Canada Gazette, Part I, Volume 149, Number 25: Potable Water on Board Trains, Vessels, Aircraft and Buses Regulations

June 20, 2015

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 came into force in 1954 and outline requirements for conveyance operators within federal jurisdiction to provide water and ice to passengers that is 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 described below.

Since 2006, most Canadian airline operators have voluntarily been working with Health Canada's Travelling Public Program to develop and implement Potable Water Management Plans (PWMPs) that aim 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 mitigate risks, as 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 supplied 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 Travelling Public Program's operations. 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 that are currently in place aim to mitigate risks associated with water supplied to passengers while travelling on conveyances. However, 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 mitigating risks associated with water supplied to passengers travelling on conveyances. The proposed Regulations are also intended to modernize requirements for potable water and ice 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 apply to operators of trains, vessels, aircraft, and buses that are authorized to carry at least 25 passengers and that are within federal jurisdiction. They would not apply to conveyances that are part of an urban transit system, conveyances passing through Canada with no stops, or vessels that start and end their travels in the same province but may pass through another province or the United States without stopping.

The proposed Regulations would not oblige conveyance operators to provide water to passengers, but they would set out requirements for when operators choose to provide water for drinking, handwashing, oral hygiene and food preparation, and when they provide ice for drinks or for cooling foods intended for passengers.

The proposed Regulations would require conveyance operators to ensure that water and ice are potable and provided in sufficient quantity for passenger needs and for food preparation on board. Water and ice would need to be supplied to passengers from an on-board potable water system, or as bottled water and prepackaged ice. Water could also be supplied from a small potable water container, such as a coffee pot or water jug, provided it is a refillable container that is constructed, maintained, stored, moved and handled to help prevent contamination, and that it is readily moveable by one person.

Water supplied from an on-board potable water system or potable water containers would need to meet 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) Prepackaged water and ice are already subject to the requirements of the Food and Drugs Act, (see footnote 4) and Division 12 of the Food and Drug Regulations. (see footnote 5)

Conveyance operators would be required to take measures to ensure that water and ice are free from contamination at the time they are taken from water supplies and handled to help prevent contamination during loading onto the conveyance. Vessels that produce water on board would be able to load contaminated water (such as seawater, or water drawn from a lake) provided that the water is loaded while the vessel is moving outside the limits of a port or harbour, and that the water is decontaminated before being provided to passengers.

Conveyance operators would need to take measures to minimize the risk of contamination when water is handled on board. For example, conveyance operators could use individual-sized bottles or disposable cups when dispensing water to passengers, and could use an ice scoop or tongs to handle ice. Components of on-board potable water systems would need to be easily identifiable in order to avoid confusion with other systems on board (such as grey water or wastewater systems). Each storage tank and filling connection would need to have a label identifying it as potable water.

To monitor the level of E. coli in water from on-board potable water systems, conveyance operators would be required to sample and analyze water on board for E. coli on a routine basis, at sampling sites specified in the Schedule of the Regulations. Sampling frequencies are based on public health risk and vary by type of conveyance. Conveyance operators would be able to select among different sampling and disinfection frequencies that afford flexibility based on the frequency of routine disinfection activities. Sampling is a tool used to verify that water supplies are potable or to identify contamination that needs to be addressed. Routine disinfection and flushing of on-board potable water systems is a protective health measure that can prevent contamination from developing or persisting, Disinfection and sampling activities complement each other, and operators that conduct more frequent disinfection and flushing would not have to complete water sampling as frequently. 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 6)

Conveyance operators would be required to disinfect and flush potable water systems any time water sampling confirms the presence of E. coli. They would also be required to disinfect, decontaminate, repair or replace and flush potable water systems any time there are grounds to believe the water may have been contaminated with E. coli or another contaminant. Analyzing water would be required to ensure that the E. coli, or any other suspected or confirmed contamination, has been removed. Conveyance operators would also be required to investigate the source of contamination and assess possible impacts on any other conveyance within the operator's fleet.

Conveyance operators would be required to keep or have access to a record that specifies where and when water samples have been taken, the type of analysis completed, and the results. Conveyance operators would also need to keep or have access to a record that includes the date, time and description of system disinfection, decontamination, repair or replacement and flushing, as well as any other corrective measures. Conveyance operators would need to keep a record of any investigations related to suspected or confirmed contamination, and a record of the assessment of whether any other conveyances in their fleet were affected. Conveyance operators would be required to ensure that all records are kept and readily accessible for examination for a period of one year.

The vast majority of foreign conveyance operators in Canada are already subject to sampling requirements in their own jurisdiction. Consequently, foreign conveyance operators would be excluded from the requirements for routine sampling and associated record keeping for conveyances that have only a single stop in Canada per trip for passengers to embark or disembark. They would also be excluded from the record keeping associated with investigating suspected or confirmed contamination of a water system and the assessment of impacts on the operator's fleet, as this would likely take place outside of Canada and beyond the scope of regulatory authority conferred by the Department of Health Act. All foreign conveyance operators would remain subject to the other requirements of the proposed Regulations, including the provision of water to passengers that is suitable for human consumption, taking measures to prevent contamination when loading and serving water, maintaining on-board potable water systems, and keeping, or having access to, records about corrective measures taken. Furthermore, foreign conveyances operating in Canada for extended trips with multiple stops for passengers to embark or disembark, such as cruise ships travelling along Canada's coasts, would remain subject to all proposed regulatory requirements including routine sampling.

The proposed Regulations specify that the Minister of Health would inform conveyance operators of the results of statutory inspections and water samples taken on board conveyances, which is already a practice of the Public Health Agency of Canada.

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 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 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 mitigate risks associated with potable water provided to passengers. Further, adopting a voluntary approach lacks a compliance and enforcement mechanism and would not include mandatory corrective measures from an operator should the potable water or the potable water system of a conveyance been 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

The Public Health Agency of 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 proposed regulatory change. Efforts were made to provide a quantitative and monetized analysis; however, due to limitations with data availability, 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. Additional 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.

Implementing 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: 2016) of the monetized impacts over time. (see footnote 7)

Key data and information sources: In-house conveyance data were used. Data were verified by industry stakeholders through consultation in 2013, and revised based on stakeholder submissions received during the 2014 public review period.

