Sulphur in Gasoline Regulations (SOR/99-236)

Using Sulphur Compliance Units

• 15 (1) A primary supplier who is participating in the trading system may use a sulphur compliance unit that they hold, in respect of a pool for which an election is made under section 13, to adjust the pool average of that pool for any of the years 2020 to 2025.

• (2) The adjusted pool average for a year shall be determined in accordance with the following formula:

  ((X × Y) – Z)/Y

  where

  X

  is the pool average for the year, in mg/kg;

  Y

  is the volume of low-sulphur gasoline that was used to calculate the pool average, in m³; and

  Z

  is the number of sulphur compliance units that are being used for the year by the primary supplier.

• (3) A sulphur compliance unit is used when the primary supplier makes an entry of its use in the sulphur compliance unit account book maintained by the primary supplier in accordance with section 18. The entry shall be made no later than March 31 of the year after the year for which the unit is used.

Transfer of Sulphur Compliance Units

16 A primary supplier who is participating in the trading system may transfer any sulphur compliance units that they hold between pools for which they have made elections under section 13 or to another primary supplier who is participating in the trading system. However, a sulphur compliance unit may only be transferred between primary suppliers once.

Ceasing Participation

• 17 (1) A primary supplier may, in respect of a pool, cease to participate in the trading system by submitting to the Minister a notice to that effect no later than November 1 of the last year to which the election to participate applies.

• (2) A primary supplier who withdraws their election under subsection 9(4) in respect of a pool ceases to participate in the trading system in respect of that pool as of the date of that withdrawal.

• (3) If a primary supplier ceases to participate in the trading system in respect of a pool in accordance with this section, all sulphur compliance units that they hold in respect of that pool are cancelled.

Sulphur Compliance Unit Account Book

18 A primary supplier who is participating in the trading system shall, for each pool in respect of which they make an election under section 13, maintain a sulphur compliance unit account book that contains the following information:

• (a) the composition of the pool for which the book is being maintained;

• (b) for each year, the number of sulphur compliance units created, the date of their creation, the calculations performed under subsection 14(1) to determine the number of sulphur compliance units created and the values used to perform those calculations;

• (c) for each year, the number of sulphur compliance units that are used to adjust the pool average and the dates on which they were used;

• (d) for each year, the number of sulphur compliance units transferred or received by the primary supplier in relation to the pool, the date on which each transfer or receipt occurred, the name of the primary suppliers involved and the registration number of each refinery, blending facility or province of importation that corresponds to each pool involved in the transaction for which the primary supplier has made the election;

• (e) the number of sulphur compliance units cancelled in relation to the pool, if any; and

• (f) the balance of sulphur compliance units that the primary supplier holds in relation to the pool after each occasion on which a sulphur compliance unit is created, used, transferred, received or cancelled.

Records

19 A primary supplier who is participating in the trading system shall, for each of the years 2020 to 2025, maintain a record that contains the following information for each pool in respect of which they make an election under section 13:

• (a) the pool average;

• (b) the number of sulphur compliance units used to adjust the pool average; and

• (c) the adjusted pool average, if any.

20 A primary supplier who is participating in the trading system shall maintain a record that contains a copy of all supporting documents for the books and records referred to in sections 18 and 19.

Maintaining Books and Records

21 The primary supplier shall maintain the books and records referred to in sections 18 to 20 in Canada until December 31, 2031.

PART 3Reports and Notices

22 This Part does not apply to a primary supplier who, in total, produces and imports less than 400 m³ of gasoline on an annual basis.

• 23 (1) A report or notice that is required to be submitted to the Minister under these Regulations shall be submitted electronically in the form and format specified by the Minister and bear the electronic signature of an authorized official.

• (2) If the Minister has not specified an electronic form and format or if it is impractical to submit the report or notice electronically in accordance with subsection (1) because of circumstances beyond the control of the person sending the report, they shall submit it on paper, signed by an authorized official and in the form and format, if any, specified by the Minister. However, if no form and format have been specified, the report or notice may be in any form and format.

• 24 (1) For each year in which a primary supplier produces or imports gasoline identified under subsection 5(1) or (2) as gasoline-like blendstock or low-sulphur gasoline, the primary supplier shall, for each refinery and blending facility at which they produced that gasoline and for gasoline that is imported, submit to the Minister a report that contains the information referred to in Schedule 1. However, a report is not required in respect of gasoline that is imported if the primary supplier has included all batches imported in the pool average for a refinery or blending facility in accordance with subsection 10(3).

• (2) Every primary supplier shall submit to the Minister, as an annex to the report and for each batch of gasoline-like blendstock that was dispatched or imported during the period covered by the report, the information referred to in paragraphs 6(1)(a) to (e) and the actual volume of the batch dispatched or imported.

• (3) The report shall be submitted on or before February 15 of the year after the year for which it is submitted.

• (4) A record of analysis referred to in subsection 8(3) of the Benzene in Gasoline Regulations may be used for the purposes of submitting the information referred to in Schedule 1.

• (5) Despite subsection (4), compliance with a requirement under section 2 shall be determined in accordance with the test methods referred to in subsection 3(2).

• 25 (1) For each year in which a primary supplier participates in the trading system, they shall, for each pool in respect of which they make an election under section 13, submit to the Minister a report, no later than April 30 of the year after the year for which the report is submitted, that contains the information referred to in Schedule 2.

• (2) [Repealed, SOR/2020-277, s. 15]

• (3) A record of analysis referred to in subsection 8(3) of the Benzene in Gasoline Regulations may be used for the purposes of submitting the information referred to in Schedule 2.

• (4) Despite subsection (3), compliance with a requirement under section 2 shall be determined in accordance with the test methods referred to in subsection 3(2).

• 26 (1) A primary supplier shall, for each pool in respect of which they make an election under section 9, have the records required under sections 5, 6, 12, 18 and 19 and the reports required under subsections 24(1) and 25(1) audited by an auditor who is independent of the primary supplier and submit to the Minister a report that is signed and dated by the auditor and that contains the following information:

  • (a) the name and civic address of the primary supplier and the composition of the pool;

  • (b) the name, civic address and qualifications of the auditor;

  • (c) for each type of gasoline identified under section 5, the total volume of the gasoline and the number of batches dispatched or imported by the primary supplier;

  • (d) the procedures followed by the auditor to assess the validity of the information required under these Regulations;

  • (e) an assessment by the auditor of the extent to which the primary supplier has complied with these Regulations throughout the year in respect of which the audit is carried out; and

  • (f) a description of the nature and date of any inaccuracies in the records and any other deviations by the primary supplier from the requirements under these Regulations.

• (2) The primary supplier shall submit the auditor’s report

  • (a) in the case where the primary supplier is not participating in the trading system in respect of the pool for which the report is prepared, on or before May 31 of the year after the year in respect of which the audit is carried out; and

  • (b) in any other case, on or before June 30 of the year after the year in respect of which the audit is carried out.

• (3) In this section, auditor means an individual or firm that is certified, for the purposes of carrying out International Organization for Standardization quality assurance (ISO 9000 or 14000 series) assessments, by the International Register of Certificated Auditors or any other nationally or internationally recognized accreditation organization.