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Registration SOR/99-255 17 June, 1999 CANADIAN ENVIRONMENTAL PROTECTION ACT Federal Halocarbon RegulationsP.C. 1999-1124 17 June, 1999 Whereas, pursuant to subsection 55(1) of the Canadian Environmental Protection Act (see footnote a), the Minister of the Environment published in the Canada Gazette, Part I, on August 29, 1998, a copy of the proposed Federal Halocarbon Regulations, substantially in the annexed form; And whereas the Governor in Council is of the opinion that no other Act of Parliament expressly provides for the making of regulations regulating halocarbons that result in the protection of the environment and that apply to federal works or undertakings or federal lands, as provided for in the annexed Regulations; Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of the Environment, and with the concurrence of the Minister of Agriculture and Agri-Food, the Minister of the Environment, the Minister of Canadian Heritage, the Minister of Citizenship and Immigration, the Minister of Finance, the Minister of Fisheries and Oceans, the Minister of Foreign Affairs, the Minister of Health, the Minister of Human Resources Development, the Minister of Indian Affairs and Northern Development, the Minister of Industry, the Minister for International Cooperation and Minister responsible for Francophonie, the Minister for International Trade, the Minister of Justice and Attorney General of Canada, the Minister of Labour, the Minister of National Defence, the Minister of National Revenue, the Minister of Natural Resources and Minister responsible for the Canadian Wheat Board, the Minister of Transport, the President of the Treasury Board and Minister responsible for Infrastructure, the Minister of Public Works and Government Services, the President of the Queen's Privy Council for Canada and Minister of Intergovernmental Affairs, the Minister of Veterans Affairs and Secretary of State (Atlantic Canada Opportunities Agency), and the Solicitor General of Canada, pursuant to subsection 54(1) and section 59 of the Canadian Environmental Protection Act (see footnote b), hereby makes the annexed Federal Halocarbon Regulations. FEDERAL HALOCARBON REGULATIONS INTERPRETATION 1. The definitions in this section apply in these Regulations. "Act" means the Canadian Environmental Protection Act. (Loi) "air conditioning system" means an air conditioning system, as well as any associated equipment, that contains or is designed to contain a halocarbon refrigerant. (système de climatisation) "appropriate container" means a container that is designed and manufactured to be refilled and to contain a specific type of halocarbon. (contenant approprié) "ASHRAE" means the American Society of Heating, Refrigeration and Air-Conditioning Engineers. (ASHRAE) "bromofluorocarbon" means a fully halocarbonated bromofluorocarbon each molecule of which contains one, two or three carbon atoms and at least one atom each of bromine and fluorine. (bromofluorocarbure) "certificate" means a certificate indicating successful completion of an environmental awareness course in recycling, recovery and handling procedures of halocarbon refrigerants as outlined in the Refrigerant Code of Practice and accepted in three or more provinces. (certificat) "certified person", in respect of a refrigeration system or an air conditioning system, means a service technician who holds a certificate. (personne accréditée) "charging" means to add a halocarbon to a system. (charger) "chlorofluorocarbon" or "CFC" means a fully halogenated chlo-rofluorocarbon each molecule of which contains one, two or three carbon atoms and at least one atom each of chlorine and fluorine. (chlorofluorocarbure ou CFC) "fire extinguishing system" means fire extinguishing or fire suppression equipment including portable or fixed equipment, that contains or is designed to contain a halocarbon fire extinguishing agent. (système d'extinction d'incendie) "halocarbon" means a substance set out in Schedule 1, whether existing alone or in a mixture, and includes isomers of any such substance. (halocarbure) "hydrobromofluorocarbon" or "HBFC" means a hydrobromofluorocarbon each molecule of which contains one, two or three carbon atoms and at least one atom each of hydrogen, bromine and fluorine. (hydrobromofluorocarbure ou HBFC) "hydrochlorofluorocarbon" or "HCFC" means a hydrochlorofluorocarbon each molecule of which contains one, two or three carbon atoms and at least one atom each of hydrogen, chlorine and fluorine. (hydrochlorofluorocarbure ou HCFC) "hydrofluorocarbon" or "HFC" means a hydrofluorocarbon each molecule of which contains only carbon, hydrogen and fluorine atoms. (hydrofluorocarbure ou HFC) "leak" means a release of