Regulations Amending the Formaldehyde Emissions from Composite Wood Products Regulations: SOR/2024-256

Canada Gazette, Part II, Volume 158, Number 26

Registration
SOR/2024-256 December 9, 2024

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

P.C. 2024-1295 December 9, 2024

Her Excellency the Governor General in Council, on the recommendation of the Minister of the Environment and the Minister of Health, makes the annexed Regulations Amending the Formaldehyde Emissions from Composite Wood Products Regulations under subsection 93(1)footnote a of the Canadian Environmental Protection Act, 1999 footnote b .

Regulations Amending the Formaldehyde Emissions from Composite Wood Products Regulations

Amendments

1 (1) The definition Directive in section 1 of the Formaldehyde Emissions from Composite Wood Products Regulations footnote 1 is replaced by the following:

Directive
means the Directive concerning testing for formaldehyde emissions, dated June 2023 and published by the Government of Canada on its website. (directive)

(2) Section 1 of the Regulations is amended by adding the following in alphabetical order:

accredited laboratory
means a laboratory that meets the following conditions at the relevant time:
  • (a) it is accredited
    • (i) under the International Organization for Standardization standard ISO/IEC 17025, entitled General requirements for the competence of testing and calibration laboratories, by an accrediting body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement, or
    • (ii) under the Environment Quality Act, CQLR, c. Q-2; and
  • (b) the scope of its accreditation includes testing to measure formaldehyde emissions from composite wood panels or laminated products. (laboratoire accrédité)
lot
in relation to a product type, means all panels produced during one of the following periods:
  • (a) the period beginning on the day on which production starts and ending on the day on which the first quality control test is conducted;
  • (b) the period beginning on the day on which a quality control test is conducted and ending on the day on which the following quality control test is conducted; or
  • (c) the period beginning on the day on which the final quality control test is conducted and ending on the day on which production ends. (lot)

2 (1) Subparagraph 4(c)(ii) of the Regulations is replaced by the following:

(2) The portion of paragraph 4(f) of the Regulations before subparagraph (i) is replaced by the following:

3 The Regulations are amended by adding the following after section 4:

Non-application — installers

4.1 For the purposes of these Regulations, a person that only installs composite wood products is not considered to be a person that sells or offers those products for sale.

4 Paragraph 5(b) of the Regulations is replaced by the following:

5 Subsection 7(2) of the Regulations is replaced by the following:

Frequency

(2) The specimen selection, testing and verification must be performed four times annually, and the specimen selection must be performed not less than 60 days and not more than 120 days after the day on which the previous selection was performed.

6 Paragraph 10(3)(c) of the Regulations is replaced by the following:

7 Paragraph 11(5)(c) of the Regulations is replaced by the following:

8 (1) Subsection 15(1) of the Regulations is replaced by the following:

Inspection of wrapping

15 (1) As soon as feasible after a specimen arrives at an accredited laboratory, the person responsible for the specimen must inspect its wrapping for signs of damage that may affect formaldehyde emissions.

(2) Paragraphs 15(3)(a) and (b) of the Regulations are replaced by the following:

9 Subsections 16(4) and (5) of the Regulations are replaced by the following:

Re-test

(4) For the purpose of subsection (2), a non-compliant lot is re-tested

Notice of non-compliance to purchaser

(5) A person that has sold a composite wood panel or laminated product from a non-compliant lot must provide written notice of the non-compliance to the purchaser within 72 hours after the day on which the person becomes aware of the non-compliance.

10 Section 17 of the Regulations and the heading before it are repealed.

11 Paragraph 18(c) of the Regulations is replaced by the following:

12 (1) The portion of subsection 19(1) of the Regulations before paragraph (a) is replaced by the following:

Declaration of certification

19 (1) A manufacturer may provide a declaration of certification for a product type that it manufactures if it has documentation demonstrating that

(2) Subsection 19(2) of the Regulations is replaced by the following:

Contents of declaration

(2) The declaration of certification must be in the form of a certificate issued in accordance with TSCA Title VI or a document in English or French or both languages, for the product type.

