Regulations Amending the Explosives Regulations, 2013: SOR/2024-77

Canada Gazette, Part II, Volume 158, Number 11

Registration
SOR/2024-77 May 3, 2024

EXPLOSIVES ACT

P.C. 2024-471 May 3, 2024

Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, makes the annexed Regulations Amending the Explosives Regulations, 2013 under section 5footnote a of the Explosives Act footnote b.

Regulations Amending the Explosives Regulations, 2013

Amendments

1 Sections 1 and 2 of the Explosives Regulations, 2013 footnote 1 are replaced by the following:

Overview

1 This Part sets out the scheme and application of these Regulations and exempts some explosives from provisions of the Explosives Act. It also defines certain terms that are used in the Regulations, including “explosives”.

2 (1) Subsection 6(1) of the Regulations is amended by striking out “and” at the end of paragraph (b) and by adding the following after paragraph (b):

(2) Subsection 6(3) of the Regulations is amended by adding the following in alphabetical order:

misfire
means the complete or partial failure of a charge to explode as planned. (raté)

3 Section 8 of the Regulations is replaced by the following:

Electronic notice

8 Any document, other than a document referred to in subsection 173(3) or (4) or 183(3) or section 426, and any information that is required by these Regulations to be in writing, may be delivered in hard copy or by electronic means.

4 Section 10 of the Regulations is replaced by the following:

Age restriction

10 (1) Unless otherwise indicated in these Regulations, a person must be at least 18 years old to carry out an activity involving an explosive.

Exceptions

(2) Subsection (1) does not apply to the following persons:

5 (1) Paragraph 25(h) of the Regulations is replaced by the following:

(2) Section 25 of the Regulations is amended by striking out “and” at the end of paragraph (i) and by adding the following after paragraph (j):

6 Paragraph 28(a) of the Regulations is replaced by the following:

7 (1) Paragraph 29(a) of the Regulations is replaced by the following:

(2) Section 29 of the Regulations is amended by striking out “and” at the end of paragraph (o), by adding “and” at the end of paragraph (p) and by adding the following after paragraph (p):

8 Paragraph 30(a) of the Regulations is replaced by the following:

9 Section 33 of the Regulations is replaced by the following:

Authorization for specified period

33 The Chief Inspector of Explosives must authorize an explosive for a specified period if the Chief Inspector determines, on the basis of the information in the application and the results of one or more of the following tests, that the explosive can be safely manufactured, handled, stored, transported, used and destroyed:

10 (1) Paragraph 36(2)(f) of the Regulations is amended by adding the following after subparagraph (iv):

(2) Subsection 36(4) of the Regulations is replaced by the following:

UN number

(4) Each authorized explosive may be assigned a UN number as set out in column 1 of Schedule 1 to the Transportation of Dangerous Goods Regulations on the basis of its type, hazard category and the circumstances in which it will be used.

11 The portion of items 5 and 6 of the table to section 45 of the English version of the Regulations in column 1 is replaced by the following:
Item

Column 1

Explosive

5 Percussion caps for small arms cartridges — imported or exported
6 Percussion caps for small arms cartridges — transported in transit

12 The Regulations are amended by adding the following after section 45:

Importation

45.1 A person may import explosives without a permit if the following conditions are met:

13 Paragraphs 46(1)(a) and (b) of the Regulations are replaced by the following:

14 (1) Paragraph 47(5)(a) of the Regulations is replaced by the following:

(2) Paragraph 47(5)(c) of the Regulations is replaced by the following:

(3) Paragraph 47(7)(a) of the Regulations is replaced by the following:

15 (1) Paragraphs 48(a) and (b) of the Regulations are replaced by the following:

(2) Paragraph 48(h) of the Regulations is replaced by the following:

16 (1) Paragraph 49(1)(a) of the Regulations is replaced by the following:

(2) Paragraph 49(2)(a) of the Regulations is replaced by the following:

17 (1) Paragraphs 50(a) and (b) of the Regulations are replaced by the following:

(2) Paragraph 50(l) of the Regulations is replaced by the following:

18 Paragraph 51(3)(a) of the Regulations is replaced by the following:

19 (1) Paragraph 60(1)(a) of the Regulations is replaced by the following:

(2) Paragraph 60(1)(e) of the Regulations is replaced by the following:

(3) Paragraph 60(4)(a) of the Regulations is replaced by the following:

20 (1) Paragraph 74(3)(a) of the Regulations is replaced by the following:

(2) Paragraph 74(3)(c) of the Regulations is replaced by the following:

(3) Subsection 74(4) of the Regulations is replaced by the following:

Information on industrial explosives

(4) The manufacturer’s division 1 factory licence number must be printed in a legible and permanent manner on the outer packaging or container of every industrial explosive.

Exception

(5) Subsection (4) does not apply to

21 (1) The portion of section 81 of the French version of the Regulations before paragraph (a) is replaced by the following:

Compétences des employés

81 Chaque employé à la fabrique ou à un site satellite est, selon le cas :

(2) Paragraph 81(b) of the Regulations is replaced by the following:

22 (1) Paragraphs 90(1)(a) and (b) of the Regulations are replaced by the following:

(2) Subsection 90(1) of the Regulations is amended by adding the following after paragraph (c):

23 Subsection 94(3) of the Regulations is replaced by the following:

Loaded units to be attended

(3) A mobile process unit that contains explosives must be attended in person except when it is at the factory or a satellite site or when it is awaiting towing or repair and is secured in an access-controlled mine site or quarry.

24 Paragraph 97(1)(b) of the Regulations is replaced by the following:

25 Subsections 98(9) and (10) of the Regulations are replaced by the following:

Maintenance record and work permits

(9) A maintenance record of all maintenance and repair work done to a mobile process unit, or to any manufacturing equipment in or on the unit whose malfunction could increase the likelihood of an ignition, must be kept for two years after the date on which the last entry is made. The work permits for the maintenance and repair work must also be kept for two years after the date on which the work is completed. The maintenance record and permits must be kept at the factory.

Progressive cavity pump logbook and maintenance record

(10) For each progressive cavity pump, a separate logbook that sets out the operating history of the pump and a separate maintenance record that sets out the maintenance and repair work done to it must be kept at the factory for the life of the pump.

26 Paragraph 104(b) of the Regulations is replaced by the following:

27 Subsection 107(1) of the Regulations is amended by adding the following after paragraph (f):

28 Paragraph 109(1)(a) of the Regulations is replaced by the following:

29 (1) Paragraph 117(2)(a) of the Regulations is replaced by the following:

(2) Paragraph 117(2)(c) of the Regulations is replaced by the following:

30 Paragraph 122(1)(b) of the Regulations is replaced by the following:

31 (1) Paragraphs 127(a) and (b) of the Regulations are replaced by the following:

(2) Section 127 of the Regulations is amended by adding the following after paragraph (c):

32 Paragraph 132(1)(b) of the Regulations is replaced by the following:

33 (1) Subsection 138(1) of the Regulations is replaced by the following:

Multi-ingredient kits

138 (1) A person may mix together the ingredients of a multi-ingredient kit if they comply with subsection (2) and if the kit is not a reactive target.

(2) Paragraph 138(2)(e) of the Regulations is replaced by the following:

34 The Regulations are amended by adding the following after section 138:

Reactive targets

138.1 (1) A person may mix together the ingredients of a reactive target kit if they comply with subsection (2).

Requirements

(2) The person who carries out the activity must ensure that the following requirements are met:

35 (1) Subsection 140(1) of the Regulations is replaced by the following:

Emergency response assistance plan

140 (1) A person may pump explosives numbered UN 0332, as classified by the Chief Inspector of Explosives under the Explosives Act, and explosives numbered UN 3375 in activating an emergency response assistance plan approved by the Minister of Transport under the Transportation of Dangerous Goods Act, 1992 if they comply with subsection (2).

(2) Paragraph 140(2)(b) of the Regulations is replaced by the following:

(3) Paragraph 140(2)(d) of the Regulations is replaced by the following:

36 Subsection 141(1) of the French version of the Regulations is replaced by the following:

Explosifs industriels

141 (1) Toute personne qui se conforme au paragraphe (2) peut détruire des explosifs industriels détériorés, périmés ou ayant eu des ratés en les plaçant dans des trous de sautage avec d’autres explosifs et en allumant ces derniers.

37 (1) Paragraph 145(1)(a) of the Regulations is replaced by the following:

(2) Subsection 145(7) of the Regulations is replaced by the following:

Identifier

(7) Every magazine and vulnerable place that is shown on a site plan must be identified by a number, letter or distinctive name, which must be used to identify the magazine or vulnerable place on the site plan and in the site description. The identifier of the magazine must be posted on the exterior of the magazine.

38 (1) Subsections 150(1) and (2) of the French version of the Regulations are replaced by the following:

Empilage

150 (1) Les paquets et les contenants d’explosifs sont empilés de manière à ne pas se renverser, s’effondrer, se déformer, se déchirer ou s’écraser. La hauteur de la pile ne dépasse pas la ligne d’empilage prévue pour la poudrière.

Utilisation interdite des paquets

(2) Les paquets et les contenants d’explosifs ne peuvent servir de support à des convoyeurs ou à des rampes.

(2) Subsection 150(4) of the Regulations is replaced by the following:

Opening packages

(4) Packages or containers that are made from wood or have metal fasteners or strapping must not be opened in a magazine. Other packages or containers may be opened in a magazine for inspection or to remove explosives or to add an explosive of the same product name, but not more than two packages or containers may be opened at a time.

(3) Subsection 150(5) of the French version of the Regulations is replaced by the following:

Paquets ouverts

(5) Les paquets ou les contenants d’explosifs qui sont ouverts à l’extérieur de la poudrière sont, avant d’y être placés, propres, secs et exempts de petites matières abrasives et de toute autre contamination.

39 Paragraph 152(e) of the French version of the Regulations is replaced by the following:

40 Paragraph 162(1)(a) of the Regulations is replaced by the following:

41 Section 164 of the Regulations is replaced by the following:

Overview

164 This Part sets out certain terms and conditions that apply to holders of the documents (licences, permits and certificates) issued by the Minister under section 7 of the Explosives Act and the grounds upon which the Minister may refuse to issue them. It also sets out the procedures for changing or renewing those documents and provides for their suspension and cancellation.

Refusal to Issue

Refusal of Minister

164.1 (1) The Minister may, by written notice giving reasons, refuse to issue a licence, permit or certificate if the Minister has reasonable grounds to believe that issuing the licence, permit or certificate would constitute a risk to the safety or security of persons or property.

Request for review

(2) An applicant may, within 30 days after the day on which they receive a notice of refusal from the Minister, send the Minister a written request for a review of the refusal on the grounds that the information on which the refusal was based is incorrect, accompanied by any additional documents or any other information in writing that is necessary to support the request.

Decision — request for review

(3) After reviewing the request under subsection (2), the Minister must

42 Section 170 of the Regulations is repealed.

43 (1) Paragraph 172(1)(a) of the Regulations is replaced by the following:

(2) Paragraph 172(2)(a) of the Regulations is replaced by the following:

44 The Regulations are amended by adding the following after section 173:

Cancellation by Minister

173.1 (1) The Minister may, by written notice giving reasons, cancel a licence, permit or certificate if the Minister has reasonable grounds to believe that the holder of the licence, permit or certificate no longer meets the conditions of the approval letter issued by the Minister under section 183 or equivalent document referred to in Part 8 or if the Minister has reasonable grounds to believe that the activities subject to the licence, permit or certificate would constitute a risk to the safety or security of persons or property.

