CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Ontario Leadership Group Meetings September 2014 TDG and Rail Issues Update

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Policy agenda Tank car standards Liability and compensation TDG Classification and testing Emergency response and information sharing Canada Transportation Act Review

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Tank car standards Regulations published in the Canada Gazette (January 2014) codifying 2011 CPC 1232 standard for new rail car builds (TP14877) PD 34 removing older DOT 111s meeting certain criteria from service as of May 22, 2014 Proposed new TC 140 specification tank cars and DOT III Tank Car Retrofit Requirements for flammable materials

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Tank car standards CIAC Comments on Proposed TC 140 Standard and Retrofit Requirements Focus on crude oil and unit trains Conduct a complete assessment of the capacity of rail car supply industry to meet current and future needs Align standards and retrofit schedules with the US

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Liability and Compensation Fiona Cook, Leading Process for CIAC CP Tariff 8 Transport Canada (TC) new liability and compensation regime for rail –looking at shipper funded compensation scheme that would initially cover crude oil and possibly toxic by inhalation products

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Liability and Compensation Maintain common carrier obligation Focus on the issues / increased areas of risk Short lines Growing volumes of crude oil moved in unit trains Shipper fund for crude oil and insurance pooling for short-lines

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Liability and Compensation Ensure incentives remain in place to encourage all railway supply chain participants Make the necessary legislative changes to ensure that railways cannot shift third party liabilities to shippers (CP Tariff 8) Ensure alignment with the US

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Classification, ER & Information Protective Direction (PD) 31 for crude oil classification and testing PD 32 requiring railways to provide information to municipalities on the transportation of dangerous goods (TDG) PD 33 requiring ERAPs for flammables notably crude oil and ethanol New regulations requiring proof of classification and testing

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Classification, ER & Information ER Taskforce Secretariat Established  Incident Management Subgroup  Emergency Response Subgroup Next meeting of the GPAC Nov. 19, Ottawa MACTDG Meeting Nov. 18, Ottawa

CHEMISTRY INDUSTRY ASSOCIATION OF CANADA Canada Transportation Act Statutory review kicked off one year ahead of schedule Key legislation for competitive access and remedies related to rail transportation Opportunity to address level of service and rate issues