Registration
SOR/2008-273 September 5, 2008
CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999
P.C. 2008-1659 September 5, 2008
Whereas, pursuant to subsection 332(1) (see footnote a) of the Canadian Environmental Protection Act, 1999 (see footnote b), the Minister of the Environment published in the Canada Gazette, Part I, November 4, 2006, a copy of the proposed PCB Regulations, substantially in the annexed form, and persons were given an opportunity to file comments with respect to the proposed Regulations or to file a notice of objection requesting that a board of review be established and stating the reasons for the objection;
Whereas, pursuant to subsection 93(3) of that Act, the National Advisory Committee has been given an opportunity to provide its advice under section 6 (see footnote c) of that Act;
And whereas, in the opinion of the Governor in Council, pursuant to subsection 93(4) of that Act, the proposed Regulations do not regulate an aspect of a substance that is regulated by or under any other Act of Parliament in a manner that provides, in the opinion of the Governor in Council, sufficient protection to the environment and human health;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of the Environment and the Minister of Health, pursuant to subsection 93(1) and section 97 of the Canadian Environmental Protection Act, 1999 (see footnote d), hereby makes the annexed PCB Regulations.
TABLE OF CONTENTS
(This table is not part of the Regulations.)
PCB REGULATIONS
PART 1
GENERAL
1 Definitions
2 Application
3 Sale of property
4 Compliance
PART 2
PROHIBITIONS AND PERMITTED ACTIVITIES
PROHIBITIONS
5 Release into the environment
6 Prohibited activities
7 Laboratory analysis
8 Research
9 Electrical capacitor
10 Aircraft, ships, trains and other vehicles
11 Colouring pigment
12 Destruction
13 Solid products
14 Cables, pipelines, electrical capacitors and other equipment
15 Liquids for servicing — concentration less than 2 mg/kg
END-OF-USE DATES AND EXTENSION
16 Equipment referred to in subparagraphs 14(1)(d)(i) to (iii)
17 Extension of end-of-use date
PART 3
STORAGE
18 Application — concentration of 50 mg/kg or more
19 Requirement to store
20 Prohibition against storage
21 Maximum storage periods
22 Exceptions to maximum storage periods
23 PCBs or products containing PCBs stored at the coming into force
24 PCB storage site
25 Storage requirements
26 Access to PCB storage site
27 Inspection and maintenance of a PCB storage site
28 Fire protection and emergency procedures
PART 4
LABELLING, REPORTS AND RECORDS
LABELLING
29 Equipment and liquids used for their servicing
30 Cables and pipelines
31 A facility other than transfer site or destruction facility
32 Retention of labels
REPORTS
33 End of use of equipment and liquids — 2009
34 Research
35 Colouring pigment
36 Solid products containing PCBs
37 Stored PCBs or products — PCB concentration of 50 mg/kg or more
38 Stored PCBs or products — transfer site or destruction facility
39 Date of submission of report
40 Release into the environment
41 Retention
42 Method of submission
RECORDS
43 Records for permitted activities
44 Inspection record
45 Retention of records
PART 5
REPEALS AND COMING INTO FORCE
REPEALS
46 Repeal
47 Repeal
COMING INTO FORCE
48 Coming into force
| definitions |
PCB REGULATIONS |
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PART 1 |
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GENERAL |
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Definitions |
1. (1) The following definitions apply in these Regulations. |
| “Act ” « Loi » |
“Act” means the Canadian Environmental Protection Act, 1999. |
| “authorized facility” « installation agréée » |
“authorized facility” means a facility, including a transfer site, that is authorized by the authorities of the jurisdiction in which it is located to process PCBs or products containing PCBs or to conduct laboratory analysis or research with PCBs or products containing PCBs. |
| “National Fire Code” « Code national de prévention des incendies » |
“National Fire Code” means the National Fire Code of Canada 2005, NRCC No. 47667, issued by the Canadian Commission on Building and Fire Codes, National Research Council of Canada, as amended from time to time. |
| “PCB” « BPC » |
“PCB” means any chlorobiphenyl described in item 1 of the List of Toxic Substances in Schedule 1 to the Act. |
| “process” « transformer » |
“process” includes to mix with a product. |
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“product” « produit » |
“product” includes equipment. |
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Concentration — several matrices |
(2) For the purposes of these Regulations, if a solid or a liquid containing PCBs is composed of several matrices, the concentration of PCBs is based on the mass of the matrix in which the PCBs are located. |
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Concentration and quantity |
(3) For the purposes of these Regulations, the concentration and quantity of PCBs shall be determined (a) by a laboratory (i) accredited by the Standards Council of Canada (SCC), the Canadian Association for Environmental Analytical Laboratories Inc. (CAEAL), or any other accreditation body that is a signatory to the International Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement, and the laboratory shall be accredited in accordance with the International Organization for Standardization standard ISO/IEC 17025:2005 entitled General Requirements for the Competence of Testing and Calibration Laboratories, as amended from time to time, and (ii) for which the scope of accreditation shall include the analytical method used to determine the concentration of PCBs in the matrix in which the PCBs are located; or (b) by a laboratory (i) accredited in accordance with the Environmental Quality Act, R.S.Q., c. Q-2, as amended from time to time, and (ii) for which the scope of accreditation shall include the analytical method used to determine the concentration of PCBs in the matrix in which the PCBs are located. |
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Sampling method |
(4) For the purposes of these Regulations, other than section 13, the concentration of PCBs in a matrix is determined using a provincially, nationally or internationally recognized sampling method for PCBs in the matrix in which the PCBs are located. |
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Sampling method — bulk solid products |
(5) For the purposes of section 13, the concentration of PCBs is determined using a sampling method for bulk solid products, which is set out in either federal or provincial legislation, as amended from time to time, or approved by the United States Environmental Protection Agency for compliance with the Resource Conservation and Recovery Act or with the regulations made under that Act, as amended from time to time. |
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Application |
2. (1) These Regulations apply to PCBs and to any products containing PCBs. |
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Non-application |
(2) These Regulations do not apply to the following: (a) the export and import of PCBs that are hazardous waste or hazardous recyclable material within the meaning of the Export and Import of Hazardous Waste and Hazardous Recyclable Material Regulations or the export of PCBs that are waste within the meaning of the PCB Waste Export Regulations, 1996; (b) the sale, importation or advertising of liquids containing PCBs for use in microscopy, including immersion oils, but not including refractive index oils, which is prohibited under section 4 of the Hazardous Products Act; and (c) the offer for sale, sale and use of land contaminated with PCBs or with products containing PCBs. |
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Sale of property |
3. Nothing in these Regulations shall be construed as preventing the sale of (a) personal property or movables that contain PCBs, or real property or immovables that have PCBs or products containing PCBs, and that form part of the sale of the whole or part of a business, including a manufacturing or a processing business; (b) real property or immovables that have products containing PCBs if the products continue to be used after the sale for the same purpose at the same place and are an integral part of the property or immovable; or (c) real property or immovables on which a PCB storage site is located. |
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Compliance |
4. In addition to the persons who must comply with the requirements set out in these Regulations, a person who owns PCBs or products containing PCBs shall ensure that the requirements of these Regulations with respect to those PCBs or products are met. |
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PROHIBITIONS AND PERMITTED ACTIVITIES |
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PROHIBITIONS |
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Release into the environment |
5. (1) No person shall release PCBs into the environment, other than from the equipment referred to in subsection (2), in a concentration of (a) 2 mg/kg or more for a liquid containing PCBs; or (b) 50 mg/kg or more for a solid containing PCBs. |
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Release from equipment |
(2) No person shall release more than one gram of PCBs into the environment from equipment referred to in section 16 that is in use or from equipment in use for which an extension has been granted under section 17. |
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Prohibited activities |
6. Except as provided in these Regulations, no person shall (a) manufacture, export or import PCBs or a product containing PCBs in a concentration of 2 mg/kg or more; (b) offer for sale or sell PCBs or a product containing PCBs in a concentration of 50 mg/kg or more; or (c) process or use PCBs or a product containing PCBs. |
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Laboratory analysis |
7. A person may manufacture, export, import, offer for sale, sell, process and use PCBs or products containing PCBs for the purpose of laboratory analysis if the analysis is conducted (a) in an authorized facility that is authorized for that purpose; or (b) in a facility that conforms to internationally recognized guidelines on best laboratory practices, if the authorities of the jurisdiction in which the facility is located do not have a mechanism in place to authorize the facility to conduct the analysis. |
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Research |
8. (1) A person may offer for sale or sell PCBs or products containing PCBs to be processed or used for the purpose of research to determine the effects of those PCBs or products on human health or on the environment, if the facility in which they are processed or used is (a) an authorized facility that is authorized for that purpose; or (b) a facility that conforms to internationally recognized guidelines on best laboratory practices, if the authorities of the jurisdiction in which the facility is located do not have a mechanism in place to authorize the facility to conduct the research. |
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Processing and use |
(2) A person may process and use the PCBs or products containing PCBs for the purpose of the research referred to in subsection (1) at a facility that meets the requirement set out in paragraph (1)(a) or (b). |
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Electrical capacitor |
9. A person may offer for sale, sell and use an electrical capacitor containing PCBs if the electrical capacitor (a) is an integral part of a consumer product; (b) is fusion sealed; and (c) would be rendered inoperable and irreparable if the PCBs were removed from it. |
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Aircraft, ships, trains and other vehicles |
10. A person may export, import, offer for sale, sell and use for transportation purposes aircraft, ships, trains and other vehicles that contain PCBs only in their communication, navigation or electronic control equipment or cables. |
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Colouring pigment |
11. (1) A person may manufacture, export, import, offer for sale, sell, process and use a colouring pigment containing PCBs produced incidentally if the concentration of the PCBs is less than 50 mg/kg. |
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Annual average concentration |
(2) Despite subsection (1), the annual average concentration of PCBs produced incidentally in colouring pigment that a person may manufacture, export, import, offer for sale, sell, process and use shall not exceed 25 mg/kg. |
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Destruction |
12. A person may process PCBs or products containing PCBs for the purpose of destroying PCBs or recovering PCBs for the purpose of destroying them in an authorized facility that is authorized for that purpose. |
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Solid products |
13. (1) A person may manufacture solid products containing PCBs in a concentration of less than 50 mg/kg using bulk solid products containing PCBs in a concentration of less than 50 mg/kg, and may use those solid products. |
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Application |
(2) Subsection (1) only applies to the manufacture of the types of products that are manufactured before the day on which these Regulations come into force. |
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Exception |
(3) No person shall offer for sale or sell the products manufactured in accordance with subsection (1) unless the products are used in the course of a commercial or industrial activity. |
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Cables, pipelines, electrical capacitors and other equipment |
14. (1) A person may use the following products containing PCBs: (a) cables, if they remain in place on the day on which these Regulations come into force; (b) pipelines that transport natural gas, petroleum or petroleum products and any associated equipment that is in contact with the natural gas, petroleum or petroleum products if the pipelines and the equipment remain in place on the day on which these Regulations come into force; (c) fusion sealed capacitors if they are used in relation to communication equipment or electronic control equipment; and (d) the following equipment containing PCBs in a concentration of less than 50 mg/kg if the equipment is used for the purpose for which it was manufactured: (i) electrical capacitors, other than light ballasts, and electrical transformers and their auxiliary electrical equipment, other than pole-top electrical transformers and their pole-top auxiliary electrical equipment, (ii) electromagnets that are not used in the handling of food, feed or any additive to food or feed, and (iii) heat transfer equipment, hydraulic equipment, vapour diffusion pumps and bridge bearings. |
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Electrical capacitors |
(2) A person may import fusion sealed capacitors containing PCBs for use in relation to communication tactical equipment or electronic control tactical equipment. |
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Liquids for servicing — concentration less than 2 mg/kg |
15. (1) A person may use liquids containing PCBs in a concentration of less than 2 mg/kg for the purpose of servicing equipment containing PCBs. |
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Liquids for servicing — concentration of 500 mg/kg or more |
(2) A person may use liquids containing PCBs in a concentration of 500 mg/kg or more for the purpose of servicing equipment containing PCBs in a concentration of 500 mg/kg or more until December 31, 2009. |
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Equipment referred to in subparagraphs 14(1)(d)(i) to (iii) |
16. (1) A person may use the equipment referred to in subparagraphs 14(1)(d)(i) to (iii) until the following dates if the equipment is in use on the day on which these Regulations come into force: (a) in the case of equipment containing PCBs in a concentration of 500 mg/kg or more, December 31, 2009; and (b) in the case of equipment containing PCBs in a concentration of at least 50 mg/kg but less than 500 mg/kg, (i) December 31, 2009, if the equipment is located at a drinking water treatment plant or food or feed processing plant, in a child care facility, preschool, primary school, secondary school, hospital or senior citizens’ care facility or on the property on which the plant or facility is located and within 100 m of it, and (ii) December 31, 2025, if the equipment is located at any other place. |
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Light ballasts and pole-top electrical transformers |
(2) A person may use the following equipment containing PCBs in a concentration of 50 mg/kg or more until December 31, 2025, if the equipment is in use on the day on which these Regulations come into force: (a) light ballasts; and (b) pole-top electrical transformers and their pole-top auxiliary electrical equipment. |
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Liquid — concentration of 2 mg/kg or more |
(3) A person may use a liquid containing 2 mg/kg or more of PCBs that is in equipment until the day on which the liquid is removed from the equipment. |
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Extension of end-of-use date |
17. (1) Despite subsection 15(2), paragraph 16(1)(a) and subparagraph 16(1)(b)(i), a person may use the equipment and the liquids used for servicing that equipment, referred to in those provisions, until the date set out in an extension granted by the Minister under subsection (2) for that equipment and those liquids. |
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Application |
(2) The Minister shall, on receiving a written application containing the information set out in subsection (3), grant an extension up to the date applied for but no later than December 31, 2014, if either of the following conditions are met: (a) the equipment is being replaced with equipment that is engineered to order, and (i) it is not technically feasible to replace the equipment on or before December 31, 2009, (ii) the applicant is taking all necessary measures to minimize or eliminate any harmful effect of the PCBs in the equipment on the environment and on human health, (iii) a plan has been prepared, along with timelines, to end the use of the equipment by the date applied for, (iv) a plan has been prepared for inspecting the equipment on a monthly basis for the period of the extension for damage that could lead to the release of PCBs, and (v) the equipment bears the label required under section 29; or (b) the equipment is located at a facility that is scheduled for permanent closure on or before December 31, 2014, and (i) the applicant is taking all necessary measures to minimize or eliminate any harmful effect of the PCBs in the equipment on the environment and on human health, (ii) a plan has been prepared, along with timelines, to end the use of the equipment by the date applied for, (iii) a plan has been prepared for inspecting the equipment on a monthly basis, for the period of the extension, for damage that could lead to the release of PCBs, and (iv) the equipment bears the label required under section 29. |
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Information |
(3) The application shall contain the following: (a) the name, civic and mailing addresses, telephone number, fax number, if any, and e-mail address, if any, of the applicant and of any person authorized to act on the applicant’s behalf; (b) a technical description of the equipment which is the subject of the application, including (i) the type and function of the equipment, (ii) the quantity of liquid containing PCBs that is in the equipment and the quantity of liquid needed for servicing that equipment, expressed in litres, (iii) the concentration of PCBs in the liquid, expressed in milligrams of PCBs per kilogram of liquid, (iv) the quantity of PCBs in the liquid that is in the equipment, expressed in kilograms, and (v) the name-plate description, if any, and the manufacturer’s serial number, if any; (c) the unique identification number that is on the label required under section 29; (d) the name, if any, and civic address of the facility where the equipment is located, or, if there is no civic address, the location using the owner’s site identification system, and the function and technical description of the facility; (e) information demonstrating that (i) it is not technically feasible to replace the equipment on or before December 31, 2009, or (ii) the facility where the equipment is located is scheduled for permanent closure on or before December 31, 2014; (f) information demonstrating that the applicant is taking all necessary measures to minimize or eliminate any harmful effect of the PCBs that are contained in the equipment on the environment and on human health; (g) the plan, along with timelines, for ending the use of the equipment; and (h) the plan for inspecting the equipment. |
