ARCHIVED—Steam and Thermal Energy Trade Sector Review — Decisions

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Table of Contents

September 2010

This document contains Measurement Canada's senior management’s decisions regarding the recommendations establishing Measurement Canada’s level of intervention in the steam and thermal energy trade sector.

This paper should be read in conjunction with the document, Steam and Thermal Energy Trade Sector Review Recommendations Establishing Measurement Canada’s Level of Intervention in the Sector, dated May 2010, and Steam and Thermal Energy Sector Review Discussion Paper Establishing an Appropriate Level of Measurement Canada Involvement in the Sector, dated January 2010. Recommendations were the result of extensive consultation with sector stakeholders.

The objective of this document is to communicate the decisions of Measurement Canada’s senior management along with the associated explanations, considerations and clarifications.

1.0 Approvals

1.1 Measurement Canada should require type approvals for all devices in the steam and thermal energy sector with the exemption of devices in the steam sub-sector at the industrial and the commercial/institutional levels of trade.

I.2 Devices used in the steam sub-sector at the industrial and the commercial/ institutional level of trade should be exempt from approval.

I.3 Measurement Canada should harmonize approval requirements for thermal energy devices with international standards such as the International Organization of Legal Metrology (OIML) recommendations.

1.4 Approval testing should be conducted by organizations that meet a formal Measurement Canada alternative service delivery program, with the final approvals issued by Measurement Canada.

1.5 Measurement Canada should implement a formal recognition program for other countries' type approval processes of trade devices in the thermal energy sub-sector, with final device approval issued by Measurement Canada.

1.6 Measurement Canada should expand mutual acceptance agreements with other countries for approval testing.

Measurement Canada decision:

Recommendation 1.1 and 1.2 accepted with the condition that steam meters be exempt at all levels of trade since there is no evidence that there is any steam measurement taking place at the residential level.

Recommendation 1.3 accepted with the understanding that this is not a deviation from Measurement Canada’s present plans to harmonize when it makes sense.

Recommendations 1.4, 1.5 and 1.6 accepted

Considerations, conditions and / or limitations:

Measurement Canada is prepared to accept other countries’ approval test results, but is still required to issue its own Canadian Notice of Approval based on the results.

An alternative service delivery program, which allows the use of test results from recognized ISO 17025 accredited private industry laboratories, for approval of trade measuring devices, has already been launched. This program will continue to expand and evolve.

2.0 Initial Inspections

2.1 Measurement Canada should require mandatory initial inspections of trade devices in the steam and thermal energy sector with the exemption of trade devices at the industrial and the commercial/institutional levels of trade in the steam sub-sector.

2.2 Devices used in the steam sub-sector at the industrial and the commercial/institutional level of trade should be exempt from initial inspection.

2.3 Sampling methods for initial inspections should be accepted as long as the sampling methodology is approved by Measurement Canada. Initial inspections should include current industry practices of factory inspections and if applicable, installation requirements.

2.4 Organizations other than Measurement Canada should be allowed to perform initial inspections, provided they are authorized under the Measurement Canada accreditation or registration program requirements.

2.5 A certificate is to be provided to device owners and a status indicator be affixed to devices, upon passing initial inspection, showing the date of inspection.

2.6 A joint working group made up of sector stakeholders and Measurement Canada staff should be assembled to select an appropriate standard, such as CA C-900 or EN1434, for initial inspection requirements.

2.7 Initial inspection requirements should be aligned, where possible, to International Organization for Legal Metrology requirements, within the next ten years.

Measurement Canada decision:

Recommendation 2.1 and 2.2 accepted with the condition that steam meters be exempt at all levels of trade since there is no evidence that there is any steam measurement taking place at the residential level.

Recommendations 2.1 to 2.6 the implementation of these recommendations may take 2 to 3 years as Measurement Canada is currently focusing its resources on legislative changes stemming from recommendations from 8 trade sectors reviews previously completed.

Recommendation 2.7 accepted with the understanding that this is not a deviation from Measurement Canada’s present plans to harmonize when it makes sense.

Considerations, conditions and / or limitations:

Initial inspections will be conducted by either accredited or registered organizations once inspection procedures are developed in conjunction with the stakeholder’s working group.

The Registration Program will be expanded to include the thermal energy sector when training procedures are available for authorised service providers.

3.0 Periodic (Subsequent) Inspections

3.1 Measurement Canada should require a mandatory periodic inspections every 8 years for devices used in the steam and thermal energy sector, with the exception of devices in the steam sub-sector at the industrial and the institutional and commercial level of trade.

3.2 Devices used in the steam sub-sector at the industrial and the commercial/and institutional level of trade should be exempt from periodic inspection.

3.3 A joint working group made up of sector stakeholders and Measurement Canada staff should be assembled to qualify mandatory periodic inspection requirements and where possible, align those requirements to International Organization for Legal Metrology requirements, within the next ten years.

3.4 Sampling methods as well as other periodic inspection methods should be considered, including the possibility of in service inspections, provided these methods are approved by Measurement Canada.

3.5 Periodic inspections should be performed by authorized service providers that meet the established requirements of either the Measurement Canada accreditation or registration program.

