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Notice

Vol. 136, No. 29 — July 20, 2002

Regulations Amending the Notices of Uninsured Deposits Regulations

Statutory Authority

Bank Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see page Changes for Services Provided by the Office of the Superintendent of Financial Institutions Regulations 2002.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsection 413.1(3)(see footnote a)  and section 459.4(see footnote b)  of the Bank Act(see footnote c)  proposes to make the annexed Regulations Amending the Notices of Uninsured Deposits Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of this notice, and be addressed to Mr. Gerry Salembier, Financial Sector Policy Branch, Department of Finance, 140 O'Connor Street, Ottawa, Ontario, K1A 0G5.

Ottawa, July 17, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE NOTICES OF UNINSURED DEPOSITS REGULATIONS

AMENDMENTS

1. The Notices of Uninsured Deposits Regulations(see footnote 1)  are amended by adding the following after section 1:

NOTICES GIVEN BEFORE OPENING DEPOSIT ACCOUNTS

Giving Notice

1.1 The notice required under subsection 413.1(1) of the Bank Act shall be given either as part of the account agreement or as a separate document.

Additional Information

1.2 (1) In this section, "member institution" has the same meaning as in section 2 of the Canada Deposit Insurance Corporation Act.

(2) If a person makes a request in person to open a deposit account with a bank to which paragraph 413(1)(b) of the Bank Act applies on premises that are shared with those of a member institution, the notice referred to in section 1.1 shall contain an additional statement indicating that the bank's business is separate and distinct from that of the member institution.

Explanation and Declaration

1.3 If a bank is required to give a notice containing the additional statement described in subsection 1.2(2), the bank shall, before opening the deposit account, orally explain all the information contained in the notice to the person requesting the account and obtain from that person a signed declaration stating that

    (a) the person has been given and has read the notice;
    (b) the bank has orally explained the information contained in the notice; and
    (c) the person understands that deposits with the bank are not insured by the Canada Deposit Insurance Corporation.

2. The schedule to the Regulations is replaced by the following:

SCHEDULE
(Subsections 1(1) and 2(1))

NOTICE

Deposits with
(name of bank)
are not insured by the
Canada Deposit Insurance Corporation

COMING INTO FORCE

3. These Regulations come into force on the day on which they are registered.

[29-1-o]

Shared Premises Regulations (Banks)

Statutory Authority

Bank Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see page Changes for Services Provided by the Office of the Superintendent of Financial Institutions Regulations 2002.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to paragraph 413.3(4)(a)(see footnote d)  of the Bank Act(see footnote e)  proposes to make the annexed Shared Premises Regulations (Banks).

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of this notice, and be addressed to Mr. Gerry Salembier, Financial Sector Policy Branch, Department of Finance, 140 O'Connor Street, Ottawa, Ontario, K1A 0G5.

Ottawa, July 17, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

  SHARED PREMISES
REGULATIONS (BANKS)
Definition of "member institution" 1. (1) In this section, "member institution" has the same meaning as in section 2 of the Canada Deposit Insurance Corporation Act.
Shared premises (2) A bank to which paragraph 413(1)(b) of the Bank Act applies may carry on business in Canada on premises that are shared with those of a member institution that is affiliated with the bank if, on those premises, whenever a request is made in person to open a deposit account with the bank, the bank opens the account at a work space that is separate and distinct from every work space at which the member institution carries on business.
Coming into force 2. These Regulations come into force on the day on which they are registered.

[29-1-o]

Regulations Amending the Fishing and Recreational Harbours Regulations

Statutory Authority

Fishing and Recreational Harbours Act

Sponsoring Department

Department of Fisheries and Oceans

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Fishing and Recreational Harbours Regulations are made pursuant to the Fishing and Recreational Harbours Act and control the use of harbours under the administration of the Department of Fisheries and Oceans (DFO), in addition to listing all those harbours. The current amendment is the final step in the latest installment of the harbours divestiture program which was initiated in 1995 and will delete 333 divested harbours from the current Regulations.

In February 1995, as part of the government-wide Program Review exercise, the Minister of Fisheries and Oceans announced that the entire inventory of DFO recreational harbours would be divested to minimize the costs associated with operating and repairing these facilities. The Minister also announced that the number of DFO fishing harbours would be reduced to focus on those harbours that are most important to the commercial fishing industry.

The divestiture process involves extensive site assessment, public consultation and negotiation and takes approximately two years to complete. For each divestiture candidate, DFO determines whether another organization is interested in assuming responsibility for managing the harbour. First refusal is always given to other federal departments or provincial agencies. If these agencies express no interest, then municipalities and Aboriginal groups where the harbours are located are approached. After that, take-over offers from area non-profit organizations, such as cottage associations or preservation societies, are considered.

Where an interest is expressed, negotiations are undertaken and, when finalized to the satisfaction of all concerned parties, ownership and management of the harbour is transferred. In some cases, repairs to harbour structures are either undertaken or funded by DFO to limit liability. In all cases, covenants are included in transfer documents to ensure that harbours remain open to the public for a set period (usually a minimum of five years) and that all services offered at the time of divestiture are maintained for the same period at the existing level.

Where no interest in assuming harbour management is expressed by any of the above groups, unsafe harbour structures are usually demolished and the property is offered for public sale at market value.