a halocarbon from a system. (fuite) "military vehicle" means a vehicle that is used in combat, or in a combat support role, but does not include an administrative vehicle. (véhicule militaire) "owner", in respect of a system that is located in Canada, means the department, board or agency of the Government of Canada, the person or the Indian Band that (a) carries on any federal work or undertaking where they are the holder of a right in or have possession, control or custody of, or care for, operate, administer or may dispose of a system that is part of the federal work or undertaking; (b) is the holder of a right in or has possession, control or custody of, or cares for, operates, administers or may dispose of a system that is the property of Her Majesty in right of Canada and that is on or in federal land. (propriétaire) "perfluorocarbon" or "PFC" means a fully fluorinated fluorocarbon each molecule of which contains only carbon and fluorine atoms. (perfluorocarbure ou PFC) "portable fire extinguisher" means a cylinder or cartridge containing a halocarbon that is used for extinguishing or suppressing fires, that weighs no more than 25 kg and that can be carried or wheeled to the site of a fire. (extincteur portatif) "purge system", in respect of a purge unit on a low-pressure refrigeration system or air conditioning system, means the actual unit, including any associated exhaust recovery equipment. (système à vidange) "reclaimed", in respect of a halocarbon, means recovered, reprocessed and upgraded through processes such as filtering, drying, distilling and treating chemically in order to restore the halocarbon to industry-accepted re-use standards that have been verified by chemical analysis. (régénéré) "recovered", in respect of a halocarbon, means (a) collected after it has been used; or (b) collected from machinery, equipment, a system or a container during servicing or before dismantling, disposal of or decommissioning the machinery, equipment, system or container. (récupéré) "recycled", in respect of a halocarbon, means recovered and, if needed, cleaned by a process such as filtering or drying, and re-used to recharge systems. (recyclé) "Refrigerant Code of Practice" means the Environmental Code of Practice for Elimination of Fluorocarbon Emissions from Refrigeration and Air Conditioning Systems, as amended from time to time, made under paragraph 8(1)(d) of the Act and published by the Department of the Environment. (Code de pratique en réfrigération) "refrigeration system" means a refrigeration system, as well as any associated equipment, that contains or is designed to contain a halocarbon refrigerant. (système de réfrigération) "release" has the same meaning as in subsection 3(1) of the Act except that it does not include, in respect of a fire extinguishing system, a release for the purpose of fighting a fire not caused for training purposes. (rejet) "service", in respect of a system, includes any modification, topping-up, maintenance, repair, moving, dismantling, decommissioning, disposal, start-up and testing of the system, but does not include testing related to the manufacture and production of the system. (service) "ship" has the same meaning as in subsection 66(1) of the Act. (navire) "small air conditioning system" means an air conditioning system that is not contained in a vehicle and that has a refrigeration capacity of less than 19 kW as rated by the manufacturer. (petit système de climatisation) "small refrigeration system" means a refrigeration system that is not contained in a vehicle and that has a refrigeration capacity of less than 19 kW as rated by the manufacturer. (petit système de réfrigération) "solvent system" means an application or system that employs halocarbons as solvents, including cleaning applications and associated equipment containing or designed to contain a halocarbon solvent. It does not include halocarbons used in a laboratory as analytical standards or laboratory reagents or halocarbons in a process in which they are being converted to another substance or are generated but are ultimately converted to a different substance. (système de solvants) "system", unless the context requires otherwise, means an air conditioning system, a fire extinguishing system, a refrigeration system or a solvent system. (système) APPLICATION 2. (1) These Regulations apply to federal lands and federal works and undertakings under the authority of the ministers of the Crown who, under subsection 54(1) of the Act, have concurred in the making of these Regulations. (2) The ministers of the Crown who have concurred are set out in Schedule 2. PROHIBITIONS 3. Subject to subsection 7(2) and section 16, no person shall release or allow or cause the release of a halocarbon that is contained in (a) a refrigeration system or any associated container or device; (b) an air conditioning system or any associated container or device; (c) a fire extinguishing system or any associated container or device, except to fight a fire that is not a fire caused for training purposes; or (d) a container or equipment used in the re-use, recycling, reclamation or storage of a halocarbon. 