Federal Halocarbon Regulations: consultation document on proposed revisions 2017

1. Introduction

Environment and Climate Change Canada (ECCC) is in the process of revising the Federal Halocarbon Regulations, 2003 (FHR 2003). The goal of the proposed revisions is to continue minimizing releases of halocarbons to the environment while modernizing the Regulations, and to address various administrative and operational matters in a more practical manner.

This consultation follows previous consultations carried out in 2013 in Halifax, Gatineau, and Edmonton. This consultation and revised proposals take into account comments received in the previous consultation and provide further details on specific changes proposed to the FHR 2003.

The previous consultation document and report can be viewed here or by contacting Environment and Climate Change Canada directly at 819-938-4228 (telephone) or by email.

The 2013 consultation provided options for amending and updating the FHR 2003 and sought comments on possible impacts. These options can be grouped into the following categories:

• Interpretation issues: revise or add key definitions, clarify timelines, and consolidate prohibitions.
• Compliance promotion and enforcement: add requirement for regulatees to provide a one-time self-declaration and to maintain a halocarbon inventory.
• Administrative and operational burden: remove leak-test notice requirements, remove 24-hour reporting requirements, revise permit requirements for critical fire-extinguishing systems, and revise information to be retained in records.
• Harmonization: align with provisions of the Ozone-depleting Substances Regulations, 1998, proposed revisions to the National Action Plan (phasing in new use restrictions), and new International Civil Aviation Organization (ICAO) standards for aircrafts (removing exemptions for installing and charging certain fire-extinguishing systems on new aircrafts).
• Performance measurement: add provisions to help measure the effectiveness of the Regulations on reducing halocarbon releases.

The revisions proposed in the 2013 consultations were largely supported by stakeholders, who submitted additional comments and suggestions. View the consultation report summarizing the comments received.

The present consultation takes into account the feedback received from the March 2013 consultations and from recent changes in the regulatory environment, including the entry into force of Ozone-depleting Substances and Halocarbon Alternatives Regulations.

Stakeholders are invited to review this updated Consultation Document, provide input on the proposed revisions to the FHR 2003, and to provide any additional comments.

Comments on the proposed revisions identified through this process will be considered by ECCC in finalizing its regulatory policy on the proposed amendments. Another opportunity to provide input will follow the publication of the revised proposed regulations in the Canada Gazette, Part I.

2. Background

Halocarbons

Halocarbons are synthetic chemical compounds used as refrigerants, fire-extinguishing agents, solvents, foam-blowing agents, and fumigants. Common halocarbons include chlorofluorocarbons (CFCs), halons, hydrochlorofluorocarbons (HCFCs), and hydrofluorocarbons (HFCs).

Most halocarbons deplete the ozone layer and all are greenhouse gases. Therefore, preventing halocarbon emissions provides a dual benefit for both ozone layer protection and climate change mitigation.

A list of halocarbons covered by the Regulations is found in Annex 1.

National Action Plan

The use and handling of halocarbons in refrigeration, air-conditioning, fire-extinguishing, and solvent systems are regulated in Canada by the provinces, territories, and the federal government in accordance with the National Action Plan (NAP) for the Environmental Control of Ozone-Depleting Substances (ODS) and their Halocarbon Alternatives (PDF, 337 KB).

Additional information can be found in the 2013 consultation documents.

Federal Halocarbon Regulations, 2003

The FHR 2003 implement the NAP regulatory tasks related to the use of halocarbons in refrigeration, air-conditioning, fire-extinguishing and solvent systems that are:

• Owned by federal departments, boards and agencies, Crown corporations or federal works and undertakings; or
• Located on Indigenous or federal lands.

Revising the FHR 2003 presents an opportunity to modernize the Regulations, reduce administrative burden, and to clarify certain interpretation issues that have arisen since the Regulations were published in 2003.

3. Consultation topics

This section is organized using the same headings found in the current Regulations and the 2013 Consultation Document. Only topics where there is a significant change from the March 2013 consultation, or are new proposals, have been included. ECCC is seeking input on these topics.

Follow-up to previous consultation

Interpretation

The purpose of the Interpretation provisions is to define words used in the FHR 2003 for which the meaning must go beyond or restrict the dictionary definition.

