Regulations Amending the Multi-Sector Air Pollutants Regulations: SOR/2025-229

Canada Gazette, Part II, Volume 159, Number 25

Registration
SOR/2025-229 November 21, 2025

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

P.C. 2025-809 November 21, 2025

Whereas, under subsection 332(1)footnote a of the Canadian Environmental Protection Act, 1999 footnote b, the Minister of the Environment published in the Canada Gazette, Part I, on March 8, 2025, a copy of the proposed Regulations Amending the Multi-Sector Air Pollutants Regulations, and persons were given an opportunity to file comments with respect to the proposed Regulations or to file a notice of objection requesting that a board of review be established and stating the reasons for the objection;

Whereas, under subsection 93(3) of that Act, the National Advisory Committee has been given an opportunity to provide its advice under section 6footnote c of that Act;

And whereas, in the opinion of the Governor in Council, under subsection 93(4) of that Act, the proposed Regulations do not regulate an aspect of a substance that is regulated by or under any other Act of Parliament in a manner that provides, in the opinion of the Governor in Council, sufficient protection to the environment and human health;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of the Environment and the Minister of Health, makes the annexed Regulations Amending the Multi-Sector Air Pollutants Regulations under subsections 93(1)footnote d and 330(3.2)footnote e of the Canadian Environmental Protection Act, 1999 footnote b.

Regulations Amending the Multi-Sector Air Pollutants Regulations

Amendments

1 Subsection 2(7) of the Multi-Sector Air Pollutants Regulations footnote 1 is replaced by the following:

Methods incorporated by reference

(7) Any method of the EPA, ASTM or GPA that is incorporated by reference into these Regulations is incorporated as amended from time to time.

2 (1) The definition rated capacity in section 4 of the Regulations is replaced by the following:

rated capacity
means
  • (a) in relation to a pre-existing boiler or heater, the lesser of the following, expressed in GJ/h, as specified on the nameplate affixed to the boiler or heater or, in the absence of such a nameplate, as set out in a document provided by the manufacturer:
    • (i) the maximum thermal energy — based on the higher heating value of the fuel combusted — that the boiler or heater was capable of producing in an hour on its commissioning date, and
    • (ii) the maximum thermal energy — based on the higher heating value of the fuel combusted — that the boiler or heater is capable of producing in an hour; and
  • (b) in relation to any other boiler or heater, the maximum thermal energy — based on the higher heating value of the fuel combusted — that the boiler or heater is capable of producing in an hour, expressed in GJ/h, as specified on the nameplate affixed to the boiler or heater or, in the absence of such a nameplate, as set out in a document provided by the manufacturer. (capacité nominale)

(2) Section 4 of the Regulations is amended by adding the following in alphabetical order:

GPA
means the GPA Midstream Association, formerly known as the Gas Processors Association. (GPA)
GPA 2261-25
means the method entitled Analysis for Natural Gas and Similar Gaseous Mixtures by Gas Chromatography, published by GPA. (méthode GPA 2261-25)
GPA 2286-24
means the method entitled Method for the Extended Analysis of Natural Gas and Similar Gaseous Mixtures by Temperature Program Gas Chromatography, published by GPA. (méthode GPA 2286-24)

3 The portion of subsection 12(1) of the Regulations before paragraph (a) is replaced by the following:

Pre-existing boilers and heaters — classification

12 (1) A pre-existing boiler or heater is classified — in accordance with its classification NOx emission intensity determined in accordance with subsection 34(1) or redetermined under subsection 36(1) or 36.1(1) — as follows:

4 (1) Subparagraph 16(2)(a)(i) of the Regulations is replaced by the following:

(2) Paragraph 16(2)(b) of the Regulations is replaced by the following:

5 Subparagraph (a)(i) in the description of H in section 20 of the Regulations is replaced by the following:

(i) a weighted average calculated on the basis of the concentration — expressed in kg/kg — of each of the constituents of the commercial grade natural gas, as determined in accordance with ASTM D1945-03, ASTM D1946-90, GPA 2261-25 or GPA 2286-24, or

6 Subparagraph 22(a)(iv) of the Regulations is replaced by the following:

7 Paragraph 23(2)(a) of the Regulations is amended by striking out “and” at the end of subparagraph (i) and by adding the following after subparagraph (ii):

8 The Regulations are amended by adding the following after section 26:

Common stack

26.1 (1) A stack test or CEMS test at a common stack may be used to determine the NOx emission intensity for all of the boilers and heaters that share the common stack and are operating during the test.

Determination of intensity — only boilers or heaters

(2) For the purposes of sections 34 and 36, if the only devices that share a common stack and are operating during a stack test or CEMS test are boilers or heaters, the result of that test applies when determining the NOx emission intensity of each of those boilers or heaters.

Determination of intensity — presence of other devices

(3) For the purposes of sections 34 and 36, if a boiler or heater shares a common stack with a device to which this Part does not apply and that is operating during the test, the NOx emission intensity of that boiler or heater is determined by the formula

(ΣrQr × Eout + ΣuQu × Eout − ΣuQu × Eu) ÷ ΣrQr
where
Qr
is the energy, expressed in GJ, of the fuel combusted during the test by the rth boiler or heater;
Eout
is the NOx emission intensity measured during the test, expressed in g/GJ;
Qu
is the energy, expressed in GJ, of the fuel combusted during the test by the uth device;
Eu
is the manufacturer’s guaranteed NOx emission intensity value, expressed in g/GJ for the uth device or, if the manufacturer has not provided such a guarantee, 26 g/GJ;
r
is the rth boiler or heater to which this Part applies that is operating at the common stack during the test, where r goes from 1 to n and n is the number of boilers or heaters that meet those criteria; and
u
is the uth device to which this Part does not apply that is operating at the common stack during the test, where u goes from 1 to n and n is the number of devices that meet those criteria.

