This consultation was open from:
December 24, 2021
to February 7, 2022
Decision summary
Ontario is reducing unnecessary administrative burden on the petroleum industry by simplifying reporting requirements under the Gasoline Volatility regulation. These changes include aligning reporting requirements with national timelines for switching from winter-grade gasoline to summer-grade gasoline.
Decision details
As of November 25, 2022 amendments to Ontario Regulation 271/91 - Gasoline Volatility took effect to align Ontario’s reporting requirements with:
- national standards set by the Canadian General Standards Board (CGSB)
- approaches taken in other jurisdictions
The amendments will:
- simplify the regulation and reduce regulatory and administrative burden
- ensure consistency with national standards
- continue to maintain the protection of human health and the environment
Amendments to the Gasoline Volatility regulation
The amendments to Ontario Regulation 271/91 – Gasoline Volatility are as follows:
- Simplify and streamline reporting for companies while retaining company accountability to meet the O. Reg. 271/91 standards.
Facilities will continue to test gasoline volatility levels for each of the four periods required under the regulation. However, instead of preparing and submitting four separate reports to the ministry, regulated facilities are now required to prepare only one report for the four reporting periods by September 30 each year. The report must be kept on site for five years. During this period, reports must be provided to the ministry upon request.
- Harmonization with CGSB for summer volatility start and end dates.
We have amended the current testing period of May 15 – September 14 each year to May 16 – September 15 each year. This aligns the testing period for motor gasoline with the CGSB requirements.
Aligning the transition dates with the national standard further streamlines reporting and minimize compliance risks for affected companies.
- Clarify that the regulation does not apply to service stations or gasoline intended for export:
The applicability of this regulation to service stations was not clear before the amendment was made. The amendment provides clarity to the regulated community and aligns Ontario's regulation with the CGSB and other Canadian jurisdictions, which do not require service stations to test and/or report.
Service stations that import or refine gasoline are still required to report gasoline volatility under the regulation.
Volatility requirements do not apply to motor gasoline that is expected to be transported for use or sale outside of Ontario. The gasoline volatility requirements do not apply to gasoline that is shipped to outside jurisdictions.
- Updating the methodologies for testing and for calculating compliance with the vapour pressure limit.
Prior to amendment, the regulation listed outdated and, in some cases, obsolete, procedures for testing and for calculation of absolute limits. The new amendment updates the section to reference current widely accepted testing procedures. This change provides clarity for all subsequent testing methodologies.
Regulatory impact statement
Due to reduced reporting requirements, the amendments are expected to result in limited cost reduction for the petroleum refineries and petroleum importers that currently report to the ministry.
Over a ten-year period (2023-2032), the amendments are expected to result in limited cost reductions for these regulated companies of approximately $206,000 over a ten-year period from 2023 to 2032, or about $20,600 on an annualized basis, based on a 2.5% real discount rate.
The changes are not expected to affect air quality as the requirement to comply with vapour pressure limits has not changed.
Effects of consultation
On February 4, 2022, the Canadian Fuels Association submitted a comment regarding the proposed changes to the Gasoline Volatility regulation during the ERO proposal comment period. To briefly summarize the comment, the CFA has pointed out 4 aspects of the regulation of concern:
- Test methodologies: Outdated test methodologies in the regulation should be updated.
- Point of compliance: CFA recommends changing the point of compliance from refineries to distribution (primary) terminals.
- Testing and Reporting: Exemptions for imports under 25,000 litres or less under section 5(6) of the regulation were noted by the CFA with the recommendation to allow for exemptions of 50,000 litres or less during the summer period.
- Absolute Limits. CFA recommended aligning absolute limits in the regulation with the CGSB requirements.
Ministry response:
The ministry has incorporated the suggestions regarding updating the testing methodologies and aligning the rules regarding absolute limits with the CGSB.
The requests to change the point of compliance from refineries to distribution terminals and to modify the import exception rules do not align with the original policy intent of the regulation which is aimed at the wholesale gasoline supply and would be subject to further policy approval and require further public consultation. This change was not incorporated in the final amendment.
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
Connect with us
Contact
Priya Mathur
135 St. Clair Avenue West
Floor 6
Toronto,
ON
M4V 1P5
Canada
Original proposal
Proposal details
We are proposing amendments to Ontario Regulation 271/91 - Gasoline Volatility, to align Ontario’s reporting requirements with:
- national standards set by the Canadian General Standards Board (CGSB)
- approaches taken in other jurisdictions
The amendments would simplify the regulation and reduce regulatory and administrative burden as well as ensure consistency with national standards, while maintaining protection of human health and the environment.
The proposed amendments are as follows:
- Simplify and streamline reporting for companies while retaining company accountability to meet the O. Reg. 271/91 standards.
Facilities would continue to test gasoline volatility levels for each of the four periods required under the regulation. However, instead of preparing and submitting four separate reports to the ministry, regulated facilities would be required to prepare only one report for the four reporting periods by September 30th each year. The report would be kept on site for five years. During this period, reports must be provided upon request.
Facilities would still need to report on their testing as required by other provincial regulations or by federal requirements, such as the CGSB.
- Harmonization with CGSB for summer volatility start and end dates.
We are amending the testing period of May 15 – September 14 each year to May 16 – September 15 each year. This would align the testing period for motor gasoline with the CGSB requirements.
Aligning the transition dates with the national standard would further streamline reporting and minimize compliance risks for affected companies.
- Amend the regulation to clarify its applicability:
- Service stations are exempt from the “mixing” or “adding to” requirements of the regulation.
The applicability of this regulation to service stations is not clear. The change would provide clarity to the regulated community and align Ontario's regulation with the CGSB and other Canadian jurisdictions, which do not require service stations to test and/or report.
Service stations that import or refine gasoline would still be required to report gasoline volatility under the regulation.
- Volatility requirements do not apply to motor gasoline that is expected to be transported for use or sale outside of Ontario.
The gasoline volatility requirements would not apply to gasoline that is shipped to outside jurisdictions.
- Service stations are exempt from the “mixing” or “adding to” requirements of the regulation.
Regulatory impact statement
Due to reduced reporting requirements, the proposal would result in limited cost reduction for the petroleum refineries and petroleum importers that currently report to the ministry.
A preliminary estimate of the cost reduction for the regulated companies is approximately $187,000 for the ten-year period from 2022 to 2031, or about $18,700 on an annualized basis, using a 2.5% real discount rate. This estimate may change with any additional information received as a result of this consultation.
The proposed changes are not expected to affect air quality.
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.
Comment
Commenting is now closed.
This consultation was open from December 24, 2021
to February 7, 2022
Connect with us
Contact
Priya Mathur
135 St. Clair Avenue West
Floor 6
Toronto,
ON
M4V 1P5
Canada
Comments received
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