Forward Regulatory Plan: 2019 to 2021 - Regulations Amending Certain Regulations made under the Canada Transportation Act (Rail Transport)
Enabling act(s)
Description
In May 2016, the Canadian Transportation Agency (CTA) launched its Regulatory Modernization Initiative (RMI). The rail phase of the RMI, which is required to address amendments to the Canada Transportation Act (Act), was launched with the following goals:
- Ensuring that industry’s obligations are clear, predictable, and relevant to a range of existing and emerging business practices.
- Ensuring that the demands associated with compliance are only as high as necessary to achieve the regulations’ purposes.
- Facilitating the efficient and effective identification and correction of instances of non-compliance.
The CTA is proposing changes to the Railway Interswitching Regulations, the Railway Third Party Liability Insurance Coverage Regulations and the Canadian Transportation Agency Designated Provisions Regulations.
Specifically, the proposal would make regulatory updates to align with changes to the Act made in May 2018 under the Transportation Modernization Act, including the introduction of Long Haul Interswitching and changes in how regulated interswitching rates are set. In addition, the proposed regulations would prescribe filing requirements for freight railway companies so that the CTA can validate that they are carrying appropriate minimum third party liability insurance coverage, in line with changes to the Act under the 2015 Safe and Accountable Rail Act. Finally, the proposed regulations would designate rail-related provisions of the Act, and CTA Orders, as subject to Administrative Monetary Penalties of up to $25,000 per violation, to ensure they can be readily enforced.
This phase of the CTA's RMI has also been included in Transport Canada's targeted Regulatory Review Sectoral Roadmap.
Regulatory cooperation efforts (domestic and international)
The regulations under review do not form part of a regulatory cooperation effort, as they primarily affect Canadian rail service providers.
Potential impacts on Canadians, including businesses
The proposed regulatory provisions would be applicable to federally regulated passenger and freight railway companies. The proposed regulations are not expected to result in increased compliance or administrative costs to railways.
This proposal is expected to have no significant impacts on international trade.
Consultations
The Discussion Paper on Regulatory Modernization for Rail Transportation was posted on the CTA's website on May 30, 2018, launching the rail phase of the RMI.
The consultation process included 20 formal bilateral meetings with representatives from Canadian and U.S. passenger and freight railway companies, rail tourist operators, industry associations, grain shipper associations, associations representing logistics and freight management, private companies who are users of rail, and other industry experts. In addition, the CTA received 26 written submissions from stakeholders. The input is summarized in a What We Heard Report.
The proposed regulations were published in Part I of the Canada Gazette on March 30, 2019 for a 30-day public review and comment period. It is expected that final regulations will be published in Part II of the Canada Gazette in summer 2019.
Further information
The cost-benefit analysis related to this regulatory initiative can be requested from the CTA contact.
Contact information
Lidija Lebar
Senior Director
Analysis and Regulatory Affairs Directorate
Canadian Transportation Agency
Telephone: 819-953-3325
Email: Lidija.Lebar@otc-cta.gc.ca
Date the regulatory initiative was first included in the Forward Regulatory Plan
October 2016
Consult the CTA’s acts and regulations web page for:
- a list of acts and regulations administered by the CTA
- further information on the CTA’s implementation of government-wide regulatory management initiatives
Consult the following for links to the Cabinet Directive on Regulation and supporting policies and guidance, and for information on government-wide regulatory initiatives implemented by departments and agencies across the Government of Canada:
To learn about upcoming or ongoing consultations on proposed federal regulations, visit:
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