Reference period

(4) For greater certainty, if subsection (2) or (3) applies with respect to section 34, the stack test or CEMS test must have been conducted during the reference period described in subsection 34(1).

Initial test or compliance test

(5) For the purposes of sections 33 and 38, the NOx emission intensity of a boiler or heater that shares a common stack with any other device is deemed not to exceed the applicable limit set out in section 6, 7, 9 to 11, 13 or 14 if the NOx emission intensity of the common stack does not exceed the limit that is determined by the formula

(Σj(Qj × Lj) + Σk(Qk × Ck) + Σu(Qu × Eu)) ÷ (ΣjQj + ΣkQk + ΣuQu)
where
Qj
is the energy, expressed in GJ, of the fuel combusted during the test by the jth boiler or heater;
Lj
is the NOx emission intensity limit, expressed in g/GJ, that applies to the jth boiler or heater;
Qk
is the energy, expressed in GJ, of the fuel combusted during the test by the kth boiler or heater;
Ck
is the classification NOx emission intensity, expressed in g/GJ, of the kth boiler or heater;
Qu
is the energy, expressed in GJ, of the fuel combusted during the test by the uth device;
Eu
is the manufacturer’s guaranteed NOx emission intensity value, expressed in g/GJ for the uth device or, if the manufacturer has not provided such a guarantee, 26 g/GJ;
j
is the jth boiler or heater to which this Part applies that is operating at the common stack during the test and that is required under this Part to meet a NOx emission intensity limit, where j goes from 1 to n and n is the number of boilers or heaters that meet those criteria;
k
is the kth boiler or heater to which this Part applies that is operating at the common stack during the test but that is not required under this Part to meet a NOx emission intensity limit, where k goes from 1 to n and n is the number of boilers or heaters that meet those criteria; and
u
is the uth device to which this Part does not apply that is operating at the common stack during the test, where u goes from 1 to n and n is the number of devices that meet those criteria.

Redetermination after triggering event

(6) When a triggering event described in subsection 37(3) occurs with respect to a boiler or heater that shares a common stack with any other device, the NOx emission intensity of the boiler or heater is determined by the formula

((ΣtQt + ΣuQu + ΣxQx) × Eout − ΣuQu × Eu − ΣxQx × Cx) ÷ ΣtQt
where
Qt
is the energy, expressed in GJ, of the fuel combusted during the test by the tth boiler or heater;
Qu
is the energy, expressed in GJ, of the fuel combusted during the test by the uth device;
Qx
is the energy, expressed in GJ, of the fuel combusted during the test by the xth boiler or heater;
Eout
is the NOx emission intensity measured during the test, expressed in g/GJ;
Eu
is the manufacturer’s guaranteed NOx emission intensity value, expressed in g/GJ, for the uth device or, if the manufacturer has not provided such a guarantee, 26 g/GJ;
Cx
is the classification NOx emission intensity, expressed in g/GJ, of the xth boiler or heater;
t
is the tth boiler or heater to which this Part applies that underwent a triggering event and is, during the test, operating at the common stack, where t goes from 1 to n and n is the number of boilers or heaters that meet those criteria;
u
is the uth device to which this Part does not apply that is operating at the common stack during the test, where u goes from 1 to n and n is the number of devices that meet those criteria; and
x
is the xth boiler or heater to which this Part applies that did not undergo a triggering event and that is operating at the common stack during the test, where x goes from 1 to n and n is the number of boilers or heaters that meet those criteria.

Request for information

(7) A responsible person for a boiler or heater who determines a NOx emission intensity in accordance with subsection (3), (5) or (6) must, on the Minister’s request, provide to the Minister any supporting data used to make that determination.

9 (1) Section 27 of the Regulations is amended by adding the following after subsection (1):

Exception

(1.1) However, if conducting a test run that lasts 30 minutes would not be both safe and technically feasible without risking damage to equipment, each test run must last as long as is safe and technically feasible without risking damage to equipment.

(2) Paragraph 27(2)(b) of the Regulations is replaced by the following:

10 Subparagraph 28(1)(a)(i) of the Regulations is repealed.

11 Paragraph 33(5)(a) of the Regulations is replaced by the following:

12 The Regulations are amended by adding the following before section 37:

Redetermination after election under subparagraph 34(1)(b)(vi)

36 (1) The classification NOx emission intensity of a boiler or heater for which an election under subparagraph 34(1)(b)(vi) is made to have a classification NOx emission intensity of 80 g/GJ assigned to it may, until December 31, 2025, be redetermined during a reference period described in subsection (3).

Stack test or CEMS test

(2) The redetermination must be made by means of

Reference period

(3) The reference period for the redetermination begins on June 17, 2016 and ends on the day that is chosen by a responsible person for the boiler or heater.

Redetermination — NOx emission intensity

(4) The classification NOx emission intensity that is redetermined under subsections (1) to (3) replaces the classification NOx emission intensity of 80 g/GJ assigned as a result of the election made under subparagraph 34(1)(b)(vi).

Redetermination — record of information

36.1 (1) The classification NOx emission intensity of a boiler or heater may, after December 31, 2025, be redetermined to be 40 g/GJ if a responsible person for the boiler or heater has a record of information that establishes that it is designed to have a NOx emission intensity of less than 40 g/GJ if its NOx emission intensity were determined by means of a stack test conducted while it meets the conditions set out in paragraphs 27(2)(a) to (e).

Application — boiler or heater not in use

(2) This section applies only in respect of a boiler or heater for which a responsible person has a record of information that establishes that the boiler or heater did not produce thermal energy during

13 (1) Subsection 37(2) of the Regulations is replaced by the following:

Replacement

(2) The redetermination under subsection (1) replaces the most recent classification NOx emission intensity for the boiler or heater redetermined under subsection 36(1) or 36.1(1) only if it is greater than that most recent classification NOx emission intensity.

