Response to parliamentary committees and external audits

From: Transport Canada

Response to parliamentary committees

Title of the report: TRAN Report 2 – Emerging from the Crisis: A Study of the Impact of the COVID-19 Pandemic on the Air Transport Sector

Summary of the report:

On June 16, 2021, the Standing Committee on Transport, Infrastructure and Communities issued its second report entitled “Emerging from the Crisis: A Study of the Impact of the COVID-19 Pandemic on the Air Transport Sector”. The report includes 31 recommendations aimed at ensuring an effective recovery of the Canadian air sector. Following the 2021 election, the report was tabled again on February 28, 2022.

Corrective actions taken to address the recommendations:

The Government supports the majority of the Report’s recommendations as detailed in the Government response, which was tabled in the House of Commons on September 15, 2022. Related information:

Title of the report: FOPO Report 6 – Marine Cargo Container Spills

Summary of the report:

On October 6, 2022, the Standing Committee on Fisheries and Oceans issued its Sixth report entitled “Marine Cargo Container Spills”. The report includes 29 recommendations aimed at improving marine cargo spill response, cross-jurisdiction collaboration, polluter responsibility and financial accountability, and reducing environmental impacts. The government supports or acknowledges most of the recommendations as detailed in the government response which was tabled in the House of Commons on February 1, 2023.

Corrective actions taken to address the recommendations:

N/A

Related information:

Title of the report: PACP Report 26 – Greening Government Strategy

Summary of the report:

The Standing Committee on Public Accounts (PACP) reviewed the Commissioner of the Environment and Sustainable Development’s (CESD) audit of the Greening Government Strategy (GGS), along with the GGS itself and tabled its own report entitled, “Greening Government Strategy” in the House of Commons on February 14, 2023. The PACP report made seven recommendations, five for Treasury Board Secretariat (TBS) and 1 each for National Defence (DND) and Transport Canada (TC). The recommendation made to TC was to provide PACP with a report outlining the activities that will contribute to GHG emissions reductions and its risk management approach. This recommendation was aligned with the recommendation the CESD made for TC in its audit of the GGS which was to:

  • Continually identify new activities that will significantly contribute to emission reductions and prioritize them based on risk; and
  • Develop a risk management approach that defines significant risks and corresponding mitigation measures.

Corrective actions taken to address the recommendations:

In response to PACP’s 7 recommendations, a Government Response supporting the recommendations was presented to the House on June 9, 2023. As committed in the Government Response, TC shared its Carbon Net-Zero Roadmap and its Greening Government Risk Management Framework with the Committee.

Related information:

Title of the report: TRAN Report 1 – A Study of Aircraft Certification in Light of two Accidents Involving Lion Air Flight 610 and Ethiopian Airlines Flight 302

Summary of the report:

On February 28, 2022, the Standing Committee on Transport, Infrastructure and Communities tabled its report entitled “A Study of Aircraft Certification in Canada in Light of Two Accidents Involving Lion Air Flight 610 and Ethiopian Airlines 302”. The report includes 14 recommendations aimed at enhancing TC aircraft certification process and further improving aviation safety. The Government supports the majority of the report’s recommendations as detailed in the government response, which was tabled in the House of Commons on September 22, 2022.

Corrective actions taken to address the recommendations:

TC is implementing several corrective actions to address the recommendations presented in the report. These measures encompass various actions, such as maintaining active participation at the Changed Product Rule International Authorities Working Group (CPR IAWG) and the Certification Management Team (CMT). The CPR IAWG group is composed of leading civil aviation authorities, namely, TC, the Federal Aviation Administration (FAA), the European Aviation Safety Agency (EASA), the National Civil Aviation Agency of Brazil (ANAC), the Civil Aviation Administration of China (CAAC) and the Japan Civil Aviation Bureau (JCAB). These civil aviation authorities are dedicated to ensuring that the certification and validation of aviation products continue to meet applicable safety standards.

The CMT is composed of TC, EASA, ANAC and the FAA which strives to continue to harmonize regulations, standards, and policies to address any common certification and validation issues. The CMT continues to hold regular meetings to identify any deficiencies and seek improvements in one another’s regulatory abilities and systems, all with the aim of improving international aviation safety.

TC and the FAA, in accordance with its Canada/U.S. Bilateral Aviation Safety Agreement (BASA), continue to perform periodic evaluations and assessments of one another’s aircraft certification systems to verify their equivalency and compatibility.