Request for review

(2) A holder of a licence, permit or certificate may, within 30 days after the day on which they receive a notice of cancellation from the Minister, send the Minister a written request for a review of the cancellation on the grounds that the information on which the cancellation was based is incorrect, accompanied by any additional documents or any other information in writing that is necessary to support the request.

Decision — request for review

(3) After reviewing the request under subsection (2), the Minister must

45 (1) The portion of the definition equivalent document in subsection 175(1) of the Regulations before paragraph (a) is replaced by the following:

equivalent document
means a security clearance, issued by a competent authority, that has not expired or been suspended or withdrawn, including

(2) The definition equivalent document in subsection 175(1) of the Regulations is amended by striking out “or” at the end of paragraph (d), by adding “or” at the end of paragraph (e) and by adding the following after paragraph (e):

46 Subsection 179(2) of the Regulations is replaced by the following:

Exception — supervised person

(2) Subsection (1) does not apply in respect of a person who does not hold an equivalent document, has applied for an approval letter and is still waiting for a response if, when they have access to a high hazard explosive, they are at all times under the direct supervision of another person who has an approval letter or equivalent document.

47 (1) Subsection 182(1) of the Regulations is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

(2) Subsection 182(2) of the Regulations is replaced by the following:

Criminal record check

(2) The application must include the original or a certified copy of a criminal record check carried out on the applicant within one year before the date on which the application is received by the Minister, or if the applicant resides outside of Canada, a certified police certificate from their country of origin dated not more than one year before the date on which the application is received by the Minister or a valid Canadian work permit.

Additional information

(3) The Chief Inspector of Explosives may request that a person who has submitted an application for an approval letter provide any additional information or any document that is necessary to enable the Minister to determine whether to issue the approval letter.

48 (1) The portion of paragraph 183(2)(b) of the Regulations before subparagraph (i) is replaced by the following:

(2) Section 183 of the Regulations is amended by adding the following after subsection (2):

Other grounds of refusal

(2.1) The Minister must refuse to issue an approval letter and must give the applicant written notice giving reasons of the refusal if

(3) Subsection 183(3) of the Regulations is replaced by the following:

Request for review

(3) An applicant may, within 30 days after the day on which they receive a notice of refusal from the Minister, send the Minister a written request for a review of the refusal on the grounds that the information on which the refusal was based is incorrect, accompanied by any additional documents or any other information in writing that is necessary to support the request.

49 The Regulations are amended by adding the following after section 183:

Cancellation

183.1 (1) The Minister may by written notice with reasons cancel the approval letter referred to in section 182 if one of the circumstances referred to in paragraph 183(2)(a) or (b) applies to the holder of the letter or on either grounds referred to in subsection 183(2.1).

Additional information

(2) The Chief Inspector of Explosives may request that a person who has submitted an application for an approval letter provide any additional information or any document that is necessary to enable the Minister to determine whether to cancel the approval letter.

50 Paragraph 185(2)(a) of the Regulations is replaced by the following:

51 Section 186 of the Regulations is replaced by the following:

Overview

186 This Part sets out the requirements for transporting explosives, including in transit transportation and the loading and unloading of explosives, that must be met by shippers, carriers and drivers. When certain explosives are to be shipped, the requirements of section 190 apply. In all other cases, the requirements of sections 191 to 201 (dealing with transportation by vehicle) and sections 202 to 203.1 (dealing with transportation by other means) apply.

52 Subsection 190(2) of the English version of the Regulations is replaced by the following:

Requirements

(2) Despite subsection (1), the carrier and driver must ensure that the explosives are transported in packaging or a container that is designed, constructed, filled, closed, secured and maintained so that under normal conditions of transport the likelihood of an ignition is minimized.

53 (1) Paragraph 191(1)(a) of the Regulations is replaced by the following:

(2) Subsection 191(3) of the Regulations is amended by striking out “or” at the end of paragraph (a) and by adding the following after paragraph (b):

(3) Subsection 191(4) of the Regulations is replaced by the following:

Oversized load

(4) If an explosive article or equipment that is contaminated with an explosive substance is too large to be contained in a fully enclosed portion of a vehicle or an intermodal container, the article or equipment may be transported on a flatbed if the carrier obtains a permit to do so issued by the Minister under paragraph 7(1)(b) of the Explosives Act. The carrier and the driver must ensure that the article or equipment is secured to the flatbed and, if feasible, covered.

(4) Paragraph 191(5)(a) of the Regulations is replaced by the following:

(5) Subsections 191(6) and (7) of the Regulations are replaced by the following:

Exception

(5.1) Subsections (1), (2) and (4) do not apply to jet perforating guns if they

Requirement — material

(6) If a part of a portion of the vehicle that will contain explosives could come into contact with the explosives or their packaging during transport and if that part consists of a material that could increase the likelihood of an ignition if contact were to occur, the carrier must ensure that the part is covered with material that will prevent the contact from occurring.

(6) Subsections 191(9) to (12) of the Regulations are replaced by the following:

Dangerous goods marks

(12) The carrier and the driver must ensure that any dangerous goods marks that are required by the Transportation of Dangerous Goods Regulations to be displayed when the vehicle is transporting explosives on a public highway are also displayed when the vehicle contains explosives and is not on a public highway.

54 Paragraph 192(4)(a) of the Regulations is replaced by the following:

55 Subsection 193(1) of the Regulations is replaced by the following:

Sound mechanical condition

193 (1) The carrier must ensure that the following requirements are met:

56 Subsection 194(3) of the Regulations is repealed.

57 (1) Subsection 196(5) of the Regulations is replaced by the following:

No stopping en route

(5) The driver of a vehicle transporting explosives must not stop en route unnecessarily. If a stop is necessary, the driver must stop for no longer than required under the circumstances and must park the vehicle away from any place where there is an open flame, match or any other thing that could increase the likelihood of an ignition, and, in order to ensure that the risk of harm to people and property is as low as reasonably practicable, the driver must park the vehicle away from:

Exception

(5.1) Despite subsection (5), a vehicle transporting no more than 25 kg of high explosives (type E) and no more than 100 detonators (type I), may be parked if the following requirements are met:

(2) Subsection 196(9) of the Regulations is repealed.

58 (1) Subsection 198(1) of the Regulations is replaced by the following:

Tracking and communication system

198 (1) If a vehicle — other than a vehicle in which a manufacturing operation may be carried out and that remains on a mine site or quarry while transporting explosives referred to in subsection (2) — is used to transport 1 000 or more detonators or at least 2 000 kg of explosives referred to in subsection (2), the carrier must ensure that it is equipped with a tracking and communication system.

(2) Paragraph 198(2)(a) of the Regulations is replaced by the following:

(3) The portion of paragraph 198(2)(b) of the Regulations before subparagraph (i) is replaced by the following:

(4) Subsection 198(2) of the Regulations is amended by striking out “or” at the end of subparagraph 198(2)(b)(xiii) and by adding the following after paragraph (b):

59 (1) Subsections 199(1) and (2) of the Regulations are replaced by the following:

Vehicle attended

199 (1) The carrier and the driver of a vehicle that contains explosives must ensure that it is attended in person when it is not at a factory or satellite site.

Exception

(2) Despite subsection (1), up to 25 kg of high explosives (type E) and up to 100 detonators (type I) may be left unattended in a vehicle if the requirements set out in subsections 196(5) or (5.1) have been met and if

(2) Section 199 of the Regulations is amended by adding the following after subsection (3):

Electronic monitoring

(4) A vehicle containing explosives numbered UN 0332 or UN 3375 that are transported in bulk may be attended using electronic means if the following requirements are met:

60 Sections 200 and 201 of the Regulations are replaced by the following:

Accidents and incidents

201 (1) The driver of a vehicle that contains explosives must, as soon as the circumstances permit,

Report

(2) In the event of an accident or incident referred to in paragraph (1)(b), the carrier must, as soon as the circumstances permit,

61 (1) Subsection 217(1) of the Regulations is replaced by the following:

Sale — authorized buyer

217 (1) A seller may sell industrial explosives only to a buyer who holds a licence or a manufacturing certificate or who is authorized by a competent provincial or territorial authority to use, keep or store industrial explosives at a mine site or quarry.

(2) Section 217 of the Regulations is amended by adding the following after subsection (2):

Exception

(3) Subsection (2) does not apply to explosives in bulk that are loaded into prepared boreholes.

62 (1) The portion of subsection 218(1) of the French version of the Regulations before paragraph (a) is replaced by the following:

Inscriptions sur l’emballage

218 (1) Le vendeur inscrit le numéro de la licence, du certificat de fabrication ou de l’autorisation provinciale ou territoriale de l’acheteur de manière claire et indélébile :

(2) Paragraphs 218(1)(a) and (b) of the Regulations are replaced by the following:

(3) Paragraphs 218(2)(a) to (d) of the Regulations are replaced by the following:

63 Paragraph 219(a) of the French version of the Regulations is replaced by the following:

64 (1) Paragraph 220(1)(b) of the Regulations is replaced by the following:

(2) Subsection 220(4) of the Regulations is replaced by the following:

Exception

(4) Subsection (3) does not apply to containers holding explosives in bulk.

65 Sections 221 and 222 of the Regulations are replaced by the following:

Acquisition

221 A user may acquire and store industrial explosives if they hold a licence or a manufacturing certificate or are authorized by a competent provincial or territorial authority to use, keep or store such explosives at a mine site or quarry. A user who acquires industrial explosives must comply with this Part.

Information on packaging

221.1 (1) A user who holds a magazine licence and imports industrial explosives must mark the number of the buyer’s licence, manufacturing certificate or provincial or territorial authorization in a clear and permanent manner

Exceptions

(2) Subsection (1) does not apply to

Information on packaging — acquisition

222 (1) A user who acquires industrial explosives that are in sealed outer packaging or a sealed container must, after opening the packaging or container, mark the number of their licence, manufacturing certificate or provincial or territorial authorization in a clear and permanent manner on the inner packaging of each explosive or on each reel of detonating cord.

Information on packaging — importation

(2) A user who imports industrial explosives must mark the number of their licence, manufacturing certificate or provincial or territorial authorization in a clear and permanent manner

Exception

(3) Subsections (1) and (2) do not apply to

66 (1) Paragraph 224(1)(b) of the Regulations is replaced by the following:

(2) Subsection 224(4) of the Regulations is replaced by the following:

Exception — subsections (1) and (2)

(4) Subsections (1) and (2) do not apply to

Exception — subsection (3)

(5) Subsection (3) does not apply to intermediate bulk containers holding industrial explosives in bulk or containers holding industrial explosives in bulk.

67 Section 227 of the Regulations is replaced by the following:

Distributor and retailer

227 A distributor or retailer may acquire, store and sell blank cartridges for tools. A distributor or retailer who acquires blank cartridges for tools must comply with this Division.

68 Section 228 of the Regulations is replaced by the following:

Seller

228 A seller must store their blank cartridges for tools in a sales establishment and must ensure that the requirements of sections 229 to 231 are met.

69 Paragraphs 231(2)(a) to (k) of the Regulations are replaced by the following:

70 Section 232 of the Regulations is repealed.

71 Sections 234 and 235 of the Regulations are replaced by the following:

Acquisition

234 A user may acquire and store blank cartridges for tools. A user who acquires or stores blank cartridges for tools must comply with this Division.