(2) Paragraph 37(3)(a) of the Regulations is replaced by the following:

(3) Paragraph 37(4)(a) of the Regulations is replaced by the following:

14 Paragraph 38(5)(a) of the Regulations is replaced by the following:

15 (1) Subparagraphs 43(1)(e)(i) and (ii) of the Regulations are replaced by the following:

(2) Subparagraphs 43(1)(f)(i) and (ii) of the Regulations are replaced by the following:

(3) Paragraph 43(1)(g) of the Regulations is replaced by the following:

16 Section 44 of the Regulations is amended by striking out “and” at the end of paragraph (c) and by adding the following after paragraph (d):

17 Schedule 5 to the Regulations is amended by adding the following after section 8:

9 The following information respecting a boiler or heater whose classification NOx emission intensity is redetermined under subsection 36.1(1) of these Regulations:

18 (1) The portion of section 3 of Schedule 6 to the Regulations before paragraph (a) is replaced by the following:

3 The following information — if it has not been previously provided or has changed since the most recent report that the responsible person has provided to the Minister — respecting the boiler or heater:

(2) Paragraph 3(k) of Schedule 6 to the Regulations is amended by striking out “and” at the end of subparagraph (iv) and by adding the following after subparagraph (v):

(3) Paragraph 3(l) of Schedule 6 to the Regulations is amended by striking out “and” at the end of subparagraph (ii), by adding “and” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):

19 (1) The portion of section 3 of Schedule 7 to the Regulations before paragraph (a) is replaced by the following:

3 The following information — if it has not been previously provided or has changed since the most recent report that the responsible person has provided to the Minister — respecting the boiler or heater:

(2) Paragraph 3(h) of Schedule 7 to the Regulations is amended by striking out “and” at the end of subparagraph (iv) and by adding the following after subparagraph (v):

(3) Paragraph 3(i) of Schedule 7 to the Regulations is amended by striking out “and” at the end of subparagraph (ii), by adding “and” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):

Coming into Force

20 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.)

Issues

The Department of the Environment (the Department) has determined that test procedures in the Multi-Sector Air Pollutants Regulations, Part I (the 2016 Regulations), also known as the MSAPR, are inadequate for certain existing boiler and heater configurations and may lead to hazardous testing conditions for the determination of their nitrogen oxides (NOx) emissions. Consequently, at least 41 boilers and heaters could not be properly classified based on their NOx performance, as their NOx emissions remained untested, or their tests were deemed invalid or could not be completed under current provisions. The Regulations Amending the Multi-Sector Air Pollutants Regulations (the Amendments) address these issues by extending the deadline for completing a valid NOx test and changing the NOx testing provisions to allow more flexibility in testing various boiler and heater configurations so that regulated entities can comply with the 2016 Regulations.

Background

Under the Air Quality Management System (AQMS) adopted by Ministers of the Environment in 2012, federal, provincial and territorial governments collaborate to address air pollution. The AQMS includes base-level industrial emissions requirements (BLIERs) for key industrial sources and equipment types. BLIERs for several sectors and equipment types were agreed as part of the development of the AQMS in a process that included industry representatives. BLIERs are set by the federal government through regulatory and non-regulatory instruments. The 2016 Regulations, which came into force on June 17, 2016, put in place the BLIERs for boilers and heaters, stationary spark-ignition engines and the cement sector. Part 1 of the 2016 Regulations sets NOx emission standards for gaseous fossil fuel-fired industrial boilers and heaters. Part 2 sets NOx emission standards for gaseous fossil fuel-fired stationary spark-ignition engines. Part 3 sets NOx and sulphur dioxide emission standards for cement manufacturing facilities.

The natural gas-fired boilers and heaters targeted by Part 1 of the MSAPR makes up the largest segment of industrial boilers and heaters in Canada. There are approximately 1 300 boilers and heaters subject to the 2016 Regulations, Part 1, located in over 300 industrial facilities across Canada. Over 77% of these boilers and heaters are used in the oil and gas sector, but they are also used in other sectors, including chemicals (7.0%), pulp and paper (6.6%), power plants (2.6%) and potash production (2.1%).

A key requirement of the 2016 Regulations was the obligation for operators of boilers and heaters commissioned prior to June 17, 2016 (referred to as pre-existingfootnote 2 boilers and heaters) to determine the NOx emissions performance class of their boilers and heaters. To do so, operators had to perform a valid NOx test between June 17, 2016, and December 31, 2022, to determine the NOx emission intensity of their boilers and heaters, which would then be used to determine their class. Pre-existing boilers and heaters with a NOx emission intensity of less than 70 g of NOx per gigajoule (GJ) of fuel combusted would face less stringency. Conversely, pre-existing boilers and heaters with higher emissions would face more stringent emission intensity standards. See Table 1 for a description of the three performance classes, which are determined based on the NOx emission intensity of the pre-existing boiler or heater.

The deeming rule of the 2016 Regulations, Part I, stipulates that if an operator was not able to perform a valid NOx test for a pre-existing boiler or heater during the prescribed period, the boiler or heater would consequently be deemed to be of the worst NOx performance class (class 80). To comply with the 2016 Regulations, class 80 units would be required to achieve a stringent NOx emission intensity limit of 26 g/GJfootnote 3 by January 1, 2026. This would impact most boilers and heaters that are deemed class 80. The most impacted are operators of true class 40 boilers and heaters, as those units would face a NOx emission intensity limit of 26 g/GJ starting in 2026 that they would otherwise avoid for the rest of their useful life. Also impacted are operators of true class 70 that have been deemed class 80, as those boilers and heaters would face a NOx emission intensity limit of 26 g/GJ, which would apply 10 years earlier (2026 for class 80 and 2036 for class 70) than if they were classified in their appropriate class.