TC is also revising its training protocols for delegate representatives, placing increased emphasis on values, ethics, and the avoidance of undue pressure. Additionally, new training requirements are being introduced for cabin safety inspectors. These requirements aim to enhance the certification and validation procedures.

TC is actively bolstering its workforce, resources, and expertise within the aircraft certification program. This augmentation is essential to meet the continuously growing demand for the certification and oversight of aircraft and aeronautical products.

To continue to foster aviation safety, TC continues to leverage the Canadian Aviation Regulatory Advisory Council (CARAC) as a primary platform. Through CARAC, TC communicates, consults, and engages with the public and stakeholders regarding any proposed amendments to the Canadian Aviation Regulations and associated standards.

Related information:

Title of the report: ENVI Report 1 – The Road Ahead: Encouraging the production and purchase of zero-emission vehicles in Canada

Summary of the report:

The Standing Committee on Environment and Sustainable Development examined the use of zero-emission vehicles in Canada, in light of the Government of Canada’s ambitious 2030 and 2050 climate change goals. Based on that examination, this committee report suggests measures that could be taken to increase the uptake of zero-emission vehicles (ZEVs) in Canada.

Three recommendations in the report fall directly within TC’s purview:

  • That the Government of Canada collects data about the means of users of the Incentive for Zero-Emission Vehicles (iZEV) Program, including household income and the number of other vehicles that the household owns or leases.
  • That the Government of Canada continue to fund ZEV incentive programs, such as the iZEV Program, while making the following adjustments to improve the accessibility of the Program:
    • Allowing used ZEVs to be eligible for incentives;
    • Adding a scrappage initiative;
    • Scaling the incentive to income; and,
    • Reviewing the price cap of the Program, in light of the pricing strategy adopted by automakers, including Tesla.
  • That the Government of Canada convene a working group bringing together representatives from government, industry and other relevant groups to study how the heavy-duty vehicle sector will transition to a net-zero future.

Actions are being taken to address all recommendations:

The Government of Canada broadly supports all three of these recommendations and has been taking actions to address them.

The Government of Canada is taking a holistic approach to reduce emissions from on-road vehicles by switching to zero-emission vehicles (ZEVs). This approach is outlined in Canada’s Action Plan for Clean On-Road Transportation, released in December 2022. A key pillar of Canada’s plan is taking regulatory action, including the proposed ZEV regulations for light-duty vehicles which were released in Canada Gazette Part I on December 31, 2022, with the regulations to be finalized through Canada Gazette Part II before the end of 2023.

The Government of Canada conducts research and analysis on an ongoing basis, in collaboration with domestic and international partners to better understand the dynamics and trends of the ZEV market, in order to ensure that programs and policies, support consumers in the transition to ZEVs, prime the market for the pending regulations, and are designed to achieve broader government objectives. This work includes, but is not limited to, studies recommended by

Canada’s newly launched ZEV Council and the International Zero-Emission Vehicle Alliance, data acquisition from third-party providers, internal surveys such as the annual Incentives for Zero-Emission Vehicles (iZEV) Program questionnaire, and other public opinion research.

Furthermore, TC continuously assesses the results and effectiveness of the iZEV Program to determine if a course correction is needed. For example, the iZEV questionnaire is sent to a sample of iZEV recipients, and includes questions related to consumer income, as well as the number of vehicles owned or leased by the consumer. This information can be used to help determine the means of users of the Program. All the information gathered through this body of work helps to inform the design of Canada’s policy instruments and ensure Canada is continuing to meet its objective of helping middle-class Canadians make the transition towards more affordable ZEVs.

To date, the Government of Canada has allocated $2.3 billion to the iZEV Program, including $1.7 billion through Budget 2022 to extend the Program until March 31, 2025, and to expand vehicle eligibility to allow higher manufacturer’s suggested retail price (MSRP) caps. This allowed for a variety of new vehicles, such as SUVs, vans, and pickup-trucks, to be eligible for the incentive. Base models for passenger vehicles now must have an MSRP under $55,000.

Higher priced versions (trims) of these vehicles, up to a maximum MSRP of $65,000, are also eligible for purchase incentives. For station wagons, pickup trucks, sport utility vehicles, minivans, vans, and special purpose vehicles, base models must have an MSRP under $60,000. Higher priced trims of these vehicles, up to a maximum MSRP of $70,000, are also eligible for purchase incentives. The Government of Canada is also encouraging businesses to adopt ZEVs by providing a tax inventive for eligible ZEVs. This tax measure also applies to used ZEVs.

