REGULATIONS AFFECTING THE METAL FINISHING INDUSTRY IN CANADA

REGULATIONS AFFECTING THE METAL FINISHING INDUSTRY IN CANADA P. J. Paine M. Eng. , P. Eng. Tel: (613) 722 - 9029 Cell: (613) 884 - 9029 pjpinc@rogers. com www. pjpaine. com PJ P SUR/FIN September 2006 SUR/FIN 2006 Tuesday 19 September 2006 Milwaukee, WI

PRESENTATION OUTLINE • Canadian Legislation: Development • Federal Regulations - Solvent Degreasing - Environmental Emergency - National Pollutant Release Inventory - Chromium Electroplating • Provincial Regulations - Quebec - Ontario Regulation 419/05 • Municipal Regulations - Toronto Sewer use Bylaw PJ P SUR/FIN September 2006 2

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CANADIAN LEGISLATION DEVELOPMENT • Canada: Nationhood established in 1867 by the CONSTITUTION ACT of 1867 • CONSTITUTION ACT of 1867 and 1982 divided power between the federal and provincial governments (“province” includes “territory”) • Concept of “Environmental Protection” is not found in the CONSTITUTION ACT 1867. (This is a post WWII 20 th Century concept. • CONSTITUTION ACT of 1982 retains the division of powers (established earlier) between federal and provincial governments • Federal and Provincial Government: Infer their power to protect the environment from constitutional authority PJ P SUR/FIN September 2006 4

CANADIAN LEGISLATION • FEDERAL GOVERNMENT AUTHORITY: - Criminal Law - Peace, Order and Good Government - Coast and Inland Fisheries - International / Interprovincial Trade and Commerce - Navigation and Shipping - Census and Statistics - Federal Works and Federal Lands - Aboriginal Peoples and Lands • FEDERAL LEGISLATION - THE CANADIAN ENVIRONMENTAL PROTECTION ACT( 1988, 1999) - THE FISHERIES ACT (1868) PJ P SUR/FIN September 2006 5

CANADIAN LEGISLATION DEVELOPMENT • PROVINCIAL GOVERNMENT authority extends to: - Natural resources - Local and Private Works - Civil and Property Rights - Provincial Lands • PROVINCES can make provincial regulations (e. g. Point of Impingement for Ontario) • Municipalities allowed by the Supreme Court of Canada to make legislation (e. g. Sewer Use Bylaw - Toronto; Pesticide Ban-Hudson, Que. ) PJ P SUR/FIN September 2006 6

Canadian Federal Legislation • Canadian Environmental Protection Act, 1999. Declaration: It is hereby declared that the protection of the environment is essential to the well-being of Canadians and that the primary purpose of this Act is to contribute to sustainable development through pollution prevention PJ P SUR/FIN September 2006 7

• • 1 Canadian Federal Legislation: History (1 of 2) Department of Environment – Environment Canada: 1972 Command Control: Effluents; Air; Solid Waste Fisheries Act 1; Clean Air Act; Environmental Contaminants Act; Canada Waters Act; Ocean Dumping Control Act Canadian Environmental Protection Act (1988): realization that environment is sum of components and interaction between components “Environment” means the components of the Earth and includes: (a) air, land water (b) all layers of the atmosphere (c) all organic and inorganic matter and living organisms (d) the interacting natural systems that include components referred to in paragraphs (a) and (c) Philosophy of LIFE CYCLE MANAGEMENT of substances in the ascendancy CEPA ’ 88: Environmental Protection; Enforcement Power; 5 year Review [Metal Finishing Liquid Effluent Guidelines, 1977. ] PJ P SUR/FIN September 2006 8

Canadian Federal Legislation: History (2 of 2) • 1992: UN Conference on Environment and Development (Rio de Janeiro) • PRECAUTIONARY PRINCIPLE (PP): “Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation”. • 1995: POLLUTION PREVENTION (P 2) adopted as main approach to dealing with environmental problems • CEPA 99: PP, P 2, LCM are Strategies for dealing with “Toxics” and refer to the Manufacture, Use, Import, Release to Environment, Transport, Sale and Disposal. PJ P SUR/FIN September 2006 9

