I'm glad somebody laughed. I had to try.
But the statute has extensive authorities and is used to address a wide range of issues.
Let me turn to the kinds of authorities we have under the statute.
Of course, environmental and health decision-making needs to be science based and based on good information, so the act gives us broad authority to conduct research. Indeed, it mandates a wide range of research on the parts of both Health Canada and Environment and Climate Change Canada. It also gives us various tools to gather information. In some cases, of course, a producer of a particular substance will be in a much better place to actually conduct a test to enable us to get the information to determine whether there's a problem.
In addition to that kind of information, we also need information about who's using and who's emitting substances and pollutants. We're able to gather that information to enable us to make informed decisions about whether to act and how to act.
I'll talk about the regulatory authority in the act. You will see there are authorities for the government, for the Governor in Council, to pass regulations with respect to virtually all of the issues the act addresses. There is authority to regulate substances that are found to be toxic, or in other words, that meet that test of harm to the environment, harm to health, or harm to the environment on which human health depends.
Similarly, we have the authority to set emission and design standards for air emissions from vehicles and from engines. We have authority to regulate fuel composition. That's important of course because the combustion of fuels can lead to air pollution and greenhouse gases. Also, when we set vehicle and engine standards, we need to ensure that fuel that can be used effectively with those new technologies is available.
You can see the rest of the list. There is a broad set of regulatory authorities.
The act is structured in a very reader-unfriendly manner. You'll see regulatory authorities scattered throughout the act, and then buried in the so-called miscellaneous section right at the back of the act, part 11, Miscellaneous Matters, are two provisions, 322 and 326, that authorize most of those regulatory authorities to include provisions for trading systems. Most people will have heard of air emissions trading, but we have actually used trading systems in five different regulations, not all of which are focused on air, so for renewable fuels, sulphur and gasoline regulations, and so on.
In a couple of places in this deck we've taken the liberty of identifying limitations in the statute. My colleague and I are going to be very careful here. I need to be very careful. We're not here to tell you what you should do. We're not here to tell you what the act should be focused on or indeed how you should amend the act, if at all. But we can tell you that the act addresses this issue and doesn't address that issue, and it's up to you to decide whether it should address that issue. We're treading the fine line between giving you the information you need and not usurping your authority or our minister's authority to make those kinds of judgments.
In the case of trading systems, the broad authority to develop trading systems that we've already demonstrated can be used quite effectively. However, we know from experience in other jurisdictions that in some cases effective trading systems would include features such as auctioning of permits, and we don't have authority to auction permits under CEPA at the moment.
Similarly, because most of CEPA is established under the criminal law head of power, we don't have authority under that head of power and under regulations that are developed under that head of power to impose automatic administrative penalties. However, we know that in some jurisdictions that have effective trading systems, it's a market-based system and the market works best in response to immediate, clear signals including penalties that are a bit different than can be available through a criminal penalty, which of course can be significant but can be a little uncertain in terms of whether it's actually going to be imposed, when it's going to be imposed, and what the amount is going to be.
In addition to regulations, there are a number of other tools or instruments that the act allows us to use to address risks. We have permit systems for ocean disposal, for transboundary movement of waste, and for exports of substances that are on the export control list.
We have something called pollution prevention plans. Basically, that derives from some very interesting work that was done in the 1980s primarily in the United States. It looked at energy efficiency and basically called into question the classic economic theory that if there is a piece of change on the ground, the rational actor will pick it up. Of course, while we all might think we're rational, we're not all-seeing and all-knowing, and any company is going to have limitations on its ability to identify all possible cost-saving opportunities.
In the case of energy efficiency, a number of initiatives in the United States basically required companies to undertake energy efficiency plans. They didn't have to actually do anything other than a plan to look at where their energy efficiency opportunities were. The result was overwhelmingly that companies adopted energy efficiency initiatives because they identified ways to save money.
Pollution prevention planning is the same concept. We'll tell you that there's an issue; we'll tell you what the environmental objective or concern is, and we'll require you to do a plan to look at ways within your operation to address that issue. If you say that you've done the plan and you're not going to do anything, you've complied with the law as long as you've done a plan. We've used this authority on numerous occasions and in no situation have we had to subsequently step in and regulate, because companies have consistently stepped up to the plate and said they would do what was needed to address the environmental issue. That was a tool that was introduced in CEPA in 1999.
We also, as my colleague mentioned, have the authority to issue guidelines, air quality guidelines and water quality guidelines. Those can just go out there to provide information. They can be taken up by provinces and incorporated into their permitting systems or be taken up by federal government requirements.
Similarly, we have the authority to issue codes of practice, which are basically a way in which a particular industrial process should ideally be undertaken. Again, those can just be published and put out there for good practice, or they can be incorporated into law either provincially or federally.
Moving to the robust enforcement regime that we have, just like risk management tools, the basic underlying goal in CEPA is to provide enforcement officials with a range of tools to respond to a situation appropriately so that you don't have only the two options of turning a blind eye or prosecuting.
Of course, prosecution is costly to the government. It may be overkill in the case of a relatively innocent mistake. It's totally appropriate in the case of an egregious offence or a repeat offender, but you need the intermediate tools to bring people back into compliance. That's the basic structure of the act, to provide a range of tools.
Slide 11 summarizes some of the authorities we have for intergovernmental co-operation. We have authorities for what are called equivalency agreements. If a province, territory, or aboriginal government is addressing the same issue and achieving the same outcome, then we can have an agreement followed by a Governor in Council order that essentially stands down the application of CEPA for that particular issue in that particular jurisdiction. There is no point having two requirements focused on the same issue.