Through Canada’s Emissions Reduction Plan, the Government of Canada committed to continuing efforts to make ZEVs more affordable and accessible for all Canadians and Canadian businesses, including medium- and heavy-duty ZEVS. The Government now provides purchase incentives for medium- and heavy-duty ZEVs through the Incentives for Medium- and Heavy- Duty Zero-Emission Vehicles (iMHZEV) Program ($547.7 million commitment through Budget 2022) and has also launched the $75.8 million Zero-Emission Trucking Program to help accelerate the safe deployment of medium- and heavy-duty ZEVs on Canadian roads.

Additionally, to tackle the emissions from trucks that are currently on Canada’s roads, the Government has invested $199.6M over 5 years in the Green Freight Program to help fleets reduce their fuel consumption and greenhouse gas emissions via fleet energy assessments, fleet retrofits, including the adoption of energy efficient technologies, and engine repowers.

Canada’s 2030 Emissions Reduction Plan also committed to develop a medium- and heavy-duty ZEV regulation to require 100% medium- and heavy-duty vehicle sales to be ZEVs by 2040 for a subset of vehicle types based on feasibility, with interim 2030 regulated sales requirements that could vary for different vehicle categories based on feasibility and explore interim targets for the mid-2020s.

The Government of Canada also established a new ZEV Council in March 2023, bringing together federal-provincial-territorial governments, industry, and non-government organizations to identify, discuss, and work on solutions to further accelerate the transition to ZEVs, including both light-duty and medium- and heavy-duty ZEVs. The ZEV Council has already held two meetings since its launch and has established working groups for three focus areas including: affordability; charging and refueling; and public and industry confidence. A fourth focus area on grid readiness will be covered by the Canada Electricity Advisory Council, with Natural Resources Canada liaising between both Councils. The working groups each have workplans that include undertaking research to help inform deployment efforts of both governments and the private sector and are sharing information, best practices and potential solutions related to medium- and heavy-duty ZEVs.

Related information:

Title of the report: PACP Report 5 – Follow-up Audit on Rail Safety—TC, of the 2021 Reports of the Auditor General of Canada

Summary of the report:

The follow-up Audit on Rail Safety TC, of the 2021 Reports of the Auditor General of Canada, is an audit focused on whether TC implemented selected recommendations from the 2013 audit regarding the department’s oversight of the safe transportation of people and goods on federally regulated tracks. In particular, the report examined the risk-based planning process for rail safety oversight and whether the department confirmed that railway companies corrected deficiencies affecting the safety of their operations. Overall, TC made progress in addressing recommendations from the 2013 audit in the areas that the Office of the Auditor General of Canada (OAG) followed up on; however, the OAG also found that the department still had important improvements to make. The department strengthened its approach to planning and prioritizing activities to oversee rail safety and in following up on companies’ plans and actions to address deficiencies noted in inspections. However, TC was unable to show whether departmental oversight activities have contributed to improved rail safety. In addition, the department did not assess the effectiveness of the railways’ safety management systems— despite the many reports over the last 14 years recommending that TC audit and assess these systems.

Corrective actions taken to address the recommendations:

On January 13, 2021, the OAG under the authority of the Auditor General Act, presented the results of the performance “PACP Report 5 – Follow-up Audit on Rail Safety—Transport Canada, of the 2021 Reports of the Auditor General of

Canada”. The report includes 6 recommendations that focused on whether TC implemented selected recommendations from our 2013 audit regarding the department’s oversight of the safe transportation of people and goods on federally regulated tracks. The Government supports all of the of the Report’s recommendations as detailed in the follow-up report by OAG.

Related information:

Title of the report: CIIT Report 5 – Transporting Goods in Rail Containers: Some Trade Implications for Canada

Summary of the report:

On February 24, 2023, the Standing Committee on International Trade issued its fifth report, entitled: “Transporting Goods in Rail Containers: Some Trade Implications for Canada”. The Report focuses on the study of the potential trade implications of transporting goods in rail containers. This includes witness observations detailing challenges encountered during the COVID-19 pandemic when transporting goods in rail containers and includes two recommendations put forward by the Committee for the Government of Canada’s consideration. The Government acknowledges both Report’s recommendations as detailed in the government response, which was tabled in the House of Commons on June 12, 2023, noting that the Committee’s recommendations are well-aligned with measures currently being advanced or considered by the Government of Canada.

