Environmental enforcement and fines are seemingly becoming more common and consequential. For example, last March, we reported about a $16 million fine (a provincial fine). In April, we reported about two separate $1 million fines (federal fines).
Pace and Trends in Environmental Enforcement
While it does seem that there is more enforcement, a report by the insurance company, Berkley Canada states, “Despite the total value of large fines and penalties increasing in 2021, the number of fines and penalties issued decrease back to 2015 levels.” It is unclear reading their report if they are including provincial enforcement or just federal enforcement.
Earlier, in a 2019 report, Berkley states, “Ontario has been the largest issuer of fines over the last five years, a new insurance report on environmental fines across Canada has found. The province issued environmental fines totaling $22 million over 2015 – 2019.”
Unsurprisingly, much of the focus is on effluent discharges – air and water. The Berkley report states, “The majority of fines and penalties issued between 2015 and 2021 arose from spills, releases and discharges to water (~75% by total value). Regulators also focused heavily on atmospheric releases, followed by wildlife, waste and compliance related matters.”
The Cost of Environmental Protection
Protecting human health and the environment and limiting releases to the environment are important, but it is also a significant expense to businesses. According to Statistics Canada, in 2019, Canadian businesses spent $21.1 billion on environmental protection and resource management activities. This cost will likely continue to rise as new and tighter regulations are implemented at the federal and provincial levels.
The majority of fines and penalties issued between 2015 and 2021 arose from spills, releases and discharges to water (Image by Thomas Hoang from Pixabay).
With the above said, below are some recent environmental enforcement-related news stories.
Recent Environmental Enforcement
A January 2024 article in HazMat Management listed the “Top 5 Federal Environmental Fines in 2023.” The range of fines listed include Rio Tinto violating the Federal Fisheries Act ($500,000) to Canadian Kraft Paper for unlawful depositing effluent ($1 million). As we stated above, provincial enforcement is often more active than federal.
North West Redwater Partnership Fined $280,000
According to a January 2024 press release by Environment and Climate Change Canada, “As a result of an environmental protection alternative measures agreement with the Attorney General of Canada, CNR (Redwater) Limited and North West Refining Inc., operating as the North West Redwater Partnership, has paid a total of $280,428 to the Government of Canada’s Environmental Damages Fund. The agreement was entered into as an alternative to prosecution for a charge laid by Environment and Climate Change Canada. The charge, which has since been stayed, was for the alleged negligent filing of a document containing false or misleading information in contravention of the Canadian Environmental Protection Act, 1999.”
The issue dates back to 2019 when Redwater submitted its annual report for the Sturgeon Refinery (for 2018). This report indicated that Redwater met the “required threshold of renewable fuel content.” A third-party audit later determined that Redwater “overreported the amount of renewable fuel dispensed.”
Part of the fine ($100,000) will go to the Environmental Damages Fund.
For more information on previous enforcement efforts, see our past blogs.
If you need assistance with an environmental issue, contact Christopher Pare’, P.Geo. Q.P. at 519-948-7300, Ext. 114.
Dragun Corporation does not use artificial intelligence in drafting our blogs or any other material.
Alan Hahn drafted this blog. Alan holds an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for more than 45 years. He has written hundreds of blogs and articles. His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.
Christopher Paré, P.Geo, reviewed this blog. Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office. Chris has more than 30 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning. Chris is a frequent speaker, author, and expert witness. See Chris’ bio.
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