Minister Anderson stands firm on health and environment benefits from the regulation

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Sorry for the length. This is more related to gasoline, but diesel will follow.
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Attention News Editors/Environmental Reporters:

Minister Anderson stands firm on health and environment benefits from the regulation to reduce sulphur levels in gasoline


OTTAWA, May 11 /CNW/ - Environment Minister David Anderson today urged
oil companies in Canada to continue their efforts to reduce sulphur levels in
gasoline and give Canadians cleaner air.
Responding to a proposal from the Canadian Petroleum Products Institute
(CPPI) to relax the regulatory requirements for Imperial Oil and Petro Canada
to reduce the sulphur content in gasoline, Minister Anderson said the
industry did not demonstrate that their proposal would give Canadians the same
or greater health benefits than they will receive from the current regulation.
``In the interest of fairness to the other companies that have made and
are making investments to comply with the current regulations, I am bringing
this matter to a close,'' said Minister Anderson. ``It is time to get on with
the job and assure Canadians that this Government and the petroleum industry
are taking the steps necessary to improve the air they breathe.''
The Regulations, passed in June, 1999, require reductions in the sulphur
content in gasoline across Canada to 150 parts per million (ppm) in 2002 and
to 30 ppm by the end of 2004. The average sulphur content in gasoline today
is 340 ppm. These regulations will prevent more than 2000 premature deaths,
93,000 cases of bronchitis in children and 11 million incidents of respiratory
problems such as asthma attacks over the next 20 years.
The Regulations were put in place following more than five years of
studies, consultations and analysis. The studies were led by international
independent experts in the fields of engineering, atmospheric chemistry,
health and economics. Stakeholders, including the refining industry, auto
makers, environmental groups, health professionals and municipalities provided
their advice throughout the process.
The Regulations were based on this consultation and fully recognized the
progress already made by some refineries to reduce the sulphur level in their
gasoline. The Regulations are flexible in that, through an averaging
provision, they allow companies to delay investments in return for early
reductions or greater reductions later. They provide 36 to 66 months for
implementation, much more time than the European Union gave its industry.
``With the earliest smog alert in history last week in Toronto, Canadians
understand that air quality is a serious health issue,'' said Minister
Anderson. ``We must work together to improve the quality of the air we
breathe and allow Canadians to lead a healthy life.''
Minister Anderson also responded to recent statements by Ontario
Environment Minister Dan Newman, who spoke out on the need for lower sulphur
levels in gasoline to protect Ontario residents.
``Minister Newman is right. More needs to be done,'' said Minister
Anderson. The province of Ontario can play a leading role in curbing smog by
accelerating its plans and supporting the 2010 target date for Canada-Wide
Standards that will lower the levels of the two key ingredients of smog -
particulate matter and ground level ozone.''
The new Canada-Wide Standards are on the agenda for the next meeting of
the Canadian Council of Ministers of the Environment (CCME) in Quebec City,
June 5 and 6, 2000.
A backgrounder on the Sulphur in Gasoline regulations follows.

Sulphur in Gasoline Regulations - Backgrounder

Introduction
The science is clear: sulphur in gasoline is a significant contributor
to air pollution. Its removal reduces emissions from vehicles and improves
the ambient air quality. Sulphur, which occurs naturally in gasoline causes
emissions of sulphur dioxide (S02) and sulphates (SO4). It also impairs the
performance of the vehicle emission control systems. This results in higher
emissions of other pollutants such as nitrogen oxides (NOx), carbon monoxide
(CO) and hydrocarbons. For example, when sulphur is reduced from 330 parts
per million (ppm) to 40 ppm, the tailpipe emissions of sulphur compounds are
reduced by 88% while the emissions of other pollutants are reduced by between
20 and 50% for newer vehicles. In a city like Toronto, the use of 30 ppm
sulphur gasoline will result in ambient air pollutants going down by 25% for
SO2 and 6 to 7% for NOx, CO and SO4.
In order to protect the environment and the health of Canadians, the
federal government passed regulations in June 1999 to limit the level of
sulphur in gasoline. This followed the findings of an independent expert
health panel that reducing sulphur in gasoline would result in significant
health benefits to Canadians.
Some Canadian refiners already produce low sulphur gasoline. Others will
produce low sulphur gasoline well in advance of the regulation dates. Among
Canadian refiners, Imperial Oil and Petro-Canada produce gasoline with the
highest levels of sulphur. These two companies maintain that they require
more time than provided by the regulations to reduce sulphur levels. Last
fall, the Canadian Petroleum Products Institute proposed that the regulations
be amended to help these two companies.

