Environment Canada Issues Guidance for New ULSD Regs

Mandatory Introduction Could Be Delayed

(Ottawa: March 23, 2006) – Environment Canada has issued a guidance document on the new sulphur in diesel fuel regulations, slated to come into effect in Canada this summer.

The rule includes mandatory use of ULSD in trucks as of June 2006. But enforcement may in fact be delayed if Environment Canada provides the petroleum industry with a 45 day extension for its introduction of the fuel, as has already been done in the US.

If the extension is granted, fuel reduced to 22 ppm could become mandatory in Canada as of Sept. 1, and fuel reduced to 15 ppm will become mandatory Oct. 15.

The extension in the States was granted to facilitate the transition to ULSD, explained CTA’s Economics and Environment VP Stephen Laskowski, adding the US Environmental Protection Agency (EPA) has stated the revised transition dates may cause some diesel engine manufacturers to delay their introduction of 2007 truck models.

Laskowski also pointed to the differences between US and Canadian enforcement of mandatory ULSD, particularly that Canada’s “northern supply area,” as indicated in the guidance document attached, will be exempted from using 15 ppm ULSD when the new rule comes into force.

CTA has also been assured by the EPA that ULSD will in fact be widely available in the US as of Oct. 15, even though some stations will continue to supply 500 ppm to some on road users, said Laskowski.

To see a copy of Environment Canada’s Guidance Document – Sulphur in Diesel Fuel Regulations Click here.