Key assumptions

• All conveyance operators would assume costs related to understanding the new Regulations, but these costs are believed to be negligible.
• The size of the conveyance industry would remain stable over 10 years. While there is some uncertainty about this simplifying assumption, as noted above, the magnitude of both the costs and benefits would 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 would 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 proposal. 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.
• Conveyance operators providing water to passengers by way of a potable water system would maintain current practices for water sampling and system disinfection if they are currently meeting one of the options of the Schedule, and would not face additional compliance costs.
• As per the Schedule, operators may select from different routine sampling frequencies, depending on how frequently they routinely disinfect the on-board potable water systems. Operators of conveyances that are not already meeting one of the frequencies for sampling set out in the Schedule could choose to take additional samples to meet the regulatory requirements or alternatively, they could increase disinfection activities. Given that disinfecting and flushing a potable water system takes longer and is generally more costly than taking additional water samples, it is assumed that operators would choose to increase water sampling instead of increasing disinfection and flushing frequency, as this would be the less expensive approach to reach compliance with the proposed Regulations.

Table 1: Incremental cost-benefit statement (see footnote 8)

	Base Year 2016	Final Year 2025	Total (Undiscounted)	Present Value (at 7% Discount Rate)
A. Quantified costs (CAD 2012)  Industry costs
Compliance costs: Water sampling	$41,154	$41,154	$411,540	$289,052
Administrative costs: Record keeping	$37,610	$37,610	$376,100	$264,156
Total	$78,764	$78,764	$787,640	$553,208
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 would enable potential cost savings through flexibility to adopt new technologies.

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 assume negligible implementation costs associated with communicating to stakeholders about the proposed Regulations. The Government is already completing risk-based 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 without an increase in workload.

Compliance costs for Canadian industry

When the proposed Regulations come into force, conveyance operators would assume incremental compliance costs associated with the requirements for sampling and laboratory analysis of potable water quality. Other requirements of the proposed Regulations, including taking measures to ensure water and ice supplies are free of contamination at the time they are taken from supplies, preventing contamination during loading and handling of water, 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 assume any incremental compliance costs related to these requirements.

It is estimated that on average, activities related to water sampling will 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 almost 1 200 conveyances (aircraft, cruise ships, expedition vessels, ferries and trains) operated by 41 Canadian businesses that would need to be compliant with the proposed Regulations. Considering the level of adoption of PWMPs (which include routine sampling and disinfection procedures) and the current level of compliance with the PWRCC, the Agency estimates that operators of approximately 300 conveyances would need to implement additional water sampling to comply with the frequency set out in the sampling Schedule. Operators of the approximately 900 remaining conveyances are not expected to assume any incremental compliance costs associated with the water sampling requirements of the Regulations since they are either currently sampling and analyzing their potable water at one of the required frequencies set out in the Schedule, providing only prepackaged water to passengers on board or not providing potable water at all.

The costs for each conveyance depend upon the frequency of sampling and the number of individual samples taken as part of each sampling process. The requirements vary by sector and use of the conveyance, and operators may adopt reduced routine sampling if they frequently disinfect their on-board potable water systems. Train operators would be required to take up to two samples from each train car, once per year. Train operators that disinfect potable water systems every three months could opt for routine water sampling of each train car once every two years. Operators of aircraft and vessels without sleeping accommodations (including most ferries operating in Canada between provinces or internationally) would be required to sample up to four times per year, taking two samples each time. Operators that routinely disinfect their potable water systems would be subject to reduced routine sampling requirements, sampling on-board water supplies either once or twice per year (depending on how frequently the on-board potable water system is disinfected and flushed), and taking two samples each time. Operators of vessels with sleeping accommodations for passengers (including cruise ships, expedition vessels and some ferries operating in Canada), and any other vessels that draw water from lakes or oceans and convert it to potable water on board, would be required to sample their water once per month, taking four samples each time. These vessels do not typically operate year round, and would only be required to sample their water systems while operating.

Taking into consideration the cost per sample and the number of additional samples required each year for all Canadian operators to meet the frequency set out in the Schedule, the estimated total incremental compliance costs to undertake the water sampling and analysis for all conveyance operators in Canada would be approximately $41,154 per year. (see footnote 9) This represents a 51% reduction (difference of $43,277) to annual compliance costs compared to those in the proposal presented in the Canada Gazette, Part I, in 2014, which had an estimated incremental compliance cost for Canadian industry of $84,431 per year. The reduced cost is a result of modifications to the proposed Regulations that increase flexibility for operators to select from different sampling schedules depending on the frequency of routine disinfection of the on-board potable water system. With the introduction of modified sampling schedules, fewer operators would need to increase sampling to comply with the proposed Regulations. The cost per sample has not changed, but the total number of new samples required per 12-month period is significantly reduced, while health protection for travellers is maintained since operators would still need to disinfect and flush their systems routinely, which would help prevent contamination from developing or persisting within a water system. 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 12-Month Period Required for Each Conveyance (see note 1)	Cost per Sample	Number of New Samples Required (see note 2), (see note 3)	Total Annual Cost	Total Annual Cost Projected to 2016
Rail	5	462	0–2	$46.75	222	$10,379	$10,729
Airlines	29	691	2–8	$46.75	568	$26,554	$27,341
Vessels without sleeping accommodations	4	9	2–8	$46.75	40	$1,870	$1,928
Vessels with sleeping accommodations	3	3	12 (see note 4)	$46.75	24	$1,122	$1,156
Total	41	1 165	NA	$46.75	854	$39,925	$41,154

Notes:

• Note 1
  As per the Schedule, operators may select from different routine sampling frequencies, depending on how frequently they routinely disinfect the on-board potable water systems.
• Note 2
  The number of new samples per sector is based on Public Health Agency of Canada data about industry PWMPs and existing practices around routine water sampling and disinfection. It was assumed that operators already meeting one of the frequencies for sampling set out in the Schedule would maintain existing practices and no new samples were estimated.
• Note 3
  The most demanding routine sampling requirement was used to calculate the additional costs for conveyances not already meeting one of the frequencies presented in the Schedule (e.g. two samples per year per train car, eight samples per year per aircraft or vessel without sleeping accommodations). It is assumed that operators would select increasing water sampling, which can be completed in just a few minutes, rather than increasing the frequency of routine disinfection and flushing activities, which would generally require removing the conveyance from operation.
• Note 4
  Operators of vessels with sleeping accommodations are required to take at least 4 water samples each month when the vessel is operational. As most vessels with sleeping accommodations (including cruise ships, expedition vessels, and some ferries) operate just a few months per year in Canada, an average of 12 samples per year for each conveyance would be required.

