Forward Regulatory Plan 2019 to 2021, Environment and Climate Change Canada, chapter 1

Enabling Act

Canadian Environmental Protection Act, 1999

Description

The proposed revised regulations will repeal and replace the current Federal Halocarbon Regulations, 2003.

The Regulations aim to minimize releases of halocarbons to the environment from refrigeration, air conditioning and fire-extinguishing systems that are owned by federal departments, boards and agencies, Crown corporations, or federal works or undertakings; or are located on federal or Aboriginal lands. 

The proposed revisions will address administrative, operational and enforcement issues and will affect certain businesses under federal jurisdiction in the refrigeration, air conditioning, and fire extinguishing sectors.

Standing Joint Committee on the Scrutiny of Regulations

This initiative does not respond to an issue or concern raised by the Standing Joint Committee on the Scrutiny of Regulations.

Departmental regulatory stock review plan

This initiative is associated with the department’s regulatory stock review plan.

Regulatory cooperation efforts (domestic and international)

This initiative does not require regulatory cooperation.

Potential impacts on Canadians, including businesses

The proposed Regulations are expected to result in an overall reduction of administrative burden for regulatees. The proposed Regulations are not expected to impact Canadians or consumers, and no additional costs to government are anticipated as a result of the proposed Regulations.  

Consultations

Electronic and face-to-face consultations took place in 2013. Additional consultations regarding the administrative burden of the Federal Halocarbon Regulations, 2003 and its proposed revisions were held in spring 2015.

A second round of electronic consultations on the proposed revisions concluded on December 19, 2017.

The proposed revised regulations are targeting publication in the Canada Gazette, Part I, in 2020 for a 60-day public comment period.

Further information

Further information is available through the Federal Halocarbon Regulations information webpage.

ECCC Contact

Nicole Folliet
Director, Chemical Production Division
Telephone: 819-420-7708
Fax: 819-938-4218
Email: nicole.folliet@canada.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

2014-2016 Forward Regulatory Plan

Enabling Act

Canadian Environmental Protection Act, 1999

Description

The proposed amendments will revise the Canadian Hydrofluorocarbon (HFC) consumption baseline value currently in the Regulations.

The Department has obtained new and corrected data from industry stakeholders that demonstrate that the Canadian HFC consumption baseline value currently in the regulations is not accurate. Revising the value will avoid excess HFC emissions to the environment that could occur if the original baseline value contained in the regulations was used. 

The proposed amendments will also ensure Canada meets its international obligations under the Kigali Amendment to the Montreal Protocol.

These amendments must be made within 2 years following the Interim Order to modify the Ozone-depleting Substances and Halocarbon Alternatives Regulations. The interim order was published in October 2018.

Standing Joint Committee on the Scrutiny of Regulations

This initiative does not respond to an issue or concern raised by the Standing Joint Committee on the Scrutiny of Regulations.

Departmental regulatory stock review plan

This initiative is not associated with Environment and Climate Change Canada’s regulatory stock review plan.

Regulatory cooperation efforts (domestic and international)

This initiative is not associated with any cooperation. The amendments were required due to new and corrected data from industry stakeholders.

Potential impacts on Canadians, including businesses

There are no additional impacts for Canadians, including businesses, beyond those identified in the Interim Order. There were minor impacts to businesses holding HFC consumption allowances under the Ozone-depleting Substances and Halocarbon Alternatives Regulations and there are no expected impacts from the change to allow the consumption of HCFC-123 as a fire-extinguishing agent until December 31, 2029. 

Consultations

A Notice of Intent was published in the Canada Gazette, Part I in November 2018. A consultation document outlining the regulatory proposal will be published in 2019. 

The publication of the proposed amendments in the Canada Gazette, Part I, is targeted for 2019 for a 75-day public comment period.

Further information

Further information is available through the Ozone layer webpage.

ECCC Contact

Nicole Folliet
Director, Chemical Production Division
Telephone: 819-420-7708
Fax: 819-938-4218
Email: nicole.folliet@canada.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

2018-2020 Forward Regulatory Plan Update

Enabling Act

Canadian Environmental Protection Act, 1999

Description

The proposed regulations will replace the existing Off-Road Compression-Ignition Engine Emission Regulations. In addition to maintaining the current standards for compression-ignition engines, the new regulation will reduce air pollutant emissions from large spark-ignition (gasoline, propane and natural gas) engines and stationary compression-ignition (generally diesel-fueled) engines by establishing emission standards and test procedures that are aligned with those of the United States Environmental Protection Agency.

