Section 5: Performance Discussion

5.1 The Clean Environment Business Line - Protecting Canadians and Their Environment from Domestic and Global Sources of Pollution

Strategic Outcome: Protect Canadians and their environment from domestic and global sources of pollution

Environmental quality is central to our long-term quality of life and prosperity. It is critical to our health, our sense of well-being, and the liveability of our communities. The objective of the Clean Environment Business Line is to protect Canadians from domestic and global sources of pollution. Specifically, the Clean Environment Business Line, in collaboration with provinces and other partners:

• Identifies threats from pollutants, their sources and means of controlling them through the application of sound science;
  
  
• Develops standards, guidelines and codes of practice to ensure adequate levels of protection of environmental quality;
  
  
• Identifies and implements appropriate strategies for preventing or reducing pollution;
  
  
• Administers and enforces regulations for pollution prevention and control within areas of federal jurisdiction;
  
  
• Monitors levels of contaminants in air, water, and soil;
  
  
• Represents Canada's interests in the development of international agreements and accords to reduce pollution; and
  
  
• Provides advice and tools for preventing pollution and support to the development and deployment of green technologies.¹
  
  

Over the past 10 years, notable improvements have been observed in the state of Canada's environment. Concentrations of toxic compounds in some wildlife species have decreased and the acidification of a number of lakes has been reversed. Air quality, while still a concern, has improved in some urban areas and agricultural soils are now better protected from erosion. Some individual Canadians and Canadian industries have started using some resources more conservatively and treading more lightly on the environment. In addition, governments throughout Canada have made important gains in environmental protection.

While Canadians should take credit for the improvements made in environmental quality since the 1970's, significant challenges remain. Canadians continue to be affected by pollutants from many sources and in many different forms every day. We are feeling the effects of pressures on the environment through the pollution we breathe and toxic substances in the food and water we consume.

Smog is linked to thousands of premature deaths, 100,000s of illnesses, and 6,000 emergency room/hospital admissions every year. In addition, the prevalence of childhood asthma has increased 4-fold in 20 years and is now a leading cause of school absenteeism. Furthermore, toxic chemicals are accumulating in lakes, rivers, wildlife and the North, and greenhouse gas emissions continue to alter the climate.

The information in this chapter highlights how, within Environment Canada's management framework, the Clean Environment Business Line works to achieve two key results. The Business Line seeks to:

• Reduce the impact of human activity on the atmosphere and on air quality; and
  
  
• Understand, prevent and reduce the environmental and human health threats posed by toxic substances and other substances of concern.
  
  

Consistent with the structure outlined in Environment Canada's recent Reports on Plans and Priorities and Departmental Performance Reports, the Clean Environment Business Line publicly reports on its plans, priorities and performance in the areas of:

• Climate change;
  
  
• Air quality; and
  
  
• Toxic substances.
  
  

For more information related to a clean environment, visit:

• Climate Change: http://www.ec.gc.ca/climate/home-e.html or http://www.climatechange.gc.ca/english/.
  
  
• Environment Canada's 2004-2006 Sustainable Development Strategy: http://www.ec.gc.ca/sd-dd_consult/SDS2004/index_e.cfm.
  
  
• The Government of Canada's Environment, Agriculture and Natural Resources Portal: http://www.environmentandresources.ca.
  
  

5.1.1 Key Result: Atmosphere and Air Quality
Reduced adverse human impact on the atmosphere and on air quality

Climate Change

What is the issue?

Variations of the Earth's surface temperature 1000 to 2100

Source: IPCC 2001. Climate Change 2001: Synthesis Report. Contribution of Working Groups I, II and III to the 3rd Assessment Report of the IPCC [Watson, R.T et al. (eds.)]. Cambridge University Press, Cambridge http://www.ipcc.ch/pub/un/syreng/spm.pdf

Climate is the average pattern of weather (usually over a 30-year time period) for a particular region. Climate change is a change in the average weather that a given region experiences. Average weather includes all the features we associate with the weather such as temperature, wind patterns and precipitation. When we speak of climate change on a global scale, we are referring to changes in the climate of the Earth as a whole. The rate and magnitude of global climate changes over the long term have many implications for natural ecosystems.

Greenhouse gases (GHGs) affect the earth's climate by trapping solar energy, which is absorbed by the earth's surface and radiated back into the atmosphere as heat - this is called the "greenhouse effect." The main greenhouse gases produced by human activity are carbon dioxide, nitrous oxide, and methane. Canada is one of the largest per capita greenhouse gas emitters in the world because we are an important energy producer and we have an energy-intensive economy.

Greenhouse gas emissions in Canada have continued to rise. While emissions increased 2.1 percent in 2002, our economy grew by 3.3 percent, continuing a decade-long trend in improving the GHG efficiency of our economy. Since the beginning of the Kyoto baseline year of 1990, the economy has grown by more than 40 percent (based on GDP), compared to a 20.1 percent increase in GHG emissions. In other words, we are seeing the bending of the curve in emissions. ²

Addressing climate change is important to Canada's competitiveness and the health and security of Canadians. More than half of Canada's GDP is affected by climate and weather including: forestry, agriculture, fishing, hydro-electricity generation, transportation and tourism. Climate change will have an impact on air and water quality, biodiversity, species, agriculture, forestry and on life and development in the North. Taking action to address climate change is becoming part of how we are approaching the Government's new deal for cities and communities, our transportation and building policies, as well as our determination to position Canada for the 21st century economy.

Implementing near term and enduring emission reductions and setting long-term goals to make the deep emission reductions needed to successfully address climate change - and starting to work towards them - will be required to accelerate the shift to sustainability.

The challenge for all countries is developing and deploying the next generation technologies needed to make the transformative changes that will be required to make the economies of the world less carbon intensive and sustainable for the long term. Canada's long-term competitiveness will be determined by how we manage that transformation and how effectively we connect economic competitiveness with environmental considerations.

For more information on climate change and the actions being undertaken to address it, visit:

• Government of Canada Climate Change sites: http://www.climatechange.gc.ca/english/ and http://www.ec.gc.ca/climate.
• Climate Change: The Federal Investment 1997-2002 Comprehensive Report published in June 2003: http://www.climatechange.gc.ca/english/publications/comprehensive/.
• Environmental Signals: Canada's National Environmental Indicator Series 2003: http://www.ec.gc.ca/soer-ree/English/Indicator_series/default.cfm.
• The Environment chapter in the President of the Treasury Board's Annual Report to Parliament, Canada's Performance at: http://www.tbs-sct.gc.ca/report/govrev/03/cp-rc_e.asp.

What are we doing about it?

As early as the mid-70s, Environment Canada was part of global efforts to understand the science and impacts of global climate change. Contributing to the development of policies and plans to address climate change has been a departmental priority since the late 1980s. The Department's policy and program strategies have focused on:

• Contributing to the development of international frameworks and marketplace rules that will provide the basis for a global response to climate change;
  
  
• Laying the foundation for Canada's participation in the Kyoto Protocol through investments in energy efficiency, wind power, ethanol, green infrastructure, public transit, agencies such as Sustainable Technology Development Canada and extensive consultations with industry, NGOs, scientists, all levels of government and Canadians;
  
  

• Taking action through Action Plan 2000, the Climate Change Action Fund and other initiatives to better understand the science, measurement and opportunities for reduction of GHG emissions; and
  
  
• Helping Canadians take action on climate change.
  
  

As the federal lead on climate change science, Environment Canada undertakes and supports a broad range of scientific research in climate modeling and impact assessment, including initiatives of the Canadian Centre for Climate Modeling and Analysis and participation in the work of the Inter-governmental Panel on Climate Change. In 2000, the federal government allocated $60 million over six years to the Canadian Foundation for Climate and Atmospheric Sciences to support academic research on climate change and air quality. The Climate Science Agenda for Canada 2002-2012 sets out a coordinated approach to climate research among federal government departments, universities and others.

For more information on Environment Canada's work in the area of climate change science, visit:

• MSC's Science Assessment and Integration Branch at: http://www.msc-smc.ec.gc.ca/saib/index_e.html.
• MSC Atmosphere and Climate Science - Research Making a Difference: at http://www.msc-smc.ec.gc.ca/acsd/publications/RMD_msc_report/ RMD_toc_e.html or http://www.msc-smc.ec.gc.ca/acsd/publications/RMD_msc_report/RMD_Eng.pdf .
• The Canadian Centre for Climate Modeling and Analysis (CCCma) at: http://www.cccma.bc.ec.gc.ca/eng_index.shtml.

What have we accomplished?

Over the past ten years, Environment Canada has moved the climate change agenda from one of defining the issue to focusing on the conditions of success for achieving both economic competitiveness and environment sustainability. The Department's policy work, scientific research, public outreach efforts, and participation in national and international fora contributed to:

International rules and frameworks: Environment Canada has played an instrumental role in the international agreements reached to date. Canada's negotiations in Bonn (July 2001) helped shape rules for the implementation of the Kyoto Protocol. At the Conference of the Parties (CoP) 7 meeting in Marrakech, Morocco (November 2001) the international community passed a major milestone with the acceptance of a climate change implementation framework. Canadian-led consultations prior to Marrakech are credited in large part with addressing the uncertainty of developing countries with the use of the Clean Development Mechanism (CDM) and its inclusion in the framework.

Canadian climate change capacity: In partnership with Natural Resources Canada (NRCan) and other government departments, Environment Canada has been building Canadian capacity to meet climate change commitments through programs that support climate change science, technology development, impacts and adaptation research, and public education and outreach. Two important programs are:

• Action Plan 2000 (AP2000): The Government of Canada Action Plan 2000 on Climate Change, announced in October 2000, is a horizontally managed initiative led by Environment Canada and Natural Resources Canada. It involves seven federal departments whose measures are focused primarily on reducing greenhouse gas emissions. It envisions an economy that is based on cleaner energy using leading edge technologies. Action Plan 2000 advances knowledge and foundation building in: climate science; impacts and adaptation; northern and Aboriginal communities; and technological innovation.³
  
  
• Climate Change Action Fund: A $150 million program, the Climate Change Action Fund supports the development of a national implementation strategy and early actions to respond to climate change. The first phase was established in the 1998 Federal Budget and its success led to program renewal and Phase II (also $150 million over three years). Phase II is focused on international policy, technology development, science, impacts and adaptation, and public education and outreach. The Fund entered its third and final phase at the beginning of 2003 and will have completed its efforts over the next several years.
  
  

Bilateral relationships: The aggregate emissions of developing countries (who do not have legally binding reduction targets in the first Kyoto commitment period) will soon exceed those of countries with climate change targets. Environment Canada is pursuing strategic, bilateral relationships with those countries that will be significant in the second Kyoto commitment period (2012-2016) due to either their potential for emission reductions or emission credits. Agreements have been signed with Brazil, Mexico, Russia and China. Environment Canada continues to work internationally, in partnership with Foreign Affairs Canada, to develop greenhouse gas measurement strategies, build capacity to support climate change negotiations, set reduction targets and develop GHG mitigation strategies. The Department has also marked domestic progress, with federal/provincial/territorial Memoranda of Understanding on climate change with the territory of Nunavut, and the provinces of Prince Edward Island and Manitoba.

Marketplace mechanisms: Environment Canada is continuing work on innovative mechanisms to meet our national greenhouse gas emission reduction targets. For example, we are working with industry to examine how a public-private partnership may facilitate private sector involvement in the greenhouse gas market (purchasing credits from emissions reduction activities abroad). The Department is leading an interdepartmental effort to design an innovative Canadian offset system for GHGs that would be linked to the large final emitter system (LFE) led by Natural Resources Canada. The offset system would issue credits for qualifying emission reductions or sink creation projects; these credits could be used by participants in the LFE system as one of their compliance options.⁴

Public education and outreach: 2003-2004 was the final year of the Public Education and Outreach component of the Climate Change Action Fund (CCAF-PEO). CCAF Public Education and Outreach resulted in hundreds of project-based partnerships with the provinces, territories, private sector, communities, NGOs and educators. These projects have helped Canadians better understand climate change and what they can do to reduce their greenhouse gas emissions.⁵

Highlights of partnerships, publications and public education included:

• Climate Change and Health Primer, a science-based publication produced by Pollution Probe to increase awareness and improve understanding of the potential health effects of climate change, and the need to take mitigation and adaptation actions.
  
  
• Energy Solutions Handbook of climate change information and incentives for practical solutions to reduce sources of residential greenhouse gas emissions.
  
  
• "Climate Change - Are you doing your bit?" advertisements in the Globe and Mail and Montreal's La Presse reaching more than one million Canadian readers.
  
  
• The "Youth in Media contest" encouraged young Canadians to write a 30-second public service announcement (PSA) to help Canadians discover how they can reduce their greenhouse gas emissions. Nine PSAs were produced and broadcast on Canadian television stations.
  
  
• Youth and Educators Stream encouraged participation in initiatives to increase teaching of climate change in classrooms from kindergarten to grade 12.
  
  
• Community outreach included the Ecology Action Centre's project Promoting Sustainable Transportation in Nova Scotia, highlighting the highly successful TRAX project based in the Halifax Regional Municipality.
  
  
• The Idle Free Workplaces project, a collaboration of the City of Vancouver, B.C. Automobile Association, Insurance Corporation of B.C. and Young Drivers of Canada driving school, demonstrated the benefits of implementing Idle Free fleet policies.
  
  
• Raising Climate Change Awareness in Chinese Speaking Communities, a West Coast Environmental Law Research Foundation social marketing campaign in British Columbia.
  
  

Canadian awareness of climate change is increasing. Ninety percent of Canadians are aware of the issue, 16% identify it as the top environmental issue facing the country (up from only 2% in 1999). Close to eight in ten Canadians (78%) acknowledge that there is something they can do personally to address the problem, well above the 54% that provided the same response in 1998. Eight out of ten Canadians are taking steps in their daily lives to reduce emissions, a reflection of growing social values and a sense of personal and collective responsibility around environmental protection and climate change (Decima Research, 2003).

Scientific understanding: Science investments in the past year have contributed important gains, including:

• Projects investigating climate system processes to help address critical gaps in understanding and contribute to the improvement of climate system models, including the importance of the Arctic, properties of clouds and aerosols, and special uses of satellite imagery;⁶
  
  
• Support to expand modeling expertise and capacity at the Canadian Centre of Climate Modelling and Analysis (CCCma)⁷ at the University of Victoria; and
  
  
• Increasing the range of products from the Canadian Climate Impacts Scenarios Facility, and supporting other scenarios research and initiatives.
  
  

Environment Canada's science has led to a better understanding of the role of forests and agricultural lands in climate and carbon balance. Northern research has led to better information on extreme weather and the impact of climate change in the Arctic. This knowledge provides the basis upon which meaningful targets can be set, market mechanisms defined (e.g. offsets) and adaptation strategies developed.⁸

Federal House in Order: The Government of Canada's plan for reducing greenhouse gas emissions within its own operations is starting to show results. Under the Federal House in Order initiative, the 11 departments and agencies responsible for producing 95% of federal emissions have agreed, by 2010, to collectively reduce their greenhouse gas emissions by 31% from 1990 levels. Between 1990 and 2004, the total greenhouse gas emissions from Government of Canada operations declined by approximately 24%.⁹

Major 2003-2004 Performance Accomplishments

Action Plan 2000 work will help establish a foundation for long-term awareness and social, technological and economic change in the pursuit of positive climate change results. Climate Change Action Fund (CCAF) activities have also contributed to the development of a national strategy to respond to pressing climate change issues. Some 2003-2004 performance highlights include:

• The Pilot Emission Removals, Reductions and Learnings (PERRL) program is widely recognized in the GHG emissions trading community as an innovative and cost-effective way for the federal government to provide an incentive for new greenhouse gas emission reduction projects. In addition, PERRL has provided an opportunity to review greenhouse gas emission reduction projects and learn about quantifying GHG emission reductions. PERRL has facilitated the application of new knowledge to other climate change initiatives.¹⁰
  
  
• Announced in August 2003, the Government officially launched the One-Tonne Challenge on March 26, 2004. Using national awareness initiatives and partnerships with communities, provinces and territories, youth, educators and the private sector, the One-Tonne Challenge raises awareness of how the choices individuals make every day impact on GHG emissions, and provide information, tools and opportunities for Canadians to take action on climate change.
  
  

• Partnered Projects: The Public Education and Outreach component of the Climate Change Action Fund supported 67 new partnered projects in the 2003-2004 fiscal year. This adds to the over 200 projects funded in the first 5 years of the CCAF-PEO. All of the supported projects engaged Canadians in the issue of climate change and greenhouse gas emission reductions, helped build a capacity and expertise among Canadian organizations to deliver climate change education and outreach projects. The projects touched all sectors of Greenhouse gas reduction and some addressed the science, impacts and adaptation issues.¹¹
  
  
• Provincial/Territorial PEO Hubs: Public Education and Outreach Hubs are jointly supported by Environment Canada and individual provinces/territories. The Hubs act as a coordinating body for regional climate change activities, a network for regional PEO practitioners, help to regionalize national PEO messaging and communicate the regional perspective to the federal government. As of March 2004, nine hub pilots were in place and discussions are underway with each of the remaining jurisdictions (i.e. Ontario, Quebec, Northwest Territories and Nunavut) to put PEO Hubs in place.
  
  
• Greenhouse gas monitoring includes standardized systemic reporting, with greenhouse gas emissions facility-level reporting system specifications, with Web-based reporting applications completed and other communication products under development
  
  
• Development of a National Registry to track units (of carbon dioxide equivalent) from the Kyoto Mechanisms, domestic offsets and those allocated to Large Final Emitters.
  
  
• Development of the national Carbon and GHG accounting and verification system with Agriculture and Agri-Food Canada.
  
  

Air Quality

What is the issue?

Annual Average Concentrations of Air Pollutants 1985-2002

Clean air is essential to both human and ecosystem health. Most air pollutants come from the combustion of fossil fuels. Some of the main air pollutants in Canada are sulphur dioxide (SO2), nitrogen oxides (NOx), volatile organic compounds (VOC), airborne particles (also known as particulate matter or PM), and carbon monoxide (CO). VOCs and NOx react in the presence of sunlight, heat, and stagnant air to form ground-level ozone (O3), which lead to the creation of smog.

Annual Average Concentrations of Air Pollutants 1985-2002 SOX (ppb) and PM2.5 (ug/m3) Concentrations

Smog is a noxious mixture of ground-level ozone and fine particulate matter that can often be seen as a haze in the air. It aggravates respiratory ailments and increases the occurrence of cardio-respiratory diseases. The finer particles - those with diameters equal to 2.5 micrometers (PM2.5) or less - pose the greatest threat to human health because they can travel deepest into the lungs. Air pollutants, SO2 and NOx, also cause acid rain, which continues to severely stress ecosystems through the acidification of forests, wetlands, lakes, rivers, and streams.

Air quality is a significant environmental concern for Canadians. It is a local and regional issue that is affected by human activities, weather, and topography. Air quality affects our health. Children, the elderly, and those who suffer from cardiac and respiratory ailments are particularly vulnerable. Cleaner air means a reduction in respiratory disease, hospital admissions and premature deaths - as well as associated benefits for Canada's wildlife habitat, agricultural yields and forests.

Trends in Peak Level of Ground Level Ozone in Canada 1989-2002 Peak Levels of Ground-Level Ozone (ppb*)

Since the early to mid-eighties, air quality has improved for most pollutants. For some pollutants like ozone, however, levels have somewhat levelled off or increased somewhat since the mid-nineties. Air quality is reduced through the reduction of emissions produced primarily through human activities, but, in the case of VOCs, can also come from natural sources. Ground level ozone is very dependent on sunlight and warm temperatures so it is a concern in the spring and summer. It is of particular concern in the Windsor-Quebec City corridor and, to a lesser extent, in the southern Atlantic region and the Lower Fraser Valley in British Columbia.

What are we doing about it?

In 2001, the Government of Canada announced its 10-year Action Plan on Clean Air. The plan provided details on a variety of initiatives addressing:

• Transboundary air pollution;
  
  
• Air emissions from vehicles, engines, and their fuels;
  
  
• Marine and aviation sources;
  
  
• Emissions from industrial sectors;
  
  
• Atmospheric science and monitoring networks;
  
  
• Public outreach; and
  
  
• Supporting actions on climate change
  
  

The Government of Canada has made progress in several areas, including the vehicles and fuels sector, industrial sectors, the National Air Pollutions Surveillance (NAPS) Network, the National Pollutant Release inventory (NPRI), partnerships with other jurisdictions, and the science for PM and ozone.

In Canada, air issues management is a shared responsibility of the government of Canada and the provinces and territories. As part of these shared responsibilities, jurisdictions have endorsed (except Quebec) through the CCME Canada-wide Standards (CWS) for particulate matter (PM) and Ozone. Environment Canada's approach to air issues management has evolved to encompass a number of successful strategies:

• Sectoral strategies: Strategies for reducing emissions are most successful when they take an integrated, long-term view of the problem. The Agenda for Vehicles, Engines and Fuels, considers fuel, engines and vehicles as an integrated program of activity, over a 10-year time horizon. As engine and vehicle design precedes market launch by three to four years, manufacturers must be given appropriate notice to incorporate new standards. The Agenda is also written in the context of the North American market and builds upon U.S. EPA standards and timelines where possible.
  
  
• Partnerships: Environment Canada's initiatives aim to mobilize others (industries, communities, NGOs, provinces and territories) to take action. An important example is the commitment by the provinces and territories to the Canada-wide Standards process. Partners such as NGOs including the Canadian Medical Association and the Canadian Lung Association collaborate in advancing research and understanding of the impact of air quality on human and environmental health.
  
  

• Cooperation and harmonization with the U.S.: Harmonization of Canada's emission standards with those of the U.S. promotes progress in both countries. Success of this approach is evident in acid rain results. Emissions of sulphur dioxide (SO2) (one of the pollutants that causes acid rain) have declined by 45% in Canada and over 35% in the United States, from 1980 levels.
  
  

What have we accomplished?

Canada has achieved success in a number of air quality issue areas, such as transboundary air issues management, and regulatory frameworks for transportation-related air issues management. The Department continues to provide support to provinces and territories, who are ultimately responsible for performance in a number of sectors, to meet international obligations including Canada-wide Standards (CWS) on particulate matter (PM) and ozone. Recent achievements are highlighted below.

• Transboundary Emissions: Progress on the Ozone Annex to the Air Quality Agreement between Canada and the United States was reviewed in 2004 and both countries are on track to meet their commitments. New joint scientific analysis describes the transboundary particulate matter issue, another key component of smog. In August, 2004, the Canadian and United States environment ministers endorsed a recommendation made on the basis of the joint science to consider whether to negotiate an annex to the Air Quality Agreement to address the issue of particulate matter with priority given to the eastern half of the two countries and with due consideration given to the issues identified in the shared airshed in the Georgia Basin-Puget Sound and the Rocky Mountain region.
  
  

• Transportation Sector: EC is continuing to implement the 10-year Federal Agenda on Cleaner Vehicles, Engines and Fuels. Over the past year new emissions regulations have been developed for large off-road diesel engines such as those used in agricultural and construction equipment and for off-road recreational vehicles. In addition, requirements to control sulphur in off-road diesel fuel are being developed.
  
  
• Air Quality Monitoring, Forecasting and Reporting: Through the National Pollutant Release Inventory (NPRI), emissions of air pollutants from industrial facilities are reported and made available to Canadians. Recent changes to the NPRI, in particular the addition of SO2, NOx, VOCs, PM and CO, and the removal of the exemption for upstream oil and gas facilities, have greatly increased the amount of information on air pollutant emissions available. These changes are expected to increase the number of facilities reporting to the NPRI from about 2,100 in 1999 to some 7,000 in 2005. Environment Canada also develops and makes publicly available a comprehensive inventory which includes all sources of air pollutant emissions (industry, transportation, heating, etc.), and forecasts of future emissions. The key elements of Canada's air quality monitoring infrastructure are the National Air Pollution Surveillance (NAPS) network sites. In 2003-04 10 new sites were added to the NAPS network bringing the total to 289 sites across Canada.¹²
  
  
• Public Engagement: The Department has a number of on-going programs and services in place to engage Canadians to take action on clean air and educate them on the links between action on climate change and co-benefits for air quality.
  
  
• Hazardous Air Pollutants: Environment Canada continues to support international actions to control emissions of persistent organic pollutants (POPs). The Stockholm Convention on POPs entered into force on May 17, 2004. Canada was the first country to sign and ratify this agreement, and in 2003/04 the Department conducted consultations with provinces, territories and stakeholders on the development of Canada's national implementation plan for the Convention. The Department also led Canada's participation in discussions to assess the effectiveness and sufficiency of the UNECE POPs Protocol and to help develop a way to assess potential POPs for future control.
  
  
• Environment Canada has also advanced international actions to control emissions of mercury, cadmium and lead. In 2003 the Heavy Metals Protocol to the Convention on Long Range Transboundary Air Pollution entered into force. Environment Canada leads Canada's participation in this forum including preparations for a review of the Protocol During 2003-04 Environment Canada continued to lead Canada's participation in the United Nations Environment Program's Global Mercury Program.
  
  
• The Department also led the development of Canada-wide Standards (CWS) for mercury emissions and products. The Department cooperates with provinces and territories on the Canada-wide Acid Rain Strategy for Post 2000.
  
  

Major 2003-2004 Performance Accomplishments

The Department achieved key accomplishments in 2003-2004 to advance the vehicles, engines and fuels agenda:

• On June 23, 2003, Canada and the United States announced air quality projects under the Border Air Quality Strategy. The two countries launched three major pilot projects that will help pave the way for future reductions in smog and improve health on both sides of the border. The projects are: the Georgia Basin/Puget Sound International Airshed Strategy; a transboundary airshed management project within the Great Lakes Basin, beginning with the south-eastern Michigan/south-western Ontario Region; and a study of NOx and SO2 cap and trade emissions trading. Environment Canada will coordinate Canada's efforts.
  
  
• The new Off-road Small Spark-Ignition Engine Emission Regulations were published in the Canada Gazette, Part II, on November 19, 2003. These regulations are expected to reduce the level of smog-forming emissions from off-road small spark ignition engines by about 44% relative to the existing memoranda of understanding with manufacturers. As well, engines designed to meet these regulations are also expected to be more fuel efficient.
  
  

In 2003-2004, the Department's implementation work continued for key actions on Canada-wide Standards for Particulate Matter and Ozone. In particular Environment Canada is continuing it's work with the provinces and territories to develop comprehensive Multi-pollutant Emission Reduction Strategies (MERS) for a number of major industrial sectors (electric power generation, iron and steel, base metals smelting, pulp and paper, lumber and allied wood products, and concrete batch mix and asphalt mix plants) in Canada. ¹³

Partnership, public education and outreach are a key element of the Department's Clean Air Agenda. For example, Clean Air Day Canada,¹⁴ celebrated every year on the Wednesday of Environment Week, provides a focal point for local and national activities promoting clean air and climate change awareness and actions. The Commuter Challenge¹⁵ continues to be an important Clean Air Day and Environment Week event which encourages communities and municipalities, the private sector, NGOs and all levels of government to engage in a friendly competition to reduce air pollution levels and greenhouse gas emission through sustainable transportation choices like public transit, walking, cycling, car-pooling or tele-working. During Clean Air Day 2003, more than 48,000 Canadians from more that 43 majors communities participated in Commuter Challenges across Canada.

A key component in motivating the public to take action is increasing their knowledge of local smog and air quality conditions. Local summertime air quality forecasts in British Columbia, Ontario, Quebec, and Atlantic Canada, provide information to more than 60% of the Canadian population. Multi-stakeholder workshops have produced both short- and long-term recommendations for moving forward with the development of a multi-pollutant health-risk-based Air Quality Index, or AQI. The INFO-SMOG program now covers all of southern Quebec. In summer, there are daily forecasts of ozone and advisories, if necessary. The daily forecasts are still based on ground-level ozone, but fine particle forecasts are being evaluated and could be implemented next summer if the results are satisfactory. The winter INFO-SMOG program is still only for the Greater Montreal Area and is based on fine particles.

• Environmental organizations are learning more about ground-level ozone and smog through monitoring and outreach in the Annapolis River area, Cape Breton, Eastern Charlotte Waterways, and Saint John. All four of the mentioned sites are part of the community-based Atlantic Coastal Action Program (ACAP) which traditionally involve some level of community involvement and outreach. ACAP helps communities to define common objectives for environmentally appropriate use of their resources and to develop plans and strategies that will help achieve them.¹⁶
  
  
• An air quality module for the SkyWatchers program for the elementary/middle school level was developed by Environment Canada's Atlantic Region and distributed across the country. SkyWatchers teaches elementary school children about weather through daily observations and teaching materials.
  
  
• The Smog Summit in Toronto completed its fourth successful meeting on June 20, 2003, with a continued focus on joint action by federal, provincial, and municipal levels of government to improve air quality in the Greater Toronto Area. The conclusion of the 2003 event included the signing of the Toronto 2003 Inter-Government Declaration on Clean Air. The Declaration includes commitments in the areas of industry, transportation and energy for the coming year that add to the list of past federal commitments made at previous Smog Summits. These commitments are been met through regulations and voluntary approaches.¹⁷
  
  

Initiatives in 2003-2004 to improve monitoring and reporting include updates to the National Air Pollution Surveillance (NAPS) network. The NAPS Network produces data to evaluate the progress of air pollution controls and to help direct future actions. Over the years, the Network has produced one of the largest and most geographically diverse databases of pollutants in Canada. Over a four-year period the Government of Canada is investing $22 million in NAPS. The result will be improvements to measurement protocols, techniques, equipment and better support to various national programs.¹⁸ In 2003-2004, for the first time, the National Pollutant Release Inventory (NPRI) published emissions from industrial facilities of the air pollutants SO2, NOX, VOCS, PM AND CO. This information, for 2002 emissions, greatly expands the information reported through the NPRI and made available to Canadians.¹⁹

Conducting Research and Communicating Results

Within the context of the broader agenda, the Department has been developing new knowledge related to key areas of concern for air quality. Specific research and development initiatives include studies on Criteria Air Contaminants, PM and Ozone, and characterization of emissions from a wide variety of sources, both stationary and mobile including:

• Improving methodology for identification, understanding and measurement of Volatile Organic Compounds (VOCs);
  
  
• Identification, understanding and measurement of air-borne particulate matter;
  
  
• Testing of new vehicle and engine combinations;
  
  
• Testing of new fuels (i.e. biofuels) on engine and vehicle environmental performance;
  
  
• Testing impact of after engine devices on emissions;
  
  
• Evaluating technology performance standards; and
  
  
• Development of devices to assess vehicle environmental performance
  
  

5.1.2 Key Result: Toxic Substances
Understanding and prevention or reduction of the environmental and human health impacts posed by toxic substances and other substances of concern

What is the issue?