Table 1: Classification and NOx emission intensity deadlines
Classification NOx emission intensity (from NOx test) NOx emission intensity limit (imposed by the Amendments) deadline
Class 40 < 70 g/GJ N/A N/A
Class 70 > 70 and < 80 g/GJ 26 g/GJ January 1, 2036
Class 80 > 80 g/GJ 26 g/GJ January 1, 2026

In the Regulatory Impact Analysis Statement (RIAS) for the 2016 Regulations, Part 1, it was assumed that a valid NOx test could be performed on all equipment and thus that all equipment would be classified in the appropriate NOx performance class by the testing deadline. It was estimated in the 2016 RIAS that 53 boilers and heaters would be determined to be either a class 70 or 80 following the testing of their NOx emissions. Upon reviewing the pre-existing boiler and heater submissions (early 2023) and reaching out to industry (September 2023), the Department found that many operators had difficulty interpreting and/or complying with the 2016 Regulations NOx testing provisions for a varied range of equipment configurations. For some configurations, complying with the 2016 Regulations requirements would lead to unsafe testing conditions for the equipment or for human life. As of August 2024, a valid NOx test had not been submitted for 324 pre-existing boilers and heaters. This affected 83 facilities, predominantly operated in the oil and gas sector. Failure to demonstrate compliance with the testing provisions, however, triggered the deeming rule of the 2016 Regulations and resulted in these 324 pre-existing boilers and heaters being deemed of the worst performing class (class 80).

Based on the year these pre-existing boilers and heaters were commissioned and consultations with 17 industry representatives, equivalent to 67% of all affected boilers and heaters, it was estimated that 218 pre-existing boilers and heaters could be impacted by the deemed class 80 limit. The other 106 boilers and heaters are estimated to be either true class 80, decommissioned, or no longer regulated under the 2016 Regulations. Impacted boilers and heaters are the ones that could have been classified as a class 40 or 70 if they could have been tested adequately under existing provisions. The Amendments are designed to enable the operators of pre-existing boilers and heaters impacted by the deemed class 80 limit to demonstrate compliance with the testing requirements and provide them with an opportunity to reclassify their pre-existing boilers and heaters within their true class. The outcome of the reclassification of a deemed class 80 boiler and heater to a class 40 — which is the true class of the majority of deemed class 80 boilers and heaters — means those reclassified boilers and heaters will not have to be retrofitted to comply with the NOx emissions limit for class 80 units.

Table 2 below provides a breakdown of the location and industrial sector of the 218 pre-existing boilers and heaters impacted by the Amendments.

Table 2: Distribution of impacted boilers and heaters
Sector / province AB BC NL ON QC SK Total
Chemicals 6 N/A N/A 6 N/A N/A 12
Oil and gas 140 5 2 N/A N/A 11 158
Oil sands 30 N/A N/A N/A N/A N/A 30
Potash N/A N/A N/A N/A N/A 6 6
Power plants 1 N/A N/A N/A N/A N/A 1
Pulp and paper N/A 1 N/A 7 3 N/A 11
Total 177 6 2 13 3 17 218

Following consultation with the regulated industry impacted by the boilers and heaters classification issue, the Department discovered that, of the 218 impacted boilers and heaters, at least

In the absence of information on the remaining boilers and heaters, the Department, in accordance with the deeming rule of section 12(2) of the 2016 Regulations, and for the purpose of analysis, has deemed this equipment to be either class 80 due to testing issues, or for not having carried a classification test on time, decommissioned, or to be true class 80 equipment.

Objective

The Amendments aim to add flexibility to the testing requirements to apply to a greater variety of equipment configurations. The Amendments also provide regulated parties with an extended testing period to conduct a valid NOx test for the 218 pre-existing boilers and heaters for which a valid NOx test was not submitted. This includes at least 41 boilers and heaters that had confirmed issues to demonstrate compliance as a result of existing testing provisions. This will allow operators of the 218 impacted boilers and heaters time and flexibility to retest their equipment. In addition, the Amendments make minor technical changes to improve the operation of the MSAPR and provide targeted flexibility.

Description

The Amendments to Part 1 of the 2016 Regulations provide an opportunity for operators of pre-existing boilers and heaters impacted by the deemed class 80 limit to reclassify their equipment. The Amendments also add flexibilities to the testing requirement to ensure safe and predictable testing conditions for equipment configurations found in industry. The Amendments incorporate the following:

Regulatory development

Consultation

Following the classification deadline of December 31, 2022, under section 36 of the 2016 Regulations, the Department analyzed the reports submitted to determine the scope of the NOx testing issues by assessing the number of boilers and heaters for which a valid NOx test could not be performed. The analysis demonstrated that a valid test was not submitted for 324 boilers and heaters, raising Department concerns about the possibility that a significant number of boiler and heater operators were facing issues in complying with the NOx testing requirements.

To determine the reasons for missing the classification deadline and to validate the impact of the NOx testing issues, the Department engaged with 17 companies during the fall of 2023, with regional and sectorial representativeness, that owned or operated 65% of the 324 boilers and heaters for which a valid NOx test was not submitted. The comments heard were in line with what the Department had heard over eight years of administrating the MSAPR and confirmed the scope of the testing issues.

Due to the necessity of finalizing the Amendments before January 1, 2026 (the coming into force of the NOx emissions limits for pre-existing boilers and heaters), the Department further engaged in 2024 with a limited group of companies that were facing the most complex issues to validate the applicability of the proposed rules for common stacks, as well as the other testing flexibility that is proposed. In general, those consulted were supportive of the Department’s proposal to add flexibilities to the testing provisions and of an opportunity to reclassify impacted equipment.