The proposed regulation will affect manufacturers and importers of:

• off-road mobile large spark-ignition engines and equipment, such as forklifts and ice resurfacers; 
• off-road mobile compression-ignition engines and equipment, such as construction, farming and forestry equipment; and 
• stationary compression-ignition engines, such as generator sets, air compressors and industrial water pumps.

Standing Joint Committee on the Scrutiny of Regulations

The proposed regulations will address comments made by the Standing Joint Committee for the Scrutiny of Regulations. Minor changes will be made to the existing Off-Road Compression-Ignition Engine Emission Regulations to address comments made by the Committee on March 18, 2013 to correct inconsistencies between the English and French versions of the Regulations and improve the clarity and structure of certain provisions.  Minor changes will also be made to the Off-Road Small Spark-Ignition Engine Emission Regulations to address comments made by the Committee on December 7, 2017 to correct inconsistencies between the English and French versions of the Regulations and improve the clarity and structure of certain provisions.

Departmental regulatory stock review plan

This initiative is not associated with Environment and Climate Change Canada’s regulatory stock review plan. 

Regulatory cooperation efforts (domestic and international)

The proposed regulations are part of the Government of Canada’s Addressing Air Pollution Horizontal Initiative, which includes activities to reduce transboundary air pollution, as agreed to under the Canada-U.S. Air Quality Agreement. Under the Ozone Annex to this agreement, Canada and the United States agreed to reduce emissions of ozone precursors, which contribute to smog, including emissions from off-road engines. In addition, this initiative is consistent with the general objectives of the Canada-United States Regulatory Cooperation Council.

Potential impacts on Canadians, including businesses

This regulatory initiative will affect Canadians and businesses that import large spark-ignition and stationary compression-ignition engines. There are no expected significant impacts on international trade or investment.

The reduction of air pollutants from large spark-ignition and stationary compression-ignition engines in Canada is expected to contribute to the protection of human health and the environment.  Co-benefits include a potential reduction in greenhouse gas emissions and fuel savings due to the increased fuel efficiency resulting from the usage of new technologies, and maintenance cost savings expected from improvements in technology reliability and durability. Amendments to administrative requirements are expected to reduce costs for compliance for off-road compression-ignition engine importers. Some incremental costs are expected due to the engine modifications that will be necessary to meet the proposed engine emission standards and other requirements.

Consultations

The proposed regulations were published in the Canada Gazette, Part I for a 75-day comment period on March 9, 2019.

Further information

Further information is available through the CEPA Registry – Off-Road Compression-Ignition Engine Emission Regulations.

Additional information may be obtained using the contacts below.

ECCC Contact

Stéphane Couroux (off-road mobile compression-ignition and large spark-ignition engines)
Director, Transportation Division
Telephone: 819-420-8020
Fax: 819-938-4179
Email: ec.apregdevinfo-infodevregpa.ec@canada.ca

Magda Little (stationary compression-ignition engines)
A/Director, Electricity and Combustion Division
Telephone: 819-938-4213
Email: magda.little@canada.ca .

Date the regulatory initiative was first included in the Forward Regulatory Plan

The regulatory initiative for large spark-ignition engine emissions was first included in the 2012-2014 Forward Regulatory Plan.

The regulatory initiative for stationary compression-ignition engine emissions was added in the 2017-2019 Forward Regulatory Plan.

Enabling Act

Canadian Environmental Protection Act, 1999

Description

Environment and Climate Change Canada will conduct a mid-term evaluation of the Regulations and is engaging in consultations on whether changes to Canada’s greenhouse gas emission standards for 2022 to 2025 model year light-duty vehicles are required.

Standing Joint Committee on the Scrutiny of Regulations

This initiative does not respond to any issue or concern raised by the Standing Joint Committee on the Scrutiny of Regulations.

Departmental regulatory stock review plan

This initiative is not associated with Environment and Climate Change Canada’s regulatory stock review plan.

