Regulations Amending the Canadian Aviation Regulations (Various Amendments): SOR/2020-151

Canada Gazette, Part II, Volume 154, Number 14

Registration

SOR/2020-151 June 26, 2020

AERONAUTICS ACT

P.C. 2020-496 June 25, 2020

Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to section 4.9 ^{footnote a} of the Aeronautics Act ^{footnote b}, makes the annexed Regulations Amending the Canadian Aviation Regulations (Various Amendments).

Regulations Amending the Canadian Aviation Regulations (Various Amendments)

Amendments

1 Paragraph (b) of the definition flight training unit in subsection 101.01(1) of the Canadian Aviation Regulations ^{footnote 1} is replaced by the following:

• (b) in the case of a glider, balloon, gyroplane or ultra-light aeroplane, a person, club, school or other organization that conducts flight training; (unité de formation au pilotage)

2 The references “Subsection 705.27(3)” to “Subsection 705.27(5)” in column I of Subpart 5 of Part VII of Schedule II to Subpart 3 of Part I of the Regulations and the corresponding amounts in column II are replaced by the following:

Column I Designated Provision	Column II Maximum Amount of Penalty ($)
	Individual	Corporation
Subsection 705.27(3)	3,000	15,000
Subsection 705.27(4)	3,000	15,000
Subsection 705.27(5)	1,000	5,000
Subsection 705.27(6)	1,000	5,000
Subsection 705.27(7)	1,000	5,000
Subsection 705.27(10)	1,000	5,000

3 The reference “Subsection 802.02(4)” in column I of Subpart 2 of Part VIII of Schedule II to Subpart 3 of Part I of the Regulations and the corresponding amounts in column II are repealed.

4 The definition minimum flight crew document in subsection 400.01(1) of the Regulations is replaced by the following:

• minimum flight crew document means a document, issued by the Minister, a contracting state or an aircraft manufacturer, that relates to an aircraft and that specifies the number of pilots required to operate the aircraft; (document relatif à l’équipage de conduite minimal)

5 The portion of subsection 400.02(1) of the Regulations before paragraph (a) is replaced by the following:

400.02 (1) Except as authorized by an invigilator, no person shall, or shall attempt to, in respect of an examination,

6 Section 401.65 of the Regulations is replaced by the following:

401.65 A Class 1, 2, 3 or 4 flight instructor rating — aeroplane, a Class 1 or 2 flight instructor rating — aeroplane — aerobatic or a Class 1, 2, 3 or 4 flight instructor rating — helicopter is valid for the period specified on the licence in accordance with the personnel licensing standards.

7 Section 600.01 of the Regulations is amended by adding the following in alphabetical order:

• fly-in means an activity during which aircraft are gathered at an aerodrome before an invited assembly of persons, during which no competitive flights between aircraft or aerial demonstrations take place; (rassemblement d’aéronefs)

8 (1) The definition région sinistrée in section 601.14 of the French version of the Regulations is repealed.

(2) Section 601.14 of the French version of the Regulations is amended by adding the following in alphabetical order:

• zone d’incendie de forêt Région de la surface terrestre dans laquelle du bois sur pied, de l’herbe ou toute autre végétation ou des bâtiments brûlent. (forest fire area)

9 Paragraph 601.15(a) of the French version of the Regulations is replaced by the following:

• a) à une altitude inférieure à 3 000 pieds AGL au-dessus d’une zone d’incendie de forêt ou de la région située à cinq milles marins ou moins de la zone d’incendie de forêt;

10 Paragraph 601.16(a) of the French version of the Regulations is replaced by the following:

• a) l’endroit et l’étendue d’une zone d’incendie de forêt;

11 Paragraph 602.29(2)(c) of the Regulations is replaced by the following:

• (c) where the aircraft is a basic ultra-light aeroplane, in Class E airspace other than the airspace that is described in paragraph (a) or (b), if
  • (i) the aeroplane is equipped with a portable or fixed altimeter, and
  • (ii) in the case of a cross-country flight, the aeroplane is equipped with a portable or fixed magnetic compass or global navigation satellite system (GNSS) receiver; or
• (d) where the aircraft is an advanced ultra-light aeroplane, if the aeroplane is equipped in accordance with section 605.14.