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Notice of change to information |
(4) The applicant shall notify the Minister in writing of any change to the information provided under subsection (3) within 30 days after the day on which the change occurs. |
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False or misleading information |
(5) The Minister shall refuse to grant an extension if the Minister has reasonable grounds to believe that the applicant has provided false or misleading information in support of its application. |
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Revocation |
(6) The Minister shall revoke the extension if (a) the requirements set out in subsection (2) are no longer met during the period of the extension; or (b) the Minister has reasonable grounds to believe that the applicant has provided false or misleading information to the Minister in support of its application. |
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Reasons for revocation |
(7) The Minister shall not revoke the extension unless the Minister provides the applicant with (a) written reasons for the revocation; and (b) an opportunity to be heard, by written representation, in respect of the revocation. |
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STORAGE |
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Application — concentration of 50 mg/kg or more |
18. (1) Subject to subsection (3), this Part applies to a solid or liquid product containing PCBs in a concentration of 50 mg/kg or more (a) that is in an amount equal to or greater than 100 L if the product is a liquid, or in an amount equal to or greater than 100 kg if the product is a solid; or (b) that is in a lesser amount if the product contains 1 kg or more of PCBs. |
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Determination of amount |
(2) For the purposes of subsection (1), the amount of PCBs or products containing PCBs is the aggregate of all amounts of PCBs and products that are located at a particular site. |
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Non-application |
(3) This Part does not apply in respect of the following products containing PCBs: (a) solid or liquid products that are processed daily or used; (b) pipelines that transport natural gas, petroleum or petroleum products, and any associated equipment that is in contact with the natural gas, petroleum or petroleum products, if they remain in place on the day on which these Regulations come into force; and (c) cables, if they remain in place on the day on which these Regulations come into force. |
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Requirement to store |
19. (1) A person who owns, controls or possesses PCBs or products containing PCBs that are not processed daily or used shall, within 30 days after the day on which those PCBs or products are no longer processed or used or within 30 days after the day on which these Regulations come into force, whichever is later, either (a) send them for destruction to an authorized facility that is authorized for that purpose; or (b) store them at a PCB storage site for the period during which they are not processed daily or used. |
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Remote from or no access to roadway |
(2) Despite subsection (1), if the PCBs or products containing PCBs are remote from a roadway system or if there is no access to a roadway system, the person who owns, controls or possesses the PCBs or products may store them at a PCB storage site as soon as feasible but no later than one year after the day on which they are not processed daily or used or one year after the day on which these Regulations come into force, whichever is later. That person shall use best management practices for them from the time that they cease to be processed daily or used until the time that they are stored at a PCB storage site. |
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Prohibition against storage |
20. (1) Effective one year after the day on which these Regulations come into force, no person shall store PCBs or products containing PCBs at the following plants or facilities or on the land on which those plants or facilities are located and within 100 m of them: (a) a drinking water treatment plant or a food or feed processing plant; or (b) a child care facility, preschool, primary school, secondary school, hospital, or senior citizens’ care facility. |
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Light ballasts |
(2) Subsection (1) does not apply to light ballasts. |
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Maximum storage periods |
21. (1) Despite any other provision in these Regulations and subject to section 22, no person shall store PCBs or products containing PCBs, other than those referred to in section 23, beyond the following time limits: (a) one year, beginning on the day on which their use is no longer permitted under these Regulations or the day on which they are no longer processed daily or used, whichever is sooner, if the PCBs or products are stored at a facility that is not referred to in paragraph (1)(b) or (c); (b) one year, if the PCBs or products are stored at an authorized facility that is a transfer site; and (c) two years, if the PCBs or products are stored at an authorized facility that is authorized to destroy them. |
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Transfer sites |
(2) If the PCBs or products containing PCBs are sent from one transfer site to another, the period referred to in paragraph (1)(b) begins when they are received at the first transfer site. |
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Destruction |
(3) The owner or operator of the facility referred to in paragraph (1)(a) or (b) shall send the PCBs or products containing PCBs for destruction to an authorized facility that is authorized for that purpose within the time limit set out in those paragraphs. |
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Exceptions to maximum storage periods |
22. (1) Section 21 does not apply to the storage of (a) liquids referred to in subsection 15(2) or for which an extension has been granted under subsection 17; or (b) solids and liquids containing PCBs in a concentration of 50 mg/kg or more resulting from environmental restoration work and stored on site for the duration of the work, if the requirements set out in subsections (2) and (3) are complied with. |
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Information to be provided |
(2) The owner of the land where the solids and liquids referred to in paragraph (1)(b) are located shall submit to the Minister at least 30 days before the storage of the solids or liquids or within 30 days after the day on which these Regulations come into force, whichever is later, the following information: (a) the civic address of the restoration work site or if there is no civic address, the location using the Global Positioning System; (b) the date of commencement of the restoration work; (c) the anticipated date of completion of the restoration work; and (d) the anticipated date of the end of storage of the solids or liquids. |
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Changes to information |
(3) The person referred to in subsection (2) shall notify the Minister in writing of the changes to be made at least 30 days before making any changes to the information provided under that subsection. |
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PCBs or products containing PCBs stored at the coming into force |
23. The person who owns PCBs or products containing PCBs, other than liquids for which an extension has been granted under section 17, that are stored on the day on which these Regulations come into force shall send them no later than December 31, 2009 for destruction to an authorized facility that is authorized for that purpose. |
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PCB storage site |
24. PCBs or products containing PCBs shall be stored at a site that is (a) a building, room, shipping container or other enclosed structure; or (b) an area that is enclosed by a woven mesh wire fence or any other fence or wall with similar security characteristics, and the fence or wall shall be at least 1.83 m high. |
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Storage requirements |
25. The owner or operator of a PCB storage site shall (a) store all PCBs or products containing PCBs that are in liquid form in (i) sealed containers, other than drums, that are made of steel or other metals that provide sufficient durability and strength to prevent those PCBs or products from being affected by the weather or released, or (ii) drums that are (A) of a capacity not greater than 205 L, (B) a closed-head double-bung drum made of steel having a gauge of 16 or heavier, and (C) painted or treated to prevent rusting; (b) store all PCBs or products containing PCBs that are in solid form in (i) containers, other than drums, that are made of steel or other materials that provide sufficient durability and strength to prevent those PCBs or products from being affected by the weather or released, or (ii) drums that are (A) of a capacity not greater than 205 L, (B) made of steel having a gauge of 18 or heavier, (C) equipped with a securely attached, removable steel lid and a gasket made of material that is resistant to the PCBs or the products containing PCBs that are stored in the drums, and (D) painted or treated to prevent rusting; (c) store equipment containing PCB liquids in (i) containers, other than drums, that are made of steel or other materials that provide sufficient durability and strength to prevent the equipment from being affected by the weather and to prevent any PCB liquid that leaks from the equipment from being released, or (ii) drums described in subparagraph (b)(ii); (d) store all equipment that is not in a container, other than drained equipment, if that equipment contains PCB liquid, and all containers of PCB liquid, on a floor or surface that is made of steel, concrete or any other similar durable material and that is constructed with curbing or sides that are capable of containing (i) if one piece of equipment or one container is being stored, 125% of the volume of the PCB liquid in the equipment or container, and (ii) if more than one piece of equipment or more than one container is being stored, the greater of twice the volume of the PCB liquid in the largest piece of equipment or the largest container and 25% of the volume of all the PCB liquid stored on the floor or surface; |
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(f) ensure that all floor drains, sumps or other openings in the floor or surface referred to in paragraph (d) are (i) closed and sealed to prevent the release of liquids, or (ii) connected to a drainage system suitable for liquid dangerous goods that terminates at a location where any spilled liquids will be contained and recovered and where the spilled liquids will not create a fire hazard or a risk to public health or safety; (g) place on skids or pallets all equipment containing PCBs and containers of PCBs or products containing PCBs that are not permanently secured to the floor or a surface; (h) stack containers of PCBs and products containing PCBs, other than drums, only if the containers are designed for stacking, and stack containers of PCB liquid not more than two containers high; (i) if drums containing PCBs or products containing PCBs are stacked, separate the drums from each other with pallets and, in the case of drums of PCB liquid, stack the drums not more than two drums high; (j) store equipment containing PCBs, and containers of PCBs or products containing PCBs, in a manner that makes them accessible for inspection; |
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(l) store PCBs or products containing PCBs together, and separate them from other stored materials; (m) if reasonably practicable, equip any indoor PCB storage site having a mechanical exhaust system with heat or smoke sensory controls that stop the fan and close the intake and exhaust dampers in the event of a fire; (n) if equipment or containers of PCB liquid are stored outdoors, cover all PCB equipment that is not in a container, other than drained equipment, if that equipment contains PCB liquid, and all containers of PCB liquid, with a weatherproof roof or barrier that protects the equipment and containers and prevents rain or snow from entering the curbing and the sides of the floor and the surface under them; and (o) ensure that all drained PCB equipment and all containers of any PCB solid or PCB equipment are structurally sound and weatherproof if stored outdoors. |
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Access to PCB storage site |
26. The owner or operator of a PCB storage site shall keep all points of access to the PCB storage site locked or guarded. |
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Inspection and maintenance of a PCB storage site |
27. The owner or operator of a PCB storage site shall (a) inspect all floors, curbing, sides, drains, drainage systems, weatherproof roofs and barriers, fences and walls of the PCB storage site, any fire alarm system, fire extinguishers and fire suppression system and all equipment containing PCBs, containers used for the storage of PCBs or products containing PCBs and materials for clean-up at the PCB storage site (i) each month, (ii) at intervals of more than one month, if the Minister, on the written request of the owner or operator, determines that it is not reasonably practicable to inspect the site each month, due to its remote location, or (iii) at intervals of less than one month, if more frequent inspections are necessary for the safe operation of the site; and (b) keep in good condition and, if damaged, immediately repair or replace the floors, curbing, sides, drains, drainage systems, weatherproof roofs or barriers, fences, walls, fire alarm system, fire extinguishers, fire suppression system, equipment containing PCBs and containers and immediately clean up any contaminated area. |
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Fire protection and emergency procedures |
28. (1) The owner or operator of a PCB storage site shall (a) develop and implement at the PCB storage site a fire protection and emergency procedures plan and shall (i) update and test the plan once per year, (ii) keep a written copy of the latest plan at the PCB storage site and another at their principal place of business, and (iii) make the latest plan readily available to persons who implement the plan and to the local fire department or to the local officer appointed by the provincial Fire Marshall if there is no local fire department or to any other local authority responsible for fire protection; (b) ensure that all employees who are authorized to enter the PCB storage site are familiar with the contents of the latest plan; (c) equip the indoor PCB storage site with a fully operative fire alarm system that is maintained, inspected and tested in accordance with articles 6.3.1.1 and 6.3.1.2 of the National Fire Code and with (i) portable fire extinguishers that are selected and installed in accordance with article 2.1.5.1 of the National Fire Code and maintained, inspected and tested in accordance with article 6.2.1.1 of that Code, or (ii) an automatic fire suppression system that meets the requirements of article 3.2.7.9 of the National Fire Code, if required; (d) keep a copy of the records referred to in sections 43 and 44 at the PCB storage site and make a copy readily available to the local fire department and, if there is no local fire department, to the local officer appointed by the provincial Fire Marshall or to any other local authority responsible for fire protection; (e) ensure that all employees who are authorized to enter the PCB storage site are made aware of the hazards of PCBs and are familiar with the use of protective equipment and clothing and the clean-up procedures referred to in the Guidelines for the Management of Wastes Containing Polychlorinated Biphenyls (PCBs), CCME-TS/WM-TRE008, September 1989, as amended from time to time, issued by the Canadian Council of Ministers of the Environment; and (f) store absorbent materials for clean-up near the PCB storage site. |
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Shipping containers |
(2) Despite paragraph (1)(c), if the indoor PCB storage site is a shipping container, the owner or operator of the site does not have to equip that site with a fire alarm system. |
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LABELLING, REPORTS AND RECORDS |
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LABELLING |
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Equipment and liquids used for their servicing |
29. (1) The owner of equipment referred to in section 16, other than equipment for which an extension has been applied for under section 17, or of a liquid used in its servicing referred to in subsection 15(2) shall affix a label in a readily visible location on the equipment or on the container of the liquid, no later than 30 days after the day on which it ceases to be used. |
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Equipment for which extension applied for |
(2) The owner of equipment for which an extension has been applied under section 17 shall affix a label in a readily visible location on the equipment. |
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Exceptions |
(3) Subsection (1) does not apply to (a) equipment or containers of liquids that bear a label on the day on which these Regulations come into force that indicates the presence of PCBs; and (b) equipment that is too small, including light ballasts, to bear the label referred to in subsection (4), until the day on which they cease to be used and are placed in a container that bears the label. |
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Description |
(4) The label must (a) state “ATTENTION — contains 50 mg/kg or more of PCBs / contient 50 mg/kg ou plus de BPC” in black lettering on a white background, in a font size of no less than 36 points; (b) measure at least 150 mm by 150 mm or at least 76 mm by 76 mm in the case of capacitors; and (c) in the case of equipment for which an extension is applied for under section 17, state a unique identification number. |
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Cables and pipelines |
30. (1) The owner of a cable, a pipeline or equipment associated with a pipeline, referred to in paragraphs 14(1)(a) and (b), containing PCBs in a concentration of 50 mg/kg or more that is in a room, a tunnel or a facility shall either (a) affix the label in the form set out in subsection 29(4) in a readily visible location on a part of the cable, pipeline or associated equipment that is accessible; or (b) place a notice in a readily visible location at the entrance of the room, tunnel or facility that states the information set out in paragraph 29(4)(a) and measures at least 150 mm by 150 mm. |
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If dismantled |
(2) If a part of the cable, pipeline or associated equipment is dismantled, the owner of the cable, pipeline or associated equipment shall affix on each dismantled part the label in the form set out in subsection 29(4), no later than 30 days after the day on which it is dismantled. |
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A facility other than transfer site or destruction facility |
31. (1) The owner or operator of a PCB storage site, other than the PCB storage site of an authorized facility that is a transfer site or that is authorized to destroy PCBs, shall affix a label in a readily visible location on any product containing PCBs in a concentration of 50 mg/kg or more and that are stored at the PCB storage site, which (a) is in the form referred to in subsection 29(4); and (b) states “Date of Commencement of Storage” and the date on which the storage begins. |
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Transfer site or destruction facility |
(2) The owner or operator of the PCB storage site of an authorized facility that is a transfer site or that is authorized to destroy PCBs shall affix a label in the form set out in subsection 29(4) in a readily visible location on any container that is a fixed tank and that is used at the facility for the storage of PCBs or products containing PCBs in a concentration of 50 mg/kg or more. |
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Notice |
(3) The owner or operator of a PCB storage site shall place a notice in a readily visible location at the entrance of the site that states the information set out in paragraph 29(4)(a) and that measures at least 150 mm by 150 mm. |
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Exception |
(4) Subsections (1) and (2) do not apply if the product or the container bear a label on the day on which these Regulations come into force that indicates the presence of PCBs and that states “Date of Commencement of Storage” and the date on which the storage begins. |
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Retention of labels |