In March 2025, the Government of Canada published the proposed Amendments in the Canada Gazette, Part I, for a 60-day public comment period. Regulated entities, as identified through reporting, and their industry associations were advised of this publication and the associated comment period. The Department received 12 submissions from interested parties during the 60-day public comment period, including from impacted industry, industry associations and the general public. Follow-up bilateral meetings were held with national industry associations and others at their invitation. A summary of the comments received and how those were considered in making the Amendments is provided below.

Analysis and responses to feedback from interested parties following the publication of the proposed Amendments in the Canada Gazette, Part I

Overall, comments indicated strong support for the Amendments, the additional flexibility they provide to industry in recognition of real-world testing conditions and how they address certain technical issues that have been raised. Respondents particularly appreciated the additional opportunity to conduct testing under safe conditions to reclassify their pre-existing boilers and heaters to avoid being deemed the worst performing class (class 80) due to testing issues.

Stack testing operating conditions

Industry appreciated the added flexibility proposed for testing operating conditions to maintain safety during testing. Some comments proposed further refinement to the wording to emphasize that the test need only be carried out under safe and technically feasible conditions. The Department has integrated those comments into the Amendments.

Threshold of methane concentration used to trigger NOx retesting requirements

The 2016 Regulations define natural gas as having a concentration of methane at or above 90%, and alternative fuels as having a concentration of methane below 90%. A change in the methane concentration of the fuel being combusted across the 90% threshold is indicative of a fuel change, which requires the operator to retest NOx emissions intensity at both the higher and lower methane concentrations (before and after the fuel switch).

Concerns were raised during earlier discussions with regulated parties that the Alberta natural gas supply generally has a concentration of methane that fluctuates around the 90% threshold. These fluctuations, outside of the operator’s control, would erratically trigger retesting requirements, making it impossible for the operator to comply with the retest requirements. In response, the draft Amendments proposed lowering the threshold of methane concentration in the definition of natural gas to 85%.

Following publication of the draft Amendments, interested parties submitted comments noting that the high variability of methane concentration in many alternative fuels would create the risk of erratically triggering retesting requirements at the 85% threshold, making it impossible for operators to comply with the retest requirements. These comments pertained in particular to alternative fuels comprised of a blend of commercial-grade natural gas and process gas, where the methane concentration of the combined fuel can fluctuate around the 85% threshold.

The Department agrees that these small methane concentration fluctuations could be unpredictable in nature, leading to challenging NOx emissions testing conditions. In response, the Amendments include additional flexibility in the definition of natural gas so that units combusting natural gas would not trigger retesting requirements due to fluctuations in methane concentration of their commercial-grade natural gas supply, without impacting units combusting an alternative fuel.

Consideration for pre-existing shut-in units

Several interested parties raised concerns about pre-existing boilers and heaters that were shut-in (no longer operating) throughout the original testing period and are not expected to resume operations until after January 1, 2026, when the NOx limits are in effect, as they would immediately default to Class 80 upon restart, with no opportunity for testing and reclassification. Commenters requested that testing extensions for shut-in units be provided.

The Department acknowledges that this situation could occur, but notes that if such a boiler or heater were restarted and tested after December 31, 2025, and did test above 80 g NOx/GJ, it would immediately become subject to the NOx limits with no time to refurbish, leading to a non-compliant status. Instead, the Amendments include a provision allowing a pre-existing boiler or heater to be classified as class 40 prior to being restarted, using documentation showing that it is designed to have a NOx emission intensity of less than 40 g/GJ, setting the threshold at the same level as established by the design specification clause of the classification provisions (section 34). Otherwise, it will be deemed a class 80 boiler or heater. The Department’s view is that these provisions provide greater certainty to operators.

Definition of rated capacity

The Department received comments regarding the proposed change to the definition of “rated capacity.” The definition of “rated capacity” in the 2016 Regulations is based on the maximum capacity the boiler or heater can produce, as indicated on the nameplate affixed on its commissioning date or in manufacturer documentation. The draft Amendments proposed changing this to the maximum capacity, as indicated by the current nameplate of the boiler or heater. This was done largely to acknowledge that pre-existing boilers and heaters, which have been converted from fuel oil to natural gas, will have a lower capacity rating after conversion. Interested parties noted that the proposed change could retroactively alter applicability determinations that operators have used since 2016 to establish testing obligations and compliance pathways, with little time to comply with the Amendments if needed.

The Department found that there was a basis for this concern and that the proposed change could have altered the status of compliance decisions for pre-existing boilers and heaters. Therefore, the Amendments define a pre-existing boiler or heater’s rated capacity to mean the lower rated capacity of either the nameplate at the commissioning date or the current nameplate.

Accepted methodologies for determining methane composition

Some interested parties recommended including alternative methane composition determination methodologies published by the GPA Midstream Association. Comments noted that these methodologies are comparable to the methodologies included in the 2016 Regulations, are widely used within industry and provide a more detailed compositional analysis.

The Department concurs with these comments. These methods achieve the same rigour and effectiveness as the methodologies included in the 2016 Regulations. The Department has included GPA 2286 and GPA 2261 as accepted methodologies in the Amendment.

Requests to delay the coming into force of NOx emissions standards

Some interested parties requested that the December 31, 2025, retesting deadline be extended for Class 80 boilers and heaters and that the coming into force of the NOx emissions standards be delayed. The comments expressed concern that there would not be enough time to both test and retrofit equipment if needed prior to the proposed December 31, 2025, testing deadline, noting a limited number of testers available to conduct stack testing and extended timelines to obtain regulatory approvals for retrofit projects. Comments also noted the economic impacts on specific industrial sectors of current international trade disruptions and expressed concern that complying with the 2016 Regulations would create undue financial hardship.

The Department’s position is that most operators have had significant time to test their boilers or heaters and plan for the December 31, 2025, deadline. The objective of the Amendments is to provide a reclassification opportunity to true class 40 and 70 boilers and heaters that faced testing issues under the 2016 Regulations. The Amendments provide an extended window for a valid NOx test to be carried out between June 17, 2016, and December 31, 2025, so operators can continue to proactively test before the coming into force of the NOx standards.

