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

Marginal note:Refillable container

47 Any HCFC that is manufactured for use as a refrigerant must be stored in a refillable container.

Marginal note:Prohibition — manufacturing products containing or designed to contain HCFC-22, HCFC-141b or HCFC-142b

48 It is prohibited for any person to manufacture a product containing or designed to contain HCFC-22, HCFC-141b or HCFC-142b.

Marginal note:Plastic foam

49 It is prohibited for any person to manufacture a plastic foam in which an HCFC set out in Table 3 of Schedule 1 is used as a foaming agent.

Marginal note:Products containing 2 kg or less of HCFCs

• 50 (1) It is prohibited for any person to manufacture a pressurized container that contains 2 kg or less of an HCFC set out in Table 3 of Schedule 1.

• Marginal note:Exception — miscellaneous products

  (2) Subsection (1) does not apply to the pressurized containers referred to in subsections 42(2) and (3).

Marginal note:Prohibition for products containing HCFCs — January 1, 2020

51 On or after January 1, 2020, it is prohibited for any person to manufacture a product containing or designed to contain an HCFC set out in Table 3 of Schedule 1.

Marginal note:Prohibition — using or selling HCFCs

52 It is prohibited for any person to use or sell an HCFC set out in Table 3 of Schedule 1, unless

• (a) it is sold for destruction;

• (b) it is used or sold as a refrigerant or as a fire-extinguishing agent or is to be exported; or

• (c) it was imported or manufactured under a permit issued under these Regulations and is to be used for one of the uses set out in column 3 of that Table.

Marginal note:Products containing 2 kg or less of HCFCs

• 53 (1) It is prohibited for any person to sell a pressurized container that contains 2 kg or less of an HCFC set out in Table 3 of Schedule 1.

• Marginal note:Exception — miscellaneous products

  (2) Subsection (1) does not apply to the pressurized containers referred to in subsections 42(2) and (3).

Destruction of HCFCs

Marginal note:HCFC no longer needed

• 54 (1) A person in possession of an HCFC set out in Table 3 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 a feedstock or for a laboratory or analytical use; or

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

• Marginal note:Exception — consumption or manufacturing allowance

  (2) Any person who is granted a consumption or manufacturing allowance under section 55 or 61 may either comply with subsection (1) or include the quantity of HCFCs that is no longer needed for the use set out in the permit in their calculated level of consumption or manufacture, only if doing so does not result in the allowance being exceeded.

Consumption Allowances for HCFCs

Marginal note:Calculation of consumption allowance

• 55 (1) The annual consumption allowance for an HCFC set out in Table 3 of Schedule 1 for use as a refrigerant or as a fire-extinguishing agent to which each person who was entitled to the allowance under the Ozone-Depleting Substances Regulations, 1998 is entitled is determined as follows:

  • (a) for each calendar year that falls within the period that begins on January 1, 2015 and ends on December 31, 2019, in accordance with the following formula:

    A × B

    where

    A

    is the consumption allowance, expressed in ODP tonnes, that was granted for 2014 for the cooling sector; and

    B

    is 28.57 %; and

  • (b) for each calendar year that falls within the period that begins on January 1, 2020 and ends on December 31, 2029, by multiplying the consumption allowance granted for 2019 by 5%.

• Marginal note:Transfer

  (2) If a transfer of a portion of the consumption allowance is approved in accordance with subsection 57(4), the transferred portion is substracted 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; or

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

• Marginal note:Written notice

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

Marginal note:Consumption allowance not to be exceeded

• 56 (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 HCFC 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 HCFC — excluding a recovered, recycled or reclaimed HCFC that is imported or exported — that is manufactured, imported or exported during a calendar year must be determined using the following formula:

  (M × ODP) + (I × ODP) – (E × ODP) – (D_i × ODP)

  where

  M

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

  ODP

  is the ozone-depleting potential set out in column 2 of Table 3 of Schedule 1 for the HCFC in question;

  I

  is the quantity imported during the calendar year;

  E

  is the quantity exported during the calendar year; and

  D_i

  is the quantity imported during the calendar year for destruction under paragraph 54(1)(a).

Marginal note:Prohibition to transfer without authorization

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

• Marginal note:Transfer may be temporary or permanent

  (2) A transfer is temporary if it applies to only one calendar year, and it is permanent if it applies to all calendar years up to and including 2029.

• Marginal note:Application to Minister

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

• Marginal note:Conditions

  (4) The Minister must allow 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

• 58 (1) The Minister may refuse to allow 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 HCFC 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

• 59 (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.