32. The person who is required to affix a label on a product or container in accordance with sections 29 to 31 shall ensure that it bears that label for the duration that the person possesses the product or container. |
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REPORTS |
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End of use of equipment and liquids — 2009 |
33. (1) The owner of the equipment referred to in paragraph 16(1)(a) and subparagraph 16(1)(b)(i), other than the equipment for which an extension is granted by the Minister in accordance with section 17, or the liquids referred to in subsection 15(2) shall prepare a report that is current to December 31 of each calendar year in which the person owns the equipment or the liquids and that contains the following information: (a) the name, civic and mailing addresses, telephone number, fax number, if any, and e-mail address, if any, of the owner and any person authorized to act on the owner’s behalf; (b) the civic addresses of the facilities where the equipment and liquids are located or, if there is no civic address, their location using the owner’s site identification system; (c) the quantity of the liquids containing PCBs in the equipment and of the liquids, expressed in litres, (i) that are in use on December 31, (ii) that are stored on December 31 at the person’s PCB storage site, (iii) that are sent, in that calendar year, to an authorized facility that is a transfer site, (iv) that are sent, in that calendar year, to an authorized facility that is authorized to destroy them, or (v) that are destroyed in that calendar year; and (d) a certification that the information is accurate and complete and that is dated and signed by the owner or by a person authorized to act on the owner’s behalf. |
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Equipment and liquids for which extension granted |
(2) The owner of the equipment referred to in paragraph 16(1)(a) and subparagraph 16(1)(b)(i) or the liquids referred to in subsection 15(2) for which an extension is granted by the Minister in accordance with section 17 shall prepare a report that is current to December 31 of each calendar year in which the person owns the equipment or the liquids and that contains the following information for each piece of equipment or container of liquid: (a) the information required under paragraphs (1)(a) and (d); (b) the unique identification number that is on the label referred to in paragraph 29(4)(c); (c) the civic address, function and technical description of the facility where the equipment or container of liquid is located or, if there is no civic address, its location using the owner’s site identification system; (d) the progress on the plan’s implementation and the timelines for ending the use of the equipment; (e) the measures taken to minimize or eliminate any harmful effect of the PCBs in the equipment on the environment and on human health; and (f) the findings of the inspections of the equipment. |
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End of use of equipment — 2025 |
(3) The owner of the equipment referred to in subparagraph 16(1)(b)(ii) and subsection 16(2) shall prepare a report that is current to December 31 of each calendar year in which the person owns the equipment and that contains the following information: (a) the information required under paragraphs (1)(a), (b) and (d); and (b) the quantity, expressed in litres, of liquids containing PCBs in the equipment, and the concentration, expressed in mg/kg, of the PCBs (i) that are stored on December 31 at the person’s PCB storage site, (ii) that are sent, in that calendar year, to an authorized facility that is a transfer site, (iii) that are sent, in that calendar year, to an authorized facility that is authorized to destroy them, or (iv) that are destroyed in that calendar year. |
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Research |
34. The person who offers for sale, sells, processes or uses PCBs or products containing PCBs for the purpose of research in accordance with section 8 shall prepare a report that is current to December 31 in each calendar year in which the person offers for sale, sells, processes or uses those PCBs or products and that contains the following information: (a) the name, civic and mailing addresses, telephone number, fax number, if any, and e-mail address, if any, of the person and of any person authorized to act on that person’s behalf; (b) an indication of whether the person offers for sale, sells, processes or uses the PCBs or products; (c) the quantity of the PCBs or of the products containing PCBs that are offered for sale, sold, processed or used in that calendar year; and (d) a certification that the information is accurate and complete and that is dated and signed by the person or by a person authorized to act on their behalf. |
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Colouring pigment |
35. The person who manufactures, exports or imports colouring pigment in accordance with section 11 shall prepare a report that is current to December 31 in each calendar year in which the person manufactures, imports or exports the colouring pigment and that contains the following information: (a) the name, civic and mailing addresses, telephone number, fax number, if any, and e-mail address, if any, of the person and of any person authorized to act on that person’s behalf; (b) an indication of whether the person manufactures, exports or imports colouring pigment; (c) the quantity of colouring pigment, expressed in kilograms, the maximum concentration of PCBs in the colouring pigment, expressed in mg/kg, and the average annual concentration of PCBs in the colouring pigment, expressed in mg/kg, that is manufactured, imported or exported in that calendar year; (d) in the case of importing, the name, telephone number and civic and mailing addresses of the person from whom the colouring pigment is imported and, in the case of exporting, the name, telephone number and civic and mailing addresses of the person to whom the colouring pigment is exported; and (e) a certification that the information is accurate and complete and that is dated and signed by the person or by a person authorized to act on their behalf. |
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Solid products containing PCBs |
36. The person who manufactures solid products containing PCBs in accordance with section 13 shall prepare a report that is current to December 31 in each calendar year in which the person manufactures the products and that contains the following information: (a) the name, civic and mailing addresses, telephone number, fax number, if any, and e-mail address, if any, of the person and of any person authorized to act on that person’s behalf; (b) the quantity of solid products manufactured in that calendar year, expressed in kilograms, and the maximum concentration and average concentration of PCBs in the solid products, expressed in mg/kg, for that calendar year; (c) the name, telephone number and civic and mailing addresses of the person to whom the manufacturer sells the products; and (d) a certification that the information is accurate and complete and that is dated and signed by the person or by a person authorized to act on their behalf. |
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Stored PCBs or products — PCB concentration of 50 mg/kg or more |
37. The person who owns and stores PCBs or products containing PCBs in a concentration of 50 mg/kg or more, other than the equipment and liquids referred to in section 33, shall prepare a report that is current to December 31 in each calendar year in which the person stores the PCBs or products at their PCB storage site and that contains the following information: (a) the name, civic and mailing addresses, telephone number, fax number, if any, and e-mail address, if any, of the owner and of any person authorized to act on the owner’s behalf; (b) the civic addresses of the PCB storage sites where the PCBs or products are located, or if there is no civic address, their location using the owner’s site identification system; (c) the quantity of liquids containing PCBs in the products, expressed in litres, and the quantity of solids containing PCBs in the products, expressed in kilograms, and the concentration of PCBs in the liquids and the solids, expressed in mg/kg (i) that are stored on December 31 at the person’s PCB storage site, (ii) that are sent, in that calendar year, to an authorized facility that is a transfer site, (iii) that are sent, in that calendar year, to an authorized facility that is authorized to destroy them, or (iv) that are destroyed in that calendar year; and (d) a certification that the information is accurate and complete and that is dated and signed by the owner of the PCBs or products containing PCBs or by a person authorized to act on the owner’s behalf. |
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Stored PCBs or products — transfer site or destruction facility |
38. The owner of an authorized facility that is a transfer site or that is authorized to destroy PCBs or products containing PCBs and who stores them at their PCB storage site, other than the owner referred to in section 37, shall prepare a report that is current to December 31 in each calendar year and that contains the following information: (a) the name, civic and mailing addresses, telephone number, fax number, if any, and e-mail address, if any, of the owner and of any person authorized to act on the owner’s behalf; (b) the civic addresses of the sites where the PCBs or products containing PCBs are stored, or if there is no civic address, the location of the sites using the owner’s site identification system; (c) the quantity of liquids containing PCBs in the products, expressed in litres, or the quantity of solids containing PCBs in the products, expressed in kilograms, and the concentration of the PCBs in the liquids and the solids, expressed in mg/kg (i) that are stored on December 31 at the owner’s PCB storage site, (ii) that are sent, in that calendar year, to an authorized facility that is a transfer site, (iii) that are sent, in that calendar year, to an authorized facility that is authorized to destroy them, or (iv) that are destroyed in that calendar year; and (d) a certification that the information is accurate and complete and that is dated and signed by the owner of the authorized facility or by a person authorized to act on the owner’s behalf. |
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Date of submission of report |
39. (1) The person who is required to prepare a report in accordance with subsection 33(1) or (2) and with any of sections 34 to 38 shall submit it to the Minister on or before March 31 of the year following the calendar year for which the report is made. |
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Report made under subsection 33(3) |
(2) The person who is required to prepare a report in accordance with subsection 33(3) shall submit it to the Minister (a) on or before March 31, 2010 for reports that are current to December 31 of the year that these Regulations come into force up to the year 2009; (b) on or before March 31, 2014 for reports that are current to December 31 of each of the years 2010 to 2013; (c) on or before March 31, 2018 for reports that are current to December 31 of each of the years 2014 to 2017; (d) on or before March 31, 2022 for reports that are current to December 31 of each of the years 2018 to 2021; (e) on or before March 31, 2026 for reports that are current to December 31 of each of the years 2022 to 2025; (f) on or before March 31, 2027 for reports that are current to December 31 of the year 2026; and (g) on or before March 31, 2030 for reports that are current to December 31 of each of the years 2027 to 2029. |
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Release into the environment |
40. (1) For the purposes of paragraph 95(1)(a) of the Act, where there occurs or is a likelihood of a release into the environment of PCBs in contravention of section 5, the person who is designated to be provided with a written report is the Manager of Inspection Program, Environmental Enforcement Division, Enforcement Branch of the Department of the Environment in the region where the release occurs or is likely to occur. |
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Contents |
(2) The report shall include the following information: (a) the name, civic and mailing addresses and telephone number of the person who owns or has the charge, management or control of the PCBs that are released into the environment; (b) the date, time and location of the release; (c) a description of the source of the release; and (d) the quantity of liquids containing PCBs released, expressed in litres, the quantity of solids containing PCBs released, expressed in kilograms, and the concentration of PCBs in the liquids and the solids that are released, expressed in mg/kg. |
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Retention |
41. Any person who is required to submit a report under these Regulations shall keep a copy of the report at their principal place of business in Canada for at least five years after the day on which the report is submitted. |
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Method of submission |
42. Each report referred to in sections 33 to 38 shall be submitted electronically in the format provided by the Department of the Environment, but the report shall be submitted in writing if (a) no such format is provided; or (b) it is, owing to circumstances beyond the control of the person required to submit the report, impracticable to submit the report electronically in the format provided. |
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Records for permitted activities |
43. The following persons shall maintain records that demonstrate that they manufacture, process, use, sell, offer for sale, store, import or export PCBs or products containing PCBs in accordance with the Act and these Regulations: (a) the owner of PCBs or products containing PCBs; (b) the person who is engaged in any of these activities; and (c) the owner or operator of a PCB storage site. |
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Inspection record |
44. (1) The owner or operator of a PCB storage site shall maintain a record of all inspections conducted at the PCB storage site under paragraph 27(a) (a) listing all items that are inspected; (b) describing any deficiency found; (c) setting out the measures taken to remedy the deficiency; and (d) specifying the dates of the inspections and the names of the inspectors. |
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Owner of equipment — extension |
(2) The owner of equipment for which an extension of the end-of-use date is applied under section 17 shall maintain a record of all inspections conducted on the equipment that contains the information set out in paragraphs (1)(a) to (d). |
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Retention of records |
45. The person who is required to maintain a record under sections 43 and 44 shall retain it at their principal place of business in Canada or at the place where they conduct the activity for at least five years (a) after the destruction of the PCBs or the products containing PCBs that are the subject of the record, in the case of the owner of PCBs or products containing PCBs or the owner or operator of the PCB storage site where the PCBs or products containing PCBs are stored; or (b) after the completion of an activity referred to in section 43, in the case of the person who is engaged in that activity. |
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REPEALS AND COMING INTO FORCE |
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REPEALS |
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Repeal |
46. The Chlorobiphenyls Regulations (see footnote 1) are repealed. |
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Repeal |
47. The Storage of PCB Material Regulations (see footnote 2) are repealed. |
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COMING INTO FORCE |
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Coming into force |
48. These Regulations come into force on the day on which they are registered. |
REGULATORY IMPACT
ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Executive Summary
Issue: Polychlorinated biphenyls (PCBs) are considered to be a threat to both human health and the environment and are slated for virtual elimination. Polychlorinated biphenyls were imported into Canada mostly for use in dielectric fluids to cool and insulate electrical transformers and capacitors. They are also present in a large number of consumer, commercial and industrial products manufactured or imported before 1977. In Canada, PCBs in use and in storage remain the major source of releases into the environment.
A number of regulations to manage the various aspects of PCB use, release, transport, storage and destruction are currently in place. However, these regulations allow PCBs to continue to remain in use and in storage indefinitely. Voluntary measures by industry, while achieving some progress towards reductions in PCB inventories, have not been successful in eliminating their use and storage. Due to the threat posed by PCBs and the legally binding requirements of international agreements to which Canada is a signatory, it is necessary to expedite the removal of PCBs in use and in storage.
Description: The PCB Regulations (the Regulations) set specific deadlines for ending the use of PCBs in concentrations at or above 50 mg/kg, eliminating all PCBs and equipment containing PCBs currently in storage and limiting the period of time PCBs can be stored before being destroyed. These requirements, together with the more stringent release limits, will further reduce releases of PCBs into the environment. The labelling and reporting requirements for PCBs provide the necessary information to monitor progress towards end-of-use targets. The Regulations also establish sound practices for the better management of the remaining PCBs in use (i.e. those with content of less than 50 mg/kg), until their eventual elimination, to prevent contamination of dielectric fluids and dispersion of PCBs in small quantities into other liquids.
It is expected that the deadlines for ending the use and storage of PCBs will result in the removal of 90% of the PCBs still in use and 100% of the PCBs currently in storage by the end of 2009. The remaining PCBs, comprising equipment in use containing low level concentrations of PCBs (i.e. less than 500 mg/kg) will be eliminated by 2025.
The Chemicals Management Plan (CMP) (see footnote 3) announced in December 2006, is part of the government’s comprehensive environmental agenda. By prescribing deadlines for the elimination of PCBs, the Regulations reiterate the Government of Canada’s commitment to safely manage chemical substances including Chemical Substances of Interest to Canadians, (see footnote 4) such as PCBs.
Cost-benefit statement:
The Regulations will result in an overall net benefit to Canadians. Taking only quantifiable impacts into account, costs exceed benefits by $47.50 million over 25 years. However, this is expected to be more than offset by non-quantifiable human health and environmental benefits, including improvements to human health through reductions in the incidence of immune system deficiency, neurological impairment, developmental impairment, fatal and non-fatal cancers; and benefits to the environment through reduced species loss and changes to ecosystem balances.
The Regulations will reduce environmental releases of pure PCBs by approximately 1 726 kg (or 83%) over 25 years or an average of 69.03 kg per year. The quantified, discounted benefits associated with these reductions are estimated to be $317.19 million over 25 years, including a net reduction in costs of $165.98 million associated with fewer clean-ups of spills and fires involving PCBs. Benefits associated with the use of natural resources in Canada (e.g. due to reduced contamination of fish in sport fisheries) are estimated to be $151.21 million.
The discounted cost of the Regulations is estimated to be $364.69 million over a 25-year period including a cost to industry of $358.14 million and federal government costs for enforcement and compliance promotion estimated at $6.55 million. Electric utilities are likely to bear the largest share of these incremental costs as approximately 29% of the PCBs and equipment containing PCBs are owned by them.
Business and consumer impacts: In addition to costs for decommissioning and destroying PCBs and products containing PCBs, industry will incur some administrative costs associated with testing, labelling and reporting requirements. These administrative requirements represent a relatively small share of the incremental cost at 7% (or $25.23 million) of the total cost to industry over a 25-year period.
The impact on consumers is difficult to estimate as this would be determined by the ability of the sector affected by the Regulations to pass on the incremental costs to their consumers in the form of higher prices.