Regulatory cooperation efforts (domestic and international)

The standards for greenhouse gas emissions from light-duty vehicles of model years 2017 to 2025 were developed in cooperation with the U.S. Environmental Protection Agency. 

Potential impacts on Canadians, including businesses

Changes to the regulations have the potential to impact Canadian vehicle manufacturers, parts suppliers, dealers and the general public. The regulated community comprises manufacturers and importers of new light-duty vehicles sold in Canada. 

Stringent light-duty vehicle GHG standards result in positive impacts to Canadians including pre-tax fuel savings, reduced refuelling time, additional driving and reduced GHG emissions. They also increase the cost of manufacturing light-duty vehicles, which is passed on directly to consumers purchasing these vehicles.

The additional purchase cost associated with fuel saving technologies is expected to be outweighed by fuel savings. As an example, in the Regulations Amending the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations the cost benefit analysis in the Regulatory Impact Analysis Statement predicted fuel savings of approximately 75 billion litres over the lifetime of the 2017 to 2025 model year vehicles. It was estimated that the added costs to these vehicles will be more than offset by fuel savings, with a payback period of between one to three years.

Consultations

The Regulations Amending the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations were published in the Canada Gazette, Part II, in October of 2014. In the Regulatory Impact Analysis Statement that accompanied these regulations, the department committed to conduct a Canada-specific mid-term evaluation of the appropriateness of 2022 to 2025 model years’ standards in consultation with Canadian stakeholders.

Environment and Climate Change Canada began consultations on Canada’s mid-term evaluation with the release of a discussion document to solicit views from stakeholders regarding factors to inform Canada’s mid-term evaluation of the 2022 to 2025 model year standards.  

Environment and Climate Change Canada is assessing the comments and issues raised by stakeholders in response to the discussion paper. If it is determined that regulatory amendments are warranted, the department will engage in additional consultations.

Further information

Additional information may be obtained using the contact below.

ECCC Contact

Stéphane Couroux
Director, Transportation Division
Telephone: 819-420-8020
Fax: 819-938-4179
Email: stephane.couroux@canada.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

2018-2020 Forward Regulatory Plan Update

Enabling Act

Canadian Environmental Protection Act, 1999

Description

The proposed regulations will establish volatile organic compound (VOC) concentration limits for approximately 130 product categories/sub-categories including personal care, automotive and household maintenance products; adhesives, adhesive removers, sealants and caulks; and other miscellaneous products. These products are used by household, institutional and commercial consumers, and contribute to Canadian VOC emissions. 

Standing Joint Committee on the Scrutiny of Regulations

This initiative does not respond to an issue or concern raised by the Standing Joint Committee on the Scrutiny of Regulations.

Departmental regulatory stock review plan

This initiative is not associated with Environment and Climate Change Canada’s regulatory stock review plan.

Regulatory cooperation efforts (domestic and international)

The regulations are intended to align with the California Air Resources Board.  Other jurisdictions in the U.S., such as the U.S. Environmental Protection Agency and the Ozone Transport Commission, have either adopted the limits established by California or are in the process of moving towards those limits. Therefore, aligning Canada’s regulations with those of California will facilitate alignment across North America and avoid varying requirements across jurisdictions.

Potential impacts on Canadians, including businesses

It is estimated that there will be 1950 manufacturers and importers potentially affected by the proposed regulations. Key associations whose members will be impacted are the Cosmetics Alliance Canada (CAC), the Canadian Consumer Specialty Products Association (CCSPA), the Adhesive and Sealants Manufacturers Association of Canada (ASMAC), the Canadian Paint and Coatings Association (CPCA) and the Canadian Vehicle Manufacturers' Association (CVMA).

Given that VOC emissions are precursors to ground-level ozone and smog, continued action on the reduction of VOC emissions is required to improve air quality in Canada. Emission reductions resulting from these regulations will generate environmental and health benefits that have positive economic impacts. These regulations could result in an incremental reduction in human and environmental exposure to Ozone and particulate matter, benefitting:

• human health, through reduced incidence of premature death, hospital admissions, doctor visits, emergency room visits, lost work and school days, etc.;
• agriculture and forestry, through improved yields; and
• the environment, through reduced damage to ecosystems.

The proposed regulations could help to provide a “level playing field” for manufacturers and importers of certain products across North America.

