Vol. 152, No. 4 — February 21, 2018

Registration

SOR/2018-11 February 2, 2018

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

P.C. 2018-51 February 2, 2018

Whereas, pursuant to subsection 332(1) (see footnote a) of the Canadian Environmental Protection Act, 1999 (see footnote b), the Minister of the Environment published in the Canada Gazette, Part I, on October 1, 2016, a copy of the proposed Regulations Amending Certain Regulations Made Under Section 89, Subsection 93(1) and Section 114 of the Canadian Environmental Protection Act, 1999, substantially in the annexed form, 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, pursuant to subsection 93(3) of that Act, the National Advisory Committee has been given an opportunity to provide its advice under section 6 (see footnote c) of that Act;

And whereas, in the opinion of the Governor in Council, pursuant to 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, pursuant to section 89, subsection 93(1) and section 114 of the Canadian Environmental Protection Act, 1999 (see footnote d), makes the annexed Regulations Amending Certain Regulations Made Under Section 89, Subsection 93(1) and Section 114 of the Canadian Environmental Protection Act, 1999.

Regulations Amending Certain Regulations Made Under Section 89, Subsection 93(1) and Section 114 of the Canadian Environmental Protection Act, 1999

Contaminated Fuel Regulations

1 The long title of the Contaminated Fuel Regulations (see footnote 1) is replaced by the following:

Contaminated Fuel Regulations

2 Section 1 of the Regulations and the heading before it are repealed.

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

(3) For the purposes of subsection (2), appropriate authority means the authority, body or person, of a country that is competent under the laws of that country to authorize the import of contaminated fuel into that country.

4 Subsection 5(1) of the Regulations is amended by striking out “and” at the end of paragraph (j) and by replacing paragraph (k) with the following:

5 Section 6 of the Regulations is amended by replacing “inspector” with “enforcement officer”.

Benzene in Gasoline Regulations

6 (1) The definitions auditor and northern supply area in subsection 1(1) of the Benzene in Gasoline Regulations (see footnote 2) are replaced by the following:

auditor means an individual or a firm that is certified, for the purpose of carrying out International Organization for Standardization quality assurance (ISO 14000 or 9000 series) assessments, by the International Register of Certificated Auditors or by any other nationally or internationally recognized accreditation organization. (vérificateur)

northern supply area means Yukon, the Northwest Territories, Nunavut, that part of Quebec that is north of latitude 51°N and that part of Newfoundland and Labrador that is north of latitude 49°N. (zone d’approvisionnement du Nord)

(2) Paragraph (b) of the definition gasoline in subsection 1(1) of the Regulations is replaced by the following:

7 Section 5 of the Regulations is replaced by the following:

5 (1) Subject to subsection 6(1), all samples must be taken in accordance with any one of the ASTM International sampling methods specifically set out in section 7 of the National Standard of Canada standard CAN/CGSB-3.5-2016, Automotive gasoline.

(2) The concentration of benzene and that of aromatics in gasoline referred to in sections 3 and 16 and Schedule 1 must be measured in accordance with the National Standard of Canada method CAN/CGSB-3.0 No. 14.3-2016, Methods of testing petroleum and associated products Standard test method for the identification of components in automotive gasoline using gas chromatography.

(3) Subject to subsection 6(2), the concentration of olefins in gasoline referred to in Schedule 3 must be measured in accordance with the National Standard of Canada method CAN/CGSB-3.0 No. 14.3-2016, Methods of testing petroleum and associated products Standard test method for the identification of components in automotive gasoline using gas chromatography.

(4) The concentration of sulphur in gasoline referred to in Schedule 1 must be measured in accordance with the ASTM International method D5453 - 16e1, Standard Test Method for Determination of Total Sulfur in Light Hydrocarbons, Spark Ignition Engine Fuel, Diesel Engine Fuel, and Engine Oil by Ultraviolet Fluorescence.

(5) The vapour pressure of gasoline at 37.8°C (100°F) referred to in Schedule 1 must be measured in accordance with the ASTM International method D5191 - 15, Standard Test Method for Vapor Pressure of Petroleum Products (Mini Method) and converted to “dry vapor pressure equivalent” as described in that method.