(2.1) The declaration of certification sets out the following;

13 Subparagraph 20(1)(c)(i) of the French version of the Regulations is replaced by the following:

14 (1) Subsection 26(1) of the Regulations is amended by adding the following after paragraph (c):

(2) Paragraph 26(2)(b) of the French version of the Regulations is replaced by the following:

(3) Subsections 26(5) and (6) of the Regulations are repealed.

15 Paragraph 27(2)(b) of the French version of the Regulations is replaced by the following:

16 (1) Subsection 28(1) of the Regulations is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

(2) Paragraph 28(2)(b) of the French version of the Regulations is replaced by the following:

(3) Paragraphs 28(4)(a) to (d) of the Regulations are repealed.

(4) Subsection 28(5) of the French version of the Regulations is replaced by the following:

Délai — communication additionnelle

(5) L’importateur fournit au ministre les renseignements visés au paragraphe (4), en français, en anglais ou dans les deux langues, soit dans les quarante jours suivant la date de la demande, soit dans les soixante jours suivant cette date si les renseignements doivent être traduits d’une langue autre que le français ou l’anglais.

17 (1) Subsections 29(1) and 29(2) of the Regulations are replaced by the following:

Importer — component parts or finished goods

29 (1) An importer of component parts or finished goods must retain, in English or French or both languages, a record of the date on which the importer purchased any component part or finished good.

Retention period and location — importer

(2) The record referred to in subsection (1) must be retained for a period of five years after the day on which the importer purchased the component part or finished good at one of the following locations:

(2) Subsections 29(4) to (7) of the Regulations are replaced by the following:

Retention period and location — manufacturer

(4) The notice and information referred to in subsection (3) must be retained for a period of five years after the day on which they are made at one of the following locations:

Disclosure to Minister — manufacturer

(5) On request, the manufacturer must provide the Minister with a copy of any written notice and the information referred to in subsection (3).

Disclosure to Minister — importer

(6) On request, the importer must provide to the Minister the date on which the importer purchased any component part or finished good.

Additional disclosure to Minister — importer

(6.1) In respect of the composite wood panels or laminated products that are incorporated into the component parts or finished goods that the importer imports, the importer must provide to the Minister, on request, the following information

Additional disclosure to Minister — manufacturer or importer

(6.2) On request, the manufacturer or importer must provide the Minister with a copy of the declaration of certification referred to in section 19 for the product types that are incorporated into the component parts or finished goods.

Timeframe for additional disclosure

(7) The importer must provide the information referred to in subsections (6.1) and (6.2) and the manufacturer must provide the information referred to in subsection (6.2), to the Minister in English or French or both languages, within 40 days after the day on which the request is made or, if the information is to be translated from a language other than English or French, within 60 days after the day on which the request is made.

18 Section 30 of the Regulations is replaced by the following:

Statement of compliance

30 (1) A manufacturer or importer of component parts or finished goods and a seller of composite wood products must, for every type of composite wood product that they import, sell or offer for sale, as the case may be, retain a document that sets out the name of the supplier and contains a written statement indicating that the composite wood products that they import, sell or offer for sale are either CANFER or TSCA Title VI compliant, as the case may be.

Retention period and location

(2) The document referred to in subsection (1) must be retained for a period of five years after the day on which it is made at one of the following locations:

Disclosure to Minister

(3) On request, the manufacturer, importer or seller, as the case may be, must provide the Minister with the document referred to in subsection (1).

Coming into Force

19 These Regulations come into force on the 90th day after the day on which they are published in the Canada Gazette, Part II.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Following publication of the Formaldehyde Emissions from Composite Wood Products Regulations (the 2021 Regulations), stakeholders alerted the Government of Canada (the Government) of a drafting oversight in the 2021 Regulations, among other issues. Amendments are required to address the oversight regarding the quality control testing requirements for composite wood panel manufacturers and to revise record keeping, particularly for downstream supply chain regulated parties (e.g. retailers). In addition, minor amendments are included to improve clarity for regulated parties, enhance enforceability by requiring certain records to be kept in Canada, and align the 2021 Regulations with changes to the United States (U.S.) Environmental Protection Agency’s (EPA) Toxic Substances Control Act (TSCA) Title VI adopted on February 21, 2023.

