Canada Gazette, Part I, Volume 155, Number 27: Prohibiting the Manufacture and Import of Wheel Weights Containing Lead in Canada Regulations

July 3, 2021

Statutory authority
Canadian Environmental Protection Act, 1999

Sponsoring departments
Department of the Environment
Department of Health

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Lead is the most common material used for wheel balancing in the Canadian wheel weight market. Lead wheel weights are lost on roads and highways every year, and generate lead dust. This dust can build up in soil, enter waterways through runoff, or be inhaled. These pathways of exposure to lead dust can give rise to adverse human health and environmental impacts. Since it is a non-biodegradable metal, lead can also accumulate in the environment, contaminate water, and poison wildlife. Without action, it is expected that lead wheel weights will continue to be manufactured in and imported into Canada, resulting in continued risks to human health and ecosystems from exposure to elevated concentrations of lead in the environment.

Background

Lead is listed in Schedule 1 (the List of Toxic Substances) to the Canadian Environmental Protection Act, 1999 (CEPA). CEPA provides the Minister of the Environment (the Minister) and the Minister of Health with the authority to control the importation, manufacture, distribution, and use of lead and lead compounds in Canada. Lead is subject to numerous federal risk management initiatives in Canada that target drinking water, food, natural health and therapeutic products, cosmetics, tobacco, and other consumer products, as well as the environment. CEPA prohibits the addition of lead in gasoline and controls its release from secondary lead smelters, steel manufacturing, and mining effluents.

Lead is an odourless metal that is malleable, ductile, and resistant to chemical corrosion. It is a naturally occurring substance found at low levels in bedrock, soil, sediment, surface water, groundwater, and seawater. Lead also occurs naturally at low levels in food through uptake of soil by plants and the subsequent consumption of plants by animals, and through uptake of water and sediments by fish. Its dispersal in the environment is mainly due to human activities, including the use and disposal of products; in particular, lead ammunition, sinkers and jigs for fishing, and wheel weights.

Lead is the most common material, and has historically been the preferred metal used for wheel balancing on vehicles because of its physical and chemical properties. Wheel weights are installed on the wheels of vehicles to correct uneven weight distribution in wheel and tire assembly in order to prevent tire and suspension assembly wear, and to help stabilize vehicles at high speeds.

Lead exposure and blood lead levels in Canada

Since the late 1970s, Canadian blood lead levels have declined by more than 70%. This decline is mainly attributed to the successful phase-out of lead in gasoline, paint and surface coatings, and the elimination of lead alloys used for soldering food cans. However, although blood lead levels have continued to decline, lead is still widely detected in the Canadian population.footnote 1

In 1994, the Federal-Provincial Committee on Environmental and Occupational Health recommended a blood-lead level of 10 micrograms per decilitre (µg/dL) as guidance for a lead exposure threshold. Since the establishment of this blood-lead threshold, scientific evidence has been published that demonstrates the critical health effects that can occur below a blood-lead level of 10 μg/dL. Health effects are well documented at blood lead levels as low as 1–2 µg/dL. The risks associated with lead in the bloodstream include developmental neurotoxicity, and neurodegenerative, cardiovascular, renal and reproductive effects.

Objective

The objective of the proposed Prohibiting the Manufacture and Import of Wheel Weights Containing Lead in Canada Regulations (the proposed Regulations) is to reduce human and environmental exposure to lead by prohibiting the manufacture and import of lead wheel weights destined for the Canadian market, which would help reduce the adverse health impacts resulting from lead exposure, and help improve air, water and soil quality.

Description

The proposed Regulations would be made under section 93 of CEPA and come into force 12 months after the day on which they are registered. They would prohibit the manufacture in and import into Canada of wheel weights that contain more than 0.1% by weight of lead. The proposed Regulations would not apply to the sale or offer for sale, to the manufacture for export, or to the transit through Canada, of lead wheel weights, regardless of their lead content.

The proposed Regulations provide compliance flexibility to regulated parties in the form of a permitting regime. However, since alternatives are readily available, permit applications are not anticipated. In exceptional circumstances, the Minister may issue a permit to a manufacturer or importer of wheel weights to allow specific use in Canada. The permit applicant would be required to demonstrate that, at the time of the application, there are no alternatives to manufacturing or importing wheel weights containing lead, or the alternatives are not technically or economically feasible for the applicant. The permit would expire 24 months after the day on which the Minister issues the permit, and the Minister may renew it once for an additional 24 months.

