LR Projects Inc. - conviction information for 2017-09-29

Corporation details
Corporation name: LR Projects Inc.
Address: 7314 – 199 Street
City: Langley
Province/territory: British Columbia
Postal code: V2Y 1R9
Country: Canada
Sector or industry: 417 - Machinery, equipment and supplies merchant wholesalers
Case details
Location of offense: 18806 96 Avenue, Surrey, British Columbia
Case summary: On Thursday, September 26, 2013, Environment and Climate Change Canada (ECCC), Enforcement Officers (EOs), with the assistance of an Analyst from Environment and Climate Change Canada’s Vehicle and Engines Testing for Emission Verification (VETEV), conducted an on-site inspection of engines imported by LR Projects Inc. (LR), located at a third party warehouse in Surrey, BC. There were 826 engines subject to the Off-Road Small Spark-Ignition Engine Emission Regulations (ORSSIEER) and the Off-Road Compression Ignition Engine Emission Regulations (ORCIEER). Following the inspection, three SSI engines were sampled for testing at ECCC engine testing facility in Ottawa, ON.  The remaining engines were seized and detained at the warehouse until LR produced the Evidence of Conformity (EOC) to verify the documentation complied with the regulations. The seized engines were released after LR provided the EOC which demonstrated compliance. Based on the detailed review the information gathered during the inspection, VETEV recommended that samples of the ORCIEER engines be collected for emission testing. EOs returned to PCD at a later date and sampled two engines, a water pump and diesel generator which were equipped with the same engine family. The samples were then sent to VETEV for testing. The test results showed that the ORSSIEER engines conformed to the emissions standards, while the ORCIEER engines failed to conform to the prescribed emissions standards for nitrogen oxides (NOx) and non-methane hydrocarbons (NMHC). Upon reviewing the emission test results, the engines manufacturer in China, Fuzhou Launtop M&E Co. Ltd., stated that “… the main problem [with the ORCIEER engines] is the angle of fuel delivery…” and that “It is possible that the angle is not adjusted well by our worker before shipment”, which indicates that the engines have a defect in their construction. Section 157 of the Canadian Environmental Protection Act, 1999 (CEPA) requires the importer on becoming aware a defect in the design, construction or functioning of the engine cause a notice of defect (NOD) to the Minster in the prescribed manner. On Several occasions, LR was made aware of the defect and the requirements to come to compliance but LR failed to cause a NOD. In the course of the investigation, it was also discovered that LR failed to submit a declaration to the Minster prior to importation of the ORCIEER engines as required under section 19 of the regulations. On four occasions, between January 2012 and July 2013, LR imported 470 diesel generators and 190 water pumps. On September 24, 2014, ECCC initiated an investigation into LR. On April 12, 2017, LR was charged for failing to submit a declaration and failing to cause NOD to the Minster.
3 counts under s. 19 of  ORCIEER and 2 counts under ss. 157 (1) of CEPA.
Enforcement notification: Canadian company fined after pleading guilty to violations of air pollution thresholds
Result: Guilty Plea
Date of conviction: 2017-09-29
Court level: Provincial and Territorial Court
Nature of offense(s):
  • Import of non-compliant products
Additional details about the nature of the offense: Not available
Legislative details
Act Regulations Section(s)
Canadian Environmental Protection Act, 1999 (CEPA) Off-Road Compression-Ignition Engine Emission Regulations s.19, ss.157(1)
Date of sentencing: 2017-09-29
Location of sentencing: Vancouver, BC
  • Penalty for the EDF
Amount of fine(s): $20,000
Sentencing details:

On 29 September 2017, before the British Columbia Provincial Court in the City of Vancouver, LR Projects Inc. pleaded guilty of failing to submit a declaration to the Minster before the importation of an engine (Count 2), and failing to cause a NOD to the Minster (Count 4).  The company was sentenced to pay a fine of $5,000 on Count 2 and $15,000 on Count 4, due to be paid by December 31, 2017.  The total fine of $20,000 will go to the Environmental Damages Fund.

In addition, the company was order to,

•              Issue a notice of defect to the Minster by October 29, 2017,

•              Indefinitely stop importing the non-compliant engines, and

•              Forfeit the two defective engines to be disposed by the Minster.

Counts 1, 3 and 5 were dropped as part of the plea agreement.

Date modified: