Annual Report on the Application of the One-for-One Rule: 2014-15
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Introduction
Regulation is a form of law and an important tool for protecting and advancing the health, safety and environment of Canadians, and for creating the conditions for an innovative and prosperous economy. Federal regulators work in a complex, changing environment, characterized by fast-paced science and technological advancement, increasing trade flows, and integrated supply chains. They must respond to high stakeholder and citizen expectations for openness and meaningful engagement on regulatory proposals, expectations for clear accountability and transparency, and for approaches to enforcement that incorporate a service orientation.
In keeping with the Government of Canada’s commitment to enhanced openness and accountability for results, and as required by the Red Tape Reduction Act, this annual report summarizes the application of the one-for-one rule to regulatory changes published in the Canada Gazette, Part II, during the period April 1, 2014, to March 31, 2015.
The Red Tape Reduction Act
The Red Tape Reduction Act came into force in April 2015. The purpose of the Act is to control the growth of administrative burden on businesses from regulations through the application of the one-for-one rule. The one-for-one rule was first implemented through the Cabinet Directive on Regulatory Management in April 2012 and is now prescribed in section 5 of the Red Tape Reduction Act. The rule controls administrative burden in two ways:
- When a new or amended regulation increases the administrative burden on business, regulators are required to offset from their existing regulations an equal amount of administrative burden cost on business.
- It requires regulators to remove an existing regulation within 24 months of introducing a new regulation that imposes new administrative burden on business.
Administrative burden describes the effort required to demonstrate compliance with a federal regulation. Under the Red Tape Reduction Act, administrative burden is defined as “anything that is necessary to demonstrate compliance with a regulation, including the collecting, processing, reporting and retaining of information and the completing of forms.”
Regulators are required to calculate the direct costs of these activities when regulatory changes impose new administrative burden on business using the methodology prescribed in the Red Tape Reduction Regulations. This methodology is based on the Standard Cost Model, an internationally accepted way to estimate the administrative burden costs to business resulting from information and reporting obligations set out in a regulation.
Section 9 of the Red Tape Reduction Act requires the President of the Treasury Board to prepare and make public an annual report on the application of the one-for-one rule. The Red Tape Reduction Regulations, which became law in July 2015, state that the following must be included in the annual report:
- a summary of the increases and decreases in the cost of administrative burden that results from regulatory changes that are made in accordance with section 5 of the Act within the 12-month period ending on March 31 of the year in which the report is made public; and
- the number of regulations that are amended or repealed as a result of regulatory changes that are made in accordance with section 5 of the Act within that 12-month period.
Application of the one-for-one rule
a) Summary of increases and decreases in the cost of administrative burden
In 2014–15, annual net administrative burden to business was reduced by approximately $2.7 million: 11 regulations increased burden by over $500,000 annually; 60 per cent of this resulted from three new regulatory titles, with the balance from other regulatory changes (e.g., amendments). This new administrative burden was offset by 13 regulations that provided burden relief of over $3.2 million. A detailed list of regulatory changes increasing or decreasing administrative burden on business under the one-for-one rule, as published in the Canada Gazette, Part II, in 2014–15, can be found in Table 1 in the Appendix.
b) Number of regulations amended or repealed in accordance with section 5 of the Act
In 2014–15, 10 regulations were amended that relieved administrative burden on business. In addition, one Order was made that also relieved administrative burden. These amendments and the Order are as follows:
- Regulations Amending the Seeds Regulations (variety regulations) (SOR/2014-114)
- Regulations Amending Certain Canadian Food Inspections Agency Regulations (Miscellaneous Program) (SOR/2015-55)
- Regulations Amending the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations (SOR/2014-207)
- Regulations Amending the Meat Inspection Regulations, 1990 (SOR/2014-151)
- Regulations Amending the Canada Labour Standards Regulations (SOR/2014-305)
- Regulations Amending the Accounting for Imported Goods and Payment of Duties Regulations (SOR/2014-114)
- Regulations Amending the Schedule to the Defence Production Act (SOR/2014-126)
- Regulations Amending the Transportation of Dangerous Goods Regulations (Update of Standards) (SOR/2014-152)
- Regulations Amending the Transportation of Dangerous Goods Regulations (Part 4, Dangerous Goods Safety Marks) (SOR/2014-159)
- Regulations Amending the Transportation of Dangerous Goods Regulations (Lithium Metal Batteries, ERAPs and Update to Schedules) (SOR/2014-306)
- Order Declaring That the Reduction of Carbon Dioxide Emissions From Coal-Fired Generation of Electricity Regulations Do Not Apply in Nova Scotia (SOR/2014-265)
The following three regulations were repealed:
- the Federal Mobile PCB Treatment and Destruction Regulations (SOR/90-5)
- the Human Pathogens Importation Regulations (SOR/94-558)
- the Laurentian Pilotage Authority District No. 3 Regulations (SOR/87-58)
Also, five additional regulations were repealed and replaced by four new regulations:
- the Northwest Territories and Nunavut Mining Regulations were repealed and replaced by the Northwest Territories Mining Regulations (SOR/2014-68)
- the Ingredient Disclosure List and the Controlled Products Regulations were both repealed and replaced by the Hazardous Products Regulations (SOR/2015-17)
- the Regulations Respecting Applications for Permits for Disposal at Sea were repealed and replaced by the Disposal at Sea Permit Application Regulations (SOR/2014-177)
- the Railway Safety Management System Regulations were repealed and replaced by the Railway Safety Management System Regulations, 2015 (SOR/2015-26)
Further details on the above amendments and repeals are included in Tables 1 and 2 in the Appendix.
In addition, 30 regulations were exempted from the one-for-one rule, the vast majority of which were non-discretionary obligations (e.g., imposing or amending economic measures on Ukraine, Russia, and South Sudan). A list of these regulations exempted from the one-for-one rule and published in the Canada Gazette, Part II, during 2014–15 can be found in Table 3 in the Appendix.
Conclusion
Openness and transparency contribute to robust regulatory governance. This annual report provides an overview of results achieved in 2014–15 on the application of the one-for-one rule as set out in the Red Tape Reduction Act.
Appendix
Table 1: Final regulatory changes with administrative burden implications under the one-for-one rule published in the Canada Gazette, Part II, in 2014–15
- ↑ The Northwest Territories and Nunavut Mining Regulations were repealed, and two separate regulations (the Nunavut Mining Regulations and the Northwest Territories Mining Regulations) were introduced, which led to a net reduction in administrative burden of nearly $619,000.
- ↑ The Regulatory Impact Analysis Statement (RIAS) for this miscellaneous amendment reported that the one-for-one rule applies to the amendment to section 135.1 of the Health of Animals Regulations. This removes a reporting requirement for industry that if triggered would impose associated administrative costs. As this requirement has never been triggered, it has never been reported on or enforced. Any associated administrative costs for industry to report are multiplied by zero occurrences per year, and therefore the RIAS net cost/relief was reported as $0.
- ↑ This ministerial (non-GIC) regulation repealed the Regulations Respecting Applications for Permits for Disposal at Sea.
