ARCHIVED - National Energy Board - 2014-15 - Report on Plans and Priorities - Section II: Analysis of Program(s) by Strategic Outcome

Section II: Analysis of Program(s) by Strategic Outcome

Strategic Outcome

The regulation of pipelines, power lines, energy development and energy trade contributes to the safety of Canadians, the protection of the environment and efficient energy infrastructure and markets, while respecting the rights and interests of those affected by NEB decisions and recommendations.

Program 1.1: Energy Regulation

Description:

This program provides the regulatory framework under which the NEB carries out its mandate and achieves part of its strategic outcome. Specifically, it enables Canadian federally regulated energy infrastructure to be developed and supervised throughout its lifecycle. The regulatory framework includes components such as setting expectations for industry and others, monitoring and enforcing compliance with requirements, measuring performance of the NEB’s regulatory framework and focusing on continual improvement. The authority for this program is derived from the National Energy Board Act, the Canada Oil and Gas Operations Act, the Canada Petroleum Resources Act, the Canada Labour Code and other associated regulations and guidelines. Energy regulation provides Canadians with safe, reliable and efficient energy supply.

Planning Highlights

The NEB hosted a Safety Forum in June 2013 with a focus on safety and environmental protection. The forum was one of the key deliverables within the NEB’s Action Plan on Safety and Environmental Protection. Key topics discussed at the Forum included corporate leadership’s role in building and maintaining a safety culture, effectiveness of management systems and performance measurement’s role in risk management, as well as public expectations around transparency of information, and the evolving role of the regulator. To capitalize on the momentum generated by the Forum, the NEB identified several actions supporting the common goal for the NEB and the industry of zero incidents.

Key activities include:

• Maintain an increased number of compliance activities including inspections and audits as per targets;
• Implement safety culture plan with regulated companies:
  • Develop and communicate NEB messaging, including a definition of safety culture, which identifies its characteristics and attributes;
  • Conduct engagement activities promoting awareness of the NEB’s safety culture expectations;
  • Create a baseline of safety culture with regulated companies using various inputs such as incident investigations, audits and inspections.
• Review and update hearing and non-hearing application processes including systems used to support the application processes so that they are in place to conduct a thorough and efficient review of upcoming major applications;
• Develop a regulatory information and analysis function to enhance high quality, evidence-based information into compliance verification and other regulatory processes.

These activities, once implemented, will further minimize the probability that an incident at a regulated company could result in a fatality and/or significant environmental damage.

Sub-program 1.1.1: Energy Regulation Development

Description:

This Sub-Program provides the energy sector and affected stakeholders with the regulatory expectations required for the development and operation of energy infrastructure and for oil and gas exploration and development activities in lands and offshore areas as defined in s.3 of the Canada Oil and Gas Operations Act. The NEB develops and communicates regulations, guidance materials and related processes to ensure its regulatory expectations are clear and useful. The NEB actively seeks opportunities for improvement through amendments to regulations and guidance, non-mandatory goals and guidance, and other direction provided from time to time.

Planning Highlights

Changes to the NEB Act, other applicable federal legislation and consequential regulations must be implemented. These changes in regulations are either required by legislation or are identified gaps and issues in the NEB regulatory framework. Changes to relevant acts and regulations have to be implemented in the NEB processes to provide staff and stakeholders with updated, accurate and relevant regulatory guidance.

Key activities include:

• Implement legislative and consequential regulatory changes;
• Modernize the regulatory framework for Canada Lands, in partnership with relevant federal and provincial government departments and regulators, to maintain the highest standards for operational safety, and environmental protection;
• Provide guidance to clarify the NEB’s expectations of companies and how the public can get involved in NEB processes in the North;
• Continue to implement the Northern Engagement Plan.

Sub-program 1.1.2: Energy Regulation Implementation, Compliance Monitoring and Enforcement

Description:

Through this Sub-Program, the NEB makes informed decisions and recommendations on issues and applications related to energy development, energy infrastructure, energy transportation, energy trade and related activities. As an independent regulatory tribunal, the NEB actively involves those affected by its regulatory decisions through public hearings and other engagement activities.

The Board verifies and enforces compliance with regulatory requirements and expectations such as those set out in the Board regulations, and terms and conditions of approvals. The NEB conducts its monitoring and enforcement activities under eight regulatory implementation programs: integrity, emergency management, safety management, damage prevention, financial regulation, respecting rights and interests, security, and environmental protection. Through monitoring and enforcement, the NEB holds regulated entities accountable for results in the Canadian public interest. The public interest is inclusive of all Canadians and refers to a balance of economic, environmental and social considerations that changes as society’s values and preferences evolve over time. This program uses funding from the following transfer payment: National Energy Board Participant Funding Program.

