Canada Gazette, Part I, Volume 149, Number 40: GOVERNMENT NOTICES

October 3, 2015

BANK OF CANADA

BANK OF CANADA ACT

Amendment to policy for buying and selling securities

This policy amends and restates the Bank of Canada Policy for Buying and Selling Securities under subsection 18.1(1) of the Bank of Canada Act, published in the Canada Gazette, Part I, on June 27, 2009, and July 26, 2008.

The Governor of the Bank of Canada establishes this policy pursuant to subsection 18.1(1) of the Bank of Canada Act, for buying and selling securities and financial instruments for the purposes set out in subparagraph 18(g)(i) of the Act. This policy sets out the range of securities and instruments that the Bank will use for certain types of transactions but it in no way obligates the Bank to accept the full range of securities and instruments for any particular transaction. Nor does this policy in any way restrict the securities and instruments in which the Bank may transact pursuant to its statutory powers other than those powers set out in subparagraph 18(g)(i) of the Act, including, without limitation, subparagraph 18(g)(ii).

Purposes and types of financial transactions under subparagraph 18(g)(i)

Pursuant to subparagraph 18(g)(i) of the Act, the Bank may buy and sell securities and instruments, other than instruments that evidence an ownership interest in an entity, for purposes of conducting monetary policy or promoting the stability of the Canadian financial system. In conducting monetary policy and promoting the stability of the Canadian financial system, the Bank buys and sells securities and instruments through purchase and resale transactions (buybacks). The Bank determines, at its sole discretion, when it will engage in buybacks and the securities and instruments which it will use, within the range of securities and instruments set out below.

Transactions in the normal course

In the normal course, the Bank engages in buyback transactions with primary dealers for purposes of implementing monetary policy, when it feels that market conditions warrant such transactions. In such transactions, the Bank will normally buy and sell bonds and treasury bills issued by the Government of Canada. Buyback transactions for purposes of implementing monetary policy normally have a duration of one business day (being a day on which there is a clearing of payment items pursuant to the Canadian Payments Act).

The Bank may also conduct buybacks in the normal course with primary dealers for longer terms, for purposes of managing the assets on the Bank's balance sheet and promoting the stability of the Canadian financial system. In such transactions, the Bank will normally buy and sell securities issued or guaranteed by the Government of Canada and Canadian provincial governments.

Exceptional transactions

The Bank may also engage in buyback transactions for purposes of addressing a situation of financial system stress that could have material macroeconomic consequences or for purposes of implementing monetary policy where the Bank considers such transactions appropriate to reinforce a conditional commitment to maintain the overnight rate at a low level. In buyback transactions for this purpose, the Bank may expand the range of securities and instruments that it will buy and sell beyond securities issued and guaranteed by the Government of Canada and the governments of Canadian provinces to also include any or all of the following securities and instruments:

• securities issued or guaranteed by the U.S. Government;
• securities issued or guaranteed by member states of the Organization for Economic Cooperation and Development (OECD), including Canadian dollar securities issued or guaranteed by member states of the OECD;
• Canadian dollar corporate, municipal and covered bonds issued by Canadian or foreign entities;
• Canadian dollar bankers acceptances with a term to maturity not exceeding 365 days, issued by Canadian or foreign entities;
• Canadian dollar promissory notes with a term to maturity not exceeding 365 days, issued by Canadian or foreign entities;
• Canadian dollar commercial paper, including asset-backed commercial paper, with a term to maturity not exceeding 365 days, issued by Canadian or foreign entities; and
• Canadian dollar term asset-backed securities,
  

provided that the securities or instruments meet such applicable conditions and criteria as may be published by the Bank from time to time, including, without limitation, credit rating requirements. (Such buyback transactions conducted for this purpose and using an expanded range of securities or instruments to be referred to as “exceptional transactions”.)

Exceptional transactions will be conducted with such counterparties and will be for such duration as the Bank chooses, subject to a maximum term for any transaction of 380 days. The Bank will publicly announce in advance when it intends to make exceptional transactions available, the range of counterparties that will be eligible to engage in the transactions, the securities or instruments that may be used in the transactions, the term of the transactions and any other terms that it considers appropriate.

Resort by the Bank to exceptional transactions is distinct from, and does not take the place of, the Bank's power under subparagraph 18(g)(ii) to buy and sell any securities and other financial instruments where the Governor is of the opinion that there is severe and unusual stress on a financial market or the financial system. (see footnote 1)

Terms and arrangements for counterparties

In order to be eligible to be a counterparty in normal course buyback transactions or exceptional transactions with the Bank, an entity must first make appropriate arrangements with the Bank, including, without limitation, operational arrangements and entering into the Bank's legal agreements.

