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Vol. 138, No. 15 — April 10, 2004 Regulations Amending the Explosives RegulationsStatutory Authority Explosives Act Sponsoring Department Department of Natural Resources REGULATORY IMPACT Description The Explosives Regulatory Division (ERD) of Natural Resources Canada (NRCan) is responsible for the administration of Canada's Explosives Act (the Act) and Explosives Regulations (the Regulations). These Regulations control the importation, manufacture, storage and sale of commercial explosives, fireworks, ammunition and other pyrotechnic devices. They are enforced through a licensing and inspection program which issues licences and permits for all of the above-listed activities, as well as certificates for the use of display fireworks and theatrical pyrotechnics. Currently there are around 2 200 active storage/sale licences, 150 manufacturing licences and certificates, and more than 13 000 display fireworks and special effects pyrotechnian certificates. The level of public and worker safety afforded by both regulatory and non-regulatory programs and services provided by ERD is held in high regard both domestically and abroad. Accident rates involving blasting explosives are vanishingly low, security standards are effective in protecting the integrity of Canada's explosives supply and the internationally respected fireworks and pyrotechnics certification programs safeguard the public from tragic events such as the horrific night club fire in Rhode Island in 2003 (caused by pyrotechnics.) Fees for licences, permits and certificates are made by regulation pursuant to the Explosives Act and those currently stipulated in section 31 of the Explosives Regulations have been in effect since August 1993. This section requires amending to reflect the fee changes that were introduced between late 1993 and 1999 as a result of the need to recover the costs associated with delivering expanded program activities. (see footnote 1) While these fee changes were fully consulted with the affected industries before implementation, they have never been established by regulation. This amendment will not increase costs for the affected industry. In fact, certain fees collected were below cost to the Government's program, and there have been no increases in fees for most of the regulated community for more than nine years. Alternatives Industry self-regulation was considered as a means of limiting program costs, but the industry has experienced severe downsizing and has become significantly fragmented as a result of technology changes. This has led to a loss of technical expertise, an industry increasingly less competent to govern itself and consequently, a potentially increased risk to public and worker safety. This amendment is the only practical alternative to the status quo. It serves to establish by regulation, fees that were introduced and collected from the affected industries for the period 1993 to 2004. Benefits and costs This amendment will not increase costs for the affected industry. The fees described in the amendment are those the industry is presently paying. The fees are charged to those parties whose activities generate the need for the Explosives Regulations and who are provided with regulatory services in order to manufacture, store, sell, test, transport and use regulated commodities. Broader societal benefits include the safety of Canadians and the protection of Canada's domestic explosives supply against criminal and terrorist interests. The intent of existing Treasury Board cost recovery policies was met, in that there was full consultation with the affected industries prior to establishing the fees, and all the monies raised were used to deliver program services to stakeholders. It should be noted that the total fees charged covered only around 60 percent of the cost of program delivery. ERD will begin in 2004, as soon as the existing fees are formalized, consultations with its industries to introduce a revised fee schedule which will be fully compliant with the latest Treasury Board External Charging Policy, introduced in August of 2003. NRCan is committed to ensuring a regulatory regime that is effective and efficient, a regime which ensures the provisions of the Act and Regulations are respected, which safeguards public and worker safety while not burdening industry with unnecessary costs and restrictions. Regulatory effectiveness equates with safety, and safety is the first priority of NRCan. Regulatory efficiency provides value-for-money for both the public and licensees, as well as confidence that resources are directed in such a manner that they fulfill ERD's mandate. Consultation ERD has conducted extensive and intensive consultation with the affected industry on fee changes and other fees. Methods used included notification in the Explosives and Pyrotechnics Bulletin, an ERD publication mailed to all licensees, a presentation at the explosives industry association meeting, and discussions at display fireworks and pyrotechnics training courses nationwide. Industry has complied with the fee system since 1993 and was aware of the Department's intention to formally regulate the fees: as part of the consultation for this new regulation, industry confirmed their agreement with the current fee system. Licensees and stakeholders were, and continue to be, encouraged to provide feedback to NRCan. It should be noted that although the regulatory amendment process has been underway for a number of years (due to resource limitations, plain-language writing initiative, etc.), ongoing dialogue and consultations have continued with the affected industry. In addition to prepublication in Part I of the Canada Gazette, as the affected industries are well defined, notification of this amendment proposal will be conducted through the mail-out of ERD's Report to Stakeholders in April 2004 and additionally through ERD's Web site: http://www.nrcan.gc.ca/mms/explosif/ index.htm, as well as through communications with relevant associations, groups, individuals using a variety of tools (meetings, e-mails, mail-outs, workshops, etc.). ERD is committed to conducting its regulatory consultations in a manner that encourages a positive engagement with the affected industries and stakeholders, while ensuring integrity and transparency. Compliance and enforcement No change is anticipated in terms