Vessel Construction and Equipment Regulations: SOR/2023-257

Canada Gazette, Part II, Volume 157, Number 26

Registration
SOR/2023-257 December 4, 2023

CANADA LABOUR CODE

CANADA SHIPPING ACT, 2001

ARCTIC WATERS POLLUTION PREVENTION ACT

P.C. 2023-1187 December 1, 2023

Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport and the Minister of Natural Resources with respect to the provisions of the annexed Vessel Construction and Equipment Regulations other than sections 400 to 535, on the recommendation of the Minister of Transport and the Minister of Labour with respect to sections 400 to 422, on the recommendation of the Minister of Labour with respect to sections 423 to 428 and on the recommendation of the Minister of Transport with respect to sections 429 to 535, makes the annexed Vessel Construction and Equipment Regulations under

Vessel Construction and Equipment Regulations

Interpretation

Definitions

1 The following definitions apply in these Regulations.

2008 IS Code
means the annex to IMO Resolution MSC.267(85), International Code on Intact Stability, 2008, as amended from time to time. (Recueil IS 2008)
Act
means the Canada Shipping Act, 2001. (Loi)
cargo vessel
means a vessel other than a pleasure craft or passenger vessel. (bâtiment de charge)
constructed,
except in section 116, subsection 300(1) and section 301, has the same meaning as “ships constructed” in regulation 1.1.3.1 of Chapter II-1 of SOLAS. (construit)
FSS Code
means the annex to IMO Resolution MSC.98(73), International Code for Fire Safety Systems, as amended from time to time. (Recueil FSS)
inland voyage
has the same meaning as in section 1 of the Vessel Safety Certificates Regulations. (voyage en eaux internes)
IMO
means the International Maritime Organization. (OMI)
length,
in respect of a vessel, has the same meaning as in regulation 2.5 of Chapter II-1 of SOLAS. (longeur)
Minister
means the Minister of Transport. (ministre)
MLC 2006
means the Maritime Labour Convention, 2006, as amended from time to time. (MLC 2006)
near coastal voyage, Class 2
has the same meaning as in section 1 of the Vessel Safety Certificates Regulations. (voyage à proximité du littoral, classe 2)
passenger vessel
means a vessel that carries more than 12 passengers. (bâtiment à passagers)
recognized organization
means an organization or corporation with which the Minister has entered into an agreement or arrangement under paragraph 10(1)(c) of the Act. (organisme reconnu)
recommended practices and standards
means the recommended practices and standards for marine use published by a marine classification society, standards development organization, industrial or trade organization, government, government agency or international body. (normes et pratiques recommandées)
sheltered waters voyage
has the same meaning as in section 1 of the Vessel Safety Certificates Regulations. (voyage en eaux abritées)
SOLAS
means the International Convention for the Safety of Life at Sea, 1974, and the Protocol of 1988 relating to the Convention, as amended from time to time. (SOLAS)
tanker
has the same meaning as in regulation 2(h) of Chapter I of SOLAS. (bâtiment-citerne)
TP 15415
means the publication entitled Canadian Modifications for the Vessel Construction and Equipment Regulations, published by the Department of Transport in December 2023. (TP 15415)

“Should”, “Administration” and “ship”

2 (1) For the purpose of interpreting a document incorporated by reference in these Regulations,

“Ships of traditional build”

(2) For the purpose of interpreting MLC 2006, “ships of traditional build” is to be read as “wooden vessels of primitive build”.

TP 15415 — Canadian modifications

(3) In these Regulations, a reference to a provision of SOLAS or MLC 2006 is to be read as a reference to that provision as modified by TP 15415.

Footnotes

3 For the purposes of these Regulations, any guidelines, recommendations, requirements and similar matters set out in a document referred to in a footnote to a document that is incorporated by reference into these Regulations are to be considered mandatory.

Application

Canadian vessels

4 (1) These Regulations, other than Part 2, apply in respect of the following Canadian vessels:

Canadian vessels — Part 2

(2) Part 2 applies in respect of Canadian vessels that are required to be registered or listed under Part 2 of the Act.

Foreign vessels

5 Section 117 applies in respect of foreign vessels in the internal waters of Canada that navigate in frazil ice or ice slush conditions.

Drilling and other activities

6 These Regulations apply in respect of vessels referred to in sections 4 and 5 that are capable of engaging in the drilling for, or the production, conservation or processing of, oil or gas, except vessels that are on location and engaged in one of those activities in an area referred to in

Non-application

7 These Regulations do not apply in respect of

Grandfathered Vessels

Vessels constructed before coming into force

8 A vessel that is one of the following vessels and that is constructed before the day on which this section comes into force may comply with the requirements respecting construction and equipment under the Act that applied to the vessel on the day before that day instead of the requirements set out in these Regulations and, if it does so, is considered to be a grandfathered vessel for the purposes of sections 9 to 11:

Limitations on grandfathering — immediate

9 Despite section 8, a grandfathered vessel must comply with

Limitations on grandfathering — first anniversary

10 Despite section 8, a grandfathered vessel must comply with the following requirements beginning on the first anniversary of the day on which section 8 comes into force:

Limitations on grandfathering — parts of a vessel

11 (1) Despite section 8, the authorized representative of a grandfathered vessel must ensure that the following parts, machinery, systems and equipment comply with the requirements of these Regulations:

Cessation of grandfathering — entire vessel

(2) A grandfathered vessel whose intended service changes in such a manner that the vessel can no longer comply with any one of the requirements respecting construction and equipment under the Act that were in effect on the day before the day on which section 8 comes into force is no longer a grandfathered vessel and must comply with the requirements respecting construction and equipment of these Regulations.

Cessation of grandfathering — certification

(3) A grandfathered vessel that ceases to hold a certificate issued under the Vessel Safety Certificates Regulations for a period of more than five years is no longer a grandfathered vessel and must comply with the requirements respecting construction and equipment of these Regulations.

Compliance

Deemed construction date

12 A vessel that is one of the following vessels and that was constructed more than 10 years before the day of its most recent registration under Part 2 of the Act must comply with these Regulations as if it were constructed not more than 10 years before that day:

Substitute Safety Equipment

Equivalent level of safety

13 (1) If the Minister determines that there are circumstances in which equipment other than the safety equipment required by these Regulations provides a level of safety at least equivalent to that of the required safety equipment, that other equipment may be substituted for the required safety equipment in those circumstances if it bears a mark or label indicating that it conforms to the recommended practices and standards applicable to that type of equipment.

Criteria

(2) To determine the level of safety provided by the other equipment in those circumstances, the Minister must assess the following factors:

[14 to 99 reserved]

PART 1
Requirements

Construction — Structure, Subdivision and Stability, Machinery and Electrical Installations

SOLAS Chapter II-1 — mechanical propulsion

100 (1) A vessel that has a mechanical means of propulsion must comply with the requirements set out in Chapter II-1 of SOLAS, except those set out in the following regulations:

SOLAS Chapter II-1 — no mechanical propulsion

(2) A vessel that does not have a mechanical means of propulsion must comply with the following requirements:

2008 IS Code — Part B

101 (1) A vessel must comply with the recommendations set out in part B of the 2008 IS Code and those recommendations are to be interpreted as expressing an obligation.

2008 IS Code — Canadian modifications

(2) For the purposes of this section, a reference to a recommendation in the 2008 IS Code is to be read as a reference to that recommendation as modified by the publication entitled Canadian Modifications to the International Code on Intact Stability, 2008, TP 7301, published by the Department of Transport in December 2023.

Damage stability — mechanical propulsion

102 (1) Despite subsection 100(1), a passenger vessel that has a mechanical means of propulsion and that is not a Safety Convention vessel may comply with the requirements of the publication entitled Damage Stability Standards for Non-Convention Passenger Vessels, TP 10943, published by the Department of Transport in December 2023, instead of complying with regulations 6 to 8 of Chapter II-1 of SOLAS.

Damage stability — no mechanical propulsion

(2) A passenger vessel that does not have a mechanical means of propulsion must comply with the requirements set out in the publication referred to in subsection (1).

Life-saving Appliances and Arrangements

SOLAS Chapter III

103 (1) A vessel must comply with the requirements set out in Chapter III of SOLAS, except those set out in regulations 8, 10, 19, 27, 30 and 37.

LSA Code — Canadian modifications

(2) For the purposes of subsection (1), a reference in Chapter III of SOLAS to a provision of the LSA Code is to be read as a reference to that provision as modified by Part A of TP 14475.

LSA Code — testing and approval

(3) If a life-saving appliance or arrangement must comply with the requirements of the LSA Code, it must be tested in accordance with the annex to IMO Resolution MSC.81(70), Revised Recommendation on Testing of Life-saving Appliances, as amended from time to time, and be of a type approved by the Minister as complying with those requirements.

Alternative appliances and arrangements

(4) If TP 15415 allows for alternatives to the life-saving appliances or arrangements required under Chapter III of SOLAS, those alternative appliances or arrangements must comply with the requirements set out in Part B of TP 14475, be tested in accordance with Part C of TP 14475, and be of a type approved by the Minister as complying with those requirements.

Definitions

(5) The following definitions apply in this section.

LSA Code
means the annex to IMO Resolution MSC.48(66), International Life-Saving Appliance Code, as amended from time to time. (Recueil LSA)
TP 14475
means the publication entitled Canadian Life Saving Appliance Standard, published by the Department of Transport, as amended from time to time. (TP 14475)

Chemical Tankers

SOLAS Chapter VII

104 A chemical tanker, including one that does not have a mechanical means of propulsion, must comply with the requirements set out in Part B of Chapter VII of SOLAS.

Gas Carriers

SOLAS Chapter VII

105 A gas carrier, including one that does not have a mechanical means of propulsion, must comply with the requirements set out in Part C of Chapter VII of SOLAS.

Nuclear Vessels

SOLAS Chapter VIII

106 (1) A nuclear vessel must comply with the requirements set out in Chapter VIII of SOLAS.

High-Speed Craft

SOLAS Chapter X

107 (1) Subject to subsection (2), a high-speed craft that is referred to in regulation 2 of Chapter X of SOLAS must comply with the requirements set out in the annex to IMO Resolution MSC.97(73), International Code of Safety for High-Speed Craft, 2000, as amended from time to time.

Non-applicable requirements — HSC Code

(2) The following requirements set out in the annex to the resolution referred to in subsection (1) do not apply:

Bulk Carriers

SOLAS Chapter XII

108 A bulk carrier that is a Safety Convention vessel must comply with the requirements set out in regulations 4, 5, 6.2, 12 and 13 of Chapter XII of SOLAS.

Vessels Carrying Industrial Personnel

SOLAS Chapter XV

109 A vessel that carries industrial personnel must comply with the requirements set out in Chapter XV of SOLAS.

Special Purpose Vessels

SPS Code

110 A special purpose vessel must comply with the requirements set out in the annex to IMO Resolution MSC.266(84), Code of Safety for Special Purpose Ships, 2008, as amended from time to time, except those set out in Chapters 9 to 11.

Offshore Supply Vessels

Resolution MSC.235(82)

111 An offshore supply vessel must comply with the requirements set out in the annex to IMO Resolution MSC.235(82), Guidelines for the Design and Construction of Offshore Supply Vessels, 2006, as amended from time to time, except those set out in section 7 of the annex.

Mechanically Connected Tug and Barge Combinations

Requirements

112 (1) The authorized representative of the pushing vessel and pushed vessel in a mechanically connected tug and barge combination must ensure that the design and construction of the connecting system conform to the additional integrated tug and barge requirements of a recognized organization.

Particular case

(2) For the purposes of subsection (1), if the pushing vessel and pushed vessel have different authorized representatives, they are jointly responsible for complying with that subsection.

Definition of mechanically connected tug and barge combination

(3) For the purposes of this section, a mechanically connected tug and barge combination is any combination of a pushing vessel and a pushed vessel, including an integrated tug and barge combination and an articulated tug and barge combination, if the pushed vessel does not have a mechanical means of propulsion and if the two vessels are mechanically connected by means other than wire ropes, chains, lines or other tackle. The combination is considered to be composed of two separate vessels.

Tankers Carrying Deck Cargo

Bulk liquid — flash point exceeding 60°C

113 A tanker that does not have a mechanical means of propulsion and that transports liquid in bulk with a flash point of more than 60°C must not carry deck cargo unless

Bulk liquid — flash point of 60°C or less

114 (1) Subject to subsection (3), a tanker that does not have a mechanical means of propulsion and that transports liquid in bulk with a flash point of 60°C or less must not carry deck cargo unless

Approval by Minister — risk assessment

(2) The Minister must approve the risk assessment referred to in paragraph (1)(a) if it complies with the principles of the Formal Safety Assessment methodology set out in IMO Circular MSC.1/Circ.1023, Guidelines for Formal Safety Assessment (FSA) for use in the IMO rule-making process, as amended from time to time, or an equivalent methodology, and the risk assessment includes an assessment of

Exception to risk assessment

(3) The authorized representative of a tanker that does not have a mechanical means of propulsion and that carries deck cargo and transports oil in bulk with a flash point of more than 38°C but not more than 60°C does not have to submit the risk assessment if the vessel

Mobile Offshore Drilling Units

MODU Code

115 A mobile offshore drilling unit must comply with the requirements set out in the annex to IMO Resolution A.1023(26), Code for the Construction and Equipment of Mobile Offshore Drilling Units, 2009, as amended from time to time, except those set out in Chapters 11 and 14.

Vessels of Particular Design

Equivalent level of safety

116 If the design of a type of vessel would render it unsafe, unsuitable or impossible to construct in accordance with the requirements of these Regulations, vessels of that design may be constructed according to the recommended practices and standards for that design if the Minister determines that they provide a level of safety at least equivalent to that provided by the requirements of these Regulations.

Foreign Vessels

Navigation in frazil ice or ice slush

117 The authorized representative of a foreign vessel in the internal waters of Canada that navigates in frazil ice or ice slush conditions must ensure that the requirements for the design and construction of sea inlets set out in the annex to IMO Circular MSC/Circ.504, Guidance on design and construction of sea inlets under slush ice conditions, as amended from time to time, are complied with or that other means are used to prevent frazil ice or ice slush from blocking sea inlets.

[118 to 199 reserved]

PART 2
Crew Accommodation Spaces and Recreational Facilities

“Competent authority” and guidelines

200 For the purposes of this Part, every reference to “competent authority” in MLC 2006 is to be read as “Minister” and the guidelines in the regulations of MLC 2006 that are incorporated by reference are to be interpreted as expressing an obligation.

Requirements — Title 3 of MLC 2006

201 A vessel must comply with the standards and guidelines for on-board accommodation and recreational facilities that are set out in standard A3.1 and guideline B3.1 of MLC 2006, other than those set out in the following provisions:

Exception — vessels less than 200 gross tonnage

202 (1) The following provisions of MLC 2006 do not apply to a vessel of less than 200 gross tonnage that engages only on inland voyages:

Exception — towing vessels

(2) The following provisions of MLC 2006 do not apply to a towing vessel of less than 5 gross tonnage:

[203 to 299 reserved]

PART 3
Additional Requirements

Elevators

Conformity — standard or equivalent requirements

300 (1) Every elevator on a vessel must be designed, constructed, installed, inspected and tested in accordance with

Definition of elevator

(2) For the purposes of subsection (1), elevator includes a service elevator, escalator or moving walkway that is used to move personnel, passengers, maintenance equipment or ship supplies, except for tackle that is covered by the Cargo, Fumigation and Tackle Regulations.

Towing

Requirements

301 (1) A vessel that is constructed or converted for the purposes of towing must comply with the following requirements:

Assessment of bollard pull

(2) A vessel that is constructed or converted for the purposes of towing must not undertake a towing operation unless the vessel’s bollard pull has been assessed and determined to be adequate for the operation in accordance with the recommended practices and standards and that assessment and determination are documented.

Fire Protection on Board Vessels without Mechanical Means of Propulsion

Application

302 Sections 303 to 313 apply in respect of vessels that do not have a mechanical means of propulsion.

Approved systems

303 (1) The authorized representative of a vessel must ensure that the fixed fire-extinguishing system referred to in section 305 and the inert gas system referred to in subsection 308(1) are of a type approved by the Minister as complying with the requirements of the FSS Code.

Approved fire extinguisher

(2) The authorized representative of a vessel must ensure that the fire extinguishers referred to in paragraph 304(b), subparagraphs 305(a)(ii) and (iii), (b)(ii) and (c)(ii) and paragraphs 305(d) and (e)

Approved smoke detector

(3) The authorized representative of a vessel must ensure that the smoke detector referred to in subsection 313(2) is certified by a product certification body or is of a type that has been approved by a recognized organization.

Definition of product certification body

(4) For the purposes of this section, product certification body means a body that is accredited by the Standards Council of Canada, or by any other national accreditation organization that is a member of the International Accreditation Forum Multilateral Recognition Arrangement (MLA), to give third-party written assurance that a product meets the specified requirements for the product, including initial certification and maintenance of that certification.

Vessels carrying a person

304 A vessel that carries a person must be equipped with the following firefighting equipment and systems:

Vessels equipped with machinery

305 A vessel that is equipped with machinery must carry the following fire-extinguishing equipment and systems:

Fire-extinguishing system

306 A tanker must have a deck foam fire-extinguishing system.

Venting system

307 A tanker must have a venting system with devices that prevent the passage of flame into the cargo tanks.

Inert gas system

308 (1) A tanker that is fitted with an inert gas system must comply with the requirements set out in regulation 4.5.5.3 of Chapter II-2 of SOLAS.

Alternative to FSS Code

(2) Despite subsection 303(1), the inert gas system may be of a type approved by the Minister as complying with the requirements of a recognized organization instead of the requirements set out in the FSS Code.

Installation equivalent to inert gas system

(3) A tanker that does not have a mechanical means of propulsion and that is fitted with an installation equivalent to an inert gas system must comply with the requirements set out in regulation 4.5.5.4 of Chapter II-2 of SOLAS.

Cargo tank purging and gas-freeing

309 A tanker that is not fitted with an inert gas system or equivalent installation must have other arrangements for the purging or gas-freeing of empty cargo tanks and the arrangements must comply with the requirements set out in regulation 4.5.6 of Chapter II-2 of SOLAS.

Protection of cargo area

310 A tanker must be fitted with drip pans, cargo hoses and tank washing hoses in accordance with regulation 4.5.9 of Chapter II-2 of SOLAS.

Protection of cargo tanks

311 A vessel must not be fitted with valves, fittings, tank opening covers, cargo vent piping or cargo piping made with materials that are readily rendered ineffective by heat.

Operational readiness and maintenance

312 The master of a vessel must ensure that the firefighting equipment and systems and fire protection systems on board the vessel comply with the requirements set out in regulation 14 of Chapter II-2 of SOLAS.

Vessel that can accommodate persons overnight

313 (1) A vessel that can accommodate persons overnight must comply with the requirements set out in sections 205 to 234 of the Vessel Fire Safety Regulations or the fire safety requirements for accommodation barges published by a recognized organization.

Smoke detectors

(2) The vessel must have a smoke detector installed in every cabin, accommodation space, service space, control station and machinery space.

[314 to 399 reserved]

PART 4
Consequential and Related Amendments, Repeals and Coming into Force

Consequential and Related Amendments

Canada Labour Code
Maritime Occupational Health and Safety Regulations

400 The definitions passenger vessel and special purpose vessel in section 1 of the Maritime Occupational Health and Safety Regulations footnote 1 are repealed.

401 (1) Paragraph 10(a) of the Regulations is replaced by the following:

(2) Section 10 of the Regulations is amended by adding “or” at the end of paragraph (b), by striking out “or” at the end of paragraph (c) and by repealing paragraph (d).

402 Paragraph 12(5)(d) of the Regulations is replaced by the following:

403 Subsections 19(3) to (5) of the Regulations are repealed.

404 Sections 20 to 23 of the Regulations are repealed.

405 (1) Subsections 24(1) and (2) of the Regulations are repealed.

(2) Subsection 24(3) of the Regulations is replaced by the following:

(3) The deck covering in every crew accommodation must be kept free of grease, oil or any other slippery substance and any material or object that may create a hazard to an employee.

406 Section 25 of the Regulations is repealed.

407 The heading “General” before section 26 and sections 26 to 31 of the Regulations are repealed.

408 Sections 32 to 35 of the Regulations are repealed.

409 Subsection 36(1) of the Regulations is repealed.

410 Sections 37 to 40 of the Regulations are repealed.

411 (1) Paragraph 41(1)(a) of the Regulations is repealed.

(2) Paragraph 41(2)(a) of the Regulations is repealed.

412 Sections 42 to 44 of the Regulations are repealed.

413 Section 45 of the Regulations is replaced by the following:

414 The heading before section 46 and sections 46 to 53 of the Regulations are repealed.

415 The heading before section 55 and sections 55 to 59 of the Regulations are repealed.

416 Subsection 68(2) of the Regulations is repealed.

417 Section 69 of the Regulations is repealed.

418 Part 11 of the Regulations is repealed.

419 Section 158 of the Regulations is replaced by the following:

420 Section 160 of the Regulations and the heading before it are repealed.

421 Subsection 179(1) of the Regulations is repealed.

422 Section 199 of the Regulations and the heading before it are repealed.

Administrative Monetary Penalties (Canada Labour Code) Regulations

423 Item 10 of Division 4 of Part 2 of Schedule 1 to the Administrative Monetary Penalties (Canada Labour Code) Regulations footnote 2 is repealed.

424 Items 75 to 84 of Division 4 of Part 2 of Schedule 1 to the Regulations are repealed.

425 Items 85 to 124 of Division 4 of Part 2 of Schedule 1 to the Regulations are replaced by the following:
Item

Column 1

Provision

Column 2

Violation Type
85 24(3) C

426 Items 130 to 138, 144 and 147 to 153 of Division 4 of Part 2 of Schedule 1 to the Regulations are repealed.

427 The portion of item 154 of Division 4 of Part 2 of Schedule 1 to the Regulations in Column 1 is replaced by the following:
Item

Column 1

Provision
154 45

428 Items 155 to 176, 180, 181, 184 to 199, 216, 217, 441 to 458, 550 and 612 of Division 4 of Part 2 of Schedule 1 to the Regulations are repealed.

Canada Shipping Act, 2001
Hull Construction Regulations

429 Subsection 3(1) of the Hull Construction Regulations footnote 3 is replaced by the following:

Life Saving Equipment Regulations

430 (1) The definition accredited service technician in subsection 2(1) of the Life Saving Equipment Regulations footnote 4 is repealed.

(2) Subsection 2(1) of the Regulations is amended by adding the following in alphabetical order:

IMO Resolution MSC.81(70)
means the annex to International Maritime Organization Resolution MSC.81(70), Revised Recommendation on Testing of Life-Saving Appliances, as amended from time to time. (résolution MSC.81(70) de l’OMI)
inland voyage
has the same meaning as in section 1 of the Vessel Safety Certificates Regulations. (voyage en eaux internes)
LSA Code
means the annex to International Maritime Organization Resolution MSC.48(66), International Life-Saving Appliance Code, as amended from time to time. (Recueil LSA)
near coastal voyage, Class 1
has the same meaning as in section 1 of the Vessel Safety Certificates Regulations. (voyage à proximité du littoral, classe 1)
near coastal voyage, Class 2
has the same meaning as in section 1 of the Vessel Safety Certificates Regulations. (voyage à proximité du littoral, classe 2)
sheltered waters voyage
has the same meaning as in section 1 of the Vessel Safety Certificates Regulations. (voyage en eaux abritées)
TP 14475
means the publication entitled Canadian Life Saving Appliance Standard, published by the Department of Transport in December 2023. (TP 14475)
unlimited voyage
has the same meaning as in section 1 of the Vessel Safety Certificates Regulations. (voyage illimité)

(3) Subsection 2(2) of the Regulations is repealed.

431 Section 3 of the Regulations is amended by striking out “or” at the end of paragraph (d), by adding “or” at the end of paragraph (e) and by adding the following after paragraph (e):

432 Section 5 of the Regulations is replaced by the following:

433 Paragraph 5.2(b) of the Regulations is replaced by the following:

434 The heading before section 7 of the Regulations is replaced by the following:

Class I Ships
(Ships that are over five tons gross tonnage and are (i) Safety Convention ships that are certified to carry more than 12 passengers on unlimited voyages, or (ii) ships that are not Safety Convention ships and that are certified to carry more than 12 passengers on unlimited voyages or near coastal voyages, Class 1)

435 (1) The portion of section 7 of the Regulations before paragraph (a) is replaced by the following:

(2) Paragraphs 7(i) and (j) of the Regulations are replaced by the following:

(3) Paragraph 7(l) of the Regulations is replaced by the following:

436 Section 8 of the Regulations is replaced by the following:

437 The portion of section 9 of the Regulations before paragraph (a) is replaced by the following:

438 (1) Paragraphs 10(k) and (l) of the Regulations are replaced by the following:

(2) Paragraph 10(n) of the Regulations is replaced by the following:

439 (1) Subparagraph 11(c)(ii) of the Regulations is replaced by the following:

(2) Paragraphs 11(j) and (k) of the Regulations are replaced by the following:

(3) Paragraph 11(m) of the Regulations is replaced by the following:

440 (1) Subparagraph 12(b)(ii) of the Regulations is replaced by the following:

(2) Paragraphs 12(h) and (i) of the Regulations are replaced by the following:

441 (1) The portion of items 5 and 6 of the table to paragraph 14(c) of the Regulations in column I is replaced by the following:
Item

Column I

Length of Ship
5 91.4 m or over (near coastal voyage, Class 2)
6 91.4 m or over (inland voyage)

(2) The heading of Table I to paragraph 14(f) of the Regulations is replaced by the following:

Near Coastal Voyages, Class 2

(3) The heading of Table II to paragraph 14(f) of the Regulations is replaced by the following:

Inland Voyages

(4) Paragraphs 14(h) and (i) of the Regulations are replaced by the following:

(5) Paragraph 14(k) of the Regulations is replaced by the following:

442 The Regulations are amended by adding the following after section 15:

443 Paragraphs 16(1)(g) to (i) of the Regulations are replaced by the following:

444 The Regulations are amended by adding the following after section 16:

16.1 Instead of complying with section 16, a ship may comply with section 17 if it

445 Paragraphs 17(5)(c) and (d) of the Regulations are replaced by the following:

446 Paragraphs 18(6)(a) and (b) of the Regulations are replaced by the following:

447 Paragraphs 19(8)(a) to (c) of the Regulations are replaced by the following:

448 The heading “Class IX Ships (Ships that are over 15 tons gross tonnage and are (i) Safety Convention ships that are not certified to carry passengers, or that are certified to carry 12 or fewer passengers, on international voyages, or (ii) ships that are not Safety Convention ships and that are not certified to carry passengers, or that are certified to carry 12 or fewer passengers, on foreign voyages or home-trade voyages, Class I)” before section 20 of the Regulations is replaced by the following:

Class IX Ships
(Ships that are over 15 tons gross tonnage and are (i) Safety Convention ships that are not certified to carry passengers, or that are certified to carry 12 or fewer passengers, on unlimited voyages, or (ii) ships that are not Safety Convention ships and that are not certified to carry passengers, or that are certified to carry 12 or fewer passengers, on unlimited voyages or near coastal voyages, Class 1)

449 (1) Paragraphs 20(1)(h) and (i) of the Regulations are replaced by the following:

(2) Paragraph 20(1)(k) of the Regulations is replaced by the following:

450 (1) Paragraphs 22(1)(k) and (l) of the Regulations are replaced by the following:

(2) Paragraph 22(1)(n) of the Regulations is replaced by the following:

451 (1) Paragraphs 22.1(1)(i) and (j) of the Regulations are replaced by the following:

(2) Paragraph 22.1(1)(l) of the Regulations is replaced by the following:

(3) Paragraphs 22.1(2)(h) and (i) of the Regulations are replaced by the following:

(4) Paragraph 22.1(2)(k) of the Regulations is replaced by the following:

(5) Clause 22.1(3)(a)(i)(A) of the Regulations is replaced by the following:

452 The heading “Class X Ships (Ships that are over 15 tons gross tonnage, are not Safety Convention ships and are not certified to carry passengers, or are certified to carry 12 or fewer passengers, on home-trade voyages, Class II, home-trade voyages, Class III, home-trade voyages, Class IV, inland voyages, Class I, inland voyages, Class II, minor waters voyages, Class I, or minor waters voyages, Class II)” before section 23 of the Regulations is replaced by the following:

Class X Ships
(Ships that are over 15 tons gross tonnage, are not Safety Convention ships and are not certified to carry passengers, or are certified to carry 12 or fewer passengers, on near coastal voyages, Class 1, limited to 120 nautical miles from shore, near coastal voyages, Class 2, sheltered waters voyages, inland voyages, inland voyages limited to 25 nautical miles from shore, or near coastal voyages, Class 2, limited to five nautical miles from shore)

453 (1) Paragraphs 27.2(3)(d) and (e) of the Regulations are replaced by the following:

(2) Paragraph 27.2(3)(h) of the Regulations is replaced by the following:

454 (1) Paragraphs 27.3(h) and (i) of the Regulations are replaced by the following:

(2) Paragraph 27.3(k) of the Regulations is replaced by the following:

455 (1) Paragraphs 30(d) and (e) of the Regulations are replaced by the following:

(2) Paragraph 30(h) of the Regulations is replaced by the following:

456 The heading “Class I Ships (Ships that are over five tons gross tonnage and are (i) Safety Convention ships that are certified to carry more than 12 passengers on long international voyages, or (ii) ships that are not Safety Convention ships and that are certified to carry more than 12 passengers on foreign voyages or home-trade voyages, Class I)” before section 32 of the Regulations is replaced by the following:

Class I Ships
(Ships that are over five tons gross tonnage and are (i) Safety Convention ships that are certified to carry more than 12 passengers on unlimited voyages, or (ii) ships that are not Safety Convention ships and that are certified to carry more than 12 passengers on unlimited voyages or near coastal voyages, Class 1)

457 Paragraphs 39(c) to (e) of the Regulations are replaced by the following:

458 Paragraphs 49(c) to (e) of the Regulations are replaced by the following:

459 Paragraphs 59(b) to (d) of the Regulations are replaced by the following:

460 The Regulations are amended by adding the following after section 60:

60.1 Instead of complying with sections 52 to 60, a ship may comply with sections 61 to 65 if it

461 Paragraphs 64(a) to (c) of the Regulations are replaced by the following:

462 The Regulations are amended by adding the following after section 65:

463 Paragraphs 70(a) and (b) of the Regulations are replaced by the following:

464 Paragraph 74(a) of the Regulations is replaced by the following:

465 Paragraphs 79(a) and (b) of the Regulations are replaced by the following:

466 The heading “Class IX Ships (Ships that are over 15 tons gross tonnage and are (i) Safety Convention ships that are not certified to carry passengers, or that are certified to carry 12 or fewer passengers, on international voyages, or (ii) ships that are not Safety Convention ships and that are not certified to carry passengers, or that are certified to carry 12 or fewer passengers, on foreign voyages or home-trade voyages, Class I)” before section 81 of the Regulations is replaced by the following:

Class IX Ships
(Ships that are over 15 tons gross tonnage and are (i) Safety Convention ships that are not certified to carry passengers, or that are certified to carry 12 or fewer passengers, on unlimited voyages, or (ii) ships that are not Safety Convention ships and that are not certified to carry passengers, or that are certified to carry 12 or fewer passengers, on unlimited voyages or near coastal voyages, Class 1)

467 Paragraphs 91(b) to (d) of the Regulations are replaced by the following:

468 The heading before section 94 of the Regulations is replaced by the following:

Class X Ships
(Ships that are over 15 tons gross tonnage, are not Safety Convention ships and are not certified to carry passengers, or are certified to carry 12 or fewer passengers, on near coastal voyages, Class 1, limited to 120 nautical miles from shore, near coastal voyages, Class 2, sheltered waters voyages, inland voyages, inland voyages, limited to 25 nautical miles from shore, or near coastal voyages, Class 2, limited to five nautical miles from shore)

469 Paragraph 95(1)(a) of the Regulations is replaced by the following:

470 Paragraphs 96(2)(a) to (c) of the Regulations are replaced by the following:

471 Paragraphs 97(2)(a) to (c) of the Regulations are replaced by the following:

472 Paragraphs 102(c) to (f) of the Regulations are replaced by the following:

473 Paragraphs 108(c) to (f) of the Regulations are replaced by the following:

474 Section 110 of the Regulations is repealed.

475 Subsection 114(3) of the Regulations is replaced by the following:

476 Section 116 of the Regulations is replaced by the following:

477 Sections 118 to 120 of the Regulations are replaced by the following:

478 (1) The portion of items 1 to 9 of the table to section 121 of the Regulations in column II is replaced by the following:
Item

Column II

Schedule or Standard
1 LSA Code, TP 14475 and IMO Resolution MSC.81(70)
2 TP 14475
3 LSA Code, TP 14475 and IMO Resolution MSC.81(70)
4 LSA Code, TP 14475 and IMO Resolution MSC.81(70)
5 TP 14475
6 LSA Code, TP 14475 and IMO Resolution MSC.81(70)
7 LSA Code, TP 14475 and IMO Resolution MSC.81(70)
8 LSA Code, TP 14475 and IMO Resolution MSC.81(70)
9 LSA Code and IMO Resolution MSC.81(70)

(2) Item 10 of the table to section 121 of the Regulations is repealed.

(3) The portion of items 11 to 13 of the table to section 121 of the Regulations in column II is replaced by the following:
Item

Column II

Schedule or Standard
11 LSA Code, TP 14475 and IMO Resolution MSC.81(70)
12 LSA Code and IMO Resolution MSC.81(70)
13
  • (1) LSA Code, TP 14475 and IMO Resolution MSC.81(70); or
  • (2) Canadian General Standards Board standard CAN/CGSB-65.7, Life Jackets, in respect of Class 1 lifejackets
(4) The portion of items 15 to 19 of the table to section 121 of the Regulations in Column II is replaced by the following:
Item

Column II

Schedule or Standard
15 LSA Code and IMO Resolution MSC.81(70)
16 LSA Code and IMO Resolution MSC.81(70)
17
  • (1) LSA Code, TP 14475 and IMO Resolution MSC.81(70), for immersion suits made of a material with inherent insulation and designed to be worn without a lifejacket;
  • (2) Canadian General Standards Board standard CAN/CGSB-65.16-2005, Immersion Suit Systems; or
  • (3) Underwriters Laboratories standards ANSI/CAN/UL 15027-2, Standard for Immersion Suits - Part 2: Abandonment Suits, Requirements Including Safety, and ANSI/CAN/UL 15027-3, Standard for Immersion Suits - Part 3: Test Methods
18 LSA Code, TP 14475 and IMO Resolution MSC.81(70)
19
  • (1) LSA Code, TP 14475 and IMO Resolution MSC.81(70); or
  • (2) Canadian General Standards Board standard CAN/CGSB-65.7, Life Jackets, in respect of Class 1 or Class 2 lifejackets that provide Category IV thermal protection

479 Section 127 of the Regulations and the heading before it are repealed.

480 Paragraphs 129(a) and (b) of the Regulations are replaced by the following:

481 Section 146 of the Regulations is amended by adding the following after subsection (2):

(3) For greater certainty,

482 Section 148 of the Regulations is amended by adding the following after subsection (3):

483 Schedule I to the Regulations is repealed.

484 Schedule II to the Regulations is amended by replacing the references after the heading “SCHEDULE II” with the following:

485 The heading “Equipment To Be Carried by Lifeboats, Rescue Boats, Emergency Boats and Suitable Boats” before section 1 of Schedule II to the Regulations is replaced by the following:

Equipment To Be Carried by Approved Boats and Suitable Boats

486 The heading “Lifeboat Equipment” before section 1 of Schedule II and section 1 of Schedule II to the Regulations are repealed.

487 The heading before section 2 of Schedule II to the Regulations is replaced by the following:

Approved Boat Equipment

488 (1) The portion of subsection 2(1) of Schedule II to the Regulations before the table to that subsection is replaced by the following:

(2) The headings of columns II and III of the table to subsection 2(1) of Schedule II to the Regulations are replaced by “Voyages other than inland voyages” and “Inland voyages”, respectively.

(3) The portion of item 5 of the table to subsection 2(1) of Schedule II to the Regulations in columns II and III is replaced by the following:
Item

Column II

Voyages other than inland voyages

Column III

Inland voyages
5 1 that is attached to a release device at the forward end of the approved boat 1 that is attached to a release device at the forward end of the approved boat
(4) The portion of item 12 of the table to subsection 2(1) of Schedule II to the Regulations in column II is replaced by the following:
Item

Column II

Voyages other than inland voyages
12 1, unless a survival craft radar transponder is stowed in the approved boat

(5) The portion of subsection 2(2) of Schedule II to the Regulations before the table to that subsection is replaced by the following:

(6) The headings of columns II and III of the table to subsection 2(2) of Schedule II to the Regulations are replaced by “Voyages other than inland voyages” and “Inland voyages”, respectively.

(7) Paragraph 2(3)(b) of Schedule II to the Regulations is replaced by the following:

489 The heading before section 5 of Schedule II to the Regulations is replaced by the following:

Suitable Boat Equipment

490 (1) The portion of section 5 of Schedule II to the Regulations before paragraph (a) are replaced by the following:

(2) Subparagraph 5(a)(ii) of Schedule II to the Regulations is replaced by the following:

491 Section 6 of Schedule II to the Regulations and the heading before it are repealed.

492 Schedules III and IV to the Regulations are repealed.

493 The table to subsection 18(1) of Schedule V to the Regulations is amended by replacing “Home-Trade IV or Minor Waters II” and “Home-Trade IV and Minor Waters II” with “Sheltered Waters” in the headings of the columns.

494 Schedule V.1 to the Regulations is repealed.

495 Schedules VII and VIII to the Regulations are repealed.

496 The table to subsection 10(4) of Part I of Schedule IX to the Regulations is amended by replacing “Home-Trade IV or Minor Waters II” with “Sheltered Waters” in the headings of the columns.

497 Schedules XII and XIII to the Regulations are repealed.

498 Subparagraph 2(4)(a)(ii) of Schedule XIV to the Regulations is replaced by the following:

499 The Regulations are amended by replacing “home-trade voyages, Class II” and “home-trade Class II voyages” with “near coastal voyages, Class 1, limited to 120 nautical miles from shore” in the following provisions:

500 The Regulations are amended by replacing “home-trade voyages, Class IV, or minor waters voyages, Class II” and “home-trade IV or minor waters II voyages” with “sheltered waters voyages” in the following provisions:

501 The Regulations are amended by replacing “home-trade voyages, Class III, or inland voyages, Class I” with “near coastal voyages, Class 2, or inland voyages” in the following provisions:

502 The Regulations are amended by replacing “home-trade voyage, Class III” with “near coastal voyage, Class 2” in the following provisions:

503 The Regulations are amended by replacing “inland voyage, Class I” with “inland voyage” in the following provisions:

504 The Regulations are amended by replacing “inland voyages, Class II, or minor waters voyages, Class I” and “inland voyages, Class II or minor waters voyages, Class I” with “inland voyages, limited to 25 nautical miles from shore, or near coastal voyages, Class 2, limited to five nautical miles from shore” in the following provisions:

505 The Regulations are amended by replacing “home-trade voyage, Class IV, or a minor waters voyage, Class II” with “sheltered waters voyage”, with any necessary modifications, in the following provisions:

506 The Regulations are amended by replacing “a foreign voyage” with “an unlimited voyage” in the following provisions:

507 The Regulations are amended by replacing “home-trade voyage, Class I” with “near coastal voyage, Class 1” in the following provisions:

508 The Regulations are amended by replacing “home-trade voyage, Class II” with “near coastal voyage, Class 1, limited to 120 nautical miles from shore” in the following provisions:

509 The Regulations are amended by replacing “inland voyage, Class II, or a minor waters voyage, Class I” with “inland voyage, limited to 25 nautical miles from shore, or a near coastal voyage, Class 2, limited to five nautical miles from shore” in the following provisions:

510 The Regulations are amended by replacing “home-trade voyage, Class II, or a home-trade voyage, Class III” with “near coastal voyage, Class 1, limited to 120 nautical miles from shore, or a near coastal voyage, Class 2” in the following provisions:

511 The Regulations are amended by replacing “home-trade voyage, Class III, or an inland voyage, Class I” with “near coastal voyage, Class 2, or an inland voyage” in the following provisions:

Fishing Vessel Safety Regulations

512 Paragraph 3.29(b) of the Fishing Vessel Safety Regulations footnote 5 is replaced by the following:

513 Paragraph 3(a) of Schedule X to the Regulations is replaced by the following:

514 Section 4 of Schedule X to the Regulations is replaced by the following:

Marine Machinery Regulations

515 The Marine Machinery Regulations footnote 6 are amended by adding the following after subsection 3(2):

516 The Load Line Regulations footnote 7 are amended by adding the following after section 3:

Exceptions

3.1 (1) Despite paragraphs 3(2)(f) and (g), a vessel that is constructed or converted for the purpose of towing on or after the day on which the Vessel Construction and Equipment Regulations come into force and that is engaged on a voyage beyond the limits of an inland voyage shall meet the conditions of assignment set out in Chapter II of Annex I of Annex B of Part 3 of the Convention.

(2) Despite paragraphs 3(2)(f) to (i), a vessel that is constructed on or after the day on which the Vessel Construction and Equipment Regulations come into force, that carries at least one person and that is engaged on a voyage beyond the limits of an inland voyage shall comply with regulations 24 and 25 of Chapter II of Annex I of Annex B of Part 3 of the Convention.

517 Paragraph 5(7)(b) of the Regulations is replaced by the following:

518 The Regulations are amended by adding the following after section 15:

Exceptions

15.1 (1) Despite paragraph 15(2)(g), a vessel that is constructed or converted for the purpose of towing on or after the day on which the Vessel Construction and Equipment Regulations come into force and that is engaged on an inland voyage shall meet the conditions of assignment set out in Schedule 1.

(2) Despite paragraphs 15(2)(g) to (i), a vessel that is constructed on or after the day on which the Vessel Construction and Equipment Regulations come into force, that carries at least one person and that is engaged on an inland voyage shall comply with sections 11 and 13 of Schedule 1.

519 Paragraph 17(3)(b) of the Regulations is replaced by the following:

520 Schedule 1 to the Regulations is amended by replacing the references after the heading “SCHEDULE 1” with the following:

Marine Personnel Regulations

521 Subparagraph 207(4)(d)(ii) of the Marine Personnel Regulations footnote 8 is replaced by the following:

522 The portion of subsection 208(1) of the Regulations before paragraph (a) is replaced by the following:

523 (1) Subparagraphs 210(1)(a)(i) and (ii) of the Regulations are replaced by the following:

(2) Paragraph 210(1)(b) of the Regulations is replaced by the following:

524 Paragraph 221(3)(a) of the Regulations is replaced by the following:

525 Subsection 225(1) of the Regulations is replaced by the following:

526 Subsection 240(2) of the Regulations is replaced by the following:

527 (1) Subsection 331(1) of the Regulations is repealed.

(2) Subsection 331(2) of the Regulations is replaced by the following:

528 Subparagraphs 334(1)(h)(i) and (ii) of the Regulations are replaced by the following:

Administrative Monetary Penalties and Notices (CSA 2001) Regulations

529 Item 132 of Part 5 of the schedule to the Administrative Monetary Penalties and Notices (CSA 2001) Regulations footnote 9 is repealed.

