Canada Gazette, Part I, Volume 156, Number 52: Regulations Amending the Products Containing Mercury Regulations

December 24, 2022

Statutory authority
Canadian Environmental Protection Act, 1999

Sponsoring departments
Department of the Environment
Department of Health

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Mercury is a heavy metal that can be present in the environment in many different forms as a result of natural processes or human activity. Once in the environment, mercury can be carried over long distances in the atmosphere and deposited everywhere in Canada, including sensitive areas, such as the Canadian Arctic. Mercury can be transformed into a highly toxic, naturally occurring compound called methylmercury, which bioaccumulates in the aquatic food chain. Exposure to mercury is of higher concern in Canadian communities, such as those of Indigenous Peoples, who rely on the consumption of predatory fish and other traditional foods.

The Products Containing Mercury Regulations (the Regulations), which were published on November 19, 2014, and came into force on November 8, 2015, prohibit the manufacture and import of products containing mercury or any of its compounds. The Regulations include some exemptions for essential products that have no technically or economically viable alternatives, such as dental amalgam, lamps and certain scientific instruments. Since the publication of the Regulations, there has been an ongoing market decline of mercury-containing products in Canada and most lamps exempt from the general mercury prohibition now have readily available substitutes that are more energy efficient and mercury-free, such as light-emitting diode lamps (LEDs). There has also been a reported decline in other mercury-containing products that were manufactured or imported in Canada, according to data submitted to the Department of the Environment (the Department) during triennial mandatory reporting by organizations that imported or manufactured products containing mercury in Canada.

The Regulations do not fully align with all the requirements of the Minamata Convention on Mercury (the Convention), which Canada ratified in 2017. Adjustments to the allowable mercury content limits of three lamp products that are exempt from the general mercury prohibition in the Regulations are required to fully align with the Convention. Other amendments to the Regulations are proposed to align with recent industry standards and international regulatory initiatives. Further, ongoing administration of the Regulations has identified the need to clarify some provisions of the regulatory text, such as those related to labelling, testing, reporting, and record keeping.

Background

Mercury and its compounds are listed as toxic substances under Schedule 1 to the Canadian Environmental Protection Act, 1999 (CEPA), which enables the Department to propose and implement risk management instruments to reduce the risks to human health and the environment associated with mercury releases from anthropogenic (i.e. human-caused) sources. Over the past decades, the Government of Canada has undertaken numerous domestic and global actions to minimize or eliminate mercury releases and exposure. Canadian emissions of mercury are currently being managed through federal, provincial and territorial legislation, regulation, and programs.

Following the publication of the Regulations in November 2014, the Department released the Code of Practice for the Environmentally Sound Management of End-of-life Lamps Containing Mercury (the Code of Practice) in February 2017. The Code of Practice encourages lamp collectors, transporters, and processors to adopt best practices aimed at preventing mercury releases to the environment.footnote 1 The Code of Practice is a voluntary tool to complement existing provincial, territorial, and other initiatives, and to promote best practices for managing end-of-life mercury-containing lamps, including options for northern and remote areas with limited access to recycling and disposal facilities.

On August 16, 2017, the Convention came into force as a new international treaty. The Convention is a legally binding agreement under the United Nations Environment Program (UNEP) that focuses on global reduction of anthropogenic mercury emissions and releases. Canada signed the Convention on October 10, 2013, and ratified it on April 7, 2017.footnote 2 For the management of mercury, the Convention assesses the environmental impacts of mercury-containing products over their entire life cycle, and includes requirements for controls and reductions across a range of products, processes, and industries.

For example, the Convention includes measures to phase out the manufacture, import and export of certain products containing mercury above limits specified in the Convention by 2020, such as various fluorescent lamps, including linear fluorescent lamps (LFLs), cold cathode fluorescent lamps (CCFLs), and external electrode fluorescent lamps (EEFLs). At the time of ratification of the Convention, as a precautionary measure, Canada registered an exemption of five years past the 2020 phase-out date for the manufacture, import and export of these three categories of lamps to remain in compliance with the Convention in the event that regulatory amendments were not in force by 2020 due to changing regulatory priorities.

To prevent mercury pollution from lamps disposed of in landfills, the National Strategy for Safe and Environmentally Sound Disposal of Lamps Containing Mercury Act (the Act) was enacted and received royal assent on June 22, 2017. The Act required the Minister of the Environment (the Minister) to develop a national strategy by 2019 in cooperation with provincial, territorial, and other governments in Canada responsible for the environment to enhance existing activities related to eliminating lamps as a source of mercury pollution. The Minister is required to report to Parliament on the implementation of the Act every five years.

In July 2019, the Minister tabled the National Strategy for Lamps Containing Mercuryfootnote 3 (the National Strategy) in Parliament. The National Strategy aims to eliminate mercury pollution from lamps in Canada by ensuring bulbs containing mercury are collected and sent to specialized facilities for environmentally sound disposal, and by encouraging Canadians to buy mercury-free alternatives.

Background information on the effects of mercury exposure

Mercury is a naturally occurring chemical element that is persistent, bioaccumulative, and toxic at very low levels to human health and in aquatic and terrestrial ecosystems. It is found in three general forms: pure mercury (a heavy metal), also known as “elemental mercury” or “metallic mercury”; inorganic mercury compounds; and organic mercury compounds.

Mercury is a global contaminant because it is toxic and bioaccumulates (i.e. it does not break down in the environment, and can accumulate in living things). Mercury and its compounds (collectively referred to as “mercury”) are part of a global cycle and contribute to the formation of more harmful forms of mercury. Some microorganisms and natural processes change mercury from one form to another. For example, some types of bacteria and fungi can change mercury into its most toxic form, methylmercury. Methylmercury is a very harmful organic substance and is of particular concern since it tends to accumulate in living organisms through their surrounding environment as it moves up the food chain. For instance, methylmercury can build up in many edible fish (freshwater and saltwater) and marine mammals. The primary source of methylmercury exposure is through the consumption of fish or fish-eating species. This exposure can have degenerative effects with respect to brain development which can be particularly damaging to the development of young children and infants whose nervous systems are still developing.

Objective

The main objective of the proposed Amendments to the Products Containing Mercury Regulations (the proposed Amendments) is to protect Canadians by lowering the risk of mercury releases into the environment from lamps in Canada. By meeting this objective, the proposed Amendments would enable Canada to meet requirements for mercury-containing products under the Minamata Convention, and to go beyond the Convention by aligning the Regulations with other international initiatives, including requirements in the European Union (EU) and certain states in the United States (U.S.). In addition, these actions can encourage other countries to further reduce their mercury releases. The proposed Amendments also aim to clarify certain regulatory provisions to address recent administrative and implementation issues.

Description

The proposed Amendments would ensure the Regulations meet the requirements under the Convention and in some cases, go beyond what is required in the Convention to further decrease mercury releases.

Amendments to align the Regulations with the requirements under the Convention

Adjustment of mercury content limits allowed for certain exempted products

The proposed Amendments would lower the mercury content limit currently allowed for straight fluorescent lamps for general lighting purposes, cold cathode fluorescent lamps, and external electrode fluorescent lamps. For example, the mercury content limit for cold cathode fluorescent lamps that are 1.5 m or less in length would be lowered from 10 mg per lamp to 3.5 mg per lamp.

Adding an exemption end date for catalysts used in the manufacturing of polyurethane

The Convention aims for, but does not require, the phase-out of mercury-containing catalysts used in the manufacturing of polyurethane within 10 years of entry into force of the Convention. Considering there are known alternatives to mercury-containing catalysts and in alignment with other international initiatives, the proposed Amendments would add a prohibition date of January 1, 2028 for catalysts used in the manufacturing of polyurethane.

Other proposed amendments

Prohibition dates for certain mercury-containing products and replacement lamps

The proposed Amendments would end the exemption for most mercury-containing lamps under the Regulations, as there are now widely available mercury-free alternatives for these products. Most lamps for general lighting purposes would be prohibited by January 1, 2024, while high-pressure sodium vapour lamps for general lighting purposes would be prohibited by January 1, 2029.

For transition purposes, specified replacement lamps would be allowed for a 3-year period under the proposed Amendments to replace lamps that were already in use. The sale of these replacement lamps would be prohibited two years after their exemption expires, in order to avoid issues of stockpiling while allowing retailers to sell their stock. In addition, replacement bulbs for existing automobile headlamps would be allowed with no end date.

The proposed Amendments would also create three new categories of exempted lamps in the schedule. These three categories are lamps used for growing plants, lamps for water treatment and lamps for air treatment. These types of lamps are currently exempted under a broad category that covers all specialty lamps. The objective of creating these new categories is to prohibit the first new category (plant growing), starting in 2028. For the two other new categories (air and water treatment lamps), no prohibition is proposed at this time. Naming them in the exempted products would allow the Department to have a better understanding of the quantity of each lamp type manufactured and imported in Canada, since the catch-all category does not require reporters to provide this level of detail.

Replacement parts and clarification of scope of exemptions

The proposed Amendments would clarify when the exemption on replacement parts applies to the mercury-containing component of a product that has to be replaced and not the whole product. The proposed Amendments would also clarify that the exemption does not apply if the product is listed on the schedule of the Regulations. Similarly, the proposed Amendments would clarify the scope of other exemptions, including exemptions for laboratory analytical standard or reference material, as well as exemptions for pest control products.