Health Benefits from Low Sulphur Gasoline
The work by a panel of independent health experts has established that
increased air pollution caused by vehicles using gasoline with high levels of
sulphur results in about 100 Canadians dying prematurely each year, 5,000
children suffering from bronchitis, and half a million acute respiratory
symptoms such as severe coughs and new cases of pneumonia and croup. New
research by Health Canada indicates that the health impacts of high sulphur
gasoline may actually be much larger than the above estimates.
The introduction of low sulphur gasoline will significantly reduce air
pollution, resulting in large health benefits to Canadians. Most of the
health impacts are in urban centers because of the greater use of vehicles
where people live and work.

Situation in Canada and Other Jurisdictions
Canadian gasoline has an average sulphur content of 320 parts per million
(ppm), one of the highest levels in the world. In 1999, Ontario gasoline
averaged 460 ppm. The Canadian regulations limit sulphur in gasoline to an
average of 30 parts per million (ppm) by 2005, with an interim step to 150 ppm
in 2002.
Internationally, other jurisdictions are acting to reduce sulphur levels:
- California and Japan already have 30 ppm (average) gasoline --
California is requiring further reductions to 15 ppm (average) by the
end of 2002;
- In U.S. smog areas, gasoline with an average sulphur content of about
150 ppm was introduced on January 1, 2000. This gasoline is supplied
to about one third of the U.S. market;
- The U.S. is implementing nationwide requirements for 30 ppm (average)
gasoline in 2005; and
- European Union countries have required 150 ppm (maximum) gasoline since
January 1, 2000, and require 50 ppm (maximum) starting in 2005.

Process followed in developing the Regulations
Canada's regulations were passed after many years of extensive
consultations and studies. In 1994 a federal/provincial task force
commissioned studies and carried out broad consultations to develop
recommendations to reduce emissions from vehicles. In October 1995, the
Canadian Council of Ministers of the Environment endorsed the seven
recommendations of the task force, including that sulphur in Canadian gasoline
should be reduced by the year 2000, with the level to be determined through
further study.
The CCME task force was followed by a comprehensive multi-stakeholder
process to assess the appropriate level of sulphur for Canadian gasoline.
This open and transparent process was designed in full partnership with
industry. Studies ($635,000 funding from the CPPI, $270,000 from others) were
carried out over two years by independent expert panels under the direction of
a steering committee that selected the scientists and hired the consultants.
The steering committee included provinces, other federal departments, the
Canadian Petroleum Products Institute, the Canadian Vehicle Manufacturers'
Association, and Pollution Probe. The final reports on emissions, health
benefits, costs and competitiveness implications are the consensus of
independent experts.
During 1998, a federal - provincial government working group analyzed the
expert panel reports. It consulted widely and concluded that the level of
sulphur in Canadian gasoline should be reduced. The working group's consensus
report to the Minister of Environment led to the Sulphur in Gasoline
Regulations being proposed in October 1998.
In December 1998, the Canadian Petroleum Products Institute filed a
Notice of Objection to the proposed regulations. The ministers of Environment
and Health reviewed CPPI's objections and determined that the regulations
should proceed.
The regulations were passed in June 1999.

Developments since the Regulations were Passed
After the regulations were passed, Esso and Petro-Canada indicated that
they required more time than provided by the regulations. Last fall, the
Canadian Petroleum Products Institute proposed that the regulations be amended
to help these two companies. CPPI proposed adding an option to the existing
regulations under which a refinery would have no interim requirements, but
would go to 30 ppm by January 1, 2004 (one year earlier).
Health Canada assessed the proposal made by CPPI. It found that there
would be a loss in health benefits if the regulations were amended to add the
CPPI option.
Because the industry was aware that its January 1, 2004 option proposal
would not have health benefits equivalent to the regulations, it was
accompanied by an offer to pursue additional reduction measures. The
additional measures proposed by CPPI were not sufficiently well defined to
permit the quantification of health effects, but given their nature and
suggested magnitude, the sum total of the health benefits would be less than
those of the regulations. Therefore, on April 27th, 2000 Minster Anderson
informed CPPI that its proposal was unacceptable.
On May 5th, CPPI modified its proposal to Minister Anderson. CPPI
proposed that the January 1, 2004 date of their previous proposal be changed
to July 1, 2003. Health Canada has assessed this proposal and estimated that
the following health benefits would be lost if the regulations were amended to
add the modified CPPI option:

avoided premature mortality 30
hospital admissions 35
emergency room visits 95
chronic respiratory disease cases in children 110
lower respiratory illness in children 350
restricted activity days 22,500
asthma symptom days 46,500
acute respiratory symptom days 165,000

APPENDIX

LIST OF STUDIES - SULPHUR IN GASOLINE - 1994 TO 2000

The following studies were carried out leading up to and as part of the
process to determine the appropriate level of sulphur in Canadian gasoline.

