Volatile Organic Compound Concentration Limits for Certain Products Regulations: SOR/2021-268

Canada Gazette, Part II, Volume 156, Number 1

Registration
SOR/2021-268 December 21, 2021

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

P.C. 2021-1026 December 17, 2021

Whereas, pursuant to subsection 332(1)footnote a of the Canadian Environmental Protection Act, 1999footnote b, the Minister of the Environment published in the Canada Gazette, Part I, on July 6, 2019, a copy of the proposed Volatile Organic Compound Concentration Limits for Certain Products 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 6footnote 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 sections 286.1footnote d and 326 of the Canadian Environmental Protection Act, 1999 footnote b, makes the annexed Volatile Organic Compound Concentration Limits for Certain Products Regulations.

Volatile Organic Compound Concentration Limits for Certain Products Regulations

Interpretation

Definitions

1 (1) The following definitions apply in these Regulations.

adhesive
does not include a product for use on humans or animals or any product with an adhesive incorporated onto or in an inert substrate. (adhésif)
fragrance
means a substance or mixture of chemicals, natural essential oils or other components, that has a combined vapour pressure that is less than or equal to 0.267 kPa when measured at 20°C, the sole purpose of which is to impart a scent or to mask an unpleasant odour. (parfum)
high vapour pressure VOC,
in respect of an antiperspirant or deodorant for the human axilla, means a VOC that has a vapour pressure of greater than 10.67 kPa when measured at 20°C. (COV à pression de vapeur élevée)
low vapour pressure VOC,
in respect of a product other than an antiperspirant or deodorant for the human axilla, means a VOC that
  • (a) has a vapour pressure of less than 0.013 kPa when measured at 20°C;
  • (b) has a boiling point that is greater than 216°C; or
  • (c) contains more than 12 carbon atoms per molecule. (COV à faible pression de vapeur)
medium vapour pressure VOC,
in respect of an antiperspirant or deodorant for the human axilla, means a VOC that has a vapour pressure of greater than 0.267 kPa but less than or equal to 10.67 kPa when measured at 20°C. (COV à pression de vapeur moyenne)
reformulated product
means a product that belongs to a product category set out in column 1 of the table to Schedule 1 and that has been reformulated to reduce its VOC concentration to a level that is less than the maximum VOC concentration set out in column 3 for that product category or, if applicable, the subcategory set out in column 2 to which it belongs. (produit à composition modifiée)
VOC
means a volatile organic compound that participates in atmospheric photochemical reactions and that is not excluded under item 65 of Schedule 1 to the Canadian Environmental Protection Act, 1999. (COV)

VOC concentration

(2) For the purpose of these Regulations, the VOC concentration of a product is measured and expressed as a percentage of the product’s net weight (% w/w).

Net quantity

(3) For the purposes of these Regulations, the quantity of a product or the quantity of VOCs in a product is the net quantity.

Product category or subcategory

(4) For the purposes of these Regulations, a product belongs to a product category set out in column 1 of the table to Schedule 1 or column 1 of Schedule 2 or, if applicable, a subcategory set out in column 2 of the table to Schedule 1 if, according to information on its container or included in any documentation relating to the product that is supplied by the product’s manufacturer or importer or their authorized representative, the product may be used as a product that belongs to that product category or, if applicable, subcategory.

Design

(5) For the purposes of these Regulations, any reference to a product that is designed for a particular purpose includes a product that, according to information on its container or included in any documentation relating to the product that is supplied by the product’s manufacturer or importer or their authorized representative, may be used for that purpose.

Application

Products

2 (1) These Regulations apply in respect of any product that contains VOCs and belongs to a product category set out in column 1 of the table to Schedule 1 or column 1 of Schedule 2.

Non-application — certain products

(2) These Regulations do not apply in respect of products that are

Maximum VOC Concentrations and Maximum VOC Emission Potentials

Prohibition

3 (1) Subject to subsection (4), a person must not manufacture or import a product that belongs to a product category set out in column 1 of the table to Schedule 1 and, if applicable, a subcategory set out in column 2 that has a VOC concentration that is greater than the applicable maximum VOC concentration set out in column 3, unless

Product categories set out in Schedule 2

(2) Subject to subsection (4), a person must not manufacture or import a product that belongs to a product category set out in column 1 of Schedule 2 and has a VOC emission potential that is greater than the applicable maximum VOC emission potential set out in column 2, unless a permit has been issued under section 19 in respect of the product.

Non-application of paragraph (1)(a)

(3) The exception set out in paragraph (1)(a) does not apply to a multi-purpose solvent or paint thinner referred to in items 48 and 52, respectively, of the table to Schedule 1.

Start date for prohibitions

(4) The prohibitions set out in subsections (1) and (2) apply beginning on

Product belonging to more than one product category

4 (1) Subject to subsection (2), if a product belongs to more than one product category set out in column 1 of the table to Schedule 1, the applicable maximum VOC concentration is the lowest of the maximum VOC concentrations set out in column 3 for the product categories to which the product belongs.

Exception for certain categories

(2) The maximum VOC concentration for a product that belongs to one of the following product categories is the maximum VOC concentration set out in column 3 of the table to Schedule 1 for the applicable product category set out in column 1 or, if applicable, subcategory set out in column 2, regardless of whether the product also belongs to a product category with a lower maximum VOC concentration:

Determination of VOC concentration

5 (1) For the purposes of these Regulations and subject to subsections (2) and (3), the VOC concentration of a product that belongs to a product category set out in column 1 of the table to Schedule 1 is determined by the formula

[(WS − WEX) ÷ WP] × 100
where
WS
is the weight in grams of all of the substances contained in the product that volatize when the product is tested to determine its VOC concentration for the purposes of these Regulations;
WEX
is the weight in grams of all of the substances to be excluded when determining the VOC concentration, namely, any of the following substances contained in the product that volatize when the product is tested to determine its VOC concentration for the purposes of these Regulations:
  • (a) water, ammonia and any other inorganic substances;
  • (b) compounds that are excluded under item 65 of Schedule 1 to the Canadian Environmental Protection Act, 1999;
  • (c) in the case of an antiperspirant or deodorant for the human axilla referred to in items 2 and 3, respectively, of the table to Schedule 1,
    • (i) VOCs that have a vapour pressure of less than or equal to 0.267 kPa when measured at 20°C or, if the vapour pressure is unknown, that contain more than 10 carbon atoms per molecule,
    • (ii) colourants and fragrances that, combined, constitute 2% or less of the product’s net weight, and
    • (iii) ethanol;
  • (d) in the case of a personal fragrance product referred to in item 11 of that table,
    • (i) low vapour pressure VOCs, and
    • (ii) fragrances;
  • (e) in the case of a pressurized gas duster referred to in item 53 of that table, low vapour pressure VOCs; and
  • (f) in the case of a product other than a product referred to in paragraph (c), (d) or (e),
    • (i) low vapour pressure VOCs, and
    • (ii) fragrances that, combined, constitute 2% or less of the product’s net weight; and
WP
is the net weight of the product, expressed in grams.

Aerosol products

(2) For the purposes of the descriptions WS and WEX, if the product in question belongs to a subcategory set out in column 2 of the table to Schedule 1 that includes aerosol products, the propellant and non-propellant fractions are determined separately then added together to give the total value for each of those elements.

Antiperspirants and deodorants

(3) If the product in question is an antiperspirant or deodorant for the human axilla referred to in items 2 and 3, respectively, of the table to Schedule 1, the VOC concentration is determined separately for medium vapour pressure VOCs and high vapour pressure VOCs.

Determination of VOC emission potential

6 When determining the VOC emission potential for the purposes of these Regulations, the following substances are excluded:

VOC Compliance Unit Trading System

Participation

Purpose of compliance unit trading system

7 A person that manufactures or imports a product that belongs to a product category set out in column 1 of the table to Schedule 1 may elect to participate in a compliance unit trading system that allows participants to do one or more of the following:

Permit — participants in compliance unit trading system

8 (1) A person that elects to participate in the compliance unit trading system may apply for a permit authorizing them to manufacture or import a product that belongs to a product category set out in column 1 of the table to Schedule 1 and, if applicable, a subcategory set out in column 2 that has a VOC concentration greater than the applicable maximum VOC concentration set out in column 3.

Required information

(2) The application must be submitted to the Minister and must contain the following information:

Clarifications

(3) The Minister may, on receiving the application, require any clarifications that are necessary for the application to be processed.

Notice of change to information

(4) The applicant must notify the Minister in writing of any change to the information provided under this section — other than that provided under subparagraph (2)(c)(iv) — within 30 days after the day on which the change occurs.

Issuance

9 (1) Subject to subsection (2), the Minister must issue the permit referred to in subsection 8(1) if the applicant has demonstrated how they will compensate for the excess quantity of VOCs determined in accordance with subparagraph 8(2)(c)(v).

Refusal

(2) The Minister must refuse to issue the permit if

Revocation — grounds

10 (1) The Minister must revoke a permit issued under subsection 9(1) if

Notice of revocation

(2) Before revoking a permit, the Minister must provide the permit holder with written reasons and an opportunity to make written representations concerning the revocation.

Generation, Use and Transfer of Compliance Units

Notice of participation

11 (1) A person that intends to generate compliance units in respect of a reformulated product that they manufacture or import must, no later than October 1 of the first year in which they elect to participate in the compliance unit trading system in respect of that product, submit a notice to the Minister that contains the following information:

Generation of compliance units

(2) A person that has submitted a notice under subsection (1) may generate compliance units, at a rate of one compliance unit per kilogram, for all of the reformulated products that they manufacture or import during a given calendar year. The number of kilograms is determined by the formula

∑ [(Bi − Ci) × Wi]
where
Bi
is, for each reformulated product, the maximum VOC concentration set out in column 3 of the table to Schedule 1 for the product category set out in column 1 or, if applicable, the subcategory set out in column 2 to which the product belongs;
Ci
is, for each reformulated product, the product’s VOC concentration after reformulation; and
Wi
is, for each reformulated product, the quantity, expressed in kilograms, that was manufactured or imported during the year in question, excluding the quantity that was manufactured or imported for export only.

First year of participation

(3) For the first calendar year in which the person participates in the compliance unit trading system, the value of the element Wi in the formula set out in subsection (2) is the quantity of the reformulated product that was manufactured or imported during the period beginning on the day on which the notice referred to in subsection (1) was submitted or the day on which the product was reformulated, whichever is later, and ending on December 31 of that year.

Availability confirmed by Minister

(4) The Minister must provide the person with written confirmation of the number of compliance units that are available to them within 60 days after the day on which the person submits a report in accordance with section 14.

Valid for two years

(5) Compliance units whose availability is confirmed by the Minster are valid for two years beginning on January 1 of the year following the calendar year in which they are generated.

Transfer of compliance units

12 (1) A person that participates in the compliance unit trading system may transfer unused compliance units to another person if the compliance units are still valid and the Minister approves the transfer.

Application for approval of transfer

(2) The transferee and transferor must, at least 90 days before the day on which the compliance units expire, submit to the Minister a joint application for approval of the transfer, using the form provided by the Minister, that contains the following information:

Approval by Minister

(3) The Minister must approve the transfer and inform the transferee and transferor of the approval in writing if the transferor has at least the number of unused compliance units as are proposed to be transferred to the transferee.

Use by transferee

(4) The transferee may use the compliance units during the calendar year in which they are transferred and, if there are any compliance units remaining and those compliance units are still valid in accordance with subsection 11(5), during the following calendar year.

Invalid transfer

(5) For greater certainty, if the transferor does not have at least the number of unused compliance units as are proposed to be transferred to the transferee, the transfer is invalid.

Annual Reports

Permit issued under subsection 9(1)

13 A person that holds a permit issued under subsection 9(1) must, no later than March 1 of each year, submit a report to the Minister that contains the following information in respect of the preceding calendar year:

Person that generates compliance units

14 A person that generates compliance units during a calendar year must, no later than March 1 of the following year, submit a report to the Minister that contains the following information:

Permit — Products Whose Use Results in Lower VOC Emissions

Application

15 (1) A person may apply for a permit or a renewal of their permit, as the case may be, authorizing them to manufacture or import a product that belongs to a product category set out in column 1 of the table to Schedule 1 and, if applicable, a subcategory set out in column 2 that has a VOC concentration that is greater than the applicable maximum VOC concentration set out in column 3, but that, when used in accordance with the manufacturer’s written instructions, results in lower VOC emissions than those that would result from the use of another product that belongs to the same category and, if applicable, the same subcategory that has a VOC concentration that is less than or equal to that maximum VOC concentration.

Required information

(2) The application must be submitted to the Minister and must contain the following information:

Clarifications

(3) The Minister may, on receiving the application, require any clarifications that are necessary for the application to be processed.

Notice of change to information

(4) The applicant must notify the Minister in writing of any change to the information provided under this section — other than that provided under paragraph (2)(f) — within 30 days after the day on which the change occurs.

