Canada Gazette, Part I, Volume 154, Number 46: Federal Halocarbon Regulations, 2020

November 14, 2020

Statutory authorities
Canadian Environmental Protection Act, 1999
Environmental Violations Administrative Monetary Penalties Act

Sponsoring department
Department of the Environment

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Halocarbons are chemicals that are widely used in refrigeration and air-conditioning systems, fire-suppression systems, and solvent systems.footnote 1 The Federal Halocarbon Regulations, 2003 (the FHR 2003 or the Regulations) require regulated parties to maintain equipment containing halocarbons on a regular basis and to recover halocarbons during equipment maintenance and at end-of-life disposal. The FHR 2003 aim to prevent halocarbon emissions from refrigeration, air-conditioning, fire-extinguishing and solvent systems that are located on Indigenous or federal lands, or that are owned by federal departments, boards or agencies, Crown corporations, or federal works or undertakings.

There are many administrative issues associated with the FHR 2003 that make the Regulations difficult to manage. Further, certain regulatory provisions lead to some unnecessary administrative burden costs for Canadian individuals and businesses, as well as for federal departments, boards and agencies, and Crown corporations. Several regulatory provisions are also obsolete. Finally, the existing exemptions concerning the use of halons in fire-suppression systems in the civil aviation sector are not aligned with international directives.footnote 2

Background

Halocarbons are greenhouse gases (GHGs) and can be ozone-depleting substances. Emissions of GHGs, including emissions of halocarbons and carbon dioxide (CO2), are contributing to a global warming trend that is associated with climate change. Halocarbons can have global warming potentials hundreds to thousands of times greater than that of CO2. Emissions of ozone-depleting substances contribute to the thinning and gradual destruction of the ozone layer, which provides protection to life forms on Earth from overexposure to the sun’s ultraviolet (UV) rays. Overexposure to UV rays can have negative impacts on the environment and human health, contributing to the formation of skin cancer and cataracts, the weakening of the immune system, and damages to fisheries, agriculture, buildings and equipment.

Domestic instruments controlling halocarbon emissions

In Canada, the National Action Plan for the Environmental Control of Ozone-Depleting Substances (ODS) and their Halocarbon Alternatives (the National Action Plan) sets out federal, provincial and territorial responsibilities for ozone protection.footnote 3 The National Action Plan provides a national framework for a harmonized approach by the federal, provincial and territorial governments to implement an ozone layer protection program. The Ozone-depleting Substances and Halocarbon Alternatives Regulations (ODSHAR) control the export, import, manufacture, sale and certain uses of ozone-depleting substances and hydrofluorocarbons (HFCs), as well as products containing or designed to contain them, at the federal level. The ODSHAR are made under Part 5 (Controlling Toxic Substances) of the Canadian Environmental Protection Act, 1999 (CEPA). Provincial and territorial governments are responsible for controlling the sale, handling, use, recovery and recycling of ozone-depleting substances and their halocarbon alternatives used in equipment that falls under their respective jurisdiction.

Given that provincial regulations do not apply on federal lands, there was a need for system maintenance and controlling releases of halocarbons at the federal level. The FHR 2003 were made under Part 9 of CEPA (Government Operations and Federal and Aboriginal Land) to meet this need. The purpose of the FHR 2003 is to help prevent and reduce domestic emissions of halocarbons into the environment from air-conditioning, refrigeration, fire-extinguishing and solvent systems, and from equipment associated with these systems, that are located on Indigenous or federal lands, or that are owned by federal departments, boards or agencies, Crown corporations, or federal works or undertakings.footnote 4

The Regulations require regular preventive equipment maintenance to be conducted by a certified person, including annual leak testing, as well as the recovery of refrigerants during equipment maintenance and at end-of-life disposal. The Regulations also set prohibitions on releases of halocarbons from systems, as well as on the use of halocarbons in certain systems, and include phase-out schedules for the use of some substances. Permits may be issued if no technically or financially feasible alternative to a prohibited halocarbon exists. These obligations are accompanied by record-keeping and reporting requirements, which include service logs, equipment maintenance notices to be affixed to systems and release reporting.

The FHR 2003 regulate owners and operators of refrigeration, air-conditioning and solvent systems, fire-extinguishing systems and cylinders containing halocarbons, and containers holding halocarbons that are owned by federal departments, agencies, boards and Crown corporations, federal works or undertakings, or are found on federal or Indigenous lands. Federal works and undertakings are any work, undertaking or business that has operations crossing or extending beyond provincial boundaries. Operations that fall within the scope of this definition include telecommunication companies; port authorities; navigation and shipping; railways and canals; ships and ferries; airports, aircraft and commercial air services; and banking. Regulated parties on Indigenous lands mainly include band councils or private businesses (e.g. owners of fuel stations). On federal lands, regulated parties include private companies that own or operate systems in federal parks.

International instruments controlling halocarbon emissions

The Montreal Protocol on Substances that Deplete the Ozone Layer (the Montreal Protocol) is an international treaty designed to protect the ozone layer. Originally signed by Canada in 1987, the Montreal Protocol obligates parties to phase out the production and consumption of substances known to cause ozone depletion and to phase down the production and consumption of HFCs. As one of the early signatories to the Montreal Protocol, Canada has consistently met or exceeded its obligations under the Montreal Protocol to protect the ozone layer.

