Annual Report to Parliament for the 2017 to 2018 Fiscal Year: Federal Regulatory Management Initiatives


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December 2018

This is the second annual report to Parliament on federal regulatory management initiatives. This report is part of regular monitoring of certain aspects of Canada’s regulatory system.

This year’s report has four main sections:

  • section 1 describes the benefits and costs of regulations that were made by the Governor in Council (GIC) and that have a significant[1] impact
  • section 2 reports on the implementation of the one-for-one rule, fulfilling the Red Tape Reduction Act reporting requirement
  • section 3 sets out the Administrative Burden Baseline for 2017 and for previous years, providing a count of administrative requirements in federal regulations
  • section 4 describes the new Cabinet Directive on Regulation, which replaced the Cabinet Directive on Regulatory Management on September 1, 2018 , as well as associated improvements to the federal regulatory process  

The regulations reported on in this document were published in the Canada Gazette, Part II, between April 1, 2017, and March 31, 2018. As such, they fall under the former Cabinet Directive on Regulatory Management.

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Annual Report to Parliament for the 2016 to 2017 Fiscal Year: Benefits and Costs of Significant Federal Regulations, and the Implementation of the One-for-One Rule (PDF, 590 KB)

Message from the President

 
The Honourable Scott Brison, President of the Treasury Board and Minister of Digital Government

This second annual report to Parliament on federal regulatory management initiatives marks an important milestone in the government’s march to regulatory modernization.

The Government of Canada is committed to openness and transparency, including informing Parliament and Canadians about the management of federal regulations. This report provides important information about the costs and benefits of significant regulations, as well as the implementation of the one-for-one rule, just one key element in a suite of continuing and new measures to limit the administrative burden on businesses that deal with the federal government. It also includes information about the Administrative Burden Baseline count, a measure of the number of administrative requirements in federal regulations.

While Canada’s regulatory system is internationally recognized as world-class by bodies such as the Organisation for Economic Co-operation and Development, we must continue to keep pace with emerging economic opportunities and evolving challenges. For this reason, we are taking steps to make the system more agile, transparent and responsive, which will have a positive impact on business growth and the lives of all Canadians.

On September 1, 2018, the government’s Cabinet Directive on Regulation came into effect. It provides a strong foundation for the ongoing modernization of our regulatory system. The directive emphasizes that regulations should support and promote entrepreneurship, innovation that benefits people and businesses, and economic growth that includes as many Canadians as possible. The directive is also supported by a series of new policies, including the first-ever Government of Canada Policy on Cost-Benefit Analysis.

In addition, the 2018 Fall Economic Statement announced a number of measures aimed at revitalizing our regulatory system to improve business innovation and economic growth, while safeguarding our citizens and natural resources.

I invite you to read this report to see how the government is continuing its work to create effective, agile and efficient regulations that protect our environment and the health, safety and security of Canadians.

Original signed by:


The Honourable Scott Brison

President of the Treasury Board and Minister of Digital Government

Types of federal regulations

Regulations are a type of law intended to change behaviours and achieve public policy objectives. They have legal binding effect and support a broad range of objectives, such as:

  • health and safety
  • security
  • culture and heritage
  • a strong and equitable economy
  • the environment

Regulations are made by every order of government in Canada in accordance with responsibilities set out in the Constitution Act. Federal regulations deal with areas of federal jurisdiction, such as patent rules, vehicle emissions standards and drug licensing.

There are three principal categories of federal regulations. Each is based on where the authority to make regulations lies:

  1. GIC regulations are reviewed by a group of ministers who recommend approval to the Governor General. This role is performed by the Treasury Board.
  2. Ministerial regulations are made by a minister who is given the authority to do so by law.
    • Example: The Canadian Environmental Protection Act, 1999 gives the Minister of the Environment the authority to amend the Domestic Substances List to include substances introduced to the Canadian marketplace that have been risk-assessed and for which control measures have been taken.
  3. Regulations made by an agency, tribunal or other entity that has been given the authority by law to do so in a given area, and that do not require the approval of the GIC or a minister.
    • Example: The Farm Products Agencies Act authorizes Turkey Farmers of Canada to make regulations that set production quotas and levies on the Canadian turkey sector as part of the supply management system.

Section 1: benefits and costs of regulations

What is cost-benefit analysis?

In the regulatory context, cost-benefit analysis (CBA) is a structured approach to identifying and considering the economic, environmental and social effects of a regulatory proposal. CBA identifies and measures the positive and negative impacts of a regulatory proposal and any feasible alternative options so that decision-makers can determine the best course of action. CBA monetizes, quantifies and qualitatively analyzes the direct and indirect costs and benefits of the regulatory proposal to determine the proposal’s overall benefit.

Since 1986, the Government of Canada has required that a CBA be done for most regulatory proposals in order to assess their potential impact on areas such as:

  • the environment
  • workers
  • businesses
  • consumers
  • other sectors of society

The results of the CBA are summarized in a Regulatory Impact Analysis Statement (RIAS), which is published with proposed regulations in the Canada Gazette, Part I. The RIAS enables the public to:

  • review the analysis
  • provide comments to regulators before final consideration by the GIC and subsequent publication of approved final regulations in the Canada Gazette, Part II

Analytical requirements

Regulatory proposals are categorized according to their expected level of impact. The level of impact is determined by the anticipated cost of the proposal.

Table 1: the three levels of impact

Impact level Present value of costs (over 10 years) Annual cost
Low-impact Less than $10 million Less than $1 million
Medium-impact $10 million to $100 million $1 million to $10 million
High-impact More than $100 million More than $10 million

The level of impact determines the degree of analysis and assessment required for a given regulatory proposal. This proportionate approach is consistent with regulatory best practices set out by the Organisation for Economic Co-operation and Development (OECD).