Background

The 2021 Regulations were published in the Canada Gazette, Part II, on July 7, 2021, and came into force on January 7, 2023. They aim to reduce potential risks to the health of Canadians from indoor formaldehyde exposure by establishing limits on allowable formaldehyde emissions from composite wood products. Formaldehyde in indoor air can cause irritation of the eyes, nose and throat and evidence indicates it may worsen asthma symptoms, especially in children. The regulations prohibit the import, sale or offer for sale of composite wood products that emit formaldehyde above established limits and align with TSCA Title VI to the extent possible. This facilitates regulatory harmonization and a level international playing field.

A drafting oversight in the 2021 Regulations implies that panel manufacturers must use an accredited laboratory to comply with quality control testing requirements, which was not the intended policy. Correcting the drafting oversight is critical to the effective administration and interpretation of the regulations. In addition, the requirement for downstream regulated parties to collect declarations of certification (declarations) for all composite wood panels that may have been incorporated into the finished goodsfootnote 2 they import, distribute or sell, could impose a burden that was not intended in the 2021 Regulations. The Regulations Amending the Formaldehyde Emissions from Composite Wood Products Regulations (the Amendments) clarify the quality control testing and revise the record-keeping requirements. Without the Amendments, regulated parties would likely incur unanticipated costs in order to comply with the regulations and its record-keeping requirements.

On June 17, 2023, the proposed Regulations Amending the Formaldehyde Emissions from Composite Wood Products Regulations (the Proposed Amendments) were prepublished in the Canada Gazette, Part I, for a 75-day public comment period.

Objective

The Amendments

Description

Quality control testing

Under the 2021 Regulations, testing of formaldehyde emissions from composite wood panels is required quarterly using primary testing methods and at more frequent intervals using quality control testing methods. The Government’s policy intent for the 2021 Regulations was that primary testing must be performed by an accredited laboratory, but that quality control testing typically carried out routinely in production mills need not be performed by an accredited laboratory. While the use of an accredited laboratory is specified for primary testing requirements in paragraph 7(1)(b) of the 2021 Regulations and not specified for quality control testing under subsection 8(1), section 17 unintentionally requires that “any” formaldehyde emissions testing be performed by an accredited laboratory. Requiring accredited laboratories for the large volume of quality control tests is out of alignment with TSCA Title VI and not feasible as it would impose an excessive burden on regulated parties. To remove this risk of potential adverse burden on regulated parties and align with TSCA Title VI, the Amendments provide that only the primary testing must be done by an accredited laboratory, while the routine quality control testing conducted within mills may be done using less expensive testing methods. In addition, the timing of the primary testing requirements is revised to enable specimen selection to occur within 30 days of each required 90-day test interval and all testing and verification requirements to be completed within 90 days of sample selection. This better aligns with the Government policy, whereby primary testing can occur at any time, so long as testing is spread quarterly throughout the year, while providing flexibility with regard to specimen selection. This takes into consideration the comments received on the Proposed Amendments as well as during key stakeholder consultations.

Record keeping

Declarations are produced by composite wood panel and laminated product manufacturers to declare that their products have been tested for formaldehyde emissions by a qualified third-party certifier according to the regulations and are below the established limits. This is a key record-keeping requirement passed down and maintained by all regulated parties along the supply chain. Following the publication of the 2021 Regulations, the Government heard from concerned industry stakeholders that collecting and maintaining declarations would pose an excessive burden on importers and sellers of finished goods due to the large number of declarations that can be associated with each finished good item, in addition to the large volume of types of finished goods carried by retailers.