12 Paragraph 602.59(2)(d) of the Regulations is replaced by the following:

• (d) a first aid kit;

13 Paragraph 602.60(1)(f) of the Regulations is replaced by the following:

• (f) a timepiece that is readily available to each flight crew member and that displays the time in hours, minutes and seconds;

14 Paragraphs 602.106(1)(a) to (c) of the Regulations are replaced by the following:

• (a) a certificate of noise compliance issued in respect of the aeroplane under section 507.20; or
• (b) where the aeroplane is not a Canadian aircraft, a foreign certificate of noise compliance issued by the state of registry that has been validated by the Minister under section 507.23.

15 Section 603.01 of the Regulations is replaced by the following:

603.01 No person shall conduct a special aviation event, other than a fly-in, unless the person complies with the provisions of a special flight operations certificate — special aviation event issued by the Minister under section 603.02.

16 Section 703.26 of the Regulations is replaced by the following:

703.26 No person shall, if passengers or cargo are on board an aircraft, simulate emergency situations that could affect the flight characteristics of the aircraft.

17 Section 704.22 of the Regulations is replaced by the following:

704.22 No person shall, if passengers or cargo are on board an aircraft, simulate emergency situations that could affect the flight characteristics of the aircraft.

18 Subsections 705.27(3) to (5) of the Regulations are replaced by the following:

(3) An air operator shall ensure that only the following persons are admitted to the flight deck of an aircraft:

• (a) a crew member;
• (b) an inspector referred to in subsection (1); and
• (c) a person authorized by the air operator under subsection (4).

(4) An air operator shall not authorize a person referred to in column I of the table to this section to access the flight deck of an aircraft operating in domestic service unless the access would not have an adverse effect on aviation safety and the air operator has verified

• (a) that the person is a person referred to in column I of the table and is employed by an employer referred to in column II of the table; and
• (b) the identity of the person by examining the document referred to in column III of the table and one of the documents referred to in column IV of the table.

(5) An air operator that authorizes access to the flight deck of an aircraft shall keep a record of the following information for two years after the day on which access is authorized:

• (a) the name of the authorized person;
• (b) the name of their employer; and
• (c) the date of the flight and flight number.

(6) Before each flight, an air operator shall notify the pilot-in-command of the identity of the persons who the operator has authorized to access the flight deck of an aircraft.

(7) Before admitting a person authorized under subsection (4) to the flight deck of an aircraft, the pilot-in-command shall verify the identity of the person by means of the documents referred to in paragraph 4(b).

(8) A person authorized under subsection (4) who is admitted to the flight deck of an aircraft may only occupy an observer seat.

(9) The pilot-in-command may refuse access to the flight deck of an aircraft if they are of the opinion that there would be an adverse effect on aviation safety.

(10) The air operator shall set out, in its company operations manual, procedures respecting

• (a) the granting of authorization to access the flight deck;
• (b) the verification required under subsection (4); and
• (c) the notice to be provided to the pilot-in-command under subsection (6).

TABLE

Item	Column I Person	Column II Employer	Column III Mandatory Identification Documents	Column IV Other Identification Documents
1	Canadian pilot travelling for positioning or personal reasons	Canadian air operator	Valid restricted area identity card	One of the following valid documents: (a) Passport; (b) Airline transport, commercial or multi-crew pilot licence with a valid medical certificate; or (c) Photo identification issued by the employer
2	Foreign pilot travelling for positioning or for personal reasons	Foreign wholly owned subsidiary or code share partner of the air operator	Valid piece of photo identification issued by the employer	One of the following valid documents: (a) Passport; (b) Airline transport, commercial or multi-crew pilot licence with a valid Category 1 medical certificate; or (c) Piece of photo identification issued by the foreign government
3	Flight attendant, flight engineer or a person who has expertise related to the aircraft, its equipment or its crew members and who is required to be on the flight deck to provide a service to the air operator	(a) Canadian air operator; (b) Foreign wholly owned subsidiary or code share partner of the air operator; or (c) Person providing a service to the air operator	Valid piece of photo identification issued by the employer	One of the following valid documents: (a) Passport; (b) Restricted area identity card; (c) Flight engineer licence with a valid Category 1 or 2 medical certificate; or (d) Piece of photo identification issued by the foreign state, if the employer is a foreign wholly owned subsidiary or code share partner
4	Air operator employee	Air operator that authorized the access to the flight deck	Valid piece of photo identification issued by the employer	One of the following valid documents: (a) Passport; or (b) Restricted area identity card