The largest share of the expected compliance costs would be borne by the airline industry, due to the large number of impacted conveyances and the number of samples (up to eight) per plane that are required per year. The rail industry also accounts for a large proportion of the costs.

The vast majority of the conveyances for which costs would be incurred are owned and operated by medium or large companies. Of the 277 conveyances expected to be impacted, only 10 are owned by small companies. These include four train cars, five airplanes, and one ferry. Total costs to small businesses under the proposed Regulations would be $2,618 per year (or $262 per conveyance).

Over a 10-year time horizon, the total compliance costs of the proposed Regulations, for all affected conveyance operators, would be $411,540 in undiscounted costs. Discounting future costs at 7% per year, the total present value of compliance costs would be $289,052.

Administrative costs to Canadian industry

As part of the proposed Regulations, conveyance operators would be required to compile, store, and provide access to records about water supplies, water sampling results, disinfection, decontamination and flushing activities, and investigations into suspected or confirmed water contamination for a period of one year. The other regulatory requirements (including provision of water free from contamination 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 bear incremental costs related to these requirements.

The proposed Regulations would require conveyance operators to record and maintain water sampling results for all conveyances under their operation (i.e. approximately 1 200 conveyances in total). 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; however, these records may not be easily accessible for examination for one year. 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 bear incremental administrative costs associated with recording water sampling results.

This analysis assumes that for each sample collected, approximately 15 minutes would be needed to record the results. Assuming a labour cost of $47 per hour, administrative costs would be $11.75 per sample collected. The frequency of sample collection and the number of samples collected each time would depend on the frequency of routine disinfection. In-house data from the Travelling Public Program was used to estimate annual costs per conveyance, based on each individual operator's current practices for routine water sampling and disinfection and information in industry PWMPs. For example, if an airline is currently disinfecting on-board potable water systems every 90 days and taking two samples per year, the cost of record keeping for those two samples has been estimated. An airline operator who currently completes no routine disinfection of an on-board potable water system would be required to add an additional eight samples per aircraft per year, so costs of recording eight water samples have been estimated.

No costs for record-keeping requirements beyond water sampling (i.e. measures to ensure water taken from supplies are suitable for human consumption, flushing and disinfection activities, potable water system repairs and replacements, records from investigating possible contamination) 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 supply loading procedures, disinfection and flushing activities. They also keep records about special corrective measures, such as flushing, disinfection, decontamination, repairs and replacements, as well as investigations into possible contamination of water on board. Almost all the remaining conveyance operators would have access to such records through subcontractors, such as water haulers. Since existing industry practices would be sufficient to meet these requirements, no associated incremental administrative costs have been estimated.

The total administrative costs associated with the proposed Regulations are estimated to be $37,610 per year. (see footnote 10) Details of this calculation, and the costs by sector, are shown below.

This represents a 41% reduction ($25,934 less) to annual administrative costs compared to the proposal presented in the Canada Gazette, Part I, in 2014, which had an estimated incremental compliance cost to Canadian industry of $63,544 per year. With the introduction of modified sampling schedules, the total number of samples necessary in a 12-month period is reduced, since many operators will be able to adopt reduced sampling frequencies given their routine disinfection practices. The cost per sample for record keeping has not changed, but the total number of records required per 12-month period is significantly reduced. The health of travellers would continue to be protected, as operators would still need to disinfect and flush their systems routinely, to help prevent contamination from developing or persisting within a water system.

Table 3: Incremental administrative costs

Sector	Number of Conveyance Operators	Number of Conveyances	Number of Samples per 12-Month Period Required for Each Conveyance (see note 5)	Total Number of Samples to be Recorded per 12-Month Period (see note 6)	Cost per Sample	Total Annual Cost	Total Annual Cost Projected to 2016
Rail	5	462	0–2	486	$11.75	$5,711	$5,906
Airlines	29	691	2–8	2 498	$11.75	$29,352	$30,342
Vessels without sleeping accommodations	4	9	2–8	72	$11.75	$846	$874
Vessels with sleeping accommodations	3	3	12 (see note 7)	40	$11.75	$470	$484
Total	41	1 165	NA	3 096	$11.75	$36,378	$37,610

Notes:

• Note 5
  As per the Schedule, operators may select from different routine sampling frequencies, depending on how frequently they routinely disinfect the on-board potable water systems.
• Note 6
  The total number of samples per sector is based on Public Health Agency of Canada data about industry PWMPs and existing practices around routine water sampling and disinfection. It was assumed that operators already meeting one of the frequencies for sampling set out in the Schedule would maintain existing practices, and record-keeping costs for current practices were estimated for those conveyances. For conveyances not already meeting one of the frequencies presented in the schedule, the most demanding routine sampling requirement was used to calculate the additional costs (e.g. two samples per year per train car, eight samples per year per aircraft or vessel without sleeping accommodations).
• Note 7
  Operators of vessels with sleeping accommodations are required to take at least 4 water samples each month when the vessel is operational. As most vessels with sleeping accommodations (including cruise ships, expedition vessels, and some ferries) operate just a few months per year in Canada, an average of 12 samples per year for each conveyance would be required.

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 businesses that operate a total of four train cars, five airplanes, and one ferry. Total administrative costs for these five small businesses would be $658 per year (or $66 per conveyance).

Over a 10-year time horizon, the total administrative costs of the proposed Regulations, for all affected conveyance operators, would be $376,100 in undiscounted costs. Discounting future costs at 7% per year, the total present value of compliance costs would be $264,200.