Issue 1: Definition of charging, installation, service and other terms

Input received from the March 2013 consultation:

• It was suggested to define activities that have an impact on releases, and to exclude activities that do not.

Proposed revisions:

• Proposed revisions focus on activities that have an inherent risk of a release of a halocarbon
  • For example, the terms “installation”, “charging”, and “servicing” would be clarified to specifically include tasks that involve the halocarbon circuits such as repairing leaks and assembly of the halocarbon circuits. The terms would be defined along the following lines:
  • "installation" means joining two or more components of equipment containing or designed to contain a halocarbon in order to complete the system, irrespective of the need to charge the system after assembly.
  • “service” means any work on an air-conditioning system, a refrigeration system, a solvent system, a fire-extinguishing cylinder, or a container that involves work on the components containing or designed to contain a halocarbon, such as charging, removing or reassembling one or more parts of the halocarbon circuit, as well as testing for and repairing leaks but does not include testing related to the manufacture and production of the system, cylinder, or container.
  • “charging” means to add a halocarbon to an air-conditioning system, a refrigeration system, a solvent system, a fire-extinguishing cylinder, or a container.

Issue 2: Definition of owner

Input received from the March 2013 consultation:

• It will be important to define the responsibilities of owner, operator, contractor and service technician.
• Regulatory obligations need to be linked to the most appropriate persons, who have control over the system.

Proposed revisions:

• The definition of “owner” would be removed from the Regulations. The FHR 2003 provides a definition of “owner” that includes persons that fall outside of the common definition of “owner”. By removing the definition from the regulations, the ordinary meaning or dictionary definition of the term would apply.
• Proposed changes to the Regulations would distinguish between the “owner” and “operator” of a system. The ordinary meaning would apply to these terms (that is, the dictionary definition). This will simplify the interpretation of the Regulations.

Issue 3: Definition of small system

Input received from the March 2013 consultation:

• Small systems could be defined by the quantity of refrigerant (for example 10 kg).

Proposed revisions:

• Proposed revisions would define small and large systems or containers (air-conditioning, refrigeration, fire-extinguishing) by the design quantity of refrigerant in the system or containers (nameplate data). The threshold would be 10 kg of halocarbon. Systems would be defined along the following lines:
• “small air-conditioning system” means an air-conditioning system that:
  • has a single refrigerant circuit that contains or is designed to contain 10 kg or less of halocarbon, or
  • has multiple refrigerant circuits, each of which contains or is designed to contain 10 kg or less of halocarbon.
• “small container” means a container that contains or is designed to contain 10 kg or less of halocarbon.
• “small fire-extinguishing cylinder” means a fire-extinguishing cylinder that contains or is designed to contain 10 kg or less of halocarbon.
• “small refrigeration system” means a refrigeration system that:
  • has a single refrigerant circuit that contains or is designed to contain 10 kg or less of halocarbon, or
  • has multiple refrigerant circuits, each of which contains or is designed to contain 10 kg or less of halocarbon.
• “small solvent system” means a solvent system that contains or is designed to contain 10 kg or less of halocarbon.
• Large systems and containers would be similarly defined.

Issue 4: Definition of refrigeration system

New proposal: this is a new proposal that was not part of the March 2013 consultation.

• The term “associated equipment” has created interpretation challenges in certain cases where the equipment was highly specialized and non-conventional, more specifically about what is included and excluded. The following proposed revisions aim to address this issue.

Proposed revisions:

• Proposed revisions would remove a reference to “associated equipment” and clearly define that a refrigeration system is one that has a compressor, a condenser, an evaporator, and an expansion valve.
• This proposed definition would clarify that a refrigeration system would only include systems that use the common refrigeration cycle.
• “refrigeration system” would mean something like: a refrigeration system, that has a compressor, a condenser, an evaporator, and an expansion valve, and that contains or is designed to contain a halocarbon refrigerant.

Recovery

The purpose of the Recovery provisions is to reduce the risk of releasing halocarbons to the environment during system maintenance or at the end of a system’s life by mandating their recovery.

Issue 5: Recovery from out of service systems

Input received from the March 2013 consultations:

• As long as due diligence is exercised, there is no point in removing the refrigerant. Typically, systems that are not regularly used continue to be leak tested regularly, thus this provision may not be required.