(6) The evaporative fractions of gasoline at 93.3°C (200°F) and 148.9°C (300°F) referred to in Schedule 1 must be measured in accordance with ASTM International method D86 - 17, Standard Test Method for Distillation of Petroleum Products and Liquid Fuels at Atmospheric Pressure.

(7) The concentration of oxygen in gasoline referred to in Schedule 1 must be measured in accordance with the National Standard of Canada method CAN/CGSB-3.0 No. 14.3-2016, Methods of testing petroleum and associated products Standard test method for the identification of components in automotive gasoline using gas chromatography.

(8) The concentration of benzene and that of aromatics in oxygenates referred to in the definition commercially pure oxygenate in subsection 1(1) must be measured in accordance with the National Standard of Canada method CAN/CGSB-3.0 No. 14.3-2016, Methods of testing petroleum and associated products Standard test method for the identification of components in automotive gasoline using gas chromatography.

(9) The concentration of benzene and that of aromatics in butane referred to in the definition commercially pure butane in subsection 1(1) must be measured in accordance with ASTM International method D2163 - 14e1, Standard Test Method for Determination of Hydrocarbons in Liquefied Petroleum (LP) Gases and Propane/Propene Mixtures by Gas Chromatography.

(10) The concentration of sulphur in oxygenates referred to in the definition commercially pure oxygenate in subsection 1(1) must be measured in accordance with the ASTM International method D5453 - 16e1, Standard Test Method for Determination of Total Sulfur in Light Hydrocarbons, Spark Ignition Engine Fuel, Diesel Engine Fuel, and Engine Oil by Ultraviolet Fluorescence.

(11) The concentration of sulphur in butane referred to in the definition commercially pure butane in subsection 1(1) must be measured in accordance with the ASTM International method D6667 - 14, Standard Test Method for Determination of Total Volatile Sulfur in Gaseous Hydrocarbons and Liquefied Petroleum Gases by Ultraviolet Fluorescence.

8 (1) The portion of subsection 6(1) of the Regulations before paragraph (a) is replaced by the following:

6 (1) When the sampling method specified in subsection 5(1) cannot be reasonably applied, another sampling method may be used by the primary supplier if, at least 60 days before the use of the method, the primary supplier sends the Minister

(2) Paragraphs 6(2)(a) and (b) of the Regulations are replaced by the following:

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

8.1 (1) Any information, report or notice that is required, or any application that is made, under these Regulations must be sent electronically in the form and format specified by the Minister and must bear the electronic signature of an authorized official.

(2) If the Minister has not specified an electronic form and format or if it is impractical to send the information, report, notice or application electronically in accordance with subsection (1) because of circumstances beyond the control of the person sending it, they must send it on paper, signed by an authorized official, in the form and format specified by the Minister. However, if no form and format have been so specified, the information may be in any form and format.

10 Subsections 15(1.1) and (2) of the Regulations are replaced by the following:

(1.1) A primary supplier who elects under subsection (1) must notify the Minister at least 60 days before the beginning of the first year for which the basis will be a yearly pool average.

(2) A primary supplier may cancel the election by notifying the Minister any time prior to 60 days before the beginning of the first year for which the basis will not be a yearly pool average.

11 The portion of paragraph 19(6)(a) of the Regulations before subparagraph (i) is replaced by the following:

12 (1) The portion of subsection 21(1) of the Regulations before paragraph (a) is replaced by the following:

21 (1) Effective 60 days before the beginning of the first year for which a primary supplier has elected to meet a requirement on the basis of a yearly pool average, the primary supplier must put in place a compliance plan that contains

(2) Subsections 21(2) and (3) of the Regulations are replaced by the following:

(2) The compliance plan must be signed by an authorized official of the primary supplier and sent to the Minister at least 60 days before the beginning of the first year for which the primary supplier has elected to meet a requirement on the basis of a yearly pool average.

(3) At least 45 days before a primary supplier changes any information provided under subsection (1), the primary supplier must update the compliance plan and submit it to the Minister.

13 Subsection 22(1) of the Regulations is replaced by the following:

22 (1) For each year for which the basis is a yearly pool average elected under section 15, a primary supplier must have an auditor who is independent of the primary supplier perform an audit to verify that the primary supplier’s systems, practices and procedures are, in the auditor’s opinion, appropriate to demonstrate compliance with these Regulations and that the records and reports required by these Regulations are complete and accurate.

14 The French version of the Regulations is amended by replacing “tension” with “pression” in the following provisions:

Tributyltetradecylphosphonium Chloride Regulations

15 Paragraph 4(c) of the English version of the Tributyltetradecylphosphonium Chloride Regulations (see footnote 3) is replaced by the following:

Tetrachloroethylene (Use in Dry Cleaning and Reporting Requirements) Regulations

16 The portion of subsection 8(1) of the Tetrachloroethylene (Use in Dry Cleaning and Reporting Requirements) Regulations (see footnote 4) before subparagraph (b)(i) is replaced by the following:

8 (1) The owner or operator of a dry-cleaning machine shall have all waste water

Solvent Degreasing Regulations

17 Paragraph 8(a) of the French version of the Solvent Degreasing Regulations (see footnote 5) is replaced by the following:

New Substances Notification Regulations (Chemicals and Polymers)

18 The definitions biochemical and biopolymer in subsection 1(1) of the New Substances Notification Regulations (Chemicals and Polymers) (see footnote 6) are replaced by the following:

biochemical means a substance, other than a polymer, that

biopolymer means a polymer that

19 Subsection 8(2) of the Regulations is replaced by the following:

Notification

(2) Any person that submitted the information referred to in paragraph (1)(b), together with the information referred to in section 10 of Schedule 5, in respect of a chemical or biochemical that is subsequently added to the NDSL may, once the listing has occurred, advise the Minister, in writing, that that information is to be considered as having been submitted under paragraph 7(1)(b).

20 Subsection 14(2) of the Regulations is replaced by the following:

Recipient

(2) Two copies of any information provided under these Regulations must be sent in English or French to the Minister, care of the Substances Management Coordinator, Department of the Environment, Ottawa, Ontario K1A 0H3.

21 Paragraphs 8(f) and (g) of Schedule 1 to the French version of the Regulations are replaced by the following:

22 Section 9 of Schedule 1 to the Regulations is replaced by the following:

9 A summary of all other information and test data in respect of the chemical that are in the possession of the manufacturer or importer or to which they may reasonably be expected to have access and that permit the identification of hazards to the environment and human health and the degree of environmental and public exposure to the chemical.

23 Paragraphs 15(f) and (g) of Schedule 3 to the French version of the Regulations are replaced by the following:

24 Section 16 of Schedule 3 to the Regulations is replaced by the following:

16 A summary of all other information and test data in respect of the polymer that are in the possession of the manufacturer or importer or to which they may reasonably be expected to have access and that permit the identification of hazards to the environment and human health and the degree of environmental and public exposure to the polymer.

25 Section 8 of Schedule 4 to the Regulations is replaced by the following:

8 A summary of all other information and test data in respect of the chemical that are in the possession of the manufacturer or importer and that permit the identification of hazards to the environment and human health and the degree of environmental and public exposure to the chemical.

26 (1) Paragraphs 8(b) and (c) of Schedule 5 to the French version of the Regulations are replaced by the following:

(2) Paragraph 8(f) of Schedule 5 to the French version of the Regulations is replaced by the following:

27 Section 9 of Schedule 5 to the Regulations is replaced by the following:

9 A summary of all other information and test data in respect of the chemical that are in the possession of the manufacturer or importer or to which they may reasonably be expected to have access and that permit the identification of hazards to the environment and human health and the degree of environmental and public exposure to the chemical.

28 Section 14 of Schedule 9 to the Regulations is replaced by the following:

14 A summary of all other information and test data in respect of the polymer that are in the possession of the manufacturer or importer and that permit the identification of hazards to the environment and human health and the degree of environmental and public exposure to the polymer.