Since the last amendment in 1999, an additional 333 harbours (108 being fishing harbours) have been divested and their names will be deleted from the Regulations. Since the divestiture initiative began in 1995, approximately 38 percent of DFO controlled harbours have been divested (804 of 2 137 harbours).

In addition to updating the schedule of harbours, an amendment is being made to address a concern raised by the Standing Joint Committee for the Scrutiny of Regulations (SJC). In 1997, with the approval of Treasury Board, several fees contained in the Regulations were repealed in favour of a non-regulated ministerial fee-setting process. Unfortunately, due to an oversight, the amendments necessary to cross reference the regulatory provision to the amended fee-schedules were not made. This amendment will rectify that oversight.

Alternatives

As ownership of these harbours has already been legally transferred, this amendment will simply update the regulatory list of harbours to reflect DFO's current responsibilities. There is no alternative to this amendment. Failing to delete the divested harbours from the Regulations could mislead the public into believing that DFO still has responsibility for them.

There is no alternative to the amendments to correct the discrepancies brought to DFO's attention by the Standing Joint Committee for the Scrutiny of Regulations.

Benefits and Costs

This amendment will delete from the schedule the names of the 333 harbours whose ownership and management has been legally transferred to other organizations. Amending the Regulations is the final step in this round of divestitures.

This proposal will have no impact on the public since the harbours in question have already been divested for at least six months.

The one time costs associated with divestiture will be offset by the long term savings in harbour maintenance and repair.

The divestiture of recreational harbours and the reduction in the number of fishing harbours allows DFO to focus its resources on core fishing harbours. Core fishing harbours, properly maintained and resourced, will better serve the commercial fishing industry and the departmental mandate.

Consultation

The divestiture process included extensive local consultation by DFO regional and field staff familiar with the individual harbours. Before divesting the management of any harbour, consultations were held with users, local governments and community groups, provincial agencies, local Members of Parliament and interested parties. The time frame for this process was almost two years, allowing time for all interested parties to consult with the department.

The consultation component of the divestiture process is designed to ensure that all parties involved, including those using the harbours, are satisfied with the final negotiated result. Those affected by proposed divestitures were assured that all harbours to be taken over by another agency or organization will continue to be operated as public facilities with services maintained at existing levels. In addition, harbours transferred to other levels of government or non-profit organizations are made safe before divestiture. The only harbours sold to private interests are those harbours no longer in use or those for which no interest in assuming their management was expressed.

This regulatory amendment is not expected to cause any negative public reaction as the harbours in question have already been divested and this amendment is merely bringing the Regulations up to date.

Compliance and Enforcement

The proposed amendments are not subject to enforcement action because they are simply updating the Regulations.

Contacts

Yolaine Maisonneuve, Director, Harbour Policy and Program Planning, Small Craft Harbours, Department of Fisheries and Oceans, 200 Kent Street, Ottawa, Ontario K1A OE6, (613) 993-2972; and Sharon Budd, Regulatory Analyst, Legislative and Regulatory Affairs, Department of Fisheries and Oceans, 200 Kent Street, Ottawa, Ontario K1A 0E6, (613) 993-0982 (Telephone), (613) 990-2811 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 9 of the Fishing and Recreational Harbours Act, proposes to make the annexed Regulations Amending the Fishing and Recreational Harbours Regulations.

Interested persons may make representations with respect to the proposed Regulations to the Minister of Fisheries and Oceans within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Yolaine Maisonneuve, Director, Harbour Operations, Department of Fisheries and Oceans, 200 Kent Street, Ottawa, Ontario, K1A 0E6.

    Ottawa, July 17, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE FISHING AND RECREATIONAL HARBOURS REGULATIONS

AMENDMENTS

1. Subsections 28(1) and (2) of the Fishing and Recreational Harbours Regulations(see footnote 2)  are replaced by the following:

28. (1) The charges for berthage of a Canadian commercial fishing vessel and for wharfage are set out in Schedules II and III respectively.

(2) The charges for storage on harbour property are set out in Schedule IV.