The ODSHAR, which control the export, import, manufacture, sale and certain uses of ozone-depleting substances and HFCs as well as products containing or designed to contain them at the federal level, were designed to meet the requirements of the Montreal Protocol. HFCs are not ozone-depleting substances, but are very potent GHGs. Since many of the substances controlled by the Montreal Protocol are also GHGs, their elimination also contributes to taking action on climate change.footnote 5

The FHR 2003 are complementary to the Montreal Protocol and the ODSHAR as they establish controls and prescribe maintenance actions for systems in order to help prevent and reduce releases of ozone-depleting substances and HFCs. The FHR 2003 consequently help to reduce adverse effects associated with the destruction of the ozone layer and with climate change, such as important changes in the quantity and distribution of rain, snow, and ice; the risk of extreme weather events, such as heat waves and torrential rainfalls; and the frequency of flooding, dry spells, droughts and forest fires.

Halons in aircraft fire-suppression systems

The International Civil Aviation Organization (ICAO) is the United Nations agency responsible for the safe and cooperative development of international civil aviation. The phase-out of the production and consumption of halons under the Montreal Protocol has led the ICAO to establish a progressive schedule to eliminate the use of halons in aircraft fire-suppression systems. The organization was founded in the United States on December 7, 1944. Canada is an ICAO member country and ratified the Convention on International Civil Aviation (CICA or the Convention) in 1946.footnote 6 Almost all the countries in the world adhere to the Convention, as there are currently 193 ICAO member countries.

The ICAO sets safety standards for civilian aircraft and has established a progressive schedule for the elimination of halons in fire extinguishers. Annex 6 (Operation of Aircraft) and Annex 8 (Airworthiness of Aircraft) of the CICA prohibit the use of certain halons in fire-suppression systems on newly manufactured or designed aircraft by target dates. The international community is committed to meeting these target dates; however, technical difficulties have led the ICAO to extend the target dates for certain aircraft compartments. Target dates are subject to change if suitable alternatives are not available.

Canada has a relatively large civil aviation system, with flights to many international destinations.footnote 7 Decisions taken by the ICAO can have important impacts on Canadian civil aviation. Transport Canada leads efforts under the ICAO to ensure that Canada’s interests and positions are represented on the international stage. Aircraft stakeholders are fully aware and supportive of the current measures established under the CICA to progressively eliminate the use of halons in existing and newly designed aircraft.

Objective

The proposed Federal Halocarbon Regulations, 2020 (the proposed FHR 2020 or the proposed Regulations) aim to address administrative issues associated with the FHR 2003. The proposed FHR 2020 intend to clarify definitions and requirements, and to reduce administrative costs for the regulated community. In addition, the proposed Regulations would remove or update obsolete provisions and enhance regulatory alignment with other jurisdictions.

Description

The proposed FHR 2020 would be made under Part 9, section 209, of CEPA. They would update, repeal and replace the FHR 2003, and would apply to the same regulated parties. The proposed Regulations would modify the FHR 2003 as described below.

The proposed FHR 2020 would revise and add definitions to improve clarity. Examples are as follows:

The proposed FHR 2020 would also modify certain administrative and operational requirements. They would

Further, the proposed FHR 2020 would align federal regulations with certain ICAO standards. In particular, the proposed FHR 2020 would include an ambulatory incorporation by reference of the ICAO standards relating to the replacement of halons in fire-extinguishing systems in civil aviation. This incorporation by reference would maintain exemptions concerning the use of certain halons in fire extinguishers found on newly manufactured or designed aircraft, in line with the prohibition schedule set in the CICA. If updates are made to the schedule in the CICA to prohibit the use of halons in fire extinguishers in aircraft, no modifications to the proposed Regulations would be required in order for Canada to remain aligned with the Convention.

The FHR 2003 require that service technicians obtain a certificate recognized by three or more Canadian provinces, or by the province in which the work of the service technician who holds the certificate is being done, in order to be eligible to perform work under the Regulations. The proposed FHR 2020 would revise the definition of “certified person” to specify that a valid certificate is one recognized by at least one Canadian province, given that the training curriculum for service technicians is similar across jurisdictions.

Other changes reflected in the proposed FHR 2020 would include the removal of references to expired Underwriters’ Laboratories of Canada standards. The proposed FHR 2020 would also include the relevant requirements of the Environmental Code of Practice for the Elimination of Fluorocarbon Emissions from Refrigeration and Air Conditioning Systems. The proposed Regulations would remove the direct reference to this code to avoid redundancy. Obsolete provisions that are no longer applicable would be removed as well.

In addition, amendments to other regulations administered by the Department of the Environment (the Department) are necessary to reflect the fact that the proposed FHR 2020 would repeal and replace the FHR 2003. In particular, consequential amendments would be made to specific provisions identified for purposes of enforcement in the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999), as well as in the Environmental Violations Administrative Monetary Penalties Regulations.

Regulatory development

Consultation

The Department has engaged with stakeholders on the proposed Regulations since the beginning of regulatory development. Two main rounds of consultation prior to prepublication were conducted in 2013 and 2017. Stakeholders include all known parties regulated by the FHR 2003, as well as service providers; members of the Federal-Provincial Working Group on Ozone-Depleting Substances and their Halocarbon Alternatives; associations and governmental organizations that offer training and issue certificates to refrigeration and air-conditioning technicians; local governments that issue their own provincial certificates; associations related to federal works and undertakings; Indigenous associations and communities; and industry and Indigenous groups that consult with regulated parties.