Storage

235 A user must store their blank cartridges for tools in a dwelling or a storage unit and must ensure that the storage requirements of section 237 are met.

72 Paragraphs 237(2)(a) to (k) of the Regulations are replaced by the following:

73 Section 261 of the Regulations is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e):

74 The Regulations are amended by adding the following after section 262:

Acquisition — reactive targets

262.1 A user who acquires a reactive target must hold a Firearms Possession and Acquisition Licence issued under the Firearms Act.

Selling — reactive targets

262.2 A seller may sell reactive targets only to a user who holds a Firearms Possession and Acquisition Licence issued under the Firearms Act.

75 Section 264 of the Regulations is replaced by the following:

Maximum quantity

264 (1) No more than 20 kg of high-hazard special purpose explosives other than reactive targets may be stored at any one time.

Reactive targets

(2) No more than 6 kg of reactive targets may be stored at any one time.

76 Paragraphs 265(a) to (k) of the Regulations are replaced by the following:

77 Subsection 266(4) of the Regulations is replaced by the following:

Record

(4) If any expired marine flares are returned during a calendar year, the distributor must keep for two years after the date of the return, a record that sets out the number of each type, whether type S.1 or S.2, that were returned and the number of each type that were destroyed.

78 Section 267 of the English version of the Regulations is replaced by the following:

Overview

267 This Part authorizes the acquisition, storage and sale of small arms cartridges and the manufacture of small arms cartridges and black powder cartouches. Division 1 sets out the rules for sellers and users of commercially manufactured small arms cartridges (type C.1). It also sets out rules for storing small arms cartridges that are manufactured under Division 2. Division 2 sets out the rules for sellers and users of propellant powder (type P) and percussion caps and primers (type C.3) and for manufacturers of small arms cartridges and black powder cartouches.

79 Paragraphs 275(2)(a) to (l) of the Regulations are replaced by the following:

80 Paragraphs 281(2)(a) to (l) of the Regulations are replaced by the following:

81 Subsection 282(2) of the Regulations is replaced by the following:

Propellant powder

(2) A reference in this Division to a mass of propellant powder does not include propellant powder that is in a small arms cartridge, percussion cap or primer.

82 Subsection 284(1) of the Regulations is replaced by the following:

Licensed seller

284 (1) A seller who holds a licence must store their propellant powder and percussion caps in the magazine specified in their licence and ensure that the requirements of section 286 are met.

83 The Regulations are amended by adding the following after section 286:

Original packaging

286.1 A seller may sell percussion caps only if they are in their original packaging.

84 (1) Section 287 of the Regulations is amended by adding the following after subsection (2):

Original container

(2.1) Black powder and smokeless powder must be stored in their original containers. No more than 500 g of black powder may be stored in a container.

(2) Paragraph 287(5)(a) of the Regulations is replaced by the following:

(3) Subsection 287(6) of the Regulations is replaced by the following:

Detached storage unit

(6) The maximum quantity of black powder and smokeless powder that may be stored at any one time in storage units that are not attached to a dwelling, whether in a single unit or in several, is 25 kg and 75 kg, respectively.

85 Paragraphs 288(2)(a) to (l) of the Regulations are replaced by the following:

86 Sections 290 and 291 of the Regulations are replaced by the following:

Notification of Chief Inspector

290 A retailer who does not hold a licence must, before beginning to sell propellant powder, send the Chief Inspector of Explosives a written notice that sets out their name, address, telephone number and email address and the date on which they will begin to sell. If such a retailer stops selling propellant powder, they must send the Chief Inspector a written notice to that effect as soon as the circumstances permit.

87 The portion of subsection 294(1) of the Regulations before paragraph (a) is replaced by the following:

Identification

294 (1) Before selling propellant powder to a buyer, the seller must require the buyer to provide their valid fireworks operator certificate — pyrotechnician or Firearms Possession and Acquisition Licence issued under the Firearms Act — or, in the case of buyer buying on behalf of a public service agency, the public agency identification number assigned under paragraph 7(1)(a) of the Public Agents Firearms Regulations — as well as to establish their identity by providing

88 (1) Paragraph 295(a) of the Regulations is replaced by the following:

(2) Section 295 of the Regulations is amended by adding the following after paragraph (b):

89 Subsection 297(1) of the Regulations is replaced by the following:

Licensed user

297 (1) A user who holds a licence must store their propellant powder and black powder cartouches in the magazine specified in their licence.

90 Subsection 299(3) of the Regulations is replaced by the following:

Black powder

(3) Black powder must be stored in its original container with no more than 500 g of black powder per container, in small arms cartridges or in black powder cartouches.

91 Section 303 of the Regulations is replaced by the following:

Detached storage unit

303 The maximum quantity of black powder or smokeless powder that may be stored at any one time in storage units that are not attached to a dwelling, whether in a single unit or in several, is 25 kg and 75 kg, respectively.

92 Paragraphs 304(2)(a) to (l) of the Regulations are replaced by the following:

93 The definition trousse de rechargement in subsection 307(1) of the French version of the Regulations is replaced by the following:

trousse de rechargement
Paquet qui contient du propergol solide et d’autres composants conçus pour être utilisés dans un moteur de fusée rechargeable. (reloading kit)

94 Section 334 of the Regulations and the heading “Consumer Fireworks” before it are replaced by the following:

Consumer Fireworks and Novelty Devices

Overview

334 This Part authorizes the acquisition, storage and sale of consumer fireworks (type F.1) and novelty devices (type F.5) and regulates their use. Division 1 sets out rules for sellers and Division 2 sets out rules for users.

95 (1) The definitions distributor, licence, retailer and user in subsection 335(1) of the Regulations are replaced by the following:

distributor
means a person who sells consumer fireworks or novelty devices to other distributors or to retailers, whether or not they sell to users. (distributeur)
licence
means a licence that authorizes the storage of consumer fireworks or novelty devices. (licence)
retailer
means a person, other than a distributor, who sells consumer fireworks or novelty devices. (détaillant)
user
means a person who acquires consumer fireworks or novelty devices for use. (utilisateur)

(2) Subsection 335(1) of the Regulations is amended by adding the following in alphabetical order:

novelty device
means a device that produces limited visible or audible effects, contains small amounts of pyrotechnic or explosive composition and is classified as a type F.5 explosive. (dispositif de fantaisie)

(3) Paragraph 335(2)(a) of the French version of the Regulations is replaced by the following:

(4) Section 335 of the Regulations is amended by adding the following after subsection (2):

Storage — novelty devices

(3) For the purposes of this Part, novelty devices are stored in a sales establishment if they are

96 Sections 336 and 337 of the Regulations are replaced by the following:

Consumer fireworks or novelty devices — quantity

336 A reference to a mass of consumer fireworks or a mass of novelty devices in this Part is a reference to their gross mass (the mass of the consumer fireworks or the mass of the novelty devices plus the mass of any packaging or container).

Prohibition on use

337 Except as authorized by this Part, it is prohibited for a person to use

97 Section 338 of the Regulations is replaced by the following:

Distributor

338 (1) A distributor may acquire, store and sell consumer fireworks or novelty devices if they hold a licence. A distributor who acquires consumer fireworks or novelty devices must comply with this Division.

Retailer

(2) A retailer may acquire, store and sell consumer fireworks or novelty devices, whether or not they hold a licence. A retailer who acquires consumer fireworks or novelty devices must comply with this Division

98 Sections 339 and 340 of the Regulations are replaced by the following:

No sale from dwelling

339 A seller must not sell

Sales establishment – requirements

340 A seller must ensure that their sales establishment meets the following requirements:

99 (1) The portion of paragraph 341(2)(b) of the Regulations before subparagraph (i) is replaced by the following:

(2) Paragraph 341(3)(b) of the English version of the Regulations is replaced by the following:

(3) Paragraph 341(3)(c) of the Regulations is replaced by the following:

100 Section 342 of the Regulations is replaced by the following:

Licence holder

342 (1) A seller who holds a licence must store all their consumer fireworks in the magazine specified in their licence and ensure that the requirements respecting consumer fireworks in sections 343 to 345, 345.2 and 346 are met.

Unlicensed retailer

(2) A retailer who does not hold a licence must store their consumer fireworks in a sales establishment other than a dwelling and ensure that the requirements respecting consumer fireworks in sections 343 to 345, 345.2, 346, 348 and 349 are met.

Novelty devices unlicensed retailer

342.1 A retailer must store their novelty devices in a sales establishment other than a dwelling and ensure that the requirements respecting novelty devices in sections 345.1, 345.2, 346.1, 348 and 349 are met.

101 (1) The portion of subsection 344(1) of the English version of the Regulations before paragraph (a) is replaced by the following:

Non-aerial consumer fireworks

344 (1) Non-aerial consumer fireworks (flares, fountains, snakes, ground spinners, strobe pots, wheels and ground whistles) may be displayed for sale only if they are

(2) The portion of subsection 344(2) of the English version of the Regulations before paragraph (a) is replaced by the following:

Aerial consumer fireworks

(2) Aerial consumer fireworks may be displayed for sale only if they are

(3) Subsection 344(3) of the English version of the Regulations is replaced by the following:

Non-aerial consumer and aerial consumer fireworks

(3) Non-aerial consumer and aerial consumer fireworks may be displayed for sale only if they are displayed in accordance with section 346.

102 (1) The portion of section 345 of the Regulations before paragraph (a) is replaced by the following:

Adequate consumer pack — fireworks

345 For the purposes of this Part, a consumer pack of consumer fireworks must meet the following requirements:

(2) Paragraph 345(b) of the English version of the Regulations is replaced by the following:

103 The Regulations are amended by adding the following after section 345:

Adequate consumer pack — novelty devices

345.1 For the purposes of this Part, a consumer pack of novelty devices must meet the following requirements:

Reuse of packaging

345.2 A seller must ensure that any packaging or container that has been used for consumer fireworks or novelty devices is not reused unless

104 Sections 347 to 349 of the Regulations are replaced by the following:

Novelty devices — displayed for sale

346.1 When novelty devices are displayed for sale, the following requirements must be met:

Exception

347 Sections 345.1 and 346.1 do not apply to sparklers or toy pistol caps.

Maximum quantity

348 (1) No more than 1 000 kg of consumer fireworks or novelty devices may be stored in a sales establishment at any one time, including consumer fireworks or novelty devices that are displayed for sale. If the sales establishment is located in a building that contains a dwelling, no more than 100 kg of consumer fireworks or novelty devices may be stored at any one time, including consumer fireworks or novelty devices that are displayed for sale.

Place of storage

(2) Consumer fireworks or novelty devices that are not displayed for sale must be stored in a storage unit.

Storage requirements — storage unit

349 When consumer fireworks or novelty devices are stored in a storage unit,

105 Subsection 350(2) of the Regulations is replaced by the following:

Maximum quantity — unlicensed buyer

(2) A seller must not sell more consumer fireworks or novelty devices to an unlicensed buyer than the buyer is authorized by this Division to store.

106 Subsections 352(2) and (3) of the Regulations are replaced by the following:

Table

(2) A seller who sells consumer fireworks to a user must offer the user either a copy of the table at the end of this Part or a document that includes the same information. The copy of the table or the document may be provided by electronic means, such as a QR code.