Corrective actions taken to address the recommendations:

N/A

Related information:

Title of the report: TRAN Report 5 – Railway Safety and the Effects of Railway Operations on the Surrounding Communities in which they Operate

Summary of the report:

In May 2022, TRAN completed a report entitled “Railway Safety and the Effects of Railway Operations on the Surrounding Communities in which they Operate”, which was tabled in the House of Commons on June 2, 2022. The report concluded that work remains to be done to strengthen rail safety, particularly with regards to (1) measuring the effectiveness of safety management systems and TC’s own oversight activities; and (2) strengthening the relationship between companies and the municipalities, adjacent properties, and Indigenous communities through which dangerous goods are transported.

The Report included 33 recommendations under 4 themes: effective oversight; fatigue management; transportation of dangerous goods and emergency response; and community impact. In September 2022, TC provided a response to the recommendations highlighting considerable progress. This includes increasing the number of rail safety and transportation of dangerous goods inspectors, continuing to make use of administrative monetary penalties, and strengthening emergency response capabilities. Enhancements to rail safety has also involved implementing fatigue science-based Duty and Rest Period Rules for Railway Operating Employees and making new tank cars stronger while accelerating the phase out of older ones. The Department also launched effectiveness audits of railway company safety management systems as well as funding programs to enhance community and Indigenous engagement in rail safety.

Corrective actions taken to address the recommendations:

In May 2022, the Standing Committee on Transport, Infrastructure and Communities issued its report entitled TRAN Report 5 – “Railway Safety and the Effects of Railway Operations on the Surrounding Communities in which they Operate”. The report includes 33 recommendations to support railway safety and the effects of railway operations on the surrounding communities in which they operate. The Government supports the majority of the Report’s recommendations as detailed in the government response that was tabled in the House of Commons on June 2, 2022.

Related information:

Title of the report: TRAN Report 7 – Improving Efficiency and Resiliency in Canada’s Supply Chains

Summary of the report:

On November 16, 2022, the Standing Committee on Transport, Infrastructure and Communities issued its seventh report, entitled: “Improving Efficiency and Resiliency in Canada’s Supply Chains”. The Report focuses on the state of Canada’s supply chains, particularly considering the impacts of the COVID-19 pandemic and climate change, as well as ways to protect and strengthen Canada’s supply chain infrastructure to improve its resiliency. The report includes 43 recommendations with regard to how the government can improve supply chain visibility, identify and address bottlenecks, shorten supply chains, and improve current and future infrastructure.

The Government supports the majority of the Report’s recommendations as detailed in the government response, which was tabled in the House of Commons on March 10, 2023, noting that the Committee’s recommendations are well-aligned with measures currently being advanced or considered by the Government of Canada.

Corrective actions taken to address the recommendations:

N/A

Related information:

Response to audits conducted by the Office of the Auditor General of Canada (including audits conducted by the Commissioner of the Environment and Sustainable Development)

Response to audits from the Auditor General of Canada

Report 6 (Fall 2022) – Arctic Waters Surveillance

In response to recommendation 6.36 of the report, TC will update Canada’s Maritime Security Strategic Framework and supporting strategies and review legislation and regulations to address potential gaps and ensure that the marine transportation security framework continues to be appropriate to modern threats and risks. In response to recommendation 6.66, TC will identify options and take action to acquire in a timely manner equipment used for maritime surveillance in the Canadian Arctic and will develop contingency plans to address the risk of having reduced surveillance capabilities.

Corrective actions taken will be known when the program provides a Management Action Plan status update in October 2023.

Response to audits from the Commissioner of the Environment and Sustainable Development

Report 2 (Spring 2022) - Greening Government Strategy

In response to recommendation 2.88 of the report, TC agreed to continually identify new emission reductions activities and to develop a risk management approach that defines significant risks and corresponding mitigation measures.

As a result, TC updated its Carbon Net-Zero Roadmap (previously Carbon Neutral Roadmap) and created a Greening Government Risk Management Framework. Both documents were presented to TC’s Greening Government Steering Committee in March 2023 where they were approved. TC’s Management Action Plan for this recommendation was deemed fully completed in July 2023.

Response to audits from the Public Service Commission Canada or the Office of the Commissioner of Official Languages

There were no audits in 2022-23 requiring a response.

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