A consultation document outlining proposed revisions to the Regulations was published on the Department’s website in January 2013.footnote 9 A notice of the document’s publication was sent to all known stakeholders at the time. Four face-to-face consultation meetings were held in March 2013 in Edmonton and Halifax, and in Gatineau (in English and in French). The objective of these meetings was to present the proposed revisions, gather comments and provide an opportunity for stakeholders to propose further revisions. Two webinars were also conducted in March 2013 (one in English and one in French). The regulated community generally supported revisions to reduce administrative burden and clarify regulatory requirements, but was not in favour of any revisions to the FHR 2003 that could result in additional costs.

In 2017, the Department launched a targeted stakeholder consultation based on feedback received in 2013. The proposed changes to the Regulations were released electronically for public comment in November 2017, along with the publication of a consultation document outlining the feedback received to date for changes being considered.footnote 10 All known stakeholders were notified of this consultation process by email.

During the targeted consultation, stakeholders, including federal departments and agencies, businesses, and industry associations, welcomed the proposed clarification of definitions and the potential reduction of administrative burden. Stakeholders agreed with defining small and large systems by the quantity of halocarbons that they are designed to contain, rather than their refrigeration capacity, but expressed concern with some of the proposed revisions. It was noted that the quantity of refrigerant is not always written on the system’s label and that a conversion table should be available to help with calculations. Clarification was also requested for systems with multiple refrigerant circuits of less than 10 kg of halocarbons. Stakeholders agreed with the recommendation to change the interval between leak tests as a means to enhance compliance flexibility. Lastly, stakeholders were concerned about the requirement to maintain an inventory of their large systems containing halocarbons, but most of them agreed that this requirement is a best practice.

The Department has kept in contact with stakeholders since 2017 with different activities, such as workshops provided by regional compliance and promotion officers. The Department also continues to answer any questions or requests, as they arise.

Modern treaty obligations and Indigenous engagement and consultations

The Department conducted a modern treaty assessment. It was found that the Regulations apply to reserve lands, but they do not apply to most lands subject to modern treaties. Self-governing Indigenous groups have the authority to apply laws related to halocarbon management in their treaty areas, as long as those laws are local in nature and go above and beyond the federal requirements.

All known regulated Indigenous parties, and Indigenous organizations, communities and groups, were invited to participate in the 2013 consultation. Written comments on the consultation document were received from one Indigenous organization. Three Indigenous organizations responded during the 2017 consultation by submitting comments that indicated their support for the proposed modifications. The Department reached out to the Assembly of First Nations in December 2018 to offer an additional opportunity for members to share their comments on the proposed regulatory changes; no comments were received.

Instrument choice

When determining how to meet the objectives mentioned above, three regulatory options were considered: (1) maintaining the status quo; (2) making amendments to the Regulations; and (3) repealing and replacing the Regulations. Non-regulatory options were not considered as they would not meet the objectives of the proposed FHR 2020.

The status quo option was not chosen, as the administrative issues associated with the FHR 2003 would continue to make the Regulations difficult to manage under this option. Regulated parties would also continue to incur unnecessary costs when complying with the existing administrative requirements. The FHR 2003 require substantial structural changes, such as merging many provisions that are similar to each other. The option to amend the FHR 2003 was not selected given the intricate nature of the modifications that are required and the number of changes being proposed.

Repealing and replacing the FHR 2003 with the proposed FHR 2020 would facilitate regulatory administration. For example, small and large systems would have their own definitions based on the charge of halocarbons they contain or are designed to contain, instead of small systems being defined by their refrigeration capacity, which has often proven difficult to determine. Further, the proposed Regulations are expected to lead to reductions in administrative burden costs. They would also revise or replace obsolete provisions and enhance alignment with requirements in other jurisdictions and with the CICA. For these reasons, repealing the FHR 2003 and replacing them with the proposed FHR 2020 is the chosen option.

Regulatory analysis

Benefits and costs

The proposed FHR 2020 are expected to address the administrative issues associated with the FHR 2003. Estimates of the impacts (benefits and costs) of the proposed FHR 2020 are based on the number of known regulated parties, which is approximately 3 750. Approximately 200 of these regulated parties are operators of systems containing halocarbons associated with federal departments, boards and agencies and Crown corporations. The remaining regulated parties include about 1 750 operators of systems associated with federal works and undertakings, around 1 300 businesses on Indigenous lands and about 500 businesses on federal lands. The projected costs and benefits (cost savings) attributable to the proposed Regulations are described below, which are based on estimates of the number of hours required to conduct an administrative activity, the wage rate associated with each activity, and the number of parties required to conduct each activity.

The proposed Regulations would require regulated parties to conduct inventory tracking only for large systems. This provision would simplify on-site identification of systems containing halocarbons for equipment owners and operators and federal government officials. Smaller systems are generally not serviced, but rather replaced when they break down. As a result, the proposed FHR 2020 would only require the tracking of activities related to the servicing of smaller systems that could lead to a halocarbon release. Overall, the proposed Regulations include record-keeping requirements that would focus on larger systems, which have the potential for larger halocarbon releases. These changes would help improve the record-keeping practices of equipment owners and operators and help enforcement officers conduct on-site inspections.