FR: SOLVENT DEGREASING REGULATIONS • SOR / 2003 - 283 24 July, 2003 • Reduce releases of TRICHOROETHYLENE(TCE) and TETRACHLOROETHYLENE (PERC) from solvent degreasing facilities using more than 1, 00 kg of TCE and PERC per year. • SDR use a “ market intervention” approach by establishing consumption units (CU) for use of TCE and PERC. • Not a MACT based Regulation PJ P SUR/FIN September 2006 10

FR: SOLVENT DEGREASING REGULATIONS • CU: means each kilogram of the solvent that may be used in a degreasing process in excess of the threshold (1000 kg) • CU issued for a given solvent and specific degreasing process (using over 1000 kg/year) • CU to take affect 01/01/2004 • CU is based on average solvent consumption from 1994 -2002 and which is calculated for up to a three year averaging period. (The averaging period depends on years of use. ) • The CU (once issued) is the allowable amount of solvent (kg/year) for a given company • By 2007 the CU (for a given company) is to decrease 65%. PJ P SUR/FIN September 2006 11

FR: SOLVENT DEGREASING REGULATIONS THE “CONSUMPTION UNIT” • CU can be transferred between companies • CU can be retired (once retired the company specific CU shall not be reissued) • Appropriate forms required for establishing a CU, transferring a CU and retiring a CU. • Annual “Solvent Consumption Report” required (solvent; degreasing process: consumption - kg/yr; CU; total quantity of solvent; solvent supplied; solvent transferred; solvent reclaimed on-site) PJ P SUR/FIN September 2006 12

FR: ENVIRONMENT EMERGENCY REGULATIONS • SOR/2003 -307 20 August, 2003 • Outcome from 9/11 • Environmental Emergency (s. 193, CEPA 1999) “ An uncontrolled, unplanned or accidental release in contravention of regulations made under S. 193, of a substance into the environment, or in the reasonable likelihood of such release into the environment” “ The EER ensure environmental protection by promoting the prevention of, preparedness for , response and to recovery from environmental emergencies at fixed facilities, from the accidental release of flammable or other hazardous substances” (ref: RIAS) • The EER applies to any company having the charge, management or control of a “ substance”, based on the concentration and total amount of the “substance” PJ P SUR/FIN September 2006 13

FR: ENVIRONMENT EMERGENCY REGULATIONS The EER requires a company to: (1) Provide notification of “ substance” present on site - 174 substances (flammable and hazardous) in schedule 1 (2) Determine that the total quantity of “substance” at any time during the calendar year is not to exceed a specified amount - substance can be in storage or in use - substance can be stored separately or stored in one container. ( Note: Inventory exemptions based on storage time and quantity) (3) Prepare EE Plan (notification) (4) Implement and test an “environmental Emergency Plan” for the “substance”. (Test annually) (5) Update the EE Plan PJ P SUR/FIN September 2006 14

FR : ENVIRONMENT EMERGENCY REGULATIONS The Environmental Emergency Plan is to consider: - Description of “substance” - Maximum expected quantity at any time (calendar year) - Manufacturing/Processing operations - Site characteristics (enhance risk to environment / health) - Potential consequences of an environmental emergency PJ P SUR/FIN September 2006 15

FR : ENVIRONMENT EMERGENCY REGULATIONS The Environmental Emergency Plan must include: - Identification of any environmental emergency that can reasonably be expected to occur ( at the site) and harm the environment - Description of measures to be used to prevent, prepare for, respond to and recover from any environmental emergency. - List of individuals to carry out the EE Plan (roles and responsibility) - Training required - List of emergency response equipment - Measures taken to notify public Contact: Mr. John Shrives (819) 997 -3580 or John. Shrives@ec. gc. ca PJ P SUR/FIN September 2006 16

FR : NATIONAL POLLUTANT RELEASE INVENTORY (NPRI) • The NPRI is a data base containing information on annual onsite releases of specific substances to air, water and land, as well as off-site transfers for recycling that originate from industrial and institutional sources. • NPRI reporting is a legal requirement (CEPA 1999, s. 46(1) ) • NPRI tracks 323 substances • NPRI substances are grouped into 5 parts based on their reporting criteria. • Additional substances are anticipated by 2007 with post categorization of the domestic substances list. • NPRI is managed by Environment Canada (www. ec. gc. ca/npri) PJ P SUR/FIN September 2006 17

