Order Repealing Certain Regulations Made Under the Railway Safety Act: SOR/2025-277

Canada Gazette, Part II, Volume 159, Number 27

Registration
SOR/2025-277 December 12, 2025

RAILWAY SAFETY ACT

P.C. 2025-930 December 11, 2025

Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, makes the annexed Order Repealing Certain Regulations Made Under the Railway Safety Act under subsection 119(5)footnote a of the Railway Safety Actfootnote b.

Order Repealing Certain Regulations Made Under the Railway Safety Act

Repeals

1 The following regulations are repealed:

Coming into Force

2 This Order comes into force on the day on which it is published in the Canada Gazette, Part II.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

The following four regulations related to the bulk storage of dangerous goods, made under subsection 119(1.1) of the Railway Safety Act (RSA) [herein referred to as bulk storage regulations], are obsolete, based on outdated safety standards, and have no practical application:

The bulk storage of dangerous goods on federally regulated railway properties has significantly evolved since the bulk storage regulations were first enacted. Consultations with key industry stakeholders confirmed that they no longer store these dangerous goods due to risk concerns and increasing indemnification requirements.

As per the Cabinet Directive on Regulation, departments and agencies are expected to review, on a regular basis, the stock of regulations to verify their continued relevance, appropriateness, and effectiveness. When obsolete regulations are identified, departments are expected to remove them as soon as practicable. Transport Canada (TC) has identified these regulations as being obsolete and is proceeding with their repeal.

Background

The bulk storage regulations were originally enacted under the authority of the Railway Act, which governed rail operations in Canada prior to its repeal in 1985. Since that time, the Railway Safety Act (RSA) is the legislation that has addressed rail safety, security, and certain environmental impacts of rail operations in Canada. The Canadian rail industry has changed significantly since then.

The bulk storage regulations currently prescribe the requirements for the storage and handling of certain dangerous goods along federally regulated railway properties.

The bulk storage of dangerous goods on federally regulated railway properties has significantly evolved since the bulk storage regulations were first enacted. Dangerous goods include any product, substance or organism that can pose a significant risk to health, as an example, when not handled, transported, or stored properly. These goods tend to be corrosive, explosive, flammable, or oxidizing, and, as such, are restricted or regulated. Proper storage of such items is essential to avoid incidents. At the time the bulk storage regulations were introduced, Canadian-owned Class I railway companies (the Canadian National Railway Company and Canadian Pacific Kansas City Limited) were the only companies to own federally regulated railway properties. As communities and infrastructure expanded and modernized, the storage of dangerous goods along railway tracks also changed. For example, railway companies no longer store anhydrous ammonia, chlorine, ammonium nitrate or explosives in bulk. This shift is partly due to increased risk concerns (i.e. the risk of accidents, including fires, explosions or contamination) that have rendered such storage economically unviable. Companies have expressed that they no longer wish to assume the risk associated with this practice. Today, these operations occur at the end-user site and on the end user’s land without the need to store them in bulk along railway tracks. As a result, the four bulk storage regulations pertaining to these dangerous goods have become outdated and obsolete.

The remaining two bulk storage regulations (the Flammable Liquids Bulk Storage Regulations and the Liquified Petroleum Gases Bulk Storage Regulations) will continue to exist, as they are still applicable today. Railway companies still store flammable liquids, such as gasoline along railway tracks and liquified petroleum gases like propane, to support railway operations. For example, railway companies have propane storage tanks located throughout the rail network to heat track switches in colder temperatures to ensure that trains are on the correct tracks. Since the storage facilities still exist and are being used to support railway operations, it is important to keep these regulations.

Objective

The objective of the repeal is to ensure that the Railway Safety Act and associated regulations continue to be relevant, appropriate, and effective as per section 7 of the Cabinet Directive on Regulation. The repeal of four bulk storage regulations will eliminate obsolete regulations governing the storage of dangerous goods by railway companies that no longer align with current industry practices. Repealing these regulations ensures regulatory clarity and streamlines the framework without diminishing safety oversight while supporting the Government’s commitment to reduce the regulatory burden.

