Transportation Sector Regulatory Review Roadmap

The Transportation Sector Regulatory Review Roadmap is Transport Canada’s plan to address regulatory barriers to innovation and investment, while also supporting innovation and novel approaches in the transportation sector. The Roadmap was introduced as part of the federal government’s Targeted Regulatory Reviews. The Transportation Sector Regulatory Review Roadmap is divided into the following six (6) sections:

For more details on the regulatory initiatives contained in the Roadmap, please visit Transport Canada’s Forward Regulatory Plan webpage.

For more details on the policy, program and novel approaches, please visit Transport Canada’s webpage on Policy and Programs Initiatives and Novel Approaches page.

Section 1 – Sector Summary

The Canadian transportation system plays a central role in both the Canadian and global economy. It connects individuals and businesses with goods, services and opportunities that allow for innovation and economic growth. Canada’s transportation sector is rapidly expanding. For instance, the transportation and warehousing sector’s gross domestic product increased 4.8% in 2015, this is 1.5 times the growth rate of all other industries in Canada. Further, trends in transportation predict an increase in domestic and international air passengers as well as increases in marine and surface freight. Thus, innovation in the transportation sector is essential to ensure that it continues to be efficient, low in greenhouse gas emissions and safe and secure. However, innovation in the transportation sector must also respond to the Canadian public’s needs, including trust and confidence in the system, for it to be successful.

Through various fora, including discussions on internal trade and the Economic Strategy Tables, stakeholders expressed the challenges they face and the regulatory barriers to investment and competitiveness, including lack of alignment across provinces and territories, with key trading partners, and internationally. Canada’s successful implementation of increased trade in key priority areas, such as agri-food and natural resources, proposed by the Economic Strategy Tables, is dependent upon an efficient and modern transportation system. Innovation in the transportation sector is essential to ensure that it continues to be efficient, green, safe and secure.

Regulatory Overview

A modern, safe and efficient transportation system that is environmentally responsible is necessary for the strength and competitiveness of Canada’s economy, and is also critical in ensuring the quality of life of all Canadians. Transportation is essential both for trade and businesses and for connecting people and communities.

Transport Canada’s work supports millions of Canadian jobs and affects the movement of $1 trillion in imports and exports. As such, the department either administers or assists in administering over 50 different acts, many of which are directly related to transportation in the areas of: rail, air, marine, roads, bridges and tunnels and the transportation of dangerous goods. Enabled by these acts, there are over 400 regulations which are maintained, implemented and overseen by Transport Canada. Regulating the transportation sector is further complicated by multi-jurisdictional responsibility.

Innovation in the transportation sector advances at a rapid pace. There are many high-profile projects under development which are highly anticipated by industry and members of the public. Some noteworthy emerging innovations in transportation include automated and connected vehicles and remotely-piloted aircraft systems, also known as drones, among others.

Transport Canada updates its regulations on an ongoing basis. However, because of the high number of regulations as well as the long and complex regulatory process, many regulations have not been fully updated for some time while others have recently undergone targeted amendments.

Given the large number of regulations in Transport Canada, the department chose to focus its short- to medium-term regulatory review efforts in five key areas that were either clearly linked to innovative technologies in transportation or on which modernization activities had recently begun. As part of the Regulatory Review Initiative, Transport Canada focused its modernization efforts in five key areas: remotely piloted aircraft systems; marine safety; automated vehicles and connected vehicles; civil aviation and the Canadian Transportation Agency’s regulatory framework. Following consultation activities, issues concerning rail, transportation of dangerous goods and multiple modes or areas of transport were also identified by stakeholders and considered under this regulatory review.

Section 2 – Consultations Undertaken

During the Transportation Sector Regulatory Review, Transport Canada sought stakeholder input on regulatory barriers to innovation and investment in the Canadian transportation sector through various consultation activities. Transport Canada compiled results from recent public engagement sessions and reports; reached out to external and internal stakeholders through existing engagement activities; and conducted additional engagement sessions with industry. These consultation activities included feedback from the Canada-U.S. Regulatory Cooperation Council, the Business Council of Canada, other federal departments and agencies, small and medium enterprises, and industries from various transportation sectors.

In addition to targeted Regulatory Review engagement activities, departments and agencies also relied on previously collected stakeholder input from earlier consultations to inform the Roadmap.

Following the notice published in Part I of the Canada Gazette, requesting stakeholder comments on modernization of federal government regulations and barriers to innovation and economic growth, Transport Canada received 48 submissions from industry and the Canadian public, comprised of over 200 issues. These were reviewed and used to inform the Transport Canada Transportation Sector Regulatory Review Roadmap.

Some issues require further analysis by the department as they are complex and require Government of Canada collaboration; Transport Canada has committed to an action plan for these issues over the next three years.

The recommendations of the Economic Strategy Tables also figured prominently as part of the input received. The Economic Strategy Tables were created by the Government of Canada after the Budget 2017 announcement of industry-government collaboration focused on turning Canadian economic strengths into global advantages. Reports from the Economic Strategy Tables were released in September 2018, setting ambitious growth targets and providing recommendations to achieve their goals. These reports also offered further insight into issues affecting the transportation sector, as well as recommendations for change. Many of those recommendations have been addressed in the initiatives and proposals put forward in the Transportation Sector Roadmap.

Additionally, the Canadian Transportation Agency (CTA) sought input from Canadians on the CTA Regulatory Modernization Initiative with the goal of ensuring that the regulatory field keeps pace with changes in business models, user expectations and best practices. A full list of consultation activities is available on the CTA Consultations webpage.

The topics of discussion raised during consultation activities were varied. Some submissions included a mix of sector-wide issues that do not fall under one specific department or agency (for example, the manner in which cost benefit analyses are conducted), as well as sector-specific issues. Others took the opportunity to focus on very specific issues that have been the subject of previous departmental engagement, such as bottlenecks in Canada’s transportation supply chain.