19 Section 705.30 of the Regulations is replaced by the following:

705.30 No person shall, if passengers or cargo are on board an aircraft, simulate emergency situations that could affect the flight characteristics of the aircraft.

20 The portion of subsection 705.45(2) of the Regulations before paragraph (a) is replaced by the following:

(2) Subsection (1) does not apply if a Department of Transport air carrier inspector, a crew member or a person authorized under subsection 705.27(4) to access the flight deck is required to enter or leave the flight deck

21 Subsection 705.201(3) of the Regulations is replaced by the following:

(3) A Department of Transport air carrier inspector or a person authorized under subsection 705.27(4) to access the flight deck is not counted as a passenger for the purposes of paragraph (2)(a).

22 The heading before section 706.05 of the Regulations is replaced by the following:

Defect Recording, Rectification and Control Procedures

23 Subsections 802.02(3) and (4) of the Regulations are replaced by the following:

(3) A person who operates any equipment that is part of an aeronautical telecommunications system referred to in Annex 10 to the Convention shall, at the request of the Minister, provide the Minister with a copy of the documentation referred to in paragraph (1)(b).

Coming into Force

24 These Regulations come into force on the day on which they are published in the Canada Gazette, Part II.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues

The Canadian Aviation Regulations (CARs) [the Regulations] have not been comprehensively reviewed and amended since 1996. The purpose of these amendments is to address non-controversial issues with the CARs, with minimal or no impact to stakeholders, that respond to the needs and emerging priorities of the aviation industry related to the use of long-standing exemptions, to align with International Civil Aviation Organization (ICAO) standards, and to address discrepancies, unnecessary regulatory requirements and duplication.

Background

The CARs have not been comprehensively reviewed and amended since 1996, which has made it difficult, despite numerous ad-hoc changes to the Regulations, for Transport Canada’s aviation safety program to keep pace with advancements in the aviation sector, as well as respond to the needs and emerging priorities of the aviation industry.

Successive exemptions

Subsection 5.9(2) of the Aeronautics Act authorizes the Minister to grant exemptions from any provision of any regulation (e.g. the CARs), order or security measure made under Part I of the Act, where the Minister is of the opinion that granting the exemption will be in the public interest and will not adversely affect aviation safety or security. In practice, an exemption is an authorization that permits the requester(s) to do something that is not in accordance with a regulation, order or security measure. To obtain an exemption, the person (or organization) seeking one must demonstrate to the Minister’s satisfaction that the exemption would be in the public interest and will not adversely affect aviation safety or security. For exemptions to the CARs, the Minister’s final decision to grant an exemption will depend on advice from Transport Canada subject matter experts based on a risk assessment to establish that granting the exemption is in the public’s interest and will not adversely affect aviation safety. In granting the exemption, the Minister may include any conditions that are necessary for the authorized activity to meet the public interest, safety and security requirements. While some exemptions are applied nationally, others are applied individually to the requester. Typically, as required by Transport Canada policy, exemptions have an expiry date which can be defined as a specific date or a date on which a regulatory change that captures the purpose of the exemption is made. However, the Minister may at any time, in writing, cancel an exemption where in his or her opinion the exemption is no longer in the public interest or is likely to adversely affect aviation safety.

