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Environmental Performance Agreement

ENVIRONMENTAL PERFORMANCE AGREEMENT

BETWEEN

HER MAJESTY THE QUEEN IN RIGHT OF CANADA as represented by the Minister of the Environment

AND

HER MAJESTY THE QUEEN IN RIGHT OF CANADA as represented by the Minister of Industry

AND

THE AUTOMOTIVE PARTS MANUFACTURERS' ASSOCIATION a non-profit organization

AND THE PARTICIPATING MEMBER COMPANIES

1.0 MOU History

The Automotive Parts Manufacturers' Association (APMA) is Canada's national association representing Original Equipment Manufacturers (OEM) producers of parts, equipment, tools, supplies and services for the worldwide automotive industry. The Association creates and executes global marketing initiatives in order to develop international trade and business opportunities for APMA's members. APMA members collectively account for over 90% of the $35 billion automotive parts industry production in Canada.

In December of 1993, a government / industry Memorandum of Understanding (MOU) was negotiated for the automotive parts manufacturing industry to seek a voluntary, verifiable reduction and/or elimination of the use, generation, or release of toxic substances by this sector. The original MOU expired in December 1995, but was subsequently extended until April 30, 1997.

The MOU task force has released three progress reports with 45 case studies documenting pollution prevention achievements by participating companies. These reports may be found at: www.on.ec.gc.ca/pollution.

2.0 Purpose of this Environmental Performance Agreement

The purpose of this Environmental Performance Agreement (EPA) is to achieve verifiable reductions in the use, generation and release of specified priority substances in the automotive parts sector. This initiative will focus on, but not be limited to substances listed in Appendix I, of this agreement.

3.0 Parties to the Agreement

This agreement will be signed by the President of APMA, on behalf of the APMA and its members, her Majesty the Queen in Right of Canada as represented by the Minister of the Environment and the Minister of Industry.

Participating APMA member companies will sign a Participation Commitment Form (Appendix III). This form will outline the company's objectives, targets and timelines for pollution prevention activities and the incentives that they will receive for participating in this agreement. Additional APMA member companies may sign on to this agreement without the need to amend the agreement, by signing a commitment form.

4.0 Environmental Policy

APMA members participating in this agreement are committed to implementing ISO14001 as an environmental management system, and pollution prevention to achieve the environmental objectives and targets of Canada.

Participating automotive parts companies will strive to reduce or eliminate the generation and release of pollutants at the source. Participating companies shall commit to being in full compliance with all applicable federal, provincial and municipal legislation, and regulations related to the environment. Companies will also take into consideration, the requirements of customers and other interested stakeholders.

Participants will monitor and report on progress towards their objectives and targets on a yearly basis, to continually improve on environmental performance. All pollution prevention case studies and information will be available for third party verification, as required.

5.0 Legal Status

This Agreement does not and is not intended to establish legally binding obligations among the Parties, and is to be construed as a reflection of the dedication of the Parties to achieve verifiable reductions in the use, generation and release of specified priority substances in the automotive parts sector. It does not constitute admission of liability by any of the Parties.

Nothing in this agreement precludes the federal government from developing and implementing regulatory or other measures it deems appropriate. Nothing in this agreement precludes a participating company from implementing other environmental initiatives.

Signatories to the agreement may terminate their participation by notifying the task force in writing, indicating the reasons why they are no longer able to participate.

6.0 Participation Requirements

The following requirements must be met by APMA member companies for participation in this EPA:

Submission of facility's objectives and reduction targets
Implementation of an Environmental Management System
Signatory to Company Participation Commitment Form (Appendix III)
Attendance at Task Force Committee meetings
Annual submission of Pollution Prevention case studies for publication

7.0 Objectives and Targets

Objectives and targets will be developed by the participating APMA member companies to this agreement, with input coming from the Task Force Committee. Objectives and targets will take into consideration participants, legal and other requirements, their financial operational and business requirements, their potential environmental impact, technological options and the views of interested parties. Objectives and targets will be consistent with the environmental policy of this agreement, including its commitment to POLLUTION PREVENTION.