For a summary of the feedback received during stakeholder engagement activities as part of the Regulatory Review exercise, please visit Transport Canada’s What We Heard report.

Section 3 –Transport Canada’s Transformation Strategy: Regulatory Modernization Activities

In 2017, Transport Canada introduced a Transformation Strategy, which focuses on regulatory modernization, among other elements, to modernize and improve how we deliver on our key mandate - a transportation system that is safe and secure, green, innovative, and efficient. With this strategy, Transport Canada is responding to a rapidly-evolving transportation environment (changing public and industry expectations, new and emerging risks, and opportunities for innovation and growth), by exploring ways to re-design how we are delivering our programs and services. Transport Canada is moving towards a digital approach in developing a Transport Canada-wide transformation plan focused on re-defining how we approach policy and program development, service innovation and use of data, enabled by a modern workforce, in a manner that increases public trust. The initiatives in this Roadmap are examples of how Transport Canada is transforming its regulatory framework in alignment with these objectives in the Transformation Strategy, so that it is outcome-based, risk-informed, agile and transparent, while supporting innovation and strengthening safety and security of the transportation system.

Section 4 – Transportation Issues Addressed by Transport Canada

Based on the input from stakeholders, Transport Canada grouped the issues under four (4) themes to foster innovation and investment, as follows:

  • A need for more flexibility in the regulatory framework (theme 1):

    Stakeholders in civil aviation, remotely piloted aircraft systems, marine and automated vehicles and connected vehicles sectors identified a need for more flexibility in the regulatory framework to foster innovation and investment. According to stakeholders, “one-size-fits-all” approaches can create barriers to innovation and investment. These approaches do not always consider the differences in transportation operations across industry, such as the different compliance and resource capacity realities experienced by small and medium enterprises and big enterprises. Stakeholders also stated that some prescriptive regulations are barriers to the development and implementation of emerging technologies and modern business processes;

  • A need for more coordination among jurisdictions and collaboration with industry (theme 2):

    Marine, automated vehicles and connected vehicles, and civil aviation stakeholders indicated a need for more coordination among jurisdictions and collaboration with industry to foster innovation and investment. Stakeholders mentioned the need for internal coordination: federal departments and agencies sometimes operate in silos and create administrative burden for industry and the Canadian public. Stakeholders also indicated the need for more regulatory coordination between municipal, provincial, territorial and national jurisdictions; and stated the need for international harmonization where appropriate. Additionally, stakeholders recommended an increase in collaboration with industry to ensure the adoption of modern regulatory frameworks that align with innovative technologies and business processes;

  • A need for clarity and certainty within the regulatory framework (theme 3):

    Remotely piloted aircraft systems, marine, automated vehicles and connected vehicles, and civil aviation stakeholders mentioned a need for clarity and certainty within the regulatory framework to foster innovation and investment. Stakeholders noted that parts of the regulatory framework are fragmented and lead to challenges for certainty, clarity and transparency. Vague wording and unclear definitions in the regulations were also identified as barriers to innovation and investment; and

  • A need for greater digitization of services (theme 4):

    Stakeholders across the transportation sector (including remotely piloted aircraft systems, marine, and automated vehicles and connected vehicles) noted a need for greater digitization of services to foster innovation and investment. Stakeholders mentioned the need for better organization of the information collected by Transport Canada, and recommended the use of data-collection and data-sharing digital platforms to increase operational efficiency and reduce burdens for industry.

Stakeholders identified regulatory issues in the transportation sector that Transport Canada is addressing through modernization efforts in the following areas: remotely piloted aircraft systems; marine safety; automated vehicles and connected vehicles and civil aviation; and which the Canadian Transportation Agency is addressing through regulatory modernization. Furthermore, stakeholders identified issues outside of these key areas of focus that are also addressed under this Regulatory Review. The following sections describe Transport Canada’s initiatives designed to address barriers to innovation and investment.

Remotely Piloted Aircraft Systems (RPAS)

Amending the Canadian Aviation Regulations to provide more clarity and flexibility for remotely piloted aircraft systems (RPAS)

This initiative recognizes that the absence of a regulatory framework for remotely piloted aircraft systems is limiting innovation and economic opportunity. Stakeholders stated that remotely piloted aircraft systems technology could benefit from the development of regulations which promote a flexible and performance-based approach.

Themes: A need for more flexibility (theme 1) and a need for clarity and certainty (theme 3) within the regulatory framework.

Approach: In order to address this issue, Transport Canada is proposing to amend the Canadian Aviation Regulations in two phases, to address remotely piloted aircraft systems:

  • Phase I: In January 2019, Transport Canada published Regulations Amending the Canadian Aviation Regulations (Remotely Piloted Aircraft Systems) in Canada Gazette, Part II.
  • Phase II: Beginning in 2019-2020, Transport Canada plans on expanding pilot projects, currently ongoing with aviation and technology industries, to develop and implement performance-based standards for remotely piloted aircraft systems operating beyond visual line-of-sight under low risk conditions.

The latest information on Phase II of the Canadian Aviation Regulations amendment process targeted to begin in July 2020, can be found on the Forward Regulatory Plan page.

Benefits: Phase I provides regulatory certainty to industry in relation to the use of drones and Phase II will support the acceleration of the development and adoption of drone technology by various industries, and informs additional regulatory development which will foster innovation, investment and economic opportunities for many industrial sectors.

Amending the Canadian Aviation Regulations (Phase I) to enable mainstream use of remotely piloted aircraft systems and the proposed support to Pilot Projects for Industry Use of Remotely Piloted Aircraft Systems (Phase II) were identified as early action items in the 2018 Fall Economic Statement.

