FEDERAL NEWS

Chemicals Management Plan: Notice of Second Release of Technical Information for Batch 2 Challenge Substances

Notice of the second release of technical information for the batch 2 Challenge Substances was published in the Canada Gazette Part I on May 12, 2007.

On December 9, 2006, the Government of Canada published the Notice of Intent to Develop and Implement Measures to Assess and Manage the Risks Posed by Certain Substances to the Health of Canadians and Their Environment in which it highlighted how it intended to address approximately 200 chemical substances identified as high priorities for action. The substances were characterized as high priority for action based on the following criteria: (1) the substances were identified as being persistent and bio-accumulative, and when combined with evidence of toxicity and releases into the environment, could either lead to harmful ecological impacts, or (2) there is evidence that the substances may be mutagenic carcinogens and that there is a probability of harm to human health at any level of exposure, or (3) there is evidence that the substances exhibit carcinogenicity, mutagenicity, developmental toxicity, or reproductive toxicity.

The Notice requires any person who during the 2006 calendar year, manufactured or imported a total quantity greater than 100 kg of a substance or used a total quantity greater than 100 kg whether alone, in a mixture, in a product or in a manufactured item, at a concentration greater than 50%, to make a mixture, product or manufactured item, or who during the 2006 calendar year, used a total quantity greater than 10,000 kg at any concentration, to provide information relating to the substance. The information required to be provided includes the Chemical Abstracts Service Registry Number (CAS RN), the type of mixture, the concentration, the use pattern, the quantity and the trade names of the products in which the substance appears. Information is required on the total quantity released to the environment or transferred to an off-site waste management facility. A description of procedures and policies to prevent or minimize releases, and studies or data in respect of those substances is also required to be provided.

If new information for the 17 batch 2 substances is not received by November 13, 2007, then by no later than February 16, 2008, there will be a 60 day public comment period on the screening assessment for the substances and a proposal to pursue measures in respect of the substances, including restrictions on use and potential bans on the use of both substances. If information is received by November 13, 2007, then that information will be considered and by no later than May 17, 2008, a 60 day comment period will commence on the screening assessment and potential measures to control the future use or limit the use of the substances.

The batch 2 Challenge substances identified as persistent, bioaccumulative, and inherently toxic to non-human organisms and believed to be in commercial use in Canada are:

CAS No.	Substance Name±
540-97-6	Cyclohexasiloxane, dodecamethyl-
541-02-6	Cyclopentasiloxane, decamethyl-
556-67-2*	Cyclotetrasiloxane, octamethyl-
732-26-3	Phenol, 2,4,6-tris(1,1-dimethylethyl)-
2778-42-9	Benzene, 1,3-bis(1-isocyanato- 1 – methylethyl)-
4474-24-2	Benzenesulfonic acid, 3,3'-[9,10-dihydro-9, 10-dioxo-1,4-anthracenediyl)diimino]bis[2,4,6-trimethyl-,disodium salt
15086-94-9	Spiro[isobenzofuran-1(3 H ),9'-[9 H ]xanthen]-3-one, 2',4',5',7'-tetrabromo-3',6'-dihydroxy-
70161-19-2	Benzenesulfonic acid, [(9,10-dihydro-9,10-dioxo-1,4-anthracenediyl)bis(imino-4,1-phenyleneoxy)]bis-, disodium salt
83006-67-1	Benzenesulfonic acid, 2,2'-[9,10-dihydro-5,8-dihydroxy-9,10-dioxo-1,4-anthracenediyl)diimino]bis[5-(1,1-dimethylethyl)-, disodium salt
125351-99-7	9,10-Anthracenedione, 1,4-bis[4-methylphenyl)amino]-, sulfonated, potassium salts
Eight substances are identified as presenting a high hazard to humans and a high likelihood of exposure to individuals in Canada:
CAS No.	Substance Name±
62-56-6	Thiourea
78-79-5	1,3-Butadiene, 2-methyl-
80-05-7	Phenol, 4,4'-(1-methylethylidene)bis-
106-89-8	Oxirane, (chloromethyl)-
108-05-4	Acetic acid ethenyl ester
556-67-2*	Cyclotetrasiloxane, octamethyl-
1344-37-2	C.I. Pigment Yellow 34
12656-85-8	C.I. Pigment Red 104

For more information please see the Canada Gazette Part 1, Vol. 141, No. 19, May 12, 2007, p.1182 or www.chemicalsubstances.gc.ca.

± The Department of the Environment has revised the names of the chemical substances listed in this notice.