Delaying the coming into force of the NOx limit for class 80 boilers and heaters would require broader consultations with provinces and territories, since the NOx limits were established through the AQMS initiative.

Input prices of equipment upgrades used in cost-benefit analysis

The Department received a comment seeking clarification of input prices used for equipment upgrades in the cost-benefit analysis (CBA). Input factors were maintained from the CBA for the 2016 Regulations, inflated to the year of this analysis (2024 dollars). This was done for consistency, to allow for comparison of the Amendments to the original analysis done for the 2016 Regulations.

Indigenous engagement, consultation and modern treaty obligations

Pursuant to the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, the Department conducted an assessment of modern treaty implications on the Amendments. While a small number of boilers and heaters are located in industrial locations or in regulated entities covered by multiple agreements, this initiative will have no bearing on the key rights area outlined in the agreements because these boilers and heaters are not located on land or businesses owned by the listed modern treaty holders. Thus, the assessment did not identify any modern treaty implications or obligations, and the Amendments targeting testing provisions are not expected to have a direct impact on Indigenous peoples.

Instrument choice

Maintaining the status quo was not considered to be a viable option, as this would have left boiler and heater operators facing issues when testing their units’ NOx emissions and being incorrectly deemed to be out of compliance with the 2016 Regulations.

To meet the objectives of correcting the classification of impacted boilers and heaters, it was determined that the only viable option was to amend the 2016 Regulations.

Amending the 2016 Regulations provides greater flexibility for the quantification of NOx emissions for a variety of equipment configurations in addition to adding a period to determine the NOx performance class of a boiler or heater to enable proper and safe testing to demonstrate compliance.

Regulatory analysis

Benefits and costs

Analytical framework

Based on the analysis for the 2016 Regulations, utilizing reporting ahead of publication, the majority of true class 40 and 70 units were appropriately categorized and, therefore, the quantification of emissions and costs was accurate. Since publication, many of these boilers and heaters have not produced a valid NOx test. The 218 boilers and heaters for which a valid test result within the prescribed timeline of the 2016 Regulations was not produced are deemed class 80 under the 2016 Regulations. If these boilers and heaters remain deemed class 80, their operators would incur incremental costs to comply with the 2016 Regulations. Since 2016, the Department has received sufficient data and disclosure from operators that indicates that the vast majority of affected boilers and heaters would be classified as class 40 and thus would be in compliance with the 2016 Regulations without any changes to their performance. In the absence of the Amendments, the operators of impacted boilers and heaters would be required to make significant investments to retrofit or reconfigure equipment that would be unnecessary for class 40 equipment.

To identify and assess the incremental impacts of the Amendments, two scenarios were developed: the baseline scenario (in the absence of the Amendments) and the regulatory scenario (applying the Amendments). In both scenarios, equipment is assumed to operate at 75% capacity, for 24 hours a day, 365 days a year. The analytical period extends from 2025 to 2035 inclusive (11-year analytical period). Total costs are presented in 2024 Canadian dollars and are discounted to base year 2024 using a 3% discount rate.

Baseline scenario

The baseline scenario reflects a forecast of the current conditions and costs estimated under the 2016 Regulations. Under the baseline scenario, 218 boilers and heaters did not submit valid test results prescribed under the 2016 Regulations and, therefore, were deemed class 80. In the absence of the Amendments, they would be required to meet the class 80 emission standard, and their operators would incur costs to upgrade them to comply with the 2016 Regulations. This would result in incremental emission reductions that were not estimated under the 2016 Regulations and additional testing to demonstrate compliance with the NOx standard in 2026. Baseline NOx emissions were calculated based on the emissions intensity standards that each boiler and heater will be subject to under its classification in the 2016 Regulations, including deemed class 80 boilers and heaters. For any unit whose current emissions are greater than 70 g/GJ NOx or that were deemed class 80, their emissions were estimated at 20 g/GJfootnote 4 for compliance with the 26 g/GJ limit that they are subject to under the 2016 Regulations.

Regulatory scenario

Under the regulatory scenario, the Amendments will result in avoided costs by providing testing flexibility and by extending the classification testing period under the 2016 Regulations to December 31, 2025, to demonstrate the NOx performance of boilers and heaters. These provisions will ensure that operators of boilers and heaters are able to classify their equipment within their appropriate NOx performance class. Doing so will require a new test to be performed in 2025. If successful, the test results will avoid costs related to installing unnecessary and costly retrofits, which could include equipment replacement or facility equipment reconfiguration. Furthermore, misclassified boilers and heaters will no longer be subject to the emission standards prescribed by the 2016 Regulations and will not result in incremental emission reductions outlined in the baseline scenario. Select regulated parties (true class 70 units that were deemed class 80) will incur incremental costs for additional stack testing in 2036. Operators of all units will incur a limited administrative burden to familiarize themselves with reporting requirements of the Amendments.

Incremental impacts

Under the 2016 Regulations, operators of the 218 impacted boilers and heaters are required to test the emissions of their boilers and heaters to demonstrate compliance with the class 80 NOx emissions limits that come into force on January 1, 2026. Under the Amendments, this test is no longer required for boilers and heaters that are reclassified to class 40 or class 70 (208 in Table 3). However, operators of those class 40 and class 70 boilers and heaters are required under the Amendments to perform a test to reclassify them into their true class by the end of 2025. These tests will cancel each other out for boilers and heaters that are true class 40 and 70. Only true class 70 units are required to perform one additional test, since they will still be required under the Amendments to test to demonstrate compliance with the class 70 NOx emission limit that comes into force on January 1, 2036.

Table 3 shows a breakdown of the impacted boilers and heaters, emissions without and with the Amendments, and the requirements for each group.