Table 2: analysis required by level of impact

Impact level Description of costs Description of benefits
Low-impact Qualitative or quantitative Qualitative
Medium-impact Quantified and monetized Quantified and monetized

(if data are readily available)

High-impact Quantified and monetized Quantified and monetized

This report covers GIC regulations only and is limited to regulations that are considered significant, that is, those that have a medium impact or a high impact. Figures are taken from the RIAS for regulations published in the Canada Gazette, Part II, in the 2017 to 2018 fiscal year.[2] To remove the effect of inflation, figures are expressed in 2012 dollars and, as such, will vary from those published in the RIASs. This approach permits meaningful and consistent comparison of figures, regardless of the year in which regulatory impacts were originally measured.

Overview of benefits and costs of regulations

In the 2017 to 2018 fiscal year, a total of 292 regulations were published in the Canada Gazette, Part II, compared with 326 in the 2016 to 2017 fiscal year. Of these 292 regulations:

  • 184 were GIC regulations (63.0% of all regulations)
  • 108 were non-GIC regulations (37.0% of all regulations)

Of the 184 GIC regulations (compared with 189 in the previous fiscal year):

  • 166 were low-impact (90.2% of GIC regulations and 56.8% of all regulations)
  • 18 were significant (9.8% of GIC regulations and 6.2% of all regulations
 
Figure 1: overview of regulations approved and published in the 2017 to 2018 fiscal year

Figure 1 provides an overview of the categories of regulations approved and published in the 2017 to 2018 fiscal year.

During this period, 108 non-Governor in Council regulations were published, and 184 Governor in Council regulations were published.

Of the 184 Governor in Council regulations, 166 were low-impact regulations, and 18 were medium- or high-impact regulations, also known as significant regulations.

Of the 18 significant regulations, 15 had a cost-benefit analysis of monetized costs and benefits, two had an analysis of monetized costs only, and one had quantified costs and benefits.

Qualitative benefits and costs

The most basic element of any analysis of costs and benefits is a text description of the expected impacts associated with the regulatory proposal. This description is referred to as qualitative analysis and is used to:

  • provide decision-makers with an evidence-based understanding of the anticipated impacts of the regulation
  • provide context for further analysis that is expressed in numerical or monetary terms

Qualitative analysis should be part of every CBA. Regulators are required to describe the expected impacts of the proposal in qualitative terms, including for low-impact proposals, as this qualitative information supports the basis for decision-making.

The following are examples of qualitative impacts identified in significant regulations in the 2017 to 2018 fiscal year:

  • “The emission reductions realized…will lead to improvements in air quality and in associated health benefits to Canadians.”
  • “Bilateral relations with key trading partners (Brazil and the European Union) will be improved as visa screening shifts towards screening tailored to individual risk.”
  • “Continuance of the Government’s commitment and leadership to help support the well-being of veterans and their families.”

Quantitative benefits and costs

Quantitative benefits and costs are those that are described as a measurement. Examples of quantitative information are:

  • the number of recipients of a benefit
  • the amount of pollution reduced
  • the amount of time saved

As is the case with qualitative information, quantitative benefits and costs can be used in two ways:

  • on their own, they illustrate the expected magnitude of a proposal by providing measurable figures to decision-makers
  • they can be used as a factor in developing cost estimates

Quantitative analysis is an element of all significant proposals. It provides key metrics on the frequency or number of instances of an activity, and is essential for the development of benefit and cost estimates. It can also be used on its own alongside qualitative information to illustrate the overall impact of a proposal in non-monetary terms. Although quantitative analysis is not required for low-impact proposals, it is often included alongside qualitative information to provide information that is useful to decision-makers.

The following are examples of quantified benefits and costs identified in significant regulations in the 2017 to 2018 fiscal year:

Monetized benefits and costs

Monetized benefits and costs are those that are expressed in a currency amount, such as dollars, using an approach that considers both the value of an impact and when it occurs.[3]

An analysis of monetized costs and benefits is required for all high-impact regulatory proposals. Medium-impact proposals must always include monetized costs, although benefits may be expressed quantitatively or qualitatively when data are not readily available. Most regulatory proposals that are medium- and high-impact typically include both monetized benefits and costs as part of the analysis.

In order for costs and benefits to be considered monetized, the dollar values used in a CBA are adjusted so that values and prices that occur at different times are equal:

  • to their exchange value (inflation adjustment)
  • when they occur (discounting)

Of the 18 significant regulations finalized in the 2017 to 2018 year, 17 had monetized impacts, representing 9.2% of GIC regulations and 5.8% of all regulations. Of these:

  • 15 had monetized benefits and costs
  • 2 had monetized costs only
  • 1 had quantified costs and benefits
 
Figure 2: net benefits and costs, 2017 to 2018 fiscal year


Figure 2 depicts the net benefit of significant regulations published during the 2017 to 2018 fiscal year.

The total cost associated with significant regulations was $4.4 billion.

The total benefit associated with significant regulations was $8.5 billion.

The difference between the total cost and total benefit is a net benefit of $4.1 billion.