In reviewing aggregate targets, it is understood that voluntary, non-regulatory site specific reduction targets and schedules are determined by individual member companies.

8.0 Environmental Management Pollution Prevention Programme(s)

All participating APMA member companies and facilities shall develop and maintain a documented environmental management pollution prevention programme(s) for achieving its objectives and targets. The programme(s) shall include a designation of responsibility for achieving objectives and targets, and reporting on results. The programme(s) shall also include the means and time-frame by which objectives and targets are to be achieved.

9.0 Structure and Responsibility

9.1 APMA P2 Task Force Committee

This agreement will be managed by a Task Force comprising of a maximum of two representatives from each of the following organizations:

Automotive Parts Manufacturers' Association;
Environment Canada;
Industry Canada;
Representative(s) from each of the signatory companies;

The task force will meet at a frequency of not less than five times a year.

Task force decisions will be achieved by consensus of all task force members.

The role of the task force is to manage the implementation of this agreement, to review progress, to make recommendations for improvements, to promote participation by auto parts companies, and to communicate with interested parties on progress made.

For each year of this Agreement, the Task Force will publish a yearly progress report and aid the Project Co-ordinator in efforts to obtain new APMA members/facilities to become a signatory to this agreement.

10.0 Training

Training needs will be established and reviewed by the Task Force Committee on an annual bases. Training in courses related to this agreement will be a requirement for participation. Training sessions will be held in conjunction with Task Force Committee meetings.

11.0 Communication

Communication of Pollution Prevention case studies shall be done via the Internet. All case studies will be posted on Environment Canada's "Greenlane" web-site, Industry Canada's "Strategis" website and APMA web-site. Hardcopy versions of the case studies will be supplied to the Canadian Centre for Pollution Prevention. Copies of this agreement will be sent to various members of the ENGO community for their review and comment. Environment Canada will ensure that documents are translated prior to posting on the Environment Canada Greenlane for a 30-day consultation period.

12.0 Environmental Management System/Pollution Prevention Documentation

Pollution Prevention case-studies will be published within the annual progress report and will be made available to the general public for review.

13.0 Document Control

Control of all documents related to this agreement will be provided by the APMA Task Force. Participating member companies of the APMA have the right to not release information that would put them at a competitive disadvantage.

14.0 Agreement Control

Project Control resides with the Task Force Committee. The Task Force Committee must agree to any changes made to this agreement. Members not present at meetings, will be notified of pending changes. The task force will review progress of actions under the EPA and review the need for new Annexes to address emerging issues. With the consent of task force members, the signatories may, through mutual consent, amend the EPA policy to permit additional representatives to become participants.

15.0 Monitoring and Measurement

The participating companies under their internal EMS will conduct monitoring and measurement (MM) of their objectives and targets as they relate to this agreement. Updates toward documented objectives and targets shall be submitted to the Task Force on a six-month basis. Facilities reporting to the ARET 2 (Accelerated Reduction and Elimination of Toxics) program can do so through the National Pollutant Release Inventory. To satisfy this requirement, total annual releases of target substances are required.

16.0 Corrective Action Report

All participants that do not meet published objectives, targets, or incentives must submit Corrective Action Reports (CARs) to the APMA Director of Environment. CARs will identify the root cause of the problem and make recommendations to avoid similar problems in the future. CARs, along with case studies, will demonstrate continuous improvement, towards objectives and targets. CARs fall under the domain of the APMA and will not be reviewed by the Task Force but will be subject to third party verification requirements. A summary of the number of CARs completed each year will be provided in the annual progress report.

17.0 Records

All records created as a result of this agreement shall be kept in such a manner so they may be legible, identifiable, and traceable to their creator. Records must be stored in such a manner as to avoid damage, deterioration or loss. All records related to this agreement must be retained for the life of the agreement and in accordance with regulatory requirements (i.e. 3 years according to CEPA record retention).