Section 602.29 of the CARs prescribes operational requirements for hang gliders and ultra-light aeroplanes in controlled airspace. Hang gliders and ultra-light aeroplanes (e.g. an aeroplane having no more than two seats, designed and manufactured to have a maximum weight of not more than 544 kg ) are only allowed in specific types of Class E airspace (airspace used for low-level flight routes and for aerodromes with very little traffic). Since 2009, the Minister had, through exemption, authorized pilots-in-command of basic ultra-light aeroplanes to operate in Class E airspace other than that described in the CARs on condition that they are equipped with a portable or fixed altimeter or with a portable or fixed magnetic compass or Global Positioning System (GPS) receiver. This exemption provides pilots of basic ultra-light aeroplanes access to altitudes that are required to safely conduct training activities, such as stalls. Since 2009, four successive, identical exemptions have been granted and one would have been expected in 2022.

Section 603.01 of the CARs requires acquisition of and compliance with provisions of a special flight operations certificate (SFOC) in order to conduct a special aviation event. A special aviation event means an airshow, a low-level air race, an aerobatic competition, a fly-in or a balloon festival. Since 2013, the Minister has granted exemptions permitting persons conducting non-aerobatic and non-competitive fly-in activities from the requirement of obtaining a SFOC on the condition that these special aviation events do not include aerial demonstrations. Following the first exemption in 2013, two identical exemptions have successively been granted, and a third one would have been granted in 2020.

Section 705.27 of the CARs prescribes conditions for admission into the flight deck. It details who can be admitted into the flight deck and under what circumstances or conditions. Since 2008, the Minister had, through exemption, permitted Canadian air operators and their pilots-in-command to grant admission to the flight deck of their aeroplane, on domestic flights only, to certain personnel (including flight attendants, flight engineers, non-operational pilots and persons who have expertise related to the aircraft, its equipment or its crew members and who is required to be in the flight deck to provide a service to the air operator) employed by a Canadian air operator or its foreign wholly owned subsidiary, subject to certain conditions. Since 2008, four successive, identical exemptions have been granted.

Unclear regulatory text, inconsistent use of terminology and redundant regulatory requirements

The CARs had instances where regulatory text was unclear as well as instances of inconsistent use of terminology. Such occurrences lead to differences in interpretation and therefore unintentional non-compliance. Enhanced consistency in the use of terminology, and thus the interpretation of regulatory requirements, will improve compliance and therefore safety.

There were also instances in the CARs where regulatory requirements were unnecessarily repeated and represented a potential source of confusion, e.g. regulatory requirements for installing, maintaining and operating ground equipment in support of satellite navigation systems occur twice in the Regulations each pointing to a different source for applicable standards.

Harmonization with ICAO

The International Civil Aviation Organization (ICAO) is a United Nations’ specialized agency, established by States in 1944 to manage the administration and governance of the Convention on International Civil Aviation (Chicago Convention). ICAO works with the Convention’s 193 Member States (Canada being one of those) and industry groups to reach consensus on international civil aviation Standards and Recommended Practices (SARPs) and policies in support of a safe, efficient, secure, economically sustainable and environmentally responsible civil aviation sector. These SARPs and policies are used by ICAO Member States to ensure that their civil aviation operations and regulations conform to global norms. States opting not to use an ICAO standard are required to file a difference with the organization. Transport Canada has always advocated for harmonization with ICAO SARPs where and when possible. Doing so puts the Canadian civil aviation sector on a level playing field with the rest of the signatory states of the Chicago Convention, thus creating the right environment for the industry to grow and remain competitive globally without compromising on safety. Enhanced alignment of regulatory requirements with ICAO standards will enhance international recognition of the safety of Canada’s civil aviation industry and boost the international competitiveness of the industry.

Canada’s official languages

The Official Languages Act, which came into force in 1969, gives English and French equal status in the government of Canada and represents the legislative keystone of Canada’s official bilingualism. It provides, among other things, that Parliament will enact, print and publish laws in both official languages, thereby ensuring that both versions will be of equal legal authority. This requirement equally applies to the CARs. It is, therefore, necessary to ensure consistency between the English and French versions. Amendments are made to correct inconsistencies between the English and French versions of certain provisions of the CARs.