Introducing online licensing and examinations for remotely piloted aircraft systems (RPAS)

This initiative addresses the need for digitization of service delivery and business processes to foster innovation and investment. The Economic Strategy Table on Digital Industries stated that the lack of digitization in service delivery and business processes create a barrier to innovation and investment.

Theme: A need for greater digitization of services (theme 4).

Approach: To address this issue, Transport Canada implemented in January 2019, the Drone Management Portal, a digital solution that provides Canadians with end-to-end services for drone registration, the completion of online exams and the issuance of pilot certificates. The department also launched a safety campaign with digital Drone Safety resources that provide plain language explanations on safety and the regulations. This campaign will also include non-digital resources. An ongoing social media campaign has also been launched, alongside informative online videos. Furthermore, an online Drone Incident Report Form is available to the public for the reporting of remotely piloted aircraft systems incidents.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: This online platform improves service delivery and business processes for the Canadian public and the industry. It enhances timeliness and efficiency, while reducing costs, promotes clarity and certainty within the regulatory framework for remotely piloted aircraft systems, and provides data pertaining to remotely piloted aircraft systems’ safety to Transport Canada.

Marine Safety

Providing more clarity, flexibility and harmonization under the Marine Safety Regulatory Modernization initiative

This proposed initiative supports the need for more clarity and flexibility in the marine legislative and regulatory frameworks and harmonization with international standards, such as the International Maritime Organization (IMO), to improve innovation and investment in Canada. Stakeholders stated the Canadian economy could benefit should the Minister of Transport issue certificates for new technologies that have proven to be successful through testing.

Themes: A need for more flexibility in the regulatory framework (theme 1), a need for more coordination among jurisdictions and collaboration with industry (theme 2), and a need for clarity and certainty within the regulatory framework (theme 3).

Approach: Transport Canada’s marine sector has multiple projects under the Marine Safety Regulatory Modernization initiative proposed to begin in 2019, which aims to harmonize multiple standards and publications into single publications for ease of reference and update regulations to align with legislation and international standards and conventions.

The latest information can be found on the Forward Regulatory Plan page.

Benefits: The proposed amendments to the marine regulatory framework will address safety issues identified by the Transportation Safety Board; improve harmonization with international conventions; and increase clarity and certainty of the marine regulatory framework. They will result in a modern regulatory framework that supports long-term growth and competitiveness by removing regulatory burdens for Canada’s marine sector and transition away from a fully prescriptive regime to one that is progressively risked-based.

Supporting digital service delivery and harmonization under the Marine Safety and Security Service Delivery Modernization Initiative

This proposed initiative addresses the need for digitization of service delivery, and alignment with international best practices and conventions to foster innovation and investment in Canada. Stakeholders stated that the Canadian economy could benefit from the use of current technologies and that greater access to data is required for efficiency, transparency and better decision making. The Economic Strategy Table on Digital Industries stated that the lack of digitization in service delivery and business processes create a barrier to innovation and investment.

Theme: A need for greater digitization of services (theme 4).

Approach: The Marine Safety and Security Service Delivery Modernization initiative is proposed to modernize service delivery practices and processes over a three-year period, beginning in 2019 and ending in 2022. Through this proposed initiative, Transport Canada is moving from burdensome paper-based processes to automated and digitized client centred processes. Services delivered under various marine sector programs will be examined to improve the delivery and help eliminate burdensome processes involving outdated technology. This proposed initiative will also involve collaboration with other jurisdictions to harmonize programs linked with international markets.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: The Marine Service Delivery Modernization initiative proposes to adopt modern technology to improve digitization in key programs resulting in information flowing more quickly and efficiently between Transport Canada, industry and the Canadian public. This approach will also increase the effectiveness of data collection for evidence-based policy, remove data duplication, and strengthen reporting capabilities in the marine sector.

Automated Vehicles and Connected Vehicles (AV/CV)

Introducing more flexibility by the Strengthening Motor Vehicle Safety for Canadians Act

This proposed initiative recognizes that current standards prescribe specific technologies and vehicle requirements that could impede motor vehicle innovations. Stakeholders indicated that certain areas in automated vehicles and connected vehicles are not covered in the existing regulations and suggested the need for policy direction and a framework to provide certainty for industry and maintain a high level of safety for Canadians.

Theme: A need for more flexibility in the regulatory framework (theme 1).

Approach: In March 2018, the Strengthening Motor Vehicle Safety for Canadians Act was amended to strengthen the Minister of Transport’s enforcement and compliance authorities in the area of road safety and afford greater flexibility to keep pace with emerging technologies in the automotive industry, including automated vehicles and connected vehicles.

The department will continue to develop corresponding regulatory changes in support of these new provisions in an effort to bolster Canada’s capacity to welcome automated vehicles and connected vehicles while ensuring the safety of travellers using Canadian roads. Proposed regulatory amendments for consultation in 2020, will include modernized exemption/interim order provisions; an Administrative Monetary Penalty Regime; and new powers to order recalls at no cost to the consumer.

The latest information can be found on the Forward Regulatory Plan page.

Benefits: The flexible and aligned regulatory framework will allow the industry to introduce new technologies and provide competitive advantages to Canada.

Introducing flexible policy frameworks for automated vehicle and connected vehicle (AV/CV) technology

Theme: A need for more flexibility in the regulatory framework (theme 1).

This initiative highlights that these policy frameworks support the need for Transport Canada to adopt a flexible, non-regulatory, and innovation-friendly approach to automated vehicle and connected vehicle technology. Stakeholders indicated that certain areas in automated vehicles and connected vehicles are not covered in the existing regulations and suggested the need for policy direction and a framework to provide certainty for industry and maintain a high level of safety for Canadians.

