Canada Gazette, Part I, Volume 148, Number 19: Potable Water on Board Trains, Vessels, Aircraft and Buses Regulations

May 10, 2014

Statutory authority

Department of Health Act

Sponsoring agency

Public Health Agency of Canada

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Background

Each year, millions of Canadians and international visitors travel on trains, aircraft, vessels (e.g. ferries and cruise ships), and buses. Many of these conveyances provide potable water to passengers. The Department of Health Act sets out the Minister's mandate, which extends to the protection of public health on railways, ships, aircraft and all other methods of transportation, and their ancillary services. The PWRCC that came into force in 1954 outline requirements for conveyance operators within federal jurisdiction to supply to passengers water and ice that are free of pathogenic bacteria, obtained from approved sources, and stored and handled safely. Conveyance operators are required to clearly label components of the potable water system and to clean and disinfect the system at prescribed intervals using specific techniques. The PWRCC also prescribe vessel construction in relation to potable water tanks.

Since the implementation of the PWRCC, industry has been adopting improved technologies for the design, construction, storage, treatment and supply of potable water on board conveyances. Industry has been requesting relief from the technical provisions of the PWRCC, as they are no longer reflective of current industry standards.

A 2005 audit by the Commissioner of the Environment and Sustainable Development (CESD) recommended that Health Canada revise the PWRCC to include reference to the Guidelines, (see footnote 1) in order to reflect the latest scientific research regarding drinking water quality. Health Canada's response to CESD acknowledged the need for updated regulations and proposed development of a comprehensive risk-based approach to public health protection on conveyances. The risk-based approach includes repealing the PWRCC and replacing them with the modernized regulatory requirements presented below.

Since 2006, most airline conveyance operators have been working with Health Canada's Travelling Public Program to develop and implement Potable Water Management Plans (PWMPs) to minimize public health risks associated with potable water. PWMPs are written procedures and documentation that identify and describe the actions and measures that conveyance operators take to manage risks, and they are part of a comprehensive risk-based approach. (see footnote 2) Operators of conveyances from other transportation sectors have also been encouraged to implement PWMPs. Conveyance operators that have developed and implemented PWMPs are expected to be well positioned for compliance with the proposed Regulations because they already have plans in place to manage and minimize public health risks associated with potable water served to passengers.

It should be noted that on April 1, 2013, the Travelling Public Program moved from Health Canada to the Public Health Agency of Canada. This change has not affected the program's operations, and the Agency remains committed to modernizing the PWRCC to help ensure the continued protection of the travelling public in Canada.

Issues

The health of Canadians and international visitors would be at risk if they were exposed to contaminated water on board conveyances. The PWRCC aim to manage risks associated with water supplied to passengers while travelling on conveyances. The PWRCC include provisions related to water disinfection, water quality and vessel construction that no longer reflect the latest industry or scientific standards. New regulations with modernized requirements are being proposed to help ensure the continued health protection of the travelling public in Canada.

Objectives

The objective of the proposed Regulations is to protect the public by managing risks associated with water supplied to passengers travelling on conveyances. This proposal is intended to modernize requirements for potable water supplied to passengers on board conveyances.

Description

The proposed Regulations, to be made pursuant to subsection 11(1) of the Department of Health Act, would replace the PWRCC with modernized requirements. The proposed Regulations would apply to trains, vessels, aircraft, and buses that are authorized to carry at least 25 passengers and that are within federal jurisdiction.

The proposed Regulations do not oblige conveyance operators to provide water to passengers, but set out requirements for when they choose to do so.

The proposed Regulations would require conveyance operators to ensure that water and ice are provided in sufficient quantity for passenger needs and for food preparation on board. Water and ice could be supplied from a potable water system, or as bottled water and prepackaged ice. Conveyance operators would need to ensure that bottled water and prepackaged ice meet the requirements set out in the Food and Drug Regulations (currently Division 12 of Part B), made pursuant to the Food and Drugs Act. Conveyance operators would also need to ensure that bottled water and ice are handled in a way that minimizes the risk of contamination. For example, conveyance operators could use individual-sized bottles or disposable cups when serving bottled water and an ice scoop or tongs to handle ice.

Conveyance operators would be required to ensure that potable water provided to passengers through an on-board potable water system is taken from a water source that is considered suitable for human consumption by the Government of Canada, the government of any other state or a provincial, municipal or regional district government, or by an entity that is owned or controlled by any of those governments.

Conveyance operators would be required to ensure that the potable water meets bacteriological parameters for E. coli as specified in the Guidelines (i.e. no E. coli can be detected in the potable water). (see footnote 3) To monitor the level of E. coli, sampling of potable water would be required at frequencies and sampling sites specified in the Schedule of the proposed Regulations. Sampling requirements vary by conveyance and are based on public health risk. Analysis of water samples would need to be conducted in accordance with Part 9000 of the Standard Methods for the Examination of Water and Wastewater. (see footnote 4)

Conveyance operators would be required to disinfect and flush potable water systems any time water sampling confirms the presence of E. coli and any time there are grounds to believe the water system may have become contaminated. Conveyance operators would also be required to disinfect and flush the water system within seven days before it is put into service and within seven days before it is returned to service after repairs, maintenance, replacement of parts or other interruptions. Analyzing water for E. coli would be required to ensure that no E. coli is present in the water supply after disinfection and flushing.

Conveyance operators would be required to keep or have access to a record that specifies when and where water is loaded onto a conveyance, the source of the water, the name of any water transporters used, where and when water samples are taken, and the results of water analyses. Any time the conveyance operator disinfects and flushes a potable water system, the date and time would need to be recorded. Conveyance operators would be required to ensure that all records are kept for a period of three years and are readily accessible for examination.

The proposed Regulations specify that potable water systems would need to be designed, constructed and operated to prevent the risk of contamination, by preventing backflow, protecting filling connections and cross connections, and protecting the system from tampering. The proposed Regulations also specify that components of potable water systems must be clearly labelled. These fundamental design and operating measures aim to prevent potable water from mixing with non-potable water or wastewater, which could contaminate the potable water supply and lead to water-borne illness.