29 Paragraph 5(b) of Schedule 10 to the French version of the Regulations is replaced by the following:

30 Section 6 of Schedule 10 to the Regulations is replaced by the following:

6 A summary of all other information and test data in respect of the polymer that are in the possession of the manufacturer or importer or to which they may reasonably be expected to have access and that permit the identification of hazards to the environment and human health and the degree of environmental and public exposure to the polymer.

31 Paragraphs 11(b) and (c) of Schedule 11 to the French version of the Regulations are replaced by the following:

32 Section 12 of Schedule 11 of the Regulations is replaced by the following:

12 A summary of all other information and test data in respect of the polymer that are in the possession of the manufacturer or importer or to which they may reasonably be expected to have access and that permit the identification of hazards to the environment and human health and the degree of environmental and public exposure to the polymer.

New Substances Notification Regulations (Organisms)

33 (1) The definition Laboratory Biosafety Guidelines in subsection 1(1) of the New Substances Notification Regulations (Organisms) (see footnote 7) is repealed.

(2) The definition contained facility in subsection 1(1) of the Regulations is replaced by the following:

contained facility means an enclosed building with walls, floor and ceiling, or an area within such a building, where the containment is in accordance with the physical and operational requirements of a level set out in either the Canadian Biosafety Standards and Guidelines or Appendix K of the NIH Guidelines. (installation étanche)

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

Canadian Biosafety Standards and Guidelines means the documents entitled Canadian Biosafety Standard, 2nd Edition, published in 2015, and the Canadian Biosafety Guideline: Containment Level 1: Physical Design and Operational Practices, published in 2017, both developed by the Public Health Agency of Canada and the Canadian Food Inspection Agency, as amended from time to time. (Normes et lignes directrices canadiennes sur la biosécurité)

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

Research and development micro-organisms

(3) These Regulations do not apply in respect of a micro-organism that is a research and development organism not for introduction outside a contained facility, if

35 The Regulations are amended by adding the following after section 2:

Agricultural research study — micro-organisms

2.1 (1) Despite subsection 3(5), if the following conditions are met, these Regulations do not apply in respect of a micro-organism that is a research and development organism for introduction in an agricultural research study conducted on plants:

Agricultural research study

(2) For the purposes of subsection (1), agricultural research study means an experimental field study that is conducted

36 The Regulations are amended by adding the following after section 4:

Addition to Domestic Substances List — information

4.1 For the purposes of paragraph 112(1)(b) of the Act, a person who provides the information referred to in sections 3 and 4 must also provide — within 30 days after the day on which they manufactured or imported the organism — a notice confirming that manufacture or importation.

37 Subsection 8(2) of the Regulations is replaced by the following:

Recipient

(2) Two copies of any information provided under these Regulations must be sent in English or French to the Minister, care of the Substances Management Coordinator, Department of the Environment, Ottawa, Ontario K1A 0H3.

38 Section 7 of Schedule 1 to the Regulations is replaced by the following:

7 All other information and test data in respect of the micro-organism that permit the identification of hazards to the environment and human health and that are in the person’s possession or to which the person may reasonably be expected to have access.

39 Paragraph 2(c) of Schedule 2 to the Regulations is replaced by the following:

40 Section 5 of Schedule 2 to the Regulations is replaced by the following:

5 All other information and test data in respect of the micro-organism that permit the identification of hazards to the environment and human health and that are in the person’s possession or to which the person may reasonably be expected to have access.

41 Paragraph 3(d) of Schedule 3 to the Regulations is replaced by the following:

42 Section 8 of Schedule 3 to the Regulations is replaced by the following:

8 All other information and test data in respect of the micro-organism that permit the identification of hazards to the environment and human health and that are in the person’s possession or to which the person may reasonably be expected to have access.

43 Section 6 of Schedule 4 to the Regulations is replaced by the following:

6 All other information and test data in respect of the micro-organism that permit the identification of hazards to the environment and human health and that are in the person’s possession or to which the person may reasonably be expected to have access.

44 Section 7 of Schedule 5 to the Regulations is replaced by the following:

7 All other information and test data in respect of the organism that permit the identification of hazards to the environment and human health and that are in the person’s possession or to which the person may reasonably be expected to have access.