Consensus reports to the Minster of the Environment
Setting a level for sulphur in gasoline and diesel: Delivering on the
CCME's decision - Interim report (Federal-Provincial Government Working on
sulphur in gasoline and diesel)
Setting a level for sulphur in gasoline and diesel - Preliminary report
(Federal-Provincial Government Working on sulphur in gasoline and diesel)
Setting a level for sulphur in gasoline and diesel fuel - Final report
(Federal-Provincial Government Working on sulphur in gasoline and diesel)

Expert Panel reports
Atmospheric Science Expert Panel report (Atmospheric Science Expert
Panel)
Health and Environmental Impact Assessment Panel report (Health and
Environmental Impact Assessment Panel)
The costs of reducing sulphur in Canadian gasoline and diesel (Kilborn
Inc.)
Competitiveness and viability impact on Canadian refining industry of
reducing sulphur in Canadian gasoline and diesel (Purvin & Gertz Inc.)
Sulphur in fuels study - Final report (Prof. David Johnston, Chair of
Studies)

Supplemental reports
Initiative on the potential impacts of sulphur on motor vehicle pollution
control and monitoring technologies (Industry-Government Fact-finding Group)
International activities directed at reducing sulphur in gasoline and
diesel (Environment Canada)
European Union information package (Environment Canada)
Sulphur in liquid fuels - 1996, 1997, 1998, 1999 (Environment Canada)
The effect of the urban ambient air pollution mix on daily mortality
rates in Canadian cities (Health Canada and Environment Canada)
Assessment of technical options for refiners to meet the interim-period
requirements of the sulphur in gasoline regulations. (John Clark Consulting &
MathPro Inc. for Environment Canada)

Reports to the Canadian Council of Ministers of Environment

Consensus reports of the Task Force on Cleaner Vehicles and Fuels
Report to the Canadian Council of Ministers of the Environment by the
Deputy Minister's Task Force on Cleaner Vehicles and Fuels
Towards cleaner vehicles and fuels - Interim Task Force Report to the
Canadian Council of Ministers of the Environment (Deputy Minister's Task Force
on Cleaner Vehicles and Fuels)

Technical supporting reports:

Legislative and administrative framework
Regulation of emissions from on-road motor vehicles in Canada (Transport
Canada)
Regulation of emissions of air pollution from road vehicles in the United
States (Stork Consulting)
Approaches to reformulate gasoline and diesel by U.S. and Canadian
jurisdictions (Environment Canada)
U.S. and Canadian approaches to vehicle fuel efficiency standards
(Natural Resources Canada)
Improved fuel efficiency in road transportation and advanced technology
vehicles (Natural Resources Canada)

Benefits
Emission reductions from changes in vehicles and fuels (Environment
Canada)
Modeling cleaner vehicles and fuels using MOBILE-5C (Environment Canada)
Estimating changes in emissions for various gasoline formulations using
the COMPLEX model (Environment Canada)
Estimating emissions of particulates (PM-10) for various gasoline and
diesel formulations using the PART-5 model (Environment Canada and ENVIRON
Inc.)
Environmental and health benefits of cleaner vehicles and fuels (Hagler
Bailly Consulting Inc., ENVIRON Inc. Ontario Ministry of Environment and
Energy, and Environment Canada)
Supplemental report 1: Air quality monitoring (Hagler Bailly Consulting
Inc., ENVIRON Inc. Ontario Ministry of Environment and Energy, and Environment
Canada)
Supplemental report 2: Selected concentration-response functions for
human health effects (Hagler Bailly Consulting Inc.)
Supplemental report 3: Selected economic evidence of monetary valuation
of human health effects (Hagler Bailly Consulting)
Health benefits of cleaner vehicles and fuels: benefits for British
Columbia (Bovar-Concord Environmental)

Costs
Incremental costs of vehicle emissions standards (Sypher-Mueller
International Inc.)
Cost of upgrading transportation fuels (Kilborn Inc.)
Cost effectiveness of various vehicle and fuels options (Environment
Canada)

Alternatively-fuelled vehicles
Electric vehicle infrastructure requirements in Canada (Electric Vehicle
Association of Canada)
The cost and feasibility of low emission and electric vehicles in Canada
(BC Research Inc.

Socio-economic impacts
The current status of the petroleum products industry - the base case,
and recovery of capital and operating costs for fuel reformulation (Industry
Canada)
The socio-economic impacts of adopting tighter motor vehicle emission
standards and fuel requirements (Industry Canada)

(Egalement offert en français)
-0- 05/11/2000
 

Powder Hound

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Re: Minister Anderson stands firm on health and environment benefits from the regulation

Interesting post, Fred. No wonder fuels are more expensive in California - the gas is already at 30ppm sulfur and will drop soon. If diesel was that clean, there'd probably be no reason to exclude diesels from that market.

Something to think about.

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ENUTPEN8

Veteran Member
Joined
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Location
AR , USA
Re: Minister Anderson stands firm on health and environment benefits from the regulation

It must be really KEWWLL, getting paid to speculate, and make up numbers and "facts."
Driveon...NickatNight

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