Of the 15 regulations that had monetized estimates of both benefits and costs (expressed as total present value):[4]

  • total costs were $4,429,808,584
  • total benefits were $8,533,837,575
  • net benefits were $4,104,028,991

The following are examples of monetized benefits and costs identified in regulations in the 2017 to 2018 fiscal year:

  • The Regulations Amending the Ozone-Depleting Substances and Halocarbon Alternatives Regulations aim to avert future hydrofluorocarbon (HFC) releases to the environment by reducing:
    • the supply of HFCs that enter into Canada
    • the demand for HFCs in manufactured products Such reductions will:
    • decrease Canada’s greenhouse gas (GHG) emissions
    • help limit increases in global average temperatures
    • contribute to Canada’s international obligations to combat climate change Additionally, the amendments enabled Canada to ratify and implement the Kigali Amendment to the Montreal Protocol. The cumulative net benefit associated with the measures in this regulation is estimated at $3.725 billion (net present value) from 2018 to 2040.
  • The Regulations Amending the Immigration and Refugee Protection Regulations expand electronic travel authorization eligibility to travellers from Brazil, Bulgaria and Romania who have held a Canadian temporary resident visa at any time during the last 10 years, or who, at the time of application, hold a valid non-immigrant visa from the US. The amendments also enable a new immigration information-sharing connection with the US to confirm the validity of a visa issued by the other country. The cumulative net benefit associated with the measures in this regulation is estimated at $115.3 million from 2017 to 2026.
  • The Regulations Amending the Off-Road Small Spark-Ignition Engine Emission Regulations and Making a Consequential Amendment to Another Regulation will reduce smog caused by air pollutant emissions from small spark-ignition (SSI) engines, which has a significant adverse impact on the health and environment of Canadians and, as a result, on the Canadian economy. In addition to providing important health and environmental benefits, the amendments aim to:
    • restore common Canada-US standards for air pollutant emissions from SSI engines
    • contribute to minimizing the administrative burden costs incurred by companies importing these engines into Canada The estimated net benefit of the changes is $107.6 million (net present value) from 2019 to 2032.

The purpose of CBA is to demonstrate that the expected benefits of a proposal are greater than the expected costs. This determination, however, is not based entirely on monetized benefits and costs. CBAs frequently include quantitative and qualitative analysis in addition to monetized analysis, and the overall analysis must consider this broader range of evidence. In the 2017 to 2018 fiscal year:

  • three regulatory proposals had monetized costs that were equal to monetized benefits, which is usually associated with a direct transfer from one party to another
  • three regulatory proposals had monetized costs that were greater than monetized benefits

For detailed benefits and costs by regulation, see Appendix A.

Section 2: implementation of the one-for-one rule

The one-for-one rule

In order to comply with the annual reporting requirements of the Red Tape Reduction Act, this report also provides an update on the implementation of the one-for-one rule.

The one-for-one rule, instituted in the 2012 to 2013 fiscal year, seeks to control the growth of administrative burden on business that arises from regulations. When a new or amended regulation increases the administrative burden on business, the rule requires that the cost of this burden be offset via other regulatory changes. Administrative burden includes:

  • planning, collecting, processing and reporting of information
  • completing forms
  • retaining data required by the federal government to comply with a regulation

The rule also requires that an existing regulation be repealed each time a new regulation imposes new administrative burden on business.

The rule applies to all regulatory changes that impose new administrative burden costs on business. There are three categories of exemptions established under the Red Tape Reduction Act:

  1. regulations related to tax or tax administration
  2. regulations where there is no discretion regarding what is to be included in the regulation (for example, treaty obligations or the implementation of a court decision)
  3. regulations made in response to an emergency or other unique circumstance where compliance with the rule would compromise the Canadian economy, public health or safety

Regulators are required to monetize and report on:

  • the change in administrative burden
  • feedback from stakeholders and Canadians on regulators’ estimates of administrative burden costs or savings to business
  • the number of regulations created or removed

As with CBA, the dollar values used in estimates of administrative burden are adjusted so that values and prices that occur at different times are equal in their exchange value (inflation adjustment) and when they occur (discounting). In this report, all figures related to the one-for-one rule are expressed in 2012 dollars to permit meaningful and consistent comparison of regulations, regardless of the fiscal year in which they were introduced.

In 2015, the Red Tape Reduction Act enshrined the existing policy requirement for the one-for-one rule in law. Section 9 of the Red Tape Reduction Act requires that the President of the Treasury Board prepare and make public an annual report on the application of the rule.

The Red Tape Reduction Regulations 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
  • 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

Key findings on the implementation of the one-for-one rule

The main findings on changes in administrative regulatory burden and the overall number of regulations for the 2017 to 2018 fiscal year are as follows:

  • administrative burden reductions of $71,395 per year were achieved in the 2017 to 2018 fiscal year, resulting in approximately $30.3 million reduced since the 2012 to 2013 fiscal year
  • 85 regulatory titles (net) were taken off the books, with a total net reduction of 131 titles since the 2012 to 2013 fiscal year

A detailed report on regulations that had implications under the one-for-one rule is in Appendix B.

The regulations that removed the most regulatory burden in the 2017 to 2018 fiscal year were the Regulations Amending the Off-Road Small Spark-Ignition Engine Emission Regulations and Making a Consequential Amendment to Another Regulation. These regulations reduced administrative burden on businesses by $169,541 per year by:

  • shifting from per-shipment to annual submission of importation declarations for companies importing fewer than 500 SSI engines into Canada per year
  • eliminating the requirement altogether for companies that import fewer than 50 SSI engines per year

The Treasury Board monitors regulators’ compliance with the requirement to offset administrative burden and titles imposed on business through regulatory changes:

  • System-wide, the federal government remains in compliance with the requirement in the Red Tape Reduction Act to offset administrative burden and titles within 24 months.
  • The Treasury Board of Canada Secretariat also tracks offsetting requirements by portfolio, and the Fisheries and Oceans portfolio currently has an outstanding balance of $258,490, related primarily to the Aquaculture Activities Regulations, which were introduced June 28, 2015. Officials from the Secretariat and Fisheries and Oceans Canada continue to work together to identify offsets that will balance the account.
 
Figure 3: overview of the findings on the one-for-one rule for the 2017 to 2018 fiscal year


Figure 3 provides statistics on the implementation of the one-for-one rule for significant regulations published in the 2017 to 2018 fiscal year.

There was one new regulatory title added to the regulatory stock and 86 regulatory titles repealed, for a net of 85 fewer regulations in the regulatory stock.