of compliance and enforcement as a result of this amendment. The amended fee structure will be self-enforcing in that if the fee for the licence or permit is not paid, the licence or permit is not granted. Measures to encourage compliance with the Explosives Act and Explosives Regulations involve both promotion and enforcement. Promotional activities include communication and education, consultations, joint working groups and provision of technical assistance. Enforcement measures range from inspection, monitoring and investigations, through to licence suspension and prosecution if other compliance measures are not effective. An "Enforcement and Compliance Policy" has been published by the Explosives Regulatory Division and is available to the public, industry, stakeholders, etc. In addition, communication regarding regulations and other program activities are found on ERD's Web site and through regular reports to stakeholders and meetings, as required. Current compliance and enforcement procedures already in place under the Explosives Regulations will continue to serve well for these programs. These activities include: — a licensing program where licences and permits are issued for the manufacture, storage and sale of commercial explosives, ammunition, fireworks and other pyrotechnic devices: only authorized explosives can be manufactured or imported into Canada; — a national inspection program under which designated inspectors inspect explosives, vehicles, factories or magazines to ensure compliance with the Regulations and take appropriate compliance restoration and enforcement measures; — an explosive testing program to test whether or not an explosive is declared to be an authorized explosive (authorized to be manufactured in or imported into Canada); — customs monitoring whereby Canada Border Services Agency (CBSA) personnel ensure border control of importations of regulated commodities under the Explosives Regulations and follow NRCan's procedures described in Customs D-Memorandum D19-6-1. The fees to be paid for a licence or permit will be stipulated in the amended section 31 of the Explosives Regulations. The amended Regulations will be enforced by ERD's licensing and inspection program officers and do not imply any additional enforcement costs. Mr. Chris Watson, Chief Inspector of Explosives, Explosives Regulatory Division, Natural Resources Canada, 1431 Merivale Road, Ottawa, Ontario K1A 0G1, (613) 948-5170 (telephone). Notice is hereby given that the Governor in Council, pursuant to paragraph 5(b) (see footnote a) of the Explosives Act, proposes to make the annexed Regulations Amending the Explosives Regulations. Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice and be addressed to the Director and Chief Inspector, Explosives Regulatory Division, Natural Resources Canada, 1431 Merivale Road, Ottawa, Ontario K1A 0G1 (tel.: (613) 948-5171; fax: (613) 948-5195). Ottawa, March 30, 2004
EILEEN BOYD
REGULATIONS AMENDING THE AMENDMENT 1. Section 31 of the Explosives Regulations (see footnote 2) is replaced by the following: PART III.1 FEES 31. (1) The fees to be paid for a factory licence issued for a 12-month period are as follows: (a) for a factory licence (blasting explosives), $700 per process unit and per process vehicle, $15 per 1 000 kg storage limit increment of blasting explosives per magazine and $200 per detonator magazine, subject to a minimum fee of $2,000 and a maximum fee of $20,000; (b) for a factory licence (fireworks), $90 per process unit and per magazine, subject to a minimum fee of $200 and a maximum fee of $4,000; and (c) for all other factory licences, $180 per process unit, per process vehicle and per magazine, subject to a minimum fee of $900 and a maximum fee of $20,000. (2) The fees to be paid for a magazine licence issued for a 12-month period are as follows: (a) for a magazine licence (propellants), $90; (b) for a temporary magazine licence, $200; (c) for a fireworks magazine licence, $50; (d) for a magazine licence for blasting explosives, $15 per 1 000 kg storage limit increment of blasting explosives per magazine and $200 per detonator magazine; and (e) for any other magazine licence, $90 for each of the first two magazines and $180 for each additional magazine within a site. (3) The fees to be paid for a permit issued for a 12-month period are as follows: (a) for a general explosives importation permit, $30; (b) for an annual explosives importation permit, $100; and (c) for an explosives transportation permit, $30. (4) The fees to be paid for a certificate are as follows: (a) for a satellite site certificate for the manufacture of blasting explosives, $200 per month; (b) for a satellite transfer site certificate, $200 per month; (c) for a satellite demonstration site certificate, $200 per month; (d) for a certificate issued for a 12-month period to mechanically blend ammonium nitrate and fuel oil for immediate use at the place of use in quantities not exceeding 100 tonnes per year, $1,000; (e) for a certificate issued for a 12-month period to mechanically blend ammonium nitrate and fuel oil for immediate use at the place of use in quantities exceeding 100 tonnes per year, $2,000; (f) for a level I display fireworks certificate issued for a 5-year period, $100; (g) for a level II display fireworks certificate issued for a 12-month period, $100; (h) for a pyrotechnician (occasional user) certificate, $100 for the first year and $35 per year for renewals; (i) for a pyrotechnician (assistant) certificate issued for a 12-month period, $100; (j) for a pyrotechnician certificate issued for a 12-month period, $125; and (k) for a special effects pyrotechnician certificate issued for a 12-month period, $150. (5) If a licence or permit, other than a general explosives importation permit, is issued for a period other than 12 months, the fee is prorated. COMING INTO FORCE 2. These Regulations come into force on the day on which they are registered. [15-1-o] Not all of the Division's fees were changed: those which were affected ranged from those for licenses and certificates for the manufacture, storage and sale of blasting explosives to certificates for the purchase and use of display fireworks and theatrical special effects pyrothechnics for film, television and live entertainment applications. S.C. 1993, c. 32, s. 3(1) C.R.C., c. 599 |
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