4. (1) Subject to section 28, effective six months after the coming into force of these Regulations, no person shall install a system that operates or is intended to operate with halocarbons listed in any of items 1 to 8 of Schedule 1. (2) Subject to section 28, effective January 1, 2005, no person shall install a system that operates or is intended to operate with a halocarbon listed in item 10 or 11 of Schedule 1 as a solvent in a solvent system. 5. (1) Effective six months after the coming into force of these Regulations, no person shall use a halocarbon listed in any of items 1 to 8 of Schedule 1 as a solvent in a solvent system. (2) Subject to section 29, effective January 1, 2005, no person shall use a halocarbon listed in item 10 or 11 of Schedule 1 as a solvent in a solvent system. 6. (1) No person shall store, transport or purchase a halocarbon unless it is in an appropriate container. (2) Subsection (1) does not apply in respect of halocarbons used in a laboratory as analytical standards or laboratory reagents. RECOVERY 7. (1) Subject to subsection (2), a person that installs, services, leak tests or charges a halocarbon to a refrigeration system, an air conditioning system or a fire extinguishing system, or that does any other work on any of those systems that may result in the release of a halocarbon, shall recover, into an appropriate container, any halocarbon that would otherwise be released during those procedures. (2) A person that recovers halocarbons from a fire extinguishing system shall use recovery equipment with a transfer efficiency of at least 99% as defined in section 6.3 of the publication ULC/ORD-C1058.5-1993, entitled Halon Recovery and Reconditioning Equipment. 8. (1) Before dismantling, disposing of or decommissioning any system, a person shall recover halocarbons into an appropriate container. (2) A person that disposes of or decommissions a system that contains a halocarbon shall place a notice on the system containing the information set out in item 1 of Schedule 3. (3) No person shall remove a notice referred to in subsection (2) except to replace it with another such notice. (4) In case of the dismantling, disposing of or decommissioning of any system, the owner shall keep a record of the information contained in the notice referred to in subsection (2). INSTALLATION, SERVICING, LEAK TESTING AND CHARGING Refrigeration Systems and Air Conditioning Systems 9. (1) Only a certified person may install, service, leak test or charge a halocarbon to a refrigeration system or an air conditioning system or do any other work on the system that may result in the release of a halocarbon. (2) A person who does any of the work referred to in subsection (1) shall do it in accordance with the Refrigerant Code of Practice. (3) Except when recommended in the Refrigerant Code of Practice, no person shall charge a refrigeration system or an air conditioning system with a halocarbon listed in any of items 1 to 8 of Schedule 1 for the purpose of leak testing the system. 10. (1) A certified person who conducts a leak test on a refrigeration system or an air conditioning system shall place a notice on the system containing the information set out in item 2 of Schedule 3. (2) No person shall remove a notice referred to in subsection (1) except to replace it with another such notice. (3) The owner shall keep a record of the information contained in the notice referred to in subsection (1). 11. (1) Subject to subsection (2), the owner shall conduct a leak test, at least once every 12 months, of all of the components of a refrigeration system or an air conditioning system that come into contact with a halocarbon. (2) Subsection (1) does not apply to small refrigeration systems and small air conditioning systems, or to air conditioning systems that are designed for passengers in motor vehicles. 