Regulations Amending the Multi-Sector Air Pollutants Regulations (Part 1 — Biomass): SOR/2020-205

Canada Gazette, Part II, Volume 154, Number 20

Registration
SOR/2020-205 September 21, 2020

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

P.C. 2020-653 September 20, 2020

Whereas, pursuant to subsection 332(1) ^{footnote a} of the Canadian Environmental Protection Act, 1999 ^{footnote b}, the Minister of the Environment published in the Canada Gazette, Part 1, on June 8, 2019, a copy of the proposed Regulations Amending the Multi-Sector Air Pollutants Regulations (Part 1 — Biomass), substantially in the annexed form, under the title Multi-Sector Air Pollutants Regulations Amendment Regulations (Part 1 — Biomass), and persons were given an opportunity to file comments with respect to the proposed Regulations or to file a notice of objection requesting that a board of review be established and stating the reasons for the objection;

Whereas, pursuant to subsection 93(3) of that Act, the National Advisory Committee has been given an opportunity to provide its advice under section 6 ^{footnote c} of that Act;

And whereas, in the opinion of the Governor in Council, pursuant to subsection 93(4) of that Act, the proposed Regulations do not regulate an aspect of a substance that is regulated by or under any other Act of Parliament in a manner that provides, in the opinion of the Governor in Council, sufficient protection to the environment and human health;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of the Environment and the Minister of Health, pursuant to subsections 93(1) and 330(3.2) ^{footnote d} of the Canadian Environmental Protection Act, 1999 ^{footnote b}, makes the annexed Regulations Amending the Multi-Sector Air Pollutants Regulations (Part 1 — Biomass).

Regulations Amending the Multi-Sector Air Pollutants Regulations (Part 1 — Biomass)

Amendments

1 (1) The definitions biomass and biomass boiler in section 4 of the Multi-Sector Air Pollutants Regulations ^{footnote 1} are replaced by the following:

• biomass means a liquid or solid fuel that consists only of non-fossilized organic material that originates from plants or animals but does not come from a geological formation, including
  • (a) liquid and solid products or waste produced from that material;
  • (b) liquids and solids recovered from that material, including from organic waste; and
  • (c) sludge from wastewater treatment. (biomasse)
• biomass boiler means
  • (a) a boiler that can reach at least 50% of its rated capacity when it is in a steady state and at least 90% of the input energy in its combustion chamber results from the introduction of biomass; and
  • (b) in the case of a boiler that is commissioned or recommissioned on or after amendment day, a boiler that is linked to equipment that is capable of introducing a sufficient quantity of biomass as the input energy in its combustion chamber to allow it to meet the criteria set out in paragraph (a). (chaudière à biomasse)

(2) Section 4 of the Regulations is amended by adding the following in alphabetical order:

• amendment day means the day on which the Regulations Amending the Multi-Sector Air Pollutants Regulations (Part 1 — Biomass) come into force. (date de modification)
• biomass heater means
  • (a) a heater that can reach at least 50% of its rated capacity when it is in a steady state and at least 90% of the input energy in its combustion chamber results from the introduction of biomass; and
  • (b) in the case of a heater that is commissioned or recommissioned on or after amendment day, a heater that is linked to equipment that is capable of introducing a sufficient quantity of biomass as the input energy in its combustion chamber to allow it to meet the criteria set out in paragraph (a). (four industriel à biomasse)

2 (1) Paragraph 5(3)(l) of the Regulations is replaced by the following:

• (l) a biomass boiler or biomass heater;

(2) Section 5 of the Regulations is amended by adding the following after subsection (3):

Percentage of input energy

(4) For the purpose of paragraph (3)(l), the percentage of the input energy in a biomass boiler’s or biomass heater’s combustion chamber resulting from the introduction of biomass is to be determined, for a given hour while the boiler or heater is in a steady state, by the formula

E_bio/(E_bio + E_gnc + E_cfg + E_o + E_s) × 100

where

E_bio is the input energy resulting from the introduction of biomass for the given hour, determined by the formula

Q_bio × HHV_bio

where

• Q_bio is the quantity of the biomass combusted during the given hour, as measured by a flow meter on the input, expressed in kl for liquid biomass and in t for solid biomass, and
• HHV_bio is the higher heating value of the biomass combusted during the given hour, expressed in GJ/kl for liquid biomass and in GJ/t for solid biomass, being
  • (a) the higher heating value determined in accordance with any of the required HHV methods set out in section 22 that apply, or
  • (b) the default higher heating value set out in column 2 of the applicable table to Schedule 3 for the type of fuel set out in column 1;

E_cng is the input energy resulting from the introduction of commercial grade natural gas for the given hour, determined by the formula

Q_cng × HHV_cng

where

• Q_cng is the quantity of the commercial grade natural gas combusted during the given hour, as measured by a flow meter on the input, expressed in standard m³, and
• HHV_cng is the higher heating value of the commercial grade natural gas combusted during the given hour, expressed in GJ/standard m³, being
  • (a) the higher heating value determined in accordance with any of the required HHV methods set out in section 22 that apply, or
  • (b) 0.03793;