2. (1) Items 1, 3, 4, 11, 19, 25, 33, 39, 43, 44, 45, 49, 52, 57, 59, 60, 77, 82, 88, 89, 93, 94, 98, 108, 119, 136, 147, 149, 152, 153, 170, 171, 175, 179, 183, 185, 197, 201, 203, 205, 208, 212, 214, 223, 227, 231, 235, 238, 239, 242, 243, 245, 246, 251, 259, 276, 280, 282, 283, 284, 298, 299, 301, 304, 307, 311, 312, 314, 315, 319, 321, 322, 331, 333, 337, 339, 347, 349, 351, 353, 354, 360, 361, 363, 364, 372, 373, 378, 386, 387, 394, 400, 408, 416, 418, 424, 425, 429, 439, 440, 450, 452, 455, 463, 476, 482, 483, 486, 488, 489, 490, 493, 495, 501, 509, 510, 517, 536, 538, 541, 547, 549, 562, 565, 566, 567, 569, 588, 603, 606, 635, 636, 645, 661, 662, 683, 685, 686, 687, 699, 700, 709, 722, 737.1, 742, 759, 760, 764, 767, 779, 780, 781, 783, 786, 788, 790, 791, 805, 806, 821, 823, 824, 828, 829, 833, 835, 837, 840, 846, 856, 857, 858, 861, 862, 863, 864, 868, 872, 883, 888, 891, 893, 901, 902, 904, 910, 912, 916, 936, 938, 958, 960, 962, 964, 971, 975, 978, 979, 990, 991, 993, 1000, 1004, 1006, 1009, 1013, 1016, 1017, 1019, 1026, 1032, 1034, 1041, 1045, 1046, 1055, 1059, 1060, 1062, 1063, 1069, 1077, 1081, 1082, 1088, 1092, 1095, 1096, 1110, 1118, 1119, 1120, 1125, 1128, 1129, 1132, 1142, 1143, 1145, 1150, 1154, 1155, 1158, 1162, 1165, 1181, 1183, 1185, 1186, 1187, 1191, 1196, 1197, 1207, 1208, 1209, 1214, 1217, 1219, 1224, 1225, 1234, 1237, 1238, 1239, 1242, 1243, 1245, 1248, 1249, 1250, 1255, 1289, 1303, 1343, 1353, 1388, 1395, 1399, 1413.1, 1420, 1424, 1426, 1438, 1439, 1463, 1465, 1466, 1468, 1480, 1486, 1487, 1488, 1491, 1498, 1531, 1536, 1541, 1542, 1546, 1550, 1551, 1552, 1558, 1573, 1592, 1603, 1610, 1621, 1646, 1648, 1652, 1659, 1660, 1680, 1682, 1707, 1712, 1719, 1743, 1744, 1764, 1780, 1850, 1888, 1891, 1899, 1900, 1981, 1997, 2004, 2084, and 2115 of Schedule I to the Regulations are repealed.

(2) Items 1667, 1710, 1718, 1737, 1754, 1788, 2010 and 2075 of Schedule I to the Regulations are replaced by the following:

Item Name or Location of Harbour
1667. Barr'd Islands
1710. Brown's Cove (Heatherton)
1718. Burnt Islands
1737. Centreville
1754. Cook's Harbour
1788. Fischells
2010. Reef's Harbour
2075. St. Phillip's

3. The title of Schedule IV to the Regulations is replaced by the following:

CHARGES FOR STORAGE ON HARBOUR PROPERTY

COMING INTO FORCE

4. These Regulations come into force on the day on which they are registered.

[29-1-o]

Regulations Amending the Small Vessel Regulations

Statutory Authority

Canada Shipping Act

Sponsoring Departments

Department of Fisheries and Oceans and Department of Transport

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Small Vessel Regulations (SVR) are made pursuant to the Canada Shipping Act. The Regulations promote the safety of small vessels not regulated elsewhere and encompass such matters as construction, licensing, safety equipment and required safety measures for small vessels. Both the Minister of Fisheries and Oceans and the Minister of Transport share the responsibility for the SVR. The Minister of Fisheries and Oceans is responsible for pleasure craft. The Minister of Transport is responsible for vessels that do not exceed five tons gross tonnage and do not carry more than 12 passengers, and power-driven vessels that do not exceed 15 tons gross tonnage, that do not carry passengers and that are neither pleasure craft nor fishing vessels. The proposed amendments to the Regulations apply to pleasure craft.

The purpose of these amendments is to expand the use of inflatable pouch-type personal flotation devices (PFDs) to all pleasure craft, add a definition of muffler to the Regulations and clarify the wording on noise created by the operation of a small vessel to make the Regulations easier to enforce.

Inflatable Pouch-type Personal Flotation Devices

These amendments to the SVR will substantially and positively affect the safety of boaters by making a more comfortable, less restrictive and more affordable device available to them.

On April 1, 1999, the Small Vessel Regulations were amended to allow the use of various types of inflatable PFDs on pleasure craft. However, pouch-type inflatable PFDs were restricted to rowing and paddling activities only. This restriction was originally established because these devices are two-stage donning devices (i.e. there are two steps in putting the PFD on). The device is worn around the waist like a tourist pouch and to inflate it, the wearer pulls on a cord that causes the air chamber to inflate, and then pulls the horseshoe-shaped inflated chamber over the head. The additional time taken to put this type of PFD on (i.e. two-stage operation) was perceived as a risk to safety. The device was therefore restricted to paddlers and rowers as it was the only device that allowed full freedom of movement. It was considered safer to provide them with a device that they would wear rather than requiring a one-stage-only donning device that they may not wear.

The experience gained through testing carried out in specialized testing facilities (i.e. Underwriters' Laboratories of Canada), changes to the Canada Addendum to Standard UL 1180 for inflatable PFDs by the Canadian General Standards Board (CGSB) Lifejacket Committee and enthusiasm expressed by users and user group representatives of Canadian Marine Advisory Council (CMAC) over the past two years has shown that the original concerns were not warranted and this type of device should be available for use on all pleasure craft.

Noise from Small Vessels

The number of complaints about noise generated by high-powered pleasure craft has increased significantly over the past few years. Provisions to reduce offending noise originating from small vessels were introduced in the April 1, 1999, amendments to the Small Vessel Regulations. The enforcement community has found these provisions difficult to enforce because any component present in the exhaust system could be considered a "noise abatement mechanism" even though its effectiveness in reducing noise could be insignificant. Representations have been made by various shore property owners/users both to the CMAC, to the Canadian Coast Guard (CCG) and at the political level. The intensity of these representations has increased in the recent past, exacerbated by the ever-increasing number of large powerful and noisy craft such as "cigarette boats."