12. Subject to section 14, no person shall charge a refrigeration system or an air conditioning system unless (a) the system has been leak tested before charging; and (b) if a leak was found, the certified person notifies the owner and the owner repairs the leak. 13. Subject to section 14, the owner shall, in respect of a refrigeration system or an air conditioning system, within seven days after the day on which a leak from the system is detected, (a) repair the leak; (b) isolate the leaking portion of the system and recover the halocarbon from that portion; or (c) recover the halocarbon from the system pending repair of the leak. 14. (1) If it is necessary to continue operating the system to prevent an immediate danger to human life or health, sections 12 and 13 do not apply during the period in which the danger persists, up to a maximum of seven days after the day on which the danger was identified by the owner. (2) In the situation referred to in subsection (1), the following conditions apply: (a) the person who charged the refrigeration system or air conditioning system shall notify the owner immediately; and (b) the owner shall, within 14 days after receiving notice under paragraph (a), submit a written record to the Minister describing (i) the circumstances leading up to the immediate danger to human life or health and the nature of the danger, (ii) the amount of halocarbon charged to the system, and (iii) the expected date of repair of the leak or recovery of the remaining halocarbon from the system. 15. After January 1, 2000, no person shall charge an air conditioning system that is designed for passengers in motor vehicles with a halocarbon listed in any of items 1 to 8 of Schedule 1. 16. Effective one year after the coming into force of these Regulations, no person shall install or operate or permit the operation of a purge system unless it does not emit more than 0.1 kg of halocarbons per kilogram of air purged to the environment. Fire Extinguishing Systems 17. No person shall install, service, leak test or charge a halocarbon to a fire extinguishing system or do any other work on the system that may result in the release of a halocarbon, except in accordance with the requirements of the publication ULC/ORD-C1058.18-1993, entitled The Servicing of Halon Extinguishing Systems. 18. No person shall charge a fire extinguishing system with a halocarbon listed in any of items 1 to 8 of Schedule 1 for the purpose of leak testing the system. 19. (1) Subject to subsection (2), the owner shall leak test all fire extinguishing systems at least once every 12 months in accordance with the requirements of the publication referred to in section 17. (2) Subsection (1) does not apply to portable fire extinguishers. 20. Subject to section 23, no person shall charge a fire extinguishing system unless (a) the system has been leak tested before charging; and (b) if a leak was found, the person notifies the owner and the owner repairs the leak. 21. (1) Subject to subsection (2) and section 23, no person shall service a fire extinguishing system without first (a) notifying the owner of the intended service; and (b) placing a notice on the control panel of the system to indicate that it is out of operation during the period of service. (2) Paragraph (1)(b) does not apply to portable fire extinguishers. 22. Subject to section 23, the owner shall, in respect of a fire extinguishing system, within seven days after the day on which a leak from the system is detected, (a) repair the leak; (b) isolate the leaking portion of the system and recover the halocarbon from that portion; or (c) recover the halocarbon from the system pending repair of the leak. 23. (1) If it is necessary to continue operating the system to prevent an immediate danger to human life or health, sections 20 to 22 do not apply during the period in which the danger persists, up to a maximum of seven days after the day on which the danger was identified by the owner. (2) In the situation referred to in subsection (1), the following conditions apply: (a) the person who charged the fire extinguishing system shall notify the owner immediately; and (b) the owner shall, within 14 days after receiving notice under paragraph (a), submit a written record to the Minister describing (i) the circumstances leading up to the immediate danger to human life or health and the nature of the danger, (ii) the amount of halocarbon charged to the system, and (iii) the expected date of repair of the leak or recovery of the remaining halocarbon from the system. 