2020 to 2021 Integrated plan for regulatory framework and oversight

The Integrated Plan for Regulatory Framework and Oversight provides an overview as well as operational context of Transport Canada's Safety and Security branch's two key areas: regulatory frameworks and oversight.

On this page

• 1. Purpose
• 2. Executive summary
• 3. Operating context
  • 3.1 Changes and trends in the transportation sector
  • 3.2 Key safety risks and security threats
  • 3.3 Government and departmental priorities
  • 3.4 Addressing recommendations from the Transportation Safety Board and others
  • 3.5 Departmental transformation agenda
• 4. Innovation in risk management, regulations and oversight
  • 4.1 Regulatory framework
  • 4.2 New ways to oversee Canada's transportation sector
• 5. Planning highlights for regulatory framework
  • 5.1 Policy initiatives by mode
  • 5.2 Legislative and regulatory initiatives
  • 5.3 International engagement
• 6. Planning highlights for oversight
  • 6.1 Multimodal and Modal Oversight Design and Delivery Improvement Initiatives
  • 6.2 Oversight delivery levels
• 7. Costing tables for regulatory review and oversight
  • 7.1 Costing tables for regulatory framework
  • 7.2 Costing tables for oversight
• Annex 1 – Safety and Security Program regulated environment
• Annex 2 - International engagement

1. Purpose

This plan provides an overview of the Safety and Security Branch's plans, and includes operational context it relates to the branch's two key business: regulatory frameworks and oversight. This document is based on the plans for each of the Safety and Security branch's modal programs. It aims at supporting senior management decision making, aligning the branch's projects with Transport Canada's modernization projects (like the Transformation Office, Digital Services, and Innovation Center), highlights best practices, and champions projects that will improve our oversight regime.

2. Executive summary

Agility is essential to the Safety and Security branch's programs as we manage changes in technology, attitudes, and the economy, on top of unforeseen disruptions like the COVID-19 pandemic. Transport Canada's transformation agenda is positioning the department to be smart, trusted and agile through 5 pillars:

• Intelligent policies and programs
• Service innovation
• Transparency and public trust
• Data-driven decisions, and
• Modern and inclusive workforce

This work will improve the way we deliver safety and security programs and services to Canadians.

This fiscal year, the branch used a new method to assess public risk. This means that we can assess and calculate the cost of risks using better data about accidents, deaths, and serious injuries. Results from this process were allow programs to compare risks based on evidence which would serve as the primary input into regulatory and oversight priority-setting and planning (like risk management).

In addition to reviewing and updating public and internal risks, our Programs branch has been working on various policy, legislative, regulatory and oversight activities to tackle various issues.

Both Civil Aviation and Marine Safety and Security are working on safety management system (SMS) policy reviews to find the best way to integrate safety management systems into the aviation and marine sectors. We are also developing policies to support a Canada-US preclearance agreement for some marine facilities on the West Coast.

Safety and Security will be advancing a number of priority multimodal files in collaboration with other areas of the department, as well as other government departments and outside stakeholders. This includes:

• developing a strategy to address labour challenges and skills requirements across the transportation sector
• advancing the department's evidence-based work on impairment
• building policy capacity on security-related multimodal files (e.g. human trafficking, cyber security and digital identity), and
• supporting a multimodal approach in addressing fatigue

While our branch's plans are ambitious, there are many accomplishments to highlight.

The Centre of Enforcement Expertise has worked hard to improve our ability to conduct complex non-compliance investigations. Regional Enforcement Units are now responsible for complex investigations, while the functional authority lies with the Centre of Enforcement Expertise.

By working together, the Multimodal Integrated Technical Training, Strategic Planning and Policy Integration, Digital Services Directorate and the Transport Canada Inspectorate Board have created an Inspector Training Roadmap to modernize training and deal with training gaps.

3. Operating context

3.1 Changes and trends in the transportation sector

The COVID-19 pandemic hit Canada in March 2020 and caused most non-essential services to close. Many activities ended suddenly, so 2020-2021's operating context will continue to evolve as the transportation sector resumes normal operations.

For more context on changes to the branch's regulated operating environment, see Annex 1.

Aviation sector

Before the pandemic, the air industry was set to grow 3.3% this year. Each day, there were about 1,700 flights between Canada and international destinations, including the US.^{Footnote 1} With commercial traffic down 42% and passenger volume down 59%, it's hard to predict what will happen to air traffic in the short and medium term^{Footnote 2}.

A great deal of progress has been made when it comes to aviation-related technology:

• new aircraft and engine design
• better fuel efficiency
• improved aerodynamics
• new propulsion systems
• composite systems
• new manufacturing techniques

By 2036, the International Civil Aviation Organization expects that 94% of commercial aircraft will use these features^{Footnote 3}. This will lead to more requests for our Civil Aviation branch's resources and expertise to certify more innovative, and complex aeronautical products.

Our Civil Aviation branch continues to improve their Aviation Safety Certification Program so that Canada's aerospace sector is competitive. They also continued to engage with the international aviation community in order to strengthen Canada's influence and regulatory expertise on an international level.

The aviation sector is still a key security target, and intelligence reports show that Canada's overall threat level remains the same. Canada is home to around 1,550 aerodromes and thousands of airstrips in urban and rural areas^{Footnote 4}. Making sure Canada's airspace is safe and secure is challenging, but essential. Canada's airspace connects us with the global economy, and gives Northern residents a year-round link to essential goods and services.

Countries around the world are becoming more interconnected, and so are our national aviation systems. As our systems grow more intertwined, we are keenly aware that unlawful interference with our aviation system could be happen at any time from either home or abroad. These threats are spreading globally and as such, Canada needs to make sure that we have a strong national aviation security program.

Canada's aviation security program continues to improve its risk-based approach and multiple layers of security that collectively help reduce the probability of an attack occurring and/or can decrease the impact should one occur. Regulations and security measures help make sure that Canada's civil aviation system is protected against attacks, and our oversight program makes sure that companies are following these rules. The Air Cargo Security Program has grown significantly as updated regulations and measures now require outbound cargo on passenger flights to be screened or accepted from a known consigner.

Our Aviation Security branch also works with their domestic and international partners to identify risks, share information, develop and improve our civil aviation system using a risk-based approach. The branch is developing a foreign inspection program to assess aerodromes that are considered last points of departure for flights travelling to Canada.

Marine sector

About 90% of the goods traded worldwide travel by sea. The goods travel on container ships, bulk carriers, oil tankers, chemical tankers, reefer ships, general cargo ships and other specialized ships (like vessels that transport of cars or livestock, and offshore supply vessels). As of December 2018, there were 557 ports in Canada and Canada's Port Authorities handled 342.1 million tons of goods in 2018, up 2% from 2017.

Overseeing the safety and security of marine transportation is complex. Our Marine Safety and Security Program conducts activities to address regulatory requirements under the following programs: Climate Change and Clean Air, Protecting Oceans and Waterways, Marine Safety and Marine Security.

As a trading nation, Canada needs a safe and secure marine transportation system to help our economy grow. Canada's domestic fleet and foreign vessels transported over $200 billion in internationally traded goods. Canadian ports and harbours are important connections for our economy.

The marine industry is always evolving. Looking ahead, there are a number of emerging challenges that the Marine Safety and Security Program needs to consider, like:

• keeping up with the pace of change to manage risks and take advantage of new technologies
• managing the cyber security related to more use of, and dependence on, technology
• retaining and recruiting staff

Rail sector

The freight rail sector is mostly supported by two major Canadian freight railways: Canadian National (CN) and Canadian Pacific (CP), although some large US-carriers also operate in Canada, often through strategic partnerships with these two Canadian operators.

These partnerships link Canada to the United States and Mexico, and represent an important outlet for Canadian businesses and consumers. In 2018, Canada shipped 315 million tonnes in rail freight, up 5.4% from 2017. Notable drivers were crude oil (64.3%), potash (13.5%), coal (5.1%) and container goods (6.3%), which more than made-up for the decline in iron ore (-12.0%) and automotive (-5.3%).

The passenger rail sector provided intercity transportation services to 4.8 million people in 2018; mainly through VIA Rail. By far the busiest segment is the Quebec City-Windsor corridor, where the number of passengers increased by 27.1% over the past 5 years. Cross-border passenger rail services are also available in Montreal, Vancouver and Toronto by American passenger rail company Amtrak. If we include commuters, Canadian railways move nearly 85 million passengers every year^{Footnote 5}.

The railway industry is also changing through new employment patterns, new train control technology, and the mix of goods being transported. There were around 1,172 railway accidents in 2018, up 7.7% from 2017, while accidents that involved dangerous goods were up 9%.

Our Rail Safety Branch is responding to these developments by improving the way it identifies and analyses risks, new and updated equipment to inspect tracks, increased inspector capacity in some areas and ongoing training for inspectors.