Regulatory development

Consultation

The Department of the Environment (the Department) consulted stakeholders from 2014 to 2017 on the development of the proposed Regulations. These stakeholders include industry members operating in Canada (i.e. a manufacturer, importers and distributors; downstream users; independently owned repair shops, car dealers and tire dealers; and secondary lead smelters, scrap yards, recyclers, and scrap metal brokers), environmental non-governmental organizations, and non-profit organizations.

In February of 2013, Health Canada, in collaboration with the Department, published the Risk Management Strategy for Lead that outlines actions to further reduce risks associated with exposure to lead. The overall risk management objective is to reduce exposure to lead to the greatest extent practicable by strengthening current efforts in priority areas where the federal government can have the greatest impact upon the exposure of Canadians. One of the Department's commitments is to investigate the need for actions to encourage the use of alternatives to lead wheel weights in Canada.

In August of 2014, the Department held a public consultation session on proposed risk management options, which included both regulatory and voluntary approaches, to phase out lead wheel weights in the Canadian market, followed by a 30-day comment period.footnote 2 Over 20 stakeholders representing various groups attended the public consultation session. Twelve out of the 20 stakeholders provided comments on a variety of subjects. These comments were considered during the selection of the proposed risk management instrument.

Most stakeholders were opposed to voluntary action, such as an environmental performance agreement, since it may provide non-participants with the opportunity to take a significant share of the wheel weight market. Industry stakeholders indicated that regulatory action would help establish a level playing field and would allow for an alignment with existing risk management actions in other jurisdictions (i.e. the European Union, Japan, and several U.S. states). In particular, importers and the sole manufacturer in Canada expressed overwhelming support for regulations prohibiting the manufacture and import of lead wheel weights. As a result, only regulatory options were further considered.

Some stakeholders indicated that there is resistance to change from lead wheel weights to alternatives among end-users, even though the alternatives are very similar in terms of the installation process and have an identical function. Most recyclers expressed opposition to regulatory action since it would have an impact on their activities. Given that recyclers collect used lead wheel weights for recycling and sell recycled lead to wheel weights manufacturers, the regulation would decrease their supply and demand for lead.

Considering the support expressed by industry stakeholders to take regulatory action, the Department held a consultation session on key elements of the proposed regulatory option on March 9, 2017. This session was followed by a 30-day public comment period, which ended on April 6, 2017.footnote 3 In total, 10 stakeholders attended the public consultation session and 5 of them provided comments to the Department. These comments, which are summarized below along with the Department's responses, were taken into consideration in the development of the proposed Regulations.

Summary of comments and responses from 2017

Risk management approach

Comment: Stakeholders indicated that they preferred regulatory action over voluntary instruments such as an environmental performance agreement. Regulations would force the entire Canadian market to use alternatives. There are multiple importers of lead wheel weights in Canada, and the regulatory option would force all importers to abide by the same rules while not hindering export and job market opportunities.

Response: The Department acknowledges the support for the proposed regulatory option presented during consultations, and plans to move forward by allowing the export from Canada and transit through Canada of lead wheel weights.

Transition period

Comment: One stakeholder indicated that current stocks of lead wheel weights should be exempt from the proposed regulatory option, or that a notice of at least 12 months in advance of the coming-into-force date should be given to allow affected parties to clear out their inventories of lead wheel weights. Another stakeholder recommended changing the coming-into-force date of the proposed Regulations from 12 months to 18 months following their registration to allow sufficient time for the Canadian market to gradually transition to alternative wheel weights.

Response: The proposed Regulations would not impose any requirements or restrictions on existing wheel weight inventories or stocks. The Department estimates that the turnover rate of wheel weight stocks can vary from 6 to 12 months. The coming-into-force date has thus been established at 12 months following the registration of the proposed Regulations.

Aftermarket impacts

Comment: Original equipment manufacturers (OEMs) have indicated that lead wheel weights are not installed on new vehicles, nor are they used on or sold for OEM aftermarket products. However, one aftermarket facility mentioned that independently owned businesses can purchase and install any type of wheel weights, including those containing lead.

