Section III: Analysis of Program and Internal Services

Refine and strengthen Transport Canada’s safety and security oversight has three Strategic Outcomes that reflect long-term and enduring benefits to Canadians that stem from its raison d’être and vision. As we strive towards these outcomes, Transport Canada can report progress in relation to expected results^{Footnote 19}, performance indicators^{Footnote 20} and targets^{Footnote 21} in line with the Program Alignment Architecture (PAA). What distinguishes the different levels of a PAA is the scope and reach of the Programs at those levels. The Program level has a broad scope and area of societal intervention, while the Sub-Program (SP) and Sub-Sub-Program (SSP) levels have a more limited and specific focus on a smaller target group and area of intervention.

This section:

• Describes how Transport Canada met the expected results indicated in the 2015-16 Report on Plans and Priorities; and
• Presents the financial and non-financial resources dedicated to each Program.

Strategic Outcome 1: An Efficient Transportation System

An efficient transportation system supports trade, economic prosperity and a better quality of life through low costs, high productivity, the best use of all modes and innovation in transportation. Transport Canada promotes an efficient transportation system in Canada by: modernizing marketplace frameworks so that the transportation sector can adapt, innovate and remain competitive; implementing gateways and corridors initiatives; ensuring the renewal of federal transportation infrastructure; encouraging innovation in the transportation sector; and partnering with provinces, territories, municipal governments, and public and private sector entities in various transportation initiatives.

The following Programs support this Strategic Outcome:

Program 1.1: Transportation Marketplace Frameworks

Description: The Transportation Marketplace Frameworks Program encourages transportation efficiency by fostering a competitive and viable transportation sector. The Program: sets regimes governing the economic behaviour of carriers in all modes of transportation; sets the rules of governance for all the transportation infrastructure providers falling under federal authority; monitors, analyzes, researches, and reports on the transportation system; promotes innovation in transportation; enables access to transportation for Canadians; represents the interests of Canada in trade negotiations, international transportation fora and other international bodies; promotes access to markets in the context of international trade; fosters greater cooperation to support economic activity; and fulfills certain federal responsibilities with regard to the International Bridges and Tunnels Act.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Transportation Marketplace Frameworks Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Continued to exchange information and to give advice on developing performance metrics via the Commodity Supply Chain Table, which was launched in June 2014 to provide a forum for stakeholders to address issues particular to rail-based commodity supply chains. The Table held two meetings, one in Montreal in June 2015 and one in Ottawa in February 2016. In addition to promoting a continued dialogue among supply chain participants, work has continued, in collaboration with industry stakeholders, on the development of supply chain performance metrics;
• Issued in November 2015, the Ministerial decision to grant an indemnity4^{Footnote 22} to aviation industry participants, under the Aviation Indemnity Act, until June 30, 2016 to provide industry time to acquire commercial insurance coverage;
• Developed and brought forward a strengthened rail liability and compensation regime under the Safe and Accountable Rail Act (received Royal Assent on June 18, 2015) and undertook policy analysis and development to support a competitive and efficient freight rail system;
• Completed projects funded through the Northern Transportation Adaptation Initiative. This included:
  • Installing two test sites along the Inuvik to Tuktoyaktuk Highway and the first phase of data collection to assess adaptive measures (i.e. including multiple layered geotextiles to wick moisture away from the highway embankment and alternative culvert structures);
  • Assessing the vulnerability of three northern airports to the impacts of climate change; and
  • Evaluating satellite-based remote sensing technologies to monitor permafrost conditions along northern roads;
• Helped implement the Comprehensive Economic and Trade Agreement (CETA) and gave input to other government departments and agencies moving forward in their implementation. We also established a Government/Industry Working Group on CETA Implementation to inform the marine industry of CETA outcomes and to discuss technical issues to inform legislative amendments;
• Worked with Infrastructure Canada to develop an infrastructure ferry category under the New Building Canada Fund;
• Published regulations for liquefied natural gas facilities on federal port lands in Canada Gazette I. We received comments and incorporated amendments to the regulations;
• Provided support for the implementation of the new land, rail, marine and air preclearance agreement with the U.S.; and
• Completed public consultations on an application under the International Bridges and Tunnels Act to replace the Ambassador Bridge.

2015-16 Budgetary Financial Resources (in dollars^{Footnote 23}) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
24,473,890	24,473,890	25,633,462	26,968,970	(2,495,080)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
160	173	(13)

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
1.1 Transportation Marketplace Frameworks
a) A competitive transportation sector	Rail freight transportation intensity (tonne-km per locomotive) (Transportation intensity represents system usage)	120,917,636	149,337,129
b) A competitive transportation sector	Truck freight transportation intensity (tonne-km per heavy vehicle) (Transportation intensity represents system usage)	1,662,130	1,853,430
c) A competitive transportation sector	Marine freight transportation intensity (tonne-km per port call) (Transportation intensity represents system usage)	2,895	2,871
d) A competitive transportation sector	Air passenger transportation intensity (passenger-km per seat-km) (Transportation intensity represents system usage)	0.79	0.83
e) A competitive transportation sector	Rail passenger transportation intensity (passengers per available seat) (Transportation intensity represents system usage)	0.59	0.57

Explanation of Variance

1. a) 2014 data^{Footnote 24}: The number of locomotives in service fell by 11% while traffic (tonne-km) increased by over 8%. A bumper crop produced a major increase in grain shipments.
2. b) 2014 data: The number of trucking shipments increased by 4% while the total tonnage moved increased by 7.9%. Growth in the for-hire trucking fleet size (estimated) was lower, meaning there was greater utilization of the existing fleet.
3. c) Estimated for 2014 using 2011 baseline: The target was missed very slightly due to an estimated decrease in overall tonnage of 0.6%.
4. d) 2015 data: In 2015, available seat kilometres and revenue passenger-km grew both in the domestic and international sectors by just over 4%. Domestic load factors dropped, while international load factors went up slightly. As a result, the combined (domestic plus international) overall load factor has been nearly unchanged since 2012.
5. e) 2015 data: While the number of passengers grew by 0.4% from 2014, the number of available seats grew by 8.6%, which led to less full trains on average.