Consultations

A consultation document outlining the regulatory proposal was published in January 2013. A public meeting was also held in February 2013. 

The proposed regulations are targeting publication in the Canada Gazette, Part I, in 2019 for a 75-day public comment period.

Further information

Additional information may be obtained using the contact below.

ECCC Contact

Tracey Spack
Director, Products Division
Telephone: 819-938-4209
Fax: 819-938-4179
Email: tracey.spack2@canada.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

2014-2016 Forward Regulatory Plan

Enabling Act

Canadian Environmental Protection Act, 1999

Description

The proposed regulations will limit releases of volatile organic compounds (VOCs), including petroleum and refinery gases, from Canadian petroleum refineries, upgraders, and certain petrochemical facilities.

Standing Joint Committee on the Scrutiny of Regulations

This initiative does not respond to an issue or concern raised by the Standing Joint Committee on the Scrutiny of Regulations.

Departmental regulatory stock review plan

This initiative is not associated with Environment and Climate Change Canada’s regulatory stock review plan.

Regulatory cooperation efforts (domestic and international)

This initiative does not require regulatory cooperation efforts.

Potential impacts on Canadians, including businesses

Twenty-six facilities are expected to be affected by the proposed Regulations. These facilities produce liquid petroleum products by means of processing (using distillation) crude oil or bitumen, or partially refined feedstock derived from crude oil or bitumen. They include 18 petroleum refineries, 6 upgraders and 2 petrochemical facilities.

For over a period of 18 years, the proposed regulations will result in a total compliance cost of $254 M for associated benefits estimated at $ 313M.

Consultations

Extensive consultations were made to develop the proposed regulations. These consultations involved the provincial and municipal governments, industry and NGO stakeholders. Prepublication consultations were held to support the finalizing of the proposed regulations, as well as information sessions to provide Indigenous peoples, provincial and municipal governments and stakeholders with an overview of the proposed regulations.

The proposed regulations were published in the Canada Gazette, Part I for a 60-day comment period on May 27, 2017. The publication of the final amendments in the Canada Gazette, Part II, is targeted for 2020.

Further information

Additional information may be obtained using the contact below.

ECCC Contact

Cam Carruthers
Executive Director, Oil, Gas and Alternative Energy Division
Telephone: 819-938-5711
Fax: 819-420-7410
Email: cam.carruthers@canada.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

2015-2017 Forward Regulatory Plan

Enabling Act

Canadian Environmental Protection Act, 1999

Description

Canada is bound by the World Trade Organization Agreement on Trade Facilitation which modernizes and simplifies customs and border procedures for all WTO members. Legislative amendments were made to CEPA under Bill C-13 in December 2016 to enable Canada to ratify the Agreement. The proposed Regulations Amending the Contaminated Fuel Regulations will ensure consistency with Canada’s international obligations under this Agreement by exempting contaminated fuels in transit from the prohibition on imports and exports of contaminated fuels.

The original Regulations prohibit the import and export of contaminated fuel except for the purpose of destruction, disposal and recycling.

Standing Joint Committee on the Scrutiny of Regulations

This initiative does not respond to an issue or concern raised by the Standing Joint Committee on the Scrutiny of Regulations.

Departmental regulatory stock review plan

This initiative is not associated with Environment and Climate Change Canada’s regulatory stock review plan.

Regulatory cooperation efforts (domestic and international)

The proposed amendments are being made to ensure consistency with Canada’s obligations under the World Trade Organization Agreement on Trade Facilitation.

Potential impacts on Canadians, including businesses

The Amendments are not expected to impact any stakeholders. 

Consultations

The proposed amendments were published in the Canada Gazette, Part I, on March 31, 2018 for a 75-day public comment period. The publication of the final amendments in the Canada Gazette, Part II, is targeted for 2019.

Further information

Further information is available through the CEPA Registry – Contaminated Fuel Regulations.

ECCC Contact

Cam Carruthers
Executive Director, Oil, Gas and Alternative Energy Division
Telephone: 819-938-5711
Fax: 819-420-7410
Email: cam.carruthers@canada.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

2016-2018 Forward Regulatory Plan Update

Enabling Act

Canadian Environmental Protection Act, 1999

Description

Under the Canadian Environmental Protection Act, 1999, the federal government may negotiate equivalency agreements with provinces that have regulations that can achieve equal-or-better emission-reduction outcomes to the federal regulations. These agreements establish conditions under which the federal regulations stand down and provincial or territorial regulations apply.