Response: The Department recognizes that there are many independently owned aftermarket businesses that range in size from micro (1–2 employees) to large (over 500 employees). As a result, tailored compliance promotion and communication material could be developed to help businesses understand the impact on the supply of lead wheel weights under the proposed regulatory option.

Comment: A few stakeholders indicated that indirect costs such as employee training would be minimal, since all wheel weights have a very similar installation process and have an identical function. One aftermarket facility indicated that the main impact would be the cost associated with managing the inventories of lead wheel weights after the coming into force of the proposed regulatory option.

Response: The Department acknowledges that industry stakeholders may assume initial costs to inform employees on the new alternative wheel weights. The Department would therefore work with industry members to communicate the implications of the prohibition, including the transition to alternative wheel weights, and how it would be enforced. Since the proposed regulatory option would not restrict the sale, offer for sale, or use of lead wheel weights, the Department does not expect there to be any changes with respect to the management of existing wheel weight inventories.

Modern treaty obligations and Indigenous engagement and consultations

Indigenous peoples were informed of the proposed Regulations and were invited to the consultation sessions. This proposal would not impact differently, directly or indirectly, the rights of Indigenous peoples, and it would respect the federal government's obligations in relation to rights protected by section 35 of the Constitution Act, 1982, modern treaties, and international human rights obligations.

Instrument choice

When determining how to address the issues identified above and considering that stakeholders were not in favour of voluntary instruments during the 2014 consultations, two options were considered: (1) maintaining the status quo; and (2) implementing the proposed Regulations. The status quo option was not chosen, as lead wheel weights would continue to enter the Canadian wheel weight market, resulting in continued risks to human health and ecosystems from exposure to lead in the environment. In addition, the proposed Regulations would ensure a level playing field in the Canadian market for wheel weights and enhance alignment with existing risk management actions in other jurisdictions around the world. For these reasons, the proposed Regulations have been chosen to enable the achievement of the risk management objectives.

Regulatory analysis

Benefits and costs

The proposed Regulations would prohibit the manufacture and import of wheel weights in Canada that contain more than 0.1% by weight of lead. By preventing new wheel weights containing lead from entering the Canadian market, the proposed Regulations would gradually eliminate lead wheel weight stocks.

It is projected that the proposed Regulations would reduce the amount of lead wheel weights lost on Canadian roads and highways by up to 90% within five years after coming into force. Regulated parties would be able to choose to import or manufacture any lead-free alternatives, with the exception of wheel weights that have a mercury concentration of 0.1% or more, the import and manufacture of which are prohibited by Canada's Products Containing Mercury Regulations.

Alternatives

Steel and zinc are two alternatives to lead that are currently being considered for wheel weights. A draft Chemical Management Plan (CMP) risk assessment, however, identified ecological concerns with zinc in mining effluent and in effluent from pulp and paper mills, so the appropriateness of zinc wheel weights is still being investigated by the Department. While lead wheel weights account for 72% of the Canadian market, it is estimated that 28% of wheel weights used in Canada are made from an alternative material. Steel is the main alternative used in North America followed by zinc, which is also used in Europe. Steel is expected to be the primary replacement over other alternatives. The manufacturer in Canada is expected to replace its lead wheel weight production by steel and zinc wheel weight production. The need to retool is not anticipated, as the manufacturer is anticipating the change, and lead-free alternatives (steel and zinc) are already widely in use. It is worth noting that the proposed conclusion in the draft CMP risk assessment is that zinc and its compounds may have immediate or long-term harmful effects on the environment or its biological diversity, especially aquatic organisms.footnote 4

Expected costs

The cost of wheel weights depends on raw material and production costs, which vary according to the style of clip-on or adhesive weight, the installation of the wheel weight on the tires, and the actual weight of the wheel weight. Steel and zinc wheel weights tend to be more expensive than lead wheel weights for most applications. Steel is expected to be the primary replacement over other alternatives. It is currently the second most popular material after lead — zinc being the third. The manufacturer in Canada is expected to replace its lead wheel weight production by steel and zinc wheel weight production.