* Cyclotetrasiloxane, octamethyl- (556-67-2) has been identified under both statement A and B.

± The Department of the Environment has revised the names of the chemical substances listed in this notice.

Chemicals Management Plan: Notice of Identification of the Third Batch and Proposed Batches of the Remaining Substances on the Industry Challenge

Notice was published in the Canada Gazette Part I on May 12, 2007 of the 20 substances assigned to batch 3, and the substances within the remaining batches of the Challenge Substances.

The substances were identified during the categorization exercise conducted in order to comply with the requirements of the Canadian Environmental Protection Act. The batch 3 Challenge substances identified as persistent, bioaccumulative, and inherently toxic to non-human organisms and which are believed to be in commercial use in Canada are listed below.

CAS No.	Substance Name ±
81-68-5 *	Benzenesulfonamide, N -(4-amino-9,10-dihydro-3-methoxy-9,10-dioxo-1-anthracenyl)-4-methyl-
1594-08-7	9,10-Anthracenedione, 1-hydroxy-4-[[4-[(methylsulfonyl)oxy]phenyl]amino]-
2425-85-6	2-Naphthalenol, 1-[(4-methyl-2-nitrophenyl)azo]-
2814-77-9	2-Naphthalenol, 1-[(2-chloro-4-nitrophenyl)azo]-
3468-63-1	2-Naphthalenol, 1-[(2,4-dinitrophenyl)azo]-
4395-65-7*	9,10-Anthracenedione, 1-amino-4-(phenylamino)-
6410-09-9*	2-Naphthalenol, 1-[(2-nitrophenyl)azo]-
6410-13-5*	2-Naphthalenol, 1-[(4-chloro-2-nitrophenyl)azo]-
6410-41-9*	2-Naphthalenecarboxamide, N -(5-chloro-2,4-dimethoxyphenyl)-4-[[5-(diethylamino)sulfonyl]-2-methoxyphenyl]azo]-3-hydroxy-
6471-01-8*	2-Anthracenesulfonic acid, 4,4'-[(1-methylethylidene)bis(4,1-phenyleneimino)]bis[1-amino-9,10-dihydro-9,10-dioxo-, disodium salt
20241-76-3	9,10-Anthracenedione, 1,8-dihydroxy-4-nitro-5-(phenylamino)-
25155-25-3	Peoxide, [1,3(or 1,4)-phenylenebis(1-methylethylidene)]bis[(1,1-dimethylethyl)
60352-98-9	1-Propanaminium, 3-[[4-[2,4-dimethylphenyl)amino]-9,10-dihydro-9,10-dioxo-1-anthracenyl]amino]- N,N,N, -trimethyl-,methylsulfate
72243-90-4	Benzenesulfonic acid, 3-[[4-[aminto-9,10-dihydro-9,10-dioxo-3-[sulfo-4-(1,1,3,3-tetramethylbutyl)phenoxy}-1-anthracenyl]amino]-2,4,6-trimethyl-, disodium salt
74336-60-0*	9,10-Anthracenedione, 1-[5,7-dichloro-1,9-dihydro-2-methyl-9-oxopyrazolo[5,1- b ]quinazolin-3-yl)azo]-

The batch 3 Challenge substances identified as a high hazard to humans and presenting a high likelihood of exposure to individuals in Canada are set out below.

CAS No.	Substance Name ±
110-49-6	Ethanol, 2-methoxy-,acetate
111-15-9	Ethanol, 2-ethoxy-,acetate
111-77-3	Ethanol, 2-(2-methoxyethoxy)-
1589-47-5	1-Propanol, 2-methoxy-

For more information please see the Canada Gazette Part 1, Vol. 141, No. 19, May 12, 2007, p.1201.

For a complete list of the Challenge Substances, please see the Chemical Substances Portal (www.chemicalsubstances.gc.ca ).

± The Department of the Environment has revised the names of the chemical substances listed in this notice.

* Substances for which no response was received to the notice published in the Canada Gazette , Part I, Vol. 140, No. 9, under section 71 of the Canadian Environmental Protection Act, 1999, on March 4, 2006, but for which stakeholders submitted the Declaration of Non-Engagement form indicating their interest in the substances.

± The Department of the Environment has revised the names of the chemical substances listed in this notice.