Total costs to domestic industry

The proposed Regulations would impose an estimated $41,154 per year on industry for compliance costs, and an estimated $37,610 per year for administrative costs, for total costs of $78,764 per year to Canadian industry. This represents a 47% reduction from the $147,975 per year that was estimated for Canadian industry to meet the regulatory requirements in the regulations proposed in the Canada Gazette, Part I, in 2014.

When a 7% discount rate is applied, the present value of all costs to industry, over the next 10 years, is estimated to be $553,208. These expected costs to industry represent a very small fraction of the total costs of operating conveyances in Canada. Conveyance operators that will be affected by the proposed Regulations have costs and revenues that are estimated to be over $25 billion per year, and they transport millions of passengers every year. The proposed Regulations are estimated to cost less than one thousandth 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 117 international companies operate 505 passenger conveyances in Canada at any time (most of which are airplanes); these conveyances would be subject to the proposed Regulations. Foreign stakeholders advised the Agency through comment submissions that in addition to ensuring compliance with the regulatory proposal for conveyances operating in Canada at any time, they would need to ensure compliance for all conveyances in their fleets to ensure scheduling flexibility for future travel or in case of disruptions, when one conveyance must be substituted for another. This would have extended the impact of the proposed Regulations to thousands of conveyances worldwide. However, as per amendments to the proposed Regulations introduced since the version published in the Canada Gazette, Part I, in 2014, the foreign airplanes, trains and ferries operating in Canada have only a single stop in Canada per trip for passengers to embark or disembark (for example a U.S. airline operating a flight to a Canadian destination and then returning to the United States), so they would not be subject to the routine sampling requirements of the proposed Regulations. As a result, they are not expected to bear incremental costs associated with the proposed Regulations. Foreign conveyance operators would remain subject to all other regulatory requirements, such as providing passengers with water that is suitable for human consumption, taking measures to prevent contamination when loading and serving water, maintaining on-board potable water systems, and keeping or having access to records of corrective measures taken. No costs for these requirements have been estimated, since almost all operators would already meet them as per the existing requirements of the PWRCC and regulatory requirements in the jurisdictions where they are registered, or would be able to do so with few or no changes to existing procedures.

Operators of foreign conveyances that travel between two or more points in Canada in a single trip would be subject to all requirements of the proposed Regulations, including routine water sampling and record-keeping provisions. This would affect most cruise ships operating in Canada as they travel between multiple points in Canada (for example making stops at several ports in the Maritimes or along Canada's Pacific coast). This analysis assumed that international cruise ship operators are already meeting requirements of the proposed Regulations as per the requirements of the Public Health Agency of Canada's Cruise Ship Inspection Program, (see footnote 11) which are harmonized with requirements of the U.S. Centers for Disease Control and Prevention (CDC) Vessel Sanitation Program. (see footnote 12) Cruise ship operators are therefore not expected to bear any incremental costs to comply with the proposed Regulations.

The proposed Regulations are not expected to affect the decisions of international carriers to operate in the Canadian marketplace, to result in any noticeable impact on international ticket prices, or to have any impact on the scale of international conveyance operations in Canada.

Costs to consumers

Consumers travelling on conveyances are not expected to be adversely impacted by the proposed Regulations. Costs to conveyance operators would be 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 with stakeholders about the proposed Regulations. The federal government is already completing inspection and sampling activities 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 will 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 E. coli parameter of the Guidelines and requiring operators to take corrective measures and investigate any suspected or confirmed on-board water contamination would help mitigate 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 13) 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 14) 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 the proposed Regulations. However, if even a small fraction of all gastrointestinal illnesses were related to water consumption on board conveyances, then the health benefits of the proposed Regulations could be significant. For example, if the proposed Regulations prevent even 1 out of every 20 000 cases of gastrointestinal illness in Canada, then the economic benefits will be approximately $185,000 per year, based on the costs of illness reported by the Public Health Agency of Canada.

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 and frequency of sampling and 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 Canadian conveyance operators.

Furthermore, vessel operators would no longer bear the administrative costs of submitting ships' potable water system plans to the Minister, which is a requirement of the PWRCC currently in place.

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

As noted above, the proposed Regulations are expected to result in an increase in administrative costs to Canadian industry of $37,610 per year. Assuming that 2016 is the first year in which administrative costs will be imposed as a result of these proposed Regulations, the total present value costs, discounted at 7% per year, of these proposed Regulations over the 10-year period from 2016 to 2025 would be $264,156. This is considered the “IN” under the “One-for-One” Rule.

On the day of their 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 the proposed Regulations (both compliance and administrative) are estimated to be just under $3,300 per year.

Costs associated with the proposed Regulations are dependent upon the number of conveyances owned by each operator and their sampling and disinfection practices. Individual small businesses would have lower costs, because they operate fewer conveyances, but their costs per conveyance would be comparable to the costs for larger businesses (and dependent on the frequencies of sampling and disinfection practices, which may be selected by operators as per the Schedule, depending on operational requirements). Therefore, the proposed Regulations will 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 mitigate 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 the federal government and international partners.

Pre-consultations

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 give the 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. Below is a summary of the key comments as well as the Public Health Agency of Canada's response, which is reflected in the regulatory proposal published in the Canada Gazette, Part I, in May 2014.

• 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 uploading 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 will not be required to implement brand new record-keeping systems, and the Agency 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 the risks and the flexibility offered in the proposal with disinfection technology, routine water sampling based on risk is required to help ensure the water supply remains safe from a public health perspective. Therefore, the proposed Regulations were not changed at the time.

Other Canadian jurisdictions

Transport Canada and the Labour Program of Employment and Social Development Canada (formerly Human Resources and Skills Development Canada) 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 the provincial and territorial partners.

Consultation on the proposed Regulations

The proposed Regulations and the accompanying Regulatory Impact Analysis Statement were prepublished in the Canada Gazette, Part I, (see footnote 15) followed by a 75-day public comment period from May 10, 2014, to July 24, 2014. During the comment period, the Public Health Agency of Canada reached out to industry stakeholders, the CCMOH, other Canadian health and transportation authorities as well as international partners to provide information on the proposal and discuss how the proposed Regulations would be implemented. The Agency received 18 letters with comments and suggestions during the public comment period from the following sectors: Canadian and international conveyance industry operators and associations, public health authorities, and federal government representatives. Overall, most stakeholders expressed support for the regulatory objectives and suggested that modernizing the PWRCC is overdue. Other stakeholder comments on the proposal related to flexibility and cost, technical clarifications, and redundancy for foreign operators. Comments are summarized below along with responses from the Agency.

