q-2, r. 42.1 - Regulation respecting the charges payable for the use of water

Updated to 1 January 2024

This document has official status.

chapter Q-2, r. 42.1

Regulation respecting the charges payable for the use of water

Environment Quality Act

(chapter Q-2, ss. 46, 95.1 and 124.1).

Act respecting certain measures enabling the enforcement of environmental and dam safety legislation

(chapter M-11.6, ss. 30 and 45).

O.C. 1017-2010; I.N. 2019-12-01; S.Q. 2022, c. 8, s. 1.

1. This Regulation establishes charges for the use of water, whether it comes from a waterworks system or is taken directly from surface water or groundwater, to promote the protection and development of the resource and ensure that there is an adequate quality and quantity of water in a sustainable development perspective.

O.C. 1017-2010, s. 1; O.C. 1679-2023, s. 1.

2. For the purposes of this Regulation,

“measuring equipment” means a water meter or other device designed to measure and record a volume of water; (équipement de mesure)

“rated capacity” means the maximum effective capacity, according to the specifications of the builder or manufacturer of the withdrawal works, facility or equipment; (capacité nominale)

“waterworks system” means a waterworks system within the meaning of section 3 of the Regulation respecting the regulatory scheme applying to activities on the basis of their environmental impact (chapter Q-2, r. 17.1); (système d’aqueduc)

“withdrawal site” means a withdrawal site within the meaning of section 3 of the Regulation respecting the regulatory scheme applying to activities on the basis of their environmental impact; (site de prélèvement).

For the purposes of this Regulation, is considered a use of water

(1)  any action for lowering or diverting groundwater;

(2)  any other withdrawal of water, even where the water is subsequently returned to its environment of origin.

O.C. 1017-2010, s. 2; O.C. 1679-2023, s. 2; I.N. 2024-01-01.

3. The use of water for the following activities is covered by this Regulation:

(1)  production of water in bottles or other containers, whether or not the water is intended for human consumption;

(1.1)  the transportation of water by volume for commercial purposes, regardless of the means used and whether or not the water is intended for human consumption;

(2)  mining, quarrying and oil and gas extraction (NAICS 21);

(3)  the manufacturing activities mentioned in the Schedule.

NAICS codes mentioned in this Regulation correspond to the codes of the North American Industry Classification System (NAICS) Canada, published by Statistics Canada. The description of the activities to which the codes refer applies for the purposes of this Regulation, whether the activities are carried on as main activities or not.

O.C. 1017-2010, s. 3; O.C. 1679-2023, s. 3.

4. Every person whose activity results in the use of a daily volume of water equal to or greater than 50,000 litres, at least 1 day in a calendar year, is subject to charges for the use of water for that year and remains so for any subsequent year in which the same activity results in the use of water, regardless of the volume.

The daily volume is determined by adding up, each time that more than one waterworks system, withdrawal site, or groundwater lowering or diversion site is connected to a single establishment, all the volumes of water used from each system or site or, in the cases and in accordance with the conditions provided for in section 8.1, all the volumes of water that may be withdrawn under the authorizations of the establishment issued under section 22 of the Act or the withdrawal rated capacity of all of the establishment’s withdrawal facilities or equipment. Establishments whose activities are related or complementary to one another and are under the responsibility of one person are considered to be part of the same establishment.

Charges are established on the basis of the volume of water used in a year.

O.C. 1017-2010, s. 4; O.C. 687-2013, s. 1; O.C. 1679-2023, s. 4.

5. The rate of the charges is set at $35 per 1,000,000 litres of water used, except the water used for the activities referred to in the second paragraph.

The rate of the charges is set at $150 per 1,000,000 litres of water used where the water is used for the following activities:

(1)  the production of water in bottles or other containers, whether or not the water is intended for human consumption;

(1.1)  the transportation of water by volume for commercial purposes, regardless of the means used and whether or not the water is intended for human consumption;

(2)  beverage manufacturing (NAICS 3121);

(3)  non-metallic mineral product manufacturing (NAICS 327), when water is incorporated into the product;

(4)  pesticide, fertilizer and other agricultural chemical manufacturing (NAICS 3253), when water is incorporated into the product;

(5)  other basic inorganic chemical manufacturing (NAICS 32518), when water is incorporated into the product;

(6)  oil and gas extraction (NAICS 211).

Where the water is used for the production of water in bottles or other containers, or for the transportation of water by volume for commercial purposes and whatever the means used, whether or not the water is intended for human consumption, additional charges of $350 per 1,000,000 litres of water used is added to the charges provided for in the second paragraph.

O.C. 1017-2010, s. 5; O.C. 1679-2023, s. 5.

5.1. Despite section 5, no charges for the use of water are payable where the amount is less than $250.

O.C. 1679-2023, s. 6.

6. Every person subject to charges for the use of water is required to determine the volume of water the person uses and discharges annually by direct measurement taken by measuring equipment installed as close as possible to a withdrawal site or another water entry location and each discharge point for water and the installation, operation, monitoring and measurement of which meet, with the necessary modifications, the requirements of Chapter IV of the Regulation respecting the declaration of water withdrawals (chapter Q-2, r. 14).