Domestic and international coordination and cooperation: Since 2000, extensive consultations on the proposed revisions to existing regulations on the use and storage of PCBs have been organized, including public consultations on the proposed Regulations published in the Canada Gazette, Part I in 2006. Nearly 6 000 stakeholders participated in these consultations, including representatives from Canadian industry, industry associations, provincial and territorial governments and environmental non-governmental profit organizations (ENGOs). The consultations found broad support for the Regulations among the various stakeholders. One provincial utility, while supporting the Regulations, expressed concern that the estimated incremental costs to industry had not fully accounted for their costs. Subsequently, additional cost information was provided to Environment Canada by the utility and is now taken into account in the incremental cost and benefit analysis of the Regulations.
Canada is a signatory to two international conventions and an agreement under the North American Free Trade Agreement (NAFTA) to eliminate the use and storage of PCBs. These Regulations will help ensure that Canada meets its international commitments in this area. As the negotiations and ratification of these agreements have been completed in accordance with established processes, no additional coordination activities were undertaken in connection with the present Regulations.
Performance measurement and evaluation plan: The evaluation of the Regulations will be based on the level of non-compliance reporting through the associated enforcement activities. The reduction in PCBs and products containing PCBs in use and in storage by the deadlines specified in the Regulations will be measured against the requirements of the Regulations by means of mandatory reporting by those subject to the Regulations. The determination of whether additional action is needed will be based on the measurement and evaluation of these indicators.
The Regulations will be evaluated as part of the evaluation of the Waste Reduction and Management Program risk management instruments. Evaluations will be scheduled as per the department’s evaluation planning cycle.
Issue
Polychlorinated biphenyls (PCBs) are synthetic compounds that became popular for industrial uses because of their stable chemical properties. Polychlorinated biphenyls were imported into Canada mostly for use in dielectric fluids to cool and insulate electrical transformers and capacitors until 1977. Polychlorinated biphenyls have also been used in heat-transfer and hydraulic systems and as plasticizers. A large number of products manufactured or imported before 1977 also contain PCBs, including some electrical and communication components, paints, plastics, rubbers, lubricants, wax extenders, adhesives, and other materials that required durability and resistance to thermal- and photo-reactive processes and weathering for industrial applications.
PCBs are known to be very persistent both in environmental media and in human and animal tissue. Available epidemiological evidence has not demonstrated an association between exposure to PCBs and the incidence of disease in the human population. However, the data does raise concerns regarding the potential carcinogenicity of PCBs. Taken together, the available data suggests that PCBs are probable human carcinogens. While persistence is well-documented, little is known about the health impacts that results from long-term exposure to low concentrations of PCBs. Most of what is known about health risks of short-term exposure to PCBs is based on observations of people who were exposed briefly to high levels as a result of accidents or job-related activities. These include nervous system disorders, muscle weaknesses and spasms. Based on scientific evidence, Environment Canada concluded (see footnote 5) that PCBs meet the criteria for Track 1 substances — i.e. they are toxic substances that result predominantly from human activity and are persistent and bioaccumulative in the environment. As required under the 1995 Government of Canada Toxic Substances Management Policy, (see footnote 6) virtual elimination from the environment of Track 1 substances is the main objective of the present Regulations.
As a result of the environmental and health concerns associated with PCBs, the Government of Canada has adopted a number of regulations to minimize exposure to, and environmental releases of, PCBs since 1977. These measures have been put in place to manage the various aspects of PCB manufacture, import, export, sale, storage, transportation, destruction and releases into the environment. In addition, Canada is a signatory to the Stockholm Convention and the United Nations Economic Commission for Europe’s Persistent Organic Pollutants Protocol. Both of these agreements have legally binding requirements for eliminating the use and release of PCBs. Canada has also committed to eliminating releases of PCB into the environment under the North American Free Trade Agreement Commission for Economic Cooperation’s North American Regional Action Plan for PCBs. These international agreements require the elimination of PCBs within a specified period of time.
Under the current Regulations, owners of in-use PCBs and equipment containing PCBs may continue to use these until the end of their service life. There is little incentive to end the use of equipment containing PCBs, as such equipment is durable and has a service life of up to 50 years that can be extended by up to 30 to 50% through retrofitting. Prescribing deadlines for ending the use of PCBs and eliminating long-term PCBs and equipment containing PCBs in storage will help to accelerate progress toward meeting Canadian environmental and health objectives and meeting national and international obligations.
A full assessment of the risks associated with PCBs can be found at http://www.ec.gc.ca/wmd-dgd/default.asp?lang=En&n= 97B21DD4-1.
Objectives
The purpose of the PCB Regulations (the Regulations), to be adopted under subsection 93(1) and section 97 of the CEPA 1999, is to improve the protection of Canada’s environment and the health of Canadians from the risks posed by the use, storage and releases of PCBs, and to accelerate their elimination. The Regulations also implement Canada’s national and international commitments on the use (including exports and imports), storage and elimination of PCBs. The Regulations also reiterate the Government of Canada’s commitment to safely manage chemical substances, such as PCBs, included in the Chemical Substances of Interest to Canadians.
It is expected that the deadlines for ending the use and storage of PCBs will result in the removal of most of PCBs still in use and of all the PCBs currently in storage by the end of 2009. The remaining PCBs in use, which are primarily comprised of low level PCBs (i.e. less than 500 mg/kg) will be decommissioned by 2025 for elimination. The reduction in environmental releases of pure PCBs is estimated to be 1726 kg or 83% over 25 years.
Description
The Regulations
Some of the requirements of the Regulations have been revised since their publication in the Canada Gazette, Part I in response to comments by stakeholders, to clarify the regulatory requirements and to align the regulatory requirements with international actions. The Regulations are divided into four parts and the key elements are summarized below:
Part 1 of the Regulations
Part 1 sets out the general requirements applicable to all parts of the Regulations including definitions, sampling and analysis, application, non-application, sale of property and compliance.
Part 2 of the Regulations
Part 2 establishes a prohibition on the release, manufacture, process, import, export, sale, offer for sale and use of PCBs and products that contain a certain concentration of PCBs, exceptions to these prohibitions and the duration of these exceptions.
End-of-use deadline
The key element of the Regulations remains the prescribed end-of-use deadlines for liquids containing PCBs and specified equipment containing PCBs that are currently in use. The following summarizes the end-of-use deadlines, which are in accordance with Canada’s international commitments:
The proposed Regulations included a deadline of 2014 for PCBs in concentration of 50-500 mg/kg at all other locations which has been extended to 2025, in response to comments from stakeholders. Consequently, the “Cost-Benefit Analysis” section of the Regulatory Impact Analysis Statement (RIAS) has been revised to reflect this change.
Extensions may be granted for the 2009 end-of-use deadline up to December 31, 2014, on a case by case basis and upon the demonstration that conditions set out in the Regulations have been met. The intent of this provision is to allow industry with some flexibility for equipment that cannot be replaced by the deadline due to technical constraints for engineered-to-order equipment or if the facility is scheduled for permanent closure before 2014.
Prohibitions
The following prohibitions involving PCBs and products containing PCBs are specified in the Regulations:
Despite the prohibitions mentioned above, PCBs or products containing PCBs are permitted under conditions as specified in the Regulations (for example: in laboratory analysis and research, in communication, navigation or electronic control equipment or cables of aircraft, ships, trains and other vehicles, and in colouring pigments).
Part 3 of the Regulations
Part 3 sets out the storage requirements for PCBs and products containing PCBs that are not processed daily or used. This part of the Regulations requires the removal from storage by a specified date and the elimination of PCBs and products containing PCBs that are already in storage. It also sets out the maximum storage time for PCBs and products containing PCBs that will be put into storage after the Regulations come into force.
End-of-storage deadline
The key element in Part 3 is the specified end-of-storage dates and storage time periods for PCBs and products containing PCBs with a concentration of 50 mg/kg or more. The following is a summary of the deadlines:
In the Regulations, the storage period allowed at authorized destruction facilities has been extended from one to two years in response to stakeholder comments. As a result the “Cost-Benefit Analysis” section of the RIAS has also been revised.
Application and storage requirements
The application criteria for Part 3 of the Regulations remain the same as in the current Storage of PCB Material Regulations, except for the addition of processing to the use criteria.
Storage requirements in the Regulations include a maximum time period of 30 days to put into storage PCBs that are not in use or are not processed daily. Exemptions are provided for practical reasons to pipelines and cables that are permanently out of use but remain in place.
This Part also prescribes storage practices for preventing spills, leaks and other releases from stored products containing PCBs. Maintenance and monthly inspections of the PCB storage site and stored products are also prescribed.
Part 4 of the Regulations
Part 4 sets out the labelling, record keeping and reporting requirements for PCBs and products containing PCBs in a concentration of 50mg/kg or more that may continue to be used, processed or that are being stored until specified dates or for specified time periods. It also provides for the reporting of PCB releases above certain prescribed concentrations and quantities.
Labels are required on equipment and containers that are taken out of use, on products put into storage and products containing 50 mg/kg or more of PCBs. Labels are also required on fixed tanks used at transfer sites or destruction facilities for the storage of PCBs. There are some exceptions or alternatives to labelling requirements based on practical considerations for equipment in use already labelled, or cables and pipelines.
Reporting requirements include submission to the Minister of annual written reports summarizing the inventory of equipment containing PCBs in use and progress towards end-of-use deadlines and elimination. These annual reports are to be submitted by:
The inclusion of reporting requirements for transfer sites and destructions facilities, which were not covered by the proposed Regulations, have resulted in additional costs to these facilities. As a consequence, these incremental costs have now been included in the “Cost-Benefit Analysis” section of the RIAS.
Information available with the owners of PCBs and storage facilities on PCBs and equipment containing PCBs can be used for meeting record keeping requirements of the Regulations.
Annual reports submitted to the Minister and records demonstrating compliance to the Regulations are required to be retained for a period of at least five years.
The Regulations will come into force on the day on which they are registered.
Background
Between 1929 and 1977, approximately 1.2 million tonnes of PCBs were manufactured worldwide, with 635,000 tonnes produced in the United States (U.S.). All PCBs manufactured in North America were produced by the same company in the U.S. Although PCBs were never manufactured in Canada, they were widely used. During this period, approximately 40,000 tonnes of pure PCB were imported into Canada, mostly for use in dielectric fluids to cool and insulate electrical transformers and capacitors. Polychlorinated biphenyls have also been used in various other processes and products including heat-transfer, hydraulic systems, and plasticizers for industrial applications that were manufactured or imported before 1977.
From 1929 to the 1960s, there was little concern about the toxicity of PCBs. In 1966, however, scientists looking for evidence of dichlorodiphenyltrichloroethane (DDT) contamination discovered PCBs in the fatty tissues of birds in Sweden. Two years later, 1 200 people became ill in Yusho, Japan and 22 died, after eating rice oil that had been contaminated with PCBs from faulty equipment in a food processing plant. (see footnote 8) By 1972, sufficient scientific evidence existed to suggest that the toxic, persistent, and bioaccumulative properties of PCBs represented a serious hazard to both human health and the environment. (see footnote 9) In 1973, the Organisation for Economic Co-operation and Development (OECD) recommended member countries to restrict PCBs to specific uses. (see footnote 10)
In Canada, with the classification and listing of PCBs as toxic in 1976, the government of Canada has adopted a number of regulations to control various aspects of PCB use, manufacture, sale, import, export, transportation, storage and destruction. These management measures also contribute towards meeting Canada’s international commitments.
National context
The manufacture, process, import and offer for sale of PCBs have been prohibited in Canada since 1977 under the current Chlorobiphenyls Regulations. The Chlorobiphenyls Regulations also restrict the use of PCBs in specified equipment, if they have been manufactured in or imported into Canada prior to 1977. In 1985, the Chlorobiphenyls Regulations were revised to set allowable concentration limits in specified electrical equipment and allowable concentrations and quantities of releases into the environment.
Since 1988, the storage of PCBs has been controlled under the current Storage of PCB Material Regulations, which prescribe the manner in which wastes or equipments containing PCBs in a concentration of 50 mg/kg or more should be stored and managed in Canada. The Storage of PCB Material Regulations also prescribe storage site registration and labelling, as well as the reporting requirements for stored materials.
The handling and transport of wastes containing PCBs in a concentration of 50 mg/kg is controlled through the Export and Import of Hazardous Waste and Hazardous Recyclable Material Regulations, (2005) and the PCB Waste Export Regulations, (1996) under the Transportation of Dangerous Goods Act. However, some provinces do impose additional regulatory requirements. There are also other federal and/or provincial regulations which deal with the interprovincial and international movement of PCB waste, its management and destruction. The Federal Mobile PCB Treatment and Destruction Regulations, (1990), prescribes the approval process required for undertaking the treatment and destruction of PCBs on federal sites.
In response to the PCB end-of-use implementation strategy put forward by the Canadian Council of Resource and Environment Ministers (CCREM) (see footnote 11) in 1987, the industry entered into voluntary agreements with governments (federal and provincial). Under these agreements, the industry incorporated the end-of-use options for high level PCBs (greater than 500 mg/kg) in electrical equipment into their management plans. However, in retrospect, these voluntary agreements have been only partially successful in achieving the objectives of ending the use of PCBs in Canada.
In 1989, the Canadian Council of Ministers of the Environment (CCME) made a commitment to end the use of all PCBs in large transformers and high level PCB fluids, and to accelerate this end-of-use in sensitive locations such as schools, hospitals, and long-term care facilities. Also, in 1996, the CCME agreed to a Canada-wide ban on landfilling with wastes that contain a concentration of PCBs in excess of 50 mg/kg. These measures were taken to address the growing environmental and health concerns over PCBs.
More recently, the Chemicals Management Plan (CMP), announced in December 2006, commits to taking immediate action to regulate chemicals which are harmful to human health or to the environment. The CMP, which is part of the government’s comprehensive environmental agenda, encompasses the Government of Canada’s actions with respect to approximately 1 700 chemical substances. The Regulations demonstrate that, by regulating deadlines for the elimination of PCBs, the Government of Canada is reiterating its commitment to safely manage chemical substances including Chemical Substances of Interest to Canadians, such as PCBs.
As a consequence of the measures taken in the past 25 years to control and manage the different PCB-related activities, Canada’s overall inventory of PCBs has been declining over the years. Despite the restrictions on the use and storage of PCBs in the 1980s and 1990s, the decline in the use of equipment containing PCBs has been very slow. The decline in the quantity of PCBs in storage has also been fairly slow. Based on the data available for the 2005 National PCB Inventory, (see footnote 12) it is estimated that the PCBs and products containing PCBs in use and in storage have declined by approximately 12% between 1990 and 2005.
Canada’s international commitments
The United Nations Environment Programme’s (UNEP) Stockholm Convention on Persistent Organic Pollutants (see footnote 13) (POPs), a global treaty to protect human health and the environment from POPs, was adopted in 2001. Among other things, this Convention seeks the elimination or restriction of production and use of all POPs. It also seeks the continuing reduction and, where feasible, ultimate elimination of releases of unintentionally produced POPs into the environment. The management and disposal of stockpiles in a safe, efficient and environmentally sound manner is also required under the Convention.
The Stockholm Convention on POPs was ratified by Canada on May 23, 2001, and came into force in 2004. Parties to the Convention are required to make determined efforts to identify, label and remove from use, by 2025, equipment (see footnote 14) that contains PCBs in concentrations of:
Parties are also required to ensure that equipment containing PCBs in a concentration greater than 50 mg/kg are not exported or imported, except for the purpose of an environmentally sound waste management program.