The 3 750 regulated parties would need about one hour each to familiarize themselves with the proposed FHR 2020, resulting in a one-time total administrative cost of approximately $130,000.footnote 11 In terms of recurring administrative costs, it is assumed that 3 750 regulated parties owning or operating a large refrigeration, air-conditioning, fire-extinguishing or solvent system containing halocarbons, or a container holding or designed to hold halocarbons for the purpose of storage or transportation, would each have an employee work for 0.5 hours annually to maintain information in an inventory. The total incremental increase in administrative costs of the proposed Regulations is therefore estimated to be approximately $600,000 from 2020 to 2030.

These projected costs would be offset by administrative cost savings. The projected cost savings resulting from the proposed FHR 2020 would be attributable to streamlined notification and record-keeping requirements for all regulated parties, although some would experience more relief than others. For example, every regulated party would save approximately four hours annually, on average, as it would no longer be required to affix a notice, keep a record of that notice or maintain a service log for each refrigeration, air-conditioning or fire-extinguishing system. Instead, this information would be centralized in a single activity log, making it easier for enforcement officers to verify compliance.

In addition, approximately 375 regulated parties would each save an estimated 45 minutes per year, on average, as they would no longer be required to affix a destruction notice to a refrigeration, air-conditioning, fire- extinguishing or solvent system, or keep records of a dismantling or decommissioning of such a system. It is also assumed that 112 regulated parties would each save 15 minutes annually, on average, due to the removal of the requirement to affix a notice to the control panel of a fire extinguishing system to indicate that it is out of operation during the period of service. Finally, it is estimated that increasing the validity period, from one to three years, for permits to install or charge a fire-extinguishing system containing one of the substances listed in items 1 to 9 of Schedule 1 of the proposed Regulations would also reduce net administrative work for three regulated parties by 1.5 hours per year each. The total administrative cost savings are estimated to be approximately $3.8 million from 2020 to 2030.

Between 2020 and 2030, around 200 operators of systems containing halocarbons associated with federal departments, boards and agencies, and Crown corporations are projected to realize a net reduction of $175,000 in administrative costs. The other 3 550 regulated parties, including operators of systems containing halocarbons associated with federal works and undertakings, and businesses on Indigenous and federal lands, could realize a net reduction of approximately $3 million in administrative costs over this period. The net cost savings (net benefits) attributable to the proposed FHR 2020 are thus estimated to be $3.2 million from 2020 to 2030.

Small business lens

The small business lens would apply to the proposed FHR 2020 since most regulated parties would be considered small businesses. Based on information managed by the Department concerning the FHR 2003, it is estimated that the proposed Regulations would implicate 3 750 regulated parties. Approximately 80% (3 030) of these parties are small businesses. This estimate is based on available employee count data and obtained by using the assumption that a small business is any business that has fewer than 100 employees.

The proposed FHR 2020 would update, repeal and replace the FHR 2003. Several flexibilities for all businesses would be included in the proposed Regulations, such as changing the leak test interval from once every 12 months to at least once per calendar year and no more than 15 months since the previous leak test. Small systems containing halocarbons would not typically trigger compliance actions under the proposed FHR 2020. Work done on small systems does not normally lead to a leak, and they are usually replaced instead of repaired. In addition, under the proposed Regulations, there would be reduced notification and record-keeping requirements (e.g. allowing regulated parties to keep records and send reports electronically).

Consultations were held with stakeholders, including regulated parties and industry associations, prior to the publication of the proposed FHR 2020 in the Canada Gazette, Part I. Stakeholders, including small businesses, indicated general support for the proposed Regulations.

Table 1 below shows the administrative cost savings (benefits) and costs to small businesses that are expected to result from the implementation of the proposed FHR 2020. In total, small businesses would assume costs of about $500,000, or $160 per small business, over the period of analysis. For example, these costs could result from the added requirement of maintaining information in an inventory for large systems and containers. The projected costs of the proposed Regulations would be offset by the projected cost savings, which are approximately $3.1 million, or $1,030 per business. Overall, under the proposed Regulations, small businesses are anticipated to realize a net reduction in administrative costs of about $2.6 million, or $870 per small business, between 2020 and 2030.

Table 1: Summary of small business lens analysis
Administrative impacts Annualized value Present value
Administrative cost savings $390,000 $3,100,000
Administrative costs $60,000 $500,000
Net cost savings (all small businesses) $330,000 $2,600,000
Net cost savings per small business $110 $870

Notes:

One-for-one rule

The one-for-one rule applies as the proposal results in an incremental change in administrative burden on business. The proposal repeals an existing regulation and replaces it with a new regulatory title, which results in no net increase or decrease in regulatory titles.

A survey on administrative burden associated with the FHR 2003 was sent to over 3 000 regulated parties in 2015. Within the scope of the one-for-one rule, regulated parties are individuals and for-profit or competitive businesses. Under the FHR 2003, this definition includes federal works and undertakings, or certain regulated parties located on federal and Indigenous lands. Regulated parties that meet this definition on Indigenous lands mainly include band councils or private businesses. On federal lands, regulated parties include private companies that own or operate systems in federal parks.

The survey was used to obtain information on existing halocarbon systems, cylinders and containers, the time needed to complete certain administrative obligations, and potential implications of repealing the FHR 2003 and replacing them with the proposed FHR 2020, including the possible need for new infrastructure or equipment upgrades. The survey also sought to assess the potential reductions in administrative burden associated with the proposed Regulations. Survey responses were complemented by estimates of the average time needed to complete similar requirements under other regulations administered by the Department that have been modified recently, such as the ODSHAR.

