Vol. 148, No. 27 — July 5, 2014

Regulations Amending the Transportation Information Regulations

Statutory authority

Canada Transportation Act

Sponsoring department

Department of Transport

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Currently, rail safety data is primarily limited to “lagging indicators,” or safety data collected after accidents, injuries and incidents have taken place. While Transport Canada uses these lagging indicators to set internal priorities, target inspections and monitor railway company compliance, the absence of information about “leading indicators” of railway safety and the limited analysis of the data make it difficult to gain an accurate or comprehensive view of the state of railway safety in Canada. Leading indicators are measurable factors that can be used proactively to identify areas of risk and introduce mitigation measures before accidents occur.

Background

The Railway Safety Act Review Panel Report “Stronger Ties” recommended that Transport Canada collect and collate safety-related information on a proactive basis in order to prevent incidents and accidents before they occur, as opposed to the current reactive basis, which tends to analyze deficiencies only after an accident has occurred. In 2008, the Standing Committee on Transport, Infrastructure and Communities (SCOTIC) also studied rail safety and endorsed the findings and recommendations of the Railway Safety Act Review Panel.

Subsequently, in 2008, the Information Collection, Analysis and Dissemination (ICAD) Working Group, which included members from government and industry, was established to respond to these recommendations. The Rail Safety Integrated Gateway (RSIG) data system was subsequently developed to address the data reporting recommendations of the Review Report. Today, RSIG is a fully automated system designed to collect information for rail safety analysis purposes.

In 2013, the Office of the Auditor General of Canada tabled an audit of Transport Canada’s Rail Safety Program in the House of Commons that recommended that Transport Canada complete the implementation of the recommendations of the Railway Safety Act Review Panel and relevant recommendations of SCOTIC by integrating changes into the regulatory framework, including identifying and collecting railway safety risk indicators in order to inform risk-based planning.

Objectives

The proposed Regulations Amending the Transportation Information Regulations (proposed amendments) would


In summary, the proposed amendments would be expected to improve rail safety overall and the safety of the Canadian public through better risk-based planning and performance measurement, more focused audits and inspections, targeted programs for specific safety issues, and opportunities for increased stakeholder engagement before incidents occur.

Description

The proposed amendments would respond to Recommendation 31 of the Railway Safety Act Review Panel Report. (see footnote 1)

The proposed amendments would

The ICAD Working Group identified 15 leading indicators to be gathered under the proposed amendments. These leading indicators are grouped into the following three distinct categories in accordance with the functional organization of the Transport Canada Rail Safety Directorate:

Operations

Information relevant to day-to-day railway staffing and training activities, including

1. Summary of personnel proficiency tests and results.

Equipment

Information relevant to the condition and maintenance of locomotives and rolling stock, including

  1. Number of locomotives set off en route for mechanical reasons;
  2. Number of cars set off en route for mechanical reasons;
  3. Number of train pull aparts caused by broken knuckle or broken drawbar; and
  4. Number of broken or cracked wheels found on a train in a yard or in a repair facility.
Engineering

Information relevant to fixed railway infrastructure, including bridges, track, culverts, signalling and grade crossings, in particular

  1. Deviations from the track geometry standards set out in the Rules Respecting Track Safety;
  2. Deviations from the defective rail standards set out in the Rules Respecting Track Safety detected using rail flaw testing activities;
  3. Number of in-service rail failures;
  4. Number of in-service joint pull aparts;
  5. Total tonnage per segment of track;
  6. Information related to any malfunction of an automated warning system (AWS) for which a trouble ticket was issued;
  7. Information related to any malfunction of a wayside inspection system (WIS) for which a trouble ticket was issued;
  8. Information related to any malfunction of a wayside signal system (WSS) for which a trouble ticket was issued;
  9. Number of culverts requiring continued monitoring at the end of the reporting period; and
  10. Number of bridges with temporary slow orders at the end of the reporting period.

