Transportation Modernization Act (S.C. 2018, c. 10)
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Assented to 2018-05-23
1996, c. 10Canada Transportation Act (continued)
Marginal note:2015, c. 31, s. 9
30 Subsection 137(1) of the Act is replaced by the following:
Marginal note:Agreement
137 (1) Any issue related to liability, including liability to a third party, in respect of the movement of a shipper’s traffic shall be dealt with between the railway company and the shipper only by means of a written agreement that is signed by the shipper or by an association or other entity representing shippers.
31 The Act is amended by adding the following after section 137:
Marginal note:Complaints
137.1 If, after receiving a complaint, the Agency finds that a railway company is not complying with subsection 137(1), the Agency may order it to take any measures that the Agency considers appropriate to comply with that subsection.
32 (1) Subsection 141(2) of the Act is replaced by the following:
Marginal note:Public accessibility of plan
(2) The railway company shall make the plan accessible to the public by publishing it on its Internet site or the Internet site of an association or other entity representing railway companies.
(2) Section 141 of the Act is amended by adding the following after subsection (2.1):
Marginal note:Information to provide to Minister
(2.2) The railway company shall, within 60 days after indicating in the plan its intention to discontinue operating a railway line, provide to the Minister
(a) an assessment of whether or not section 96 applies to the land on which the railway line is located; and
(b) a legal description of any land to which the assessment indicates section 96 applies and, in the form specified by the Minister, geographical information that would allow for mapping of the land.
Marginal note:Discontinuance already indicated in plan
(2.3) If a railway company has, on the day on which subsection (2.2) comes into force, a plan indicating its intention to discontinue operating a railway line, but the company has not yet made an advertisement under section 143 in respect of that line, it shall provide to the Minister the information referred to in that subsection before making the advertisement.
(3) Section 141 of the Act is amended by adding the following after subsection (3):
Marginal note:Declaration
(3.1) The railway company shall provide a written declaration to the person to whom the railway line or the operating interest is being sold, leased or otherwise transferred, stating that the sale, lease or transfer is in compliance with section 96. It shall also send a copy of the declaration to the Minister.
Marginal note:2000, c. 16, s. 6
33 (1) Subsection 142(1) of the Act is replaced by the following:
Marginal note:Compliance with steps for discontinuance
142 (1) A railway company shall comply with the steps described in this Division before discontinuing operating a railway line. The railway company shall publish and keep up to date on its Internet site or the Internet site of an association or other entity representing railway companies a report that sets out the date that it commenced and completed each step.
(2) Section 142 of the Act is amended by adding the following after subsection (2):
Marginal note:Exception
(2.1) Subsection (2) does not apply to a railway company that is the subject of proceedings under the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
Marginal note:2007, c. 19, s. 36
34 Subsection 143(3) of the Act is replaced by the following:
Marginal note:Disclosure — advertisement
(3) The advertisement shall also disclose
(a) the existence of any agreement between the railway company and a public passenger service provider in respect of the operation of a passenger rail service on the railway line; and
(b) an indication as to whether or not section 96 applies to the land on which that railway line is located.
35 Section 144 of the Act is amended by adding the following after subsection (5):
Marginal note:Declaration
(5.1) If an agreement is reached, including an agreement entered into to in accordance with an order by the Agency, the railway company shall provide a written declaration to the person to whom the railway line or the operating interest is being sold, leased or otherwise transferred, stating that the sale, lease or transfer is in compliance with section 96. It shall also send a copy of the declaration to the Minister.
36 (1) Section 145 of the Act is amended by adding the following after subsection (1):
Marginal note:Disclosure — offer
(1.1) The offer shall disclose whether or not section 96 applies to the land on which that railway line is located, and if the information described in paragraphs 141(2.2)(a) and (b) has not yet been provided to the Minister, the railway company shall provide it to the Minister with the offer.
(2) Paragraph 145(3)(a) of the Act is replaced by the following:
(a) by the Minister, the Government of Canada may accept it within 60 days or, if the Minister has extended the period under subsection (3.1), within that period;
(3) Section 145 of the Act is amended by adding the following after subsection (3):
Marginal note:Extension
(3.1) If the Minister considers it appropriate to do so, the Minister may extend the period referred to in paragraph (3)(a) by 120 days. The Minister may further extend the period, but the total of those further extensions may not exceed 365 days. Each time the Minister extends the period, the Minister shall provide a notice to the railway company and the railway company shall notify the other governments and urban transit authorities.
Marginal note:Service obligations
(3.2) If the Minister extends the period referred to in paragraph (3)(a), the railway company has no service obligations in respect of the operation of the railway line commencing on the expiry of 150 days after the offer was received by the Minister and ending on the expiry of 280 days after the expiry of the extended period referred to in that paragraph. The railway company shall not remove any of the infrastructure associated with the line during the period for which it has no service obligations.
(4) Section 145 of the Act is amended by adding the following after subsection (4):
Marginal note:Declaration
(4.1) The railway company shall, at the time of a transfer to a government or an urban transit authority, provide a written declaration to the government or urban transit authority stating that the transfer is in compliance with section 96. It shall also send a copy of the declaration to the Minister.
37 Section 146 of the Act is amended by adding the following after subsection (1):
Marginal note:Documents to accompany notice of discontinuance
(1.1) The notice of discontinuance shall be accompanied by a copy of the advertisement referred to in section 143 and the offers to the governments and transit authorities referred to in subsection 145(1).
38 The Act is amended by adding the following after section 146.5:
Marginal note:Complaints
146.6 If, after receiving a complaint, the Agency finds that a railway company is not complying with this Division, the Agency may order it to take any measures that the Agency considers appropriate to comply with this Division.
Marginal note:2011, c. 25, s. 60
39 (1) The definition government hopper car in section 147 of the Act is repealed.
(2) The definitions movement and port in British Columbia in section 147 of the Act are replaced by the following:
- movement
movement, in respect of grain, means the carriage of grain by a prescribed railway company over a railway line from a point on any line west of Thunder Bay or Armstrong, Ontario, to
(a) Thunder Bay or Armstrong, Ontario,
(b) Churchill, Manitoba for export,
(c) a port in British Columbia for export, other than export to the United States for consumption in that country, or
(d) a point west of Thunder Bay or Armstrong, Ontario, if the grain is to be carried to a port in British Columbia for export, other than export to the United States for consumption in that country; (mouvement du grain)
- port in British Columbia
port in British Columbia includes Vancouver, North Vancouver, New Westminster, Roberts Bank, Prince Rupert, Ridley Island, Burnaby, Fraser Mills, Fraser Surrey, Fraser Wharves, Lake City, Lulu Island Junction, Port Coquitlam, Port Moody, Steveston, Tilbury and Woodwards Landing; (port de la Colombie-Britannique)
Marginal note:2000, c. 16, s. 10
40 (1) Paragraph 150(3)(a) of the French version of the Act is replaced by the following:
a) les primes, rabais ou réductions semblables versés ou accordés par la compagnie;
(2) Subsection 150(3) of the Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after paragraph (c):
(d) any amount that is earned by the company at the interswitching rate determined in accordance with section 127.1; or
(e) any amount that is earned by the company for the movement of grain in containers on flat cars.
Marginal note:2000, c. 16, s. 10
41 (1) The description of F in subsection 151(1) of the Act is replaced by the following:
- F
- is the volume-related composite price index that applies to the company, as determined by the Agency.
Marginal note:2000, c. 16, s. 10; 2007, c. 19, s. 43(1)
(2) Subsections 151(4) and (5) of the Act are replaced by the following:
Marginal note:Volume-related composite price index
(4) The following rules are applicable to a volume-related composite price index:
(a) in the crop year 2016-2017, each prescribed railway company’s index is 1.3275;
(b) an index shall be determined in respect of each prescribed railway company; and
(c) the Agency shall make adjustments to each prescribed railway company’s index to reflect the costs incurred by the prescribed railway company to obtain hopper cars for the movement of grain and the costs incurred by the prescribed railway company for the maintenance of those hopper cars.
Marginal note:When Agency to make determination
(5) The Agency shall make the determination of a prescribed railway company’s maximum revenue entitlement for the movement of grain in a crop year under subsection (1) on or before December 31 of the following crop year and shall make the determination of a prescribed railway company’s volume-related composite price index on or before April 30 of the previous crop year.