Lead wheel weights account for about 72% of the Canadian wheel weight market, which means that approximately 3 675 tonnes of these products enter this market per year. The estimated costs of the proposed Regulations are based on wheel weights for light-duty vehicles (passenger cars, sport utility vehicles and light trucks), as these vehicles account for approximately 95% of the Canadian wheel weight market.

The Department estimates that the average weight of a wheel weight for all on-road vehicles is 57 g (two ounces). The costs of using non-lead replacements could range from $0.01 to $0.07 per wheel weight when comparing lead wheel weights to steel or zinc ones. The cost per tonne of lead wheel weights is estimated to be about $21,000; however, the cost difference to replace one tonne of lead wheel weights with an alternative is estimated to be up to $1,260, which would represent a 6% increase in the costs of materials. This difference is expected to decline over time as alternatives become more widely available, and as their relative supply increases over time, their relative cost should decrease in a competitive marketplace. The estimate does not account for product innovation that may lower the incremental costs of alternatives.

The analysis assumesfootnote 5 that lead wheel weights would be completely phased out 12 months after the coming into force of the proposed Regulations, and that lead-free products would become the only type of wheel weight manufactured, imported and distributed in the Canadian market. It also assumes that 12 months is enough time for the current stock of lead wheel weights to be used. Finally, the analysis assumes that regulated parties would pass on raw material and production costs to their customers, which include independently owned repair shops, car dealers and tire dealers.

The Department would assume incremental costs related to training, inspections, investigations, and measures to deal with any alleged violations, and compliance promotion activities. One-time upfront costs would represent $100 000 for enforcement, which would be for strategic intelligence assessment work, enforcement strategy development, and the training of enforcement officers. Annual government costs are estimated to be about $31,500 for administration, coordination and analysis to support enforcement activities; inspections and measures to deal with alleged violations; investigations; and prosecutions. These annual costs also include compliance promotion activities undertaken to increase awareness about, understanding of and compliance with the proposed Regulations, which would annually represent about $6,000. The total estimated enforcement and compliance promotion costs are projected to be about $305,000 from 2021 to 2030, using a 7% annual discount rate.

Overall, the present value costs of the proposed Regulations are projected to be up to $31 million in 2019 dollars, from 2021 to 2030, using a 7% annual discount rate.

Table 1: Summary of costs
Description of cost 2021 2022 to 2030 Total
Industry costs $0 $30,168,783 $30,168,783
Government costs $100,000 $205,230 $305,230
Total cost $100,000 $30,374,013 $30,474,013
Expected benefits

Canadians are exposed to low levels of lead through various sources, including food, drinking water, air, dust, soil, and lead-containing products. The main source of exposure for the general adult population is ingestion of food and drinking water. For infants and children, the primary sources of exposure are food, drinking water, and the ingestion of non-food items containing lead, such as house dust, paint, soil, and consumer products.

Approximately 3% to 10% of ingested lead is absorbed into the bloodstream of adults, whereas the amount absorbed into the bloodstream of children can be as high as 40% to 50%. The half-life of lead in blood is approximately 30 days, whereas the half-life of lead accumulated in the body, such as in bone, can be in the range of 10 to 30 years.

The proposed Regulations would reduce the presence of lead in the environment and reduce risks to the health of Canadians through the prohibition of lead wheel weights. Health risks from exposure to lead are well established and even small amounts can be hazardous to human health. Once absorbed by the human body, lead circulates in the bloodstream, where it accumulates in tissues, and particularly in bone. Some lead may also be sequestered in soft tissues, such as the liver, kidneys, and lungs. Bones account for approximately 70% of the total body burden of lead in children and more than 90% of the total body burden in adults.footnote 6 Lead that accumulates in bone can be remobilized and released back into circulating blood.

Although blood lead concentrations in Canadians are below the current Canadian guidance value of 10 µg/dL set by Canadafootnote 7 (and currently under review), adverse effects have been observed at levels lower than this one.footnote 8 Regardless of the significant decline in Canadian blood lead levels over the past several decades, health effects have been well documented at blood lead levels as low as 1–2 µg/dL. Although there is uncertainty associated with the effects observed at these levels, this analysis considers it appropriate to apply a precautionary approach when characterizing risks posed by lead exposure.