The ICAD Working Group further identified data elements for each of the 15 leading indicators to be gathered under the proposed amendments, which have been added to an existing document titled Compendium of Survey Data Record Layouts (TP 14930) that is incorporated by reference into the Transportation Information Regulations. As a result of updating TP 14930 to add the data elements for each of the 15 leading indicators, the publication date on TP 14930 would be updated to April 1, 2015, and this date change would be made throughout the Transportation Information Regulations. The complete list of leading indicators and their corresponding data elements can be found at the following Web site: www.tc.gc.ca/eng/railsafety/compendium-survey-964.html.

The proposed amendments would require class I and class II rail carriers to collect data elements related to all 15 leading indicators annually for each 12-month period from November 1 to October 31 and then submit the data elements electronically to Transport Canada by January 15 of the year following the last day of the reporting period.

A class I rail carrier is defined in the Transportation Information Regulations (the Regulations) as a railway company that realized gross revenues of at least $250,000,000 for the provision of rail services in each of the two calendar years before the year in which information is provided pursuant to Part II of the Regulations. A class II rail carrier is defined in the Regulations as a railway company that realized gross revenues of less than $250,000,000 for the provision of rail services in each of the two calendar years before the year in which information is provided pursuant to Part II of the Regulations.

Consultation

Industry has been aware of this regulatory initiative since 2008, when the development of regulations to report data and performance measures was recommended during the Railway Safety Act Review. The Information Collection, Analysis and Dissemination (ICAD) Working Group, composed of industry and government representatives, was subsequently established to identify 15 leading indicators that addressed the concerns of the Railway Safety Act Review Panel.

With regard to the proposed amendments, the railway industry representatives in the ICAD Working Group indicated that industry is willing to cooperate in the collection and submission of the requisite data, providing it can be assured that the data will remain confidential. The Canada Transportation Act (CTA), which contains provisions governing the security and accessibility of information obtained under its jurisdiction, would be the enabling authority for the collection of the leading indicators under the proposed amendments. The CTA is already the enabling authority for the collection of a wide variety of information and data encompassing all transportation modes, including railways. Industry has long been used to regulations made under the CTA, and trusts the protection that it provides for sensitive data.

In January 2014, the ICAD Working Group revalidated the list of leading indicators. In February 2014, a survey was sent to members of the Railway Association of Canada (RAC) to get their feedback regarding the information they were currently collecting in relation to the proposed 15 leading indicators. A total of eight completed surveys were received and no significant concerns were raised. In fact, the survey confirmed that the majority of affected stakeholders were already collecting this information.

Additional consultations with all federal railway companies and the Advisory Council on Railway Safety (ACRS) Working Group on Regulatory Development, with representation from industry, unions and the provinces, were held in March 2014. Finally, a teleconference with the ACRS Working Group on Regulatory Development was held on April 1, 2014, to discuss the proposed amendments and the costing assumptions. Issues identified during the teleconference included terminology issues, questions about the volume and types of data requested, concerns that the costing assumptions were too low, and concerns about the quarterly submission of operations data. Stakeholder comments were taken into account in the development and drafting of the proposed amendments. Terminology issues were addressed, the volume and types of data requested were reduced, the costing assumptions were increased, and the frequency of the submission of operations data was changed to an annual basis in response to stakeholder concerns.

“One-for-One” Rule

The “One-for-One” Rule applies to the proposed amendments, with an annualized “IN” value of $148,717.

The proposed amendments would require 28 federal railway companies to collect, extract, validate and submit information electronically on 15 leading indicators of railway safety to Transport Canada.

The total administrative burden to companies is estimated to have a present value of $1,279,586 over a 10-year period, which corresponds to an annualized value of $148,717. The administrative costs stem from the following assumptions:

The upfront costs of development of the data delivery methods and data conversion program and the ongoing extraction costs are higher for the large-sized railway companies compared to the medium- and small-sized railway companies because the larger companies will require conversion of existing programs and ongoing extraction for all 15 leading indicators. On the other hand, the medium- and small-sized railway companies will require conversion and extraction for some of the leading indicators, but they will likely use the workbook provided by Transport Canada for the other leading indicators. The upfront costs associated with developing the data delivery methods and data conversion program and the ongoing extraction costs are lower for the small-sized railway companies, compared to medium-sized railway companies, because not all leading indicators are applicable to all small-sized railway companies and also because they are more likely to use the workbook provided by Transport Canada.