Planning Highlights

The NEB’s regulatory and non-regulatory activities (e.g., application assessment, compliance and enforcement, planning and reporting, etc.) are risk-informed and driven by timely analysis of data and information collected from different activities. Analysis of accurate and relevant information can lead to the identification of trends in the industry and informs the NEB application assessment, compliance verification and enforcement processes. Through these efforts, the NEB will continue to hold regulated companies accountable for results in the Canadian public interest.

Key activities include:

• Continue to monitor time-limit commitments;
• Ensure readiness for potential large-scale construction projects;
• Streamline incident investigation and unauthorized activities processes;
• Utilize input from Canadians (e.g., Land Matters Group) to inform NEB initiatives;
• Provide information on safety and environmental protection that matters to Canadians;
• Improve the analysis of data and regulatory information to enhance safety and environmental performance reporting;
• Expand engagement activities (e.g., workshops) about regulatory requirements to maintain pipeline safety.

These activities, once implemented will further minimize the risk that applications are not dealt with in a timely and expeditious manner. These activities will also further minimize the probability that an incident at a regulated company could result in a fatality and/or significant environmental damage.

Program 1.2: Energy Information

Description:

Under this program, the supply, demand, production, development, transmission and trade of energy are analyzed to ensure the requirements of Canadians are appropriately met. Advice is provided on energy issues of interest. The Board uses energy information to inform its regulatory decisions and to produce publicly available assessments of energy trends, events and issues that may affect Canadian energy markets and the supply and demand for energy.

Planning Highlights

In support of the Program, the NEB will continue to monitor developments in energy markets, gather and publish energy market statistics and publish analyses to inform Canadians on energy markets. The NEB monitors a variety of data and information under the Energy Information Program, which are made available to the public through our market and our supply and demand analysis products.

Key activities include:

• Continue to monitor developments in energy markets, gather and publish energy market statistics and publish analyses to inform Canadians on energy markets;
• Support the Board’s regulatory decisions by providing up to date market analysis on energy infrastructure related applications before the Board;
• Publish energy studies - planned publications for 2014-15 include:
  • Canada’s Energy Future 2015 to be released in Fall 2015;
  • Duvernay and Bakken Resource Assessments;
  • Short-term Canadian Natural Gas Deliverability Outlook 2015-17;
  • Short-term Canadian Conventional/Tight Oil Deliverability Outlook 2015-17;
  • Winter and Summer Energy Outlooks; and,
  • Several shorter reports on various aspects of energy markets.
• Enhance the external website to improve access and create an energy information portal for Canadians.

These activities enable the Board to make informed decisions and demonstrate to Canadians how markets are functioning and whether there are sufficient energy resources to satisfy Canadian needs even with exports. These activities, once implemented, will further minimize the probability that inaccurate, incomplete or inadequate information about NEB-regulated facilities or NEB operations is communicated to Canadians.

Internal Services

Description:

Internal Services are groups of related activities and resources administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

Planning Highlights

Significant increases in workload due to multiple major facilities applications will result in additional funding requirements and the need for proactive staffing. In addition, the move of the NEB to its new location needs to be as seamless as possible in order to minimize disruption to staff and work.

Increased national and international interest in NEB activities and the increased profile of and interest in pipeline activity, complemented by an increase in the number of major energy facilities projects across Canada require proactive communication practices to ensure Canadians have the information they need about the NEB and NEB-regulated facilities.

The following key activities support our strategic priority of a flexible and efficient organization, able to meet new and ongoing priorities.

Key activities include:

• Enhance communication with Canadians through strategic communication, including proactive information sharing and web presence;
• Establish and implement a funding model that allows a dynamic allocation of resources based on changing short-term and long-term business priorities;
• Implement attraction and retention strategies;
• Facilitate move to new building;
• Establish appropriate internal service standards commensurate with business requirements and funding levels.
• Implement information management and information technology strategies to support regulatory and business processes and to support enhanced data analysis of regulatory information.

Implementing attraction and retention strategies will mitigate the risk that key positions within the organization are vacant. These activities will also mitigate the risk that inaccurate, incomplete or inadequate information about NEB-regulated facilities or NEB operations are communicated to Canadians.

Additional details on the National Energy Board's green procurement activities can be found in the Greening Government Operations Supplementary Information Table^[xii].

Date modified:

2024-02-14