Flexibility and cost

In general, there was support for the flexibility provided for operators to select appropriate methods of disinfection based on their operational requirements, and allowing industry to adopt new technologies as they arise. There were some comments requesting additional options for water sampling frequency and testing sites. The Public Health Agency of Canada revised the Schedule's sampling sites to ensure its applicability for conveyances with different water system configurations on board. The added flexibility for routine sampling is intended to alleviate some industry concerns about the costs of implementing the proposed Regulations, while ensuring on-board water systems remain safe through the regular disinfection and analysis of water supplies.

One stakeholder noted that the proposed Regulations would not allow operators to bring jugs of water, tea or coffee on board for service to passengers, which is a common practice for aircraft and train operators. The Public Health Agency of Canada added a new provision to allow operators to carry water on board in a small container, provided it is a refillable container that is readily moveable by one person, and is constructed, maintained, stored, moved and handled to help prevent contamination.

The Public Health Agency of Canada also reviewed the record-keeping provisions. The cost to record every water upload was a significant concern to several stakeholders. The Public Health Agency of Canada replaced that requirement with a performance-based requirement for operators to maintain a record about investigations into any suspected or confirmed contamination of water on board, and to take measures to address the source of contamination. The Public Health Agency of Canada clarified the requirements regarding water supplies that can be loaded onto conveyances, and revised the requirement to keep records accessible from 36 months to 12 months, to align with international industry requirements. This will not compromise public health investigations into suspected risks undertaken by operators or the Public Health Agency of Canada, since such investigations would be completed within days or weeks. The Public Health Agency of Canada did not revise the cost-benefit analysis to add training costs related to the proposed Regulations, as suggested by two commenters. Operators are already subject to staff training costs associated with the PWRCC, and after negligible costs to all operators to understand the new requirements, significant incremental training costs associated with the proposed Regulations are not anticipated.

Technical clarifications

The Public Health Agency of Canada clarified some technical requirements of the proposed Regulations by simplifying the requirements for the labelling of water systems, revising the definition for contamination, adding a definition for disinfection, and clarifying circumstances that would require sampling beyond routine sampling schedules (i.e. in the cases of suspected or confirmed contamination, and before a new system is placed into operation). The Public Health Agency of Canada also clarified the requirements for what supplies of water could be served to passengers on board, and amended requirements for vessels that produce potable water on board to align with requirements in place for cruise ships operating internationally.

Some stakeholders suggested that the water sampling and monitoring requirements of the proposed Regulations should be expanded to address the chemical parameters of on-board water supplies. However, passenger conveyances are not equivalent to community water systems, which require more stringent routine water monitoring because users may be exposed to potable water from community water systems over a period of years. As per the Guidelines for Canadian Drinking Water Quality, chemical and radiological substances may be found in some drinking water supplies, but these are generally only a concern if they are present above guideline levels and there is exposure over the longer term. Travellers typically have a limited exposure time to water supplied on passenger conveyances, ranging from hours to a few days. The greatest risk associated with water supplied to passengers on board conveyances is therefore from acute exposure to microbiological contamination, which is why the routine sampling targets E. coli. Note that any time contamination is suspected or confirmed, whether it is microbiological, chemical, physical or radiological, the proposed Regulations require operators to respond and disinfect, decontaminate repair or replace the water system.

Redundancy for foreign operators

Several foreign stakeholders raised concerns with Canada's jurisdiction to regulate international operators, and possible redundancy with other international requirements. For example, foreign airlines are already subject to requirements for potable water in the jurisdictions where they are registered. In the United States, airlines are subject to the Environmental Protection Agency's Aircraft Drinking Water Rule and European airlines must adhere to the European Union's Directive on the quality of water intended for human consumption (98/83/EC). Other airlines adhere to industry standards, such as the International Air Transport Association (IATA) drinking water standards.

The Public Health Agency of Canada reviewed all proposed regulatory requirements in light of concerns raised by foreign stakeholders. The vast majority of foreign operators are already subject to routine water sampling requirements in their home jurisdictions. For example, fewer than 4% of all flights in Canada are arriving from or departing for countries that are not covered by Canadian, U.S. or European requirements for water on aircraft. (see footnote 16) Many of these flights are operated by airlines within IATA, and operators follow IATA's voluntary guidelines for water handling and operating on-board potable water systems, including routine water sampling.

To reduce duplication, burden and cost for the majority of foreign air carriers operating in Canada, the Agency amended the proposal by removing the requirement for foreign operators of conveyances that have only a single stop in Canada per trip from the routine water sampling and associated record-keeping requirements of the proposed Regulations. Provisions related to safe water supplies, potable water systems, water quality, water quantity, water handling, disinfection, corrective measures and follow-up will continue to apply to all operators of passenger conveyances in Canada, whether they are Canadian or foreign. The Public Health Agency of Canada would retain the authority to take water samples and complete public health inspections and investigations on board all passenger conveyances operating in Canada within federal jurisdiction.

Stakeholder recommendations adopted

The feedback received from stakeholders was carefully considered by the Public Health Agency of Canada. Recommendations to improve the proposed Regulations that were submitted by stakeholders following publication in the Canada Gazette, Part I, and adopted by the Agency include the following.

Amendments that impact flexibility and cost

• Introducing flexibility to serve water brought on board in small containers, in addition to water provided from an on-board potable water system, or as prepackaged water and ice.
• Reducing the period that records need to be kept and accessible from 36 to 12 months.
• Revising sampling sites for conveyances subject to routine sampling to ensure applicability for conveyances with different configurations.
• Adding flexibility for operators to select a water sampling schedule that meets operational requirements and links to frequency of flushing and disinfection activities.