42 The Act is amended by adding the following after section 151:
Marginal note:Report to Minister
151.01 (1) Before the beginning of every crop year, a prescribed railway company shall provide to the Minister a report, in the form and manner that may be specified by the Minister, that
(a) assesses the prescribed railway company’s ability to move the grain that it is required to move during the crop year taking into account the total volume of grain expected to be moved for the crop year; and
(b) identifies the steps that the prescribed railway company is taking to enable it to move the grain that it is required to move during the crop year.
Marginal note:Report — winter contingency plans
(2) Before October 1 of every year, a prescribed railway company shall provide to the Minister a report, in the form and manner that may be specified by the Minister, that describes the railway company’s contingency plans to enable it to move the grain along with other traffic when faced with winter weather conditions.
Marginal note:Publication
(3) The prescribed railway company shall publish the reports referred to in subsections (1) and (2) on its Internet site at the same time that they are provided to the Minister.
Marginal note:2015, c. 31, s. 10
43 Section 155.8 of the Act is replaced by the following:
Marginal note:Interest on unpaid amounts
155.8 (1) If any portion of a levy is not paid by a railway company as required by subsection 155.7(1), the company shall pay to the Receiver General interest on that portion — calculated and compounded monthly at the rate of interest determined under the regulations made under section 155.1 of the Financial Administration Act — beginning on the day on which the payment was required to be made and ending on the day before the day on which the payment is received by the Receiver General.
Marginal note:Partial payment
(2) If a partial payment is made, the period for which interest is payable in respect of the amount paid ends on the day before the day on which the partial payment is received by the Receiver General.
Marginal note:2015, c. 31, s. 10
44 Paragraph 155.97(f) of the Act is repealed.
45 Section 157 of the Act is amended by adding the following after subsection (4):
Marginal note:Costing information
(5) No later than August 31 of every year, the Canadian National Railway Company and the Canadian Pacific Railway Company shall provide to the Agency, in the form and manner specified by the Agency, all unit costs, output units and other financial, statistical and supporting information for the preceding calendar year that is required for the determination of costs by the Agency under this Part.
46 Subsection 161(2) of the Act is amended by adding the following after paragraph (a):
(b) the period requested by the shipper, not exceeding two years, for which the decision of the arbitrator is to apply;
Marginal note:2000, c. 16, s. 15
47 The portion of section 164.1 of the Act before paragraph (a) is replaced by the following:
Marginal note:Summary process
164.1 If the Agency determines that a shipper’s final offer submitted under subsection 161.1(1) involves freight charges in an amount of not more than $2,000,000, adjusted in accordance with section 164.2, and the shipper did not indicate a contrary intention when submitting the offer, sections 163 and 164 do not apply and the arbitration shall proceed as follows:
48 The Act is amended by adding the following after section 164.1:
Marginal note:Triennial adjustment
164.2 (1) The maximum amount of freight charges for the purpose of section 164.1 shall be adjusted every three years, on April 1, in accordance with the formula
[A/B] × C
where
- A
- is the Consumer Price Index for the calendar year before the year in which the adjustment is made;
- B
- is the Consumer Price Index for 2017; and
- C
- is $2,000,000.
Marginal note:Consumer Price Index
(2) For the purposes of subsection (1),
(a) a reference to the Consumer Price Index for any 12-month period means the average of the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that 12-month period;
(b) if at any time the Consumer Price Index for Canada is adjusted to reflect a new time basis, a corresponding adjustment is to be made in the Consumer Price Index for any 12-month period that is used for the purpose of calculating the maximum amount under subsection (1); and
(c) if at any time the Consumer Price Index for Canada is adjusted to reflect a new content basis, that adjustment does not affect the operation of this section.
Marginal note:Maximum amount to be published
(3) The Agency shall adjust the maximum amount in accordance with subsection (1) and cause it to be published in the Canada Gazette no later than March 31 before the commencement of the three-year period for which the maximum amount applies, and that published amount is conclusive proof of the maximum amount for that three-year period.
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