530 The schedule to the Regulations is amended by adding the following after Part 14:

PART 15

Violations of the Vessel Construction and Equipment Regulations
Item

Column 1

Provision of the Vessel Construction and Equipment Regulations

Column 2

Range of Penalties ($)

Column 3

Separate Violation for Each Day
1 Subsection 100(1) 2,625 to 250,000  
2 Subsection 100(2) 5,250 to 250,000  
3 Subsection 101(1) 260 to 250,000  
4 Subsection 102(2) 260 to 250,000  
5 Subsection 103(1) 2,625 to 250,000  
6 Subsection 103(3) 525 to 250,000  
7 Subsection 103(4) 525 to 250,000  
8 Section 104 2,625 to 250,000  
9 Section 105 2,625 to 250,000  
10 Section 106 2,625 to 250,000  
11 Subsection 107(1) 2,625 to 250,000  
12 Section 108 2,625 to 250,000  
13 Section 109 5,250 to 250,000  
14 Section 110 5,250 to 250,000  
15 Section 111 5,250 to 250,000  
16 Subsection 112(1) 5,250 to 250,000  
17 Section 113 5,250 to 250,000  
18 Subsection 114(1) 5,250 to 250,000  
19 Section 115 5,250 to 250,000  
20 Section 117 5,250 to 250,000  
21 Section 201 1,300 to 100,000  
22 Subsection 300(1) 525 to 250,000  
23 Subsection 301(1) 260 to 250,000  
24 Subsection 301(2) 5,250 to 250,000  
25 Subsection 303(1) 5,250 to 250,000  
26 Subsection 303(2) 5,250 to 250,000  
27 Subsection 303(3) 5,250 to 250,000  
28 Section 304 5,250 to 250,000  
29 Section 305 5,250 to 250,000  
30 Section 306 5,250 to 250,000  
31 Section 307 5,250 to 250,000  
32 Subsection 308(1) 5,250 to 250,000  
33 Subsection 308(3) 5,250 to 250,000  
34 Section 309 5,250 to 250,000  
35 Section 310 5,250 to 250,000  
36 Section 311 5,250 to 250,000  
37 Section 312 5,250 to 250,000  
38 Subsection 313(1) 5,250 to 250,000  
39 Subsection 313(2) 5,250 to 250,000  
Fire and Boat Drills Regulations

531 The definitions rescue boat and survival craft in section 1 of the Fire and Boat Drills Regulations footnote 10 are replaced by the following:

rescue boat
means a boat designed to be used for rescuing persons in distress and marshalling survival craft and, for greater certainty, includes an emergency boat that performs the same functions. (canot de secours)
survival craft
means a lifeboat, rescue boat, emergency boat, suitable boat, buoyant apparatus, life raft, inflatable rescue platform or any other vessel capable of sustaining the lives of persons in distress from the time of abandoning the vessel on which those persons were carried. (bateau de sauvetage)
Small Vessel Regulations

532 Paragraph 21(b) of the Small Vessel Regulations footnote 11 is replaced by the following:

Navigation Safety Regulations, 2020

533 The definition survival craft in section 200 of the Navigation Safety Regulations, 2020 footnote 12 is repealed.

534 Section 208 of the Regulations is replaced by the following:

SART

208 One of the SARTs required to be on board a vessel under the Vessel Construction and Equipment Regulations, the Life Saving Equipment Regulations or the Large Fishing Vessel Inspection Regulations must be stowed so that it is readily accessible for immediate use on board.

535 Subsection 218(1) of the Regulations is replaced by the following:

Application — Canadian vessel

218 (1) This Division, other than section 228, applies in respect of radio equipment, including documentation for the equipment, that a Canadian vessel must have on board under Division 1 of this Part, the Vessel Construction and Equipment Regulations, the Life Saving Equipment Regulations or the Large Fishing Vessel Inspection Regulations, as applicable.

Repeals

536 The following Regulations are repealed:

Coming into Force

Publication

537 These Regulations come into force on the day on which they are published in the Canada Gazette, Part II.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: Canadian requirements related to the construction of, and equipment for, vessels 24 metres (m) or more in length were found to be out of date with the terminology and intent of the current Canada Shipping Act, 2001 (CSA 2001); did not align with Transport Canada’s (TC) approach for developing, implementing, and updating an effective regulatory regime; and were spread across multiple regulations and Transport Publications (TPs), making them difficult for marine stakeholders to find and interpret.

Stakeholders seeking to build a new vessel or upgrade an existing vessel 24 m or more in length, had to consult multiple, disparate regulations which outlined all necessary requirements. These regulations had not been updated to reflect the latest international standards, which created an unnecessary burden on both stakeholders and the Government of Canada.

International requirements for constructing and equipping large vessels are frequently updated by the International Maritime Organization (IMO) to reflect best safety practices; however, Canadian regulations were not aligned with the latest international requirements, including updates made to the International Convention for the Safety of Life at Sea (SOLAS).

This resulted in stakeholders constructing and equipping similarly sized vessels according to different sets of regulations depending on whether the vessels operated domestically or internationally. These differences in regulatory requirements created a burden for vessel builders and operators.

In addition, the administrative monetary penalties (AMPs) associated with construction and equipment violations under existing regulations were not aligned with new maximum penalties permitted under amendments to the CSA 2001. As a result, penalties for violations related to construction and equipment deficiencies were not consistent with those made under other regulations, reducing their effectiveness as a deterrent for non-compliance and creating an unfair situation for the industry where penalty amounts for similar violations varied widely depending on which regulation an offence falls under.

The existing regulations also did not address key safety considerations raised by the Transportation Safety Board of Canada (TSB) surrounding the carriage of youth and infant lifejackets on board large vessels.

Lastly, under the existing regulatory regime, stakeholders had to apply for a specific exemption through TC’s Marine Technical Review Board (MTRB) each time they wanted to incorporate new designs or technologies that were not accounted for in current regulations. Given the accelerating pace of technological development and advancement, this exemption process became burdensome and inefficient for both TC and industry.

Description: Requirements for the construction and equipment of new vessels 24 m or more in length (excluding fishing vessels and pleasure craft as these vessels are governed by separate sets of regulations under the CSA 2001) have been updated and consolidated into the new Vessel Construction and Equipment Regulations (the Regulations). The Regulations simplify the regulatory framework, while ensuring Canadian requirements for these vessels are clear and consistent with international requirements, modern standards, and industry best practices.

The Regulations also incorporate by reference chapters of SOLAS, as well as codes, resolutions, circulars, and recognized organizationfootnote 17 rules.

The Regulations contain grandfathering provisions. These types of provisions allow most vessels constructed before the coming into force date of the new requirements to continue to comply with the requirements that were in place when they were constructed, with some exceptions.

Rationale: The existing gaps between international and domestic requirements are a continued source of frustration for many in the marine industry. The Regulations will help TC address irritants for the marine industry and reduce regulatory barriers to innovation and investment, while also supporting novel approaches in the transportation sector.

While most existing vessels will not be affected by the Regulations (as most can continue to comply with requirements that were in force when they were constructed), owners of some existing vessels will incur incremental costs associated with updating on-load release mechanisms to align with the International Life-Saving Appliance Code (LSA Code); carrying child- and infant-sized lifejackets; and fitting lifejackets with a personal locator light. The total cost for vessel owners associated with these requirements is estimated at $2.94 million (present value in 2021 Canadian dollars, discounted to the year 2023 at a 7% discount rate) between 2023 and 2032.

The Regulations also allow stakeholders to employ new methods to construct and equip their vessels to match their individual operating circumstances, without the need to apply for an MTRB decision. The Regulations will, therefore, reduce burden on stakeholders and the Government of Canada. As such, the Regulations are expected to generate a cost savings of $1.99 million (present value in 2021 Canadian dollars, discounted to the year 2023 with a 7% discount rate) between 2023 and 2032, of which $58,240 would occur to vessel owners and $1.93 million to the Government of Canada. The estimated net cost of the Regulations is expected to be $0.95 million from 2023 to 2032.

The Regulations will impact small businesses, as some will incur additional costs associated with requirements to carry infant lifejackets and/or fit lifejackets with personal locator lights, while others will incur cost savings since they will no longer need to request exemptions from the MTRB.

The one-for-one rule applies as the Regulations will result in an incremental change in administrative burden on business. The annualized cost savings from reduced administrative burden are estimated to be $3,169 (present value in 2012 Canadian dollars, discounted to the year 2012 at a 7% discount rate), or $9.66 per business, between 2023 and 2032.

The Regulations also repeal four existing regulatory titles, namely the Crew Accommodation Regulations, the Ships’ Elevator Regulations, the Steering Appliances and Equipment Regulations, and the Towboat Crew Accommodation Regulations, and replace them with the new Vessel Construction and Equipment Regulations. As a result, a net total of three titles “out” is counted under the rule.

Issues

Prior to the introduction of the Regulations, construction and equipment requirements for new vessels 24 m or more in length had not been substantially updated in years. Due to the number of requirements spread across multiple regulations, publications, and standards, smaller updates were made to various regulations over the years, but there was not a full regulatory project to update and consolidate these requirements into one regulatory text. This resulted in numerous issues for both industry stakeholders and the Government of Canada, while also leaving various safety and administrative concerns unaddressed, namely the following:

Background

Disparate and outdated requirements

Requirements for constructing and equipping vessels 24 m or more in length were spread across eight different regulations, many of which deal or dealt with only specific aspects of the vessel:

Some of the above regulations, notably the MOHSR, contain a few sections which lay out a subset of requirements specific to vessel construction, many of which are duplications of requirements, for both small and large vessels, found in other Canadian regulations. As a result, stakeholders who sought to build a new vessel, or upgrade an existing vessel, of 24 m or more in length had to consult multiple, disparate regulations. In order to address gaps in the regulatory regime, including specific issues unique to the Canadian operating climate (e.g. operation in ice-covered waters, operation in the Great Lakes), requirements which need to be followed by certain vessels in certain situations (i.e. stability standards, electrical standards, standards for passenger vessels operating in ice) are set out in various technical publications and standards published by TC.

Many requirements within these existing regulations were out of date, referencing regulations and standards which had since been repealed or updated under different regulatory titles. Several regulations also had not been substantially updated to remain aligned with requirements put forward by the IMO, notably updates to SOLAS. Canada is an active participant in multiple Committees and Sub-Committees at the IMO, playing a leading role in the development of new and amended requirements in SOLAS. However, many SOLAS updates were not reflected in Canada’s own regulatory regime.

Outdated references, combined with requirements being spread across multiple different regulations, created a burden on stakeholders who expressed concerns that Canada’s approach to setting construction and equipment requirements for large vessels was out of step with approaches taken by similar maritime administrations around the world.

Administrative monetary penalties

The AMPN (CSA 2001) Regulations lay out ranges of penalties for violations of various regulations under the CSA 2001. Some requirements consolidated into the Regulations were already designated as enforceable via AMPs under the CSA 2001; however, some were not. For requirements that were already designated, the penalty amounts were significantly lower than new maximum AMP amounts established in a 2018 amendment to the CSA 2001. The 2018 amendment increased the maximum AMP amount per violation from $25,000 to $250,000. It is necessary to apply these new violation amounts in a consistent manner across regulations in order for them to serve as an effective deterrent and to fairly apply standardized penalties for violations which carry similar impacts.

Prior to the introduction of the Regulations, vessel construction and equipment requirements in the MOHSR were enforced through the Canada Labour Code and its Administrative Monetary Penalties (Canada Labour Code) Regulations [AMP (CLC) Regulations].

Transportation Safety Board safety concerns

The result of the investigation into the grounding and subsequent flooding of the passenger vessel Island Queen III in 2017 led the TSB to raise the concern that there were not enough child-sized or infant-sized lifejackets available for all passengers on the vessel. Although the vessel was able to return to dock without assistance and an evacuation of the vessel at sea was not required, this lack of appropriately sized lifejackets would have posed safety concerns should an evacuation have been necessary. As such, while the TSB did not issue a formal recommendation, it noted in its report that without TC requirements for the carriage of infant-sized lifejackets on board vessels, and requirements for vessel operators to ensure the number of child- and infant-sized lifejackets on board equals or exceeds the number of children and infants on board, there remains a risk that vessels may not have a sufficient number of suitably sized lifejackets in the event of an emergency.footnote 18 While a Ship Safety Bulletinfootnote 19 was issued, which recommended that vessel owners carry lifejackets of a proper size for all persons on board and reminded parents of infants of the lack of carriage requirements for infant lifejackets on Canadian vessels, this was not deemed sufficient to address the TSB’s safety concern.

Marine Technical Review Board

Stakeholders with novel vessel designs or designs incorporating the latest technological advancements available to the marine industry have frequently turned to developing methods for constructing and equipping their vessels which do not adhere to certain outdated requirements in regulations. Prior to the Regulations, each of these new approaches toward a vessel’s construction or equipment would require approval from the MTRB to deviate from the regulatory requirements that were in place. The MTRB was created under the CSA 2001 to review applications for equivalencies to safety requirements or exemptions from non-safety requirements. The MTRB determines if an applicant’s proposal will provide an equivalent level of safety to regulatory requirements. If approval is granted, the MTRB issues its decision for the alternative design or procedure to be implemented on the vessel. Outdated requirements in regulations, which did not take into account technological advances or innovative designs, resulted in the MTRB being overloaded with requests from vessel operators across the country. This created a backlog of requests, which generated a large administrative burden on TC and has created frustration for stakeholders.

Objective

The primary objective of the Regulations is to produce one set of regulatory requirements that governs the construction and equipment of large vessels (24 m or more in length). Implementation of the Regulations is intended to ensure that Canadian requirements for the construction and equipment of new vessels are consistent with international requirements, modern standards, and industry best practices, while minimizing the impact on vessels currently operating under the Canadian flag both domestically and internationally.

The Regulations aim to

Description

The Regulations consolidate requirements found in eight existing regulations into one regulation that simplifies the regulatory framework for the construction and equipment of new vessels 24 m or more in length, while ensuring Canadian requirements for these vessels are consistent with international requirements, modern standards, and industry best practices. The Regulations also incorporate by reference SOLAS, as well as codes, resolutions, circulars, and recognized organization rules.

Requirements for vessels less than 24 m in length are addressed through other regulations and, as such, are not included in the Regulations, except for construction requirements related to crew accommodation. While similar issues affect the construction and equipment requirements for Canadian vessels less than 24 m in length — and the requirements are spread across multiple regulations — the requirements for these vessels are based on industry standards that differ from those for large vessels (i.e. they are not outlined in SOLAS). Due to the differences in standards and approach between small and large vessels, issues related to the construction and equipment of small vessels will be addressed in a separate regulatory project.

However, construction requirements related to crew accommodation for both small and large vessels are included in the Regulations through the incorporation of Title 3 of the international Maritime Labour Convention, 2006 (MLC 2006). This incorporation eliminates overlapping requirements currently found in the MOHSR, the Crew Accommodation Regulations and the Towboat Crew Accommodation Regulations. By incorporating this Title into the Regulations and having it apply to both small and large vessels, all new vessels will be following consistent and up-to-date international requirements.

Along with consolidating applicable requirements into one regulation, the Regulations also update the requirements, aligning them with international and industry standards where possible. The Regulations update requirements with respect to structural strength, stability, machinery, electrical systems, lifesaving equipment, and crew accommodations, as well as fire protection on vessels without mechanical means of propulsion.