Prohibition of other actual exemptions

The proposed Amendments would remove other exemptions for products no longer in use in Canada. They would also remove references to products whose exemption period has expired. The removal of these exemptions would enable Canada to align with the newly adopted phase-out of certain products under the Convention, including photographic film and paper. Removing the exemptions would also put Canada in a position to ratify recent amendments made to the Convention for some products.

Administrative changes

Some administrative provisions around testing, labelling, record keeping and reporting would be clarified and improved to facilitate the implementation of the Regulations. The proposed Amendments would broaden the accreditation bodies recognized under the Regulations to include signatories of the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement.

The timing of the mercury activity report submissions would be amended to align with the U.S. Environmental Protection Agency (EPA) reporting timeline, such that regulatees would be required to report on mercury-containing products in 2023, 2025 and triennially thereafter. Additional reporting would be required for manufacturers and importers of LFLs in 2026 and 2027 to provide data and assurance that the prohibition against mercury-containing LFLs is being met. Reporting and maintaining records on exported products would also become mandatory in order to gather data on the level of mercury in products that are exported from Canada.

The record-keeping requirements of the Regulations would also be updated to include a provision allowing records to be kept electronically. The proposed Amendments would also clarify labelling requirements and the scope of certain exemptions. Finally, under the proposed Amendments, a person in contravention of the manufacturing or importing requirements would have to ensure that the product is sent for final disposal or recycling at an authorized facility. If the product is imported, it could be returned to the facility from which it was imported or to the person who imported it. Failure to comply with this new stipulation could result in enforcement action.

Consequential amendments

Consequential amendments to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999) [Designation Regulations] would also be made as a result of the proposed Amendments. The Designation Regulations identify provisions of various regulations made under CEPA as being subject to an enhanced fine range in the event of a successful prosecution of an offence involving harm or risk of harm to the environment, or obstruction of authority. In this case, item 28 in the schedule of the Designation Regulations, which relates to the Products Containing Mercury Regulations, needs to be amended to include the new provisions in the proposed Amendments. Specifically, section 3.1 in the proposed Amendments, which describes an obligation to ensure proper disposal and recycling of a product in contravention of the manufacturing or importing requirements, would need to be reflected in the Designation Regulations.

Regulatory development

Consultation

The Department consulted the public on the proposed Amendments in 2018 and 2019. The intent of this consultation was to inform stakeholders of the main elements of the proposed Amendments at the time and provide them with an opportunity to submit comments. A consultation document outlining the initial proposed Amendments to bring Canadian requirements in line with the Convention, recent industry standards, and other international regulatory initiatives was published in February 2018. The Department published the consultation document online, which included a 60-day public comment period.footnote 4

An email was sent to stakeholders and other groups identified as being potentially involved or interested in the proposed Amendments to inform them of the publication of the consultation document and invite them to submit comments. This email was sent to industry and environmental non-governmental organizations (ENGOs); Indigenous groups and communities; provinces and territories; and other federal government departments. In addition to these consultations, the Department held follow-up discussions between 2018 and 2021 with key stakeholders that submitted comments and requested additional information.

Stakeholder groups, such as industry and ENGOs, and Indigenous Peoples, are generally supportive of the proposed Amendments; however, they noted some concerns.

Dental amalgam

Some associations of Indigenous Peoples and other stakeholder groups expressed concerns over the lack of proposed amendments for dental amalgam and the associated health risks. The groups pointed out that other countries have banned dental amalgams completely or partially, mercury-free alternatives are widely available, and the Convention requires a phase-out of dental amalgams. Therefore, some stakeholders believe an exemption should only be allowed for specific medical cases.

The Government of Canada supports the Convention’s phase-out approach to dental amalgam use and has met its obligations under the Convention through the implementation of various actions to minimize the need for dental restoration, reduce mercury releases to the environment from dental facilities, and restrict the use of dental amalgam to its encapsulated form. The reliance on dental amalgam in Canada has been declining steadily over the past decade, including a sharp 25% decline between 2016 and 2019. A further phase-out should occur in Canada with improved dental health promotion, disease prevention programs and further research into alternative restorative materials. Based on scientific evidence, including recent Canadian studies, the mercury that is absorbed from amalgams is not at a level of concern for most Canadians, regardless of the number of amalgam surfaces. The Government’s position is that the use of dental amalgams is safe and that mercury exposure from dental amalgams does not pose a health risk for the general population.

Lamps and replacement parts

Divergent comments were received regarding the transition from mercury-containing lamps to light-emitting diode (LED) lamps. A stakeholder mentioned that the December 31, 2023, proposed timeline to eliminate all lighting products containing mercury is too short and could result in unintended, negative consequences on the economy and the environment. Another stakeholder mentioned that lighting upgrades and LED retrofits are considered an easy win for all property types considering their payback period. The transition to mercury-free lighting was also of importance to Indigenous Peoples and Northern communities, as many of them lack proper waste processing and disposal centres. They recommend a phase-out of all mercury containing lamps.

The transition from mercury-containing lamps to LED technology has accelerated in the past few years. This proposed phase-out is similar to those happening globally such as in the EU. The Department’s analysis of benefits and costs estimates that the benefits to the environment and the economy of the conversion to mercury-free alternatives are greater than the costs.

There were some conflicting views amongst industry stakeholders concerning the substitutability of various products and proposed end dates, as well as some concern regarding the existing replacement part exemption. Some stakeholders commented on specific lamp categories and expressed concerns on the availability of replacement lamps. Other stakeholders commented that there are already existing mercury-free alternatives for lamps that are currently exempted. The comments were taken into consideration and the proposed Amendments were revised accordingly. In most cases, mercury-free alternatives are generally available for the most common types of lamps for general lighting purposes. However, the Department has researched and assessed technologically and economically viable alternatives to exempted mercury-containing products and the Government intends to keep removing exemptions where mercury-free alternatives are available on the Canadian market. The Department welcomes any further data on lamps with no viable alternatives, with detailed rationales and timelines as to why an exemption may be needed.

Administrative requirements

Some stakeholders commented on specific requirements, including labelling, reporting and record-keeping requirements. With regard to labelling, some stakeholders requested that labels of mercury-containing products be required to be larger and clearer to better inform public consumers of health risks, while other stakeholders indicated additional labelling requirements would be a burden. The 2017 findings of the National Strategy for Lamps Containing Mercury indicate that over 30% of consumers are not aware of the special handling and disposal required when purchasing products containing mercury, such as lamps. Therefore, the purpose of the proposed labelling requirements is to improve the level of awareness not only of these consumers, but also of the facility workers who are using or recycling products containing mercury. The proposed Amendments also aim to find a better balance between the information disclosed to consumers and recyclers on labels, and the space available on the product and its label.

Divergent comments were also received on proposed reporting and record-keeping requirements. Some stakeholders agreed with the proposal to require organizations to report on the quantity of mercury-containing products that they export, as it would contribute to the global understanding of mercury supply and movements that the Convention is trying to achieve. Other stakeholders commented that this new requirement would be an added burden. The purpose of the proposed new requirement to report on the quantity of exported products containing mercury is to allow for a national accounting of mercury in Canada. This information will also help Canada fulfill its national reporting requirements under the Convention to contribute to the global understanding of mercury supply and movements. Currently, many companies already voluntarily report on their exports during triennial reporting, and since products exported had to be imported or manufactured first, the proposed Amendments should not add a noticeable additional burden.

Other comments

As most products containing mercury are manufactured outside of Canada, some stakeholders commented that the Regulations should align with the regulations of other international jurisdictions to allow multinational companies to remain competitive. The Government of Canada’s aim with the proposed Amendments is to align with other jurisdictions, including the United States and the EU, where possible and practical.

The Department also received submissions from scientists that outlined their concerns regarding the need for exemptions for certain necessary mercury-containing reagents in laboratories. The Department is proposing a clarification to make it explicit that the proposed Amendments contain exemptions for laboratory analytical standard or reference material, which covers mercury-containing reagents. There is no intention to prohibit these products at this time.

Modern treaty obligations and Indigenous engagement and consultation

The Department has determined that the proposed Amendments would not impact modern treaties.

Seven major Indigenous organizations in Canada were consulted as part of the regulatory amendment process. One representative group submitted comments to the Department. Although the comments were generally supportive of the proposed Amendments, some concerns were raised over the lack of proposed amendments to the dental amalgam exemption.footnote 5 The issue of dental amalgams is discussed in more detail in the “Consultation” section.

Instrument choice

To meet the objectives outlined above, it was determined that the only viable option was to amend the Regulations. Non-regulatory options, such as voluntary agreements, were not considered.

Maintaining the status quo was not considered to be a viable option as this would not reduce the risk of exposure to toxic mercury compounds to the extent feasible. In addition, the administrative requirements for exempted products that are no longer manufactured or sold in the Canadian market would persist due to these products being listed in Schedule 1 of the Regulations. This would continue to impose an unnecessary burden on regulated parties to comply with the administrative requirements under the Regulations. For these reasons, maintaining the status quo was not considered.

