Fibreco Export Inc. – Handling Wood Pellets

Order number 2023-49

Introduction:

  1. Fibreco Export Inc. operates a licensed terminal elevator located at Vancouver, BC which handles grain regulated under the Canada Grain Act (the Act) and wood pellets which are not regulated under the Act.
  2. Paragraph 57(b) of the Act prohibits receiving into licenced elevators “any material or substance for storage other than grain, grain products or screenings”, except as may be authorized by regulation or by order of the Canadian Grain Commission (the Commission).
  3. Section 2 of the Act defines “grain” as the seeds designated by regulation. Subsection 5(1) of the Canada Grain Regulations (the Regulations) designates 21 seeds for the purposes of the Act: barley, beans, buckwheat, canary seed, canola, chick peas, corn, fababeans, flaxseed, lentils, mixed grain, mustard seed, oats, peas, rapeseed, rye, safflower seed, soybeans, sunflower seed, triticale and wheat.
  4. The Commission has authority under paragraph 117(b) of the Act to make orders exempting a particular elevator or operation from the licensing or any other requirements of this Act or the Regulations, where, in the opinion of the Commission, the control of any type of elevator or type of grain handling operation or any particular elevator or grain handling operation is not essential for maintaining the quality, safe-keeping and orderly and efficient handling of grain in Canada.
  5. Fibreco Export Inc. utilizes the same handling equipment for wood pellets as they do for grain at their licensed terminal elevator at Vancouver, BC. With the support of Commission personnel, Fibreco Export Inc. has developed an authorized Commission “clean-out” procedure, which is intended to mitigate the risk of commingling grain and wood pellets that may result from using the same equipment.
  6. The decision in respect of this order was made at a meeting of quorum of the Commission on May 10, 2023. Two of three Commissioners constitutes a quorum of the Commission.

Pursuant to paragraph 117(b) of the Act, the Commission makes the following order:

  1. Fibreco Export Inc. may receive and discharge wood pellets at their licensed terminal elevator at Vancouver, BC, subject to the following conditions:
    1. Fibreco Export Inc. is required to declare their intention to handle wood pellets at their licensed terminal elevator at Vancouver, BC to the Commission’s Licensing Unit prior to the beginning of each crop year; and
    2. Fibreco Export Inc. must, upon receipt and discharge of wood pellets at their licensed terminal elevator at Vancouver, BC, use the Commission-authorized clean-out procedure.
    3. Fibreco Export Inc. will dedicate the three older 1500 MT silos (identification number: 14, 21, 28) for grain storage only.
  2. In the event that one or more of the conditions set out in subparagraphs 1. a., b. and c. of this order are not met, the Commission may stipulate a reasonable period for compliance or terminate this order and notify Fibreco Export Inc. in writing of its decision.
  3. If wood pellets are detected in grain being discharged from Fibreco Export Inc.’s licensed terminal elevator at Vancouver, BC, the Commission will review certification options for the grain shipment in the contaminated hold(s). Grain certification will be held as “Grain Type, Extraneous Material”, until the shipment is reviewed by the Chief Grain Inspector.
  4. When being discharged, if wood pellets are detected, in order for the Commission to proceed with certification of the grain shipment as grade ordered, Fibreco Export Inc. must adhere to the following procedures:
    1. Remove grain and wood pellets from the vessel hold(s) in question;
    2. Treat the grain as advised by the Chief Grain Inspector; and
    3. Provide the Commission with a sample of the material removed from the vessel hold(s) in question and any other information that is needed for the Commission to determine if certification of the shipment can be made.
  5. This order comes into effect on the later of the crop year commencing August 1, 2023, or the signing date, and is in effect until July 31, 2024, unless revoked earlier.

This order may be executed and delivered via facsimile or PDF and in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument, and it shall not be necessary in making proof of this order to produce or account for more than one such counterpart.

Doug Chorney
Chief Commissioner

Patty Rosher
Assistant Chief Commissioner

Lonny McKague
Commissioner

Signed on: May 10, 2023

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