Ozone-depleting Substances and Halocarbon Alternatives Regulations (SOR/2016-137)

Marginal note:Plastic foam or rigid foam product

• 65.03 (1) As of January 1, 2021, it is prohibited for any person to manufacture a plastic foam or a rigid foam product in which an HFC set out in Table 4 of Schedule 1 is used as a foaming agent if the global warming potential of the foaming agent is greater than 150.

• Marginal note:Exception — military, space or aeronautic applications

  (2) Subsection (1) does not apply to a plastic foam or a rigid foam product that is intented to be used for military, space or aeronautical applications.

Marginal note:Pressurized containers — 2 kg or less of an HFC used as propellant

• 65.04 (1) As of January 1, 2019, it is prohibited for any person to manufacture a pressurized container that contains 2 kg or less of an HFC when the HFC is used as a propellant if the global warming potential of that HFC is greater than 150.

• Marginal note:Exception — miscellaneous products

  (2) Subsection (1) does not apply to the pressurized containers referred to in subsections 64.6(2) and (3).

Destruction of HFCs

Marginal note:HFC no longer needed

65.05 A person in possession of an HFC set out in Table 4 of Schedule 1 that was imported or manufactured under a permit issued under these Regulations and that is no longer needed for the use set out in that permit must, within six months after the day on which it is no longer needed,

• (a) ensure that it is sent for destruction to a facility referred to in paragraph 12(c);

• (b) ensure that it is exported for destruction, for use as feedstock or for a laboratory or analytical use; or

• (c) in the case of a recovered, recycled or reclaimed HFC, ensure that it is sent to a recycling or reclamation facility.

Consumption Allowance for HFCs

Marginal note:Calculation of consumption allowance for HFCs

• 65.06 (1) The annual consumption allowance for an HFC set out in Table 4 of Schedule 1 to which a person is entitled is determined as follows:

  • (a) for each calendar year that falls within the period that begins on January 1, 2019 and ends on December 31, 2023, by multiplying the base consumption granted to that person by 90%;

  • (b) for each calendar year that falls within the period that begins on January 1, 2024 and ends on December 31, 2028, by multiplying the base consumption granted to that person by 60%;

  • (c) for each calendar year that falls within the period that begins on January 1, 2029 and ends on December 31, 2033, by multiplying the base consumption granted to that person by 30%;

  • (d) for each calendar year that falls within the period that begins on January 1, 2034 and ends on December 31, 2035, by multiplying the base consumption granted to that person by 20%; and

  • (e) as of January 1, 2036, by multiplying the base consumption granted to that person by 15%.

• Marginal note:Calculation of base consumption

  (2) The base consumption granted to a person is determined as follows:

  C/D × E

  where

  C

  is the person’s average HFC consumption for 2014 and 2015, expressed in tonnes of CO₂ equivalent;

  D

  is the average Canadian HFC consumption for 2014 and 2015, expressed in tonnes of CO₂ equivalent; and

  E

  is 18 008 795 tonnes of CO₂ equivalent.

• Marginal note:Permanent or temporary transfer

  (3) If a transfer of a portion of the consumption allowance is approved in accordance with subsection 65.08(4), the transferred portion is subtracted from or added to the person’s annual consumption allowance, as the case may be,

  • (a) in the case of a permanent transfer, for every calendar year following the year of the transfer; and

  • (b) in the case of a temporary transfer, for the calendar year of the transfer.

• Marginal note:Written notice

  (4) The Minister must inform the person in writing of their consumption allowance.

Marginal note:Annual consumption allowance for HFCs not to be exceeded

• 65.07 (1) A person who is granted an annual consumption allowance must ensure that it is not exceeded by determining their calculated level of consumption for each HFC for a calendar year and then adding together all of their calculated levels of consumption.

• Marginal note:Calculated level of consumption

  (2) The calculated level of consumption for an HFC — excluding a recovered, recycled or reclaimed HFC that is imported or exported — that is manufactured, imported or exported during a calendar year must be determined using the following formula:

  (M × GWP) + (I × GWP) – (E × GWP)

  where

  M

  is the quantity manufactured during the calendar year, other than the quantity manufactured for use as feedstock;

  GWP

  is the global warming potential of the HFC;

  I

  is the quantity imported during the calendar year; and

  E

  is the quantity exported during the calendar year.

Marginal note:Prohibition — transfer without authorization

• 65.08 (1) It is prohibited for any person to transfer all or a portion of their annual consumption allowance of HFCs unless the Minister approves the transfer under subsection (4).