Transportation of dangerous goods (TDG)

There are 20,294^{Footnote 6} known commercial dangerous good sites in Canada^{Footnote 7} that handle, offer for transport, transport, or import dangerous goods and 1,903^{Footnote 8} registered means of containment facilities (in Canada and abroad). As part of our mandate to enforce regulations and to promote safety awareness, Transport Canada conducted more than 5,000 inspections in 2018, up 134% from 2013. Yet, we know that we still don't know about a significant number of sites. The TDG Client Identification Database, which should launch by 2022, was built to close this information gap.

Over the next 10 years, the dangerous goods sector will see the biggest changes since the 1970s. A number of new dangerous goods will appear on the market, including explosives, gases, flammable liquids, and infectious substances. To illustrate this point, Royal Dutch Shell Plc and its partners are spearheading a $40B project to build a major liquefied natural gas terminal in Kitimat, British Columbia. Progress is also being made into converting plastic waste into different chemical products and fuel. This is an important profit driver for chemical companies, and also addresses the public's concerns about global plastics pollution.

Lack of industry understanding about regulatory requirements and insufficient training is another risk driver. In response, the TDG branch is completing inspections more frequently with their existing workforce. As the number of non-compliances at means of containment facilities has risen in recent years, the branch has reassigned inspection resources from TDG sites to means of containment facilities. As a result, the branch has inspected 58% more means of containment facilities in 2020.

Due to several new rail regulations, the Intermodal Surface Security and Emergency Preparedness team designed a plan to oversee the companies that are required to follow the new rules. The team is already aware of about 50 railway carriers that transport dangerous goods across Canada, and roughly 880 loaders that handle or ship dangerous goods by rail. This work is carried out under the Transport Canada-Railway Association of Canada Memorandum of Understanding (MOU) and the individual MOUs between Transport Canada and owners and operators of international bridges and tunnels.

Road transportation

Motor vehicles represent a major part of the Canadian economy, and in December 2018 nearly 208,000 businesses reported trucking transportation as their main activity. On the passenger side, they were about 25 million registered motor vehicles in Canada in 2017, up 1.2% from 2017. Of these vehicles, 22.6 million light passenger vehicles, which are driven about 16,500 km every year.

There are significant social and economic costs related to the sector. Even though there were fewer accidents that caused death (down 9.2% from 2013), around 1,841 people died on Canadian roads in 2017, and another 151,000 were injured by accidents. These deaths and injuries cost about $37B a year.^{Footnote 9 Footnote 10}

New features and technologies means that vehicles are becoming more automated, connected and integrated within the transportation system. Advanced technologies, like connected and automated vehicles (CAVs), create new ways to improve road safety.

To that end, Transport Canada continues to change the way we oversee motor vehicle safety to be flexible enough to address emerging technologies. This including working with our partners to develop temporary instruments, guidance, and non-regulatory tools to support the safe, gradual introduction of connected and automated vehicles. This approach is in line with that of the US and other countries, and positions Canada as a safe and attractive place for business, while also encouraging Canadian to be aware and accept these vehicles.

Cross-modal trends

Even before the pandemic, much of Canada's transportation sector was facing serious and growing labour shortages, especially in the trucking, marine and air sectors. Some sectors have laid-off employees due to the pandemic, but are slowly reinstating existing employees as restrictions ease. That being said, we expect labour shortages to re-emerge post-pandemic, and industry will continues to work on attracting new employees and keeping existing ones.

At the same time, industry is dealing with innovation and new technologies that will affect labour and skills requirements in the coming years. Transport Canada will respond to these challenges by creating an approach that splits responsibility among all levels of government, industry and associations. Our strategies for dealing with these challenges include:

• using better quality data and research to identify and assess the socio-economic impacts and barriers from these challenges
• using outreach and awareness activities to recruit, retain and advance (promote) groups that are underrepresented in transportation sector jobs
• updating our regulatory approaches to training, certification and licensing so they're less prescriptive and more performance-based
• expanding and using existing training programs and other new measures

Impairment causes difficulty completing tasks in a safe manner while operating a means of transportation. Due to the safety sensitive nature of many transportation positions, impairment is an important factor in transportation safety incidents.

Transport Canada continues to maintain safety and security oversight of Canada's transportation systems, including taking actions to mitigate impairment in the workplace and implementing new safety measures following the legalization of cannabis. The Cannabis Act includes new “Fit for Duty” requirements through a medical certification process for workers in safety-sensitive positions and the installation of signage at travel exit points from Canada, to advise travelers that it is illegal to take cannabis over the border.

The aviation sector also implemented a policy prohibiting flight crew and flight controllers from consuming cannabis for at least 28 days before duty and amended the Canadian Aviation Regulations to restrict pilots' consumption of alcohol to 12 hours prior to reporting for duty. As part of its strategy to combat impairment in the workplace, Transport Canada will continue to work with provincial/territorial, federal and international partners to collect data, modernize regulations and explore opportunities to collaborate with industry to promote safety, and reduce incidents of impairment in the workplace.

Transport Canada understands that human factors and fatigue can affect the safety of all modes of transportation. Fatigue is a serious problem for the transportation sector due to the constant nature of transportation work, monotony involved and the difficulty workers have getting enough rest between shifts. In 2018, the Transportation Safety Board placed fatigue in rail, marine and air transportation on its Watch List, noting that a total of 93 accidents between 1990 and 2018 were a result of operator fatigue.

Transport Canada will continue to support evidence-based policy and regulatory initiatives that address fatigue in the workplace. The marine, rail and air industries have introduced new work/rest rules, and in 2019 Transport Canada published a regulation that requires electronic logging devices in commercial heavy trucks and motor coaches to reduce the risk of fatigue-related collisions. This requirement comes into force in 2021.

The motor carrier industry has also developed the North American Fatigue Management Program, a non-prescriptive fatigue risk management system to help address fatigue. The air industry also has a fatigue risk management system that uses educational tools to inform pilots on ways to address fatigue. The rail industry is looking to develop their own system, along the same lines as that of the air industry.

3.2 Key safety risks and security threats

A developmental trial of a public risk assessment methodology for Safety and Security was conducted from April to September 2019. The initial risk profile identifies and monetizes public risks that Transport Canada is responsible for managing (using $ as a metric). Due to the varied measurement and structural approaches to the exercise employed by different Safety and Security programs, cross-program comparisons are not recommended at this stage.

From April to September 2019, the Safety and Security Group identified and assessed 40 public risks by using a public risk assessment methodology. The Programs branch drew on different information sources to choose and assess risks. This analysis included risks to both private and commercial transportation users, and a mix of risks that varied by estimates per-event.

Through this process, Safety and Security programs estimated residual annual risk levels specific to each risk selected in order to enable relative comparison, priority-setting, and risk management within each program. The branch used these impact categories to define the severity of each risk:

• Deaths
• Injuries
• Direct financial impact
• Indirect financial impact (for example, on the Canadian economy)
• Environmental impact
• Impact on Canada's reputation
• Societal and psycho-social impact

The application of public risk assessment results varied between programs this year and additional details on planned activities can be found in Section 5 and 6 of this document.

Safety risks

Our key safety risks and observations include:

Civil aviation

• The top 6 risk categories account for 65% of forecasted accidents (90 of 139 accidents, based on data from the previous 4 years)
• These categories include:
  • loss of control in-flight
  • runway excursions
  • loss of separation/near mid-air collisions
  • system component failure/malfunction
  • abnormal runway contact
  • controlled flight into terrain

Marine safety

• The risk to humans in recreational vessels is 11 times more than commercial fishing vessels, and 51 times more than commercial passenger vessels
• The average yearly number of recreational boating deaths has decreased 18% from the 2007-2011 yearly average (from 126 to 103 deaths)

Motor vehicle safety

• Passenger vehicle risk has the largest total residual annual risk (as a result of having the highest number of events per year); however, road collisions involving motorcycles result in the highest impact per event of about $500,000, due to the high number of fatalities associated with these collisions (26 per 1,000 collisions)

Rail safety

• While trespassing accidents and crossing accidents have the highest residual annual risk, data from the Transportation Safety Board confirms that non-main track derailments are happening more often
• While non-main track derailments are usually low risk, if they happen in an urban train yard, they can have a major impact
• Human factors are a significant cause of many of these derailments and there is potential for employee injuries and/or fatalities

Transportation of dangerous goods (TDG)

• Most incidents involve dangerous goods travelling by road, and most involve flammable liquids
• Rail incidents that involve dangerous goods are still a concern despite the many steps taken to address these risks following the 2013 rail incident in Lac-Mégantic, Quebec

3.3 Government and departmental priorities

The 2019 Speech from the Throne outlined five government-wide priorities:

• Combating climate change
• Improving the middle class
• Reconciling relations with Indigenous groups
• Keeping citizens safe and healthy, and
• Positioning the country for global success

Building off of these themes, the Prime Minister's Mandate Letter to the Minister of Transport defined 3 key priorities for Transport Canada to lead:

• Continue implementing the Transportation 2030 strategic plan
• Work with partners to design and introduce programs that will make Canada's major ports among the most efficient and cleanest in the world, and
• Work with VIA Rail to make travel to Canada's National Parks more accessible and affordable

To support these priorities, Transport Canada has continued to put in place our strategic plan known as Transportation 2030. This plan shows the department's overall vision and organizes our work into 5 key areas:

1. The Traveler: Provide more choice, better service, lower costs, and new rights for consumers
2. Safer transportation: to build a safer, more secure transportation systems that Canadians trust
3. Green and innovative transportation: Reduce air pollution and use new technologies to improve Canadians' lives
4. Waterways, coasts and the North: Build world-leading marine corridors that are competitive, safe, and environmentally sustainable, and improve transportation infrastructure in the North
5. Trade Corridors to Global Markets: Improve our transportation system's performance to get products to markets and grow Canada's economy

Both government and department-wide priorities will impact Transport Canada's regulatory framework and oversight activities over the next fiscal year.

For example, the Government of Canada has been charged with setting a target to achieve net-zero emissions by 2050. As a result, Transport Canada will need to lead in ensuring a price on pollution is given within the transportation sector and work with its partners to further reduce emissions. To date, Transport Canada is developing targets for zero-emission vehicles, exploring a high-frequency railway for the Toronto-Quebec City corridor, implementing the Oceans Protection Plan, and modernizing legislation and regulations in this regard.

When it comes to relations with Indigenous communities, Transport Canada will help to close the transportation infrastructure gap, while also respecting these communities' autonomy and ability to self-determine. Through Transportation 2030, the department is building an Arctic Transportation Policy Framework to address the unique transportation needs of Northern communities, and developing policies and regulations that will help create social and economic opportunities in the North.

To keep Canada competitive in global markets, Transport Canada must seek opportunities with like-minded countries to leverage its transportation expertise on a global scale. This is key for topics like automation, since Transport Canada piloted this technology as part of its oversight on air cargo and is now exploring other uses for it as well.

As for trade corridors, Transport Canada is working to improve the transportation system's performance through projects like the Trade and Transportation Corridors Initiative. To support this project, the Office of Regulatory Policy and Innovation is studying the regulatory irritants in transportation supply chains in select modes to reduce regulatory complexity and facilitate transportation corridors operations.

Transport Canada must adjust our regulatory framework and oversight activities to manage rapidly-changing risks. The department is addressing these needs through a number of projects. For example, we're working with the provinces and territories on the School Bus Safety Task Force to improve school bus safety. With the new Canada-United States-Mexico Agreement (CUSMA), we're working with the United States to research and align our safety and security requirements.

To help Canadian consumers, Transport Canada is looking for ways to offer more choice, better service, lower costs, and new consumer rights. Projects like the air carrier joint ventures, Designated Screening Authority (DSA), and VIA Rail's High Frequency Rail Project will help us address these goals.

3.4 Addressing recommendations from the Transportation Safety Board and others

Transport Canada takes recommendations from the Transportation Safety Board (TSB) and other external parties very seriously. Both the board and the Office of the Auditor General have emphasized that Transport Canada needs to respond to emerging risks and issues in a timely way.  

Launched in 2010 and updated every 2 years, the Transportation Safety Board's Watchlist focuses on specific safety issues that the board believes are very important. The latest Watchlist was released in October 2018, and included these issues:

1. Slow progress on addressing TSB recommendations (Multimodal)
2. Fatigue management in rail, marine and air transportation (Multimodal)
3. Safety management and oversight (Multimodal)
4. Runway overruns (Air)
5. Risk of collisions from runway incursions (Air)
6. Following railway signal indications (Rail)
7. Commercial fishing safety (Marine)

To proactively address these issues, we are working with the Transportation Safety Board on a number of projects, including a multi-modal 2-year action plan (2018-2020). The next Watchlist should be published in 2020.

3.5 Departmental transformation agenda

Transport Canada's transformation agenda is a chance for the department to modernize and improve the way we support Canada's transportation system. The Transformation Initiative's goal is to modernize how the department delivers on our core responsibilities by being more:

• agile in our response to evolving demands
• smart in equipping our workforce to make sound, data-driven decisions, and
• trusted in how we transparently execute our programs and services

Transport Canada's Transformation Logic Model is anchored by five pillars:

Intelligent policies and programs

• Modernize safety and security related legislation, regulations, policies and programs by using a multi-modal lens

Service innovation

• Improve services by making them more responsive to users, digital, integrated, and financially sustainable
  • This helps to make sure that our services can respond to changes in technology and the demands of Canadians

Transparency and public trust

• Operate more transparently
• Develop activities that respond to the needs of stakeholders

Data-driven decisions

• Make it easier to use data-based decisions by using departmental data sources and advanced analytical tools, teaching employees how to analyse data, and updating data management systems

Modern and inclusive workforce

• Make sure Transport Canada's workforce can respond to change and has the right skills to respond to a changing transportation sector
• Help employees use modern tools and innovative ways to work
• Increase wellness, diversity and inclusion among employees

More information on this project can be found on the Transport Canada Transformation website.

4. Innovation in risk management, regulations and oversight

4.1 Regulatory framework

Our programs are committed to developing new ways to manage risk and modernize our legislative, regulatory and policy frameworks.

Launched in 2018, the Innovation Centre has an ambitious annual plan with more than 100 Research, Development & Deployment (RD&D) projects underway at any time. Through its research, the Innovation Centre helps Transport Canada and the Government of Canada develop regulations and manage risks by:

• evaluating new, emerging and disruptive technologies that can help us develop regulations and oversee the transportation sector
• generating knowledge, skills and data about these new technologies, and
• sharing results both inside and outside of government

Here's some of the innovative work being done across the department:

Innovation Center

Partnering with industry and academia to participate in Canada's first on-road truck platooning trial to collect data about the real-world performance of this technology.

• Cooperative truck platooning allows transport trucks to automatically closely one another
• This reduces aerodynamic drag, fuel consumption, greenhouse gas emissions, and helps the trucks use the road more efficiently
• Results from this trial will help us develop industry guidance, guidelines, tools and regulations needed to support the introduction of cooperative truck platooning in Canada

Launching an almost real-time underwater listening station at Boundary Pass in the Salish Sea. The station will capture vessel source signatures from most of the traffic to and from the Port of Vancouver.

• The station will also collect marine mammal and ambient noise data
• Results from station will help us address underwater radiated noise at the International Maritime Organization and the International Organization for Standardization

Civil aviation

Piloting an increased Delegation of Authority provided to manufacturers, to issue a flight permit for an aircraft that is under the custody and control of a manufacturer.

• This will let manufacturers issue a “specific purpose” permit to perform demonstration flights when an aircraft does not hold a valid Certificate of Airworthiness, but has been deemed safe for flight
• This pilot project aims to introduce flexibility and agility for manufacturers and would result in reduced red-tape, and increased flexibility for innovation and production

The Strategic Safety Risk Assessment Program is taking an innovative approach to managing public risk.

• The program is establishing and managing a risk management framework that will improve the way we identify, prioritize and monitor key safety concerns in Canada's civil aviation system
• Eventually, this process will support the Civil Aviation branch's risk-based oversight planning

Looking at non-regulatory ways to manage loss of control in flight, which is an accident where an aircraft unintentionally departs from controlled flight. Loss of control in flight is the number one cause of fatal general aviation accidents in Canada.

• This project, also known as the General Aviation Safety Campaign, will continue through early 2020 to raise awareness of solutions like Upset Recovery Training and encourage pilots to take this training
• This innovative approach encourages companies to voluntarily comply with the regulations

The recently launched drone management portal will be updated with new functionality.

• The portal allows Canadians to register a drone, complete an online exam, and get a pilot certificate with all services underpinned by new user fees
• We're also working with the National Research Council and NAV Canada to develop new digital airspace management tools

Partnering with leading drone technology companies and Canadian test ranges.

• By using a regulatory sandbox^{Footnote 11}, we're working with Canadian companies to research and collect safety data about drones
• This data will help us develop new drone regulations in the future

Aviation security

Working on the Aviation Security Review to identify challenges and opportunities to improve aviation security in Canada.

• This review is also considering how programs from other government departments, agencies, stakeholders and partners, can help safeguard the system, improve security the travelling experience
• The end goal is to modernize our aviation security program

Marine safety and security

The vessel certificate process is being simplified to allow Transport Canada to make administrative changes without amending the regulations.

• This will make the process more efficient and allow us to be more flexible and responsive, while also making inspection requirements clearer for stakeholders

We're also reviewing the way we deliver services for key public facing programs.

• This will transform the way these programs are delivered
• It will also address inefficiencies by changing the practices, processes, and technologies that the program uses

Multi-modal and road safety programs

This year, Transport Canada has published a process for seeking exemptions from the Canada Motor Vehicle Safety Standards.

• The document explains the for vehicle and equipment manufacturers to apply for an exemption for some imported vehicles that don't meet the standards.

The Automated/Connected Vehicle Gateway is way for the department to improve the way we consult and engage about connected and automated vehicles.

• This digital space will let us share information, participate in discussions, grow ideas and connect with partners
• It also promotes open engagement and better transparency in regulations for the testing and use of connected and automated vehicles

To make sure that our policies and regulations are evidence-based, we're integrating a behavioural science lens when choosing the policy instrument of choice.

• This will allow policymakers to create programs based on how people behave
• We're also expanding the use of experimentation to better understand which policies and programs are having their intended effect

In order to support innovation and economic investment, the Office of Regulatory Policy and Innovation is looking for ways to address regulatory barriers and make regulations more flexible.

• This includes reviewing over 1,000 regulatory issues and irritants raised by internal and external stakeholders
• Developing a workplan to address these issues
• Studying transportation–related parts of the supply chain to see how regulations can affect the flow of goods
• Developing policy recommendations to allow more flexible regulations, regulatory experimentation and case findings from novel technology

Transportation of dangerous goods (TDG)

Developing the TDG Client Identification Database

• The database will house an inventory of TDG sites and activities
• This information will improve the way we oversee the dangerous goods sector, and help make sure that our oversight is consistent, risk-based and can keep pace safety risks
• The database will use concepts like “digital by design” and a client-centric view, which are two key parts of the Government of Canada's new Policy on Service and Digital

TDG will lead a regulatory sandbox from March 2020 to March 2022 in collaboration with the Pipeline and Hazardous Material Safety Administration, an agency of the US Department of Transportation.

• Announced in Budget 2019, this is Transport Canada's first regulatory sandbox
• The project will help us introduce electronic shipping documents for transporting dangerous goods, which was requested by stakeholders and the Regulatory Cooperation Council
• Electronic shipping documents will reduce paper-burden, be more cost effective and efficient for both industry and government

Intermodal surface security and emergency preparedness

By working with the rail industry, we have developed the Passenger Rail Transportation Security Regulations. The regulations will require passenger railway companies to improve security by proactively planning processes and managing security risks.

• The regulations will give companies the flexibility to develop and put in place security plans that meet their unique needs

Similarly, the new Transportation of Dangerous Goods by Rail Security Regulations require railway carriers and railway loaders to improve security by proactively planning processes and managing security risks.

• The regulations will give companies the flexibility to develop and put in place security plans that meet their unique needs

4.2 New ways to oversee Canada's transportation sector

Civil aviation

• Improving our risk-based oversight abilities to prioritize surveillance. The new methodology will assign resources based on Civil Aviation's risk profile for areas of concern
• The Civil Aviation branch is improving their risk profiles to take into account the inherent risks to operations, safety performance and the results of previous inspections

Aviation security (AVSEC)

• Reviewing the Transportation Security Information System and its user needs to make sure that the new version of the system will be more efficient
• Working with Public Safety Canada and the Canada Border Services Agency to complete the onboarding of all regulated air carriers on the Government of Canada's centralized screening system. Aim is to operationalize the Transport Canada's Passenger Protect Program (PPP) Operations Centre by Fall 2020
• Menus of additional safeguards and associated AVSEC Levels came into force on August 31, 2019 for all classes of aerodromes. AVSEC Levels are the Minister's way of communicating heightened risk conditions to Operators when Transport Canada determines that additional safeguards can be effective in mitigating the heightened risk environment. Menus and AVSEC Levels  ensure preparedness and allow for the rapid communication and response to heightened risk conditions, while providing Aerodrome Operators the flexibility in determining the mitigation strategies best suited for their operations
• The Air Cargo Security Program has improved the risk engine embedded in the Secure Supply Chain Information Management System to make sure an analysis of risk data is reflected in the risk scores

Marine safety and security

• Continue working with Arctic partners and using the expertise of Indigenous Peoples to help Transport Canada oversee the transportation sector
• Using drones to help with inspections and monitor shipping lanes to assess and find the source of oil spills, and using innovative methodologies, such as virtual inspections, with the continued COVID-19 pandemic
• Partnering with the Digital Services Directorate and the Canada School of Public Service to transform the paper-based Vessel Registry service to a user-centered digital tool
• Partnering with the Digital Services Directorate and Code for Canada Fellows to develop an online application to eliminate the current paper application process
• Speaking with partners to build trust and understandings around the always-changing marine transportation threat environment

Rail safety

• Introducing targeted audits to address systemic issues and measure the effectiveness of safety management systems. This begins to move Rail Safety from “system in place” audits to a more integrated audit approach
• Track Assessment Vehicles are used to inspect track. TAVlets (or Inspector Support Tablets – ISTs) are rugged Microsoft tablets that the track inspectors use during inspections. They run the same software as the TAVs but allow inspectors to get out of their vehicles and record inspection information (for example, while they are doing a walking inspection). They can then be synched with the TAV computer afterwards to allow for a complete set of inspection information
• Working with the Transportation Association of Canada regarding the Geometric Design Guide for Canadian Roads and the Manual of Uniformed Traffic Control Devices for Canada (MUTransport CanadaDC) and the Institute of Transportation Engineers to improve traffic control devices when installed near railway crossings
• Using new mapping software to identify specific high risk sites and/or subdivisions

Motor vehicle safety

• The Motor Vehicle Safety Oversight Directorate will begin collecting more technical data from manufacturers. This will allow us to use safety data to trigger inspections and will make analyzing data much easier
• Saving lives and reducing injuries of pedestrians and cyclists by supporting the use of effective, low-cost technologies that improve the safety of pedestrians and cyclists around commercial vehicles  

Transportation of dangerous goods (TDG)

• The TDG Core project is integrating 8 digital apps into a single interface. This will make our oversight of the dangerous goods industry more efficient

Intermodal surface security and emergency preparedness

• Revamping databases to improve our ability to develop a data analytics, and make the system more user-friendly
• Regional inspectors are looking for ways to combine oversight and trips where possible, in order to make things these more efficient and cheaper

5. Planning highlights for regulatory framework

5.1 Policy initiatives by mode

Civil aviation

• Responsible Aerodrome Development Phase II (2020-2021) – Obstacle Development around aerodromes
  • Planning consultations with internal and external stakeholders, municipal and provincial counterparts to discuss a strategy to address safety issues stemming from obstacle development around aerodromes, like wind farms
• Defining Transport Canada's role and contribution to whole-of-government approaches to commercial space
  • Commercial space launch in Canada is being pursued. Transport Canada is reviewing and revising our protocols with respect to launch site safety, approve a launch vehicle, airspace safety and liability insurance.
  • Ahead of giving permission to launch, a whole-of-government approach must be agreed on to make sure Canada complies with all relevant international space-related agreements and treaties, and that the needs of industry are being met
  • Development an approach that will contribute to the Government of Canada policy for the Canadian Space Initiative Spaceport
• Laser Attacks Strategy 2.0 (2019-2021)
  • To address the risk of laser attacks, we put in place a Laser Attacks Strategy in June 2018. The three parts of the Strategy are:
    • Banning hand-held lasers
    • Improving enforcement, and
    • Increasing education and awareness
  • The Interim Order Respecting Battery-powered Hand-held Lasers banned handheld lasers for one year, starting in June 2018. The order has since been extended to June 2020
  • We would like to ban possessing hand-held lasers under the Canadian Aviation Regulations. New regulations came into force in summer 2020
• Impairment and cannabis policy and assessment of regulatory options (2019-2021)
  • Reviewing policy and regulatory approaches to improve the deterrence and prevention measures for aviation personnel reporting to duty impaired. We're considering defining safety-sensitive positions, and expanding the ban on passengers smoking (tobacco or cannabis) on board
  • The Civil Aviation branch has introduced a new cannabis policy to improve out medical certification and assessment process. The cannabis policy, which applies to all flight crew members, sets a 28-day ban on consuming cannabis for the purposes of issuing, renewing, and maintaining the validity of medical certificates
• Reviewing and modernizing training requirements for aviation professionals (Labour Shortage) (2019-21)
  • Reviewing the existing regulatory framework as it relates to training requirements for aviation professionals with a view towards modernization, improved safety and utilization of cutting-edge technology.
  • Identifying barriers by creating a complete list of irritants related to the labour shortage issue. Triage of irritants is expected to be completed in early 2020
• Working on  a roadmap for Beyond Visual Line-of-Sight drones and next generation drones operations in Canada (2019-21)
  • Transport Canada will prepare a roadmap for beyond visual line-of-sight policy and regulations in Canada. Through this initiative, the department will prepare the first BVLOS regulatory policy proposal for lower-risk operations and solicit industry input through consultations.
• Civil Aviation Regulatory Modernization (2018-2022)
  • In response to increasing technological change and innovation in the aviation industry, Transport Canada has launched a multi-year Initiative to modernize the Canadian Aviation Regulations. The regulations are outdated, inflexible and lack a risk-based or performance- based regulatory approach. The aim of the review is to amend the CARs to increase their agility and coherence while making use of regulatory best-practices (like incorporating by reference or moving away from prescriptive regulations where appropriate), throughout the review
• Labour Shortage in the Aviation Industry (2019-21)
  • A national strategy is currently being developed to address the labour shortage of aviation professionals. The Civil Aviation branch will continue to consult with stakeholders to help identify industry-led solutions that will contribute towards and inform the national strategy
• Cost Recovery Initiative Fee Modernization (2017-22)
  • Work on updating and modernizing fees continues. The initiative aims to review existing fees that have not been updated in over 20 years, and to introduce new fees for services that have long been delivered free of charge. Civil Aviation is also committed to including stakeholders in the consultation process, and are taking additional steps prior to the regulatory process to engage and consult more effectively and meaningfully

Aviation security

Aviation Security will undertake a review of the Canadian Air Transportation Security Authority's (CATSA) designation in order to establish a risk-based policy for determining whether to designate or de-designate an airport for the purposes of CATSA passenger and baggage screening services. The drivers behind this policy are transparency, recognition of the Designated Screening Authority implementation (CATSA 2.0), and interest by non-designated airports to use CATSA services.