NEWS FROM THE PROVINCES

ONTARIO:

Amendments to Part XV.1 of the Environmental Protection Act

The Budget Measures and Interim Appropriation Act, 2007 assented to on May 17, 2007 amended the Records of Site Condition section of the Environmental Protection Act. The amendments clarified certain provisions of Part XV.1 For example, section 168.2 has been amended to provide that a property meets the applicable site condition standards if the concentration of the contaminants in the land and water on, or under the property does not exceed the standards prescribed by a Regulation or the standards specified in a risk assessment.

Other amendments addressed the powers of the Director upon filing of a Record of Site Condition. Subsection 168.4(3), which provides for the written acknowledgement from the Director of the filing of a Record of Site Condition on the Registry, has been substituted with language which permits the Director to give notice that a Record of Site Condition cannot be filed if it has not been completed in accordance with the Regulation or that the Director intends to conduct a review of the Record of Site Condition before it can be filed in the Registry. The Director will be required to provide notice of a defect in the Record of Site Condition and the owner may then submit further information and correct the defect. These amendments are not yet in force and will come into force upon proclamation.

Clarification has also been provided as to the consequences of filing a Record of Site Condition where contaminants subsequently move onto another property. The protection afforded by the Record of Site Condition from Ministry of the Environment orders will only be lost if the concentration of the contaminants at the other property exceeds the prescribed limits. Previously this protection was lost even if only minute levels of contaminants crossed the property line.

For more information see:
http://www.ebr.gov.on.ca/ERS-WEB-External/displaynoticecontent.do?
noticeId=MTAwMzY2&statusId=MTQ5OTUy&language=en

Amendments to Classification and Exemption of Spills Reporting of Discharges Regulation

Ontario Regulation 225/07 filed on June 6, 2007 amended Ontario Regulation 675/98 (Classification and Exemption of Spills). The Regulation amends the definition of a Class X Spill and specifies when notice is required to be given to the Ministry of the Environment, notwithstanding the general exemption from the obligation to give notice. A Class X spill has been redefined as a spill that does not enter and is not likely to enter any waters and immediately before it occurs is described as "non-reportable" in a spill contingency plan that meets the "Emergency Preparedness and Response" (CAN/CSA-Z731-03) standards. Subsection 10(3) of Regulation 675/98 as amended now provides that notice is to be given where the quantity spilled is more than the amount specified in the Spill Contingency Plan established pursuant to Ontario Regulation 224/07, where the spill was caused deliberately, if the spill causes adverse effects, if arrangements for remediation were not made and where the spill enters water or is likely to enter waters.

The Regulation adds Part II, which sets out, in detail, the notification requirements for persons who are required to give notice of a discharge or a spill. The information required to be provided includes not only information about the substance which is the subject of the spill, but also includes any relevant information regarding the cause of the discharge, the circumstances surrounding the discharge, or where the cause is not known, the person's assessment of the most likely cause based on the best information available, and an explanation of steps that have been taken or will be taken to determine the cause. A description of adverse effects that occurred or may occur, and a description of the conditions that may aggravate or mitigate the adverse effects is also required.

Draft Financial Plans Regulation for Municipal Drinking-Water Licence Program

One of the recommendations of Justice O'Connor's Part II Walkerton Report was that a Municipal Drinking Water licence Program be developed and implemented and that as a part of such a program the owners and operating authorities implement a quality management approach to operations and maintenance. The draft Financial Plans Regulation loaded on the Environmental Bill of Rights Registry on May 4, 2007 for a 35 day comment, is intended to assist in the implementation of the quality management approach.

The draft Financial Plans Regulation defines the requirements for Financial Plans for municipal drinking-water systems that are required as part of the application process for a drinking-water licence under Part V of the Safe Drinking Water Act, 2002. The proposed Regulation prescribes different requirements for existing systems and new systems. For existing systems, Financial Plans must be developed for a six (6) year period and must contain details of a system's financial position, financial operations and cash flow. The Financial Plans must be approved by the owner and must be updated with every application to renew the licence.

For new systems, the Regulation proposes to require the owner to declare, in a form of a resolution, that the financial impacts for the proposed system have been considered and that it is financially viable. Under new municipal accounting standards, municipalities will have to adopt full accrual accounting practises beginning January 1, 2009.

The Regulation proposes to require the first set of Financial Plans for existing system through a condition imposed on the first drinking-water licence. The Regulation will require submission of Financial Plans for existing systems following July 1, 2010 or six (6) months after the drinking-water licence is issued (whichever date is later). A Financial Plans Guideline has been developed to assist the municipalities in meeting their obligation under this Regulation. Part II of the Guideline introduces a number of possible approaches to implementing long-term capital planning, asset management and other principles to support financially sustainable drinking-water and waste water systems.

