Follow Up on the Final Decision on the Assessment of Releases of Used Crankcase Oils to the Environment

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Follow Up on the Final Decision on the Assessment of Releases of Used Crankcase Oils to the Environment April 2011 Environment Canada

Table of Contents 1 Issue... 3 1.1 Background on Used Crankcase Oils... 3 1.2 Substance information... 3 2 Criteria... 4 3 Provincial and Territorial Risk Management Measures... 4 4 4 3.1 Controls prohibiting disposal to land, landfill and sewers... 3.2 Controls prohibiting the use of used oils as a dust suppressant... 3.3 Controls prohibiting the open burning and restricting use as a fuel... 3.4 Controls applicable to the re refining and re processing of used oils are in place... 3.5 Used Oil Collection Programs... 3.5.1 British Columbia, Alberta, Saskatchewan, Manitoba, and Québec... 3.5.2 Ontario... 3.5.3 Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador... 7 3.5.4 Yukon, Nunavut and the Northwest Territories... 7 4 Summary and Conclusions... 7 Appendix A... 9 5 5 5 5 6

1 Issue 1.1 Background on Used Crankcase Oils Used Crankcase Oils (UCOs) was listed on the first Priority Substances List (PSL1). In the 1994 Priority Substances List Assessment Report, Waste Crankcase Oils, there was insufficient information to conclude whether UCOs constituted a danger to the environment under Paragraph 11(a) of the Canadian Environmental Protection Act, due to lack of exposure and effects data for the selected scenarios of concern (i.e., dust suppressant, land disposal, burning as fuel, and re refining). On June 21, 2003, Environment Canada published the summary of the Draft Follow up Report on a PSL1 Substance for Which There was Insufficient Information to Conclude Whether the Substance Constitutes a Danger to the Environment, Waste/Used Crankcase Oils in the Canada Gazette, Part I. The report concluded that UCOs are entering the environment in a quantity or concentration or under conditions that have or may have an immediate or long term harmful effect on the environment or its biological diversity. During the public comment period, Environment Canada received a number of written comments. The majority of these addressed risk management and did not change the conclusion of the report which was that UCOs are toxic to the environment. A notice was published in the Canada Gazette, Part I on August 4, 2007 which summarized the final assessment report and informed Environment Canada s decision to take no further action in respect to UCOs since adequate risk management measures were already in place. In addition, Environment Canada committed to work with Canadian governments and industry to monitor publicly available information on used oil management programs in Canadian provinces and territories and if results indicated that existing preventive and control actions were not effective, the Ministers of the Environment and Health may consider taking further action under the Canadian Environmental Protection Act, 1999 (CEPA 1999). Hence, as a follow up to the decision to take no further action, the following report re evaluates provincial and territorial preventative and control actions against several criteria and concludes whether these actions constitute effective risk management measures for UCOs. 1.2 Substance information UCOs are defined as used lubricating oil removed from the crankcase of internal combustion engines. Before they are used, crankcase oils consist of a base lubricating oil (a complex mixture of hydrocarbons, 80 to 90% by volume) and performance enhancing additives (10 to 20% by volume). Crankcase oils are altered during use because of the breakdown of the additives, contamination with the products of combustion, and the addition of metals from the wear and tear of the engine. Generally, UCOs are a complex mixture of substances, many of which are already declared toxic and on Schedule 1 of CEPA 1999. These substances include: arsenic and its compounds; acidic, sulfidic and soluble benzene; inorganic nickel; cadmium; polycyclic aromatic hydrocarbons chromium and its compounds; (PAHs);