Canada is also a signatory to the United Nations Economic Commission for Europe’s (UNECE) Persistent Organic Pollutants (POPs) Protocol (2003) to the 1979 Convention on the Long-Range Transboundary Air Pollution (LRTAP). Under the LRTAP Convention Canada made legally binding commitments to make determined efforts to remove from use equipment containing PCBs in volumes greater than 5 dm3 with a PCB concentration of 500 mg/kg or more, by the end of 2010. The LRTAP Convention also requires the destruction or decontamination in an environmentally sound manner of all PCB liquids in equipment of volumes greater than 5 dm3 with a concentration of 500 mg/kg or more or 50 mg/kg or more when PCBs are not in equipment by the end of 2015.
Although not legally binding, Canada has also made commitments under the North American Free Trade Agreement (NAFTA) Commission for Economic Cooperation’s (CEC) North American Regional Action Plan for PCBs (PCB NARAP, 1996). These commitments relate to the elimination of PCB releases into the environment from dispersive uses (see footnote 15) and non-dispersive uses of high concentration PCB liquids in equipment (see footnote 16) by December 31, 2007. The PCB NARAP also requires Parties to achieve the entire end-of-use of equipment containing PCBs in sensitive sites (defined as including hospitals, schools, senior citizen centers, food- and feed-processing plants) by 2000.
Profile of the industry sectors
The ownership of PCBs and equipment containing PCBs that are subject to the Regulations is primarily in the following industry sectors:
The quantities of PCBs have been calculated using the total net mass of pure PCBs in Canada multiplied by the percentage of PCBs reported by different industry sectors to Canadian Council of Resource and Environmental Ministers (CCREM). (see footnote 17) These percentage shares have been applied to 2007 inventory data to calculate the amount of pure PCB ownership by the various sectors. These sectors account for approximately 68% of the PCBs and equipment containing PCBs inventory in 2007. The remaining 32% of the PCB inventory is owned by federal and other governments, hospitals and schools and other miscellaneous industry sectors. The number of facilities that currently account for the majority of the inventory of PCBs and equipment containing PCBs is estimated at 71 facilities. The following table provides a breakdown of pure PCB inventory, in use and in storage, among the various sectors.
Table 1: Pure PCBs Inventories by Type of Ownership (2007)
(in tonnes) |
|||||
|---|---|---|---|---|---|
|
Industry Sectors |
Ownership as a Percentage* |
Number of Facilities |
In use |
In storage |
Total |
|
Electric Utilities |
28.76% |
20 |
1 736 |
395 |
2 131 |
|
Pulp and Paper Mills |
15.28% |
11 |
922 |
210 |
1 132 |
|
Iron and Steel Mills |
12.51% |
9 |
755 |
172 |
927 |
|
Mining and Mineral |
11.11% |
8 |
671 |
152 |
823 |
|
Federal Government |
6.94% |
5 |
419 |
95 |
514 |
|
Other Government |
6.94% |
5 |
419 |
95 |
514 |
|
Hospitals and Schools |
5.56% |
4 |
336 |
76 |
412 |
|
Others |
12.91% |
9 |
779 |
177 |
956 |
|
Total |
100% |
71 |
6 036 |
1 373 |
7 409 |
* Based on quantities of PCBs reported to CCREM by the industry sectors
In 2005, the Canadian electricity sector employed about 76 000 workers and had sales of about $50 billion. The contribution of this sector to GDP was approximately 2.2% in 2005 with a growth rate of 1.5% between 2000 and 2005. In the same year, total exports and imports equalled 42 930 gigawatts hour (GWh) and 19 332 GWh, respectively, with Quebec, Ontario, Manitoba and British Columbia exporting the greatest volume of electricity. Canada is a net exporter of electricity to the U.S., mainly due to the availability of low-cost hydroelectric resources. According to the information available, approximately 29% of the PCBs and equipment containing PCBs is owned by these utilities. It is estimated that the PCB inventories are owned by 20 electric utilities, comprised largely of provincially-located and some of the larger municipal utilities.
There were approximately 142 pulp and paper mills in Canada in 2005. It is estimated that 11 of these facilities owned PCB inventories. Total employment for this sector in 2005 was nearly 42 700 workers, with revenues of $20.8 billion. Canada is a net exporter of pulp and paper products, with a trade surplus of $15.1 billion. The sector’s GDP contributions were nearly 0.8% in 2005 and the sector experienced a negative growth rate of 2.2% between 2000 and 2005. Exports to the U.S. accounted for nearly 70% of this sector’s total exports. According to available information, pulp and paper mills account for nearly 15.3% of the total PCB inventory.
The number of iron and steel mills in 2005 was nearly 45 with 9 facilities accounting for the ownership of the PCBs and equipment containing PCBs. In the same year, employment was at 20 200 and annual revenue was approximately $12.3 billion. The contribution of the sector to GDP was 0.3% with a negative growth rate of 2.6% between 2000 and 2005. The trade balance for sector was $2.7 billion in 2005 with the bulk of the exports (nearly 86%) going to the U.S. This sector accounts for nearly 12.5% of the PCBs and equipment containing PCBs.
In 2005, the overall value of production of the Canadian mining, mineral processing and metal-producing industries totalled approximately $60 billion. Employment totalled an estimated 388 000 with nearly 800 mining establishments and 11 000 mineral processing establishments. (see footnote 18) The inventory of PCBs and equipment containing PCBs in this sector resided with eight facilities. The mineral industry contributed $42 billion to Canada’s total GDP representing 3.9% of total GDP. The share of this industry in PCBs and equipment containing PCBs inventory is approximately 11%.
Regulatory and non-regulatory options considered
The objective of the Regulations is to eliminate specific equipment containing PCBs by prescribing end-of-use deadlines and limiting the time that PCBs can be stored prior to elimination. This will not only allow Canada to meet its national and international commitments, but also significantly decrease the potential for PCB releases into the Canadian environment. Several regulatory and non-regulatory measures have been considered, and descriptions of each are provided below.
Status quo
Due to the environmental and health effects of PCBs, the import, manufacture, and sale (for re-use) of PCBs were prohibited in Canada in 1977. The release of PCBs to the environment was restricted in 1985, through amendments to the current Chlorobiphenyls Regulations. However, the ChlorobiphenylsRegulations do not prescribe timelines for ending the use of PCBs and equipment containing PCBs currently in storage for reuse. If the status quo is maintained, the elimination of PCBs and equipment containing PCBs and releases of PCBs to the environment would not be attained in accordance with Canada’s national and international commitments. Moreover, the end-of-use and elimination objectives cannot be achieved without reconsidering storage requirements under the current Storage of PCB Material Regulations, as PCBs removed from use are generally moved to storage prior to their elimination. Since the current Storage of PCB Material Regulations do not specify maximum storage time or storage deadlines, thereby allowing storage of PCBs for an indefinite period of time, it will not be possible for Canada to meet its domestic and international commitments under the current regulatory regime. Therefore, the status quo cannot be maintained.
Voluntary measures
In 1987, the CCREM released a report entitled “PCB Phase-Out Strategy Control Options” which outlined the implementation strategy for the phase-out of in-use PCBs. Attempts have been made by industry to incorporate voluntary initiatives into their management plans to achieve end-of-use and end-of-storage deadlines for electrical equipment containing high-level PCBs. In combination with the opening up of the Alberta PCB destruction facility to other provinces in 1994, this has reduced PCB inventories. However, the end-of-use of equipment containing low-level PCBs as well as storage of PCBs was not dealt with adequately under these voluntary initiatives. Voluntary initiatives by industry have not been successful in achieving the goal of virtual elimination of PCBs from the Canadian environment as well as in helping Canada meet its international and domestic commitments. Therefore, the option of voluntary measures is not being considered any further.
Market-based instruments
Market-based instruments, which include emission trading programs, environmental liability, financial incentives, deposit-refund systems, environmental charges and other market-based tools, were given due consideration. However, it was considered that these options would neither be effective nor practical because of the legally binding international commitments for eliminating equipment containing PCBs in use and in storage. Market-based instruments are most effective when the objective is reduction of releases rather than elimination. Since the federal government is placing a high priority on the elimination of PCBs from the environment in Canada in order to meet its national and international commitments, market-based instruments are not effective tools.
Regulations
Polychlorinated biphenyls are Track 1 substances targeted for virtual elimination under CEPA 1999 and federal regulations on the use and storage of PCBs are already in place under this legislation. In order for Canada to comply with its legally binding international commitments requiring ending the use of and elimination of PCBs, only regulatory controls that specify deadlines on use and storage of PCBs can be considered. Regulations specifying deadlines for the end-of-use and storage of PCBs, tracking the phase-out of use and elimination and establishing sound management practices for the remaining low level PCBs in use will prevent further contamination of dielectric fluids and further dispersion of PCBs in small quantities in other liquids. These new requirements will improve the existing controls to eliminate releases of PCBs into the environment. As compared to the other alternatives, regulatory controls fulfill Canada’s domestic and international commitments to eliminate PCBs.
Despite federal controls and the voluntary efforts of industry, PCBs in use and in storage in Canada remain an ongoing source of releases. If the status quo continues, it is estimated that 2 047 kg of PCBs in use and 29 kg from storage could be released into the environment between 2008 and 2032. These Regulations would reduce the potential PCB releases by 1 726 kilograms or approximately 83% during the same period.
Benefits and costs
Analytical framework
The approach to the cost-benefit analysis identifies, quantifies and monetizes, where possible, the incremental costs and benefits associated with the Regulations. The cost-benefit framework consists of the following elements:
Incremental impact: Incremental impacts are analyzed in terms of release reductions and costs and benefits to interested parties and the economy as a whole. The incremental impacts were determined by comparing two scenarios: one without the Regulations and the other with the Regulations. The two scenarios are presented below.
Timeframe for analysis: The time horizon used for evaluating the impacts is 25 years. The first year of the analysis is 2008.
Approach to cost and benefit estimates:
Discount rate: A discount rate of 5% was used for this analysis.
Cost and benefit estimates are based on a 2005 study (see footnote 19) conducted for Environment Canada. In addition, one provincial utility provided additional information subsequent to the publication of the Regulations in the Canada Gazette, Part I. The data has been extrapolated to provide estimates of the Canadian inventory of PCBs and equipment containing PCBs and the associated cost and benefits.
To evaluate the effects of enacting the Regulations, two scenarios for ending the use of PCBs in Canada were developed—the status quo PCB attrition rate and a scenario for accelerated PCB attrition rates to meet the prescribed end-of-use dates.
Business as usual scenario
Under the business as usual (BAU) scenario, the end of use of PCBs and equipment containing PCBs in use and in storage were calculated using a status quo attrition rate. Of the amount removed from use, it is assumed that 75% will be sent directly for destruction and the remaining 25% will be put in storage. The costs associated with the estimated decommissioning and destruction were calculated for PCBs in use and in storage. Similarly, using the attrition rates, forecasts for releases to the environment from in-use and in-storage PCBs were calculated for each year. Polychlorinated biphenyl releases from in use equipment were considered to be from spills and fires, whereas releases from storage were attributed to fires only. Between 2008 and 2032, it is estimated that a cumulative total of 2 047 kg of PCBs from in use inventories and 29 kg from storage would be released into the environment from spills and fires. These release estimates were monetized to determine the cost of cleaning up spills and fires involving PCBs.
The timeframes over which the PCBs and equipment containing PCBs would be eliminated varies considerably and is based on the status quo attrition rates for different types of in-use and in-storage PCBs. Under the status quo, the end of use for both high and low level PCBs in use can range from 13 to over 27 years, while elimination of PCBs in storage could take 19 years or more.
Regulatory scenario
Under the regulatory scenario, no equipment with PCB concentrations greater than 500 mg/kg will remain in use by the end of 2009. There are some exceptions for these high-level PCBs, including lamp ballasts which will be decommissioned by 2025. It is assumed that in the regulatory scenario, in use PCBs and equipment containing PCBs for which the deadlines are the end of 2009 will be decommissioned in equal amounts between 2008 and 2009. Of the decommissioned amount, it is further assumed that 75% will be sent for destruction while the remaining 25% will be stored for a period of one year at the PCB owners’ sites, one year at a transfer facility and for two years at the storage site of the PCB destruction facility. At the end of this four year period, the PCBs would be destroyed. Due to the end-of-storage deadline, PCBs that are currently in storage will be sent for destruction in equal amounts between 2008 and 2009. It is also assumed that the attrition rate for PCBs with an end-of-use deadline of 2025 will be slower in the first few years and will accelerate as the end-of-use deadlines approach. Therefore, in the prescribed end-of-use model, some PCB owners (approximately 25%) will wait until the last two years before the end-of-use deadlines for decommissioning and sending their stock of PCBs in use and in storage for destruction. Decommissioning and destruction rates for these PCBs are similar to those with the deadline of 2009.
The forecast for releases to the environment from in-use and in-storage PCBs under the regulated scenario were calculated as under the status quo scenario. Between 2008 and 2032, it is estimated that a cumulative total of 325 kg of PCBs in use and 25 kg of PCBs in storage would be released into the environment from spills and fires.
The timeframes over which the PCBs and equipment containing PCB would be eliminated has been calculated based on the end-of-use deadlines. Under the regulatory scenario, the end-of-use for both high and low level PCBs in use can range from 2 to 18 years, respectively. The removal from storage of PCBs already in storage will be completed in two years by 2009. However, due to additional storage time allowed at transfer and destruction facilities, the elimination of these PCBs is assumed to be completed after a period of three years. In addition, storage of in-use PCBs that are decommissioned is allowed for a period of four years at the owners’ storage facility, transfer site and destruction facility. Therefore, any PCBs that are decommissioned in 2025 are assumed to remain in storage till 2029.
The benefits under the regulatory scenario include a reduction in costs associated with fewer clean-ups of spills and fires involving PCBs. The benefits associated with the use of natural resources in Canada (e.g. due to reduced PCB contamination of fish in sport fisheries) are also calculated.
Figure 1: Estimated Yearly Releases of PCBs to the Environment (2008-2032)
The cumulative reduction in PCB releases over the 25-year analysis period is estimated to be 1 726 kg (or a reduction of 83%) as a result of the Regulations.
