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

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.

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

• 64.6 (1) As of January 1, 2019, it is prohibited for any person to import 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:Exceptions — miscellaneous products

  (2) Subsection (1) does not apply to a pressurized container that contains

  • (a) a mould release agent or mould cleaning agent;

  • (b) a spinneret lubricant or cleaning agent used in the manufacture of synthetic fibers;

  • (c) a document preservation agent;

  • (d) a lubricant, cleaning agent, freezing agent or corrosion prevention agent used for electrical equipment or electronic components;

  • (e) a duster agent used on photographic negatives and semiconductor chips;

  • (f) a lubricant, cleaning agent or corrosion prevention agent used for aircraft maintenance;

  • (g) a pesticide used near electrical wires or in aircraft or a certified organic-use pesticide;

  • (h) a stench gas used in mines; or

  • (i) a cooling agent used for testing electronics and electro-mechanical systems.

• Marginal note:Exception — health care products and laboratory or analytical use

  (3) Subsection (1) does not apply to a pressurized container that contains a product that is intended

  • (a) for use in animal or human health care, including a bronchial dilator, inhalable steroid, topical anaesthetic, bandage adhesive remover and veterinary wound powder spray; or

  • (b) for a laboratory or analytical use.

Manufacture of HFCs

Marginal note:Prohibition — manufacture of HFCs without permit

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

Marginal note:Purpose of manufacture

65.01 The permit may only be issued to manufacture an HFC to be used as feedstock.

Marginal note:Prohibition — manufacturing products containing HFCs used as refrigerants

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

• Marginal note:Automobiles — 2021 and subsequent model years

  (2) Beginning with the 2021 model year, it is prohibited for any person to manufacture 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, unless it is intended to be exported.