POLE-ING FIRM — ÉRIC VACHON wants the attention of the Prime Minister's Office.
Vachon isn't used to making a stink with politicians. He runs a company that produces utility poles and railway ties. Business is good at Stella-Jones. Canada has a voracious appetite for utility poles and the company's customers include major provincial utilities. — The gripe: Vachon says a federal regulator's decision is about to choke supply chains and threaten the performance of Canada's telecommunications and electrical grid. — The background: In 2020, the Pest Management Regulatory Agency (PMRA) launched public consultations on a wood preservative named pentachlorophenol (penta for short). The regulator intended to ban the sale and use of the chemical, which poses a potential exposure risk — including people who work with it. On Oct. 4, the PMRA decreed a one-year phase-out. Alarm bells rang at Stella-Jones HQ in Montreal, which knew the ruling was two years in the making and supports the transition to new preservatives — but had during consultations pushed for more time. — The stakes: Canada needs up to 60,000 new utility poles every year. Hurricane Fiona brought down 5,000 poles in the Atlantic provinces, and the more extreme weather produced by climate change is likely to increase demand. Plus, 5G and broadband expansion projects require poles. So do new industrial facilities. — The challenge: Stella-Jones says Canada's existing supply of penta-treated poles will need to be destroyed or exported next October — and the company can't convert its facilities to handle a new preservative quickly enough to replace the missing pole supply. Vachon added that Health Canada hasn't approved an alternative preservative called dichlorooctylisothiazolinone (DCOI for short). If DCOI gets the go-ahead, the company says it needs 9 to12 months to convert its operations. Stella-Jones's customers include eight major utilities, including Fortis, BC Hydro, Hydro One, Hydro Québec and ATCO subsidiaries. The anticipated result north of the border: a "major shortage." — The solution: Stella-Jones is pleading with government officials to extend the phaseout period to three years, and reminding them the U.S.-based Environmental Protection Agency gave industry a five-year grace period. The EPA has also green-lit DCOI. Stella-Jones is already converting its American facilities and says the sooner the better for a Canadian approval. — The response: Health Canada isn't budging on the phase-out. And a spokesperson told Playbook that DCOI is under review, but didn't offer a timeline: "Once the review is completed, a proposed registration decision will be published for consultation." The department reminded us that DCOI has been a registered wood preservative in the U.S. "for many years," and Health Canada only received a request to approve DCOI in late 2021. Translation: Patience is a virtue. — What's next: Stella-Jones doesn't want to wait. The company has tapped a team of Crestview lobbyists to get in the government's ear asap. They might as well wait until 2023. Official Ottawa is about to take a month-long nap. |
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