The enforcement community anticipates that the proposed Regulations will be easier to enforce with a definition of muffler being added to the Regulations and clarification of the wording. With easier-to-enforce Regulations and mufflers in good working order, it is anticipated that noise and complaints about noise from shoreline property owners/users due to high-powered pleasure craft will be reduced.

As there may be a few boats that require a small conversion to become compliant with the new Regulations, owners will have thirty days after the Regulations are registered.

Some stakeholders are in regular contact with government officials to indicate that it is preferable to have the Regulations in force as close to the beginning of the boating season as possible, rather than later.

Alternatives

Inflatable Pouch-type Personal Flotation Devices

The alternative to expanding the use of the inflatable pouch-type PFDs is the status quo. The status quo limits the use of the inflatable pouch PFDs to rowers and paddlers.

This type of PFD has shown itself to be a very effective device and the time to put it on is not a risk to safety, thus the regulatory amendment allows greater choice of PFDs to pleasure craft users.

Noise from Small Vessels

The alternative of not making the amendment would mean enforcement officers would continue to find it difficult to enforce the provisions due to the current wording, and the frequency and intensity of complaints would likely increase. There is no alternative to the regulatory amendment. Stakeholders believe that the proposed amendments to clarify the wording will make it easier for the Regulations to be enforced, and anticipate noise related complaints to all levels of government will be reduced.

Benefits and Costs

Inflatable Pouch-type Personal Flotation Devices

Consumers will have more choice with regard to the types of PFDs they can wear, at lower cost (relative to vest-type inflatable PFDs). Manufacturers and retailers have an expanded opportunity for sales.

The proposed amendment on the use of the inflatable pouch-type PFDs does not entail additional costs to the federal government nor to the enforcement community.

Noise from Small Vessels

Where a vessel is fitted with appropriate muffling capability, there are no additional costs. The cost of having a muffler in constant operation and keeping it in good working order is part of the routine maintenance cost. A very small segment of the boat owners population operating high-powered vessels not fitted with appropriate muffling capability — estimated at approximately 200 vessels in total or approximately 0.006 of one percent of the boating population — may incur conversion costs ranging from $2,500 to $9,000. Given the high cost of these vessels, the conversion cost is relatively small in comparison.

Enforcement officers will benefit since they participated in the development of the proposed wording and have indicated that they believe it is fully enforceable. The revised wording is also consistent with the intent of the original provisions.

The amendments are expected to improve the quality of life for shore property occupants and to reduce the number of noise related complaints received at all levels of government.

Consultation

Inflatable Pouch-type Personal Flotation Devices

Industry proposed in 2000 that the use of the inflatable pouch-type PFDs be expanded beyond paddling and rowing activities to all pleasure craft. This proposal was tabled at the November, 2000, meeting of the Standing Committee on Recreational Boating of CMAC, where it received unanimous support. The proposal was subsequently tabled at the June 2001 meeting of the Canadian General Standards Board (CGSB) Lifejacket Committee, where it also received unanimous support.

Noise from Small Vessels

At the May 2001 meeting of the Standing Committee on Recreational Boating of the Canadian Marine Advisory Council, a Working Group was formed to address the situation about noise generated by small vessels.

The Working Group, comprised of a cross section of representatives from shore property owners/users, marine manufacturers, boating association, the enforcement community and field technical personnel from the CCG reviewed the situation and proposed a revised wording for the Regulations. Enforcement community representatives believe that the revised wording is fully enforceable and enforcement will be easier.

The Canadian Marine Manufacturers Association (CMMA) advocated that a more technical approach should be adopted, such as maximum acceptable sound pressure levels (decibels) measured at the manufacturer's premises for new vessels. The majority of the Working Group members responded that they agreed that this should be done and that such an approach had in fact been adopted by the Working Group as part of a three-prong approach that would include:

    1. clarifying the present wording of the Regulations to facilitate intervention by the enforcement community with respect to existing vessels (short term);
    2. looking at the implications that possible dockside sound pressure level checks would have on enforcement resources (medium term); and
    3. looking at the possibility of establishing Canadian standards for maximum acceptable sound pressure emission levels of vessel engines at the manufacturer level (longer term).

CMMA subsequently solicited additional input from powerboating stakeholders. This resulted in enquiries from only a few individuals who requested to be provided with the revised proposed wording, but did not provide additional input.

The proposed amendment implements the recommendation of the Working Group to clarify the wording so that the provisions can be enforced as it had been intended in the first instance.

Compliance and Enforcement

Compliance is achieved by random dockside and on-water monitoring by enforcement officers. Courses on safe boating and the proper use of lifesaving equipment, such as lifejackets and PFDs, are offered by various organizations, such as power and sail squadrons, sail and yacht clubs, and colleges.

As there may be a few boats that require a small conversion to become compliant with the new Regulations, owners will have thirty days after the Regulations are registered.

Enforcement is by way of summary conviction and ticketing by enforcement officers as defined in the Small Vessel Regulations. These include the RCMP, provincial police forces and municipal police, as well as persons designated by the Minister for the purpose of these Regulations, such as fishery officers and park wardens.

The Small Vessel Regulations provide fines up to $250 upon conviction of contraventions. The Contraventions Regulations provide for the issuance of tickets with prescribed fines for specific contraventions under the Small Vessel Regulations. Also, the Canada Shipping Act provides for penalties upon conviction of up to $2,000.