Table 2: New regulatory titles and repealed regulations in 2014–15
New regulatory titles with administrative burden
| Portfolio | Regulation | Net Impact on Regulatory Stock |
|---|---|---|
| Environment Canada | Products Containing Mercury Regulations | 1 |
| Health Canada | Human Pathogens and Toxins Regulations | 1 |
| Transport Canada | Railway Operating Certificate Regulations | 1 |
| Subtotal | 3 |
Repealed regulations
| Portfolio | Regulation | Net Impact on Regulatory Stock |
|---|---|---|
| Environment Canada | Federal Mobile PCB Treatment and Destruction Regulations (SOR/90‑5) | 1 |
| Health Canada | Human Pathogens Importation Regulations (SOR/94-558) | 1 |
| Transport Canada | Laurentian Pilotage Authority District No. 3 Regulations (SOR/87-58) | 1 |
| Subtotal | 3 |
New regulations that simultaneously repealed and replaced existing regulations[1]
| Portfolio | Regulation | Net Impact on Regulatory Stock |
|---|---|---|
| Aboriginal Affairs and Northern Development Canada | The Northwest Territories Mining Regulations[2] replace the Northwest Territories and Nunavut Mining Regulations (SOR/2007-273). | 0 |
| Environment Canada | The Disposal at Sea Permit Application Regulations replace the Regulations Respecting Applications for Permits for Disposal at Sea (SOR/2001-276). | 0 |
| Health Canada | The Hazardous Products Regulations replace the Controlled Products Regulations (SOR 88-66) and the Ingredient Disclosure List (SOR/88-64). | 1 |
| Transport Canada | The Railway Safety Management System Regulations, 2015 replace the Railway Safety Management System Regulations (SOR 2001-37). | 0 |
| Subtotal | 1 |
- ↑ There are some regulatory changes that result in the simultaneous introduction of new regulations and the elimination of one or more other regulatory titles (“repeal and replace”). When a new regulation repeals one title, there is no net change in the number of regulations. However, if the new regulation repeals more than one title, there is a net reduction. For instance, the Hazardous Products Regulations replaced two repealed regulations, resulting in a net reduction of one regulation.
- ↑ Repealed and replaced the Northwest Territories and Nunavut Mining Regulations (SOR/2007-273). The Nunavut Mining Regulations (which did not trigger the one-for-one rule, as it did not create new administrative burden) were introduced simultaneously, and together with the new Northwest Territories Mining Regulations led to a net reduction of administrative burden of nearly $619,000.
Table 3: Regulatory changes exempted from the one-for-one rule and published in the Canada Gazette, Part II, in 2014–15
| Portfolio | Regulation | Publication Date | Regulation Type | Exemption Type |
|---|---|---|---|---|
| Foreign Affairs, Trade and Development Canada | Special Economic Measures (Russia) Regulations | April 9, 2014 | New regulation | Emergency / crisis situation |
| Foreign Affairs, Trade and Development Canada | Special Economic Measures (Russia) Permit Authorization Order | April 9, 2014 | New regulation | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Special Economic Measures (Ukraine) Regulations | April 9, 2014 | New regulation | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Special Economic Measures (Ukraine) Permit Authorization Order | April 9, 2014 | New regulation | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | April 9, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Ukraine) Regulations | April 9, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | April 9, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Ukraine) Regulations | April 23, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | May 7, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | May 21, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | May 21, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Ukraine) Regulations | May 21, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Implementing the United Nations Resolutions on the Central African Republic | July 2, 2014 | New regulation | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | July 2, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Ukraine) Regulations | July 2, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Ukraine) Regulations | July 30, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Ukraine) Regulations | August 13, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | August 13, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | August 27, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Ukraine) Regulations | August 27, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | October 8, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Implementing the United Nations Resolution on Yemen | October 8, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Special Economic Measures (South Sudan) Regulations | November 5, 2014 | New regulation | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Special Economic Measures (South Sudan) Permit Authorization Order | November 5, 2014 | New regulation | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | December 31, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Ukraine) Regulations | December 31, 2014 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Russia) Regulations | March 11, 2015 | Regulatory amendment | Non-discretionary obligations |
| Foreign Affairs, Trade and Development Canada | Regulations Amending the Special Economic Measures (Ukraine) Regulations | March 11, 2015 | Regulatory amendment | Non-discretionary obligations |
| Public Safety Canada | Regulations Amending the Proof of Origin of Imported Goods Regulations | November 5, 2014 | Regulatory amendment | Tax or tax administration |
| Transport Canada | Grade Crossings Regulations | December 17, 2014 | New regulation | Emergency / crisis situation |
