FAQ - consolidation

Administrative monetary penalties are fines issued by government agencies. Under the authority of the Railway Safety Act, Transport Canada can fine railways for contraventions of the Act, or regulations and rules made under the Act.

Fines are based on the severity of the violation. The maximum amount is $50,000 for an individual and $250,000 for a corporation. Examples of fines are as follows:

Any individual or corporation subject to the Railway Safety Act, regulations or rules made under the Act can receive a fine.

The Minister of Transport or delegated authority can issue administrative monetary penalties.

Fines are issued to railway companies for contraventions to the Railway Safety Act, regulations or rules.

Transport Canada monitors railway companies for compliance with the Act, regulations and rules through risk-based railway safety inspections and audits.

If an inspection or audit reveals non-compliance, Transport Canada does not hesitate to take appropriate action, which is based on the severity of the non-compliance and can involve one or more enforcement tools.

Tools under the Railway Safety Act to mitigate safety threats and enforce compliance include:

• Letters of Non-Compliance
• Letters of Concern
• Notices
• Notices and Orders
• Emergency Directives
• Ministerial Orders
• Court Orders
• Administrative Monetary Penalties
• Railway Operating Certificates (proposed)
• Prosecution

Yes, any individual or corporation issued an administrative monetary penalty may request that the Transportation Appeal Tribunal of Canada review the violation or the amount of the penalty.

For more information, please visit the Transportation Appeal Tribunal of Canada website at http://www.tatc.gc.ca/index.php.

Transport Canada accepts payment by cheque made to the Receiver General for Canada.

Information about the Receiver General for Canada is available at http://www.tpsgc-pwgsc.gc.ca/recgen/txt/index-eng.html.

An unpaid fine is a debt due to the Crown and may be recovered by collection procedures stipulated in the Financial Administration Act.

The Financial Administration Act is available at http://laws-lois.justice.gc.ca/eng/acts/f-11/.

Money collected through railway safety administrative penalties is held in the Government of Canada’s Consolidated Revenue Fund.

The Consolidated Revenue Fund is the account into which the government deposits taxes and other revenues, and from which the government withdraws money to cover its expenditures.

The Receiver General for Canada manages the operations of the federal treasury and ensures the integrity of the Consolidated Revenue Fund.

Information about the Receiver General for Canada is available at http://www.tpsgc-pwgsc.gc.ca/recgen/txt/index-eng.html.

As of November 1, 2014, Transport Canada has not issued any fines to railway companies under the authority of the Railway Safety Act.

Once the Railway Safety Administrative Monetary Penalties Regulations come into force on April 1, 2015, Transport Canada will be able to issue fines to individuals and railway companies for contraventions of the Act, regulations and rules.

Administrative monetary penalties are less costly and time consuming than prosecution.

The Railway Safety Administrative Monetary Penalties Regulations were developed in response to recommendations from the 2007 Railway Safety Act review and 2008 report of the Standing Committee on Transport, Infrastructure and Communities (SCOTIC).

In its report “Stronger Ties: A Shared Commitment to Railway Safety,” the Railway Safety Act review panel recommended that the Railway Safety Act include an administrative monetary penalty scheme as an additional enforcement tool. Similarly, the 2008 report of SCOTIC supported the recommendation that Transport Canada adopt administrative penalties for companies that violate safety rules.

Based on these recommendations, the Railway Safety Act was amended and came into force on May 1, 2013 to provide the authority to develop regulations for administrative monetary penalties.

Yes. In February 2014, Transport Canada consulted with the following stakeholders on the Regulations:

• Canadian railway industry, including all companies under federal jurisdiction and the Railway Association of Canada;
• Labour organizations including, but not limited to, UNIFOR, Teamsters Canada Rail Conference, and United Steelworkers; and
• Representatives of provincial governments.

Industry has been aware of the Railway Administrative Monetary Penalties Regulations since they were recommended in the 2007 Railway Safety Act Review.

The Railway Safety Administrative Monetary Penalties Regulations will come into force on April 1, 2015.

Yes, railway companies can be fined for violations of the Canadian Rail Operating Rules.

Under the Railway Administrative Monetary Penalties Regulations, railway companies or individuals can be fined for any contravention of railway safety rules under the Railway Safety Act, including the Canadian Rail Operating Rules.

The maximum payable amount for a violation of a rule is $125,000 for a corporation and $25,000 for an individual.