Volatile Organic Compound (VOC) Concentration Limits for Automotive Refinishing Products Regulations

45 Subsection 2(3) of the Volatile Organic Compound (VOC) Concentration Limits for Automotive Refinishing Products Regulations (see footnote 8) is amended by replacing “(i)” with “(2)(i)”.

46 Paragraph 5(1)(a) of the English version of the Regulations is replaced by the following:

47 Subsection 10(2) of the Regulations is replaced by the following:

Manufacture date — seller

(2) A person that offers for sale or sells any product set out in the schedule must, if the manufacturer or importer has failed to indicate the date or code referred to in subsection (1) on the container in which the product is to be offered for sale, or sold, indicate that date or that code on the container and must provide the Minister, on request, with an explanation of the code.

Volatile Organic Compound (VOC) Concentration Limits for Architectural Coatings Regulations

48 Subsection 1(2) of the French version of the Volatile Organic Compound (VOC) Concentration Limits for Architectural Coatings Regulations (see footnote 9) is replaced by the following:

Incorporation par renvoi

(2) Dans le présent règlement, toute mention d’une norme ou d’une méthode incorporées par renvoi constitue un renvoi à la norme ou à la méthode actuelle.

49 Paragraph 10(1)(a) of the English version of the Regulations is replaced by the following:

50 Section 13 of the Regulations is amended by adding the following after subsection (2):

Reference to standards

(3) Any reference to a standard in this section is a reference to the version of that standard that is in effect at the time the determination under subsection (1) is made.

51 Section 14 of the Regulations is amended by adding the following after subsection (3):

Reference to standards

(4) Any reference to a standard in this section is a reference to the version of that standard that is in effect at the time the determination under subsection (1) is made.

52 (1) The portion of subsection 17(1) of the Regulations before paragraph (a) is replaced by the following:

Required information — manufacturer or importer

17 (1) Any person that manufactures or imports an architectural coating set out in the schedule must indicate, at the place specified below on the container in which the architectural coating is to be sold, the following information:

(2) Subsection 17(2) of the Regulations is replaced by the following:

Required information — seller

(1.1) A person that offers for sale or sells an architectural coating set out in the schedule must indicate the information in accordance with subsection (1) on the container in which the coating is to be sold if the manufacturer or importer has failed to do so in accordance with that subsection.

Effective date

(2) Subject to subsection 4(2), subsections (1) and (1.1) take effect in respect of each architectural coating set out in the schedule

53 Column 1 of the table to subsection 1(2) of the Schedule to the French version of the Regulations is amended by replacing “film” with “feuil” in the following provisions:

Coming into Force

54 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) administers a wide range of regulations under the Canadian Environmental Protection Act, 1999 (CEPA). In order to ensure that they continue to be administered efficiently and provide clarity for regulatees, these regulations are reviewed and updated from time to time. The Department has identified the need for a number of changes to the regulatory texts of nine regulations made under CEPA in response to comments from Parliament’s Standing Joint Committee for the Scrutiny of Regulations (SJCSR) regarding a lack of clarity and some inconsistencies in the regulatory text of several regulations, from the Commissioner of the Environment and Sustainable Development (CESD) regarding the enforceability of regulations, (see footnote 10) from the Standards Council of Canada (SCC) regarding outdated standards referenced in Canadian federal regulations. The Department has also identified other necessary changes and minor issues, including reducing the burden on agricultural researchers and requiring the provision of a notice under the New Substances Notification Regulations (Organisms) to facilitate the addition of living organisms to the Domestic Substances List (DSL) by the Minister of the Environment (the Minister).

The following regulations (collectively referred to as “the nine regulations”) have been identified for amendments as part of this omnibus regulatory process:

Objectives

The objectives of the Regulations Amending Certain Regulations Made Under Section 89, Subsection 93(1) and Section 114 of the Canadian Environmental Protection Act, 1999 (the Amendments) are to

Description

The nine regulations have been amended within an omnibus process to make required changes to improve the clarity and consistency of the regulatory texts and to keep references to standards up to date.

The Amendments to their respective regulations are found below.