Amending the current Regulations would decrease the risk of exposure to toxic mercury compounds, allow for an alignment with new provisions under the Convention, and ensure businesses are not bearing an unnecessary burden. In the absence of amended Regulations, it is unlikely that mercury levels in products would be reduced, or that mercury-containing products would be phased out as quickly, if at all.

Regulatory analysis

Benefits and costs

Summary of costs and benefits

From 2024 to 2033, the proposed Amendments would be expected to reduce the quantity of mercury released to the environment by 775 kg, including a reduction of 120 kg of mercury released to air. The cumulative discounted benefits of the proposed Amendments over the 10-year time frame of the analysis are valued at $4.11 billion, while the total discounted costs of the proposed Amendments are estimated to be approximately $353 million — these costs are associated with higher costs paid by consumers for switching to more expensive, mercury-free lamps. The benefits are broken down as follows: $695,500 due to the health benefits of avoided mercury releases to air; $25,000 in net administrative cost savings; $237.4 million in avoided greenhouse gas (GHG) emissions; and $3.87 billion in energy savings from switching to more energy efficient lamps. The overall quantified and discounted net benefits of the proposed Amendments are estimated to be $3.76 billion.

Analytical framework

To forecast the impact of the proposed Amendments, a studyfootnote 6 was commissioned for the Department in order to obtain data on lamp costs, historical sales, and projected sales of mercury-containing and LED lamps in Canada. The projected sales of lamps, in addition to the estimated input of mercury in lamps, was used in conjunction with the Department’s mercury mass balance model to estimate the avoided releases of mercury to the environment. The mass balance model provides estimates for percentages of mercury released to the environment (by air, water, or land) at each life cycle stage of a lamp — from manufacture through use, storage, transport, disposal, and recycling. This analysis followed the projected number of lamps sold in the baseline and regulatory scenarios through their life cycle to determine the avoided releases that would result from the proposed Amendments.

The incremental impacts contained in this analysis were calculated using a baseline and regulatory scenario approach. Where possible, all costs and benefits were quantified in 2021 Canadian dollars with a 3% discount rate where dollars are presented in present value terms. The analysis begins in 2024 and extends to 2033 for a 10-year time frame. Where it was not possible, or if sufficient information was not available to quantify the impacts of the proposed Amendments, impacts were instead described in qualitative terms.

Baseline scenario

The baseline scenario is developed under the assumption that the proposed Amendments to the Regulations are not implemented. This scenario is based on a study conducted for the Department that provided information on the price and quantity sold of each lamp type, both historically and forecast to 2035. This study contains data on fluorescent, high-intensity discharge (HID), incandescent, halogen, and LED lamps. Most of these lamps are for general lighting purposes and are therefore purchased by both industrial and household consumers. The sales of mercury-containing lamps are expected to decrease significantly in the baseline scenario, with fluorescent lamp sales in 2035 falling to approximately a quarter of their 2022 levels, and HID lamps for general lighting purposes being phased out by 2027.

Regulatory scenario

Under the regulatory scenario, manufacturers and importers of mercury-containing lamps are assumed to comply with the proposed Amendments and switch to mercury-free alternatives. The regulatory scenario in this analysis takes into consideration this switch to mercury-free alternatives (assumed to be LED lamps), including the 3-year period where the manufacturing and importation of replacements for most lamp types are permitted. This analysis assumes that the number of lamps sold remains constant, with only the type of lamp sold being changed for the first few years. However, in the later years of the analysis, the total number of lamps sold decreases due to LED lamps having longer lifespans than mercury-containing lamps and thus not needing to be replaced as frequently. The analysis assumes a 20-year average life for LED lamps, 7 years for compact fluorescent lamps (CFL), 10 years for LFL, and 5–8 years for HID lamps. Though the sale of all types of mercury-containing lamps is decreasing in the baseline scenario, this phase-out is accelerated in the regulatory scenario, where prohibition dates on new and replacement lamps are specified. This acceleration leads to both costs and benefits that are associated with the proposed Amendments. The benefits of switching to longer-lasting lamps are not fully captured in this analysis, as the period of analysis needed to fully capture these savings was not considered, given that the estimated benefits already considered in the analysis far exceed the estimated costs. The quantity of lamps forecast to be sold over the course of the analysis in each scenario is shown in the figure below.

Figure 1: Lamp sales in the baseline and regulatory scenarios

Figure 1: Lamp sales in the baseline and regulatory scenarios

Costs

There are expected to be incremental lamp purchase costs for some consumers, and minor incremental administrative costs for importers and manufacturers that would be offset by other administrative cost savings. No other costs have been estimated in this analysis.

Costs to manufacturers, importers, and consumers

The proposed Amendments would decrease the maximum quantity of mercury contained in some lamps manufactured or imported into Canada and would enforce a prohibition date for the manufacture and importation of mercury-containing lamps. It is not expected that manufacturers and importers would bear any additional capital costs associated with complying with the proposed Amendments. Lamp manufacturers are not expected to bear costs to comply with the mercury content limits, as Canada no longer manufactures the lamps that are subject to lowered limits in Schedule 1 of the proposed Amendments. There should be no additional costs for lamp importers since alternative products are already widely available on the Canadian market and the higher costs of LED lamps are expected to be passed on to consumers. There would be some administrative costs, but these are offset by cost savings. This is presented in the “Net administrative cost savings” section below. LED lamps are, on average, more expensive to purchase than their mercury-containing counterparts. They also have a much longer life — lasting, on average, 20 years, while most mercury-containing lamps have an average life of 5–10 years. Although sales of mercury-containing lamps are projected to decrease over time in the baseline scenario, the proposed Amendments would accelerate the switch to LED lamps, in particular for CFL and LFL lamps. This accelerated switch to LEDs in conjunction with the higher price of LEDs would cause consumers to bear an incremental cost associated with the proposed Amendments. For fluorescent lamps, the incremental cost ranges from $0.50 to $3.00 per lamp in 2024 and decreases over time to less than $2.00 per lamp in 2033, with the LED equivalent of CFL pin-based lamps being less expensive than the mercury-containing equivalent in this year. The longer lifetime hours of LED lamps, however, would lead to cost savings in the long term, as consumers would not need to purchase replacement lamps as frequently.

A study done for the Department provided a forecast for price and quantity of lamps for each lamp type up to 2035 (ICF Study). To calculate the incremental cost to consumers, costs were calculated (price × quantity), then compared in the baseline and regulatory scenarios. Over the 10-year time frame of the analysis, it is estimated that consumers would spend an additional $353 million to switch from mercury-containing lamps to LED lamps in the first 10 years of the proposed Amendments.

Most mercury-containing lamps can be easily substituted for LED lamps; however, some lamp fixtures could need to be replaced to accommodate the switch to LEDs. Due to a lack of data on the number of fixtures requiring replacement and the costs associated with this task, this analysis was unable to quantify the costs of fixture replacement.

Costs to Government

The Government of Canada is not expected to incur any additional costs beyond the need to inform stakeholders of the proposed Amendments. This is because the current regulatory framework is expected to remain the same and the existing implementation, compliance, and enforcement policies and programs would continue to apply.

Benefits

The proposed Amendments are expected to reduce mercury releases and GHG emissions. There are also expected energy savings that should offset most or all of the consumer purchase costs. As well, the proposed Amendments are designed to reduce the administrative burden for businesses.

Release reductions

Over the 10-year timeline of the analysis, from 2024 to 2033, the proposed Amendments would reduce the releases of mercury to the environment by approximately 775 kg, which represents an 85% reduction in environmental mercury releases relative to the baseline scenario. Mercury releases are expected to decrease over time in the baseline scenario as mercury-containing lamps are replaced by mercury-free alternatives; however, these reductions are expedited in the regulatory scenario. In 2024, the expected annual release reduction would be 78 kg, and in 2033, 55 kg. The sum of avoided releases (775 kg) can be broken down between releases to land (85% or 655 kg), air (15% or 120 kg), and water (0.2% or 1.5 kg).

Figure 2: Estimated impact of the proposed Amendments on releases of mercury to the environment from lamps

Figure 2: Estimated impact of the proposed Amendments on releases of mercury to the environment from lamps

Health benefits

Exposure to both elemental mercury and the more toxic methylmercury can pose a number of risks to human health. Methylmercury is absorbed through the human digestive tract and distributed throughout the body. The primary route of human exposure to mercury is by consumption of fish or fish-eating mammals with heightened levels of methylmercury. Methylmercury readily enters the brain, where it may remain for a long period of time.

Exposure to methylmercury can cause degenerative effects with respect to brain development, particularly in fetuses and children. In a pregnant woman, it can also cross the placenta into the fetus, building up in the fetal brain and other tissues. Methylmercury can also be passed to the infant through breast milk. A child’s developing nervous system is particularly sensitive to methylmercury. Depending on the level of exposure, the effects can include a decrease in intelligent quotient scores, delays in walking and talking, lack of coordination, blindness, and seizures. In adults, extreme exposure can lead to health effects such as personality changes, tremors, changes in vision, deafness, loss of muscle coordination and sensation, memory loss, intellectual impairment, permanent brain and kidney damage, and even death. In addition, other possible health outcomes associated with mercury exposure include cardiovascular and carcinogenic effects.