A list of railway safety rules is available at https://tc.canada.ca/en/rail-transportation/rules.

Yes, railway companies can be fined for violations of the current 2001 Railway Safety Management System Regulations.

The Railway Administrative Monetary Penalties Regulations include a schedule that sets out the applicable provisions of the current Railway Safety Management System Regulations. Examples of the applicable provisions of the current 2001 Railway Safety Management System Regulations include:

• Subsection 4(1), which requires a railway company to submit to the Minister prescribed information in respect of its safety management system: maximum payable amount — $5,000/$25,000.
• Subsection 3(1), which requires accident and incident investigation reports and related corrective actions: maximum payable amount — $25,000/$125,000.
• Section 2, which requires railway companies to implement and maintain a safety management system with the minimal prescribed elements: maximum payable amount — $50,000/$250,000.

Transport Canada has also proposed new Railway Safety Management System Regulations, which were pre-published in the Canada Gazette, Part I on July 5, 2014.

The new proposed Regulations would repeal and replace the 2001 Railway Safety Management System Regulations and would include revisions and modernizations such as the:

• expansion of the scope of application to include local railway companies;
• inclusion of new requirements pursuant to revised authorities in the Railway Safety Act;
• revision and expansion of existing requirements by providing more detail on regulatory objectives; and
• revision of existing requirements to provide a clearer explanation of the  expectations for industry.

Future revisions to the Administrative Monetary Penalties Regulations would include provisions of the new proposed Safety Management System Regulations as well as provisions of other new proposed regulations, such as the Grade Crossings Regulations and Railway Operating Certificate Regulations.

The current 2001 Safety Management System Regulations are available at http://laws-lois.justice.gc.ca/eng/regulations/sor-2001-37/.

The new proposed Safety Management System Regulations are available at http://www.gazette.gc.ca/rp-pr/p1/2014/2014-07-05/html/reg1-eng.php.

A grade crossing is a road crossing whose road passes across one or more lines of railway at grade (same level).

A passive grade crossing is a crossing which is equipped with traffic control systems that use non-electronic means to notify motorists of the location of a grade crossing and the likelihood of an approaching train. Examples of the traffic control devices used include a Railway Crossing Sign, Stop Sign and Railway Crossing Ahead Sign. The majority of the grade crossings in Canada are passive. An example of a Railway Crossing Sign assembly, incorporating a Stop sign is shown in Figure 1 below.

Figure 1

An active grade crossing is equipped with electronic traffic control devices. The electronically controlled system utilizes a combination of a Railway Crossing Sign, flashing lights, bells, gates and/or traffic signal pre-emption to alert motorists of an approaching train at a grade crossing. An example of a system incorporating flashing lights, bells and gates is shown in Figure 2 below.

Figure 2

Transport Canada's mission is to develop and administer policies, regulations and services for the best transportation system for Canada and Canadians – one that is safe, secure, efficient, affordable, integrated and environmentally friendly.

Under the authority of the RSA, the proposed Grade Crossings Regulations would reduce the frequency and severity of accidents, therefore saving lives and preventing injuries and derailments at federally-regulated grade crossings, furthering Transport Canada’s mission to serve the public interest through promotion of a safe and secure transportation system in Canada. In particular, the proposed Regulations would improve safety by:

• establishing comprehensive and enforceable safety standards for grade crossings;
• clarifying the roles and responsibilities of railway companies and road authorities; and
• ensuring the sharing of key safety information between railway companies and road authorities.

The Grade Crossings Regulations would fall under the Railway Safety Act, which gives Transport Canada the responsibility for safety oversight of grade crossings. The Act provides the regulatory framework for railway safety, security, and some of the environmental impacts of railway operations in Canada.

The Grade Crossings Regulations would apply to all public and private grade crossings on federally-regulated rail lines. They would also govern the railway companies,road authorities andprivate authorities who share ownership of these grade crossings.

Road authorities may include federal departments and agencies, provinces, municipalities and band councils that manage public roads.

Private authorities  may include residential, agricultural, industrial, commercial and recreational land owners of paths, trails and roads.

Transport Canada is developing the Regulations under the Railway Safety Act, as per the Cabinet Directive on Regulatory Management (CDRM).

The CDRM is a highly structured federal regulatory development process. This performance-based regulatory framework is designed to protect the public’s interest by ensuring that federal departments perform thorough analysis to, for example, determine the need for government intervention, determine the impact of the regulatory proposal, consult stakeholders and the public and ensure departments have an implementation and enforcement plan.