Issuance or renewal

16 (1) Subject to subsection (2), the Minister must issue or renew, as the case may be, a permit referred to in subsection 15(1) if the applicant has demonstrated that, even though the product’s VOC concentration is greater than the applicable maximum VOC concentration set out in column 3 of the table to Schedule 1, the use of the product, in accordance with the manufacturer’s written instructions, results in lower VOC emissions than those that would result from the use of another product that belongs to the same category and, if applicable, the same subcategory that has a VOC concentration that is less than or equal to that maximum VOC concentration.

Refusal

(2) The Minister must refuse to issue or renew the permit if

Expiry

(3) The permit expires on the fourth anniversary of the day on which it is issued or renewed unless the permit holder submits an application for renewal at least 90 days before the day on which the permit expires and the application is approved by the Minister.

Revocation — grounds

17 (1) The Minister must revoke a permit issued or renewed under subsection 16(1) in respect of a product if

Notice of revocation

(2) Before revoking a permit, the Minister must provide the permit holder with written reasons and an opportunity to make written representations concerning the revocation.

Permit — Technical or Economic Non-feasibility

Application

18 (1) A person that intends to, on or after the applicable date referred to in subsection 3(4) or the day on which their permit expires, as the case may be, manufacture or import a product that belongs to a product category set out in column 1 of the table to Schedule 1 or column 1 of Schedule 2 that has a VOC concentration or VOC emission potential that is greater than the applicable maximum VOC concentration set out in column 3 of the table to Schedule 1 or the applicable maximum VOC emission potential set out in column 2 of Schedule 2, as the case may be, may apply for a permit, or for a renewal of their permit, authorizing them to manufacture or import that product on or after the applicable date if it is not technically or economically feasible for them to, by that date, reduce the product’s VOC concentration or VOC emission potential, as the case may be, to a level that is less than or equal to that maximum VOC concentration or maximum VOC emission potential.

Required information

(2) The application must be submitted to the Minister before the applicable date referred to in subsection 3(4) or the day on which the permit expires, as the case may be, and must contain the following information:

Clarifications

(3) The Minister may, on receiving the application, require any clarifications that are necessary for the application to be processed.

Notice of change to information

(4) The applicant must notify the Minister in writing of any change to the information provided under this section — other than that provided under paragraph (2)(f) — within 30 days after the day on which the change occurs.

Issuance or renewal

19 (1) Subject to subsection (2), the Minister must issue or renew a permit referred to in subsection 18(1) if the applicant has demonstrated that it will not be technically or economically feasible for them to, by the applicable date referred to in subsection 3(4) or the day on which their permit is to expire, as the case may be, reduce the product’s VOC concentration or VOC emission potential, as the case may be, to a level that is less than or equal to the applicable maximum VOC concentration set out in column 3 of the table to Schedule 1 or the applicable maximum VOC emission potential set out in column 2 of Schedule 2, as the case may be.

Refusal

(2) The Minister must refuse to issue or renew a permit if

Expiry

(3) The permit expires on the second anniversary of the day on which the permit becomes effective or on an earlier date specified in the permit unless the permit holder submits an application for renewal at least 90 days before the day on which the permit expires and the application is approved by the Minister. The renewed permit expires on the second anniversary of the day on which the renewal becomes effective or on an earlier date specified in the renewed permit.

Application for renewal

(4) An application for renewal may be made only once.

Explanation of reasons

(5) An application for renewal must include an explanation of the reasons why the plan that was submitted in the initial permit application was not implemented within the period identified in that initial application.

Revocation — grounds

20 (1) The Minister must revoke a permit issued or renewed under subsection 19(1) if the Minister has reasonable grounds to believe that the permit holder has provided false or misleading information.

Notice of revocation

(2) Before revoking a permit, the Minister must provide the permit holder with written reasons and an opportunity to make written representations concerning the revocation.

Accredited Laboratory

Accredited laboratory

21 (1) Any analysis performed to determine the VOC concentration or VOC emission potential of a product for the purposes of these Regulations must be performed by a laboratory that meets the following conditions at the time of the analysis:

Standards of good practice

(2) If no method has been recognized by a standards development organization in respect of the analysis performed to determine the VOC concentration or VOC emission potential of a product and the scope of the laboratory’s accreditation does not therefore include that analysis, the analysis must be performed in accordance with standards of good scientific practice that are generally accepted at the time that it is performed.

Labelling

Date of manufacture

22 (1) Beginning on the applicable date referred to in subsection 3(4), any person that manufactures or imports a product that belongs to a product category set out in column 1 of the table to Schedule 1 or in column 1 of Schedule 2 must indicate, on the container in which the product is offered for sale or sold, the date on which the product was manufactured or a code representing that date. If a code is used, the person must provide the Minister, on request, with an explanation of the code.

Exemptions

(2) Subsection (1) does not apply to

Instructions for use

23 Beginning on the applicable date referred to in subsection 3(4), if a product is authorized to be manufactured or imported by a permit issued under subsection 16(1), the manufacturer or importer must ensure that, before the product is offered for sale or sold, it bears a label, or is accompanied by documentation, that sets out instructions in both official languages for the use of the product in a manner that results in lower VOC emissions than those that would result from the use of another product that belongs to the same category and, if applicable, the same subcategory that has a VOC concentration that is less than or equal to the applicable maximum VOC concentration set out in column 3 of the table to Schedule 1.

Record-Keeping

Records to be maintained

24 (1) Beginning on the applicable date referred to in subsection 3(4), any person that manufactures or imports a product that contains VOCs and belongs to a product category set out in column 1 of the table to Schedule 1 or column 1 of Schedule 2 must maintain records containing the following information and any supporting documents:

Records — information submitted to Minister

(2) Any person that submits information to the Minister under these Regulations must maintain records containing that information and a copy of any supporting documents.

Five years

(3) The records must be kept for a period of at least five years after

Location of records

25 (1) The records referred to in section 24 must be kept at the person’s principal place of business in Canada or at any other place in Canada where they can be inspected. If the records are not kept at the person’s principal place of business, the person must provide the Minister with the civic address of the place where they are kept.

Change of address

(2) If the civic address referred to in subsection (1) changes, the person must notify the Minister in writing within 30 days after the day on which the change occurs.

Submission Requirements

Certification

26 Any information that is submitted under these Regulations must be accompanied by a certification, dated and signed by the person submitting the information or by their authorized representative, stating that the information is accurate and complete.

Electronic or paper format

27 (1) Any document that is submitted under these Regulations may be submitted in paper format or in an electronic format that is compatible with the format that is used by the Minister.

Electronic signature

(2) If the document is submitted in electronic format, the document may be signed electronically.

Related Amendment to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999)

28 The schedule to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999)footnote 1 is amended by adding the following in numerical order:
Item

Column 1

Regulations

Column 2

Provisions
34 Volatile Organic Compound Concentration Limits for Certain Products Regulations (a) subsections 3(1)
and (2)

Coming into Force

January 1 following first anniversary of registration

29 These Regulations come into force on January 1 of the year following the calendar year of the first anniversary of the day on which they are registered.

SCHEDULE 1

(Subsections 1(1) and (4), 2(1) and 3(1) and (3), paragraph 3(4)(a), sections 4, 5 and 7, subsection 8(1), subparagraphs 8(2)(c)(ii) and (v) and 11(1)(c)(ii), subsection 11(2), paragraph 13(d), subparagraph 14(c)(ii), subsection 15(1), paragraphs 15(2)(d) and (h), subsection 16(1), paragraph 17(1)(a), subsection 18(1), paragraphs 18(2)(d), (i) and (j), subsection 19(1), sections 22 and 23 and subsection 24(1))

Product Categories and VOC Concentration Limits

Definitions

1 The following definitions apply in this Schedule.

cleaner or duster for energized equipment
means a product that is designed to clean or dust equipment while there is an electrical current in the equipment or while there is a residual electrical potential from a component such as a capacitor. (nettoyant ou dépoussiéreur d’équipements sous tension)
contact adhesive
means non-aerosol adhesive – other than rubber cement that is designed for use on paper substrates and vulcanizing fluid that is designed solely for tire repair — that
  • (a) is designed for application to surfaces to be bonded together;
  • (b) is to dry before the surfaces are placed in contact with each other;
  • (c) forms an immediate bond that makes it difficult or impossible to reposition the adhesive-coated surfaces after they are placed in contact with each other; and
  • (d) does not require sustained pressure or the clamping of surfaces to establish an adherence between the surfaces after the adhesive-coated surfaces have been brought together using momentary pressure. (adhésif de contact)