Program 1.2: Gateways and Corridors

Description: Canada is a trading nation, and the efficiency and reliability of the transportation system to support this trade impacts directly on the nation’s prosperity and well-being. For this reason, it is imperative that the federal government play a role in the development of an integrated transportation network linking importers and exporters to markets and suppliers in the increasingly complex global supply chains. Guided by the National Policy Framework for Strategic Gateways and Corridors, the Gateways and Corridors Program supports Canada’s international commerce by creating a more efficient, reliable and seamless trade-related transport system in Canada. The Program: develops initiatives to improve and integrate transportation networks in key regions; fosters partnerships between all levels of government and the private sector; supports and oversees projects that contribute to the increased capacity and efficiency of gateway and corridor infrastructure; develops and puts in place measures that remove impediments to the effective development of gateways and corridors; and markets the use of gateways and corridors within Canada and internationally.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Gateways and Corridors Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Continued to support the development of the Asia-Pacific Economic Cooperation Port Services Network (APSN) by:
  • Providing technical support to the APSN Secretariat;
  • Promoting the organization and its benefits in the region; and
  • Continuing to hold the Presidency of the APSN Council, since it began in 2008.
• Promoted Canada’s Gateways as an efficient, reliable and secure transportation solution to domestic and international audiences through a number of marketing activities and communications materials, including:
  • Providing funding to project proponents for marketing initiatives under Atlantic Gateway International Marketing, a component of the Gateways and Border Crossings Fund;
  • Completing eight and announcing nine new Asia-Pacific Gateway and Corridor Initiative infrastructure projects, to support trade and economic growth; and
  • Supporting domestic and international events such as Cargo Logistics Canada, Breakbulk Europe/Americas , the Great Lakes Economic Forum and Saint John and Port of Halifax Port Days;
• Continued our ongoing Memorandum of Understanding (MoU) collaboration with other countries, including:
  • Co-hosting the third Canada-China Trade Logistics Policy Forum in Xi’an, China under the MoU on Trade Logistics Cooperation with the National Development and Reform Commission of China; and
  • Advancing commitments under the MoU and Action Plan on Cooperation in the Field of Transportation with South Korea, in March 2016.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
576,569,290	576,569,290	573,185,796	405,981,642	170,587,648

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
45	33	12

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
1.2 Gateways and Corridors
Gateways and corridors are efficient	Total average landside transit time (number of days) of international containerized freight using Canada’s strategic gateways and trade corridors	7.0 days of average landside transit with a standard deviation of 0.4 days	Average of 8.4 days, standard deviation of 1 day

Explanation of Variance

West Coast operational issues dominated the performance of the aggregate system in the first and second quarter, while poor performance at Port of Montreal affected transit time in the second and third quarter.

Program 1.3: Transportation Infrastructure

Description: The Transportation Infrastructure Program oversees, funds and manages multimodal transportation infrastructure under Transport Canada’s mandate to improve efficiency and service delivery for the benefit of Canadian taxpayers. The Program acts as the steward of certain commercial transportation assets operated by third parties on behalf of the federal government (airport authorities, port authorities, federal bridges, VIA Rail, St. Lawrence Seaway Management Corporation, Marine Atlantic); provides funding for Canada’s strategic transportation infrastructure to support federal objectives; and develops transportation infrastructure policy through consultation with stakeholders. It also manages Transport Canada ports and airports, supports essential services in remote communities, manages legacy commitments, and divests assets where possible.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Transportation Infrastructure Program, along with our lower level Sub-Programs and Sub-Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Implemented the Asset Management Strategy for Transport Canada-owned ports through the Ports Asset Transfer Program, in April 2015. The roll-out of the Program began in fiscal 2015-16 and will continue until fiscal 2019-20; and
• Replaced the MV^{Footnote 25} Princess of Acadia by the MV Fundy Rose on the Saint-John-Digby route in July 2015, and it is operated by Bay Ferries Limited.

While we did not complete the development of a long-term airport assets management strategy as originally planned for fiscal 2015-16, we will consider the recommendations of the Canada Transportation Act Review in relation to the adoption of future airport asset management strategies.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
399,495,001	399,495,001	460,209,499	412,254,667	(12,759,666)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
242	251	(9)

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
1.3 Transportation Infrastructure
Federally funded infrastructure is operational	Percentage of federally funded transportation infrastructure that meets annually established operational targets	100%	100%

Strategic Outcome 2: A Clean Transportation System

Transport Canada promotes a clean transportation system in Canada. This Strategic Outcome: advances the federal government’s environmental agenda in the transportation sector and complements other federal programs designed to reduce air emissions to protect the health of Canadians and the environment for generations to come; protects the marine environment by reducing the pollution of water from transportation sources; and fulfills Transport Canada’s responsibilities in working towards a cleaner and healthier environment with regard to its own operations.

The following Programs support this Strategic Outcome:

Program 2.1: Clean Air from Transportation

Description: Transport Canada’s Clean Air from Transportation Program advances the federal government’s environmental agenda in the transportation sector and complements other federal programs designed to reduce air pollutant and greenhouse gas emissions (GHG) to improve the health of Canadians and the environment for generations to come. The Program: regulates air pollutant and/or greenhouse gas emissions from the air, marine and rail sectors; and implements Transport Canada’s Clean Air Program obligations and commitments.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Clean Air from Transportation Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Continued to actively participate in the International Maritime Organization’s Marine Environment Protection Committee and the Sub-Committee on Pollution Prevention and Response to address air pollutant, greenhouse gas (GHG) emissions and short-lived climate pollutant emissions from international maritime transportation, which included:
  • Developing a draft data collection framework for vessels to report their fuel consumption and activity levels so we can develop standards on energy efficiency for all ships in excess of 5,000 gross tonnes^{Footnote 26};
  • Developing draft guidelines on fuel quality, to respond to marine industry concerns;
  • Reviewing current energy efficiency standards for new ships to see if they meet energy efficiency targets, and
  • Overseeing work on a study to determine whether available marine fuel complies with pending global reduction limits for sulphur content from 3.5% to 0.5%. The standard will enter into force on either January 1, 2020, or January 1, 2025, depending on the outcomes of the study to confirm available supply;
• Continued to lead the Government of Canada’s participation at the International Civil Aviation Organization (ICAO) to reduce the impact of international aviation on the environment by:
  • Addressing air pollutant and greenhouse gas emissions from international aviation; and
  • Contributing to a number of Committee on Aviation Environmental Protection (CAEP) technical groups, including:
    • The completion of:
      • New carbon dioxide (CO2) standard for aircraft, which was a key CAEP accomplishment this year; and
      • Non-volatile particulate matter standards for aircraft engines, including black carbon;
    • The Global Market-Based Measures Task Force, which is assessing and making recommendations on technical elements of a market-based measure for international aviation related to:
      • Monitoring;
      • Reporting and verification; and
      • Criteria for eligible emissions units; and
    • The Alternative Fuels Task Force, which is:
      • Evaluating the potential uptake of alternative fuels in aviation;
      • Forecasting the availability of alternative fuels to the year 2050;
      • Evaluating the range of potential GHG emissions reductions from the use of alternative fuels from different feed stocks; and
      • Accounting for alternative fuel use within a global marketplace;
• Contributed to the ICAO Environmental Advisory Group and High Level Group, which are developing the policy framework for a global market-based measure for international civil aviation to help meet the international aviation goal of Carbon Neutral Growth post-2020;
• Provided cost-shared funding to support the deployment of marine shore power technology at Canadian ports. This technology allows ships to plug into the local electrical grid for vessel power rather than operating auxiliary diesel engines while docked. Specific accomplishments in 2015–16 include the:
  • Successful completion of two projects with the Port of Halifax and British Columbia Ferry Services (BC Ferries);
  • Approval of two additional projects, which are still under construction, specifically with:
    • the Montreal Port Authority for a cruise ship shore power systems; and
    • the Vancouver Fraser Port Authority for two container ship terminals;
• Addressed GHG emissions and air pollutant emissions from the rail sector by:
  • Extending the Memorandum of Understanding for reducing locomotive emissions with the Railway Association of Canada through to the end of 2016;
  • Releasing the 2013 Locomotive Emissions Monitoring Program Report in December 2015;
  • Continuing to develop:
    • Locomotive Emissions Regulations that will help to reduce criteria air contaminant emissions from locomotives in Canada; and
    • A Canada–United States Voluntary Action Plan to Reduce Greenhouse Gas Emissions from Locomotives with the U.S. Environmental Protection Agency in collaboration with key stakeholders.
  • Working with other government departments, industry and academia to promote new technologies with the potential to reduce emissions and improve energy efficiency. This year, project partners matched our funding to develop technologies that could have a major impact on emissions from the rail industry such as lighter materials, hybrid powertrains and more advanced electrical energy storage, and nine projects received funding;
  • Continuing to support the Clean Rail Academic Grant Program by providing federal funding to academic research programs currently developing technologies and practices that aim to reduce air emissions from the rail sector. Research projects include investigating emissions reduction with the use of:
    • Biodiesel fuel;
    • Railway electrification; and
    • Ultra-low sulphur diesel fuel;
• Completed the heavy-duty vehicles emissions model to improve our ability to provide:
  • Timely impact analyses; and
  • Evidence-based policy advice related to regulatory and complementary emissions reduction measures;
• In collaboration with the National Research Council, reviewed and tested the safety aspects of vehicle electrical energy storage systems;
• Worked with the provinces and territories to update and/or create new safety standards and/or codes for the safe use of alternative fuels for motor vehicles; and
• Worked with the U.S. National Highway Traffic Safety Administration and the United Nations World Forum for the Harmonization of Vehicle Regulations to develop and update international regulations related to:
  • Tire safety;
  • Hydrogen safety; and
  • The safety of electrical energy storage systems for electric and hybrid vehicles.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
29,417,677	29,417,677	30,427,629	16,606,208	12,811,469