In order to maintain a requirement for a proof of certification of composite wood products, the requirement to collect declarations for each type of composite wood panel within a finished good was revised in the Proposed Amendments to require a single manufacturer’s attestation affirming that only certified panels were incorporated into the finished good. However, after publication of the Proposed Amendments, stakeholders raised concerns with regard to the proposed manufacturer’s attestation approach, namely, administrative burden and risk of release of confidential information. Key stakeholder consultations were held to further clarify the concerns. As a result, the record-keeping requirements have been further revised to remove the proposed attestation framework and include a modified record-keeping approach. A declaration must still be made and maintained by the domestic manufacturer, or obtained and maintained by the importer, of composite wood panels and laminated products and made available to the Minister immediately. However, domestic manufacturers and importers of component parts and finished goods incorporating a composite wood panel or laminated product must now obtain the declaration, upon request by the Minister, within 40 days after the day the request is made or within 60 days if the information needs to be translated from a language other than English or French. Sellers of composite wood products — whether panels, laminated products, component parts or finished goods — are no longer required to maintain declarations.

Failure by the domestic manufacturer or importer of composite wood products to provide the declaration would result in the prohibition of further sale or import of the composite wood product by such manufacturer or importer. Domestic manufacturers and importers of component parts and finished goods as well as sellers of composite wood products must now indicate that the composite wood products they import, sell or offer for sale are CANFERfootnote 3 or TSCA Title VI compliant by means of a written statement of compliance maintained as a record in Canada and available immediately, upon request. The written statement must include the name of the seller from whom the buyer purchased the composite wood product, and could be included on documents reasonably expected to be part of the sale such as purchase orders, invoices and bills of lading. This revised record-keeping approach better aligns with the TSCA Title VI rule.

In addition, in response to comments received on the Proposed Amendments, the 2021 Regulations have been amended to allow manufacturers of composite wood panels and laminated products to use a TSCA Title VI certificate as the declaration or to produce a declaration, provided that the required information is present and valid.

Align with U.S. EPA Amendments to TSCA Title VI Rule

On February 21, 2023, the U.S. EPA published final amendments to TSCA Title VI to update voluntary consensus standards, make changes to rules for third-party certifiers and bring the Rule in line with the California Air Resources Board (CARB) Regulations for formaldehyde-containing composite wood products. Given the degree of cross-border trade in composite wood products, the regulations aim to align with TSCA Title VI. The Government has reviewed the final changes to TSCA Title VI and determined that two of the amendments impact the 2021 Regulations. The Amendments incorporate the following U.S. EPA changes which have been adopted into TSCA Title VI:

Minor amendments

Minor amendments are included to clarify certain requirements and correct minor technical aspects in the 2021 Regulations. Two amendments related to noncompliant lots have been made, one clarifying retesting methods and another changing the notification period from “two days” to “72 hours” to correspond to TSCA Title VI. An amendment is also included to indicate that builders/renovators/installers of composite wood products are not considered “sellers” under the regulations. Three amendments related to declarations requirements have been made to 1) require that declarations be prepared in one or both official languages; 2) remove the requirement that the name of the third-party certifier contact person appear on the declarations; and 3) add the name and address of the mill where the certified product types are manufactured. Furthermore, to enhance enforceability, minor changes are included to require that certain records (such as dates of purchase of composite wood products) be maintained in Canada, rather than being provided within 40–60 days, upon request.

A number of non-substantive amendments are also included to better align the English and French versions of the regulatory text.

As a result of comments received on the Proposed Amendments, a definition for “lot” as well as a clarification with regard to component parts used in certain modes of transportation have been added to the 2021 Regulations. In addition, section 15 of the 2021 Regulations has been amended to link the level of damage to a specimen to the test result. Finally, the Amendments provide that manufacturers of composite wood panels and laminated products may keep a representative copy of labels, containing at minimum the name of the manufacturer and compliance statement, which further aligns with TSCA Title VI.

Regulatory development

Consultation

Prior to prepublication of the Proposed Amendments in the Canada Gazette, Part I

Since the publication of the 2021 Regulations in the Canada Gazette, Part I, on July 7, 2021, the Government has been engaged in discussions with key stakeholders from the composite wood products industry, including the Composite Panel Association (CPA), Retail Council of Canada (RCC), Business and Institutional Furniture Manufacturers Association (BIFMA), Kitchen Cabinet Manufacturers Association (KCMA) and the American Home Furnishings Alliance (AHFA), among others. Stakeholders reached out to the Government for virtual meetings to discuss the 2021 Regulations and its impacts on their industry. Government officials also provided regulatory updates for members of the CPA and RCC during their annual meetings in September 2022. Stakeholders raised the following issues:

Issue: Requiring accredited laboratories for regular quality control testing (section 17) is not feasible.

Response: The Government acknowledges that requiring accredited laboratories to carry out the routine quality control testing was not the policy intent and that a regulatory amendment would be required to address this issue. The Amendments have now addressed this issue.

Issue: Requiring importers and sellers of finished goods to keep records of all the declarations from the composite wood panels incorporated into finished goods is very burdensome.

Response: The Government has amended the 2021 Regulations to simplify the record-keeping requirements and reduce the unintended burden signalled by regulated parties.

Issue: There are minor issues dealing with non-compliant lots, including sampling and test method used for retesting and the notification period of two days in CANFER rather than the 72 hours permitted in TSCA.

Response: The Government has indicated in guidance that the test method for retesting should be the same as that used to determine the non-compliant lot and has amended the 2021 Regulations to allow a 72-hour notification period rather than two days. The Government decided to take no action on addressing the sampling for retesting, as it appears to be the result of the 2021 Regulations being organized differently than TSCA, while still achieving the same substantial effect.

Issue: Requiring a contact person for the third-party certifiers within the declarations is a perceived burden, as stakeholders believe the declarations must be updated every time there is a new contact person.

Response: The Government has amended the 2021 Regulations to remove the third-party certifier contact person from the required contents of the declarations and has clarified in guidance that a new declaration would not be required based only on the change of the third-party certifier contact person.

Prepublication of the Proposed Amendments in the Canada Gazette, Part I

On June 17, 2023, the Proposed Amendments were pre-published in the Canada Gazette, Part I, for a 75-day public comment period. The Government received comments from one private citizen, one non-government organization, 10 industry associations/coalitions, 22 regulated stakeholders and one accreditation body for a total of 35 sets of comments. Overall, stakeholders were supportive of the 2021 Regulations and the Amendments. Stakeholders did, however, raise further concerns with regard to the administrative burden of the record-keeping requirements and requested further alignment with the TSCA Title VI rule. Other comments raised by stakeholders include adding/revising definitions, revising the primary testing frequency, including third-party certification oversight in the creation of declarations and clarifying the production volume and labelling record-keeping requirements. Key stakeholder consultations with the CPA and the Right Reg Coalition of certain composite wood products industry trade associations and member companies were held to further clarify comments received on the Proposed Amendments and discuss how to address the issues raised. Stakeholders raised the following specific issues during the public comment period:

Issue: Administrative and financial burden on manufacturers of component parts and finished goods as well as sellers of composite wood products remains with the attestation framework. There is also a concern with regard to disclosure of confidential information.

Response: In response to this comment received on the Proposed Amendments, the proposal was revised as described in the “Description” section above. This includes removal of the attestation framework and revision of the record-keeping requirements.

Issue: Third-party certifier oversight should be included in the production of the declaration; a valid TSCA Title VI certificate issued by a third-party certifier should be recognized as an acceptable declaration.

Response: In response to this comment received on the Proposed Amendments, the proposal was revised as described in the “Description” section above.

Issue: To provide meaningful information and to maintain consistency with industry practices, the production volume should be expressed by product type.

Response: In response to this comment received on the Proposed Amendments, the proposal was revised to clarify that the production volume must be maintained per product type.

Issue: The date ranges set for sample selection by third-party certifiers continue to place a significant burden on third-party certifiers and manufacturers of composite wood panels to schedule and conduct audits in a time frame that does not consider a manufacturer’s production schedules.

