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[CNJRoss]

eTurboNews. 2/20:
 

Canada introduces legislation to strengthen rail safety

 

OTTAWA, Canada - The Honourable Lisa Raitt, Minister of Transport, today introduced legislation in the House of Commons that will enhance railway safety and make the rail industry and crude oil shippers more accountable to Canadians.

 

The new Safe and Accountable Rail Act proposes amendments to the Canada Transportation Act and Railway Safety Act. Changes include a new liability and compensation regime for federally regulated railways, including minimum insurance requirements; a compensation fund financed by levies on crude oil shippers; increased information-sharing provisions; and stronger oversight powers for the Minister and Transport Canada inspectors.

 

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[CNJRoss]

Canadian Underwriter, 5/8:
 

Bill mandating railway insurance coverage reaches third reading

 

A proposal to mandate insurance coverage of up to $1 billion for railway operators in Canada is in a federal government bill that was tabled Thursday for third reading in the House of Commons, the same day a separate bill proposing up to $1 billion in absolute liability on pipeline operators was tabled for first reading in the Senate.

 

SNIP

 

Federal law does not mandate specific levels of coverage, though it does require railway operators to be covered for third-party liability, third-party bodily injury or death. The Canadian Transportation Agency reviews each railway's insurance coverage on a case-by-case basis, and has the power to issue and suspend certificates of fitness.

 

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[CNJRoss]

Progressive Railroading, 6/19:

 

Legislation approved to strengthen rail safety in Canada

Legislation aimed at improving railroad safety and crude-by-rail practices in Canada has become law, Minister of Transport Lisa Raitt announced yesterday.

The Safe and Accountable Rail Act amends the Canada Transportation Act to strengthen the liability and compensation regime for federally regulated railways through enhanced insurance requirements and a compensation fund that will be financed by levies on crude-oil shippers, Raitt said.

 

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[CNJRoss]

Transport Canada news release:

 

Legislation to strengthen rail safety and accountability receives Royal Assent

June 18, 2015 – Ottawa, Ontario – Transport Canada

 

To enhance railway safety and make the rail industry and crude oil shippers more accountable to Canadians, the Honourable Lisa Raitt, Minister of Transport, announced today that the Safe and Accountable Rail Act has received Royal Assent.

 

This Act amends the Canada Transportation Act to strengthen the liability and compensation regime for federally regulated railways through enhanced insurance requirements and a supplemental compensation fund financed by levies on crude oil shippers. It also amends the Railway Safety Act to increase information-sharing provisions and provide stronger oversight powers for the Minister and Transport Canada inspectors.

 

The new liability and compensation regime under the Canada Transportation Act will be brought into force one year from today. The new regime aligns with updates the Government of Canada is making to the liability and compensation regimes in other sectors of transport, including for marine tankers and oil pipelines. It is based on the "polluter pays" principle and makes railways and shippers responsible for the cost of accidents, protecting taxpayers and communities by ensuring that adequate resources are available to compensate victims and pay for environmental clean-up.

 

The amendments to the Railway Safety Act came into force today, on Royal Assent.

 

Quick Facts

• Federal railway companies must obtain and maintain legislated minimum levels of insurance, based on the type and volume of dangerous goods they carry, ranging from $25 million to $1 billion.
• A supplementary shipper-financed fund will provide compensation to victims and pay for environmental clean-up in the event that a railway accident involving crude oil exceeds the amount of insurance held by the railway. Companies will have to pay $1.65 per tonne of crude oil they ship by rail.
• Amendments to the Railway Safety Act broaden the powers of the Minister and inspectors to order railway companies and others to take specified measures or stop any activity in the interest of safe railway operations.

Quote

"I am so pleased to see these important amendments come into force. Raising standards for rail safety and accountability is a great example of how the Government of Canadabs is protecting taxpayers and safeguarding the communities along our country's rail corridors."
The Honourable Lisa Raitt,
Minister of Transport

Associated Links

• News release: Minister Raitt announces steps to further strengthen railway safety
• Backgrounder: Government of Canada introduces legislation to strengthen rail safety and accountability
• Backgrounder: Minister Raitt introduces legislation to strengthen railway safety and accountability
• Backgrounder: Government of Canada enhances railway safety; makes execs accountable, empowers employees to report concerns
• News release: Government of Canada acts to better protect communities and taxpayers in the event of rail accidents

[CNJRoss]

The Star, Toronto, CN 4/14:

Little progress on rail safety in wake of Lac Mégantic

Are Canada's rail-safety regulators in the pocket of a regulation-averse industry?

 

Transport Minister Marc Garneau said recently that rail safety is his number one priority. The federal budget pledged an extra $143 million over three years to, among other things, “support new and expanded activities to strengthen oversight and enforcement” of rail safety.

 

While this is a laudable step, fundamental problems with the rail regulatory regime remain. Toronto mayor John Tory and 17 counsellors raised some of these in a letter to the minister.

 

Not mentioned was the issue of regulatory capture, which gained widespread attention during the U.S. subprime mortgage crisis. It is generally accepted that a major cause of the crisis was that regulators were in the pocket of a regulation-averse industry.

 

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