Aluminium and alumina sector: environmental agreement

Official title: Performance Agreement Concerning Air Pollutants From the Aluminium and Alumina Sector

(herein "Agreement")

Between

Her Majesty the Queen in Right of Canada, as represented by the Minister of the Environment
(herein "Environment Canada")

And

the Aluminium Association of Canada
(herein "AAC")

And

Rio Tinto Alcan Inc.
(herein "RTA")

Alcoa-Lauralco Management Co., Alcoa Canada Cie and Aluminerie de Bécancour Inc.  
(herein "Alcoa")

Aluminerie Alouette Inc.
(herein "Alouette")

 (Each of RTA, Alcoa, Alouette herein individually referred to as “Company” and collectively referred to as "Companies")

Each of the above-mentioned are individually referred to as "Party" and collectively as "Parties."

Preamble

Whereas the use of primary aluminium production technologies, including the electrolysis process, anode baking, anode paste production, petroleum coke calcining and the production of alumina from bauxite, is a source of atmospheric emissions of polycyclic aromatic hydrocarbons (PAHs), sulphur dioxide (SO₂), total particulate matter (TPM) and respirable particles with a diameter of 2.5 microns or less (PM_2.5);

Whereas in October 2012, federal, provincial and territorial environment ministers took action to better protect human health and the environment by endorsing and implementing the new Air Quality Management System (AQMS). The AQMS includes Canadian Ambient Air Quality Standards for fine particulate matter, ground-level ozone and SO₂, Base Level Industrial Emissions Requirements (BLIERs) and local Air Zone Management by the provincial/territorial jurisdictions. For the Aluminium and Alumina Sector, BLIERs were developed for PAHs, SO₂, TPM and PM_2.5;

Whereas the Minister of the Environment recognizes voluntary action of industry as an efficient means to achieve environmental objectives;

And whereas the Parties share a common interest in continuing efforts to reduce atmospheric emissions of PAHs, SO₂, TPM and PM_2.5;

Therefore, the Parties hereby agree as follows:

1.0  Definitions

1. Fluorene
2. Phenanthrene
3. Anthracene
4. Pyrene
5. Fluoranthene
6. Chrysene
7. Benzo[a]Anthracene
8. Benzo[a]Pyrene
9. Benzo[e]Pyrene
10. Benzo[b]Fluoranthene
11. Benzo[j]Fluoranthene
12. Benzo[k]Fluoranthene
13. Benzo[g,h,i]Perylene
14. Indeno[1,2,3-cd]Pyrene
15. Dibenz[a,h]Anthracene

2.0 Purpose

The purpose of this Agreement is for each Existing facility, New electrolysis and New facility of the aluminium and alumina sector to achieve and maintain the BLIERs for PAHs, SO₂, TPM and PM_2.5 as described in Annex 1.

3.0 Legal status

This Agreement does not and is not intended to create legally binding obligations among the Parties, nor does it constitute any admission of liability by any of the Parties. Each company is responsible only for its own commitments and obligations under this Agreement and shall not be liable in any manner whatsoever in the event of a default by any of the other companies to achieve one or any commitment or obligation taken under this Agreement.

This Agreement and all the annexes listed throughout constitute the entire agreement between the Parties. There are no undertakings, representations, promises or warranties, express or implied, other than those contained in the Agreement and its annexes.

By signing this Agreement, each Party agrees to fully conform to its commitment for as long as it is a Party to the Agreement.

Nothing in this Agreement precludes a Party from implementing any other environmental or human health initiatives as it sees fit.

Adherence to this Agreement does not in any way exempt any Company or the AAC from complying with any and all applicable laws and regulations.

4.0 Duration

The Agreement shall be effective as of the date that the Minister’s signature is affixed to the Agreement, to the extent that it has been signed by all the other parties and shall expire on December 31, 2025, unless terminated earlier in accordance with section 5.0.

5.0 Termination

The Parties may on mutual consent and in writing terminate this Agreement at any time. However, any Party may terminate this Agreement at any time, without cause and for its sole convenience, by giving at least one year’s written notice of its intention to terminate to the other Parties.

6.0 Amendments

This Agreement may be amended at any time by mutual consent of the Parties. In order to be valid, any amendment to this Agreement shall be in writing and signed by each of the Parties.

7.0 Assignment and successors

This Agreement will apply to the successors or assigns of the Parties.

8.0 Understandings

The risk management objectives described in Annex 1 apply to normal operating conditions.  

In the event of suspension or the definitive closure of operations at a facility of a Company, the Company will be relieved of its responsibilities under this Agreement for the affected facility.

This Agreement is not intended to prevent the Government of Canada from recommending or taking any legislative, regulatory or other measures necessary to prevent or reduce adverse impacts of air emissions of PAHs, SO₂, TPM and PM_2.5 on the environment or human health or any measure that it deems appropriate, and nothing in this Agreement may be construed as having such an effect.

Any future person or entity that produces primary aluminium, alumina from bauxite, anode paste, baked anodes or calcined coke for use in aluminium smelting will be encouraged to sign an agreement similar to this Agreement, in order to minimize the risk of environmental impacts of air emissions.

9.0 Risk management objectives

Each Company agrees to achieve and maintain the quantitative and qualitative BLIERs outlined in Annex 1 for Existing facilities, New electrolysis and New facilities.

The Parties agree to participate in the development of a quantitative PM_2.5 target based on the PM_2.5 sampling and monitoring program described in Annex 1.

For the purposes of continuous improvement, the Parties agree to establish a working relationship that will facilitate the exchange of information and knowledge regarding atmospheric emissions, including emission sources, emissions reduction and methods for sampling and analysis.

10.0 Reporting

10.1 Report content and format

Each Company agrees to produce individual annual reports for each Existing facility, New electrolysis and New facility, as outlined in Annex 2, in the format provided by Environment Canada. The reporting template may be updated from time to time. The Companies and AAC will be given sufficient time to review and provide comments on the updated version.

Each Company will submit their first report, for the 2017 calendar year, by June 30, 2018. All subsequent reports covering each calendar year of the Agreement will be due no later than June 30 of the following year. Reports will be sent to the following electronic address:

• ec.epa-epe.ec@canada.ca, Subject title: Aluminium PA

Each Company will ensure that data used in the description of their respective results achieved under the Agreement are complete, accurate, measurable and verifiable.

10.2 Retention of records

Each Company and the AAC will retain all records related to this Agreement for the duration of its participation in this Agreement, plus five years, and make them available to Environment Canada upon request.

10.3 Public report

Environment Canada will publish on the Government of Canada’s website progress reports based on reports received under this Agreement. Progress reports will be reviewed by all Parties before publication and will be considered confidential until final approval by all Parties.

11.0 Verification

Environment Canada will review annual reports and will assess progress made under this Agreement. Environment Canada may request additional information if necessary. Environment Canada may perform additional verification by means of personnel interviews, site visits and verification of records.

12.0 Roles and responsibilities

Each Company agrees to:

• Meet the applicable risk management objectives set out in Annex 1 of this Agreement
• Participate in the PM_2.5 Working Group and SO₂ Working Group
• Participate in the development of a quantitative PM_2.5 target
• Report to Environment Canada as per section 10.0 of this Agreement
• Collaborate with Environment Canada during the verification process and any resulting follow-up actions
• Maintain performance once the risk management objectives have been achieved

The AAC agrees to:

• Chair, organize and follow up on action items of PM_2.5 Working Group and SO₂ Working Group meetings
• Provide Environment Canada with meeting notes from the PM_2.5 Working Group and SO₂ Working Group meetings
• Share all information pertaining to the Agreement with all its members

Environment Canada agrees to:

• Review sampling results and reports submitted by the Companies and AAC
• Monitor progress under this Agreement, oversee its administration and evaluate its effectiveness with respect to the objectives and requirements
• Participate in the PM_2.5 Working Group and SO₂ Working Group
• Publish reports on Government of Canada’s website summarizing progress made under this Agreement

13.0 Availability of agreement and information

A copy of this Agreement and Environment Canada’s progress reports will be made available on Government of Canada’s website.

Confidential information

Notwithstanding the first paragraph of section 3 of this Agreement, the Parties agree that section 13 of this Agreement is mandatory and binding between the parties and beyond the expiration or termination of this Agreement.

Environment Canada agrees to keep confidential and not disclose any confidential information obtained from the Parties under this Agreement that has been identified as being confidential provided that a written request for confidentiality is submitted at the same time as the information is provided. The request must specify the information that is considered to be confidential and the reason why it should be treated as such.

Nothing in this Agreement shall be interpreted so as to preclude Environment Canada from disclosing information that Environment Canada may be required or ordered to disclose pursuant to any applicable federal laws or court orders, including the Access to information Act, R.S. 1985.

14.0 Signatures

The Parties acknowledge that they have read and accepted all of the provisions of the Agreement.

Signed for Her Majesty the Queen in Right of Canada,
as represented by the Minister of the Environment

By: Mike Beale

Title: Assistant Deputy Minister, Environmental Protection Branch

Signature: ____________________

Signed this 13 day of November, 2017

Signed for the Aluminium Association of Canada

By: ____________________

Title: ____________________

I represent and warrant that I am duly authorized to bind the Aluminium Association of Canada.

Signature: ____________________

Signed this ____________________ day of ____________________, 2017  

Signed for Rio Tinto Alcan Inc.

By: ____________________

Title: ____________________

I represent and warrant that I am duly authorized to bind Rio Tinto Alcan Inc.

Signature: ____________________

Signed this ____________________ day of ____________________, 2017  

Signed for Alcoa-Lauralco Management Co. and Alcoa Canada Cie

By: ____________________

Title: ____________________

I represent and warrant that I am duly authorized to bind Alcoa-Lauralco Management Co. and Alcoa Canada Cie.

Signature: ____________________

Signed this ____________________day of ____________________, 2017

Signed for Aluminerie de Bécancour Inc.