Response: In response to this comment received on the Proposed Amendments, the proposal was revised to provide flexibility in primary testing frequency.

Issue: The addition and revision of certain definitions relating to the description of the application and regulatee subgroups are needed to better align with TSCA Title VI and improve clarity.

Response: In response to this comment received on the Proposed Amendments, the proposal was revised to add a definition for “lot.” Other recommendations were taken into consideration and deemed unnecessary for implementation of the regulations.

Issue: The regulations should include the acceptance of electronic documents.

Response: Clarification has been provided in the Guidance document on the Formaldehyde Emissions from Composite Wood Products Regulations that either electronic or paper copies of regulatory documents can be provided to the Minister of the Environment; therefore, no changes are being made to the 2021 Regulations in this regard.

Issue: Third-party certifiers should be allowed to accept non-contaminated samples that might show minor shipping damage.

Response: In response to this comment received on the Proposed Amendments, the proposal was revised to link the level of damage of a specimen to the test result.

Issue: There is a significant logistical and administrative burden for importers to maintain certain records in Canada instead of requiring them to be available upon request.

Response: As with other regulations under the Canadian Environmental Protection Act, 1999 (CEPA), most records must be kept in Canada for five years for enforcement purposes. Certain records are to be provided, upon request, within 40 to 60 days.

Issue: It is unrealistic to request manufacturers of composite wood panels to store a copy of every label from every production lot; instead, “representative labels” should be required to be maintained, as outlined in TSCA Title VI.

Response: In response to this comment received on the Proposed Amendments, the proposal was revised to allow manufacturers of composite wood panels and laminated products to keep a representative copy of labels.

Other stakeholder engagement

In addition to the targeted stakeholder consultations, the Government has been regularly responding to inquiries about the 2021 Regulations from industry stakeholders submitted through the Health Canada Formaldehyde email account. As of the start of April 2024, the Government has responded to more than 370 inquiries. These inquiries have covered a range of topics, with the majority of the questions pertaining to the responsibilities of manufacturers, importers and retailers, especially where these responsibilities deviate from those under TSCA Title VI. There has also been a large number of inquiries from stakeholders seeking information on the role of the third-party certifiers under the 2021 Regulations.

Modern treaty obligations and Indigenous engagement and consultation

An Assessment of Modern Treaty Implications was conducted for the 2021 Regulations; no modern treaty implications were identified. Given the narrow scope of the changes, the Amendments also do not have any modern treaty implications.

Instrument choice

A regulatory amendment was the only instrument available to correct the drafting oversight by modifying the 2021 Regulations, and the only option for revising the record-keeping requirements. Non-regulatory options for correction were considered and were determined not to be viable.

Regulatory analysis

Benefits and costs

Costs

Regulated parties will not incur incremental costs as a result of the Amendments.

A qualitative assessment of potential implications on regulated parties of the drafting oversight in the absence of the Amendments was undertaken. It was determined that, without the Amendments, stakeholders would incur unintended, additional compliance costs linked to routine quality control testing being performed by an accredited laboratory. The Amendments are designed to avoid such unintended application of the 2021 Regulations, thereby keeping impacts in line with what was assessed for the 2021 Regulations. The Amendments align with the original policy intent of the 2021 Regulations by clarifying that only primary testing (and not quality control testing) must be done by an accredited laboratory. Record-keeping requirements have also been revised to keep the administrative burden for finished goods along the composite wood products supply chain in-line with what had been assessed for the 2021 Regulations.

Canadian manufacturers of composite wood panels are required to be compliant with the TSCA Title VI in order to export their products to the U.S. Given that most of them are already compliant, the Amendments aligning with TSCA Title VI do not impose additional costs on regulated parties. Likewise, additional minor amendments to enhance enforceability and align the 2021 Regulations with U.S. EPA changes to the TSCA Title VI will not impose additional costs on regulated parties.

Communications and compliance promotion to inform stakeholders of the Amendments will be undertaken and the guidance document will be updated; such costs to Government are expected to be negligible. The Amendments are not expected to impact Canadian consumers.