The costs of validation are higher for the large-sized railway companies because they will have a greater volume of data to review for accuracy and completeness. The costs of validation are lower for the medium- and small-sized railway companies because of the lower volumes of data collected by those companies.

Initial costing assumptions were discussed at a teleconference with the ACRS Working Group on Regulatory Development on April 1, 2014, and subsequently updated in response to written submissions from members of the working group, including CN, CP, VIA Rail and the Railway Association of Canada.

Issues with the costing assumptions included concerns about the employee categories, the number of hours estimated for the initial development of the electronic data delivery methods and data conversion program, and the number of hours estimated for the annual extraction, validation and submission of data on each of the 15 leading indicators. Stakeholder comments were taken into account and the costing estimates were increased in response to industry feedback that broke down the number of hours per leading indicator for each type of activity, including data conversion, extraction, validation and submission. The employee categories were changed and the number of hours for the initial development work and the ongoing extraction, validation and submission of data were increased to reflect industry input.

Small business lens

The small business lens does not apply to this proposal as the cost is estimated to be below $1 million annually. However, the proposed amendments are designed to ensure minimal administrative burden on railway companies and to ensure that a disproportionate burden will not fall on small businesses. Of the 28 companies that would be impacted by the proposed amendments, Transport Canada estimates that 5 are small businesses.

Guidance materials and assistance from Transport Canada would be provided to lower the implementation burden on all federal railway companies. For example, as an alternative to developing data delivery methods and a data conversion program for all 15 leading indicators, Transport Canada will provide a preformatted workbook (likely in Excel) for medium- and small-sized railway companies to use to enter their data for some or all 15 leading indicators directly and then submit it through the secure Web portal. The transfer of data to an electronic format would benefit smaller companies that are currently collecting data in a paper format.

Rationale

Given the limitations in the current sources of railway safety-related information, it is difficult to determine the true state of railway safety in Canada. The proposed amendments would address these limitations by providing Transport Canada with regular and ongoing access to “leading indicators” of railway safety in order to better inform risk-based planning and to allow for more meaningful performance measurement.

The proposed amendments are proportionate to the degree and type of risk presented by this issue. The proposed amendments will not only meet the objective of requiring industry to report railway safety-related data to inform Transport Canada’s risk-based planning process, but they will also support improved compliance and enforcement efforts by optimizing the allocation of inspection and audit resources.

The proposed amendments would apply to both class I and class II rail carriers, which currently comprise 28 federal railway companies. The proposed amendments will not place undue burden on federal railway companies. Since federal railway companies are already collecting approximately 92% of the total volume of data that would be required to be collected, the compliance costs to businesses are expected to be negligible. Furthermore, in cases where data is not already being collected by a railway company, it is because this data is not relevant to their operations or because there are zero or negligible occurrences for that leading indicator. There are no anticipated undue impacts on other areas or sectors.

The proposed amendments will require railway companies to provide railway safety-related related data to each of the 15 leading indicators in a prescribed electronic format. While approximately 92% of the total volume of data is currently being collected, this information is not necessarily being collected in the format that will be required by the proposed amendments. For example, different railway companies may use differing names for data fields and will require some conversion in order to provide data using the prescribed wording. Furthermore, in some cases, data is not currently being collected using electronic means, but instead is being collected using a paper format. Railway companies will be required to convert their existing systems in order to collect and provide the information to Transport Canada in accordance with the structured format prescribed in the proposed amendments.

The present value of the administrative costs of the proposed amendments to each large-sized railway company is expected to be $75,222 over a 10-year period, which is equivalent to an annualized value of $8,742 per company.