107 (1) The portion of section 353 of the Regulations before paragraph (a) is replaced by the following:

Record of sale

353 A seller must keep a record of every sale of 150 kg or more of consumer fireworks or novelty devices, or of consumer fireworks and novelty devices combined, for two years after the date of the sale. The record must include the following information:

(2) Paragraph 353(c) of the Regulations is replaced by the following:

(3) Paragraphs 353(d) and (e) of the English version of the Regulations are replaced by the following:

108 Subsection 354(2) of the Regulations is amended by adding the following after subsection (1):

Acquisition — novelty devices

(1.1) A user who is at least 16 years old may acquire, store and use novelty devices, whether or not they hold a licence. A user who acquires novelty devices must comply with this Division.

Toy pistol caps

(2) A user who is less than 16 years old may acquire and use toy pistol caps.

109 Section 355 of the Regulations is amended by adding the following after subsection (2):

Storage of novelty devices — unlicensed user

(3) A user who does not hold a licence must store their novelty devices in a dwelling or a storage unit and ensure that the requirements of sections 356 and 357 respecting novelty devices are met.

110 Sections 356 and 357 of the Regulations are replaced by the following:

Maximum quantity — dwelling

356 (1) The maximum quantity of consumer fireworks or novelty devices, or of consumer fireworks and novelty devices combined, that may be stored at any one time in a dwelling is 10 kg.

Maximum quantity — storage unit

(2) The maximum quantity of consumer fireworks or novelty devices that may be stored at any one time in storage units, whether in a single unit or in several, is as follows:

Storage requirements — dwelling

357 (1) When consumer fireworks or novelty devices are stored in a dwelling, they must be stored in accordance with package instructions, located in a clean, dry place, away from flammable substances and sources of ignition and in a manner that ensures that access to them is limited to people authorized by the user.

Storage requirements — storage unit

(2) When consumer fireworks or novelty devices are stored in a storage unit,

111 Subsections 358(1) and (2) of the Regulations are replaced by the following:

Instructions — consumer fireworks

358 (1) When using consumer fireworks, a user, other than a certified display supervisor or a display assistant under the direct supervision of a certified display supervisor, must follow the instructions provided on the label of the consumer fireworks, and if there are no such instructions, the consumer fireworks must not be used except by a certified display supervisor or a display assistant under the direct supervision of a certified display supervisor.

Instructions — novelty devices

(1.1) When using novelty devices, a user must follow the instructions on the packaging, and if there are no such instructions, the novelty devices must not be used.

Electric match

(2) A user, other than a certified display supervisor or a display assistant under the direct supervision of a certified display supervisor, must not use an electric match to fire consumer fireworks.

112 The Regulations are amended by adding the following after section 358:

Consumer fireworks — electric match

358.1 (1) A certified display supervisor or a display assistant under the direct supervision of a certified display supervisor may use an electric match to fire consumer fireworks.

Consumer fireworks — hybrid show

(2) Consumer fireworks may be used by a certified display supervisor or by a display assistant under the direct supervision of a certified display supervisor as a component of a hybrid show containing both consumer fireworks and display fireworks.

Fireworks accessories (type F.4) — hybrid show

(3) Fireworks accessories (type F.4) may be used by a certified display supervisor or by a display assistant under the direct supervision of a certified display supervisor to fire consumer fireworks as a component of a hybrid show containing both consumer fireworks and display fireworks.

113 (1) Section 359 of the Regulations is amended by adding the following after subsection (1):

User under 16 years old

(1.1) A user who is under the age of 16 may use novelty devices if they are supervised by a person who is at least 18 years old.

(2) Subsection 359(3) of the Regulations is replaced by the following :

Supervision — novelty devices

(3) A person who acquires novelty devices may give them to a user who is under the age of 16 if the person ensures that the user is supervised by a person who is at least 18 years old.

114 The Regulations are amended by adding the following after section 359:

Reuse of packaging

359.1 A user must ensure that any packaging or container that has been used for consumer fireworks or novelty devices is not reused unless

115 Subsection 377(3) of the Regulations is replaced by the following:

Black powder

(3) Black powder must be stored in its original container with no more than 500 g of black powder per container, in small arms cartridges or in black powder cartouches.

116 Paragraph 379(2)(a) of the Regulations is replaced by the following:

117 Section 380 of the Regulations is replaced by the following:

Detached storage unit

380 The maximum quantity of black powder and smokeless powder that may be stored at any one time in storage units that are not attached to a dwelling and are not at the site of use, whether in a single unit or in several, is 25 kg and 75 kg, respectively.

118 (1) Subsection 382(1) of the Regulations is replaced by the following:

Storage requirements — dwelling

382 (1) When special effect pyrotechnics are stored in a dwelling, they must be stored in accordance with package instructions, located in a clean, dry place, away from flammable substances and sources of ignition and in a manner that ensures that access to them is limited to people authorized by the user.

(2) Paragraphs 382(2)(a) to (l) of the Regulations are replaced by the following:

119 Subsection 384(1) of the Regulations is replaced by the following:

Instructions

384 (1) A user must, when using special effect pyrotechnics, follow the instructions of the pyrotechnician in charge.

120 (1) Paragraphs 388(1)(a) to (c) of the Regulations are replaced by the following:

(2) Paragraph 388(1)(d) of the Regulations is replaced by the following:

(3) Subsection 388(2) of the English version of the Regulations is replaced by the following:

Proof of course completion

(2) An applicant who has not completed the special effect pyrotechnics safety and legal awareness course or a certified equivalent on the date their application is submitted may, within six months after that date, submit to the Chief Inspector of Explosives proof of their successful completion of the course or equivalent.

(4) Paragraphs 388(3)(a) and (b) of the Regulations are replaced by the following:

(5) Paragraph 388(3)(d) of the Regulations is repealed.

(6) Paragraphs 388(5)(a) to (c) of the Regulations are replaced by the following:

121 Section 389 of the Regulations is replaced by the following:

Acquisition

389 A user may acquire and store special effect pyrotechnics, whether or not they hold a licence, if they hold a fireworks operator certificate with the endorsements required for the use of the pyrotechnics to be acquired. However, a user who does not hold a licence must not acquire initiation systems or detonating cords. A user who acquires special effect pyrotechnics must comply with this subdivision.

122 (1) Subsection 397(1) of the Regulations is replaced by the following:

Storage requirements — dwelling

397 (1) When special effect pyrotechnics are stored in a dwelling, they must be stored in accordance with package instructions, located in a clean, dry place, away from flammable substances and sources of ignition and in a manner that ensures that access to them is limited to people authorized by the user.

(2) Paragraphs 397(2)(a) to (l) of the Regulations are replaced by the following:

123 Paragraph 399(a) of the Regulations is replaced by the following:

124 Paragraph 400(a) of the Regulations is replaced by the following:

125 (1) Paragraph 401(1)(a) of the Regulations is replaced by the following:

(2) Paragraph 401(2)(a) of the Regulations is replaced by the following:

126 Section 404 of the Regulations is replaced by the following:

Fallout zone

404 (1) A fallout zone must be established, taking into account the properties of the special effect pyrotechnics to be used, how they will be positioned, the instructions of the person who obtained their authorization, the weather conditions if the pyrotechnic event is to be held outdoors and the likelihood of harm to people or property resulting from the use of the pyrotechnics.

Flammables

(2) The fallout zone must not contain any flammables or other items that are likely to catch fire.

Access

(3) Only people authorized by the pyrotechnician in charge may enter or be in the fallout zone from the time any special effect pyrotechnics are brought into the zone until the pyrotechnician in charge declares the zone to be free of explosives.

No smoking

(4) Smoking must be prohibited in the fallout zone.

127 (1) Subsection 406(1) of the Regulations is replaced by the following:

Instructions

406 (1) When setting up and firing the special effect pyrotechnics, the instructions of the pyrotechnician in charge must be followed.

(2) Subsection 406(7) of the Regulations is replaced by the following:

Firing system — requirement

(7) The pyrotechnician in charge must ensure that the firing system is secured at all times to prevent accidental ignition.

128 (1) Subsection 407(1) of the Regulations is repealed.

(2) The portion of subsection 407(2) of the French version of the Regulations before paragraph (a) is replaced by the following:

Pièces pyrotechniques — ratés

(2) Il est interdit de s’approcher d’une pièce pyrotechnique à effets spéciaux ayant eu des ratés avant que le délai applicable ci-après ne se soit écoulé :

(3) Subsection 407(5) of the Regulations is replaced by the following:

Access

(5) After the event, only people designated to do a search by the pyrotechnician in charge may enter or be in the fallout zone until the pyrotechnician in charge declares the zone to be free of explosives.

129 Subsection 416(2) of the Regulations is replaced by the following:

Electric matches

(2) A seller must not store electric matches in a magazine in which fireworks are stored.

130 Paragraph 418(b) of the Regulations is replaced by the following:

131 The Regulations are amended by adding the following after section 419:

Reuse of packaging — seller

419.1 A seller must ensure that any packaging or container that has been used for fireworks is not reused unless

132 (1) Paragraph 423(1)(a) of the Regulations is replaced by the following:

(2) Paragraphs 423(3)(a) and (b) of the Regulations are replaced by the following:

(3) Paragraph 423(3)(d) of the Regulations is repealed.

(4) Paragraph 423(3)(f) of the Regulations is replaced by the following:

(5) Paragraph 423(5)(a) to (c) of the Regulations are replaced by the following:

133 Section 424 of the Regulations is replaced by the following:

Acquisition

424 A user may acquire fireworks, whether or not they hold a licence, if they hold a fireworks operator certificate with the endorsements required for the use of the fireworks to be acquired. A user who acquires fireworks must comply with this Division.

134 Paragraphs 427(a) to (l) of the Regulations are replaced by the following:

135 The Regulations are amended by adding the following after section 429:

Reuse of packaging — user

429.1 A user must ensure that any packaging or container that has been used for fireworks is not reused unless

136 Subsection 432(3) of the English version of the Regulations is replaced by the following:

Safety meetings

(3) Meetings must be held with the people who will participate in presenting the fireworks display (for example, security guards and technicians) to inform them of the fireworks that will be used and the safety precautions to be taken during the display. Subsequent meetings must be held if the display is changed in a way that increases the likelihood of harm to people or property resulting from the use of the fireworks.

137 (1) Subsections 434(1) and (2) of the Regulations are replaced by the following:

Loading zone

434 (1) When the fireworks are brought to the firing site, a loading zone must be established whose outer boundary is at least 30 m from the perimeter of the firing site. A smaller loading zone may be established only with the written approval of the local authority.

Flammables

(2) The loading zone must not contain any flammables or other items that are likely to catch fire.

(2) Subsections 434(4) to (6) of the Regulations are replaced by the following:

Access

(4) Only people authorized by the display supervisor in charge may enter or be in the loading zone or the fallout zone from the time any fireworks are brought into the zone until the supervisor in charge declares the zone to be free of explosives.

Handling

(5) Only a person who holds a fireworks operator certificate (display assistant), fireworks operator certificate (display supervisor), fireworks operator certificate (display supervisor with endorsement) or fireworks operator certificate (display visitor) and is authorized by the display supervisor in charge may handle fireworks in the loading zone or fallout zone.

No smoking

(6) Smoking must be prohibited in the loading zone.

138 Subsection 436(7) of the Regulations is replaced by the following:

Firing system — requirement

(7) If fireworks are electrically fired, the display supervisor in charge must ensure that the firing system is secured at all times to prevent accidental ignition.

139 Subsection 437(7) of the Regulations is replaced by the following:

Second search

(7) The fallout zone must be searched a second time as soon as light and weather conditions permit if, at the time of the first search conducted under subsection (5) light and weather conditions were insufficient to ensure that all explosives were removed.