Extensive consultations on the Grade Crossings Policy and Standards have been carried out over many years with railway companies, road authorities and private authorities.

On June 21, 2012, Transport Canada’s Rail Safety Group completed a series of targeted national consultation meetings regarding the development of Grade Crossings Regulations held with railway companies, road authorities and private authorities. The consultation meetings constituted the second phase of a two-phase process that began with a 60-day online consultation conducted from January 30, 2012 through April 24, 2012, which was open to the public.

As a result of comments received, Transport Canada extended its departmental consultation process to meet with main stakeholders that participated at the national tour in May and June. Prior to publishing the Regulations in the Canada Gazette, Part I, a final departmental consultation meeting was held on November 15, 2012, in Ottawa with the Federation of Canadian Municipalities, the provincial departments of transportation, the Railway Association of Canada and the unions to explain the department’s decision-making process. A representative from the Assembly of First Nations was also present as an observer. The material on the Grade Crossings Policy’s departmental consultations are available on the archived section. 

The proposed Grade Crossings Regulations were pre-published in the Canada Gazette, Part I on February 8, 2014 to allow stakeholders and the public 90 days to provide comments.

The Grade Crossings Regulations will come into force at the date specified when they are published in the Canada Gazette, Part II.

As required by the Treasury Board of Canada Secretariat, Transport Canada has developed an implementation plan which will include tools and guidelines to assist all affected parties. A summary of this plan is included in the Regulatory Impact Analysis Statement published in the Canada Gazette, Part I along with the proposed Regulations.

Although positive results have been achieved with education and awareness, new technologies, and, a reduction in the number of grade crossings, Transport Canada’s analysis shows that avoidable collisions and fatalities may continue to occur without any government intervention. The growing trend of urban sprawl, the increase in motor vehicles on the roads, and longer and more efficient trains may increase the population’s exposure to the safety risks at grade crossings.

The proposed Regulations would reduce the risks at crossings and therefore is expected to save Canadian lives.

According to Transportation Safety Board statistics, between 2006 and 2010, at both public and private crossings, collisions involving railway equipment resulted in an average of 27 serious injuries and 25 fatalities annually. On average, there was one fatality for every nine collisions at grade crossings, and one serious injury for every seven collisions. In addition, trains are derailed in one out of every 40 crossing collisions, often resulting in significant property damage and transportation system delays.

Although the risk of a grade crossing collision has fallen over the past 25 years, since 2009 the number of fatalities at grade crossings has increased. Crossing fatalities totaled 25 in 2011, 29 in 2012 and 32 in 2013.

For more railway statistics, please visit the Transportation Safety Board’s website.

The proposed Regulations would respond to the Transportation Safety Board’s Watchlist item of the “risk of passenger trains colliding with vehicles remains too high in busy rail corridors”, including two recommendations – that the Department of Transport:

• “implement standards to improve the visibility of emergency contact signage at railway crossings in Canada”; and
• “must implement new grade crossing regulations.” 

Under the Railway Safety Act, railway companies and road authorities are each responsible for the safety of grade crossings. The current approach to managing safety at grade crossings requires collaboration between railway companies and road and private authorities.

Transport Canada’s role is to oversee railway safety by monitoring compliance with rules, regulations and standards through risk-based railway safety inspections. Should an issue of non-compliance be identified, there are a range of enforcement tools available, up to and including prosecution. Transport Canada does not hesitate to take appropriate enforcement action in cases where non-compliance is found.

The Canadian Transportation Agency is an independent, quasi-judicial tribunal that makes decisions on a wide range of matters involving federally-regulated modes of transportation (air, rail and marine), and has the powers, rights and privileges of a superior court to exercise its authority. It is mandated with powers to resolve disputes on rail crossings (including the apportionment of costs) between federal railways and other parties who may interact with those railways.

The Transportation Safety Board of Canada is an independent agency created to advance transportation safety through the investigation of occurrences in the marine, pipeline, rail and air modes of transportation.

The Railway Safety Act was developed in the spirit of cooperation between industry and government and recognizes the responsibility of railway companies and road authorities for the safety of their grade crossings. It is the responsibility of the railway companies and the road authorities to ensure that the safety features at their grade crossings meet the requirements prescribed in the regulations.