24. Subject to section 29, no person shall charge a portable fire extinguisher with a halocarbon listed in any of items 1 to 8 of Schedule 1, except for use on aircraft, a military vehicle or a military ship. SERVICE LOGS 25. (1) Effective six months after the coming into force of these Regulations, the owner of a refrigeration system, an air conditioning system or a fire extinguishing system shall maintain a written record, or a record in electronic format acceptable to the Minister, in which the information set out in item 3 or 4, as the case may be, of Schedule 3 is entered whenever the system is installed, serviced, leak tested or charged or if any other work is done on it that may result in the release of a halocarbon. (2) Effective six months after the coming into force of these Regulations, the owner of a solvent system shall maintain a written record, or a record in electronic format acceptable to the Minister, in which the information set out in item 5 of Schedule 3 is entered whenever the system is charged with more than 10 kg of a halocarbon. (3) Subsection (1) does not apply to small refrigeration systems and small air conditioning systems for personal use. RELEASE REPORTS 26. In the event of a release of 100 kg or more of a halocarbon, the owner shall submit the following reports to the Minister: (a) within 24 hours after the day on which the release is detected, a verbal or written report, or an electronic report in a format acceptable to the Minister, that indicates the type of halocarbon released and the type of system from which it was released; and (b) within 14 days after the day on which the release is detected, a written report, or an electronic report in a format acceptable to the Minister, that indicates the information set out in item 6 of Schedule 3. 27. (1) Subject to subsection (2), if more than 10 kg but less than 100 kg of a halocarbon is released from a system, the owner shall submit to the Minister a report, in written format or in an electronic format that is acceptable to the Minister, that contains the information set out in item 6 of Schedule 3. (2) The owner shall submit the release report required by subsection (1) for each calendar half-year, not later than 30 days after the day on which the half-year ends. PERMITS 28. (1) An owner shall submit to the Minister an application for a permit on a form that the Minister provides, which contains the information set out in item 7 of Schedule 3, if the owner proposes to install (a) a fire extinguishing system that operates or is intended to operate with a halocarbon listed in any of items 1 to 8 of Schedule 1 as a fire extinguishing agent; or (b) a solvent system that operates or is intended to operate with a halocarbon listed in item 10 or 11 of Schedule 1 as a solvent. (2) Subject to section 31, the Minister shall issue the permit, valid for five years beginning on the date of issuance, if the owner, on the form, (a) declares that no technically and financially feasible alternative exists that could have a relatively lower environmental and health impact compared to the system for which the permit is being requested; and (b) describes the steps that will be taken to minimize emissions of the halocarbon from the system if the total system capacity incorporates more than 10 kg of the halocarbon. 29. (1) An owner shall submit to the Minister an application for a permit on a form that the Minister provides, which contains the information set out in item 8 of Schedule 3, if the owner proposes to charge (a) a portable fire extinguisher that is not to be used on an aircraft, military ship or military vehicle with a halocarbon listed in any of items 1 to 8 of Schedule 1; or (b) a solvent system with a halocarbon listed in item 10 or 11 of Schedule 1. (2) Subject to section 31, the Minister shall issue the permit if the owner declares, on the form, that no technically and financially feasible alternative exists that could have a relatively lower environmental and health impact compared to the portable fire extinguisher or the solvent system for which the permit is being requested. FALSE OR MISLEADING INFORMATION 30. No person shall provide the Minister with any false or misleading information or declaration in purported compliance with these Regulations. 31. (1) The Minister may refuse to issue or may cancel a permit issued under subsection 28(2) or 29(2) if any false or misleading information has been submitted in support of the application for the permit. (2) The Minister shall not cancel a permit unless the Minister (a) has provided the person with written reasons for the cancellation; and (b) has given the person an opportunity to be heard, either by written or oral representations in respect of the cancellation. RECORDS, REPORTS AND NOTICES 32. (1) The owner shall keep all records, reports and notices required by these Regulations in Canada for a period of at least five years beginning on the date of their issuance. (2) The owner shall make available to the Minister all records, reports and notices required by these Regulations within any reasonable time that is established in the request. The Minister shall use such documents only to assess the effectiveness of these Regulations. (3) Subject to subsections (4) and (5), the owner shall keep a copy of all records, reports and notices required by these Regulations with respect to a system at the premises or site at which the system is located. (4) In the case of a system at an unoccupied premises or site, the owner shall keep a copy of all records, reports and notices required by these Regulations with respect to that system at a single location occupied by the owner. (5) In the case of a system used on a means of transport, the owner shall keep a copy of all records, reports and notices required by these Regulations with respect to that system at a single location occupied by the owner. COMING INTO FORCE 33. These Regulations come into force on July 1, 1999. SCHEDULE 1 (Sections 1, 4, 5, 9, 15, 18, 24, 28 and 29) LIST OF HALOCARBONS Item Halocarbon 1. Tetrachloromethane (carbon tetrachloride) 2. 