Reducing Burden in the Transition from Summer to Winter Gasoline under O. Reg. 271/91

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:

1. 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.

2. 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.

3. 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:

1. ASTM D323 (Standard Test Method for Vapor Pressure of Petroleum Products)
2. ASTM D4814 (Standard Specification for Automotive Spark-Ignition Engine Fuel)
3. 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:

1. ASTM D4953 (Standard Test Method for Vapor Pressure of Gasoline and Gasoline-Oxygenate Blends (Dry Method)
2. ASTM D5191 (Standard Test Method for Vapor Pressure of Petroleum Products and Liquid Fuels (Mini Method)
3. ASTM D5482 (Standard Test Method for Vapor Pressure of Petroleum Products and Liquid Fuels (Mini Method—Atmospheric)
4. 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.