Transport Canada provides standards and guidelines to assist railway companies and road authorities in their decision-making in order to comply with regulations.

Under section 10 of the Railway Safety Act, Transport Canada can make specific determinations to resolve safety-related objections on proposed railway works, such as the reconstruction of a grade crossing. Prescribed works are defined in the Notice of Railway Works Regulations.

If the lack of agreement between railway companies and road authorities leads to the safety requirements not being met at a grade crossing, Transport Canada may use enforcement action such as ordering the closure of the crossing.

Should railway companies and road authorities disagree on the cost apportionment of railway works to be done at a grade crossing, the Canadian Transportation Agency can decide the cost apportionment.

The Grade Crossing Improvement Program (GCIP) provides funding for improvements at grade crossings for public use. When a GCIP application is submitted to Transport Canada by a responsible authority, the project is prioritized on a risk basis and approved for funding through a standard evaluation process.

The Grade Crossing Closure Program provides funding to close grade crossings where a safety concern or hazard exists, or, where the closing of the crossing will divert the user to an adjacent crossing where a higher level of safety exists.

No. Both parties must agree to the closure of a crossing that is considered an Order of the Agency. In case of disagreement, the Canadian Transportation Agency may provide resolution.

The Grade Crossings Standards are incorporated by reference to the proposed Grade Crossings Regulations. They would provide best engineering practices for the oversight of safety and reflect modern safety technologies and practices at grade crossings. They would impose clear standards that meet the safety goals of the Railway Safety Act and are enforceable, thus improving consistency and safety at grade crossings.

Until the Grade Crossings Regulations are published in Canada Gazette, Part II, the October 2002 draft version of the RTD 10 (Technical Standards and Inspections, Testing and Maintenance Requirements) should continue to be used as a best engineering practice for federally-regulated grade crossings.

The proposed Regulations would strengthen the process by making it part of the regulatory authority. The proposed Regulations would prescribe the requirements applicable to the type of area where train whistling could be prohibited and would be based on the safety attributes of the grade crossing.

A “local railway company” is a provincially-regulated railway company or light-rail commuter service which operates on a federally-regulated railway. “Railway” includes tracks, branches, extensions, sidings, railway bridges, tunnels, stations, depots, wharfs, rolling stock, equipment, stores or other things connected with the railway. It also includes communications or signaling systems and related facilities and equipment used for railway purposes. It does not include an agent or mandatary of the host railway company.

A company that is hired by the host railway company to do maintenance on the track, for example, would be considered an agent or mandatary of that railway company and would be excluded from the definition of local railway company.

A host railway company is a federal railway company that holds a certificate of fitness and that operates a federally-regulated railway.

A Notice is an official document, issued under section 31 of the Railway Safety Act, informing the railway company or local railway company that a threat to the safety of its operations was found and requiring the company to respond within a set timeframe with safety measures taken to mitigate the threat.

A Notice and Order is a Notice that includes an Order. A Railway Safety Inspector may include such an Order when he or she believes that a threat is immediate. The inspector can either restrict the local railway company or railway company’s operations or allow it to continue under certain terms and conditions.

There is a definition in the Railway Safety Act that states, “A threat is a hazard or condition that could reasonably be expected to develop into a situation in which a person could be injured or made to be ill or damage could be caused to the environment or property, and a threat is immediate if such a situation already exists”. The threat is determined by a Railway Safety Inspector based on his or her qualification and experience.

On May 1, 2013, local railway companies will become subject to the Railway Safety Act when operating on federally-regulated railway lines. This means that they will be directly responsible for complying with the federal railway safety regime when on federal track and will be able to submit rules that apply to their operations to Transport Canada for approval. Transport Canada will be responsible for monitoring their compliance to these rules by going directly to them instead of the host railway company.

No. It simply means that local railway companies will be subject to the Railway Safety Act when operating on federally-regulated track.

Nothing changes the way local railway companies are regulated while operating on provincially-regulated tracks. In cases where provincially-regulated railways have a long-term lease with a federally-regulated railway, the tracks are considered provincial and not federally-regulated track. Where Transport Canada has an inspection agreement with a province, the agreement will not be affected by the amendment.

The amendment was made to clarify Transport Canada’s responsibility for regulating the safety of rail operations while on federally-regulated track. Any railway company that operates on federally-regulated track falls under Transport Canada to regulate, no matter the operation.

No, this does not have any effect on these contractual agreements as long as the approved rules do not conflict with them, in which case the rules would prevail.