For more information please see EBR Registry: 010-0490

Environmental Penalties Regulation

Ontario Regulation 222/07 made under the Environmental Protection Act was filed on June 6, 2007.

The Regulation provides for the assessment of environmental penalties to "regulated persons", defined as that class of persons who own or operate a plant that is found or listed in Table 1 to the Regulation or is described in Section 3 of Ontario Regulation 560/94 (Effluent Monitoring Effluent Limit – Metal Mining Sector) or which otherwise discharges sewage to a surface watercourse and which is listed in the Regulation. The industries specified are the non-municipal Municipal and Industrial Strategy for Abatement (MISA) Industries. This Regulation identifies the contravention for which an environmental penalty may be imposed, the procedure relating to the order imposing the environmental penalty and a Request for Review of a penalty, and the specific matters which may be considered by the Director upon request for a Review of a penalty.

The Regulation prescribes the formula for calculating the penalty. The amount of the environmental penalty for a contravention is the "monetary benefit" received by the regulated person as a result of a contravention plus the "gravity component" for the contravention, minus the reduction, if any, to the gravity component due to prevention or mitigation, the reduction for the presence of an environmental management system and the reduction resulting from an agreement with the Director. The Regulation also provides the Director with the discretion to reduce the amount of the environmental penalty if the Director determines that the environmental penalty by its magnitude is punitive in nature.

Monetary benefits are defined as including avoided costs and delayed costs. The amount of the monetary benefit is to be determined in accordance with the Ministry of Environment publication "Procedure for the Calculation of the Monetary Benefit Component of the Environmental Penalties".

A formula is provided for the determination of the "gravity component". The gravity component is determined by whether the contravention is a Type 1, 2 or 3 contravention as set out in Table 2 to the Regulation and whether it is less serious, serious or very serious. Other factors include the history of contraventions, the extended delay in complying with the requirement that was contravened, and the extent of the deviation from the requirement that was contravened. The penalty is increased if the Director determines that the discharge contains a toxic substance and by the number of days on which the contravention occurred.

The Regulation specifies how it is determined that a contravention is less serious, serious or very serious. The seriousness of the contravention is defined in accordance with the factors identified in the separate sections which deal with specified contraventions, such as contraventions of section 14 and 93 of the Act. For example, section 10 of the Regulation defines a contravention of section 14 of the Act as serious where the contravention causes localized injury or damage to plant or animal life, widespread or long-term interference with the normal conduct of business, widespread or long-tem loss of enjoyment of the normal use of property, widespread damage to property other than plant or animal life. Section 10 of the Regulation defines a contravention of section 14 of the Act as very serious where the contravention causes widespread injury or damage to plant or animal life, harm or material discomfort to any person, an adverse effect on the health of any person, or the impairment of the safety of any person.

Section 11 of the Regulation defines a contravention as very serious if the regulated person failed to take any effective action to prevent, eliminate or ameliorate the adverse effects resulting from the spill or to restore the natural environment. Other sections define the degree of seriousness for the contravention of a discharge limit, failure of an acute lethality test, settlement agreement or other contravention.

The Regulation specifies the factors used to calculate the reductions for prevention or mitigation, for an environmental management system and for an agreement with the Director and caps the reduction for each of these factors. The factors to be used in calculating the reduction for prevention or mitigation are specified in section 16. The steps entitling a regulated person to a reduction to the gravity component in an amount that does not exceed either 10%, 20% or 30% of the gravity component are specified. A reduction of up to 30% of the gravity component may be granted by the Director where before a contravention occurred, the regulated person installed or maintained notification system to alert the operators of the plant when the contravention occurs, developed or implemented and trained employees in the appropriate procedures to respond to a contravention and where, after the contravention occurred, the regulated person promptly eliminated or ameliorated any adverse affects of the contravention or established monitoring or sampling to minimize risk to the environment.

This Regulation comes into force on August 1, 2007.

Other regulations applicable to the class of persons subject to the Environmental Penalties Regulation, also filed on June 6, 2007 include Ontario Regulation 224/07 (Spill Prevention and Contingency Plans) and the industry sector regulations, Ontario Regulation 233/07 (Pulp and Paper Sector), 234/07 (Metal Mining Sector), 235/07 (Industrial Minerals Sector), 236/07 (Metal Casting Sector), 237/07 (Organic Chemical Manufacturing Sector), 238/07 (Inorganic Chemical Sector), 239/07 (Iron and Steel Manufacturing Sector) and 240/07 (Electric Power Generation Sector).