Aerosol

2 For greater certainty, in this Schedule, a reference to “aerosol” does not include pump sprays.

Overview

3 The table to this Schedule sets out VOC concentration limits for each product category or, if applicable, subcategory.

TABLE
Item

Column 1

Product Category

Column 2

Subcategory

Column 3

Maximum VOC Concentration (% w/w)
Personal Care Products
1 Astringent, toner or clarifier, including astringent, toner or clarifier products that are impregnated in a substrate but excluding any product that is regulated as a drug under the Food and Drugs Act   35
2 Antiperspirant for the human axilla (i) aerosol,
  • (A) in the case of a high vapour pressure VOC, 40,
  • (B) in the case of a medium vapour pressure VOC, 10
(ii) non-aerosol 0
3 Deodorant for the human axilla (i) aerosol,
  • (A) in the case of a high vapour pressure VOC, 0,
  • (B) in the case of a medium vapour pressure VOC, 10
(ii) non-aerosol 0
4 Heavy-duty hand cleaner or soap, excluding any product that is
  • (a) a prescription drug;
  • (b) an antimicrobial hand or body cleaner or soap;
  • (c) an astringent or toner;
  • (d) a general-use hand or body cleaner or soap; or
  • (e) rubbing alcohol
 (i) non-aerosol, 1
(ii) all other forms 8
5 Hairstyling mousse designed to facilitate styling or provide limited holding power   6
6 Hair products that are designed for the primary purpose of creating a shine when applied to the hair, excluding any product whose primary purpose is to condition or hold the hair   55
7 Hairspray that is designed to hold or finish styled hair, excluding any product that aids in styling without holding the hair   55
8 Temporary hair-colour products that are designed to add colour, glitter or UV-active pigment to hair, wigs or fur or to cover thinning or balding areas aerosol 55
9 Any hairstyling product other than those referred to in items 5 to 8 (i) aerosol or pump spray, 6
(ii) all other forms 2
10 Nail polish remover   1
11 Personal fragrance products, excluding any product that is
  • (a) designed to alleviate fungal or bacterial growth and regulated as a drug under the Food and Drugs Act;
  • (b) a skin care product that is designed to alleviate skin conditions such as dryness or irritations;
  • (c) designed exclusively to be applied to genitalia, undergarments or sanitary pads;
  • (d) designed for cleaning the body; or
  • (e) designed for use in the mouth
 (i) product containing fragrance less than or equal to 20% based on net weight, 75
(ii) product containing fragrance greater than or equal to 20% based on net weight 65
12 Shaving cream or foam aerosol 5
13 Shaving gel aerosol 4
Maintenance Products
14 Automotive brake cleaner   10
15 Automotive rubbing or polishing compound that is designed to remove oxides, old paint, scratches, swirl marks or other defects from the painted surfaces of motor vehicles without leaving a protective barrier   17
16 Automotive wax, polish, sealant or glaze that is designed to enhance the painted surfaces of motor vehicles, seal out moisture from those surfaces or increase their gloss, excluding any product that is
  • (a) both a wash and a wax;
  • (b) a surfactant-containing wash; or
  • (c) for use on unpainted surfaces
 (i) hard paste wax that does not contain water, 45
(ii) instant detailer that is in pump-spray format and is to be wiped off before the product dries, 3
(iii) all other forms 15
17 Cleaners for carburetors, chokes, associated linkages or fuel-injection air intakes, including throttle bodies, excluding any product that is
  • (a) designed solely for introduction into a fuel line or a fuel storage tank; or
  • (b) pressurized and designed for introduction directly into air-intake vacuum lines during engine operation by using a sprayer wand
   10
18 Automotive wash, excluding any product that is designed exclusively for use on locomotives or aircraft non-aerosol 0.2
19 Products designed to remove the following from the painted surfaces of motor vehicles:
  • (a) biological residue (such as insects or tree sap); or
  • (b) road grime (such as tar, road-marking paint or asphalt)
   40
20 Undercoating products that provide a protective, non-paint layer to the undercarriage, trunk interior or firewall of motor vehicles to prevent the formation of rust or deaden sound, including rubberized, mastic and asphaltic products aerosol 40
21 Windshield water repellent   75
22 Tire or wheel cleaner, excluding any product that is designed solely for use on locomotives or aircraft (i) aerosol, 8
(ii) non-aerosol 2
23 Pressurized tire sealant and inflator   20
24 Rubber or vinyl protectant, excluding any product that is
  • (a) a clear aerosol coating that does not contain pigments and is designed to be applied over any other coating; or
  • (b) an aerosol coating that contains pigments or resins and is designed exclusively for vinyl
 (i) aerosol, 10
(ii) non-aerosol 3
25 Engine degreaser that is designed to remove grease, oil or other contaminants from the external surfaces of engines or other mechanical parts (i) aerosol, 10
(ii) non-aerosol 5
26 Lubricants, excluding any product that is
  • (a) an automotive power-steering fluid;
  • (b) designed for use inside power-generating motors, engines or turbines or associated power-transfer gearboxes;
  • (c) a two-cycle motor oil or another product that is designed to be added to fuels;
  • (d) a lubricant that is designed solely for releasing manufactured products from moulds; or
  • (e) a dry lubricant that is designed to provide lubricity by depositing a film of solid material (such as graphite, molybdenum disulfide, chemically related fluoropolymers or boron nitride)
 (i) multi-purpose lubricants that are not solid or semi-solid, 25
(ii) silicone-based multi-purpose lubricants that are not solid or semi-solid, 60
(iii) penetrating lubricants designed primarily for loosening metal parts that have bonded together, 25
(iv) aerosol anti-seize lubricant, 40
(v) non-aerosol anti-seize lubricant, 3
(vi) aerosol cutting or tapping oil, 25
(vii) non-aerosol cutting or tapping oil, 3
(viii) aerosol gear, chain or wire lubricant, excluding lubricant designed solely for use on chains of chain-driven vehicles, 25
(ix) non-aerosol gear, chain or wire lubricant, excluding lubricant designed solely for use on chains of chain-driven vehicles, 3
(x) aerosol rust-preventative or rust-control lubricant, 25
(xi) non-aerosol rust-preventative or rust-control lubricant 3
27 Metal polish or cleanser, excluding any product that is
  • (a) designed solely for automotive or marine detailing; or
  • (b) designed for use in degreasing tanks
 (i) aerosol, 15
(ii) non-aerosol 3
28 Air freshener, including air fresheners with disinfecting properties but excluding any product that
  • (a) is a cleaning product; or
  • (b) consists entirely of fragrance and any combination of low vapour pressure VOCs and compounds other than VOCs
 (i) single-phase aerosol, 30
(ii) double-phase aerosol, 20
(iii) liquid or pump spray, 18
(iv) solid or semi-solid, 3
(v) aerosol that is designed for use as a disinfectant and air freshener 60
29 Bathroom or tile cleaner (i) aerosol, 7
(ii) non-aerosol 1
30 Carpet or upholstery cleaner, excluding any product that is
  • (a) a vinyl or leather cleaner;
  • (b) a dry-cleaning fluid; or
  • (c) designed for use solely at industrial facilities engaged in furniture or carpet manufacturing
 (i) aerosol, 5
(ii) non-aerosol 1
31 Disinfectant, excluding any product that
  • (a) is a moist towelette designed solely for use by medical, convalescent or veterinary establishments;
  • (b) is designed for use on heat-sensitive critical or semi-critical medical devices or medical-equipment surfaces;
  • (c) is represented to have disinfecting or antimicrobial properties and designed for use as a glass cleaner, toilet or urinal cleaner or deodorizer, metal polish or cleanser, or fabric refresher;
  • (d) is designed for application on food contact surfaces and does not require the surface to be rinsed after use; or
  • (e) is designed solely for use on humans or animals, in agriculture or in swimming pools, therapeutic tubs or hot tubs
 (i) aerosol, 70
(ii) non-aerosol 1
32 Dusting aids designed to remove dust or other dirt from any surface without leaving a wax or silicone-based coating (i) aerosol, 17
(ii) non-aerosol 3
33 Electrical-equipment cleaner that is designed to remove heavy dirt (such as grease or oil) from electrical equipment (such as an electric motor, armature, relay, electric panel or generator), excluding any product that is
  • (a) a cleaner or duster for energized equipment; or
  • (b) designed for cleaning the casings or housings of electrical equipment
   45
34 Electronics cleaner that is designed to remove dirt, dust, moisture, flux or oxides from the internal components of electronic or precision equipment (such as circuit boards) or the internal components of electronic devices (such as radios, compact disc players, digital video disc players or computers), excluding any product that is
  • (a) a cleaner or duster for energized equipment; or
  • (b) designed for cleaning the casings or housings of electronic equipment
   75
35 Fabric refresher that is designed to neutralize or eliminate odours on soft surfaces (such as fabric, rugs, carpeting, footwear or athletic equipment), excluding any product that is designed for use on both fabric and human skin (i) aerosol, 15
(ii) non-aerosol 6
36 Fabric protector that is designed to protect against soiling or reduce the absorption of liquid, excluding any product that is
  • (a) designed exclusively to repel water from fabric;
  • (b) designed for use primarily for colouring;
  • (c) a clear aerosol coating that contains no pigment and is designed to be applied over any other coating; or
  • (d) an aerosol coating that contains pigments or resins and is designed exclusively for use on fabric
 (i) aerosol, 60
(ii) non-aerosol 1
37 Floor polish or wax that is designed for polishing, waxing, conditioning, protecting, temporarily sealing or otherwise enhancing floor surfaces by leaving a temporary protective finish (i) product designed for use on flexible flooring, 1
(ii) product designed for use on non-flexible flooring, 1
(iii) product designed solely for use on wood flooring, excluding any product that cleans and waxes or cleans and polishes 70
38 Floor maintenance products that are designed to maintain, restore or enhance a previously applied floor finish, excluding any product that is
  • (a) a floor polish; or
  • (b) designed solely for the purpose of cleaning floors or the maintenance of marble floors
   1
39 Floor wax stripper, excluding any product that is designed to remove wax or polish solely by abrasion (i) non-aerosol products that are designed to remove a light or medium buildup of polish or wax, 3
(ii) non-aerosol products that are designed to remove a heavy buildup of polish or wax 12
40 Footwear or leather care products that are designed to clean or protect footwear or leather articles or maintain, enhance or modify their appearance, durability, fit or flexibility, excluding any product that is
  • (a) a rubber or vinyl protectant;
  • (b) designed solely for deodorizing;
  • (c) a sealant with adhesive properties used to create an external protective layer greater than 2 mm thick; or
  • (d) an aerosol coating that contains pigments or resins and is designed exclusively for use on vinyl, fabric, leather or plastic
 (i) aerosol, 75
(ii) solid, 55
(iii) all other forms 15
41 Furniture maintenance products that are designed for polishing, protecting or enhancing finished surfaces, excluding any product that is designed solely for the purpose of cleaning or to leave a permanent finish (such as stains, sanding sealers or lacquers) (i) aerosol, 12
(ii) non-aerosol, except one that is in solid or paste form 3
42 General-purpose hard-surface cleaner (i) aerosol, 8
(ii) non-aerosol 0.5
43 General-purpose degreaser, excluding any product that is designed for use solely in solvent cleaning tanks or related equipment (i) aerosol, 10
(ii) non-aerosol 0.5
44 Glass cleaner, excluding any product that is designed solely for the purpose of cleaning eyeglasses or cleaning lenses used in photographic equipment, scientific instruments or photocopiers (i) aerosol, 10
(ii) non-aerosol 3
45 Graffiti remover (i) aerosol, 50
(ii) non-aerosol 30
46 Laundry pre-wash that is designed to enhance the effectiveness of laundry detergents during wet-cleaning (i) aerosol or solid, 22
(ii) all other forms 5
47 Laundry starch or sizing or finishing products   4.5
48 Multi-purpose solvent that is designed to disperse, dissolve or remove contaminants or other organic materials, excluding any product that is designed
  • (a) for use in cold, vapour or conveyorized degreasers;
  • (b) for use in film-cleaning machines; or
  • (c) solely for cleaning equipment used to apply polyaspartic or polyurea coatings
 (i) aerosol, 30
(ii) non-aerosol 30
49 Hard-surface anti-odour product (i) aerosol, 25
(ii) non-aerosol 6
50 Oven or grill cleaner that is designed to remove grease or deposits from food-preparation or food-cooking surfaces (i) aerosol or pump spray, 8
(ii) non-aerosol 4
51 Paint or coating remover or stripper, excluding any product that is a paintbrush cleaner or hand cleaner   50
52 Thinner or viscosity reducer for paints, lacquers or other coatings, excluding any product that is
  • (a) a solvent or thinner for use by artists;
  • (b) designed solely for thinning industrial maintenance coatings, zinc-rich primers or high-temperature coatings; or
  • (c) designed for use solely as an essential component in a specific coating
 (i) aerosol, 30
(ii) non-aerosol 30
53 Pressurized-gas duster, excluding any product that is
  • (a) a cleaner or duster for energized equipment; or
  • (b) designed for use near an open flame
   1
54 Spot remover (i) aerosol, 15
(ii) non-aerosol 3
55 Toilet or urinal cleaning or deodorizing products (i) aerosol, 10
(ii) non-aerosol 3
56 Wood cleaner, excluding any product that is designed solely for preserving or colouring wood (i) aerosol, 17
(ii) non-aerosol 4
Adhesives, Adhesive Removers, Sealants and Caulks
57 Acoustical sealant   10
58 Structural waterproof adhesive   7
59 Non-aerosol adhesive (i) special-purpose contact adhesive that  
(A) is packaged in a quantity of more than 236 ml but less than 3.785 l and is designed for use in bonding the following to any surface:
  • (I) melamine-covered board,
  • (II) unprimed metal,
  • (III) unsupported vinyl,
  • (IV) fluoropolymers,
  • (V) ultra-high-molecular-weight polyethylene (UHMWPE),
  • (VI) rubber,
  • (VII) high-pressure laminate, or
  • (VIII) wood veneer that is less than or equal to 1.5875 mm thick, or
 80
(B) is designed for use in the following automotive applications:
  • (I) engine compartments requiring resistance to heat, oil or gasoline, or
  • (II) body side moulding, weatherstrip or decorative trim,
 80
(ii) general-purpose contact adhesive that is packaged in a quantity of less than 3.785 l, 55
(iii) single-component construction, panel or floor-covering adhesive — other than floor-seam sealers that are designed for use on installed flexible sheet flooring — that is packaged in a quantity of less than or equal to 475 ml or less than or equal to 454 g and that is designed for use on
  • (A) structural and building components (such as beams, trusses, studs, panelling, moulding or countertops), or
  • (B) floor or wall coverings,
 7
(iv) general-purpose adhesive that is packaged in a quantity of less than or equal to 475 ml or less than or equal to 454 g 10
60 Aerosol adhesive with a spray mechanism that is permanently housed in a non-refillable can that is designed for hand-held application without the need for any other hose or spray equipment (i) the following special-purpose spray adhesives:  
(A) mounting adhesive designed for permanently affixing photographs, artwork or any other drawn or printed media to a backing (such as paper, board or cloth), 70
(B) adhesive for flexible vinyl that has at least 5% by weight of plasticizer content, 70
(C) adhesive that is designed for use in automotive engine compartments and that, at temperatures of 93°C to 135°C, provides resistance to oil and plasticizer and has high shear strength, 70
(D) polystyrene foam adhesive, 65
(E) automotive headliner adhesive, 65
(F) polyolefin adhesive, 60
(G) laminate-repair or edge-banding adhesive designed for
  • (I) touching up or repairing materials (such as sheet materials made of paper, fabric or other core materials) that have been laminated to a substrate at temperatures exceeding 129°C and pressures between 6 850 kPa and 9 650 kPa, or
  • (II) touching up, repairing or attaching edge-banding materials (such as other laminates, synthetic marble, veneers, wood moulding or decorative metals),
 60
(ii) mist or particle spray adhesive, 65
(iii) web spray adhesives other than those referred to in subparagraph (i) or (ii) 55
61 Adhesive remover (i) floor or wall covering adhesive remover, 5
(ii) gasket or thread-locking adhesive remover, including products designed for use as both a paint stripper and gasket or thread-locking adhesive remover, 50
(iii) specialty adhesive remover that is designed to remove reactive adhesives (such as epoxies, urethanes or silicones) that require a hardener or catalyst for the bond to occur, 70
(iv) general-purpose adhesive remover 20
62 Sealant or caulking compound that is packaged in a quantity of less than or equal to 475 ml or less than or equal to 454 g and that is designed to fill, seal, waterproof or weatherproof gaps or joints between two surfaces, excluding any product that is
  • (a) a roof cement or sealant;
  • (b) an insulating foam;
  • (c) a removable caulking compound that is designed to temporarily seal windows or doors;
  • (d) a clear, paintable caulking compound that is immediately water-resistant;
  • (e) a floor-seam sealer;
  • (f) designed solely for automotive applications;
  • (g) a sealer that is to be applied as a continuous coating; or
  • (h) a pipe-thread or pipe-joint compound
   4
Miscellaneous Products
63 Anti-static product (i) aerosol, 80
(ii) non-aerosol 11
64 Non-stick aerosol cooking spray   18

SCHEDULE 2

(Subsections 1(4), 2(1) and 3(2), paragraph 6(b), subsection 18(1), paragraphs 18(2)(d), (e), (i) and (j) and subsections 19(1), 22(1) and 24(1))

Product Categories and Maximum VOC Emission Potentials
Item

Column 1

Product Category

Column 2

Maximum VOC Emission Potential
1 Charcoal lighter products that are incorporated in or designed for use with charcoal to enhance ignition, excluding any product that is
  • (a) an electrical starter or probe;
  • (b) a metallic cylinder that uses paper tinder;
  • (c) natural gas;
  • (d) propane; or
  • (e) wood kindling with naturally occurring levels of sap or resin that enhance ignition of the kindling
 9 g per ignition, when used in accordance with the manufacturer’s instructions
2 Single-use dryer products that are designed to impart softness to, or control the static cling of, fabric 0.05 g per load, when used in accordance with the manufacturer’s instructions

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: Volatile Organic Compounds (VOCs) are precursors in the formation of ground-level ozone and particulate matter, two main components of smog. Currently, Canada does not have regulations in place to limit VOC emissions from certain product categories and meet its commitments under the Ozone Annex to the Canada-United States Air Quality Agreement. The existing voluntary guidelines recommending VOC concentration limits for consumer product categories have not been sufficient in meeting these objectives. A technical study commissioned by the Department of the Environment in 2014 found that VOC concentrations for some product categories are still above the voluntary limits. Currently, an estimated 50 kilotonnes of VOCs continue to be emitted annually from products used by consumers and in institutional, industrial and commercial applications.