3.6 A voluntary program for periodic inspections should be implemented in the sector until legislative changes can be made.

3.7 Should periodic inspections become mandatory, an inspection expiry date is to be shown on the certificate and the status indicator.

Measurement Canada decision:

Recommendation 3.1 and 3.2 accepted with the condition that steam meters be exempt at all levels of trade since there is no evidence that there is any steam measurement taking place at the residential level.

Recommendations 3.1 a mandatory inspection period is accepted with the understanding that the specific period will be decided upon after further consideration and investigation by Measurement Canada.

Recommendation 3.2, 3.4, 3.5 and 3.7 accepted, however the implementation of these recommendations may take 2 to 3 years as Measurement Canada is focusing its resources on legislative changes stemming from recommendations from 8 trade sectors reviews previously completed.

Recommendation 3.3 accepted with the understanding that this is not a deviation from Measurement Canada’s present plans to harmonize when it makes sense.

Recommendation 3.6 accepted, however minimal Measurement Canada resources will be devoted to this program as Measurement Canada’s focus is on legislative review.

Considerations, conditions and / or limitations:

Periodic inspections will be conducted by either accredited or registered organizations once inspection procedures are developed in conjunction with the stakeholder’s working group.

The Registration Program will be expanded to include the steam and thermal energy sector when training procedures are available for authorised service providers.

The legislative review process, which will change the Weights and Measures Act to institute mandatory periodic certification, is already underway. Stakeholders will be kept informed as to the progress with this initiative and prior to mandatory periodic inspections being implemented.

The Voluntary Periodic Certification Program (VPCP) will be expanded to include the steam and thermal energy sector, and a communications plan will be developed to inform stakeholders of the implementation of the VPCP and explain the benefits of the program.

No regional resources will be devoted to promoting the VPCP, only resources to update the guide and communications materials and publish information on Measurement Canada’s internet site.

4.0 Physical Test Standards

4.1 All physical test standards used by Measurement Canada inspectors and authorized service providers for inspections, should be certified according to the schedule in the Weights and Measures Regulations.

4.2 Physical test standards should be certified either by Measurement Canada or by a recognized laboratory that meets Measurement Canada's alternative service delivery requirements.

Measurement Canada decision:

Recommendations 4.1 and 4.2 accepted.

Considerations, conditions and / or limitations:

Recommendation 4.1 applies only to test standards used by authorized service providers during inspections on Measurement Canada’s behalf or to test standards used by Measurement Canada inspectors.

The authority to certify test standards used for device inspections rests with Measurement Canada. Therefore, recommendation 4.2 is accepted with the limitation that test results from outside laboratories or organizations will be accepted, but Measurement Canada will remain responsible for certifying the test standards.

An alternative service delivery program, which allows the use of test results from recognized laboratories for certification of test weights, has already been launched. This program will continue to expand and evolve.

5.0 Net Quantity (Commodity) Inspections

5.1 Measurement Canada should not perform net quantity (commodity) inspections in this sector.

Measurement Canada decision:

Recommendation accepted.

Considerations, conditions and / or limitations:

The Net Quantity Inspection Program does not apply to this sector.

6.0 Complaints

6.1 Measurement Canada should provide complaint investigation and inspection services for this sector, but only after the two parties have had the opportunity to resolve the issue first.

6.2 Measurement Canada should publicize its role as an investigator of trade measurement complaints in this sector.

6.3 Measurement Canada's legislation should allow for the full disclosure of complaint inspection information to the two parties of the transaction.

6.4 Measurement Canada should use tickets or fines along with other forms of enforcement if the investigations and the inspections indicate that the requirements of the Weights and Measures Act are not met.

Measurement Canada decision:

Recommendations 6.1 to 6.4 accepted, with the understanding that 6.4 applies to more than just complaints.

Considerations, conditions and / or limitations:

Measurement Canada is subject to the Access to Information and Privacy Act and can only divulge information permitted under these acts.

Measurement Canada will develop and publish a policy clearly outlining what information from complaint inspections/investigations can be provided to complainants.

7.0 Monitoring the Sector

7.1 Measurement Canada should monitor this sector by compiling compliance data on devices, by retaining complaint investigation results and by soliciting stakeholder feedback/input and disseminate this information in aggregate form on a yearly basis.

Measurement Canada decision:

Recommendation accepted.

Considerations, conditions and / or limitations:

Measurement Canada will develop and implement a monitoring program for the sector and publish on the Measurement Canada website in a user friendly document, with explanations, reporting the performance of the sector.

8.0 Future Sector Reviews

8.1 Future trade sector reviews should be conducted if there is a significant reduction in compliance rates, there are major changes in the industry that can have an impact on measurement accuracy or stakeholders indicate that there is a lack of confidence in measurement accuracy.

Measurement Canada decision:

Measurement Canada will take this recommendation into account in determining if a future review will be held in this sector.

Considerations, conditions and / or limitations:

Measurement Canada will continue to monitor the sector and will investigate the causes of any major reduction in compliance rate or any ongoing measurement problems.