Current enforcement costs are shared among the enforcement agencies at the federal, provincial and municipal levels. No increase in cost of enforcement is expected.

Contacts

Jean Pontbriand, Office of Boating Safety, Canadian Coast Guard, Department of Fisheries and Oceans, 200 Kent Street, 5th Floor, Ottawa, Ontario K1A 0E6, (613) 998-1433 (Telephone), (613) 996-8902 (Facsimile); and Dave Luck, Policy Analyst, Legislative and Regulatory Affairs, Department of Fisheries and Oceans, 200 Kent Street, 14th Floor, Ottawa, Ontario K1A 0E6, (613) 990-0199 (Telephone), (613) 990-2811 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsections 338(1)(see footnote f) , 421.1 (1)(see footnote g) , and 562(3) of the Canada Shipping Act, proposes to make the annexed Regulations Amending the Small Vessel Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Jean Pontbriand, Office of Boating Safety, Canadian Coast Guard, Department of Fisheries and Oceans, Ottawa, Ontario K1A 0E6 (tel: (613) 998-1433; fax: (613) 996-8902; e-mail: pontbriandj@dfo-mpo.gc.ca) or James Brock, Manager, Safety Equipment, Transport Canada, Place de Ville, Tower C, 330 Sparks Street, Ottawa, Ontario K1A 0N8 (tel: (613) 991-3172; fax: (613) 991-4818; e-mail: brockji@tc.gc.ca).

Ottawa, July 17, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE SMALL VESSEL REGULATIONS

AMENDMENTS

1. Section 2 of the Small Vessel Regulations(see footnote 3)  is amended by adding the following in alphabetical order:

"muffler" means an expansion chamber, within the exhaust line of the propulsion engine of a vessel, specifically designed to reduce engine noise but does not include a muffler cut-out, straight exhaust, gutted muffler, glass-pack muffler, by-pass or similar device. (silencieux)

2. Subsection 16.07(2) of the Regulations is replaced by the following:

(2) Subject to subsection (3), a personal flotation device may be of an inflatable type if

    (a) it is worn in any open boat; or
    (b) it is worn by a person in any boat that is not open while the person is on deck or in the cockpit, or it is readily available to the person when the person is below deck.

3. Section 37 of the Regulations is replaced by the following:

37. (1) Subject to subsection (2), no person shall operate a power-driven vessel, and no person shall permit another person to operate such a vessel,

    (a) unless it is equipped with a muffler that is in good working order and that is in operation at all times while the vessel is in use to prevent excessive or unusual noise; and
    (b) if it is equipped with a muffler cut-out or by-pass, unless the muffler cut-out or by-pass is visibly disengaged in such a manner as to ensure that, while the vessel is in use, its exhaust gases are directed through the muffler and that the muffler cut-out or by-pass cannot be engaged accidentally.

(2) Subsection (1) does not apply in respect of any small vessel

    (a) that was constructed before January 1, 1960;
    (b) that is engaged in an official competition or in formal training or final preparation for an official competition;
    (c) that is powered by an outboard or an inboard/outboard drive system, if the exhaust gases are directed under water through the propeller hub or below the cavitation plate; or
    (d) that is operated five or more miles from shore.

COMING INTO FORCE

4. (1) These Regulations, except sections 1 and 3, come into force on the day on which they are registered.

(2) Sections 1 and 3 come into force 30 days after the day on which these Regulations are registered.

[29-1-o]

Regulations Amending the Transportation of Dangerous Goods Regulations

Statutory Authority

Transportation of Dangerous Goods Act, 1992

Sponsoring Department

Department of Transport

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Transportation of Dangerous Goods Act, 1992 (TDG Act, 1992) and the Transportation of Dangerous Goods Regulations (TDG Regulations) are intended to promote public safety in the transportation of dangerous goods in Canada.

The clear language version of the TDG Regulations was published in the Canada Gazette, Part II, on August 15, 2001. The clear language Regulations will come into force on August 15, 2002, and will replace the current TDG Regulations that came into force in July 1985.

The Regulations Amending the Transportation of Dangerous Goods Regulations correct errors, oversights and omissions resulting from the publication of the clear language version of the TDG Regulations and clarify the intent of the TDG Regulations. Several exemptions in Part 1 have been amended to apply only to transport by road vehicle, railway vehicle or by ship on a domestic voyage. Air requirements are addressed in Part 12.

Subsections 1.17(2) and (3) have been amended to delete references to a minimum letter size that is to be marked on a means of containment for limited quantities of dangerous goods that are transported by road vehicle, rail vehicle or by ship on a domestic voyage. Persons responsible for the marking can choose the appropriate size of lettering as long as the lettering is visible and legible. Subsections 1.17(2) to (5) have also been amended to recognize the words "Consumer Commodity" or "bien de consommation." The TDG Regulations will not differentiate between limited quantities and consumer commodities for domestic transport by road vehicle, railway vehicle or by ship on a domestic voyage. However, consignors need to comply with the appropriate international or transborder requirements associated with the definition of "Consumer Commodity" that is found in, for example, Title 49 of the Code of Federal Regulations of the United States, 2000, when these goods are transported to the United States.