Some studies have attempted to quantify the value of reducing mercury emissions. One such study, Rice and Hammitt (2005),footnote 7 has done so through estimating the health benefits of a proposed mercury emissions limit from power plants in the United States. Assuming a non-zero impact threshold, Rice and Hammitt estimate the benefits to be between $3,900 and $4,500 per kilogram of mercury emissions avoided in 2000 U.S. dollars.

The analysis for the proposed Amendments employed the lower value in this range. Adjusting this value to 2021 Canadian dollars provides an approximate benefit of $7,225 per kilogram of avoided mercury emissions. The lower value was chosen as a conservative estimate, in addition to remaining consistent with the methodology of the 2014 analysis of the existing Regulations. It is important to note that the study done by Rice and Hammitt was based on the U.S. population and that, since impacts are driven by the size of the exposed population, it is reasonable to assume that Canadian health impacts may be lower in the range of values due to its smaller population and lower population density.

The monetized estimate employed in this analysis to estimate the impacts of avoided mercury releases is only applied to the avoided emissions to air. The Department conducted a mass balance analysis to determine the mercury releases to air, water, and land. In this analysis, avoided emissions to air are estimated to make up approximately 15% of the expected avoided releases to the environment from the proposed Amendments, with the majority of these avoided releases being to land at landfill sites (almost 85%) and a very minor proportion being direct releases to water (less than 1%). Avoided releases to land and water, though likely to provide benefits to wildlife and ecosystems, are not monetized in this analysis due to a lack of evidence and a high degree of uncertainty regarding the behaviour of mercury in landfill sites. The proposed Amendments would result in an estimated avoided releases to air of 120 kg over the period of the analysis, a benefit valued at roughly $695,500.

Environmental benefits

The proposed Amendments would contribute to Canada’s goal of decreasing its GHG emissions by means of transitioning from mercury-containing lamps to more energy-efficient LED lamps. LED lamps generally have higher energy efficiency than their mercury-containing equivalents, and so the proposed Amendments would lead to a reduction in GHG emissions associated with energy production over the course of the analysis. The analysis estimates the quantity of GHG emission reductions from switching to mercury-free lamps. This estimate is attained by calculations that employ, for each lamp type, the estimated number of lamps in use, the average quantity of hours lamps are used per year, the average watts required, and the grams of carbon dioxide (CO2) equivalent used per kilowatt hour of electricity used. This emissions intensity of energy consumption differs by region, from 2 g of CO2 equivalent in Quebec to 356 g of CO2 equivalent in the West. In total, this leads to an estimated 4.8% reduction in energy consumption, and a reduction in GHG emissions of approximately 4.7 megatonnes (Mt) over the 10-year analysis. To monetize these benefits, the quantity of avoided GHG emissions each year was multiplied by the Department’s schedule of the value of the social cost of carbon (SCC),footnote 8 which in 2024 is $58.30/tonne (t) of CO2 in 2021 Canadian dollars. The benefits of the GHG emissions reductions from energy savings would amount to $237.4 million over the 10-year timeline of the analysis.

Other environmental benefits associated with the reduction of mercury released to the environment from the proposed Amendments are discussed in qualitative terms as the environmental impacts have yet to be studied and quantified in a manner that is appropriate for cost-benefit analysis. Mercury releases deposit in the environment, affecting the reproduction potential of some wild populations of fish and birds and can cause neurological effects in fish-eating animals. The prohibition on mercury in lamps under the proposed Amendments would decrease the quantity of mercury released to the environment, and thus would result in some benefits to wildlife and ecosystems.

Energy savings

LED lamps, on average, have higher upfront costs than their mercury-containing counterparts; however, LED lamps are more energy efficient. This increased energy efficiency would lead to energy use savings that have been monetized in this analysis using market prices for electricity. To calculate the total energy cost savings from switching to LED lamps, this analysis conducted calculations for each lamp type that took into consideration the average number of hours lamps are used per year, wattage, and the number of lamps in use in the baseline and regulatory scenarios. This resulted in the total amount of energy used, which was then monetized by multiplying energy use by the estimated energy price in each region (Atlantic, Ontario, Quebec, West), obtained from the Department’s 2021 reference case,footnote 9 for each year.

The average population weighted energy price across Canada in the forecast is $126.33/MWh in 2024, increasing to $147.94/MWh in 2033 in constant 2021 dollars. To illustrate these calculations, the first year where prohibitions take effect for most lamps types on both new and replacement lamps can be examined as an example. In 2027, energy costs are estimated to be 0.0134¢ per watt hour. Lamps are used approximately 1 000 to 3 500 hours each year, and mercury-containing fluorescent lamps typically use 13 to 25 W per hour, while their LED equivalents typically use only 8 to 14 W per hour. So in 2027 it is estimated that each LED replacement for fluorescent lamps would save about $4.80 on average in energy costs per year.

In 2027, 27.7 million fluorescent lamps are forecast to be sold. If all of those lamps were switched to LED lamps, energy savings would amount to approximately $133 million in 2027 alone. Each year in the analysis, there are energy savings from new lamps that have transitioned to LED in that year in addition to the lamps that transitioned in the previous years, so the energy savings become cumulative. Over the 10-year time frame of the analysis, it is estimated that consumers would save, in aggregate, approximately $3.87 billion.

Payback analysis / Energy paradox

Given that the savings associated with these proposed Amendments appear to be quite large, there is some uncertainty about why consumers do not recognize the long-term savings that would accrue from purchasing more expensive but much more efficient lamps. It could be the case that consumers have already largely switched to LEDs in which case the impacts of the proposed Amendments would be proportionally lower. Some recent reports on the number of mercury-containing lamps manufactured and imported in recent years indicate that this is a possibility. Alternatively, the degree of energy savings may not be obvious to many consumers. In this case, it may take time for consumers to become aware of the benefits of newer technology. It may also be that the analysis has not considered other upfront costs (such as the potential need to change fixtures to accommodate different lamps). In addition, it may be that some consumers require the “nudge”footnote 10 that the proposed Amendments would provide by changing their purchasing habits from cheaper to more expensive lamps that save money over time.

Net administrative cost savings

The 110 regulated parties would carry upfront administrative costs from familiarizing themselves with the proposed Amendments. It is estimated that lamp importers and manufacturers would require three hours, while other stakeholders would require one hour for learning about the proposed Amendments, for a cumulative cost of $15,700 in the year the proposed Amendments would be published. Additionally, under the proposed Amendments, importers and manufacturers of linear fluorescent lamps (LFLs) would be required to submit two additional reports in 2026 (for 2025 data) and 2027 (for 2026 data). It is estimated that the aggregate burden of these additional reports would amount to approximately $6,400.

The proposed Amendments would prohibit six categories of products that are currently exempted but that are no longer in use in Canada. Additionally, all mercury-containing lamp manufacturing and imports, except those used for air and water treatment as well as fluorescent and discharge lamps under the catch-all category, would be prohibited by December 2031. The majority of new lamps would be prohibited in December 2023, with a three-year interim period where replacement lamps would be permitted before the full prohibition takes place in December 2026. Once exempted products become prohibited, regulated parties would no longer be permitted to import or manufacture these products and, therefore, would no longer need to comply with reporting obligations. The administrative cost savings associated with the decrease in reporting required would amount to $47,000 over the period of the analysis for a net administrative cost savings of $25,000.

Table 1: Summary of monetized benefits
Monetized benefits Undiscounted — 2024 Undiscounted — 2027 Undiscounted — 2033 Discounted — total Annualized
Estimated monetized benefits to human health (avoided health issues) due to reduction in mercury releases to air from lamps $86,250 $113,250 $61,250 $695,500 $81,500
Estimated and monetized energy savings from switching to more energy efficient lamps $85.6 million $410.1 million $697.7 million $3.87 billion $453.9 million
Estimated and monetized benefits of avoided GHG emissions $5.2 million $24.9 million $42.9 million $237.4 million $27.8 million
Estimated monetized administrative cost savings $17,000 $3,700 $0 $25,000 $3,000
Estimated monetized total benefits due to the proposed Amendments $90.8 million $435.1 million $740.7 million $4.11 billion $481.9 million

Cost-benefit statement: Monetized costs and benefits associated with the proposed Amendments are summarized below in Table 2.

Table 2: Summary of monetized benefits and costs
Note: By 2031, fewer lamps are sold in the regulatory scenario, as LED replacement lamps last longer.
Monetized impacts Undiscounted — 2024 Undiscounted — 2027 Undiscounted — 2033 Discounted total Annualized
Total benefits $90.8 million $435.1 million $740.7 million $4.11 billion $481.9 million
Total savings (costs) ($63.9 million) ($71.3 million) ($71.1 million) ($353 million) ($41.4 million)
Net benefits $26.9 million $363.8 million $811.8 million $3.76 billion $440.5 million

Table 3 presents the estimated quantified incremental benefits, and Table 4 qualitatively describes the impacts that could not be quantified in this analysis.