Costs to PCB owners
Polychlorinated biphenyl owners will bear the bulk of the cost of the regulated end-of-use and storage deadlines. As the equipment containing PCBs is replaced and PCBs in existing storage sites are destroyed sooner than under the status quo, this will result in expenditure on goods and services earlier than planned. The regulatory end-of-use deadline will result in additional costs of $358.14 million (present value) for decommissioning, destroying and replacing in-use and in-storage equipment. The details of the costs to PCB owners are presented in the Table below:
Table 2: Summary of Incremental Costs to PCB Owners In-use and In-storage PCBs
|
(Million in 2007 dollars) |
|||||
|---|---|---|---|---|---|
|
Incremental Costs |
Best Estimate (PV Discounted @ 5%) |
Low Estimate (-25% Error Margin) |
High Estimate (+25% Error Margin) |
||
|
Replacing, Decommissioning and Destruction Costs for In-use PCBs |
|||||
|
Decommissioning and destroying high-level (>500 mg/kg) PCBs and replacing equipment by 2009 |
137.35 |
103.02 |
171.70 |
||
|
Decommissioning and destroying low-level (50-500 mg/kg) PCBs and replacing equipment by 2025 |
80.66 |
60.49 |
100.82 |
||
|
Decommissioning and destroying lamp ballasts by 2025 |
1.91 |
1.43 |
2.39 |
||
|
Separate servicing systems for PCBs 2-500 mg/kg (and of destroying PCBs 2-500 mg/kg to below 2 mg/kg) by 2025 |
6.92 |
5.19 |
8.65 |
||
|
Decommissioning and destroying pole-top transformers by 2025 |
75.95 |
56.96 |
94.93 |
||
|
Sub-Total |
302.79 |
227.10 |
378.49 |
||
|
Labelling Costs for In-use PCBs |
|||||
|
CMO transformers after decommissioning |
7.80 |
5.85 |
9.75 |
||
|
Sub-Total |
7.80 |
5.85 |
9.75 |
||
|
Reporting and Record-Keeping Costs for In-use PCBs |
|||||
|
PCB use, phase-out, destruction and spills |
17.01 |
12.76 |
21.26 |
||
|
PCB pigment importers, research and solid product manufacturing facilities |
0.41 |
0.31 |
0.52 |
||
|
Sub-Total |
17.42 |
13.07 |
21.78 |
||
|
Total In-use Costs |
328.01 |
246.01 |
410.02 |
||
|
Destruction Costs for In-storage PCBs |
|||||
|
Destruction of all PCBs |
29.27 |
21.95 |
36.58 |
||
|
Sub-Total |
29.27 |
21.95 |
36.58 |
||
|
Reporting and Record-Keeping Costs for In-storage PCBs |
|||||
|
Contaminated Sites Owners |
0.46 |
0.35 |
0.58 |
||
|
Transfer and Destruction Facilities |
0.40 |
0.30 |
0.50 |
||
|
Sub-Total |
0.86 |
0.65 |
1.08 |
||
|
Total Storage Costs |
30.13 |
22.60 |
37.66 |
||
|
Total In-use and In-storage Costs |
358.14 |
268.61 |
447.68 |
||
The in-use incremental costs to PCB owners are comprised primarily of replacing the decommissioned equipment, transporting 25% of the decommissioned equipment to storage sites, and destroying the remaining 75% of the PCBs. These incremental costs are estimated to be $302.79 million or 92% of the total in use incremental costs and 84.5% of total costs.
The incremental costs to storage facilities would mainly be for destroying the PCBs. The storage facilities would initially incur costs for destroying PCBs already in storage prior to the Regulations coming into force. Additional storage and destruction costs will be incurred as PCB owners decommission and store 25% of the PCBs for a period of up to four years. These incremental costs have been assigned to storage facilities and would be incurred until all decommissioned PCBs have been destroyed for the purpose of this analysis. It is assumed that equipment decommissioned in 2025 will be destroyed in 2029. The incremental costs for destroying stored PCBs are estimated to be $29.27 million or 97% of the total in storage costs and 8.2% of total costs.
The incremental costs of reporting, record-keeping and labelling costs to owners of in-use and in-storage PCBs are estimated to be $25.23 million or approximately 7% of total incremental costs.
There are some incremental costs that will be incurred due to the Regulations that are difficult to quantify. These costs include the following:
Costs to the Government
The federal government will experience incremental costs to administer and enforce the Regulations specifically for the requirements that are imposed in addition to those retained from the current Chlorobiphenyl Regulations. These additional requirements will be phased-in from the date of coming into force of the Regulations as per the prescribed deadlines for end-of-use and end-of-storage. The estimates are provided for costs that could be incurred for inspections, investigations and measures to deal with alleged violations with respect to:
With respect to enforcement costs, for the first year following the coming into force of the proposed Regulations, a one-time amount of $250,000 will be required to train enforcement officers.
In the first year following the delivery of the training, the enforcement costs are estimated to require an undiscounted annual budget of $987,930 for inspections (including operations and maintenance costs, transportation and sampling costs), investigations and measures to deal with alleged violations (including environmental protection compliance orders and injunctions). For the subsequent nine years, enforcements costs are estimated to require an undiscounted annual budget of $792,218 for inspections, investigations, measures to deal with alleged violations and prosecutions.
Total enforcement costs for on-site inspections, investigations and measures to deal with alleged violations are estimated to be $6.30 million (present value) over the 25-year period.
Compliance promotion activities are intended to encourage the regulated community to achieve a high level of overall compliance as early as possible during the regulatory implementation process. Compliance promotion costs would require an annual budget of $230,000 during the first year of coming into force of the Regulations and would include: national and regional mail-outs, information sessions at different locations across Canada, and preparation and distribution of user guides and other compliance promotion material. Another $45,000 would be required in year five for development of additional compliance promotion material. The present value of total compliance promotion costs is estimated to be $0.25 million over the 25-year period.
The present value of both the enforcement and compliance costs is estimated to be in the order of $6.55 million over the 25-year period. The details of the costs to government are presented in the following table:
Table 3: Summary of Incremental Costs to Government In-use and In-storage PCBs
|
(Million in 2007 dollars) |
|||
|---|---|---|---|
|
Incremental Costs |
Best Estimate (PV Discounted at 5%) |
Low Estimate (-25% Margin of Error) |
High Estimate (+25% Margin of Error) |
|
In-use and In-storage PCBs |
|||
|
Compliance Promotion Costs |
0.25 |
0.19 |
0.32 |
|
Enforcement Costs |
6.30 |
4.73 |
7.88 |
|
Total Cost |
6.55 |
4.92 |
8.20 |
The Government of Canada will also incur some administrative costs associated with the processing of extension permits. These costs have not been calculated as the number of permit applications that will be received and processed is not known. However, it is expected that a limited number of permit extension applications will be received. Therefore, the associated costs are likely to be negligible compared to the total incremental cost to the Government of Canada.
Municipal and provincial governments will also incur some costs for tracking PCBs and aligning their enforcement activities to match the federal Regulations. Most municipalities currently maintain a tracking system for PCBs within their municipal boundaries and a notification system for PCBs being transported through their boundaries. This has been done for a variety of reasons, but mainly so that municipalities can participate in decision-making concerning the use, storage and transportation of PCBs and so that emergency services can take extra precautions when responding to a PCB spill or fire. In a similar manner, provincial and territorial governments will also experience a slight increase in activity until 2009 related to transportation permit, notifications and enforcing the phase-out. Since it is difficult to predict the magnitude of the increase in these activities for the municipal and provincial governments, it is not possible to estimate these costs. However, it is anticipated that the increase in the costs of tracking PCBs until 2009 will be relatively minor.
Benefits to Canadians
Environmental benefits
The benefits from the accelerated elimination of PCBs are a function of the reduction in environmental releases from spills and fires. The decline in spills and fires would have a direct benefit to PCB owners in terms of a decline in the cost of cleaning up spills and fires involving PCBs. The present value of these cost savings to PCB owners is estimated to be approximately $165.98 million. Canadians will also benefit from fewer PCBs being released into the environment from spills and fires. The benefits from reduction in ecosystem impairment primarily draw on a report prepared for Environment Canada in 1998. (see footnote 20) This report documented some of the ecosystem impairments and also estimated the financial losses attributable to PCBs in the natural environment. The financial losses occur either as a reduction in the expenditure and enjoyment from recreational activities or profits from commercial activities and are attributable to the decrease in numbers of healthy species (such as fish and wildfowl) and consumption advisories by different government agencies, including reductions in
In addition, reductions in other uses of land or natural resources due to real restrictions imposed by contamination or due to perceived devaluation of the resources have also been considered.
The financial loss estimates (see footnote 21) calculated in this report have been used in combination with the estimates for the decline in environmental releases of PCBs to the environment over time. The present value of the estimated benefit is $151.2 million which will result from an earlier return to safe consumption levels of species such as fish and wildfowl. The present value of total benefits is estimated at nearly $317.19 million.
The details of benefits that have been quantified are provided in the following table:
Table 4: Summary of Incremental Benefits to Canadians In-use and In-storage PCBs
|
(Million in 2007 dollars) |
|||
|---|---|---|---|
|
Incremental Benefits |
Best Estimate (PV Discounted at 5%) |
Low Estimate |
High Estimate (+25% Margin of Error) |
|
In-use PCBs |
|||
|
Reduction in costs of cleaning up spills and fires |
132.94 |
99.71 |
166.18 |
|
Reduction in ecosystem impairment/improvement in use of resources |
120.44 |
90.33 |
150.56 |
|
Sub-Total |
253.39 |
190.04 |
316.73 |
|
In-storage PCBs |
|||
|
Reduction in costs of cleaning up spills and fires |
33.04 |
24.78 |
41.30 |
|
Reduction in ecosystem impairment/improvement in use of resources |
30.76 |
23.07 |
38.45 |
|
Sub-Total |
63.80 |
47.85 |
79.76 |
|
Total Benefits |
317.19 |
237.89 |
396.49 |
In addition to the quantified benefits, there are some non-quantified benefits associated with the Regulations. The impacts of PCB releases are not restricted to ecosystems and animal species that have a quantifiable benefit to humans. Many species are impaired by PCBs and other chemicals. This impairment could result in the loss of a species in a local area, a change in the balance of the ecosystem or an effect further up the food chain. There are many factors that can result in adverse ecological effects, for example, chemical contamination, weather, disease and physical destruction of habitat. As a result, a clear and direct link between the cause and the observed ecological impacts is difficult to determine and quantify.
Health benefits
As stated earlier, PCBs are widely recognized as a potential hazard to human health, although the full extent of human health implications is not known. All Canadians are exposed to very small amounts of PCBs through food intake and, to a lesser extent, through air, soil and water. As a result, all Canadians have PCBs in their bodies, making the determination of specific adverse health effects very difficult to identify and subsequently understand.
Based on recent results from Total Diet Studies (see footnote 22) (a series of studies organized by Health Canada), the average daily dietary intake of PCBs is thought to be less than half of one microgram. (see footnote 23) People consuming large amounts of certain sports fish, wild game and marine mammals are at increased risk for higher exposures and possible adverse health effects. People at greater risk include Aboriginal peoples, and anglers and hunters and their families.
Much of the available information on the human health effects of PCBs is based on exposures due to accidental releases or job-related activities. These exposures are much higher than the levels normally found in the environment. The adverse health effects include
In addition, the International Agency for Research on Cancer (IARC) has concluded that there is some evidence to link long-term, high-level PCBs exposure in occupational settings to an increased incidence of cancer, particularly liver and kidney cancer.
Some studies dealing with long-term low-level exposures to PCBs suggest subtle effects on reproduction and on the development of newborns and young children. Research into this subject continues; however, these issues are complex. The complexities arise from the chemical make-up of PCB mixtures which varies from one exposure situation to the next. The issue is further compounded by the exposure of people to other contaminants at the same time as exposure to PCBs. The role each substance plays in causing the adverse health effects has to be determined independently and is difficult to isolate.
A recent literature review (see footnote 24) and subsequent analysis used the damage function approach (DFA) to determine the health impacts of PCBs. The DFA is an analytical framework often employed to quantify the physical benefits (especially human health benefits) of reducing exposures to harmful pollutants in the environment, and the economic value of those physical benefits. The overall conclusion of the DFA study is that, although there is a great deal of scientific information available concerning the human health risks from exposure to PCBs (including considerable information on low-level or chronic human exposures from environmental exposure), there is insufficient scientific information available at this time to identify a concentration-response function for any of the known or suspected PCB-related health risks.
The literature review indicated that PCBs may have four major health effects of concern from low-level chronic PCB exposure namely:
However, due to the limitations of epidemiological studies, these effects cannot be attributed entirely to PCB exposure. As a result of these limitations around the health effects caused by PCB exposure, it is not possible to accurately quantify the health benefits to Canadians from eliminating PCBs earlier than anticipated. However, the lower levels of environmental releases would ultimately benefit human health as the probability of certain health risks would be further reduced through implementing the Regulations. The estimated cumulative reduction in the amount of PCBs released to the environment as discussed above would be 1 726 kg, or 83%, as compared to the status quo scenario.
Distributional impacts
A large proportion of the estimated mass of pure PCBs is located in Ontario and Quebec (accounting for 72.5% of the total in 2007). As a consequence, the majority of the costs would also be borne by these two provinces. British Columbia accounts for nearly 16% and other provinces and territories account for less than 12% of the mass of pure PCBs as well as the costs. The benefits of reduction in PCB releases are expected to occur predominantly in those provinces with the largest share of PCB material.
The apportionment of costs to industry sectors has been estimated on the basis of the reported share of the sectors to the CCME inventory. As discussed above in the “Economic Profile of the Industry Sectors,” electric utilities, by virtue of having the largest share of the mass of pure PCBs, will also bear the largest share of the incremental costs to decommission, destroy and replace the PCBs and equipment containing PCBs. In general, 80% of the costs will be borne by the private sector and the remaining 20% by public sector entities. The benefits to industry sectors comprise reductions in clean up costs for spills and fires.
For analytical purposes, the incremental cost for storing and destroying decommissioned equipment containing PCBs is assumed to be borne by the storage facilities, not by the owners of PCBs in the private and public sectors. These sectors would only incur the cost of transportation to the storage facilities which have been included in the above costs.
The owners of PCBs in use will incur approximately 45% of the costs for replacing, decommissioning and destroying equipment, with the end of 2009 as the end-of-use deadline. This equipment consists primarily of transformers with more than 500 mg/kg of PCBs. The Regulations include provisions to extend the 2009 deadline up to 2014 for equipment that meets certain criteria, providing additional flexibility to industry. This provision will help industry avoid significant disruptions in connection with equipment that is difficult to replace.
For all other equipment, the regulatory requirements are not expected to place an undue financial burden on industry sectors. The end-of-use deadline for low level (i.e. less than 500 mg/kg) PCBs and equipment containing PCBs is 2025 which provides adequate time for the industry to phase out the PCBs without major disruptions.
The impact on consumers would be determined by the ability of the industry to pass on their incremental costs in the form of higher prices. However, due to lack of information, it is not possible to estimate the impact with any degree of confidence.
Conclusion
The present value of the quantified incremental costs and benefits, and the qualitative costs and benefits of the Regulations are summarized in the following table:
Table 5: Incremental Cost-Benefit Statement
|
(Million in 2007 dollars) |
|||||
|---|---|---|---|---|---|
|
Incremental Costs and Benefits |
Base Year: 2008* |
2014* |
Final Year: 2032* |
Total (PV) 2008-2032 |
Average Annual |
|
A. Quantified Industry Costs |
|||||
|
PCB Owners |
(285.89) |
(12.61) |
0.00 |
(328.01) |
(13.12) |
|
PCB Storage Facilities |
(54.75) |
(0.14) |
(0.03) |
(30.13) |
(1.21) |
|
Total Industry Costs |
(340.64) |
(12.75) |
(0.03) |
(358.14) |
(14.33) |
|
B. Quantified Government Costs |
|||||
|
Enforcement |
0.00 |
(0.59) |
0.00 |
(6.30) |
(0.25) |
|
Compliance Promotion |
0.00 |
(0.03) |
0.00 |
(0.25) |
(0.01) |
|
Total Government Costs |
0.00 |
(0.62) |
0.00 |
(6.55) |
(0.26) |
|
Total Costs |
(340.64) |
(15.39) |
(0.03) |
(364.69) |
(14.58) |
|
C. Quantified Benefits |
|||||
|
PCB Owners |
1.74 |
7.92 |
11.48 |
132.94 |
5.32 |
|
PCB Storage Facilities |
3.70 |
3.20 |
0.00 |
33.04 |
1.32 |
|
Canadian Environment |
0.00 |
0.00 |
20.67 |
151.21 |
6.05 |
|
Total Benefits |
5.44 |
11.12 |
32.15 |
317.19 |
12.69 |
|
Net Costs |
(47.50) |
(1.90) |
|||
|
D. Quantified Environmental Impacts |
|||||
|
Reduction in PCB Releases (kg) |
64.81 |
153.46 |
2.55 |
1 726 |
69.03 |
|
E. Qualitative Impacts |
|||||
|
Cost — Industry |
|
||||
|
Cost — Government |
|
||||
|
Benefit — Canadians |
|
||||
|
Benefit — Industry |
|
||||
|
Benefit — Government |
|
||||
|
* Values in parenthesis represent incremental costs to stakeholders in the year under consideration. |
|||||
The implementation of the Regulations, within the prescribed time frame, results in a quantified net cost of $47.50 million (present value) over the 25-year period.