The Regulations also ease administrative and technical burdens on both industry and government. For example, the Regulations contain “particular design” and “substitute safety equipment” clauses. These clauses already exist as part of the Small Vessel Regulations and grant flexibility to design and equipment requirements should it be determined that a vessel’s unique circumstances justify a different construction and/or equipment approach, and that approach is deemed to provide an equivalent level of safety. The inclusion of these clauses in the Regulations will allow stakeholders to employ new methods to construct and equip their vessels to match their operating circumstances, without the need to apply for an MTRB decision. Instead, a determination can be made by TC personnel outside the MTRB, as long as the builder provides TC with evidence that an equivalent level of safety is met and that the novel design is aligned with the safety goals and functional requirements of the Regulations. These clauses will allow TC to issue policy decisions (i.e. a Tier I Policy or TP) to approve novel equipment or designs, rather than waiting for the Regulations to be amended, should TC determine that the novel equipment or design meets or exceeds safety requirements within the Regulations. This approach will help support innovation and the adoption of new technology, helping the Canadian marine industry remain competitive.

The Regulations are included as part of the marine safety component of TC’s Regulatory Review Roadmap. Initiatives under this component of the roadmap aim to support the need for more clarity and flexibility in the marine legislative and regulatory frameworks and harmonization with international standards, such as the IMO, to improve innovation and investment in Canada. They are also intended to address regulatory barriers to innovation and investment, while supporting innovation and novel approaches in the transportation sector.

Amendments to existing regulations

Consequential amendments are made to the following two existing regulations to specify that they are no longer applicable to vessels to which the Regulations apply (i.e. new vessels 24 m or more in length):

  1. Hull Construction Regulations; and
  2. Marine Machinery Regulations.

Requirements from these two regulations that are relevant to new vessels 24 m or more in length are repealed and reintroduced in the Regulations. These two regulations remain in effect for vessels whose keels are lain prior to the coming into force of the Regulations.

Consequential and/or related amendments are made to seven other regulations to ensure consistency with the Regulations, as outlined below:

Consequential amendments are made to two regulations under the Canada Labour Code to remove construction and equipment requirements for both large and small vessels, as these requirements are consolidated and updated in the Regulations:

Repeal of existing regulations

The following four existing regulations are repealed in full; relevant requirements are transferred to the Regulations and updated, where necessary:

  1. Crew Accommodation Regulations;
  2. Ships’ Elevator Regulations;
  3. Steering Appliances and Equipment Regulations; and
  4. Towboat Crew Accommodation Regulations.

Introduction of administrative monetary penalties

The AMPN (CSA 2001) Regulations are amended to include a new Part in the schedule, outlining ranges of penalties for violations under the Regulations. This new Part adds penalties for non-compliance with requirements, which were previously not designated. The AMP amounts for these violations are new, with penalty ranges that take into account new maximum AMP amounts (i.e. up to $250,000) which are now permitted under paragraph 244(h) of the CSA 2001. In addition, violations that were already designated have new penalty amounts assigned to align with what is now permitted under the CSA 2001.

The penalty amounts for contraventions of the Regulations were determined in accordance with TC’s Policy on Determining Ranges of Administrative Monetary Penalties for Violations under the Canada Shipping Act, 2001, which promotes an efficient, consistent, and transparent approach to determining appropriate ranges of AMPs for violations of the CSA 2001 and its regulations. This Policy provides guidance for determining an appropriate range of penalties based on the gravity of the violation and whether the relevant provision applies in respect of an individual, corporation (i.e. a person other than an individual), vessel, or a combination of the three, as well as a Gravity Classification Tool for the contravention to be classified as Minor, Medium, or Serious based on the subject matter of the relevant provision and the possible consequences of the violation. Once the gravity of the violation and applicable category of violator(s) has been determined, the assigned range of penalties that apply to that combination of gravity and category is set out in pre-established penalty ranges.

Chapters of SOLAS incorporated by reference

The Regulations aim to modernize Canadian construction and equipment regulations by aligning with contemporary international instruments, most notably SOLAS. The Regulations incorporate by reference specific chapters of SOLAS, as amended from time to time.

In cases where the full requirements laid out in SOLAS are either too stringent for the purposes of vessels only operating domestically and closer to shore, for example, or do not fully align with Canada’s unique operating environment, alternate requirements are laid out in TPs or standards which are incorporated by reference within the Regulations. In TC’s regulatory regime, TPs are publications put forward by TC to further expand upon requirements outlined in regulations. When incorporated in regulations, these documents become legal texts and their directions must be followed by applicable operators. For example, regarding damage stability requirements, a passenger vessel that is not subject to SOLAS has the option of complying with the third edition of TP 10943: Damage Stability Standards for Non-Convention Passenger Vessels available on the TC website on the same day that the Regulations are published in the Canada Gazette, Part II. This TP outlines requirements better suited for domestic operations, as opposed to regulations 6 to 8 of chapter II-1 of SOLAS, which are designed for vessels that operate internationally.

Specifically, the Regulations incorporate by reference requirements contained within the following SOLAS chapters.

Chapter II-1 — Construction — Subdivision and stability, machinery and electrical installations

Vessels with mechanical means of propulsion need to meet the requirements of this chapter, with a few exceptions. Cargo vessels on inland voyages, sheltered waters voyages, or near coastal voyages, Class 2, do not need to follow regulation 3-6 (which outlines requirements for access to and within the cargo area of oil tankers) and regulations 6 to 7-3 (which set damage stability requirements). Non-SOLAS passenger vessels engaged on inland voyages, sheltered waters voyages or near coastal voyages, Class 2, do not need to follow regulation 8-1 (which outlines system capabilities and operation information should a flooding casualty occur on a passenger ship), and non-SOLAS cargo vessels that are not tankers, and that are less than 500 gross tonnage, do not need to comply with regulation 9 (which outlines double bottom requirements in passenger ships and cargo ships other than tankers). These exceptions are consistent with SOLAS requirements, which are based on vessels travelling internationally.

Vessels without mechanical means of propulsion (i.e. barges) only need to meet the requirements of regulations 3-1, 3-8, 5, and 5-1 of Chapter II-1 of SOLAS. These regulations outline structural, mechanical, and electrical requirements; towing and mooring equipment requirements; and intact stability and stability information requirements. Other necessary construction and equipment requirements for vessels without mechanical means of propulsion (i.e. requirements for weather decks, the carriage of liquid and oil in bulk), which are not included in Chapter II-1 of SOLAS, are laid out separately within the Regulations.

Through the incorporation of Chapter II-1, all vessels subject to the Regulations, both with and without mechanical means of propulsion, are also required to meet the International Code on Intact Stability, 2008, along with its Canadian modifications that are outlined in the second edition of TP 7301: Canadian Modifications to the International Code on Intact Stability, 2008, available on the TC website on the same day that the Regulations are published in the Canada Gazette, Part II.

Chapter III — Life-saving appliances and arrangements

All vessels need to comply with the requirements of this chapter, aside from regulations 8, 10, 19, 27, 30, and 37. These omitted regulations outline emergency instructions regarding training and drills, supervision, and other requirements that are not related to the construction or equipment of a vessel, and that are already captured by other existing regulations under the CSA 2001.

Through the incorporation of Chapter III, all vessels are required to meet the International Life-Saving Appliance Code (LSA Code), along with its Canadian modifications that are outlined in Part A of the second edition of TP 14475: Canadian Life-Saving Appliance Standard, available on the TC website on the same day that the Regulations are published in the Canada Gazette, Part II.

Chapter VII — Carriage of dangerous goods (construction and equipment elements only)

All vessels that are chemical tankers need to meet the requirements of Part B of Chapter VII of SOLAS, and all vessels that are gas carriers need to meet the requirements of Part C of Chapter VII of SOLAS. These Parts outline construction and equipment requirements for ships carrying dangerous liquid chemicals, or liquefied gases, in bulk. The other parts of SOLAS Chapter VII fall outside the scope of the Regulations, as they are not directly related to construction or equipment and are already captured by other existing regulations under the CSA 2001.

Chapter VIII — Nuclear ships

Nuclear vessels need to meet the requirements of Chapter VIII of SOLAS. This chapter does not include technical requirements but puts in place administrative procedures to verify and confirm compliance with national requirements for the installation of nuclear reactors, which are outlined under the Nuclear Safety and Control Act.

Chapter X — Safety measures for high-speed craft

All high-speed vessels need to meet the requirements of Chapter X of SOLAS, except for certain requirements in this chapter related to the International Code of Safety for High-Speed Craft, 2000. These requirements, which detail provisions related to training, emergency drills, radio communications, the manning of survival craft and necessary navigation systems, fall outside the scope of the Regulations and are already captured by other existing regulations under the CSA 2001.

Chapter XII — Additional safety measures for bulk carriers (construction and equipment elements only)

All vessels designed to transport bulk cargo need to meet the construction and equipment requirements of regulations 4, 5, 6.2, 12, and 13 of Chapter XII of SOLAS. The other parts of SOLAS Chapter XII fall outside the scope of the Regulations; they are not directly related to construction or equipment and are already captured by other existing regulations under the CSA 2001.

Chapter XV — Safety measures for ships carrying industrial personnel

All cargo vessels carrying industrial personnel to work on offshore facilities need to meet the requirements of SOLAS Chapter XV. These requirements provide mandatory minimum safety standards for ships that carry industrial personnel, as well as for the personnel themselves, addressing specific risks to marine operations within the offshore sectors, such as personnel transfer operations.

Fire protection for vessels without mechanical propulsion

The Regulations outline fire safety requirements that need to be met by new vessels without a mechanical means of propulsion (i.e. barges). These requirements are based on provisions outlined in TC’s Vessel Fire Safety Regulations, extending key safety requirements from those regulations to vessels without mechanical means of propulsion. These include requirements for fire safety equipment (fire extinguishers, fire axes, fire pumps, etc.) to be carried in spaces of the vessel occupied by members of the crew, and for all applicable vessels to be equipped with approved smoke detectors. More stringent fire safety equipment (i.e. foam fire extinguishers, fixed fire-extinguishing systems) needs to be carried in the boiler room, cargo pump room, and every compartment containing internal combustion engines on any barges equipped with machinery.

Canadian Modifications for the Vessel Construction and Equipment Regulations

Based on a review of international instruments, TC has determined that, in some instances, the international requirements are not fully applicable in Canada’s operating environment (e.g. for domestic voyage-only vessels and for vessels navigating close to shore or in ice conditions). To address situations that are unique to Canada’s operating environment, requirements have been modified and outlined in a separate TP: Canadian Modifications for the Vessel Construction and Equipment Regulations (TP 15415), available on the TC website on the same day that the Regulations are published in the Canada Gazette, Part II. TP 15415 was developed as part of this regulatory initiative and is incorporated by reference in the Regulations. This TP highlights Canadian-specific modifications to certain requirements within incorporated chapters of SOLAS, adjusted to account for Canada’s unique operating environment. For example, TP 15415 addresses the specific requirements for large vessels that operate solely in fresh water (such as on Canada’s Great Lakes) and provides additional, context-specific requirements for vessels operating in eastern Canada’s sea ice areas.

In several cases, these Canadian modifications are needed as the requirements in SOLAS are too stringent for vessels that only operate domestically under lower safety risk circumstances. In other cases, TP 15415 builds on SOLAS by adding requirements that have been recommended by Canadian-specific organizations such as the TSB (i.e. requiring infant lifejackets to be carried on board passenger vessels) or that align with current industry best practices, such as requiring the regular maintenance and testing of immersion suits. TP 15415 also contains direct references to Canadian recognized organizations for approval procedures for certain construction and equipment aspects, and supplements SOLAS by requiring documentation and safety information related to equipment maintenance or operation, or by requiring that instructions for the general public (e.g. passengers) be made available in both official languages.

Updates to additional Transport Publications

Three existing TPs have also been reviewed, and applicable provisions that relate to the construction of, and equipment for, vessels that are 24 m or more in length have been identified for incorporation within the Regulations. Where provisions within these existing publications were found to be out of date with contemporary practices, the TPs have been updated to ensure all incorporated text aligns with current international publications. For example, TP 7301, Stability, Subdivision and Load Line Standards, originally published in 1975, and based on the IMO’s stability requirements of the time, now modifies and supplements the International Code on Intact Stability 2008, and is renamed to reflect this change.

TPs that have been updated for incorporation in the Regulations include the following:

  1. Stability, Subdivision and Load Line Standards, January 1975 (TP 7301), now titled Canadian Modifications to the International Code on Intact Stability, 2008;
  2. Passenger Vessel Operations and Damaged Stability Standards (Non-Convention vessels), 2007 (TP 10943), now titled Damage Stability Standards for Non-Convention Passenger Vessels; and
  3. Canadian Life-Saving Appliance Standard (TP 14475).

These TPs provide stability requirements for Safety Convention vessels, damage stability requirements for passenger vessels that are not Safety Convention vessels, and life-saving appliance requirements for manufacturers of life-saving appliances and equipment for both Safety Convention vessels and vessels that are not Safety Convention vessels, respectively. These TPs are available on the TC website on the same day that the Regulations are published in the Canada Gazette, Part II.

Incorporation of additional conventions, codes and standards

In addition to SOLAS, the Regulations incorporate by reference several other conventions, codes, recognized organization rules, standards, and guidelines to outline additional construction and equipment requirements. These include requirements for certain vessel types whose unique operating conditions are not provided for, or adequately addressed, within SOLAS (e.g. offshore supply vessels, mobile offshore drilling units, special purpose vessels). The incorporation of these instruments formalizes existing practices; it is not expected to result in any incremental impacts for marine stakeholders.

The following codes and standards, as amended from time to time, are incorporated by reference:

Some of these documents are incorporated into the Regulations in their entirety, while others are selectively incorporated to include only the construction and equipment requirements for the vessels in question.

MTRB requests

Decisions made by the MTRB that relate to construction and equipment have also been reviewed and assessed so that common requests from stakeholders can be addressed in the Regulations. In particular, this review resulted in the modification of some natural lighting requirements in crew accommodations, which relax a requirement to provide proper natural light in a space if it is impracticable to do so (e.g. on smaller vessels) and allow for adequate electric lighting to be used as a replacement. Furthermore, carriage requirements for life-saving appliances on smaller vessels navigating close to shore are relaxed to allow these vessels to carry liferafts instead of lifeboats.

Requirements for grandfathered vessels

The Regulations contain grandfathering provisions that allow most grandfathered vessels (i.e. constructed before the coming-into-force date of the new requirements) to continue to comply with the requirements that were in place when they were constructed, with some notable exceptions. Certain vessels, including those being imported into Canada and those which undergo major alterations or modifications that substantially alter their dimensions or increase their service life, will be required to be brought up to compliance with the Regulations. Furthermore, if a vessel’s parts undergo repairs, alterations, or modifications that substantially alter its dimensions or its passenger accommodation spaces, or substantially increases its service life, or if these parts of the vessel are replaced after the coming into force of the Regulations, they will need to meet the requirements of the Regulations.

In the case of grandfathered passenger vessels, additional requirements for lifejackets will be necessary for vessels operating after sunset and before sunrise. These vessels will be required to have a minimum of 20%, 40%, 60% and 80% of their lifejackets fitted with a personal locator light in the first, second, third and fourth year, respectively, after the day on which the Regulations are registered. Alternatively, the authorized representative of a vessel fleet may submit an alternative compliance plan to TC that ensures the same percentage of lifejackets be fitted with a personal locator light during the same period across their fleet, as opposed to a percentage of lifejackets for each of their individual vessels. Regardless of whether the percentage of lights are installed by vessel or by fleet, in the fifth year after the registration of the Regulations, all lifejackets will need to be fitted with a personal locator light. The lights may be installed on a vessel’s existing lifejacket supply, provided the lifejackets are type approved (i.e. a recognized organization has certified that the lifejackets meet all applicable requirements), so a full replacement of a company’s lifejacket inventory is not required.

In response to a 2017 investigation report by the TSB concerning the grounding and subsequent flooding of the passenger vessel the Island Queen III, regulations 7.2.1 and 7.2.2 of Chapter III of SOLAS — including the Canadian modifications — will apply to grandfathered vessels. These provisions address additional lifejacket carriage requirements for passenger vessels. While SOLAS requires passenger vessels to carry a certain percentage of infant lifejackets and lifejackets suitable for children relative to passengers on board (i.e. a number of infant lifejackets equal to at least 2.5% of passengers on voyages less than 24 hours and a number of lifejackets suitable for children equal to at least 10% of the number of passengers on board), the Canadian modification requires all impacted vessels to carry a lifejacket of an appropriate size for each person on board. In addition, whereas SOLAS requires all lifejackets be stored in a location that is readily accessible and plainly indicated, the Canadian modifications provide additional details as to how lifejackets must be stored, requiring different sized lifejackets to be stored separate from one another in clearly marked, proportionally distributed locations. Further, the Canadian modifications require that infant lifejackets be stored in a location and manner that is readily accessible for passengers with infants, apart from the general lifejacket supply. These requirements will apply to all passenger vessels of 24 m or more in length one year following the final publication of the Regulations in the Canada Gazette, Part II. TC is developing similar requirements for vessels under 24 m that will be introduced in a separate regulatory proposal.

In addition, any grandfathered domestic vessel equipped with survival craft or rescue boat on-load release mechanisms that are not designed with appropriate hook stability, locking devices, and hydrostatic interlocks that comply with the requirements of paragraphs 4.4.7.6.4 to 4.4.7.6.6 of the International Life-Saving Appliance Code (LSA Code) will need to replace the equipment with equipment that complies with the LSA Code, no later than the first anniversary of the date on which the Regulations are published in the Canada Gazette, Part II. This is intended to help ensure these pieces of equipment are compliant with the latest safety standards put forward internationally, to further prevent possible safety incidents when the craft are deployed.

Regulatory development

Consultation

Canadian Marine Advisory Council

Regular consultations about the proposed amendments, including the plan to consolidate existing requirements into one regulation, have been held through biannual national and regional meetings of the Canadian Marine Advisory Council (CMAC) since 2011. CMAC meetings are coordinated and chaired by senior members of TC and are attended by a multitude of stakeholders and other interested parties that have a recognized interest in shipping, navigation, and pollution matters.

At the fall 2019 CMAC meeting, stakeholders were presented with a detailed discussion document outlining the proposed regulatory content, as well as a draft version of TP 15415, for review and comment. No concerns were raised and no comments were received. A follow-up presentation was given at the spring 2020 CMAC meeting, which reiterated the key points of the regulatory proposal and answered questions from stakeholders following their review of the draft materials. Updated versions of both documents were again circulated to stakeholders following this meeting, with no comments received.

At the fall 2020 CMAC meeting, TC provided an overview of updated TPs and standards, along with specific details as to which vessels would be affected. TC also explained how specific elements of the regulatory proposal would deviate from international standards. Questions and comments from stakeholders during this session were focused on getting additional clarity as to which existing TPs would remain in effect and which would be repealed; how the criteria for manned versus unmanned barges were determined; and how long stakeholders would be given to comment on the proposed Regulations during the prepublication phase.

At the spring 2021 CMAC meeting, a draft of the proposed Regulations was presented. Key changes that had been incorporated in TP 15415 since the fall 2020 CMAC meeting were highlighted and explained. Further, a draft of TP 14475: Canadian Life Saving Appliance Standard was presented. Following the meeting, consultation drafts of the proposed Regulations, TP 15415, TP 7301 and TP 10943 were circulated to stakeholders for review and comments. TC received comments from five stakeholders. The majority of these comments were technical in nature. Stakeholders requested clarity about which standards would be fully or partially incorporated in the proposed Regulations, as well as further details surrounding the application of provisions for vessels already in service or which undergo modifications of various scales (i.e. would certain modifications to a vessel have to comply with the proposed Regulations as opposed to the requirements in force at the time of the vessel’s construction). In addition to requests for clarification, stakeholders asked for slight modifications to the TPs, notably TP 15415, to enhance clarity surrounding the application of certain requirements. In response to the comments received, TC made some slight modifications for clarity to TP 15415 and the other TPs that would be incorporated by reference into the proposed Regulations. Responses to the questions raised by stakeholders following the CMAC meeting were circulated to stakeholders in a response document, which is publicly available upon request.

Discussions at CMAC meetings have demonstrated that stakeholders do not have substantive policy concerns about the Regulations. Further, stakeholders have repeatedly expressed support for the changes, with many explicitly stating that they are looking forward to the Regulations coming into effect as soon as possible, as the existing gaps between international and domestic requirements are a continued source of frustration for many in the marine industry.

Targeted consultation sessions

In addition to regular CMAC meetings, targeted virtual consultations were held in fall 2018 with representatives from the passenger and ferry sectors (members of the Canadian Ferry Association, and of the Passenger and Commercial Vessel Association) to discuss the potential impacts the proposed Regulations could have on their industry. Aside from requesting clarification around the anticipated coming-into-force dates of certain requirements, particularly those calling for existing vessels to adhere to new lifejacket carriage requirements, attendees of these sessions were supportive of the regulatory proposal and did not raise any additional concerns.

Prepublication in the Canada Gazette, Part I

The Regulations were prepublished in the Canada Gazette, Part I, on October 29, 2022, with a 60-day comment period. A total of 26 comments was received from nine different stakeholder groups, primarily consisting of marine industry members, associations, and consultancy firms. No comments were opposed to the Regulations; the majority requested clarifications or provided recommendations on the interpretation and application of specific technical provisions within the proposed regulatory text and incorporated TPs.

For ease of reference, comments received during the prepublication comment period have been divided into different themes below. Following the prepublication, TC responded directly to each stakeholder who provided comments.

General questions

Several stakeholders raised general questions about the Regulations, such as seeking clarity on how TPs would be consolidated into the Regulations; what mechanisms would be in place to ensure TP quality control; how certain incorporated SOLAS provisions would be applied to vessels operating on the Great Lakes; and which parts of the Regulations would apply to foreign vessels operating in Canadian waters.

TC responded to these questions by confirming that all TPs have been reviewed by the Department of Justice to ensure that they are consistent with the enabling legislation and that they will not carry any unintended consequences. Further, the incorporated TPs will be subject to reviews by TC technical staff on a regular basis, to help ensure they remain accurate, up to date, and consistent with the legislative framework. TC also confirmed that vessels not subject to SOLAS, such as those operating exclusively on the Great Lakes, must comply with the requirements in place from their origin state and meet a level of safety equivalent to a similar Canadian vessel. Lastly, TC confirmed that only section 117 of the Regulations, outlining specific requirements for vessels which navigate in frazil ice or ice slush conditions, applies to foreign vessels in the internal waters of Canada. However, TC also noted that general requirements for foreign vessels in Canadian waters are laid out in the Vessel Safety Certificates Regulations, which require all Safety Convention vessels to remain compliant with SOLAS while operating in Canadian waters.

Other questions were focused on specific technical aspects of the Regulations outlined in the incorporated TP 15415, seeking clarification on

TC provided responses to each question, clarifying existing requirements within the Regulations. These questions were all in relation to requirements outlined in TP 15415. As the questions were seeking additional clarity and not recommending amendments, no changes were made to TP 15415 as a result of these questions.

TC’s response included clarification that

Edits to the Regulations and incorporated TPs

Some comments received resulted in small edits to the incorporated TP 15415. One such comment requested language be added to TP 15415 to clarify the requirement that equipment remain functional below −30 degrees Celsius is performance-based and not required if the vessel does not operate in such conditions. Another comment highlighted that an operational requirement incorporated through SOLAS that is redundant with requirements in Canada’s current regulatory regime and suggested an exemption be clearly laid out in TP 15415 for vessels already subject to these provisions. Lastly, one stakeholder requested that TP 15415 be amended to relax requirements for coaming heights on vessels engaged on certain voyages, to properly reflect expected risks to these vessels and remove ambiguity between requirements in the Regulations and those of the Load Line Regulations. In response to these comments, minor edits were made to TP 15415 to increase clarity, particularly for certain vessels operating in Canadian waters, remove redundancy, and clarify ambiguity between the Regulations and other TC regulations.

Other stakeholders provided suggestions which resulted in small updates to the text of the Regulations. A commenter raised concerns surrounding a proposed provision which would require certain vessels — including those that operate exclusively on the Great Lakes — to provide safe access to all spaces including double bottom spaces to enable overall and close-up inspections and thickness measurements. The stakeholder was concerned that this provision would substantially impact the design of side and double bottom tanks for these vessels, as it would increase their weight and result in operators of these types of vessels being able to carry less cargo to abide by the limitations of the St. Lawrence Seaway. As such, this provision would introduce potentially unforeseen costs, which were not previously identified, with no benefits. TC agreed that there would be no identified benefits for imposing these precise requirements on these vessels as this provision is primarily intended to detect corrosion, which vessels operating consistently in the fresh water of the Great Lakes are at much lower risk of experiencing. As a result, the relevant section of the Regulations was updated to clarify that the requirement to provide safe access to all spaces to enable thickness measurements would not apply to vessels which operate exclusively on the Great Lakes. As this provision would not be applied to existing vessels, no updates to the project’s cost-benefit analysis were required as a result of this amendment.

Another stakeholder highlighted that the regulations specifying that industry practices and standards must be used by tug owners when obtaining a Bollard Pull Certificate is illogical unless those precise practices and standards are identified. To clarify, examples of such recommended practices and standards were added to TP 15415.

A comment was received requesting that requirements for bilingual signage be adjusted so that the signage needs to be in the language specific to the vessel’s area of operation. TC replied that, as per the Regulations, the requirement is for signage intended for the crew to be in either English or French, not bilingual, and updated the text in the Regulations to make clear the signage is to be provided “in English or French, as per the working language of the vessel.”

Other commenters identified small stylistic or grammatical errors in the text of incorporated TPs. The TPs were updated to correct these errors. The updates are editorial and are not expected to have any impacts on stakeholders.

Following prepublication, a stakeholder group posed a request to have flexibility regarding the implementation of requirements to retrofit lifejacket supplies with personal locator lights. The stakeholder requested flexibility be given to allow vessel owners to implement the same percentage of lifejacket light installation within the 5-year period, but to do so across their fleet as opposed to a certain percentage on each individual vessel. As the minimum percentage of lifejackets would still be fitted with locator lights within the same period of time under this allowance, the request was deemed to pose no safety concerns and was determined to have no impact on the project’s cost-benefit analysis. As such, TP 15415 was slightly updated to provide authorized representatives of a vessel fleet with an option to submit an alternative compliance plan to TC that ensures the same percentage of lifejackets be fitted with a personal locator light during the same period across their fleet, as opposed to a percentage of lifejackets for each of their individual vessels. These alternative compliance plans would need to be submitted to TC’s Domestic Vessel Regulatory Oversight division, who would only approve them provided they result in the same percentage of an authorized representative’s lifejacket supply receiving a retrofit within the same time frame as the option for retrofitting the lifejacket supply in the manner outlined within the Regulations. This exemption allowance has been included within TP 15415.

Additional suggested edits

Some stakeholders suggested edits to the Regulations or incorporated TPs which were not accepted. TC suspects that these suggestions may have been based on misunderstandings or misinterpretations of the Regulations or incorporated TPs. As such, TC provided clarification to the commenters, but did not adjust the proposed Regulations. For example, two comments suggested training intervals for marine evacuation systems and emergency pack type requirements for open reversible/inflatable platform rafts be aligned with requirements under SOLAS and the International Code of Safety for High-Speed Craft respectively, to maintain consistency with international requirements. TC responded to both these comments to clarify that both sets of requirements are indeed aligned with international standards.

Another comment requested an allowance permitting lightship surveys to be replaced by a signed declaration be extended to also apply to all vessels less than 50 metres in length, to which TC responded these vessels are already being granted such an allowance in the second edition of TP 7301.

Lastly, two comments requested grandfathering provisions be applied based on the date of a vessel’s construction, as opposed to when its keel was lain, to avoid cases where certain vessels are well underway of being constructed but are not able to qualify for grandfathering. TC responded that such cases are rare, and should they occur, the vessel’s authorized representative could apply for an exemption from whichever requirement they feel cannot be implemented due to its stage of construction at the time of the Regulations entering into force. These exemption requests would need to be submitted to TC’s Domestic Vessel Regulatory Oversight division, who would only approve them provided they adequately demonstrate the vessel’s implementation of the requirement was impacted by the vessel being under construction at the time of the Regulations entering into force, and that the exemption would not impact the vessel’s safety.

Outstanding issues

Four stakeholders submitted comments to highlight what they felt were unresolved issues in the industry. Two comments highlighted that the use of “margin line” as a parameter for measuring a vessel’s heel acceptance, as cited in the Regulations, is outdated as more modern calculations — such as the “water on deck criteria” — are used by other administrations, notably the European Union. TC responded by clarifying that the margin line parameter is used to maintain consistency with the deterministic damage stability for domestic vessels that was decided when the 2007 edition of TP 10943 was developed, as an alternative to the use of water on deck criteria used by the European Union. Owners and builders of vessels can choose to use more modern probabilistic calculations in SOLAS that no longer use the margin line; the margin line parameter is an option, not a requirement, in both TP 7301 and TP 10943.

Another comment highlighted that the Regulations specify that vessels require a range of stability of 40 degrees, but this criterion is not appropriate for vessels carrying unsecured cargo or vehicles as the cargo would shift and cause the vessel to capsize well before that angle is met. Instead, the commenter suggested the requirements be aligned with those found in the IMO circular MSC.1/Circ.1281. TC responded that MSC.1/Circ.1281 is an acceptable alternative for applicable vessels, as reflected in TP 7301.

All changes made to the Regulations and incorporated TPs following the prepublication in the Canada Gazette, Part I, were administrative edits and clarifications, which were minor in nature, made to enhance clarity, provide flexibility, and avoid unintended stakeholder burden. These changes are not expected to carry any additional costs or negative impacts for affected stakeholders and did not result in any changes being made to the project’s cost-benefit analysis.footnote 20

Online publication of TPs

Alongside the prepublication in the Canada Gazette, Part I, the four TPs incorporated by reference in the Regulations were made available for stakeholder review and feedback on TC’s consultation web page. This page provided a general overview of the Regulations, with targeted questions focused on details within the TPs specifically, to solicit public feedback on key details. This page was available for public review and comment for the full 60 days during which the Regulations were available for comment following prepublication in the Canada Gazette, Part I.

Engagement with Natural Resources Canada

Ongoing engagement has taken place between TC and Natural Resources Canada (NRCan), consistent with a memorandum of understanding (MoU) signed in 2008 between the two departments. The MoU established a modus operandi between TC and NRCan for working together in instances where regulations touch on vessels involved in oil and gas explorations.

TC has worked closely with NRCan colleagues to develop language for the Regulations in respect of vessels that are capable of engaging in the drilling for, or the production, conservation or processing of oil or gas.

Engagement with Employment and Social Development Canada

Ongoing engagement has also taken place between TC and Employment and Social Development Canada (ESDC), as the Regulations make consequential amendments to the MOHSR, which are jointly administered by the Minister of Transport and the Minister of Labour and Seniors. Changes to the MOHSR also bring about consequential amendments to Schedule I of the AMP (CLC) Regulations.

Modern treaty obligations and Indigenous engagement and consultation

In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, analysis was undertaken to determine whether the Regulations are likely to give rise to modern treaty obligations. This assessment examined the geographic scope and subject matter of the regulatory proposal in relation to modern treaties in effect and, after examination, no implications or impacts on modern treaties were identified.

Instrument choice

Requirements and standards for vessel construction and equipment, many of which are established by international bodies, are critical for the safe and effective operation of marine vessels and for the protection of the environment. To ensure that such requirements and standards are followed and enforceable in Canada, they must be set in regulations.

Subsection 120(1) of the CSA 2001 gives the Governor in Council authority, on the recommendation of the Minister of Transport, to make regulations respecting the safety of vessels. As the Regulations seek to consolidate and update the requirements of multiple existing regulations and standards into one regulation, regulatory amendments were determined to be the most appropriate approach. No non-regulatory options were considered.

In order to align with international standards, remain consistent with these standards when they are updated, and avoid unnecessary duplication between international and domestic requirements, the Regulations rely on incorporation by reference for various standards, codes, and conventions, most notably SOLAS. Canada is an active participant in multiple working groups at the IMO, playing a leading role in the development of new and updated requirements in the documents that are incorporated by reference.

Further, the Regulations require authorized representatives to adhere to, where applicable, requirements in TP 15415. By incorporating Canadian specific requirements in this TP alongside applicable chapters of SOLAS, when these chapters receive updates at the IMO, TC will be in a position to quickly clarify Canadian requirements within TP 15415, should updates to SOLAS not fully align with Canada’s operating environment. As updates to the TP can be made more expeditiously than updates to the regulatory text, this approach will allow TC to provide necessary clarity to industry faster when amendments are adopted internationally.

By consolidating requirements spread across multiple regulations and standards into one set of regulatory requirements, the Regulations will ease the burden on stakeholders who are currently required to consult multiple, disparate regulations when constructing a vessel 24 m or more in length for operation in Canada. The Regulations will ensure clarity and certainty about the shipbuilding process for Canadian stakeholders, as they blend the domestic and international regulatory frameworks and therefore streamline the design and construction processes.

Regulatory analysis

The Regulations simplify the regulatory framework for the construction and equipment of new vessels (i.e. built on or after the coming into force of the Regulations) of 24 m or more in length by consolidating requirements under various existing regulations and TPs into one regulation. In addition, the Regulations align with international requirements through the incorporation by reference of key international standards and codes, including their relevant modifications to suit the Canadian context, while also formalizing pertinent guidance published by TC. While the Regulations are not expected to impose additional costs on industry associated with international standards and codes, vessel owners will carry additional costs as a result of the fire safety protection requirements for newly built vessels without mechanical means of propulsion (e.g. barges).

Likewise, owners of some existing vessels will bear incremental costs, as they will be required to update on-load release mechanisms to comply with the LSA Code, to improve the safety of passengers by carrying infant-sized lifejackets, and to fit lifejackets with a personal locator light on passenger vessels operating after sunset and before sunrise.

The Regulations allow stakeholders to employ new methods to construct and equip their vessels to match their individual operating circumstances, without the need to apply for an MTRB decision. The Regulations are, therefore, expected to reduce burden on stakeholders and the Government of Canada related to such MTRB applications.

The Regulations are expected to generate cost savings of a total of $1.99 million (present value in 2021 Canadian dollars, discounted to the year 2023 with a 7% discount rate) between 2023 and 2032, of which $58,240 would be realized by vessel owners and $1.93 million by the Government of Canada. During the same period, some vessel owners are also expected to bear a total cost of $2.94 million. As a result, the net cost was estimated to be $0.95 million between 2023 and 2032. It should be noted that several of the benefits of the Regulations, such as efficiency gains for stakeholders, as well as safety and compliance benefits, could not be monetized. Despite the net monetized cost, TC expects that the overall benefits of the Regulations will outweigh the monetized costs.

Following comments received during the prepublication of the Regulations in the Canada Gazette, Part I, the cost-benefit analysis was modified as follows:

  1. updated the base year of discounting from 2022 to 2023 as the Regulations are registered in 2023, which increased previously reported costs and benefits in present value terms;footnote 21
  2. updated the estimate of the average salary for middle management occupations in trades, transportation, production and utilities, as well as the estimate of the average cost of an MTRB review based on the most recent TC’s internal analysis; and
  3. corrected an error to properly reflect that stakeholders of newly registered vessels must comply with the lifejacket requirements upon vessel registration, compared to previous analysis when such impacts were calculated to occur one year after the vessel registration.

As a result, monetized impacts (in present value) on stakeholders were revised as follows:

Analytical framework

The costs and benefits for the Regulations have been assessed in accordance with the Treasury Board of Canada Secretariat’s (TBS) Policy on Cost-Benefit Analysis. Where possible, impacts are quantified and monetized, with only the direct costs and benefits for stakeholders being considered in the cost-benefit analysis.

Benefits and costs associated with the Regulations are assessed based on comparing the baseline scenario against the regulatory scenario. The baseline scenario depicts what is likely to happen in the future if the Government of Canada does not implement the Regulations. The regulatory scenario provides information on the intended outcomes because of the Regulations. Details of these scenarios are further described below.

Unless otherwise noted, benefits and costs are expressed in present value using 2021 constant Canadian dollars, discounted to the year 2023 when the Regulations are registered, with a 7% discount rate, for the period from 2023 to 2032.

Affected stakeholders

The Regulations impact vessel owners and stakeholders responsible for constructing and equipping vessels that are 24 m or more in length built on or after the coming into force of the Regulations (i.e. newly built vessels). While owners of most vessels built before the coming into force of the Regulations (i.e. existing vessels) are permitted to abide by the regulations in place at the time of their vessels’ construction, some of them are affected by certain requirements. Also, owners of vessels imported into Canada may be affected if such vessels need to undergo alterations or modifications to comply with the Regulations.

The population of affected owners of existing vessels could not be precisely evaluated, as data administered by TC only allowed TC subject matter experts to estimate the number of impacted existing vessels (see paragraphs below). Therefore, for the purpose of this analysis it is assumed that each vessel is owned/operated by a different owner/operator, although that may not actually be the case.

The Regulations particularly affect owners/operators of existing passenger vessels that are 24 m or more in length, which will be required to carry infant-sized lifejackets. Additionally, all lifejackets on board such vessels operating after sunset and before sunrise will need to be fitted with personal locator lights. Using TC’s Vessel Registration Query System (VRQS) and subject matter experts’ analysis, it was estimated that approximately 240 passenger vessels (and therefore vessel owners/operators) with a total combined passenger capacity of around 71 144 — including cable ferries, ferry vessels, passenger ships, and roll on-roll off passenger vessels (ro-ro) — will be affected by these requirements. Details are presented in Table 1 below.

Table 1: Affected passenger vessels and their passenger capacity (maximum onboard passengers)
Vessel type Affected passenger vessels — All types of operation Affected passenger vessels — Operating after sunset and before sunrise
Number of vessels Passenger capacity Number of vessels Passenger capacity
Cable ferry 21 1 508 15 1 136
Ferry vessel 70 24 789 38 12 984
Passenger vessel 145 42 394 91 30 214
Ro-ro passenger vessel 4 2 453 3 1 854
Total 240 71 144 147 46 188

Source: Vessel Registration Query System and TC internal analysis

According to data captured in TC’s VRQS, the Canadian passenger vessel fleet subject to the Regulations has been stable over the past 10 years. On average, vessels being registered balance out vessels being removed from the registry. In the last 10 years, 23 passenger vessels of 24 m or more in length with a total passenger capacity of 6 915 were registered. For the purpose of this analysis, it is assumed that an additional 23 passenger vessels with a passenger capacity of 6 915 will be registered as new vessels in the analytical time frame (i.e. 2023 to 2032).

Based on TC’s inspection program information, it is estimated that 41 existing vessels equipped with on-load release mechanisms are not compliant with the LSA Code; therefore, their owners will have to upgrade the on-load release mechanisms as required by the Regulations.

Baseline scenario

In the baseline scenario, existing construction and equipment requirements for new vessels that are 24 m or more in length would remain spread across multiple existing regulations and TPs that were made under the previous (now repealed) Canada Shipping Act and would not take into consideration updated international requirements, modern standards, or industry best practices. As a result, vessel owners would need to continue to navigate through these existing regulations, Ship Safety Bulletins, and TPs to comply with vessel construction and equipment requirements.

Issues identified by the TSB would not be addressed on existing vessels and safety concerns would remain in respect of infant-sized lifejacket requirements and lifejackets not being fitted with personal locator lights. However, no additional cost would be incurred by existing vessel owners with on-load release mechanisms that are out of date with the LSA Code as they are not required to upgrade such mechanisms.

Finally, vessel owners would continue to request regulatory exemptions to use alternative designs or procedures to build new vessels. As such, TC would still need to approve — through MTRB decisions — these common exemption requests. These requests would remain as irritants and continue to require extensive resources on the part of TC.

Regulatory scenario

In the regulatory scenario, the Regulations consolidate construction and equipment requirements for large vessels (24 m or more in length) included in multiple existing regulations, TPs, standards, and codes into one regulation. Vessel builders and owners can follow a clear and coherent set of regulatory requirements to construct and equip new vessels. It is expected that the majority of these new requirements will not significantly affect the industry as they are, in most cases, requirements/standards that are already in place for building/equipping new vessels in Canada, or that industry is opting to comply with under the baseline scenario. However, some vessel owners will incur additional costs associated with the new fire safety protection requirements on new vessels without mechanical means of propulsion.

In addition, to ensure that key safety measures apply to all large vessels (24 m or more in length), existing vessels are required to comply with certain new requirements, such as availability of infant-sized lifejackets on board, lifejacket locator lights, and the retrofitting of on-load release mechanisms.

The introduction of up-to-date standards and codes in the Regulations will result in a reduction of future efforts by vessel builders to require exemptions and from the MTRB to review and approve these exemption requests.

Finally, the Regulations amend the AMPN (CSA 2001) Regulations by adding a new Part to the schedule that consolidates AMPs prescribed in various existing regulations and outlines new ranges of penalties for non-compliance and violations associated with requirements for vessel construction and equipment. The Regulations introduce penalty amounts for some violations that did not previously have assigned amounts and increase the penalty amounts for previously existing penalties, which means that vessel owners will face higher penalties for non-compliance with certain construction and equipment requirements.

Benefits and costs

It is expected that the Regulations will reduce costs to industry and the Government of Canada as many MTRB exemptions will no longer be needed. The total monetized benefit is estimated to be $1.99 million, $58,240 of which would be realized by industry, and $1.93 million by the Government.

The Regulations will also impose additional costs on some vessel owners. It is estimated that the total cost would be approximately $2.94 million. As a result, the estimated net monetized cost would be $0.95 million.

Vessels imported into Canada must comply with Canadian requirements before being registered in Canada. It is expected that the majority of the requirements will not significantly affect the registration of a vessel in Canada. In cases where vessels need to be retrofitted to comply with new requirements prescribed in the Regulations, owners of these vessels are expected to bear costs to ensure that key safety measures, such as availability of infant-sized lifejackets on board, lifejacket locator lights, and the retrofitting of on-load release mechanisms, are met. However, due to lack of information, these impacts are not assessed quantitatively in this analysis.

Benefits

The Regulations will facilitate compliance by helping the regulated industry locate and interpret regulatory requirements more easily and clearly. Benefits associated with consolidating requirements from various existing regulations into one regulation are discussed qualitatively.

In addition, the Regulations will enhance the safety of crew members and Canadian passengers on board affected vessels by requiring that existing and new vessels meet safety requirements around lifejackets and lifejacket lights, the retrofitting of on-load release mechanisms, and fire safety protection equipment.

The Regulations also address common requests for exemption by stakeholders to the construction and equipment of their new vessels. The increased flexibility of the Regulations will generate monetized benefits in reducing the number of MTRB decisions. By combining the qualitative and the monetized benefits, it is expected that the overall benefits will outweigh the monetized costs of the Regulations.

Qualitative benefits

Efficiency benefits

Consolidating multiple requirements with respect to the construction and equipment of vessels 24 m or more in length from various existing regulations into one is expected to ensure clarity, certainty, and ease of reference, and therefore facilitate compliance. It is expected that stakeholders will spend less time on consulting multiple regulations to sort out construction and equipment requirements.

Moreover, the Regulations update domestic requirements with modern standards and industry best practices, align with the international direction, and include specific provisions for unique Canadian operations. Such alignment is expected to benefit stakeholders by reducing confusion and inconsistency, and by removing obstacles for compliance. In addition, the enhanced consistency in application is expected to level the playing field and thereby improve the effectiveness of the enforcement program at TC.

Safety benefits

The Regulations are expected to improve passenger safety by addressing risks identified by the TSB concerning the carriage of infant-sized lifejackets as impacted vessels will be required to be equipped with a lifejacket of an appropriate size for each person on board, which will protect each passenger more adequately. In addition, the requirement for a personal locator light on lifejackets on vessels carrying passengers after sunset and before sunrise is expected to improve the efficiency of search and rescue operations in case of an emergency at night, which is expected, in turn, to reduce the risk of fatalities and save resources for rescue activities.

Also, safety risks will be mitigated by the retrofitting of on-load release mechanisms to specific vessels following the most recent LSA Code requirements. This retrofitting requirement is expected to enhance hook stability, its locking mechanisms, and overall operation safety, and, consequently, reduce the likelihood of incidents involving the use of on-load release mechanisms.