Manufacturing Allowance for HCFCs

Marginal note:Calculation of manufacturing allowance

• 60 (1) The annual manufacturing allowance for an HCFC set out in Table 3 of Schedule 1 to which each person is entitled is determined as follows:

  • (a) for each calendar year that falls within the period that begins on January 1, 2015 and ends on December 31, 2019, in accordance with the following formula:

    A × B / C

    where

    A

    is 81.9 ODP tonnes,

    B

    is the quantity manufactured by a person for 2013, expressed in ODP tonnes, and

    C

    is the quantity manufactured in Canada, expressed in ODP tonnes; and

  • (b) for each calendar year that falls within the period that begins on January 1, 2020 and ends on December 31, 2029, by multiplying the manufacturing allowance granted for 2019 by 5%.

• Marginal note:Greater manufacturing allowance

  (2) When it is necessary to allow Canada to fulfill its obligations under an agreement with a Party for the purpose of industrial rationalization or to satisfy domestic HCFC needs, the Minister may permit, for a calendar year, a greater manufacturing allowance than that which a person would have obtained under subsection (1) and that greater manufacturing allowance is not taken into account in any subsequent calculation of the annual manufacturing allowance.

• Marginal note:Written notice

  (3) The Minister must inform the person in writing of their manufacturing allowance.

Marginal note:Manufacturing allowance not to be exceeded

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

• Marginal note:Calculated level of manufacture

  (2) The calculated level of manufacture for an HCFC must be determined using the following formula:

  (M × ODP) – (D_m × ODP)

  where

  M

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

  ODP

  is the ozone-depleting potential set out in column 2 of Table 3 of Schedule 1 for the HCFC in question; and

  D_m

  is the quantity manufactured during the calendar year for destruction under paragraph 54(1)(a).

PART 4HFCs

62 [Repealed, SOR/2017-216, s. 10]

Exporting HFCs

Marginal note:Prohibition — exporting HFCs without permit

63 It is prohibited for any person to export an HFC set out in Table 4 of Schedule 1 without a permit issued under these Regulations.

Importing HFCs

Marginal note:Prohibition — importing HFCs without permit

64 It is prohibited for any person to import an HFC set out in Table 4 of Schedule 1 without a permit issued under these Regulations.

Marginal note:Purpose of importing

• 64.1 (1) The permit may only be issued to import an HFC for one of the following purposes:

  • (a) its destruction;

  • (b) its use as feedstock.

  • (c) [Repealed, SOR/2017-216, s. 11]

• Marginal note:Importing regardless of purpose

  (2) A permit may also be issued to import, regardless of purpose, an HFC that is recovered, recycled or reclaimed.

Marginal note:Exception — consumption allowance

64.2 Section 64 does not apply to a person who is granted an annual consumption allowance for an HFC or a transferee of an annual consumption allowance for an HFC intended for a use for which a substance set out in Tables 1 to 3 of Schedule 1 has been used in Canada.

Marginal note:Refillable container

64.3 Any HFC that is imported for use as a refrigerant must be stored in a refillable container.

Importing Products Containing HFCs

Marginal note:Prohibition — importing certain products containing HFCs used as refrigerants

• 64.4 (1) As of the date indicated in column 3 of Schedule 1.1, it is prohibited for any person to import any product set out in that Schedule that contains or is designed to contain an HFC that is set out in Table 4 of Schedule 1 and is to be used as a refrigerant, if the global warming potential of the refrigerant used in that product is greater than the specified limit in Schedule 1.1.

• Marginal note:Exception — personal effect

  (2) Subsection (1) does not apply to a product set out in Schedule 1.1 that is destined for residential use if it is a personal effect of the person.

• Marginal note:Automobiles — 2021 and subsequent model years

  (3) Beginning with the 2021 model year, it is prohibited for any person to import an automobile equipped with an air-conditioning system that contains or is designed to contain an HFC that is set out in Table 4 of Schedule 1 and is to be used as a refrigerant if the global warming potential of the refrigerant used in that system is greater than 150.

• Marginal note:Exception — personal use automobile

  (4) Subsection (3) does not apply to an automobile destined for the person’s personal use.

Marginal note:Plastic foam or rigid foam product

• 64.5 (1) As of January 1, 2021, it is prohibited for any person to import 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 — personal effect

  (2) Subsection (1) does not apply to a person’s personal effect that contains a plastic foam or a rigid foam product.

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

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