18.0 Environmental Management System/Pollution Prevention Audits

Case study information submitted by each participant shall be independently verified by a third party where practicable using procedures and protocols that build upon their established EMS audits.

19.0 Time of Agreement

This EPA will terminate December 31, 2007 unless it is renewed through mutual written agreement of the signatories.

Any signatory to this EPA may terminate their participation by giving written notice to the other signatories / participating task force members at least 60 days in advance.

20.0 Public Consultation

The proposed EPA and appendices or future amendments to this agreement will be posted on Environment Canada's Green Lane, Industry Canada's Strategis and the Automotive Parts Manufacturer's Association web site for a period of 30 days. Written comments on this agreement will be considered by the parties before finalizing the EPA.

Addresses and Notices:

Unless otherwise expressly provided for in this Agreement, any notice required or authorised to be given by either Party to the other shall be served by letter sent by facsimile or prepaid registered mail to either of the appropriate following addresses:

(a) If to the Minister of the Environment:

Brad Cumming, Head Pollution Prevention and Mining
Environmental Protection Branch - Federal Programs Division
4905 Dufferin St. 2nd Floor
Downsview, ON M3H 5T4
Tel.: (416)739-5883
Fax: (416)739-4342

(b) If to the Minister of Industry:

Amrik Rahkra, Senior Sector Officer
Industry Canada
Aerospace and Automotive Branch
235 Queen St.
Ottawa, ON K1A 0H5
Tel.: (613) 941-4973
Fax: (613) 952-8088

(c) If to the Automotive Parts Manufacturers' Association and the participating member companies:

Patrick Curran, Director of Environment
Automotive Parts Manufacturers' Association
195 The West Mall, Suite 516
Toronto, Ontario M9C 5K1
Tel.: (416) 620-4220 x231
Fax: (416) 620-9730

or any other office, address or facsimile number as may be stipulated in writing by the Parties in the future.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective authorized representatives.

Gerald Fedchun
President, Automotive Parts Manufacturers' Association
Date:
Place:

David Anderson
Minister of the Environment
Date:
Place:

Allan Rock
Minister of Industry
Date:
Place:

APPENDIX I

List of Substances for Targeted Reductions

Substances for Targeted Reductions
Halogenated Hydrocarbons	Non-Halogenated Hydrocarbons	Metals	CEPA toxics or PSL 2 toxics (APMA) ⁽³⁾	Greenhouse Gases or Smog Precursors
Dichlorobenzene Methylene chloride⁽¹⁾ Polychlorinated biphenyls (PCBs) Tetrachloroethylene⁽¹⁾ Trichloroethylene⁽¹⁾	Benzene⁽¹⁾ Ethylbenzene Phenol Phthalates: butylbenzyl di-n-butyl diethyl hexyl dimethyl Polycyclic aromatic Hydrocarbons (PAHs) ⁽¹⁾ naphthalene Toluene	Antimony Arsenic Beryllium Cadmium Hex-Chromium⁽¹⁾ Copper Lead ⁽¹⁾ Mercury ⁽¹⁾ Nickel Selenium Silver Zinc	1,1,1-trichloroethane 1,2-dichloroethane Asbestos Bromochlorodifluro-methane Bromotrifluoromethane Chlorofluorocarbons Fluorides (inorganic) Refractory Ceramic fibres Chlorinated paraffins 2-butoxy ethanol Respirable particulate matter 10 microns (PM₁₀)	Carbon Dioxide Methane Nitrous Oxide Hydrofluorocarbons Perfluorocarbons Sulphur Hexafluoride VOCs ⁽²⁾ NOx SOx

Note: Targeted reductions are not limited to the substances outlined on this page.

(1): CEPA toxic substance
(2): VOCs to be addressed by APMA members for aggregate 20% reduction: Toluene, Xylenes, Methyl Ethyl Ketone, Methyl Isobutyl Ketone, Ethyl Benzene, Isopropyl alcohol, 1,2,4, Trimethyl benzene, Styrene, Methanol, Acetone.
(3): CEPA Schedule 1 substance list as well as PSL2 substance list has been reviewed and the list above includes only those found within auto parts manufacturing processes. Substances that are subsequently added to CEPA Schedule 1 or PSL 2 will also be considered and this list updated as required.

