Per- and polyfluoroalkyl substances (PFAS) are under increased regulatory scrutiny in Canada due to their potential environmental and health risks.
On July 27, 2024, Environment and Climate Change Canada (ECCC) released its PFAS Reporting Guidance Manual in response to a Section 71 Notice under the Canadian Environmental Protection Act (CEPA). This Notice requires businesses across various industries to report detailed information about their use, manufacture, and import of PFAS by January 29, 2025.
With this deadline fast approaching, businesses must familiarize themselves with these new PFAS reporting requirements to ensure compliance and mitigate the risk of environmental enforcement legal action and penalties.
Who Is Affected?
The Notice applies to any person who, in the calendar year 2023, satisfied any of the following criteria for substances listed under CEPA:
- manufactured a total quantity greater than 1000 g of a substance listed in Schedule 1
- imported a total quantity greater than 10 g of a substance listed in Part 1 of Schedule 1, OR a total quantity greater than 100 kg of a substance listed in Part 2 or Part 3 of Schedule 1, whether the substance was alone, or at a concentration equal to or above 1 ppm in a mixture or in a product or at a concentration equal to or above 1 ppm in one of the categories of manufactured items
- imported a total quantity greater than 100 kg of any substance listed in Schedule 1 at a concentration equal to or above 1 ppm in a manufactured item NOT listed in the categories of manufactured items, or
- used a total quantity greater than 10 g of a substance listed in Schedule 1, whether the substance was alone, or at a concentration equal to or above 1 ppm in a mixture or in a product, in the manufacture of a mixture, a product or a manufactured item.
ECCC’s PFAS Reporting Guidance Manual
The ECCC Guidance Manual assists businesses in complying with the Notice, outlining the PFAS covered, data required, and how to report accurately.
The Guidance Manual defines key terms such as “manufacture,” “import,” and “use in the manufacture of a good.” A “good” includes mixtures, products, and manufactured items, with examples provided for imported goods that fall within the reporting scope. Notably, the term “manufacture” covers both intentional and incidental (unintended) production of reportable substances. This distinction is crucial for businesses to understand, as it extends the reporting obligation to substances created as a byproduct of manufacturing processes, even if their production was not the primary objective.
Certain businesses and activities are exempt from the PFAS reporting requirements, including micro-businesses with fewer than five employees or less than $30,000 in annual gross revenue, and substances in transit, for personal use, or for specific regulated purposes.
To prepare for compliance, businesses should audit their operations to identify PFAS usage, verify whether the reporting obligations or exemptions apply, and collect accurate data on PFAS manufacture, importation, exportation and use. Comprehensive preparation is essential, as the Guidance Manual emphasizes accuracy and completeness in submissions.
Consequences of Non-Compliance
Failure to comply by January 29, 2025, could result in significant fines—up to $25,000 for individuals or $500,000 for large corporations for a first offense, with penalties doubled for repeat offenses. Non-compliance with the Notice also risks reputational harm and difficulties operating within Canada’s evolving regulatory framework.
Keeping informed about evolving PFAS regulations is essential for addressing future compliance requirements. Taking proactive steps now will enable your business to meet the new reporting obligations, mitigate the risk of penalties, and support Canada’s efforts to manage PFAS-related risks.
This blog post was written by Michael Hebert and Nathan Adams (primary author), members of the Mann Lawyers Environmental Law Group. Michael can be reached at 613-369-0360 or at michael.hebert@mannlawyers.com and Nathan at 613-369-0380 or at nathan.adams@mannlawyers.com.