Trichloroethylene; tetrachloroethylene; 1,1,1 trichloroethane; lead; and polychlorinated biphenyls (PCBs). 2 Criteria The following sources of exposure to UCOs were identified as concerns in the assessment report 1 prepared by Environment Canada: 1 Disposal to land, landfill and sewers 2 Use as a dust suppressant 3 Burning as fuel 4 Re refining Based on these sources of exposure and the risk management objective, which is to focus on the collection of used oil and specifically ensure that programs are in place to recover and properly mange used oils, the following five criteria will be used to asses the effectiveness of Canadian risk management measures for UCOs: Controls prohibiting the disposal of used oils to land, landfill and sewers. Controls prohibiting the use of used oils as dust suppressant are in place. Controls prohibiting the open burning of used oils and restricting the use of used oils as a fuel are in place. Controls applicable to the re refining and re processing of used oils are in place. Programs to collect used oils are in place in all provinces and territories, and together they are able to recover at least a minimum proportion of the used lubricating oils generated in Canada. 3 Provincial and Territorial Risk Management Measures This section will address regulations, legislation and guidelines in place regarding UCOs through a brief discussion based on the five criteria. In most cases, provinces and territories have measures in place to address the sources of exposure which gave rise to the criteria. A summary table of regulations and/or legislation is presented for each criterion in the Appendix. 3.1 Controls prohibiting disposal to land, landfill and sewers All provinces and territories classify UCOs as hazardous waste under their respective legislation, which prohibits their disposal to land. Waste management regulations in most provinces and territories prohibit disposal to landfills. Since UCOs are classified as hazardous waste they are also banned from sewage disposal. Please refer to Table 1A in the Appendix. 3.2 Controls prohibiting the use of used oils as a dust suppressant In the past, UCOs were applied to gravel and dirt roadways to minimize the amount of dust generated by vehicles. Typically, these oils were collected from service stations and fleet shops. This is no longer a common practice; used oil is not allowed as a dust suppressant on roadways 1 Environment Canada, 2005, Follow up Report on a PSL1 Substance For Which There Was Insufficient Information to Conclude Whether the Substance Constitutes a Danger to the Environment Waste/Used Crankcase Oils.

in 9 provinces and 3 territories. Please refer to Table 1B in the Appendix. Alberta is the only province which currently allows for the application of UCOs as a dust suppressant according to provincial guidelines. 3.3 Controls prohibiting the open burning and restricting use as a fuel UCOs may be burned directly as a mixture with other fuel oils or by themselves in a variety of combustion units including boilers, engines, furnaces, incinerators, turbines, power plants, cement kilns, manufacturing facilities (asphalt, steel, etc.) and space heaters (i.e. residential, commercial, industrial). All provinces and territories prohibit open burning of UCOs and regulate its use as a fuel. The regulations on using UCOs as a fuel vary slightly across the country. All provinces require permits for burning UCOs as a fuel. There are maximum contaminant levels that UCOs must meet to be burned, and requirements for the type of burners used. In some jurisdictions, small businesses that generate their own used oil are able to register to enable burning the UCOs as a fuel, exempting them from the permits required by larger sites. Please refer to Table 3A in the Appendix. 3.4 Controls applicable to the re refining and re processing of used oils are in place Re processing is a method whereby simple physical and/or chemical treatments are applied to remove the basic contaminants in used oil. Unlike re refining, the objective of re processing is to clean the oil so that it can be utilized for less demanding applications, not to produce a product comparable to virgin oil. The performance of re refined crankcase oils is considered equivalent to virgin crankcase oils. Re refining typically involves the physical and/or chemical treatments used for re processing followed by other more complex processing such as acid/clay treatment, vacuum distillation/clay polishing, vacuum distillation/hydrotreating and chemical demetallization/distillation/hydrotreating. The capacity for re refining and re processing of UCOs varies widely across the country, mainly attributed to the availability of facilities and feasibility based on volume. Of the 10 provinces, all legislation allows for re refining of UCOs. Permits are required for handling UCOs in this manner, under Activities designations in many provinces. There are re refining facilities in all the provinces except Québec, Prince Edward Island and Newfoundland and Labrador. The territories have geographical and volume challenges to overcome with respect to re refining of UCOs. All three territories allow for re refining, and facilities would require authorization to operate. There are no re refining facilities located in the territories. Please refer to Table 4A in the Appendix. 3.5 Used Oil Collection Programs There are programs in place for collecting used oil in all of the provinces and territories, with some programs mandatory and others voluntary. Please refer to Table 5A in the Appendix. 3.5.1 British Columbia, Alberta, Saskatchewan, Manitoba, and Québec British Columbia, Alberta, Saskatchewan, Manitoba, and Québec have used oil associations, mandated by provincial legislation, that are members of the Used Oil Management Association.