Objective

The objectives of the Regulations Amending the Canadian Aviation Regulations (Various Amendments) [the amendments] are to

• reduce the number of long-standing exemptions being granted thereby freeing up resources employed by regulated entities and Transport Canada Civil Aviation to apply for and process exemptions, respectively;
• enhance consistency in the use of terminology, and thus the interpretation of regulatory requirements, which should improve compliance and, therefore, safety;
• eliminate redundant requirements, a source of confusion, thereby enhancing stakeholder interpretation of, and compliance with regulatory requirements;
• enhance the alignment of regulatory requirements with ICAO standards which should in turn enhance international recognition of the safety of Canada’s civil aviation industry, as well as boost its international competitiveness; and
• improve consistency between the English and the French versions of regulatory requirements, which should eliminate any language-related interpretational differences, improve compliance with the CARs and Canada’s language laws.

Description

As a first step towards modernizing the CARs, this regulatory amendment is intended to play a housekeeping role by addressing non-complex, non-controversial, no-cost irritants from the list of issues identified by stakeholders. The amendments will codify recurrent global exemptions (i.e. exemptions that apply to all persons who would otherwise be subject to the requirement rather than a single individual) into regulatory text; clarify regulatory text; remove redundant provisions; enhance alignment with international standards, and; correct inconsistencies between the French and English versions of the CARs.

Codification of exemptions: Making permanent three recurring global exemptions by codifying them into the CARs so that they

• minimize existing regulatory restrictions (CARs, subsection 602.29(1)) on pilots-in-command of basic ultra-light aeroplanes with respect to the type of airspace they can exploit. Basic ultra-lights are allowed to operate in any class of controlled airspace at the vicinity of an airport provided permission or clearance has been received. However, outside the airport area, such operations are only permitted in Class E airspace. This change will maintain the ability of pilots of basic ultra-light aeroplanes engaged in training activities that require altitude, such as stalls, to continue doing that safely;
• exempt persons conducting fly-in activities from the requirement to hold a special flight operations certificate (CARs, section 603.01) so long as they do not engage in any competitive or acrobatic activities;
• permit air operators and their pilots-in command, on domestic flights only, to grant admission into the flight deck to certain personnel (such as non-operational pilots and non-crew members) for whom the transport has been pre-approved by the offering air operator (CARs, section 705.27). “Non-operational pilot” means a pilot commuting to or from a flight assignment or travelling for personal reasons. “Non-crew member” means a flight engineer, flight attendant and a person with expertise related to the aeroplane, its equipment or its crew members who is required to be in the flight deck to provide a service to the air operator.

Unclear regulatory text and inconsistent use of terminology: The following clarifications have been made to the CARs:

• The definition of “flight training unit” (CARs, subsection 101.01(1)) is amended to clarify that an individual (person) is included in the definition of a “flight training unit”;
• Subsection 400.02(1) is amended to clarify that examination rules apply to oral exams as well as written exams;
• Section 401.65 is amended to clarify that a Class 1 or 2 flight instructor rating — aeroplane-aerobatic is valid for the period specified on the licence in accordance with the personnel licensing standards. The validity period for this class of instructor ratings (licence to provide flight training) have been in Standard 421 — Flight Crew Permits, Licences and Ratings since 1999 but that was not reflected in the CARs;
• Paragraphs 602.106(1)(a) to (c) are amended to clarify that a “certificate of noise compliance,” not a “certificate of airworthiness,” is the required document to prove compliance with noise restrictions at an aerodrome;
• Paragraph 602.60(1)(f) is amended to clarify that the time piece required for safe operation of power-driven aircraft should be able to display time in hours, minutes and seconds. This level of detail with respect to time is necessary for reasons such as accurate fuel calculations, estimation of time of arrival, as well as for timing of turns in emergency situations under instrument flight rules;
• The heading before section 706.05 is amended by adding “recording” to harmonize it with the heading before section 406.41. Both sections deal with recording, rectification and control of aircraft defects.