1. Contaminated Fuel Regulations

The Contaminated Fuel Regulations prohibit the import and export of contaminated fuel subject to certain exemptions. Potential contaminants in fuel include sulphur, phosphate, heavy metals (e.g. lead, chromium, cadmium, nickel, vanadium and zinc) and chlorinated hydrocarbons (e.g. polychlorinated biphenyls). The Amendments help to provide the continuous protection of Canadian citizens and the environment from the potential exposure to fuels containing toxic substances.

The Amendments will make changes to the Regulations to add clarity to the regulatory text. The Amendments will

2. Benzene in Gasoline Regulations

The Benzene in Gasoline Regulations set limits for the amount of benzene in gasoline. The Regulations also control another parameter, the benzene emissions number. This number sets parameters around the gasoline’s formulation to limit how much benzene will be formed when the gasoline is combusted and further reduces emissions of benzene from vehicle exhaust. The Amendments will also clarify the regulatory text and make minor technical changes to address issues identified by the Department. The Amendments will

The Amendments will also update references and standards. The Amendments will

3. Tributyltetradecylphosphonium Chloride Regulations

The Tributyltetradecylphosphonium Chloride Regulations prohibit the use, processing, offer for sale, sale and importation into Canada of tributyltetradecylphosphonium chloride and impose conditions on its manufacture.

3.1 The Amendments will modify the English version of paragraph 4(c) of the Regulations by replacing “spill” with “release” to align the French and English versions and to be consistent with CEPA.

4. Tetrachloroethylene (Use in Dry Cleaning and Reporting Requirements) Regulations

The Tetrachloroethylene (Use in Dry Cleaning and Reporting Requirements) Regulations reduce releases of tetrachloroethylene (PERC) into the environment from dry cleaning facilities by requiring efficient dry cleaning machines, good waste collection and disposal practices and the control of PERC releases.

4.1 The Amendments will modify the Regulations by clarifying that all wastewater must either be treated on-site or transported to a waste management facility, by adding “all” to “waste water” in subsection 8(1). This change will also improve the consistency with the waste residue disposal requirements of subsection 9(1) and remove any ambiguity in this subsection of the regulatory text; the Amendments will clarify the Regulations and will not create new obligations for regulatees.

5. Solvent Degreasing Regulations

The Solvent Degreasing Regulations reduce the release of trichloroethylene (TCE) and tetrachloroethylene (PERC) into the environment from solvent degreasing facilities using more than 1 000 kg of TCE and PERC per year.

5.1 The Amendments will modify the French version of paragraph 8(a) of the Regulations by replacing “suivant celle où a lieu la vente” by “où a lieu la vente” to align the regulatory text with the English version with regard to the time period for reporting under paragraph 8(a).

6. New Substances Notification Regulations (Chemicals and Polymers)

In 2005, the New Substances Notification Regulations (NSNR) were replaced by two regulations: the New Substances Notification Regulations (Chemicals and Polymers) and the NSNR(O). The New Substances Notification Regulations (Chemicals and Polymers) prescribe the requirements for the notification of new substances so that an assessment of the potential risks to the environment and human health can be completed, and any appropriate risk management measures can be implemented, prior to the substances’ import into, or manufacture in Canada. The Amendments will make changes to the Regulations to address comments from the SJCSR and ensure consistency between the English and French versions. The Amendments will

7. New Substances Notification Regulations (Organisms) [NSNR(O)]

The NSNR(O) prescribe the requirements for the notification of new living organisms so that an assessment of the potential risks to the environment and human health can be completed, and any appropriate risk management measures can be implemented, prior to the organisms’ import into, or manufacture in Canada. Under the Regulations, a researcher must submit a notification under Schedule 3 when a living micro-organism is isolated from the environment and grown off-site for use in an experimental field study (e.g. agriculture, forestry, soil remediation and other settings). Since 2011, 50 notifications were received for common, naturally occurring plant pathogens used in agricultural field studies. In all cases, the health and environmental risks of these studies were found to be low due to the safety practices which are commonly followed by agricultural researchers.