The proposed Regulations specify that the Minister of Health would inform conveyance operators of the results of inspections and water samples taken on board conveyances.

The proposed Regulations would repeal and replace the PWRCC and would come into force six months after the day they are published in the Canada Gazette, Part II.

Regulatory and non-regulatory options considered

In addition to the proposed approach described above, the following options were considered.

Status quo

As described in the “Background” section, the PWRCC contain provisions related to water disinfection and vessel construction that no longer reflect the latest industry or scientific standards. The PWRCC do not reference the E. coli parameter in the Guidelines and are not consistent with the latest scientifically accepted standards for drinking-water quality. Updating the PWRCC requirements would, therefore, be expected to better protect the health of the travelling public.

For these reasons, maintaining the status quo as a viable option was rejected.

Voluntary option

As indicated above, PWMPs have been implemented by most conveyance operators in the airline sector. Conveyance operators of conveyances in other sectors are developing and increasingly adopting similar plans. PWMPs provide flexibility for conveyance operators to choose the most appropriate actions and measures to meet the Guidelines' parameter for E. coli; however, a voluntary approach would not necessarily result in all conveyance operators adopting and implementing PWMPs to manage risks associated with potable water provided to passengers. Further, adopting a voluntary approach lacks an enforceability mechanism necessary for the Government to require corrective actions from an operator should the potable water or the potable water system of a conveyance become contaminated.

Given the potential public health risks to travellers associated with water supplied on board conveyances, a voluntary approach was not deemed sufficient and was rejected.

Benefits and costs

Health Canada identified and analyzed the key costs and benefits of the proposed Regulations. The analysis included impacts of the proposed Regulations on industry, consumers, the Government and Canadians. This analysis was based on a projected scenario that is believed to represent the most likely outcome of the regulatory change. Efforts were made to provide a quantitative and monetized analysis; however, due to limitations with data availability and uncertainties, it was not possible to quantify and monetize all expected impacts of the proposed Regulations. Qualitative assessments are provided in instances when quantification or monetization was not possible. Results of the analysis undertaken are summarized below. More details on the analysis conducted and the underlying data are available on request.

Analytical framework

The cost-benefit analysis identifies and quantifies, to the extent possible, the incremental costs and benefits of the proposed Regulations by comparing the proposed Regulations to the status quo.

The proposed Regulations would require little or no upfront capital costs, so the only significant costs are expected to be the annual compliance and administrative costs. Costs on a per-conveyance basis are assumed to be fairly constant over time. Therefore, the total costs associated with the proposed Regulations are expected to increase proportionately to any increase in the total number of conveyances operating in Canada over time. The benefits of the proposed Regulations are dependent on the number of passengers. This is also expected to increase over time proportionately to any increase in the number of conveyances operating in Canada.

Since costs and benefits are both dependent almost exclusively on the number of conveyances operating in a given year, the benefit-to-cost ratio is expected to be relatively constant over time. The period of time covered by this analysis, therefore, would not affect the determination as to whether total benefits are larger than total costs. For consistency with other elements of this Regulatory Impact Analysis Statement, a 10-year time horizon has been adopted for this analysis.

A discount rate of 7% is used for estimating the present value (base year: 2014) of the monetized impacts over time.

Key data and information sources: In-house conveyance data is used. Data was verified by industry stakeholders through consultation.

Key assumptions

• All conveyance operators would carry costs related to understanding the new Regulations, but these costs are assumed to be negligible.
• The size of the conveyance industry remains stable over 10 years. Note that there is some uncertainty about this simplifying assumption. However, as noted above, the magnitude of the costs and the magnitude of the benefits both depend on the number of conveyances. Any increase in the size of the industry would result in a proportionate increase in both costs and benefits, and would therefore not have a significant impact on the net present value.
• Conveyance operators choose whether or not to provide water or ice to passengers or for food preparation on board, and how to do so.
• Buses under federal jurisdiction that are authorized to carry more than 25 people are captured by the proposed Regulations. Most bus operators, however, do not provide water from a potable water system to their passengers, so they would not be required to conduct routine water sampling as per the proposed Regulations. As a result, no incremental costs are expected to be carried by bus operators, and they are excluded from the cost-benefit analysis calculations below.

Table 1: Incremental cost-benefit statement

	Base Year	Final Year	Total (Undiscounted)	Present Value (At 7% Discount Rate)
	2014	2023
A. Quantified costs (CAD 2012)  Industry costs (see note 1)
Compliance costs: Water sampling	$84,431	$84,431	$844,310	$634,515
Administrative costs: Record keeping	$63,544	$63,544	$635,440	$477,548
Total	$147,975	$147,975	$1,479,750	$1,112,063
B. Benefits — Qualitative impacts
Health care system and human health	Reduced rates of illness as a result of reducing passengers' exposure to contaminated water supplies on board conveyances would lead to improved public health, improved quality of life and reduced health care costs.
Industry	Performance-based regulatory design is intended to enable potential cost savings through flexibility to adopt new technologies.

Note 1
The cost-benefit statement represents costs for Canadian operators. Costs for international companies that transport passengers in Canada were analayzed separately, and implications are included below.

Costs

Compliance costs (e.g. costs for water sampling and analysis) and administrative costs (e.g. collecting information and record keeping) would be carried by conveyance operators to comply with the proposed Regulations.

The federal government would incur negligible implementation costs associated with communicating to stakeholders about the proposed Regulations. The Government is already completing inspections and reporting back to conveyance operators, in accordance with the proposed Regulations. Consequently, the new activities associated with the proposed Regulations would be accommodated with existing resources with no increase in workload.

Compliance costs to Canadian industry

When the proposed Regulations come into force, conveyance operators would carry incremental compliance costs associated with the requirements for sampling and laboratory analysis of potable water quality. Other requirements of the proposed Regulations, including provision of water from sources fit for human consumption, and requirements related to the design, construction, and operation of on-board potable water systems, are not new. They modernize and update provisions in the PWRCC. Therefore, conveyance operators are not expected to carry incremental compliance costs related to these requirements.