Standing Joint Committee on the Scrutiny of Regulations

This initiative does not respond to an issue or concern raised by the Standing Joint Committee on the Scrutiny of Regulations.

Departmental regulatory stock review plan

This initiative is not associated with Environment and Climate Change Canada’s regulatory stock review plan.

Regulatory cooperation efforts (domestic and international)

The objective of these equivalency agreements is to avoid regulatory duplication in circumstances when provinces achieve equal-or-better environmental protection outcomes to the federal regulations.

Potential impacts on Canadians, including businesses

The impacts will be assessed on a case-by-case basis.

Consultations

A formal consultation period will be held upon publication of each of the proposed equivalency agreements in the Canada Gazette, Part I.

Further information

Further information is available through the CEPA Registry – Equivalency Agreements.

ECCC Contact

Paola Mellow 
Acting Director General, Energy and Transportation Division
Telephone: 819-420-7761
Email: paola.mellow@canada.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

2018-2020 Forward Regulatory Plan Update

Enabling Act

Canadian Environmental Protection Act, 1999

Description

The Government of Canada is developing and implementing a federal carbon pollution pricing backstop system that will apply in provinces and areas listed in Schedule 1 to the Greenhouse Gas Pollution Pricing Act (GGPPA). Under the GGPPA, the federal carbon pollution pricing system has two parts: a regulatory charge on fuel (federal fuel charge) and a regulatory trading system for large industry – the federal Output-Based Pricing System (OBPS).

On October 31 and December 20, 2018, the federal government published two regulatory instruments to enable the implementation of the OBPS starting on January 1, 2019. The Notice Establishing Criteria Respecting Facilities and Persons and Publishing Measures sets out the criteria determining which facilities are required to register in the federal OBPS (covered facilities) and the Greenhouse Gas Emissions Information Production Order sets out the quantification, reporting and verification requirements for covered facilities starting on January 1, 2019.

On December 20, 2018, Environment and Climate Change Canada also published the Notice of intent to make regulations under part 2 of the Greenhouse Gas Pollution Pricing Act a legal tool that allows for rules and requirements of the OBPS regulations to start applying January 1, 2019. On the same day, ECCC published the Regulatory Proposal for the Output-Based Pricing System Regulations under the Greenhouse Gas Pollution Pricing Act for the purpose of seeking feedback to inform the regulatory process. The regulatory proposal sets out the proposed rules with respect to the OBPS including output-based standards; method to assess greenhouse gas (GHG) limits for covered facilities; quantification, reporting and verification requirements; compliance mechanisms; and other administrative requirements. The comment period closed February 15, 2019.

Standing Joint Committee on the Scrutiny of Regulations

This initiative does not respond to an issue or concern raised by the Standing Joint Committee on the Scrutiny of Regulations.

Departmental regulatory stock review plan

This initiative is not associated with Environment and Climate Change Canada’s regulatory stock review plan.

Regulatory cooperation efforts (domestic and international)

The federal carbon pollution pricing backstop system is a central element of the Pan-Canadian Framework on Clean Growth and Climate Change (PCF), adopted by the Prime Minister and most First Ministers in December 2016. The PCF sets out a collective plan to reduce GHG emissions, grow the economy and build resilience to adapt to changing climate. 

Potential impacts on Canadians, including businesses

Carbon pollution pricing will play an important role in reducing GHG emissions, thereby mitigating the effects of climate change and having a significant beneficial impact on all Canadians. It is widely recognized as an efficient way to reduce GHG emissions and to help achieve the objectives of protecting the environment, stimulating investments in low-carbon innovation and creating a sustainable clean-growth economy.

If not designed properly, carbon pollution pricing can have disproportionate impacts on low-income and vulnerable populations, and can affect the competitiveness of large industries. The federal government’s approach to return proceeds will mitigate impacts on low-income and vulnerable populations, and the Output-Based Pricing System Regulations are designed to protect large industrial facilities in Canada against adverse competitiveness impacts and carbon leakage. Therefore, these regulations are expected to reduce the impact of carbon pricing on domestic industries competing in international markets, compared to what might occur without the regulations. 