The Amendments will modify the Regulations to address comments from the SJCSR and ensure consistency between English and French versions. The Amendments will

8. Volatile Organic Compound (VOC) Concentration Limits for Automotive Refinishing Products Regulations

The Volatile Organic Compound (VOC) Concentration Limits for Automotive Refinishing Products Regulations establish concentration limits for VOCs in 14 categories of automotive refinishing products. The Amendments will make changes to Regulations to address comments from the SJCSR. The Amendments will

9. Volatile Organic Compound (VOC) Concentration Limits for Architectural Coatings Regulations

The Volatile Organic Compound (VOC) Concentration Limits for Architectural Coatings Regulations establish mandatory VOC concentration limits for 53 categories of architectural coatings. The Amendments will modify the Regulations to address comments from the SJCSR. The Amendments will

“One-for-One” Rule

The “One-for-One” Rule applies to the Amendments, which are considered an “OUT” under the Rule. Two of the regulatory changes will result in an overall net reduction of administrative burden while the other amendments will result in no change in administrative costs to businesses.

The inclusion of the agricultural field study exemption in the NSNR(O) [amendment 7.3] is expected to reduce the number of submissions per year by approximately 10 notifications. This estimate is based on the number of private sector companies in Canada who work in this sector, the number of notifications received in the past from private sector companies, and communication with private sector companies. Each notification is estimated to require 40 hours for drafting; 220 hours for information retrieval, either to gather test results or literature review; 32.5 hours for verifying information by legal staff; 130 hours for follow-up and clarification with the Department; and 4 hours for review by senior management.

The addition of a notice to the NSNR(O) to inform the Minister that importing and manufacturing has begun (amendment 7.4) could increase administrative burden for regulatees that are importing and manufacturing a living organism into Canada. The Department estimates that two notices will be submitted per year, with each notice estimated to take 30 minutes to draft. This is a conservative estimate given that notices have been submitted voluntarily.

These estimates of time are based on departmental calculations. They are consistent with the estimated cost of submitting a notification used in the Regulatory Impact Analysis Statement for the NSNR, (see footnote 15) which the Department expects will still be valid. Regulatees were consulted on the estimates of notification costs during the NSNR regulatory process.

Administrative burden is calculated with a wage rate of $42 an hour, with the exception of $50 an hour for legal staff and $60 an hour for senior management. These wage rates are based on the average hour wage rates from the labour force survey. (see footnote 16) Overall, the Amendments are expected to reduce annualized administrative burden by $120,534, or $10,045 per business. (see footnote 17)

Small business lens

The small business lens does not apply to the Amendments since the cost impact will be below $1 million annually, and the cost impact per small business is negligible and not considered disproportionate.

Consultation

Consultation prior to the prepublication of the proposed Amendments in the Canada Gazette, Part I

Given that the Amendments will improve the clarity and consistency of regulatory texts and that they are mostly minor in nature, consultations with stakeholders were limited.

The CEPA National Advisory Committee (NAC) (see footnote 18) was provided with opportunities to advise both the Minister of the Environment and the Minister of Health on the proposed Amendments; however, no representations were received.

With respect to amendment 7.3 for NSNR(O), WebEx sessions were held on March 21 and April 5, 2013, with participants from Agriculture and Agri-Food Canada, two industry associations representing the agriculture industry, and one scientific research association. All stakeholders consulted fully support the objectives of the amendments and the proposed exemption criteria. Furthermore, letters were sent out to four industry associations representing the agriculture industry and five environmental and health non-governmental organizations in July 2015. One industry association representing the agriculture industry provided comments indicating full support for amendment 7.3.

With respect to amendment 7.4 for NSNR(O), stakeholders were consulted and were supportive of the provisions when they were first introduced in 2003. (see footnote 19) Despite the fact that the requirement was unintentionally omitted in 2005, the Department has continued to request information on a voluntary basis to facilitate the addition of organisms to the DSL by the Minister. Therefore, the Department believes that stakeholders are familiar with the process and will continue to be supportive.