The Canadian Environmental Protection Act 1999 (CEPA 1999) defines a substance as toxic if it enters the environment in a quantity that has, or may have, a harmful effect on human health, the environment or the environment on which life depends. Toxic substances come from various industrial, agricultural, and domestic sources and, once released into the environment, they can be dispersed to remote regions in air and water currents.

Some toxic substances persist in the environment and, while present even if released in only small amounts, they can build up in the environment and affect many species and ecosystems. Other substances build up in the tissues of living organisms that many Canadians consume. Aboriginal peoples, Inuit and others who consume these species on a regular basis are particularly vulnerable. While toxic substances can affect all Canadians, the greatest health risk is to susceptible populations such as young children and the elderly

Addressing the problem of toxic substances is complex. Toxic substances may be released from point sources, such as an industrial plant, or non-point sources, such as vehicles, and some can originate from beyond our borders. Sometimes, a substance is a concern on its own (e.g. mercury); other times it is accumulation of substances that constitutes a cause for concern.

The goal of the Canadian Environmental Protection Act 1999 is to contribute to sustainable development through pollution prevention and to protect the environment, human life and health from the risks associated with toxic substances.

What are we doing about it?

CEPA 1999 provides the overall framework for preventing and managing the risks posed by toxic substances. The Act recognizes the contribution of the management and control of toxic substances and hazardous waste to reducing threats to Canada's ecosystems and biological diversity. Environment Canada has primary responsibility for CEPA 1999 implementation and jointly administers the research, categorization, assessment and management of toxic substances with Health Canada.

CEPA 1999 requires the categorization (identification of substances that are persistent, bio-accumulative and inherently toxic, or those with the greatest potential for human exposure) of the 23,000 substances on the Domestic Substances List (DSL) by 2006. In addition, the Department assesses responds to the approximately 800 new substance notifications received per year prior to their import or manufacture in Canada and manages the risks of those suspected of being toxic.

For more information on CEPA 1999, visit: http://www.ec.gc.ca/CEPARegistry

Canada's Toxic Substances Management Policy takes a preventative and precautionary approach to dealing with all substances. The Policy sets out two overall objectives:

• Virtual elimination from the environment of toxic substances that result predominantly from human activity and that are persistent and bio-accumulative (Track I substances); and
  
  
• Management of other toxic substances and substances of concern, throughout their entire lifecycle, to prevent or minimize their release to the environment (Track II substances).
  
  

CEPA 1999 provides the legislative framework to meet the objectives of the Toxic Substances Management Policy. The Act encourages innovation in environmental protection measures, providing new levers for environmental management and new opportunities and instruments for partnership with industry to put in place pollution prevention policies and programs. Specifically, the Act requires Environment Canada to set assessment priorities undertake a risk assessment - categorize 23,000 substances on the DSL, and conduct a screening assessment for those that meet the criteria. There are three possible outcomes to a screening assessment: (1) no further action; (2) add to the list of toxic substances and added to in Schedule 1 of CEPA 1999 (List of Toxic Substances); or (3) added to the Priority Substances List for further assessment.

• Risk management - to develop and implement a risk management strategy for all substances deemed toxic. Risk Management strategies detail how the risks to human health and the environment will be addressed using a range of tools (see text box) that may be used to control any aspect of a substances life-cycle.
  
  

• Waste management - to ensure that toxic chemicals and hazardous wastes are managed and disposed of safely, address issues associated with ocean disposal and the protection of coastal, estuarine and marine environments from the negative impacts of land-based activities and sources of pollution, and environmental emergency planning;
  
  
• Compliance and enforcement - to help regulated communities conform to environmental laws and regulations. Compliance includes compliance promotion, monitoring, verification and enforcement activities. Environment Canada promotes compliance through information activities and products such as fact sheets, manuals, guidelines, workshops, and notices in the Canada Gazette. Enforcement activities include inspections, and in cases of suspected or alleged non-compliance, investigations. Confirmed violations are addressed through the use of one or more enforcement tools such as warnings, directions, tickets, environmental protection compliance orders, environmental protection alternative measures, ministerial orders and prosecutions.
  
  
• Monitoring and reporting - to collect information through National Pollutant Release Inventory (NPRI), CEPA Registry, industry Environmental Effects Monitoring and other avenues and make data available to Canadians.
  
  

In addition to environmental considerations, socio-economic considerations are integrated in management tools and decision-making to promote sustainable development and the maximization of benefits for Canadians.

What have we accomplished?

Environment Canada protects human health and the environments by influencing behaviour towards more environmentally sound practices. The Department develops and applies risk management tools and approaches, which increasingly emphasize pollution prevention and voluntary initiatives based on partnerships and innovation. Since CEPA 1999 was proclaimed in 2000, the Department has focused on:

• Completing our commitments under CEPA 1988;
  
  
• Developing strategies to meet the timelines associated with CEPA 1999; and
  
  
• Completing pilot studies to streamline our procedures to ensure that all CEPA requirements (e.g. categorization of DSL substances by 2006) will be met.
  
  

Cumulative progress against our toxic substances management objectives and mandate is summarized below.

Risk Assessment: To address Canada's legacy of non-assessed chemicals and understand the risks of toxic substances and substances of concern, Environment Canada is on-track to meet its legislated requirement to have all 23,000 (DSL) existing substances categorized by 2006. In 2003-2004, a pilot project on the development of tools and strategies for the assessment phase of existing substances was successfully implemented. In addition to work carried-out on existing substances on the DSL, we continue to protect the Canadian public and environment by assessing approximately 800 new substances annually before they are introduced to the Canadian market and managing the risks of those suspected of being toxic.