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
86	64	22

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
2.1 Clean Air from Transportation
Decrease in intensity of greenhouse gas (GHG) emissions and air pollutants in the transportation sector	Transportation emission intensity (%) change in intensity as measured in tonnes per unit of activity (e.g. tonnes-km, tonnes per hour, tonnes per call, etc.)	An intensity improvement that is consistent with the plan established under the government’s horizontal approach for clean air. Note: It will only be possible to set an absolute value once the transportation sector’s share of the Government of Canada reduction targets are established and shared	From 2005 to 2013: Passenger on-road transportation, not including off-road equipment (57% of transportation GHG emissions in 2013): GHG emissions intensity decreased by 11% from 142 grams to 126 grams of carbon dioxide equivalent per passenger-km. Freight transportation (36% of transportation emissions in 2013): GHG emissions intensity increased by 11% from 84 grams to 93 grams of carbon dioxide equivalent per tonne-km.

Program 2.2: Clean Water from Transportation

Description: The Clean Water from Transportation Program protects the marine environment by reducing the pollution of water from transportation sources. This Program: regulates and monitors the release and impact of discharges from marine vessels into the marine environment; regulates ballast water; and contributes to setting domestic and international rules that govern limits to liability of marine pollution incidents. This Program also: advances the federal government’s clean water agenda in the transportation sector; and complements other federal programs designed to protect the marine environment for the health of Canadians and the environment for generations to come. This Program also represents Canada in discussions to set international standards to prevent pollution from vessels operating in Canada’s waters and addresses the threat of aquatic invasive species.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Clean Water from Transportation Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Continued to provide National Aerial Surveillance Program (NASP) activities by:
  • Monitoring the shipping lanes in Canadian waters;
  • Flying a total of 2,932 patrol hours^{Footnote 27} where our aircrews:
    • Visually observed/overflew 17,427 vessels;
    • Monitored 224,734 vessels using the Automatic Identification System;
    • Conducted an average of 5.94 vessel overflights per hour^{Footnote 28};
    • Assisted in 25 search and rescue incidents.
  • Detecting or observing 380 pollution incidents during the NASP patrols, where:
    • 50 were of a known source and the remaining 330 were from unknown sources;
    • The average spill size was estimated at 20.9 litres; and
    • Most spills were less than 10 litres; however,
    • The major incident of the MV^{Footnote 29} Marathassa in English Bay, Vancouver, British Columbia, resulted in our overflights observing an estimated quantity of 3,419 litres spilled. The data gathered were forwarded to the Incident Command Post (ICP) for review and analysis.
      Lessons learned from this incident: During an incident, a NASP aerial observer should immediately go to the ICP to better analyze the surveillance data for the responders.
• Continued to work on oil spill prevention with the Canadian Coast Guard, Environment and Climate Change Canada and Fisheries and Oceans Canada to advance the Area Response Planning pilot project, where we focussed on:
  • Developing the Area Risk Assessment methodology;
  • Gathering the necessary data required to test the methodology in the four pilot areas (southern British Columbia, the St. Lawrence Seaway, the Bay of Fundy, New Brunswick and Port Hawkesbury, Nova Scotia);
  • Sending an information package to stakeholders in the four pilot areas in March 2016 describing the project and how interested parties can become involved. Face-to-face engagement with stakeholders will occur in 2016-17;
• Created the Community Participation Funding Program, which made $2.1 million available for eligible stakeholders who wish to participate in the pilot project;
• Made progress on our proposed amendments to the Response Organization and Oil Handling Facilities Regulations. Currently, there are consultations taking place with stakeholders; and
• Worked with the Canadian Coast Guard and the Canadian Hydrographic Service to further develop the Northern Marine Transportation Corridors Initiative, which is a key component to:
  • Keep marine navigation safe, secure, clean and efficient;
  • Facilitate responsible economic development; and
  • Provide essential services to communities in Canada’s Arctic.
  We held engagement sessions during March 2016 to inform policy framework development. We also obtained information about marine infrastructure requirements in the North in support of resupply from a key resupply service provider.

We did not proceed with the Environmental Response Systems modernization initiative intended to support the increased regulatory and oversight activities, due to temporary budget adjustments. We will resume this initiative in the next fiscal year.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
31,902,400	31,902,400	33,223,348	26,686,601	5,215,799

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
94	96	(2)

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
2.2 Clean Water from Transportation
Prevention of pollution in the marine environment from vessels operating in waters under Canadian jurisdiction	Number of releases of harmful pollutants in the marine environment by vessels identified by pollution patrol and other means	17	N/A (see variance explanation below)

Explanation of Variance

Date to achieve is March 2017 as per the 2015-16 Report on Plans and Priorities.

Program 2.3: Environmental Stewardship of Transportation

Description: The Environmental Stewardship of Transportation Program fulfills Transport Canada’s responsibilities in working towards an environmentally responsible and resilient national transportation system for Canadians by ensuring compliance with the Department’s environmental obligations in relation to Acts, Regulations, Policies and Guidelines, and the department’s obligations towards Aboriginal peoples. The Program: fulfills Transport Canada’s responsibilities to implement a Departmental Sustainable Development Strategy under the Federal Sustainable Development Act; ensures that Transport Canada’s lands and facilities are managed in an environmentally responsible manner in compliance with federal legislation and policies; provides functional support for environmental assessments, including for major resource projects; manages contaminated sites; advises on Aboriginal consultation, engagement and treaty negotiations and implementation; and seeks to increase the national transportation system’s resilience to the current and anticipated future climate and extreme weather events.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Environmental Stewardship of Transportation Program identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Invested over $30 million into 73 projects as part of the Federal Contaminated Sites Action Plan/Environmental Remediation Strategy. Of note, most construction work on the multi-year Rock Bay Stage 3 remediation project, which began in May 2014, was completed in fiscal 2015-16, with:
  • All remaining contaminated sediments and soil removed from the site for off-site destruction and disposal;
  • Site restoration activities being completed, including:
    • Removal of the cofferdam; and
    • Restoration of marine habitat; and
• Contributed to Government of Canada initiatives by:
  • Supporting the Responsible Resource Development Agenda; and
  • Participating in the Government of Canada’s Aboriginal consultation activities associated with:
    • Project reviews^{Footnote 30} as coordinated by the:
      • Canadian Environmental Assessment Agency;
      • Major Projects Management Office (we were involved in 60 of 88 projects under review); and
      • Northern Projects Management Office (we were involved in 28 of 34 projects under review); and
    • Contributions to the “Whole-of-Government” approach which:
      • Helped develop interdepartmental procedures;
      • Provided project guidance; and
      • Led to project agreements to govern consultations and engagements with Canada’s Aboriginal communities.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
33,906,726	33,906,726	39,539,314	42,227,322	(8,320,596)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
106	123	(17)

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
2.3 Environmental Stewardship of Transportation
a) Compliance with Transport Canada’s obligations in relation to Acts, regulations, policies and guidelines	Percentage of Departmental commitments achieved under the Federal Sustainable Development Strategy	100%	100%
b) Compliance with Transport Canada’s obligations in relation to Acts, regulations, policies and guidelines	Number of instances where Transport Canada was not in compliance with applicable environmental legislation	0	0
c) Compliance with Transport Canada’s obligations in relation to Acts, regulations, policies and guidelines	Number of instances Transport Canada was found to have failed to meet its legal duty to consult Aboriginal groups	0	0

Strategic Outcome 3: A Safe and Secure Transportation System

A safe and secure transportation system moves people and goods across Canada, and to international destinations, without loss of life, injury or damage to property. Transport Canada supports a safe and secure transportation system by influencing the behaviour of the public and industry through policies, standards, regulations and laws. Harmonized and streamlined regulatory regimes, informed by the expertise of multiple countries and stakeholders, aid effective, safe and secure transportation practices and a sound safety and security culture. Transport Canada ensures that Canadians and the transportation industry are in compliance with the regulatory framework through its oversight program.

The following Programs support this Strategic Outcome:

Program 3.1: Aviation Safety

Description: The Aviation Safety Program, under the authority of the Aeronautics Act, develops, administers and oversees the policies, regulations and standards necessary for the safe conduct of civil aviation within Canada’s borders, including establishment of safety standards for the design and manufacture of aeronautical products in a manner harmonized with international standards. The Program: fosters the safety of the aviation system; provides oversight of the aviation sector; and enforces international conventions signed by Canada. It also provides aviation services and related training to support Transport Canada and other government department operations.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Aviation Safety Program, along with our lower level Sub-Programs and Sub-Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements and lessons learned as we:

• Continued to help update section 104 of the Canadian Aviation Regulations and explored other options to collect more aircraft certification revenues from industry, including a broader use of the Cost Recovery Program;
• Pre-published amendments for the Canadian Aviation Regulations (Aerodrome Work Consultations) in the Canada Gazette, Part I, July 11, 2015 Edition. We expect  them to appear in Canada Gazette, Part II in fall 2016;
• Developed a Ministerial order to prohibit the development of an aerodrome in Quebec;
• Held stakeholder consultations on our Responsible Aerodrome Development Strategy; and
• With regards to Unmanned Air Vehicles (known to many Canadians as drones):
  • Developed an engagement strategy on, taking advantage of the timing of the Notice of Proposed Amendment on Unmanned Air Vehicles (UAVs), which was published for consultation in May 2015 and served as a means to:
    • Increase awareness of UAVs; and
    • Consult with aviation and UAV stakeholders on the future regulatory framework for small UAVs.
    We held roundtable forums in six Canadian cities. We then began to integrate stakeholder feedback into the regulatory proposal for UAVs.
  • Established an interdepartmental committee of Government of Canada departments and agencies to identify and resolve common UAV challenges;
  • Held an Unmanned Systems Canada Regulatory Workshop and a discussion panel with the Air Transport Association of Canada;
  • Developed and published an Unmanned Aircraft System Work Plan for the Canada-U.S. Regulatory Cooperation Council, in collaboration with the U.S. Federal Aviation Administration; and
  • Launched a model aircraft and UAV education and awareness campaign. This included issuing a Civil Aviation Safety Alert to remind all persons operating unmanned aircraft about the safety impacts and consequences of interfering with manned aircraft operations, including firefighting aircraft.

Lessons learned are as follows:

• As technological development has outpaced regulation, the growth of Canada’s UAV sector has affected a broader range of stakeholders outside of the traditional aviation industry. This has required a broader range of consultation activities outside of the Canadian Aviation Regulatory Advisory Council constituency;
• As an alternative to publishing a technically-focussed document to invite input on regulatory language, the Department sought to create a concept-based notice of proposed amendment, which included regulatory options for consideration.  This approach allowed for greater consultation and engagement by stakeholders; and
• In addition to providing a safe aviation environment, we must play a leadership role to:
  • Continue to promote the vitality and economic success of Canada’s UAV industry;
  • Proactively address UAV issues; and
  • Promote aeronautics as part of the Minister’s mandate.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
173,447,956	173,447,956	197,300,810	181,487,089	(8,039,133)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
1,734	1,568	166

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
3.1 Aviation Safety
A safe civil aviation system	Number of accidents per 100,000 hours of flight. Rolling 10-year average to be compared to the target. (Target is based on the previous 10-year average.) (Improvement = decrease)	3% reduction in the rate as compared to the 10-year rolling average (10 year rolling average currently at 5.8)	5.4 (preliminary data)

Explanation of Variance

The 2006 to 2015 ten-year average aviation accident rate (preliminary data) was 5.4 accidents per 100,000 hours flown. This represents a decrease of 18.2 percent compared to the original 2000 to 2009 ten year average target of 6.6 accidents per 100,000 hours flown. This improvement was recorded even while the number of hours flown has increased compared to the 2000 to 2009 timeframe.

Program 3.2: Marine Safety

Description: The Marine Safety Program, under the authority of the Canada Shipping Act 2001, the Navigation Protection Act, the Safe Containers Convention Act, the Pilotage Act, the Coasting Trade Act and the Arctic Waters Pollution Prevention Act, develops, implements and administers policies, regulations and standards necessary for the safe conduct of marine activities in a manner harmonized with international standards.

