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BRANCH OPINION


MINISTRY OF CONSUMER AND COMMERCIAL RELATIONS

NEWS RELEASE: September 12, 1995

ENGINEERING AND STANDARDS BRANCH

TO ALL REGISTERED HEATING CONTRACTORS:

Many heating contractors have installed or repaired heating systems with high-temperature plastic vents under the homeowner assistance program announced in March 1995.

While the program was successful in identifying affected heating systems and warning homeowners of the potential risks -- more than 10,000 households have been identified and notified to date -- it did not go far enough in encouraging correction of affected heating systems on a voluntary basis.

This, together with growing evidence that these systems will fail prematurely, has led the Ministry of Consumer and Commercial Relations to issue a Director's Safety Order in support of its commitment to public safety. With the issuance of the Safety Order, the homeowner assistance program is no longer in effect.

The Ministry has been compelled to issue the Safety Order due to accumulated engineering and technical evidence indicating that high- temperature plastic venting systems bearing the brand names Ultravent, Sel-vent and Plexvent are defective, that premature failure will take place and that the risk of failure increases with the length of use. The Order requires all homeowners with these systems to correct them by August 31, 1996. After that date, gas utilities and propane distributers will be required by law to shut off the gas supply to any of these systems that have not been corrected.

Attached is a copy of the Director's Safety Order, a Consumer Advisory, an information notice to affected homeowners and questions and answers addressing their concerns as well as the Ontario New Home Warranty Program press release. A similar package will be sent to all of the homes identified as having one of these systems installed.

Michael F. Philip, P. Eng.
Director


MINISTRY OF CONSUMER AND COMMERCIAL RELATIONS September 10, 1995

DIRECTOR'S SAFETY ORDER
HEATING SYSTEMS WITH HIGH-TEMPERATURE PLASTIC VENTS

Mounting engineering and technical evidence in Ontario and elsewhere confirms that heating systems using high-temperature plastic vents are defective, that premature failure of the vents will take place and that the risk of failure increases with length of service. Specific heating systems using plastic vents bearing the brand names Plexvent, Sel-vent and Ultravent are affected. Over the past two years, four bulletins and a number of consumer advisories have been issued in Ontario as this evidence has been accumulating.

To eliminate the risk associated with these systems, owners are required to correct them with a fully approved heating system prior to August 31, 1996. The options for correction consist of:(a) an existing appliance with an approved alternate vent, if available, or (b) a replacement heating system consisting of vent and appliance. Temporary repairs made using improved plastic materials are not acceptable corrections after August 31, 1996.

After August 31, 1996 natural gas utilities and propane distributors will no longer be permitted to supply gas to these defective systems in Ontario.

This Safety Order is issued under the authority of the Ministry of Consumer and Commercial Relations Act. R.S.O. 1990, Cm.21, as amended by subsection 90(3) of the Statute Law Amendment Act (Government Management and Services), 1994.

Note that you have a right to a hearing on this Safety Order with the Director. The hearing must be applied for in writing (by the owner of the system), within 90 days of the date of this Safety Order, to the Director, Engineering and Standards Branch, at:

Ministry of Consumer and Commercial Relations
3300 Bloor Street West, 4th Floor, West Tower
Etobicoke, ON M8X 2X4

Applications must include the applicant's name, address, telephone number, type of heating system and its date of installation.

Issued this 12th. day of September, 1995, at Etobicoke, Ontario

(signed)
___________________________________
Director, Engineering and Standards


ONTARIO MINISTRY OF CONSUMER AND COMMERCIAL RELATIONS NEWS RELEASE

CONSUMER ADVISORY

September 12, 1995 Plastic vents safety order issued

The Ministry of Consumer and Commercial Relations today issued a Safety Order requiring all Ontario owners of heating systems with high-temperature plastic vents have these systems corrected by August 31, 1996. The Safety Order, together with an information package, will be sent directly to homeowners who have been identified at this time as having these systems in their homes.

Mounting engineering and technical evidence in Ontario and in other jurisdictions confirms that heating systems using high-temperature plastic vents are defective, that premature failure will take place due to cracked pipes or fittings, or to loosened joints, and that the risk of failure increases with the length of use. These venting systems bear the brand names Ultravent, Sel-vent and Plexvent.