There were 10 instances where regulations were exempted from the one-for-one rule, including seven emergency or crisis situations, zero exemptions for tax and tax administration, and three non-discretionary obligations.

In total, 11 regulations increased administrative burden by $314,485, and 8 regulations decreased administrative burden by $385,880, for a net reduction of $71,395 in administrative burden costs.

Section 3: update on the Administrative Burden Baseline

The Administrative Burden Baseline

The Administrative Burden Baseline (ABB) provides Canadians with a count of the total number of administrative requirements in federal regulations (GIC and non-GIC) and associated forms.

The ABB was first publicly reported on in September 2014, providing a baseline count of administrative requirements by regulator. Since then, regulators continue to:

  • re-examine the count of their administrative requirements occurring from July 1 to June 30 each year
  • publicly post updates to their ABB count by September 30 each year

Key findings on the Administrative Burden Baseline

The baseline provides Canadians with information on 38 regulators.

As of June 30, 2017:

  • the total number of administrative requirements was 136,121, a reduction of 458 from the 2016 count of 136,579
  • there were 580 regulations identified by regulators as having administrative requirements, a reduction of 19 from the 2016 figure of 599
  • the average number of administrative requirements per regulation was 235, up from the 2016 average of 228

The top three changes in the ABB in 2017 were:

  1. There were 344 fewer net administrative requirements for Health Canada, related mainly to the replacement of the Marihuana for Medical Purposes Regulations (SOR/2013-199) with the Access to Cannabis for Medical Purposes Regulations (SOR/2016-230).
  2. A net increase of 167 administrative requirements for the Canadian Food Inspection Agency related mainly to changes to the Health of Animals Regulations (Import Reference Document).
  3. A net increase of 153 administrative requirements for Transport Canada associated with amendments to the following cumulatively added 279 administrative requirements:
    • Regulations Amending the Canadian Aviation Regulations (Aerodrome Work Consultations)
    • Locomotive Emissions Regulations
    • Marine Liability and Information Return Regulations
    • Prevention and Control of Fires on Line Works Regulations
    • Vessel Fire Safety Regulations However, the Order Repealing Certain Regulations Made Under the Railway Safety Act removed 126 administrative requirements.

A detailed summary of the ABB count for 2017 and for previous years is in Appendix B.

Section 4: looking forward: the Cabinet Directive on Regulation

Overview

On September 1, 2018, the Cabinet Directive on Regulation came into effect, replacing the Cabinet Directive on Regulatory Management as the policy for the regulation-making process.

The new directive updates Canada’s regulatory policy and is based on three broad concepts:

  1. emphasis on the regulatory life-cycle approach
  2. reinforcing good regulatory practices in the regulatory development process (consultation, transparency and CBA)
  3. alignment of the directive with government priorities such as regulatory cooperation, gender-based analysis, environmental impact assessment and Indigenous-Crown consultation, as well as requiring periodic reviews of the stock of regulations

Because this report covers the period of April 1, 2017, to March 31, 2018, it covers regulations that were developed and finalized under the former Cabinet Directive on Regulatory Management.

Policies supporting the new directive

The Cabinet Directive on Regulation is supported by a new suite of policies that regulators must follow as they develop proposed regulations. These policies include the following:

  • Policy on Regulatory Development: The Policy on Regulatory Development outlines the requirements and process for regulators when developing and bringing forward a draft regulation to the GIC:
    • the policy maintains consultation and engagement requirements throughout the regulatory development process
    • the policy also sets out renewed Regulatory Impact Analysis requirements for draft regulations, including adding regulatory cooperation, gender-based analysis plus and environmental impact lenses
  • Policy on Cost-Benefit Analysis: The Policy on Cost-Benefit Analysis represents the first time that CBA requirements for Canadian regulations are enshrined in policy. The policy outlines overarching mandatory requirements for analyzing the benefits and costs of proposed regulations:
    • it requires both robust analysis and public transparency, including:
      • reporting stakeholder consultations on CBA in the RIAS
      • making the CBA available publicly
    • regulators are now required to monetize both benefits and costs of all significant regulations (high- and medium-impact), which previously had been mandatory for high-impact regulations only
  • Policy on Limiting Regulatory Burden on Business: The Policy on Limiting Regulatory Burden sets out the requirements for the one-for-one rule and the small business lens:
    • the one-for-one rule is established by the Red Tape Reduction Act and the Red Tape Reduction Regulations, and the policy sets out the operational details related to the rule’s application
    • the small business lens will now apply to all regulatory proposals, thereby contributing to a more systematic consideration of small business impacts in federal regulations
  • Policy on Regulatory Transparency and Accountability: The Policy on Regulatory Transparency and Accountability modernizes requirements for government-wide initiatives that contribute to the openness of the regulatory system:
    • forward regulatory plans will be updated more frequently, with increased transparency on:
      • regulatory cooperation
      • expected impacts
      • upcoming regulatory reviews
      • access to supporting analysis in order to provide better predictability
    • service standards will be developed for high-volume regulatory transactions affecting any regulated party to:
      • promote timeliness of decision-making
      • provide clear information on expectations for interactions and service
    • policies on providing guidance on regulatory requirements (formerly “interpretation policies”) will continue to be published to explain how regulators help regulated parties understand their regulatory obligations

Appendix A: detailed report on cost-benefit analyses for the 2017-2018 fiscal year[5]

Table A1 indicates significant proposals that included both monetized benefits and monetized costs. These proposals may also include quantitative and/or qualitative CBA data to supplement the monetized CBA.