140 (1) Paragraph 464(1)(a) of the Regulations is replaced by the following:

(2) Paragraph 464(1)(d) of the Regulations is replaced by the following:

141 (1) Paragraph 466(1)(a) of the Regulations is replaced by the following:

(2) Paragraph 466(1)(e) of the Regulations is replaced by the following:

142 Section 469 of the French version of the Regulations is replaced by the following:

Avis de changement

469 Dans les dix jours suivant la date de tout changement relatif aux renseignements fournis dans la demande, le vendeur de composant ou le vendeur de produit en avise par écrit l’inspecteur en chef des explosifs.

143 (1) The portion of section 479 of the Regulations before paragraph (a) is replaced by the following:

Annual inventory

479 For each calendar year, an inventory must be made and a record of the following information kept for two years:

(2) Paragraph 479(c) of the Regulations is replaced by the following:

144 (1) Paragraph 499(a) of the Regulations is replaced by the following:

(2) Paragraph 499(e) of the Regulations is replaced by the following:

145 The Regulations are amended by striking out the note set out in the following provisions:

Coming into Force

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

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: Natural Resources Canada’s (NRCan) Explosives Program (the Program) and the explosives sector have undergone changes since the Explosives Regulations, 2013 (the Regulations) were last significantly updated nearly 10 years ago. The Regulations need to be updated to remain relevant and achieve safety and security objectives.

Description: The amendments to the Regulations will enhance safety and improve efficiency by ensuring requirements are aligned with safety and security risks, reducing unnecessary administrative burden, aligning with best practices of national and international partners, and clarifying the intent of regulatory requirements.

Rationale: NRCan’s Explosives Regulatory Review (the Review) engaged in extensive research and outreach to identify key irritants with the current Regulations. Several key themes emerged, including that the regulatory regime requires modernization and “clean-up” and that the administrative burden needs to be reduced. The Review assessed the impact of the amendments on the industry and Canadians quantitatively and qualitatively through a cost-benefit analysis (CBA). The CBA found a highly positive and robust net impact for the amendments. The Review also estimated positive impacts for small businesses and no net increased administrative burden under the one-for-one rule.

Issues

Almost 10 years ago, Natural Resources Canada’s (NRCan) Explosives Program conducted a significant update of its regulatory regime to further formalize and refine the requirements that govern the safety and security of the Canadian explosives sector. Since then, both the Program and the explosives sector have undergone changes, which have highlighted the need to update the current Explosives Regulations, 2013 (the Regulations) to ensure requirements remain relevant and effective in achieving safety and security goals.

The regulatory requirements for products like propellant powders, reactive targets and novelty devices, for example, do not currently align with their risk profile. While most of these products need added requirements to better address safety risks, the requirements for novelty devices, such as sparklers, party poppers and even toy pistol caps, are unnecessarily onerous due to their lower-risk profile compared to other types of consumer fireworks.

From an administrative perspective, prescribed application forms currently require applicants to provide a fax number, an outdated technology that is seldom used. In addition, many of the requirements for annual reporting by industry represent a significant stakeholder burden, but are no longer needed by the Program. Current transportation requirements are overly complex and require streamlining to avoid stakeholder confusion. Moreover, several provisions in the Regulations are duplicative, while others are obsolete. There are also discrepancies between the French and English versions of the Regulations, which can cause confusion, especially for a national program.

Background

In spring 2021, NRCan’s Explosives Program initiated a comprehensive review of the Regulations to modernize the explosives regulatory regime in line with the Government of Canada’s regulatory modernization agenda. The Explosives Regulatory Review (the Review) engaged in extensive research, carried out targeted national and international comparisons to identify best practices, and conducted stakeholder and expert outreach to seek sector views on regulatory challenges.

The Review collected over 280 regulatory irritants from internal and external stakeholders and experts. The following five key themes emerged from this outreach:

Objective

To address the regulatory irritants, the Review intends to bring forward two consecutive omnibus regulatory amendment packages. The goal of this first regulatory package is to modernize the explosives regulatory regime by enhancing safety and security and increasing regulatory efficiency. The amendments will enhance how the Program delivers its mandate and will mitigate irritants identified by stakeholders, including reducing the unnecessary administrative and regulatory burden across the explosives sector.

Description

The Regulations are organized into 20 parts. The following are the main components of the amendments, organized by subject and the relevant parts.

Definition (Part 1)

The amendments will add the following definition to Part 1 to clarify the language used in the Regulations:

misfire
means the complete or partial failure of a charge to explode as planned.

UN 3375, Ammonium nitrate emulsion (Parts 1, 5 and 9)

The amendments to Part 1 will update the definition of “explosive” to include UN 3375, AMMONIUM NITRATE EMULSION, GEL, OR SUSPENSION.

The amendments to Parts 5 and 9 will

Exception for historical re-enactments (Part 2)

The amendments to Part 2 will add an exception to allow for persons under the age of 18 to possess small arms cartridges and black powder cartouches at federal or provincial/territorial sites that hold a division 2 factory licence, for the purposes of conducting sanctioned demonstrations or historical re-enactments.

Authorization of explosives for a specified period to include tests conducted by foreign states (Part 3)

The amendments to Part 3 will allow an application for an authorization of explosives for a specified period to include

These amendments clarify and formalize the current NRCan application process for stakeholders seeking an authorization for an explosive for a specified period.

Exception for the Department of National Defence to transport explosives into and within Canada using commercial freight carriers (Parts 3 and 4)

The amendments will add an exception to Parts 3 and 4 to allow the importation of explosives that have not been authorized into Canada for the Department of National Defence (DND), the Canadian Armed Forces (CAF) and international allies cooperating with the CAF, using commercial freight carriers, provided the following requirements are met:

The amendments will also add an exception to Part 3 to allow the transportation of explosives that have not been authorized within Canada by DND, the CAF, or any armed forces cooperating with the CAF, using commercial freight carriers. The exception will apply if the explosives were classified for transportation by a competent authority that is also recognized by the Chief Inspector of Explosives as having a transport classification process equivalent to that set out in the TDG Regulations.

Novelty devices (Parts 3, 4, 5 and 16)

The amendments will create a new type F.5 classification in Part 3 for low-risk fireworks called novelty devices to support the addition of new requirements for these novelty devices in Part 16. The amendments will also update Parts 4 and 5 of the Regulations to list type F.5 explosives in provisions listing type F explosives.

The amendments will amend Part 5 to allow a holder of a division 2 factory licence or manufacturing certificate to carry out the manufacture of F.5 novelty devices for personal use provided that the activity is specified in the licence or certificate and the activity is carried out at the workplace specified in the licence or certificate.

The amendments will update the definitions of distributor, licence, retailer and user in Part 16 to include novelty devices and will add the following new definition to Part 16:

novelty device
means a device which produces limited visible or audible effects and contains small amounts of pyrotechnic or explosive composition and has been classified as type F.5.

The amendments will add requirements to Part 16 for novelty devices based on the existing Part 16 requirements for consumer fireworks, with some modifications to reflect the lower risk profile of novelty devices, including

Alignment of the Regulations with the Transportation of Dangerous Goods Act, 1992 and the Transportation of Dangerous Goods Regulations (Parts 3, 5, 9, 16 and 18)

The amendments will align the Regulations with the TDG Act and the TDG Regulations by

Minimum age for hazardous work (Part 5)

The amendments will increase the minimum age for workers at Division 1 and 2 factories and satellite sites, and for workers involved in manufacturing explosives, from 17 years of age to 18 years of age.

Transportation requirements (Parts 5 and 9)

The amendments will expand the exception in Part 5 to clarify that a Mobile Process Unit (MPU) that contains explosives does not need to be attended in person if it is awaiting towing or repair and is secured in an access-controlled mine site or quarry.

The amendments will add, in Part 9, an exception to the requirement for carriers to obtain a permit for oversized loads for jet perforating guns, provided the jet perforating guns

The amendments will update Part 9 to require a carrier of explosives by vehicle to ensure the portion of the vehicle that contains the explosives is

The amendments will clarify and streamline the exceptions for transporting explosives in a towed vehicle in Part 9 by adding a new exception that a carrier or driver of explosives must not transport explosives in a towed vehicle unless it is for the purposes of returning a vehicle to the road and the following requirements are met:

The amendments will add new requirements in Part 9 to permit a vehicle containing explosives numbered UN 0332 or UN 3375 transported in bulk to be attended by a person using electronic means instead of in person if the following requirements are met:

The amendments will further update the transportation requirements in Part 9 by

Reactive targets (Parts 5 and 13)

The amendments will enhance the requirements in Part 5 for the mixing of reactive targets, which are multi-ingredient kits intended for long-range target shooting, by

The amendments will also amend Part 13 to enhance the requirements for sellers and users of reactive targets by

Annual reports (Parts 5, 7, 13 and 20)

The amendments will update the annual reporting requirements in the Regulations by

Terms and conditions for licences, permits and certificates (Part 7)

The amendments to Part 7 will update the terms and conditions for licences, permits and certificates to allow the Minister of Natural Resources to

The amendments to Part 7 will also permit an applicant for a licence, permit or certificate to, within 30 days after they receive a notice of refusal from the Minister of Natural Resources, send a written request for a review of the refusal on the grounds that the information on which the refusal was based is incorrect. Further to this written request, the amendments to Part 7 will update the terms and conditions for licences, permits and certificates to allow the Minister of Natural Resources to

The amendments to Part 7 will also permit a former holder of a licence, permit or certificate to, within 30 days after they receive a notice of cancellation of their licence, permit or certificate from the Minister of Natural Resources, send a written request for a review of the cancellation on the grounds that the information on which the cancellation was based is incorrect. Further to this written request, the amendments to Part 7 will update the terms and conditions for licences, permits and certificates to allow the Minister of Natural Resources to

Screening requirements for approval letters (Part 8)

The amendments will update the screening requirements in Part 8 for individuals seeking approval letters as licence holders or employees to have unsupervised access to high hazard explosives by

Blank cartridges for tools (Part 12)

The amendments will clean up and modernize the language in Part 12 to reflect amendments made in 2018 to the Regulations that removed the requirements to hold a licence to acquire, store and sell blank cartridges for tools.

Storage (Parts 12, 13, 14, 16, 17 and 18)

The amendments will clarify and streamline the requirements for storage in a storage unit for blank cartridges for tools, high hazard special purpose explosives, small arms cartridges, propellant powders, black powder cartouches, percussion caps, consumer fireworks, novelty devices, special effect pyrotechnics, and display fireworks.

The amendments will also clarify that when consumer fireworks and special effect pyrotechnics are stored by a user in a dwelling, they must be stored in accordance with package instructions, in a clean, dry place, away from flammable substances and sources of ignition, and in a manner that ensures access to them is limited to people authorized by the user.

Propellant powders (Part 14)

The amendments will update the requirements for propellant powders, including black powder and smokeless powder, by

Percussion caps (Part 14)

The amendments will clarify and streamline the requirements for percussion caps and modernize the language in Part 14 to reflect that users of percussion caps are not required under the Regulations to have a licence to store percussion caps.