Technical clarifications

• Introducing a definition for disinfection while maintaining performance-based disinfection requirements that can evolve over time as new technologies are introduced.
• Clarifying the definition for contamination to align more closely with accepted definitions for potable water as per the Guidelines for Canadian Drinking Water Quality.
• Clarifying requirements for water supplies, so that operators can select an appropriate potable water supply and take measures to ensure that water is free from contamination at the time it is taken from the supply, and handled to prevent contamination during loading and when on board.
• Revising the requirements for vessels that produce potable water on board to align them with requirements in place for cruise ships operating internationally.
• Simplifying labelling requirements for on-board potable water systems while maintaining the requirement that potable water systems be clearly distinguishable from other systems on board in order to prevent contamination.
• Clarifying requirements for when systems must be flushed and disinfected before being placed into operation or after they are returned to operation, and when verification sampling of the water supply is required.
• Replacing requirements for operators to keep records of all water upload activities with requirement for a plan or process allowing them to trace back possible contamination and take appropriate measures to mitigate potential public health risks.

Amendments that impact foreign carriers

• Clarifying the regulatory scope to exclude conveyances travelling through Canada without stopping.
• Removing requirements for operators of foreign conveyances with a single stop in Canada per trip to conduct routine water sampling and associated record-keeping.

Overall, stakeholders have been supportive of the objectives of this regulatory proposal, and have expressed constructive comments that have informed many of the specific approaches and requirements. Amendments to the proposal as they are presented above would result in a substantial reduction in the qualitative regulatory burden for stakeholders compared to that as originally presented in the proposed Regulations in the Canada Gazette, Part I, while maintaining the public health and safety objectives of the proposal.

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 in-cludes membership from all 10 provinces and 3 territories as well as the federal government. All Canadian jurisdictions use the Guidelines to inform their own potable water regulations and standards, and all have adopted the Guidelines' parameter for E. coli.

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 crew of aviation, (see footnote 17) maritime (see footnote 18) and rail (see footnote 19) 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 designed 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 and demonstrated substantive similarities for requirements intended to ensure that water served to passengers is safe and reliable.

• 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 and total coliforms, conduct routine disinfection and flushing of potable water systems, maintain records, and complete routine reporting.
• 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) and the International Civil Aviation Organization (ICAO). The proposed Regulations contain similar requirements to those in the guidance entitled Guide to Hygiene and Sanitation in Aviation (see footnote 20) published by the WHO. The guidance includes provisions for aircraft drinking water systems, including selection of a safe source of water, uses of potable water on board, provisions 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. The Public Health Agency of Canada continues to advocate for strong water safety regulations for conveyances globally, and is working with international partners to share information about industry and government activities, standards and compliance systems around the world.

Operators of foreign conveyances that operate in Canada are currently subject to the PWRCC. They would remain subject to the proposed Regulations, and would be required to maintain the same public health standards for water supplied to passengers as Canadian operators, including requirements around keeping water from supplies that are free of contamination, and addressing any suspected or confirmed contamination. However, routine sampling would have represented a new burden to foreign operators in Canada as it is not required under the PWRCC. Since the vast majority of foreign conveyances operating in Canada are already required to meet routine sampling, record-keeping and reporting requirements in their country of registration, operators of foreign conveyances with a single stop in Canada per trip would be excluded from some of the routine sampling and record-keeping requirements of the proposed Regulations. This is similar to the exemptions granted to Canadian conveyance operators when they are operating internationally. For example, Canadian airlines that fly in and out of the United States do not need to comply with the U.S. EPA's Aircraft Drinking Water Rule or its sampling and reporting requirements.

The Public Health Agency of Canada would continue to maintain regulatory oversight for foreign conveyances operating in Canada. For example, the Public Health Agency of Canada would complete water sampling on foreign conveyances in Canada as part of its regulatory oversight activities. Water sampling would be risk-based, and conveyances would be targeted based on factors such as regulatory oversight in their country of registration, staff knowledge and training, historical compliance and water system capacity. The Public Health Agency of Canada would take compliance and enforcement actions as needed in order to help ensure the continued protection of the travelling public in Canada.

Rationale

Given the potential public health risks to travellers associated with water supplied on board conveyances, federal regulatory requirements will 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 mitigate the risks associated with potable water provided to passengers. Further, adopting a voluntary approach lacks an enforceability mechanism necessary for the Government to require corrective measures 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 mitigating 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 stringent parameter for E. coli of the Guidelines 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 modernized regulations was determined to be the best option to mitigate the risks associated with water supplied to passengers on board conveyances.

Health Canada and the Public Health Agency of Canada consulted with industry associations and conveyance operators in the airline, rail, ferry, bus and cruise ship sectors. Health Canada and the Public Health Agency of 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 bear compliance and administration costs totalling approximately $79,000 per year to Canadian industry. The impact on industry is not expected to result in any negative spillover effect on related economic activities. Incremental costs to small businesses would not disproportionately affect them. Negligible costs are expected for Government and other stakeholders.

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

Overall, the 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 proposed Regulations 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) over time. The Public Health Agency of Canada would continue to work with industry stakeholders to help ensure their PWMPs or water management operations would comply with the proposed Regulations. The Agency would also respond to all inquiries from stakeholders and the public.

Enforcement

The enforcement approach for the proposed Regulations would include conducting inspections and water sampling of conveyances. The frequency of inspections and water sampling 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 re-inspections 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 Regulations in a timely manner, within 10 business days of the inquiry.

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

Performance measurement and evaluation

Conveyance operators that provide 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, verification water sampling, audits of operators' plans and procedures, 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 Analyst
Travelling Public Program
Public Health Agency of Canada
100 Colonnade Road
Postal Locator 6201C
Ottawa, Ontario
K1A 0K9
Telephone: 613-716-9059
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 Analyst, Travelling Public Program, Public Health Agency of Canada, 100 Colonnade Road, Postal Locator 6201C, Ottawa, Ontario K1A 0K9 (fax: 613-952-8189; email: tpp.ppv@phac-aspc.gc.ca).

Ottawa, June 9, 2015

JURICA ČAPKUN
Assistant Clerk of the Privy Council

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

INTERPRETATION

Definitions

1. The following definitions apply in these Regulations.

“contamination”
« contamination »

“contamination” means the presence of chemical, physical, radiological or microbiological parameters in water or the addition of such parameters to water — other than for disinfection of the water, a potable water system or a potable water container — in a quantity or concentration that renders or may render the water non-potable.