Description

The Order repeals the following bulk storage regulations and comes into force on the day on which the Order is published in the Canada Gazette, Part II:

Once the four regulations are repealed, railway companies will no longer be able to store these goods as prescribed in the regulations, and the specific provisions that prescribe how railway companies may store these goods will no longer apply. However, the repeal does not prohibit companies from storing or handling these goods in the future, provided they comply with other applicable requirements. As an example, there may still be provisions within the regulations of Environment and Climate Change Canada, Natural Resources Canada, or under provincial, territorial and municipal jurisdictions that apply, depending on the nature of the dangerous goods, the quantity, the means of containment and the purpose of storage.

Regulatory development

Consultation

TC officials met with Class I railway companies in October 2022 to confirm that there are no current or planned activities related to the four bulk storage regulations slated for repeal and to provide information on the next steps of the repeal process.

In spring 2023, TC met with the dangerous goods industry through its two engagement committees: the National Compliance Working Group (which includes provincial-territorial stakeholders), and the Transportation of Dangerous Goods General Policy Advisory Council. Stakeholders were receptive and had no comments or concerns regarding the plan to repeal the four bulk storage regulations. They have indicated that they have no intention of availing themselves of the bulk storage options afforded by these regulations in the foreseeable future.

TC provided an update to its provincial and territorial rail safety counterparts through the Federal-Provincial-Territorial Working Group on Rail Safety in September 2023. There were no comments or concerns raised at the meeting.

In December 2023, TC informed Crown-Indigenous Relations and Northern Affairs (CIRNAC) of its intent to repeal the four bulk storage regulations, which are referenced in two regulations administered by the Minister of Crown-Indigenous Relations: the Preliminary Screening Requirement Regulations and the Assessable Activities, Exceptions and Executive Committee Projects Regulations. CIRNAC officials were supportive and raised no concerns.

TC held a consultation period of 45 days with Indigenous communities, organizations and governments in October and November 2024 via TC’s bimonthly Bulletin to Indigenous Communities and Organizations. No comments were submitted to TC.

As the four regulations have no practical application, the repeals are not expected to result in any incremental impacts. Affected Class I railway companies have been explicitly consulted about repealing these regulations and they did not raise any concerns. As a result, the Order was exempted from prepublication in the Canada Gazette, Part I.

Indigenous engagement, consultation and modern treaty obligations

In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, an analysis was undertaken to determine whether the proposal is likely to give rise to modern treaty obligations. This assessment examined the geographic scope and subject matter of the proposal in relation to modern treaties in effect and no modern treaty obligations were identified. Furthermore, an assessment found no potential intersections between the Order and the United Nations Declaration on the Rights of Indigenous Peoples.

TC consulted with Indigenous communities, organizations and governments in October 2024 via TC’s bimonthly Bulletin to Indigenous Communities and Organizations. No comments were submitted.

Instrument choice

The regulations are deemed obsolete and, in accordance with the Cabinet Directive on Regulation, departments and agencies must, among other things, undertake a regular review to remove obsolete or spent regulations from the stock as soon as practical. To repeal the obsolete regulations, an Order is the only option, as per the Railway Safety Act.

The other option considered was to take no action. However, this option would have meant that TC would not be exercising its due diligence to maintain appropriate and effective regulatory stock. Maintaining these outdated storage regulations risks misalignment with current industry practices and could erode stakeholder confidence in the relevance and effectiveness of TC’s regulatory framework.

Regulatory analysis

The Order will repeal four bulk storage regulations that have been deemed outdated and obsolete. These provisions are administrative in nature and do not impose obligations on stakeholders. The repeal is not expected to result in any operational changes for stakeholders and is not expected to impose costs on affected stakeholders.

Analytical framework

Benefits and costs for the Order have been assessed in accordance with the Policy on Cost-Benefit Analysis of the Treasury Board of Canada Secretariat (TBS). Only the direct costs and benefits for stakeholders are considered in the cost-benefit analysis.

Benefits and costs associated with the Order are assessed based on comparing the baseline scenario against the regulatory scenario. The baseline scenario depicts what is likely to happen in the future if the Government of Canada does not repeal the four affected regulations. The regulatory scenario provides information on the expected outcomes of repealing the four affected regulations. Details are further discussed below.