Description: The Volatile Organic Compound Concentration Limits for Certain Products Regulations (the Regulations) will apply to Canadian manufacturers and importers and will establish VOC concentration limits for approximately 130 product categories and subcategories. This will include personal care products; automotive and household maintenance products; adhesives; adhesive removers; sealants and caulks; and other miscellaneous products.

Rationale: The Regulations will achieve VOC emission reductions and help Canada meet its national and international commitments. The reductions of VOC emissions are expected to lead to improvements in air quality. Between 2024 and 2033, the Regulations are expected to result in 250 kilotonnes of VOC emission reductions. The benefits of the proposed Regulations are expected to be approximately $886 million over the time frame of analysis, with total costs incurred by industry and government expected to be around $235 million between 2022 and 2033. The net benefits of the Regulations are estimated to be approximately $651 million.

Issues

Volatile Organic Compounds (VOCs) are precursors in the formation of ground-level ozone and particulate matter (PM2.5), two main components of smog. Exposure to smog is linked to adverse health impacts, including increased risk of premature death, chronic and short-term respiratory and cardiac problems, as well as negative environmental effects on vegetation, buildings and visibility. Currently, Canada does not have regulations in place to limit VOC emissions from certain product categories and meet its commitments under the Ozone Annex to the Canada-United States Air Quality Agreement. The existing voluntary guidelines recommending VOC concentration limits for consumer product categories have not been sufficient in meeting these objectives. A technical study commissioned by the Department of the Environment (the Department) in 2014 found that VOC concentrations for many product categories are still above the voluntary limits. The study indicated that an estimated 50 kilotonnes of VOCs continue to be emitted annually from certain products used by consumers and in institutional, industrial and commercial applications.

Background

VOCs are a large group of organic chemicals that can be emitted from different natural and anthropogenic sources. VOCs are released from a diverse range of products including paints, varnishes, cosmetics, as well as cleaning, disinfecting and degreasing products. In 2003, VOCs were added to the List of Toxic Substances (Schedule 1) under the Canadian Environmental Protection Act, 1999 (CEPA) due to their role as precursors in the formation of ground-level ozone and particulate matter, two main components of smog.

Adverse health and environmental effects are experienced across Canada due to smog. Health impacts include thousands of premature deaths each year, as well as increased hospital visits, doctor visits, and lost days at work and school. Scientific evidence also suggests that smog can have harmful environmental impacts such as reductions in agricultural crop and commercial forest yields.footnote 2

National and international commitments to address VOC emissions

In 1991, the United States-Canada Air Quality Agreement was established by both countries to address transboundary air pollution leading to acid rain. In 2000, the Ozone Annex was added to the Agreement with the long-term goal of establishing ozone air quality standards in both countries by reducing emissions of nitrogen oxides and VOCs from products.

On March 27, 2004, the Department and the Department of Health published Canada’s Federal Agenda on the Reduction of Emissions of Volatile Organic Compounds from Consumer and Commercial Products (PDF). The agenda outlined a series of measures that were developed between 2004 and 2010 to protect the health of Canadians and the environment by reducing VOC emissions from products. An update to the agenda was released for public comment in March 2021.footnote 3

One of these measures included the release of the Regulatory Framework for Air Emissions (PDF) in April 2007, which outlined further commitments and actions to reduce VOC emissions in Canada. Key components of this framework included developing regulations to limit VOC concentrations in automotive refinishing products, architectural coatings and certain products. It also aimed to align VOC concentration limits, where applicable, with similar requirements in the United States.

In November 2017, Canada ratified the Gothenburg Protocol and its 2012 amendments, which require ratifying parties to control and reduce VOC emissions. As part of the protocol and its amendment, Canada committed to establishing a VOC emission ceiling of 2 100 kilotonnes and a 20% reduction in VOC emissions to be attained by 2020 based on the 2005 VOC emissions level.

Regulatory and voluntary measures addressing VOC emissions

The Government of Canada has taken a number of actions to encourage voluntary reductions in VOC emissions from consumer and commercial products. The Guidelines for Volatile Organic Compounds in Consumer Products were published in November 2002. These voluntary guidelines recommended VOC concentration limits for 41 product categories and subcategories and were reflective of VOC concentration limits established by the United States Environmental Protection Agency (U.S. EPA) at the time. Most recently, the Code of Practice for the Reduction of Volatile Organic Compound (VOC) Emissions from Cutback and Emulsified Asphalt was published in the Canada Gazette, Part I, on February 25, 2017.

The Department has also taken regulatory measures to address VOC emissions. It published the Volatile Organic Compound (VOC) Concentration Limits for Automotive Refinishing Products Regulations and the Volatile Organic Compound (VOC) Concentration Limits for Architectural Coatings Regulations on July 8, 2009, and September 30, 2009, respectively.

On April 26, 2008, the proposed Volatile Organic Compound (VOC) Concentration Limits for Certain Products Regulations (the 2008 proposed Regulations) were published in the Canada Gazette, Part I. At the time of publication, the proposed Regulations aimed to align with the California Air Resources Board’s (CARB) Regulations for Reducing Emissions from Consumer Products and the Regulations for Reducing VOC Emissions from Antiperspirants and Deodorants (referred to as the General Consumer Product Regulations). The proposed Regulations would have established VOC concentration limits for certain product categories including personal care products; automotive and household maintenance products; adhesives, adhesive removers, sealants and caulks; and other miscellaneous products. These products are not covered by regulations previously published by the Department.

Since publication in the Canada Gazette, Part I, the Department has expanded the scope of the 2008 proposed Regulations to cover a wider range of products to align with the 2010 Consumer Product Regulations under CARB. The Department has consulted with stakeholders throughout this process. Given the significance of the changes to the regulatory proposal, republication in the Canada Gazette, Part I, occurred on July 6, 2019.

Relevant regulatory measures in other jurisdictions

CARB’s Consumer Product Regulations (Regulations for Reducing Emissions from Consumer Products and Regulations for Reducing VOC Emissions from Antiperspirants and Deodorants) set VOC limits for numerous categories of consumer products. Under these regulations, retailers, distributors, importers, and manufacturers of consumer products are responsible for ensuring the products they sell comply with California’s VOC limits. These regulations came into force in 1991. Since these initial regulations, California has made numerous amendments, which include amendments in 2010 and 2013 to add VOC limits for various product categories and subcategories.

Objective

The objective of the Regulations is to reduce VOC emissions by setting VOC concentration limits on products being imported or manufactured in Canada in order to protect the environment and health of Canadians from adverse impacts associated with these emissions.

Description

The Regulations will establish VOC concentration limits for products under approximately 130 product categories and subcategories. These categories and subcategories cover a wide range of products used by consumers, or in institutional, industrial or commercial applications and will include personal care products; automotive and household maintenance products; adhesives, adhesive removers, sealants and caulks; and other miscellaneous products (hereinafter referred to as certain products). The Regulations product categories will align, for the most part, with CARB’s amendments to the Consumer Product Regulations implemented in 2010. At the request of stakeholders, a few product category definitions have been aligned with CARB’s 2013 amendments, and an acoustical sealant category has been added. Product category limits align with CARB 2010 for all categories, with the exception of certain sealants and caulks, paint thinners and multipurpose solvents. These categories have higher limits to adapt to Canadian climate or marketplace conditions.

Accompanying the Regulations are consequential amendments to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999) [Designation Regulations]. The Designation Regulations identify provisions of various regulations made under CEPA as being subject to an enhanced fine range following a successful prosecution of an offence involving harm or risk of harm to the environment, or obstruction of authority. The amendments are needed to include the Regulations in the Schedule to the Designation Regulations.

VOC concentration limits for manufacturers and/or importers

The Regulations will prohibit the manufacture and import of products with VOC concentrations in excess of their respective category-specific limits unless a permit is obtained. The concentration limits and product categories and subcategories are identified in the Schedule to the Regulations. While the Regulations that were prepublished in 2008 included a prohibition on sale, the current Regulations will only apply to the manufacture and import of products in order to reduce administrative burden and impacts on small businesses.

Labelling, reporting and record-keeping requirements

Manufacturers and/or importers of a regulated product will be required to indicate, on the product container, the date on which the product was manufactured or a code representing that date. The Regulations will not include mandatory testing requirements to be conducted by regulated parties to ensure regulated products meet the VOC concentration limits. However, they would be required to keep information regarding the manufacture and import of regulated products in Canada to ensure that the Department is able to access records and reports, if required.

Alternative compliance options

A number of alternative compliance options are being put in place to provide flexibility in complying with the Regulations. To promote transparency, information regarding products and associated permits will be made publicly available.

Permit — Compliance not technically or economically feasible

The Regulations will include a provision for temporary permit applications for products that will be otherwise unable to meet the regulatory requirements for technical or economic reasons. Temporary permits would allow regulated parties to continue manufacturing or importing products if the conditions outlined in the Regulations are met, including a plan to show how the products will be brought into compliance. A permit would be valid for a period of up to two years from the date it is issued and could be extended for an additional two years, provided the application is submitted 90 days prior to the expiry of the first period.

Permit — Products whose use results in lower VOC emissions

The Regulations will include a provision for a permit allowing products to exceed the VOC concentration limits if, as a result of product design, formulation, delivery or other factors, the total VOC emissions from that product will be lower than those from a comparable compliant product when used in accordance with the manufacturer’s written instructions. The permit would be valid for a period of four years from the date it is issued and could be renewed every four years, provided the application is submitted at least 90 days prior to the expiry of the previous period.

VOC Compliance Unit Trading System

The Regulations will include a VOC Compliance Unit Trading System similar to CARB’s Alternative Control Plan Regulation for Consumer Products and Aerosol Coating Products with certain differences that take into consideration the Canadian context. The program will provide an alternative method for complying with VOC concentration limits by providing a permit that will allow companies to manufacture or import products that exceed concentration limits in the following ways:

To apply, participate and maintain a permit in the program, companies will be required to follow the requirements and deadlines as set out by the Regulations. Permits under the program will be valid indefinitely if participating companies continue to submit the required annual reports and meet conditions set out by the Regulations. Further, regulated parties will be required to submit a report for each calendar year during which they participate in the program.footnote 4

Modifications from the proposed Regulations

The Department carefully reviewed all comments received on the proposed Regulations published in 2019 in the Canada Gazette, Part I. Key concerns from stakeholders related to the alignment of product category definitions with existing California regulations. The Department has completed a detailed analysis of the comments, and consulted with CARB staff to ensure alignment. As a result, a number of definitions have been revised to ensure more precise alignment with CARB definitions. The coming into force for certain aspects of the regulations has been modified, to allow for the application for permits and the building of compliance units one year in advance of the coming into force of the product limits. In addition, the obligation to keep on record the port of entry through which a product is imported has been removed to decrease burden on stakeholders. Finally, the deadline for reporting under the VOC Compliance Unit Trading System has been extended from January 31 to March 1 to allow more time for regulatees to compile year-end data.