Table A1: final significant regulatory changes in the 2017 to 2018 fiscal year that had monetized benefits and costs

Department Regulation Benefits (total present value) Costs (total present value) Net present value
High-impact regulations
Agriculture and Agri-Food Canada Regulations Amending the Canada Grain Regulations (SOR/2017-125) $67,210,107 $67,210,107 $0
Employment and Social Development Canada Regulations Amending the Canada Student Financial Assistance Regulations (SOR/ 2017-126) $1,380,199,234 $1,292,537,931 $87,661,303
Employment and Social Development Canada Regulations Amending the Canada Student Financial Assistance Regulations (SOR/ 2018-31)

Note: CBA included in Regulations Amending the Apprentice Loans Regulations (SOR/2017-32)

$592,450,641 $577,776,940 $14,673,700
Environment and Climate Change Canada Regulations Amending the Ozone-Depleting Substances and Halocarbon Alternatives Regulations (SOR/2017-216)

Note: CBA included in Regulations Amending the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999) (SOR/2017-217)

$5,818,285,824 $2,092,680,460 $3,725,605,364
Transport Canada Locomotive Emissions Regulations (SOR/2017-121) $244,950,000 $162,310,000 $82,640,000
Medium-impact regulations
Environment and Climate Change Canada Regulations Amending the Off-Road Small Spark-Ignition Engine Emission Regulations and Making a Consequential Amendment to Another Regulation (SOR/2017-196) $194,204,160 $86,556,020 $107,648,140
Great Lakes Pilotage Authority Regulations Amending the Great Lakes Pilotage Tariff Regulations (SOR/2017-105) $22,479,594 $5,541,595 $16,937,998
Immigration, Refugees and Citizenship Canada Regulations Amending the Immigration and Refugee Protection Regulations (SOR/ 2017-53) $126,549,349 $11,284,061 $115,265,287
Immigration, Refugees and Citizenship Canada Regulations Amending the Immigration and Refugee Protection Regulations (SOR/2017-246) $7,740,307 $39,680,728 -$31,940,421
Immigration, Refugees and Citizenship Canada Regulations Amending the Immigration and Refugee Protection Regulations (SOR/2017-279) $26,391,648 $26,391,648 $0
Pacific Pilotage Authority Regulations Amending the Pacific Pilotage Tariff Regulations (SOR/2017-83) $15,953,665 $15,953,665 $0
Veterans Affairs Canada Regulations Amending the Canadian Forces Members and Veterans Re-establishment and Compensation Regulations (SOR/2017-42) $10,471,860 $11,132,248 -$660,388
Veterans Affairs Canada Regulations Amending the Canadian Forces Members and Veterans Re-establishment and Compensation Regulations (SOR/2017-161) $26,951,188 $40,753,180 -$13,801,992
Total $8,533,837,575 $4,429,808,583 $4,104,028,991

Table A2 indicates a medium-impact proposal that included monetized costs and quantified benefits. Monetized costs are required for all significant proposals; however, a medium-impact proposal may express benefits in quantitative or quantitative terms in situations where it is impractical to monetize those benefits.

Table A2: final regulatory changes in the 2017 to 2018 fiscal year that had monetized costs and quantified benefits

Department Regulation Costs (total present value)
Medium-impact regulations
Health Canada Regulations Amending the Food and Drug Regulations (Veterinary Drugs: Antimicrobial Resistance) (SOR/2017-76)

Note: CBA included in Regulations Amending the Establishment Licensing Fees (Veterinary Drugs) Regulations (SOR/2017-77)

$39,486,039
Total $39,486,039

Table A3 indicates a significant proposal for which quantified benefits and costs were provided.

Table A3: list of final significant regulatory changes in the 2017 to 2018 fiscal year that had quantified benefits and quantified costs

Department Regulation
Transport Canada Regulations Amending the Motor Vehicle Safety Regulations (Electronic Stability Control Systems for Heavy Vehicles) (SOR/2017-104)

Appendix B: detailed report on the one-for-one rule for the 2017 to 2018 fiscal year

Table B1: final regulatory changes in the 2017 to 2018 fiscal year that had administrative burden implications under the one-for-one rule and published in the Canada Gazette, Part II

Portfolio Regulation Publication date Net burden in Net burden out
Environment and Climate Change Canada Regulations Amending the Certain Regulations Made Under Sections 140, 209 and 286.1 of the Canadian Environmental Protection Act, 1999 (SOR/2017-110) June 14, 2017 $0 $68,265
Environment and Climate Change Canada Regulations Amending the Wild Animal and Plant Trade Regulations (SOR/2017-123) June 28, 2017 $10,429 $0
Environment and Climate Change Canada Regulations Amending the Off-Road Small Spark-Ignition Engine Emission Regulations and Making a Consequential Amendment to Another Regulation (SOR/2017-196) October 4, 2017 $0 $169,541
Environment and Climate Change Canada Regulations Amending the Ozone-Depleting Substances and Halocarbon Alternatives Regulations (SOR/2017-216) October 18, 2017 $0 $1,100
Environment and Climate Change Canada Order Amending Schedule 1 to the Species at Risk Act (SOR/2017-229) November 15, 2017 $6,490 $0
Environment and Climate Change Canada Order Amending Schedule 1 to the Species at Risk Act (SOR/2018-10) February 21, 2018 $58 $0
Environment and Climate Change Canada Regulations Amending Certain Regulations Made Under Section 89, Subsection 93(1) and Section 114 of the Canadian Environmental Protection Act, 1999 (SOR/2018-11) February 21, 2018 $0 $120,534
Fisheries and Oceans Canada Regulations Repealing the Fish Health Protection Regulations (SOR/2017-122) June 28, 2017 $0 $4,466
Health Canada Regulations Amending the Food and Drug Regulations (Part G: Methylphenidate) (SOR/2017-43) April 5, 2017 $4,080 $0
Health Canada Regulations Amending the Food and Drug Regulations (Veterinary Drugs: Antimicrobial Resistance) (SOR/2017-76) May 17, 2017 $253,011 $0
Health Canada Regulations Amending the Food and Drug Regulations (Importation of Drugs for an Urgent Public Health Need) (SOR/2017-133) July 12, 2017 $589 $0
Health Canada Order Amending Schedule III to the Controlled Drugs and Substances Act (Aminorex) (SOR/2017-249) December 13, 2017 $280 $0
Health Canada Regulations Amending the Fees in Respect of Drugs and Medical Devices Regulations (DIN Requirements for Drugs Listed in Schedule C to the Food and Drugs Act That Are in Dosage Form) (SOR/2017-260) December 13, 2017 $13,885 $0
Health Canada Regulations Amending the Narcotic Control Regulations and the New Classes of Practitioners Regulations (Diacetylmorphine (Heroin) and Methadone) (SOR/2018-37) March 21, 2018 $0 $21,920
Transport Canada Locomotive Emissions Regulations (SOR/2017-121) June 28, 2017 $21,637 $0
Transport Canada Regulations Amending the Transportation of Dangerous Goods Regulations (International Harmonization Update, 2016) (SOR/2017-137) July 2, 2017 $4,026 $0
Transport Canada Regulations Amending the Transportation of Dangerous Goods Regulations (Marine Provisions) (SOR/2017-253) December 13, 2017 $0 $54
Total $314,485 $385,880
Net administrative burden for the 2017 to 2018 fiscal year ($71,395)