Redundant provisions: In order to clean the CARs of redundant provisions, the following changes have been made:

• The operational and emergency equipment requirements in paragraph 602.59(2)(d) are amended to clarify that installation standards for first aid kits installed in privately or commercially operated aircraft do not have to meet any standards from the Airworthiness Manual. Installation standards for first aid kids installed in privately or commercially operated aircraft are covered by the basis of certification of the aircraft. No additional standard is required in the Airworthiness Manual or elsewhere.
• The reference to the standard for operating ground equipment in support of satellite navigation systems in subsection 802.02(3) is removed. These requirements are contained in ICAO Annex 10 standards, incorporated by reference in subsection 802.02(1) of the CARs. These standards have since been updated to include ground equipment that support Global Navigation Satellite Systems (GNSS). Also, as a consequence of the amendment to subsection 802.02(3), subsection 802.02(4) is repealed.

Non-alignment with ICAO standards and terminology: In order to enhance alignment with ICAO standards and terminology, the following changes have been made:

• The definition of “flight crew document” in subsection 400.01(1) is amended to bring it in line with ICAO standards and terminology by including “air operator certificate” as one of the documents that can be used to specify the number of pilots required to operate an aircraft, and extending the scope of authorities that can issue such documents to include ICAO member states.
• Sections 703.26, 704.22 and 705.30 are amended to clarify that simulating emergency situations is not allowed on commercial aircraft with cargo on board. Simulating emergencies with cargo on board can potentially affect an aircraft’s flight characteristics with possible safety hazards to flight crew, other persons and property. This is in line with current ICAO standards.

Discrepancies between the English and French: The French version of sections 601.14, 601.15 and 601.16 are amended by replacing “région sinistrée” with “zone d’incendie de forêt.” Correcting such discrepancies will eliminate any language-related interpretational differences, improve compliance with the CARs and with Canada’s language laws.

Consequential amendments:

• Schedule II to Subpart 3 of Part I is amended to reflect the changes to section 705.27 respecting admission into the flight deck. This Schedule stipulates monetary penalties for non-compliance with designated provisions of the CARs.
• The definition of “fly-in” is added to section 600.01 to enhance interpretation of rules governing special flight operations.
• The reference to subsection 802.02(4) in column I of Part VIII of schedule II to subpart 3 of Part I of the Regulations and the corresponding amounts in column II are repealed as a consequence of repealing subsection 802.02(4).

Regulatory development

Consultation

The amendments were not prepublished as they are non-controversial, technical amendments, which do not change the way stakeholders carry out their business activities and do not generate incremental costs to stakeholders.

On May 31, 2019, members of the Canadian Aviation Regulatory Advisory Council (CARAC) were consulted. CARAC is a joint undertaking of government and the aviation community, with participation from a large number of organizations outside Transport Canada representing the overall viewpoint of the aviation community. These include management and labour organizations, representing operators and manufacturers, and professional associations. CARAC has been part of the civil aviation rule-making process since 1993. At the end of the 30-day consultation period, no comments were received.

Modern treaty obligations and Indigenous engagement and consultation

An initial review did not identify any applicable modern treaties obligations and, therefore, a detailed analysis was not required.

Instrument choice

Option 1: Status quo — Maintain current Regulations and exemption process

This option will maintain the lack of flexibility in the CARs that resulted in the granting of over 18 exemptions related to granting of access to the flight deck to non-operational pilots and non-crew members, operation of basic ultra-light aeroplanes in certain airspaces and the conducting of non-aerobatic and non-competitive “fly-in” activities without a special flight operations certificate. Internal Transport Canada resources devoted to granting these exemptions could be dedicated to other aviation safety work.

Not amending the CARs will also maintain issues of non-alignment with ICAO standards and definitions, as well as issues related to interpretational differences as a result of unclear regulatory requirements.

Option 2: Amend the Regulations — Preferred option

The amendments codify existing ministerial exemptions related to granting of access to the flight deck to non-operational pilots and non-crew members, operating of basic ultra-light aeroplanes in certain airspaces and conducting of non-aerobatic and non-competitive “fly-in” activities without a special flight operations certificate. Stakeholders who depended on these exemptions in order to carry out the related activities will no longer have to worry about the validity of the exemptions. Also, codifying these exemptions into the CARs will free up internal Transport Canada resources for other aviation safety work. Aligning with ICAO standards will support Canada’s commitments to harmonize with its international counterparts. Clarifying regulatory requirements will enhance interpretation and consequently compliance, which will in turn help Transport Canada’s mandate of promoting a safe transportation system.