"The priority of my ministry is to ensure public safety," said Consumer Minister Norman Sterling. "When it became evident that these venting systems would fail prematurely, we took decisive action. Such a decision is not made without considering the effect it will have on a large number of people. However, in this case, it was the only responsible course open to us. In addition, we are advising homeowners on steps they can take to maintain the safety of their heating systems this winter."

Because the premature failures represent a long-term safety hazard in that carbon monoxide may leak into living spaces, the Ministry has issued the Safety Order requiring the correction of these systems with a fully approved system. An approved system could be either an existing appliance with an approved alternate venting system or a replacement appliance and vent.

Owners of new homes purchased from 1988 on with these heating systems originally installed are covered under the Ontario New Home Warranty Program (ONHWP) and are eligible to have their heating system corrected at no cost to the homeowner. These homeowners are advised to contact their local ONHWP office for further details.

For homeowners not covered by the ONHWP, major gas utilities are prepared to arrange for the correction of the system at preferential pricing and financing through their customer's gas bill. These homeowners can contact their local gas utility for additional information.

In the interim, the Ministry advises affected homeowners that they can keep their systems safe through the current heating season by ensuring that their vent system has been dully inspected and repaired if necessary, maintaining their furnace, and installing a carbon monoxide detector (available at most hardware stores or other retail outlets). Concerned homeowners affected by the Safety Order can request an additional free inspection of their heating system by contacting their local utility.

-30-

Contact: Matt Blajer, Communications Branch, (416) 326-8534
Ken Taylor, Technical Standards Division, (416) 325-1606


Sept 10, 1995
BACKGROUNDER

HIGH-TEMPERATURE PLASTIC GAS VENTING SYSTEMS

High-temperature plastic venting systems are used to exhaust the products of combustion from heating appliances such as furnaces, boilers and water heaters to the outdoors.

These types of systems were introduced into the market as early as 1988. Over the past three years these high-temperature vents have been installed primarily in conjunction with mid-efficiency heating appliances.

The Ministry of Consumer and Commercial Relations (MCCR) accumulated evidence of a significant number of failures of plastic vents in early 1994. The ministry issued a consumer alert and placed newspaper advertisements in March 1994, so that homeowners could check whether their venting systems were affected.

Over a period of time, reports of failures of the plastic venting systems continued to be received by MCCR's Technical Standards Division. The Underwriters Laboratories of Canada (ULC) accumulated sufficient evidence of failure to suspend certification of the material Subsequently, MCCR stopped further sale of the plastic vents systems and issued another consumer alert in June 1994 announcing the ban of further installation of these types of venting systems.

In November, 1994,,MCCR issued a third consumer advisory and regulatory bulletin to advise consumers of improved materials for the temporary replacement and repair only of existing vent systems

In late 1994, the Ministry of Consumer and Commercial Relations and the Ministry of Housing initiated a number of meetings with affected parties - gas utilities, vent manufacturers, furnace manufacturers, the Ontario Home Builders Association (OHBA), the Heating, Refrigeration and Air-conditioning Institute (HRAI), certification agencies and the Ontario New Home Warranty Program (ONHWP) - to ensure a unified approach to solving the problem.

The resulting agreement instituted a homeowners assistance program which was announced in March 1995.

However, sufficient evidence has now become available through research and repair data to confirm that heating systems using high-temperature plastic vents bearing the brand names Ultravent, Sel-Vent and Plexvent are defective in that premature failure will take place, and that the risk of failure increases with the length of service.

In order to remove the long-term risk associated with these systems, a Safety Order has been issued to all affected homeowners requiring them to correct their systems by August 31, 1996, and notifying them that natural gas utilities and propane distributors will be required to discontinue the supply of gas to nay heating system which has not been corrected by that date.

With the issuance of the Safety Order, the homeowner assistance program is no longer in effect.

Ontario, the first jurisdiction in North America to address this problem, is continuing to work with the industry and the certification agencies to ensure continued public safety.

-30-


Ontario New Home Warranty Program September 12, 1995

Page 1
HIGH TEMPERATURE PLASTIC VENTING
SPECIAL ANNOUNCEMENT

The Ontario Ministry of Consumer and Commercial Relations (MCCR) issued a Safety Order on September 12, 1995 stating that "heating systems using high-temperature plastic vents are defective that premature failure will take place and that the risk of failure increases with length of service." A copy of the Safety Order is being sent by registered mail to all homeowners who called the mid-efficiency furnace hot line established by MCCR earlier this year.

The Safety Order requires that all heating systems using the high temperature plastic venting systems sold under the trademarks of Plexvent, Selvent and Ultravent must be corrected by August 31, 1996. The options for correction are replacing the heating system consisting of vent and furnace or appliance, or, retaining the existing furnace or appliance and installing an approved alternate vent.

With the issuance of the Safety Order, the homeowner assistance program is no longer in effect. The Ontario New Home Warranty Program (ONHWP) estimates that 7,500 new homes are affected.

Warranted Defect

Classifying high temperature plastic venting as defective makes it a warranted defect covered by the Ontario New Home Warranty Program (ONHWP). As is the case in any warranted claim, ONHWP will stand in the builder's shoes if the builder is unable to correct the defect.

In the interests of public safety, ONHWP has made the commitment that all identified installations will be made safe for the coming heating season. All affected systems will be inspected immediately; temporarily repaired, if necessary; and all venting joints will be taped immediately by a certified installer, whether they are damaged or not.

In the longer term, ONHWP will work with the industry to identify and carry out appropriate corrective action so that all affected heating systems meet the current Safety Order deadline of August 31, 1996.

ONHWP is aware of the possibility of timely approval of alternate venting products including stainless steel vents which could provide the most economical long-term solution to correcting heating systems. We will keep you informed of developments.

Customer Service

ONHWP is asking all builders who have installed heating systems using high temperature plastic venting since 1988 to:

  1. immediately contact their purchasers who have an affected heating system in their home

  2. arrange to have the heating system inspected; temporarily repaired, if necessary; and all venting joints taped by a certified installer immediately, whether they are damaged or not.

  3. ensure a permanent correction is made that meets the requirements of the Safety Order

  4. notify ONHWP that the correction has been made.

Refusal to carry out the above will be considered by ONHWP to be a breach of warranty. ONHWP will implement claim cost recovery from builders as it does in any warranted claim where the builder cannot or will not perform the work.

ONHWP is advising ali new homeowners who have a heating system with high temperature plastic venting installed since 1988 to:

  1. contact their builder immediately

  2. advise their ONHWP office that they have one of the defective heating systems in their home and that they have asked their builder to make it safe

  3. advise their ONHWP office in writing immediately if their builder is unable or unwilling to arrange for the heating system to be inspected, replaced or an alternate venting system to be installed.

Compensation for consumers who have already replaced or repaired their heating system.

ONHWP endorses compensation to those new homeowners who have already incurred legitimate replacement or repair costs prior to the Safety Order issued on September 12, 1995. In order to qualify for compensation the replacement or repairs must meet the requirements of the Safety Order.

ONHWP considers a builder's refusal to compensate new homeowners for these costs to be a breach of warranty and will implement standard claim cost recovery procedures.

Cost Recovery

ONHWP will be pursuing loss recovery litigation. Builders who have incurred expenses are invited to join in that action. If you plan to join the law suit you must keep accurate information concerning your costs including:

Need More Information

For more information contact your ONHWP office. A list of ONHWP offices is included on the back of this Special Announcement.

Questions about ONHWP's policy decision should be directed to Dennis Faubert, Project Manager, 1-800-387-7861


Ministry of Consumer and Commercial Relations Page 1

PLASTIC VENTS
QUESTIONS AND ANSWERS

  1. Why is the Government issuing a Safety Order now, requiring affected Ontario homeowners to correct their heating systems?

    Answer. Mounting engineering and technical evidence in Ontario and elsewhere confirms that heating systems using high temperature plastic vents are defective, that premature failure will take place and that the risk of failure will increases with the length of use. The Government has a duty to protect public safety and is taking decisive action to eliminate the risk.

  2. What other options did the Government consider in arriving at a decision to issue this Safely Order?

    Answer. The government considered a continuation of the homeowner assistance program, together with a program of on-going inspection but determined that this would not adequately guarantee the safety of the public in the long term.

  3. Earlier this year you advised that a new alternate venting product would emerge by now. This appears to be a less-expensive option than completely replacing the heating system. What is the status of alternate venting products?

    Answer. The process to develop and certify an alternate product has been much more difficult than originally anticipated. The time required to develop both the new standard (issued in mid-July 1995) and to conduct the testing on new venting materials has taken a lot longer than one expected. The new standard requires vent manufacturers to carry out extensive testing before placing new products on the market.

    At this time we are aware that one manufacturer has applied to have their alternate product tested against the new standard. Other vent and appliance manufacturers are studying the use of alternative venting materials such as aluminium and stainless steel. We also expect that plastic vent manufacturers will submit their improved products for testing in the near future.