Table 2: new regulatory titles and repealed regulations in the 2017 to 2018 fiscal year

Portfolio Regulation Net impact

on regulatory stock

New regulatory titles that have administrative burden
Transport Canada Locomotive Emissions Regulations (SOR/2017-121) 1
Subtotal 1
Repealed regulations
Agriculture and Agri-Food Canada Regulations Repealing the Certain Regulations Under the Farm Income Protection Act (Miscellaneous Program) (SOR/2017-84) repealed:
  • Wheat Stabilization 1977 Regulations (SOR/79-108)
  • Greenhouse Cucumber Stabilization Regulations, 1979 (SOR/80-587)
  • Yellow Seed Onion Stabilization 1978 Regulations (SOR/80-167)
  • Western Grain Stabilization Regulations (C.R.C., c. 1607)
  • Protection for the Income of Milk Producers Regulations (1996) (SOR/96-295)
  • Protection for the Income of Milk Producers Regulations (1995-2) (SOR/95-295)
  • Protection for the Income of Milk Producers Regulations (1995-1) (SOR/95-294)
  • Protection for the Income of Milk Producers Regulations (1994) (SOR/94-463)
  • Protection for the Income of Milk Producers Regulations (1993-2) (SOR/93-313)
  • Pear Stabilization Regulations, 1982 (SOR/83-606)
  • Yellow Seed Onions Stabilization Regulations, 1982-83 (SOR/84-23)
  • Potato Stabilization Regulations, 1977 (SOR/78-445)
  • Yellow Seed Onion Stabilization 1977 Regulations (SOR/79-276)
  • Winter Wheat Stabilization Regulations, 1982-83 (SOR/84-20)
  • Winter Pears Stabilization Regulations (SOR/78-136)
  • White Pea Bean Stabilization Regulations, 1985-86 (SOR/87-286)
  • White Pea Bean Stabilization Regulations, 1982-83 (SOR/84-26)
  • White Pea Bean Stabilization 1977 Regulations (SOR/78-609)
  • Sheep Stabilization 1981 Regulations (SOR/82-494)
  • Protection for the Income of Milk Producers Regulations (1993-1) (SOR/93-312)
  • Sweet Cherry Stabilization Regulations (SOR/78-151)
  • Sugar Beet Stabilization Regulations, 1977 (SOR/79-379)
  • British Columbia Peach Stabilization Regulations, 1983 (SOR/85-1034)
  • British Columbia Peach Stabilization Regulations, 1987 (SOR/88-591)
  • British Columbia Pear Stabilization Regulations, 1983-84 (SOR/85-1033)
  • British Columbia Pear Stabilization Regulations, 1987 (SOR/88-592)
  • Cabbage Stabilization Regulations, 1982-83 (SOR/84-27)
  • British Columbia Prunes Stabilization Regulations, 1987 (SOR/88-593)
  • Sugar Beet Stabilization Regulations, 1986 (SOR/87-278)
  • Sugar Beet Stabilization Regulations, 1985 (SOR/86-28)
  • British Columbia Prune-Plum Stabilization Regulations, 1983 (SOR/85-1035)
  • Sugar Beet Stabilization Regulations, 1981 (SOR/83-736)
  • Corn Stabilization Regulations, 1977-78 (SOR/79-476)
  • Sour Cherry Stabilization Regulations, 1987 (SOR/88-381)
  • Oats 1987 Period Stabilization Regulations (SOR/89-132)
  • Sour Cherry Stabilization Regulations, 1980 (SOR/82-17)
  • White Pea Bean Stabilization 1978 Regulations (SOR/80-76)
  • Rutabaga Stabilization Regulations, 1982-83 (SOR/84-25)
  • Prune Stabilization Regulations, 1982 (SOR/83-608)
  • Potato Stabilization Regulations, 1979 (SOR/81-295)
  • Potato Stabilization Regulations, 1978 (SOR/80-55)
  • Sugar Beet Stabilization Regulations, 1982 (SOR/84-665)
  • Industrial Milk and Cream 1989 Period Stabilization Regulations (SOR/89-265)
  • Industrial Milk and Cream Stabilization 1984-85 Regulations (SOR/84-394)
  • Industrial Milk and Cream Stabilization 1983-84 Regulations (SOR/83-581)
  • Industrial Milk and Cream Stabilization 1982-83 Regulations (SOR/82-996)
  • Cheese Stabilization Regulations, 1979-80 (SOR/80-82)
  • Corn 1987 Period Stabilization Regulations (SOR/89-131)
  • Greenhouse Cucumber Stabilization Regulations, 1981 (SOR/83-201)
  • Industrial Milk and Cream Stabilization 1985-86 Regulations (SOR/85-546)
  • Industrial Milk and Cream Stabilization 1986-87 Regulations (SOR/86-687)
  • Industrial Milk and Cream Stabilization 1981-82 Regulations (SOR/81-456)
  • Hog Stabilization Regulations, 1983-84 (SOR/84-707)