Marine safety and security

• Transport Canada and Canada Border Services Agency (CBSA) created a working group to work on a port modernization initiative. The initiative will begin tentatively late April 2020 with planned site visits in major Canadian ports along with an international visit to understand best practices and new technology. The working group expanded the scope of the initiative to include new technology, multi modal operations and challenges that other government partners face.
• Canada has set its negotiating position on the proposed Heavy Fuel Oil (HFO) ban in Arctic waters at the International Maritime Organization. Canada supports the proposed ban on HFO use and carriage for use as fuel, with consideration for mitigation measures to lessen the impacts on northern communities and economies. The department will introduce a proposal in 2021 to address the impacts on northern communities.

Rail safety

• Implementing the recommendations from the Rail Safety Act Review is a priority.
• Another priority is responding to the Transportation Safety Board Watchlist and recommendations on subjects such as:
  • fatigue management
  • Railway Employee Qualification and Training Standards
• Implementing the regulations for the Transportation Modernization Act,
• Finalizing the Safety Culture Policy Statement and further considering enhanced train control)
• Amending the Employee Training and Qualifications regulations to address deficiencies and introduce a modernized scheme. The proposed new requirements for a strengthened railway employee qualification and training regime would reflect changes in an evolving railway industry. It would also cover elements such as new occupational categories and minimum qualification standards for employees, instructors and examiners.
• Completing installing of locomotive voice and video recorders (LVVRs) in locomotive cabs, which was mandatory. This will limit LVVR data access by both TC and railway companies to balance privacy and safety interests. We expect that the regulations for the mandatory installation of LVVRs will come into effect after we publish them in the Canada Gazette Part II in 2020.
• Addressing fatigue management. The Department has taken a comprehensive approach to addressing fatigue for crew members on freight trains. This includes:
  • Publishing a Ministerial Order in 2018 directing changes to the Work/Rest Rules for Operating Employees (WRRs) based on fatigue science including changes to rest and duty periods, deadheading and time free from duty
  • Developing a regulatory proposal for a fatigue risk management system
• Co-founding and supporting the work of the Center for Fatigue Expertise in the development of multi modal fatigue management strategies

Multi-modal and road safety programs

• Publishing a collection of non-regulatory guidance to promote the safe testing and deployment of CAVs. We also published Canada's Vehicle Cyber Security Guidance
• Exploring opportunities to further modernize the motor vehicle safety regulatory framework to facilitate the safe introduction of CAVs
• Researched automated driving systems, human factors for connected and automated vehicles, vulnerable road user safety around heavy vehicles and limiting distraction
• Released a guidance document clarifying the process for exemptions applications under section 9 of the Motor Vehicle Safety Act (MVSA). The exemption process enables the Department to respond quicker to emerging vehicle technologies
• Approved the delegation of many Ministerial powers and duties under the MVSA. This will streamline existing processes and establish a legal instrument to clearly identify relevant officials serving in an appropriate capacity to exercise MVSA powers and duties
• Working to integrate federal efforts with those of the provincial/territorial jurisdictions through national fora
  • For example, the Canadian Council of Motor Transport Administrators (CCMTA)
• Continued to modernize the MVS legislative framework to ensure the Minister has the necessary authorities to enforce a safety regime that will protect Canadians and meet their expectations.

Transportation of dangerous goods (TDG)

• TDG is developing policy initiatives to modernize fees (incorporating cost recovery for the MOC Facilities Registration Program) and for other issues related to the transportation of dangerous goods such as:
  • potential exemptions for lithium batteries transported by road and rail
  • reverse logistics (dangerous goods for return transport by consumers)
  • dangerous goods wastes
  • disruptive technologies
  • liquefied Natural Gas (LNG)
• Also, TDG is reviewing the overall framework of fines and penalties to obtain the legislative authorities required to issue penalties under an Administrative Monetary Penalties (AMP) regime. This work is part of the legislative modernization proposal.
• Early in the fiscal year, the group amended the Transportation of Dangerous Goods Regulations to incorporate significant changes. The changes included:
  • new training requirements aimed to improve industry compliance
  • harmonization with the latest editions of international codes and standards
  • updating air requirements for dangerous goods

Intermodal surface Security and Emergency Preparedness (ISSEP)

• Through a Rail Security Task Force that brings together government, railway companies and law enforcement agencies, the group is exploring initiatives to enhance security
• Completing developing the proposed Passenger Rail Transportation Security Regulations
• Completing developing industry guidance and an outreach strategy for both the TDG and passenger rail security regulatory programs
• Working with Public Safety Canada to ensure that the interests of the transportation sector are reflected in government initiatives and leading a TC intra-departmental working group on cyber security to ensure a strategic and coordinated approach to cyber security at Transport Canada

5.2 Legislative and regulatory initiatives

Legislative initiatives

In its leadership role supporting TC's contribution to the Government's annual Regulatory Modernization Bill exercise, the Legislative Modernization initiative has put forward proposed amendments to the Canada Transportation Act (CTA). Timing of this Bill was delayed due to COVID-19, but it may go forward this fall.

The other legislative initiative for safety and security programs comes from Transportation of Dangerous Goods (TDG), who seeks to modernize the Transportation of Dangerous Goods Act. The changes willboth support keeping TDG's program relevant, efficient and effective for Canadians into the future, and support TC's broader initiative to modernize our legislation.

Proposed amendments to the TDG Act provide authorities to implement the TDG Registration CID initiative to require those who import, offer for transport, handle, or transport dangerous goods in Canada to register and provide information as specified; and introduces the Administrative Monetary Penalty regime.

Regulatory initiatives

Transport Canada's regulatory plan is ambitious, with a total of 74 regulatory initiatives planned for 2020. 

The department is dedicated to continue making advancements in the regulatory development process by being involved early in regulatory projects, performing more challenge functions, and by providing a quality control as well as cohesive synchronization function. 

Here are some key regulatory files that we expect to be completed in 2020:

1. Final publication of Regulations Amending Certain Regulations Made under the Motor Vehicle Safety Act (National Safety Marks and Importation)
2. Pre-publication of Regulations Amending the Canadian Aviation Regulations (Runway End Safety Area (RESA)) 
3. Pre-publication and final publication of the Regulations Amending the Canadian Aviation Regulations - Greenhouse Gas Emissions from International Aviation - CORSIA (Stage 2)
4. Final Publication of the Locomotive Voice and Video Recorder Regulations.
5. Final publication of the Regulations Amending the Canadian Aviation Regulations (CAR 521-CO2 Standard) 
6. Pre-publication and final publication of Regulations amending the Canadian Aviation Regulations (laser related offences)
7. Final publication of the Passenger Rail Transportation Security Regulations
8. Pre-publication and final publication of the Amendments to Canadian Aviation Security Regulations, 2012 (CATSA 2.0)
9. Final publication of the Navigation Safety Regulations, 2019
10. Final publication of the Regulations Amending the Canadian Aviation Regulations (Emergency Locator Transmitters)

5.3 International engagement

As Transport Canada's Strategic Policy Framework for International Engagement 2017-2020 draws to an end this year, the department is in the process of assessing the impact of the strategy over the last four years and designing a renewed framework to guide the next phase of international engagement. 

The new strategy will reflect recent global trends, including:

• a strengthening of Transport Canada leadership at multilateral fora, prioritization of bilateral partnerships
• heightening of coalitions to advance shared interests
• being responsive to emerging priorities in areas such as:
  • aviation security
  • automation
  • environment
  • gender equality
  • trade
  • others 

In Annex 2 “International Engagement”, you can find more information on the international policy initiatives that safety and security programs are developing to advance the department's international interests.

6. Planning highlights for oversight

6.1 Multimodal and Modal Oversight Design and Delivery Improvement Initiatives

Multimodal initiatives

The Centre of Enforcement Expertise^{Footnote 12} set up five Regional Enforcement Units made up of trained investigators who will serve all modes. In fiscal year 2019-20 the group set up interim organizations, and began onboarding and training of multimodal investigators.

Throughout fiscal year 2020-2021, focus will be on continuing to build TC's investigative capacity through training by further developing of final organizational structure through organizational design and functions analysis. The center will provide all functional direction to regional units on enforcement and investigations. It will focus on supporting the units by developing and implementing key operational policies.

The Center is also pursuing Open Government as another area of greater integration with implications for safety and security programs. A Task Force of subject matter experts from each mode along with other internal partners (for example: Legal Services, Digital Services, and Transformation) developed a three-phase approach to improve public access to information and data related to TC's oversight.