  4. What about the homeowner assistance program announced last March?

    Answer. With the issuance of the Safety Order, the homeowner assistance program is no longer in effect. While the program was successful in identifying affected heating systems and warning homeowners of the potential risk -- more than 10,000 households have been identified and notified to date -- it did not succeed in encouraging correction of defective heating systems on a voluntary basis.

    Given the evidence of premature failure and the absence of an affective correction program, the Ministry's only course of action to meet its commitment to public safety was to issue the Safety Order.

  5. What am I entitled to as a new homeowner?

    Answer. You should contact the ONHWP directly for details. You will be entitled to a heating system which meets the requirements of the Safety Order. This approved system could be your existing appliance with an alternate vent, if available,or a replacement appliance and vent.

  6. What am I entitled to if I had my present heating system installed as a replacement for an older furnace?

    Answer. You are not eligible for assistance under the Ontario New Home Warranty Program. New homeowners have paid a substantial premium for warranty coverage. You should contact your local gas utility. The major Ontario gas utilities are prepared to arrange for the correction of your system at preferential pricing and financing through your gas bill.

  7. I had my old furnace replaced with one of these defective systems. Why are new homeowners covered and not me? Why isn't the government paying for my furnace?

    Answer. New homeowners have paid a substantial premium for warranty coverage. This coverage applies to heating systems. The repair or replacement of a failed product is the responsibility of the manufacturer or the supplier. If they are unable or unwilling to deal with the problem, the homeowner has the option of pursuing compensation through the courts. The government's primary obligation is to make certain the public is advised of safety hazards.

  8. What if I have already taken action to replace my defective heating system - will I receive compensation?

    Answer.

    1. If you purchased a new home since 1998, you have coverage under the Ontario New Home Warranty Program (ONHWP).
    2. Homeowners not covered under ONHWP are not entitled to warranty compensation.

  9. If I want an additional safety inspection prior to the upcoming heating season who can I call?

    Answer. Ontario gas utilities have agreed under these new measures to provide a no-cost additional inspection to affected home-owners who request it. You should contact your local gas utility.

  10. The Safety Order refers to a cut off date of August 31, 1996 for action on heating system correction. What will happen if I have not taken action by that date?

    Answer. If an affected heating system is not corrected by August 31, 1996, the natural gas utilities and propane distributors are required under Ontario law to disconnect the supply of gas to the heating appliance.

  11. Are you saying that I must correct my heating system immediately or risk injury or death over the coming (1995/96) heating season?

    Answer. No. However, the risk of failure increases over time -- that is why the Safety Order requires correction before August 31, 1996. In the meantime, you can maintain the safety of your heating system by:

    1. ensuring your vent system has been inspected and repaired if necessary,
    2. maintaining your furnace,
    3. installing a carbon monoxide detector which can be purchased at most major hardware stores of other retail outlets.

  12. I am a new homeowner and I won't be able to correct my faulty heating system in time for this heating season. Will the ONHWP pay for the stop-gap repair?

    Answer. The Ontario New Home Warranty Program covers both repair and replacement of these systems.

  13. What if I had my system already replaced or repaired with an improved plastic vent product?

    Answer. The improved plastic products have not yet been tested against the new standard and therefore were only approved for temporary replacement or repair of existing vents. The Safety Order requires correction of these systems by August 31, 1996.

  14. Will carbon monoxide detectors be mandatory for those who choose not to correct their heating system until 1996?

    Answer. Carbon monoxide detectors are not mandatory, however they are highly recommended as a way of enhancing the safety of your heating system.

  15. Can I still get the free carbon monoxide (CO) detector that was offered under the homeowners' assistance program?

    Answer. CO detectors are not longer available under the former homeowner assistance package.

  16. Does this Safety Order apply to only the mid-efficiency appliances?

    Answer. All heating systems using high-temperature plastic vents with the brand names Plexvent, Sel-vent and Ultravent must be corrected. These are primarily used on mid-efficiency furnaces, but they are also on some appliances described as high-efficiency.

  17. I'm selling (of have already sold) my house. What does the Safety Order mean? Am I obligated to disclose the problem?

    Answer. The Safety Order means that the heating system must be corrected with an approved system by August 31, 1996. The owner of the house at that time is obliged to ensure that this is done. Consult a lawyer regarding notification to a purchaser.