FR : NATIONAL POLLUTANT RELEASE INVENTORY (NPRI) NPRI Groups 1 a) Core Substances (*) b) Alternate Threshold Substances (*) 2) Polycyclic Aromatic Hydrocarbons 3) Dioxins, Furans and Hexachlorobenzene 4) Criteria Air Contaminants (*) These groups have different reporting criteria (*) denotes impact on MFI PJ P SUR/FIN September 2006 18

FR : NATIONAL POLLUTANT RELEASE INVENTORY (NPRI) 1 a) Core Substances • Substances have to be manufactured processed or otherwise used in a quantity of 10 tonnes or more and employees (including contractors) worked 20, 000 hours or more • Acids: Hydrochloric; Nitric; Sulphuric • Metals: Ag; Co; Cr; Cu; Ni; Zn (“and its compounds”) • Cyanides (ionic) • Aluminum (fume or dust) • Others: Styrene; Methanol; Benzene; etc… PJ P SUR/FIN September 2006 19

FR : NATIONAL POLLUTANT RELEASE INVENTORY (NPRI) 1 b Alternate Threshold Substances • Substances have to be manufactured, processed or otherwise used in a quantity of : 50 kg or more and employees (including contractors) worked 20, 000 hours or more • Arsenic (“and its compounds”) • Hexavalent Chromium Compounds • Lead (excludes lead in stainless steel, brass or bronze alloys) • Tetraethyl Lead • Substances……. . 5 kg or more and…. . 20, 0000 hours or more - Cadmium (“and its compounds”) - Mercury (“and its compounds”) PJ P SUR/FIN September 2006 20

FR : NATIONAL POLLUTANT RELEASE INVENTORY (NPRI) 2. Polycyclic Aromatic Hydrocarbons (PAH’s) • PAH’s incidentally manufactured and released, disposed or transferred in a combined quantity of 50 kg or more and employees (including contractors) worked 20, 000 hours or more • Wood preservation facilities must report regardless of release quantity. • 17 PAH’s Examples: Benzo(a)anthracene; Benzo(a)pyrene; etc… Fluoroanthene; Phenanthene • Facilities: Pulp and Paper; Oile and Gas: Power Stations: Wood Preservation; Cement PJ P SUR/FIN September 2006 21

FR : NATIONAL POLLUTANT RELEASE INVENTORY (NPRI) 3. Dioxins, Furans and Hexachlorobenzene • Substances have to be reported if facility is engaged in one or more of: - Incineration - Metal Smelting - Iron and Steel - Cement - Chlorinated Solvent Production - Power Generation - Pulp and Paper Manufacturing - Wood Preservation • • • Hexaclhorobenzene Dioxins( polychloronated dibenzo-p-dioxins) Furans (polychlorinated dibenzofurans) ( 17 congeners) PJ P SUR/FIN September 2006 22

FR : NATIONAL POLLUTANT RELEASE INVENTORY (NPRI) 4. Criteria Air Contaminants • • • Releases to air from Stationary Combustion Equipment Seven CAC’s Always more than 20, 000 employee hours (a) 20 tonnes or more: CO; NOx; SO 2; TPM (< 100 microns) (b) 10 tonnes or more: VOCs (Includes all substances that meet the definition of VOC) (c) 0. 5 tonnes or more: PM 10 (d) 0. 3 tonnes or more: PM 2. 5 PJ P SUR/FIN September 2006 23

FR : CHROMIUM ELECTROPLATING, CHROMIUM ANODIZING and REVERSE ETCHING REGULATIONS • • • Regulation expected December 2006 Applies to any facility using chromic acid to carry out hard chromium electroplating, decorative chromium electroplating and chromium ( chromic acid) anodizing Does not apply to any facility using less than 50 kg chromium trioxide per year The “Chromium” Regulation allows three approaches for compliance - Point Source Emission Limit - Surface Tension (ST) - Closed Cover (EEDs) Regulatee to notify EC which approach used and for ST which equipment to be used PJ P SUR/FIN September 2006 24

FR : CHROMIUM REGULATION Point Source Emission Limit • Release limit: 0. 03 mg/dscm, within 30 months of promulgation of regulation • Release test: performed for each point source during representative operating conditions • Release testing required every 5 years (on-going testing) • Reporting and Recording requirements • Equipment Maintenance Plan • Inspection Plan Note: Release test also required within 60 days of any of: replacing a control device; changing the number of tanks; mechanical changes to tank ventilation system; addition to /replacement of ductwork with tank PJ P SUR/FIN September 2006 25