Regulatory analysis

The regulatory analysis evaluates and monetizes the incremental changes using a 7% discount rate and 2018 constant dollars. The costs and benefits of the amendments were estimated over a ten-year period (2020-2029).

Benefits and costs

As mentioned, the objectives associated with the amendments to the CARs are to reduce the number of long-standing exemptions, enhance consistency in the use of terminology, eliminate the discrepancies between the English and French versions, eliminate redundant provisions, and enhance alignment with the ICAO standards. Although the amendments will result in benefits that are, in most parts, intangible and difficult to quantify, the elimination of recurrent exemptions will provide a cost-saving to the government of $26,342 (CAD$, 2018), over the next 10 years (2020 to 2029).

Baseline scenario

The current exemptions are all global exemptions, which are developed and issued by TC and apply to all Canadians, provided that their utilization respects strict conditions specified in the exemption documents. As opposed to an individual exemption, where each individual requester has to apply to get an exemption, a global exemption applies automatically to all Canadians to the extent that strict conditions are followed by the users as specified in the exemption documents.

A global exemption has the advantage of removing the need for an individual to request an exemption and, therefore, for the government to process the application request. It, therefore, reduces the cost to Canadians of applying for an exemption (i.e. application cost, exemption fees, and administrative burden) and reduces cost as well for the government.

Prior to these amendments, TC granted (and successively renewed) three different global exemptions from the requirements of the CARs following a thorough assessment that determined that these exemptions are in the public interest and are not likely to adversely affect aviation safety. These global exemptions came into force on different dates and have different expiry dates. Table 1 below shows the three global exemptions with their effective date and expiry dates:

Table 1 — List of global exemptions

Exemptions	Effective Date	Validity Period (Years)	Renewed by
Exemption from paragraph 602.29 (1)(c) of CARs — pilots-in-command of ultra-light aeroplanes	July 1, 2017	5	July 30, 2022
Exemption from section 603.01 of CARs — persons conducting fly-ins	Jan 1, 2017	3	December 30, 2020
Exemption from the subparagraphs 705.27(3)(d)(ii) and 705.27(4)(b)(i) of CARs	Oct 2, 2015	5	September 1, 2020

Before the expiry date, TC will be required to formally renew the global exemption by reviewing the initial (developed at time of first granting) risk assessment to confirm if it is still relevant to support the renewal.

Regulatory scenario

Industry impact

Under the previous set of rules, TC eliminated the need for aviation stakeholders to request individual exemptions to specific conditions in the CARs by producing global exemptions. The amendments do not change the conditions under which aviation stakeholders are required to follow under the global exemptions to comply as these conditions will be part of the amended regulations. In other words, there will be no impact (no cost and no cost saving) for the industry.

Government impact

Under the regulatory scenario, TC will no longer need to renew global exemptions as the conditions required for exemption will be part of the amended regulations (codification in the CARs). Over the next ten years, it is assumed that under the baseline scenario, TC will continue to renew global exemptions based on the renewal date (see table 1) and that validity period will remain the same. It is expected that TC will have to grant eight renewals, of the three global exemptions, from 2020 to 2029.

The process of assessing a global exemption involves many people at TC. First, a civil aviation inspector is tasked to review the safety and technical assessment of the global exemption request. Once the decision has been taken to proceed with the granting of the exemption, the exemption documentation developed by the civil aviation inspector (exemption, assessment paper, risk assessment, reports, etc.) are sent to Regulatory Affairs for review. A regulatory review and analysis of the exemption documentation are prepared by the regulatory affairs analyst with the help of technical experts from the Standards branch and the National Aircraft Certification branch to complete the review of the exemption documents. Then, the Chief of Regulatory Affairs recommends that the exemption proceed with sign-offs from senior management.