Consumer fireworks (Part 16)

The amendments will update the requirements for consumer fireworks in Part 16 by

Hybrid shows (Part 16)

The amendments will update Part 16 to enable fireworks operators to hold hybrid shows using both consumer fireworks and display fireworks by

Special effect pyrotechnics (Part 17)

The amendments will update the requirements for special effect pyrotechnics in Part 17 by

Display fireworks (Part 18)

The amendments will update the requirements for display fireworks in Part 18 by

Modernization and general “clean-up”

Finally, the amendments will modernize the Regulations by moving to more performance-based requirements, removing obsolete requirements and references to outdated technologies, streamlining requirements to reduce duplication and inconsistencies, and updating requirements, as needed, to reflect current industry best practices. In addition, to support stakeholder compliance, a number of the amendments will clarify the policy intent of the requirements or the terminology used in the Regulations. Other amendments will address inconsistencies between the French and English versions of the same provision.

Regulatory development

Consultation

The Review conducted two phases of consultation with the explosives sector stakeholders. The first phase was a policy consultation in spring 2021 to identify regulatory irritants to guide the planning for developing amendments. The second phase was a regulatory consultation in spring 2022 to seek stakeholder feedback on the first package of proposed regulatory amendments.

Policy consultation (spring 2021)

During the initial spring 2021 policy consultation, the Review reached out to industry associations, sellers and law enforcement in writing to introduce the Review and seek their regulatory irritants. The Review also held virtual meetings in March and April 2021 with law enforcement organizations, including the Ontario Provincial Police (OPP), the Royal Canadian Mounted Police (RCMP), the Sûreté du Québec (SQ), the Service de police de la Ville de Montréal (SPVM) and the Toronto Police Service, with provincial counterparts, namely the Canadian Association of Chief Inspector of Mines (CACIM), and with industry associations, including the Canadian Association of Rocketry, the Canadian Explosives Industry Association (CEAEC), the Canadian National Fireworks Association (CNFA), the Canadian Pyrotechnic Council (CPC), the Energy Services Association of Canada (Enserva) and Responsible Distribution Canada (RDC), to introduce the Review. After each meeting, the Review followed up by email with the organization or association to request their written input on regulatory irritants. The Review also engaged with other government departments by email to seek their written input on regulatory irritants. The response from other government departments and the external outreach with provincial counterparts, industry associations, sellers and law enforcement generated 137 irritants.

Regulatory consultation (spring 2022)

Beginning in March 2022, the Review began consulting on the first package of proposed amendments to the Regulations. Given the regulatory proposal had over 250 proposed amendments, the Review conducted three consecutive consultations on the following dates, one for each of the categories of proposed amendments below:

  1. March 8 to 31, 2022: Proposed amendments to parts 16 to 18 of the Regulations to update fireworks and pyrotechnics requirements.
  2. April 19 to May 17, 2022: Proposed amendments to Part 9 of the Regulations to update the transportation requirements and proposed minor amendments and general updates to the rest of the Regulations.
  3. June 10 to July 8, 2022: Proposed amendments to parts 12 to 14 of the Regulations to update the requirements respecting propellant powders, percussion caps, small arms cartridges, blank cartridges for tools, and reactive targets.

For all three consultations, the Review consulted by email with all of the stakeholders that were notified of the regulatory review during the initial spring 2021 policy consultation, including all stakeholders that met with the Review or provided written comments at that time. The Review provided stakeholders with three to four weeks to provide comments for each of the three consultations. The Review also provided all stakeholders with the opportunity to meet with the Review to discuss the proposed amendments and held targeted meetings with all stakeholders who requested them, including meetings with the CNFA on March 24, 2022, the Canadian Association of Fire Chiefs (CAFC) on February 23, 2022, and April 8, 2022, and the CEAEC on April 26 and 27, 2022.

As the proposed amendments were developed in response to stakeholder irritants, the feedback from stakeholders during the regulatory consultations was generally supportive, and any questions from stakeholders were mainly to seek clarification.

The main exception to the support from stakeholders was from the CAFC, who expressed opposition to the current regime governing consumer fireworks, as well as to the proposed amendments to that regime. It remains the Program’s position that the consumer fireworks regime and the amendments maintain the high level of safety and security Canadians expect without being unduly onerous.

In addition, the CPC and the CNFA respectively requested that the quantity of consumer fireworks stored in a dwelling be raised from 10 kg to 25 kg and 150 kg. However, after discussing with Program experts and reviewing scientific research, the Review determined that the existing 10 kg storage requirement is more in line with the risks of storing consumer fireworks in a dwelling.

Given the general widespread support from stakeholders, only a few minor adjustments and wording changes were made to the regulatory proposal as a result of all consultations conducted prior to the prepublication in the Canada Gazette, Part I.

Prepublication in the Canada Gazette, Part I (spring 2023)

The proposed amendments were prepublished in the Canada Gazette, Part I, on May 27, 2023, followed by a 30-day comment period ending on June 26, 2023. A total of 21 comments were received via the Online Regulatory Consultation System (ORCS), including submissions from the CAFC, CEAEC, CNFA, Canada’s National Firearms Association (NFA), and Parks Canada. Overall, many of the comments received from stakeholders were generally supportive of the proposed amendments, although some comments did result in policy changes that required updates to the amendments.

Following the 30-day comment period, the following changes were made to clarify the regulatory requirements:

  1. Section 8: This section was amended as part of a general clean-up to remove a reference to subsection 498(1), which no longer exists in the Regulations.
  2. Subsection 107(1): The CNFA suggested type F.5 novelty devices should be added to subsection 107(1) so that novelty devices can be made by hobbyists. Without this change, the manufacture of type F.5 novelty devices would fall under Division 1 manufacturing activities. Accordingly, the list of activities that a holder of a division 2 factory licence or manufacturing certificate may carry out at a workplace specified in their licence or certificate was updated to include the manufacture of F.5 novelty devices for personal use.
  3. Subsection 150(4): CEAEC suggested that subsection 150(4) be amended to allow for the consolidation of two partially filled packages of explosives of the same product name into one package within a magazine. Accordingly, this requirement was updated to clarify that in addition to allowing no more than two packages or containers to be open at a time in a magazine for inspection or to remove explosives, no more than two packages or containers may be open at a time in a magazine to add an explosive of the same product name.
  4. Section 164.1: A stakeholder expressed concerns that there was no process for a review of a ministerial decision to refuse a licence, permit or certificate under new section 164.1. In response, this section was updated to clarify that the Minister may refuse to issue a licence, permit or certificate if the Minister has reasonable grounds to believe that issuing that licence, permit or certificate would constitute a risk to the safety or security of persons or property. This section was also updated to add a process by which applicants can request that the Minister review a refusal of a licence, permit or certificate on the grounds that the information on which the refusal was based is incorrect, and upon the Minister’s review, the Minister must then issue the licence, permit or certificate, or provide the applicant with written notice of the continued refusal.
  5. Section 173.1: A stakeholder expressed concerns that there was no process for a review of a ministerial decision to cancel a licence, permit or certificate under new section 173. In response, this section was updated to add a process by which applicants can request that the Minister review a cancellation of a licence, permit or certificate on the grounds that the information on which the cancellation was based is incorrect, and upon the Minister’s review, the Minister must then reissue the licence, permit or certificate, or provide the applicant with written notice of the continued cancellation.
  6. Paragraph 191(1)(a): A stakeholder expressed concerns that the requirements in paragraph 191(1)(a) for the portion of the vehicle that contains the explosives to be constructed of, or lined with, a non-sparking material, and to also not increase the likelihood of an ignition, are too onerous. Accordingly, this paragraph was updated to clarify that a carrier of explosives by vehicle must ensure that the portion of the vehicle that contains the explosives is either an intermodal container or is fully enclosed and fire-resistant and is constructed of, or is lined with, a non-sparking material or does not increase the likelihood of an ignition.
  7. Subsection 199(4): CEAEC suggested that electronic monitoring should be limited to UN 0332 and UN 3375 only, and also noted that it would be difficult to implement the requirement in subsection 199(4) for the vehicle to be parked in an access-controlled location, as access-controlled parking areas are often unavailable. In response, this subsection was updated to clarify that a vehicle containing explosives numbered UN 0332 or UN 3375 transported in bulk may be attended by a person using electronic means if the requirements in subsection 199(4) are met. This subsection was also updated to remove the requirement for the vehicle to be parked in an access-controlled location.
  8. Paragraph 201(2): Stakeholders expressed concerns that the requirement for the carrier to provide the Chief Inspector of Explosives with a written report about an accident or incident involving any accidental property or vehicle damage in paragraph 201(2) is too onerous and is unnecessary from an incident investigation perspective. Accordingly, this paragraph was updated to remove the requirement for the carrier to provide the Chief Inspector of Explosives with a written report about an accident or incident involving any accidental property or vehicle damage.
  9. Subsection 264(2): Stakeholders expressed concerns that the standard case of reactive targets available for sale in Canada is 5.44 kg, which is higher than the originally proposed 5 kg maximum. In response, this subsection was updated to raise the maximum amount of reactive targets that may be stored at any one time from 5 kg to 6 kg. This change will allow for the storage of one case of reactive targets to prevent manufacturers from having to change the standard packaging.
  10. Subsection 294(1): A stakeholder expressed concerns that restricting sales of propellant powder to PAL holders would require public servants to provide a personal PAL to purchase propellant powder on behalf of the government. In response, this subsection was updated to add that in the case of a public service agency, the public agency identification number (PAIN) assigned to it under paragraph 7(1)(a) of the Public Agents Firearms Regulations can be used to purchase propellant powder. Including the PAIN as a valid identification for the purchase of propellant powder will allow public service employees to purchase propellant powder on behalf of a government agency.
  11. Section 295: Further to the update to subsection 294(1) to add the PAIN as a form of valid identification for the purpose of purchasing propellant powder on behalf of a public service agency, this section was updated to require sellers, for each sale of propellant powder, to keep a record for two years after the date of sale that includes the name of the public service agency, the name of the buyer buying on behalf of the public service agency, and the number of the buyer’s PAIN, if applicable.
  12. Subsection 335(1): Stakeholders expressed concerns that the previously proposed definition of novelty device could be interpreted as implying that novelty devices are safe for indoor use. Accordingly, the definition of “novelty device” in this subsection was updated to state that novelty device “means a device that produces limited visible or audible effects, contains small amounts of pyrotechnic or explosive composition and is classified as a type F.5 explosive.”
  13. Subsection 348(1): Stakeholders expressed concerns about the safety risks of doubling the existing storage limit for consumer fireworks or novelty devices. The Program considered these concerns as well as the increased potential impact to the public, neighbours, fire fighters and the environment, and the decreased likelihood of oversight of unlicensed vendors, associated with the higher storage limit. In response, this subsection was updated to reduce the maximum quantity of consumer fireworks or novelty devices that may be stored in a sales establishment at any one time without a licence, including consumer fireworks or novelty devices that are displayed for sale, from 2 000 kg to 1 000 kg.
  14. Subsection 356(2): Further to the update to subsection 348(1), and due to the same considerations, this subsection was updated to reduce the maximum quantity of consumer fireworks or novelty devices that may be stored at any one time in storage units, whether in a single unit or in several, from 2 000 kg to 1 000 kg.

A summary of other key issues raised by stakeholders about the amendments during the 30-day comment period, and NRCan’s responses, are below:

Remaining comments received during the 30-day comment period generally consisted of requests for clarification, as well as suggestions for changes that were beyond the scope of this amendments package, but that the Review has noted for consideration in future amendments packages.