Introducing fire safety protection on board new vessels without mechanical propulsion closes a gap that existed as Canadian barges were not subject to fire safety requirements, which represented a significant safety concern. This gap was created due to a change in policy after the drafting of the Vessel Fire Safety Regulations, which repealed the Fire Detection and Extinguishing Equipment Regulations, where the fire safety requirements for barges were previously captured. The new fire safety requirements will help prevent fires on vessels and reduce the risk to life at sea caused by fire.

Compliance benefits

It is anticipated that higher monetary penalties will incentivize stakeholders to comply with the Regulations and reduce non-compliance. Canadians will benefit from an incremental reduction of violations, particularly those directly related to safety.

Monetized benefits

Decrease in MTRB requests and decisions

Since the Regulations allow for multiple common methods of constructing and equipping new vessels, which are often requested by vessel builders and owners through applications for exemptions from the MTRB, such requests will no longer be required. As a result, the MTRB will not need to review these requests, nor will the vessel builders or owners have to prepare and submit these requests for MTRB review and approval.

Based on MTRB decisions related to specific clauses in the Regulations over the past five years, it is expected that, between 2023 and 2032, 328 fewer requests will be submitted to the MTRB for review and decision.footnote 22

It is assumed that, on average, an employee occupying a management-level position needs half a day (4 hours) to prepare, complete and submit the requested documentation to the MTRB. Using the wage rate per hour of $59.86footnote 23 (a 25% overhead rate is included), it is estimated that vessel builders or owners will realize total cost savings of $58,240 in reduced administrative burden.

The average cost of an MTRB review is $7,954, which takes into account the different amount of time required depending on job classifications. Therefore, the total cost savings to the Government is estimated to be approximately $1.93 million.

In total, the cost savings associated with the Regulations are estimated to be $1.99 million.

Costs

The incorporation of key international obligations and the formalization of requirements, standards, and codesfootnote 24 on new vessels means some vessel owners will assume additional costs as a result of these four requirements: carriage of infant-sized lifejackets, fitting of lifejacket lights, retrofitting of on-load release mechanisms, and fire safety protection. The requirement to carry an appropriate number of child-sized lifejackets will also be applied to grandfathered passenger vessels, but as these vessels are already in compliance with this requirement, it has not been included in estimated costs for industry. The total cost associated with the Regulations is estimated at $2.94 million.

Infant lifejackets and lifejacket personal locator lights

Infant lifejackets

The Regulations require that a minimum number of infant-sized lifejackets, which is equivalent to an additional 2% of the vessel’s passenger capacity (see Table 1), be carried on board all passenger vessels (existing and new vessels). Due to a lack of information, it is not clear to what degree existing passenger vessels already carry infant lifejackets on board. Therefore, this analysis used a conservative approach by assuming that no passenger vessels (existing or new) carry such lifejackets on board under the baseline scenario.

It is estimated that a total of 1 562 infant-sized lifejackets will be required, 1 423 of which will be equipped on board 240 existing passenger vessels (by the first anniversary of the publication of the Regulations in the Canada Gazette, Part II), and 139 on board the 23 newly registered passenger vessels projected to enter into service across the analytical time frame. Given that an infant-sized lifejacket costs $50, it is estimated that the total cost of purchasing infant-sized jackets would be $71,720.

Lifejacket with a personal locator light

Additionally, the Regulations require passenger vessels (existing and new) that operate after sunset and before sunrise to have lifejackets fitted with a personal locator light. It is estimated that this requirement will affect 147 existing passenger vessels with a total of 46 188 passenger capacity (see Table 1) and 14 projected newly registered passenger vessels with a capacity of 4 236 passengers. Using the same approach outlined above, it is assumed that no passenger vessels have such lifejackets fitted with a light under the baseline scenario. It is estimated that 55 466 lifejackets, including 50 424 adult-sized and 5 042 child-sized,footnote 25 will need to be retrofitted to include a light, following a phase-in approach over a five-year period once the Regulations are registered.footnote 26,footnote 27 The cost of retrofit per an adult-sized and child-sized lifejacket is expected to be $25. Further, these lights have a lifespan of five years, and therefore will need to be replaced every five years at the same cost. Similarly, 1 009 infant-sized lifejackets (2% of the passenger capacity of 50 424) will need to be fitted with a personal locator light at an estimated cost of $25 per lifejacket, and replaced every five years.footnote 28 Therefore, the total cost of fitting a personal locator light on lifejackets was estimated to be $1.81 million.

In total, the costs associated with infant-sized lifejacket and lifejacket personal locator lights are estimated to be $1.88 million.

On-load release mechanisms

Certain existing passenger vessels as well as any existing domestic vessels equipped with on-load release mechanisms that are not compliant with the LSA Code, will need to retrofit their on-load release mechanisms. It is estimated that 41 vessels will be affected, with each vessel assuming an estimated cost of $20,000. This will be required no later than the first anniversary of the publication of the Regulations at an estimated cost of $766,400 to industry.

Fire safety protection

New requirements for fire safety protection only apply to newly built vessels without mechanical means of propulsion (e.g. barges). Vessels that can accommodate persons overnight must carry fire safety equipment (fire extinguishers, fire axes, fire pumps, etc.) in spaces of the vessel occupied by crew members and be equipped with approved smoke detectors. The cost — at the building stage — will vary depending on the vessel design (e.g. by the number of cabins, corridors, stairways, machinery spaces, galleys). It is estimated that, on average, an additional cost of $3,600footnote 29 will be added to equip a new barge with the proper smoke/fire detector system.

More stringent fire safety equipment (i.e. foam fire extinguishers, fixed fire-extinguishing systems) need to be carried in the boiler room, cargo pump room, and every compartment containing internal combustion engines on any new barge equipped with machinery. The requirement to have a fixed fire-extinguisher system will add, on average, an estimated cost of $37,990.

Using TC’s vessel registration records from the last 10 years, it is projected that, over the analytical time frame, 10 new vessels without mechanical means of propulsion will be impacted by the requirements to have fire extinguishing equipment, and 2 new vessels that can accommodate persons overnight will be impacted by the requirement to install smoke/fire/heat detectors over the analytical time frame.

Costs associated with these fire safety requirements are estimated to be $291,400.

Cost-benefit statementfootnote 30

All values in the cost-benefit statement tables below are presented as undiscounted values except for the values in the columns “Total (present value)” and “Annualized value,” which are in present value terms.

Table 2: Monetized costs
Impacted stakeholder Description of cost Base year (2023) Other relevant year (2024) Final year (2032) Total (present value) Annualized value
Vessel owners Lifejacket requirements $12,558 $342,363 $283,075 $1,883,171 $268,121
On-load release mechanisms $0 $820,000 $0 $766,355 $109,112
Fire safety protection $37,993 $41,654 $37,993 $291,384 $41,487
All stakeholders Total costs $50,550 $1,204,016 $321,068 $2,940,910 $418,719
Table 3: Monetized benefits
Impacted stakeholder Description of benefit Base year (2023) Other relevant year (2024) Final year (2032) Total (present value) Annualized value
Vessel owners Administrative cost savings $7,088 $7,255 $8,596 $58,237 $8,292
Government of Canada MTRB cost savings $235,438 $241,006 $285,549 $1,934,491 $275,428
All stakeholders Total benefits $242,526 $248,262 $294,145 $1,992,728 $283,720
Table 4: Summary of monetized costs and benefits
Impacts Base year (2023) Other relevant year (2024) Final year (2032) Total (present value) Annualized value
Total costs $50,550 $1,204,016 $321,068 $2,940,910 $418,719
Total benefits $242,526 $248,262 $294,145 $1,992,728 $283,720
Net cost ($191,976) $955,755 $26,923 $948,183 $135,000

Small business lens

Analysis under the small business lens concluded that the Regulations will impact small businesses.

It is expected that certain small businesses owning passenger vessels will face additional costs associated with the requirements to carry infant lifejackets and/or fit lifejackets with personal locator lights, which will generate an increase in compliance costs, while some others will save administrative burden costs, as they will no longer need to request exemptions from the MTRB.

TC does not expect that small businesses will be affected by the requirements of retrofitting on-load release mechanisms or the inclusion of fire safety protection, as affected vessels are normally owned or operated by medium- or large-sized businesses.

As previously explained, this analysis does not identify affected businesses with precision, including affected small businesses, due to limited information available. However, small businesses could expect the following unit costs (undiscounted):footnote 31

No flexibilities were developed to mitigate the impacts of the Regulations on small businesses. The Regulations will improve safety by addressing risks identified by the TSB, which apply equally to all impacted stakeholders. The Regulations also ensure consistency in the application of requirements to vessels, irrespective of the operator or the size of the vessel; therefore, no flexibilities have been provided to small businesses. Still, small business operators will, in general, assume less expense with respect to the life-saving requirements than larger operators due to the smaller scale of their operations.

One-for-one rule

The one-for-one rule applies, as the Regulations result in an incremental change in administrative burden on business. In addition, one new regulatory title (in) will be introduced, and four existing regulatory titles will be repealed (out).

The Regulations will reduce administrative burden costs on business. Multiple vessel owners no longer need to request exemptions from the MTRB so that they can adopt practices that are not allowed in various existing regulations to meet their unique operational needs. Using assumptions and data previously presented, and the methodology developed in the Red Tape Reduction Regulations, it is estimated that the Regulations will reduce annualized administrative costs by $3,169 for all affected businesses (present value in 2012 Canadian dollars, 7% discount rate, base year of discounting in 2012), or $9.66 per businessfootnote 35 for the 10-year period between 2023 and 2032.

The Regulations also repeal four existing regulations, namely the Crew Accommodation Regulations, the Ships’ Elevator Regulations, the Steering Appliances and Equipment Regulations, and the Towboat Crew Accommodation Regulations, and replace them with the new Vessel Construction and Equipment Regulations. As a result, a net of three titles “out” is counted under the rule.

Regulatory cooperation and alignment

These Regulations are not related to a work plan or commitment under a formal regulatory cooperation forum.

The Regulations aim to complement the approach toward large vessel construction and equipment requirements followed by maritime nations, by adhering to contemporary international standards that are well understood and used widely around the world. The Regulations will incorporate by reference existing international conventions as well as codes, resolutions, and recognized organization rules. This approach will enable Canada to adopt and ratify future amendments to international conventions such as SOLAS in a timelier manner.

To account for specific circumstances and operating environments unique to Canadian operators, Canadian-specific adjustments have been made to modify certain incorporated SOLAS regulations. Therefore, in instances where international requirements have been found to be not fully appropriate in Canada, these requirements have been modified in TP 15415. This TP was developed as part of this regulatory initiative and is incorporated by reference in the Regulations.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

The Regulations are not expected to have any disproportionate impacts on the basis of identity factors such as race, gender, language, or sexuality.

It should be noted that women are significantly underrepresented in the maritime workforce/industry. Therefore, the Regulations are expected to directly impact more men than women. However, the Regulations are not expected to reinforce or exacerbate the existing disparity in the industry, as the requirements relate only to consolidating and updating construction and equipment requirements for large marine vessels.

Implementation, compliance and enforcement, and service standards

Implementation

The Regulations come into force on the day on which they are registered in the Canada Gazette, Part II, with the exception of the requirements outlined below.

In the case of existing (i.e. grandfathered) passenger vessels operating after sunset and before sunrise, the requirement to fit their lifejackets with personal locator lights must be applied to a minimum of 20%, 40%, 60%, 80% and 100% of their lifejackets in the first, second, third, fourth and fifth year, respectively, after the day on which the Regulations are published.

Requirements regarding vessels carrying an appropriately sized lifejacket for all passengers and stowing them in a marked and easily accessible manner, particularly in the case of infant lifejackets, must be implemented within one year of the day on which the Regulations are published.

Any grandfathered domestic vessels equipped with survival craft or rescue boat on-load release mechanisms that are not designed with appropriate hook stability, locking devices, and hydrostatic interlocks that comply with the requirements of paragraphs 4.4.7.6.4 to 4.4.7.6.6 of the LSA Code will need to replace the equipment with equipment that complies with the LSA Code, within one year of the date on which the Regulations are published in the Canada Gazette, Part II.

As fire protection requirements for vessels without mechanical means of propulsion (i.e. barges) only apply to new vessels, these requirements will enter into force on the day on which the Regulations are published in the Canada Gazette, Part II. Therefore, any builder constructing a barge that does not meet the threshold to be eligible for grandfathering (i.e. its keel has been laid) must comply with the fire protection requirements of the Regulations immediately following their publication.

All TPs that are incorporated by reference into the Regulations will be monitored on an ongoing basis to ensure they continue to meet all necessary operational requirements, as well as remain clear and consistent in their intent and application. Should updates be made to the international codes and conventions incorporated into the Regulations that these TPs modify and supplement, TC will utilize its technical review function to determine if the amendment can be incorporated as written, or if the incorporated TPs also require updates to supplement the amendment to meet the Canadian context. As Canada is an active participant at the IMO, TC is well placed to review and monitor upcoming amendments to determine, before they come into force, if updates to incorporated TPs will be required. Any updates to incorporated TPs will be communicated to stakeholders on a regular basis, through biannual CMAC meetings, as well as through the CMAC email distribution list, as required. All TPs incorporated in the Regulations are publicly available, on the TC website on the day the Regulations come into force, in both official languages. In the event a modified TP is incorporated statically in the Regulations, the updates will need to be brought into force through an update to the Regulations themselves. In such an event, a full regulatory amendment process would take place, which would include advance notice to stakeholders concerning the justification and scope of the change, as well as opportunities to comment prior to the amendment entering into force.

Compliance and enforcement

The AMPN (CSA 2001) Regulations are updated to include a new Part in the schedule, outlining ranges of penalties for non-compliance and violations under the Regulations. This new Part includes penalties associated with the obligations under the Regulations. The AMP amounts for these violations take into account the maximum AMP amounts which are now permitted under amendments to paragraph 244(h) of the CSA 2001. Schedule I of the AMP (CLC) Regulations is also amended to align with the changes made to the MOHSR by the Regulations.

Under the AMPN (CSA 2001) Regulations, an inspector has the authority to issue a warning, a deficiency notice, an AMP, or to detain a non-compliant vessel. The AMP (CLC) Regulations also allow for the issuance of an AMP. The enforcement tool used by the inspector is determined based on the gravity of the offence. A new training module for TC Marine Safety Inspectors has been added to reflect the Regulations. This addition does not introduce any new costs for TC as training materials are part of the ongoing, regular work of departmental officials.

Recognized organizations have been delegated authority by TC to conduct regular inspections to ensure compliance with all relevant requirements. TC also conducts periodical inspections for vessels that are not delegated to a recognized organization and conducts risk-based monitoring on vessels that are delegated. In any case of non-compliance, enforcement of the Regulations will be carried out by TC Marine Safety Inspectors.

Contact

Manager
Vessel Construction and Equipment Regulations
Marine Safety and Security
Transport Canada
330 Sparks Street, 11th Floor
Ottawa, Ontario
K1A 0N5
Email: MSSRegulations-ReglementsSSM@tc.gc.ca