  • Hog Stabilization 1980-81 Regulations (SOR/81-609)
  • Hog Stabilization 1979-80 Regulations (SOR/80-515)
  • Greenhouse Tomato Stabilization Regulations, 1981 (SOR/83-188)
  • Greenhouse Cucumber Stabilization Regulations, 1982 (SOR/84-22)
  • Industrial Milk and Cream Stabilization 1980-81 Regulations (SOR/80-336)
  • Sour Cherry Stabilization Regulations, 1982 (SOR/83-214)
  • Cheese Stabilization Regulations, 1982-83 (SOR/82-995)
  • Industrial Milk and Cream Stabilization 1979-80 Regulations (SOR/79-477)
  • Industrial Milk and Cream Stabilization 1978-79 Regulations (SOR/78-509)
  • Cheese Stabilization Regulations, 1984-85 (SOR/84-383)
  • Cheese Stabilization Regulations, 1983-84 (SOR/83-674)
  • Cheese Stabilization Regulations, 1981-82 (SOR/81-745)
  • Coloured Bean Stabilization Regulations, 1982-83 (SOR/84-708)
  • Cheese Stabilization 1980-81 Regulations (SOR/81-375)
  • Carrot Stabilization Regulations, 1982-83 (SOR/84-24)
  • Canola Stabilization Regulations, 1986 (SOR/88-379)
  • Canola 1989 Period Stabilization Regulations (SOR/91-243)
  • Canola 1988 Period Stabilization Regulations (SOR/91-242)
  • Canola 1987 Period Stabilization Regulations (SOR/89-134)
  • Industrial Milk and Cream Stabilization 1988-89 Regulations (SOR/88-318)
  • Greenhouse Cucumber Stabilization Regulations, 1980 (SOR/82-16)
(74)
Agriculture and Agri-Food Canada Regulations Amending and Repealing Certain Canadian Food Inspection Agency Regulations (Miscellaneous Program) (SOR/2017-94) repealed:
  • Phytophthora Ramorum Compensation Regulations (SOR/2007-135)
(1)
Employment and Social Development Canada Regulations Amending the Canada Pension Plan Regulations and Repealing the Canada Pension Plan (Social Insurance Numbers) Regulations (SOR/2017-120) repealed:
  • Canada Pension Plan (Social Insurance Numbers) Regulations (C.R.C., c. 386)
(1)
Fisheries and Oceans Canada Regulations Repealing the Fish Health Protection Regulations (SOR/2017-122) repealed:
  • Fish Health Protection Regulations (C.R.C., c. 812)
(1)
Global Affairs Canada Regulations Repealing the United Nations Côte d'Ivoire Regulations (SOR/2017-54) repealed:
  • United Nations Côte d'Ivoire Regulations (SOR/2005-127)
(1)
Global Affairs Canada Regulations Repealing the Regulations Implementing the United Nations Resolutions on Liberia (SOR/2017-55) repealed:
  • Regulations Implementing the United Nations Resolutions on Liberia (SOR/2001-261)
(1)
Indigenous and Northern Affairs Canada Regulations Repealing the Certain Regulations Made Under the Arctic Waters Pollution Prevention Act (Miscellaneous Program) (SOR/2017-135) repealed:
  • Arctic Waters Experimental Pollution Regulations, 1978 (SOR/78-417)
  • Arctic Waters Experimental Pollution Regulations, 1979 (SOR/80-9)
  • Arctic Waters Experimental Pollution Regulations, 1982 (SOR/82-276)
  • Arctic Waters Experimental Pollution Regulations, 1982 (Dome Petroleum) (SOR/82-832)
(4)
Innovation, Science and Economic Development Canada Regulations Repealing the Canada Corporations Regulations (SOR/2017-283) repealed:
  • Canada Corporations Regulations (C.R.C., c. 424)
(1)
Public Services and Procurement Canada Regulations Amending and Repealing Certain Regulations Made Under the Public Service Employment Act (SOR/2017-252) repealed:
  • Regulations on the Employment with Statistics Canada for the Purpose of the 2006 Census (SOR/2004-257)
  • Statistics Canada 1996 Census of Population Terms Regulations (SOR/95-153b)
(2)
Subtotal (86)
New regulations that simultaneously repealed and replaced existing regulations
Transport Canada Arctic Shipping Safety and Pollution Prevention Regulations (SOR/2017-286) replaced the Arctic Shipping Pollution Prevention Regulations (C.R.C., c. 353) 0
Subtotal 0
Total net impact on regulatory stock for the 2017 to 2018 fiscal year 85

Table B3: regulatory changes exempted from the one-for-one rule and published in the Canada Gazette, Part II, in the 2017 to 2018 fiscal year