Table 3: Quantified impacts
Quantified benefits (cumulative) Amount
Reduction in mercury releases from lamps to the environment 775 kg
Reduction in mercury releases from lamps to air 120 kg
Avoided GHG emissions 4.7 Mt
Table 4: Qualitative impacts
Qualitative impacts Description
Cost to update light fixtures It is expected that some lamp fixtures would need to be replaced to accommodate the switch to LEDs; however, the Department was unable to estimate the quantity necessary and associated cost of replacement.
Environmental benefits It is expected that there would be benefits for wildlife and ecosystems commensurate with the reduction of mercury in products in Canada. Mercury impairs reproduction potential in some species of fish and birds, and has neurological impacts on fish-eating animals.
Health benefits for Canadians In addition to damage to the central nervous system, human exposure to mercury is known to cause damage to the lungs, nerves and kidneys. The proposed Amendments would limit mercury exposure from products through reduced releases of this substance to the environment.
Lamp replacement cost-savings LED lamps have longer lifespans than their mercury-containing equivalents, thus there will be labour cost-savings for consumers who need to replace lamps in difficult to access areas, such as in warehouses.
Aligning with the Minamata Convention Maintaining Canada’s international commitments under the Convention can encourage other countries to reduce their mercury releases. This could have important consequences for Canada, as mercury is a transboundary toxic substance that has severe impacts in the Arctic, which acts as a sink for mercury emitted from all parts of the world.
Sensitivity analysis

The results of the cost-benefit analysis described above are based on key parameter estimates; however, the true values may be higher or lower than those projected. To account for this uncertainty, sensitivity analyses were conducted to assess the effect of higher or lower estimates on the overall impact of the proposed Amendments.

Fewer mercury-containing lamps sold in baseline scenario: The central case analysis relies on data provided by a study to estimate the costs and benefits associated with the proposed Amendments to the Regulations (ICF Study). Recent data collected by the Department has shown that actual imports and manufacturing of mercury-containing lamps may be as few as half of what is estimated in the study. If fewer mercury-containing lamps are sold in the baseline scenario, it is expected that both the incremental costs and benefits would be reduced proportionally. Therefore, a sensitivity analysis was conducted to estimate what the impacts of the proposed Amendments would be if 50% fewer mercury-containing lamps are sold in the baseline scenario. This sensitivity analysis shows that incremental impacts under this scenario would amount to a net benefit of approximately $1.88 billion.

Consumer costs: The Department commissioned a study that projected future prices of various lamp categories (ICF Study). These prices were used to estimate the cost of switching from mercury-containing lamps to mercury-free lamps from 2024 to 2033; however, true future price estimates are difficult to predict. Therefore, sensitivity analyses show the overall impact on net benefits if consumer costs that are 50% more, and 50% less expensive are considered. This produced a range of net benefits from $3.58 billion to $3.93 billion.

Higher health impacts from reducing releases of mercury to air: When calculating the health impacts of mercury releases, the lower-bound estimate from Rice and Hammitt (2005) was used ($3,900 in 2000 USD). A sensitivity analysis was conducted to estimate the impact of employing the upper-bound estimate ($4,500 in 2000 USD, equivalent to approximately $8,340 in 2021 CAD), and found that health benefits increase from $727,500 to $802,500.

Number of lamps sold prior to prohibition: In the central case, the analysis uses forecast estimates for the number of lamps sold, and applies the prohibition dates for new, and replacement lamps sold, to the regulatory scenario. In this case, over the three years when only replacement lamps are permitted, the number of lamps sold is estimated through projections supplied by a study that forecasts the number of lamps that are new and replacements for each year (ICF Study). The sensitivity analysis considers two additional scenarios — the first one assumes there is no reduction in lamps sold relative to the baseline scenario during the time allotted for replacement lamps to be sold (i.e. the total number of lamp sales that were projected in the baseline scenario is assumed to be sold in these years). The other scenario estimates the impacts of no lamps being sold during this time period (i.e. mercury-containing lamp sales during the replacement period are equal to zero). These changes to the number of mercury-containing lamps being sold prior to prohibition produces a range of net benefits from the proposed Amendments of $3.66 to $3.95 billion.

Higher upfront costs: In the central case, upfront costs for replacing fixtures are included qualitatively in the analysis. There is little information on how many fixtures may require replacing, and on what this cost may be. With advances in technology, many LEDs are simply drop-in replacements for their mercury-containing counterparts. Even straight fluorescent tubes can often be directly replaced by plug-and-play LED lamps. However, some fixtures could require replacing. Total costs of the proposed Amendments would need to be almost 11 times that of the current costs before the proposed Amendments become net cost regulations. In 2027, the undiscounted net benefit of the proposed Amendments is $363.8 million and incremental straight fluorescent LED equivalent lamp sales are 19.8 million, which works out to a breakeven price of approximately $18 per fixture, if all lamps require new fixtures. To date, industry commentators have suggested that new light fixtures may be needed for some LED replacement lamps, but no data have been provided to support this claim.

Discount rate: Canada’s Cost-Benefit Analysis Guide for Regulatory Proposalsfootnote 11 states that a 7% real discount rate should be used for most cost-benefit analyses. For some regulatory proposals, such as those relating to human health or environmental goods and services, guidance states that it is more appropriate to employ a social discount rate, in which case a 3% social discount rate should be used. The central case reported in Table 2 employed a 3% social discount rate; however, a sensitivity analysis was conducted using the 7% real discount rate to compare estimates. The use of the higher discount rate results in an overall net present value of $2.69 billion, down from $3.76 billion when using the lower discount rate.

Table 5: Sensitivity analysis
Variable(s) Sensitivity case Total net benefits (millions)
Central case N/A $ 3,757
Mercury-containing
lamps sold in baseline scenario
50% lower $ 1,879
Consumer costs 50% lower $ 3,934
50% higher $ 3,580
Mercury emissions Rice and Hammitt upper-bound $ 3,757
Mercury-containing lamps sold prior to prohibition Fewer $ 3,660
More $ 3,953
Discount rate 7% $ 2,691
Distributional analysis of regulatory impacts

Throughout the time period of the analysis (2024–2033), societal benefits were estimated to far outweigh the societal costs associated with the proposed Amendments. These costs and benefits, however, are not expected to be evenly distributed throughout society. Most mercury-containing lamp types are projected to phase themselves out prior to the time period in which the proposed Amendments would intervene. Therefore, the incremental costs associated with the proposed Amendments would predominately be borne by consumers of fluorescent lamps (compact fluorescent, straight fluorescent, and non-linear fluorescent lamps). The impacts of GHG emissions are global in nature, and as such, their reductions would similarly be beneficial to all. Additionally, all lamp purchasers in Canada would be expected to benefit from energy savings associated with switching to more energy efficient lamps. Although mercury exposure is toxic for all people, those groups who face a higher risk of mercury exposure, such as some Indigenous Peoples, would be more likely to benefit from reductions in releases of mercury.

Competitiveness impacts

The proposed Amendments are not expected to harm the economic competitiveness of lamp manufacturing in Canada. Within the domestic market, both manufactured and imported lamps would be subject to the same maximum quantities of mercury allowed to be contained in these products. For exporters, it is not expected that the proposed Amendments would impact the competitiveness on the global market. Based on data collected by the Department, there are no Canadian lamp manufacturers that are exporting lamps to other countries, and increasingly, other regions such as the United States and the European Union are adopting similar phase outs for mercury-containing lamps. Additionally, it is expected that consumers would bear the burden of compliance costs, as they would carry the additional costs of purchasing LED lamps, which tend to be priced higher than mercury-containing lamps.

One-for-one rule

The proposed Amendments would result in a net decrease in administrative burden, and therefore, the proposed Amendments would be considered an “OUT” under the one-for-one rule. Regulated parties would bear a one-time fixed cost to familiarize themselves with the proposed Amendments, and manufacturers and importers of LFLs would assume costs associated with additional reporting requirements. These costs would be offset by administrative cost savings, given that the proposed Amendments would remove a number of regulated products from the Schedule in the Regulations, and therefore remove the requirement for businesses to keep records of, and to report on, these products. The proposed Amendments would lead to an overall decrease of approximately $650 in annualized administrative costs, or $6 per regulated business over the first 10 years (2024–2033).footnote 12

Small business lens

Approximately 30 out of 110 Canadian regulatees would be considered small businesses. The majority of mercury in products comes from large industries manufacturing products such as dental amalgam and lamps. However, there are three categories of products that are imported or manufactured by at least one small business in Canada: lamps, measuring instruments and reference material used in specific medical and research applications, and catalysts used in the manufacturing of polyurethane.

The proposed Amendments would not provide specific flexibilities to small businesses, such as exceptions, for a variety of reasons. Exceptions for small businesses with respect to phasing out or prohibiting products containing mercury would allow small businesses to import or manufacture products with mercury content limits that either exceed the specified limits or that do not respect the prohibition faced by other regulated parties. Such a scenario would reduce the benefits to Canadians associated with reductions in exposure to mercury releases from products and could place Canada in non-compliance with its obligations under the Convention. Moreover, exceptions for small businesses could introduce an incentive for companies to split into smaller entities in order to avoid future compliance costs, which would create a non-level playing field for importers and manufacturers operating in Canada.

