The key function of CP's Government Affairs group is to work with legislators, policy-makers and regulators on matters of public policy.
CP operates in a highly regulated environment in which railway operations are subject to federal laws, regulations and rules in both Canada and the United States which directly affect how we manage many aspects of our railway operation and business activities. Our operations are primarily regulated by the Canadian Transportation Agency and Transport Canada in Canada and the Federal Railroad Administration (FRA) and the Surface Transportation Board (STB) in the U.S. Various other federal policy-makers and regulators also directly and indirectly affect our operations in areas such as tax policy, labour relations, health, safety, security and environment.
The Canada Transportation Act (CTA) provides customer rate and service remedies, including Final Offer Arbitration, competitive line rates and compulsory inter-switching. The CTA also regulates the maximum revenue entitlement for regulated grain, commuter and passenger access, and charges for ancillary services and railway noise.
The FRA regulates safety-related aspects of our railway operations in the U.S. State and local regulatory agencies may also exercise limited jurisdiction over certain safety and operational matters of local significance.
The STB regulates commercial aspects of CP's railway operations in the U.S. The STB is an economic regulatory agency that Congress charged with the fundamental mandate of resolving railroad rate and service disputes and reviewing proposed railroad mergers. The STB serves as both an adjudicatory and a regulatory body. The agency has jurisdiction over railroad rate and service issues and rail restructuring transactions (mergers, line sales, line construction, and line abandonments).
To mitigate statutory and regulatory impacts, we are actively and extensively engaged throughout the different levels of government and regulators, both directly and indirectly through industry associations, including the Association of American Railroads and the Railway Association of Canada.