Corporate Voluntary Challenge and

By-law to Prohibit the Burning of Used Motor Oil

 The Works and Utilities Committee recommends:

(1)the adoption of the report dated July 6, 1998, from the Commissioner of Works and Emergency Services; and

 (2)that Councillors Ila Bossons and Jack Layton be requested to work with the appropriate staff to develop initiatives to publicize the corporate challenge.

 The Works and Utilities Committee reports, for the information of Council, having referred the communication dated July 15, 1998, from Mr. Lloyd Clare, The Environmental Permit Corporation, to the Strategic Policies and Priorities Committee with a request that, if possible, an opportunity be provided for Mr. Clare to appear before the Strategic Policies and Priorities Committee at its meeting scheduled to be held on July 24, 1998.

 The Works and Utilities Committee submits the following report (July 6, 1998) from the Commissioner of Works and Emergency Services:

 Purpose:

 To comment on a proposal for a by-law to prohibit the burning of used motor oil.

 Funding Sources, Financial Implications and Impact Statement:

 There are no direct funding implications of this report.

 Recommendations:

 It is recommended that:

(1)the City of Toronto initiate a voluntary challenge to businesses in the City and showcase those that adopt a corporate policy not to burn used motor oil;

 (2)the proposed by-law given in Appendix A to this report be considered for enactment by Council of the City of Toronto by December 31, 1998, if still required, in order to completely eliminate the burning of used motor oil in space heaters; and

 (3)municipalities in the Greater Toronto Area be encouraged to take similar action to eliminate the burning of used motor oil in space heaters.

 Council Reference/Background/History:

 The City of Toronto Council, at its meeting held on May 13 and 14, 1998, adopted Clause No. 1 of Report No. 4 of The Works and Utilities Committee, as amended. In the Clause, the Commissioner of Works and Emergency Services is requested to comment on a motion to adopt a by-law to prohibit the burning of used motor oil in space heaters.

 Comments and/or Discussion and/or Justification:

 The Commissioner of Works and Emergency Services has received a draft by-law from the City Solicitor to prohibit the burning of used motor oil. A communication from the City Solicitor's Department to the Works and Emergency Services Department forwarding the draft by-law is contained in Appendix A to this report. The by-law focuses on the fuel rather than the heating device. As such, the by-law would not render existing space heating devices unusable but instead would prohibit the burning of used motor oil in them. No. 2 heating oil can be substituted for used motor oil as a fuel.

 We have confirmed that Suncor, Sunoco Group, has a policy not to burn used oil at its outlets. A corporate challenge to other business might reduce or eliminate the burning of used motor oil in due course. An initial option for Council is to publicize a voluntary corporate challenge to encourage more businesses to step forward and discontinue used oil burning. The corporate challenge could involve full public recognition and appreciation to businesses choosing to voluntarily discontinue the burning of used motor oil. The City could maintain a database of businesses that have volunteered not to burn waste oil for the reference of the media and general public.

 City Council could establish a firm time line for full participation. After allowing time for voluntary action, City Council could proceed to implement a by-law. A by-law would level the playing field. Competition for businesses having volunteered to discontinue burning of used motor oil would be required not to burn used motor oil and therefore could not secure any business advantage by burning used motor oil.

 By allowing time for business to volunteer before enacting a by-law, businesses would have the opportunity to show environmental leadership in the community. By taking a leadership position, businesses would gain public recognition. Voluntary action would serve to promote businesses that step forward with voluntary action.

 In addition to allowing time for voluntary action, time would be required for businesses to make fuel storage modifications to substitute heating oil for used motor oil. By scheduling the enactment of a by-law, if necessary, after December 31, 1998, the City would give businesses sufficient notice in order to plan and implement heating system modifications.

 To achieve a level playing field for businesses located in the City near the City boundary, neighbouring municipalities should be requested to take similar action to eliminate the burning of used motor oil. Residents of neighbouring municipalities will benefit from better air quality resulting from the elimination of the burning of used motor oil in the City, depending on the wind direction. Neighbouring municipalities can reciprocate by taking similar action.

 Conclusions:

 A corporate challenge could yield significant participation by Toronto businesses in a clean air initiative to end the burning of used motor oil in space heaters. If required, a by-law would complete the discontinuation of the burning of used motor oil in space heaters in the City and, by levelling the competitive playing field, serve to support those businesses having already volunteered to discontinue the burning of used motor oil. Time should be provided to businesses to implement fuel storage modifications to end the burning of used oil prior to a by-law coming into effect.

 Contact Name:

 Kevin Loughborough, P. Eng., Works and Emergency Services

(416) 392-8845; (416) 392-4540 fax.