The present value of costs associated with the Regulations is estimated to be $364.69 million. Over the 25-year period, incremental costs for replacement, decommissioning and destruction of PCBs and equipment containing PCBs represent 98% of the total estimated incremental costs.
The present value of benefits associated with the Regulations is estimated to be $317.19 million. The benefits of the Regulations include a reduction in costs associated with fewer clean-ups of spills and fires involving PCBs. Also calculated were benefits associated with the use of natural resources in Canada (e.g. due to reduced contamination of fish in sport fisheries).
Given the need to transport PCBs to destruction facilities that are located in several provinces, the benefits of the Regulations would accrue to Canadians across the country. The cumulative reduction in PCB releases with the regulatory requirements in place is estimated to be 1 726 kg (or 83%) over the 25-year period compared to the estimated releases in the absence of the Regulations. By reducing the PCB releases, the Regulations would result in a reduction in the human health and environmental risk.
As stated above, not all costs and benefits could be quantified due to data limitations and uncertainties, therefore their impact cannot be accurately determined. It is likely that once all the non-quantified costs and benefits have been quantified and monetized, the Regulations would result in a benefit higher than that presented in the analysis.
Rationale
There are significant costs associated with alternatives to the Regulations. Maintaining the status quo would not achieve the end-of-use and end-of-storage of PCBs and equipment containing PCBs. The regulatory initiatives taken so far allow for the continued use of PCBs and equipment containing PCBs until the end of their service life. Although the PCB inventories have been declining, the pace of PCBs end-of-use and destruction is slow. This is particularly important, in view of the fact that Canada has signed a number of multilateral and bilateral agreements which contain a legally binding requirement to control the production, use, release, import, and export of PCBs and equipment containing PCBs. These international commitments require an end to the use of PCBs and equipment containing PCBs and their eventual destruction by specified deadlines. Accordingly, the current pace of PCB end-of-use and end-of-storage needs to be accelerated to ensure the elimination of PCBs still in use and in storage in accordance with national and international commitments.
Voluntary initiatives have failed to eliminate the use and destruction of PCBs, and it is unlikely they would be successful in the future. Similarly, market-based instruments are more effective when the objective is to reduce rather than eliminate. It is in view of Canada’s international obligations and domestic commitment to phase out PCBs from use and storage that the Regulations have been developed.
The Regulations have been developed in consultation with industry, provincial and territorial governments, ENGOs and other government departments through two sets of consultations on the revisions to the existing Chlorobiphenyls Regulations and the Storage of PCB Materials Regulations. The final text of the Regulations also incorporates the comments received during the consultation period after the publication of the Regulations in the Canada Gazette, Part I. Environment Canada responded to the identified areas of concern by the stakeholders by revising some of the requirements. These revisions, while maintaining the PCB phase-out deadlines, include additional flexibilities as suggested by industry to clarify the regulatory requirements and facilitate the replacement of equipment containing PCBs from use. Therefore, the Regulations are the most cost-effective method to achieve the desired elimination of PCBs from the Canadian environment.
While the Regulations will result in a net cost of $47.50 million (present value) over a period of 25 years, the benefits of the Regulations are expected to be higher if the non-quantified benefits to human health are taken into consideration. In the absence of the Regulations, it is likely that the phase out of PCBs would take longer, with the result that Canada would not be able to meet its international commitments. This would also lead to more PCBs being released to the environment through spill and fires. Therefore, these Regulations result in overall benefits when qualitative impacts are taken into account.
International coordination
These Regulations have been developed to enable Canada to meet its various international commitments as described above. Coordination with international organizations and other countries with whom Canada has entered into agreements have been carried out in accordance with the established process. No additional international coordination activities were undertaken for these Regulations.
Consultation
Since 2000, Environment Canada has consulted with stakeholders on proposed revisions to the Chlorobiphenyls Regulations and the Storage of PCB Material Regulations. Specifically, two rounds of public consultations were held in 2000 and 2003 on the proposed revisions to these regulations. Comments were also received from various stakeholders during the formal public consultation period after the publication of the proposed Regulations published in the Canada Gazette, Part I, in 2006. Additional consultations were conducted in 2007 and 2008 on key revised requirements of the proposed PCB Regulations as published in the Canada Gazette, Part I.
Representatives of industry and industry associations (including electric utilities), non-governmental organization (NGOs), and other federal government departments (OGDs), provincial and territorial governments were invited to participate throughout the regulatory development process. Overall 6 000 stakeholders across Canada were consulted. Comments from provinces and territories (via the CEPA National Advisory Committee/NAC) were also sought during the 2000, 2003 and 2007 consultations.
The comments and concerns (including those from Transport Canada, the Department of National Defence and Public Works and Government Services Canada) raised during these consultations and Environment Canada’s response, are detailed below.
The main objective of the 2000 consultations was to inform stakeholders and interested groups of the key issues being addressed in proposed revisions to existing regulations, namely to
The objective of the 2003 consultations was to present the modifications made to proposed revisions based on stakeholder comments received during the previous consultations. The decision to combine these regulations was made following the 2003 consultations; therefore both set of revisions to existing Regulations were commented on individually at the same time.
Consultations in 2003
Environment Canada received comments on the following proposed modifications:
End-of-use deadlines and exemptions
Industry and OGDs opposed the December 31, 2007 deadline indicating that there was not enough time to plan the replacement of equipment (both financially and operationally). The replacement of large inventories of equipment or equipment that is difficult to access was also a concern for the stakeholders as regards compliance with the second deadline.
In response to these comments, Environment Canada proposed extending the December 31, 2007 deadline to December 31, 2009, and up to 2025 in situations where equipment is difficult to access or in large inventories. This approach recognized that accessing certain types of equipment would require major interruptions to electricity services to consumers or prohibit the use of public infrastructures; and that large inventories of sealed equipment containing small quantities of PCBs would be rendered inoperable by the removal of liquid for the identification of PCBs.
Industry associations and public utility companies also requested exemptions from the end-of-use deadlines for the majority of contaminated electrical equipment in order for facilities to continue to implement in-house PCB management plans.
Environment Canada was of the view that this is unacceptable, as it exempts a large volume of contaminated equipment, much of which is located at ground level, along roadways and residential properties. In addition, past experience shows that industry’s self-imposed phase-out objectives have rarely been achieved. As such, Environment Canada did not support the requested exemptions to these facilities.
Removal, destruction and exemptions
Industry and OGDs objected to the proposed requirement of removing and destroying PCBs upon the end-of-use of equipment for cables and pipelines that are located either underground or on river beds for environmental reasons or due to operational difficulties in maintaining essential public services. In addition, the reporting requirements for the removal of pipelines may also raise national security concerns.
In response, Environment Canada decided to propose exemptions from these requirements for cables and pipelines. Environment Canada was of the view that the release prohibition maintains the responsibility for preventing any release of PCBs into the environment on the owners of the cables and pipelines.
End-of-storage deadlines and exemptions
In 2003, the waste management Industry expressed concerns about the limit of one year of storage prior to the destruction of PCBs and the operational difficulties imposed on them (particularly for large environmental clean-up projects).
Environment Canada addressed these concerns by providing an extension to the storage time allowed at authorized facilities for decontamination, transfer or destruction of PCBs and by providing a conditional exemption to the time limit for storage at environmental remediation sites.
Release limits
Industry, NGOs, OGDs and the provinces also voiced their concerns with respect to the proposed release limits. The NGOs objected to them, as in their view, the proposed limits do not provide adequate protection to the environment. Provinces and OGDs are concerned that the release limit of 2 mg/kg for liquids could apply to landfilling of contaminated soils. Industry objects to a release limit lower than the regulatory limit on the use of PCBs.
In response to these comments, Environment Canada believes that the 2 mg/kg regulatory limit for liquids released into the environment is consistent with the contamination limit allowed in dielectric fluids. In order to address the concerns of the provinces and OGDs, Environment Canada also proposed a regulatory limit for solids of 50 mg/kg to ensure that the 2 mg/kg release limit for liquids does not apply to soils. The existing maximum allowable quantity of PCBs of one gram per day released from equipment in use was changed to one gram at any one time to improve enforceability. For other equipment and products containing PCBs, the release limits of 2 mg/kg for liquids and 50 mg/kg for solids will apply.
Moreover, the proposed measures to limit releases to the environment
Environment Canada considered that the proposed release limits in combination with the end-of-use deadlines represent a major step toward eliminating releases of PCBs consistent with Environment Canada’s Toxic Substances Management Policy (TSMP). (see footnote 25) Progress toward virtual elimination will continue to be monitored.
Decontamination for recycling
The recycling industry objected to PCB material decontamination levels of 2 mg/kg before the recycling operation is applied. They argue that decontaminating bulk PCB solid materials was challenging and that prior decontamination was unnecessary when the recycling involves a thermal process in which PCBs could be destroyed.
Environment Canada clarified in the proposed Regulations that the recycling of products containing less than 50 mg/kg of PCBs will continue to be allowed. The allowable PCB content for roadway applications will be reduced from the current 5 mg/kg to less than 2 mg/kg, which is in line with US EPA limits.
Sound management practices for remaining PCBs in use
Industry objected to the replacement of the large inventories of fluids containing 2 to 50 mg/kg of PCBs, stating that it will be costly to replace these fluids all at once. Environment Canada clarified that the proposed requirements intend to eliminate practices that lead to continued contamination of electrical transformers by prohibiting the reuse of low PCB content fluids.
Labelling and reporting
Industry strongly opposed the administrative and logistical burden of the proposed comprehensive labelling and reporting requirements, including labelling deadlines of six months and one year from the coming into force date of the proposed Regulations for equipment containing high and low PCB concentrations, respectively.
In response to the concern, Environment Canada reconsidered and revised the labelling and reporting requirements to alleviate the administrative burden where possible. The deadlines for labelling have been extended to match the end-of-use deadlines.
The proposed reporting requirements are designed to allow Environment Canada to track progress towards end-of-use and end-of-storage targets on an annual basis. The onus will be on PCB owners and owners of authorized facilities to report annually a summary of their inventory of PCBs in use and in storage and to maintain accurate, detailed PCB inventory information that is accessible to enforcement personnel. The proposed Regulations will allow the submission of the annual report electronically by way of Portable Document Format (PDF).
Transportation
Industry strongly objected to the transportation requirements that were proposed in the Canada Gazette, Part I, similar to those that appeared in the Transportation of Dangerous Goods Regulations (TDGR) prior to their revision in 2002. Special permits already issued by Transport Canada (TC) for specific equipment containing PCBs have been raised as one example.
In response to these comments Environment Canada reconsidered and removed transportation-related requirements.
Definitions and terminology
In response to stakeholder concerns over the proposed definitions and terminology, Environment Canada clarified and simplified the definitions and terminology that are used throughout the proposed Regulations, with a view to remaining as consistent as possible with the terminology used in CEPA 1999.
Economic impact analysis
Industry indicated that the estimated equipment decommissioning costs in Environment Canada’s Summary Report on the economic impact analysis of proposed revisions were too low. Specifically, they argued that analytical testing for equipment identification was not accounted for. They also indicated their concerns about potential difficulties for electrical equipment supply and PCB waste management industry services that will be required to meet the prescribed end-of-use deadlines.
In response to these comments, Environment Canada recognized that information on the current inventory of PCBs in use was limited and the study may have underestimated its size and related equipment decommissioning costs. Industry was asked to provide detailed cost estimates to improve this cost analysis. However, Environment Canada did not receive additional information with which to update these costs. Environment Canada has included in the cost analysis the cost to use the prescribed analytical method if the industry chooses to use it. The analytical method is prescribed for the purpose of verifying compliance with the proposed Regulations. Environment Canada has also allowed the assumption in the proposed Regulations that equipment contains 50 mg/kg or more of PCBs if they were manufactured before 1980, if no information on its PCB content is available. Regarding the available PCB treatment and destruction capacity and electrical equipment supply in Canada, in 2000, Environment Canada assessed an overcapacity of these services and does not foresee a change in the near future.
Consultations on the proposed Regulations following publication in the Canada Gazette, Part I
A number of comments on the proposed Regulations following publication in the Canada Gazette, Part I, were received from various stakeholders, including industry, industry associations, other government departments (OGDs), provincial, territorial and municipal authorities and environmental non-government organizations (ENGOs). Comments from stakeholders were also received during the additional consultations organized by Environment Canada between 2007 and 2008. The comments encompassed all aspects of the Regulations and have been addressed by Environment Canada either through revisions to the regulatory text or by way of an explanatory note. A summary of these comments and Environment Canada’s responses are discussed below.
End-of-use deadlines
A number of stakeholders, including industry, OGDs and municipal authorities, requested revising the regulatory end-of-use deadlines. More specifically, stakeholders recommended that the 2009 and 2014 deadlines be extended, citing technical, financial and other factors that could make it difficult to meet these deadlines. They also requested that some flexibility be built into the Regulations to allow facilities that have made their best efforts to comply with these deadlines but have been unable to do so because of unforeseen circumstances. Under such conditions, industry requested that exemptions to the 2009 deadline be granted to those submitting a written application outlining the extenuating circumstances for non-compliance. They indicated that the publication delay has also reduced the anticipated two-year timeframe required to plan, approve and implement this first deadline. Industry indicated that the environmental benefits gained with the implementation of the 2014 and 2025 deadline for low level PCBs are minimal compared to the replacement cost of equipment in good operating conditions which could be used until 2060. Industry also considers that equipment containing low level PCBs represent a low environmental risk. Exemptions to the 2025 end-of-use deadline have been requested for light ballasts and pole-mounted equipment.
The PCB waste management industry and ENGOs also indicated that the 2025 deadline should be reconsidered as the PCB treatment and destruction capacity may not exist at that time due to the decline in the viability of the sector.
Environment Canada has reconsidered and revised the end-of-use deadlines in the Regulations. The Regulations now include a provision in the 2009 deadline which will allow PCB owners to submit an application for extension by demonstrating that the equipment cannot be replaced by the deadline due to technical constraints for engineered-to-order equipment or the facility is scheduled for permanent closure before 2014. Extensions will be granted by Environment Canada on a case-by-case basis, with the onus of responsibility on the PCB owner to prove that the equipment containing PCB cannot be replaced prior to the end-of-use deadline. This provision was consulted on separately in 2007 and stakeholders were generally in agreement with it. In addition, Environment Canada has extended the 2014 end-of-use deadline to 2025 for all equipment containing low-level PCBs. This allows for the identification and removal of the PCBs from equipment during scheduled servicing, as requested by industry. The “Cost-Benefit Analysis” section of the RIAS has been revised to reflect these changes in the costs and benefits to industry and the Canadian environment.
In view of the large inventory of light ballasts and pole-mounted equipment currently in use in location where containment may not be possible, there is a significant risk of release to the environment. Moreover, Environment Canada does not foresee a significant reduction in destruction capacity as there will be sufficient demand for these services in the future. Therefore, the 2025 end-of-use deadline for this type of equipment is being maintained.
Environment Canada is of the opinion that these measures are necessary to accelerate the phase-out of the PCBs in equipment to meet the national and international commitments. Voluntary agreements over the past 25 years by the industry for identifying and destroying PCBs in equipment have been only partially successful.