• Marginal note:Temporary or permanent transfer

  (2) A transfer is temporary if it applies to only one calendar year and it is permanent if it applies to all calendar years.

• Marginal note:Application to Minister

  (3) The transferor and transferee must submit an application for the transfer to the Minister that contains the information required by Schedule 4 and specifies whether the proposed transfer is temporary or permanent.

• Marginal note:Conditions

  (4) The Minister must approve the transfer if the transferor has an unused consumption allowance that is not less than the quantity of the proposed transfer.

• Marginal note:Written notice

  (5) The Minister must inform the transferor and transferee in writing of the decision concerning the application for a transfer and of their consumption allowances.

Marginal note:Grounds for refusal and cancellation

• 65.09 (1) The Minister may refuse to approve or may cancel a transfer if the Minister has reasonable grounds to believe that the transferee is not able to manufacture, use, sell, import or export an HFC in compliance with Canadian law.

• Marginal note:Effect of cancellation

  (2) If the Minister cancels a transfer, the transferee must, without delay, transfer back to the transferor any unused portion of the consumption allowance.

Marginal note:Retirement of consumption allowances

• 65.1 (1) A person may retire their consumption allowance by providing the Minister with a notice in writing to that effect containing the information required by Schedule 4.

• Marginal note:Effect of retirement

  (2) A person who has retired their consumption allowance is not entitled to any further consumption allowance.

PART 5Essential Purpose

Marginal note:Exceptions — essential purpose

• 66 (1) Despite subsection 13(1), sections 15 and 17, subsection 19(1), sections 40 and 41, subsections 42(1) and 43(1), sections 48 and 49, subsection 50(1), section 51, subsection 53(1), subsections 64.4(1), 64.5(1) and 64.6(1), sections 65.02 and 65.03 and subsection 65.04(1), a person may import, manufacture, use or sell a substance set out in Table 1, 3 or 4 of Schedule 1 or a product containing or designed to contain that substance if the substance or product will be used for an essential purpose and if a permit is specifically issued under these Regulations for that purpose.

• Marginal note:Essential purpose

  (2) An essential purpose is a purpose requiring the use of a substance or a product containing or designed to contain a substance, when that use is necessary for the health and safety or the good functioning of society, encompassing its cultural and intellectual aspects, and when there are no technically or economically feasible alternatives to that use that are acceptable from the standpoint of the environment and of health.

PART 6Notice and Application for Permit

Notice

Marginal note:Notice to Minister

• 67 (1) A person who proposes to ship a substance into or out of Canada for the purpose of transit must provide a notice of shipment in transit to the Minister containing the information required by Schedule 2 at least 15 days prior to the date of entry into Canada or the date of exit from Canada.

• Marginal note:Acknowledgement

  (2) The Minister must acknowledge receipt of the notice in writing.

Application for Permit

Marginal note:Required information

68 An application for a permit must be submitted to the Minister and contain the information and documents required by the following sections of Schedule 5:

• (a) in the case of exportation, section 1 or 2;

• (b) in the case of importation, section 3;

• (c) in the case of manufacture, section 4;

• (d) in the case of an emergency use or a critical use of methyl bromide, section 5; and

• (e) in the case of use for an essential purpose, section 6.

Marginal note:Conditions

69 The Minister may issue a permit if

• (a) its issuance is in accordance with the Protocol or a Decision;

• (b) all of the information required under section 68 has been provided; and

• (c) the purpose of the permit has been established and is in accordance with these Regulations.

Marginal note:Duration

• 70 (1) A permit is effective

  • (a) if the application is submitted for the current year, for the period beginning on the date of its issuance and ending on December 31 of the year in which it is issued; or

  • (b) if the application is submitted for the subsequent year, for the period beginning on January 1 and ending on December 31 of the year for which it is issued.

• Marginal note:Essential purpose

  (2) Despite subsection (1), a permit for an essential purpose may be issued for a period of up to 36 months.

Marginal note:Revocation

• 71 (1) The Minister must revoke a permit if any of the conditions set out in section 69 has not been met or if he or she has reasonable grounds to believe that the permit holder has provided false or misleading information to him or her.

• Marginal note:Conditions for revocation

  (2) The Minister must not revoke a permit unless he or she has provided the permit holder with written reasons for the revocation and an opportunity to be heard, by written representation, in respect of the revocation.

PART 7Miscellaneous Provisions

Annual Report and Other Information

Marginal note:Annual report

72 Every person who, in a given calendar year, has a consumption allowance, a manufacturing allowance or a permit issued under these Regulations must submit to the Minister a report that contains the information required by Schedule 6, no later than January 31 following that year.