Benefits

Canadian composite wood products manufacturers, sellers and importers that operate in the U.S. will benefit from reduced inconsistencies and greater alignment with TSCA Title VI, given the high level of market integration between the two countries and given that the U.S. is Canada’s largest trading partner.

By correcting a drafting error in the 2021 Regulations, these Amendments will benefit manufacturers of composite wood panels and laminated products by avoiding unintended costs associated with conducting quality control testing through an accredited laboratory. Domestic manufacturers and importers of component parts or finished goods and sellers of composite wood products will also benefit from reduced record-keeping costs by no longer needing to maintain declarations or attestations for composite wood products and instead retaining simplified records (i.e. written statements of compliance).

The Amendments do not impact the formaldehyde emissions levels established within the regulations and are therefore not expected to impact the health benefits to people in Canada.

Small business lens

Regulated parties that are small businesses will not incur additional costs as a result of the Amendments. Since most small businesses operate further down the supply chain, revising record-keeping requirements will benefit small businesses, as they will not have to incur unintended costs to maintain proof of certification of composite wood products and collect statements of certification for each type of composite wood panel found in a finished good they sell or import. The Amendments are intended to respond directly to feedback from businesses (including small businesses) to the issues described and thus reduce potential costs or risks arising from unintended consequences of the 2021 Regulations.

One-for-one rule

The one-for-one rule does not apply to the Amendments, as there is no change (no increase or decrease) in the administrative burden to businesses from what was assessed for the 2021 Regulations. While the Amendments will reduce administrative burden costs, this reduction is a result of removal of requirements that were not properly captured, when introduced, and therefore, are not monetized and counted as administrative cost savings for the purposes of Element B of the one-for-one rule.

Regulatory cooperation and alignment

The 2021 Regulations align with U.S. TSCA Title VI on formaldehyde emission limits, product types covered and the need for certified oversight of emissions testing. The Amendments will maintain alignment with TSCA Title VI to the extent possible, by incorporating into CANFER the changes to the U.S. Rule adopted on February 21, 2023. The Amendments will not impact existing differences between CANFER and TSCA Title VI, addressing unique Canadian circumstances and the Canadian legal and legislative framework. The Amendments are not expected to have other impacts on regulatory cooperation.

Effects on the environment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a strategic environmental assessment (SEA) was completed for Canada’s Chemicals Management Plan (CMP). The Amendments fall within the scope of the SEA conducted for the CMP, which indicated the CMP will have a positive effect on the environment and human health.

Gender-based analysis plus

A gender-based analysis plus (GBA+) was conducted for the 2021 Regulations. No impacts based on gender, sex, age, language, education, geography, culture, ethnicity, income, ability, sexual orientation and gender identity have been identified for the Amendments. No concerns have been expressed by stakeholders or the public regarding the Amendments.

Implementation, compliance and enforcement, and service standards

Compliance promotion and enforcement activities for the regulations will continue for the regulated parties. As the regulations are made under CEPA, enforcement officers will, when verifying compliance with the regulations, apply the Compliance and Enforcement Policy for CEPA.footnote 5 This Policy sets out the range of possible responses to alleged violations, including warnings, directions, environmental protection compliance orders, tickets, ministerial orders, injunctions, prosecution and environmental protection alternative measures (which are an alternative to a court prosecution after the laying of charges for a CEPA violation). In addition, the Policy explains when the Government of Canada will resort to civil suits by the Crown for cost recovery.

The Amendments will come into force 90 days following publication in the Canada Gazette, Part II.

Contacts

Andrew Beck
Director
Risk Management Bureau
Safe Environments Directorate
Health Canada
269 Laurier Avenue West
Ottawa, Ontario
K1A 0K9
Email: formaldehyde-formaldehyde@hc-sc.gc.ca

Matthew Watkinson
Executive Director
Regulatory Analysis and Valuation Division
Environment and Climate Change Canada
200 Sacré-Cœur Boulevard
Gatineau, Quebec
K1A 0H3
Email: darv-ravd@ec.gc.ca