“disinfection”
« désinfection »

“disinfection” means a chemical, physical or radiological process or series of processes that is part of the decontamination process and that is intended to remove or inactivate microbiological parameters that are human pathogens such as viruses, bacteria and protozoa.

“operator”
« exploitant »

“operator” means a person who carries on a business of transporting passengers.

“passenger”
« passager »

“passenger” means a person who travels 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 container”
« contenant d'eau potable »

“potable water container” means a refillable container that is used for water and that meets the requirements of section 16, but does not include a bottle of prepackaged water.

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

“potable water system” means any equipment that is used on board a conveyance solely for handling, treating, storing or distributing water that is intended to be used for any purpose described in section 3, but does not include a potable water container or a bottle of prepackaged water.

“preparation”
« préparation »

“preparation” includes, in respect of food, the cleaning of surfaces used in food preparation, the washing of utensils — including kitchenware, tableware or other items used in the handling, preparation, storage, transportation or consumption of food, ice or potable water — and handwashing by persons who prepare or handle food on behalf of the operator.

“vessel”
« bâtiment »

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

SCOPE

Operator

2. (1) Every operator who is authorized, under a law of Canada or of another country, to transport at least 25 persons on board a conveyance must ensure that the requirements of these Regulations, other than the requirement set out in section 18, are met if the operator provides water to be used for a purpose the purposes described in section 3 on board any of the following conveyances:

• (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 used on a railway declared to be for the general advantage of Canada.

Excluded conveyances

(2) These Regulations do not apply to a conveyance that

• (a) is used for urban transit purposes;
• (b) has a point of departure and a point of destination outside Canada and travels through Canada without making any stops for the embarkation or disembarkation of passengers; or
• (c) is a vessel that has a point of departure and a point of destination in the same province and travels through another province or another country without making any stops for the embarkation or disembarkation of passengers.

Non-application

(3) Section 12, paragraph 13(c) and sections 19 and 22 do not apply to a foreign operator in respect of a conveyance that stops only once during its stay in Canada for the embarkation or disembarkation of passengers.

Intended use

3. These Regulations apply only in respect of water that is intended to be used

• (a) for drinking, handwashing or oral hygiene by passengers;
• (b) for food preparation for passengers; or
• (c) in the form of ice, for the contact refrigeration of food intended for passengers or to be added to beverages intended for passengers.

POTABLE WATER

Provision

4. (1) Any water that is provided for a purpose described in section 3 must be potable and in sufficient quantity for the number of passengers.

Means

(2) The water must be provided

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

Microbiological parameters

5. Water that is provided by way of a potable water system or from a potable water container 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.

Free from contamination

6. Measures must be taken to ensure that water that is to be provided by way of a potable water system or from a potable water container is free from contamination when it is taken from the water supply.

Loading of contaminated water

7. (1) Section 6 does not apply to contaminated water that is loaded on a vessel while the vessel is making way if the water is subsequently decontaminated by

• (a) in the case of salt water, reverse osmosis or distillation, or both of those processes, and, if necessary, any other decontamination process; and
• (b) in the case of fresh water, filtration and disinfection.

Excluded waters

(2) Despite subsection (1), water cannot be loaded on board a vessel from the waters within a harbour or in a port.

ICE

Ice made on board

8. Ice that is made on board a conveyance must be made from water that meets the requirements of sections 4 to 7.

Ice supply

9. Ice that is not made on board a conveyance may be used if measures are taken to ensure that it is free from contamination when it is taken from the supplier.

Ice made or loaded on board

10. (1) All ice must meet the Guidelines referred to in section 5.

Transportation and storage

(2) Measures must be taken to prevent the risk of contamination of the ice when it is loaded on board a conveyance, as well as when it is moved and when it is stored once it is on board the conveyance.

Handling

(3) Measures must be taken to prevent the risk of contamination of the ice when it is handled, such as the use of an ice scoop or tongs.

POTABLE WATER SYSTEM

General requirements

11. (1) A potable water system must be designed, constructed and operated in a manner that prevents the risk of contamination through the implementation of measures

• (a) to protect the system during the loading of water;
• (b) to prevent backflow;
• (c) to protect filling connections and cross connections; and
• (d) to protect the system from tampering.

Identification

(2) The system's components must be easily identifiable in order to avoid confusion with those of other systems, and each storage tank and filling connection must be identified through the use of a readily visible and legible label.

Routine sampling

12. (1) Water samples must be taken from the sampling sites set out in column 2 of the schedule at the frequencies set out in column 3 for the type of conveyance set out in column 1.

Analysis

(2) The samples must be analysed for the purpose of ensuring that the water is free from E. coli 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.

Corrective measures

13. If the water in a potable water system does not meet the Guidelines referred to in section 5 or there are reasonable grounds to believe that the water has been contaminated, the following corrective measures must be taken:

• (a) the system must be disinfected, decontaminated, repaired or replaced, as the case may be, and flushed, so as to ensure the water is free from contamination before it is used for any purpose described in section 3;
• (b) the cause of the contamination must be investigated; and
• (c) the other conveyances in the operator's fleet must be assessed to determine whether their potable water systems have been contaminated.

Disinfection and flushing

14. (1) A potable water system must be disinfected and flushed

• (a) before it is placed in service or before it is returned to service after the conveyance has been taken out of operation for a season; and
• (b) before the system is returned to service after an activity, such as repair or cleaning, that might lead to contamination of the water in the system.

Part of system

(2) If an isolated part of a potable water system is returned to service after an activity, such as repair or cleaning, only that part of the system is required to be disinfected and flushed before it is returned to service.

Water sampling following certain activities

15. (1) Water samples must be taken from the sampling sites set out in column 2 of the schedule for the type of conveyance set out in column 1 after the activities referred to in paragraph 13(a) have been completed or a potable water system has been disinfected and flushed in accordance with paragraph 14(1)(a).

Analysis

(2) The samples must be analysed for the purpose of verifying that the water in the potable water system is free from contamination.

POTABLE WATER CONTAINERS

Requirement

16. (1) Potable water containers must be readily moveable by one person.