Regulatory development

Consultation

Consultations prior to the publication of the proposed Regulations in the Canada Gazette, Part I (CG-I)

Official consultations regarding the proposed Regulations took place in two stages. Preliminary consultations with industry, provincial and territorial governments, and environmental non-governmental organizations (ENGOs) took place in 2013. Follow-up consultations with industry associations and ENGOs regarding the Cost-Benefit Analysis framework and regulatory text took place in 2018.

The preliminary consultations were officially launched in January 2013 and concluded in March 2013. A consultation document titled Revisions to the Proposed Volatile Organic Compound (VOC) Concentration Limits for Certain Products Regulations was released by the Department for a 60-day public comment period. The document provided background information and outlined the path forward with respect to revising the proposed Regulations.

A formal public consultation session was held in Toronto in February 2013. The purpose of the meeting was to discuss the next steps in the regulatory development process and gather information regarding the challenges and needs of small businesses and other stakeholders that will be impacted by the proposed Regulations. Approximately 130 representatives attended the stakeholder meeting from industry, industry associations, environmental non-governmental organizations and other government departments. Twenty-nine stakeholders, including ten industry associations, provided comments on the consultation document.

A letter was also sent by email to the members of the CEPA National Advisory Committee (CEPA NAC) and relevant federal government departments were consulted on the proposed Regulations. No major concerns were raised by federal government departments or CEPA NAC.

In April 2018, the Department shared a Cost-Benefit Analysis Framework with industry associations and ENGOs. This framework outlined the methodology, assumptions, and sources of data used to estimate the costs and benefits of the proposed Regulations. In 2018 and 2019, the Department also met with key industry associations to update them on the regulatory proposal and address any outstanding concerns.

Feedback received from stakeholders prior to the publication of the proposed Regulations in the Canada Gazette, Part I, helped identify areas requiring clarification and areas of concern for regulated and interested parties. A detailed response to stakeholder comments was published on the Department’s website concurrently with the publication of the proposed Regulations.

Consultations following the publication of the proposed Regulations in CG-I

The publication of the proposed Regulations in the Canada Gazette, Part I, on July 6, 2019, initiated a 75-day comment period where interested parties were invited to submit their written comments. The proposed Regulations were posted on the Department’s CEPA Environmental Registry website to make them broadly available to interested parties. The Department also distributed an email to interested parties to inform them of the formal consultation process. The Department received written input from 19 external stakeholders (5 companies, 11 industry associations, 2 individuals, and one provincial government). A comprehensive summary of the comments received and the Department’s responses will be posted on the Department’s VOC website concurrently with the publication of the Regulations.

In 2020 and 2021, the Minister of Environment and Climate Change responded to concerns raised by an industry association in letters to the Minister and the Department offered to meet to discuss their comments. In 2021, the Department met with key industry associations from Canada and the United States that submitted comments on the regulatory proposal.

Summary of key concerns

Stakeholders expressed a diverse range of views on the proposed Regulations, with the majority indicating support for moving forward with regulations aligned to CARB regulations and a few questioning the need for the regulations. Concerns and recommendations were expressed on the need for regulatory measures, alignment with CARB regulations, regulatory design and the analysis of costs and benefits. A summary of the key issues is provided below.

Need for regulations

Ten stakeholders supported the decision to align the regulations with the 2010 CARB Regulations and a further three requested that the regulations more clearly align with CARB. Two of these industry stakeholders questioned the necessity of the Regulations stating that the results of the 2013 Survey showed that 90% of products are already in compliance with the 2010 CARB Regulations and suggested that current voluntary measures should be updated as an alternative to regulatory measures.

The Regulations are required to protect the environment and health of Canadians from the effects of air pollution and to provide a level playing field for Canadian manufactures and importers. While the vast majority of products are compliant with the 2010 CARB Regulations, those products that are not represent significant VOC emissions. The 2013 Survey showed that the Regulations would lead to an estimated 25-kilotonne reduction in VOCs emitted per year. Regulatory measures will level the playing field for manufacturers and importers into Canada, and result in significant benefits. According to the cost-benefit analysis, health benefits attributable to air quality changes from the Regulations are estimated to be $886 million over the period of 2024–2033, the majority of which are a result of reduced risks of premature death.

Product definitions and alignment with CARB regulations

While several stakeholders expressed support for the intent of the Regulations to generally align with CARB 2010, many raised concerns regarding the product category definitions. They believe that the wording does not align with CARB and will result in confusion for industry and enforcement. Some stakeholders requested the verbatim adoption of CARB definitions or the incorporation of CARB definitions by reference in the Regulations. Some stakeholders raised specific concerns about the wording in some product categories.

Product category definitions in the Regulations are aligned with the 2010 or 2013 CARB Regulations for all product categories except for acoustical sealants, which is a specific product needed in the Canadian climate. Product concentration limits are higher in Canada for a few categories, including certain sealant and caulking products, paint thinner, and multipurpose solvent, to adapt to climate or marketplace conditions.

Verbatim adoption of CARB definitions would not be consistent with Canadian regulatory drafting styles. For example, Canadian definitions do not replicate common dictionary definitions or exclude product categories that are not captured by the product limits. Furthermore, Canadian regulations are drafted in two languages, and must be drafted in a way that can be equally interpreted in both official languages and under both the common and civil systems of law.

Similarly, the use of incorporation by reference for product category definitions would require referencing outdated unilingual versions of two California regulations, the Regulation for Reducing Volatile Organic Compound Emissions from Antiperspirants and Deodorants and the Regulation for Reducing VOC Emissions from Consumer Products. This may pose challenges for companies in understanding their obligations under the regulations, particularly for Canadian companies with no knowledge of Californian law. As such, verbatim adoption or incorporation by reference of the CARB definitions is not a suitable option.

Although the wording of the product categories in the Regulations may not be exactly the same as the wording used by California, the Department has taken great care to ensure that the definitions align in scope and application. The Department engaged with CARB to ensure alignment with the scope of the product categories. The Department has considered all comments received and has reviewed the definitions for all product categories and has added precisions to the majority of product categories to better align with CARB. The Department will also provide guidance materials that clarifies the intent to align with CARB definitions.

Coming-into-force timelines

Divergent comments were received regarding the coming-into-force dates with some associations expressing support for the proposed coming-into-force dates and some asking for additional time to comply.

The Department considers the proposed timelines to be sufficient, as the Regulations would come into force on January 1, 2023, with the VOC concentration limits coming into force on January 1, 2024, more than two years after they are published. The disinfectants product category has an additional year to comply, to allow time for reformulation of products and, if necessary, approval from the Department of Health.

The Regulations offer alternative compliance options to provide flexibility for companies that find it challenging to meet the regulatory requirements. These options include a VOC Compliance Unit Trading System, as well as limited-term permits for companies that are unable to meet the regulatory requirements for technical or economic reasons. Thus, the Department has not amended the coming into force dates of the VOC concentration limits.

Record keeping

Several stakeholders expressed concern regarding the requirement that records be kept at the place of business in Canada suggesting that stakeholders be provided time to produce records, and that electronic records should be allowed to be stored on servers outside of Canada.

These provisions have not been adopted, as they would limit enforceability during an investigation. Immediate access to records is needed to allow enforcement officers to assess for completeness of records and to reduce the potential for falsifying records. Electronic records can be kept if saved on a server in Canada. The provisions in these regulations are consistent with the approach in other CEPA regulations.

Industry impacts and compliance flexibility

Industry stakeholders expressed concern that the proposed regulations will pose challenges to businesses, especially small businesses, to comply. A recommendation was made to allow flexibility to tailor permit requirements to individual circumstances. One also suggested that requirements for permit renewal be simplified.

The Regulations include a provision for temporary permit applications for products that would otherwise be unable to meet the regulatory requirements for technical or economic reasons at the time of coming-into-force of the VOC concentration limits. The permit would be valid for a period of two years from the date it is issued, with the possibility of a two-year extension. Permit requirements have been standardized to ensure a level playing field and avoid unfair competition practices. Companies that continue to have difficulties with compliance have the option to use the VOC Compliance Unit Trading System to balance within their product lines to meet the concentration limits or trade compliance units with another company. The Department views these measures to be sufficient to ensure the compliance flexibility necessary to avoid adverse impacts to businesses, including small businesses.

Survey data used for cost-benefit analysis

Several industry stakeholders commented that the survey data used to estimate costs and benefits is outdated and therefore the benefits could be overestimated. It was requested that a new, up-to-date survey be conducted that better reflects the current landscape of products from industry.

The Department acknowledges that early compliance with the VOC content requirements of the Regulations may have occurred since the data used to support the cost-benefit analysis was sourced. However, air quality modelling conducted by the Department demonstrates that the health benefits expected as a result of the Regulations are proportional to VOC reductions, within a range of plausible reduction outcomes. Additionally, companies with products that are already compliant with the regulatory requirements would not incur additional compliance costs as a result of the Regulations. Thus, if VOC emissions are in fact lower than those estimated in the Regulatory Impact Analysis Statement (RIAS), the Regulations are still expected to result in net benefits to Canadians.

The Department invited stakeholders to provide new information and to redistribute the survey to their members to provide updated data. In lieu of updated data, the RIAS has provided estimates of the expected impacts for alternate scenarios in the Sensitivity Analysis section below. This analysis concludes that the Regulations will result in net benefits to Canadians over a range of plausible outcomes.

Reformulation cost estimates

Several industry stakeholders commented that estimated reformulation costs in the cost-benefit analysis are underestimated given the need for a company to develop and bring a new, lower VOC product into the Canadian market. One industry association commented that based on an informal survey of association members, it could cost between $100,000 and $200,000 per product to reformulate and repackage products.

The Department recognizes that reformulation costs will vary across companies and products. The reformulation cost used in the cost-benefit analysis represents an average across all products. It is expected that certain products will require reformulation costs that are higher than this average value. It should be noted that the analysis also assumes all non-compliant products are reformulated, although it is likely that some products can be replaced with existing formulations for other products where relevant.

Information received by the Department regarding alternative reformulation cost estimates is not considered comprehensive enough to use in the central cost benefit analysis. However, an alternate scenario using a value of $150,000 per product has been assessed in the sensitivity analysis below. Significant net benefits are still expected under this scenario.

Health benefit estimation

Several industry stakeholders commented that the health benefits identified in the RIAS are an overestimation. They also asserted that if the benefits were as high as stated, the regulations should have been put in place many years ago.

The modelling approach used to estimate the expected health benefits associated with the Regulations is consistent with the Department’s modelling approach for other analyses of regulations with significant VOC emission reductions. This approach uses peer-reviewed and internationally accepted models to estimate changes in atmospheric concentrations of air pollutants and the resulting changes in health impacts. These changes in health impacts are then monetized using economic values drawn from the available literature to estimate the average per capita economic benefits.

The majority of the benefits are expected to be a result of estimated reductions in the risk of premature death. Values based on average willingness to pay for small reductions in the risk of premature death are estimated in accordance with section 7.2 of the Treasury Board of Canada Secretariat’s Policy on Cost-Benefit Analysis. Additional benefits are derived from reduced risk of chronic and short-term respiratory problems.

Administrative costs

Several industry stakeholders commented that the one-for-one rule was not applied appropriately and that the proposed Regulations would present significant new administrative burdens on companies, including burden that is disproportionately high for Canadian companies and importers.

In response to these concerns, the Department has conducted a review of the administrative cost analysis and has now concluded that the one-for-one rule applies to the Regulations. Estimates of administrative costs associated with familiarization with information requirements and compilation of data necessary to comply with record-keeping requirements are presented in the one-for-one rule section below, along with the assumptions used to derive these estimates. Administrative costs associated with voluntary compliance mechanisms have not been estimated, in accordance with section 7.2.3 of the Government of Canada’s Policy on Limiting Regulatory Burden on Business. The results of this updated analysis demonstrate that the administrative costs associated with the Regulations are not disproportionately high.

Modern treaty obligations and Indigenous engagement and consultation

The proposed Regulations are not expected to have direct impacts on Indigenous peoples and no modern treaty obligations are expected to be affected.

Instrument choice

Status quo approach

Without the Regulations, the only measures in place to limit VOC emissions from certain product categories are voluntary measures. The Guidelines for Volatile Organic Compounds in Consumer Products, published in November 2002, recommended voluntary VOC concentration limits for 41 product categories and subcategories. While the majority of imported products are expected to be compliant with the Regulations, there has been limited uptake of these voluntary standards by domestic manufacturers and importers. Maintaining the status quo approach will not meet the Government of Canada’s objectives to reduce health and environmental risks associated with VOC emissions nor align with national and international commitments. Therefore, this option was rejected.

Additional voluntary measures approach

To date, voluntary measures have not achieved significant VOC emission reductions from certain products. Since the majority of certain products are imported, it is difficult to convince importers and foreign manufacturers to follow additional voluntary measures. Further, since the existing voluntary measures have resulted in minimal reductions of VOC emissions, additional voluntary measures are unlikely to result in greater reductions. Implementing additional voluntary measures will not meet the Government of Canada’s objectives to reduce health and environmental risks associated with VOC emissions and to align with national and international commitments. Therefore, this option was rejected.

