Part IIOrderPublished: June 10, 2020

Transport Minister Can Grant Innovation Exemptions

Order Fixing the Day on Which this Order is Registered as the Day on Which Section 215 of that Act Comes into Force: SI/2020-38

This order brought Section 215 of the Budget Implementation Act, 2019, No. 1 into force on the day the order was registered (2020-06-10). It authorizes the Minister of Transport to grant time-limited, conditional exemptions from provisions of Acts or instruments under the Minister’s authority for research, development or testing that promote transportation innovation (exemptions up to 5 years, extendable once).

Published
June 10, 2020
Department
Unavailable
Section
Order Fixing the Day on Which this Order is Registered as the Day on Which Section 215 of that Act Comes into Force
Comment deadline
Unavailable
Effective date
June 10, 2020
Publication part
Part II

Summary

Summary#

This Order (registration SI/2020-38) brings Section 215 of the Budget Implementation Act, 2019, No. 1 into force on the day the order is registered. The change lets the Minister of Transport create time-limited exemptions to certain transport laws and rules to allow testing and research that support innovation. The order was made as P.C. 2020-339 on May 18, 2020 and published in the Canada Gazette on June 10, 2020.

What it does#

  • Brings into force the parts of the Canada Transportation Act added by Section 215 (new sections 6.6, 6.7 and 6.8).
  • Lets the Minister of Transport exempt people, things, or classes of people or things from provisions of an Act or a regulation under the minister’s authority for research, development or testing that promotes innovation and is in the public interest.
  • Exemptions can last up to 5 years, and can be extended once for up to an additional 5 years.
  • Exemptions can be made subject to conditions (for example, to reduce risks or require data sharing).
  • The minister can require extra information from applicants and can recover costs for processing and assessing applications. The minister may refuse to act until costs are paid.
  • The minister may refuse to process an application if the applicant owes money to the federal government.
  • The Statutory Instruments Act does not apply to exemptions for a single person or thing; those single-person exemptions will normally be made public unless doing so would be inappropriate for safety, security, or confidentiality reasons.

Who's affected#

  • Companies and researchers that want to test new transportation technologies or business models (for example, firms working on drones, autonomous vehicles, new rail or marine systems).
  • Startups, universities, testing labs, and other innovators in the transportation sector.
  • Transport Canada, which will review applications and oversee any conditions attached to exemptions.
  • The general public and travellers, who may see tests or pilot projects in their communities or be affected by changes to how services operate.
  • The order applies across transportation modes covered by the Canada Transportation Act, so it could affect multiple parts of the transport industry.

Why it matters#

  • It creates a clearer legal route for regulated experiments — a formal “regulatory sandbox” — so innovators can test new ideas without being blocked by every existing rule.
  • That can speed up development and investment in transportation technology in Canada. It may help bring safety, environmental, or efficiency improvements to market faster.
  • At the same time, tests done under exemptions will be managed by the government and can carry conditions, cost recovery, and limits on public disclosure for safety or confidentiality reasons — factors that matter to communities, users, and companies.

Key topics

Budget Implementation Act, 2019, No. 1Section 215Canada Transportation ActCTAsections 6.6, 6.7 and 6.8Transport CanadaMinister of Transportregulatory sandboxexemption orderStatutory Instruments Acttransportation innovationregulatory reformdronesautonomous vehicles

Source: Canada Gazette

Official source