The Federal Regulator’s Perspective

1. The Federal Regulator’s Perspective Industrial Railway Safety Conference Fort Saskatchewan, Alberta April 28, 2015

2. Accelerated Regulations • Currentlyin force • Grade Crossings Regulations (staggered implementation) • Railway Operating Certificate Regulations • Railway Safety Administrative Monetary Penalties Regulations • Amendments to the Transportation Information Regulations • Railway Safety Management System Regulations, 2015 (SMS) • Focus • Implementation and program development • Guidance and training to Rail Safety personnel • Support to industry

3. Future Regulatory Priorities • New regulations: • Amendments to Administrative Monetary Penalties (AMPs) Regulations (SMS, ROC and GCR) • Prevention and Control of Fires • Locomotive Voice/Video Recorders (Pilot Project) • Environmental Management Plans • Access Control ? • New or revised rules: • Rules governing Key Routes and Key Trains • Rules on Train Securement • Canadian Rail Operating Rules (CROR)

4. Bill C-52: The Safe and Accountable Rail Act • Tabled in Parliament on February 20, 2015 • Proposes amendments to the Canada Transportation Act and the Railway Safety Act • Proposed amendments to the Railway Safety Act: • part of the Government of Canada’s commitment to strengthen oversight and increase collaboration between communities and the railway industry; and • further address issues raised in the Transportation Safety Board’s final report on the Lac-Mégantic derailment. • Full text is available on the Parliament of Canada website http://www.parl.gc.ca/LegisInfo/BillDetails

5. Bill C-52: The Safe and Accountable Rail Act • Information sharing • New regulation-making authority to facilitate the sharing of information between third parties. • Reimbursement of costs for fires • Allows a province/municipality to request CTA to determine if railway operations were responsible and if so, order the company to reimburse costs incurred in responding to the fire. • Safety Management Systems • New Ministerial Order to require a company to take corrective measures if the implementation of its SMS risks compromising safety. • New Authorities • Expanded authorities for the Minister to order any company, road authority or municipality to stop any activity, follow procedures or take corrective measures in the interest of safe railway operations. • Enhanced railway safety inspector powers to issue a Notice or Notice and Order to any company, road authority or municipality in the event of a threat or immediate threat to safety.

6. Other Proposed Amendments: Railway Safety Act • Confidentiality of information • Allow Transport Canada to protect information provided to the Minister as confidential, unless otherwise specified. • Fatigue science • Repeal the definition of fatigue science to allow the SMS Regulations to include broader requirements related to fatigue management. • Access control • Regulation-making authority to place an obligation on adjacent land owners to put up a fence or sign in certain circumstances that compromise the safety of railway operations. • General and Board Orders • Clarify that old General and Board Orders made under previous rail safety related legislation continue to be in effect under the Railway Safety Act. • Other clarifications and administrative amendments to further support a robust railway safety regulatory regime, such as changes to definitions, phrasing in both official languages and regulatory authorities.

7. SMS Transition Plan • Pre-April 1, 2015 – railway companies are to make their Annual Submissions in accordance with the current SMS Regulations by March 1, 2015. • April 1, 2015 – repeal of the current SMS Regulations and coming into force of the SMS Regulations, 2015. • As of April 1, 2015 – TC will fully enforce Initial Key Provisions: • Notification of accountable executive and submission of accountable executive’s signed declaration • Notification of operational changes • Conduct Risk Assessments • April 1, 2015 – New Companies – Required to have a full SMS on Day 1 of operations (except for setting Targets and Initiatives - six months after day 1).

8. SMS Transition Plan • April 1 to June 1, 2015 – TC will follow up on any outstanding findings from previous audits to ensure corrective actions have been implemented. • April 1 to October 1, 2015 –Implementation Phase I – TC will promote compliance on new regulations and inform companies on new requirements (with special focus on local railway companies) • October 1, 2015 - March 31, 2016– Implementation Phase II – Companies expected to begin following their procedures. TC will continue to promote, educate and may take enforcement action as required. • On October 1, 2015 – TC will request that companies submit their Index. • As of April 1, 2016 – Implementation Phase III – Full enforcement. Companies are expected to have their full SMS in place.

9. SMS Transition Plan • On April 1, 2016 – Railway companies and local railway companies operating on main-track will be requested to submit their Targets and Initiatives for Year 2016. • On March 1, 2017 – Railway companies and local railway companies operating on main-track will be requested to submit their Annual Report. • On March 1, 2018 – Railway companies and local railway companies operating on main-track will be requested to submit their latest Internal Audit Report. • Industry guidance: • Comprehensive Industry Guide • Template for companies new to SMS • Template for notifying TC of operational change

10. Questions? RDIMS #: 10568780