ARCHIVED – National Energy Board - 2016-17 - 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.

The increase in 2016-17 in planned spending from the Main Estimates is primarily due to the expected carry forward from 2015-16 to 2016-17. The decline in planned spending starting in FY 2017-18 is primarily due to the Safety Submission and Public Awareness funding which sunsets in 2016-17 and the funding received through Budget 2014 for Mega Projects which will cease at the end of FY 2016-17.

Planning Highlights

The Board verifies and enforces compliance with regulatory requirements using a variety of tools including field inspections and management system audits. The NEB targets its inspection and audit activities using a risk-informed approach, to focus efforts on those facilities and issues that pose the highest risk to safety of the public, workers and environmental protection. Under this program, the Board will:

• Deliver on its compliance activity plan, including field inspections and audits
• Implement improvements to its compliance program by:
  • Conducting analysis of information and data obtained from compliance activities to further refine compliance planning
  • Using recent pipeline performance indicators (available in a summary report on the NEB website) to inform compliance planning and program improvements
  • Refining the inputs to the risk-informed planning model
• Initiate development of a modern system to facilitate efficient collection, analysis and reporting of regulatory data as per recommendations from the Office of the Auditor General’s (OAG) Audit of the oversight of federally regulated pipelines.
• Modernize hearing and non-hearing application processes including systems used to support the application assessment processes
• Continue to:
  • use input from Canadians(e.g. Land Matters Group) to inform NEB initiatives
  • provide ways for Canadians to express their views and opportunities for experts to meaningfully participate in reviews
  • engage with Indigenous Peoples to develop engagement programs that provide sustained and consistent lifecycle interaction and communication approaches

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 made by Parliament to the NEB Act and other applicable federal legislation, must be implemented, including the development of consequential regulations within statutory timelines. The NEB works closely with its federal, provincial and territorial partners to continually develop and improve all aspects of its regulatory framework, and to ensure that the NEB’s mandate is pursued as effectively and efficiently as possible.

Key activities include:

• Developing and amending regulations required to implement the:
  • Energy Safety and Security Act (this work affects COGOA and is led by Natural Resources Canada, but in close collaboration with the NEB and other relevant federal, provincial, and territorial government departments and regulators )
    • Financial requirements (new regulations)
    • Administrative monetary penalties (new regulations)
  • Pipeline Safety Act (this work affects the NEB Act)
    • Financial requirements (new regulations led by Natural Resources Canada, but with technical assistance from the NEB)
    • Damage prevention (regulatory amendments led by the NEB)
• Continuing to help modernize the regulations related to the NEB’s responsibilities for oil and gas exploration and production under COGOA and CPRA:
  • Natural Resources Canada is leading collaborative work to amend several regulations under COGOA:
    • Certificate of Fitness
    • Drilling and Production
    • Geophysical Operations
    • Installations
    • Operations
  • This regulatory development is occurring in close partnership with the NEB as well as several relevant federal, provincial, and territorial government departments and regulators
• Ongoing improvement of the NEB’s broader regulatory framework, including the provision of updated, accurate, and relevant guidance to stakeholders on existing and newly developed regulations related to the NEB’s mandate.

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 are risk-informed and driven by timely analysis of data and information collected from different activities. Analysis of accurate and relevant information 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.

The NEB will continue improvements to its lifecycle approach through application assessment, verifying compliance and enforcing regulatory requirements.

In the coming year, in addition to addressing specific recommendations from the Office of the Auditor General’s Audit of the oversight of federally regulated pipelines, the NEB will specifically:

• Improve the documentation, tracking and reporting of conditions that have been placed on project approvals as per recommendations from the OAG Audit of the oversight of federally regulated pipelines
• Increase transparency by creating a process to provide the public with information on the status of approval conditions
• Conduct an evaluation of industry abandonment cost estimates
• Add clarity to the NEB’s enforcement program for all parties
• Continue to:
  • process and assess regulatory applications under the NEB Act and COGOA, and provide advice to the Board based on the evidence submitted, thereby ensuring decisions continue to be based on science, facts and evidence
  • monitor time-limit commitments in application processes
  • provide culturally appropriate opportunities for Indigenous Peoples to provide input into the hearing process including Oral Traditional Evidence

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.

The decline in planned spending in FY 2018-19 is primarily due to funding received for Safety and Environment Protection in Budget 2015 for activities that were funded only for the first three fiscal years of that five years submission.

Planning Highlights

The NEB’s Energy Information Program provides credible, neutral, and independent energy information that informs the regulatory work of the Board and also adds value to broader public discussions about energy in Canada.

Key activities include:

• Monitoring developments in energy markets, and gathering and publishing relevant energy statistics
• Drafting and publishing major reports and studies on energy markets, resources, and infrastructure
• Maintaining and further developing new publication streams designed to appeal to broader audiences and provide energy information in a more user-friendly style
• Supporting the Board’s regulatory decisions by providing timely market analysis related to applications before the Board
• Developing data visualizations that will tell Canada’s energy story in a simple, clear, and concise manner
• Working with other organizations within Canada and abroad to learn and adopt best practices, and to enhance the accuracy and transparency of energy information
• Leveraging the Government of Canada Web Renewal and Open Data initiatives to improve Canadians’ access to energy information

These activities provide internal and external stakeholders, as well as the general public, with timely, relevant, and accessible information on energy markets. This supports regulatory excellence, enhances energy literacy, and helps inform public debate and policy-making.

Internal Services

Description:

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. Internal services include only those activities and resources that apply across an organization, and not those provided to a specific program. The groups of activities 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; and Acquisition Services.

The decline in planned spending starting in FY 2017-18 is primarily due to the Safety Submission and Public Awareness funding which sunsets in 2016-17 and the funding received through Budget 2014 for Mega Projects which will cease at the end of FY 2016-17.

Planning Highlights

To be an effective and efficient organization supporting regulatory excellence based on a culture of innovation and creativity, the NEB will continue to improve internal systems and processes, and embrace whole-of-government initiatives to increase efficiency and effectiveness, foster a culture of innovation, learning and continual improvement, and manage resources effectively and efficiently.

The NEB continues to experience an increase in workload due to the number of compliance activities and the complexity of applications in parallel with organizational changes, including the expansion of the NEB through a regional presence.

The following key activities support all of our organizational priorities and our Strategic Outcome and Program Alignment Architecture:

• Submit changes to the NEB’s Program Alignment Architecture and Performance Management Framework to the Minister of Natural Resources for his agreement and if approved, submit to the President of Treasury Board
• Address recommendations stemming from the recent Horizontal Audit on Information Management and Information Technology Security.
• Support NEB program areas with the implementation of IM/IT requirements as per recommendations from the OAG Audit of the oversight of federally regulated pipelines
• Adapt IM/IT services and processes to incorporate evolving mandate of Shared Services Canada.
• Support Canada’s Action Plan on Open Government and implement changes necessary to become fully compliant with the Policy on Information Management.
• Support NEB program areas and regional offices through the modernization of systems, associated software applications, tools and the provision of Government of Canada standardized network services.
• Modernize the corporate website and complete the migration to www.Canada.ca
• Align NEB’s Enterprise Resource Planning, financial management and procurement processes and systems with Government of Canada-wide standards established by Treasury Board (e.g. Phoenix pay system, MyGCHR, PeopleSoft, SAP, Green Procurement, and Integrity Regime)
• Explore alternative financial management models which would enable the NEB to be more responsive to rapidly changing demands for regulatory service and information
• Support implementation of the Pipeline Safety Act and the Energy Safety and Security Act as it relates to cost recovery and various financial management matters
• Continue to:
  • strengthen physical security for staff and guests at NEB’s head office located at Centre 10 in Calgary
  • carry out collective bargaining
  • renew the job classification system
  • implement retention strategies

Date modified:

2024-02-14