Regulated parties would assume initial one-time costs to familiarize themselves with the proposed FHR 2020 and ongoing costs associated with maintaining information in an inventory for large systems containing halocarbons. These costs would be offset by administrative cost savings, given that the proposed Regulations would remove duplicative record-keeping requirements, revise or remove obsolete provisions, and reduce reporting requirements. Overall, the proposed Regulations would lead to a decrease of approximately $145,000 in annualized average administrative costs.footnote 12 Changes to administrative requirements are estimated to save, on average, about three hours per year for 2 549 regulated parties each. This estimate corresponds to approximately $55 in annualized average cost savings per regulated party when allocated over the first 10 years of administrative cost impacts (2020–2030).footnote 13

Regulatory cooperation and alignment

The proposed FHR 2020 would maintain the exemptions concerning the use of halons in fire extinguishers found in aircraft, in line with the prohibition schedule set out in the CICA. Incorporating the ICAO standards relating to the replacement of halons in fire-extinguishing systems in civil aviation by reference would ensure that the proposed Regulations remain aligned with the Convention, which has been ratified by the vast majority of countries, in the event that amendments are made to its schedule.

Manufacturers required to comply with Annex 6 (Operation of Aircraft) and Annex 8 (Airworthiness of Aircraft) of the CICA would be responsible for changing the substances used in their fire-extinguishing systems, rather than the responsibility falling on airlines. The proposed FHR 2020, which would incorporate the requirements of the Convention, would only target new designs and aircraft. No direct incremental costs attributable to the proposed Regulations are expected for aircraft already designed or in operation prior to the coming into force of the CICA phase-out schedules. Airlines are generally assumed to be compliant with the requirements of the Convention for most of their systems containing halocarbons. If an airline was to assume costs to comply with the requirements of the CICA relating to fire-extinguishing systems, these costs would be attributable to the Convention, not to the proposed Regulations.

Further, the FHR 2003 require that service technicians obtain a certificate recognized by at least three Canadian provinces, or by the province in which the work of the service technician who holds the certificate is being done, in order to perform work under the Regulations. Yet, the training curriculum for technicians who service equipment containing halocarbons is similar across jurisdictions and the certification itself is similar between training providers. The proposed FHR 2020 would address discrepancies in the application of the Regulations across the country by changing the definition of “certified person” in the regulatory text. This change would allow technicians, especially those employed by the federal government, to be deployed to any province without the need to ensure that their certification is recognized by more than one province.

Strategic environmental assessment

The FHR 2003 are anticipated to result in minor positive environmental impacts. Specifically, they help reduce and prevent emissions of ozone-depleting substances and their halocarbon alternatives, most notably HFCs (very potent GHGs). These reduction and prevention measures are aimed at equipment that is located on Indigenous or federal lands, or that is owned by federal departments, boards or agencies, Crown corporations, or federal works or undertakings.

These expected environmental outcomes would not change as a result of the proposed Regulations. Therefore, the proposed FHR 2020 have been developed under the Pan-Canadian Framework on Clean Growth and Climate Change (the Pan-Canadian Framework). A strategic environmental assessment was completed in 2016 and concluded that regulatory policies developed under the Pan-Canadian Framework are expected to reduce GHG emissions. This outcome is in line with the goal in the 2019 to 2022 Federal Sustainable Development Strategy of effective action on climate change.footnote 14

Gender-based analysis plus

No gender-based analysis plus (GBA+) impacts have been identified for this proposal.

Implementation, compliance and enforcement, and service standards

The proposed FHR 2020 would come into force on the day on which they are registered. Information on the proposed Regulations would be provided on the Department’s website and updated periodically, as needed.footnote 15 Fact sheets and frequently asked questions with responses would be posted and updated on this website prior to the coming into force of the proposed Regulations.

The compliance promotion approach for the proposed FHR 2020 would be similar to the approach taken for the FHR 2003, which includes maintaining a presence on the Department’s website and responding to inquiries from stakeholders. As well, regional compliance promotion officers would continue their outreach activities to raise stakeholder awareness by including new and updated regulatory requirements in their compliance promotion material. The Department would conduct regular compliance promotion activities and each regional office is staffed with personnel who could respond to inquiries regarding the proposed Regulations.

As the proposed FHR 2020 are made under CEPA, implementation and enforcement would be undertaken by the Department in accordance with the Compliance and Enforcement Policy for CEPA.footnote 16 Enforcement officers would apply this policy when verifying compliance with the regulatory requirements.

Contacts

Nicole Folliet
Director
Chemical Production Division
Industrial Sectors and Chemicals Directorate
Environmental Protection Branch
Department of the Environment
351 Saint-Joseph Boulevard, 19th Floor
Gatineau, Quebec
K1A 0H3
Email: ec.gestionhalocarbures-halocarbonsmanagement.ec@canada.ca

Matthew Watkinson
Director
Regulatory Analysis and Valuation Division
Economic Analysis Directorate
Strategic Policy Branch
Department of the Environment
200 Sacré-Cœur Boulevard, 10th Floor
Gatineau, Quebec
K1A 0H3
Email: ec.darv-ravd.ec@canada.ca

PROPOSED REGULATORY TEXT

Notice is given, pursuant to subsection 332(1)footnote a of the Canadian Environmental Protection Act, 1999footnote b, that the Governor in Council proposes, pursuant to subsection 209(1)footnote c of that Act and pursuant to subsection 5(1) of the Environmental Violations Administrative Monetary Penalties Actfootnote d, to make the annexed Federal Halocarbon Regulations, 2020.