Approach: Recognizing the rapid rate at which automated vehicle and connected vehicle technologies are advancing, Transport Canada is developing non-regulatory tools to support industry efforts, and inform the development of new regulations. On February 25, 2019, Transport Canada published two important guidance documents on automated vehicle and connected vehicle safety for national stakeholders:

These important documents directly support the safety objectives of the overarching Automated and Connected Vehicles Policy Framework for Canada, which sets out a nationwide approach, centred on key principles, to promote a safer, more efficient and innovative transportation system in Canada. They also complement important trial guidelines, including Transport Canada’s Testing Highly Automated Vehicles in Canada: Guidelines for Trial Organizations and the Canadian Jurisdictional Guidelines for the Safe Testing and Deployment of Highly Automated Vehicles, which promote a minimum set of safety practices and support a consistent national approach to testing and deployment.

These resources can be accessed on the Government of Canada’s new, dedicated Automated and connected vehicles section of the Transport Canada website, and are further complemented by Transport Canada automated vehicle and connected vehicle trial guidelines which promote Canada as a destination for testing automated vehicles and connected vehicles.

Going forward, Transport Canada will continue to focus its efforts on providing national leadership and guidance to support the safe testing and deployment of automated vehicles and connected vehicles, including guidance to be issued in fall 2019 on cyber security and scoping papers on safety considerations for truck platooning and automated shuttles to be issued in fall 2019.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: These flexible policies provide broad direction, but move away from “one-size-fits-all” and prescriptive rules. They provide a shared national vision for the safety of automated vehicle and connected vehicle technology.

Amending regulations for the importation of non-compliant motor vehicles to provide more flexibility

Theme: A need for more flexibility in the regulatory framework (theme 1).

This proposed regulatory amendment process will address the need for more flexibility concerning the importation of automated and connected technologies. Stakeholders importing foreign automated and connected technologies and vehicles for the purposes of exhibition, demonstration, evaluation or testing are required to export or destroy imports after a period of one year. This requirement is cost prohibitive and does not always allow sufficient time to evaluate the technology.

Approach: Recent amendments to paragraph 7(1) (a) of the Motor Vehicle Safety Act support greater flexibility in the context of importation for the purposes of exhibition, demonstration, evaluation or testing. Specifically, a vehicle or equipment may now “remain in Canada for not longer than one year or such other period as the Minister specifies in relation to the vehicle or equipment.” Transport Canada is working with industry on a case-by-case basis to support the importation of non-compliant vehicles for a period of more than one year for automated vehicle and connected vehicle testing, as per paragraph 7(1) (a) of the Motor Vehicle Safety Act. A regulatory amendment was proposed on May 19, 2018 in Canada Gazette, Part I, to facilitate temporary importations for more than one year, with final amendments anticipated for publication in late 2019.

The latest information can be found on the Forward Regulatory Plan page.

Benefits: The proposed initiative will facilitate and reduce costs for industry on the importation and testing of non-compliant motor vehicles. With these proposed measures, industry can test and evaluate imported technologies for more than one year, the results of which could inform rule-making.

Enhancing harmonization, coordination and collaboration for automated vehicle and connected vehicle (AV/CV)

Many Transport Canada initiatives support the need for harmonization, collaboration and coordination due to complexities of cross-jurisdictional responsibilities in the motor vehicle sector and support the development of a Federal Automated Vehicle and Connected Vehicle Strategy. Stakeholders highlighted the importance of harmonizing automated vehicle and connected vehicle requirements across provinces, territories and municipalities throughout Canada, as well as with major trade partners such as the United States. Stakeholders also indicated that continued collaboration between Transport Canada and the industry is essential to ensure the development of safe regulatory approaches that allow industry innovation.

Theme: A need for more coordination among jurisdictions and collaboration with industry (theme 2).

Approach: Transport Canada continues to work closely with national stakeholders and international partners to share new research, information, lessons learned, best practices, and to identify additional opportunities to work together to advance shared automated vehicle and connected vehicle initiatives, in full recognition of their respective jurisdictional considerations. At the domestic level, Transport Canada published in 2018, a suite of policy and guidance documents that clearly articulate the shared vision for road safety in Canada, and discuss jurisdictional responsibilities. Furthermore, efforts have been made to align key safety documents, such as the recently published Canada’s Safety Framework for Automated and Connected Vehicles and the Safety Assessment for Automated Driving Systems in Canada, with similar processes in the United States, to better facilitate automated vehicle and connected vehicle alignment and interoperability. Additionally, Transport Canada actively participates in international fora for example, the United Nations World Forum for Harmonization of Vehicle Regulations, to discuss key regulatory issues related to the introduction of automated vehicles and connected vehicles.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: These initiatives will help support domestic and international work to develop harmonized regulations to accommodate automated vehicles and connected vehicles, in turn contributing to improved trade, increasing opportunities for these stakeholders and supporting competitiveness and innovation. Ongoing collaboration and involvement with industry will clarify regulatory requirements for industry, and identify future directions for emerging technologies. These efforts will facilitate the safe introduction and use of automated vehicles and connected vehicles for the benefit of all road users, and provide Canadian manufacturers with the opportunity to take advantage of economies of scale.

Introducing the Enhanced Road Safety Transfer Payment Program to support national alignment across jurisdictions on road safety issues including automated vehicles and connected vehicles (AV/CVs)

Theme: A need for more coordination among jurisdictions and collaboration with industry (theme 2).

This program supports the need for a consistent application of the National Safety Code. Given the shared jurisdiction for road safety, stakeholders have indicated the need for national coordination to ensure that new policies and regulations for the automated vehicle and connected vehicle sector are aligned and foster emerging technologies, as well as international and intergovernmental trade and investment.

