Submitted by: Sarnia-Lambton Chamber of Commerce

Issue

Certain provisions of Ontario Regulation 88/22 (Air Pollution – Discharge of Sulphur Dioxide from Petroleum Facilities) create a risk of unavoidable non-compliance during non-routine operating conditions, even when facilities are operating safely and in accordance with good engineering practices.

No commercially or technically proven solution exists to fully control sulphur dioxide (SO₂) emissions during emergency or malfunction flaring events. The unpredictable timing, magnitude, and duration of these events make it infeasible to design control systems capable of capturing and treating all flared gases under all scenarios.

Flares are critical safety devices that must remain available at all times to prevent process safety incidents and uncontrolled releases. During emergencies, process upsets, or equipment malfunctions, the priority is to stabilize operations and protect workers, the public, and the environment. Flaring is minimized wherever possible; however, its use is sometimes necessary to maintain safe operations.

While industry continues to invest in emissions reductions and comply with regulatory requirements, the current framework can create situations where compliance obligations do not reflect operational realities. This introduces regulatory uncertainty and risk, particularly when safe and necessary actions result in temporary emissions exceedances.

The intent of proposed amendments is to improve clarity, predictability, and enforceability — not to weaken environmental protection.

Background

Ontario’s petroleum refining sector is a critical component of the province’s energy security, manufacturing base, and regional economy. Refineries in Sarnia-Lambton and Nanticoke supply approximately 93% of Ontario’s transportation fuels, petrochemical feedstocks, asphalt, aviation fuel, and other essential products.

These facilities compete directly with refineries in the United States and other Canadian provinces for both market share and global capital investment. Regulatory frameworks that are unclear, technically impractical, or inconsistent with other jurisdictions can increase operating costs, discourage investment, and impact the long-term viability of refining capacity in Ontario.

Maintaining refinery capacity in Ontario supports:

• Reliable fuel supply for consumers, industry, and aviation

• Competitiveness of Ontario manufacturing and petrochemical production

• Employment across the province, including approximately 17,000 direct and indirect jobs

• Continued investment in emissions reduction and modernization projects

Regulatory certainty is a key factor in determining where companies invest capital for maintenance, upgrades, and environmental improvements. When requirements cannot be met in practice, or when compliance obligations exceed those in competing jurisdictions, there is increased risk that future investment will occur outside Ontario.

Comparable jurisdictions, including the United States and other Canadian provinces, provide clearer regulatory frameworks for emissions during non-routine operating conditions such as startup, shutdown, and malfunction events.

Recommendations

The Ontario Chamber of Commerce urges the Government of Ontario to:

1. Amend O. Reg. 88/22 to Establish a Clear and Practical Framework for Non-Routine Operating Conditions

Develop a regulatory framework that explicitly addresses emissions during unplanned events (e.g., malfunctions, emergencies, process upsets) and planned activities (e.g.,startup, shutdown, and maintenance turnarounds). This framework should:

• Define distinct operating states and event categories

• Allow temporary emissions where necessary to maintain safety, prevent uncontrolled releases, and support essential maintenance activities

• Require timely notification, transparent reporting, and root-cause or corrective-action analysis

• Focus enforcement on cases involving negligence, avoidable emissions, or failure to implement corrective actions

2. Align Ontario’s Regulatory Approach with Comparable Jurisdictions

Ensure that Ontario’s requirements are broadly aligned with those in the United States and other Canadian provinces to maintain competitiveness and support continued investment in the sector.

3. Maintain Strong Environmental Accountability and Transparency

Ensure that any regulatory amendments continue to uphold high environmental standards by:

• Requiring robust monitoring and reporting of SO₂ emissions

• Supporting continuous improvement in emissions performance

• Maintaining transparency with regulators and the public

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