Table 3: Breakdown of impacted boilers and heaters: emissions and incremental requirements
Amendment classification Emissions without the Amendments (baseline scenario) [g NOx/GJ] Emissions with the Amendments (regulatory scenario)
[g NOx/GJ]		 Number of affected units Administrative costs associated with record keeping and familiarization with Amendments Incremental stack testing costs
Class 40 ≤ 26 ≤ 26 74 Yes No
Class 40 20 table 3 note b 26 < x < 70 121 Yes No
Class 70 20 table 3 note b 2026: 70 ≤ X < 80 table 3 note a 2036: 20 13 Yes Yes
Class 80 20 table 3 note b 20 10 Yes No
Total N/A N/A 218 N/A N/A

Table 3 note(s)

Table 3 note a

Class 70 will still have to be upgraded or replaced to meet the 26 g/GJ target, but Class 70 has 10 more years to do so (Jan 1, 2036, vs. Jan 1, 2026). Therefore, incremental emissions are those over this 10-year difference and are calculated based on the delta between current vs. post-upgrade/replacement emissions intensity.

Return to table 3 note a referrer

Table 3 note b

Under the Amendments, equipment is assumed to operate at 75% capacity, for 24 hours a day, 365 days a year, making their emissions 20 g NOx/GJ when the emissions limit at any given time is 26 g NOx/GJ.

Return to table 3 note b referrer
Quantitative impacts
Benefits

Under the Amendments, the monetized incremental benefits are the cost savings realized from approximately 60% of the 218 boilers and heaters avoiding unnecessary retrofits. These cost savings were calculated based on the incremental costs presented in the RIAS for the 2016 Regulations. For class 70 units, the avoided costs were calculated using the difference in the discounted cost for replacing or upgrading the equipment in 2025 (which would have been required of them in the baseline scenario) versus doing so in 2035 (i.e. when class 70 units are required to be in compliance). Costs estimated in the 2016 Regulations to upgrade boilers and heaters varied by current emission level and unit capacity and ranged from as low as $46,000 to $1 million per unit (2015 dollars), which are inflated to $60,020 to $1.3 million per unit (2024 dollars) in the Amendment analysis. Total avoided costs for operators as a result of the Amendments were estimated to be $14.5 million (2024 dollars, discounted) over the total analytical period.

Costs

Thirteen units deemed class 80 under the 2016 Regulations that will be reclassified as class 70 under the Amendments will incur incremental stack testing costs (as shown in Table 3), alongside costs for the classification NOx test for all units prescribed by the 2016 Regulations. This is an additional test to the baseline scenario with incremental costs incurred in 2036. The cost of undertaking and submitting an additional stack test was assumed to be $10,500 (2024 dollars). Discounting for the test being undertaken in 2036, the total incremental cost for the 13 class 70 units is approximately $95,738 (2024 dollars, discounted). There are no incremental costs from stack testing for units that are reclassified as class 40 or units that remain class 80 under the Amendments, as they will not need to submit a supplemental test to be reclassified.

Regulated parties that own and/or operate the 218 boilers and heaters subject to the Amendments will incur administrative costs to familiarize with the regulatory amendments. This is a one-time upfront cost assumed to be carried out by internal senior management occupations. It was estimated to take 0.5 hours for operators without common stacks, and four hours for operators with common stacks. Units that share a common stack will be subject to additional reporting requirements. They will be required to produce a report recording their calculated weighted average emissions limit within the collective stack. All units are subject to submitting an initial report, and units over a rated capacity of 105 GJ/h are required to submit annual compliance reports, both to be carried out by internal technical occupations. It was estimated that it will take 0.5 hours to complete a compliance report. Furthermore, common stack units will be required to provide, upon ministerial request, their data and calculation of the weighted average emission limit. It was assumed that each unit would be asked once throughout the analytical period and that it would take an internal technical occupation two hours to produce a report. Due to technical limitations, several units are not able to conduct test runs for longer than 30 minutes, and/or cannot conduct stack tests at greater than 60% of the equipment’s rated capacity. Such units are required to record the reason for the exemption to be kept on hand. It was estimated that it would take an internal administrative employee one hour to record and document the rationale. Lastly, administrative costs for the provision of paperwork to provide proof that a unit that was previously shut-in meets the regulatory requirements to be deemed class 40 was estimated to be four hours of labour for an external technical occupation. The total discounted administrative costs associated with the Amendments are $14,628 (2024 dollars, discounted), over the analytical period.

Qualitative impacts
Impacts on emissions

For the baseline scenario, it was estimated that the operators of the impacted 218 boilers and heaters would be required to meet the emission standard for class 80 units and would thus result in an incremental emissions reduction of 25.33 kt of NOx over the analytical period if they were to remain deemed class 80 equipment. The Amendments will provide an opportunity for operators to correct the classification of these boilers and heaters by allowing for more time to perform a valid test. The Amendments will also provide more flexibility to the testing provisions. If the operators of the 218 boilers and heaters could produce a valid NOx test, they will be correctly classified as class 40 and will subsequently no longer be subject to a NOx emission reduction requirement and will not result in any incremental emission reductions.

Impacts on health

Air pollution health benefits were estimated in the RIAS for the 2016 Regulations. The reductions in air pollutant emissions (notably 98 750 tonnes of NOx) associated with performance standards for these boilers and heaters were expected to lower ambient air pollution levels and result in approximately 70 fewer premature mortalities over the 2016 to 2035 period of analysis, as well as fewer morbidity impacts, such as 20 000 fewer days of asthma symptoms and 70 000 fewer days of restricted activity in non-asthmatics. The value of those health benefits over the 2016 to 2035 period was estimated at $388 million (2015 dollars).