Approach: Transport Canada continues to work with national stakeholders to: facilitate new research and testing; share information and best practices; and release safety-focused guidance, in support of a shared national vision for automated vehicle and connected vehicle safety in Canada. This work will directly inform the development of new policies, programs and regulations, which will be undertaken in consultation with national stakeholders.

Notably, the proposed Enhanced Road Safety Transfer Payment Program will, beginning in 2019-2020 and ending in 2021-2022, bolster the capacity of provinces and territories to address trade barriers and national road safety challenges such as the consistent application of National Safety Code standards and entry level training for commercial motor vehicle drivers across Canada.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: The Enhanced Road Safety Transfer Payment Program will: promote a national alignment of road safety issues, thereby decreasing road safety risks; directly inform the development of new road safety policies and regulations (including those related to automated vehicles and connected vehicles); promote domestic economic growth, trade, and innovation; and support international alignment and Canada’s competitiveness on a global scale.

Enhancing clarity in automated vehicle and connected vehicle (AV/CV) requirements and motor vehicle safety

Stakeholders mentioned having to mobilize many resources and costs to ensure compliance with the automated vehicle and connected vehicle regulatory framework.

Theme: A need for clarity and certainty within the regulatory framework (theme 3).

Approach: Under many initiatives, Transport Canada has developed guidance, which will be published in spring 2019, and agreements to help industry, provinces and territories integrate modernized processes designed to facilitate the adoption of automated vehicles and connected vehicles in Canada.

Transport Canada will continue to engage national stakeholders on key issues related to automated vehicles and connected vehicles, with a view to supporting the development of new regulations that accommodate automated vehicles and connected vehicles. In the interim, Transport Canada will continue to advance the development of guidance, tools, and research and testing to support the safe and secure testing, deployment and competitiveness of automated vehicles and connected vehicles. Together, these tools will provide key information to help inform new regulatory requirements for automated vehicles and connected vehicles and will be accessible from the new automated and connected vehicles section of Transport Canada’s website by spring 2019.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: These approaches will enhance Canada’s ability to adopt emerging vehicle technologies, provide clarity on requirements on motor vehicle and connected vehicles technologies, while ensuring the safety of travellers using Canadian roads.

Digitizing services for automated vehicles and connected vehicles (AV/CV) and motor vehicle safety

Transport Canada is digitizing business processes and service delivery for automated vehicles and connected vehicles to foster innovation and investment. A digital infrastructure will allow testing of automated vehicle and connected vehicle technologies. Stakeholders stated that digitization throughout business processes and service delivery is essential to ensure that services are timely and in keeping with industry standards.

Theme: A need for greater digitization of services (theme 4)

Approach: Transport Canada is modernizing and digitizing its services for automated vehicles and connected vehicles. In support of digital transformation efforts, Transport Canada has developed an online exemption process which was publicly launched in May 2019, bolstering the web presence for automated vehicle and connected vehicle safety, creating an online policy hub by timeline, and developing the requirements and a recommended operating model for a Canadian Security Credential Management System by March 2020, as well Cyber Security Guidance anticipated for 2019 regarding automated vehicles and connected vehicles. Transport Canada will work collaboratively with all levels of government and industry stakeholders to develop guidelines to support industry in ensuring that cyber security practices are incorporated into the design, testing and deployment of these vehicles.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: Transport Canada’s digitization of services through online platforms will improve service delivery for Canadians. The Security Credential Management System will allow industry to design connected vehicles while following harmonized standards between Canada and the United States, and reduce manufacturing costs.

The introduction of Cyber Security Guidance for Automated and Connected Vehicles (AV/CV) was identified as an early action in the 2018 Fall Economic Statement.

Civil Aviation

Amending the Canadian Aviation Regulations to provide more flexibility, clarity and harmonization

The Canadian Aviation Regulations have not been holistically modernized since 1996 resulting in regulations that are outdated, inflexible and are not risk-based or harmonized with international standards. These proposed regulatory amendments support the need for more flexibility and clarity in the Canadian Aviation Regulations, and harmonization with international standards in the aviation sector. Stakeholders indicated that “one-size-fits-all” and prescriptive regulations limit the implementation of new and emerging technologies in the aviation sector.

Themes: A need for more flexibility in the regulatory framework (theme 1), a need for more coordination among jurisdictions and collaboration with industry (theme 2), and a need for clarity and certainty within the regulatory framework (theme 3).

Approach: Transport Canada is proposing to modernize the Canadian Aviation Regulations by alleviating burden on the industry, harmonizing its regulatory framework with international best practices, and addressing current and future needs in the aviation sector by introducing greater clarity. Completion of the modernization is expected by 2021-2022.

The latest information can be found on the Forward Regulatory Plan page.

Benefits: The initiative will maintain a safe air transportation system for Canadians and respond to innovation and investment by promoting flexibility, clarity, regulatory alignment, and collaboration with industry.

Proposed amendments to the Canadian Aviation Regulations to Allow the Use of Personal Electronic Devices on Board Aircraft, which will be published for consultation in early 2019, were identified as an early action item in the 2018 Fall Economic Statement and can be found on the Forward Regulatory Plan page.

Proposing ministerial orders for the Minister of Transport under the Aeronautics Act

This proposal addresses provisions in the Canadian Aviation Regulations prescribing outdated technologies or processes. As technology in the aviation sector evolves rapidly, stakeholders mentioned the need for more flexibility within the legislative and regulatory framework.

Approach: Transport Canada is proposing to seek Governor in Council approval for Ministerial Orders for the Minister of Transport under subsection 4.3(2) of the Aeronautics Act to modernize the delivery of programs and services to better serve Canadians. Pre-publication in Canada Gazette, Part I is expected in late 2019.

Theme: A need for more flexibility in the regulatory framework (theme 1).

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page and on the Forward Regulatory Plan page.

Benefits: The proposed ministerial orders will grant more flexible authority to the Minister of Transport in very specific safety related areas that are constantly evolving.

Addressing labour shortage in the aviation sector by amending the Canadian Aviation Regulations to promote flexibility

Stakeholders have stated that using technology for training and more modern and flexible approaches would help address the aviation labour shortage.

Themes: A need for more flexibility in the regulatory framework (theme 1) and a need for greater digitization of services (theme 4).

Approach: Transport Canada is working closely with stakeholders, including Indigenous organizations, all levels of government, women’s organizations, and private sector partners to identify solutions. To build momentum, Transport Canada will leverage these collaborative stakeholder relationships to identify and showcase potential solutions. Transport Canada proposes, beginning in 2019-2020, to review the Canadian Aviation Regulations with a view to including the use of emerging technologies and best practices in flight training, while ensuring the safety and security of the Canadian public.

The latest information on the amendments to the Canadian Aviation Regulations can be found on the Forward Regulatory Plan and on the Policy and Program Initiatives and Novel Approaches pages.

Benefits: Transport Canada’s approach will help address labour shortage in the aviation sector and improve regulatory flexibility by allowing modern approaches to flight training.

The Canadian Transportation Agency (CTA)

Updating regulations for aviation and rail under the Regulatory Modernization Initiative

The Regulatory Modernization Initiative reflects the need to update the regulations for which the Canadian Transportation Agency is responsible. Stakeholders support updating the regulations for which the Canadian Transportation Agency is responsible, in order to ensure that they keep pace with existing and emerging business practices, improve clarity and reduce administrative burden.

Themes: A need for more flexibility (theme 1) and a need for clarity and certainty (theme 3) within the regulatory framework.

Approach: The Canadian Transportation Agency is conducting a Regulatory Modernization Initiative which will be implemented in 2019. The initiative encompasses four components: Accessible Transportation (Part 1), Air Transportation Regulations (Part 2), Air Passenger Protection Regulations (Part 3), and Rail Transportation (Part 4). Parts 2 and 4 of the initiative are included in the Transportation Sector Regulatory Review Roadmap. These parts involve amending the Air Transportation Regulations and rail-related regulations, guidance materials and tools.

An overview of timelines for each part of the Regulatory Modernization Initiative is summarized as follows:

  • Part 1: Accessible Transportation
    • Consultations closed September 15, 2017
    • Draft regulations published in Canada Gazette, Part I on March 9, 2019
    • Final regulations expected by summer 2019
  • Part 2: Air Transportation Regulations (included in Transportation Sector Regulatory Review Roadmap)
    • Draft regulations published in Canada Gazette, Part I on December 22, 2018
    • Final regulations expected by summer 2019
  • Part 3: Air Passenger Protection Regulations
    • Consultations closed August 28, 2018
    • Draft regulations published in Canada Gazette, Part I on December 22, 2018
    • Final regulations published in Canada Gazette, Part II on May 29, 2019
  • Part 4: Rail Transportation (included in Transportation Sector Regulatory Review Roadmap)
    • Consultations closed September 30, 2018
    • Draft regulations published in Canada Gazette, Part I on March 30, 2019
    • Final regulations expected by summer 2019

The latest information can be found on the Canadian Transportation Agency’s Forward Regulatory Plan page.

Additional information on the business processes can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: The Canadian Transportation Agency’s modernization of the Air Transportation Regulations and rail-related regulations will reduce barriers to innovation and investment.

Additional Issues

Enhancing digitization across the transportation sector

Many modernization and digitization activities across the transportation sector address the need for digitization in service delivery and business processes to keep pace with rapidly changing industry. The Economic Strategy Table on Digital Industries stated that the lack of digitization in service delivery and business processes create a barrier to innovation and investment.

Themes: A need for more flexibility in the regulatory framework (theme 1), a need for more coordination among jurisdictions and collaboration with industry (theme 2), a need for clarity and certainty within the regulatory framework (theme 3), and need for greater digitization of services to (theme 4).

Approach: To help industry across the transportation sector, Transport Canada is modernizing and digitizing much of its information technology (IT), such as: analog to digital transformation, myTC Account, Security Reliability Clearance Control System, Multimodal Personnel Document Issuance System, Medical Information System, Civil Aviation Online Payment Services, myTC Oversight, and Multimodal Enforcement Reporting System. Transport Canada is offering end-to-end digital service delivery by 2025.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: These digital initiatives will provide services quickly and effectively to the industry and the Canadian public.

Conducting a Transportation Sector Regulatory Review

The proposed review supports stakeholder needs for addressing unnecessary regulatory barriers across the transportation system as it affects the supply chain. Stakeholders have stated that a modal approach to the transportation sector may be limiting industry’s modern business practices to the movement of goods and therefore limiting Canada’s potential for economic growth in the transportation sector. Transport Canada has established an Office of Regulatory Innovation to lead this initiative.

Themes: A need for more flexibility in the regulatory framework (theme 1), a need for more coordination among jurisdictions and collaboration with industry (theme 2), a need for clarity and certainty within the regulatory framework (theme 3), and need for greater digitization of services (theme 4).

Approach: Transport Canada is proposing to conduct a three-year review which will be finalized in 2021-2022, using a systemic and user-centric approach, of the transportation regulatory system as it relates to the Canadian supply chain. The proposed review will examine unnecessary regulatory barriers that transcend modes of transportation and may impede the flow of goods during transport through the supply chain. The proposed review will also consider green and innovative technologies being introduced to manage the logistics of transportation through the supply chain and will identify best regulatory practices to facilitate these. During the proposed review, Transport Canada will use an inclusive and collaborative approach by working with the Canada-U.S. Regulatory Cooperation Council and engage other federal departments, other levels of government, industry members and experts.

