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Risk in Context

Understanding the Proposed Changes to Ontario’s Boiler and Pressure Vessels Regulation

Posted by Matthew Dugalic September 20, 2017

Recently, Ontario’s Ministry of Government and Consumer Services (MGCS) proposed significant amendments to the Boiler and Pressure Vessels (BPV) Regulation (O. Reg. 220/021). Under the proposed changes, BPV owners will soon require Technical Standards & Safety Authority (TSSA) authorization to operate the equipment, resulting in a change in both process and cost for vessel owner/operators.

Background

In February 2016, MGCS convened a 14-member panel of BPV industry stakeholders (owner/operators, insurance companies, third party inspectors, manufacturers and other relevant industrial institutions) to solicit their expert advice on the proposed changes. The panel agreed on a number of recommendations, and, in principle, supported the proposed amendments, deeming them necessary due to inefficiencies with the current practice.

What are the proposed changes?

The proposed amendments, expected to go into effect in 2018, require that following an insurer’s periodic inspection, the device owner/operator must apply for authorization from TSSA to operate their device. Once the insurer submits its evidence/record of inspection, a Certificate of Inspection (COI) will be issued by TSSA an device owner/operators will be required to pay a new periodic fee of $15 per object – a cost that may add up for some vessel owner/operators. (It is anticipated that this process will be managed through a user-friendly TSSA portal.)

The proposed changes also include an option for TSSA to engage third party inspection agencies to perform periodic service and repair inspections on behalf of insurance companies.

What are the benefits?

These changes have been proposed to help:

  • Support the long-term reliability and integrity of BVP equipment, underscoring Ontario’s strong safety record.
  • Ensure full compliance with the BPV regulation in Ontario.
  • Align BPV equipment regulation with that of similar equipment in Ontario (such as elevating devices).

What’s next?

For now, it is business as usual and the BPV inspection process will continue as it does today. The changes are not anticipated before early or mid-2018 (with full implementation expected sometime thereafter.)

Marsh Canada Limited is in the process of canvassing the machinery breakdown insurers who have, in principle, accepted the proposed changes, in order to implement the necessary systems and measures to provide seamless jurisdictional BPV inspection services to our clients.

We will continue to monitor the developments with respect to the BPV regulation amendments and will keep our clients informed accordingly.

Matthew Dugalic

Matt is a senior consultant in our Machinery Risk Solutions Practice, responsible for providing machinery related business continuity and risk control services directly to our heavy industry clients particularly in the mining, mineral processing / hydrometallurgy, chemical / petrochemical processing and power generation industries.