Prevention of contamination

(2) Measures must be taken to prevent the risk of contamination when a potable water container is loaded on board a conveyance, as well as when it is stored, when it is moved and when it is handled once it is on board the conveyance, and to ensure that the container is maintained in a sanitary condition.

DISPENSING WATER

Prevention of contamination

17. (1) Measures must be taken to prevent the risk of contamination of water when it is dispensed to passengers in drinking cups, such as by using single-use drinking cups.

Large container

(2) Measures must be taken to prevent the risk of contamination of water dispensed from a container that has a capacity of 5 L or more when the water is used in the preparation of food or provided to passengers, such as the use of a tap.

INSPECTION RESULTS

Communication

18. The Minister of Health must inform the operator of the results of an inspection and of an analysis of a water sample taken by an inspector for the purposes of these Regulations.

RECORDS

Routine sampling

19. (1) A record must be kept that identifies the conveyance and specifies the following information respecting each water sample taken under section 12:

• (a) the sampling site and the location of the tap;
• (b) the date and time when the sample is taken; and
• (c) the results of the analysis.

Retention period

(2) The record must be retained for a period of 12 months after the day on which the sample is taken.

Activities relating to contamination

20. (1) A record must be kept that identifies the conveyance and specifies the date and time when its potable water system is disinfected, decontaminated, flushed, repaired or replaced under paragraph 13(a) or section 14 or when any other routine disinfection and flushing are conducted in accordance with the schedule.

Sampling

(2) The record must also specify the following information respecting each water sample taken under section 15:

• (a) the sampling site and the location of the tap;
• (b) the date and time when the sample is taken;
• (c) the type of analysis conducted;
• (d) the type of parameter that is the object of the analysis; and
• (e) the results of the analysis.

Retention period

(3) Information that is in the record and is referred to in subsection (1) must be retained for a period of 12 months after the day on which the relevant activity is completed, and information that is in the record and is referred to in subsection (2) must be retained for a period of 12 months after the day on which the related sample is taken.

Corrective measures

21. (1) A record must be kept that identifies the conveyance and specifies the following information respecting any corrective measure taken in respect of the results of an inspection conducted for the purposes of these Regulations or an analysis of a water sample taken during such an inspection:

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

Retention period

(2) The record must be retained for a period of 12 months after the day on which the corrective measure is completed.

Investigation

22. (1) A record must be kept that identifies the conveyance and specifies the following information respecting the investigation and assessment required by paragraphs 13(b) and (c):

• (a) the steps taken in the course of the investigation and assessment;
• (b) the results obtained;
• (c) a description of any corrective measure taken; and
• (d) the date on which the corrective measure is completed.

Retention period

(2) The record must be retained for a period of 12 months after the day on which the corrective measure is completed or, if no corrective measure is taken, the day on which the results of the investigation and assessment are known.

Accessibility

23. The records that are required to be kept and retained under these Regulations must be readily accessible for examination by an inspector in the course of the enforcement of these Regulations.

REPEAL

24. The Potable Water Regulations for Common Carriers (see footnote 21) are repealed.

COMING INTO FORCE

Six months after publication

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

SCHEDULE
(Subsections 12(1), 15(1) and 20(1))

WATER SAMPLES FROM POTABLE WATER SYSTEMS ON BOARD CONVEYANCES

Item	Column 1 Conveyance	Column 2 Sampling Sites	Column 3 Sampling Frequency
1.	Aircraft	The following sites, as applicable: (a) a tap in the galley or bar and a tap in one lavatory facility; (b) if there is no tap in one of the locations referred to in paragraph (a), a tap in another location referred to in that paragraph and another tap in a different location on board; or (c) if there is only one tap on board, that tap.	Any of the following frequencies during a 12-month period: (a) from each site, once in each 3-month period during which the aircraft is operational, with a minimum of 45 days between the taking of samples from the same site; (b) from each site, once in each 6-month period during which the aircraft is operational, with a minimum of 90 days between the taking of samples from the same site, and with a disinfection and flushing of the potable water system conducted at least once in each 4-month period; or (c) from each site, once in each 12-month period during which the aircraft is operational, with a minimum of 180 days between the taking of samples from the same site, and with a disinfection and flushing of the potable water system conducted at least once in each 3-month period.
2.	Trains	The following sites in each rail car used in the transport of passengers, as applicable: (a) a tap in the galley or bar and a tap in one lavatory facility; (b) if there is no tap in one of the locations referred to in paragraph (a), a tap in another location referred to in that paragraph and another tap in a different location on board; or (c) if there is only one tap on board, that tap.	Any of the following frequencies: (a) from each site, once in each 12-month period, with a minimum of 180 days between the taking of samples from the same site; or (b) from each site, once in each 24-month period, with a minimum of 360 days between the taking of samples from the same site, and with a disinfection and flushing of the potable water system conducted at least once in each 3-month period.
3.	Vessels with sleeping accommodations for passengers and other vessels that load water while making way	The following four sites: (a) a tap at the forward end; (b) a tap at the aft end; (c) a tap at the farthest point from the potable water storage tanks (that tap is typically by the bridge, on the upper deck); and (d) a tap at the closest point to a potable water storage tank (that tap is typically on the lower deck).	From each site, once in each month during which the vessel is operational.
4.	Vessels without sleeping accommodations for passengers and other vessels that do not load water while making way	The following sites, as applicable: (a) a tap in the galley or bar and a tap in one lavatory facility; (b) if there is no tap in one of the locations referred to in paragraph (a), a tap in another location referred to in that paragraph and another tap in a different location on board; or (c) if there is only one tap on board, that tap.	Any of the following frequencies during a 12-month period: (a) from each site, once in each 3-month period during which the vessel is operational, with a minimum of 45 days between the taking of samples from the same site; (b) from each site, once in each 6-month period during which the vessel is operational, with a minimum of 90 days between the taking of samples from the same site, and with a disinfection and flushing of the potable water system conducted at least once in each 4-month period; or (c) from each site, once in each 12-month period during which the vessel is operational, with a minimum of 180 days between the taking of samples from the same site, and with a disinfection and flushing of the potable water system conducted at least once in each 3-month period.

[25-1-o]