In addition to the proposed regulatory review of the transportation sector, the Office of Regulatory Innovation will coordinate the implementation of the Transportation Sector Regulatory Review Roadmap and develop an action plan to address issues raised by stakeholders requiring further analysis by 2021-2022; this includes issues submitted by stakeholders that are not addressed by the initiatives in this Roadmap. An overview of the types of issues requiring further analysis can be found in Section 6.

The Office of Regulatory Innovation will work towards future-ready regulations that include the adoption of the following lenses: digitization, flexible approaches to foster innovation and investment, risk-based approaches and cost recovery, where applicable.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: The proposed review will promote future-ready regulatory frameworks that will facilitate the movement of goods throughout the supply chain. The result will be a regulatory environment that reflects current business practices and will foster innovation and economic growth, while ensuring the safety and security of the Canadian public.

Modernizing Canada’s Regulatory Frameworks was announced in the 2018 Budget.

Section 5 – Transport Canada’s Novel Approaches

Transport Canada is conducting novel approaches in the following modes and areas of the transportation sector: remotely piloted aircraft systems; automated vehicles and connected vehicles; civil aviation; and transportation of dangerous goods. These novel approaches inform policy and regulatory development, and promote collaboration between Transport Canada and industry.

Remotely Piloted Aircraft Systems (RPAS)

Introducing test ranges for remotely piloted aircraft systems (RPAS)

There is a need for testing environments for automated-piloted aircraft technologies to facilitate airspace tests, collaboration with industry on remotely piloted aircraft systems requirements, and testing in Canadian weather conditions.

Approach: Transport Canada is partnering with the Canadian industry and other federal departments and agencies to conduct remotely piloted aircraft system test beds in environments supporting ongoing research and trials within visual line-of-sight and beyond visual-line-of-sight flight. These test beds are located in the Unmanned Aerial System Centre of Excellence test range in Alma (Quebec), and the Foremost Centre for Unmanned Systems test range in Foremost (Alberta).

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: Supports the acceleration of the development and adoption of drone technology by various industries. These test beds provide industry with a controlled risk environment for testing emerging technologies. They introduce partnership opportunities between federal departments and agencies, industry and academia.

Support Test Ranges for Remotely Piloted Aircraft Systems was identified as an early action item in the 2018 Fall Economic Statement.

Conducting pilot projects for beyond visual line-of-sight for remotely piloted aircraft systems (RPAS)

There is a need for additional research and development for remotely piloted aircraft systems operating beyond visual line-of-sight, to inform the basis of a regulatory framework that would allow for routine operation and deployment of remotely piloted aircraft systems.

Approach: Transport Canada is currently partnering with Canadian industry and other federal departments and agencies to conduct remotely piloted aircraft system tests. These tests are being performed in environments supporting research and trials of operations beyond visual-line-of-sight. Test ranges are located in Alma (Quebec) at the Unmanned Aerial System Centre of Excellence, and in Foremost (Alberta) at the Foremost Centre for Unmanned Systems. The department is also collaborating with the National Research Council to develop a multi‑year approach that would support the development of future beyond-visual-line-of-sight regulations. Furthermore, the department has ongoing collaboration and coordination with the U.S. Federal Aviation Administration and the Alliance for System Safety of UAS through Research Excellence (ASSURE).

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: This would support the acceleration of the development and adoption of drone technology by various industries, as well as regulatory development which is anticipated for pre-publication in Canada Gazette, Part I in July 2020 and Canada Gazette, Part II by March 2022. The test ranges for remotely piloted aircraft systems provide a controlled risk environment for testing emerging technologies with industry. They introduce partnership opportunities between federal departments and agencies, industry and academia.

Support Pilot Projects for Industry Use of Remotely Piloted Aircraft Systems was identified as an early action item in the 2018 Fall Economic Statement.

Accelerating commercial testing of remotely piloted aircraft systems (RPAS) operating beyond visual line-of-sight

There is a need for a flexible regulatory framework for remotely piloted aircraft systems, and more collaboration with industry to keep pace with rapidly emerging technologies and capabilities of remotely piloted aircraft systems.

Approach: Transport Canada currently has four pilot projects underway with industry for remotely piloted aircraft systems to inform future policy and regulations. These pilot projects test remotely piloted aircraft system technology for package delivery in remote communities and long-range infrastructure inspection. Their results will provide safety procedures, explore the deployment of remotely piloted aircraft systems beyond visual line-of-sight, and enable future infrastructure, in Canadian weather. Transport Canada is proposing to conduct additional pilot projects, beginning in 2019-2020, to supplement the existing pilots underway, focusing on specific conditions in higher-risk operations in partnership with aviation and technology industries.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: The pilot projects will inform Transport Canada’s future evidence-based regulations on low‑risk commercial beyond visual line-of-sight operations. Through these projects, industry will also gain real-world experience in operating remotely piloted aircraft systems and develop safe practices for remotely piloted aircraft systems operating beyond visual line-of-sight in Canadian climates. The proposed additional pilot projects will continue to strengthen engagement with stakeholders and the information gained will accelerate the implementation of a flexible, clear and predictable regulatory framework; bring remotely piloted aircraft system technology to the market; and support the use of remotely piloted aircraft systems across different sectors in Canada.

Automated Vehicles and Connected Vehicles (AV/CV)

Introducing a Cooperative Truck Platooning pilot project

Transport Canada is proposing a pilot project to support the introduction of new technologies that enhance the safety, efficiency and environmental performance of commercial vehicles while also attracting and retaining new drivers.