If such measuring equipment is not installed in accordance with the first paragraph, the person must, when establishing or altering such a withdrawal site, another water entry location or a discharge point, instal it in accordance with that paragraph. Until the person establishes or alters such measuring, the person may determine the volume of water the person uses annually by estimates based on indirect or spot measurements, in accordance with section 7 of that Regulation.

O.C. 1017-2010, s. 6; O.C. 1679-2023, s. 7.

7. Charges for the use of water are payable to the Minister of Finance, not later than 31 March of the year following the year for which the charges are payable or, if the person ceases to use water during a year, within 60 days of the cessation.

O.C. 1017-2010, s. 7.

8. Persons subject to charges for the use of water must, when they are withdrawers referred to in the Regulation respecting the declaration of water withdrawals (chapter Q-2, r. 14), indicate in the annual declaration to be sent to the Minister under section 9 of that Regulation, the amount of the charges paid to the Minister of Finance.

The persons must also indicate in the annual declaration the monthly volumes and the annual volume of water used and discharged, in litres, and, in the case of several activities, the volumes broken down for each activity.

If they are not withdrawers referred to in the Regulation respecting the declaration of water withdrawals, the persons subject to charges for the use of water must declare to the Minister each year, not later than 31 March of the year following the year that is the subject of the declaration or, if they have ceased using the water in one year, within 60 days after the cessation, the following information:

(1)  their name, address, telephone number, email address and, where applicable, the Québec business number and those of their representatives and their establishments;

(2)  the waterworks system from which comes the water used;

(3)  the number of days during which water was taken from that system;

(4)  the activity for which the water is used, identified by its NAICS code;

(5)  the monthly volumes and the annual volume of water used and discharged, in litres, and, in the case of several activities, the volumes broken down for each activity;

(6)  the type of measuring equipment installed and any malfunction, breakdown, abnormality or other defect that affected the operation of the equipment, and the number of days during which the volumes could not be measured in a reliable and accurate manner or, if an estimation method is used, the name of the professional who estimated the volumes of water used and his or her profession and a description of the estimation method used.

The declaration provided for in the third paragraph is completed and sent electronically, using the form on the website of the Ministère du Développement durable, de l’Environnement et des Parcs. The person who completes the declaration must certify that the information it contains is accurate. Documents in support of the declaration must be kept on the premises of the establishment concerned for a period of 5 years and be sent to the Minister within 20 days after a request to that effect.

The persons referred to in the third paragraph must also keep a register in accordance with section 10 of the Regulation respecting the declaration of water withdrawals, with the necessary modifications.

The information on the use of water referred to in the second and third paragraphs, except the information referred to in subparagraph 6 of the third paragraph and personal information, is public and the Minister publishes the information of the Minister’s department’s website, in keeping with the principle of transparency stated in section 7 of the Act to affirm the collective nature of water resources and to promote better governance of water and associated environments (chapter C-6.2).

O.C. 1017-2010, s. 8; O.C. 687-2013, s. 2; O.C. 1679-2023, s. 8.

8.1. Where a person subject to charges for the use of water is a withdrawer referred to in the Regulation respecting the declaration of water withdrawals (chapter Q-2, r. 14) and has not sent to the Minister, within the period prescribed, the annual declaration provided for in section 9 of that Regulation with the information provided for in the second paragraph of section 8 of this Regulation, the charges payable are established,

(1)  if the water withdrawal is authorized by the Minister under section 22 of the Act, according to the maximum daily water volume that the authorization allows to be withdrawn for the current year; and

(2)  in the other cases, according to the withdrawal rated capacity of the withdrawal facility or equipment.

Where a person subject to charges for the use of water is not a withdrawer referred to in the Regulation respecting the declaration of water withdrawals and has not sent to the Minister, within the period prescribed, the declaration provided for in the third paragraph of section 8 of this Regulation, the charges payable are established according to the withdrawal rated capacity of the withdrawal facility or equipment.

Before imposing the charges established under this section, the Minister must give prior notice to the person concerned and grant the person at least 30 days to submit observations.

O.C. 1679-2023, s. 9.

9. The rates of the charges set in the first and second paragraphs of section 5 are increased by operation of law on 1 January of each year, according to an annual rate of 3%.

The amount set in section 5.1 is adjusted in the manner provided for in section 83.3 of the Financial Administration Act (chapter A-6.001).

O.C. 1017-2010, s. 9; O.C. 1679-2023, s. 10.

10. Charges for the use of water not paid within the prescribed time bear interest, from the date of default, at the rate determined under the first paragraph of section 28 of the Tax Administration Act (chapter A-6.002).

In addition to the interest payable, the following amounts are added to every amount outstanding:

(1)  7% of the amount of the unpaid charges if the delay does not exceed 7 days;

(2)  11% of the amount of the unpaid charges if the delay exceeds 7 days but does not exceed 14 days;

(3)  15% of the amount of the unpaid charges in all other cases.

