5 YEARS OF PREPAREDNESS New Video Series Learn about the Lac-Mégantic rail disaster, and the
steps taken to better protect Canadians from bearing
the cost of accidents in the transport of crude oil by rail.
Key Highlights of the
2019-2020 Annual Report
  • No accidents involving the Fund, but four accidents monitored by the Administrator

  • $1.76 per tonne collected from shippers of crude oil by rail

  • Over $31 million in levies, a “per-tonne fee” collected this year

  • A total of over $75 million accumulated by the Fund at the end of the fiscal year

  • Advancement of the readiness action plan to provide compensation

  • Successful outreach and engagement throughout Canada

  • Continued engagement with Indigenous groups and organizations, for the development of the compensation process, particularly for the loss of fishing, hunting and gathering opportunities

  • The Need to Strengthen the Liability and Compensation Regime for Rail in Canada

    From Transport Canada: The July 2013 derailment in Lac-Mégantic highlighted the need to strengthen the liability and compensation regime for rail in Canada. The railway involved – the Montreal, Maine and Atlantic Railway (MMA) – did not have enough insurance to cover damages, and went bankrupt. Stronger liability and compensation requirements came into force on June 18, 2016, under the Safe and Accountable Rail Act (the Act). The Act amends the Canada Transportation Act. It ensures that more resources are available, if a rail accident occurs, to:

    • compensate victims
    • pay for clean-up costs
    • protect taxpayers

    New measures under the Act:

    • require federally regulated freight railways to hold a minimum insurance of $25 million to $1 billion, based on risk
    • define railway liability, including liability without proof of fault or negligence for crude oil accidents
    • create the Fund for Railway Accidents Involving Designated Goods, which:
      • is financed by crude oil shippers
      • pays compensation when a railway’s mandatory insurance level is not enough to cover the full cost of damages from a crude oil accident

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