These associations are responsible for facilitating and increasing the collection, management and recycling of used oil material which includes used oil, used filters, and used oil containers. Membership in these associations encompasses representatives of wholesalers and first sellers of lubricating oil products. There are government approved collectors and processors of the UCOs. Québec is the only province or territory with recovery and reclamation targets set out in their regulations. Sections 5 through 7 of the Regulation respecting the recovery and reclamation of used oils, oil or fluid containers and used filters establish rates of recovery for 2005 and 2008. Products are delivered to processors by collectors, who are required to submit detailed reports on the origin and quantity of products collected. Each of the provincial associations produces an annual report quantifying the amount of oil, filters and oil containers recycled. Table 3.5.1 shows the reported recovery rates from 2009 for the five associations. The target rates for 2009 set by Québec for the three categories of material were: Used Oil 75% Used Oil Filters 75% Used Oil Containers 75% Table 1: Reported recovery percentages from 2009 for the Used Oil Management Associations from British Columbia, Alberta, Saskatchewan, Manitoba and Québec. 2009 Reported Recovery Rate Used Oil Used Oil Filters Used Oil Containers British Columbia Used Oil 76.9% 90.4% 80.8% Management Association Alberta Used Oil Management 83% 91% 85% Association Saskatchewan Association for 77% 78% 65% Resource Recovery Corporation Manitoba Association for 70% 77% 49% Resource Recover Corporation Société de gestion des huiles usagées 98.9% 88.1% 87.6% 3.5.2 Ontario Used oil material, including used oil filters and containers, was designated in 2003 under The Waste Diversion Act (2002). A diversion plan for used oil material was developed by Waste Diversion Ontario. Ontario has several mechanisms for collecting UCOs and related materials. A collection program has been in place for UCOs from commercial generators, with a collection rate estimated at 78%, according to a study done for the Ontario Waste Management Association and the Ontario Used Oil Management Association in 2004 2. UCOs generated by consumers are collected 2 Klaassen & Associates Inc., OWMA/OUOMA Used Oil Study (Ontario), March 14 2004

through the municipal household hazardous waste program. Used oil filters and containers are part of the consolidated Municipal Hazardous or Special Waste (MHSW) program. The MHSW delivered an annual report on the first year of collection of oil filters and containers for July 1, 2008 to December 31, 2009. The target for oil filters was 65%, collection rate was 39.6%; the target for oil containers was 30%, collection rate was 19.1%. The low rate of collection for oil filters has been attributed to an overstatement of the weight of oil filters available for collection, and processing incentives for containers have been adjusted to try to improve the under achieving rate of collection for oil containers. 3.5.3 Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador all have used oil regulations in place for UCO collection. The four provinces have very similar regulations with respect to collection facilities. Vendors of lubricating oil are required to collect UCOs at their facility or contract with another facility within a specific radius to collect UCOs. In addition, retailers must post information about the nearest collection facility. All collection facilities must keep a record of oil received. There are no programs legislated for the recovery of oil filters or containers. New Brunswick reviewed its current regulations and determined that significant changes were required. These changes relate to the reporting of quantities sold versus quantities recovered, the effectiveness of the program and overall reporting. It is the intention of the new regulations to model a system based on the regulations in British Columbia, Alberta, Saskatchewan, Manitoba, and Québec, with an industry managed collection system that includes filters and containers. These changes are anticipated in 2011. 3.5.4 Yukon, Nunavut and the Northwest Territories Yukon, Nunavut, and the Northwest Territories face geographical and logistical challenges when implementing a UCO collection system. The sparse population and large land area pose difficulties unique to the region. A pilot program was completed in the Yukon but a permanent program has not been implemented. Used oil is collected as part of their special waste collection for Yukon businesses. Some Nunavut communities have programs for collection and storage. Used oil recovery in the Northwest Territories is encouraged but not mandated. 4 Summary and Conclusions Based on evaluation against the five criteria that represent the sources of exposure of concern for UCOs, results indicate that the provinces and territories have adequate risk management measures in place. All provinces and territories have designated UCOs as a hazardous waste and disposal is prohibited to land, landfill and sewers under that designation. The accessibility of recovery programs across the country reduces the likelihood of illegal disposal to land, landfills and sewers. All provinces and territories ban the use of used oil as a dust suppressant, with the exception of Alberta. Permission must be granted for use in Alberta by the provincial government. Open burning of UCOs is prohibited across the country, with burning as a fuel restricted in each jurisdiction under air quality regulations. Provinces with re refineries and re

