatility limits help curb emissions that contribute to the formation of air pollution during summer months, impacting the health of Ontarians.
Some companies arrange for delivery of winter-grade gasoline imports in the weeks leading up to the winter-grade gasoline switchover date. This allows them to have the winter-gasoline arrive as close to the switchover date as possible. Due to various uncertainties associated with marine shipping, ships can arrive anywhere from 5 - 7 days before a target date.
Under the current provisions, if a shipment arrives early, companies cannot offload the winter gasoline to storage facilities as this would be considered “importing,” which is prohibited. Ships must sit idle in port until they can offload their shipment on the switchover date. This results in burning fuel and greenhouse gas emissions.
The ministry is proposing to amend the regulation to allow for the importing of winter-grade gasoline in the two weeks leading up to the switchover date. Companies would still be prohibited from selling or distributing the winter-grade gasoline before the switchover date.
In addition, stakeholders have raised a point of possible confusion regarding acceptable vapour pressure measurement methods. The province is also proposing to resolve this confusion through this regulatory amendment. These changes are administrative, and do not substantially modify acceptable testing methods.
Regulatory impact statement
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.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
135 St. Clair Avenue West
Floor 6
Toronto,
ON
M4V 1P5
Canada
Comment
Commenting is now closed.
This consultation was open from June 14, 2024
to July 14, 2024
Connect with us
Contact
Priya Mathur
135 St. Clair Avenue West
Floor 6
Toronto,
ON
M4V 1P5
Canada
Comments received
Through the registry
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