It is estimated that on average, activities related to water sampling would cost $46.75 per water sample. This includes labour costs (15 minutes per sample at $47/hour), sampling and analysis costs ($25 per sample), and courier costs ($10 per sample).

Data from the Public Health Agency of Canada indicates that there are currently just over 1 000 conveyances (aircraft, cruise ships, expedition vessels, ferries and trains) operated by 33 Canadian businesses that would need to be compliant with the proposed Regulations. Considering the level of adoption of PWMPs and the current level of compliance with the PWRCC, the Public Health Agency of Canada estimates that operators of approximately 412 conveyances would need to implement additional water sampling to reach the frequencies set out in the Schedule of the proposed Regulations. Operators of the approximately 600 remaining conveyances are not expected to carry any incremental compliance costs associated with the proposed Regulations' water sampling requirements since they are currently sampling and analyzing their potable water at the proposed frequencies, providing prepackaged water or not providing potable water to passengers on board.

Costs for each conveyance depend upon the frequency of sampling and the number of individual samples taken as part of each sampling process. These requirements vary by sector and use of the conveyance. Train operators would be required to take two samples from each train, once per year. Operators of aircraft and vessels without sleeping accommodations (including most ferries operating in Canada) would be required to sample four times per year, taking two samples each time. Operators of vessels with sleeping accommodations for passengers (including cruise ships, expedition vessels and some ferries operating in Canada) would be required to sample their water once per month, taking four samples each time. However, these vessels do not typically operate year round, and they are only required to sample their water systems while operating.

Taking into consideration the cost per sample, the number of samples required per year, and the number of conveyances for which sampling would be required, the estimated total incremental compliance costs to undertake the water sampling and analysis for all conveyance operators in Canada would be approximately $84,431 per year. The breakdown by individual sector is shown in the table below.

Table 2: Incremental compliance costs

Sector	Number of Conveyance Operators	Number of Conveyances	Number of Samples per Year Required for Each Conveyance	Cost per Sample	Annual Cost per Conveyance	Number of Conveyances Not Already Meeting the Requirements, for Which Additional Costs Would Be Incurred	Total Annual Cost
Rail	3	442	2	$46.75	$94	249	$23,282
Airlines	23	557	8	$46.75	$374	156	$58,344
Vessels without sleeping accommodations (see note 2)	4	9	8	$46.75	$374	5	$1,683
Vessels with sleeping accommodations	3	3	12 (see note 3)	$46.75	$561	2	$1,122
Total	33	1 011	NA	$46.75	NA	412	$84,431
Note 2 There is one exception to samples per year required for vessels without sleeping accommodations: one ferry operates seasonally, so its operator would be required to complete two water samples twice per year, instead of four times per year. Note 3 Operators of vessels with sleeping accommodations are required to take at least 4 water samples each month when the vessel is operational. Most vessels with sleeping accommodations (including cruise ships, expedition vessels, and some ferries) operate just a few months per year, so an average of 12 samples per year for each conveyance would be required.

The largest share of the expected compliance costs are borne by the airline industry, due to the large number of impacted conveyances and the eight samples per plane that are required per year. The rail industry also accounts for a large proportion of the costs. Compared to the airline industry, the rail industry includes more conveyances that would require additional sampling in order to comply with the proposed Regulations; however, because the number of samples per year required for each conveyance is lower for trains than for airplanes, total compliance costs are lower overall for the rail industry than for the airline industry.

The vast majority of the conveyances for which costs would be incurred are owned and operated by medium or large companies. Of the 412 conveyances expected to be impacted, only 10 are owned by small companies. These include four trains, five planes, and one ferry. Total costs to small businesses under the proposed Regulations would be $2,400 per year.

Over a 10-year time horizon, the total compliance costs of the proposed Regulations, for all affected conveyance operators, would be $844,310 in undiscounted costs. Discounting future costs at 7% per year, the total present value of compliance costs would be $634,515.

Administrative costs to Canadian industry

As part of the proposed Regulations, all conveyance operators would be required to compile, store, and provide access to records about water supplies, water sampling results, and disinfection and flushing activities for a period of three years. The regulatory proposal's other requirements (including provision of water from sources fit for human consumption and requirements related to the design, construction, and operation of on-board potable water systems) are not new. They modernize and update provisions in the PWRCC. Therefore, operators are not expected to carry incremental compliance costs related to these requirements. This analysis assumes that for each sample that is collected, approximately 15 minutes would be spent to record the results. Assuming a labour cost of $47 per hour, this suggests that administrative costs would be $11.75 per sample collected.

The frequency of sample collection and the number of samples collected each time would be the same as those outlined above under “Compliance costs to Canadian industry.” Note, however, that these Regulations would require conveyance operators to record and maintain water sampling results for all conveyances under their operation. Conveyance operators would, therefore, have increased administrative costs associated with all of the conveyances they operate, not just those conveyances for which water sample frequency needs to be increased.

Aircraft, train and ferry operators with PWMPs are already keeping records of water sampling, results of analyses, disinfection and flushing; however, they may not be recording all sources of water or maintaining records for three years. Specific details of each operator's record-keeping practices are not available. This analysis assumes that in order to implement the proposed Regulations, all conveyance operators in the airline, train and ferry sectors, even conveyance operators with PWMPs, would incur incremental administrative costs associated with recording water sampling results. Administrative costs to industry for recording sampling results may therefore be overestimated.

No costs for record-keeping requirements beyond water sampling (i.e. water source, date and details of loading water onto a conveyance, flushing and disinfection activities) have been estimated. Almost all conveyance operators are already meeting these requirements, or would be able to do so with little or no change to existing procedures. Most conveyance operators already keep records about water loading, water source, disinfection and flushing activities. Almost all the remaining conveyance operators have access to such records through subcontractors such as water haulers. Existing industry practices are therefore sufficient to meet these requirements and no associated incremental administrative costs have been estimated.

Cruise ship operators are already keeping detailed water records as per the requirements of the Public Health Agency of Canada's Cruise Ship Inspection Program, (see footnote 5) which are harmonized with requirements of the U.S. Centers for Disease Control and Prevention (CDC) Vessel Sanitation Program. (see footnote 6) Therefore, no incremental administrative costs related to record keeping for cruise ships are projected as a result of the proposed Regulations.

The total administrative costs associated with the proposed Regulations are estimated to be $63,544 per year. Details of this calculation, and the costs by sector, are shown below.

Table 3: Incremental administrative costs

Sector	Number of Conveyance Operators	Number of Conveyances	Number of Samples per Year Required for Each Conveyance	Cost per Sample	Annual Cost per Conveyance	Total Annual Cost
Rail	3	442	2	$11.75	$24	$10,387
Airlines	23	557	8	$11.75	$94	$52,358
Vessels without sleeping accommodations (see note 4)	4	9	8	$11.75	$94	$799
Total	30	1 008	NA	$11.75	NA	$63,544
Note 4 There is one exception to samples per year required for vessels without sleeping accommodations: one ferry operates seasonally, so its operator would be required to complete two water samples twice per year, instead of four times per year.

As with compliance costs, the bulk of the administrative costs are borne by the airline sector, with the rail sector accounting for most of the remaining costs.

The administrative burden imposed by the proposed Regulations would impact five small business conveyance operators that operate a total of four trains, five airplanes, and one ferry. Total administrative costs for these five small businesses would be $611 per year.

Over a 10-year time horizon, the total administrative costs of the proposed Regulations, for all affected conveyance operators, would be $635,440 in undiscounted costs. Discounting future costs at 7% per year, the total present value of compliance costs would be $477,548.

Total costs to domestic industry

The proposed Regulations are estimated to impose compliance costs of $84,431 per year to industry, and administrative costs of $63,544 per year, for total costs of $147,975 per year. When a 7% discount rate is applied, the present value of all costs to industry, over the next 10 years, is estimated to be $1,112,063.

These expected costs to industry would represent a very small fraction of the total costs of operating conveyances in Canada. Conveyance operators that would be affected by the proposed Regulations have costs and revenues that are estimated to be over $10 billion per year, and they carry millions of passengers every year. The proposed Regulations are estimated to cost less than one hundredth of one percent of total operating costs for the transportation industry, or less than one cent per passenger. Therefore, the proposed Regulations are not expected to have any significant impact on the competitiveness or profitability of Canadian conveyance operators.

Costs to international industry

The analysis above includes only Canadian-owned conveyance operators. The Public Health Agency of Canada estimates that 60 international companies operating 319 passenger conveyances (most of which are airplanes) would be subject to the proposed Regulations.

Assuming the same frequency and costs for sampling and record keeping as used in the Canadian analysis, international conveyance operators would assume incremental compliance and record-keeping costs of approximately $118,000 per year to implement the proposed Regulations. Roughly 95% of these costs would be experienced by large international airline operators.

The analysis assumed that no international airline operators are meeting the sampling or record-keeping requirements of the proposed Regulations, although, in reality, international carriers may already be meeting these requirements in order to comply with existing regulations in other jurisdictions (e.g. U.S. Environmental Protection Agency's Aircraft Drinking Water Rule). The total estimated costs to international companies operating passenger conveyances in Canada are therefore likely inflated.

Costs to international conveyance operators are small enough that the proposed Regulations are not expected to have any impact on the scale of international conveyance operations in Canada. There were over 22 million passenger trips on aircraft from Canada to the United States and other international destinations in 2011. (see footnote 7) Assuming 20% of passenger trips were aboard internationally operated airlines, the proposed Regulations would cost international airline operators less than three cents per passenger to implement. These additional costs, therefore, would not be expected to affect the decisions of international carriers to operate in the Canadian marketplace, and would not be expected to result in any noticeable impact on international ticket prices.

Costs to consumers

Consumers travelling on conveyances are not expected to be adversely impacted by the proposed Regulations. Costs to conveyance operators are small enough that any resulting costs passed on to consumers in the form of higher ticket prices are expected to be negligible.

Costs to Government

The federal government would incur negligible implementation costs associated with communicating to stakeholders about the proposed Regulations. The federal government is already completing inspections and reporting back to conveyance operators, in line with the proposed Regulations. Consequently, the new activities associated with the proposed Regulations would be accommodated with existing resources and there would be no increase in workload for inspectors.

Benefits

The proposed Regulations would maintain the objective of the PWRCC and are expected to benefit Canadians as described below.

Health benefits

It is expected that the increased water-sampling and record-keeping requirements outlined in the proposed Regulations would lead to the improved safety of water used on conveyances in Canada, thereby reducing the risk of illness for the travelling public.

Canadians would benefit from improved public health standards related to water on conveyances, including those that have not yet implemented PWMPs. Specifically referencing the Guidelines' E. coli parameter would help manage risks associated with potable water supplied to passengers on board conveyances and help reduce public exposure to this pathogen. For travellers and the Canadian population, the proposed Regulations are expected to contribute to reduced rates of gastrointestinal illness.

Gastrointestinal illness in Canada is a widespread problem that imposes significant costs on the medical system and on the productivity of Canadian workers. Precise estimates of the incidence of this illness or the burden to the health care system and the Canadian economy are difficult to obtain, since most cases of gastrointestinal illness do not receive treatment by a physician. Some studies suggest that for every case of gastrointestinal illness that is reported, there are over 300 unreported cases. (see footnote 8) The Public Health Agency of Canada estimates that Canadians experience an average of 1.3 episodes of gastrointestinal illness per person per year, for a total of 42 million cases per year in Canada. (see footnote 9) The Public Health Agency of Canada estimates that the economic costs of this illness may be about $88 per case, for total economic costs of $3.7 billion per year in Canada.

There is no information about the number of cases of gastrointestinal illness resulting from exposure to contaminated water on board conveyances, so it is not possible to precisely quantify and monetize the health benefits of reduced illness attributable to these Regulations. However, if even a small fraction of all gastrointestinal illnesses were related to water consumption on board conveyances, then the health benefits of these Regulations could be significant. For example, if these Regulations could prevent even 1 out of every 20 000 cases of gastrointestinal illness in Canada, then the economic benefits would be approximately $185,000 per year, based on the costs of illness reported by the Public Health Agency of Canada. It is also important to note that these economic impacts would not take into account the impacts of pain and suffering and the impact on quality of life. The full socio-economic benefits of the proposed Regulations would be even larger than the potential economic cost savings.