Historically, it was predominantly small businesses in Canada that imported or manufactured neon signs (i.e. cold cathode tubing for signage or cove lighting and electrodes for use in cold cathode tubing for signage or cove lighting). The proposed Amendments would add an end date to the exemptions for mercury-containing neon signs, as LED lamps have replaced these products in the majority of cases in the Canadian market. Since the publication of the 2018 consultation document, the Department has not received any comments opposing the proposal to prohibit the importation or production of neon signs containing mercury in Canada. Nonetheless, some stakeholders have expressed an interest in an allowance under the proposed Amendments to repair existing neon signs containing mercury that have historical value, as required. Therefore, the repair activity for neon signs installed before December 31, 2023, would be allowed.

The table below shows the administrative costs and cost savings (benefits) that would be expected to result from the proposed Amendments. Small businesses would assume costs of $6,000 or $200 per small business over the time period of the analysis. These costs would be offset by cost savings that equate to approximately $13,300, or $445 per small business. Overall, the proposed Amendments are expected to result in net cost savings for small businesses in the amount of roughly $7,300, or $245 per business, between 2024 and 2033.

Table 6: Small business lens summary

Notes:

Costs and benefits Annualized value Present value
Administrative cost savings $870 $13,300
Administrative costs $390 $6,000
Total net cost savings (all impacted small businesses) $480 $7,300
Net cost savings per impacted small business $15 $245

Regulatory cooperation and alignment

The main driver for the proposed Amendments is alignment with the requirements for mercury-containing products of the Convention. More specifically, the mercury content limits of three product categories exempted under the Regulations need to be lowered in order to align with the Convention. In addition, the removal of the exemption for photographic film and photographic paper enables Canada to align with the newly adopted phase-out of these products under the Convention. Removing the exemptions also puts Canada in a position to ratify new amendments to the Convention for some products.

It should be noted that Canada’s Regulations are more stringent than some regulations in other international jurisdictions. However, there are a number of policies and programs internationally that are aiming to phase out fluorescent lighting, and the proposed Amendments would help Canada align with these international initiatives.

The EU, via two regulations, is working to phase out fluorescent lighting in Europe by 2023, which other countries, including Norway, Switzerland and the United Kingdom, have followed. The EU’s Directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment [the EU’s Restriction of Hazardous Substances (RoHS) Directive] includes mercury content limits for certain lamps.footnote 13 Under the RoHS Directive, mercury-containing products cannot be placed on the market unless an exemption is granted, most of which would be discontinued for general lighting purposes as safer mercury-free alternatives are widely available.footnote 14 The proposed Amendments would also offer the opportunity to align with the European Commission Regulation (EU) No. 848/2012 and the EU’s Mercury Regulation, which place restrictions on the production of mercury-containing catalysts used in the manufacturing of polyurethane.

In the United States, the EPA requires reporting from persons who manufacture or import mercury or mercury-containing products.footnote 15 The Interstate Mercury Education and Reduction Clearinghouse (IMERC), which comprises 13 member states, collects and manages data on mercury-containing products, makes information on mercury-containing products available to the public and industry, and provides best practices to member states concerning exemptions, labelling and waste management of mercury-containing products.footnote 16 In addition, the state of California has adopted the same rules specified in the EU’s RoHS Directive, which limit the mercury content per bulb, and has introduced legislation prohibiting the sale and distribution of fluorescent lamps.footnote 17 The state of Vermont has previously adopted a law to restrict the use of mercury in lighting and has recently introduced new legislation in 2022 that seeks to phase out all general purpose fluorescent lamps, including CFLs and LFLs.footnote 18

At the fourth meeting of the Conference of Parties to the Convention, 3 countries on behalf of the African Region submitted a proposal calling on the Convention to phase out CFLs with integrated ballasts in 2024 and certain LFLs in 2025, considering the widespread availability of LED alternatives to toxic mercury-containing fluorescent lamps.footnote 19 The 16 countries that comprise the Southern African Development Community have adopted lighting standards that phase out all CFLs and LFLs by 2024.footnote 20 Similarly, the East African Community, consisting of 6 countries, is undergoing a standardization process to phase out all CFLs and LFLs by 2024 in order to shift to LEDs. In addition, the International Energy Agency, of which Canada is a member, calls for all lighting sales to be switched to LEDs in 2025, in its 2021 report “Net Zero by 2050 — A Roadmap for the Global Energy Sector.”

By means of the proposed Amendments, Canada would meet the Convention requirements by lowering the mercury content limits for certain products covered by the Regulations and removing exemptions for others. In addition, Canada would go beyond the present requirements of the Convention by broadly prohibiting the manufacture and import of mercury-containing lamps for general lighting purposes, such as CFLs, LFLs and metal halide lamps, while allowing for some exemptions. This has important consequences for Canada, as mercury is a transboundary toxic substance that is having a severe impact in the Arctic, where mercury levels have tripled over the past century. Considering most mercury pollution in Canada originates from other countries, Canada’s actions can demonstrate leadership and encourage other countries to reduce their mercury releases.

Strategic environmental assessment

The proposed Amendments have been developed under Canada’s Chemical Management Plan (CMP), a Government of Canada initiative aimed at reducing the risks posed by chemicals to Canadians and their environment. A strategic environmental assessment was completed in 2011 and concluded that regulatory policies developed under the CMP are expected to reduce the risks posed by toxic substances. This anticipated outcome is in line with goal 3 of the 2022–2026 Federal Sustainable Development Strategy to protect Canadians from air pollution and harmful substances.

Gender-based analysis plus

The proposed Amendments are not expected to result in direct and disproportionate impacts based on identity factors such as race, ethnicity, religion, age, and mental or physical disability. There are, however, indirect and disproportionate impacts of human exposure to mercury.

Mercury levels found in the Arctic are of great concern, as they have increased two to three times over the past century in Canada’s Arctic lakes. By means of a global cycle, mercury tends to accumulate in polar regions, and the Arctic acts as a sink for mercury emitted throughout the entire Northern hemisphere. Disposal of mercury-containing products in the Arctic through open burning, incineration or landfilling can also contribute to mercury levels in the Arctic. Much of the waste in the Arctic is incinerated due to low temperatures most of the year that prevent the use of techniques used in the south.

Furthermore, the 2018 Global Mercury Science Assessmentfootnote 21 estimated that 7% of global mercury emissions came from disposal of mercury-containing products. According to the Canadian Mercury Science Assessment,footnote 22 high levels of mercury are also found in fish in some areas of the Great Lakes and are showing increasing trends. Fish in other areas like Kejimikujik (Nova Scotia) also show elevated levels of mercury. The primary route of human exposure to mercury is through consumption of fish or fish-eating mammals with heightened levels of methylmercury. There are particular concerns for subsistence fishers who eat large quantities of fish as part of their traditional lifestyles. Some groups, such as Indigenous Peoples, may be more likely to be exposed to methyl-mercury in higher concentrations than the general Canadian population because of a diet high in fish and seafood. Exposure to even low levels of methylmercury can cause degenerative effects on brain development, particularly in fetuses and children. Further, exposure to methylmercury while in the womb may cause developmental difficulties in children, such as reduction in intelligence quotient scores, delays in walking and talking, lack of coordination, blindness, and seizures.

Implementation, compliance and enforcement, and service standards

Implementation

The proposed Amendments would come into force three months after the day on which they are registered, as the Regulations have been in place since 2015 and the proposed Amendments would provide for a three-year implementation transition period during which industry would be allowed to adjust to the new requirements. For the purpose of implementing the regulatory requirements, the Department would undertake a number of compliance promotion activities. These activities would aim to raise awareness and promote a high level of compliance as early as possible during the regulatory implementation process. The activities would include the following:

The coordination and implementation of compliance promotion activities would be completed through the Products Containing Mercury Working Group, composed of departmental officials from headquarters and regional offices. The Department would consider opportunities for compliance promotion coordination with respect to other CEPA regulations that may have similar regulated activities or parties or compliance promotion approaches.

Coordination and cooperation opportunities also exist to partner with organizations outside the Department in order to perform compliance promotion activities, such as identifying regulated parties and delivering key messages. These partnerships may include other federal government departments, such as Health Canada and Natural Resources Canada, provincial and territorial governments, and industry associations. Compliance promotion activities would be reviewed from time to time in order to verify whether the proposed Amendments are being implemented effectively and efficiently.

Compliance and enforcement

Since the proposed Amendments would be made under CEPA, enforcement officers would apply the Compliance and Enforcement Policy for the Canadian Environmental Protection Act, 1999 (CEPA, 1999) [the Policy] when verifying compliance with the regulatory provisions. The Policy sets out the range of possible responses to alleged violations, including warnings, directions, environmental protection compliance orders, ticketing, ministerial orders, injunctions, prosecution, and environmental protection alternative measures, which are alternatives to prosecution after the laying of charges following contraventions to CEPA. In addition, the Policy explains when the Department would resort to civil suits by the Crown for cost recovery. Following an inspection or investigation, when an enforcement officer discovers an alleged violation, the officer would choose the appropriate enforcement action based on the Policy.