Risk Management, Pollution Prevention and Waste Management: As with the Department's approach to managing air issues, the Toxic Management Process takes a multi-pollutant, sectoral approach to addressing pollution control. Environment Canada continues to make use of the range of flexible risk management tools available. These tools include Pollution Prevention (P2) Plans, Environmental Emergency (E2) Plans and, voluntary agreements such as Environmental Performance Agreements (EPAs). EPAs contain clear environmental objectives, results measurement and verification strategies, public reporting requirements, and consequences for non-compliance. These new tools may be less expensive to implement, provide greater flexibility, and complement the current regulatory framework. Currently, there are two EPAs and one MOU in place.

In 2003-2004, the Department implemented a structure designed to reinforce the links that exist between the complementary segments of the compliance continuum: compliance promotion, compliance monitoring, compliance verification and compliance enforcement. This Compliance Assurance Team, which has a research, evaluation and functional guidance role, will help the Department make better priority setting, targeting and resource allocation decisions regarding its compliance promotion and enforcement activities.

Monitoring and Reporting: As a result of recent changes, the National Pollutant Release Inventory (NPRI) includes requirements to report criteria air contaminants which include sulphur dioxide, carbon monoxide, oxides of nitrogen, volatile organic compounds, particulate matter of 2.5 microns or less (PM2.5), particulate matter of 10 microns of less (PM10) and particulate matter of 100 microns or less (total particulate matter). This will provide publicly available comprehensive inventories of air pollutants updated every year rather than every 5 years as had been the case.

Prior to 2002, there were 266 contaminants reported to the NPRI. Starting in 2002, facilities are expected to report on an additional seven criteria air contaminants (CAC's). At the same time, the number of industrial facilities reporting pollutant emissions is expected to rise from 2,100 in 1999 to more than 7,000 by 2005.

New Substance Notification (NSN) Regulations to improve the overall program (e.g. transparency, service delivery, international cooperation) are scheduled for implementation by 2005. These streamlined regulations will contribute to the Government's effort to develop Smart Regulations, which are more efficient, transparent and reflect a consultative process.

Major 2003-2004 Performance Accomplishments
Risk Assessment

New Substances

In 2003-2004 Environment Canada and Health Canada received 768 new substance notifications, issued 10 Significant New Activity Notices (SNAcs), and 6 conditions. During that year, 85 submissions were received by Health Canada for new substances in products regulated under the Food and Drugs Act. Of those, 78 submissions were accepted, and 7 were withdrawn or rejected.

Having invested and made a significant ongoing public commitment, EC and HC are continuing to implement the recommendations from the consultations on the New Substances Notification Regulations (NSNR) and New Substances Program. Increased program transparency, better service delivery and enhanced international cooperation are the goals of this effort. In addition, the NSNR are being streamlined, and are expected to be promulgated in 2005. This is a direct contribution to the Smart Regulations Initiative.

Environment Canada has published a guidance document on Testing the pathogenicity and toxicity of new microbial substances to aquatic and terrestrial organisms in March 2004. This document recommends standardized tests that will help notifies of microorganisms that are "new" to Canada (i.e. substances that are not on the Domestic Substances list) to generate notification test-data under the NSNR. The guidelines recommend that tests conducted in support of notification be in keeping with the Canadian Council of Animal Care (CCAC) guidelines on the care and use of experimental animals.

At the international level, work continues under the OECD's New Chemicals Task Force, The Four Corners Arrangement and the Canada-Australia Arrangement. International regulatory and scientific cooperation will lead to more effective and efficient decision-making, validation and strengthening of risk assessment and management processes and capacity, cost savings and improved efficiencies for both government and industry. In 2003-2004, four notifications were processed under the Four Corners Arrangement, and 21 under the Canada-Australia Arrangement. ²⁰

Existing Substances

Categorization
In 2003-2004 the Department continued to move forward on its commitment to categorize the 23,000 substances identified on Canada's Domestic Substances List (DSL) substances. Based on criteria of Persistence (P) or Bioaccumulation (B) and inherent Toxicity (iT), 10,648 organic substances and 984 inorganic substances were prioritized ('categorized') and preliminary decisions were released to the public and industry. As part of this work, a document entitled "Guidance Manual for the Categorization of Organic and Inorganic Substances on the Canada's Domestic Substances List" was released for public comment. This document outlines the criteria mentioned above.²¹

Assessment
In preparation for the final categorization decisions for substances on the DSL, Environment Canada and Health Canada are carrying out screening assessments through a pilot project, during which screening assessment approaches and processes are being developed. In 2003-2004, the Department continued assessments of 25 substances. These include substances that represent categories or classes of related chemicals, as well as a variety of persistent, bioaccumulative, inherently toxic substances, or substances that pose great potential for human exposure.

Environment Canada and Health Canada released one follow-up assessment report for public comment, and published four final decisions for substances from the first Priority Substances List for which there was originally insufficient information to conclude whether they were considered toxic under the CEPA, 1988. According to these follow-up reports, Used Crankcase Oils were proposed to be harmful to the environment or its biodiversity whereas four substances (Styrene, Tetrachloroethane, Di-n-octyl phthalate, Non-pesticidal organotin compounds) were not found to constitute a danger to the environment and/or human health.

Work was also completed for substances on the second Priority Substances List. Six substances were added to the List of Toxic Substances (Schedule 1); and two substances were proposed to be added to the List of Toxic Substances (Schedule 1) and the final decision also published for 2-Ethoxyethanol one substance which was found not be toxic. ²²

Risk Management

Environmental Protection Act (CEPA) 1999 sets specific timelines for taking preventive or control action to manage the risks to the environment and human health posed by toxic substances. For example, EC published five P2 planning notices in relation to substances declared toxic under CEPA 1999. P2 Plans allow the Minister to establish Risk Management Objectives and timelines, recognizes that industry is best situated to take action and uses clear, results-based criteria to assess success. Two of the Notices were finalized and require the preparation and implementation of P2 plans, representing the first use of this authority under CEPA 1999. The other three Notices were published for consultation and will be finalized in fiscal year 2004-2005. P2 planning notices were published in the Canada Gazette Part 1 for the following substances:

• Acrylonitrile - The Minister of the Environment used his authority to require the preparation and implementation of P2 plans for the first time. The notice requires Canadian manufactures of synthetic rubber to prepare a P2 plan to reduce releases of acrylonitrile, a toxic substance under CEPA 1999, by the application of best available techniques economically achievable.(http://www.ec.gc.ca/NOPP/DIVISION/EN/detail.cfm?par_docID=221).
  