Benefits to industry

The proposed Regulations are tailored to provide industry with the flexibility to adopt modern or new technology for potable water system design, construction and operation, including methods of disinfection that suit conveyance operators' particular circumstances. The associated benefits are expected to reduce the cost of investment and the time needed for disinfection activities. The proposed Regulations would complement the PWMPs that have already been developed and implemented by many conveyance operators.

Furthermore, ship operators would no longer incur the administrative costs of submitting ships' potable water system plans to the Minister, which is a requirement of the current PWRCC.

Benefits to Government

In addition to addressing the recommendation of the CESD, referencing the E. coli parameter of the Guidelines supports consistency with water regulations in Canadian provinces and territories that also use the Guidelines to inform their respective water regulations.

“One-for-One” Rule

The “One-for-One” Rule was implemented to control new administrative burden imposed on businesses as a result of regulations. In summary, the rule requires that departments

• restrict the growth of administrative burden by ensuring that new administrative burden on business introduced by a regulatory change (IN) is offset by an equal decrease in administrative burden on business from the existing stock of regulations (OUT); and
• control the number of regulations by repealing at least one existing regulation every time a new one imposing administrative burden on business is introduced.

As noted above, the proposed Regulations are expected to result in an increase in administrative costs to industry of $63,544 per year. (see footnote 10) Assuming that 2014 is the first year in which administrative costs would be incurred as a result of these Regulations, then the undiscounted costs of these Regulations for the 10-year period from 2014 to 2023 would be $635,440. Discounting future costs at 7% per year, and using 2013 as the base year, the present value of administrative costs resulting from the proposed Regulations would be $417,109 in 2014. This would be considered the “IN” under the “One-for-One” Rule.

On the day of its coming into force, the proposed Regulations would repeal and replace the PWRCC. The repeal of the PWRCC would offset the implementation of the proposed Regulations, satisfying the second element of the “One-for-One” Rule.

Small business lens

The total costs to small businesses associated with this proposal are beneath the threshold for the small business lens, and are not disproportionately high compared to costs borne by larger businesses. Consequently, the small business lens does not apply.

The total costs to small business resulting from these Regulations (both compliance and administrative) are estimated to be just over $3,000 per year.

Costs associated with the proposed Regulations are dependent upon the number of conveyances owned by each operator. Individual small businesses would have lower costs, because they operate fewer conveyances, but their costs per conveyance would be the same as for larger businesses. Therefore, the proposed Regulations would not impose costs on small businesses that are disproportionate relative to the costs for larger conveyance operators.

Consultation

The need for modernized regulatory requirements to manage public health risks associated with potable water provided to passengers on board conveyances was discussed for many years by the conveyance industry as well as federal government and international partners. Health Canada held discussions with stakeholders and partners during the development of the proposed Regulations.

Industry

Health Canada held preliminary consultations with conveyance industry stakeholders during two days in October 2011. The first day was held with representatives from the airline industry, including representatives from industry associations and flight kitchens. The second day included representatives from rail, ferry, cruise ship and small vessel companies and industry associations. During these meetings, Health Canada outlined its intentions to proceed with modernizing the PWRCC in line with recognized Canadian and international standards.

Overall, industry showed support for the initiative and expressed the view that the adoption of standards consistent with other regulatory authorities would be very beneficial in order for the industry to remain competitive. There was also strong support for performance-based regulations rather than prescriptive provisions that do not allow industry the flexibility to adopt new technologies as they arise.

In January 2013, Health Canada met with airline, rail, bus, cruise ship, and ferry associations and conveyance operators to present the requirements of the proposed Regulations and solicit feedback. In general, industry stakeholders were very supportive of the proposed Regulations, including the flexibility to adopt disinfection processes and technologies that are results-based. Some issues were raised during the consultations, and below is a summary of the key comments as well as Heath Canada's response:

• The airline and rail industries noted that the projected costs of water sampling to industry under the proposed Regulations were underestimated. The costs were subsequently adjusted to include labour and courier costs, and are reflected in the cost-benefit statement above.
• The airline and rail industries were concerned with the record-keeping requirements to document source water and time of on-boarding water onto aircraft. In response to these concerns, the proposal was revised so that industry would be required to have a record of the date, place and source of water being loaded on board a conveyance, but not the time. The Public Health Agency of Canada reiterated that industry would not be required to implement brand new record-keeping systems, and revised the proposed Regulations to remove the requirement that records be available on board conveyances. Rather, the proposed Regulations require conveyance operators to ensure that records are made accessible for examination upon request (e.g. for the purposes of an inspection or an investigation of potential public health risk associated with the water supply).
• Some airline and rail stakeholders also raised concerns about the frequency of sampling required, suggesting this would be logistically challenging. Given risks and flexibility offered in this proposal with disinfection technology, routine water sampling based on risk (as per the Schedule of the proposed Regulations) is required to help ensure water supply remains safe from a public health perspective. Therefore, the proposed Regulations were not changed. Of note, most conveyance operators are already meeting or close to meeting the proposed sampling frequencies within their fleets.

Other Canadian jurisdictions

Transport Canada and Human Resources and Skills Development Canada (Labour) have been consulted throughout the regulatory process and are supportive of the proposed Regulations.

During the summer and fall of 2011, the regulatory proposal was presented to the Council of Chief Medical Officers of Health (CCMOH), which represents all provincial and territorial public health authorities. Health Canada also held informal discussions with provincial and territorial partners. There was general support for the proposal among the CCMOH and provincial and territorial partners.

Regulatory cooperation

The proposed Regulations have been drafted to align with Canadian guidance documents related to drinking water and with international regulations and guidance documents related to potable water on board conveyances.

The Public Health Agency of Canada has incorporated a reference in the proposed Regulations to the stringent parameter for E. coli established in the Guidelines. This enhances national coordination, because the Guidelines are developed by the Federal-Provincial-Territorial Committee on Drinking Water, which includes membership from all 10 provinces, 3 territories as well as the federal government. All Canadian jurisdictions use the Guidelines to inform their own potable water regulations and standards.

