Federal regulationCanada Gazette, Part IComment Period Closed
Regulations Amending the Sulphur in Gasoline Regulations
Sponsoring body: Environment, Dept. of theIntroduced December 13, 2025Last checked August 25, 2026
Read the official text on gazette.gc.caOfficial version — Canada Gazette, Part I
What this regulation does
This regulation extends the temporary sulphur compliance unit (SCU) trading system for Canadian gasoline refiners and importers from 2026 to 2030, allowing them to generate, trade, and bank credits to help meet the 10 parts per million sulphur limit in gasoline rather than having to comply with that limit directly at all times.
Plain-language summary by Legisail.
Business impact
Compliance
About 23 regulated parties — 13 refineries and 10 importers — are affected, all of which are medium to large businesses (no small businesses qualify under the reporting thresholds). Refiners who were relying on banked credits from the previous 2020–2025 trading system can carry those credits forward into the new system, avoiding potential production cutbacks or supply disruptions in regions served by those refineries. Administrative costs are minimal — on average about 7 hours per year per business, or roughly $176 annually — covering record-keeping, reporting, and audit requirements tied to credit transactions. Without this extension, some refiners would have faced costly capital upgrades or forced reductions in refining capacity, which could have reduced fuel availability in certain regions of Canada.
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Where this regulation is
Proposed
Comment period closed
Final publicationPending
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