TRAN Committee Report

Recommendation:

1.            That the Government of Canada stay small and streamlined in order to minimize impediments to innovation, so that transportation entrepreneurs can take risks, deliver breakthroughs and reap the rewards of their advances.

Recommendation:

2.            Federal departments and agencies that administer public funds for innovation should henceforth ask the following two questions to applicants:

·      If your technology is viable, why would the government need to fund it?  

·      If it is not, why would the government want to fund it?

3.            In order to address the financial difficulties of innovators in financing R&D and subsequent stages of innovation and of transportation companies purchasing advanced technology in Canada, the Minister of Finance should direct departmental officials to analyze the potential advantages and disadvantages of financial incentives such as tax rebates or accelerated capital cost allowance on the development or purchase of all lower emission technologies in transportation and to report their findings back to the Committee.

4.            Where it is shown that safety can be maintained or improved, the Minister of Transport should pursue a transition to performance-based regulation in all modes of transportation.

5.            The Government of Canada should redirect a portion of its existing research and innovation budget away from institutions and towards substantial prize money for innovations which meet well-defined public goals. Government should clearly define the hoped-for invention, discovery or innovation, and offer financial rewards to the first Canadian innovator who achieves it. Prizes should be large enough to deliver a return on investment for the innovator.

6.            The Government of Canada should reallocate a portion of existing granting council funding to pilot a new automotive R&D model to replace AUTO21 as it sunsets in 2015. This model should: (i) focus on the priorities of industry; (ii) require industry funding and a commercialization plan before committing public funds; and (iii) help small- and medium-sized businesses connect to public research labs.

7.            In order to allow early-stage companies with commercially ready automotive technologies to respond within a narrow window of market opportunity, the Government of Canada should endeavour to receive and process applications quickly.

8.            In order to facilitate the participation by small- and medium-sized businesses in the Scientific Research and Experimental Development tax credit program, the Government of Canada should reduce the administrative burden on smaller companies.

9.            In order to reduce the complexity of the R&D and commercialization efforts in the Canadian automotive industry, which may depend on the intellectual property of public sector scientists, the Government of Canada should encourage the simplification and harmonization of intellectual property policies across the country with respect to public sector science.

10.         Transport Canada should establish a mechanism to promptly allow the importation of yet-to-be-approved transport technologies that have been proven safe and successful in comparable jurisdictions such as the European Union and the United States.

11.         In order for interprovincial inconsistencies in vehicle regulations that have a negative impact on the adoption of innovations in on-road vehicles to be addressed, federal representatives at  the next meetings of the Canadian Council for Ministers Responsible for Transportation and Highway Safety and the Canadian Council of Motor Transport Administrators should raise the issues of harmonizing provincial regulations respecting:

a)                   The use, marking and inspection of alternative fuel vehicles;

b)                   Certification and installation standards for converted natural gas and propane vehicles;

c)                   Certification and construction standards for natural gas and propane refuelling infrastructure and maintenance facilities;

d)                   Truck dimensions and weights to allow larger natural gas trucks and trucks with aerodynamic treatments to operate across the country.

12.         The Government of Canada should engage with U.S. authorities through the Regulatory Co-operation Council to close the gap between Canadian and American regulations respecting heavy-duty natural gas trucks.

13.         In order to allow investments in natural gas refuelling infrastructure in key north-south trucking corridors, the Government of Canada should expand the discussion that already exists around natural gas vehicles in its Clean Energy Dialogue with the United States to include privately-financed refuelling infrastructure.

14.         Public Works and Government Services Canada should allow alternative technologies to compete on a level playing field for government vehicle fleet contracts. The full life-cycle capital and operating costs should be part of the calculation of best value and the selection of winning bidders.

15.         In order to allow Canadian railways to conduct testing related to railway transportation over the course of twelve months rather than six, Transport Canada should amend section 22.1(1) of the Railway Safety Act to this effect before the provision comes into force by order of the Governor in Council.

16.         In order to facilitate the importation of foreign passenger rail equipment and its safe operation on infrastructure used by freight rail equipment built to North American standards, Transport Canada should review the work of the Federal Railroad Administration on this subject in the United States while defining the content of regulations suitable for Canada.

17.         The Government of Canada should develop regulations to allow the use of innovative electric transit systems, including battery, flywheel, contactless charging, etc.

18.         Transport Canada should create clear pilot certification rules for airships/hybrid air vehicles.

Recommendation:

19.         To avoid risks related to a potential failure of an unproven hybrid air vehicle technology, Public Works and Government Services Canada should consider a “pilot project”, involving the transport of non-urgent goods to remote destinations. Such a test run should only happen on a commercial basis, at a price competitive with alternatives, when the government has a need. Payment should only follow successful delivery.

Recommendation:

20.         That after hybrid air vehicles are proven reliable, Public Works and Government Services Canada allow them to compete on a level playing field with other modes of transportation for federal government contracts delivering heavy cargo over long distances.

21.         Transport Canada should support the development of international regulations for airships and hybrid air vehicle technology.

22.         In order to prevent new wind turbines from affecting NAV CANADA operations, the Minister of Transport should review the regulations concerning the location of wind turbines in the vicinity of all aerodromes, including un-registered facilities.

23.         Environment Canada should examine HD Petroleum’s claims in regards to recycling petroleum products and the Sulphur in Diesel Fuel Regulations, and respond according to its findings.