Latest updates on the targeted regulatory review – November 2023

From: Transport Canada

Transport Canada (TC) has made several advancements in implementing the Transportation Roadmap.

Key thematic outcomes are summarized below, followed by updates on specific initiatives. Earlier updates (February 2021) are available here.

Key Outcomes

Improving flexibility in the regulatory framework for transportation

TC is advancing initiatives that address prescriptive regulations acting as a barrier to the development of emerging technologies and modern business practices. For instance, TC continues to advance work under its Marine Safety Regulatory Modernization Initiative to remove regulatory burdens for Canada’s marine sector, and transition to a regulatory regime that is progressively risked-based. In June 2021, TC published the final Vessel Safety Certificates Regulations (VSCR) in the Canada Gazette, Part II, which replaces the former Vessel Certificates Regulations and modifies their structure to increase clarity for stakeholders. In addition, the VSCR contains updated provisions to better align with the Canada Shipping Act, 2001 and clarified/modernized regulatory requirements while also addressing recommendations made by the Standing Joint Committee for the Scrutiny of Regulations.

Strengthening coordination among jurisdictions and collaboration with industry

TC is advancing initiatives that respond to stakeholder requests for better internal coordination to minimize administrative burden for regulated parties. For instance, an initiative that has considerably reduced paper burden on stakeholders is the myTC Account project, which is moving the delivery of paper-based services online and aims to onboard all TC services over time. For example, automobile dealerships have welcomed the myTC Account capabilities for dealers to submit Zero Emissions Vehicles claims digitally, rapidly, and efficiently to TC. In fact, the service processed over 195,000 claims as of January 1, 2023 and TC will continue to refine and add modernized functionalities to the applications over the coming years to improve these services for stakeholders.

Improving clarity and certainty within the transportation regulatory framework

TC is advancing initiatives that address fragmentation in regulatory frameworks and addressing unclear definitions and vague wording in regulations that limit innovation and investment. For instance, in July 2023, TC completed its study entitled Case Study Examining Transport Canada’s Regulatory Impact on Canadian Supply Chains. The findings demonstrate the importance of applying a systemic end-to-end lens on Canadian supply chains when examining regulatory barriers and cumulative burden. Through funding received in Budget 2022, TC is undertaking a project to leverage technology and analytics to help assess the cumulative impact of regulations on specific regulated parties, automate reporting on administrative burden, and identify documents incorporated by reference into regulation.

Encouraging greater digitalization of services

TC is advancing initiatives that aim to improve data collection, as well as the data-sharing capabilities of the department, helping to increase operational efficiency, reduce industry burden, and encourage innovation. For instance, in April 2021, TC launched a new online application to allow vessel owners to request and pay for marine insurance certificates and modernized the fee structure to minimize the burden on Canadian taxpayers. Since its launch, 2,833 marine insurance certificates have been issued. Almost 100% of clients have opted to use the online application and digital payment system in 2022 (only 3% of the transactions were paid by cheque) and reported satisfaction with the simplicity of the process.

Advancing novel approaches

From 2020 to 2022, TC created a regulatory sandbox to collaborate with industry to explore the feasibility and benefits of adopting electronic shipping documents as an alternative to paper for the transportation of dangerous goods. The project evaluated whether an equal or greater level of safety could be achieved by using electronic shipping documents instead of paper. The use of e-shipping documents by participating companies (three rail carriers, three road carriers, and one remotely piloted aircraft company) resulted in over 21 million sheets of paper saved, and enabled enhanced accident site response, faster sharing of information, and increased compliance. All stakeholders supported the deployment of a portal as a modern-day approach to ensuring the submission of electronic shipping documents for all modes of transportation. Based on the findings of the project, TC is also undertaking actions to allow use of e-shipping documents for rail and remotely piloted aircraft.

TC led another pilot project in collaboration with industry, academia, provincial authorities, and regulatory partners to test truck platooning technologies. The project was completed in October 2022, and enabled TC and partners to collect data from over 23,000 kilometers of on-road commercial trucking operations. TC published two reports outlining the findings on various aspects of the platoon’s performance, including traffic interactions, disengagement events, fuel consumption, as well as human factor considerations (e.g., fatigue). The project successfully identified and helped mitigate regulatory challenges related to the deployment of platooning technologies in Canada, which was achieved through close cooperation with provincial and municipal authorities. It also established new research approaches to help assess human factor implications of automated commercial vehicle operations. For more information, refer to the video developed by Cooperative Truck Platooning System project partners.

Considerations

TC continues to be impacted by the COVID-19 pandemic, and departmental resources were reallocated to several programs, for instance to work on interim orders related to vaccine mandates, masking, and the re-start of aviation. This affected the implementation of several initiatives, particularly those involving proposed amendments to many regulations.  In other cases, shifting internal priorities and the need to advance emerging files resulted in delays in the regulatory drafting process for some modernization initiatives.

In addition, two initiatives (the proposition of new Ministerial Orders for the Minister of Transport under the Aeronautics Act; and amendments to the Canadian Aviation Regulations to address the labour shortage in the aviation sector) are no longer being pursued because the steps originally identified are no longer required to achieve the objectives of the initiative.

Despite challenges, TC remains committed to advancing Roadmap initiatives in support of better client services, to reduce administrative burden, and improve technology adoption in the transportation sector.

Initiative Updates

Enhancing digitization across the transportation sector

  • To keep pace with rapidly changing industry needs in all areas of transportation, Transport Canada (TC) digitized many of its paper-based processes. This makes TC’s services more time efficient for Canadians, while reducing the paper burden associated with several of TC’s current services (e.g., processes for obtaining permits, certifications and licences).
  • This initiative is complete.

Amending the Canadian Aviation Regulations to provide more clarity and flexibility for remotely piloted aircraft systems

  • Transport Canada continues to actively work on the regulatory proposal to amend the Canadian Aviation Regulations to expand visual line-of-sight operations and lower-risk beyond-visual-line-of-sight operations for remotely piloted aircraft systems up to and including 150kg.
  • Proposed amendments were pre-published in the Canada Gazette, Part I on June 24, 2023, with a subsequent 90-day consultation period.

Introducing online licensing and examinations for remotely piloted aircraft systems

Providing more clarity, flexibility and harmonization under the Marine Safety Regulatory Modernization initiative

  • Transport Canada (TC) continues to advance several regulatory packages related to marine safety and is regularly engaging with stakeholders through online consultation opportunities and via bi-annual meetings of the Canadian Marine Advisory Council (CMAC).
  • Consultations on the Marine Personnel Regulations (MPR 2024) have been ongoing since 2010, primarily through discussions held at both the national and regional Canadian Marine Advisory Council. In December 2021, a public consultation document of the proposed regulations was shared with key stakeholders at the CMAC Standing Committee on Personnel, and a follow-up What We Heard Report based on stakeholder comments was provided directly to the Canadian Marine Advisory Council’s Marine Personnel Standing Committee in May 2022.
  • Proposed amendments are anticipated to be pre-published in the Canada Gazette, Part I in Spring 2024.
  • TC continues to actively work on the regulatory proposal to amend the Vessel Pollution and Dangerous Chemicals Regulations (VPDCR). In addition to the Regulatory updates provided at National and Regional Canadian Marine Advisory Council meetings, stakeholder consultation will take place in 2023.

Supporting digital service delivery and harmonization under the Marine Safety and Security Service Delivery Modernization Initiative

  • Transport Canada has made significant progress in transforming its business lines in the marine sector from paper to digital services, launching several systems to support web services for stakeholders. Examples include the issuance and validation of digital certificates, the ability to process marine medical certificate report requests digitally, to issue new Minister’s Medical Certificates with the Seafarer Services Application, and a new online application that allows vessel owners to request and pay for marine insurance certificates.
  • This initiative is complete.

Introducing more flexibility by the Strengthening Motor Vehicle Safety for Canadians Act

  • Transport Canada (TC) is developing regulatory amendments to support recent updates to the Motor Vehicle Safety Act resulting from the Strengthening Motor Vehicle Safety for Canadians Act which received Royal Assent in March 2018. Amendments made were to strengthen the Minister of Transport’s enforcement and compliance authorities in road safety, and to provide more flexibility for emerging technologies. The proposed regulatory amendments on TC’s Road Safety Forward Regulatory Plan will allow industry to introduce new innovative technologies at a more rapid pace than is currently possible, thereby further supporting industry’s competitiveness and Canada’s economic recovery.

Introducing flexible policy frameworks for connected and automated vehicle technology

Amending regulations for the importation of non-compliant motor vehicles to provide more flexibility

Enhancing harmonization, coordination and collaboration for connected and automated vehicles

Introducing the Enhanced Road Safety Transfer Payment Program to support national alignment across jurisdictions on road safety issues including connected and automated vehicles

  • The Enhanced Road Safety Transfer Payment Program (ERSTPP) supports projects to establish nationally consistent approaches that address road safety challenges through a range of tools, such as frameworks, standards, policies, programs, and outreach activities, while also promoting the innovative design, testing, and integration of safety-enhancing technologies, including for connected automated vehicles and advanced driver assistance systems.
  • Since 2019, the Minister of Transport has approved 89 projects advanced by provinces, territories and municipalities, the Canadian Council of Motor Transport Administrators, academia, not-for-profit and public sector organizations, and other road safety stakeholders under the ERSTPP.
  • The majority of the approved projects (78) are complete. Three projects are complete with a reduced scope of activities due to third party constraints and three projects received extensions until 2024. Five projects were cancelled by the recipient due to challenges related to the pandemic.