The proposed Regulations support cooperation between federal departments. Transport Canada has implemented occupational health and safety provisions related to the drinking water provided to the master and crew of aviation, (see footnote 11) maritime (see footnote 12) and rail (see footnote 13) conveyances within federal jurisdiction. The proposed Regulations include similar provisions related to potable water on board conveyances, but apply to water for passengers.

The proposed Regulations are not developed to meet a commitment under the Joint Action Plan for the Canada-United States Regulatory Cooperation Council. However, in recognition of the shared border and significant international travel between Canada and the United States, the regulatory proposal was discussed with the U.S. Environmental Protection Agency (EPA) and the U.S. Food and Drug Administration (FDA), and reviewed against relevant American legislation that applies to passenger conveyances:

• The U.S. EPA's National Primary Drinking Water Regulations apply to all public or semi-public drinking water systems, including those on interstate conveyances, through the Aircraft Drinking Water Rule (promulgated in October 2009). The Aircraft Drinking Water Rule contains requirements for airlines to analyze drinking water for E. coli, conduct routine disinfection and flushing of potable water systems, and maintain records of these requirements.
• The U.S. FDA regulates drinking water systems on board interstate conveyances and related servicing facilities (Part 1250 - Interstate Conveyance Sanitation). The FDA interstate regulations include provisions for regular cleaning and disinfection to achieve microbiological standards as well as specific provisions relating to backflow prevention in potable water systems.

The Public Health Agency of Canada also shared the regulatory approach with the World Health Organization (WHO). The proposed Regulations contain similar requirements as in the WHO published guidance entitled “Guide to Hygiene and Sanitation in Aviation. (see footnote 14) The guidance includes provisions for aircraft drinking water systems, including selection of a safe source of water, uses of potable water on board, provision for bottled water, application of drinking water guidelines (including guidelines on E. coli) and routine monitoring. Many international airlines use this document to support the implementation of their PWMPs.

Rationale

Given the potential public health risks to travellers associated with water supplied on board conveyances, federal regulatory requirements would benefit from modernization to help support the continued public health protection of the travelling public in Canada.

A voluntary approach through industry adoption and implementation of PWMPs was considered as an alternative to the proposed Regulations; however, a voluntary approach would not ensure that every conveyance operator adopts and implements a PWMP to manage risks associated with potable water provided to passengers. Further, adopting a voluntary approach lacks an enforceability mechanism necessary for the government to require corrective actions from an operator should the potable water or the potable water system of a conveyance become contaminated. Given the potential public health risks to travellers associated with water supplied on board conveyances, a voluntary approach was not deemed sufficient.

The proposed Regulations would modernize the regulatory requirements for managing risks associated with potable water provided to passengers on board conveyances. The proposed Regulations would provide flexibility for conveyance operators to choose appropriate water systems and disinfection practices, while requiring them to ensure that the water provided to passengers is free from E. coli. Referring to the Guidelines' stringent parameter for E. coli in the proposed Regulations enhances national coordination, because the Guidelines are used by all Canadian provinces and territories to inform their respective potable water regulations and standards. In light of these considerations, developing the proposed Regulations was determined to be the best option to manage risks associated with water supplied to passengers on board conveyances.

Health Canada consulted with industry associations and conveyance operators in the airline, rail, ferry, bus, cruise ship and small vessel sectors. Health Canada also consulted provincial, territorial and international partners and stakeholders. Overall, there was support for the proposed regulatory initiative, and the views expressed were taken into consideration during the development of the proposed Regulations.

A cost-benefit analysis of the impacts of implementing the proposed Regulations indicated that in order to meet the regulatory requirements, conveyance operators would carry compliance and administration costs totalling about $150,000 per year. The impact on industry is not expected to result in any negative spillover effect on related economic activities. Incremental costs to small businesses are estimated to be insignificant and would not disproportionately affect them. Negligible costs are expected for Government and other stakeholders.

Industry would benefit from the proposed Regulations, which allow greater flexibility than the PWRCC in the design, construction, operation and disinfection of potable water systems. In addition, implementing the proposed Regulations is expected to contribute to the reduction of the number of cases of gastrointestinal illness in Canada, through the management of risks associated with exposure to contaminated water supplies during travel on board passenger conveyances.

Overall, the proposed Regulations are expected to result in benefits that exceed costs.

Implementation, enforcement and service standards

Implementation

The proposed Regulations would come into force six months after the day on which they are published in the Canada Gazette, Part II. Before the Regulations would come into force, the federal government would work with industry and other federal government departments and agencies to raise stakeholder awareness of the regulatory requirements and ensure their smooth introduction. This would include the early communication of revised existing industry guidelines to reflect the regulatory requirements, and the development of additional tools for stakeholders (e.g. supporting templates and how-to guidelines for stakeholders). The Minister of Health would continue to work with industry stakeholders to help ensure their PWMPs or water management operations would comply with the proposed Regulations. The Minister of Health would also respond to all inquiries from stakeholders and the public.

Enforcement

The enforcement approach for the proposed Regulations would include conducting inspections of conveyances. The frequency of inspections would be determined through a risk assessment process, resulting in a greater emphasis on conveyances that pose a higher public health risk to passengers. Follow-ups and reinspections would be conducted to address specific areas of non-compliance should they be observed and measures would be taken by environmental health officers or medical officers within the Public Health Agency of Canada when necessary. When regulatory compliance is not achieved, enforcement action may be taken under subsection 11(2) of the Department of Health Act, which states that any person who contravenes a regulation made under the Act is guilty of an offence punishable on summary conviction. Under section 787 of the Criminal Code, this carries a maximum penalty of six months of imprisonment, a fine of $5,000, or both.

Service standards

The Public Health Agency of Canada would respond to enquiries related to the proposed Regulations in a timely manner, within 10 business days.

Results of inspections and analyses of water samples taken would be communicated to conveyance operators within 15 business days.

Performance measurement and evaluation

Every conveyance operator that provides water to passengers would be required to comply with the provisions of the proposed Regulations. Compliance would be assessed through scheduled and unscheduled inspections of conveyances, review of water sampling results for E. coli and verification of records related to on-board potable water systems and water supplied to passengers.