FR: CHROMIUM REGULATION Surface Tension • Maintain surface tension below specified value for each tank • Measure and record ST every 24 hours for each tank • Stalagmometer: 45 dynes/cm • Tensiometer: 35 dynes/cm • Release test is not required • Reporting and recordkeeping requirements • Maintenance Plan: additions to bath • Tank not used for more than 24 consecutive hours requires ST measurement before starting • ST results to be submitted to EC on 6 month basis PJ P SUR/FIN September 2006 26

FR : CHROMIUM REGULATION Closed Covers • Developed in late 1980’s before EPA MACT • “Merlin Cover” and “Chrome Dome” • Emission Elimination Device (EEDs) • Palm International Inc - Supplier • USA : 5 -10 installations (approx. to date) • EEDs suitable only for hard chromium plating and possibly anodizing • EEDs use a tank adaptor and cover with openings for bus bars, agitation, tank evacuation • Tank cover incorporates a PTFE membrane (0. 1 micron) for hydrogen and oxygen egress • Membrane area sized according to amperage • Filters and membranes to be replaced at specified intervals PJ P SUR/FIN September 2006 27

FR: CHROMIUM REGULATION Closed Covers • Regulation allows 6 months to install and comply • Regulation states the components of the cover ( seals; membrane; evacuation device) • Inspection and Maintenance at end of daily operation or each plating cycle • Compliance Test: Smoke test to be conducted every 3 months to ensure no leakage from seals and gaskets • Continuous Compliance: Visual inspection of membrane during plating (concave up) and evacuation ( concave down) PJ P SUR/FIN September 2006 28

ENVIRONMENT CANADA AND US EPA MACT RELEASE LIMITS Canada US • 0. 03 mg / dscm • 0. 015 mg / dscm • 0. 01 mg / dscm • Regular release Testing and results to Reg Authority • One Release Test • Pressure Drop not used • Pressure Drop is the Compliance Parameter • No distinction between Large/Small or Old/New • Release Limits = F( size, age) PJ P SUR/FIN September 2006 29

ENVIRONMENT CANADA AND US EPA MACT SURFACE TENSION Canada US • • ST < 45 dynes/cm (Stalag) ST< 35 dynes/cm (Tensio) • ST < 45 dynes / cm (Stalag) ST< 35 dynes / cm ( Tensio) • Surface Tension measured once per day per tank • ST can be measured once per 4 h to 40 h • Fume Suppressant for Hard Chrome • MACT Amended to Include • Closed Covers • No distinction between Hard, Dec, Anodizing • Emission Limits different for Hard, Dec, Anodizing PJ P SUR/FIN September 2006 30

PROVINCIAL REGULATIONS: QUEBEC • • • Environmental Quality Act: Air Quality Regulation Gazette Officielle du Québec: 16/Nov/2005, Vol. 137, No. 46 Draft Regulation released for 60 day comment period. FEATURES: • Emission limit values for contaminants • Requirement to install continuous emission measuring (where applicable) and recording equipement • Implement emission monitoring measures • Mandatory sampling follow-up PJ P SUR/FIN September 2006 31

PROVINCIAL REGULATIONS: QUEBEC INDUSTRIAL SOURCES: • Aluminium Smelters • Cement Plants • Steel Mills • Wood Industry • Asbestos Industry • Lead Industry • Petroleum Refineries adn Petrochemical Plants • Treatment of Metallic Surfaces (i. e. electroplating) • Iron Ore Pelletizing Plants • Ferro-Alloy Plants • Copper or Zinc Producing Industries PJ P SUR/FIN September 2006 32

PROVINCIAL REGULATIONS: QUEBEC Treatment of Metallic Surfaces: • Preparation of metallic surfaces by picking, etching and chemical or electrochemical methods. • Emission limits not to be exceeded: a) Inorganic acid (not chromic)……. 10 mg/Rm³ b) Hexavalent chromium…………… 0. 9 (promulgation date) 0. 2 (+ 6 months) 0. 03 (+ 30 months) • Initial testing within 6 months after applicable dates • Source testing for chromic acid: once every 5 years • Retain data for 4 years (minimum) • Promulgation date is not known. Contact: M. Martin Lecours ( 418) 521 -3813 ext. 4973 PJ P SUR/FIN September 2006 33