The Program: fosters the safety of the marine transportation system; provides oversight of the marine industry, including domestic and foreign vessels (both non-pleasure craft and pleasure craft); enforces international conventions signed by Canada; protects the public right to navigate on Canadian waterways; regulates lights or markers required for safe navigation during and/or on completion of certain works; regulates the placement of private buoys as per the Private Buoy Regulations of the Canada Shipping Act, 2001; and acts as the Receiver of Wreck as per the Canada Shipping Act, 2001, Part 7.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Marine Safety Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements and lessons learned as we:

• With regard to TERMPOL (Technical Review Process of Marine Terminal Systems and Transshipment Sites):
  • Completed the TERMPOL review process on the LNG^{Footnote 31} Canada Project;
  • Received six requests to review TERMPOL studies for various projects; and
  • Pursued cost recovery strategies;
• Continued oversight activities, including:
  • Conducting over 4,000 inspections on domestic vessels;
  • Taking the following enforcement actions:
    • Warnings issued: 43;
    • Assurance of Compliance signed: 2;
    • Administrative Monetary Penalties issued to contraveners: 70; and
    • Enforcement Action Leading to Detention: 1;
• Statistically^{Footnote 32} from fiscal 2014-15 to 2015-16:
  • Increased our compliance inspection activities from 153 to 269;
  • Recorded a reduced number of accidents from 272 to 269;
  • Noted small increases in the number of:
    • Incidents from 743 to 768; and
    • Fatalities from 15 to 19;
• In partnership with the United States Coast Guard:
  • Advanced identified action items from the Operational and Regulatory work plans; and
  • Continued our cooperation and constructive dialogue on harmonizing existing and emerging issues;
• Published the proposed amendments for the Small Fishing Vessel Inspection Regulations in the Canada Gazette, Part I on February 6, 2016. We expect these regulations to be published in Canada Gazette, Part II in July 2016. They are intended to update:
  • The current safety equipment and vessel stability requirements; and
  • Introduce safe operating procedures for small fishing vessels; and
• Made some progress in developing the:
  • Vessel Construction and Equipment Regulations; and
  • Vessel Certificates Regulations; and
  We expect progress to continue at a reduced pace as we have shifted some resources to oversight efforts.

Since the Navigation Protection Act (NPA) came into force in 2014, our Program has been continuously working to review, modify and implement operational tools, procedures and guidelines. Guidance material and application forms have been developed and published on our website. The Minister’s mandate to review the NPA will be a priority over the coming year.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
57,475,536	57,475,536	64,208,442	66,315,354	(8,839,818)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
567	608	(41)

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
3.2 Marine Safety
a) A safe marine transportation system	Number of Canadian commercial vessel (non-pleasure craft) occurrences per 1,000 vessels in the Canadian registry (five-year moving average) (Improvement = decrease)	2% reduction based on established two-year average of 32.4	30.68
b) A safe marine transportation system	Number of pleasure craft fatalities per licensed pleasure craft (five-year average) (Improvement = decrease)	1 % decrease based on established five-year average	5.2% decrease (110 in 2015-16 versus 116 in 2014-15)

Program 3.3: Rail Safety

Description: The Rail Safety Program, under the authority of the Railway Safety Act, develops, administers and oversees the policies and regulatory instruments necessary for the safety of railway operations in a manner consistent with North American and International safety standards/levels. The Program fosters safety within the rail transportation system and provides oversight of the rail industry. It also promotes public safety at crossings, identifies the risks of trespassing and provides funds to improve safety at grade crossings.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Rail Safety Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements and lessons learned as we:

• Conducted industry training plans, following a safety advisory issued by the Transportation Safety Board (TSB). This allowed us to:
  • Better prioritize where to focus our rail oversight activities in 2016-17; and
  • Review Rail Safety’s training and qualification requirements for railway employees;
• Undertook a number of Safety Management Systems (SMS) oversight activities to reinforce railway safety, including:
  • The Initial assessments of each railway; and
  • Focussed inspections to ensure railways are prepared for the new SMS regulatory regime, under which we will begin conducting audits in fiscal 2016-17;
• Completed:
  • Over 37,000 oversight activities (inspections and SMS), to ensure that industry is compliant with rules and regulations; and
  • Revisions to the Canadian Rail Operating Rules in response to the TSB recommendation related to requirements to have additional physical defences for train securements, including for:
    • Handbrake applications;
    • Testing requirements; and
    • Additional physical defences; and
• Strengthened rail safety laws by making amendments to the Railway Safety Act and acted upon recommendations contained within the 2013 Office of the Auditor General’s report on Rail Safety. For example, we introduced:
  • Administrative powers to impose monetary penalties for infractions;
  • Improved grade crossing regulations; and
  • New requirements for railways to:
    • Obtain operating certificates; and
    • Submit key safety performance data to us so that we can:
      • Improve our ability to identify risks;
      • Better allocate resources to high risk areas; and
      • Ensure better compliance with the Transportation Information Regulations.

Lessons Learned

As a result of an internal audit, we are reviewing our risk-based business planning processes in order to allocate inspection resources in a more efficient and effective manner.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
35,707,671	35,707,671	112,585,225	110,551,604	(74,843,933)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
209	212	(3)

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
3.3 Rail Safety
a) A safe rail transportation system	Rate of rail accidents (per million train miles) that occur on railways under federal jurisdiction (includes main-track collisions, derailments, non-main track derailments and collisions, fires/explosions and others) (five-year average) (Improvement = decrease)	5% reduction in the rate as compared to average of previous 5 years	15.14 in 2015 compared with the 2010-2014 average of 13.09
b) A safe rail transportation system	Rate of rail incidents (per million train miles) that occur on railways under federal jurisdiction (includes main-track switch in abnormal position, movement exceeds limits of authority, dangerous goods leak, crew member incapacitated, runaway rolling stock, signal less restrictive than required and unprotected overlap of authorities) (five-year average) (Improvement = decrease)	5% reduction in the rate as compared to average of previous 5 years	2.72 in 2015 versus the 2010-2014 average of 2.61

Explanation of Variance

1. a) The number of accidents per million train miles is roughly in line with previous years, but for 2015-16 the rate did not meet the performance target of a 5% reduction in the rate as compared to the average of the five previous years. The reason for this is that the TSB changed its reporting requirements in 2014, widening the definition of an accident. As a result, the type of events that are considered accidents has increased for the 2015 calendar year.
2. b) The rate did not meet its performance target of a 5 % reduction in 2015-16 as compared to the average of the five previous years; the variance mainly relates to the number of incidents of movements exceeding the limit of authority in a context of fewer train miles travelled. The actual number of incidents in 2015 decreased by two, from 218 to 216, but the calculation of the rate of rail incidents has increased due to the smaller number of miles travelled.

Program 3.4: Motor Vehicle Safety

Description: The Motor Vehicle Safety Program, under the authority of the Motor Vehicle Safety Act and the Motor Vehicle Transport Act, develops, administers and oversees the policies, regulations and standards necessary for the safety of motor vehicles and commercial vehicle operations in a manner that is harmonized with international and national standards. The Program contributes to reduced road deaths and injuries and provides safety oversight of the motor vehicle industry.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Motor Vehicle Safety Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements and lessons learned as we:

• Made progress in the areas of crash avoidance research and crashworthiness research, as part of the Action Plan for the Canada–U.S. Regulatory Cooperation Council Joint Forward Plan; and
• Continued our review of the Motor Vehicle Safety Act, and developed proposed legislative changes, aimed to help guide future regulatory and enforcement efforts.