Regulatory approach

The approach that has been chosen to meet the Government of Canada’s objectives and commitments is to place VOC limits on consumer products being imported and/or manufactured in Canada. During the period of 2003 to 2013, the Department collected VOC concentration data for a broad range of products sold in Canada. This data was assessed against various VOC concentration limits in other United States jurisdictions. This assessment indicated that the greatest potential for VOC emission reductions in Canada would be achieved by establishing VOC concentration limits similar to CARB’s Consumer Product Regulations. Other jurisdictions in the United States, such as the Ozone Transport Commission, the South Coast Air Quality Management District and the Lake Michigan Air Directors Consortium either have adopted or are in the process of moving towards VOC limits established by CARB.

As such, the Regulations will align with CARB’s Consumer Product Regulations to facilitate consistency across North America and ensure a level playing field for Canadian manufacturers and importers. The mandatory nature of the Regulations will also provide a level of certainty in ensuring VOC emission reductions. Therefore, the Regulations will help the Government of Canada reduce health and environmental risks associated with VOC emissions, and meet national and international commitments.

Regulatory analysis

Benefits and costs

The impacts of the Regulations have been assessed in accordance with the Treasury Board Secretariat (TBS) Canadian Cost-Benefit Analysis Guide. The analysis compares the incremental impacts of two scenarios: a baseline scenario maintaining the status quo in which the Regulations are not in place and VOC concentration limits are unchanged and remain voluntary and a policy scenario in which VOC concentration limits are set in accordance with the Regulations. As illustrated by the logic model below, compliance with VOC concentration limits is expected to reduce VOC emissions and improve overall air quality. This will result in both health and environmental benefits for Canadians.

Figure 1: Logic model for the analysis of the Regulations

Logic model for the analysis of the Regulations – Text version below the image

Figure 1: Logic model for the analysis of the Regulations - Text version

The logic model in Figure 1 illustrates the incremental impacts of the Regulations. The logic model contains ten rectangular text boxes of varying sizes (small, medium and large) and is meant to be read from left to right in sequential order. There are right arrow symbols in between each text box to show the chain of causes and effects between the Regulations and its intended outcomes.

The first three text boxes span the entire height of the figure. These large text boxes contain the text “Regulations”, “New VOC concentration limits” and “Reduced level of VOC in certain products”, respectively. There is a right arrow between each text box to indicate that the Regulations will establish new concentration limits for volatile organic compounds (VOCs) which will result in a reduction in the level of VOC emissions in certain products.

Two medium-sized text boxes branch off the last large text box (“Reduced level of VOC in certain products”), and are stacked roughly on top of each other. The text box on top reads “Reduced VOC emissions” while the text box on the bottom reads “Compliance costs”. This is to indicate that reducing the level of VOCs in certain products will lead to reduced VOC emissions as well as increased costs to importers and manufactures to comply with the Regulations. Another medium-sized text box titled “Improved air quality” branches off the top text box to show that reducing VOC emissions will result in improved air quality.

Two small text boxes titled “Improved health” and “Improved environment” branch off the text box titled “Improved air quality” to indicate that improved air quality will result in both improved health and improved environmental outcomes. Lastly, two small text boxes titled “Reformulation costs” and “Substitution costs” branch off the text box titled “Compliance costs” to show the two types of incremental compliance costs that were quantified in this analysis.

The VOC concentration limits set out by the Regulations are expected to come into force two years after the date on which they are registered. It is expected that by the year 2024, all regulated certain products will be compliant with the Regulations which will lead to reductions in VOC emissions. Compliance costs are expected in the form of one-time product reformulation costs to be incurred a year prior to the compliance period (2023) and ongoing raw material substitution costs to be incurred annually beginning in 2024. It is also expected government costs to implement the Regulations would be incurred starting in 2022. Thus, the timeframe for assessing the impacts of the Regulations is the period between 2022 and 2034, which is sufficient to demonstrate that the benefits are likely to exceed the associated costs. Costs and health benefits have been quantified, monetized and presented in 2020 Canadian dollars wherever possible. Future year impacts have been discounted at 3% per year to 2021 (the year of analysis) as set out by TBS guidelines. Due to time constraints associated with this regulatory analysis, as well as the significance of the associated health benefits, environmental benefits were not estimated but are described qualitatively.

The Regulations are estimated to result in approximately 250 kilotonnes of VOC emission reductions between 2024 and 2033. The benefits of these reductions, due to improved health outcomes resulting from improved air quality, are valued at about $886 million over the timeframe of analysis. Further, compliance and administrative costs of about $228 million are expected to be incurred by industry, in addition to administrative costs to government of $6 million. The net benefits of the Regulations are estimated to be approximately $651 million.

Updates to the analysis following publication of the proposed Regulations in CG-I

Changes to the estimated impacts of the Regulations from those published with the proposed Regulations in CG-I can be attributed to the following factors:

Regulatory coverage and compliance options

To estimate the incremental benefits of the Regulations, the analysis considered who will be affected (regulatory coverage), how they will likely respond, and alternative compliance options available (compliance options), as described below.

Regulatory coverage

The regulatory coverage will extend and apply equally to the manufacturers and importers of products in approximately 130 categories and subcategories. They will be directly regulated and will need to manufacture or import certain products in line with the VOC concentration limits.

Importers: Products imported into Canada will be required to be compliant with the VOC concentration limits. According to a study commissioned by the Department, an estimated 65% of products expected to be subject to the Regulations are imported into Canada. The majority of these products, around 80%–90%, depending on product category, are imported from the United States.footnote 5 Some importers currently import both compliant and non-compliant products under the same category. In this case, importers will be able to discontinue the import of non-compliant products. Importers also have the option of switching over to importing products that are already compliant with the Regulations and will not require any reformulation. However, for the purposes of this analysis, it is assumed that both reformulation costs and annual raw material substitute costs will be passed on to Canadian importers.

Manufacturers: Products manufactured in Canada will be required to be compliant with the VOC concentration limits. Manufacturers not currently producing compliant products will be expected to incur upfront reformulation costs, in addition to annual raw material substitute costs. Some manufacturers currently produce both compliant and non-compliant products under the same category. In this case, manufacturers will be able to discontinue the production of non-compliant products and replace them with their existing compliant products, without incurring incremental reformulation costs. For the purposes of this analysis, it is assumed that all non-compliant products manufactured in Canada will be reformulated, incurring associated upfront costs and annual raw material substitute costs.

Sellers of certain products containing VOCs will not be directly regulated or affected by the Regulations. Sellers will be able to sell products exceeding the VOC concentration limits until stock is depleted. Further, the Regulations are expected to eliminate the presence of non-compliant products in the Canadian markets in the near future as the sell-through period of non-compliant products is expected to be short.

According to survey results reported in a study commissioned by the Department, approximately 29 283 products currently in the Canadian market are compliant with the VOC concentration limits while approximately 3 045 products are not compliant.footnote 6 For the purposes of this analysis, products have been grouped into three main categories according to primary and secondary North American Industry Classification System (NAICS) codes and in line with intended use. These categories are displayed in Table 1 below.

Table 1: Product categories, compliant products and non-compliant productsfootnote 6
Type of products Product categories and subcategories Estimated compliant products Estimated non-compliant products
Personal care products 20 10 045 370
Maintenance products 90 18 958 2 486
Adhesives products 20 280 189
Total 130 29 283 3 045

Personal care products encompass products within the Toilet Preparation and Manufacturing category (NAICS 325620). Examples of products regulated under this category include deodorant, nail polish remover, hair spray and shaving gel/cream.

Maintenance products encompass products within the Soap and Cleaning Compound Manufacturing category (NAICS 325611 and 325612) and All Other Miscellaneous Chemical Product and Preparation Manufacturing category (NAICS 325999). Examples of products regulated under these categories include degreasers, air fresheners, furniture maintenance products and multipurpose solvents.

Adhesives products encompass products within the Adhesives Manufacturing category (NAICS 325520). Examples of products regulated under this category include spray adhesives, sealants and caulks.

Cooking sprays will also be subject to the Regulations but they are not considered in the analysis of costs and benefits as manufacturers and importers are expected to already be manufacturing or importing compliant alternatives or have access to compliant formulations that are not likely to require raw material substitutes.

Compliance options for manufacturers and importers

As importers and manufacturers comply with the Regulations, the supply of certain products containing higher VOC concentrations in the Canadian market will be reduced. The analysis assumes that all manufactured non-compliant products will be reformulated and will require raw material substitutes.

However, a variety of reformulation strategies exist and may include simple dilution of VOC contents, replacement of VOC content with non-VOC materials, replacement of VOC content with exempt VOCs to allow for lower VOC formulations. Further, regulated parties may also opt for voluntary compliance flexibilities in the form of temporary exemptions and access to a tradable compliance unit program.

Alternative compliance flexibilities available to importers and manufacturers are expected to reduce the costs associated with the Regulations. In the case of permits related to technical or economic infeasibility, health benefits associated with reduced VOC emissions could be deferred. Due to uncertainty regarding the degree to which these options will be adopted, they have not been considered in the analysis. Voluntary alternative compliance options are listed below.

Permit — Compliance not Technically or Economically Feasible: Regulated parties producing and manufacturing products that are unable to meet the regulatory requirements due to technical or economic reasons could apply for temporary permits. These permits will allow the regulated parties to continue manufacturing and importing these products under conditions set out by the Regulations.

Permit — Products Whose use Results in Lower VOC Emissions: Regulated parties will be able to apply for permits that allow products to exceed the VOC concentration limits, if as a result of product design, formulation, delivery, or other factors, the total VOC emissions will be lower than those from a comparable compliant product of the same category.

VOC Compliance Unit Trading System: Regulated parties will be able to continue manufacturing or importing products exceeding the VOC concentration limits by applying for permits to participate in the tradable compliance unit program under the Regulations.

Costs of the Regulations

Compliance with the Regulations will lead to incremental costs to manufacturers and importers in the form of product reformulation costs and raw material substitute costs. They are also expected to result in administrative costs for industry and the federal government.

Product reformulation costs

Non-recurring reformulation costs are based on average time and laboratory costs required to reformulate a typical product. According to data obtained through industry-wide surveys and research reported in a study commissioned by the Department, the average cost of reformulation is estimated to be about $30,100 per product per company.footnote 7 These costs are expected to vary across firms and products.

The analysis uses the average reformulation cost of $30,100 per product per company to estimate compliance costs for Canadian regulated parties manufacturing or importing non-compliant products. To comply with the Regulations, manufacturers and importers are expected to incur approximately $93 million in direct or passed down reformulation costs. Since the number of non-compliant products varies across product categories, the total impact of reformulation costs is also expected to vary as demonstrated in Table 2. The lack of current and available data does not allow for the disaggregation of one-time reformulation costs between importers and manufacturers.

Reformulation costs could vary according to the size of the manufacturer. For example, according to the technical study commissioned by the Department, reformulation costs for large multinational manufacturers could be as much as 50% lower since these firms often have considerable experience with product reformulation. Further, they may have existing formulations for compliant products used in other jurisdictions that have similar VOC concentration limits in place.footnote 7

Raw material substitutes costs

The analysis assumes that all products requiring reformulation will also require raw material substitutes to lower VOC concentration limits of non-compliant products. Depending on the reformulation options, raw material costs are expected to vary across and within product categories covered by the Regulations. Similar to reformulation costs, specialized products and products requiring specialized uses are more likely to require costly substitute material. Depending on the product, substitute material costs can range from cost savings of –$0.1 per kg to costs of $4 per kg. Raw material costs are expected to constitute the majority of compliance costs for most product categories.footnote 7 Complying with the Regulations is expected to result in approximately $135 million of raw material substitute costs between 2023 and 2033.

Table 2 below provides estimates of the costs of the Regulations to regulated parties. The overall compliance costs (including reformulation costs and substitution costs) for all product categories is expected to be approximately $228 million. Personal care products will account for approximately $29 million in total compliance costs. Maintenance products will incur approximately $169 million in total compliance costs. Adhesives products will account for a total compliance cost of approximately $29 million.

Table 2: Total VOC quantities, and compliance costs per product category
Note: Monetized values in 2020 dollars and discounted to present value using a 3% discount rate. Numbers may not add up due to rounding.
Type of products Quantity of products used in Canada, 2012 (kt) Reformulation cost, 2023 Raw substitute material cost, 2024–2033 Total costs, 2023–2033
Personal care products 16 16,769,000 12,334,000 29,103,000
Maintenance products 143 70,428,000 98,531,000 168,959,000
Adhesive products 22 5,354,000 24,364,000 29,718,000
Total 181 92,552,000 135,229,000 227,781,000

Total raw material substitute costs are expected to differ for manufacturers and importers. Domestic manufacturers are expected to incur approximately $51 million in raw material substitute costs over the 10-year period (2024–2033). As for importers, they are expected to incur approximately $85 million in raw material substitute costs over the 10-year period (2024–2033).