The Review consulted by email with stakeholders from September 7 to 22, 2023, on the proposed updates to the amendments made further to comments received during the 30-day comment period. The Review also met with CEAEC on November 9, 2023, to further discuss the updates to the amendments following the 30-day comment period, and the feedback received on the updates to the amendments during the meeting was generally supportive of the changes.

While the feedback from stakeholders on the updated amendments following the 30-day comment period was generally supportive, the main exception to this support was from stakeholders, including the CNFA and the CPC, who expressed opposition to reducing the maximum storage limit for consumer fireworks or novelty devices from 2 000 kg to 1 000 kg. However, other stakeholders, including the CAFC, responded positively to the reduced storage limit.

Modern treaty obligations and Indigenous engagement and consultation

In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, an assessment of modern treaty implications (AMTI) was conducted for the amendments. As part of the AMTI, all treaties with provisions related to explosives were evaluated against the amendments to the Regulations. No modern treaty implications or impacts on Indigenous peoples were found, and it was determined that the amendments will not trigger the Crown’s duty to consult.

Instrument choice

Under the status quo scenario, safety would not be enhanced, out-of-date provisions would not be updated, and the administrative burden would not be reduced. Specifically,

After consulting extensively with stakeholders, the Review has concluded that regulatory amendments are the only practical way to address stakeholder irritants with the Regulations, including the unnecessary administrative burden, overly complex requirements that cause stakeholder confusion, duplicative or obsolete provisions, and discrepancies between the English and French versions. Furthermore, lessons learned from the Program implementation have indicated that regulatory amendments are required to better align some requirements with the risk posed by certain explosives.

In addition, the amendment to raise the minimum age for hazardous work is needed in order to comply with the International Labour Organization’s (ILO) Minimum Age Convention, 1973, which Canada ratified in 2016, and to align the Regulations with the Canada Labour Code. The amendments are also necessary to align the Regulations with the TDG Act and TDG Regulations, and to add requirements from the TDG Regulations that Transport Canada is transferring to NRCan. The amendments are also necessary to clarify that UN 3375 is an explosive in Canada and to support its regulation.

Regulatory analysis

Benefits and costs

The cost-benefit analysis (CBA) assesses the difference between a baseline scenario (without regulatory amendments) and an incremental scenario (with the amendments). Only costs and benefits to Canadian stakeholders are assessed in this analysis. Any foreign costs and benefits have been left out of the analysis. On May 11, 2022, the Review sent a short CBA survey to CEAEC to validate costing assumptions for the amendments regarding effort, wage rates and frequency. The Review received four responses (three complete) from CEAEC members. The Review then applied the information from the survey responses to the CBA estimates for these amendments.

Under the regulatory scenario, the Regulations will be amended to enhance safety, provide clarity, remove out-of-date provisions, and streamline and reduce the unnecessary burden for industry. Specifically,

The incremental costs have been monetized in accordance with the Treasury Board of Canada Secretariat’s guide on CBA. The CBA considers a 10-year period (2023–2032), uses 2022 as the price year and 2022 as the base year for present value. The amendments will come into effect in 2024, when stakeholders will start bearing costs and benefits associated with implementing the amendments.

The amendments entail costs of $201,700 (undiscounted) in Year 1, costs of $106,860 (undiscounted) in Year 6, and costs of $98,520 (undiscounted) in all other years within the 10-year period. Using a standard discount rate of 7%, the present value (PV) total costs will be $793,955 over the 10-year period, and the annualized value (AV) cost will be $113,040. The benefits of the amendments will be $850,950 (undiscounted) annually. The PV total benefits will be $5,976,717 over the 10-year period, with the AV benefit at $850,950. Net benefit will be $649,250 (undiscounted) in Year 1, $744,090 (undiscounted) in Year 6, and $752,430 (undiscounted) in all other years. The net present value (NPV) of the amendments is $5,182,762 over the 10-year period. This provides an AV net benefit of $737,910.

These figures are displayed in their totality below. In addition to monetized costs and benefits, there are several benefits assessed qualitatively due to data limitations. These include increased public safety and easier compliance due to regulatory streamlining.

Benefits to industry

The amendments are expected to facilitate compliance by enhancing clarity and readability throughout the Regulations. Streamlining, clarifying and updating apply to several amendments in this package, including removing unnecessary annual reports, updating transportation requirements, and updating screening requirements for approval letters.

Removing the requirement for licence, permit or certificate holders carrying out an activity involving a type I, E, or D explosive to submit an annual report will result in a cost saving of $454,500 (undiscounted) each year. It is assumed that annual reports are required for 909 licences (the sum of I, E, and D explosives licences and import/export permits). Stakeholders indicated that employees responsible for submitting the reports will have an average hourly wage of $50 (factoring in benefits and other expenses) and estimated that it takes roughly 10 hours to complete an annual report for a standard-sized firm.

According to data from stakeholder consultation, there are 0.132 towing incidents per licence. Applying this ratio to all applicable licences (1 021), there is an average of 135 towing events per year. Based on stakeholder feedback, the average time to wait for the Minister of Natural Resources’ direction is assumed to be 1.5 hours per event. Based on an average hourly wage rate of $50, the amendment of allowing a vehicle carrying explosives be towed back onto the road without the Minister’s direction provides a benefit of $10,125 (undiscounted) per year for holders of explosives licences.

Adding the ATF’s Employee Possessor Clearance to the list of equivalent documents will result in a cost savings of $386,325 per year. Each request is composed of a fixed cost ($25 per request for an RCMP police records check) and a variable cost (an average of eight hours per request at a wage of $50, according to stakeholders). Assumptions include that there is an average of one request per licence (many stakeholders hold more than one licence) and that 909 licences are impacted (the sum of I, E, and D explosives licences and import/export permits). Fixed cost savings and variable cost savings stand at $22,725 (undiscounted) and $363,600 (undiscounted), respectively. This benefit applies to Canadian firms who employ American workers.

The creation of a new class of low hazard novelty devices and re-categorization of certain fireworks into this class will allow for the sale of low-risk fireworks throughout the year despite municipal fireworks bans. Currently, many retailers are unintentionally in violation of municipal fireworks bans when they sell low hazard fireworks. This classification will ensure that these actors do not unintentionally break the law and that low hazard fireworks remain legal for sale year-round and across municipalities. This will reduce the costs of retailers needing to add and remove fireworks from their catalogue of products each year (as many municipalities have short periods when the sale of fireworks is authorized).

Increasing the minimum age for explosives work from 17 to 18 will standardize the Regulations with other regulations in Canada and with international norms. The main benefits will be policy coherence and consistency, as well as maintaining Canada’s positive reputation for labour regulation internationally. It is expected that this will apply to all holders of explosives licences.

Benefits to Canadians

The creation of a new class of low hazard novelty devices and re-categorization of certain fireworks will benefit any user of low hazard fireworks through ease of acquiring them and increased personal enjoyment from their use.

The amendments will enhance public safety by reducing the potential impact of an accidental black powder ignition by reducing the total amount and individual container size of unlicensed black powder storage. Safety will also be enhanced by reducing the impact of potential misuse of reactive targets by reducing the number of reactive targets that can be purchased, stored and mixed, and by specifying that no more than one kit may be mixed, and no objects can be mixed into the kits.

The benefits of reducing improper use of reactive targets have been demonstrated by several notable incidents occurring in Canada and the United States over the last six years. For example, on April 23, 2017, the “Sawmill Fire” in Arizona burned more than 46 000 acres and caused $8 million (US$) in property damages after Tannerite, a brand of reactive targets sold in kit form, was used in a gender reveal party.footnote 2 In November 2018, the intentional detonation of 40 pounds of Tannerite caused an estimated $14 million (Can$) in damage to a parking garage in Sherwood Park, Alberta. And on May 31, 2021, a reactive target used in a gender reveal party led to a wildfire near Fort McMurray, Alberta.

The amendments are expected to bring security benefits associated with enhanced security screening by requiring buyers purchasing propellant powder to show a PAL or a PAIN if they do not hold a valid fireworks operator certificate — pyrotechnician, and by providing additional grounds for the Minister of Natural Resources to refuse or cancel a security screening approval letter required for access to high hazard explosives.

The benefits of the amendments have the potential to be significant, as evidenced by the millions of dollars in damages that reactive target incidents have caused over the last six years. However, given the relatively low and random incidence of such events, it is difficult to estimate their probability in Canada, and even more difficult to estimate how much the amendments will reduce this probability. Therefore, benefits to public safety are expressed in purely qualitative terms.

Costs to industry

Both the screening letter of employment to bring employees in from outside of Canada and the written transportation accident or incident report will increase costs to businesses in terms of the time and wages spent completing the document. However, the frequency of the written accident report will depend on the occurrence of an incident. Since accidents and incidents occur relatively rarely, they will represent a modest cost to industry stakeholders.

Based on consultations, stakeholders estimate that new approval letters will be required anywhere from two times per year (for small- to medium-sized businesses) to 20 times per year (for large businesses). In light of the fact that large stakeholders typically hold numerous licences, an average number of two approval letters per licence was deemed appropriate. Choosing a higher number risked overestimating the per-licence requirement of approval letters. Assuming $50 per hour wages, that each licence requires two employment letters per year, that all applicable high-hazard licences are impacted (1 021), and that completing a letter will take 0.5 hours, the additional costs are estimated to be $51,050 (undiscounted) annually, applicable to all current licence holders. Larger firms will assume more costs than smaller firms, as larger firms require more approval letters on average.

Accident reports are relatively uncommon for explosives companies. Typically, two to three transportation accidents are reported to the Program per year under the current regulatory requirement. According to stakeholders, the average wage in this case is $65 per hour (including benefits) and an average of 16 hours of combined work for each report. Assuming three accidents per year, these numbers provide a cost estimate of $3,120 (undiscounted) per year. These costs will apply to very few licensees, as only two to three incidents happen annually. In addition, consultations indicate that larger firms expect a higher incidence than smaller firms.

The reduction in black powder storage authorized without a licence (from 75 kg to 25 kg) may drive some unlicensed retailers to obtain a licence. This will represent a new cost for those who choose a licence over a reduction in black powder storage. That said, the current structure of the propellant powder market suggests few new licences will be requested. It is estimated that there are 40 retailers who store between 25 kg to 75 kg of black powder without a licence. Assuming 25 of them were to get licensed at a cost of $143 per magazine licence, the total cost is estimated to be $3,575 (undiscounted) per year.

In addition, while the industry will benefit from the removal of the requirement for annual reports for I, E, and D explosives, they will now be required to keep records for two years. At an estimated cost of $50 per hour and an estimated effort of 15 minutes per licence to keep records, the total cost of record keeping is estimated to be $11,362 (undiscounted) annually. This cost applies to all current 909 licence holders for I, E, and D explosives.

Costs to Canadians

Purchasers of reactive targets and propellant powders will see their costs increased. Canadians who do not hold a fireworks operator certificate — pyrotechnician will be required to show a PAL or a PAIN to purchase propellant powders. Between the application cost and the required course, a PAL will cost several hundred dollars. However, the number of existing propellant powder users without a PAL is small, so this cost overall is not expected to be large.

Conversations with stakeholders suggest that potentially fewer than 100 propellant powder users do not already have a PAL. The cost of a PAL is $83.40 in addition to $190 for the cost of the course and 24 hours of time to complete the course. The Review used the average Canadian wage of $31.60 per hour to calculate the cost of 24 hours of time for 100 stakeholders. These assumptions provide a cost of $103,180 (undiscounted) in Year 1 and a cost of $8,340 (undiscounted) in Year 6 (to renew the expired PAL, but no need to retake the course).

