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International Bridges and TunnelsCanada Transportation Act

June 1, 2005

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Outline

Page No.

1. Background 3

2. Issues and Impacts 5

3. CTA Amendments - General 7

4. Guidelines for New Constructionand Alterations 10

5. Regulations 12

6. Current Status 16

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1. Background

There are currently 24 international vehicular bridges/tunnel crossings between Canada and the U.S.

These crossings carry the vast majority of Canadian exports to the United States and play a vital role in Canada’s transportation system.

The federal government is jurisdictionally responsible for international bridges, however it has no clear legislative and regulatory authority.

The historical approach to governance has been largely ad-hoc and inconsistent.

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State of MinnesotaPrivate (Boise Cascade)

State of Minnesota

Province of OntarioPrivate (Abitibi Consolidated)

Province of Ontario

Ontario – Minnesota Pigeon River Fort Frances – International Falls Baudette - Rainy River

City of DetroitState of MichiganState of Michigan

Private U.S. Company (Detroit International Bridge Company)City of Windsor

Federal Crown Corp.Federal Crown Corp.

Ontario – Michigan Ambassador Bridge Windsor - Detroit Tunnel Blue Water Bridge Sault Ste. Marie

Federal Crown Corp. (Federal Bridge Corporation Ltd.) St. Lawrence Seaway Development U.S. Public Benefit Corporation (Ogdensburg Bridge and Port Authority) Federal Crown Corp. (Federal Bridge Corporation Ltd.) Thousand Islands Bridge Authority

U.S. Public Benefit Corporation (Niagara Falls Bridge Corporation) U.S. Public Benefit Corporation (Niagara Falls Bridge Corporation) U.S. Public Benefit Corporation (Niagara Falls Bridge Corporation) New York State Public Agency (Buffalo & Fort Erie Public Bridge Company)

Ontario – New York Seaway International Prescott-Ogdensburg Thousand Islands Queenston-Lewiston Whirlpool Rapids Rainbow Bridge Peace Bridge

State of VermontProvince of Quebec

Quebec – Vermont Glen-Sutton/East Richford

State of MaineState of MaineState of MaineState of MaineState of MaineState of MaineState of MaineState of MaineState of Maine

New BrunswickNew BrunswickNew BrunswickNew BrunswickNew BrunswickNew BrunswickNew Brunswick

New Brunswick

New Brunswick

New Brunswick – Maine Campobello - Lubec St. Stephen – Calais Milltown St. Croix – Vanceboro Thoroughfare International Forest City Saint Leonard – Van Buren Edmunston – Madawaska Clair – Fort Kent

Ownership U.S. HalfOwnership Canadian Half

1. Background (Cont’d)

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2. Issues and Impacts

International bridges are “works” for the purpose of the Constitution Act 1867, and Parliament has jurisdiction

Of the 24 international bridges/tunnels, the federal government owns the Canadian half of only five bridges; four through Crown corporations and one through an international authority – Peace Bridge

Variety of ownership structures (private, provincial, municipal, state, federal, and bi-national) and a range of governance models

This has never been incorporated in a legislative framework.

Canada can not use the leverage of ownership to fulfill its constitutional responsibility for oversight of all international crossings.

It is difficult to administer federal policies and priorities in a consistent manner; there is no level playing field for international crossings.

Issues Challenges

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2. Issues and Impacts (Cont’d)

Most international bridges operate independently

Terrorist events of 2001 reveal a need for more effective security at critical infrastructure including international bridges and tunnels

New bridge proposals for Windsor-Detroit (Ontario - Michigan) and St.Stephen-Calais (N.B. - Maine)

The situation of disaggregated policies, resource inefficiencies, the absence of information on security, etc.

Governments are unable to impose security standards.

No formal approval process.

Issues Challenges

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Federal Jurisdiction: International Bridges and tunnels will be declared to be works for the general advantage of Canada

Although Section 92 of the Constitution gives the federal government jurisdiction over international crossings and provision is contained in most of the Special Acts respecting international bridges, this provision reinforces federal jurisdictional responsibility for all vehicular international bridges/tunnels.

Inconsistency: This Act or any regulations made under this Act takes precedence over any Special International Bridge Act.

Application: The provisions are applicable to any proposal for construction or alteration that has been submitted to the Government of Canada prior to the Act coming into force.

3. CTA Amendments - General

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Approval of New Crossings: Requirement for Governor in Council approval, on the recommendation of the Minister of Transport, for the construction of an international bridge or tunnel.

There is currently no defined process for approving new international bridges/tunnels. In the past, each new bridge was the subject of Special legislation and mirror legislation was also passed by Congress.

Americans have streamlined their process and have replaced the requirement for legislation by a Presidential Permit process.

Approval for Alterations to Existing Crossings:(Alteration includes conversion, extension or change in use but does not include operation and maintenance.These provisions apply to both new and existing crossings.)

Proponent must submit an application to the Minister of Transport.Governor in Council may impose Terms and Conditions of approval.Failure to obtain approval may lead to the alteration, removal, or destruction of the infrastructure.Penalties for contravention (up to $500,000 and/or two years imprisonment).

3. CTA Amendments – General (cont’d)

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Regulations for New and Existing Crossings The Governor in Council may make regulations respecting Maintenance and Repair, Operations, Safety and Security.

Incorporation by Letters PatentMay issue letters patent of incorporationMay issue supplementary letters patent amending the originalMay revoke letters patent

Shares of a CorporationCanada or a parent Crown corporation may acquire, hold, dispose of shares of a corporation that owns or operates an international bridge or tunnel.

EnforcementCanada may inspect, investigate or audit any international bridge or tunnel.

3. CTA Amendments – General (Cont’d)

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4. Guidelines for New Constructionand Alterations

In order to obtain Governor in Council approval for new construction or alteration to existing structures, application must be made to the Minister of Transport.

The complete application will consist of standard/generic information as listed in the application guidelines, AND any additional information that the Minister requests after receipt of the original application.

When the Minister is satisfied that all required information has been submitted and that all affected authorities have been consulted, the Minister will forward to the Governor in Council a recommendation for approval or rejection of the application (similar process to the U.S. Presidential Permit).

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4. Guidelines for New Constructionand Alterations (Cont’d)

Decisions to be made:

Guidelines for the initial application:

- identification of proponent and partners

- needs assessment, rationale, risk analysis

- environmental assessment

- financing strategy

Define roles and responsibilities of the Department:

- Consultation with key stakeholders

- Timelines for processing applications

- Format for seeking Governor in Council approval

Process to obtain GIC approval and imposition of specific terms and conditions on the project/proponent.

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5. Regulations –Maintenance & Repair

Rationale: To ensure that the international bridges and tunnels are being maintained in a manner that will maximize their long-term viability.

Decisions to be made:

Information required to be submitted to the Minister

- content of reports – what is normally produced by the operator?

- frequency of submissions – annual?

- format – electronic?

Roles and responsibilities of the Minister

- review of reports – who? - designation of persons to evaluate?

- inspection of facilities – conditions under which would be done?

- direction to operator to fix or repair – content of order?

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5. Regulations - Safety

Rationale: To assure the government and the public that the international bridge and tunnel crossings are structurally safe for users.

Decisions to be made:

Information required to be submitted to the Minister

- safety inspection reports – applicable industry standard?

- inspections – 3rd party or in-house?

- frequency of submissions – annual?

Roles and responsibilities of the Minister

- review of reports – who? – criteria for questioning the findings?

- inspection of facilities – who? - conditions to initiate an audit?

- safety requirements – processes and timelines to achieve?

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5. Regulations - SecurityRationale: To assure the government that the international bridge

and tunnel operators have taken the appropriate steps to identify and mitigate security risks on the crossings.

Decisions to be made:

Information required to be submitted to the Minister

- Threat and vulnerability assessments – information to submit?

- Security plans & security management systems – defined?

- Mitigation efforts – Determination of appropriate level of risk?

Roles and responsibilities of the Minister

- review of reports – who?

- information requirements – minimum need? – confidentiality?

- significant security risk – how defined? – process to resolve?

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5. Regulations - Operations & UseRationale: To ensure that the international bridges and tunnels,

as key parts of the international transportation system, are operated and managed in the national interest.

Decisions to be made:

Conditions/circumstances under which the Minister may intervene in the operations of the crossing:

- when restricted use and/or access to the crossing is deemed to be unwarranted, discriminatory, and/or not in the national interest

- to impose certain restrictions on use of the bridge and its facilities for non-transportation related purposes or where safety is an issue

-where tolls, fees or other charges are determined to be having a negative effect on the efficient flow of traffic

- when the level of service provided to the public is unsatisfactory Procedures for dealing with complaints from the public.

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6. Current Status

Second reading of Bill C-44 is scheduled for the week of May 30, 2005.

Consultations with bridge authorities is ongoing.

There is broad support for the intent of the bill, and agreement that the federal government should be exercising more effective oversight of these critical pieces of infrastructure.

Should Bill C-44 not be successful, TC may introduce a separate piece of legislation relating solely to international bridges and tunnels.