Contact

Sara Strawczynski
Senior Policy Advisor
Travelling Public Program
Public Health Agency of Canada
100 Colonnade Road
Postal Locator 6201A
Ottawa, Ontario
K1A 0K9
Telephone: 613-954-2316
Fax: 613-952-8189
Email: tpp.ppv@phac-aspc.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council, pursuant to subsection 11(1) of the Department of Health Act (see footnote a), proposes to make the annexed Potable Water on Board Trains, Vessels, Aircraft and Buses Regulations.

Interested persons may make representations concerning the proposed Regulations within 75 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Sara Strawczynski, Senior Policy Advisor, Travelling Public Program, Public Health Agency of Canada, 100 Colonnade Road, Postal Locator 6201A, Ottawa, Ontario K1A 0K9 (fax: 613-952-8189; email: tpp.ppv@phac-aspc.gc.ca).

Ottawa, May 1, 2014

JURICA ČAPKUN
Assistant Clerk of the Privy Council

POTABLE WATER ON BOARD TRAINS, VESSELS, AIRCRAFT AND BUSES REGULATIONS

INTERPRETATION

Definitions

1. The following definitions apply in these Regulations.

“contamination”
« contamination »

• “contamination”, in respect of water or ice, means

• (a) the introduction of foreign matter, including
  • (i) filth,
  • (ii) toxic substances, or
  • (iii) pests as defined in the Pest Control Products Act;
• (b) the introduction or multiplication of disease-causing micro-organisms; or
• (c) the introduction or production of biological or chemical agents, including toxins, other than as a result of the disinfection of a potable water system.

“conveyance”
« véhicule »

“conveyance” means any of the following methods of transportation that is used by an operator for the transportation of passengers and is authorized, under a law of Canada or of another country, to transport at least 25 persons, but that is not used for providing urban transit services:

• (a) an aircraft;
• (b) a vessel used for interprovincial or international transportation;
• (c) a bus used for interprovincial or international transportation; and
• (d) a train used for interprovincial or international transportation or on a railway declared to be for the general advantage of Canada.

“operator”
« exploitant »

“operator” means a person or entity that carries on a business of transporting passengers.

“passenger”
« passager »

“passenger” means a person who is carried on board a conveyance under a contract, but does not include

• (a) the master, pilot or driver of the conveyance; or
• (b) a member of the crew working on board the conveyance.

“potable water system”
« réseau d'alimentation en eau potable »

“potable water system” means any equipment on board a conveyance that is used for handling, treating, storing or distributing water intended to be used in the preparation of food for passengers or intended to be provided to passengers for drinking, handwashing or oral hygiene.

“preparation”
« préparation »

“preparation” includes, in respect of food, the cleaning of surfaces used in food preparation, the washing of utensils and handwashing by persons preparing or handling food on behalf of the operator.

“terminal”
« terminal »

“terminal” means a group of facilities that serve a conveyance, including by providing an arrival and departure point for passengers.

“utensil”
« ustensile »

“utensil” means kitchenware, tableware or other items used in the handling, preparation, storage, transportation or consumption of food, ice or potable water.

“vessel”
« bâtiment »

“vessel” means any boat, ship or other method of transportation by water.

POTABLE WATER

Provision of potable water

2. (1) An operator who transports passengers on board a conveyance must ensure that water provided on board the conveyance for the preparation of food for passengers and water provided to passengers for drinking, handwashing or oral hygiene is provided

• (a) by way of a potable water system that meets the requirements of these Regulations; or
• (b) as prepackaged bottled water.
  

Requirements for potable water

(2) An operator who transports passengers on board a conveyance on which food is prepared for passengers or who provides them with water for drinking, handwashing or oral hygiene must ensure that a sufficient quantity of water is available for those purposes and that the water meets the requirements respecting potable water set out in

• (a) sections 3 to 5, if it is provided by way of a potable water system; and
• (b) section 6, if it is provided as prepackaged bottled water.
  

Potable water system — bacteriological guidelines

3. Potable water that is provided by way of a potable water system must meet the microbiological parameter guidelines for Escherichia coli (E. coli) in the Guidelines for Canadian Drinking Water Quality — Summary Table, prepared by the Federal-Provincial-Territorial Committee on Drinking Water and published by the Department of Health, as amended from time to time.

Potable water system — source of potable water

4. Potable water that is provided by way of a potable water system must be taken from a source that is considered by the government of Canada, the government of any other state or a provincial, municipal or regional district government, or by an entity that is owned or controlled by any of those governments, to be a source of water suitable for human consumption at the time when the water is taken.

Potable water system — alternative source

5. However, potable water that is provided on board a vessel by way of a potable water system may be obtained by taking water from a body of water that is not considered to be a source of water suitable for human consumption if

• (a) the water is loaded on board when the vessel
  • (i) is not engaged on a voyage in a river,
  • (ii) is not within 11 nautical miles of the limits of a harbour, and
  • (iii) is not moored or at anchor;
• (b) the vessel is fitted with sea water desalination equipment such as a reverse osmosis unit or distillation plant; and
• (c) the water introduced into the potable water system is desalinated in accordance with the manufacturer's instructions for the sea water desalination equipment.
  

Prepackaged bottled water

6. Potable water that is provided as prepackaged bottled water must meet the requirements of the Food and Drugs Act and the Food and Drug Regulations that are applicable to prepackaged water.

Prevention of contamination — cups

7. (1) An operator who dispenses prepackaged bottled water in drinking cups to passengers must ensure that measures to prevent the risk of contamination, such as the use of single-use drinking cups, are implemented.

Prevention of contamination — taps

(2) When water that is provided to passengers or used in the preparation of food is dispensed from a prepackaged bottle containing at least 5 L of water, the operator must ensure that a tap or another means of preventing the risk of contamination is used.

Ice

8. (1) An operator who transports passengers on board a conveyance must ensure that any ice that is used on board the conveyance for the contact refrigeration of food intended for passengers or that is added to beverages intended for passengers

• (a) is made from potable water from the potable water system; or
• (b) is prepackaged and meets the requirements of the Food and Drugs Act and the Food and Drug Regulations that are applicable to ice.
  

