Bill C-52 Amendments to the Canada Transportation Act
Bill C-52 calls for amendments to the Canada Transportation Act, specifically to railway insurance liability involving crude oil and toxic substances. The new amendments will:
1. Establish minimum liability insurance levels for transport by railway
- Based on the type and volume of cargo, the act will require rail companies to have insurance ranging from $25 million to $1 billion liability for transportation of large volumes of “dangerous goods” such as crude oil and toxic inhalation hazard material (TIH)
- Rail companies who do not follow the new mandates are subject to fine up to $100,000
2. Shippers will have to contribute to a compensation fund using a “polluter pays” principle
- Currently only applies to crude oil - $1.65 per tonne (23 cents a barrel).
- Fund is used to cover losses, damages, costs and expenses from railway accidents involving crude oil or other dangerous goods exceeding the minimum liability insurance coverage
The government will no longer need proof of fault or proof of negligence, subject to certain defences to charge rail companies for costs of accidents.
Click here for more details on Bill C-52 Safe and Accountable rail Act
Click here for more details on the Canada Transportation Act
Financial Post Article: Legislation to require tougher insurance for oil shipments by rail
Tia Chisholm, HUB International TRANSPORTATION
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