Vol. 143, No. 26 — December 23, 2009

Registration

SOR/2009-325 December 10, 2009

PILOTAGE ACT

ARCHIVED — Regulations Amending the Pacific Pilotage Tariff Regulations

RESOLUTION

Whereas the Pacific Pilotage Authority, pursuant to subsection 34(1) (see footnote a) of the Pilotage Act (see footnote b), published a copy of the proposed Regulations Amending the Pacific Pilotage Tariff Regulations, in the annexed form, in the Canada Gazette, Part I, on October 10, 2009;

Therefore, the Pacific Pilotage Authority, pursuant to subsection 33(1) of the Pilotage Act (see footnote c), hereby makes the annexed Regulations Amending the Pacific Pilotage Tariff Regulations.

Vancouver, October 23, 2009

KEVIN OBERMEYER
Chief Executive Officer
Pacific Pilotage Authority

P.C. 2009-1979 December 10, 2009

Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to subsection 33(1) of the Pilotage Act (see footnote d), hereby approves the annexed Regulations Amending the Pacific Pilotage Tariff Regulations, made by the Pacific Pilotage Authority.

REGULATIONS AMENDING THE PACIFIC PILOTAGE TARIFF REGULATIONS

AMENDMENTS

1. Subsections 6(2) and (3) of the Pacific Pilotage Tariff Regulations (see footnote 1) are replaced by the following:

(2) Subject to subsection (4), for an assignment to a ship that is 226 m or more in overall length, the pilotage charge payable is the sum of

(a) $3.0930 multiplied by the pilotage unit, and

(b) $0.00904 multiplied by the gross tonnage of the ship.

(3) Subject to subsection (4), for an assignment to a tethered tanker ship with a deadweight tonnage (summer) that exceeds 39 999 metric tons, in any waters, the pilotage charge payable is $5.139 multiplied by the pilotage unit.

(4) For an assignment to a tethered tanker ship that is 226 m or more in overall length with a deadweight tonnage (summer) that exceeds 39 999 metric tons, in any waters, the pilotage charge payable is the sum of

(a) $4.4849 multiplied by the pilotage unit, and

(b) $0.01311 multiplied by the gross tonnage of the ship.

(5) For an assignment that begins or ends on December 25, a charge of double the pilotage charge under this section is payable.

2. Section 7 of the Regulations is amended by adding the following after subsection (2):

(3) For an assignment that begins or ends on December 25, a charge of double the time charge under this section is payable.

3. Section 8 of the Regulations is replaced by the following:

8. Despite sections 6 and 7, the total charges payable under those sections in respect of a ship shall not be less than $823.82.

4. Subsections 10(2) and (3) of the Regulations are replaced by the following:

(2) If a pilot embarks on or disembarks from a ship at Anacortes, Bellingham, Cherry Point or Ferndale, in the State of Washington, a charge of $1,590 per pilot is payable in addition to any other charges.

(3) If a pilot embarks on or disembarks from a ship at an out-of-Region location that is not listed in subsection (2), a charge of $2,120 per pilot is payable in addition to any other charges.

5. The Regulations are amended by adding the following after section 13:

13.1. For the purpose of creating a fund to enable the purchase of portable pilotage units (PPUs) for certain locations, on each occasion that a pilot boat is used to embark or disembark a pilot at a location set out in column 1 of Schedule 7, the charge set out in column 5 is payable.

13.2. On each occasion that a pilot boat is used to embark or disembark a pilot at a location set out in Schedule 8, the charge set out in the corresponding column for that location is payable. The reference price that is to be used to establish the price range set out in column 1 is the daily average wholesale (rack) price per litre for diesel in Vancouver, British Columbia, on the first business day of each month, as posted on the following Natural Resources Canada Internet site: http://www2.nrcan.gc.ca/eneene/ sources/pripri/wholesale_bycity_e.cfm?PriceYear=2001&Product ID=13&LocationID=2.

6. Section 15 of the Regulations is replaced by the following:

15. (1) On each occasion that a pilotage order is initiated during the period that begins at 06:00 and ends at 17:59 with less than 10 hours’ notice for local assignments and less than 12 hours’ notice for all other assignments, a charge of $711.97 is payable in addition to any other charges.

(2) On each occasion that a pilotage order is initiated during the period that begins at 18:00 and ends at 05:59 with less than 10 hours’ notice for local assignments and less than 12 hours’ notice for all other assignments, a charge of $1,423.94 is payable in addition to any other charges.