In addition to this policy, all transactions for the purchase and sale of securities are subject to such policies, rules and terms pertaining to that transaction as the Bank may publish from time to time.

Coming into force of the policy

This amended and restated policy comes into force, as provided in subsection 18.1(2) of the Bank of Canada Act, seven days after the date on which the Bank publishes it in the Canada Gazette, Part I. Upon coming into force, this amended and restated policy replaces the Bank of Canada Policy for Buying and Selling Securities under subsection 18.1(1) of the Bank of Canada Act, published in the Canada Gazette, Part I, on June 27, 2009, and July 26, 2008.

September 18, 2015

STEPHEN S. POLOZ
Governor

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DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Significant New Activity Notice No. 18010

Significant New Activity Notice

(Section 85 of the Canadian Environmental Protection Act, 1999)

Whereas the Minister of the Environment and the Minister of Health have assessed information in respect of the substance silicic acid, sodium salt, hydrolysis products with 1-[(substitutedmethoxy)alkyl]silanetriol, under section 83 of the Canadian Environmental Protection Act, 1999;

Whereas the substance is not specified on the Domestic Substances List;

And whereas the ministers suspect that a significant new activity in relation to the substance may result in the substance becoming toxic within the meaning of section 64 of the Canadian Environmental Protection Act, 1999,

Therefore, the Minister of the Environment indicates, pursuant to section 85 of the Canadian Environmental Protection Act, 1999, that subsection 81(4) of that act applies with respect to the substance in accordance with the Annex.

LEONA AGLUKKAQ
Minister of the Environment

ANNEX

Information Requirements

(Section 85 of the Canadian Environmental Protection Act, 1999)

