Proposed revisions to the Ozone-Depleting Substances Regulations: chapter 4
4. Proposed Revisions - Miscellaneous Provisions
4.1 Consolidating the Regulations
There is also a need to consolidate changes that have been made over the years (the original Ozone-depleting Substances Regulations, 1998 came into force on January 1st, 1999 and have been amended on five occasions) by removing obsolete exemptions and making non-substantive corrections to the legal text of the Regulations (e.g., renumbering the provisions). These changes are considered administrative in nature and would streamline and clarify the Regulations.
4.2 Prohibiting Non-Refillable Containers
In response to Decision XIX/12 of the Meeting of the Parties to the Montreal Protocol (see Annex 3), Environment Canada is considering banning the import and export of controlled ODS in non-refillable containers.
Furthermore, as part of the National Action Plan for the Environmental Control of Ozone-Depleting Substances (ODS) and their Halocarbon Alternatives2 each province and territory requires refrigerants to be packaged in refillable containers. In addition, the Federal Halocarbon Regulations, 2003 prohibit the storage, transport or purchase of a halocarbon unless it is in a container designed and manufactured to be refilled and to contain that specific type of halocarbon.
Problems have arisen in the enforcement of the various regulations and inconsistencies in the substances included in the regulations (e.g. all halocarbons versus ozone-depleting substances). Prohibiting the import and export of controlled ODS in non-refillable containers would ensure a level-playing field across Canada. It can also be expected that this would have a positive effect on the environment as containers would be reused instead of being disposed/landfilled.
4.3 Simplifying the Allowance System
Under the Regulations, a person may only import or manufacture HCFCs if that person holds:
- an initial or a baseline consumption allowance for a specific authorized sector, or
- a transfer authorized by the Minister.
Initial consumption allowance is defined as the person’s consumption of HCFCs in previous years, as determined in accordance with subsection 10(1) or (3) of the Regulations. The baseline consumption allowance is defined as the initial consumption allowance plus any additional quantities, as determined in accordance with subsection 10(4) or (6) of the Regulations.
4.3.1 Proposed new allowance system
The allowance system would be simplified to eliminate the initial consumption and the baseline consumption allowance. Under the new allowance system, allowances would be distributed to importers and manufacturers based on the formula set out in the Regulations for the years 2010 and beyond. In the Regulations as it is currently written, for each year that falls within the period that begins on January 1, 2010 and ends on December 31, 2014, the consumption allowance is the average of their calculated level of consumption of HCFCs for a specific sector for 2007 and 2008 multiplied by 53.85%. The percentage may be modified depending on the option chosen for the reduction in consumption of HCFCs.
This would simplify the administration of the Regulations.
4.3.2 Removal of the “use-it or lose it” approach
In 2003, stakeholders requested that the allowance system be revised to ensure proper supplies of HCFCs during the transition from HCFCs to alternatives in the “other use” sector. There was a recognized problem for the “other use” sector as the transition to alternatives had not been completed yet, and the phase-out of the substances used in that sector was approaching. When the revisions to the Regulations come into effect in 2010, the “Other Uses” sector will have phased-out the large majority of its uses.
Currently, if 90% or more of the quantity allowed to be imported or manufactured in a given year is used, the allowance is considered fully used for the purpose of calculating the consumption allowance in the future years. However, if an allowance holder, in a sector, used less than 90% of its allowance, the part not used is distributed to customers of that particular allowance holder. The unused portion is distributed proportionately to the quantities supplied to each of them during the year of reference.
It is proposed that this “use it or lose it” approach be removed from the Regulations.
This would also simplify the administration of the Regulations.
4.4 Use of Methyl Bromide for QPS
The use of methyl bromide for quarantine applications and pre-shipment applications (QPS) are emerging as important issues to the Parties to the Montreal Protocol. Environment Canada is considering the addition of reporting requirements for the use of methyl bromide for QPS, which may include the quantities used, the commodities on which the substances was used, etc. This will enable Canada to report its use of methyl bromide for quarantine applications and pre-shipment applications to the Parties to the Montreal Protocol. It could also support future decision-making on controlling QPS applications.
4.5 Production for Basic Domestic Needs
In order to satisfy the basic domestic needs of developing countries that are Party to the Montreal Protocol, Parties have decided to allow the production of HCFCs to exceed baseline levels by up to 10% in any given year. This concept will be introduced into the Regulations.
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