7. Section 16 of the Regulations is replaced by the following:

16. On each occasion that the master or agent of a ship who initiates a pilotage order fails to inform the Authority that the ship is a hampered ship that may require a bridge watch exceeding eight consecutive hours, a charge of $1,337.71 is payable in addition to any other charges.

8. The portion of items 1 to 3 of Schedule 2 to the Regulations in column 3 is replaced by the following:

Item	Column 3 Amount ($)
1.	3.5444
2.	7.0888
3.	3.5444

9. The portion of item 1 of Schedule 3 to the Regulations in column 2 is replaced by the following:

Item	Column 2 Time Charge ($)
1.	177.91

10. The portion of items 1 and 2 of Schedule 4 to the Regulations in column 2 is replaced by the following:

Item	Column 2 Cancellation Charge ($)
1.	711.97
2.	177.99

11. The portion of items 1 to 3 of Schedule 5 to the Regulations in column 2 is replaced by the following:

Item	Column 2 Charge ($) (per hour or part of an hour)
1.	177.99
2.	177.99
3.	177.99

12. The portion of item 3 of Schedule 6 to the Regulations in column 2 is replaced by the following:

Item	Column 2 Transportation Charges ($)
3.	1,488

13. Schedule 7 to the Regulations is replaced by the Schedules 7 and 8 set out in the schedule to these Regulations.

COMING INTO FORCE

14. These Regulations come into force on January 1, 2010.

SCHEDULE
(Section 13)

SCHEDULE 7
(Sections 12, 13 and 13.1)

PILOT BOAT AND HELICOPTER CHARGES

Item	Column 1 Location	Column 2 Charge ($)	Column 3 Additional Charge	Column 4 Pilot Boat Replacement Charge ($)	Column 5 Portable Pilotage Unit (PPU) Charge ($)
1.	Brotchie Ledge	340	n/a	180	25
2.	Sand Heads	1,360	n/a	180	25
3.	Triple Islands	1,990	n/a	180	25
4.	Cape Beale	5,315	n/a	n/a	n/a
5.	Pine Island	3,500	n/a	n/a	n/a
6.	the entrance to Nanaimo Harbour	685	n/a	n/a	n/a

SCHEDULE 8
(Section 13.2)

PILOT BOAT FUEL CHARGES

Item	Column 1 Wholesale (rack) price for diesel in Vancouver, British Columbia (cents per litre)	Column 2 Brotchie Ledge Charge ($)	Column 3 Sand Heads Charge ($)	Column 4 Triple Islands Charge ($)
1.	up to 50.00	70	141	481
2.	50.01 to 60.00	78	160	546
3.	60.01 to 70.00	87	179	611
4.	70.01 to 80.00	95	198	676
5.	80.01 to 90.00	104	217	741
6.	90.01 to 100.00	112	236	806
7.	100.01 to 110.00	121	255	871
8.	110.01 to 120.00	129	274	936
9.	120.01 to 130.00	138	293	1,001
10.	130.01 to 140.00	146	312	1,066
11.	140.01 to 150.00	155	331	1,131
12.	150.01 to 160.00	163	350	1,196
13.	160.01 to 170.00	172	369	1,261
14.	170.01 to 180.00	180	388	1,326
15.	180.01 to 190.00	189	407	1,391
16.	190.01 to 200.00	197	426	1,456
17.	200.01 to 210.00	206	445	1,521
18.	over 210.00	214	464	1,586

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issue

The amendments to the Pacific Pilotage Tariff Regulations allow the Authority, a Crown corporation listed in Schedule III to the Financial Administration Act, to operate on a self-sustaining financial basis. The adjustments in the pilotage charges, which are consistent with the costs of providing the services, result from annual service and collective agreement contract adjustments for 2010.

Objectives

The Authority, which covers the areas between Washington State in the south to Alaska in the north, including Vancouver Island and Fraser River areas, is responsible for operating, maintaining and administering, in the interests of safety, an efficient pilotage service within all Canadian waters in and around the province of British Columbia. Section 33 of the Pilotage Act (the Act) allows the Authority to prescribe tariffs of pilotage charges that are fair and reasonable to permit the Authority to operate on a self-sustaining financial basis.

Description

To ensure financial self-sufficiency in each individual area, the Authority increases by 3% its general tariff for the following pilotage charges:

• pilotage assignments;
• time charges for bridge watches and minimum charges;
• cancellation charges, out-of-region charges, pilot boat charges, delay charges, short order charges and hampered ship charges.