APPENDIX II

The following table outlines how each of the participants will help to meet the criteria of the Environment Canada Environmental Performance Agreement Policy:

How participants will meet criteria
	APMA	Participating APMA Member Companies	Environment Canada	Industry Canada	ENGOs
1. Clear objectives and measurable results	· APMA commits to achieve in Ontario an aggregate 20% reduction of VOCs emissions by 2007 from a 2000 baseline year on a per unit produced basis from it’s participating member companies. · APMA commits to achieve an aggregate 3% reduction of CO₂ emissions by 2007 from a 2000 baseline year on a per unit output basis from it’s participating member companies. · Companies will screen inventories for substances found in Appendix I, and following a prioritization process,companies will develop and implement P2 plans to address these substances identified, using best available technology ·Targets and timelines will be developed by APMA participating member companies no later then March 31, 2002 and inserted to this agreement in the form of an addendum.	· Achieve verifiable reductions in the use, generation, and release of specified priority substances as related to published targets and timelines. · Targets and timelines will be developed by APMA participating member companies no later then March 31, 2002 and inserted to this agreement in the form of an addendum. · Screen inventories for substances found in Appendix I, and, where possible, companies will develop and implement P2 plans to address these substances, using best available technology that is economically achievable. Note: All reductions will be reported on a company and substance specific basis on a yearly basis.	· EC will ensure that APMA and member companies understand and meet commitments agreed upon under this EPA.	· IC will promote the idea that APMA companies reporting VOC emissions should agree to the following principles and actions: applicable companies will develop and implement P2 plans to address these substances, using best available technology.	· Will provide input and support to the criteria listed below.
2. Defined roles and responsibilities	· Will ensure a minimum of 5 task force committee meetings per year. · Support participating member companies with the implementation of P2 projects and environmental management systems, to aid them in achieving targets and timelines outlined in the agreement. · The APMA will manage co-op student(s) during the duration of this project.	· Develop and implement P2 plans at the facility working level that are appropriate to the goals of Environment Canada	· EC will provide financial resources to support APMA P2 Coordinator. · EC will provide funding for NGO participation. · EC will provide legislative, and policy updates when relevant, to help companies focus their pollution prevention actions.	· IC will provide funding to support APMA P2 Coordinator. · IC will provide funding for the development of 3^rd party verification protocol. · IC will provide updates on IC activities when relevant, to help companies focus their pollution prevention actions, and enhance their economic competitiveness.	· Will provide comments with respect to the practicability, consistency, merit and content of the EPA.
3. Provision for consultation	· The APMA will develop links with environmental community based organizations (ENGOs). · The APMA will commit to promoting and recruiting non-participating members to take part in this project.	· Provide comments and input to the Task Force on actions that could lead to improvements in the project and increased participation.	· Ensure that a representative from the NGO community provides input into the EPA with respect to its practicability and consistency with NDG criteria. · Ensure NGOs have access to case studies and verification reports of all reported P2 results.	· Ensure that a representative from the NGO community provides input into the EPA with respect to its practicability and consistency with NDG criteria. · Ensure NGOs have access to case studies and verification reports of all reported P2 results.	· Provide comments and input to the Task Force on actions that could lead to improvements in the project and increased participation.
4. Public reporting	· The APMA will develop and maintain a web site to provide a forum for "real-time" reporting and communication. · The APMA will submit a progress report regarding this agreement prior to March 31, 2002. · Publish case studies in the APMA Automotive Annual magazine.	· Signing APMA member companies will submit annual progress reports on the Project Internet web site prior to March 31, 2002, March 31, 2003, March 31, 2004, March 31, 2005, March 31, 2006 and March 31, 2007 · As part of the reporting process, reports will include results of third party verification	· Review and publish progress reports submitted on EC Greenlane website, on an annual basis beginning March 31, 2002. · EC will ensure a consistent reporting structure and uniform case studies. · Ensure that case studies will also be published in the APMA Automotive Annual magazine.	· Publish progress reports will be submitted on the IC Strategis, on an annual basis beginning March 31, 2002.	· Provide assistance and input into the communications and outreach plan to effectively engage interested stakeholders and the public. · Provide advice to task force members on mechanisms for public reporting.