O.C. 1017-2010, s. 10.

11. Charges for the use of water payable to the Minister of Finance under this Regulation, as well as the interest and amounts provided for in section 10, are paid into the Blue Fund.

O.C. 1017-2010, s. 11; S.Q. 2020, c. 19, s. 29; S.Q. 2023, c. 17, s. 11.

11.1. A monetary administrative penalty of $350 in the case of a natural person or $1,500 in other cases may be imposed on any person who fails

(1)  to indicate in the annual declaration referred to in the first paragraph of section 8, the amount of the charges payable and, where applicable, whether or not water is incorporated into the product;

(2)  to comply with the time limits or the conditions for sending to the Minister an annual declaration referred to in section 8 in accordance with the second or third paragraph of that section;

(3)  to keep or make available to the Minister, in accordance with the third paragraph of section 8, documents in support of the annual declaration referred to in the second paragraph of that section;

(4)  to keep the register prescribed in the fourth paragraph of section 8.

O.C. 687-2013, s. 3.

11.2. A monetary administrative penalty of $500 in the case of a natural person or $2,500 in other cases may be imposed on any person who fails

(1)  to determine the volume of water used in accordance with section 6;

(2)  to pay the charges payable on the date or within the period provided for in section 7;

(3)  to declare annually to the Minister the information listed in the second paragraph of section 8.

O.C. 687-2013, s. 3.

12. Every person who contravenes the first, third or fourth paragraph of section 8 or fails to meet the transmission periods provided for in the second paragraph of that section commits an offence and is liable, in the case of a natural person, to a fine of $2,000 to $100,000 or, in other cases, to a fine of $6,000 to $600,000.

O.C. 1017-2010, s. 12; O.C. 687-2013, s. 4.

12.1. Every person who contravenes section 6 or 7 or fails to declare annually to the Minister the information listed in the second paragraph of section 8 commits an offence and is liable, in the case of a natural person, to a fine of $2,500 to $250,000 or, in other cases, to a fine of $7,500 to $1,500,000.

O.C. 687-2013, s. 4.

12.2. Every person who, pursuant to this Regulation, makes a declaration, communicates information or files a document that is false or misleading commits an offence and is liable, in the case of a natural person, to a fine of $5,000 to $500,000 or, despite article 231 of the Code of Penal Procedure (chapter C-25.1), to a maximum term of imprisonment of 18 months, or to both the fine and imprisonment, or, in other cases, to a fine of $15,000 to $3,000,000.

O.C. 687-2013, s. 4.

13. The obligation to pay charges for the use of water applies as of 2011 and the annual declaration and the payment of the charges for that year must be sent not later than 31 March 2012.

O.C. 1017-2010, s. 13.

14. The Minister of Sustainable Development, Environment and Parks must, 5 years after the 30 December 2010, report to the Government on the implementation of this Regulation and particularly on the advisability of amending certain of its provisions to take into consideration the latest scientific and technical knowledge.

This report is made available to the public not later than 15 days after it is sent to the Government.

O.C. 1017-2010, s. 14.

15. This Regulation applies in a reserved area and an agricultural zone established under the Act respecting the preservation of agricultural land and agricultural activities (chapter P-41.1).

O.C. 1017-2010, s. 15.

16. (Omitted).

O.C. 1017-2010, s. 16.

SCHEDULE

(s. 3)

Activity                                                                 NAICS code

Food manufacturing                                                              311

Beverage and tobacco product manufacturing                                      312

Textile mills                                                                   313

Textile product mills                                                           314

Clothing manufacturing                                                          315

Leather and allied product manufacturing                                        316

Wood product manufacturing                                                      321

Paper manufacturing                                                             322

Printing and related support activities                                         323

Petroleum and coal product manufacturing                                        324

Chemical manufacturing                                                          325

Plastics and rubber products manufacturing                                      326

Non-metallic mineral product manufacturing                                      327

Primary metal manufacturing                                                     331

Fabricated metal product manufacturing                                          332

Machinery manufacturing                                                         333

Computer and electronic product manufacturing                                   334

Electrical equipment, appliance and component manufacturing                     335

Transportation equipment manufacturing                                          336

Furniture and related product manufacturing                                     337

Miscellaneous manufacturing                                                     339

O.C. 1017-2010, Sch.

TRANSITIONAL

2023

(O.C. 1679-2023) SECTION 11. Until 31 December 2025 and despite section 4 of the Regulation, as amended by section 4 of this Regulation, the daily volume of water, for the purposes of section 4 of the Regulation, is established at 75,000 litres.

REFERENCES

O.C. 1017-2010, 2010 G.O. 2, 3847

S.Q. 2010, c. 31, s. 91

O.C. 687-2013, 2013 G.O. 2, 1826

S.Q. 2020, c. 19, s. 29

S.Q. 2023, c. 17, s. 11

O.C. 1679-2023, 2023 G.O. 2, 3129