The present value of the administrative costs of the proposed amendments to each medium-sized railway company is expected to be $45,593 over a 10-year period, which is equivalent to an annualized value of $5,299 per company.

The present value of the administrative costs of the proposed amendments to each small-sized railway company is expected to be $26,172 over a 10-year period, which is equivalent to an annualized value of $3,042 per company.

The present value of the administrative costs of the proposed amendments to all businesses is expected to be $1,279,586 over a 10-year period, which is equivalent to an annualized value of $148,717.

The Railway Safety Integrated Gateway (RSIG) is designed to deal with the anticipated new data stream related to the proposed amendments. RSIG is a secure internal system that Transport Canada analysts will use to analyze and store data received from industry. Industry will submit data using a secure electronic portal and the data will be transferred from the portal to RSIG for analysis and storage. Existing data streams continue to be phased into RSIG and the system will be ready to receive the new sources of data related to the proposed amendments to the Transportation Information Regulations in early 2015. Transport Canada has estimated that the development of RSIG to accommodate the new data stream related to these amendments would cost $1,130,000 over the first two years, and the ongoing support and maintenance of RSIG for the purposes of the proposed amendments would cost $150,000 annually. An additional cost of $25,000 annually would be incurred for the maintenance of data regulation (compliance and reporting) and data quality. Consequently, over a 10-year period, the present value of the cost to Government is estimated to be $2,326,744, which is equivalent to an annualized value of $270,420.

Therefore, the present value of the total cost of the proposed amendments is estimated to be $3,606,330 over a 10-year period, which is equivalent to an annualized value of $419,137.

The benefits would be qualitative in nature and difficult to monetize. Generally, the proposed amendments are expected to enhance the risk-based planning process by broadening the range of railway-safety related information available to Transport Canada; to positively impact the travelling public by enhancing Transport Canada’s ability to highlight and take action in areas of risk before accidents occur; to allow for more efficient and consistent industry oversight; and to improve rail safety in the long term through more accurate statistical analysis leading to targeted actions against identified areas of risk.

Overall, it is expected that the proposed amendments would have a positive impact on Canadians.

Implementation, enforcement and service standards

Railway companies would be required to begin collecting information on each of the 15 leading indicators when the proposed amendments come into force on April 1, 2015. This coming-into-force date will provide time for Transport Canada to develop RSIG in order to accommodate the new sources of data related to the proposed amendments, and it will provide time for railway companies to develop their data delivery methods and data conversion programs for some or all 15 of the leading indicators of railway safety, as applicable.

The first deadline to submit railway safety-related information to Transport Canada under the proposed amendments would be January 15, 2016, for information collected from April 1 until October 31, 2015. Thereafter, information related to each of the 15 leading indicators would be required to be submitted annually on January 15 of each year for the previous 12-month collection period from November 1 to October 31.

Transport Canada will develop secure data collection and delivery methods in conjunction with industry to assist railway companies in compiling and submitting data on each of the 15 indicators in order to minimize administrative burden on those companies. Transport Canada will provide a preformatted workbook (likely in Excel) for railway companies to use to enter their data directly and then submit it through a secure Web portal.

Contact

Any questions related to the amendments to the Transportation Information Regulations should be directed to

Susan Archer
Director
Regulatory Affairs
Transport Canada
Telephone: 613-990-8690
Email: susan.archer@tc.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council, pursuant to subsection 50(1) (see footnote a) of the Canada Transportation Act (see footnote b), proposes to make the annexed Regulations Amending the Transportation Information Regulations.

Interested persons may make representations concerning the proposed Regulations to the Minister of Transport within 30 days after the date of publication of this notice. All such representations must be in writing and cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Susan Archer, Director, Regulatory Affairs, Rail Safety, Department of Transport, Place de Ville, Tower C, 330 Sparks Street, Ottawa, Ontario K1A 0N5 (tel.: 613-990-8690; fax: 613-990-7767; email: susan.archer@tc.gc.ca).