Enhancing clarity in connected and automated vehicle requirements and motor vehicle safety

Digitizing services for connected and automated vehicles and motor vehicle safety

Amending the Canadian Aviation Regulations to provide more flexibility, clarity and harmonization

  • Transport Canada is proposing several regulatory amendments to the Canadian Aviation Regulations over the next two years focused on codifying longstanding exemptions, clarifying regulatory text, better aligning the English and French versions of the regulations, addressing issues raised by the Standing Joint Committee for the Scrutiny of Regulations, and shifting towards a more performance-based regulatory approach.

Proposed Ministerial orders for the Minister of Transport under the Aeronautics Act

  • Transport Canada (TC) is no longer proposing to seek Governor in Council approval for Ministerial Orders for the Minister of Transport to grant more flexible authority in specific safety areas that are constantly evolving and require timely rulemaking.
  • As a result of COVID-19, TC has tested and relied on other tools, such as the use of Notices to Airmen and regulatory exemptions to address urgent operational and safety requirements, and support innovation and business development.

Addressing labour shortage in the aviation sector by amending the Canadian Aviation Regulations to promote flexibility

  • Transport Canada (TC) is no longer proposing to amend the Canadian Aviation Regulations to address labour shortages. TC will continue to work closely with other federal departments, provinces, territories, and stakeholders to ensure aviation needs are taken into consideration when programs are developed to address labour shortages.

Updating regulations for aviation and rail under the Regulatory Modernization Initiative

Conducting a Transportation Sector Regulatory Review

  • In July 2023, Transport Canada completed its study entitled Case Study Examining Transport Canada’s Regulatory Impact on Canadian Supply Chains.
  • The case study has highlighted the need for systemic and cross-modal lenses for regulatory regimes to support innovation as well as the interoperability and interdependency of different modes of transport along supply chains. The findings align with the Supply Chain Task Force Panel recommendations and demonstrate the importance of applying a systemic end-to-end lens of Canadian supply chains when examining regulatory barriers and cumulative burden.
  • An Executive Summary detailing the research and findings of the case study was published on Transport Canada’s website in October 2023.
  • This initiative is complete.

Introducing test ranges for remotely piloted aircraft systems

Conducting pilot projects for beyond visual line-of-sight for remotely piloted aircraft systems

Accelerating commercial testing of remotely piloted aircraft systems operating beyond visual line-of-sight

  • Between 2020 and 2022, Transport Canada (TC) participated in international standards setting discussions and strengthened partnerships with other civil aviation authorities to continue to share best practices and look for opportunities to harmonize.
  • In August 2022, TC completed two airspace traffic management trials with Canadian companies. The results from these trials will be used to inform future commercial testing of remotely piloted aircraft systems operating beyond visual line-of-sight and future regulatory development that supports innovation in the aviation industry.
  • This initiative is complete.

Introducing a Cooperative Truck Platooning pilot project

  • In February 2021, Transport Canada (TC) launched a pilot to collaborate with industry, provincial authorities, and regulatory partners to evaluate ‘real-world’ truck platooning benefits in Canada. 
  • Led by the Alberta Motor Transport Association, the trials were completed in January 2022 and the Truck Platoon Pilot Report and the Driver Experience Report were both published in February 2023, outlining experiences and data gained from over 23,000 km of on-road commercial trucking operations. The results will be used to inform national platooning guidance, best practices, and operations in Canada.
  • This initiative is complete.

Proposing a pilot project to increase and evaluate delegation of authority to Canadian aircraft manufacturers issuing flight permits

  • Transport Canada is working on an advisory circular and developing training to increase the delegation of authority to Canadian aircraft manufacturers to streamline the process for the issuance of test flight permits.
  • The advisory circular, which will be shared for internal and external consultations with Canadian Aviation Regulations 561 certificate holders, is expected to be completed in 2025.

Introducing a regulatory sandbox for dangerous goods electronic shipping documents

  • From January 2020 to March 31, 2022, Transport Canada (TC) created a Regulatory Sandbox to collaborate with industry to explore the feasibility and benefits of adopting electronic shipping documents as an alternative to paper in the transportation of dangerous goods.
  • An Executive Summary detailing the research and findings of the project was published on Transport Canada’s website in October 2022.
  • The comprehensive report was made available on TC’s website in December 2022. The report analyzes the results of the project and recommends how electronic documents can be adopted in a way consistent with the Transportation of Dangerous Goods Regulations.
  • This initiative is complete.

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