Subsection 1.19(1) has been amended to clarify that the exemption applies only to samples transported by road vehicle, railway vehicle or by ship on a domestic voyage. This clarification does not change the status quo.(see footnote 4) 

Paragraphs 1.20(a) to (c) are amended to add employees of the Department of National Defence and employees of recognized military establishments. This addition does not change the status quo(see footnote 5)  and corrects an omission.

Section 1.26 has been amended to clarify that it does not apply to transportation by air or international transportation by ship. This clarification does not change the status quo.(see footnote 6) 

Section 1.35 has been amended to add UN1863, Fuel, Aviation, Turbine Engine to the list of Class 3, Flammable Liquid exemptions.

Section 1.45 has been amended to consolidate documentation and safety mark requirements associated with fumigation of means of containment. These requirements will only apply to large means of containment. Subsection 1.45(2) has been added to address situations where the fumigant is included with other dangerous goods in the same means of containment.

Section 1.46 has been amended to apply only to dangerous goods transported by road vehicle, railway vehicle or by ship on a domestic voyage.

Subsection 3.5(1) has been amended to add the reporting mark of the railway vehicle to the list of information included on a shipping document. This allows the shipping document to be matched with the railway vehicle. This reflects industry practices.(see footnote 7) 

Subsection 4.1(2) has been added to allow the use of current(see footnote 8)  dangerous goods safety marks on small means of containment until August 14, 2005. This should allow present(see footnote 9)  inventories of pre-marked means of containment that would no longer be in compliance as of August 15, 2002, to be exhausted. This amendment does not change the requirement for all small means of containment to comply with UN standards by January 1, 2003.

Alternatives

The amendments contain minor editorial, technical and regulatory changes arising from the recent publication of the clear language Regulations. While minor in nature and consequence, these changes enhance the functioning of the transportation of dangerous goods regulatory program. The amendments reflect what has been considered to be the best alternative based on safety and economic grounds. Consequently, no alternative was considered.

Benefits and Costs

The amendments contain minor editorial, technical and regulatory changes to correct errors, oversights and omissions resulting from the publication of the clear language version of the TDG Regulations and to clarify the intent of the TDG Regulations. Some amendments facilitate the international and transborder movement of dangerous goods. There will be costs associated with these amendments and the corresponding requirement for re-training. While minor in nature and consequence, these changes enhance the functioning of the transportation of dangerous goods regulatory program.

Many requests have been received for permits of equivalent level of safety to retain the use of the term "Consumer Commodity." This amendment allows the use of the term "Consumer Commodity." The TDG Regulations will not differentiate between limited quantities and consumer commodities. This recognition of the concept of consumer commodities for domestic transport by road vehicle, railway vehicle or by ship on a domestic voyage will facilitate international commerce and the movement of these goods to the United States. It is further recognized that costs associated with replacing "Consumer Commodity" with "Limited Quantity" due to the clear language version of the TDG Regulations have already been incurred by industry in the areas of re-training of employees, ordering of new supplies and equipment, markings on means of containment, and modifying computer programs.

Consultation

The amendments have benefited from discussions and consultations that continued following publication of the clear language Regulations in the Canada Gazette, Part II, on August 15, 2001, at the Transportation of Dangerous Goods General Policy Advisory Council and the Federal-Provincial Task Force meetings, at meetings with industry representatives, TDG Newsletter articles, and from comments reflected at the TDG Congress held in Ottawa on November 5 and 6, 2001.

These amendments reflect the concerns raised and the alternatives discussed and adopted.

Strategic Environmental Assessment

The TDG Regulations are developed under the Transportation of Dangerous Goods Act, 1992 that has as its objective the protection of public safety in the transportation of dangerous goods. Public safety is defined in the Act as the protection of human life and health and of property and the environment. Consequently, effects on the environment resulting from accidental releases of dangerous goods during transport have been fully considered.

Consultations were also held concerning forcing modal shifts for the transport of dangerous goods, but it could not be determined that such shifts would be beneficial to public safety. Thus, these Regulations will not affect the location or level of use of the different transportation modes and consequently will have no negative impact on the environment, from a strategic point of view.

Compliance and Enforcement

Compliance with the TDG Act, 1992, and the TDG Regulations is accomplished through the existing inspection network in Canada. The network includes both federal and provincial inspection forces who inspect all modes of transport and all consignors of dangerous goods. These inspectors ensure that the various safety standards and requirements of the TDG Act, 1992, and the TDG Regulations are complied with.

Contact

For further information on the Regulatory Impact Analysis Statement, please contact: Mr. Kim O'Grady, Chief, Evaluation Division, Transport Dangerous Goods Directorate, Ottawa, Ontario K1A 0N5, (613) 990-1145, ogradyk@tc.gc.ca (Electronic mail); and for further information on the amendments, please contact: Ms. Linda Hume-Sastre, Director, Legislation and Regulations Branch, Transport Dangerous Goods Directorate, Ottawa, Ontario K1A 0N5, (613) 998-0517 (Telephone), (613) 993-5925 (Facsimile), humel@tc.gc.ca (Electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to subsection 30(1) of the Transportation of Dangerous Goods Act, 1992 (see footnote h) , that the Governor in Council, pursuant to section 27 of that Act, proposes to make the annexed Regulations Amending the Transportation of Dangerous Goods Regulations.

