Federal Court


Environmental Law


Failure to apply definition of hazardous recyclable material led to erroneous conclusion

ENFORCEMENT

Canada was party to international agreements that required controls on export and import and conveyance of hazardous products that might harm environment. Canada complied with agreements through Canadian Environmental Protection Act, 1999, and Exports and Import of Hazardous Waste and Hazardous Recyclable Material Regulations (Can.) (Export and Import Regulations). Respondent operated waste petroleum management facilities. VES supplied oil to respondent. Respondent delivered three to four million litres per year to Maine implicating Export and Import Regulations. Oil from VES was used oil from garages that performed oil changes and oil was not transformed prior to shipping to respondent. Product was not subject to any refining process apart from filtration, gravitational settlement and water removal. Respondent did not have permit to export used oil to United States. Notice of intent to issue environmental protection compliance order was issued to respondent. Order directed respondent to cease all export of controlled substance into United States until export permit was issued. Chief Review Officer set aside environmental compliance order finding product was recycled and reprocessed fuel and not subject to regulation. Appellant appealed. Appeal allowed. It was unclear what definition of hazardous recyclable material Chief Review Office applied in decision. Fact that intended use of substance was to be in one of forms of recycling contemplated by Export and Import Regulations did not mean it was recycled when it left respondent’s facility as Chief Review Officer concluded. Chief Review Officer’s failure to apply statutory definition of hazardous recyclable material led him to conclude erroneously that Export and Import Regulations did not apply to product exported by respondent. Had Chief Review Officer correctly applied statutory and regulatory definition, he would have found that product was hazardous recyclable material and upheld order.

Atlantic Industrial Services v. R.

(Aug. 5, 2014, F.C., Richard G. Mosley J., File No. T-1307-13) 244 A.C.W.S. (3d) 106.

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