Without the Amendments extending the testing timeline, there would be a higher number of retrofits or replacements compared to the original assumptions, which would provide incremental emission reductions. However, the outcome of the classification of the 218 boilers and heaters without valid tests is uncertain.

The Amendments will not change the performance standards or compliance timelines for retrofit or replacements. Further, the Amendments are expected to result in the same emissions reductions from the analysis for the 2016 Regulations. Therefore, the Amendments are expected to have minimal or no impact, both in terms of health and monetized benefits in comparison to the air quality and health impacts estimated in the analysis for the 2016 Regulations.

The Amendments are not expected to result in any new costs, direct or indirect, to the Government or Canadian consumers.

Cost-benefit statement
Table 4: Monetized benefits (present value)
Impacted stakeholder Description of benefit 2025 2026–2034 2035 Total Annualized value
Industry Avoided capital costs $14,483,047 $0 $0 $14,483,047 $1,565,291
All stakeholders Total benefits $14,483,047 $0 $0 $14,483,047 $1,565,291
Table 5: Monetized costs (present value)
Impacted stakeholder Description of cost 2025 2026–2034 2035 Total Annualized value
Industry Familiarization with regulatory amendments for units that do not share a common stack $7,456 $0 $0 $7,456 $806
Familiarization with regulatory amendments, and administrative requirements for units that do share a common stack $2,707 $3,185 $304 $6,196 $670
Incremental stack testing costs $0 $0 $95,738 $95,738 $10,347
Documentation for bringing shut-in units online $0 $299 $0 $299 $32
Record keeping requirement for units with special testing provisions $677 $0 $0 $677 $73
All stakeholders Total costs $10,840 $3,483 $96,043 $110,366 $11,928
Table 6: Summary of monetized benefits and costs (present value)
Impact 2025 2026–2034 2035 Total Annualized value
Total benefits $14,483,047 $0 $0 $14,483,047 $1,565,291
Total costs $10,840 $3,483 $96,043 $110,366 $11,928
Net impact $14,472,207 $-3,483 $-96,043 $14,372,681 $1,553,363

Small business lens

Analysis under the small business lens identified no small businesses that are affected by the Amendments.

One-for-one rule

The one-for-one rule applies, since the Amendments require an increase in the administrative burden on affected businesses. The administrative costs on business include familiarization with the Amendments. Following the International Standard Cost Model Manual and using a 7% discount rate, the annualized increase in administrative costs for each affected business is $2.40 and total annualized administrative costs are $627 (in 2012 Canadian dollars). This represents an “in” under the rule.

Regulatory cooperation and alignment

The Amendments are not expected to have any impact on, or opportunities for, regulatory cooperation and alignment with other jurisdictions.

International obligations

The Amendments do not have any impact on Canada’s international obligations.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA Directive), a strategic environmental and economic assessment preliminary screening was conducted. Regulatory proposals subject to the Cabinet Directive on Regulation are exempted from the economic analysis elements of the SEEA Directive. The preliminary screening showed that the Amendments will not produce important effects related to greenhouse gases (GHG) and/or impact Canada’s climate plans and targets. However, the extension of the reclassification period provided under the Amendments could result in incremental emissions of a maximum of 25 333 tonnes of NOx being emitted over the 11-year analytical period (2025–2035). This is because the extension will provide an opportunity for the 218 boilers and heaters deemed as class 80 to reclassify as class 40. Deemed class 80 equipment would need to be upgraded or replaced by January 1, 2026, in the baseline scenario; whereas under the Amendments, they will either be upgraded/replaced 10 years later (for class 70 equipment) or not at all (for class 40 equipment), which corresponds to incremental NOx emissions.

Gender-based analysis plus

The gender-based analysis plus (GBA+) performed for the Department’s Addressing Air Pollution Horizontal Initiative demonstrated that no groups (based on factors such as gender, sex, age, language, education, geography, culture, ethnicity, income, ability, sexual orientation and gender identity) are expected to be affected disproportionately by air pollution mitigation policies. Specifically, the Amendment will not increase the cost of goods to consumers, nor increase production costs to industry, ensuring no job losses and protecting from any impacts on the economically vulnerable.

Right to a healthy environment

The Government of Canada has a duty, in the administration of the Canadian Environmental Protection Act, 1999 (the Act), to protect the right to a healthy environment as provided for under the Act, subject to reasonable limits. Work to inform the Amendments began before the implementation framework for a right to a healthy environment was published on July 19, 2025. The Amendments are thus proceeding under the transition period referenced in the framework in order to avoid delays to environmental and human health protection. This is supported by the analysis applying the best available science and evidence, which were relied upon to finalize the Amendments. Efforts were made to allow members of the public to meaningfully participate in decision-making processes through webinars and meetings with stakeholders.

Implementation, compliance and enforcement, and service standards

Implementation

The Amendments will come into force upon registration.

The Department will contact boilers and heaters owners or operators through the contact information they provided under the Amendment’s reporting to inform them of the coming into force of the final Amendments. While most of the requirements under the Amendments are straight forward and simple, compliance promotion material will be available to support industry with the more complex quantification rule to group test boilers and heaters that are connected to a common stack. The Department also supports a generic inbox for inquiries on the Amendments.

Compliance and enforcement

Compliance promotion and enforcement activities will continue for the Amendment’s regulated parties.

The Amendments are made under the Act; therefore, enforcement officers would, when verifying compliance with the Amendments, apply the Compliance and Enforcement Policy for the Act. The policy sets out the range of possible enforcement responses to alleged violations. Following an inspection or investigation, when an enforcement officer discovers an alleged violation, the officer would choose the appropriate enforcement action based on the policy.

Contacts

Karishma Boroowa
Director
Electricity and Combustion Division
Department of the Environment
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: combustion@ec.gc.ca

Matthew Watkinson
Executive Director
Regulatory Analysis and Valuation Division
Department of the Environment
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: ravd.darv@ec.gc.ca