Regulatory impact analysis statement of the proposed multi-sector air pollutants regulations

This fact sheet provides an overview of the regulatory impact analysis statement (RIAS) covering the proposed Multi-Sector Air Pollutants Regulations (MSAPR) in a question and answer format. It provides background on the RIAS, followed by information on the different components of the analysis, and finally details on the results of the analysis.

What is the regulatory impact analysis statement (RIAS)?

The RIAS is a summary of the expected outcomes of a regulatory initiative. These effects could include economic, social, and environmental factors.  It allows audiences to understand the reason the issue is being regulated, the government's objectives, and the costs and benefits of the regulation. It also addresses who will be affected, who was consulted in developing the regulation, and how the government will evaluate and measure the performance of the regulation against its stated objectives.

Which industrial sectors or equipment groups are covered by the MSAPR regulatory impact analysis statement?

Equipment found across multiple industrial sectors are covered by the MSAPR RIAS:

  1. Stationary spark-ignition gaseous-fuel-fired engines (or “engines”), primarily found in oil and gas production and processing
  2. Gaseous-fuel-fired non-utility boilers and heaters (or “boilers and heaters”), in multiple sectors (Base metal smelting, chemicals, oil sands, pulp and paper, upstream oil and gas, aluminum, iron and steel, potash)
  3. Kilns at cement manufacturing facilities

What air contaminants are targeted?

The proposed Regulations would establish performance standards related to:

  • Emissions of nitrogen oxides (NOx): for engines, and boilers and heaters
  • NOx and sulphur dioxide (SO2) emissions: for kilns at cement manufacturing facilities

NOx and SO2 have been linked directly to poor health effects, e.g., increased risk of medical complications, ranging from mild breathing difficulty, to severe chest pains, hospitalisation, and even an increased risk of death. These pollutants can also cause a variety of negative effects on crops, other vegetation, soils, water, wildlife, materials, as well as overall ecosystem health.

How much will MSAPR reduce emissions?

MSAPR will result in emission reductions across Canada. The proposed Regulations are estimated to result in a reduction of approximately 2065 kilotonnes (kt) of NOx and 96 kt of SO2.

Emission reductions across Canada by type of emissions
Reduction of Emissions Engines Boilers and heaters Cement kilns Total
NOx Emissions
1775 kt
227 kt
63 kt
2065 kt
SO2 Emissions
0
0
96 kt
96 kt
Greenhouse gas (GHG) Emissions
3396 kt
N/A
N/A
3396 kt

What benefits would be achieved due to the emission reductions?

Benefits to Canadians are expected in the areas of the environment, greenhouse gas reductions and health. The value of environmental benefits largely comprises avoided crop damage. Significant health benefits, including avoided premature deaths and fewer air-quality-related emergency room visits, are expected due to several factors. It is expected that industry would benefit by operating more efficient equipment that would consume less fuel, which will also result in reduced greenhouse gas emissions.

Cost-benefit analysis
(2013-2035, present value, millions 2012 $CAN, 3% discount rate)
Benefits Engines Boilers and heaters Cement kilns
Total benefits
6,961
1,183
1,487
Environmental benefits to Canadians
245
29
31
GHG benefits to Canadians
77
N/A
N/A
Health benefits to Canadians
6,487
1,154
1,456
Total benefits to Canadians
6,809
1,183
1,487
Total Benefits to Industry
152
0
0

What costs would be incurred to achieve the emission reductions?

Industry will likely incur costs by purchasing and operating more expensive equipment that produces fewer emissions. Due to the use of flexible compliance options and differing requirements for new versus existing equipment, virtually all equipment investments involve “add-on” technologies or the purchase of lower-emitting models at the end of the equipment life, rather than early retirement of equipment. Some administrative costs are also expected in order to demonstrate compliance to the regulation and meet reporting requirements. Costs to government include compliance promotion, enforcement and regulatory administration.

Cost-benefit analysis
(2013-2035, present value, millions 2012 $CAN, 3% discount rate)
Costs Engines Boilers and heaters Cement kilns
Total costs
470
50
43
Capital costs to industry
204
48
7
Operating costs to industry
189
0
35
Other compliance costs (e.g. testing) to industry
69
N/A
N/A
Administrative costs to industry
(e.g. preparing/submitting reports, data retrieving and record keeping)
1
Less than 1
Less than 0.1
Total costs to industry
463
48
42
Total costs to government
(Compliance promotion, enforcement, and regulatory administration)
7
2
1

What is the expected net effect of the proposed Regulations?

The net benefits (i.e., benefits minus costs) of the proposed Regulations are estimated to be $6.49 billion, $1.13 billion, and $1.44 billion for the engines, boilers and heaters and cement kiln regulations, respectively. These benefits correspond to benefit-cost ratios of 15:1, 24:1 and 34:1 for engines, boilers and heaters, and cement kilns.

Cost-benefit analysis
(2013-2035, present value, millions 2012 $CAN, 3% discount rate)
  Engines Boilers and heaters Cement kilns
Total benefits
6,961
1,183
1,487
Total costs
470
50
43
Net benefits
6,491
1,133
1,443
Benefit to cost ratio
15:1
24:1
34:1
Report a problem or mistake on this page
Please select all that apply:

Privacy statement

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: