The Legislative and Institutional Framework

Legislative Framework

Transport activities and facilities are subject to a number of federal and provincial environmental laws, the majority of which are applicable both to industry sectors and to the general public.

The main federal environmental laws are:

• the Canadian Environmental Protection Act, which is an amalgamation of prior federal legislation governing air quality and ocean dumping, with some newly created sections dealing with the management of toxic substances, from "cradle" (manufacture and importation) to "grave" (disposal). Regulations, guidelines and codes of practice under this Act cover a number of substances used in transportation activities. Amendments and refinements are under way to strengthen the legislation, which is administered by Environment Canada.

• the Fisheries Act, which prohibits activities harmful to fish or fish habitat. It is one of the oldest and most effective environmental statutes in Canada and is used for prosecutions related to water pollution. Transport facilities and vessels that release contaminants into waters frequented by fish are guilty of Fisheries Act violations.

• the Canadian Environmental Assessment Act, under which federal decision-makers are required to assess the environmental impacts of projects for which they are the proponent, provide funding or provide land, or which they have statutory authority to approve (through permits for railway grade separations, for example). It is administered by the Canadian Environmental Assessment Agency (CEAA), which reports to the Minister of the Environment.

Thereare also environmental protection provisions within the legislative mandate of Transport Canada to regulate transportation sector activities. The most significant pieces of legislation with an environmental protection component are:

• the Transportation of Dangerous Goods Act, which regulates the manner in which dangerous goods are transported interprovincially and internationally;

• the Canada Shipping Act, which prohibits ships from discharging pollutants in Canadian waters and contains provisions for ordering compensation for pollution damage;

• the Navigable Waters Protection Act, which sets approval requirements for works and plans relating to navigable waters; and

• the Motor Vehicle Safety Act, under which vehicle manufacturers and importers are required to comply with Transport Canada's emission standards as a condition of the importation or interprovincial shipment of new motor vehicles (under the proposed Canadian Environmental Protection Act, the legislative authority for emissions for new motor vehicles transfers from the Motor Vehicle Safety Act to the Canadian Environmental Protection Act); and

• the Aeronautics Act, which provides the legislative basis for the management of aircraft noise, and for aircraft emission and noise standards.

The provinces and territories also have environmental legislation, but this report will restrict its discussion to national programs and legislation.

In June of 1995, all federal ministers made a collective commitment to "sustainable development." ^{note 1} Amendments to the Auditor General Act established the office of the Commissioner of the Environment and Sustainable Development within the Office of the Auditor General. This new organization will require every federal department to table a sustainable development strategy in Parliament by December 1997, outlining its goals and action plans for integrating sustainable development into its policies, programs and operations. Each plan must include a process of consultation with relevant stakeholders. "Sustainable transportation" will be the focus for Transport Canada.

The Organization for Economic Cooperation and Development (OECD) offers a definition of sustainable transportation: transportation that "does not endanger public health or ecosystems and that meets mobility needs consistent with (a) use of renewable resources at a level below their rates of regeneration, and (b) use of non-renewable resources at a level below the rates of development of renewable substitutes." A central feature is the integration of environmental considerations into decision-making from the outset.

The legislative and institutional framework also includes Canada's participation in multilateral bodies - such as the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) - that set standards and seek multilateral consensus on transportation issues, notably its impact on the environment. An example is ICAO's most recent standard for aircraft engine emissions, itself a 20 per cent reduction from the previous limit.

Other multilateral bodies, such as the OECD and the United Nations Commission on Sustainable Development, are beginning to address the challenges presented by the transportation sector for global sustainable development.

Impact of Transportation on the Environment

Transportation generates by-products that have a significant impact on the environment and on human health. It is widely accepted that transportation activities contribute to climate change, depletion of the ozone layer, the spread of toxic substances, and local and regional air pollution - including ground-level ozone (smog), acid rain, noise, depletion of oil and other natural resources, and damage to landscape and soil.

Air Quality

From a global perspective, the biggest environmental challenges for the transportation sector are related to air quality.

The burning of petroleum fuels in internal combustion engines produces a variety of emissions, including carbon monoxide (CO), carbon dioxide (CO2), volatile organic compounds (VOCs), nitrogen oxides (NOx), sulphur oxides (SOx), and particulates (from diesel). With the exception of carbon dioxide, these substances all directly affect human health (see Table 14-1). Nitrogen oxides and volatile organic compounds, for example, are responsible for the formation of ground-level ozone (O3), also known as smog.

In addition to petroleum-based emissions, transportation also emits chlorofluorocarbons (CFCs), through leakage from automobile air conditioners. CFCs are contributors, together with carbon dioxide, volatile organic compounds and nitrogen oxides, to the formation of "greenhouse gases" - gases that may be contributing to a gradual warming of the planet. CFCs are also a major contributor to high-altitude ozone depletion, a recognized cause of sunburn and, over time, a likely contributor to skin cancer. Nitrous and sulphur oxides also contribute to acid rain.

Energy Consumption in the Transport Sector

Any description of the impact of transport on air quality must include an analysis of petroleum fuel consumption, both in the transport sector and in the economy as a whole. As Figure 14-1 shows, transportation is by far the greatest consumer of petroleum fuel in the Canadian economy.

Figure 14-2 breaks down fuel consumption in the transportation sector by fuel type. Road fuels (retail pump and other sales of gasoline and road diesel) represent 82 per cent of transport-related fuel consumption.

Figure 14-3 illustrates the evolution of transportation fuel consumption since 1980. The last 16 years can be broken down into four distinct periods. Following the oil price shock of 1981, which accompanied a recession, Canada experienced an unprecedented decline in transport fuel consumption. Total consumption fell 15 per cent between 1980 and 1983.

Overall per capita consumption fell slightly more sharply, with an 18 per cent decline over the same three years, while per capita gasoline consumption declined by 15.5 per cent. The differential between the latter two rates of decline could be explained as an attempt by consumers to maintain their driving habits despite higher fuel prices and economic decline, but individual gasoline consumption still declined as people bought smaller, more fuel-efficient cars, or reduced their automobile use.

The second period, from the recovery of 1983 to 1989, again saw growth in fuel consumption. Since the rise in overall consumption was not accompanied by an equivalent per capita increase in gasoline use, it seems likely that the growth was sparked mainly by economic recovery. As far as consumers were concerned, the fuel economy gains created in the previous period appear to have been maintained.

In the third period (1989 to 1991), fuel consumption declined, again during a recession. After 1991, overall fuel consumption increased significantly, and actually surpassed 1981 levels.

The fourth period saw another increase in both total fuel consumption and per capita gasoline pur-chases. Figure 14-4 shows a slight increase in total fuel consumption per unit of GDP at the same time, although the gasoline index had fallen again by 1995.

What is more significant in Figure 14-4 is the change indicated in the pattern of transport fuel consumption compared to economic activity. When consumption is measured in petajoules of energy per billion [1986] dollars of Gross Domestic Product (GDP), fuel intensity in 1995 was only 71 per cent of 1980 levels. In other words, producing a unit of GDP required 29 per cent less transportation energy than was the case in 1980. The gains are even more dramatic for gasoline: in 1995, the ratio of gasoline use to GDP was 35 per cent below that of 1980.

Fuel Efficiency Program

In 1975, Canada established the Joint Government-Industry Voluntary Fuel Consumption Program to promote energy conservation in the transportation sector through the design, manufacture and sale of fuel-efficient motor vehicles. As the name indicates, manufacturers' participation in the program is voluntary. The program set the first corporate average fuel consumption (CAFC) targets for automobiles in 1980. Although the targets were actually introduced as a way to avert or delay an oil shortage, they have had a positive environmental impact.

To reinforce the program in Canada, the government passed Bill C-107, the Motor Vehicle Fuel Consumption Standards Act (MVFCSA) through Parliament. It was, however, not proclaimed; instead, the motor vehicle industry undertook to voluntarily meet standards equivalent to those in the United States.

Table 14-2 presents the targets set by the federal government as well as the average fuel use actually achieved for passenger vehicles and light trucks. Manufacturers have consistently met the standards, and in fact exceeded the requirements by a wide margin in most years, particularly for passenger cars. Less promising is the recent shift in sales, from cars to light trucks (including minivans and sport-utility vehicles), which has resulted in a slightly worse average efficiency for all vehicles combined. This shift also helps to explain the increases in fuel consumption for the entire fleet between 1991 and 1995 (see Figure 14-3).

Low Level Ozone

Ground level ozone, or urban smog, is formed when nitrogen oxides and volatile organic compounds react with sunlight and heat.