Based on work required to grant the previous exemptions, it is estimated that it will cost, on average, between $3,833 and $4,716, to process one exemption. Table 2 below shows the details of the employees involved and their number of hours spent on each of the three exemption processes.

Table 2 — Average level of effort on the three exemption processes per employee

Government Employees Assigned to Global Exemption Process	Average Hours per Exemption — Section 602.29	Average Hours per Exemption — Section 603.01	Average Hours per Exemption — Section 705.27	Wage table 4 note *
Inspector (Civil Aviation)	30	20	60	$51.27
Exemptions Coordinator	0.75	0.75	0.75	$52.94
Technical Expert	45	45	—	$53.81
Senior Regulatory Affairs Analyst	10	10	10	$64.45
Regulatory Affairs Chief	1	1	1	$72.10
Table 4 note(s) Table 4 note * Wage includes 25% overhead cost. Return to table 4 note * referrer

Cost-benefit statement

As mentioned above, the benefits consist of cost savings for the government only. It is estimated that the incremental changes of the amendments will result in a cost-saving to the government of $26,342 over 10 years. As shown in Table 3 below, during the first year, the present value of the cost-savings will be $8,036. The present value annualized net cost-savings will be $3,751.

Table 3 — Cost-benefit statement (Present value, discounted at 7%, 2018 dollars)

	Base Year: 2020	Final Year: 2029	Total	Annualized Total
MONETIZED IMPACTS
Industry cost savings
Total industry cost savings	—	—	—	—
Government cost savings
Total government cost savings	$8,036	$2,286	$26,342	$3,751
Total cost savings	$8,036	$2,286	$26,342	$3,751
QUALITATIVE IMPACTS
Enhanced consistency in the use of terminology. Enhanced alignment of regulatory requirements with ICAO standards and therefore increased Canadian air operators’ competitiveness relative to their foreign counterparts.

Small business lens

The small business lens does not apply to the amendments, as no incremental costs will be imposed on the industry, including small business. In fact, the amendments will not change the conditions that aviation stakeholders are required to follow under the global exemptions as these conditions will be part of the amended regulations.

One-for-one rule

The one-for-one rule does not apply. The amendments are anticipated to have no change on administrative burden on business. Under the current regulatory scenario, stakeholders are not required to apply for the renewal of recurrent global exemptions. The codification of theses exemptions will not change how the industry is doing business or operate.

Regulatory cooperation and alignment

The amendments harmonize Canadian requirements with respect to the acceptable documents in which the number of pilots required to safely operate an aircraft is specified, as well as the authorities that can issue such documents, with international (ICAO) standards. The amendments also harmonize regulatory requirements for simulating emergencies on aircraft with cargo on board with international (ICAO) standards.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

No gender-based analysis plus (GBA+) impacts have been identified for this proposal.

Implementation and compliance and enforcement

Implementation

These amendments come into force upon their publication in the Canada Gazette, Part II, and, as a result, all existing exemptions codified herein that were in place prior to the amendments will be repealed. All relevant advisory circulars will be updated and made available by Transport Canada to assist air operators with the amendments.

Compliance and enforcement

Transport Canada will enforce these amendments by

• imposing monetary penalties as provided for by sections 7.6 to 8.2 of the Aeronautics Act, which carry a maximum fine of $5,000 for individuals and $25,000 for corporations; or
• suspending or cancelling a Canadian aviation document.

As a consequence of the revision of section 705.27, additional penalties have been added to Schedule II to subsections 103.08(1) and (2) to reflect the enforcement policy for non-compliance with the revised requirements in section 705.27 of the CARs.

Transport Canada will conduct its implementation, compliance promotion and enforcement activities with existing resources, within the existing departmental reference level.

Contact

Sandra Miller
Chief
Aviation Safety Regulatory Review (AARK)
Civil Aviation
Safety and Security Group
Place de Ville, Tower C
330 Sparks Street
Ottawa, Ontario
K1A 0N5
Telephone: 613‑993‑7284 or 1‑800‑305‑2059
Email: carrac@tc.gc.ca
Website: www.tc.gc.ca