We delayed our preclearance program portion of the Canada Border Services Agency (CBSA) Single Window Initiative Program because of CBSA capacity issues. We implemented an interim solution with CBSA, with the permanent solution to be implemented by late fall 2016.

In addition, with respect to the Road Safety Transfer Payment Program, while the funding level has not increased since 1987, TC has been successful in negotiating contribution agreements with the provinces and territories, allowing for continued national consistency.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
22,723,248	22,723,248	26,544,112	23,671,194	(947,946)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
109	81	28

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
3.4 Motor Vehicle Safety
a) Safe motor vehicles based on improved crash avoidance and crash survivability	Collisions per 10,000 motor vehicles registered (Improvement = decrease)	2% reduction in the rate for 2014 as compared to average of previous 5 years	16.1% reduction in 2014 as compared to 5-year average (2009-2013); 2014 is the most recent data available
b) Safe motor vehicles based on improved crash avoidance and crash survivability	Fatalities per 10,000 police-reported collisions occurring on public roads (Improvement = decrease)	1% reduction in the rate for 2014 as compared to average of previous 5 years	2.3% reduction in 2014 as compared to 5-year average (2009-2013); 2014 is the most recent data available
c) Safe motor vehicles based on improved crash avoidance and crash survivability.	Serious injuries per 10,000 police-reported collisions occurring on public roads (Improvement = decrease)	1% reduction in the rate for 2014 as compared to average of previous 5 years	4.4% reduction in 2014 as compared to 5-year average (2009-2013); 2014 is the most recent data available

Explanation of Variance

1. a) While the number of collisions were down in 2014 as compared with previous years, we may attribute the better than expected results in part, to inconsistency in jurisdictions’ reporting of the collision data (more specifically, with respect to property damage only collisions).
2. b) While there has been an on-going downward trend in fatalities, the last two years (2013 and 2014) were notably larger year-over-year reductions as compared with other years in the comparison period (i.e. 2010 and 2012), which lead to better than expected results.
3. c) While there has been an on-going downward trend in serious injuries, 2014 in particular experienced a notably larger year-over-year decline as compared with other years in the five year comparison period, which lead to better than expected results.

Program 3.5: Transportation of Dangerous Goods

Description: The Transportation of Dangerous Goods Program, under the authority of the Transportation of Dangerous Goods Act, 1992, develops, administers and oversees the policies, regulations and standards necessary for the safe transportation of dangerous goods by all modes of transport in Canada in a manner harmonized with the international standards, and provides expertise in emergency response in the event of release of dangerous goods. This Program also works to prepare for and coordinate the response to safety and security threats and incidents that may impact the national transportation system or the Department with regard to chemical, radiological, biological, nuclear or explosive substances. The Program: fosters safety in the transport of dangerous goods; provides oversight of the transportation industry; enforces international conventions signed by Canada; and responds to emergency situations that affect the safety of Canadians.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Transportation of Dangerous Goods Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements and lessons learned as we:

• Published the 2016 Emergency Response Guidebook (ERG);
• Implemented a revised/new Emergency Response Assistance Plan (ERAP) Assessment Framework, which included:
  • Adopting a Program Awareness Strategy;
  • Referencing ERAP in the 2016 ERG; and
  • Making ERAPs a requirement when transporting flammable liquids by rail;
• Met the deadline for every management action related to the Emergency Response Task Force recommendations on improving public safety and we expect to publish the final report in June 2016 with a total of 40 recommendations;
• Published two new technical standards in April 2016 and began an accelerated development of two other standards to incorporate recent changes to portable tanks and tank car specifications;
• Made the decision to leave penalty amounts provided for in the Contravention Regulations as-is. We instead reviewed and made changes to the terminology;
• Adopted a new two-year cycle (International Harmonization Cycle) to bring relevant provisions of the Transportation of Dangerous Goods Regulations up to date with international standards;
• Developed reports to assess the emerging risks of transporting liquefied natural gas and ethanol by rail;
• As part of the 2015-16 National Oversight Plan:
  • Developed the plan to be risk-based, ensuring increased numbers of inspections at high-risk sites; and
  • Identified several types of sites as high risk that warranted increased inspections, including:
    • Transload^{Footnote 33} and crude oil sites;
    • Lithium battery sites; and
    • New sites^{Footnote 34};
• Completed a Crude Oil Sampling and Analysis Research project in August 2015, which consisted of:
  • Assessing crude oil properties;
  • Assessing the behaviour and hazards of crude oil; and
  • Sampling, testing and analyzing samples of crude transported by rail or road in Canada;
• We presented an update on these results at the United Nations Sub-Committee on the Transportation of Dangerous Goods in December 2015, and published the findings on Transport Canada’s website in December 2015.
• Completed risk assessments on crude oil transload facilities in winter 2016 to determine if this type of site needs more inspections. The outcome was to extend the project for two more years;
• Held a targeted transload crude oil facilities inspection campaign in the Prairie and Northern Region from October 2015 to December 2015 to sample and test crude oil and to verify the compliance, an activity undertaken through a Memorandum of Understanding (MoU) with the Alberta Innovates Technology Futures;
• Put an MoU in place with the National Research Council for a multi-year lithium battery research program to help our Program assess hazards, mitigate risks and study the impact on transportation safety;
• Improved enforcement and inspection activities by training and certifying new regional inspectors and engineers;
• Completed 44 means of containment facility inspections, two more than planned;
• With regard to the implementation of a national Quality Assurance (QA) Plan:
  • Received approval on June 22, 2015 to proceed with a QA Plan;
  • Are updating the QA plan with a more detailed schedule of quality assurance review for inspections procedures being conducted nationally; and
  • Ensured that regional managers responsible for inspection reporting conduct quality controls on a quarterly basis ;
• With regard to the Canadian Transport Emergency Centre (CANUTEC):
  • Increased our Emergency Response Advisor staffing levels to support the program and improve service delivery;
  • Gained access to real-time information pertaining to the transport of dangerous goods by rail via the AskRail application safety tool, which receives automatic e-mail notifications from Class 1 Railroads^{Footnote 35} when incidents involving dangerous goods by rail occur;
  • Introduced an easy-to-learn/remember toll-free number (1-888-CANUTEC) as our emergency hotline;
  • Performed a live testing exercise of a telecommunications failure to ensure emergency advisors were ready should such an event occur; and
  • Improved the 2016 edition of the Emergency Response Guidebook (ERG) by:
    • Updating evacuation distances in its green pages;
    • Adding an easy-to-understand flowchart on how to use it; and
    • Adding information about ERAPs;
• Began developing Geographic Information System flow maps of flammable liquids along rail transportation corridors to identify and quantify risks; and
• With regard to Class 3 Flammable Liquids:
  • Completed a risk assessment for all liquids to determine if any required shippers to develop an Emergency Response Assistance Plan (ERAP); and
  • Examined over 360 primary liquids, of which:
    • 43 were brought forward for greater consideration; and
    • Styrene was the subject of a formal risk assessment. The assessment determined that no ERAP would be required for this product at this time.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
15,322,623	15,322,623	18,146,685	26,620,570	(11,297,947)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
147	228	(81)