Consultation following the prepublication of the proposed Amendments in the Canada Gazette, Part I

During the 75-day public comment period, the Department communicated with representatives of the petroleum refining sector and petroleum importers, the fuel transportation and distribution sector, fuel storage terminals, and retail fuel suppliers to solicit feedback on the amendments for the Contaminated Fuel Regulations and the Benzene in Gasoline Regulations. The Department also communicated with representatives of stakeholders of the NSNR(O) to consult them on amendments 7.3 and 7.4 and the assumptions behind the “One-for-One” Rule calculations. No comments were received for the other amendments.

Benzene in Gasoline Regulations

For amendments to the Contaminated Fuel Regulations and the Benzene in Gasoline Regulations, one letter of support was received from an industry association. For the Benzene in Gasoline Regulations, two submissions were received from an industry stakeholder and one from a member of the public. The Department considered all comments, and minor changes were made to ensure that referenced definitions and standards are current.

Comment: An industry stakeholder commented that the definition for gasoline in the Benzene in Gasoline Regulations no longer aligns with the gasoline requirements listed in the current CAN/CGSB-3.5, Automotive gasoline standard.

Response: The minimum vapour pressure and the distillation temperature at which 50% of the fuel has evaporated were updated to align with the most recent CAN/CGSB-3.5-2016, Automotive gasoline standard.

Comment: An industry stakeholder noted that a number of ASTM and CGSB methods and standards referenced in the proposed Amendments were not the most recent versions.

Response: Several ASTM and CGSB methods and standards have been updated since the proposed Amendments were prepared. The methods and standards have been updated to reference the most current versions.

Comment: A member of the public questioned the appropriateness of changing “tension de vapeur” to “pression de vapeur” in the French text of the Benzene in Gasoline Regulations, since “tension de vapeur” is still widely used.

Response: Both the CGSB fuel standards and the International System of Units refer to vapour pressure as “pression de vapeur.” To avoid potential for confusion, this terminology will be used throughout the Benzene in Gasoline Regulations to be consistent with these references.

New Substances Notification Regulations (Organisms)

For amendments to the NSNR(O), one letter of support was received from an industry association representing the agriculture industry.

Rationale

The Amendments will address comments from the SJCSR, the CESD, and the SCC, and address numerous minor issues and inconsistencies in the current regulatory texts of the nine regulations. As well, the Amendments will include an exemption and reinstate an omitted requirement to the NSNR(O). By addressing the Amendments collectively under an omnibus regulatory process, the Department will make the many necessary changes to the texts in the most effective and efficient manner possible.

The impact of the Amendments on regulatees is expected to be minimal, as most of the Amendments are relatively minor in nature. Most of the changes related to compliance components are not expected to have impacts on regulatees, as they will clarify the existing regulatory text.

The agricultural field study exemption of the NSNR(O) [amendment 7.3] will result in reduced administrative and financial burdens for those conducting agricultural field studies and ensure that agricultural research is not delayed by the need to notify and wait for a risk assessment to be concluded in advance of beginning the field study. Given the safety criteria associated with the exemption, health and environmental risks associated with the amendment are expected to be minimal. Regulatees were contacted regarding this amendment in July 2015, and no concerns were expressed.

As a result of amendment 7.4, regulatees that provide information specified under Schedule 1 or 5 of the NSNR(O) could face increased administrative costs to inform the Minister that importing or manufacturing has begun. However, given that some regulatees have been submitting this information voluntarily since the implementation of the NSNR(O), a regulatory requirement to submit this information is not expected to have a significant effect on administrative costs. In addition, the information provided will facilitate the addition of the organism to the DSL, which, in turn, will allow the use of the organism without a new notification.

Overall, taking into consideration the benefits, including the reduction in administrative burden costs for businesses, the Amendments are expected to result in an overall benefit for Canadians.

Strategic environmental assessment

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

Contacts

Astrid Télasco
Director
Regulatory Innovation and Management Systems Division
Environment and Climate Change Canada
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: ec.affairesreglementaires-regulatoryaffairs.ec@canada.ca

Matthew Watkinson
Director
Regulatory Analysis and Valuation Division
Environment and Climate Change Canada
200 Sacré-Cœur Boulevard
Gatineau, Quebec
K1A 0H3
Email: ec.darv-ravd.ec@canada.ca