Canada's Risk Management Scope and Reporting Requirements for PFAS

On July 27, 2024, Canada introduced a PFAS reporting mandate under the Canadian Environmental Protection Act (CEPA). This requirement obligates applicable businesses to submit detailed reports on PFAS, including aggregated substance-level data across their products, along with specific product information such as names, PFAS concentrations, and intended uses.

What are Canada's Risk Management Scope and Reporting Requirements for PFAS

In July 2024, Canada’s Environment and Climate Change Canada, along with Health Canada, published a revised risk management scope for PFAS.

Key proposals include:

• Regulatory Development Under CEPA: The government proposes the development of regulatory instruments to restrict or prohibit the use of certain PFAS, especially those not currently regulated, such as those in firefighting foams.

• Phased Implementation: The regulations will be implemented in phases, prioritizing actions based on socio-economic factors, the availability of alternatives, and the level of risk posed by PFAS in specific applications.

• Environmental and Human Health Objectives: The overarching goals are to reduce the release of PFAS into the environment and to minimize human exposure to these chemicals, particularly in vulnerable populations.

New Canadian PFAS Reporting Requirements 2024

On July 27, 2024, Canada introduced a new PFAS reporting requirement under CEPA. This regulation mandates that businesses involved in the manufacture or importation of PFAS submit detailed reports by January 29, 2025. The requirements are comprehensive and involve several key aspects:

Complex Scoping Requirements

The scoping requirements for the new reporting rule are notably complex. Here’s what businesses need to understand:

• Number of Reportable Chemicals: Unlike the U.S. TSCA regulations, which cover a broader range of substances, Canada’s list includes approximately 300 PFAS chemicals. However, determining which substances are reportable is more complicated due to Canada’s broader scoping criteria.

• De Minimis Exclusions: The Canadian rule includes de minimis exclusions based on concentration and total volume. This means that certain low-concentration uses might be excluded from reporting, but businesses need to carefully evaluate these thresholds to ensure compliance.

• Exemptions for Micro-Businesses: Businesses with fewer than five employees or less than $30,000 in annual gross revenue may be exempt from reporting. However, determining eligibility for this exemption requires careful consideration of the specific criteria.

• Three Lists of Reportable PFAS: The PFAS are divided into three lists, each with different reporting thresholds. For example, products like juvenile goods and cookware have lower thresholds, making them more likely to be reportable. Businesses must first identify whether they use substances on these lists, calculate the total quantity per PFAS across all products, and then determine what needs to be reported.

This detailed, multi-step process adds significant complexity to the reporting obligations, making it essential for businesses to understand and apply the criteria correctly.

What are the Reporting Deadlines of Canada PFAS Regulation

The deadline for submitting the required PFAS reports is January 29, 2025, which is significantly earlier than the U.S. TSCA reporting deadline in May 2025. This compressed timeline means that businesses must act quickly to collect, analyze, and report the necessary data.

• Impact on Businesses: Companies that have aligned their PFAS management strategies with the U.S. TSCA timeline may find themselves under pressure to accelerate their processes. The Canadian deadline does not provide any delayed deadlines for smaller entities, unlike the U.S. regulation.

• Action Steps: To meet the tight deadline, businesses should prioritize supplier engagement, data collection, and validation efforts immediately. Automating these processes where possible can help manage the workload and ensure timely compliance.

What are the Steep Fines for PFAS Non-Compliance in Canada

The consequences for failing to meet the reporting deadline are severe:

• Fines: The Canadian PFAS reporting rule stipulates fines of up to $25,000 for individuals and $500,000 for large corporations for first-time offenses. These fines double for subsequent offenses.

• Importance of Compliance: Given the financial and reputational risks, businesses must take these reporting requirements seriously. Implementing robust compliance processes is crucial to avoid penalties.

PTFE (Teflon) as a Listed Substance

One of the most widely used PFAS, Polytetrafluoroethylene (PTFE), commonly known by its trade name Teflon, is included in Canada’s list of reportable substances.

• Reporting Thresholds: The thresholds for PTFE are more than 100 kilograms total quantity imported or concentrations greater than 0.0001%. This means that many manufacturers using PTFE will be required to submit a report, making it one of the most significant substances under the new reporting rules.

• Industry Impact: Given that PTFE is found in a wide range of products, businesses across various sectors will need to ensure they are prepared to report on this substance.

Confidentiality Provisions

Under CEPA, businesses can request that their PFAS data be treated as confidential business information. This option is similar to provisions under the U.S. TSCA, where confidentiality claims must be substantiated with evidence at the time of submission.

• How to Apply: Businesses seeking confidentiality must provide a clear justification for why their data should be protected. This process involves submitting supporting documentation that demonstrates the competitive or proprietary nature of the information.

International Context and Comparisons

Canada’s approach to PFAS regulation is consistent with international trends. In the European Union, for example, a broad restriction on PFAS across various uses has been proposed. Similarly, the U.S. Environmental Protection Agency (EPA) has developed a strategic roadmap focused on research, restriction, and remediation of PFAS.

• Global Alignment: These international efforts highlight a growing consensus on the need to manage PFAS risks comprehensively. For businesses operating globally, staying informed of these developments is critical to ensure compliance across different jurisdictions.

• Comparative Challenges: While Canada’s PFAS regulations are aligned with global trends, they introduce unique challenges, particularly in terms of reporting timelines and scoping requirements. Businesses must adapt their strategies to meet the specific demands of Canadian regulations.

Conclusion

Canada’s revised risk management scope and new PFAS reporting requirements represent a significant regulatory shift aimed at addressing the persistent and widespread use of PFAS. For businesses, this means navigating complex scoping criteria, tight reporting deadlines, and stringent compliance requirements.

Given the potential for severe penalties, businesses must act proactively to meet these new obligations. This includes engaging with suppliers, automating data collection processes, and consulting with regulatory experts to ensure full compliance. As the global regulatory landscape for PFAS continues to evolve, businesses should adopt a strategic approach to PFAS management, treating it as an ongoing process rather than a one-time task.

By staying informed and adapting to these new regulations, businesses can protect themselves from compliance risks and contribute to the broader goal of reducing PFAS-related environmental and health impacts.