Vehicle GHG Credit Fix and Chemical Notices

Summary#

This Canada Gazette notice from the Department of the Environment includes three main items. It publishes an Interim Order Modifying the Operation of the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations to fix a credit-calculation error for 2017 to 2021 model years, issues Ministerial Condition No. 20535 allowing limited manufacture or import of hexanoic acid, 3,5,5‑trimethyl‑, 2‑ethylhexyl ester (CAS 70969‑70‑9) under strict limits, and posts the draft screening assessment for coumarin 1 (CAS 91‑44‑1) with a 60‑day public comment period.

What it does#

• Interim order on vehicle GHG rules

  • The Interim Order Modifying the Operation of the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations changes how credits and deficits are calculated so companies can get the number of credits intended for advanced technology vehicles (battery electric, plug‑in hybrid, fuel cell) and some natural gas vehicles for model years 2017 to 2021.
  • It lets companies recalculate past fleets (model years 2017–2019) or apply the corrected calculation for 2020 and 2021 fleets.
  • Plug‑in hybrid vehicles qualify only if their all‑electric range is at least 16.4 km (10.2 miles).
  • Credits obtained under the order count the same as credits under section 20 of the regulations.

• Ministerial condition for a specific chemical

  • Ministerial Condition No. 20535 permits the notifier to manufacture or import hexanoic acid, 3,5,5‑trimethyl‑, 2‑ethylhexyl ester (CAS 70969‑70‑9) but only under conditions that limit its use in cosmetics and control transfers.
  • Allowed cosmetic uses and maximum concentrations by weight are listed: eye shadow 12.8%, blush 8.2%, facial cleansing oil 6.8%, hair removal wax 4%, lipstick 3.4%, liquid concealer 0.34%.
  • The notifier must keep records (use, quantities, transfers, agreements) for 5 years. The conditions came into force on October 19, 2020.

• Draft screening assessment for coumarin 1

  • The departments published the draft screening assessment for 2H‑1‑benzopyran‑2‑one, 7‑(diethylamino)‑4‑methyl‑ (coumarin 1) (CAS 91‑44‑1).
  • The assessment finds low ecological risk but identifies potential concern for human health (mainly from certain occasional‑use cosmetics) and proposes that the substance meets the criteria of paragraph 64(c) of the Canadian Environmental Protection Act, 1999.
  • The ministers propose to add the substance to Schedule 1 (the list of toxic substances) and released a risk‑management scope. There is a 60‑day window for public comment.

Who's affected#

• Vehicle manufacturers and importers in Canada. The change affects how they count greenhouse‑gas compliance credits for fleets of 2017 to 2021 model year passenger cars and light trucks.
• Companies that manufacture, import or use the specified chemical (CAS 70969‑70‑9) in cosmetics. This includes formulators, importers and retailers who may need to comply with the concentration limits and record rules.
• Manufacturers, importers, sellers and users of products that contain coumarin 1 (CAS 91‑44‑1), especially makers of temporary hair dyes, nail polishes and some makeup products.
• Members of the public and stakeholders who may wish to comment on the coumarin 1 assessment during the 60‑day comment period.

Why it matters#

• For automakers: the interim order fixes a calculation that could otherwise undercount credits for electric and other advanced vehicles. That affects compliance costs and the incentives for selling low‑emission vehicles in Canada.
• For cosmetics industry: the ministerial condition allows limited, immediate use of a specific chemical but only at defined concentration levels and with recordkeeping. Companies may need to reformulate or document products to meet the limits.
• For consumers and public health: the coumarin 1 draft assessment signals possible future restrictions because of concerns about human health from certain cosmetic uses. If added to Schedule 1, the substance could face regulatory controls that change product availability or labeling.
• If you make, import, sell, or use any of the products or chemicals mentioned, or if you represent affected industries or consumer groups, the notice may require action. The coumarin 1 finding also gives the public a formal chance to comment during the 60‑day period.