 (Communication dated July 2, 1998, from Legal Services

referred to in the foregoing report)

 In considering Clause No. 1 of Report No. 4 of The Works and Utilities Committee at its meeting on May 13 and 14^,, 1998, City Council referred a motion by Councillor Sgro to the Commissioner of Works and Emergency Services for a report. The motion by Councillor Sgro recommends that Council adopt a by-law to prohibit the use of used motor oil for space heating by or in businesses in the City of Toronto.

 In relation to this matter, I thought that it would be useful for me to provide some legal comments for possible incorporation in your report going to the Works and Utilities Committee. The comments must be read in the context of the report from the City Solicitor, dated April 16, 1998, entitled "Options to Ban and Grandfather the Operation of Waste Oil Heaters", and the legal opinions expressed there about the validity of any municipal by-law. My comments are as follows:

 The proposed by-law purports to utilize section 257.2 (the licensing provisions) of the Municipal Act as authority for enactment of the by-law. The by-law, however, as drafted, is simply regulatory in that it neither imposes conditions to any existing licenced business nor attempts to define and licence a new business and, in conjunction therewith, impose conditions. In particular, sections 2 and 3 of the proposed by-law read as follows:

"(2)the purpose of this by-law is to prohibit the use of used motor oil for space heating".

 "(3)no business may burn "used motor oil" for space heat within the municipality of the City of Toronto".

 If the intent of Councillor Sgro is to propose a by-law based on utilization of the licencing provisions of the Municipal Act, any by-law (if the intent is to make it enforceable as a licensing by-law) must amend the general licencing by-law of the City, namely By-law No. 20-85 of the former Municipality of Metropolitan Toronto, as amended. In that by-law, one would either attach conditions to existing licenced businesses or create a definition of a new business to be licenced and attach conditions to the operation of that business.

 Given the intent of Councillor Sgro's proposed by-law to simply regulate the fuel source for these space heaters, it may be simpler to utilize the specific regulatory provision which would appear to apply, namely, paragraph 156 of Section 210 of the Municipal Act. Again, that paragraph reads as follows:

"For regulating, controlling and inspecting heating and cooking appliances, or any classes thereof, the installation thereof and the storage of fuel for use in connection therewith".

 (I have not, however, finished research into the provision, including a search of Hansard to determine the legislative intent of the section - although an initial search has not been fruitful.)

 If paragraph 156 of Section 210 of the Municipal Act is to be used, however, I would also make two points about the proposed by-law, as a regulatory by-law:

1.The very breadth of the definition of "space heater" encompasses every type of heating device in prohibiting the burning of used motor oil as a fuel. While the by-law attempts to limit this absolute prohibition to businesses, arguably there is no provision in paragraph 156 of section 210 of the Municipal Act allowing such regulation to be discriminatory, i.e., applicable to one class of persons and not to others. The by-law, as a regulatory by-law, would have to be re-drafted to provide a prohibition on the burning of used motor oil by all persons within the City. This should not make a difference, as I understand residences do not utilize waste oil heaters; and

 2."space heat" is not defined; "space heater" is defined so that the proposed section (3) or similar section should in fact read as follows:

 "(3)no person may burn "used motor oil" within a space heater within the City of Toronto."

 A possible by-law on the basis of paragraph 156 of section 210 of the Municipal Act is set out in the attached appendix. I would be pleased to discuss any of the above at your convenience.

 APPENDIX

 Authority:

Intended for first presentation to Council:

Adopted by Council:

 CITY OF TORONTO

 Bill No.

BY-LAW No.

   WHEREAS paragraph 156 of section 210 of the Municipal Act allows municipalities to regulate and control heating appliances, or any class thereof; and

 WHEREAS space heaters burning used motor oil generate significantly more pollution than other fuels used for space heating; and

 WHEREAS Toronto residents currently bear the monetary, human health and environmental costs of air pollution; and

 WHEREAS space heaters currently burning used motor oil can burn cleaner fuels without modification and at no capital cost;

 NOW THEREFORE the Council of the City of Toronto HEREBY ENACTS as follows:

 1.In this by-law,

 (a)" used motor oil" means lubricating oil that has been used as a lubricant in any commercial or industrial operation or as a lubricant in the crankcase of motor vehicles; and

 (b)"space heater" means a heating device that, through combustion of fuel, provides heat energy to an internal or external area.

 2.No person may burn used motor oil within a space heater.

  ENACTED AND PASSED this day of , A.D. .

  MayorCity Clerk

 (Corporate Seal)

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 The Works and Utilities Committee reports, for the information of Council, having also had before it during consideration of the foregoing matter a communication (July 15, 1998) from Mr. Lloyd Clare, The Environmental Permit Corporation, requesting that the Works and Utilities Committee defer consideration of the aforementioned report until proper notice can be given to the affected parties; and expressing concern with respect to the lack of adequate notice in this matter.