Any person may, within 60 days after the date of publication of this notice, file with the Minister of the Environment comments with respect to the proposed Regulations or a notice of objection requesting that a board of review be established under section 333 of the Canadian Environmental Protection Act, 1999 footnote b and stating the reasons for the objection. All comments and notices must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Director, Chemical Production Division, Department of the Environment, 351 Saint-Joseph Boulevard, Gatineau, Quebec K1A 0H3 (fax: 819‑938‑4218, email: ec.gestionhalocarbures-halocarbonsmanagement.ec@canada.ca).

A person who provides information to the Minister of the Environment may submit with the information a request for confidentiality under section 313 of the Canadian Environmental Protection Act, 1999 footnote b.

Ottawa, November 5, 2020

Julie Adair
Assistant Clerk of the Privy Council

Federal Halocarbon Regulations, 2020

Interpretation

Definitions

1 The following definitions apply in these Regulations.

air-conditioning system
means an air-conditioning system that has a compressor, a condenser, an evaporator and an expansion valve, and that contains or is designed to contain a halocarbon refrigerant. (système de climatisation)
certified person
means a person who holds a valid certificate recognized by at least one province indicating completion of an environmental awareness course in recycling, recovery and handling procedures in respect of halocarbon refrigerants. (personne accréditée)
container
means a container that contains or is designed to contain a halocarbon for the purpose of storage or transportation. (récipient)
fire-extinguishing cylinder
means a cylinder that contains or is designed to contain a halocarbon fire-extinguishing agent and includes a fire-extinguishing bottle used in the aviation sector. (cylindre d’extinction d’incendie)
fire-extinguishing system
means portable or fixed system containing or designed to contain a halocarbon fire-extinguishing agent. (système d’extinction d’incendie)
halocarbon
means a substance set out in Schedule 1, whether existing alone or in a mixture, and includes isomers of any such substance. (halocarbure)
installation
means, in the case of
  • (a) an air-conditioning system, refrigeration system or solvent system, the joining of two or more components that contain or are designed to contain a halocarbon essential to the operation of the system; and
  • (b) a fire-extinguishing system, the addition of a fire-extinguishing cylinder to the other components of the system in order to make the system operational. (installation)
large air-conditioning system
means an air-conditioning system that consists of
  • (a) a single refrigerant circuit that contains or is designed to contain more than 10 kg of halocarbon; or
  • (b) multiple refrigerant circuits one or more of which contains or is designed to contain more than 10 kg of halocarbon. (système de climatisation de grande capacité)
large refrigeration system
means a refrigeration system that consists of
  • (a) a single refrigerant circuit that contains or is designed to contain more than 10 kg of halocarbon; or
  • (b) multiple refrigerant circuits, one or more of which contains or is designed to contain more than 10 kg of halocarbon. (système de réfrigération de grande capacité)
military equipment
means a ship or aircraft, as defined in subsection 122(1) of the Canadian Environmental Protection Act, 1999 or a land vehicle designed to be used in combat or in a combat support role. (équipement militaire)
recycling,
in respect of a halocarbon, means recovery and, if needed, cleaning by a process such as filtering or drying, and reusing to charge an air-conditioning system, refrigeration system, solvent system, fire-extinguishing cylinder or a container. (recyclage)
refrigeration system
means a refrigeration system that has a compressor, a condenser, an evaporator and an expansion valve, and that contains or is designed to contain a halocarbon refrigerant. (système de réfrigération)
service
means any work on an air-conditioning system, a refrigeration system, a solvent system, a fire-extinguishing cylinder or a container that involves work on the components containing or designed to contain a halocarbon, such as charging a halocarbon, removing or reassembling one or more components of the halocarbon circuit, as well as detecting and repairing leaks. (entretien)
small air-conditioning system
means an air-conditioning system that consists of
  • (a) a single refrigerant circuit that contains or is designed to contain 10 kg or less of halocarbon; or
  • (b) multiple refrigerant circuits each of which contains or is designed to contain 10 kg or less of halocarbon. (système de climatisation de petite capacité)
small refrigeration system
means a refrigeration system that consists of
  • (a) a single refrigerant circuit that contains or is designed to contain 10 kg or less of halocarbon; or
  • (b) multiple refrigerant circuits each of which contains or is designed to contain 10 kg or less of halocarbon. (système de réfrigération de petite capacité)
solvent system
means a system that uses or is designed to use halocarbons as solvents, including cleaning applications. It does not include those systems or applications that use halocarbons as laboratory analytical standards or laboratory reagents or in a process in which they are converted to another substance or are generated but ultimately converted to a different substance. (système de solvants)

Application

Application

2 (1) These Regulations apply to air-conditioning systems, refrigeration systems, solvent systems, fire-extinguishing systems, fire extinguishing cylinders and containers located in Canada that are

Non-application

(2) These Regulations do not apply to foam products.

Prohibitions

Release of halocarbon

3 (1) A person must not release, or allow or cause the release of a halocarbon that is contained in

Non-application

(2) Subsection (1) does not apply if the release of a halocarbon:

Definition of reclamation

(3) In this section, reclamation, in respect of a halocarbon, means the recovery, reprocessing and upgrading through processes such as filtering, drying, distilling and treating chemically in order to restore the halocarbon to industry accepted reuse standards.