Prevention of contamination — ice

(2) The operator must ensure that the ice is handled with an ice scoop, tongs or another utensil to prevent the risk of contamination.

WATER ANALYSIS

Water sampling

9. (1) An operator who uses a conveyance set out in column 1 of the schedule and who provides potable water by way of a potable water system must take water samples from the sampling sites, if any, set out in column 2 at the frequencies set out in column 3.

Water analysis

(2) The operator must analyse the samples for the purpose of monitoring the presence of E. coli in the potable water in accordance with a method for the analysis of potable water set out in Part 9000 of Standard Methods for the Examination of Water and Wastewater, published jointly by the American Public Health Association, the American Water Works Association and the Water Environment Federation, as amended from time to time.

POTABLE WATER SYSTEM

Potable water system

10. A potable water system must meet the following requirements:

• (a) the system must be designed, constructed and operated in a manner that prevents the risk of contamination through the implementation, in particular, of measures
  • (i) to prevent backflow,
  • (ii) to protect filling connections and cross connections, and
  • (iii) to protect the system from tampering; and
• (b) each potable water storage tank, outlet, filling connection and pipe that constitute the potable water system must be identified as a system component by a readily visible and legible sign.

Contamination

11. If the water to be provided by way of a potable water system does not meet the guidelines referred to in section 3 or there are reasonable grounds to believe that the water has become contaminated, the operator must disinfect and flush the potable water system in a manner that removes all

• (a) foreign matter, including
  • (i) filth,
  • (ii) toxic substances, and
  • (iii) pests as defined in the Pest Control Products Act;
• (b) disease-causing micro-organisms; and
• (c) biological or chemical agents, including toxins, other than those introduced or produced as a result of the disinfection of the potable water system.
  

Prevention of contamination

12. An operator who provides potable water by way of a potable water system must disinfect and flush the system in the manner set out in section 11

• (a) within seven days before the day on which the system is placed in service; and
• (b) within seven days before the day on which the system is returned to service following an interruption, including for repair or maintenance of the system, or the replacement of a part.
  

Water sampling

13. After a potable water system on board a conveyance set out in column 1 of the schedule has been disinfected and flushed as required by section 11 or 12, the operator must take water samples from the sampling sites, if any, set out in column 2 and analyse them in accordance with subsection 9(2).

INSPECTION RESULTS

Communication

14. The Minister of Health must inform the operator of the results of an inspection and of an analysis of a water sample taken during an inspection.

RECORDS

Record of source of potable water

15. (1) An operator who provides potable water by way of a potable water system on board a conveyance must ensure that a record is kept that identifies the conveyance and specifies the following information respecting the source of water loaded on board:

• (a) the date on which the water is loaded on board;
• (b) the source from which the water is taken;
• (c) the name of any terminal where the water is loaded on board;
• (d) the name of any person or entity that transports the water from the terminal to the conveyance; and
• (e) the Global Positioning System (GPS) coordinates or the latitude and longitude of the vessel's location when the water loading described in paragraph 5(a) starts.

Retention of records

(2) The operator must ensure that the record is retained for a period of 36 months after the day on which the water is loaded on board the conveyance.

Record of water analysis

16. (1) An operator who provides potable water by way of a potable water system on board a conveyance must ensure that a record is kept that identifies the conveyance and specifies the following information respecting the water samples taken under section 9:

• (a) the sampling site and the potable water storage tank from which the sample is taken;
• (b) the date and time when the sample is taken; and
• (c) the results of the analysis.

Retention of records

(2) The operator must ensure that the record is retained for a period of 36 months after the day on which the sample is taken.

Record of disinfecting and flushing

17. (1) An operator who provides potable water by way of a potable water system on board a conveyance must ensure that a record is kept that identifies the conveyance and specifies the date and time when the system is disinfected and flushed.

Record of water analysis

(2) The operator must ensure that the record specifies the following information respecting the water samples taken under section 13:

• (a) the sampling site and the potable water storage tank from which the sample is taken;
• (b) the date and time when the sample is taken; and
• (c) the results of the analysis.

Retention of records

(3) The operator must ensure that the record is retained for a period of 36 months after the day on which the potable water system is disinfected and flushed.

Record of corrective actions

18. (1) An operator who uses a conveyance must ensure that a record is kept that identifies the conveyance and specifies the following information respecting any corrective action taken in respect of the results of an inspection or an analysis of a water sample taken during an inspection:

• (a) a description of the action taken; and
• (b) the date on which the action is taken.

Retention of records

(2) The operator must ensure that the record is retained for a period of 36 months after the day on which the corrective action is taken.

Records

19. An operator who uses a conveyance must ensure that the records that are required to be retained under these Regulations are readily accessible for examination.

REPEAL

20. The Potable Water Regulations for Common Carriers (see footnote 15) are repealed.

COMING INTO FORCE

Six months after publication

21. These Regulations come into force six months after the day on which they are published in the Canada Gazette, Part II.

SCHEDULE
(Subsection 9(1) and section 13)

WATER SAMPLES FROM POTABLE WATER SYSTEMS ON CONVEYANCES

Item	Column 1 Conveyance	Column 2 Sampling Sites	Column 3 Sampling Frequency
1.	Aircraft	A tap in the galley and a tap in one lavatory facility	From each sampling site, once in each three-month period during which the aircraft is operational, with a minimum of 45 days between sampling from the same site
2.	Trains	In each rail car, a tap in the galley or bar and a tap in one lavatory facility	Once per calendar year from each sampling site, with a minimum of 180 days between sampling from the same site
3.	Vessels with sleeping accommodations for passengers	Each potable water storage tank, a tap in the galley or bar, a tap on the bridge and a tap in one lavatory facility that is not located in a passenger cabin	From each sampling site, once in each month during which the vessel is operational
4.	Vessels without sleeping accommodations for passengers	A tap in the galley or bar and a tap in one lavatory facility	From each sampling site, once in each three-month period during which the vessel is operational, with a minimum of 45 days between sampling from the same site

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