The Spill Prevention Contingency Plans Regulation comes into force on September 1, 2008. This Regulation requires regulated persons to develop and implement a Spill Prevention and Contingency Plan meeting the requirements as set out in the Regulation. In the event a spill occurs, the Regulation requires the owner or operator of the plant to review the Plan in order to determine whether or not amendments are required. An annual review of the Plan is to be conducted for the purpose of identifying inadequacies and revisions to the Plan are to be made as necessary to prevent, eliminate or ameliorate any adverse effects that may result from the spill.

Importantly, this Regulation imposes the obligation on an officer or director of the corporation to conduct such an annual review and for each year after 2008 to make a written statement indicating that the review was conducted, and that in the person's opinion, on January 1 of the year, the information contained in the Spill Prevention and Contingency Plan is accurate, that the Spill Prevention and Contingency Plan is adequate to prevent or reduce the risk of spills when they occur and that the Plan is adequate to prevent, eliminate or ameliorate any adverse effects that may result from the spill.

The sector specific regulations amend the regulations specific to each MISA industry to require sampling and analyses to comply with the Ministry of the Environment "Protocol for the Sampling and Analysis of Industrial/Municipal Wastewater". These Regulations come into force on August 1, 2007.

For more information, please see:

• http://www.ebr.gov.on.ca/ERS-WEB-External/displaynoticecontent.do?noticeId=
  Mjg1NzY=&statusId=MTUwMjQw&language=en

Licensing of Municipal Drinking Water Systems

Ontario Regulation 188/07 made under the Safe Drinking Water Act, 2002 was filed on May 4, 2007. This Regulation requires the owners of the municipal drinking-water systems listed in the Schedule to the Regulation to apply for a drinking-water works permit and a municipal drinking-water licence under Section 33 of the Safe Drinking Water Act, 2002. Operational plans for the drinking-water systems are also required to be filed with the Director on the prescribed date. The applicable date for the submission of operational plans for a large number of the GTA municipalities is January 1, 2009.

For information please see the Ontario Gazette, Vol. 140-20, May 19, 2007, p. 1635.

Liquid Fuels Handling Code, 2007

The Liquid Fuels Handling Code, 2007 was adopted by the Technical Standards and Safety Authority (TSSA) by Director's Order FS-107-07 on June 1, 2007. The 2007 version of the Code will come into force on September 1, 2007.

Changes to the Code include reference to the revised Environmental Management Protocol for Operating Fuel Handling Sites in Ontario, which amends Protocol GA1/99. The amendments to the Environmental Management Protocol update the reporting and investigative obligations in the event of spills or leaks and integrate these requirements under the Protocol with the Soil, Ground Water, Sediment Standards for Use Under Part XV.1 of the Environmental Protection Act.

One additional significant change in the 2007 version of the Code is the requirement that facilities replace single-walled piping within 12 months of the discovery of a pipe leak.

 

QUÉBEC:

Aluminum Production Sector Agreement to Reduce GHG's

The Aluminum Association of Canada and the Québec Ministry of Sustainable Development, Environment and Parks announced on June 26, 2007 the execution of a voluntary agreement aimed at further reducing greenhouse gases (GHG) in the aluminum production sector in Québec. This is the second such agreement between the MSDEP and the aluminum industry. The agreement that will come into effect on January 1, 2008, involves the existing aluminum production facilities in Québec and is aimed at reducing their GHG by 150,000 tons of CO2 equivalent between 2008 and 2013. This industry has already reduced its emissions by 6.7% between 1990 and 2005. New facilities starting up after January 1, 2008 will be required to meet an objective of 2 tons of GHG per ton of aluminum produced. The Minister of Sustainable Development, Environment and Parks, Ms. Line Beauchamp, has invited other industrial sectors to consider entering into similar agreements. The agreement, while setting targets to meet on a voluntary basis and providing for public awareness programs to be implemented to enhance recycling and waste reduction, does not exempt however the aluminum producers from complying with applicable regulatory requirements.

What's Happening

Harry Dahme spoke on Liability for Contaminated Sites and Canadian Environmental Law Applicable to Contaminated Sites at the 12^th Annual Short Course on Contaminated and Hazardous Waste Site Management.

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Mark Madras will be speaking at the meeting of the Canadian Corporate Counsel Association to be held in Calgary, Alta., on August 13, 2007. Mark will be presenting in a workshop discussion on the subject of "Strategic Response to Environmental Risk".