Consultations

Draft regulations were published on ECCC’s website on December 20, 2018 for comment until February 15, 2019. The publication of final regulations in the Canada Gazette, Part II, is targeted for spring 2019.

ECCC has engaged stakeholders over the past two years. This included a series of webinars and face-to-face meetings from January 2018 to January 2019 and the release of several technical papers for comment.

On May 28, 2018, a paper outlining compliance options under the federal output-based pricing system was published for comment until July 6, 2018. 

A Regulatory Framework paper paper on the output-based pricing system was released January 15, 2018, with public comment and stakeholder engagement underway until early April 2018. 

This was in follow up to an earlier technical paper on the proposed design of the federal backstop carbon pollution pricing system released for comment from May to June 2017. 

Further information

Further information on the OBPS can be found on the Output-Based Pricing System webpage.

ECCC Contact

Katherine Teeple
Director, Carbon Pricing System
Telephone: 819-938-5721
Email: katherine.teeple@canada.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

2017-2019 Forward Regulatory Plan

Enabling Act

Canadian Environmental Protection Act, 1999

Description

New regulatory requirements will be developed under Canadian Environmental Protection Act, 1999. The standard will incent the use of lower carbon fuels and technologies, such as electricity, renewable natural gas, hydrogen, and other low-carbon fuels. It will address a broad suite of fuels, including liquid, gaseous and solid fuels used for transportation and industry, homes and buildings. The objective of the Clean Fuel Standard (CFS) is to achieve 30 megatonnes of annual reductions in GHG emissions by 2030.

Standing Joint Committee on the Scrutiny of Regulations

This initiative does not respond to an issue or concern raised by the Standing Joint Committee on the Scrutiny of Regulations.

Departmental regulatory stock review plan

This initiative is not associated with Environment and Climate Change Canada’s regulatory stock review plan.

Regulatory cooperation efforts (domestic and international)

With respect to the Clean Fuel Standard, Environment and Climate Change Canada (ECCC) is working closely with federal and Provincial / Territorial colleagues, via a number of working groups: a Federal / Provincial / Territorial Working Group on the Clean Fuel Standard; a Federal / Provincial / Territorial Working ADM Consultative Committee; a Technical Working Group which includes BC, AB, SK and ON; and a broader CFS Multi-stakeholder Consultative Committee which includes all the provinces and territories in a forum with industry, academics, ENGOs and other federal departments. ECCC has been working closely with BC who has the Renewable and Low Carbon Fuel Requirements Regulations in place.

Internationally, ECCC is working closely with California and Oregon who have existing low carbon fuel standards. ECCC is also monitoring the US Renewable Fuels Standard and the European Renewable Energy Directive.

None of the above domestic and international initiatives are under any formal regulatory cooperation work plan.

Potential impacts on Canadians, including businesses

The Clean Fuel Standard will apply to all those who produce, import and in some cases distribute fossil fuels in Canada. These fossil fuel primary suppliers will have a carbon intensity compliance obligation. Regulations and carbon intensity limits for liquid fossil fuels will be developed first, followed by regulations and carbon intensity limits for gaseous and solid fossil fuels.

For liquid fossil fuels, the fossil fuel primary suppliers will be persons who produce or import liquid fossil fuels for use in Canada. Non-fossil fuels will not be subject to the limits. For liquid fossil fuels, this will include the volumes of gasoline, diesel fuels, kerosene, jet fuel, light and heavy fuel oils produced at the 16 Canadian oil refineries and upgraders and imported by over 30 liquid fossil fuel importers. 

For gaseous fuels, the fossil fuel primary suppliers will be persons who process or import natural gas; persons who produce or import propane; and persons who deliver pipeline quality natural gas to end-users. Persons who deliver pipeline quality natural gas to end-users include transmission pipeline companies for direct sales and distribution companies. Propane producers include natural gas processors with fractionating capacity, straddle plants, stand-alone fractionators, refiners and upgraders that produce propane. There is the potential for over 150 gaseous companies to be fossil fuel primary suppliers.