It is anticipated that the reduction of lead dust resulting from the proposed Regulations would generate health benefits including reduced blood lead levels, which would reduce neurotoxicity, and neurodegenerative, cardiovascular, renal and reproductive effects associated with exposure to lead. Other health benefits include improved academic achievements, social behaviours, attention and executive functions, as well as auditory and visual functions. These health benefits are expected to manifest themselves predominantly in urban areas with high traffic flow volumes.

The environmental risks posed by lead exposure can be hazardous for ecosystems and wildlife. The proposed Regulations could help reduce these risks by limiting the amount of lead released from wheel weights that contaminates air, water and soil.footnote 9

There is a high level of uncertainty associated with the fate of wheel weights containing lead that are not sent to smelters for recycling. Secondary lead exposure can occur once lead wheel weights are removed by dismantlers or aftermarket facilities (e.g. by tire dealers or during vehicle repairs), and given to hobbyists to make fishing weights, counter-weights, or other lead-based products. These activities commonly contribute to indoor air exposure to lead dust. Discarded fishing sinkers and jigs made from lead wheel weights can be mistaken for small pebbles and ingested by wildlife, such as loons and other waterbirds, and contribute to lead poisoning and possibly death. The proposed Regulations would decrease the likelihood of secondary lead exposure, thus helping to improve indoor air quality and lowering the risks to ecosystems and wildlife.

Based on a study commissioned by the Department in 2014, it is estimated that about 110 tonnes of lead wheel weights routinely fall off vehicles every year in Canada (i.e. a 3% fall off rate). These wheel weights eventually erode into lead dust that is then dispersed into the environment. In this specific circumstance, it is difficult to correlate lead exposure specifically from lead wheel weights to various health and societal outcomes for individuals. Health and societal impacts could take many years to occur, if not decades. Therefore, the benefits associated with the proposed Regulations are presented in qualitative terms, as the parameters of interest have yet to be studied and quantified in a manner that is suitable for cost-benefit analysis. For example, current lead dust concentrations in soil, waterways and ambient air from wheel weight abrasion have not been studied extensively, nor have the levels of exposure to lead from these pathways for Canadians.

Small business lens

One manufacturer and 10 importers would be impacted by the proposed Regulations. Of these regulated parties, the 10 importers are small businesses. This estimate is based on available employee count data and assumes that a small business is any business that has fewer than 100 employees. The proposed Regulations are expected to impose compliance costs for small businesses; therefore, the small business lens would apply to this regulatory proposal. The proposed Regulations are not expected to increase administrative costs, as the only record-keeping and reporting requirements being introduced through the proposed Regulations would be in the case of permits being granted and no permit applications are anticipated. In addition, the 12-month transition period before the coming into force will allow for current stock to be used and contribute to limiting the burden on businesses.

The proposed Regulations would not provide specific flexibilities to small businesses, such as exceptions. Exceptions for small businesses with respect to prohibiting lead wheel weights would allow small businesses to import lead wheel weights containing more than 0.1% by weight of lead. Such a scenario would reduce the benefits to Canadians associated with reductions in exposure to lead releases from wheel weights. Moreover, exceptions for small businesses would create a non-level playing field for manufacturers and importers operating in Canada.

Consultations were held with current and potential regulated parties prior to the publication of the proposed Regulations in the Canada Gazette, Part I. Stakeholders, including small businesses, were generally supportive of the proposed Regulations.

Table 2 below shows the expected costs to businesses resulting from the implementation of the proposed Regulations. In total, it is estimated that businesses would carry costs of about $31 million over 10 years, or 6% more for each business's material costs of wheel weights. These costs would be expected to be passed through by importers (small businesses) to customers as they mark up their importing costs to be profitable. The total costs carried by small businesses are expected to be lower than $31 million because the Department has included the manufacturer of lead wheel weights operating in Canada in the calculation of the anticipated costs, as removing this large business from the calculations could indirectly reveal confidential business information.

The expected cost values presented in Table 2 are calculated using an analytical period of 2021 to 2030, in 2019 dollars, and a 7% annual discount rate.