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
3.5 Transportation of Dangerous Goods
a) Public safety during the transportation of dangerous goods	Number of reportable releases of dangerous goods per trillion dollars of Canadian gross domestic product (five-year average) (Improvement = decrease)	193.5	217.3
b) Public safety during the transportation of dangerous goods	Number of reportable releases of dangerous goods, which caused injuries or deaths per trillion dollars of Canadian gross domestic product (five-year average) (Improvement = decrease)	3.3	4.1

Explanation of Variance

1. a) The five-year average for the number of reportable releases of dangerous goods remains above target due to a higher number of releases in the first three years of the average period.
2. b) The five-year average for the number of reportable releases of dangerous goods, which caused injuries and deaths remains above target; however, the number for 2015-16 was below target at 2.0.

Program 3.6: Aviation Security

Description: The Aviation Security Program develops, administers and oversees the policies, regulations and standards to support the secure conduct of aviation activities in a manner harmonized with international standards. The Program is risked-based and fosters security within the aviation transportation system and provides security oversight of the aviation industry while ensuring that Canada complies with international standards.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Aviation Security Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Developed new Aviation Security National Standard Operating Procedures (NSOP) in the fall of 2015 following amendments to the Canadian Aviation Security Regulations, 2012 (CASR 2012). The new NSOPs focussed on the process for secure supply chain applicants who must demonstrate compliance to the CASR 2012 before being approved into the Air Cargo Security (ACS) Program;
• Contributed to improving the Department’s information management systems by developing and implementing the Secure Supply Chain Information Management System, which:
  • Supports the automation of the ACS Program application process;
  • Integrates stakeholder-volunteered information with Transport Canada and Canada Border Services Agency assessments; and
  • Provides a holistic and risk-based view of an applicant to or participant in the ACS Program;
• Began deploying, as part of the Canada-U.S Beyond the Border Action Plan, Transportation Security Administration (TSA)-certified explosives detection system (EDS) technology at Canada’s eight customs preclearance airports. As the EDS technology is implemented, the U.S. has agreed to recognize Canada’s passenger baggage screening processes as equivalent to its own. Since February 2012, six of the eight preclearance airports have deployed TSA-certified technology and TSA has conducted follow-up airport site visits. As of the end of the 2015-16 fiscal year, the U.S. had lifted the re-screening requirement for five of these airports;
• Undertook the following under the Canada-U.S. Cooperation in Science and Technology for Critical Infrastructure Protection and Border Security Agreement:
  • A continued an ongoing exchange of information with the TSA on security technologies;
  • Attended the Trilateral meeting between TSA, Transport Canada (TC) and the Canadian Air Transport Security Authority (CATSA) on March 23-24, 2016;
• Further developed the X-ray/Neutron Transmission Scanner. The project concluded in March 2016, with results indicating improved capability to detect air cargo explosives and other contraband;
• Provided technological expertise and support from a Canadian perspective, including at:
  • Quadrilateral (QUAD): A five-to-ten-year vision for technology harmonization was drafted with QUAD Partners^{Footnote 36};
  • Australia One-Stop Security: We analyzed and compared Australia and Canadian Hold Baggage Screening systems;
  • The European Civil Aviation Conference Technical Task Force, where we attended a meeting to discuss new and emerging threats and exchange information with other states about new technologies and product trials;
  • The International Civil Aviation Organization’s (ICAO) Working Group on Innovation in Aviation Security, where we exchanged information with member nations about:
    • Industry trials of next generation screening improvements; and
    • Ways to encourage and increase information sharing between ICAO member nations and industry;
• Conducted many Air Cargo Security outreach activities (e.g. information sessions, webinars and electronic bulletins) ahead of regulatory changes that will come into effect in fall 2016, to ensure that:
  • Program participants and stakeholders could make informed choices about where they should have their cargo screened and made secure;
  • How to comply with the new regulatory requirements; and
  • Provide information about the application process for the Air Cargo Security Program;
• Strengthened aviation security by implementing and integrating processes and procedures that support our oversight regime via the Centre for Enforcement Expertise (CEE) and the Directive on Safety and Security Expertise by leading the following initiatives:
  • Updating a number of enforcement tools, including standardized enforcement letters for inspectors;
  • Coordinating Multimodal Integrated Technical Training for our Aviation Security inspectors and officers with enforcement roles, who completed:
    • Mandatory online training for Multimodal Enforcement Orientation; and
    • In-class training for Aviation Security Inspection and Enforcement; and
  • In consultation with the CEE, Program began:
    • Completing revisions of the National Standard Operating Procedures Manual on Enforcement; and
    • Revising our modal communication protocol for enforcement-related issues; and
• Started to align our oversight program with the Directive on Safety and Security Oversight, which included conducting an environmental scan of the National Oversight Program.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
29,791,738	29,791,738	31,592,193	29,041,124	750,614

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
289	269	20

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
3.6 Aviation Security
Canada is aligned with international aviation security standards	Percentage of aviation security regulations aligned with International Civil Aviation Organization (ICAO) standards (Improvement = increase)	100%	100%

Program 3.7: Marine Security

Description: The Marine Security Program, under the authority of the Marine Transportation Security Act, develops, administers and oversees the policies, regulations and standards necessary for the secure conduct of marine activities in a manner consistent with international standards. The Program promotes security within the marine transportation system, provides oversight of the regulated marine transportation industry and enforces international conventions signed by Canada. The Program coordinates marine security policy and regulatory development across the Government of Canada through its leadership of the interdepartmental Marine Security Working Group and associated activities.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Marine Security Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Completed a new security measure for Tall Ships tailored for this type of vessel. We began developing guidance material for implementing this security measure to ensure the program is fully operational in time for the 2017 sailing season, when more events than usual are planned to celebrate Canada's sesquicentennial; and
• Conducted a total of:
  • 653 inspections (258 mandatory and 395 risk-based);
  • 166 security assessments and reviews; and
  • 226 security plan reviews for regulated entities.