In the strategy, there is a recognition that this approach will require a culture change in the Safety and Security branch because a “digital and open by default” method of operation will need to be embedded in the way the Safety and Security branch develops documentation and manages data and information.

In collaboration with Corporate Occupation Health and Safety, the group developed a comprehensive Roadmap and Implementation Plan addressing gaps in governance, task hazard identification and analysis, personal protective equipment and clothing, and awareness and training.

The group also established an OHS Steering Committee on Oversight Delivery to lead the implementation of this plan, which will take place as a multi-year project. Over the 2019-20 period, the committee focused on the high priority deliverables identified, such as developing policies and directives, and clarifying the OHS decision making process.

In 2020-2021, the focus will be aimed at aligning and standardizing Task Hazard Analysis (THA), personal protective equipment, and training for specific priorities identified by a THA Working Group (for example: defensive driving, working alone). As this alignment progresses, Programs will be engaged in this integration exercise by participating in the THA Working Group, and through the existing Clothing Committee and the Safety and Security branch Directors of Integration Committee.

The group will consult The Canada Labour Code, Part II mandated that the National Policy Health and Safety Committee on the refinement and implementation of the roadmap. 

Changes to modal programs

Safety and Safety programs have highlighted numerous changes to their program design because of changes in the program delivery context. Some of the changes are organizational while others have direct implications for ensuring oversight compliance. Many of these changes and initiatives will require updates to training programs and potentially the development of new training.

Civil aviation

• The Civil Aviation branch continues to implement updates to the surveillance program including:
  • a more strategic approach to quality assurance
  • additional inspector education and training
  • better tools to help inspectors do their work efficiently and effectively
  • a re-calibration of the risk-based surveillance methodology
• The branch has stopped conducting assessments^{Footnote 13} as part of planned surveillance to focus on program validation inspections (PVI)^{Footnote 14} and process inspections (PI)^{Footnote 15}. From a resource usage point of view, an Assessment requires two to four times the amount of a PVI. Similarly, a PVI consumes two to four times more resources than a PI. However, all three tools can provide the branch with an acceptable level of confidence in an organization's ability to follow regulations.
• In 2018-2019 Civil Aviation reported on the planning and completion of safety management system-related oversight activities for the first time. In previous years, these activities were simply part of the aggregate number reported oversight activities.
• For 2020-2021, Civil Aviation will continue to develop policies and procedures to augment our capacity to provide detailed SMS oversight number and perform sector based analysis potentially leading to changes in oversight planning requirements and resource allocations. We expect the number of planned SMS oversight activities and associated resource requirement to stay the same in the near future since the result of the current improvement efforts will impact the 2021-2022 oversight plan at the earliest.

Aviation security

• The Aviation Security branch continues make strategic adjustments to its oversight regime which include:
  • continued development of the quality assurance program;
  • review of our inspector education and training program;
  • better tools to help inspectors do their work efficiently and effectively;
  • a re-calibration of the risk-based surveillance methodology;
  • strengthening of oversight through improved regulations.
• Continuing to strengthen the Air Cargo Security program by improving regulations for both mail and all cargo flights as well adding canine screening.

Marine safety and security

• Improving TC's engagement efforts with representatives from the fishing sector to reduce risk and initiate a culture change in the fishing industry. 
• Implementing the national strategy on abandoned and wrecked vessels, which includes efforts aimed at improving vessel owner identification through enhancements to the Pleasure Craft Licensing and Registry systems.
• Continuing to modernize the fee regime to better respond to industry demand, and establish sustainable funding for the provision of TC services by implementing cost recovery mechanisms for 12 business lines over the next five years.
• Improving the ability of Marine Security Operations Centres to contribute to national security objectives by improving the current and future operational and technical capabilities of the centres and further improving marine domain awareness with domestic and international partners.

Rail safety

• Focusing on implementing the recommendations from the Railway Safety Act Review, the program will continue to refine its Risk-Based Business Planning Methodology through adjustments and changes to its processes.
• The program continues to monitor oil traffic by rail and is working with the National Energy Board and Economic Analysis to obtain specific information on routes where it is transported. The program has requested all rail companies to review their volumes specific to the Rules respecting Key Routes Key Trains to determine if they have increased volumes that now meet these requirements. Risk assessments were submitted by companies already meeting these requirements and the information has been reviewed. Companies that submit Notices of Change with respect to increased volumes will be asked to submit their risk assessments as well.

Motor vehicle safety

• The next key deliverables of program improvement include continued development of an Administrative Monetary Penalty program and an Information Integration and Analysis program to encourage compliance and identify potential safety defects as early as possible, respectively.  Both programs will require the creation of policies, procedures, regulations, and data management, all of which will take place over several years in cooperation with others.
• Rapidly emerging vehicle technology will require oversight officers to increase knowledge of and familiarity with these technologies, through training and other fora in order to oversee and assess compliance to the extent that these new technologies relate to regulations, standards, and defects. 
• The number of recalls and public reports of potential defects requiring TC review and documentation increase by approximately 5% annually, which affects the ability to meet the Program's performance indicators.

Transportation of dangerous goods (TDG)

• The TDG branch is currently conducting research to monitor dangerous good movements and analyze trends. Federal-Provincial information sharing agreements currently in place (and being negotiated) are Improving TDG's data collection capabilities.
• TDG is significantly increasing the number and proportion of inspections directed to a Means of Containment (MOC) facilities in response to an increase in the number of non-compliances at MOC facilities in recent years. The increase will also allow TDG to inspect a large number of MOC facilities (considered to be high risk by the inspectorate).

Intermodal surface security and emergency preparedness

• For the 2020-2021 oversight period, the Intermodal Surface Security Oversight Program (ISSO) will continue the transition of its railway oversight program from a voluntary Memorandum of Understanding (MOU) framework to a regulatory one under both the TDG by rail security regulatory program and the Passenger railway security regulatory program. The TDG by Rail regulatory program took effect on May 2019, while the Passenger railway Security Regulatory Program is expected to receive approval in Spring 2020.
• Overall, the group will do more expanded oversight during the 2020-2021 as part of the new regulatory regime, and reduced work under Transport Canada and the Railway Association of Canada MOU. The group will also continue to perform oversight work as part of the International Bridges and Tunnels Security MOUs as in previous years.
• With the addition of the two new railway security regulations, ISSO oversight work is significantly expanding. From conducting oversight work on just over a total of 550 freight and passenger railway sites to over 1,400 sites.
  • the number of railway carriers increased from 26 to about 50
  • more than 400 railway loaders were added
• To effectively meet its security objectives, ISSO worked diligently to refine and/or develop risk-based methodologies that helped to assess security risks associated with each railway site to determine how and where we should deploy security resources.

6.2 Oversight delivery levels

Safety and Security Programs will continue to undertake the full range of oversight activities for 2020-2021. Though there will be adjustments because of the COVID-19 pandemic and associated implications for the transportation system. Oversight is about activities that support the systemic promotion, monitoring or enforcement of compliance with TC requirements governing safety and security.

To plan its oversight activities, Safety and Security Programs have developed over the years risk-based prioritization methodologies. In general, these risk-based approaches have established a set of criteria to assess the risk profile of specific entities or industry sectors and conduct corresponding cyclical compliance verifications (such as inspections and audits).

7. Costing tables for regulatory review and oversight

7.1 Costing tables for regulatory framework

This section contains aggregated tables per Program for their regulatory framework costs using the Core Activity categories and the common costing methodology that have been in place since 2017-2018.

These include:

• indirect costs
  • leadership and management
  • program
  • financial and HR management
  • general consultation
  • data governance and risk analysis
• direct oversight delivery costs
  • regulatory authorizations
  • planned risk-based and reactive oversight
  • enforcement and investigations
  • education and outreach 

You should consider the dollar amounts and apportionment of oversight costs as estimates, since the department doesn't have activity-based costing in its financial system yet. This financial information is based on the initial budget delegation, and actual costs can't be reported against these core activity categories because of the limitations of expenditures tracking in departmental systems.

We may adjust actual spending and in-year budget allocation to take into consideration supplementary funding obtained through Treasury Board submissions, budgetary adjustments within Safety and Security and other departmental budgetary updates.

Plan

Directorate	Personnel	Other operating cost	Revenue	Total
Aviation Security	7,800,987	522,091	-	8,323,078
Marine	10,534,671	1,760,784	-	12,295,455
ISSEP	2,508,960	158,350	-	2,667,310
Civil Aviation	23,680,000	4,492,000	-	28,172,000
Rail	2,098,990	374,927	-	2,473,917
Modes and Roads	9,640,551	3,342,898	-	12,983,449
TDG	4,650,628	4,045,851	-	8,696,480
Total	60,914,787	14,696,901	-	75,611,689

*Planned spending regulatory framework amounts by Programs for Personnel, Other operating costs and revenue.

7.2 Costing tables for oversight

This section contains aggregated tables per Program for their oversight costs using the Core Activity categories and the common costing methodology that have been in place since 2017-2018.