Industry and government administrative costs

Administrative costs to industry are expected to be incurred related to record-keeping requirements and familiarization with the information obligations of the Regulations. These costs are estimated to be $610,000 between 2024 and 2033. Further detail and assumptions can be found in the one-for-one rule section below.

The Department will incur costs to enforce and administer the Regulations and to conduct compliance promotion. Before the coming into force date, non-recurrent costs of about $262,000 will be expected as a result of training enforcement officers and $1,494,000 will be required for strategic intelligence assessment work. The cost of annual inspections, measures to deal with alleged violations, investigations, prosecutions, and intelligence is estimated to be $299,000. Overall, enforcement costs are estimated at $4,682,000 between 2022 and 2033.

Compliance promotion activities are intended to encourage the regulated community to achieve compliance. Compliance promotion costs include costs of distributing the Regulations and developing and distributing promotional materials (such as fact sheets and web material). This cost is estimated to be $222,000 between 2022 and 2033.

There will also be costs to Government for the review and approval of permits submitted for voluntary compliance options. The total cost of permit reviews is estimated to be $1,394,000 between 2022 and 2033. Table 3 below summarizes estimated government administrative costs to ensure compliance.

Table 3: Administrative costs for government
Note: Monetized values in 2020 dollars and discounted to present value using a 3% discount rate. Numbers may not add up due to rounding.
Sector 2022–2023 2024–2033 Total
Government administrative costs 2,687,000 3,611,000 6,298,000
Industry administrative costs – 610,000 610,000
Total administrative costs 2,687,000 4,221,000 6,908,000

Benefits of the Regulations

The Regulations are expected to reduce VOC concentration limits in certain products being manufactured and imported in Canada. VOCs are precursor pollutants that contribute to the formation of ground-level ozone and PM2.5, which are the main constituents of smog. Exposure to ground-level ozone and PM2.5 can lead to adverse health impacts such as respiratory and cardiac symptoms that can, in some cases, lead to premature mortality. For the purposes of this analysis, it is assumed that the VOC concentration limits will take effect in 2024 and that VOC emission reductions will begin concurrently. As a result, health benefits will be gained from avoided adverse health impacts linked to exposure to ground-level ozone and PM2.5.

VOC emission reductions scenarios

A study commissioned by the Department found that the Regulations could result in approximately 25 kilotonnes of annual VOC emission reductions, which represents approximately 50% reduction in VOC emissions from certain products.footnote 7 The study compiled and analyzed data collected from a survey shared by the Department with Canadian manufacturers and importers expected to be impacted by the Regulations. Where data gaps were identified, the study incorporated secondary sources.footnote 8 The data was then used throughout the study to arrive at an estimate of annual VOC emission reductions.

The Department assessed annual VOC emission reductions scenarios of 10, 25, and 50 kilotonnes. These scenarios were chosen to represent a range of potential regulatory scenarios and to assess how impacts vary by size of emissions. The scenarios assumed that the reductions will be located proportional to population density in line with census data. Given the resource-intensive and time-consuming nature of the detailed modelling to estimate emission reductions, changes in ambient air quality, and the associated benefits, the Department chose 2025 as a representative year for modelling purposes. This may under or over estimate air quality benefits associated with the estimated VOC emission reductions as changes in baseline ambient air quality will change the expected benefits from the Regulations.

The scenario assessing 25 kilotonnes of VOC emission reductions per year was selected as a rough approximation of the expected incremental reductions attributable to the Regulations. The 10 and 50 kilotonne scenarios were used for the purposes of sensitivity analysis. It was assumed this reduction level will remain constant over the period of analysis.

Air quality modelling

The VOC emission reductions scenario was then used as input within A Unified Regional Air-Quality Modelling System (AURAMS). AURAMS was used to estimate impacts on ambient air quality resulting from the interaction of VOC emission reductions with existing ambient air quality, daily weather, and wind patterns. Key outputs from AURAMS used in the benefits analysis include different metrics, such as hourly and daily ambient concentrations of PM2.5, nitrogen dioxide (NO2) and ground-level ozone, reported by census division and statistically aggregated.

Health benefits modelling and valuation

The Department of Health applied the Air Quality Benefits Assessment Tool (AQBAT) to estimate the health and economic impacts associated with air quality projections generated by AURAMS for the year 2025. The modelled changes in ambient air quality levels were allocated to each Canadian census division and used as inputs for AQBAT. Based on changes in local ambient air quality, AQBAT estimated the likely reductions in average per capita risks for a range of health impacts known to be associated with air pollution exposure. These changes in per capita risks were then multiplied by the affected populations to estimate the reduction in the number of health problems experienced by Canadians. AQBAT also applied economic values drawn from the available literature to estimate the average per capita economic benefits of lowered health risks. The method used by AQBAT is similar to those used by other health organizations, both in Canada and internationally.

Health benefits were estimated over a ten-year time period (2024–2033) beginning when the VOC concentration limits take effect, and assuming that the incremental reductions and resulting impacts are constant over this time period. Over this timeframe, health benefits attributable to changes in air quality resulting from the Regulations are estimated to be approximately $886 million (values presented in 2020 dollars and discounted by 3%). The projected benefits are primarily associated with reductions in ambient levels of PM2.5 and ground-level ozone and may vary by province (see Table 4). VOC emission reductions in Canadian territories were considered to be negligible and were not considered within the scope of this analysis.

The majority of the benefits are expected to be a result of estimated reductions in the risk of premature death. Values based on average willingness to pay for small reductions in the risk of premature death are estimated in accordance with section 7.2 of the Treasury Board of Canada Secretariat’s Policy on Cost-Benefit Analysis. Additional benefits are derived from reduced risk of chronic and short-term respiratory problems.

Table 4: Emission reductions benefits by province and pollutant ($)
Note: monetized values in 2020 dollars and discounted to present value using a 3% discount rate. Numbers may not sum to total due to negligible NO2 variation not displayed in the above table and due to rounding.
Province PM2.5 (2025) Ground-level ozone (2025)
Newfoundland and Labrador 3,000 3,000
Prince Edward Island 10,000 3,000
Nova Scotia 24,000 15,000
New Brunswick 40,000 27,000
Quebec 1,467,000 5,363,000
Ontario 10,892,000 29,619,000
Manitoba 188,000 191,000
Saskatchewan 70,000 83,000
Alberta 1,419,000 1,322,000
British Columbia 16,458,000 26,328,000
Total 30,570,000 62,955,000
Total benefits of overall VOC emission reductions modelled for the year 2025 $93,227,000  

Air quality modelling and the associated health benefits considered only the benefits of reductions in ground-level ozone and PM2.5, as per the intent of the Regulations. As such, the analysis did not consider the health benefits of reduced VOCs on indoor air quality, as only specific VOCs are known to be hazardous (such as benzene or formaldehyde), and it is unclear whether and in what proportion these VOCs will be reduced as a result of the Regulations. This analysis has only considered the benefits of reductions in ground-level ozone and PM2.5.

Environmental benefits

As precursors to the formation of PM2.5 and ground-level ozone, the primary constituents of smog, VOC emissions may lead to environmental impacts by damaging forest ecosystems, crops, and wildlife. Ground-level ozone is associated with reductions in agricultural crop and commercial forest yields, reduced growth and survivability of tree seedlings, and increased plant susceptibility to disease, pests, and other environmental stresses (e.g. harsh weather). Suspended particles may respectively impair visibility and result in soiling of surfaces, reducing household welfare and potentially increasing cleaning expenditures. Therefore, the Regulations could lead to a reduction in negative environmental impacts associated with VOC emissions. Due to time constraints associated with this regulatory analysis and the significance of the associated health benefits, the environmental benefits were not quantitatively estimated.

Summary of costs and benefits

By 2033, the Regulations will be expected to result in cumulative health benefits of approximately $886 million, compliance and administrative costs to industry of $228 million, and administrative costs to government of $6 million, resulting in net benefits to Canadians of approximately $651 million.

Cost-benefit statement

Table 5: Statement of benefits and costs
Monetized impacts 2022–2023 2024–2033 Total
Health benefits to Canadians – 885,996,000 885,996,000
Total benefits – 885,996,000 885,996,000
Reformulation costs 92,552,000 – 92,552,000
Raw material substitute costs – 135,229,000 135,229,000
Industry administrative costs   610,000 610,000
Total costs to industrytable 1 note a 92,552,000 135,839,000 228,391,000
Government administrative costs 2,687,000 3,611,000 6,298,000
Total costs 95,240,000 139,450,000 234,690,000
Net benefits (95,240,000) 746,546,000 651,306,000
Quantitative impacts
  • Approximately 25 kilotonnes of VOC emission reductions annually as a result of the proposed VOC concentration limits.
Qualitative impacts
  • Environmental benefits due to reduced VOC emissions.
  • Meeting commitments under the United States-Canada Air Quality Agreement.

Table 1 Note

Table 1 Note a

Some costs to industry may be passed on to consumers of regulated products.

Return to table 1 note a referrer

Uncertainty of impacts and sensitivity analysis

The results of this analysis are based on key parameter estimates and industry-wide surveys, which could be higher or lower than indicated by available evidence. Given this uncertainty, alternate estimates of the benefits and costs have been considered to assess their impact on expected net benefits. A wider range of uncertainty was considered for alternate benefit estimates, since there is a higher degree of uncertainty around the valuation of cost estimates. A worst-case scenario of higher costs and lower benefits was also considered.footnote 9

The estimated prices of VOC substitute material are one driver of uncertainty, as they may be higher or lower than estimated. Future prices of these substances are subject to various market forces that are difficult to predict with certainty. Another key driver of uncertainty is whether products will be reformulated or discontinued in favour of compliant products within the same product category. Further, if products are reformulated, there are different reformulation options that range from dilution of VOC content (e.g. using water) to using products with lower VOC concentrations. As for estimated benefits, the physical and chemical processes through which VOC emissions are converted to ground-level ozone and PM2.5 are extremely complex and not completely understood. Thus, the estimated changes in air pollutant concentrations and the associated health benefits are subject to uncertainty.

These uncertainties will affect the estimates of incremental compliance costs incurred by Canadian manufacturers and expected health benefits for Canadian society.

Over the chosen timeframe of analysis, estimated benefits were greater than costs (a benefit to-cost-ratio of more than 3:1 in the central case). A sensitivity analysis was conducted to consider scenarios assuming higher costs (+50%) and lower benefits (–50%), only higher costs (50%), and only lower benefits (–50%). In addition, a scenario using an alternate reformulation cost ($150,000 per product) based on industry feedback was estimated. Analysis was also conducted assuming 10 and 50 kilotonne emission reductions scenarios. Finally, a scenario assuming a higher discount rate (7%) was assessed. As shown in Table 6, there are expected net benefits over a range of alternate impact estimates and under an alternate discount rate, which is evidence that the net benefit results are likely robust.

Table 6: Sensitivity analysis for alternate estimates of costs, benefits and discount rate
Note: Monetized values in 2020 dollars and discounted to present value using a 3% discount rate, except in the case in which a 7% rate is used. Numbers may not add up due to rounding.
Alternate impact analysis estimates Benefits Costs Net benefits Benefit-cost ratio
Central case 885,996,000 234,690,000 651,306,000 3.8
Higher cost (+50%), lower benefit (–50%) estimate 442,998,000 352,035,000 90,963,000 1.3
Higher cost estimate (+50%) 885,996,000 352,035,000 533,961,000 2.5
Lower benefit estimate (–50%) 442,998,000 234,690,000 208,308,000 1.9
Higher reformulation cost ($150,000/product) 885,996,000 604,036,000 281,960,000 1.5
Higher discount rate (7%) 541,139,000 172,469,000 368,670,000 3.1
10 kilotonne emission reductions scenario 350,889,000 152,182,000 198,707,000 2.2
50 kilotonne emission reductions scenario 1,771,992,000 368,549,000 1,403,443,000 4.7

Distributional analysis of regulatory impacts

The impacts of the Regulations are not uniformly distributed across society. Therefore, the analysis has considered a range of distributional impacts.

Competitiveness and consumer impacts

An analysis conducted by CARB (PDF) found that businesses with a national presence in the United States had generally formulated products that were compliant with CARB standards for the entire nation, rather than incur the additional cost of setting up a separate product distribution system for California. Therefore, it is not expected that alignment with the VOC concentration limits will have a significant impact on the competitiveness of industries regulated. Further, the study commissioned by the Department indicated that it is unlikely that regulated parties will cease operations as a result of the Regulations since viable reformulations for the majority of products exist. Further, consultations with industry and regulated parties helped identify products that may face technical issues in reformulations. As a result, the Department has adjusted the VOC concentration limits for some products to ensure that the standards can be met. This includes products such as certain sealants and caulks, multipurpose solvents, and paint thinners.