For solid fuels, the fossil fuel primary suppliers will be persons who produce or import solid fossil fuels (including coal and petroleum coke). In the solid fuel stream, coal and coke produced and imported for the Canadian market will have an obligation. There are about 9 companies operating 24 coal producing mines and 2 coal importers that may have obligations. Coal used for electricity generation is exempt. About 5 refineries / upgraders produce petcoke and 4 aluminum facilities import it.

Consultations

Consultations commenced in January 2017. A discussion paper was published February 24, 2017. A summary of comments on the discussion paper was published in November 2017. The regulatory framework was published in December 2017. A Regulatory Design Paper was published in December 2018. 

Further consultations on the regulatory design will continue through spring 2019 for the proposed regulations for the liquid fuel stream and are expected to continue as these final regulations are developed, as well as proposed regulations for the gaseous and solid fuel streams.

The proposed regulations for the liquid fuel stream will be published in the Canada Gazette, Part I for a 75-day public comment period in 2019. A formal comment / consultation period will be held following publication in the Canada Gazette, Part I. The publication of the final regulations in the Canada Gazette, Part II, is targeted for 2020 with a coming into force in 2022. 

The proposed regulations for the solid and gaseous streams will be published in the Canada Gazette, Part I for a 75-day public comment period in late 2020. A formal comment / consultation period will be held following publication in the Canada Gazette, Part I. The publication of the final regulations in the Canada Gazette, Part II, is targeted for 2021 with a coming into force in 2023.

Further information

Further information is available through the Clean Fuel Standard webpage.

ECCC Contact

Cam Carruthers
Executive Director, Oil, Gas and Alternative Energy Division
Telephone: 819-938-5711
Fax: 819-420-7410
Email: cam.carruthers@canada.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

2017-2019 Forward Regulatory Plan

Enabling Act

Canadian Environmental Protection Act, 1999

Description

Under the Multi-Sector Air Pollutants Regulations (MSAPR), boilers that burn biomass as fuel are excluded. However, the biomass boiler definition, currently found in the MSAPR and used for the exclusion, only captures units designed to meet their rated capacity by combusting only biomass. After the 2016 publication of the MSAPR, departmental officials learned that some boilers combusting predominantly biomass supplement combustion with natural gas. The amendment aims to clarify that boilers combusting predominantly solid or liquid biomass are excluded from the MSAPR.

Standing Joint Committee on the Scrutiny of Regulations

This initiative does not respond to an issue or concern raised by the Standing Joint Committee on the Scrutiny of Regulations.

Departmental regulatory stock review plan

This initiative is not associated with Environment and Climate Change Canada’s regulatory stock review plan.

Regulatory cooperation efforts (domestic and international)

This initiative is not expected to have any impact on regulatory cooperation and alignment.

Potential impacts on Canadians, including businesses

The amendment is not expected to impose costs. The amendment will clarify the biomass boiler exclusion to better align with the intent of the MSAPR, ensuring that existing and new biomass boilers that predominantly combust biomass will be excluded. Without the amendment, only the boilers able to reach their rated capacity by burning only biomass are excluded from the application of MSAPR. The amendment will extend the exclusion from the application of MSAPR to all industrial biomass boilers and heaters, even if they need to supplement the combustion of biomass with gaseous fossil fuel. Most biomass boilers used in Canada, subject to MSAPR, are operated in pulp and paper mills. The amendment would avoid a potential impediment to the commissioning of new biomass heaters designed to co-fire with gaseous fossil fuel.

Consultations

Two stakeholder-engagement information sessions, one in each of the official languages, were held in late November 2018 to provide an overview of the regulatory amendment proposal. Representatives of the regulated community, including boilers and heater manufacturers, industry associations, as well as provincial/territorial representatives, National Indigenous Organizations and non-governmental organizations were invited. There were no major concerns on the approach to clarify and broaden the biomass boiler exclusion.

The proposed regulations are targeting the publication in the Canada Gazette, Part I, in 2019 for a 60-day public comment period.

Further information

Additional information may be obtained using the contacts below.

ECCC Contact

Jennifer Kerr
Director, Air Emissions Priorities Division
Telephone: 819-420-7758
Fax: 819-420-7394
Email: Jennifer.Kerr@ec.gc.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

2019-2021 Forward Regulatory Plan