E_gff is the input energy resulting from the introduction of gaseous fossil fuel, other than commercial grade natural gas, for the given hour, determined by the formula

Q_gff × HHV_gff

where

• Q_gff is the quantity of the gaseous fossil fuel, other than commercial grade natural gas, combusted during the given hour, as measured by a flow meter on the input, expressed in standard m³, and
• HHV_gff is the higher heating value of the gaseous fossil fuel, other than commercial grade natural gas, combusted during the given hour, expressed in GJ/standard m³, determined in accordance with any of the required HHV methods set out in section 22 that apply;

E_o is the input energy resulting from the introduction of a fuel other than biomass or gaseous fossil fuel during the given hour, determined by the formula

∑_i(Q_i × HHV_i)

where

• Q_i is the quantity of the ith fuel, other than gaseous fossil fuel, combusted during the given hour, as measured by a flow meter on the input, expressed in standard m³ for gaseous fuels, in kl for liquid fuels and in t for solid fuels,
• HHV_i is the higher heating value of the ith fuel, other than gaseous fossil fuel, combusted during the given hour, expressed in GJ/standard m³ for gaseous fuels, in GJ/kl for liquid fuels and in GJ/t for solid fuels, being
  • (a) the higher heating value determined in accordance with any of the required HHV methods set out in section 22 that apply, or
  • (b) the default higher heating value set out in column 2 of the applicable table to Schedule 3 for the type of fuel set out in column 1, and
• i is the ith fuel, other than biomass or gaseous fossil fuel, combusted, where i goes from 1 to n and where n is the number of those fuels combusted; and

E_s is the input energy, expressed in GJ, that originates from a source other than the combustion of fuel in the boiler’s or heater’s combustion chamber during the given hour, determined in accordance with generally accepted engineering principles.

Request for information

(5) A responsible person for a biomass boiler or biomass heater must, on the Minister’s request, provide to the Minister any of the following:

• (a) information and supporting documents obtained from the manufacturer of the boiler or heater that demonstrates that it is a biomass boiler or biomass heater, as the case may be; or
• (b) the results of a field test that
  • (i) was conducted for a period of at least one hour, by a person who is independent of all responsible persons for the boiler or heater and demonstrates that the boiler or heater is a biomass boiler or biomass heater, as the case may be, and that the percentage referred to in subsection (4) has been determined in accordance with that subsection, and
  • (ii) is supported by documents in the possession of a responsible person for the boiler or heater that establish that the independent person referred to in subparagraph (i)
  • (A) is an engineer who is, under the laws of the province in which the biomass boiler or biomass heater is located, authorized to practise engineering in relation to combustion equipment, or
  • (B) has demonstrated knowledge of, and at least five years’ experience as the technical lead of projects that involved, the design of combustion equipment.

3 Subsection 43(1) of the Regulations is amended by adding the following after paragraph (d):

• (d.1) for a boiler or heater in respect of which a report was provided on the basis that it was not a type of boiler or heater referred to in subsection 5(3) and that, on or after amendment day, is of a type referred to in subsection 5(3), an indication as to which one of paragraphs 5(3)(a) to (o) applies to the boiler or heater, along with an indication of the facility where it is located, including the civic address of the facility or, if there is no civic address, the facility’s latitude and longitude and the boiler’s or heater’s identifier within the facility, if any, within the period that ends six months after amendment day or the day on which the boiler or heater undergoes a change such that it is of a type referred to in subsection 5(3), whichever is later;

Coming into Force

4 These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Boilers combusting predominantly solid or liquid biomass are intentionally excluded from the Multi-Sector Air Pollutants Regulations (MSAPR). However, the definitions of biomass and biomass boiler prior to the Regulations Amending the Multi-Sector Air Pollutants Regulations (Part 1 — Biomass) failed to exclude these boilers while co-firing with some natural gas. Since boilers combusting predominantly solid and liquid biomass were not intended to be regulated under the MSAPR, amendments have been made to clarify the exclusion.

Background

The MSAPR came into force in June 2016. The MSAPR work to protect the environment and the health of Canadians by establishing nationally consistent air pollutant emission standards for key industrial sources and equipment. By establishing emission intensity limits, the MSAPR implement base-level industrial emission requirements (BLIERs) agreed to through the Air Quality Management System (AQMS) for gaseous fossil fuel–fired industrial boilers and heaters, stationary spark-ignition engines, and cement manufacturing facilities.

The MSAPR target natural gas boilers and heaters, as they are the largest segment of the boiler and heater population in Canada. There are some boilers, largely at pulp and paper mills, that co-fire biomass with natural gas in order to use the waste material available to these facilities. It is not feasible for these biomass boilers to meet nitrogen oxides (NO_x) emission standards designed for natural gas boilers and BLIERs had not been developed for biomass, which is why they were excluded from the MSAPR.

The definition of biomass boiler prior to the Regulations Amending the Multi-Sector Air Pollutants Regulations (Part 1 — Biomass) was “a boiler that can reach its rated capacity by combusting only biomass.” Following the publication of the MSAPR, it became evident that there are some biomass boilers that burn predominantly biomass and co-fire with some natural gas in order to generate enough heat to operate properly. These boilers cannot reach their rated capacity without using natural gas. Without modifying the definition, these units would be required to meet the MSAPR NO_x emission standards, which was not the intent of the MSAPR as they burn predominantly biomass and cannot meet emission standards designed for the combustion of natural gas. New units could potentially face the same issue in absence of the amendments to the MSAPR.