By: ____________________

Title: ____________________

I represent and warrant that I am duly authorized to bind Aluminerie de Bécancour Inc.

Signature: ____________________

Signed this ____________________day of____________________, 2017  

Signed for Aluminerie Alouette Inc.

By: ____________________

Title: ____________________

I represent and warrant that I am duly authorized to bind Aluminerie Alouette Inc.

Signature: ____________________

Signed this ____________________ day of ____________________, 2017

Annex 1: Risk management objectives

Table notes

QCAR: Quebec’s Clean Air Regulation

CWPB: Centre Work Prebaked

*The BLIER targets have been developed with the sampling methods prescribed in QCAR in effect at the date of signature of this Agreement. In the event of a change in method, the BLIER targets should be reviewed by the Parties.

**Frequency and sampling methodologies for the BLIERs should harmonize with QCAR. If one facility is subject to a different frequency or sampling methodology, the Company should provide Environment Canada with a detailed sampling plan.

⁽¹⁾Action Plan for the reduction of PAH emissions from anode baking:

This action plan will describe corrective and preventive measures to be undertaken in order to reduce PAH emissions below 20 g/tonne of baked anodes. Summary of the proposed action plan:

⁽²⁾SO₂ Action Plan:

• Action plan to target pollution prevention initiatives applicable to the industry upstream of anode baking and the electrolysis processes

 ⁽³⁾Data reporting: 

1. Coke calcination: Harmonization with Quebec requirements (e.g., sulphur concentration of green petroleum coke and calcined petroleum coke, total quantity of coke used, and total SO₂ emissions released in the process; annual data reported)
2. Electrolysis and anode baking: Harmonization with section 142 of Quebec’s Clean Air Regulation, which requires the operator of an aluminium smelter to maintain a record of the quantities and sulphur content of coke and pitch used in the process
   1. a detailed report for each month of the year ended, in which the emissions into the atmosphere are reported in the form of sulphur dioxide; the report must indicate the quantities of sulphur contained in the input for aluminium production processes as well as manufacturing and baking of anodes, including the quantities of sulphur contained in the fuel
   2. a report indicating, for each month of the year ended, the quantities of coke and pitch used, from each supplier, and their respective sulphur content

⁽⁴⁾PM_2.5 source sampling: 

• For RTA:
  • Coke calcination (furnace gas): Arvida (EA1) (completed)
  • Gas Treatment Centre – Electrolysis: Grande-Baie (106EA, 111EA or 116EA) or Laterrière (79EA, 82EA, 76EA ou 85EA) and Alma (367EA(4201) (completed), 370EA(4202) or 373EA(4203) (completed))
  • 1 roof vent (section): Laterrière or Grande-Baie and Alma (completed)
  • Anode production (mixer/compactor): Grande-Baie (22EA or 23EA)
  • Fume Treatment Centre – Anode Baking: Arvida (EA30)
  • Calcinator and Boiler (if heavy oil #6): Vaudreuil
• For Alcoa:
  • 1 roof vent, prebaked section only: Baie-Comeau or Bécancour
  • Anode production (mixer/compactor): Bécancour (#36)
  • 1 roof vent (section): Deschambault (completed)
  • Fume Treatment Centre – Anode Baking: Deschambault (completed)
  • Gas Treatment Centre – Electrolysis: Deschambault (completed)
• For Alouette:
  • Gas Treatment Centre – Electrolysis: Sept-Îles (CE1, CE2, CE3 or CE4)
  • 1 roof vent (section): Sept-Îles
  • Fume Treatment Centre – Anode Baking: Sept-Îles (CF1 ou CF2)

⁽⁵⁾Code of practice: Code of practice to reduce emissions of fine particulate matter (PM_2.5) from the primary aluminium sector

• Conditions for implementing the Code:
  1. A diagnosis will be conducted by the Company at each Existing facility, New electrolysis and New facility in order to identify which of the recommendations described in the Code have been implemented
  2. An action plan identifying recommendations that are appropriate and practical based on circumstances specific to each facility will be prepared by Companies and provided to Environment Canada for information at the latest one year after the date of signature of this Agreement
  3. The action plan will be implemented by Companies, and a follow-up will be carried out and provided to Environment Canada in the annual report

⁽⁶⁾For RTA’s Arvida facility, the TPM BLIER will apply starting at the latest implementation date prescribed in section 135 of QCAR.

⁽⁷⁾For Alcoa-Deschambault facility that has a boosted succion system, sampling in turns : A1.1 and A1.2 one year and A2.1 and A2.2 the following year

⁽⁸⁾For facilities that have two sources (Grande-Baie and Sept-Îles), sample a different source each two-year period (at a minimum, each source to be sampled every 4 years). For example: source #1 sampled in the second year, source #2 in the fourth year, source #1 in the sixth year etc.

Annex 2: Reports

The annual reports will include information and results on the following BLIERs:

• Quantitative Base Level Industrial Emissions Requirements
• Qualitative and Quantitative SO₂ Base Level Industrial Emissions Requirements
• Qualitative PM_2.5 Base Level Industrial Emissions Requirements