Canada Unveils Ulsd Regulatory Plan For 2006

Diesel Fuel News, March 5, 2001 by Jack Peckham

It's official: Canada just announced plans to require a 15 ppm sulfur cap on ultra-low-sulfur diesel (ULSD) in mid-2006, mirroring U.S. EPA's highway diesel regulation.

The plan, first outlined last summer (see Diesel Fuel News 7/3/2000, p12), also aims to align Canadian vehicle emissions standards with upcoming U.S. EPA standards.

Not only would that hit "Tier 2" light-duty and 2006/7 heavy-duty vehicles, but also off-road "Tier 3" diesel engine and fuels. The off-road regulations would closely follow EPA intentions that are expected to be unveiled later this year, Environment Canada said.

For Canadian refiners -- facing an estimated $1 billion diesel desulfurization cost -- a "Canadian regulatory process will be initiated shortly with a discussion paper soliciting views from stakeholders on the need for and the form of 'safety valve' provisions similar to those in the U.S. final rule," the agency announced in the official Canada Gazette.

Such "safety valves" in the U.S. would give a four-year break (between 2006-2010) for 20% of diesel to continue as today's 500 ppm sulfur diesel, alongside the 15 ppm ULSD. Small refiners also are excused from making ULSD until 2010. However, most U.S. refiners claim this scheme is unworkable, prompting National Petrochemical & Refiners Association to sue EPA in federal court.

Environment Canada also will launch a survey of Canadian refiners and importers to determine cetane, aromatics and PAH levels in both on- and off-road diesel.

The agency also "plans to recommend a regulatory limit for sulfur in off-road diesel ... In preparation for this, Environment Canada will gather information on where off-road diesel is used, the effects of sulfur reduction on emissions, and the costs of reducing sulfur for use in all off-road engines and vehicles, including rail and marine applications."

The agency also "proposes to develop measures to reduce the level of sulfur in both light and heavy fuel oils used in stationary facilities ... with a view to matching the requirements set by the European Union for sulfur in fuel oils which will be fully implemented by 2008."

It's possible that "economic measures" could be recommended to "promote the early introduction of cleaner fuels, including low sulfur fuels," the agency said.