Likewise, purchasers of reactive targets are able to purchase or store only 6 kg (instead of 20 kg) under the amendments, requiring more frequent trips to the store or more frequent online purchases. Assuming individuals buy the maximum legal amount of reactive targets, the amendments will then result in 772 additional transactions for reactive targets per year. For this analysis, it is assumed that half of the orders are done online and half are done via pickup. Assuming fixed shipping costs of $13 and pickup costs of two hours (at the average Canadian wage of $31.60 per hour), the calculated increased cost is $29,413 (undiscounted) per year.

Cost-benefit statement
Table 1: Monetized costs
Impacted stakeholder Description of cost First year (2023) Year 6
(2028)
Final year (2032) Total PV (see Note 2) Annualized value
Industry Screening letter of employment $51,050 $51,050 $51,050 $358,554 $51,050
Transportation accident reports $3,120 $3,120 $3,120 $21,914 $3,120
Black powder reduction in storage $3,575 $3,575 $3,575 $25,109 $3,575
Two-year record keeping for I, E, and D explosives $11,362 $11,362 $11,362 $79,805 $11,362
Canadians PAL licence to purchase propellant powder (if no fireworks operator certificate or PAIN) $103,180 $8,340 $0 $101,987 $14,520
Increased transactions to purchase reactive targets $29,413 $29,413 $29,413 $206,586 $29,413
Total Total costs $201,700 $106,860 $98,520 $793,955 $113,040
Table 2: Monetized benefits
Impacted stakeholder Description of benefit First year (2023) Year 6
(2028)
Final year (2032) Total PV
(see Note 2)
Annualized value
Industry Removing annual reports $454,500 $454,500 $454,500 $3,192,218 $454,500
Updating towing requirements $10,125 $10,125 $10,125 $71,114 $10,125
Adding to equivalent documents $386,325 $386,325 $386,325 $2,713,385 $386,325
Total Total benefits $850,950 $850,950 $850,950 $5,976,717 $850,950
Table 3: Summary of monetized costs and benefits
Impacts First year
(2023)
Year 6 (2028)
(see Note 1)
Final year
(2032)
Total PV
(see Note 2)
Annualized
value
Total costs $201,700 $106,860 $98,520 $793,955 $113,040
Total benefits $850,950 $850,950 $850,950 $5,976,717 $850,950
NET IMPACT (NPV) $649,250 $744,090 $752,430 $5,182,762 $737,910

Note 1: Data on changes to the explosives industry is not available; therefore, it is assumed that costs will remain the same. This may be revised if needed according to comments received during the prepublication period.

Note 2: The Total Present Value (TPV) is calculated over 10 years, using the formula: TPV = n t=0 ct/(1+r)t , where ct is the cost in year t, rt is the discount rate (7%), and n is the number of years assessed (10).

Qualitative impacts

The following is a list of the positive impacts that will be achieved through the amendments:

  1. Enhanced public safety from a reduction in total amount and individual container size of unlicensed black powder storage, reducing the potential impact of an accidental propellant powder ignition (all Canadians);
  2. Enhanced public safety from reducing the number of reactive targets that can be purchased/stored/mixed, therefore limiting the impact of the misuse of reactive targets (all Canadians);
  3. Enhanced public safety associated with enhanced security screening requiring buyers who do not hold a valid fireworks operator certificate — pyrotechnician purchasing propellant to show a PAL or a PAIN (all Canadians);
  4. Enhanced policy coherence from the creation of a new class of low hazard novelty devices and re-categorization of certain fireworks allowing for the sale of low-risk fireworks throughout the year (benefits apply to roughly 407 vendor magazine licences as well as Canadian users of low hazard fireworks); and
  5. Increased policy coherence from increasing the minimum age for explosives work from 17 to 18 (1 021 impacted high-hazard licences).
Sensitivity analysis

The sensitivity analysis exists to test the robustness of a CBA. Two tests were conducted for this CBA. The first was a partial sensitivity analysis, using alternative discount rates to observe the impact of assumptions on the CBA. Higher discount rates erode the NPV of a project. For this sensitivity analysis, two rates were used — 10% and 3%. While the 10% rate reduces the size of the NPV compared to the base case, the NPV remains highly positive, at $4,524,843. This indicates that the CBA is not highly sensitive to changes in the discount rate, remaining highly positive after more than doubling the discount rate assumption. Intuitively, a lower discount rate of 3% leads to a significantly higher NPV estimate of $6,311,213.

Table 4: Partial sensitivity analysis
  10% Discount  3% Discount  Baseline (7%) 
PV benefits $5,228,719 $7,258,776 $5,976,717
PV costs  $703,876 $947,563 $793,957
NPV  $4,524,843 $6,311,213 $5,182,760
Table 5: Cost assumptions sensitivity analysis
  Scenario 1 Scenario 2 Scenario 3 Baseline
PV costs $930,053 $2,228,171 $4,020,940 $793,955
NPV $5,046,664 $3,748,546 $1,955,777 $5,182,762

This subsection has three scenarios that examine the impact of different cost assumptions on the NPV. Scenario 1 changes the cost assumptions for reactive targets and assumes that all additional purchases are now made in person (as opposed to a 50/50 split between in-person and online purchases in the base case). This increases the PV of costs to $930,053 and lowers the NPV to $5,046,664. While this is lower than the base case, it is still a highly positive result.

Scenario 2 changes the assumption for the number of screening letters of employment required per licence for approval letters. While the base case assumed two letters per licence, scenario 2 assumes 10 letters per licence. This increases the PV of costs to $2,228,171 and reduces the NPV to $3,748,546. Scenario 3 makes the same change, but assumes 20 letters are required per licence, providing a PV of costs of $4,020,940 and an NPV of $1,955,777.

In each case, changing the cost assumptions can increase the PV of costs and reduce the NPV, relative to the base case. However, despite these changes, the NPV remains highly positive, providing confidence that the net impact of the regulatory changes are positive.

Small business lens

The analysis under the small business lens concluded that the amendments will impact small businesses. There are well over 1 000 active business-related licences issued under the Regulations, representing hundreds of different stakeholders, including many small businesses. Consultations included small businesses who provided information on the costs and benefits of the amendments, advising that any costs should be kept lower for small businesses. All businesses (large and small) supported the amendments and did not suggest any further changes.

The amendments can be broken into administrative and compliance costs. The administrative costs pertain to

The compliance costs pertain to

The Review expects all businesses (including small businesses) to benefit from improved clarity, the reduction of the administrative burden and regulatory streamlining. The frequency with which a business encounters the Regulations is a determining factor in how impacted the business will be from the amendments.

The amendments listed here carry a large net benefit, with benefits per business far exceeding costs per business. Because of this large net benefit and that each regulatory amendment seeks to either reduce costs or enhance public safety, no specific changes were made to the amendments to accommodate small businesses.

Small business lens summary
Table 6: Compliance costs
  Annualized value  Present value 
Total compliance cost  $48,427 $340,129
Table 7: Administrative costs savings
  Annualized value  Present value 
Total administrative cost savings $512,821 $3,601,838
Table 8: Net compliance and administrative costs
  Annualized value  Present value 
Net cost savings (all impacted small businesses) $464,394 $3,261,708
Net cost savings per impacted small business $206 $1,446

It is estimated that 2 256 small businesses/stakeholders will be impacted by the amendments, with net compliance costs increasing by $48,427 annually, for a present value of $340,129 over the next 10 years. Administrative costs are expected to decrease by $512,821 per year, for a total NPV of $3,601,838. The total net change results in annual benefits of $464,394, for a total PV of $3,261,708. This represents net benefits per business of $206 annually and a PV of $1,446 in benefits per business. The small business lens assumed that the proportion of explosives manufacturing facilities in Canada (roughly 66% of all facilities) was indicative of the proportion of stakeholders who will be classified as small businesses, for stakeholder groups where the exact composition of business size was not known.

One-for-one rule

The one-for-one rule applies since there will be an incremental decrease in the administrative burden on businesses, and the amendments are considered burden out under the rule.

The industry was consulted on the amendments and provided information on the costs and cost savings associated with each amendment. No concerns were raised about increased costs, with an overwhelming support for the benefits such as increased safety and the reduced administrative burden, which provide a net cost savings. As described in the “Benefits and costs” section, the increase in incremental administrative costs is linked to the new screening letter of employment, the introduction of transportation accident reports, and the requirement to keep records for two years rather than submit an annual report. However, the package also removes an administrative burden through three amendments, which include

These changes represent a net reduction in the administrative burden of $301,062 annually, providing a net benefit of $91.37 per stakeholder/business.

The monetized impacts presented in this section have been expressed in 2012 Canadian dollars (2012 Can$) and discounted to a 2012 base year. These calculations are done in compliance with the Red Tape Reduction Regulations, which specify the required method for estimating the administrative burden.

Regulatory cooperation and alignment

The amendment to raise the minimum age for hazardous work from 17 to 18 years of age has been introduced to comply with an international convention. In 2016, Canada ratified the ILO’s Minimum Age Convention, 1973, which states that work that is likely to jeopardize health and safety should not be carried out by individuals who are younger than 18 years of age.

While the amendments are not part of any existing formal regulatory cooperation initiative, the Review assessed the regulatory regimes of other jurisdictions and aligned where possible to ensure the amendments reflect good regulatory practices. The Review found that, for many regulatory requirements, the Program and the explosives regulatory regime in Canada are the international leader when it comes to regulating the explosives sector.

The amendments will align Canadian requirements with different aspects of existing regulations or standards in other jurisdictions, such as the following:

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

No gender-based analysis plus (GBA+) impacts have been identified for these amendments. There are no expected quantifiable adverse impacts predicted for any groups based on gender, sex, age, language, education, geography, culture, ethnicity, income, ability, sexual orientation or gender identity. The regulatees for the amendments tend to be within the 18- to 65-year-old range, more male than female and are more often in rural areas. Regardless, the amendments do not present a large effect on other distributional issues.

Implementation, compliance and enforcement, and service standards

Implementation

The amendments will come into force upon publication in the Canada Gazette, Part II. To support implementation, NRCan has updated guidance materials as needed and will make them available to stakeholders on or before the date of publication in the Canada Gazette, Part II. NRCan will notify stakeholders of the changes, provide additional information on the amendments on the Department’s website, and continue to engage closely with stakeholders, as needed.

Compliance and enforcement

Compliance and enforcement activities will begin on the coming-into-force date of the amendments. They may include monitoring compliance through an inspection program, compliance verification and investigation activities based on complaints or identified non-compliance with the Regulations, and education and information sharing through the development of information materials and other compliance promotion activities. NRCan will conduct outreach activities as needed to increase awareness of the new requirements and to assist stakeholders in achieving compliance.

Service standards

The existing service standard for NRCan to make a decision on applications for authorizations of explosives for both specified and indefinite periods is within 40 days from receipt of the complete documentation. NRCan’s existing service standard to process applications for Part 8 approval letters for licences, permits and certificates is 30 business days from receipt of the complete documentation and fee payment. These service standards will apply to the amendments to Part 3 for applications for authorizations of explosives for specified periods and to the amendments to Part 8 for approval letters for licences, permits and certificates.

Contact

Susan Archer
Executive Director
Explosives Operations and Regulatory Affairs
Natural Resources Canada
Telephone: 343‑572‑5742
Email: susan.archer@nrcan-rncan.gc.ca