Three regions in Canada have been identified by the Canadian Council of Ministers of the Environment (CCME) as having ozone problems: the Lower Fraser Valley in British Columbia, the Quebec-Windsor Corridor and the Saint John area in New Brunswick.

In 1993, Transport Canada, together with Environment Canada and the Department of Energy, Mines and Resources (as it was then called), commissioned a study on nitrogen oxides and volatile organic compounds resulting from transportation activities in the Quebec-Windsor Corridor. ^{note 2} The study found that road transportation accounts for most of these emissions (see Figure 14-5) and that intercity transportation accounts for three-quarters of the emissions of nitrogen oxides and just over half the emissions of volatile organic compounds (see Figure 14-6).

It is estimated that transportation emissions of nitrous oxide (N2O),^{note 3} a member of the nitrogen oxide family, have increased by 7.6 per cent between 1990 and 1995 at an annual rate of 1.5 per cent (see Figure 14-7). On the positive side, the growth seems to have gradually decreased in 1994 and 1995. It is reasonable to assume that this pattern also applies to other members of the nitrogen oxide family.

In October of 1995, the CCME endorsed a series of proposals calling for improvements to fuel and vehicles to reduce the amount of nitrogen oxides and volatile organic compounds produced by automobiles. These initiatives were taken in the context of the "Management Plan for NOx-VOCs" issued by the CCME in 1990.

The role of Canadian transportation in the production of smog may be somewhat overstated. According to Environment Canada statistics, some 50 to 60 per cent of the excess ozone in Southwestern Ontario originates from US cities, such as Detroit and Cleveland. ^{note 4} Nevertheless, it is a significant negative byproduct of transportation.

Climate Change

There is a growing body of scientific evidence to the effect that human activity is increasing the concentration of greenhouse gases and that this will affect future climate. The most abundant greenhouse gas is water vapour, followed by carbon dioxide, ozone, methane (CH4), and nitrous oxide. Carbon dioxide emissions make up by far the greatest proportion of all the greenhouse gas emissions related to human activity.

Using the same methodology as for estimating nitrogen oxide emissions, it is estimated that Canadian transportation-related emissions of carbon dioxide have increased by 9.2 per cent between 1990 and 1995, or 1.8 per cent per year (see Figure 14-8).

Table 14-3 ranks the 16 top carbon dioxide-producing countries in terms of total emissions and per capita emissions. Per capita, Canada ranks second. The results tend to reflect each country's particular geography and settlement density. Countries whose per capita emissions are low tend to fall into two categories. They are either economically developed but densely populated, or are less developed.

Motor Vehicle Emission Program

Through the Motor Vehicle Safety Act, Canada has promulgated progressively more stringent national emission standards for on-road motor vehicles since 1971. Exhaust emissions from today's passenger cars have been reduced by up to 98 per cent from those of the days prior to emission controls.

Vehicle manufacturers and importers are required to comply with Transport Canada's emission standards as a condition of the import or interprovincial shipment of new motor vehicles in Canada. To verify compliance, the department acquires a representative sample of vehicles of the new model year fleet for emissions testing every year, using prescribed test methods. The department also routinely inspects company certification records and vehicle emission components. Any deficiencies discovered by this enforcement program are investigated and remedial action pursued.

Emissions of regulated pollutants from the Canadian on-road motor vehicle fleet are forecast to decline between 1995 and 2005. However, forecasts also suggest that, without further action to reduce emissions from new vehicles, emissions from the on-road vehicle fleet will increase between 2005 and 2020, as growth is expected in both vehicle numbers and kilometres driven. For this reason, Transport Canada proposed new standards in 1996 that will continue reducing the allowable levels of emissions from on-road vehicles in future years.

Ozone Depletion

Ozone is found throughout the atmosphere, but occurs mainly in the stratosphere at altitudes of 18 to 35 kilometres, where it acts as a shield against harmful radiation. As mentioned earlier, CFCs - manufactured chemicals that are commonly used in air conditioners, refrigerators, foams and solvents - are the leading cause of ozone depletion.