1,1,1-trichloroethane (methyl chloroform), not including 1,1,2-trichloroethane 3. Chlorofluorocarbons (CFC) 4. Bromochlorodifluoromethane (Halon 1211) 5. Bromotrifluoromethane (Halon 1301) 6. Dibromotetrafluoroethane (Halon 2402) 7. Bromofluorocarbons other than those set out in items 4 to 6 8. Hydrobromofluorocarbons (HBFC) 9. Hydrochlorofluorocarbons (HCFC) 10. Hydrofluorocarbons (HFC) 11. Perfluorocarbons (PFC) SCHEDULE 2 (Subsection 2(2)) LIST OF MINISTERS OF THE CROWN WHO CONCURRED IN THE MAKING OF THESE REGULATIONS Minister of the Environment Minister of Agriculture and Agri-Food Minister of Canadian Heritage Minister of Citizenship and Immigration Minister of Finance Minister of Fisheries and Oceans Minister of Foreign Affairs Minister of Health Minister of Human Resources Development Minister of Indian Affairs and Northern Development SCHEDULE 2—Continued LIST OF MINISTERS OF THE CROWN WHO CONCURRED IN THE MAKING OF THESE REGULATIONS—Continued Minister of Industry Minister for International Cooperation and Minister responsible for Francophonie Minister for International Trade Minister of Justice and Attorney General of Canada Minister of Labour Minister of National Defence Minister of National Revenue Minister of Natural Resources and Minister responsible for the Canadian Wheat Board Minister of Public Works and Government Services Minister of Transport President of the Treasury Board and Minister responsible for Infrastructure President of the Queen's Privy Council for Canada and Minister of Intergovernmental Affairs Solicitor General of Canada Minister of Veterans Affairs and Secretary of State (Atlantic Canada Opportunities Agency) SCHEDULE 3 (Subsections 8(2) and (4) and 10(1) and sections 25 to 29) INFORMATION TO BE CONTAINED IN FORMS
SCHEDULE 3—Continued INFORMATION TO BE CONTAINED IN FORMS—Continued
SCHEDULE 3—Continued INFORMATION TO BE CONTAINED IN FORMS—Continued
REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Description Since 1987, the federal government has initiated several regulatory programs to either reduce or eliminate the use of ozone depleting substances (ODS) in Canada. These programs have targeted manufacturers, importers and users of these substances. At the provincial level, ODS releases from private operations and provincial government facilities are regulated. Federal departmental and agency activities account for 5 to 10% of the ODS still in use in Canada and are not subject to provincial regulatory requirements that prohibit releases of ODS. As a result, concerns have been raised about the lack of mandatory requirements for federal operations and the inability to enforce provincial requirements in the federal house. Actions taken by federal facilities vary among departments and are uneven within individual departments, depending on the region and the priority attached to the issue. Some federal facilities have well thought-out plans while others have not yet carried out basic inventory studies or developed their strategic plans. The federal government is promulgating the Federal Halocarbon Regulations under Part IV of the Canadian Environmental Protection Act (CEPA). Part IV of CEPA is also intended to ensure that federal lands, works and undertaking are administered or regulated to protect the environment. These Regulations are intended to ensure uniformity with respect to releases, recovery and recycling of ODS and their halocarbon alternatives in the federal house and also to ensure that these releases are minimized. Even though halocarbon alternatives to ODSs could have no impact on the ozone layer, they are green house gases and thus contribute to climate change. The Regulations will ensure that actions are taken to prevent releases of ODS and their halocarbon alternatives: to report these releases; that adequate training is provided to personnel; that operational and emergency procedures and strategic plans are developed for the use, control and phase out of these substances. Controls imposed by these Regulations also create consistency with the private sector requirements which are imposed by provincial