processing facilities have regulations in place requiring operating permits which control air quality issues. Used oil collection programs exist in all the provinces, and in some communities in the territories. The five provinces (British Columbia, Alberta, Saskatchewan, Manitoba, Québec, and Ontario), who have reported on recovery rates, represented 94% of domestic sales of lubricating oils and greases in 2009 3 while the territories and the Atlantic Provinces represented 6%. A minimal national recovery rate for UCOs of 77% was achieved in 2009 (assuming the Ontario recovery rate for 2009 is the same as in 2004) even without taking into account the quantities of UCOs recovered in Atlantic provinces and the territories. The national recovery rate exceeds the only legislated recovery target in Canada: Québec s target of 75% for 2009. Therefore, in light of the fact that the provinces and territories continue to have in place risk management measures for UCOs, which include prohibitions for land, landfill and sewer disposal of used oils; permits or approval systems to control burning of used oils; prohibitions or guidelines for use of used oils in dust suppression; controls for used oil re processing and rerefinery operations; and programs to collect and manage used oil, Environment Canada maintains the position that no further action is needed on the management of UCOs. 3 Statistics Canada, 2010, The Supply and Disposition of Refined Petroleum Products in Canada, Catalogue no. 45 004 X, vol. 65, no. 9, Tables 1 1 through 1 14.

Appendix A Table A1 Controls prohibiting disposal to land, landfill and sewers Province/Territory Disposal to land, landfill and sewer Regulation (if applicable) Newfoundland and Labrador Prohibited Used Oil Control Regulation 2002 Nova Scotia Prohibited Used Oil Regulation, New Brunswick Prohibited Used Oil Regulation Prince Edward Island Prohibited Used Oil Handling Regulation Québec Prohibited Regulation respecting hazardous materials; Regulation respecting the landfill and incineration of residual materials Ontario Prohibited Regulation 347 (General Waste Management) Manitoba Prohibited Waste Disposal Grounds Regulation Saskatchewan Prohibited Used Oil Collection Regulation, Municipal Refuse Management Regulation Alberta Prohibited Waste Control Regulation British Columbia Prohibited Hazardous Waste Regulation Yukon Prohibited Special Waste Regulation Northwest Territories Prohibited Used Oil and Waste Fuel Regulation Nunavut Prohibited Environmental Protection Act