Servicing equipment
Stakeholders from industry stated that the use of PCB-free liquid for servicing equipment containing low levels of PCBs (i.e. less than 500 mg/kg) should be allowed. The proposed servicing requirements were considered impractical as it is not feasible to keep stock of liquids containing various PCB concentration ranges at all locations. The industry practice is to service all equipment with PCB-free dielectric fluid (currently available during regular maintenance or during an emergency situation at a facility).
Environment Canada has revised the concentration limit and the requirement for servicing equipment in view of providing flexibility to owners for achieving a PCB-free dielectric fluid inventory. The use of new dielectric fluid is allowed for servicing. However, all fluids that is drained from equipment containing PCBs at a concentration of 2 mg/kg or more during servicing, repairs or for any other reasons must be removed from use. This approach will provide the same level of protection to the environment compared to the initial proposal. It would also ensure that small quantities of PCBs contained in equipment are removed from use and are not dispersed in other equipment during servicing.
End-of-storage deadlines
Comments were received from PCB owners and PCB treatment and destruction facilities with regard to end-of-storage deadlines. The PCB owners requested extensions from both the 2009 deadline as well as the one year maximum storage period. Their concern was that due to logistical, technical and economic issues and lack of destruction capacity, it may not be possible to comply with the end-of-storage requirements. In addition, they requested that the end-of-use deadlines be applied to equipment stored for future use. The PCB treatment and destruction facilities requested an extension to the one year storage deadline at their facilities due to potential backlogs during high demand periods for PCB destruction. Moreover, accumulation of sufficient material is required for PCB treatment and destruction processes. As a result of these practical considerations, the treatment and destruction facilities were concerned that they may be out of compliance with the end-of-storage requirements.
Environment Canada gave due consideration to the concerns raised and has extended the one year storage period to two years with respect to the storage of PCBs at destruction facilities. As a result of this extension in the storage period the “Cost-Benefit Analysis” section of the RIAS has been revised. The 2009 end-of-storage deadline is maintained without any extension for spare parts of equipment containing PCBs or large quantities of PCBs in storage. Environment Canada has recently verified that there is sufficient destruction capacity for all PCBs currently in storage.
Storage or destruction
Stakeholders requested that more than seven days be allowed to store or send PCBs for their destruction for practical reasons such as: time to obtain analytical results from the sampling of equipment or product for its content in PCBs, remote location of equipment from the PCB storage site and other practical limitations to the movement of equipment.
Environment Canada has extended the time period for the application of the storage requirements to 30 days and provided a reasonable time period for PCBs which are located in remote areas or cannot be accessed by a roadway system.
Release limits
Stakeholders objected to having to comply with different release control limits for equipment being used and for equipment being stored. They objected to a regulatory limit based on concentrations only, as they believe it exposes them to compliance risks for minute releases even if preventive actions have been taken. Polychlorinated biphenyl owners also believe that a lower control limit for liquids containing PCBs is inconsistent with provincial legislation on releases to the environment.
Environment Canada has not revised the release limits as it provides the flexibility requested by owners of PCBs in use. Environment Canada has maintained the release concentration limits of 2 mg/kg for liquids, as it is consistent with the contamination limit allowed in these Regulations for dielectric fluids and to protect human health and environment. By complying with the federal Regulations, the industry would also be in compliance with the provincial release limits.
Permitted activities
Environment Canada received a number of comments from industry on the proposed requirements on the mixing, dilution and processing of products containing PCBs, indicating that their intent and wording were unclear.
In response to these comments, Environment Canada has clarified the intent of the requirements by consolidating the restrictions on the processing of products containing PCBs for the purpose of destruction in one requirement.
A request was received from a manufacturer of solid products using bulk solid products containing low-level PCBs to allow the continuation of the operations which are authorized by provincial authorities.
Environment Canada has decided to authorize this historical manufacturing process with restrictions as these bulk solid products are expected to become PCB-free with the implementation of the Regulations. These solid products mainly contain waste products. As the Regulations prohibit the processing of waste products containing PCBs at any concentrations (except for the purpose of destroying PCBs), Environment Canada expects the bulk solid wastes resulting from processing and solid products manufacturing to become PCB-free over time.
Labelling, record-keeping and reporting requirements
Industry requested that the phase-out be implemented through a confirmation of the PCB content with laboratory analysis and not based on presumption. As industry does not know where the PCBs are distributed in their inventory, they indicated that it is unrealistic to presume that all of their inventory contains PCBs and must be phased-out.
In response, Environment Canada has revised the regulatory requirements. Labelling requirements will continue to apply to equipment containing greater than 50 mg/kg of PCBs upon confirmation of their PCB content. The identification of these PCBs may be conducted until the end-of-use deadline for the equipment. However, the servicing of the equipment will require that the PCB identification is conducted, which will accelerate the identification of PCB in equipment.
Comments were also received requesting the removal of the requirement for developing new records for in use and stored equipment containing PCBs. Stakeholders requested that the administrative burden associated with reporting on PCBs till such time as they are destroyed be reduced. Similar reductions in reporting requirement for transfer sites and destruction facilities (associated with reporting individual products arriving and leaving the sites) were also requested.
Environment Canada reconsidered and has reduced the record keeping and reporting requirements in order to alleviate the administrative burden. Under the revised requirements, available information and existing records on PCBs and equipment can be used to demonstrate compliance with the Regulations.
Sampling and analysis
Concerns were raised by industry regarding the need to sample and analyze equipment for which PCB concentrations have already been established using recognized analytical methods that are different from the one specified in the regulatory text. They requested that previous testing results and record keeping systems be recognized for the purpose of demonstrating compliance with the Regulations. Industry also indicated that the specified method could not be used for all potential PCB matrices, such as bulk or non-homogeneous products.
In response to these concerns, Environment Canada has modified the requirements to allow the use of PCB analysis results obtained by an accredited laboratory using a recognized method for the product in which the PCBs are located and which is part of the scope of the accreditation of the laboratory. A requirement has also been added regarding the use of a recognized sampling method for bulk solid products.
Definitions and terminology
Stakeholders indicated their difficulties in understanding some of the new terminology used in the regulatory text, including “temporarily out of use,” product, process, liquid or solid.
Environment Canada has made modifications to clarify the requirements where possible. The term “temporarily out of use” has been removed and the type of activity applicable has been clarified in the requirements. Environment Canada has not defined product, process, liquid or solid, as this terminology is already well defined in the literature.
Cost-benefit analysis
One provincial utility indicated that the estimated equipment decommissioning costs in Environment Canada’s regulatory impact analysis statement (RIAS) of proposed Regulations did not adequately reflect their costs. The utility provided Environment Canada additional data of their PCB equipment inventory and incremental cost projections and requested that these be included in the cost-benefit analysis of the RIAS.
The additional information provided to Environment Canada was used to update the PCB inventory data. This in turn impacted the incremental costs and benefits associated with the phase-out of in-use and in-storage PCBs and equipment containing PCBs. The RIAS now reflects the changes to the inventory as well as the cost-benefit analysis.
Implementation, enforcement and service standards
Implementation
For the purpose of implementing the regulatory requirements, Environment Canada will undertake a number of compliance promotion activities. These activities will be targeted toward raising awareness and encouraging the regulated community to achieve a high level of overall compliance as early as possible during the regulatory implementation process. This will include the following:
The coordination and implementation of compliance promotion activities will be completed through the National Performance Promotion Working Group on Wastes and PCBs (NPPWG), an Environment Canada Headquarters and regional offices working group. The NPPWG will consider opportunities for the coordination of compliance promotion activities with other regulations under CEPA 1999 which may have similar regulated activities, regulatees and compliance promotion approaches.
Coordination and cooperation opportunities also exist to partner with organizations outside Environment Canada to perform compliance promotion activities such as identifying regulatees and delivering the key messages. These may include
Compliance promotion activities will be revisited from time to time to ensure that the Regulations are implemented in the most effective and efficient manner.
Enforcement
Since the Regulations are made under CEPA 1999, enforcement officers will, when verifying compliance with the Regulations, apply the Compliance and Enforcement Policy for CEPA 1999. The policy also sets out the range of possible responses to alleged violations: warnings, directions, environmental protection compliance orders, ticketing, ministerial orders, injunctions, prosecution, and environmental protection alternative measures (which are an alternative to a court trial after the laying of charges for a CEPA 1999 violation). In addition, the policy explains when Environment Canada will resort to civil suits by the Crown for costs recovery.
When, following an inspection or an investigation, an enforcement officer discovers an alleged violation, the officer will choose the appropriate enforcement action based on the following factors:
Environment Canada will monitor and review the phase-out of PCBs and equipment containing PCBs as necessary to determine whether further actions may be required to achieve the objectives of the Regulations.
Service standards
The Regulations provide for an extension of the December 31, 2009 deadline (up to a maximum of 2014) for equipment containing 500 mg/kg or more of PCBs, provided the conditions specified in the Regulations are met. Permit applications are to be submitted to the Minister no later than August 1, 2009. Environment Canada will not be charging application fees to the applicants. The applications for extension will be reviewed by Environment Canada. The administrative procedure may take up to 30 working days. Environment Canada will make every effort to respond quickly to extension applications. The administrative process will include the following:
Compliance with the service standards for processing extension applications will be monitored and evaluated as part of the regulatory evaluation.
Performance measurement and evaluation
The Regulations have been developed to protect the health of Canadians and Canada’s environment from the risks posed by the use, storage and release of PCBs. By the end of 2009, the Regulations are expected to result in the removal of 90% of the PCBs still in use and 100% of the PCBs currently in storage, which will reduce the risk posed by PCBs. The removal of the remaining stock of PCBs in use will be achieved by 2025. The reduction in stocks of PCBs and material containing PCBs combined with improved storage practices should result in fewer fires and spills involving PCBs. This is particularly important with respect to PCBs and products containing PCBs in sensitive areas such as schools, hospitals and long term care facilities. In the longer term, the Regulations will result in reduced releases, exposures and environmental and health impacts. As the environment and ecosystems gradually recover, lower levels of PCBs in the environment should be realized. Reduced levels of PCBs in the environment will contribute to the prevention of adverse health impact associated with exposure to PCBs.
The reduction in risk contributes directly to Environment Canada’s strategic objective and is aligned with the various Government of Canada regulatory initiatives and the CMP. The initial review of the CMP is scheduled to be completed in 2010-2011 and an evaluation plan for the CMP is being developed this fiscal year (2008-2009). In addition to meeting Canadian environment and health objectives, the Regulations also implement Canada’s national and international commitments on the use (including exports and imports), storage and elimination of PCBs.
Through its enforcement activities, Environment Canada will be in a position to evaluate to what extent the reduction in PCBs and products containing PCBs in use and storage have been achieved by the deadlines specified in the Regulations. Reporting of the incidence of non-compliance by enforcement officers between 2009 and 2025 and the mandatory reporting by those subject to the Regulations is expected to provide indicators of this achievement. Environment Canada may use these indicators to pursue further action as appropriate.
The Regulations will be administered by Environment Canada’s Waste Reduction and Management Program. The Regulations will be evaluated under this program and will be summarized and reported on regularly. The progress, performance and overall effectiveness of the regulatory initiatives, which are part of the Waste Reduction and Management Program, will be reported on through a variety of means, including the CEPA Annual Report and the Departmental Performance Reports.
Contacts
Francine Laperrière
Head, PCB Program
Waste Reduction and Management Division
Environment Canada
Gatineau, Quebec
K1A 0H3
Telephone: 819-953-1670
Fax: 819-997-3068
Email: francine.laperriere@ec.gc.ca
Markes Cormier
Senior Economist
Regulatory Analysis and Instrument Choice Division
Environment Canada
Gatineau, Quebec
K1A 0H3
Telephone: 819-953-5236
Fax: 819-997-2769
Email: markes.cormier@ec.gc.ca
Footnote a
S.C. 2004, c. 15, s. 31
Footnote b
S.C. 1999, c. 33
Footnote c
S.C. 2002, c. 7, s. 124
Footnote d
S.C. 1999, c. 33
Footnote 1
SOR/91-152
Footnote 2
SOR/92-507; SOR/2000-102, s. 15
Footnote 3
More information on CMP is available at http://www.chemicalsubstanceschimiques.gc.ca/plan/index_e.html.
Footnote 4
More information on Chemical Substances of Interest to Canadians is available at http://www.chemicalsubstanceschimiques.gc.ca/interest-interet/index_e.html.
Footnote 5
Environment Canada (March 1997), Scientific Justification: Polychlorinated Biphenyls, Candidate Substances for Management under Track 1 of the Toxic Substances Management Policy
Footnote 6
The Toxic Substance Management Policy proposes a preventive and precautionary approach to deal with substances that enter the environment and could harm the environment or human health.
Footnote 7
The following locations are considered sensitive locations: drinking water treatment plants, food or feed processing plants, child care facilities, preschool, primary or secondary schools, hospitals, or senior citizen care facilities or on the property on which the plant or facility is located within 100 metres of it.
Footnote 8
Canadian Council of Resource and Environment Ministers (1986), The PCB Story, p. 6
Footnote 9
Environment Canada (1988), Polychlorinated Biphenyls (PCBs) — Fate and Effects in the Canadian Environment, Chapter 2
Footnote 10
OECD Council (1973), The OECD Council Decision: Protection of the Environment by Control of Polychlorinated Biphenyls. Adopted February 13, 1973, C(73)1(Final)
Footnote 11
It is now known as the Canadian Council of Ministers of the Environment (CCME).
Footnote 12
Environment Canada (2005), National Inventory of PCBs in-use and PCB Wastes in-storage in Canada, prepared for the Canadian Council of Ministers of Environment. The document can be accessed at http://www.ec.gc.ca/wmd-dgd/default.asp?lang=En&n=8D2E9719-1.
Footnote 13
The Persistent Organic Pollutants are chemicals that are highly toxic, persistent and bioaccumulate in the fatty tissue of living organisms. POPs remain intact in the environment for long periods and become widely distributed geographically.
Footnote 14
For example, transformers, capacitors or other receptacles containing liquid stocks
Footnote 15
Dispersive uses include, but are not limited to, the burning of PCB-contaminated oil in waste heaters and the application of PCB-contaminated oil to roadways.
Footnote 16
High concentration PCB liquids can be found in askarel transformers and in PCB capacitors containing pure PCBs.
Footnote 17
Canadian Council of Resource and Environment Ministers (1987), PCB Phase-Out Strategy Control Options Report (preliminary)
Footnote 18
Natural Resources Canada (2005), Canadian Minerals Yearbook
Footnote 19
Headwater Environmental Services Corporation (2005), Economic Impact Analysis of Proposed Revisions to the CEPA 1999 Chlorobiphenyls Regulations and Storage of PCB Material Regulations
Footnote 20
Sheer, L. B., A. P. Downey, M. D., Ewen, T. B. Petersen, and B. G. Morrison (1998), “An Illustration of the Potential Benefits of Controlling Chemical Substances in Canada: A Case Study Approach” — Report prepared for Environment Canada
Footnote 21
The financial loss estimates have been adjusted to reflect 2007 dollar values.
Footnote 22
The document can be accessed from the Health Canada Web site at www.hc-sc.gc.ca/fn-an/surveill/total-diet/pubs/index-eng.php.
Footnote 23
One microgram = one-millionth of a gram.
Footnote 24
Health Canada (2007), Review of Existing Literature on Quantifying and Valuing Human Health Risks Associated with Low Level Exposure to PCBs. The report is available at www.hc-sc.gc.ca/ewh-semt/pubs/contaminants/pcb/index_e.html.
Footnote 25
The TSMP can be accessed from the Environment Canada Web site at www.ec.gc.ca/toxics/TSMP/EN/tsmp.pdf.
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