regulations. Alternatives Under a voluntary approach, affected facilities would not be legally required to comply with specific criteria; consequently, this approach would not ensure that the expected objectives of controlling ODS releases and their halocarbon alternatives are achieved since government would not have any power to force facilities to address these releases. Therefore, this approach has been rejected. An economic instrument implementing: * ** a charge, would require that affected facilities monitor their releases of ODSs and their halocarbon alternatives since a charge would be expressed in dollars per kg of releases; * * ** a tradable permit system, would require that affected facilities monitor the volume of purchased or released ODSs and their halocarbon alternatives since each permit issued to facilities, would correspond to a used or released volume over one year. This annual volume would be used as a base level. * Thus, the implementation of an economic instrument would require that affected facilities put in place measures to monitor their ODSs and halocarbon alternatives uses and/or releases. In addition, the implementation of such an instrument would require that a data base be established before its promulgation which would delay the control of targeted emissions and would also require significant administration costs. Therefore, this approach has also been rejected. A Regulation has been selected as the best option to achieve expected environmental goals of controlling ODS releases and their halocarbon alternatives in the federal house in the shortest time frame and also in terms of minimizing impacts to affected facilities. Benefits and Costs The present value method has been used to analyze both the costs and the benefits resulting from the implementation of these Regulations. The present value is defined as the money that is required today to cover future expenses. In this case, the considered future period is 1998 to 2060. This period has been selected because benefits resulting from a reduction in ODS emissions and their halocarbon alternatives will exist until the ozone layer recovers, expected to happen around 2060. Benefits of these Regulations These Regulations will contribute to reducing emissions of substances responsible for damaging the ozone layer. As a result, the avoided damages in terms of health care costs (non fatal skin cancer cases and cataracts), prevented deaths (fatal skin cancer cases). These Regulations will also result in financial benefits for the federal house in the form of reduced operating costs to recharge their systems. Other benefits could be indirectly quantified: reduced damages to the fisheries; reduced agriculture damages; and reduced materials damages (buildings and equipment). To quantify these benefits, a study conducted by Applied Research Consultants (ARC) has estimated that for each dollar of health-related benefits, there are additional benefits: $0.76 related to fisheries, $1.19 related to agriculture and $0.20 related to materials. There are other benefits that have not been quantified. These benefits are related to a reduction in damages to the immune system, as well as reduction to climate change impacts. An additional benefit that has not been quantified is related to bequest value resulting from environmental improvement. The bequest value is defined as the monetary value the current population is willing to pay to ensure that future generations will benefit from an environment that is either as good as now or better. The annual quantified benefits resulting from these Regulations are as follows: * ** Health, fisheries, agriculture and material related benefits: * $1,136,750 per year from 1998 to 2020 $521,235 per year from 2021 to 2060 * ** Financial benefits in the form of reduced operating costs: * $379,995 per year from 1998 to 2060 * ** Total annual benefits are then: * $1,516,745 per year from 1998 to 2020 $901,229 per year from 2021 to 2060 The present values shown in Table 1 have been estimated for the period from 1998 to 2060 using 5%, 7.5% and 10% as discount rates. The present values of the benefits fluctuate between $14 and $25 million ($1997). TABLE 1: Present value of benefits for three discount rates
