Although provincial and territorial governments in Canada generally
Legal Framework In Canada, environmental matters are regulated at the federal, provincial, territorial and local levels. Although provincial and territorial governments generally take the lead in regulating most environmental matters, in recent years the federal and municipal governments have become more active in environmental protection, with municipal governments in particular increasingly focused on the protection of wetlands, other areas of natural and scientific significance and biodiversity more broadly. Under the Fisheries Act , the federal government has also continued to actively regulate and prosecute companies in relation to industrial effluent. Some harmonization of programs and standards has taken place in Canada, but in various circumstances, the separate requirements at each governmental level apply. In particular, each federal, provincial and territorial government in Canada has its own unique environmental impact assessment regime. Contaminated Property The contamination of soil and groundwater is primarily regulated by the provinces and territories. Although the Supreme Court of Canada has confirmed the operation of the statutory “polluter pay” principle, purchasers of real property must be aware that they may be held liable for pre-existing contamination on or migrating from newly acquired property. Tenants should ensure that leases provide protection from such liability (e.g., allocation of liabilities, representations and warranties, indemnities), although contractual provisions do not generally provide absolute protection from regulatory liability. In Ontario, the Environmental Protection Act (EPA) provides for administrative orders to be issued against anyone who owns, manages or controls a contaminated property, whether or not that person or entity caused the contamination. When the discharge of a contaminant continues after a sale or occupancy, the new owner or operator may also be viewed as having permitted the discharge to take place even if not causing the initial source of contamination. These owners and operators may be subject to remediation liability. Although there is generally no positive statutory obligation in Ontario to clean up historical contamination, remediation and reimbursement obligations may arise, including with respect to off-site impacts.
take the lead in regulating most environmental
matters, in recent years the federal and municipal governments have become more active in environmental protection, with municipal governments in particular increasingly focused on the protection of wetlands, other areas of natural and scientific significance and biodiversity more broadly.
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Doing Business in Canada
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