Service standards

If the conditions specified in the proposed Amendments were met, a regulated party could request a permit for a product containing mercury. Permit applications would be submitted to the Minister of the Environment after the proposed Amendments came into force. Applications for permits would be reviewed by the Department. The administrative procedure would not be expected to take more than 90 days, once all the required documentation is provided. The Department would make every effort to respond promptly to permit applications. The administrative process would include the following steps: (1) applications would be reviewed in order to verify that the required information has been provided; (2) follow-up letters would be sent to applicants to inform them that their permit applications have been received and, if needed, to request additional information; and (3) duly completed permit applications would be stamped with the date on which they were received. If a permit application were to be rejected, there would be no possibility to appeal the decision.

Compliance with the service standards for processing permit applications would be monitored and evaluated as part of normal regulatory performance measurement and evaluation.

Contacts

Matt Lebrun
Director
Products Division
Industrial Sectors and Chemicals Directorate
Environmental Protection Branch
Department of the Environment
351 Saint-Joseph Boulevard, 9th Floor
Gatineau, Quebec
K1A 0H3
Email: Produits-Products@ec.gc.ca

Matthew Watkinson
Director
Regulatory Analysis and Valuation Division
Economic Analysis Directorate
Strategic Policy Branch
Department of the Environment
200 Sacré-Cœur Boulevard, 10th Floor
Gatineau, Quebec
K1A 0H3
Email: RAVD.DARV@ec.gc.ca

PROPOSED REGULATORY TEXT

Notice is given, pursuant to subsection 332(1)footnote a of the Canadian Environmental Protection Act, 1999 footnote b, that the Governor in Council, pursuant to subsection 93(1) of that Act, proposes to make the annexed Regulations Amending the Products Containing Mercury Regulations.

Any person may, within 75 days after the date of publication of this notice, file with the Minister of the Environment comments with respect to the proposed Regulations or, within 60 days after the date of publication of this notice, file with the Minister a notice of objection requesting that a board of review be established under section 333 of that Act and stating the reasons for the objection. All comments and notices must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Director, Products Division, Department of the Environment, 351 Saint-Joseph Boulevard, Gatineau, Quebec K1A 0H3 (fax: 819‑938‑4480; email: Produits-Products@ec.gc.ca).

A person who provides information to the Minister of the Environment may submit with the information a request for confidentiality under section 313 of that Act.

Ottawa, December 15, 2022

Wendy Nixon
Assistant Clerk of the Privy Council

Regulations Amending the Products Containing Mercury Regulations

Amendments

1 (1) Paragraph 2(f) of the Products Containing Mercury Regulations footnote 23 is replaced by the following:

(2) Paragraphs 2(l) to (n) of the Regulations are replaced by the following:

(3) Section 2 of the Regulations is amended by striking out “and” at the end of paragraph (o) and by adding the following after paragraph (p):

2 Section 3 of the Regulations is replaced by the following:

Manufacture or import

3 (1) A person must not manufacture or import a product that contains mercury unless

Sale or offer for sale

(2) A person must not, after the second anniversary of the end date set out in column 4 of Schedule 2, sell or offer for sale a replacement lamp that belongs to a category set out in any of items 1 to 6 or 8 to 10 of that Schedule, in column 1.

Replacement part

(3) A replacement part is a part that

Replacement lamp

(4) A replacement lamp is a lamp that belongs to a category set out in column 1 of Schedule 2 and

Obligation

3.1 A person that manufactures or imports a product in contravention of section 3 must ensure that the product is sent for final disposal or recycling at a facility that is authorized, by the authorities of the jurisdiction in which it is located, to dispose of or recycle hazardous materials. However, if the product is imported, it may instead be returned to the facility from which or the person from whom it was imported.

3 The portion of section 4 of the Regulations before paragraph (a) is replaced by the following:

Application

4 An application for a permit must be submitted to the Minister and must contain the following information and documents:

4 Subsection 5(3) of the Regulations is replaced by the following:

Expiry

(3) A permit expires three years after the day on which it is issued, unless it is renewed in accordance with section 6.

5 Section 6 of the Regulations is replaced by the following:

Application for renewal of permit

6 (1) An application for the renewal of a permit must be submitted at least 90 days before the day on which the permit expires and must include the permit number and the information and documents set out in section 4.

Renewal

(2) The Minister must renew the permit if the application is made in accordance with subsection (1) and the conditions set out in subsection 5(1) are met.

6 (1) The portion of subsection 8(1) of the Regulations before paragraph (b) is replaced by the following:

Label — products containing mercury

8 (1) Subject to subsections (3), (4) and (5), any person that manufactures or imports a product that contains mercury must indicate the following information in a readily visible location on the product and, if applicable, on its package by means of a stamp, label or other mark:

(2) Paragraph 8(1)(d) of the Regulations is replaced by the following:

(3) Subsection 8(2) of the Regulations is repealed.

(4) Paragraph 8(3)(b) of the Regulations is replaced by the following:

(5) Paragraph 8(4)(b) of the Regulations is replaced by the following:

(6) Section 8 of the Regulations is amended by adding the following after subsection (4):

Referral to website

(4.1) The person referred to in subsection (1) may, instead of indicating the information in a notice or manual in accordance with paragraph (3)(b) or (4)(b), indicate in the notice or manual the address of a website where the information is set out.

Requirements

(4.2) The information must

(7) The portion of subsection 8(5) before paragraph (b) of the Regulations is replaced by the following:

Non-application

(5) Subsections (1) to (4.2) do not apply to

7 Paragraphs 9(1)(a) and (b) of the Regulations are replaced by the following:

8 Sections 10 and 11 of the Regulations and the headings before section 10 are replaced by the following:

Determination of the Total Quantity of Mercury

Accredited laboratory

10 (1) Any analysis performed to determine the total quantity of mercury for the purposes of these Regulations must be performed by a laboratory that meets the following conditions at the time of the analysis:

Standards of good practice

(2) If no method has been recognized by a standards development organization in respect of the analysis performed to determine the total quantity of mercury and the scope of the laboratory’s accreditation does not therefore include that analysis, the analysis must be performed in accordance with standards of good scientific practice that are generally accepted at the time that it is performed.

Electrotechnical products

11 The total quantity of mercury contained in an electrotechnical product is determined in accordance with the International Electrotechnical Commission standard IEC 62321-4, entitled Determination of certain substances in electrotechnical products – Part 4: Mercury in polymers, metals and electronics by CV-AAS, CV-AFS, ICP-OES and ICP-MS, as amended from time to time.

9 (1) Subsection 12(1) of the Regulations is replaced by the following:

Reporting requirements

12 (1) Any person that manufactures or imports a product that contains mercury, other than a replacement part referred to in subsection 3(3), must submit a report to the Minister

Annual reporting — certain lamps

(1.1) Any person that manufactures or imports a product that belongs to the category set out in item 2 of Schedule 2, in column 1, must submit a report to the Minister in respect of the 2025 and 2026 calendar years on or before March 31, 2026 and March 31, 2027, respectively.

(2) Subparagraphs 12(2)(a)(i) and (ii) of the Regulations are replaced by the following:

(3) Subparagraph 12(2)(b)(ii) of the Regulations is replaced by the following:

(4) Paragraph 12(2)(b) of the Regulations is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

10 (1) Subsection 13(1) of the Regulations is replaced by the following:

Electronic submission

13 (1) Any information provided to the Minister under these Regulations must be submitted electronically in the form and format specified by the Minister and must bear the electronic signature of the person that manufactures or imports the product containing mercury or of their authorized representative.

(2) Subsection 13(2) of the English version of the Regulations is replaced by the following:

Submission in writing

(2) If the Minister has not specified an electronic form and format or if it is not feasible to send the information electronically in accordance with subsection (1) because of circumstances beyond the person’s control, the information must be sent on paper in the form and format specified by the Minister and signed by the person or their authorized representative. If no form and format have been specified, the information may be sent in any form and format.

11 (1) Subparagraph 14(1)(a)(ii) of the Regulations is replaced by the following:

(2) Paragraph 14(1)(a) of the Regulations is amended by striking out “and” at the end of subparagraph (iv) and by adding the following after subparagraph (v):

(3) Subparagraph 14(1)(b)(ii) of the Regulations is replaced by the following:

(4) Subparagraphs 14(1)(b)(viii) and (ix) of the Regulations are replaced by the following:

(5) Paragraph 14(1)(b) of the Regulations is amended by adding “and” at the end of subparagraph (x) and by adding the following after that subparagraph:

(6) Section 14 of the Regulations is amended by adding the following after subsection (1):

Record of compliance with s. 3.1

(1.1) If the person has manufactured or imported a product in contravention of section 3, they must maintain records that demonstrate compliance with section 3.1.

12 Section 16 of the Regulations is amended by adding the following after subsection (1):

Electronic form

(1.1) Any records, copies of information submitted to the Minister and supporting documents that are kept in electronic form must be in a readily readable form.