1. In relation to the substance silicic acid, sodium salt, hydrolysis products with 1-[(substitutedmethoxy)alkyl]silanetriol, a significant new activity is any use of the substance in quantities greater than 1 000 kg per calendar year, other than its use as
   • (a) a component of an industrial coating where, once cured, the substance becomes part of a solid matrix;
   • (b) a component of a waterborne floor coating that is intended to be applied by consumers by means other than by spray applications and in which, once the coating is cured, the substance becomes part of a solid matrix; and
   • (c) a component of pigment or ink formulations contained in cartridges or refill bottles.
2. The following information must be provided to the Minister of the Environment at least 90 days before the commencement of the proposed significant new activity:
   • (a) a description of the significant new activity;
   • (b) the anticipated annual quantity of the substance to be used in relation to the significant new activity;
   • (c) the analytical information to determine the primary and secondary particle size of the substance;
   • (d) the information describing the agglomeration and aggregation state, shape, surface area and surface charge of the substance;
   • (e) a brief description of the manufacturing process that details precursors of the substance, reaction stoichiometry, nature (batch or continuous) and scale of the process;
   • (f) the following identification information in respect of the substance:
     • (i) its molecular formula,
     • (ii) its structural formula,
     • (iii) its gram molecular weight or number average molecular weight,
     • (iv) the degree of purity in its technical grade composition (if applicable),
     • (v) known impurities present and their concentration by weight, and
     • (vi) any additives, stabilizers and solvents present when the substance is tested and their concentrations by weight percentage;
   • (g) the following exposure information in respect of the substance:
     • (i) a description of the expected modes for its transportation and storage,
     • (ii) a description of the size and type of container used for its transportation and storage,
     • (iii) an identification of the components of the environment into which it is anticipated to be released,
     • (iv) the quantity anticipated to be released into municipal wastewater systems,
     • (v) a description of the methods recommended for its destruction or disposal,
     • (vi) whether it is anticipated to be used in products intended for use by or for children,
     • (vii) the anticipated degree of direct human exposure to the substance, including concentration, duration, frequency and circumstances of exposure and factors that may limit direct human exposure,
     • (viii) if known, the three sites in Canada where the greatest quantity of the substance is anticipated to be used or processed in the course of the significant new activity and the estimated quantity by site,
     • (ix) historical and other likely uses, and
     • (x) any factors that may limit environmental exposure;
   • (h) the following mammalian toxicity information:
     • (i) the data and report from an in vivo mammalian test for chromosomal aberrations or gene mutations in respect of the substance,
     • (ii) for a significant new activity involving the use of the substance in consumer spray applications:
       • (A) the data and report from a test on the subchronic inhalation toxicity of the substance, including a 90-day satellite (reversibility) study, conducted according to the methodology described in the Organisation for Environmental Co-operation and Development (OECD) test guideline No. 413 entitled Subchronic Inhalation Toxicity: 90-Day Study, and
       • (B) the data and report from a test on bronchoalveolar lavage conducted immediately following the last exposure and recovery in the subchronic inhalation toxicity test required under clause (A), conducted according to the methodology described in the OECD Series on Testing and Assessment, No. 125, entitled Guidance Document on Histopathology for Inhalation Toxicity Studies, Supporting TG 412 (Subacute Inhalation Toxicity: 28-Day Study) and TG 413 (Subchronic Inhalation Toxicity: 90-Day Study),
     • (iii) the test data and a test report on the presence of epoxide groups in the molecular structure of the substance, and
     • (iv) based on the results of the test described in subparagraph (iii):
       • (A) if unreacted epoxide groups remain in the substance, the data and report from a repeated dose/reproductive screen study with respect to the substance conducted according to the methodology described in the OECD test guideline No. 422 entitled Combined Repeated Dose Toxicity Study with the Reproduction/Developmental Toxicity Screening Test in respect of the substance, and
       • (B) for a significant new activity involving any use of the substance that may lead to oral exposure, if no epoxide groups remain in the substance, the data and report from a repeated dose 28-day oral study in respect of the substance, conducted according to the methodology described in the OECD test guideline No. 407 entitled Repeated Dose 28-Day Oral Toxicity Study in Rodents;
   • (i) if the significant new activity involves the use of the substance in quantities greater than 10 000 kg per calendar year, the test data and a test report conducted according to the methodology described in the OECD test guideline No. 225 entitled Sediment-Water Lumbriculus Toxicity Test Using Spiked Sediment;
   • (j) the analytical information to determine the primary and secondary particle size of the test substance as administered in the tests required in paragraphs (h) to (i);
   • (k) the information describing the agglomeration and aggregation state, shape, surface area and surface charge of the test substance as administered in the tests required in paragraphs (h) to (i); and
   • (l) all other information or test data in respect of the substance that are in the possession of the person proposing the significant new activity, or to which they have access, and that are relevant to determining whether the substance is toxic or capable of becoming toxic.
3. If the significant new activity involves the use of the substance where the substance is associated with a substrate, all the information required under item 2 must be provided in relation to the substance associated with the substrate.
4. The test data and the test reports requested in this notice must be developed in conformity with the practices described in the OECD Principles of Good Laboratory Practice set out in Annex 2 of the Decision of the Council Concerning the Mutual Acceptance of Data in the Assessment of Chemicals, adopted on May 12, 1981, where the test guidelines, the guidance documents and the Principles of Good Laboratory Practice are current at the time the test data are developed. Furthermore, all requested tests regarding the substance must be conducted in accordance with the principles described in the following guidance documents:
   • (a) Guidance on Sample Preparation and Dosimetry for the Safety Testing of Manufactured Nanomaterials (Publication No. 36);
   • (b) Report of the OECD Expert Meeting on the Physical Chemical Properties of Manufactured Nanomaterials and Test Guidelines (Publication No. 41); and 
   • (c) Ecotoxicology and Environmental Fate of Manufactured Nanomaterials: Test Guidelines (Publication No. 40).
     
5. The above-mentioned information will be assessed within 90 days after the day on which it is received by the Minister.

EXPLANATORY NOTE

(This explanatory note is not part of the Significant New Activity Notice.)

Description

This Significant New Activity Notice is a legal instrument issued by the Minister of the Environment to apply the Significant New Activity (SNAc) provisions of the Canadian Environmental Protection Act, 1999 (CEPA 1999) to silicic acid, sodium salt, hydrolysis products with 1-[(substitutedmethoxy)alkyl]silanetriol, pursuant to section 85 of that Act. The Notice is now in force. It is therefore mandatory to meet all the requirements of the Notice should a person wish to use the substance for a significant new activity as defined in the Notice. (see footnote 2)

A Significant New Activity Notice does not constitute an endorsement from Environment Canada or the Government of Canada of the substance to which it relates, or an exemption from any other laws or regulations that are in force in Canada and that may apply to this substance or activities involving the substance.

Applicability of the Significant New Activity Notice

The Notice requires that any person engaging in a significant new activity in relation to silicic acid, sodium salt, hydrolysis products with 1-[(substitutedmethoxy)alkyl]silanetriol submit a Significant New Activity Notification (SNAN) containing all of the information prescribed in the Notice at least 90 days prior to use of the substance for the significant new activity.

