With the much discussed proposed rise in marine and tanker traffic to Northern British Columbia and other potentially sensitive areas of the country, Canada's oil spill preparedness and response regime has come under increasing scrutiny. In March of 2013, an independent Tanker Safety Panel was appointed by Transport Canada to review Canada's current oil spill preparedness and response regime. The Panel released its report on the first phase of its review in December of 2013. 

The first phase of the Panel's review relates to spills of persistent oil such as bunker fuel and cargoes of crude oil, fuel oil and heavy diesel in areas south of 60º latitude. In the second phase of its review, the Panel will examine national requirements for hazardous and noxious substances, including liquefied natural gas, as well as the state of oil spill preparedness and response in Canada's Arctic.

The first phase of the Panel's report contains 45 recommendations. These recommendations were derived from the Panel's key conclusions as to the state of Canada's current spill response capacity and its views as to what that capacity should look like in the future. Although the Panel made 45 recommendations, it reached five key conclusions which are briefly outlined below:

  1. Preparedness should be based on risks to be identified and mitigated on a regional level. The Panel cautioned against a one size fits all approach for the whole of Canada;
  2. Canada's current oil spill response capacity of 10,000 tonnes is inadequate. Capacity should be increased to achieve "worst case scenario capacity", capable of responding to a major bunker fuel spill or tanker incident. Response times need to be improved to ensure that the environmental and socio-economic impact of spills are effectively mitigated in the event of an incident.
  3. Response planning should not be focused solely on mechanical recovery methods and should include a wider range of spill countermeasures. Such measures could include "alternative response techniques", such as the use of dispersants and "in situ burning", which are prohibited or made difficult to implement under current legislation. The Panel also found that portions of the Canada Shipping Act, 2001 discouraged action by certain potential responders. It recommended amendments to the Act to provide immunity to potential responders in various circumstances.
  4. A larger and limitless Ship Source Oil Pollution Fund should be created to pay claims arising from oil spills. The fund should be entirely paid for by the oil cargo industry. It should be backstopped by the Federal Government, but only in the event of a temporary shortfall before industry can replenish the fund.
  5. A high-level "interdepartmental committee" should be created to coordinate spill response among the various responsible government entities. This committee was found necessary to reduce problematic confusion among the various government agencies and departments who respond to a spill.

While the conclusions and recommendations of the Panel have yet to be formally adopted by industry or government, the Panel's views provide an indication as to the direction Canada's spill response and preparedness regime may be heading. Industry stakeholders can expect to fund a growing and increasingly capable spill response capacity which will likely involve adapted and expanded versions of current response systems and infrastructure.

Stakeholders would be well-advised to read the report in full here.

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