13 The schedule to the Regulations is replaced by the Schedules 1 and 2 set out in the schedule to these Regulations.

Consequential Amendment

14 The portion of item 28 of the schedule to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999) footnote 24 in column 2 is replaced by the following:
Item

Column 2

Provisions

28
  • (a) subsections 3(1) and (2)
  • (b) section 3.1

Coming into Force

15 These Regulations come into force on the day that, in the third month after the month in which they are registered, has the same calendar number as the day on which they are registered or, if that third month has no day with that number, the last day of that third month.

SCHEDULE

(Section 13)

SCHEDULE 1

(Subparagraph 2(r)(iii), paragraphs 3(1)(a) and (3)(c) and 9(1)(a) and (b) and subparagraphs 12(2)(b)(ii) and 14(1)(a)(ii) and (b)(ii))

Maximum Total Quantity of Mercury — Products Other than Replacement Parts and Replacement Lamps
Item

Column 1

Category of Products

Column 2

Maximum Total Quantity of Mercury in Product

Column 3

End Date

1 Encapsulated dental amalgam No limit None
2 Screw-base compact fluorescent lamp for general lighting purposes    
 
  • (a) ≤ 25 watts
4 mg per lamp December 31, 2023
 
  • (b) > 25 watts
5 mg per lamp December 31, 2023
3 Pin-base compact fluorescent lamp for general lighting purposes 4 mg per lamp December 31, 2023
4 Straight fluorescent lamp for general lighting purposes    
 
  • (a) T5, program start, with a normal lifetime (< 25,000 hours)
3 mg per lamp December 31, 2023
 
  • (b) T8, 4-foot (1.22 m) or less, instant and program start, medium bi-pin base, with a normal lifetime (< 25,000 hours)
4 mg per lamp December 31, 2023
 
  • (c) T5, program start, with a long lifetime (≥ 25,000 hours)
5 mg per lamp December 31, 2023
 
  • (d) T8, 4-foot (1.22 m) or less, instant and program start, medium bi-pin base, with a long lifetime (≥ 25,000 hours)
5 mg per lamp December 31, 2023
 
  • (e) T12, 4-foot (1.22 m) or less, rapid start, medium bi-pin base
   
 
  • (i) halo phosphate phosphor
10 mg per lamp December 31, 2023
 
  • (ii) tri-band phosphor
5 mg per lamp December 31, 2023
 
  • (iii) T12, 4-foot (1.22 m) or less, rapid start, medium bi-pin base other than those referred to in subparagraphs (i) and (ii)
10 mg per lamp December 31, 2023
 
  • (f) T12, 8-foot (2.44 m), instant start, single pin base
   
 
  • (i) halo phosphate phosphor ≤ 40 watts
10 mg per lamp December 31, 2023
 
  • (ii) tri-band phosphor < 60 watts
5 mg per lamp December 31, 2023
 
  • (iii) T12, 8-foot (2.44 m), instant start, single pin base other than those referred to in subparagraphs (i) and (ii)
15 mg per lamp December 31, 2023
5 Non-linear fluorescent lamp for general lighting purposes, including a circular or square fluorescent lamp 15 mg per lamp December 31, 2023
6 Induction fluorescent lamp for general lighting purposes 15 mg per lamp December 31, 2023
7 High pressure sodium vapour lamp for general lighting purposes 40 mg per arc tube December 31, 2028
8 Metal halide lamp for general lighting purposes    
 
  • (a) ≤ 300 watts
40 mg per lamp December 31, 2023
 
  • (b) > 300 watts and ≤ 500 watts
75 mg per lamp December 31, 2023
 
  • (c) > 500 watts and ≤ 700 watts
85 mg per lamp December 31, 2023
 
  • (d) > 700 watts and ≤ 1000 watts
250 mg per lamp December 31, 2023
9 Bulb for automobile headlamp 10 mg per lamp December 31, 2023
10 Cold cathode fluorescent lamp    
 
  • (a) 1.5 m or less in length
3.5 mg per lamp December 31, 2023
 
  • (b) more than 1.5 m in length
13 mg per lamp December 31, 2023
11 External electrode fluorescent lamp    
 
  • (a) 1.5 m or less in length
3.5 mg per lamp December 31, 2023
 
  • (b) more than 1.5 m in length
13 mg per lamp December 31, 2023
12 Cold cathode tubing for signage or cove lighting 100 mg per 8 feet (2.44 m) December 31, 2023
13 Electrode for use in cold cathode tubing for signage or cove lighting 100 mg per electrode December 31, 2023
14 Fluorescent and discharge lamps used for growing plants No limit December 31, 2028
15 Fluorescent and discharge lamps used for air purification, sterilization, sanitization, treatment or disinfection No limit None
16 Fluorescent and discharge lamps used for water purification, sterilization, sanitization, treatment or disinfection No limit None
17 Fluorescent and discharge lamps other than mercury vapour lamps for general lighting purposes and products referred to in items 2 to 16 No limit None
18 Thermometer for use in a laboratory for scientific research applications No limit None
19 Thermometer or other scientific instrument required to be used by an ASTM International standard No limit None
20 Scientific instrument for the calibration of medical devices or for the calibration of scientific research instruments No limit None
21 Analytical standard, reagent or reference material for use in a laboratory No limit None
22 Scientific instrument for use as a reference for clinical validation studies No limit None
23 Scientific instrument for measuring the quantity of mercury in the environment No limit None
24 Catalyst for use in the manufacturing of polyurethane No limit December 31, 2027

SCHEDULE 2

(Subsection 3(2), paragraph 3(3)(c), subsection 3(4), paragraphs 9(1)(a) and (b), subsection 12(1.1), subparagraphs 12(2)(b)(ii) and 14(1)(a)(ii) and (b)(ii))

Maximum Total Quantity of Mercury — Replacement Lamps
Item

Column 1

Category of Lamps

Column 2

Maximum Total Quantity of Mercury in Product

Column 3

Start Date

Column 4

End Date

1 Pin-base compact fluorescent lamp for general lighting purposes 4 mg per lamp January 1, 2024 December 31, 2026
2 Straight fluorescent lamp for general lighting purposes      
 
  • (a) T5, program start, with a normal lifetime (< 25,000 hours)
3 mg per lamp January 1, 2024 December 31, 2026
 
  • (b) T8, 4-foot (1.22 m) or less, instant and program start, medium bi-pin base, with a normal lifetime (< 25,000 hours)
4 mg per lamp January 1, 2024 December 31, 2026
 
  • (c) T5, program start, with a long lifetime (≥ 25,000 hours)
5 mg per lamp January 1, 2024 December 31, 2026
 
  • (d) T8, 4-foot (1.22 m) or less, instant and program start, medium bi-pin base, with a long lifetime (≥ 25,000 hours)
5 mg per lamp January 1, 2024 December 31, 2026
 
  • (e) T12, 4-foot (1.22 m) or less, rapid start, medium bi-pin base
     
 
  • (i) halo phosphate phosphor
10 mg per lamp January 1, 2024 December 31, 2026
 
  • (ii) tri-band phosphor
5 mg per lamp January 1, 2024 December 31, 2026
 
  • (iii) T12, 4-foot (1.22 m) or less, rapid start, medium bi-pin base other than those referred to in subparagraphs (i) and (ii)
10 mg per lamp January 1, 2024 December 31, 2026
 
  • (f) T12, 8-foot (2.44 m), instant start, single pin base
     
 
  • (i) halo phosphate phosphor ≤ 40 watts
10 mg per lamp January 1, 2024 December 31, 2026
 
  • (ii) tri-band phosphor < 60 watts
5 mg per lamp January 1, 2024 December 31, 2026
 
  • (iii) T12, 8-foot (2.44 m), instant start, single pin base other than those referred to in subparagraph (i) or (ii)
15 mg per lamp January 1, 2024 December 31, 2026
3 Non-linear fluorescent lamp for general lighting purposes, including a circular or square fluorescent lamp 15 mg per lamp January 1, 2024 December 31, 2026
4 Induction fluorescent lamp for general lighting purposes 15 mg per lamp January 1, 2024 December 31, 2026
5 High pressure sodium vapour lamp for general lighting purposes 40 mg per arc tube January 1, 2029 December 31, 2031
6 Metal halide lamp for general lighting purposes      
 
  • (a) ≤ 300 watts
40 mg per lamp January 1, 2024 December 31, 2026
 
  • (b) > 300 watts and ≤ 500 watts
75 mg per lamp January 1, 2024 December 31, 2026
 
  • (c) > 500 watts and ≤ 700 watts
85 mg per lamp January 1, 2024 December 31, 2026
 
  • (d) > 700 watts and ≤ 1000 watts
250 mg per lamp January 1, 2024 December 31, 2026
7 Bulb for automobile headlamp 10 mg per lamp January 1, 2024 None
8 Cold cathode fluorescent lamp      
 
  • (a) 1.5 m or less in length
3.5 mg per lamp January 1, 2024 December 31, 2026
 
  • (b) more than 1.5 m in length
13 mg per lamp January 1, 2024 December 31, 2026
9 External electrode fluorescent lamp      
 
  • (a) 1.5 m or less in length
3.5 mg per lamp January 1, 2024 December 31, 2026
 
  • (b) more than 1.5 m in length
13 mg per lamp January 1, 2024 December 31, 2026
10 Fluorescent and discharge lamps used for growing plants no limit January 1, 2029 December 31, 2031

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