Proposed revisions:

• The revisions would require recovery of refrigerant only in cases where the equipment is being permanently removed from service. It would also clarify obligations for equipment temporarily removed from service.
• Before permanently withdrawing from use any air-conditioning system, refrigeration system, solvent system, fire-extinguishing cylinder, or container, it is proposed that a person shall recover all halocarbons contained in the system or cylinder into a container designed to contain that specific type of halocarbon.
• The requirement to recover all halocarbons would not apply to a small air-conditioning system or a small refrigeration system when the system is being transferred to a new owner, the system is in operating condition, and the transfer would not result in the release of a halocarbon.

Installation, servicing, leak testing and charging

The purpose of the installation, servicing, leak testing, and charging provisions is to minimize releases of halocarbons to the environment by ensuring that refrigeration, air-conditioning, and fire-extinguishing systems are properly maintained.

Issue 6: Charging halocarbons for leak testing

Input received from the March 2013 consultation:

• To identify the source of a leak, trace amounts of refrigerants must sometimes be used. Trace gases are used for leak-testing procedures. This is, according to some stakeholders, an acceptable procedure in the U.S.A.
• Other mechanisms for leak testing exist; however, they can only be performed at the manufacturing facility (and not in the field).

Proposed revision:

• There are alternative methods to leak testing an empty air-conditioning system or a refrigeration system without the use of a halocarbon. This is consistent with best practices.
• The amendments would revise subsection 9(3) and section 23 to prohibit the charging of a system with any halocarbon for the purpose of leak testing.
• It is proposed that no person shall charge an air-conditioning system or a refrigeration system with a halocarbon listed in Schedule 1 for the purpose of leak testing the system.
• It is proposed that no person shall charge a fire-extinguishing cylinder with a halocarbon listed in Schedule 1 for the purpose of leak testing the cylinder system.

Issue 7: Annual inspections

Input received from the March 2013 consultation:

• At the time of the first consultation, it was proposed to require an annual inspection on the equipment, in addition to leak tests.
• The annual inspection requirements would need to be clearly defined, perhaps in reference to manufacturing specifications.
• To meet the annual inspection requirement, inspections end up being scheduled on a shorter timeframe, which results in higher costs. Flexibility could be provided for the inspection timeframe (for example, allowing it to take place between 10 and 14 months if an annual inspection is required, or specifying that the period between tests cannot exceed 15 or 18 months). It could also be useful to specify a minimum amount of time (for example, 4 to 6 months) between inspections (that is, to avoid situations where someone would conduct them on two consecutive days, for example Dec. 31 and Jan. 1 of subsequent calendar years).

Proposed revisions:

• This provision has been removed from the originally proposed amendments. Given the complexity and broad differences between systems covered by these Regulations, it would be very difficult to regulate specific procedures that could apply to all systems while still being enforceable.
• The requirement for leak tests is deemed sufficient to manage the risk of halocarbon releases and ECCC believes that it is not necessary to regulate additional system inspections.

Issue 8: Annual leak tests

New proposal: this is a new proposal that was not part of the March 2013 consultation.

• The input received on annual inspections mentioned in Issue 7 above, pertaining to added scheduling flexibility, is proposed to apply to leak testing. While the initially proposed revisions under Issue 7 are no longer being considered, there are some elements of the feedback received that could provide additional flexibility to leak test requirements.

Proposed revisions:

• It is proposed that annual leak tests would be performed at least once per calendar year and no longer than 450 days from the previous leak test.
• This would add flexibility for operators and owners without the incurred costs of earlier tests every year based on availability of technicians and/or weekends (“schedule creep”).
• It is proposed that the owner or operator shall conduct a leak test of all the components of a large refrigeration system, air-conditioning system, or fire-extinguishing cylinder that come into contact with a halocarbon and currently holds a halocarbon,
  1. at least once every calendar year; and
  2. no more than 450 days since the previous leak test.

Issue 9: ICAO amendments

New proposal: this new proposal differs from the March 2013 consultation.

The International Civil Aviation Organization (ICAO) has amended Annex 6: Operation of Aircraft and Annex 8: Airworthiness of Aircraft of the Convention on International Aviation to prohibit the use of certain halon fire-extinguishers on newly manufactured or designed aircrafts. As a member of the ICAO, Canada must comply with the Convention and changes adopted by Resolutions of the Organization. These uses are currently allowed under sections 29 and 30 and paragraph 34(1)(b) of the FHR 2003.