Plan

Directorate	Personnel	Other operating cost	Revenue	Total
Aviation Security	17,206,242	1,242,919	-	18,449,161
Marine	48,748,444	6,949,628	(11,244,482)	44,453,590
ISSEP	8,111,957	1,141,693	-	9,253,650
Civil Aviation	92,961,000	10,347,000	(8,312,000)	94,996,000
Rail	18,269,196	2,850,984	(204,000)	20,916,180
Modes and Roads	3,124,104	1,049,575	(1,475,000)	2,698,679
TDG	17,243,404	3,905,842	-	21,149,246
Total	205,664,347	27,487,641	(21,235,482)	211,916,506

*Planned spending oversight amounts by Programs for Personnel, Other operating costs and revenue.

Annex 1 – Safety and Security Program regulated environment

Safety and Security Program regulated environment

* Programs list what they are responsible for regulating

Civil Aviation

• 36,780 Canadian registered aircraft in Canada
• 54,844 licensed pilots
• 2,329 air carriers
  • 31% Canadian, 69% Foreign
• 17,662 aircraft maintenance engineers and 866 approved maintenance organizations
• 173 Flight Training Units (flight schools)
• 562 certified aerodromes and 1,642 non-certified aerodromes
• 12,554 air cargo secure supply chain members
• 18,000,000 km² of airspace managed by the largest single Air Navigation Service provider in the world (NAV CANADA)
• The Canadian Aviation industry is valued at approximately $31 billion annually [1].
  • These industries contributed 213,200 direct and indirect jobs in Canada (2018)
  • Number one in R&D investment across manufacturing industries accounting for 30% of total R&D spending
• 747 Transport Canada Safety and Security Inspectors

Marine Safety and Security

• 557 port facilities
• 883 fishing harbors
• 127 recreational harbors           
• 2.7 million licensed domestic pleasure craft, plus 20,000 registered pleasure craft
• 4.5 million pleasure craft operators cards issued
• Approximately 45,000 registered small commercial vessels (<15 GT)
• 16,000 large domestic vessels (>15GT)
• 19,634 visits by foreign-flagged vessels to Canadian ports (3,353 unique vessels)
• >500 Canadian vessel manufacturers & importers
• 383 Vessel Equipment Manufacturers (fire and life-saving)
• Approximately 200 Vessel Machinery Manufacturers
• Hundreds of designed, consultants, shipyards
• 7 Recognized Organizations
• 250 Oil Handling Facilities
• 4 Environmental Response Organizations
• 243,000 kilometers of Canadian coastlines
• Atlantic, Pacific & Arctic Oceans
• St Lawrence Seaway & Great Lakes
• 35,000 Certified Seafarers in Canada
• 270 Designated Marine Medical Examiners
• 90 Marine Schools (Nautical & Engineering)
• 21 Training Institutions (Pleasure Craft Operator Competency)
• 12 Recruitment & Placement Agencies

Rail Safety

• Approximately 41,700 kilometers of track under federal jurisdiction
• Approximately 253,000 rolling stock, including locomotives, freight cars, and passenger cars; Rail Safety is also be responsible for oversight of the locomotive emissions regulations
• Approximately 4,500 operating crews
• 23,080 grade crossings (approx. 14,000 public and 9,000 private)  1,460 municipal and provincial road authorities, federally regulated railways
• Approximately 8,800 signals
• 5,600 railway bridges under federal jurisdiction; 1,200 highway/roadway/pedestrian bridges constructed across federal rail lines
• Under the International Bridges and Tunnels Act (IBTA) and the International Bridges and Tunnels Regulations (IBTR), Rail Safety is responsible for safety oversight of 25 vehicular international bridges and tunnels
• 68 companies currently holding a Railway Operating Certificate

Motor Vehicle Safety

• Affixation of TC's National Safety Mark to vehicles and equipment
• Compliance of imported vehicles with safety standards
• Testing of vehicles and equipment bearing TC national safety mark
• Manufacturers safety related reporting requirements
• Investigating possible non-compliance and safety defects
• Of 25 million registered vehicles, there are 22.6 light passenger vehicles each of which are driven approximately 16,500 km annually

Transport of Dangerous Goods

• all 4 transportation modes
• 20,294 TDG sites
• 1,903 Means of Containment Facilities (MOC)
• 40 TDG hubs
• 31 Memoranda of Agreement and Memoranda of Understanding relating to the
• TDG program with other federal departments, provincial and territorial governments as well as other TC program activities to clarify roles and responsibilities and ensure collaboration

Aviation Security

• 89 Designated Aerodromes
• 6.5 million aircraft movements in 2018^{Footnote 16}
• 156 million passengers travelled to, from, and within Canada by air, and 91,000 cargo flights operated in the country (2018)^{Footnote 16}
• Over $135 billion worth of goods in international trade each year^{Footnote 16}
• 74 countries that are last points of departure to Canada, with a total of 211 aerodrome s^{Footnote 17}
• Canadian aviation industry employed over 103,000 people^{Footnote 16}

Intermodal and Surface Security

• 25 TC-RAC MOU signatories
• 12 IBT MOU signatories
• Approximately 400 TDG railway loaders
• 43 TDG Railway carriers
• Oversight focus is primarily on the passenger and freight rail systems (TDG and MOU)