It should be noted that these benefits are underestimated since bequest values, prevented damages resulting from a reduction of the human immune system as well as global warming consequences, have not been quantified. Costs of these Regulations Federal facilities costs to be in compliance with these Regulations Even though affected federal facilities will benefit from a reduction in their operating costs (see financial benefits in the benefit section), they will have to incur the costs to implement these Regulations. These costs will amount to $958,189 per year for the period from 1998 to 2019 and $574,913 per year from 2020 to 2060. The present value of these additional costs, evaluated over the period of 1998 to 2060 and using three discount rates (5%, 7.5% and 10 %), fluctuate from $9.1 to $16 million (Table 2). Environment Canada costs to enforce these Regulations There are costs associated with the development of these Regulations and ensuring that there are regular inspections and inquests. They are expected to total: * ** $240,000 in 1998 to develop the Regulations before its promulgation * * ** 7 person-year or $595,560 per year from 1999 to 2004 * * ** 6 person-year or $510,480 per year from 2005 to 2019 * * ** 5 person-year or $425,400 per year from 2020 to 2060 * It should be noted that the above enforcement costs do not take into consideration expenses associated with legal fees if non compliance result in prosecutions. The rationale for a reduced number of human resource over the years could be explained by a reduction of equipment using ODSs over these years. As shown in Table 2 below, the present values of these costs between 1998 and 2060, and using 5%, 7.5% and 10% as discount rates, vary from $5.08 to $9.39 million. The total present value of costs resulting from the implementation of these Regulations fluctuate from $14 to $25 million (Table 2). TABLE 2: Present values of compliance costs to affected federal facilities as well as enforcement costs to Environment Canada.
Table 3 summarizes the present value of both the costs and benefits. In addition, it assesses the net present value which is defined as the present value of the benefits minus the present value of the costs. The net present value is positive, that benefits exceed costs. This occurs even with some of the benefits not quantified. TABLE 3: Present values of costs and benefits as well as the net present values
Consultation Consultations have been held with representatives of federal departments and agencies through the Federal Halocarbon Regulation Working Group. The socioeconomic impact study assessing the impact resulting from the implementation of these Regulations is based on data provided by the larger departments and agencies. Since the first draft of this study has been the subject of comments from departments, the study has been modified to address these comments. Prior to being published in the Canada Gazette, Part I, these Regulations were placed on Environment Canada's Web site. Comments have also been raised dealing with the practicability for affected departments to comply with these Regulations. Changes have been incorporated to address these concerns. Further to the publication of this Regulatory Impact Analysis Statement in the Canada Gazette, Part I on August 29, 1998, these Regulations were mailed to over 2,500 stakeholders and nine comments have been raised. These comments required clarifications on specific clauses of the Regulations and did not deal with the intent of the Regulations. These requests for clarification have been answered. Compliance and Enforcement The Federal Halocarbon Regulations will be proclaimed under the Canadian Environmental Protection Act and will be subject to its Enforcement and Compliance Policy. The policy, among other things, outlines measures to promote compliance, including education and information promotion of technology development, and consultations on regulations development. Enforcement will be carried out through compliance monitoring to verify compliance including provision of affected departments reports to the Department of the Environment, and through investigations of violations. Responses to violations will be consistent with the criteria outlined in the Enforcement and Compliance Policy, i.e., the nature of the violation, effectiveness in achieving the desired result, and consistency in enforcement. Minor violations such as those for which the degree of harm or potential harm to the environment or human health is minimal could be dealt with by issuing warnings. More serious offenses such as those having serious impact on human health or the environment could lead to criminal prosecution. Contacts Arthur Stelzig Head Chemical Producers Section National Office of Pollution Prevention Department of the Environment Ottawa, Ontario K1A 0H3 Tel.: (819) 953-1131 FAX: (819) 953-5595 Internet Address: art.stelzig@ec.gc.ca Arthur Sheffield Chief Regulatory and Economic Analysis Branch Economic and Regulatory Affairs Directorate Department of the Environment Ottawa, Ontario K1A 0H3 Tel.: (819) 953-1172 FAX: (819) 997-2769 Internet Address: arthur.sheffield@ec.gc.ca R.S., c. 16 (4th Supp.) R.S., c. 16 (4th Supp.) |
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