Ottawa, June 17, 2014

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE TRANSPORTATION INFORMATION REGULATIONS

AMENDMENTS

1. The Transportation Information Regulations (see footnote 2) are amended by replacing subsections 1(2) and (3) with the following:

(2) Unless otherwise indicated in these Regulations, a reference to a form or publication is a reference to the form or publication as amended from time to time.

2. The Regulations are amended by adding the following after section 12.3:

12.4 (1) A class I rail carrier and class II rail carrier must provide to the Minister the following information related to railway safety:

(2) A rail carrier referred to in column I of Schedule II.2 must provide to the Minister the details relating to the information required by paragraphs (1)(a) to (l) that are provided for in the form referred to in column II for the reporting period set out in column III before the end of day set out in column IV.

(3) A rail carrier referred to in column I of Schedule II.2 must provide to the Minister, electronically using files in Excel or Comma-separated values (CSV) format, the information required by paragraphs (1)(m) and (n) for the reporting period set out in column III before the end of the day set out in column IV.

3. The portion of item 1 of Schedule I to the Regulations in column II is replaced by the following:

Item Column II

Form
1. On-Board Coupon Origin and Destination Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

4. The portion of items 3 to 5 of Schedule I to the Regulations in column II is replaced by the following:

Item Column II

Form
3. On-Board Coupon Origin and Destination Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
4. On-Board Coupon Origin and Destination Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
5. On-Board Coupon Origin and Destination Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

5. The portion of item 18 of Schedule I to the Regulations in column II is replaced by the following:

Item Column II

Form
18. Aircraft Fleet and Fuel Consumption Report, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

6. The portion of items 20 to 23 of Schedule I to the Regulations in column II is replaced by the following:

Item Column II

Form
20. Statement of Air Cargo Fluidity Indicators, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
21. General Aviation Operational Survey (Detailed), included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
22. General Aviation Operational Survey (Summary), included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
23. General Aviation Financial Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

7. The portion of items 1 to 3 of Schedule II.1 to the Regulations in column II is replaced by the following:

Item Column II

Form
1. Locomotive Fleet Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
2. Passenger Rail Origin and Destination Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
3. Passenger Rail Line Traffic Report, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

8. The Regulations are amended by adding, after Schedule II.1, the Schedule II.2 set out in the schedule to these Regulations.

9. The portion of item 6 of Schedule III to the Regulations in column II is replaced by the following:

Item Column II

Form
6. Annual marine fleet inventory and fuel consumption survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

10. The portion of item 1 of Schedule IV.1 to the Regulations in column II is replaced by the following:

Item Column II

Form
1. Annual Truck Fleet Inventory and Fuel Consumption Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

11. The portion of items 1 to 4 of Schedule V.1 to the Regulations in column II is replaced by the following:

Item Column II

Form
1. Scheduled Intercity Bus Passenger Origin and Destination Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
2. Passenger Motor Carrier Schedules Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
3. Annual Bus Fleet Inventory and Fuel Consumption Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
4. Scheduled Intercity Bus Freight and Parcel Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

12. The portion of items 1 and 2 of Part I.2 of Schedule VI to the Regulations in column I is replaced by the following:

Item Column I

Form
1. Balance Sheet, Airport, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
2. Income Statement, Airport, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

13. The portion of items 1 and 2 of Part III of Schedule VI to the Regulations in column I is replaced by the following:

Item Column I

Form
1. Flight Plan Report, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015
2. Flight Tracking Report, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

14. The portion of item 1 of Schedule XI to the Regulations in column I is replaced by the following:

Item Column I

Form
1. Port Infrastructure Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015

COMING INTO FORCE

15. These Regulations come into force on April 1, 2015.

SCHEDULE
(Section 8)

SCHEDULE II.2
(Subsections 12.4(2) and (3))

RAIL CARRIER DOCUMENT

Item Column I

Rail Carrier
Column II

Form
Column III

Reporting Period
Column IV

Day
1. classes I and II rail carriers Survey of Railway Safety-Related Data Elements, in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on April 1, 2015 annually in respect of the period November 1 to October 31 January 15 in the year after the last day of the reporting period

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