Inside Logistics

CN fined under environmental laws

Court ordered railway to pay more than $1 million to environmental fund

May 18, 2018

environmentalMONTRÉAL – On May 14, 2018, the Canadian National Railway Company (CN) pleaded guilty to importing a fuel that does not meet the requirements of the Renewable Fuels Regulations. CN was fined $25,000 and was ordered by the court to pay a sum of $1,101,627 to promote the protection of the environment.

The investigation conducted by Environment and Climate Change Canada found that—between July 1, 2011 and December 31, 2012—CN imported over 224,000,000 litres of diesel fuel. Under the Regulations, two per cent of that volume should have been renewable fuel unless compliance units were acquired. Despite the compliance units acquired during that period, CN’s renewable-fuel deficit was 3,672,090 litres below the two percent requirement.

The fine and penalty will be directed to the Environmental Damages Fund administered by Environment and Climate Change Canada.

The Renewable Fuels Regulations require fuel producers and importers to have an average renewable content of five percent in gasoline and two percent in diesel fuel and heating distillate oil, based on volume. A trading system is in place whereby renewable fuel compliance units may be traded.

The Department’s enforcement officers conduct inspections and investigations under the Canadian Environmental Protection Act, 1999 to ensure that individuals comply with the environmental protection laws to which they are subject.

The Environmental Damages Fund is administered by Environment and Climate Change Canada. It was created in 1995 to provide a mechanism for directing funds received as a result of fines, court orders, and voluntary payments to projects that will benefit the environment.