Although other regulations (from provincial and territorial governments and CIRNAC) may be updated in the future to ensure alignment with the repeals, any costs related to amending such regulations are excluded from this analysis, as they are not compliance-related and are considered indirect costs.

Stakeholders

Historically, two Class I railway companies, the Canadian National Railway Company and Canadian Pacific Kansas City Limited, stored the four identified dangerous goods on federally regulated railway properties. Since these goods are no longer stored on federally regulated railway properties and railway companies have no intention of doing so in the future, the repeal of the four regulations will have no impact on railway companies.

Baseline and regulatory scenarios

Under the baseline scenario, the four affected bulk storage regulations will continue to prescribe outdated requirements for the storage and handling of these dangerous goods on federally regulated railway properties. However, in practice, railway companies no longer store anhydrous ammonia, chlorine, ammonium nitrate or explosives along railway tracks, nor do they plan future activities that involve storing these dangerous goods in this manner. Even if they did decide to store them, the repeal of the Railway Act makes these regulations non-enforceable and any associated risks would need to be handled directly under authorities provided by the Railway Safety Act, as would be the case under the regulatory scenario. Keeping these four outdated bulk storage regulations would indicate that TC is not exercising due diligence in maintaining an appropriate and effective regulatory framework.

Under the regulatory scenario, the four bulk storage regulations mentioned above will be repealed in recognition of the fact that affected railway companies no longer store, nor plan to store such dangerous goods in bulk along railway tracks and that they are non-enforceable. The repeal of the four regulations is administrative in nature and will allow TC to maintain a regulatory stock that is relevant, appropriate, and effective.

Benefits and costs

Costs

It is expected that the Order will not generate costs to railway companies or TC, as, in practice, railway companies do not store anhydrous ammonia, chlorine, ammonium nitrate or explosives in bulk along railway tracks and do not plan to do so in the future. In either the baseline or the regulatory scenario, compliance and enforcement to ensure safe storage of these materials on federally regulated railway properties would be covered under the Railway Safety Act.

Benefits

Repealing these outdated storage regulations would ensure that the Railway Safety Act and associated regulations continue to be relevant, appropriate, and effective.

Small business lens

Analysis under the small business lens concluded that the Order will not impact Canadian small businesses.

One-for-one rule

The Order will not result in any incremental change in the administrative burden on business. However, the one-for-one rule applies, since the Order repeals the following four existing regulatory titles:

As a result, a net of four titles out is counted under the rule.

Regulatory cooperation and alignment

There will be no impact on regulatory cooperation and international alignment. The Order is repealing regulations that are no longer being used and, therefore, is making changes of an administrative nature.

Some provincial and territorial regulations refer to the regulations that will be repealed. However, the mentions are solely cross-references, and, as such, in the spirit of good regulatory governance, the provinces and territories may wish to amend their regulations to remove the references at their own time. TC informed and updated its provincial and territorial counterparts of the intent to repeal the four regulations in 2023 and again in 2024. No concerns were raised.

International obligations

This Order will have no effect on Canada’s international obligations.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, and the Transport Canada Policy Statement on Strategic Environmental Assessment (2013), the strategic environmental and economic assessment process was followed for this Order and a Sustainable Transportation Assessment was completed. No environmental impacts are anticipated as a result of this Order, as the changes are administrative.

Gender-based analysis plus

The Order is not expected to have any differential impact based on identity factors, such as gender, race, ethnicity, sexuality, religion, or age. The repeal is administrative in nature and is being implemented because the four bulk storage regulations no longer have any practical application. The repeal is expected to have a positive impact for the rail industry because it will eliminate unnecessary regulations from the regulatory stock affecting the industry.

Implementation, compliance and enforcement, and service standards

The Order will come into force upon publication in the Canada Gazette, Part II.

Contact

Lisa Tellier
Manager
Regulatory Development Division
Policy and Regulatory Services
Transportation of Dangerous Goods Program Hub
Department of Transport
L’Esplanade Laurier
300 Laurier Avenue West
Ottawa, Ontario
K1A 1J2
Email: TC.TDGRegulatoryProposal-TMDPropositionReglementaire.TC@tc.gc.ca