Portfolio Regulations Publication date Exemption

type

Environment and Climate Change Canada Regulations Amending Wild Animal and Plant Protection and Regulation of International and the Wild Animal and Plant Trade Regulations (SOR/2017-86) May 31, 2017 Emergency, unique or exceptional circumstances
Global Affairs Canada Regulations Amending the Special Economic Measures (Syria) Regulations (SOR/2017-62) May 3, 2017 Emergency, unique or exceptional circumstances
Global Affairs Canada Regulations Amending the Special Economic Measures (Syria) Regulations (SOR/2017-69) May 3, 2017 Emergency, unique or exceptional circumstances
Global Affairs Canada Special Economic Measures (Venezuela) Regulations (SOR/2017-204) October 4, 2017 Emergency, unique or exceptional circumstances
Global Affairs Canada Special Economic Measures (Venezuela) Permit Authorization Order (SOR/2017-205) October 4, 2017 Emergency, unique or exceptional circumstances
Global Affairs Canada Justice for Victims of Corrupt Foreign Officials Regulations (SOR/2017-233) November 15, 2017 Emergency, unique or exceptional circumstances
Global Affairs Canada Regulations Amending the Justice for Victims of Corrupt Foreign Officials Regulations (SOR/2018-25) March 7, 2018 Emergency, unique or exceptional circumstances
Health Canada Order Amending Schedules I and VI to the Controlled Drugs and Substances Act (U-47700) (SOR/2017-277) December 27, 2017 Non-discretionary obligations
Health Canada Regulations Amending the Food and Drug Regulations and the Precursor Control Regulations (U-47700) (SOR/2017-278) December 27, 2017 Non-discretionary obligations
Innovation, Science and Economic Development Canada Certificate of Supplementary Protection Regulations (SOR/2017-165) September 20, 2017 Non-discretionary obligations

Appendix C: administrative burden count

Table C1: Administrative burden count by regulator, June 30, 2014, to June 30, 2017

Department or agency 2014 2015 2016 2017
Number

of requirements

Number

of regulations

Number

of requirements

Number

of regulations

Number

of requirements

Number

of regulations

Number

of requirements

Number

of regulations

Indian and Northern Affairs Canada 288 12 288 11 288 11 288 12
Agriculture and Agri-Food Canada 134 4 134 4 133 4 133 4
Canada Border Services Agency 1,426 30 1,470 30 1,473 30 1,473 30
Canada Revenue Agency 1,776 30 1,776 30 1,807 31 1,807 30
Canadian Dairy Commission 4 2 4 2 4 2 4 2
Canadian Environmental Assessment Agency 89 1 89 1 89 1 89 1
Canadian Food Inspection Agency 10,989 34 11,021 13 11,880 23 12,047 21
Canadian Grain Commission 1,056 1 1,056 1 1,056 1 1,056 1
Canadian Heritage 797 3 798 3 802 3 802 3
Canadian Intellectual Property Office 569 6 568 6 568 6 568 6
Canadian Nuclear Safety Commission 8,169 10 8,169 10 8,169 10 8,169 10
Canadian Pari-Mutuel Agency 731 2 731 2 731 2 731 2
Canadian Transportation Agency 545 7 545 7 545 7 545 7
Immigration, Refugees and Citizenship Canada 14 1 73 1 59 1 59 1
Competition Bureau 444 3 444 3 444 3 444 3
Copyright Board Canada 16 1 16 1 17 1 17 1
Employment and Social Development Canada 2,791 7 3,256 7 3,104 7 3,100 6
Environment Canada and Climate Change Canada 9,985 53 10,099 53 11,500 53 11,515 52
Farm Products Council of Canada 47 3 47 3 47 3 47 3
Department of Finance Canada 1,818 42 1,891 42 1,919 42 1,928 42
Fisheries and Oceans Canada 5,350 30 5,350 31 5,446 31 5,367 30
Global Affairs Canada 2,809 55 2,820 58 2,784 57 2,774 56
Health Canada 15,649 95 15,945 32 15,627 31 15,283 31
Innovation, Science and Economic Development Canada 1,693 8 1,904 8 1,330 7 1,332 7
Labour Program 21,468 32 21,468 17 21,791 17 21,791 17
Measurement Canada 335 2 359 2 359 2 359 2
National Energy Board 1,298 14 1,298 14 4,012 13 4,012 13
Natural Resources Canada 4,507 28 4,507 28 4,507 28 4,432 28
Office of the Superintendent of Bankruptcy 799 4 799 3 799 3 799 3
Office of the Superintendent of Financial Institutionstable C1 notea 2,875 33 2,875 33 2,899 33 2,586 23
Parks Canada 773 25 773 25 773 25 773 25
Patented Medicine Prices Review Board 59 1 59 1 59 1 59 1
Public Health Agency of Canada 42 2 42 2 173 2 189 2
Public Safety Canada 229 6 229 6 229 6 229 6
Public Services and Procurement Canada 388 1 388 1 493 1 498 1
Statistics Canada 157 1 157 1 157 1 157 1
Transport Canada 29,695 94 30,258 94 30,458 98 30,611 95
Treasury Board of Canada Secretariat 46 1 48 2 48 2 48 2
Grand total 129,860 684 131,754 588 136,579 599 136,121 580
a. The 2017 figure for the Office of the Superintendent of Financial Institutions decreased by 313 requirements, related mainly to the removal from the count of 10 regulations that were considered to have been outside of the scope of the ABB.

Footnotes

  1. Throughout this report, the term "significant," when describing a proposal or regulation, denotes a GIC regulation that has a medium to high impact, that is, greater than $1 million in total national costs per year.
  2. The Government of Canada's fiscal year runs from April 1 to March 31.
  3. The Treasury Board of Canada Secretariat recommends that present values be estimated using a 7% discount rate. This rate is based on a weighted average of foreign and domestic sources of capital funding for projects in the private sector. In some cases, benefits and costs may occur in areas that do not crowd out or create private investment. In such cases, a lower discount rate, the social discount rate, of 3% may be appropriate.
  4. To remove the effect of inflation, figures are expressed in 2012 dollars and, as such, will vary from those published in the RIASs.
  5. Figures are taken from the RIAS in final federal regulations published in the Canada Gazette, Part II, in the 2017 to 2018 fiscal year. To remove the effect of inflation, figures are expressed in 2012 dollars and vary from those published in the RIAS, permitting meaningful and consistent comparison, regardless of the year in which outcomes were originally measured.