PROVINCIAL REGULATIONS: ONTARIO • Ontario Regulation 419/05 Air Pollution- Local Air Quality • Promulgated: 30 November 2005 • Regualtion 419 replaced regulation 346 ( General Air Pollution) • Regulation 419 phases in new dispersion models MAIN FEATURES of REG. 419 • Effects based air quality standards, based on health and environmental effects ( rather than technical or economic considerations) • Standards are performance based: does not prescribe a means to achieve standards. • New Air Dispersion Model (US EPA AERMOD) • Phase-in of new standards and models (phase-in is earlier for target groups of industrial sectors) • A new risk-based regulatory mechanism to create alternate standards ( address technical or economic implementation issues on a site specific basis • Certificate of Approval (Cof. A) required PJ P SUR/FIN September 2006 34

PROVINCIAL REGULATIONS: ONTARIO Elements of Regulation 419 • Air Qualilty Standards (AQS) based on health and environmental effects • More stringent AQS for 29 air contaminants • New lower ½ hour Point of Impingement (POI) values - Acrylonitryle 180 ug/m³ to 1. 8 - Ammonia 3, 600 ug/m³ to 300 • Emission Summary and Dispersion Modelling (ESDM) Compliance Reports required to show POI compliance • ESMD achieved by : - Stack Measurements - Mass Balance - Emission Factors (AP - 42) • New US EPA dispersion models for ESDM (replaces older ISC model) • New Models: AERMOD; ISCSTS; ISCPRIME; SCREEN 3 • Public Access to C of A PJ P SUR/FIN September 2006 35

PROVINCIAL REGULATIONS: ONTARIO Elements of Regulation 419 ( continued) • Industry (Targeted Sectors) are grouped in schedule 4 & 5 • Schedule 4 industries ( Mining; Power Generation; Refining; Chemical Manufacturing; Resins; Iron& Steel, Non Ferrous Smelting; Foundries) 2010 phase in date for ESDM • “ Fabricated Metal Product Manufacturing” ( NAISC 332) is in Schedule 5 with 2013 phase in date • “Alternative Standards” allowed on grounds that lower POIs many create technical and economic implications for industry • Alternative Standards are based on technology and economic considerations • Sector based approaches (MFI) may be considered • New POI (proposed) for Cr 6+: 0. 1 ng/m³ PJ P SUR/FIN September 2006 36

MUNICIPAL REGULATIONS: TORONTO • • • City of Toronto Sewer By-Law (Municipal Code 681) Adopted 200 -07 -06 Strict limits on metals and (toxic) organic compounds POTW Sludge for Soil Conditioning Includes mandatory pollution prevention planning Target Sector for P 2 plans - MFI - Industrial Laundry - Gas Stations / Auto Repair - Photofinishing / Printing - Dental / Medical Labs - Soap and Detergent - Rubber and Plastics Sewer By-Law enforced and potential adoption in other Ontario cities PJ P SUR/FIN September 2006 37

MUNICIPAL REGULATIONS: TORONTO Sewer Use By-Law: Parameters BOD CN Al As Cd Cr 6+ Cr Co Cu Pb Ni Sn Zn NP NPEs A 300 mg/L 2 50 1 0. 7 2 4 5 2 1 2 5 2 0. 02 0. 2 A= Sanitary Sewer Discharge Limits PJ P SUR/FIN September 2006 B 15 0. 02 0. 008 0. 04 0. 12 0. 08 0. 04 0. 001 0. 01 B= Storm Sewer Discharge Limits 38

CONCLUDING REMARKS § § § § Federal, provincial and municipal regulations have impacted the MFI in Canada (and the US) Differences in regulatory approaches may cause problems Ontario POI for CR 6+ versus MACT limits Increased awareness of environmental “toxics” by regulatory authorities (PFDS; Telomers; NPEs, Ni, Co, Cd, etc) Assessment of various substances on the DSL (Domestic Substances List) may lead to additional risk management approaches Changing chemistry in MFI…but up to a point Chromium Regulation: December 2006 promulgation Are we “Surviving and Thriving with Regulations”? PJ P SUR/FIN September 2006 39