Under the Montreal Protocol of 1987, the major industrialized nations agreed to cut their consumption of CFCs in half by mid-1999. Developing countries that signed the agreement were given an additional 10 years to meet these targets. By September 1995, Canada and 148 other countries had ratified the Montreal Protocol. New cars are now equipped with CFC-free air conditioners, and CFCs have been removed from many other products as well. Emissions may continue for a while, as old air-conditioning units break down, but eventually transportation emissions of CFCs will cease altogether. However, because of the long life of CFCs in the atmosphere, the impact of transportation on the ozone layer will continue for a long time.

Transport Canada is completing an "ozone-depleting substance" (ODS) management plan for its facilities, to ensure compliance with federal ODS regulations.

Water Quality

The major sources of water contamination in the transportation sector are leaks and spills from a variety of sources, including oil tankers, motor vehicles and fuel storage tanks. Oil spills from tanker vessels can have major impacts on nearby ecosystems, aquatic species, wildlife, and birds. As for spills on land, even small amounts of oil in the groundwater system can contaminate large quantities of water.

Runoff from roads, road construction, and the deterioration of discarded vehicles also have an impact on surface and groundwater quality. The application of road salts in winter is an environmental concern because increased sodium levels in water and soils can damage vegetation, destroy animal habitats and have a cumulative effect on drinking water.

If not properly controlled and contained, effluents resulting from vehicle fuelling, aircraft de-icing, and day-to-day operational and vehicle maintenance activities can enter surface and groundwaters. A lot of effort is spent monitoring and controlling effluent discharges from transportation facilities such as airports.

Land Use and Disruption of Natural Habitat

Transportation also has a direct effect on the environment through changes imposed on land use and habitat. The construction of transportation infrastructure causes modifications to vegetation, changes in drainage patterns, the creation of micro- climates and changes in habitat. Wetlands are particularly vulnerable. Slight alterations to an area can cause the migration or disappearance of whole species, initiating a domino effect with other species whose lives and habitat are interconnected.

The availability of inexpensive and efficient transportation also contributes to the conversion of rural land into low-density suburbs, the phenomenon commonly referred to as "urban sprawl." Many people prefer lower population densities and larger home lots, at the price of commuting longer distances to work and shopping areas. This preference, when made practicable by relatively cheap transportation, increases the amount of developed land, contributing to habitat alteration. Moreover, the increase in travel usually translates into greater production of air pollutants, particularly by automobiles and light trucks.

Noise

An issue for people living near airports, major highways, railroad tracks, and other transportation facilities is exposure to noise, sometimes substantial amounts. The impact of noise depends on frequency, pitch, loudness, and duration. Transportation noise can be of short duration, but is usually persistent. In Canada, these effects are mitigated by measures such as the construction of sound barriers between major highways and nearby residences. To combat aircraft noise, a combination of regulatory actions, noise exposure forecasting, and zoning recommendations are in place.

Regulations under the Aeronautics Act (CAR 602) mandate the early retirement of so-called "Chapter 2" aircraft, which are noisier and less fuel-efficient than today's modern aircraft. Major airports close to residential areas also have noise management rules (such as preferential runway usage) and monitor noise levels constantly. To assist in land- use planning, Transport Canada also maintains a state-of-the-art noise forecasting system that maps noise contours. The information produced is used to discourage residential construction in areas made unsuitable by high noise levels.

Looking Ahead

In the spring of 1996, Transport Canada outlined a framework for its sustainable transportation strategy at the OECD conference in Vancouver. The department is currently conducting consultations with selected transportation and environmental stakeholders to help define strategic directions from the following perspectives:

• where Transport Canada can act on its own authority;

• where it can act in partnership with others; and

• where itcan encourage others to take preferred action.

Transport Canada's current strategy includes:

• minimizing environmental damage from accidents;

• promoting "green" operations by carriers and operators;

• reducing transportation emissions, especially those affecting climate change;

• promoting sustainable transportation systems;

• assessing the environmental impacts of transportation grants and contributions;

• defining performance indicators for environmentally sustainable transportation;

• including environmental cost in transportation pricing;

• promoting transportation technologies with reduced environmental impact; and

• managing its facilities through a departmental environmental management system.

The strategy will provide the basis for fostering sustainable development within the national transportation system and set the framework within which the department will report to the Commissioner of the Environment and Sustainable Development on the department's environmental progress.

In developing its strategy, Transport Canada is experimenting with different types of partnerships to mobilize commitment to sustainable development in transportation. The department has already given support, in partnership with Environment Canada, to the Centre for Sustainable Transportation, which will be an important mechanism for gathering and analysing information.