5. Incentives and consequences	Incentives · Support participating member companies in development of pollution prevention plans and environmental management systems · Develop communication links with various levels and departments of government Consequences · Federal funding support maybe removed, should goals of this agreement not be met	Incentives · Incentives from Environment Canada Consequences · Companies who are unable to meet their targets and timelines will have opportunity to publicly comment on why their targets and timelines were not met and will have an opportunity to mitigate their situation depending on the circumstances. Companies who are identified as "free riders" will be removed from the EPA.	Incentives · EC will recognize publicly the environmental achievements of EPA participants. · EC will provide P2 training workshops in 2002 · EC will support Energy Reduction training for participating facilities · Where the Minister requires the preparation and implementation of P2 Plans addressing CEPA-toxic substances released or used in the automotive parts industry sector, the Minister will consider not including in this requirement companies that are committed to achieving equivalent environmental results (as expressed by the risk management objective and timelines) for these substances through this EPA. Consequences · Companies who are unable to meet their targets and timelines will have opportunity to publicly comment on why their targets and timelines were not met and will have an opportunity to mitigate their situation depending on the circumstances. Companies who are identified as "free riders" will be removed from the EPA.	Incentives · IC will recognize publicly the environmental achievements of EPA participants. Consequences · Companies who are unable to meet their targets and timelines will have opportunity to publicly comment on why their targets and timelines were not met and will have an opportunity to mitigate their situation depending on the circumstances. Companies who are identified as "free riders" will be removed from the EPA.	· Will have input at the Task Force level in the development of incentives and consequences of participating member companies.
6. Verification of results	· The APMA will work directly with the Canadian Standards Association to develop an audit scope which will be used for third party verification of reportable target reductions. · The APMA will be subject to third party verification on an annual basis.	· ISO14001 will be the mechanism by which progress will be monitored and verification of results will be achieved · Third party verification will be conducted, at a least twice during the length of this agreement - an initial baseline review and when commitments have been met. · Verification will be completed by an accredited auditor following the CSA Plus 1165 protocol developed for the APMA.	· ISO14001 will be the mechanism by which progress will be monitored and third party verified · Work with the APMA and Canadian Standards Association to develop an audit protocol.	· ISO14001 will be the mechanism by which progress will be monitored and third party verified	· Will have input to the verification process and access to results.
7. A regulatory backstop	· Not applicable	· Not applicable	· Under CEPA 1999, the federal government uses risk management instruments (regulations, pollution prevention planning etc.) to get environmental protection results. For CEPA-toxic substances, where reductions or preventive measures are needed in the automotive parts manufacturing sector and these reductions or preventive measures are not being met through other instruments such as this EPA, Environment Canada can use pollution prevention planning provisions and other instruments to get the required results.	· Not applicable	· Not applicable
8. Continuous improvement	· Continuous improvement is an inherent aspect of the ISO14000 process. · Signing companies will commit to become ISO14001 registered by Dec. 31, 2003. · Verify that signing companies complete ISO14001 registration by the deadlines committed.	· Continuous improvement is an inherent aspect of the ISO14000 process. · Signing companies will commit to become ISO14001 registered by Dec. 31, 2003.	· Verify that signing companies commit to become ISO14001 registered by Dec. 31, 2003. · The verification process being developed (by CSA) will also ensure continuous improvement of the process.	· Ensure that signing companies commit to become ISO14001 registered by Dec. 31, 2003. · The verification process being developed (by CSA) will also ensure continuous improvement of the process.	· Will h


		Created: 2003-04-09 Updated: 2003-09-10	Top of Page	Important Notices