Table A2 Controls prohibiting the use of used oils as a dust suppressant Province/Territory Use as a dust suppressant Regulation (if applicable) Newfoundland and Labrador Prohibited Used Oil Control Regulation 2002 Nova Scotia Prohibited Used Oil Regulation New Brunswick Prohibited Used Oil Regulation Prince Edward Island Prohibited Used Oil Handling Regulation Québec Prohibited Regulation respecting hazardous materials Ontario Prohibited Regulation 347 (General Waste Management) Manitoba Prohibited Dangerous Goods Handling and Transportation Act Saskatchewan Prohibited Hazardous Substances and Waste Dangerous Goods Regulation, Used Oil Collection Regulation Alberta Allowed Interim Guidelines for the Application of Used Oil or Waste Refined Oil to Road Surfaces for Dust Control British Columbia Prohibited Hazardous Waste Regulation Yukon Prohibited Special Waste Regulation Northwest Territories Prohibited Used Oil and Waste Fuel Regulation Nunavut Prohibited Environmental Protection Act

Table A3 Controls prohibiting open burning and restricting use as a fuel Province/Territory Newfoundland and Labrador Open Burning Burning as a fuel with restrictions Regulation (if applicable) Prohibited Allowed Used Oil Control Regulation 2002, Air Pollution Control Regulation 2004 Nova Scotia Prohibited Allowed Used Oil Regulation, Air Quality Regulation New Brunswick Prohibited Allowed Used Oil Regulation, Air Quality Regulation Prince Edward Prohibited Allowed Air Quality Regulation Island Québec Prohibited Allowed Regulation respecting hazardous materials Ontario Prohibited Allowed Regulation 347 (General Waste Management) Manitoba Prohibited Allowed Gas and Oil Burner Act Saskatchewan Prohibited Allowed Clean Air Regulation Alberta Prohibited Allowed Draft Code of Practice for Energy Recovery British Columbia Prohibited Allowed Hazardous Waste Regulation Yukon Prohibited Allowed Special Waste Regulation Northwest Territories Prohibited Allowed Used Oil and Waste Fuel Regulation Nunavut Prohibited Allowed Environmental Protection Act

Table A4 Controls applicable to the re refining and re processing of used oils Province/Territory Re refining & reprocessing Regulation (if applicable) Newfoundland and Labrador Controlled Used Oil Control Regulation 2002 Nova Scotia Controlled Activities Designation Regulation New Brunswick Controlled Used Oil Regulation, Air Quality Regulation Prince Edward Island Controlled Used Oil Handling Regulation Québec No controls Article 70.9 paragraphe 2 de la Loi sur la qualité de l environnement Ontario Controlled Regulation 347 (General Waste Management) Manitoba Controlled Waste Reduction and Prevention Act Saskatchewan Controlled Environmental Management and Protection Act, Clean Air Act Alberta Controlled Activities Designation Regulation British Columbia Controlled Local Air Regulations Yukon Controlled Special Waste Regulations Northwest Territories Controlled Used Oil and Waste Fuel Regulations Nunavut

Table A5 Used oil collection programs Province/Territory Newfoundland and Labrador Used Oil Recovery Mandatory Legislation/Regulation Used Oil Control Regulation 2002 Details Sellers are required to accept used oil or provide alternative Nova Scotia Mandatory Used Oil Regulations Sellers are required to accept used oil or provide alternative New Brunswick Mandatory Used Oil Regulation Sellers are required to accept used oil or provide alternative Prince Edward Island Mandatory Used Oil Handling Regulations Québec Mandatory Regulation respecting the recovery and reclamation of used oils, oil or fluid containers and used filters Ontario Encouraged Manitoba Mandatory Used Oil, Oil Filters and Containers Stewardship Regulation Saskatchewan Mandatory Used Oil Collection Regulations Alberta Mandatory Lubricating Oil Material Recycling and Management Regulation Sellers are required to accept used oil or provide alternative Managed by the Société de gestion des huiles usagées Managed by Manitoba Association for Resource Recovery Corporation Managed by Saskatchewan Association for Resource Recovery Corporation Managed by the Alberta Used Oil Management Association British Columbia Mandatory Recycling Regulation Managed by the British Columbia Used Oil Management Association Yukon Allowed Yukon Environment Act Pilot program completed Northwest Encouraged No program in place Territories Nunavut Allowed Community programs for collection and storage