We also have the authority to tailor regulations. Generally a regulation under CEPA applies nationwide, but we have the authority, subject to some conditions, to focus a regulation on a particular part of the country where environmental or health concerns warrant that kind of tailoring.
The act contains a number of requirements for consultation that go beyond the basic requirements for consultation when developing regulations or other kinds of formal instruments. It also has obligations to publish every proposed and final decision on the web-based environmental registry and obligations to consult on every one of those decisions with provinces, territories, and aboriginal governments through the CEPA National Advisory Committee, which Mr. Cooper and I co-chair.
The next six slides talk about the kinds of issues we have addressed under CEPA. My colleague introduced the chemicals management plan. That plan subsumes two broad sets of activities, one to address new substances and one to address existing substances.
What do I mean by that? Under CEPA 88, we drew up the domestic substances list. That was a list of all substances that were in commercial use in Canada above certain thresholds in the mid to late 1980s. Basically, if a substance is not on that list, it's considered new. It cannot be used in Canada until it goes through a pre-market notification process.
We have a regulation that indicates the information you have to provide, and then the law requires us to take that information and assess it within a certain period of time. Based on that assessment, the ministers can say that you're good to go and you can use it, or you can use it subject to conditions, or you can't use it at all.
If a substance is on that list, however—and there were 23,000 substances on that list—they are existing substances. People have made investments in using those substances. They are in all kinds of products and processes. Canada, like every other country in the world, confronted this issue in the 1990s. What do we do with these tens of thousands of substances that haven't been assessed but are in use?
Canada developed a set of requirements that is unique in the world. This was the categorization obligation. CEPA 99 set out some basic criteria and required the departments of environment and health to basically triage those 23,000 substances based on some basic criteria to identify substances that should be a priority for a full assessment.
We went from 23,000 to 4,300, and then developed the chemicals management plan in 2007, in which we made a commitment to complete assessments of those 4,300 substances by 2020. We're on track to complete that set of assessments.
Of course, if we identify a substance that needs to be risk managed following one of those assessments, then we develop a risk management instrument using one of the tools under CEPA.
Let me turn to air pollution and greenhouse gases. Sorry, I should speak to a couple of the issues on slides 12 and 13.
In CEPA 1999, Parliament wanted to distinguish among substances that were persistent and bioaccumulative and inherently toxic. This was a category of substances that had been identified by scientists for a long time and which had then been taken up by the International Joint Commission as a set of substances that needed particular attention and that should be virtually eliminated. The act establishes some obligations for virtual elimination.
The bottom line is that we are not able to implement all of those obligations for all substances that meet those criteria; moreover, some of those obligations are redundant. I'll give you one example. We're obliged to develop a ministerial regulation and a virtual elimination plan for substances that meet these criteria; however, when a substance meets these criteria, typically what we do is add it to the Governor in Council regulation known as the “prohibition of various substances”. Well, if the Governor in Council has prohibited the use of this substance, there is not much point in also developing a requirement to do a virtual elimination plan and also have the minister promulgate a regulation. So, there are some issues, not with the underlying policy intent, but with the actual mechanics in the act.
Another issue we've started to confront more and more comes back to the explanation I gave you earlier, that the federal government addresses substances both through CEPA and through a number of product-specific statutes that are typically housed in departments other than Environment and Climate Change Canada, departments that have particular scientific expertise around the substance in question.
Again, think about the Feeds Act. The experts in agricultural feeds are the CFIA and Agriculture Canada, not Environment Canada. Health Canada has entire organizations focused on assessing and managing food, drugs, and consumer products such as baby bottles. What CEPA does is it says that if it's toxic and if the Governor in Council adds a substance to the list of toxic substances, then we have to manage the substance under CEPA, even if another statute might be the better one to use to manage the substance. I think we've effectively managed all of those substances, but we've run into some legal challenges in taking the most appropriate action.
The same thing applies to new substances. As I said earlier, the way CEPA works is that CEPA stands down if another statute provides for an equivalent pre-market notification and assessment requirement that covers both environment and health risks. A number of statutes, however, were developed pre-CEPA and may require pre-market notification and assessment of health risks, but not of environmental risks. We then have situations in which some products that are addressed under Agriculture Canada have equivalent statutory authorities, but some don't; some products that would logically be assessed by our colleagues at the Department of Fisheries and Oceans can't be managed under their statutes, so they need to undergo pre-market notification and assessment under CEPA, and a decision needs to be made by the ministers of environment and health, even though the actual work is done in another department. There's some wiring that could be sorted out, if you so chose.
Then, we have broad authority over greenhouse gases and air pollution. By most criteria, air contaminants are listed as toxic substances; all of the six greenhouse gases listed under the United Nations Framework Convention on Climate Change are listed as toxic. We can use the broad regulatory authority for toxic substances to address greenhouse gases.
We also have authority, as I mentioned, to address emissions from vehicles, fuels, and engines. We don't, however, have authority over certain types of sources. Small marine vessels, for example, remain a bit of an outlier.
As another challenge we have, we've given the example of wood stoves. We could address emissions from wood stoves because the emissions are toxic, but that would require placing a regulation on every user of a wood stove. A wood stove itself is basically an inert piece of metal. It's not toxic. At the moment, we can't regulate it because it's not toxic. It might be useful to have the authority to regulate the construction or operation of a product whose use generated or emitted toxic substances. To use the example of wood stoves, you'd be able to place a regulation on the manufacturers and importers, a couple of dozen, instead of the hundreds of thousands of users of wood stoves. It's just the way we regulate vehicle manufacturers and not every owner of a vehicle.
I sense that my time is waning.