Installation or activation

4 A person must not install or activate an air-conditioning system or refrigeration system or a fire-extinguishing cylinder that contains or is designed to contain a halocarbon listed in any of items 1 to 9 of Schedule 1 unless

Solvent system — items 1 to 9 of Schedule 1

5 (1) A person must not install or use a solvent system that uses or is designed to use a halocarbon listed in any of items 1 to 9 of Schedule 1.

Solvent system — items 11 and 12 of Schedule 1

(2) A person must not install or use a solvent system that uses or is designed to use a halocarbon listed in item 11 or 12 of Schedule 1 unless authorized to do so by a permit issued under these Regulations.

Storage, transport or purchase

6 (1) A person must not store, transport or purchase a halocarbon unless it is in a container designed and manufactured to be refilled and to contain that specific type of halocarbon.

Non-application

(2) Subsection (1) does not apply in respect of halocarbons that are used as laboratory analytical standards or laboratory reagents.

Chiller

7 (1) A person must not operate a chiller that contains a halocarbon listed in any of items 1 to 9 of Schedule 1.

Definition of chiller

(2) In this section, chiller means an air-conditioning system or refrigeration system that has a compressor, an evaporator and a secondary coolant, but does not include an absorption chiller.

Purge system

8 A person must not install or operate a purge system, including any associated recovery equipment, unless the system emits less than 0.1 kg of halocarbons per kilogram of air purged to the environment.

Charging — leak detection

9 A person must not charge a halocarbon in an air-conditioning system, refrigeration system, solvent system, fire-extinguishing cylinder or a container for the purpose of leak testing the system, cylinder or container.

Charging halocarbons

10 Subject to section 11, a person must not charge with a halocarbon an air-conditioning system, refrigeration system, fire-extinguishing cylinder or a container unless,

Non-application of section 10

11 (1) If a leak is detected from an air-conditioning system, refrigeration system or a fire-extinguishing cylinder and it is necessary to charge it with a halocarbon to prevent an immediate danger to the environment or to human life or health, section 10 does not apply during the period in which the danger persists.

Notice

(2) If a system or cylinder is charged under the circumstances described in subsection (1),

Charging — air-conditioning and refrigeration

12 (1) A person must not charge an air-conditioning system or refrigeration system with a halocarbon listed in any of items 1 to 9 of Schedule 1.

Non-application

(2) Subsection (1) does not apply if the charge replaces a halocarbon that is recovered to service the system and the charge does not result in a net gain in the amount of halocarbon contained in the system.

Charging — fire-extinguishing cylinder

13 A person must not charge a fire-extinguishing cylinder with a halocarbon listed in any of items 1 to 9 of Schedule 1 unless

Installation, Servicing, Recovery and Withdrawal

Certified person

14 Only a certified person may install or service an air-conditioning system, refrigeration system, solvent system, fire-extinguishing cylinder or a container, or recover the halocarbon they contain.

Recovery of halocarbons

15 (1) The certified person who installs or services an air-conditioning system, refrigeration system, solvent system, fire-extinguishing cylinder or a container must recover any halocarbon that would otherwise be released during those procedures into a container designed to contain that specific type of halocarbon.

Recovery equipment

(2) The equipment used to recover halocarbons from a fire-extinguishing cylinder must have a rated transfer efficiency of at least 99%.

Permanently withdrawing from use

16 (1) Prior to permanently withdrawing from use any air-conditioning system, refrigeration system, solvent system, fire-extinguishing cylinder or a container, a certified person must recover all halocarbons contained in it into a container designed to contain that specific type of halocarbon.

Non-application

(2) Subsection (1) does not apply to a small air-conditioning system or small refrigeration system if the system is being transferred to a new owner, it is in operating condition and its transfer will not result in the release of a halocarbon.

Leaks and Leak Tests

Frequency of leak tests

17 The owner or person responsible for a large refrigeration system or large air-conditioning system or for a fire-extinguishing cylinder or a container that contains or is designed to contain more than 10 kg of halocarbon must conduct a leak test of its components that contain a halocarbon, at least once every calendar year and no more than 15 months since the previous leak test.

Leak — systems

18 As soon as practicable after a leak from an air-conditioning system or refrigeration system is detected, the owner or person responsible for the system must repair the leak or isolate the leaking portion of the system and recover the halocarbon from that portion, or recover the halocarbon from the system.

Leak — cylinder or container

19 The owner or person responsible for a fire-extinguishing cylinder or a container must, as soon as practicable after a leak is detected, repair the leak or recover the halocarbon from the cylinder or container.

Permits

Application for a permit

20 (1) If no technically or financially feasible alternative exists to the use of a halocarbon that could have a less harmful impact on the environment or on human life or health, the owner must submit to the Minister an application for a permit, on a form that the Minister provides, and that contains the information set out in Part 2 of Schedule 2, if an owner of a solvent system or a fire-extinguishing cylinder proposes to

Issuance of a permit

(2) If the information required under subsection (1) has been provided and the Minister is of the opinion that the issuance of the permit is justified, the Minister may issue a permit that is valid for one year beginning on the day of issuance in respect of a solvent system or valid for three years beginning on the day of issuance in respect of a fire-extinguishing cylinder.

Cancellation of a permit

21 (1) The Minister may cancel a permit issued under subsection 20(2) if any false or misleading information has been submitted in support of the application for the permit.