Interested persons may make representations concerning the proposed Regulations to the Minister of Transport within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice. Each representation must be sent to Linda Hume-Sastre, Director, Legislation and Regulations Branch, Transport Dangerous Goods Directorate, Department of Transport, 330 Sparks Street, Ottawa, Ontario K1A 0N5. (Tel.: (613) 998-0517; fax: (613) 993-5925; e-mail: humel@tc.gc.ca)

Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act.

Ottawa, July 17, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE TRANSPORTATION OF DANGEROUS GOODS REGULATIONS

AMENDMENTS

1. Section 1.35 of the Table of Contents of Part 1 of the Transportation of Dangerous Goods Regulations(see footnote 10)  is replaced by the following:

Class 3, Flammable Liquids: UN1202, DIESEL FUEL, UN1203, GASOLINE, or UN1863, FUEL, AVIATION, TURBINE ENGINE Exemption .... 1.35

2. (1) Subsections 1.17(2) to (5) of the Regulations are replaced by the following:

(2) These Regulations do not apply to a limited quantity of dangerous goods in transport on a road vehicle, a railway vehicle or a ship on a domestic voyage, if the means of containment is marked on one side, other than the side on which it is intended to rest or to be stacked during transport, with the words "Limited Quantity" or "quantité limitée", the abbreviation "Ltd. Qty." or "quant. ltée" or the words "Consumer Commodity" or "bien de consommation" in a colour that contrasts with the background colour of the means of containment and in a manner that is visible and legible.

(3) These Regulations do not apply to an accumulation of limited quantities of dangerous goods in transport on a road vehicle, a railway vehicle or a ship on a domestic voyage, if the limited quantities are in one or more means of containment, each of which is marked on one side, other than the side on which it is intended to rest or to be stacked during transport, with the words "Limited Quantity" or "quantité limitée", the abbreviation "Ltd. Qty." or "quant. ltée" or the words "Consumer Commodity" or "bien de consommation" in a colour that contrasts with the background colour of the means of containment and in a manner that is visible and legible.

(4) When a limited quantity is in a means of containment that is inside another means of containment that has a gross mass less than or equal to 30 kg and the outer means of containment is marked in accordance with subsection (2) or (3), the inside means of containment is considered to be marked in accordance with that subsection.

(5) When the gross mass of an accumulation of limited quantities offered for transport by one consignor to one destination is greater than 500 kg, the consignor must give to the carrier a shipping document that, despite sections 3.5 and 3.6 of Part 3, Documentation, includes the words "Limited Quantity" or "quantité limitée", the abbreviation "Ltd. Qty." or "quant. ltée" or the words "Consumer Commodity" or "bien de consommation" and a list of the classes of dangerous goods in the accumulation.

(2) Section 1.17 of the Regulations is amended by adding the following after subsection (5):

    This section does not differentiate between limited quantities and consumer commodities for domestic transport by road, rail or ship. However, if a means of containment is marked "Consumer Commodity" and is transported to the United States, the consignor needs to comply with the definition of "Consumer Commodity" in 49 CFR. Consignors need to comply with the requirements for international ship transport in Part 11, Marine, and with the requirements for domestic and international transport by air in Part 12, Air.

3. (1) The portion of subsection 1.19(1) of the Regulations before paragraph (a) is replaced by the following:

1.19 Samples

(1) These Regulations, except for section 11.1 of Part 11, Marine, and Part 12, Air, do not apply to samples of goods, including forensic samples, that are reasonably believed to be dangerous goods if, for the purposes of inspection or investigation duties under an Act of Parliament or of a provincial legislature, the samples are

(2) The portion of subsection 1.19(2) of the Regulations before paragraph (a) is replaced by the following:

(2) These Regulations, except for section 11.1 of Part 11, Marine, and Part 12, Air, do not apply to samples of goods that the consignor reasonably believes to be dangerous goods if

(3) Paragraph 1.19(2)(f) of the Regulations is replaced by the following:

    (f) the means of containment has marked on it the words "test samples" or "échantillons d'épreuve" in a colour that contrasts with the background colour of the means of containment and in a manner that is visible and legible.

4. Paragraphs 1.20(a) to (c) of the Regulations are replaced by the following:

    (a) a member of the Canadian Forces or an employee of the Department of National Defence;
    (b) a member of the military forces of a North Atlantic Treaty Organization (NATO) country or an employee of the military establishment of such a country; or
    (c) a member of the military forces of a country designated for that purpose by the Minister of National Defence or an employee of the military establishment of such a country.

5. Section 1.26 of the Regulations is replaced by the following:

1.26 Emergency Response

These Regulations, except for section 11.1 of Part 11, Marine, and Part 12, Air, do not apply to dangerous goods that are in quantities necessary to respond to an emergency and that are in transport in a means of transport that is dedicated to emergency response, unless the dangerous goods are forbidden for transport in Schedule 1 or Schedule 3.

6. Section 1.35 of the Regulations is replaced by the following:

1.35 Class 3, Flammable Liquids: UN1202, DIESEL FUEL, UN1203, GASOLINE, or UN1863, FUEL, AVIATION, TURBINE ENGINE Exemption

Part 3, Documentation, and Part 6, Training, do not apply to the handling, offering for transport or transporting on a road vehicle of UN1202, DIESEL FUEL, UN1203, GASOLINE, or UN1863, FUEL, AVIATION, TURBINE ENGINE if

    (a) the dangerous goods are in one or more means of containment, each of which has displayed on it the label or placard required for the dangerous goods by Part 4, Dangerous Goods Safety Marks;
    (b) each means of containment is transported in an open road vehicle and is secured to the road vehicle so that the label or placard displayed on each one is visible from outside the road vehicle during transport; and
    (c) the total capacity of all the means of containment is less than or equal to 2 000 L.

