The draft Regulation (in French only) modifying the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (Environment Quality Act - chapter Q-2, ss. 2.2, 46.2, 115.27, 115.34 and 124.1), which is scheduled to come into effect on January 1, 2020, provides changes that facilitate the identification of the person who is an emitter, is distributing fuels, and is responsible for reporting their emissions.
This proposed regulation also augments the information that must accompany this declaration, modifies the methods for calculating CO2 related to the distribution of fuels, and states the rule that should apply to the accounting of these fuels when the method of storage used prevents the known origin.
Main modifications proposed:
The government is adding fuels to the list and targets fuel distributed in 2020 (reporting on June 1, 2021).
Butane is added to the list of fuels targeted for reporting (QC.31.1). However, according to our discussions with the government, we understand that butane in propane does not have to be reported as butane as long as the product sold is propane.
The Canadian Propane Association submitted comments as part of the consultations. You can access them here (in French only).
We indicated that we agree with the amendments made by the proposed regulation in order to facilitate the identification of the person who is an emitter distributing fuels and responsible for reporting their emissions - anything that helps to ensure that the person liable is clearly identified, which satisfies all parties.
However, we raised concerns about verifications of greenhouse gas emissions reports that must be made by accredited auditors. In our experience, some auditors are not sufficiently equipped with respect to tax laws to determine the true legal ownership of the product or who is the designated importer - for example, when the transfer of ownership of a product occurs, when a sale takes place, etc.
Finally, we indicated that although it is commendable to remove the obligation to transmit the certificates to the Minister, the question of the administrative red tape and the problems/penalties raised when the certificates are missing, is neither settled nor even discussed. The mechanics of the certificates do not work and contribute to poor identification of the person who is the emitter.
We recommended that a committee is set up to discuss this. For more information on the proposed regulations, view the government's presentation here (English follows the French).
For any questions, please contact Nathalie St-Pierre.