Table 2: Summary of small business lens analysis
Expected costs Annualized value Present value
Compliance costs (cost of switching to lead-free wheel weights) $4,295,000 $30,169,000
Administrative costs $0 $0
Total costs (all businesses) $4,295,000 $30,169,000

One-for-one rule

The proposed Regulations are not expected to introduce new administrative costs for regulated parties, unless they choose to apply for a permit. However, the Department does not expect to receive permit applications. Permits could be granted in the case of unforeseen circumstances where lead wheel weights might still need to be used for specific conditions. Permit applicants would be required to demonstrate that there are no alternatives to manufacturing or importing lead wheel weights, or that the alternatives are not technically or economically feasible. The Minister may approve and issue a permit that would allow a regulated party to manufacture or import wheel weights containing lead for usage on Canadian vehicles, subject to reporting requirements. The permit would expire 24 months after the day on which the Minister issues the permit. A regulated party may apply for a permit renewal, and the Minister may renew it once for an additional 24 months, if the conditions underlying the Minister's approval of the original permit are still satisfied.

Regulatory cooperation and alignment

Many governments around the world have implemented various regulatory initiatives, both domestically and through international collaboration, to reduce human and ecological exposure to lead. Since the manufacturing of automotive parts is a globally integrated market, the proposed Regulations would be aligned, where possible, with the prohibitions of lead wheel weights on vehicles in certain U.S. states (California, Illinois, Maine, Maryland, Minnesota, New Jersey, New York, Vermont and Washington), the European Union and Japan. These Regulations would allow manufacturers and importers in Canada to transition more rapidly towards a lead-free market for wheel weights and prevent Canada from becoming a dumping ground for lead wheel weights that are no longer able to be sold in other jurisdictions where restrictions are already in place.

Strategic environmental assessment

The proposed Regulations have been developed under Canada's Chemical Management Plan, a Government of Canada initiative aimed at reducing the risks posed by chemicals to Canadians and their environment. A strategic environmental assessment was completed in 2011 and concluded that regulatory policies developed under the Chemical Management Plan are expected to reduce the risks posed by toxic substances. This anticipated outcome is in line with the “Safe and Health Communities” goal of the 2019–2022 strategy, Achieving a Sustainable Future: A Federal Sustainable Development Strategy for Canada (PDF).

Gender-based analysis plus

The proposed Regulations are not expected to result in direct and disproportionate impacts on individuals based on identity factors such as race, ethnicity, religion, age, income and mental or physical disability. Since the amount of lead that enters the environment is anticipated to decrease, the proposed Regulations could possibly lead to indirect and disproportionate impacts (benefits) based on sex, age, gender and geography. In the Fifth Report on Human Biomonitoring of Environmental Chemicals in Canada, Health Canada indicates that in 2016–2017, blood lead levels were significantly higher in males aged 3 to 79 (1.0 µg/dL) compared with females (0.82 µg/dL), and in adults aged 20 to 39 (0.78 µg/dL), 40 to 59 (1.0 µg/dL), and 60–79 (1.4 µg/dL), compared with children and youth aged 3 to 5 (0.56 µg/dL), 6 to 11 (0.54 µg/dL), and 12 to 19 (0.48 µg/dL). Even though blood lead levels were, on average, lower in infants and children, there is a particular concern for them because they have greater gastrointestinal absorption and less effective renal excretion than adults, in addition to different behavioural patterns (e.g. putting objects into their mouths, crawling, and greater frequency of hand-to-mouth contact).

A number of biomonitoring studies measuring blood lead levels have been conducted in various locations in Canada over the years. While blood lead levels varied across age groups within the Canadian population, the highest concentrations were reported in communities with point sources of environmental lead pollution, such as pollution from smelting activities, and in Northern communities.footnote 10

Implementation, compliance and enforcement, and service standards

The proposed Regulations would come into force 12 months after the day on which they are registered. Information, fact sheets and frequently asked questions on the proposed Regulations would be provided on the Department's website prior to the coming-into-force date.

The Department's approach to compliance promotion activities would include maintaining a presence on the Department's website; responding to inquiries from stakeholders; and helping to ensure that aftermarket businesses understand the impact of the proposed Regulations on the supply of lead wheel weights.