As for impacts on product competitiveness and consumer choices, California has had similar VOC concentration limits in place since 2010 that have addressed concerns regarding the performance of these products. The Regulations will align with these revised limits. The Regulations have also adjusted the VOC concentration limits for some products to account for weather differences between California and Canada in order to maintain products’ effectiveness. Further, compliant and effective products already exist in the Canadian market. As such, product effectiveness and consumer choices are not expected to be significantly impacted by the Regulations.

Analysis of survey data collected as part of a study commissioned by the Department concluded that compliant products are not significantly more expensive than non-compliant products within the same category. Cost increases are expected to vary between 0.05% and 0.5%, depending on the product. In the case of non-compliant products, incremental compliance costs may be absorbed by regulated parties or passed on to consumers. It is difficult to predict with certainty the likelihood of regulated parties passing on costs to consumers as this will depend on compliance scenarios of individual products as well as the size of manufacturers.

Regional impacts

Assuming that the costs of the Regulations will be distributed across Canada based on the location of manufacturers of regulated products, it is expected that certain provinces will incur a higher portion of the compliance costs. In this regard, 41% of all manufacturers of regulated products are located in Ontario, 27% are located in Quebec, 16% are in the Prairie Provinces (mainly Alberta), 12% are located in British Columbia, and 4% are located in Atlantic Provinces. Figures related to manufacturers of regulated products located in Canadian territories were not reported in the industry-wide survey and research conducted as part of a study commissioned by the Department. Therefore, compliance costs for manufacturers within these regions were not estimated as part of this analysis.

Estimated air quality benefits depend on many location-specific factors, including ambient air quality, the mix of emissions, location and type of emission sources, as well as the population densities of affected areas (see Table 4). The majority of benefits will be expected in British Columbia (approximately 46%) and Ontario (approximately 43%). This is followed by Quebec (approximately 7%) and the Prairie provinces (approximately 3%). Atlantic Provinces will account for approximately 0.1% of the estimated benefits. VOC emission reductions in Canadian territories were considered to be negligible. Therefore, health benefits for these regions were not considered within the scope of this analysis.

Impacts on domestic manufacturers

Domestic manufacturers are estimated to incur up to $39 million in raw material substitute costs over the period of analysis (2023–2030). They are also expected to incur some portion of the $86 million estimated as total reformulation costs, based on an estimated reformulation cost of $30,100 per product. Larger manufacturers could face per product reformulation costs that are lower, as they may already have experience in reformulating products and may have an existing compliant product being used in other jurisdictions with similar VOC limits. For smaller domestic manufacturers, flexible compliance options exist to help mitigate their compliance cost burden, as discussed below.

Small business lens

The small business lens applies as there are impacts on small businesses associated with the Regulations. It is estimated that there are 1 950 manufacturers and importers that will be impacted by the Regulations. Of these, it is estimated that 1 285 manufacturers and importers are small businesses.

The Regulations will provide additional flexibilities to businesses, including small businesses, in the form of voluntary alternative compliance options that include permits available to products for which it is not feasible to reduce VOC content and permits for products whose use results in lower VOC emissions. Further, the trading option available under the VOC Compliance Unit Trading System was included to ensure a level playing field for small businesses with limited product lines. The program will allow small businesses to purchase compliance units from other companies for products they are unable to reformulate.

Some industry members have raised concerns about the lack of adequate phase-out time to reformulate some products. The Regulations will come into force on January 1 of the year following the first anniversary of the day on which they are registered, with the VOC concentration limits coming into force on January 1 of the year following the second anniversary of the day on which the Regulations are registered. In consideration of concerns regarding disinfectants, these products have one additional year before the VOC concentration limits come into force to allow time for reformulation of products and, if necessary, approval from the Department of Health.

As demonstrated by Table 7 below, the Regulations are expected to result in cumulative costs of approximately $41 million for small business, or $31,600 per small business.

Small business lens summary

Table 7: Small business lens summary
Note: Monetized values in 2020 dollars and discounted to present value using a 3% discount rate. Numbers may not add up due to rounding.
  Annualized value Present value
Compliance costs 5,171,000 40,263,000
Administrative costs 40,000 402,000
TOTAL COST (all impacted small businesses) 4,085,000 40,665,000
Cost per impacted small business 3,200 31,600

One-for-one rule

The one-for-one rule applies since there is an incremental increase in administrative burden on business, and a new regulatory title is introduced. The Regulations are estimated to increase administrative burden on business by $56,550 in average annualized administrative costs, or $29 per business.footnote 10

The 1 950 regulated parties are estimated to need about 1 hour each to familiarize themselves with their information obligations under the Regulations. In terms of recurring administrative costs, it is assumed that 1 950 regulated parties would each have an employee work for 2 hours annually to compile and file records required to be kept under the Regulations. The average wage rate assumed for these activities is $30.47 per hour.

Additional administrative burden may be incurred by regulated parties related to alternative compliance options under the Regulations. Administrative costs associated with these voluntary compliance mechanisms have not been estimated, in accordance with section 7.2.3 of the Government of Canada’s Policy on Limiting Regulatory Burden on Business. This is also consistent with the estimation of benefits and costs in the section, which does not estimate the effects of adoption of alternative compliance options.

Regulatory cooperation and alignment

The Regulations have been developed to enable the Government of Canada to meet its international commitments under the Ozone Annex of the Canada-United States Air Quality Agreement and harmonize its VOC regulations with those of other jurisdictions. To date, regulations have been put in place to address VOC emissions from paints and coatings through the Volatile Organic Compound (VOC) Concentration Limits for Architectural Coatings Regulations and the Volatile Organic Compound (VOC) Concentration Limits for Automotive Refinishing Products Regulations. The Regulations will address the Government of Canada’s commitment to lower and control VOC emissions from products used by consumers for institutional, industrial and commercial applications.

As part of the regulatory development process, the Department held discussions with United States government agencies and organizations regarding VOC concentration limits and their experience with the implementation of their regulations. The Department conducted an analysis and comparison of the VOC concentration limits established by the U.S. EPA, CARB, the Ozone Transport Commission and Lake Michigan Air Directors Consortium. As a result, CARB’s Consumer Product Regulations were selected as the basis for the Regulations.

This selection was based on the expected VOC reductions resulting from the VOC concentration limits set by CARB; the economic and technological feasibility of the VOC concentration limits; and the benefit of harmonizing Canada’s VOC concentration limits with concentration limits that are adopted by California. Other jurisdictions across the United States (18) have either already adopted or are in the process of adopting the limits established by CARB.

Some modifications were applied to reflect the Canadian context and input from stakeholders. In this regard, certain variations exist to accommodate climate differences (e.g. adjusted VOC concentration limits to account for weather differences to maintain products’ effectiveness), streamline the Regulations, align with Canadian regulations, and reduce administrative burden.

Other states that have not legally adopted the CARB standards will fall under the U.S. EPA Rule. The EPA Rule includes 40 product categories/subcategories based on California’s early regulations. As previously mentioned, a study conducted by CARB found that businesses with a national presence in the United States had generally formulated products that were compliant with CARB standards for the entire nation, rather than incur the additional cost of setting up a separate product distribution system for California.

California has amended their Consumer Products Regulations three times since 2010 with the latest amendments coming into effect in January 2019. California’s current regulations are more stringent in seven product subcategories out of the roughly 130 subcategories in the Regulations. Due to the limited changes, the regulations maintain the product categories and limits that were used in the pre-consultation process in all but four categories where changes were needed to address the Canadian market and climate concerns. No changes in product limits were made following publication in the Canada Gazette, Part I. The Department intends to continue monitoring California’s program and will consider changes to the VOC standards in the future if these changes are feasible for Canada.

Strategic environmental assessment

The Regulations will fall under the federal government’s Addressing Air Pollution Horizontal Initiative. A Strategic Environmental Assessment was conducted and concluded that actions under this initiative will protect the health of Canadians and the environment from the effects of air pollution.

Gender-based analysis plus

A gender-based analysis plus (GBA+) was undertaken. The results indicated that the Regulations are expected to improve the overall health of Canadians by proposing VOC concentration limits on certain products being manufactured and imported in Canada. The Regulations could affect the prices of some goods consumed in greater quantities by certain socio-economic groups or vulnerable populations (e.g. young children, seniors and other Canadians with existing respiratory or cardiovascular conditions). However, given the magnitude of expected costs and the varying abilities of regulated parties to pass on compliance costs to consumers, it is anticipated that these price impacts will not be substantial. Therefore, affected socio-economic groups and vulnerable populations are not expected to be significantly or disproportionately affected by the Regulations. As such, no GBA+ impacts have been identified for these Regulations.

Rationale

VOC emissions are precursors to the formation of ground-level ozone and PM2.5, two main components of smog. These emissions can have adverse impacts on Canadians’ health and environment. The existing voluntary guidelines recommending VOC concentration limits for consumer product categories have not achieved significant VOC emission reductions. To achieve significant VOC emissions reductions and help Canada meet its national and international commitments, the Regulations will limit VOC emissions from a wide range of products used by consumers and in institutional, industrial, and commercial applications.

The Regulations will set VOC concentration limits for approximately 130 product categories and subcategories being manufactured or imported in Canada. They will align with CARB’s Consumer Product Regulations with minor changes to account for the Canadian context. Alternative compliance options will be made available and are intended to help industry meet the VOC concentration limits and ensure reductions in VOC emissions are achieved.

Consultations on the Regulations with industry, provincial and territorial governments, and ENGOs began in 2013, with follow-up consultations regarding the Cost-Benefit Analysis framework and regulatory text in 2018. Since the publication of the proposed Regulations in 2019, stakeholders have expressed their views through formal comments during the comment period following prepublication in the Canada Gazette, Part I, written correspondence with the Department, and meetings with key industry associations. The Department has taken all comments and feedback received throughout the consultation processes into consideration when developing the final Regulations and accompanying analysis.

The VOC emission reductions associated with the Regulations are expected to lead to improvements in air quality. Between 2024 and 2033, the Regulations are expected to result in 250 kilotonnes of VOC emission reductions. The benefits of the Regulations will be approximately $886 million over the timeframe of analysis. Compliance and administrative costs incurred by regulated parties are expected to be about $228 million, while administrative costs to government are expected to be about $6 million. The net benefits of the Regulations are estimated to be approximately $651 million.

Implementation, compliance and enforcement, and service standards

Implementation

The Regulations will come into force on January 1 of the year following the first anniversary of the day on which they are registered, with the VOC concentration limits coming into force on January 1 of the year following the second anniversary of the day on which the Regulations are registered. In the case of disinfectants, these products have one additional year before the VOC concentration limits come into force to allow time for reformulation of products and, if necessary, approval from the Department of Health.

Quantitative indicators and targets, where applicable, have been defined and developed as part of the implementation strategy for the Regulations. Examples of performance indicators will include the availability of non-compliant products.

Through its enforcement activities, the Department will be able to assess compliance, after the coming into force of the Regulations. Information gathered from sources, such as reporting for permits and sampling/testing campaigns to determine if products being sold meet the regulatory limits, will provide the performance information necessary to measure progress towards the objective and the effectiveness of the Regulations. Once completed, the performance information collected will be summarized and reported.

Further, the Department will continue to report the progress, performance and overall effectiveness of the proposed Regulations in CEPA annual reports and departmental performance reports.

Compliance and enforcement

The compliance promotion approach will include the development and distribution of promotional materials (e.g. fact sheets, website material) to explain the provisions of the Regulations. The Department will work with industry associations and organizations to ensure that the appropriate information is available to the regulated community. As the regulated community becomes more familiar with the requirements of the Regulations, these activities are expected to decline to a maintenance level.

Enforcement officers will, when verifying compliance with the Regulations, act in accordance with the Canadian Environmental Protection Act: Compliance and Enforcement Policy. Verification of compliance with the Regulations will include inspection activities such as sample analysis, site visits and reviews of written transit documents.

Implementation, compliance promotion and enforcement activities as well as processing of permit applications activities will be resourced under existing resources and allocated accordingly within the existing departmental reference level.

Service standards

The Regulations will include voluntary permit options that will allow the manufacture and import of non-compliant products under certain circumstances. Permit applications will be reviewed by the Department. The service standards attached to the permit application process include an administrative procedure that may take up to 90 working days. Compliance with the service standards for processing permit applications will be monitored and evaluated as part of the regulatory evaluation process.

Contacts

Matthew Watkinson
Director
Regulatory Analysis and Valuation Division
Department of the Environment
200 Sacré-Cœur Boulevard
Gatineau, Quebec
K1A OH3
Email: ravd.darv@ec.gc.ca

Alex Cavadias
Acting Director
Products Division
Department of the Environment
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: produits-products@ec.gc.ca