Approach: Transport Canada is proposing a pilot project to test truck platooning technology beginning in 2019-2020, including trials on Canadian public highways. Through this initiative, Transport Canada is proposing to work with industry, academia, and provincial, territorial and municipal governments to evaluate whether platooning can be safely, effectively, and productively deployed on Canadian roads, in a variety of climate conditions. A scoping paper on safety considerations is anticipated for fall 2019.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: Truck platooning technology has the potential to accelerate Canada’s efforts to meet its 2030 greenhouse gas reduction commitments and is expected to reduce drive workloads and to reduce driver fatigue.

This proposed truck platooning pilot project will also increase evidence to inform policies and regulations on commercial vehicle operations and on the use of automated vehicles and connected vehicles in Canadian jurisdictions. It will enhance regulatory alignment and coordination across Canadian jurisdictions and facilitate the deployment of truck platooning technology. Truck platooning could reduce greenhouse gas emissions, promote automated vehicle and connected vehicle technologies, and contribute to Transport Canada’s policies on automated vehicles and connected vehicles. Platooning technology could also help address labour shortages as advanced technology could enhance the appeal of the trucking profession.

The Cooperative Truck Platooning System pilot was identified as an early action item in the 2018 Fall Economic Statement.

Civil Aviation

Proposing a pilot project to increase and evaluate delegation of authority to Canadian aircraft manufacturers issuing flight permits

There is a need for greater flexibility in the regulatory framework for Canadian aircraft manufacturers to promote emerging technology in the aviation sector.

Approach: Currently, Transport Canada must issue one-off flight permits to aircraft being operated by Canadian aircraft manufacturers for aircraft that are under the custody and control of that manufacturer. This includes test flights or demonstration flights for the purpose of selling aircraft to prospective buyers.

To enhance service delivery, Transport Canada is proposing a one-year pilot project to grant the authority to Minister Delegates to issue one-off flight permits, on behalf of the minister, to aircraft being operated by the manufacturer. This pilot project will involve only select Canadian aircraft manufacturers. The applicable Minister Delegates will be trained by Transport Canada, and the flight permits will be limited to a controlled environment for aircraft under the custody and control of that manufacturer.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: This proposed pilot project will enhance flexibility and agility in the regulatory framework by training and granting authority to Minister Delegates by allowing them to issue flight permits for use during the manufacturing process in a controlled environment. This proposed pilot project will work toward enhancing efficiencies and service levels promoting innovation and investment, and providing economic benefit for Canadian aircraft manufacturers

Transportation of Dangerous Goods

Introducing a regulatory sandbox for dangerous goods electronic shipping documents

The Transportation of Dangerous Goods Regulations require a physical paper shipping document to accompany dangerous goods during transit. A shipping document provides a summary of the dangerous goods being transported and contains essential information used for emergency response to an incident. Stakeholders have communicated the need for Transport Canada to consider adopting electronic shipping documents as an alternative to physical paper documents in its regulations as printing these documents can be administratively burdensome, inefficient and redundant for businesses who already have wireless communication systems in place.

Approach: Transport Canada is proposing a three-year regulatory sandbox in partnership with the Pipeline and Hazardous Materials Safety Administration (PHMSA), from the United States Department of Transportation, industry, other federal departments and agencies, and provincial and territorial jurisdictions. This proposed regulatory sandbox will, beginning in 2019-2020 and ending in 2021-2022, evaluate the feasibility, effectiveness, costs, and benefits of using electronic shipping documents by allowing participants to use digital shipping documents in a controlled environment. Permission to participants will be granted for a specific period of time in the form of an equivalency certificate provided that they meet safety and information-sharing criteria.

The latest information can be found on the Policy and Program Initiatives and Novel Approaches page.

Benefits: This proposed regulatory sandbox will identify timely and flexible solutions for technological advancement in the transportation of dangerous goods and provide the evidence necessary for Transport Canada to modernize the Transportation of Dangerous Goods Regulations with paperless alternatives. Paperless practices will improve supply chain management, reduce paper-burden, and increase compliance and efficiency for industry nationally and internationally.

Section 6 – Transportation Issues Not Addressed by the Transportation Sector Regulatory Review Roadmap

Issues Out-of-Scope

Transport Canada was not able to address all stakeholder comments received through the Regulatory Review consultation activities. Some comments were out-of-scope, as they fell outside of the Minister of Transport’s authority such as, suggestions to amend taxation law, amendments to the Criminal Code of Canada, issues under provincial and territorial regulations or were legislative in nature.

Issues Not Being Addressed

After reviewing stakeholder comments, Transport Canada determined that some issues falling under its jurisdiction have already been considered and addressed under previous departmental initiatives. As an example, a stakeholder indicated that Transport Canada should consider delegating authority under Subpart 4 of Part VI of the Canadian Aviation Regulations. However, in December 2009, the Minister of Transport confirmed that the certification and oversight of private operators were core responsibilities of the department that should not be held by the private sector. On March 16, 2010, the Minister announced that Transport Canada would take back the certification and oversight activities of private operators regulated pursuant to Subpart 4 of Part VI of the Canadian Aviation Regulations.

Issues Requiring Further Analysis

After reviewing consultation results, Transport Canada concluded that some issues falling within the scope of the regulatory review exercise would require deeper analysis and, in some cases, possible further consultation with stakeholders. Transport Canada has committed, as outlined in the Transportation Sector Regulatory Review initiative, to review these issues and create an action plan over a three-year period. For example, Transport Canada received submissions related to border management which will require discussion with the Canada Border Services Agency.

Several stakeholders, as well as the Standing Senate Committee on Transport and Communications, have identified the need for facilities to test automated and connected vehicles to support the collaborative co-development of regulations and non-regulatory frameworks. Transport Canada continues to explore best options for the development of a simulated urban environment to meet these needs.

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