Until amendments are brought to the SMS Regulations, the SMS Regulations will not apply to local railway companies. Local railway companies are encouraged to continue their good safety practices.

Simply follow the Easy Steps to Submit Rules.

In order to help local railway companies transition to this new regime, they will have until November 1, 2013 to submit their rules for approval. However, Transport Canada encourages local railway companies to file their rules as early as possible, starting May 1, 2013.

Local railway companies are encouraged to file the same rules as their host railway company’s rules, unless there is a very specific reason to file different ones. In general, operating rules (Canadian Rail Operating Rules) would apply, and if the local railway company is responsible for equipment some equipment rules, or if it offers passenger service, rules related to passengers. Visit Transport Canada’s website for a complete list of the rules.

Rules relating to training, hours of work and rest, and medical requirements do not apply to local railway companies as employee issues fall under provincial jurisdiction. Local railway companies may however still be obligated by contract with their host railway companies to abide by these particular rules.

If local railway companies are unsure which rules apply to their operations, they can either contact the Railway Association of Canada (RAC) for assistance if they are a member, or their host railway company. They could also communicate with their respective Transport Canada regional office or contact Transport Canada at railsafety@tc.gc.ca or at 613 998-2985.

The package you send to Transport Canada should include:

1. A letter (template #2) to Transport Canada containing the list of applicable rules;
2. The letter (template #1) sent to your host railway company; and
3. The host railway company’s response to your letter.

The package can be sent:

• by email to railsafety@tc.gc.ca
• by fax at 613 990-7767
• by mail to:

Mr. Luc Bourdon
Director General, Rail Safety
Transport Canada
Mailstop: ASR
427 Laurier Avenue West
Ottawa, ON K1A 0N5

The Railway Safety Act provides the Minister of Transport Canada with the authority to order a company to file rules, which is known as a Ministerial Order. Local railway companies that have not filed rules by November 1, 2013 will be assessed by Transport Canada to determine whether or not they will be ordered to do so.

No, the local railway company is required to consult with the host railway company only.

Simply follow the Easy Steps to Submit Rules.

Local railway companies should continue to follow their host railway company’s rules until their own rules are approved.

Yes, once Transport Canada has approved rules for a local railway company, that local railway company can submit a request to Transport Canada to be exempted from provisions of these rules provided that the host railway company has been consulted, as required. Transport Canada will not object to an exemption if it is in the public’s interest and if it does not compromise the safety of railway operations.

The Railway Safety Inspector holds a certificate which identifies the matter for which the inspector is qualified to act. He or she monitors the safety of the operations of all companies that operate on federally-regulated railways and verifies their compliance to the Railway Safety Act and rules that apply to their operations. He or she issues Notices or Notices and Orders to mitigate threats or immediate threats to safety, if threats are caused by a company’s operations.

Starting May 1, 2013, Transport Canada’s Railway Safety Inspectors will have the authority to issue a Notice or a Notice and Order directly to local railway companies.

If, while they are monitoring a local railway company’s operations, a Railway Safety Inspector discovers a threat to safety, he or she has the power to issue an official Notice directly to the local railway company indicating the threat. The local railway company will be obligated to respond by a certain date explaining how it intends to eliminate that threat.

If the Railway Safety Inspector thinks that there is an immediate threat to safety, he or she may decide to include an Order in the Notice which would either restrict a local railway company’s operation or allow it to continue under certain conditions. These restrictions or conditions will be lifted only after an action to eliminate the threat has been taken to the inspector’s satisfaction.

A local railway company that receives a Notice and Order can appeal the Order by sending a formal request to the Transportation Appeal Tribunal of Canada (TATC). The address will be contained in the Order. The local railway company has 30 days from the receipt of the Order to appeal.

The same thing as if a federally-regulated railway company did not comply with an Order. Non-compliance to an Order is a serious offence under the Railway Safety Act for which the company can be prosecuted. The Minister can also have this Order made an Order of a Court to be enforced as such. The local railway company representatives could be summoned to appear in Court or could ultimately be arrested.

The Railway Safety Inspector will issue a Letter of Non-Compliance to the local railway company requesting that it respond indicating what action it intends to take to comply. The company has 14 days to respond.

Yes, they can be prosecuted.

Yes, a list of all local railway companies is currently being finalized. Transport Canada will be contacting each local railway company to find out who their “most senior official” is.