  

• Dichloromethane - A notice requiring the preparation and implementation of P2 plans to reduce the release of dichloromethane was published. The notice targeted five sectors: aircraft paint stripping, flexible polyurethane foam blowing, pharmaceutical and chemical intermediates, adhesive formulations, and industrial cleaning. (http://www.ec.gc.ca/NOPP/DIVISION/EN/detail.cfm?par_docID=243).
  
  
• Municipal Wastewater Effluent - A notice was published outlining the proposed requirements to prepare and implement a P2 plan for Ammonia Dissolved in Water, Inorganic Chloramines and Chlorinated Wastewater Effluents. The notice proposes to target wastewater collection and treatment systems.
  
  
• TME-NPEs - A notice was published that outlines proposed requirements to prepare and implement a P2 plan for Nonylphenol (NP) and Its Ethoxylates (NPEs) Used in the Wet Processing Textile Industry and Effluents from Textile Mills That Use Wet Processing (TMEs). (http://www.ec.gc.ca/NOPP/P2P/en/P2cons.cfm).
  
  
• NPEs in products - A notice was published outlining the proposed requirements to prepare and implement a P2 plan for Nonylphenol (NP) and Its Ethoxylates (NPEs) Contained in Products. The notice proposes to target manufacturers and importers of soap, cleaning products and processing aids used in textile wet processing and pulp and paper processing aids. (http://www.ec.gc.ca/NOPP/P2P/en/P2cons.cfm).
  
  

Of particular note, on June 7, 2003 a notice outlining the proposed requirements to prepare and implement a P2 plan for Ammonia Dissolved in Water, Inorganic Chloramines and Chlorinated Wastewater Effluents was published. The notice proposes to target wastewater collection and treatment systems.

Development and implementation of voluntary programs aimed at reducing both the use and the release of toxic substances from industrial sectors, in 2003-2004

Since the approval of the Policy Framework for Environmental Performance Agreements (EPA) in 2001, Environment Canada has entered into five formal, voluntary EPA's with various industries to reduce the use and release of toxic substances, substances of concern, as well as to build capacity and to gather information. Each agreement was guided by the framework's 8 design criteria to ensure credibility (commitment and targets), transparency (public consultation and reporting), and trust (continual improvement and verification of results). Toxic substances being risk managed through the various EPAs include 1,2-Dichloroethane, Refractory Ceramic Fibre and Volatile Organic Compounds (VOCs).

EC also signed one Environmental Performance Agreement in 2003-2004 with the Specialty Graphics and Imaging Association (SGIA). This EPA covers data gathering, reduction in use/release of priority substances (VOCs), EMS implementation and continual improvement. ²³

While Environment Canada continues to be committed to the use of flexible risk management measures, the Department continues to make use of effective, more traditional regulations when appropriate. In 2003-2004, four final regulations were published in the Canada Gazette (CG) Part II and two were proposed in the Canada Gazette Part I. Please refer to the regulatory initiatives section (Appendix A.2) for more information.

Marine Environment Protection

Under the National Programme of Action (NPA) for the Protection of the Marine Environment, Environment Canada continued to promote pollution prevention and habitat protection in the coastal and marine environments. Some key activities included an initial re-assessment of the priority ranking for nutrients, the development of a database of pollution prevention and habitat conservation guidelines and the production of an NPA snapshot analysis of Canada's marine environment. ²⁴

Environment Canada continued its work to meet CEPA 1999 and international obligations to protect coastal and marine environments from sea-based activities and sources of pollution. Specifically, EC undertook activities and negotiations to prevent ocean disposal of harmful substances through a permitting process and a disposal site monitoring system. These activities were reported to parliament and to the International Maritime Organization.²⁵ EC completed consultations on suitable boundaries of the sea with respect to Ocean disposal and began work towards regulation. EC began work on an access system to improve access to ocean disposal permit decisions electronically.

In collaboration with DFO, EC also met responsibilities for shellfish area classification under the Canadian Shellfish Sanitation Program (CSSP) and continued work to address emerging marine issues. In 2003-2004 EC made recommendations on the water quality of 21 new shellfish growing areas and resurveyed 279 areas. Approximately 15,000 square kilometres are classified as approved by DFO.

Hazardous Waste Management

The proposed Export and Import of Hazardous Waste and Hazardous Recyclable Material Regulations were published in Canada Gazette Part I on March 20, 2004. The purpose of the Regulations is to protect Canada's environment and the health of Canadians from the risks posed by the transboundary movement of hazardous wastes and hazardous recyclable materials and to fulfill Canada's international obligations.

The proposed Regulations will revoke and replace the Export and Import of Hazardous Wastes Regulations (EIHWR) adopted in 1992 under the authority of the former Canadian Environmental Protection Act. It is anticipated that the proposed Regulation will be published in Canada Gazette Part II in 2005.

Conducting Research and Communicating Results

Within the context of the broader agenda, the Department has been developing new knowledge related to key areas of concern for toxics. Specific initiatives include studies on wastewater, biosolids, contaminated sites, soil toxicology, environmental emergencies, and green chemistry technologies including:

• Development of analytical methods and analysis of pharmaceutical chemicals in biosolids;
  
  
• Development of analytical methods and analysis of volatiles and semi-volatiles in water and soils;
  
  
• Hydrogen gas reduction and recovery from the anaerobic digestion of organic wastes;
  
  
• Determination of removal/destruction mechanisms for the abatement of persistent organic compounds by conventional wastewater treatment processes;
  
  
• Rapid DNA tests for pathogen detection in wastewater;
  
  
• Removal of trace arsenic from water;
  
  
• Remediation of petroleum-contaminated soils;
  
  
• Airborne remote sensing of oil spills;
  
  
• Development of biological testing protocols focusing on soils;
  
  
• Development and optimization of low-energy consuming industrial processes for reduced greenhouse gases emission; and
  
  
• Development and optimization of solvent-less industrial processes for reduced toxics release.