As the proposed Regulations are made under CEPA, implementation and enforcement would be undertaken by the Department in accordance with the Canadian Environmental Protection Act: compliance and enforcement policy (the Policy). Enforcement officers would apply the Policy when verifying compliance with the regulatory requirements. The Policy sets out the range of possible responses to alleged violations, including warnings, directions, environmental protection compliance orders, administrative monetary penalties, 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 violation under CEPA. In addition, the Policy explains when the Department would resort to civil suits by the Crown for cost recovery. Following an inspection or investigation, when an enforcement officer discovers an alleged violation, the officer would choose the appropriate enforcement action based on the Policy.

The proposed Regulations will make consequential amendments to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999) [the Designation Regulations]. The Designation Regulations identify provisions of various regulations made under CEPA as being subject to an enhanced fine range. These provisions are identified on the basis that violating them involves direct harm or risk of harm to the environment, or obstruction of authority. Designated sections of the proposed Regulations are added to the schedule of the Designation Regulations to reflect the specific provisions designated.

Contacts

Alex Cavadias
Acting Director
Products Division
Industrial Sectors and Chemicals Directorate
Environmental Protection Branch
Department of the Environment
351 Saint-Joseph Boulevard, 9th Floor
Gatineau, Quebec
K1A 0H3
Email: Products.Produits@ec.gc.ca

Matthew Watkinson
Director
Regulatory Analysis and Valuation Division
Economic Analysis Directorate
Strategic Policy Branch
Department of the Environment
200 Sacré-Cœur Boulevard, 10th Floor
Gatineau, Quebec
K1A 0H3
Email: Products.Produits@ec.gc.ca

PROPOSED REGULATORY TEXT

Notice is given, pursuant to subsection 332(1)footnote a of the Canadian Environmental Protection Act, 1999footnote b, that the Administrator in Council, pursuant to subsection 93(1) of that Act, proposes to make the annexed Prohibiting the Manufacture and Import of Wheel Weights Containing Lead in Canada Regulations.

Any person may, within 70 days after the date of publication of this notice, file with the Minister of the Environment comments with respect to the proposed Regulations or, within 60 days after the date of publication of this notice, file with the Minister a notice of objection requesting that a board of review be established under section 333 of that Act and stating the reasons for the objection. All comments and notices must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Products Division, Department of the Environment, Gatineau, Quebec K1A 0H3 (tel.: 819‑938‑4483 or 1‑888‑391‑3426; email: ec.produits-products.ec@canada.ca).

A person who provides information to the Minister of the Environment may submit with the information a request for confidentiality under section 313 of that Act.

Ottawa, June 23, 2021

Julie Adair
Assistant Clerk of the Privy Council

Prohibiting the Manufacture and Import of Wheel Weights Containing Lead in Canada Regulations

Definition

Definition of vehicle

1 In these Regulations, vehicle has the same meaning as in section 2 of the Motor Vehicle Safety Act.

Application

Wheel weights

2 (1) These Regulations apply in respect of wheel weights containing lead that are designed to balance the wheels of those vehicles that are required to be registered under the laws of a province or territory in Canada.

Non-application

(2) These Regulations do not apply in respect of wheel weights containing lead that are in transit through Canada, from a place outside Canada to another place outside Canada.

Prohibition

Prohibited activities

3 (1) Subject to section 4, a person must not manufacture or import wheel weights containing more than 0.1% by weight of lead.

Exception

(2) The prohibition in subsection (1) does not apply in respect of

Permits

Requirement for permit

4 Any person who has been issued a permit under section 6 may manufacture or import wheel weights containing lead in accordance with that permit.

Application for permit

5 (1) An application for a permit must include the information specified in the schedule and be submitted to the Minister not later than the 90th day before the day on which the wheel weights containing lead are to be manufactured or imported.

Certification

(2) The application must be accompanied by a certification, dated and signed by the applicant or by their authorized representative, stating that the information contained in the application is accurate and complete.

Conditions of issuance

6 (1) Subject to subsection (2), the Minister must issue the permit to manufacture or import wheel weights containing lead for the term requested in the application for a permit if

Permit term

(2) The term of the permit must not exceed 24 months.

Grounds for refusing permit

(3) The Minister must refuse to issue a permit if the Minister has reasonable grounds to believe that the applicant has submitted false or misleading information in support of their application.

Renewal

(4) The permit may be renewed once.