Objective

The Regulations Amending the Multi-Sector Air Pollutants Regulations (Part 1 — Biomass) [the amendments] are intended to ensure that boilers and heaters that combust predominantly solid or liquid biomass are excluded from the MSAPR.

Description

The amendments to the MSAPR

• modify the definitions of biomass and biomass boiler such that a boiler is excluded if it can reach at least 50% of its rated capacity when at least 90% of the input energy in the combustion chamber results from the introduction of liquid or solid biomass;
• provide the same exclusion for biomass heaters;
• specify that new or recommissioned biomass boilers and heaters need to be connected to a biomass supply system capable of supplying a sufficient quantity of biomass to meet the conditions for the exclusions;
• require that, upon request, the owner or operator must provide the Minister with specified information to demonstrate that the boiler or heater is a biomass boiler or biomass heater that meets the conditions for the exclusion; and
• require a change report be provided by the owner or operator where a boiler or heater to which the MSAPR apply, and for which a report has been provided to the Minister, becomes excluded.

Regulatory development

Consultation

The Department of the Environment (the Department) held consultations with stakeholders, including owners, operators and manufacturers of boilers and heaters, industry associations, non-governmental organizations, as well as provincial and territorial representatives, in the process of developing the amendments. In November 2018, the Department invited stakeholders to participate on stakeholder engagement webinars to discuss the amendments. The feedback received was favourable. There was general agreement that the amendments provided more certainty as to the types of excluded equipment.

On June 8, 2019, the Multi-Sector Air Pollutants Regulations Amendment Regulations (Part 1 — Biomass) were published in the Canada Gazette, Part I, for a 60-day public comment period. During the comment period, two comments were received. An industry association requested that the amendments be published as soon as possible and another industry stakeholder expressed support for the amendments. These comments align with the feedback received following the stakeholder engagement webinars in November 2018.

Modern treaty obligations and Indigenous engagement and consultation

Pursuant to the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, the Department conducted an assessment of modern treaty implications on the amendments. The assessment did not identify any modern treaty implications or obligations. Several National Indigenous organizations were invited to participate in the stakeholder engagement webinars held in November 2018 and they were informed of the 60-day public comment period following the publication of the amendments in the Canada Gazette, Part I, on June 8, 2019. No concerns were raised.

Instrument choice

A regulatory amendment is the only instrument available to modify existing regulations.

Regulatory analysis

Impact on businesses, the Government of Canada or Canadian consumers

Businesses: The amendments are not expected to result in cost impacts for businesses, as they ensure that biomass boilers and heaters are not subject to the MSAPR. The amendments better align with the original intent of the MSAPR by indicating that biomass boilers and heaters that combust predominantly biomass are excluded.

Government and Canadian consumers: The amendments have no impact on the Government or Canadian consumers.

Small business lens

The small business lens does not apply, as there are no identified small businesses that could be affected by the amendments.

One-for-one rule

The one-for-one rule applies since there is a change in administrative burden on businesses (both an increase and a decrease), resulting from offsetting added and removed reporting requirements. Following the Treasury Board Secretariat’s standard costing model, and using a 7% discount rate, the annualized net decrease in administrative costs for affected businesses (it is assumed that only one business will be impacted) is approximately $5 (in 2012 Canadian dollars). This represents an “out” under the one-for-one rule.

Regulatory cooperation and alignment

The amendments are not expected to have any impact on regulatory cooperation and alignment.

Strategic environmental assessment

The strategic environmental assessment (SEA) that was conducted for the Canadian ambient air quality standards and implementation of industrial emission requirements, including those for the MSAPR, concluded that the MSAPR will result in important positive environmental effects including direct reductions in emissions of key air pollutants such as nitrogen oxides, sulphur dioxide, and volatile organic compounds, from major industrial sources. The amendments, which confirm the original MSAPR policy intent to exclude biomass boilers, and which add biomass heaters, do not meaningfully change the conclusions of the SEA.

Gender-based analysis plus and other distributional issues

No groups (based on factors such as gender, sex, age, language, education, geography, culture, ethnicity, income, ability, sexual orientation, and gender identity) are expected to be affected disproportionately by the amendments. No concerns have been expressed by stakeholders or the public regarding the possible consequences of the amendments.

Implementation, compliance and enforcement, and service standards

Compliance promotion and enforcement activities will continue for the MSAPR regulatees. The amendments come into force upon registration.

Contacts

Jennifer Kerr
Director
Air Emissions Priorities Division
Environment and Climate Change Canada
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: ec.airpur-cleanair.ec@canada.ca

Matthew Watkinson
Director
Regulatory Analysis and Valuation Division
Environment and Climate Change Canada
200 Sacré-Cœur Boulevard, 10th Floor
Gatineau, Quebec
K1A 0H3
Email: eccc.darv-ravd.eccc@canada.ca