Annex 2 - International engagement

Program	International body	Objective
Civil Aviation	International Civil Aviation Organization (ICAO)	Strengthen Canada's participation in ICAO meetings, panels, and working groups, including the upcoming 2021 ICAO High-Level Safety Conference (HLSC) and Remotely Piloted Aircraft Systems Panel (RPASP), to: influence Standards and Recommended Practices (SARPs) developed at ICAO ensure Canadian compliance with these SARPs, and help improve regulatory harmonization with likeminded authorities. Actively undertaking policy and assessment of regulatory options of the Global Aviation Safety Oversight System (GASOS) (2019-22) and Global Aviation Distress and Safety System (GADSS). Support Canada's member of the Air Navigation Commission and Canada's Permanent Mission to ICAO. Engage and support the ICAO North America, Central America and Caribbean (NACC) and South American (SAM) Regional Offices, providing technical assistance to the regions as requested and where appropriate in support of ICAO's No Country Left Behind initiative (NCLB). The technical assistance program will continue to focus on the Americas and Caribbean region while looking to partner with key likeminded authorities to better implement assistance projects.
	Multi-lateral engagement	Further trilateral cooperation initiatives with the Civil Aviation Safety Authority (CASA) of Australia and the Civil Aviation Authority of New Zealand (CAA NZ), as well as a bilateral with the European Union Aviation Safety Agency (EASA). Continued support and collaboration through the Certification Management Team (CMT) and Maintenance Management Team (MMT) in collaboration with our authority partners (i.e. Federal Aviation Administration (FAA), EASA, and the National Civil Aviation Agency of Brazil (ANAC)). Continued support, engagement and leadership in other international fora, including the Safety Management Inter-collaboration Working Group (SMICG) and the Regional Aviation Safety Groups (RASGs). Participation and collaboration efforts also include work to support the next edition of the Global Aviation Safety Plan (GASP) and Global Air Navigation Plan (GANP). Initiate a review of the regulations that enabled the North American Free Trade Agreement to allow for the 2019-2021 implementation of the Canada – United States – Mexico Agreement (CUSMA). Review the regulatory approach to grant market access for cross-border trade for Specialty Air Services (SAS) as part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPATPP). As a short-term action, the Department will issue a ministerial exemption under the Canadian Aviation Regulations (CARs) to any new countries party to the CPTPP to undertake SAS operations in Canada, once it is ratified. Work will be initiated to bring forward regulatory amendments that would codify this exemption in the CARs at a future date.  The Parties to the International COSPAS-SARSAT Program Agreement (ICSPA) have recognized a need to upgrade the COSPAS-SARSAT satellite system because of changes in the system's operating and political environment. A renewed ICSPA will ensure its continued and improved capacity to support transportation safety (Public Safety is the Canadian lead). Continue participating in OECD's International Transport Forum Working Group that is studying and preparing a report on Drone Integration into society.
	Bi-lateral engagement	Engage directly with partners (e.g., EASA, FAA, ANAC, the Civil Aviation Authority of Singapore (CAAS), CASA, CAA NZ, and the United Kingdom Civil Aviation Authority (UK CAA) to advance TC's priorities in the area of civil aviation (e.g., regulatory cooperation, negotiations, resolving issues, developing new avenues for collaboration, etc.) TCCA is exploring options that would reduce uncertainty for travelers and industry as a result of BREXIT.
Marine Safety and Security	International Maritime Organization (IMO)	Canada's efforts will be focused on advancing/influencing and working collaboratively with member states on several Government of Canada priority areas: Greenhouse gas reduction Polar Code II Ocean Management Ballast Water Management Vessel Noise Impacts on Marine Life Hazardous and Noxious Substances (HNS) Use of Heavy Fuel Oil in the Arctic Fatigue Management Evacuation and Fire Safety Standards Promoting women and underrepresented groups in the maritime sector (related to labour shortage in maritime sector)
	Arctic Council – Protection of the Arctic Marine Environment Working Group (PAME)	Collaborate with Arctic States, Arctic indigenous communities and other Arctic inhabitants on common Arctic issues, in particular on issues of sustainable development and environmental protection in the Arctic.
	Asia-Pacific Heads of Maritime Safety Agencies (APHoMSA)	Improve cooperation and exchange of information on maritime security, maritime safety, maritime environment protection and safety of people at sea. Canada will host APHoMSA in May 2020 in Vancouver.
	Canada-US bilateral engagement	Canada-US Maritime Domain Awareness (MDA): Build and reinforce bi-national, whole-of-government collaboration to improve maritime information, intelligence, and law enforcement information sharing. U.S. Coast Guard: Under the MOU on Lifesaving, the Department and the United States Coast Guard (USCG) intend to approve Lifesaving Appliances (PLSA) that have been tested by an organization recognized by both countries – found to be compliant with a mutually accepted approval standard – and covered by a mutually accepted follow-up program. U.S. Coast Guard discussion on Liquefied Natural Gas (LNG) U.S. Coast Guard discussion on cross-boundary oil spill risk assessment (tied to Trans-mountain pipeline) Discussions on life-saving equipment standards development. Annual Coast Guard summit to discuss issues on marine safety, security and environmental protection. Marine Security Operations Centres: To promote collaboration and advancement of marine security matters. Developing policy respecting the implementation of the Canada/US Land/Air/Marine/Rail preclearance accord across select marine facilities on the west coast.
	Arctic Security Working Group (ASWG)	Chaired by Joint Task Force North, the aim of the ASWG is to enhance safety and security and exercise sovereignty of Canada's North through information sharing and cooperation among federal and territorial government departments and agencies, as well as non-governmental organizations, academics, the private sector, and other stakeholders with an interest in northern issues.
	International Organization for Standardization (ISO)	Represent Canada while developing standards on vessel construction, including life-saving equipment, evacuation and fire safety.
	Port State Control MOUs (Paris, Tokyo, India)	Collaboration and exchange of information to support multilateral cooperation in administering port state control activities for foreign vessels.
	Recognized Organizations	Oversight of Recognized Organizations, delegated to perform inspections on behalf of TC.
Rail Safety	Bilateral meetings with the Federal Railroad Administration (FRA)	FRA Meetings are an essential part of TC's effort to: standardize TC's approach to railway safety harmonize on joint issues as per RCC commitments share lessons learned and the co-development of common programs elements such aa PTC/ETC
Motor Vehicle Safety	United Nations Economic Council for Europe (UNECE) Global Forum for Road Traffic Safety (WP.1)	Work with other countries to determine how to apply the 1949 and 1968 international road traffic conventions in the context of automated vehicles. Work to develop resolutions on how to manage road safety issues related to CAVs by participating in the Informal Group of Experts on Automated Driving (IGEAD).
	UNECE World Forum for the Harmonization of Vehicle Regulations (WP.29)	Work with other countries to develop standards and regulations for conventional vehicles and CAVs. Play a leading role while developing international standards and regulations to ensure the safety of electric vehicles (including batteries). Play a leading role to develop international standards and regulations for CAVs (including development of new validation methods).
	International Standards Organisation (ISO)	Help develop of international standards, with the aim of incorporating them in Canadian regulations where appropriate (including for crashworthiness, crash avoidance technologies, human factors and design, among others).
	SAE International	Help develop international standards, with the aim of incorporating them in Canadian regulations where appropriate (including for crashworthiness, crash avoidance technologies, human factors and design, among others).
	Policy development	Ongoing technical and policy support for aligned regulatory development and risk assessment of rapidly changing technologies, both in Canada and, the U.S., as well as the development of international regulations and standards through the United Nations (UN) and other international fora (e.g., SAE International); and Provide input with Other Government Departments for international reports by the UN and World Health Organization as it pertains to motor vehicle safety.
Transportation of Dangerous Goods	Regulatory Cooperation Council (RCC)	Continue to collaborate with the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) on a workplan of initiatives to more closely align our respective regulatory regimes for the transportation of dangerous goods, recognizing that regulatory differences and duplicative procedures impose unnecessary requirements and costs to citizens, businesses, and economies.
	United Nations (UN) Sub-Committee of Experts on the Transport of Dangerous Goods	Participate in, provide input, and represent Canadian interests at this international body that develops the Model Regulations for the transportation of dangerous goods adopted internationally in most countries respective of domestic regulations that leads to more uniform safety standards across the world.
	International Civil Aviation Organization (ICAO) Dangerous Goods Working Groups	Participate in, provide input, and represent Canadian interests at this international body that is responsible for periodic updating of Annex 18 to the Convention on International Civil Aviation and the Technical Instructions on the Safe Transport of Dangerous Goods by Air (Technical Instructions).
	ICAO Dangerous Goods Panel
	International Maritime Organisation (IMO) Sub-Committee on Carriage of Cargoes and Containers (CCC)	Participate in, provide input, and represent Canadian interests at this international body that deals with the carriage of packaged dangerous goods, solid bulk cargoes, bulk gas cargoes, and containers. The Sub-Committee keeps the International Maritime Solid Bulk Cargoes Code (IMSBC Code) and the International Maritime Dangerous Goods (IMDG) Code updated.
	IMO Editorial and Technical Group of the Sub-Committee on Carriage of Cargoes and Containers (IMO's Editorial and Technical Group)
	International Atomic Energy Agency (IAEA) Safe Transport of Radioactive Material Committee (IAEA – Transport Safety Standards Committee)	Participate in, provide input, and represent Canadian interests at this international body that establishes safety standards for the Transport of Radioactive Material.
Aviation Security	International Civil Aviation Organization (ICAO)	Re-establish Canadian leadership by strengthening Transport Canada's active and sustained participation in influential ICAO aviation security bodies (e.g., Aviation Security Panel, Panel Working Groups, ICAO Study Groups, ICAO North American/ Caribbean/ Central American Aviation Security and Facilitation fora, ICAO Council, ICAO Unlawful Interference Committee, ICAO Task Forces, etc.) in order to : Inform and influence the development of global aviation security policy, norms and standards, and practices so that they remain effective but are more evidence-based, risk-informed, outcomes-focused, economically viable, and sustainable Directly contribute to informing the enhancement of the domestic aviation security program so that it remains compatible and interoperable worldwide and to aid in greater rate of compliance with ICAO Standards and Recommended Practices (SARPs) Provide an influential platform for the promotion of Canada's aviation security policy, positions and programs To strengthen and build influential relations with Member States and ICAO to advance global interests that are aligned with Canadian values, priorities and objectives To ensure sustained efforts in maintaining leadership and influence with Member States, ICAO and existing key alliances in this global arena To gather information on potential roles for Canada in ICAO that align with horizontal and cross-cutting departmental and GoC objectives.
	QUAD Group Membership: Canada; USA; Australia; & EC High Level Group (HLG) – principals of the member governments/organisations who meet annually or semi-annually; Coordination Level Group (CLG) – senior members of governments/organisations who meet semi-annually; and Working groups – subject matter expert groups that meet to work on specific issues as tasked by HLG or CLG.	Information sharing, particularly on intelligence, risk and new countermeasures, with the aim of developing as much of a shared view on aviation security risk as possible Meeting partners about international aviation security issues and activities, in particular the ICAO aviation security agenda, but also other international and regional forums Driving and leading innovation – trialing and piloting ideas and concepts with trusted partners based not only on shared perceptions of current risks to aviation security but also on a common view of where our collective efforts are best placed going forward Maintaining critical personal relationships that can be called on during security events
	CORE Group Membership: Canada; France; UK; USA; Germany; Australia; Netherlands; EC/ECAC	Increase international AvSec cooperation to address security gaps in countries of known concern. Increase the visibility/profile of aviation security at the next United Nations General Assembly.
	A5 Group Membership: Canada; USA; Australia; UK; New Zealand	The A5 provides an effective mechanism to: coordinate domestic and international responses to address emerging threats leverage A5 partners' shared intelligence picture and operating environment; and ensure a common understanding of vulnerabilities
	Transportation Security Authority (TSA) - USA	Transport Canada Aviation Security coordinates with the TSA to share information on aviation security threats and countermeasures, and to collaborate on shared objectives in support of Canada's most important security and trading relationship.
Intermodal Surface Security and Emergency Preparedness	The United States-Canada Transportation Security Cooperation Group (TSCG)	The annual meeting provides a basis for: Exchanging information on possible future security requirements Discussing the implementation and harmonization of new or existing security requirements Coordinating American and Canadian positions relating to work in other international transportation forums  Recent areas of focus include exchanges on regulatory development for freight and passenger rail security, common stakeholder engagement activities (i.e. security roundtables and classified briefings with stakeholders), and sharing of intelligence and best practices.
	The International Working Group on Land Transport Security (IWGLTS)	Share best practices and information on surface transportation security policy and regulatory development with international partners to ensure TC's approach to surface security is consistent with international partners Maintain a contact of international partners in case of security incidents requiring information to brief senior management.

*Programs list the international bodies they are a part of and the key objectives they seek to meet for each of those forums.