1. WORLD-CLASS TANKER SAFETY SYSTEM
& ARCTIC INITIATIVES
Houston, TX – February 19, 2014

2. World-Class Tanker Safety
Government of Canada announced the creation of a World-Class Tanker Safety System in March 2013.
While the current tanker safety system has served us well for many years, it is essential that it be strengthened to meet future needs, as the transportation of Canadian exports is expected to grow.
Regional breakdown for oil transported as cargo in Canadian waters over the last 10 years
Region
Approx. annual average over last 10 years in million tonnes (MT)
Pacific Coast
6 MT (Canadian Traffic)
37 MT (US traffic transitting through Canadian waters)
Great Lakes and St. Lawrence Seaway
24 MT
Estuary and Gulf of St. Lawrence
67 MT
Atlantic Coast
192 MT

3. ELEMENTS OF A WORLD-CLASS REGIME:
LIABILITY AND COMPENSATION
Polluter pay principle
International consistency
Adequate protection
PREPAREDNESS
AND RESPONSE
Public, private, and community partnerships
Well-established Incident Command Structure
Risk-based planning, capacity , and response time
Well-stocked response “toolkit”
Science and technology for clean-up
PREVENTION
Safe tankers
Modern and charted navigation system
Navigation plans for high-traffic waters
Systematic surveillance and monitoring
Preventing Spills
from Happening
Responding and Cleaning in Case of a Spill
Polluters Pay; Adequate Compensation for Damages

4. FEDERAL ACTIONS TO CREATE A WORLD-CLASS REGIME
Measures already taken include:
Inspect 100% of foreign tankers annually and every year thereafter
Expand National Aerial Surveillance Program
Implement an Incident Command System within the Canadian Coast Guard
Review existing pilotage and tug escort requirements
Designate port at Kitimat as public to enhance traffic control
Conduct scientific research on diluted bitumen
Make targeted improvements to Canada’s system of aids to navigation and develop options to enhance Canada’s current navigation system
Review current liability and compensation regime
Bill C-3 - Safeguarding Canada’s Seas and Skies Act
Amend Canada Shipping Act, 2001 to strengthen current requirements for oil handling facilities, increase oversight/enforcement, and enhance response to spill incidents
Creation of the Tanker Safety Expert Panel to review and recommend ways to strengthen Canada’s Marine Oil Spill Preparedness and Response Regime

5. TANKER SAFETY EXPERT PANEL: CONTEXT
Panel mandate: to review and assess Canada’s current Ship-Source Oil Spill Preparedness and Response regime, and propose new ways to enhance it
Phase I: Regime South of 60° (completed November 2013)
Phase II: Regime for the Arctic (North of 60°) and Hazardous and Noxious Substances (September 2014)
Over the Spring and Summer 2013, the Panel conducted public engagement, research and analysis on the regime South of 60°

6. TANKER SAFETY EXPERT PANEL: Key recommendations (South of 60°)
The Panel recognized that, due in large part to the strong prevention measures in place, Canada has not had any significant oil spills since the current regime was implemented
To help ensure Canada is prepared for future opportunities, the Panel made 45 recommendations that fall into five themes:
Preparedness and Response
Strengthening the Polluter Pays Principle
Leadership and Stewardship
Communication and Engagement
Continuous Improvement

7. PANEL RECOMMENDATIONS: Preparedness and response
“One size does not fit all”: proposes adopting a risk-based Area Response Planning model
Conduct national and local risk assessments
Tailor responses to local risks/conditions
Increase collaboration with Response Organizations and other stakeholders
Expand “toolkit” of response techniques (e.g., Spill-Treating Agents)
Increase access to scientific expertise/information
Ensure Response Organizations have capacity to respond to most probable spill scenarios, and have access to additional support in the event of a worst-case scenario

8. OTHER PANEL RECOMMENDATIONS
Leadership and Stewardship: recommends a number of steps to:
Strengthen integration and collaboration across government, industry, and communities
Enhance scientific leadership
Communication and Engagement: proposes measures to enhance public communications/outreach
Continuous Improvement: proposes measures to ensure that the regime remains World-Class through regular feedback and assessment

9. PANEL RECOMMENDATION: Strengthening ship-source liability and compensation
Canada remains party to international conventions and funds (International Oil Pollution Compensation Funds)
Abolish limit of liability for Ship-Source Oil Pollution Fund (SOPF)
Federal backstopping to be available in the extreme event that damages exceed amounts available in the SOPF, with amounts to be reimbursed with interest through a levy on users

10. Other issues UNDER review
Options for enhancing Canada's current navigation system (e.g., aids to navigation, hydrographic charts)
The behaviour of non-conventional petroleum products, such as diluted bitumen, in a marine environment

11. NEXT STEPS
Engage key stakeholders across Canada on Panel recommendations for a World-Class Tanker Safety System (South of 60°)
Broad range of stakeholders, including Response Organizations, industry, ports, provincial governments
First Nations
Western Canada (completed in January)
Central and Eastern Canada (completed in January)
Tanker Safety Expert Panel beginning its review of preparedness and response regime for:
Oil spills in the Arctic (North of 60°)
Hazardous and Noxious Substances

12. NEXT STEPS (cont’d)
Consider Area Response Planning to address future needs to ensure that Canada’s regime is as effective as possible
Should the response system be more flexible and responsive to risk type/level and local conditions?
How would we implement such a system?
How should we work with interested parties and the broader public be kept informed of steps taken in preventing spills, responding to them when they do happen, and ensuring that reasonable compensation is available?

13. Arctic initiatives Domestic International
Preparation for updates to the Canadian Arctic regime
Northern Marine Corridors
International
Mandatory Polar Code

14. Julie Gascon Executive Director
Domestic Vessel Regulatory Oversight & Boating Safety Marine Safety and Security
Transport Canada
(613)