7. Section 1.45 of the Regulations is replaced by the following:

1.45 Fumigation of Means of Containment

(1) These Regulations do not apply to a large means of containment, or the contents of a large means of containment, that is being fumigated with dangerous goods and that is in transport if

    (a) the fumigant is the only dangerous goods in transport in the large means of containment;
    (b) a document with the following information accompanies the large means of containment in the locations specified in sections 3.7 to 3.10 of Part 3, Documentation:
      (i) the shipping name, "FUMIGATED UNIT" or "ENGIN SOUS FUMIGATION",
      (ii) the class, Class 9,
      (iii) the UN number, UN3359,
      (iv) the quantity of the fumigant,
      (v) the date of fumigation, and
      (vi) instructions for the disposal of residues of the fumigant or fumigation device; and
    (c) the fumigation sign illustrated in the appendix to Part 4, Dangerous Goods Safety Marks, has the information required to be shown on it and is displayed by the person in charge of the fumigation process next to or at each entryway into the large means of containment through which a person can enter.

(2) When a large means of containment that is in transport contains dangerous goods that are being fumigated with other dangerous goods

    (a) the shipping document that accompanies the dangerous goods, in addition to the information required by Part 3, Documentation, must include
      (i) the name of the fumigant,
      (ii) the quantity of the fumigant,
      (iii) the date of fumigation, and
      (iv) instructions for the disposal of residues of the fumigant or fumigation device; and
    (b) in addition to the dangerous goods safety marks required by Part 4, Dangerous Goods Safety Marks, the person in charge of the fumigation process must display on the large means of containment the fumigation sign illustrated in the appendix to Part 4, Dangerous Goods Safety Marks, with the information required to be shown on it, next to or at each entryway into the large means of containment through which a person can enter.

8. The portion of section 1.46 of the Regulations before paragraph (a) is replaced by the following:

1.46 Miscellaneous Special Cases

These Regulations, except for section 11.1 of Part 11, Marine, and Part 12, Air, do not apply to the following dangerous goods:

9. (1) Subsection 3.5(1) of the Regulations is amended by striking out the word "and" at the end of paragraph (e), by adding the word "and" at the end of paragraph (f) and by adding the following after paragraph (f):

    (g) for rail transport, the reporting mark of the railway vehicle.

(2) Subsection 3.5(3) of the Regulations is repealed.

10. Section 4.21 of the Table of Contents of Part 4 of the Regulations is repealed.

11. Section 4.1 of the Regulations is renumbered as subsection 4.1(1) and is amended by adding the following:

(2) Despite subsection (1), a person may, until August 14, 2005, offer for transport, transport or import a small means of containment that contains dangerous goods if each dangerous goods safety mark required by the "Transportation of Dangerous Goods Regulations" in force on August 14, 2002 has, in accordance with those Regulations, been displayed on it since that date.

12. Section 4.21 of the Regulations is repealed.

13. Section 5.10 of the Regulations is amended by adding the following after subsection (5):

(6) Despite clause 2 of CSA B339, every reference in CSA B339 to CGA Publication C-1 must be read as a reference to CGA Publication C-1—1996, "Methods for Hydrostatic Testing of Compressed Gas Cylinders", Seventh Edition, published by the Compressed Gas Association, Inc.

14. The portion of subsection 12.8(2) of the Regulations before paragraph (b) is replaced by the following:

(2) The person who offers for transport the dangerous goods must, on each means of containment that contains the dangerous goods,

(a) mark the words "Air only, Consumer commodity" or "Aéronef seulement, produit de consommation" in letters at least 25 mm high and in a colour that contrasts with the background colour of the means of containment; and

COMING INTO FORCE

15. These Regulations come into force on the day on which they are registered.

[29-1-o]

 Footnote a 

S.C. 2001, c. 9, s. 103(2)

 Footnote b 

S.C. 2001, c. 9, s. 125

 Footnote c 

S.C. 1991, c. 46

 Footnote 1 

SOR/99-388

 Footnote d 

S.C. 2001, c. 9, s. 104

 Footnote e 

S.C. 1991, c. 46

 Footnote 2 

SOR/78-767

 Footnote f 

S.C. 1998, c. 16, s. 8

 Footnote g 

S.C. 1998, c. 16, s. 12

 Footnote 3 

C.R.C., c. 1487

 Footnote 4 

This reflects the conditions or state of affairs prior to August 15, 2002.

 Footnote 5 

This reflects the conditions or state of affairs prior to August 15, 2002.

 Footnote 6 

This reflects the conditions or state of affairs prior to August 15, 2002.

 Footnote 7 

This reflects the conditions or state of affairs prior to August 15, 2002.

 Footnote 8 

This reflects the conditions or state of affairs prior to August 15, 2002.

 Footnote 9 

This reflects the conditions or state of affairs prior to August 15, 2002.

 Footnote h 

S.C. 1991, c. 34

 Footnote 10 

SOR/2001-286

 

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