The Notice applies to any person who intends to use silicic acid, sodium salt, hydrolysis products with 1-[(substitutedmethoxy)alkyl]silanetriol for a significant new activity.

Examples of potential activities with respect to silicic acid, sodium salt, hydrolysis products with 1-[(substitutedmethoxy)alkyl]silanetriol requiring a SNAN submission include but are not limited to its use in plastic films for food wrapping, its use in beverage, its use for water treatment, pulp and paper applications or detergents and cleaners production. These activities have not been identified as presently occurring in Canada.

Activities not subject to the Notice

Potential uses of silicic acid, sodium salt, hydrolysis products with 1-[(substitutedmethoxy)alkyl]silanetriol that are not of concern include its use in a waterborne wood coating that is intended to be applied by consumers other than by dispersed spray applications; its use in industrial coating where, once cured, it becomes a constituent of the solid matrix; and its uses as a component of pigment or ink formations contained in cartridges or refill bottles.

This Notice does not apply to uses of the substance that are regulated under any Act of Parliament listed in Schedule 2 of CEPA 1999, including but not limited to the Pest Control Products Act, the Fertilizers Act and the Feeds Act. It also does not apply to transient chemical reaction intermediates, impurities, contaminants, partially unreacted intermediates, and in some circumstances to items such as, but not limited to, wastes, mixtures or manufactured items. However, it should be noted that individual components of a mixture may be notifiable under the SNAc provisions. See subsection 81(6) and section 3 of CEPA 1999, and section 3.2 of the Guidelines for the Notification and Testing of New Substances: Chemicals and Polymers for additional details. (see footnote 3)

Information to be submitted

The Notice sets out the information that must be provided to the Minister 90 days before the day on which the substance silicic acid, sodium salt, hydrolysis products with 1-[(substitutedmethoxy)alkyl]silanetriol is used for a significant new activity. Environment Canada and Health Canada will use the information submitted in the SNAN to conduct human health and environmental assessments within 90 days after the complete information is received.

The assessment of the substance identified potential concerns related to ecotoxicity (fish and earthworms) and human toxicity (oral repeated dose, inhalation toxicity, reproduction, and genetic toxicity). The Notice was issued to obtain information to ensure that the substance will undergo further assessment.

Additional guidance on preparing a SNAN can be found in section 1.3 of the Guidelines for the Notification and Testing of New Substances: Chemicals and Polymers. (see footnote 4)

Compliance

When assessing whether or not a particular SNAc applies, (see footnote 5) a person is expected to make use of information in their possession or to which they ought to have access. The phrase “to which they ought to have access” means information in any of the company's offices worldwide or other locations where the notifier can reasonably have access to the information. For example, manufacturers are expected to have access to their formulations, while importers or users of a substance, mixture, or product are expected to have access to import records, usage information and the relevant Safety Data Sheet (SDS).

Although an SDS is an important source of information on the composition of a purchased product, it should be noted that the goal of the SDS is to protect the health of workers in the workplace from specific hazards of chemical products. Therefore, an SDS may not list all product ingredients that may be subject to SNAc provisions. Any person requiring more detailed information on product composition is encouraged to contact his or her supplier.

If any information becomes available that reasonably supports the conclusion that this substance is toxic or capable of becoming toxic, under section 70 of CEPA 1999, it must be provided to the Minister without delay.

A company can submit a SNAN on behalf of its clients. For example, in cases where a person receives possession and control of a substance from another person, that person may not be required to submit a SNAN, if the new activities were covered by the original SNAN. The Substances Management Advisory Note, Clarification in relation to the submission of Significant New Activity Notifications in application of the Canadian Environmental Protection Act, 1999, provides more detail on this subject. (see footnote 6)

Under section 86 of CEPA 1999, any person who transfers the physical possession or control of a substance subject to a SNAc shall notify all persons to whom the physical possession or control is transferred of the obligation to comply with the Notice including the obligation to notify the Minister of the Environment of any significant new activity and to provide all the required information outlined above.

A pre-notification consultation (PNC) is available for notifiers who wish to consult with the program during the planning or preparation of their SNAN to discuss any questions or concerns they have about the prescribed information and test plans.

Where persons have questions concerning their obligations to comply with this Notice or believe they may be out of compliance, or would like to request a PNC, they are encouraged to contact the Substances Management Information Line. (see footnote 7) The program will work with the persons to help them comply with the Notice. In instances of non-compliance, consideration is given to factors such as the nature of the alleged violation, potential harm, intent and history of compliance.

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