The Authority is also separating the fuel charge portion from its pilot launch tariff. The fuel tariff charge portion will be adjusted monthly, based upon prices posted on the Natural Resources Canada Web site at: www2.nrcan.gc.ca/eneene/ sources/pripri/wholesale_bycity_e.cfm?PriceYear=2001&ProductID=13&LocationID=2.

The only travel charge to change is the northern fee since the Authority’s contract with a scheduled air carrier is ending in 2009, with the resultant increase of $260 per assignment.

The Authority is also initiating a new charge of $25 per boarding to fund portable pilotage units for the pilots.

These adjustments offset the increased costs in providing pilotage services and launch operations, thereby ensuring that the Authority will continue to operate on a self-sustaining financial basis.

Regulatory and non-regulatory options considered

The Authority has kept the cost of providing safe and efficient pilotage services at the minimum. Further reductions in operating costs are not deemed to be an alternative since they could reduce the quality of service provided.

The retention of the existing tariff rates was considered as a possible option. However, the Authority rejected this status quo alternative since the increase of tariff rates is necessary to reflect the actual costs for the various pilotage services provided to the industry. These amendments will ensure that the Authority maintains its financial self-sufficiency while preventing cross-subsidization among the various pilotage districts.

Benefits and costs

The increase in the pilotage charges is consistent with the current costs of providing the service and it is anticipated that these adjustments will result in an annual increase of $1,682,000 in gross revenue. This will result in an average increase of $146 per pilotage assignment for the users; the average cost of a pilotage assignment is $4,630. Despite the increase, the Authority’s pilotage rates will remain comparable with those of other competing West Coast ports, that also regularly adjust their rates; therefore, there will be no impact on Canada’s international competitiveness.

Cost-Benefit Statement	Year 1	Total NPV	Annualized value
A. Quantified Impacts (Monetized)
Benefits to PPA	$ 1,682,000	$ 1,682,000	$ 1,682,000
Costs to Industry	$ 1,682,000	$ 1,682,000	$ 1,682,000
Net Benefits	$-	$-	$-
B. Quantified Impacts (Non-$ terms)	-	-	-
C. Qualitative Impacts
Benefits	1. The Authority will continue to be financially self-sufficient. 2. Current service levels to industry will be maintained, thus ensuring a safe and efficient pilotage service.

Strategic environmental analysis

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals of 1999 and the Transport Canada Policy Statement on Strategic Environmental Assessment, a strategic environmental assessment of these amendments was conducted in the form of a preliminary scan. The strategic environmental assessment concluded that the amendments are not likely to have important environmental effects.

Consultation

The Authority has committed to regular consultation with the Chamber of Shipping (CS), which represents the shipping community on the west coast of British Columbia, along with other shipping community members including North West Cruiseship Association, agents, terminal operators and shipowners. This consultation covers all aspects of the Authority’s operation including financial, operational and regulatory matters.

The Authority consulted the CS, on June 8, 2009. By way of a letter dated September 9, 2009, the CS indicated its support of this tariff increase for January 1, 2010.

These amendments were pre-published in the Canada Gazette, Part I, on October 10, 2009, to seek comments of the public and allow interested persons to file a notice of objection.

By implementing the new tariff, the Authority will limit its financial losses and avoid the need to borrow.

Subsection 34(2) of the Act provides that interested persons having reason to believe that any charge in a proposed tariff pilotage charges is prejudicial to the public interest may file an objection with the Canadian Transportation Agency (CTA).

Pursuant to subsection 34(4) of the Act, where a notice of objection is filed, the CTA makes such investigation of the proposed charge, including the holding of public hearings, as in its opinion is necessary or desirable in the public interest.

If, however, the CTA recommends a charge that is lower than that prescribed by the Authority, the Authority shall reimburse, to any person who has paid the prescribed charge, the difference between it and the recommended charge with interest in accordance with subsection 35(4) of the Act.

Implementation, enforcement and service standards

Section 45 of the Act provides that no customs officer at any port in Canada shall grant a clearance to a ship if the officer is informed by the Authority that pilotage charges in respect of the ship are outstanding and unpaid.

Contact

Kevin Obermeyer
President and Chief Executive Officer
Pacific Pilotage Authority
1130 West Pender Street, Suite 1000
Vancouver, British Columbia
V6E 4A4
Telephone: 604-666-6771
Fax: 604-666-1647
Email: oberkev@ppa.gc.ca

Footnote a
S.C. 1998, c. 10, s. 150

Footnote b
R.S., c. P-14

Footnote c
R.S., c. P-14

Footnote d
R.S., c. P-14

Footnote 1
 SOR/85-583 

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