Notice of cancellation

(2) Before cancelling a permit, the Minister must notify the permit holder of the proposed cancellation and the reasons for it and give them an opportunity to make verbal or written representations in respect of the cancellation.

Inventory, Activity Logs and Reports

Creation of inventory

22 Before the first anniversary of the day on which these Regulations come into force, the owner or person responsible for a large air-conditioning system, large refrigeration system or solvent system, or for a fire-extinguishing cylinder or a container that contains or is designed to contain more than 10 kg of halocarbon must establish and maintain an inventory that includes the information set out in Part 3 of Schedule 2.

Activity log — large

23 (1) The owner or person responsible for a large air-conditioning system, a large refrigeration system or solvent system, or for a fire-extinguishing cylinder or a container that contains or is designed to contain more than 10 kg of halocarbon must maintain an activity log that contains the information set out in Part 4 of Schedule 2 in which an entry is recorded for each time the system, cylinder or container is installed, serviced or permanently withdrawn from use or ownership has been transferred.

Activity log — small

(2) The owner or person responsible for a small air-conditioning system, small refrigeration system or solvent system, or for a fire-extinguishing cylinder or a container that contains or is designed to contain 10 kg or less of halocarbon, must maintain an activity log that contains the information set out in Part 4 of Schedule 2 in which an entry is recorded for each time the system, cylinder or container is serviced.

Reports — release of 100 kg or more

24 In the event of a release of 100 kg or more of halocarbon from an air-conditioning system, refrigeration system, solvent system, fire-extinguishing cylinder or a container, the owner or person responsible for the system, cylinder or container must submit the following reports to the Minister, within the applicable period:

Report — release of less than 100 kg

25 In the event of a release of more than 10 kg but less than 100 kg of a halocarbon from an air-conditioning system, refrigeration system, solvent system, fire-extinguishing cylinder or a container, the owner or person responsible for the system, cylinder or container must submit a report in a paper format or in an electronic format compatible with that used by the Minister, containing the information set out in Part 6 of Schedule 2 within the applicable period:

Record-keeping

Retention of documents

26 (1) The owner or person responsible for an air-conditioning system, refrigeration system, solvent system, fire-extinguishing cylinder or a container must keep on site where the system, cylinder or container is located all documents or copies of those documents required under these Regulations for a period of at least five years after the day on which they are prepared or submitted, and must provide them to the Minister on request.

Retention at principal place of business

(2) The owner or person referred to in subsection (1) must keep at their principal place of business in Canada a copy of the documents for each system, cylinder or container that is located in a means of transportation, on a site where access is limited for at least four months per year or on a site where the owner or person responsible for them is not present regularly, and must provide them to the Minister on request.

Consequential Amendments

Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999)

27 Item 16 of the Schedule to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999)footnote 17 is replaced by the following:

Item

Column 1

Regulations

Column 2

Provisions

16

Federal Halocarbon Regulations, 2020

(a) section 3

(b) section 4

(c) subsections 5(1) and (2)

Environmental Violations Administrative Monetary Penalties Regulations

28 Division 9 of Part 5 of Schedule 1 to the Environmental Violations Administrative Monetary Penalties Regulationsfootnote 18 is replaced by the following:

DIVISION 9

Federal Halocarbon Regulations, 2020

Item

Column 1

Provision

Column 2

Violation Type
1 3(1)(a) C
2 3(1)(b) C
3 3(1)(c) C
4 3(1)(d) C
5 4 A
6 5(1) C
7 5(2) C
8 6(1) B
9 7 B
10 8 B
11 9 B
12 10 B
13 11(2)(a) A
14 11(2)(b) A
15 12(1) C
16 13 C
17 14 A
18 15(1) B
19 16(1) B
20 17 A
21 18 C
22 19 C
23 22 A
24 23(1) A
25 23(2) A
26 24(a) A
27 24(b) A
28 25 A
29 26(1) A
30 26(2) A

Repeal

29 The Federal Halocarbon Regulations, 2003footnote 19 are repealed.

Coming into Force

Registration

30 These Regulations come into force on the day on which they are registered.

SCHEDULE 1

(Sections 1, 4 and 5, subsections 7(1) and 12(1) and section 13)

List of Halocarbons
Item Halocarbon
1 Tetrachloromethane (carbon tetrachloride)
2 1,1,1-trichloroethane (methyl chloroform), except 1,1,2-trichloroethane
3 Chlorofluorocarbons (CFC)
4 Bromochlorodifluoromethane (Halon 1211)
5 Bromotrifluoromethane (Halon 1301)
6 Dibromotetrafluoroethane (Halon 2402)
7 Bromofluorocarbons except those set out in items 4 to 6
8 Bromochloromethane (Halon 1011)
9 Hydrobromofluorocarbons (HBFC)
10 Hydrochlorofluorocarbons (HCFC)
11 Hydrofluorocarbons (HFC)
12 Perfluorocarbons (PFC)

SCHEDULE 2

(Paragraph 11(2)(b), subsection 20(1), sections 22 and 23, paragraphs 24(a) and (b) and section 25)

Information to be Contained in Document

PART 1

Halocarbon Charging Report

PART 2

Application for a Permit

PART 3

Inventory

PART 4

Activity Log

PART 5

Halocarbon Release Report (paragraph 24(a))

PART 6

Halocarbon Release Report (paragraph 24(b) and section 25)