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COMMERCE BUSINESS DAILY ISSUE OF MAY 29,1997 PSA#1855

CANADA: BENZENE IN GASOLINE REGULATIONS AND ORDER ADDING A SUBSTANCE TO THE LIST OF TOXIC SUBSTANCES IN SCHEDULE I TO THE CANADIAN ENVIRONMENTAL PROTECTION ACT The following notification is being circulated in accordance with Article 10.6. G/TBT/Notif.97.196. 1. Member to Agreement notifying: CANADA. If applicable, name of local government involved (Articles 3.2 and 7.2). 2. Agency responsible: Department of the Environment. Agency or authority designated to handle comments regarding the notification can be indicated if different from above. 3. Notified under Article 2.9.2. 4. Products covered (HS or CCCN where applicable, otherwise national tariff heading. ICS numbers may be provided in addition, where applicable): Benzene. 5. Title, number of pages and language(s) of the notified document: Benzene in Gasoline Regulations and Order Adding a Substance to the List of Toxic Substances in Schedule I to the Canadian Environmental Protection Act (pages 1425-1462). 6. Description of content: The goal of the Regulations is to reduce releases of benzene, a known human carcinogen, from gasoline-powered vehicles by improving the environmental performance of Canadian gasoline. Benzene was determined to be toxic under the Canadian Environmental Protection Act (CEPA) on 22 January 22, 1994. The key points of compliance are at refineries, blending facilities and import points, although caps on the level of benzene in gasoline also apply throughout the distribution system. Flexibility to the regulated industry is provided through the option to use annual pool averages and a performance model that relates gasoline composition to tailpipe emissions. Based on the United States' Environmental Protection Agency's (EPA) Complex Model, the Benzene Emissions Number (BEN) is defined as a function of several gasoline parameters such as benzene, aromatics and sulphur. These innovative concepts, endorsed by the Canadian Council of Ministers of the Environment (CCME), other government departments (OGDs) and the petroleum industry, allow investments for compliance to be minimized but also cause the regulations and the administration of their provisions to be complicated. The Regulations introduce a freeze on the BEN and are structured such that they can easily be amended to address additional substances from the second Priority Substances List (PSL2) [i.e., 1.3-butadiene, formaldehyde and acetaldehyde] should they be determined to be "toxic" under CEPA in the future. 7. Objective and rationale: Protection of the environment. 8. Relevant documents: Canada Gazette, Part I, 3 May 1997. 9. Proposed date of adoption: Not stated; Proposed date of entry into force: Not stated. 10. Final date for comments: 2 July 1997. 11. Text available from: National enquiry point. (0147)

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