Application for renewal

7 (1) An application for the renewal of a permit must include the information specified in the schedule and be submitted to the Minister not later than the 90th day before the day on which the permit expires.

Conditions of renewal

(2) The Minister must renew the permit if the conditions in subsection 6(1) are met.

Grounds for revocation

8 (1) The Minister must revoke a permit if the Minister has reasonable grounds to believe that the permit holder has submitted false or misleading information to the Minister or if the permit holder has failed to comply with the permit.

Conditions for revocation

(2) The Minister must not revoke a permit unless the Minister has provided the permit holder with

Date of revocation

(3) The revocation of a permit is not effective until the 20th day after the day on which the Minister notifies the permit holder.

Documents and Records

Electronic submission

9 (1) Any document submitted to the Minister under these Regulations must be submitted electronically in the form and format specified by the Minister and must bear the electronic signature of the person who seeks authorization to manufacture or import wheel weights containing lead or of their authorized representative.

Submission on paper

(2) If the Minister has not specified an electronic form and format or if it is not feasible to send the document electronically in accordance with subsection (1) because of circumstances beyond the person's control, the document must be sent on paper in the form and format specified by the Minister and signed by the person or their authorized representative. If no form and format have been specified, the information may be sent in any form and format.

Submission of information

10 If the Minister requests, from a person that manufactures or imports wheel weights in respect of which these Regulations apply, information that relates to the lead in those wheel weights, the person must submit that information in English or French.

Records

11 (1) Any person that manufactures or imports wheel weights in respect of which these Regulations apply must maintain records that demonstrate that the wheel weights were manufactured or imported in accordance with these Regulations and that include

Retaining records

(2) The records must be retained for a period of at least five years after the day on which they are made.

Place retained

(3) The records must be retained at the person's principal place of business in Canada or, on notification to the Minister, at any other place in Canada where the records can be inspected.

Records moved

(4) If the records are moved, the person must notify the Minister in writing of the civic address in Canada of the new location within 30 days after the day of the move.

Electronic record

(5) A person who keeps records electronically must ensure that all equipment and software necessary to make the record intelligible are available during the retention period required for the record.

Accredited Laboratory

Accredited Laboratory

12 Any analysis performed to determine the concentration of lead for the purposes of these Regulations must be performed by a laboratory that meets the following conditions at the time of the analysis:

Related Amendment

13 The schedule to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999)footnote 11 is amended by adding the following in numerical order:
Item

Column 1

Regulations

Column 2

Provisions
37 Prohibiting the Manufacture and Import of Wheel Weights Containing Lead in Canada Regulations (a) subsection 3(1)

Coming into Force

First anniversary of registration

14 These Regulations come into force on the first anniversary of the day on which they are registered.

Schedule

(Subsections 5(1) and 7(1))

Information to be Contained in an Application for a Permit

1 Information respecting the applicant:

2 Information respecting the product:

3 Information establishing that, at the time of the application, there is no alternative to the manufacture or import of wheel weights containing lead, or if there is an alternative, that it is not technically or economically feasible for the applicant.

4 The requested term of the permit, which must not exceed the period for which the permit is necessary.

5 The civic and postal addresses of the location where the information, supporting documents and the certification are retained in Canada.

Privacy notice statement

Provision of the information is on a voluntary basis. We will use the information for the purpose of responding to your questions/comments, and to improve our Internet presence. The information will be held in Public Services and Procurement Canada's Personal Information Bank number PPU 115 Internet and PPE 830 intranet Services, and it will be retained according to the retention and disposal schedule established for this bank.

Your personal information is protected under the provisions of the Privacy Act. Under the Act, you have the right to request access to and correction of your personal information, if erroneous or incomplete. If you wish to avail yourself of this right or require clarification about this statement, contact our Privacy Coordinator at aiprp.atip@tpsgc-pwgsc.gc.ca. For more information on privacy issues and the Privacy Act consult the Office of the Privacy Commissioner of Canada.

For more information about your rights, visit Info Source. This is a Government of Canada publication available in major libraries, at government information offices and from constituency offices of federal Members of Parliament.

The Internet is a public forum and electronic information can be intercepted. This is not a secure website. Please do not disclose unnecessary confidential information about yourself or your accounts with Public Services and Procurement Canada.