ONTARIO NEW HOME WARRANTY PROGRAM

NEWS RELEASE

FOR IMMEDIATE RELEASE

DEFECTIVE HEATING SYSTEMS WITH HIGH-TEMPERATURE
PLASTIC VENTS COVERED BY ONTARIO NEW HOME WARRANTY PROGRAM

12 SEPTEMBER, 1995 - TORONTO - Defective heating systems with high temperature plastic vents installed in newly built homes since 1988 are covered by the Ontario New Home Warranty Program (ONHWP).

The Ontario Ministry of Consumer and Commercial Relations issued a Safety Order on September 12 requiring the correction of the systems by August 31, 1996. Engineering and technical evidence confirms that high-temperature plastic venting systems sold under the trademarks of Plexvent, Sel-vent and Ultravent are defective. The pipes can crack or separate at the joints causing flue gases which contain carbon monoxide to leak into the home.

Options for replacement include installing a new furnace, boiler or other heating appliance and vent pipe or retaining the existing furnace and installing an approved alternate vent. Approximately 7,500 new homes are affected.

" We recognize that these claims are a significant health and safety concern for new homeowners. That's why we're setting up a specialty unit to handle them. In the interests of public safety, we're moving ahead quickly to ensure that all identified installations are made safe for the coming heating-season", said Aubrey LeBlanc, President/Registrar of ONHWP.

"We're undertaking, either through the builder or our own contractors, to make certain that all systems are immediately inspected and temporarily repaired, if necessary. As an extra precaution all joints in the venting system will be taped by a certified installer, whether they are damaged or not", LeBlanc added.


ONTARIO NEW HOME WARRANTY PROGRAM NEWS RELEASE

September 12, 1995 Page 1

TO ALL REGISTERED HOMEBUILDERS

Many homebuilders who installed heating systems with high-temperature plastic vents have contributed to repairing or replacing these systems under the homeowner assistance program announced in March, 1995.

While the program was successful in identifying affected heating systems and warning homeowners of the potential risks -- more than 10,000 households have been identified and notified to date -- it did not go far enough in encouraging correction of affected heating systems on a voluntary basis.

Together with growing evidence that these systems will fail prematurely, this has led the Ministry of Consumer and Commercial Relations to issue a Director's Safety Order in support of its commitment to public safety. With the issuance of the Safety Order, the homeowner assistance program is no longer in effect.

The Ministry has been compelled to issue the Safety Order due to accumulated engineering and technical evidence indicating that high-temperature plastic venting systems bearing the brand names Ultravent, Sel-vent and Plexvent are defective, that premature failure will take place and that the risk of failure increases with the length of use. The Order requires all homeowners with these systems to correct them by August 31, 1996. After that date, gas utilities and propane distributors will be required by law to shut off the gas supply to any of these systems that have not been corrected.

Attached is a copy of the Director's Safety Order, a Consumer Advisory an information notice to affected homeowners and questions and answers addressing their concerns. A similar package will be sent to all of the homes identified as having one of these systems installed.

In the longer term, ONHWP has committed to work with the industry to identify and carry out appropriate and approved corrective action so that all heating systems which use high temperature plastic venting meet the current Safety Order by the August 31, 1996 deadline.

We're urging new homeowners who have a heating system using high- temperature plastic vents to contact their builder immediately, said Audrey LeBlanc, President/Registrar on ONHWP.

"As is the case in any warranted claim, ONHWP will stand in the builder's shoes if the builder is unable to ensure that the heating system is made safe, LeBlanc added.

New homeowners with affected systems should:

  1. Contact your builder immediately.

  2. Advise your ONHWP office that you have one of the defective heating systems in your home and that you have asked your builder to make it safe.

  3. Advise your ONHWP office in writing immediately if your builder is unable to arrange for the heating system to be replaced or an alternate venting system to be installed.

ONHWP is planning to provide compensation to those new homeowners who have already incurred legitimate replacement or repair costs prior to the Safety Order issued on September 12. In order to qualify for compensation the replacement or repairs must meet the requirements of the Safety Order.

ONHWP estimates that high temperature plastic venting claims will cost ONHWP between $8 and $10 million, depending on the exact number of new homeowners affected, market prices, labour and other associated costs.

Editor's Note:
For more information: Janet Mowat, Manager, Communications
Ontario New Home Warranty Program
(416) 229-3828 1-800-668-0214 ext. 828

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