Proposed revisions:

• Revise the FHR 2003 to align with Canada’s ICAO obligations regarding the use of Halon and other halocarbons in civil aviation:
  • Planned phase-out dates from ICAO may change based on development of new technologies and international negotiations. The proposed amendments related to issuance of permits would provide sufficient flexibility to adapt to changing technologies over time without establishing specific phase-out dates within the Regulations.

Service logs

Requiring regulatees to record all activities that result, or may result, in the releases of a halocarbon in a service log provides information that proper system maintenance has occurred. The service logs allow owners to track activities and discover trends, for better decision-making.

Issue 10: Exemption of small refrigeration and small air-conditioning systems from service log requirements

Input received from the March 2013 consultations:

• Most agreed that keeping service logs represents a best practice in terms of management and stewardship, and does not necessarily need to be regulated.
• Many participants supported the proposed revision to exempt small systems, as it would reduce unnecessary burden.
• One stakeholder group felt that this exemption should not be provided (that is, maintain the requirement to report). If this approach is adopted, a clear definition of a service log would be required.
• Once again, the requirements should accommodate the availability and use of electronic records, which are not necessarily on site.

Small refrigeration and small air-conditioning systems (see Issue 3) generally refer to domestic appliances that contain little refrigerant and are often easier to replace than to repair. Requiring service logs to be maintained for these systems would add administrative burden and detract focus from larger industrial systems, which have greater potential to negatively impact the environment.

These systems are already exempt from annual leak tests required under subsection 11 (2) of the FHR 2003. Consistent with that exemption, service logs would not be required to record all activities.

Proposed revisions:

• For small systems or containers, service logs would only be necessary to track servicing.
• The owner or operator of a small air-conditioning system, a small refrigeration system, a small solvent system, a small fire-extinguishing cylinder or a small container would be required to maintain a written record, or a record in an electronic format available at the premises and provided to the Minister upon request, of the information set out in item 5 of Schedule 2 whenever the system, cylinder, or a container is being serviced.
• It is proposed that item 5 of Schedule 2 would include:
  1. name and address of owner of system, cylinder, or container
  2. name of operator of system, cylinder, or container
  3. type of system, cylinder, or container (air-conditioning system, refrigeration system, solvent system, fire-extinguishing cylinder, container)
  4. specific location of system, cylinder, or container on the site
  5. serial number, or unique identifier assigned by the owner or operator of the system, cylinder, or container
  6. type of halocarbon contained in system, cylinder, or container
  7. charging capacity of system, cylinder, or container
  8. for each activity:
     1. date of activity
     2. type of activity (installation, service, permanent withdrawal from use, transfer of ownership)
     3. if activity is a service, description of service
     4. name of qualified technician
     5. name of employer of qualified technician (if applicable)
     6. quantity of halocarbon recovered (if applicable)
     7. if charging a system, type and quantity of halocarbon charged

Critical systems

Issue 11: Critical systems

Input received from the March 2013 consultations:

• There was general support for this provision; one stakeholder group cautioned that the definition of “critical systems” needs to be clear to avoid interpretation issues.

Proposed revisions:

• Since fire-extinguishing systems typically are part of building safety systems, the concept of establishing criteria to designate some as “critical” and not others was abandoned. Rather, it is proposed that charging permits for fire-extinguishing systems be valid for three years without the need for “critical” designation. This is an increase up from one year in the FHR 2003.
• The Minister may issue the permit in respect of the solvent system valid for one year beginning on the date of issuance, or in the case of a fire-extinguishing cylinder, valid for three years beginning on the date of issuance.

Permits

Issue 12: Issuance of permits

New proposal: this is a new proposal that was not part of the March 2013 consultation.

• The current regulations state that the Minister “shall” issue a permit if certain conditions are met which may limit the evaluation of a permit application based on its merit.

Proposed revisions:

• The Minister may issue the permit in respect of the solvent system valid for one year beginning on the date of issuance, or in the case of fire-extinguishing cylinder valid for three years, beginning on the date of issuance, if
  1. all of the information required has been provided; and
  2. the purpose of the permit has been established and is in accordance with these Regulations.

Logs, notices, records and reports

The purpose of the logs, notices, records, and reports provisions is to ensure that these documents are available and easily located.

Issue 13: Regulatee self-identification

Input received from the March 2013 consultations:

• Clarity is required regarding whether the intent is to have a point of contact for communication purposes vs. responsibility for the systems that have regulatory compliance implications.
• There were concerns around the creation of unnecessary regulatory burden and the rationale for this requirement, though stakeholders understand the importance of ECCC having an up-to-date list of regulatees for contact.
• If possible, a mechanism other than regulations should be considered to allow ECCC to achieve its objective.

Proposed revisions:

• Based on comments received from the March 2013 consultations, this proposed revision was removed and is no longer being considered.

Issue 14: Unoccupied sites

New proposal: this is a new proposal that was not part of the March 2013 consultation.

Subsection 36(4) currently requires that copies of all logs, notices, records, and reports for unoccupied sites (that is, sites that are not regularly occupied by the owner) are kept at a single location that is occupied by the owner. Owners were also required to submit information on these systems to ECCC in 2004, and update the information whenever it changed. The inventory of unoccupied sites is not necessary to effectively implement and enforce the FHR 2003 and results in an unnecessary administrative burden.

Proposed revisions:

• Revise subsection 36(4) to remove the requirement to update information on unoccupied sites and to require that copies of all logs and reports for unoccupied sites be accessible at the nearest location to the site that is occupied by the owner or operator.
• Electronic record-keeping in a central location would be permitted as long as the information is made available at the site occupied by the owner or operator.
• “In the case of an air-conditioning system, a refrigeration system, a solvent system, a fire-extinguishing cylinder, or a container located on a means of transportation, at a premise or site where access is limited for at least 4 months per year, or at a premise or site that is not occupied by the owner or operator daily, the owner or operator shall keep a copy of, or make available, all logs and reports required by these Regulations with respect to that system, cylinder, or a container at a single location occupied by the owner or operator.”

Schedule 1

The purpose of Schedule 1 is to list the halocarbons that are subject to the FHR 2003. The list of substances remain the same, the layout has been adapted to align with other ECCC regulations.

List of halocarbons

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. Bromochloromethane (Halon 1011)
9. Hydrobromofluorocarbons (HBFC)
10. Hydrochlorofluorocarbons (HCFC)
11. Hydrofluorocarbons (HFC)
12. Perfluorocarbons (PFC) (perfluorocarbon)

4. One-for-one rule and small business lens

The federal government has implemented a one-for-one rule to reduce administrative burden on business (that is, the time and resources spent by business to show compliance with government regulations). The one-for-one rule requires that regulatory changes that increase administrative burden on business be offset with equal administrative burden reductions from within existing regulations in the Environment portfolio. The rule further requires departments to consult affected businesses on the estimated administrative burden prior to seeking approval to publish draft regulations.

A survey on administrative burden of the FHR 2003 was sent to over 3000 stakeholders in 2015. The survey asked questions about how long it takes to meet certain administrative obligations of the FHR 2003; and what would be the impact of proposed revisions. As a result, it was determined that the proposed revisions would result in an overall reduction of administrative burden on stakeholders.

5. Providing input

Written comments on this Consultation Document should be submitted by December 19, 2017 to:

Ozone Layer Protection and Export Control Section
Chemical Production Division
Environment and Climate Change Canada
351 St. Joseph Blvd., 19th Floor
Gatineau QC  K1A 0H3
Fax: 819-938-4218
E-mail: Halocarbons management

ECCC welcomes the addition of new contacts and the distribution of this document to other potential stakeholders.

For more information on the FHR 2003, the consultation process or the Consultation Document, contact Mr. Michel Gauvin at 819-938-4206 (telephone) or by email.

6. Next steps

Following the close of the public consultation period on December 19, 2017, ECCC will consolidate and summarize all input received and finalize its regulatory policy for the proposed revisions to the FHR 2003.

Stakeholders will have another opportunity to provide comment on the proposed regulatory revisions following their publication in the Canada Gazette, Part I.

7. Additional information

For more information on ozone depletion, Canada’s Ozone Layer Protection Program and associated Regulations, visit Environment and Climate Change Canada’s Stratospheric Ozone website.