Polluter Pays in New Rail Safety Legislation

Bill C-52, The Safe and Accountable Rail Act was announced by the federal Transport Minister on February 20, in the latest of several legislative and regulatory responses  to the tragedy of the Lac Megantic derailment and explosion in 2013. “Ottawa announces Rail Disaster Relief Fund” in the Globe and Mail (Feb. 20) summarizes the provisions, which include the requirement, for the first time, that railways must carry a minimum amount of liability insurance, ranging from $25-million up to $1-billion, depending on their volume of dangerous goods. Additionally, a fee of $1.65-a-tonne will be charged to the companies and pooled in a fund to cover the costs of damages that exceed their insurance. The Act also requires that rail companies implement policies and procedures to ensure workers the right to report fatigue without fear of reprisals. See the text of the Act.

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