  These totals represent a 6% decrease in activities from the previous year, which is due to:

  • Reducing risk-based inspections of Canadian regulated entities in favour of internationally-mandated inspections; and
  • Reallocating budget amounts within the Department, which meant that we:
    • Prioritized inspections that were mandatory for vessels to keep trading internationally over non-mandatory risk-based inspections; and
    • Conducted only 395 of 482 planned risk-based inspections.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
12,872,129	12,872,129	13,123,766	12,260,662	611,467

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
117	111	6

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
3.7 Marine Security
Industry has confidence in Canadian marine transportation security	Percentage of industry indicating confidence in the Canadian marine security transportation system (Improvement = increase)	80%	80%

Program 3.8: Surface and Intermodal Security

Description: The Surface and Intermodal Security Program, guided by the Railway Safety Act, the International Bridges and Tunnels Act, and the Transportation of Dangerous Goods Act, 1992, develops, administers and oversees the policies, regulations/voluntary frameworks, standards and guidance material necessary for the secure conduct of surface and intermodal activities. The Program fosters the security of the surface and intermodal transportation system across Canada.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Surface and Intermodal Security Program identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Created a working group with inspectors from each region to ensure a consistent application of oversight procedures. The working group developed and conducted a revamped risk-based analysis of more than 500 rail sites across Canada and it:
  • Adheres to multimodal requirements for a Safe and Secure Transportation System; and
  • Improves the efficiency of our planning processes by allocating inspection resources where they can make the greatest impact; and
• Held two meetings each respectively with:
  • The Railway Association of Canada stakeholders in May and November of 2015; and
  • International Bridges and Tunnels (IBT) stakeholders in May and November 2015 to exchange information and to further develop the IBT program.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
4,703,731	4,703,731	4,835,770	5,049,956	(346,225)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
41	43	(2)

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
3.8 Surface and Intermodal Security
Signatories meet the terms and conditions of the voluntary frameworks	Percentage of signatories that received a non-compliance letter being issued (Improvement = decrease)	10%	0%

Program 3.9: Multimodal Safety and Security

Description: The Multimodal Safety and Security Program contributes to policies and standards that enhance safety and/or security in more than one transportation mode (e.g., through departmental enforcement services, integrated management systems and intelligence assessments). It also provides a technical training regime for inspectors and technical experts, ensuring the required competencies are acquired and maintained to meet or surpass nationally consistent standards. Lastly, this Program works to prepare for and coordinate the response to emerging safety and security threats and situations that may impact the national transportation system or the Department.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, the Multimodal Safety and Security Program, along with our lower level Sub-Programs, identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Delivered high quality standardized technical training that increased both modal and multimodal training throughput from 2,018 participants in 2014-15 to 5,530 in 2015-16;
• Continued to strengthen our Screening Enhancement of Security Clearance production and processes and remained on target for the new requirements and volumes of clearances required as part of the Beyond the Border Initiative;
• For Security Clearances, implemented Phase 1 of the Perpetual Vetting Initiative. Perpetual vetting is an innovative process that continually checks the Canadian Police Information Centre database and notifies, in real-time, when police lay charges against someone who holds a security clearance. As a result:
  • Our Emergency Preparedness and Situation Centres successfully met their priority commitments under the Emergency Management Act in the areas of preparedness and response. They successfully led the:
    • Operations for Transport Canada in support of Operation Syrian Refugees;
    • Monitoring, reporting and responding to more than 5,000 transportation events; and
    • Delivery of planning and preparation exercises for:
      • The Toronto 2015 Pan Am and Parapan Am Games; and
      • Exercise Pacific Quake, a key Federal exercise priority for 2016; and

In addition, three of our Program’s 2015-16 Report on Plans and Priorities Planning Highlights were reported in Section I’s “Organizational Priorities” and “Progress Toward the Priority”, namely the priorities related to 2a) through 2e) of “Refine and strengthen Transport Canada’s safety and security oversight” for:

• Safety and Security Management Systems;
• Enforcement; and
• Training.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
10,890,897	10,890,897	13,166,104	19,771,236	(8,880,339)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
118	177	(59)

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.

Performance Results – For Program

Expected Results	Performance Indicators	Targets	Actual Results
3.9 Multimodal Safety and Security
Transportation safety and security issues are managed in a consistent manner across all modes	Percentage of successful completion of multimodal activities in support of departmental priorities (Improvement = increase)	80%	80%

Program 4: Internal Services^{Footnote 37}

Description: Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. Internal services include only those activities and resources that apply across an organization, and not those provided to a specific program. The groups of activities are: Management and Oversight^{Footnote 38} Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; and Acquisition Services.

Performance Analysis and Lessons Learned

In Transport Canada’s 2015-16 Report on Plans and Priorities, Internal Services identified a number of key Planning Highlights. During the fiscal 2015-16 year, our Program recorded the following achievements as we:

• Supported the Government of Canada’s Destination 2020 by partnering with the Community of Federal Regulators and 19 other regulatory departments to identify common business requirements for mobile technology for inspectors and officers who work in the field. As a pilot project, TC equipped select inspectors with tablets to perform their field work through one-time inspection data entry and real time data management to help create quality data for timely decision making;
• Organized a Networking Fair to allow participants to expand their professional networks, meet new colleagues and learn about different functions in each other’s group;
• Enhanced our social media platform tool, namely the “myTC (Intranet) Talent Network”, to help:
  • Employees with finding a coach, a mentor or a colleague with similar interests; and
  • Managers to find employees with the skills they need for at-level assignments or projects.
• Provided the Audit Committee, the Deputy Minister and senior management, independent and objective assurance and advice, on all important aspects of risk management, management practices and controls. Internal audits included the audit of:
  • Quality Management Systems for each Safety and Security Oversight Program;
  • Internal Controls for Financial Reporting (ICFR), which gave the Deputy Minister assurance that the ongoing ICFR monitoring process is sound and can be relied upon; and
  • The follow–up Audit of Civil Aviation, which provided assurance that the recommendations from the 2013 Office of the Auditor General’s report on Rail Safety audits in 2008 and 2012 and the internal audit review in 2011, had been fully implemented;
• Provided the Evaluation Committee, Deputy Minister and senior management with an:
  • Independent assessment of each Program’s continuing relevance and performance; and
  • Information to support results-based management and accountability;
• Ensured strong audit and evaluation functions by:
  • Implementing approved annual risk-based audit and evaluation plans;
  • Reporting audit and evaluation findings to the Audit Committee and the Evaluation Committee;
  • Proactively monitoring and assessing risk; and
  • Reporting on outstanding external and internal audit and evaluation recommendations;
• Developed a communications strategy, further to the tabling and public release of the Canada Transportation Act Review Report in Parliament on February 25, 2016 and signalled the forthcoming engagement with stakeholders and Canadians in 2016 to shape a long-term agenda for transportation in Canada;
• Improved the “My TC Talent Network” by improving its search function; it is a tool managers can use when seeking to fill positions of a temporary nature;
• Completed preparations at the end of the fiscal year for the Department’s migration to the new Phoenix pay system, which went live at Transport Canada in early spring 2016; and
• Contributed to government-wide transformation initiatives in support of adopting an Enterprise Resource Planning Strategy. The Treasury Board Secretariat has not yet set firm timelines for Transport Canada’s migration to SAP.

2015-16 Budgetary Financial Resources (in dollars) – For Program

Main Estimates	Planned Spending	Total Authorities Available for Use	Actual Spending (authorities used)	Difference (planned minus actual)
156,311,765	156,311,765	160,778,067	163,632,863	(7,321,098)

2015-16 Human Resources (Full–time Equivalents (FTEs)) – For Program

Planned	Actual	Difference (planned minus actual)
1,179	1,226	(47)

Please refer to Section II: Expenditure Overview for budgetary financial and human resources variance explanations.