ARCHIVED – National Energy Board – 2018–19 Departmental Plan

Supplementary information

Corporate information

Organizational profile

Appropriate minister: The Honourable Jim Carr, P.C., M.P.

Institutional head: C. Peter Watson, P.Eng., FCAE

Ministerial portfolio: Natural Resources

Enabling instrument: National Energy Board Act

Year of incorporation / commencement: 1959

Headquarters:
Calgary, Alberta

Regional Offices:
Montréal, Québec
Vancouver, British Columbia
Yellowknife, Northwest Territories

Raison d’être, mandate and role

Raison d’être

The National Energy Board is an independent federal regulator of several parts of Canada’s energy industry. It regulates pipelines, energy development and trade in the public interest with safety as its primary concern.

The Minister of Natural Resources is responsible for this organization. Additional information can be found in the National Energy Board Departmental Plan.

NEB Mandate and Role

The NEB regulates under the National Energy Board Act (NEB Act), among other things, the construction, operation and abandonment of pipelines that cross provincial or international borders, international power lines and designated interprovincial power lines, imports of natural gas and exports of crude oil, natural gas liquids, natural gas, refined petroleum products, and electricity. The NEB is also charged with providing timely, accurate and objective information and advice on energy matters.

Additionally, in specified areas^Footnote 1 the Board has regulatory responsibilities for oil and gas exploration and production activities under the NEB Act, Canada Oil and Gas Operations Act (COGOA), the Canada Petroleum Resources Act (CPRA), and the Northwest Territories’ Oil and Gas Operations Act (OGOA) and Petroleum Resources Act (PRA).

The NEB conducts thorough, science-based environmental assessments during its review of all applications for projects under its jurisdiction. For certain projects, the Board also conducts environmental assessments as required by federal legislation, such as the Canadian Environmental Assessment Act, 2012 (CEAA 2012), the Mackenzie Valley Resource Management Act, and the Inuvialuit Final Agreement or the Nunavut Land Claims Agreement. Certain Board inspectors are appointed Health and Safety Officers by the Minister of Labour to administer Part II of the Canada Labour Code as it applies to NEB-regulated facilities and activities.

The NEB also monitors aspects of energy supply, demand, production, development and trade. The NEB reports to Parliament through the Minister of Natural Resources.

NEB Modernization

The Minister of Natural Resources has been mandated by the Prime Minister to modernize the NEB and to ensure its composition reflects regional views and has sufficient expertise in such fields as environmental science, community development, and Indigenous traditional knowledge. For more information on Natural Resources Canada’s organizational mandate letter commitments, see the Minister’s mandate letter.

Natural Resources Canada conducted a review of the NEB’s structure, role, and mandate in order to strengthen the regulatory process and ensure that Canada continues to have a modern, efficient and effective regulator. To accomplish this review, the Government established an Expert Panel to engage Indigenous Peoples, interested stakeholders, provinces and territories, as well as the public. As part of the comprehensive review of environmental and regulatory processes, federal environmental assessment processes were also examined. NEB staff and management worked closely with other departments to support this review and the renewal of environmental assessment processes.

On 8 February 2018, the Government introduced Bill C-69: An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts.  Among other measures, this proposed legislation introduces a new impact assessment system and a new Canadian Energy Regulator.  For more information on Bill C-69, see the Government’s website for the environmental and regulatory reviews.

The NEB welcomes measures that strengthen our regulatory framework.  A robust and modern regulatory regime is important to keeping Canadians safe and protecting our environment.

Operating context and key risks

Operating context

Regulating energy infrastructure in the 21^st century is increasingly challenging. Often, the energy regulatory process is called upon to adjudicate difficult societal, technical and policy issues.

The National Energy Board will continue to strive towards excellence in everything it does. This includes the significant strides it has made to transition to a regulator that will quickly adapt to the legislative changes that modernization will bring to the Canadian energy landscape. The 2018–19 Departmental Plan marks the completion of one full cycle of the NEB’s Departmental Results Framework and it signals a reinforced focus on continuous organizational improvement. The Framework is the blueprint for the organization’s way forward and it is supported by a strong management system.

In 2018–19, the NEB will focus on delivering the outcomes described in the Departmental Results Framework, and adjust its course as needed. The work of the NEB will be data driven through performance measurement, evidence and feedback from Canadians. Achieving excellence in data and information management will require an integrated approach, working from an enterprise-wide perspective.

While the NEB expects to receive about the same number of applications requiring hearings in 2018–19 that it has seen in recent years for tolling, exports and pipeline infrastructure, it is also facing a surge in construction activity for approved pipelines. Commensurate with a surge in construction activity is increased compliance oversight activities, to ensure the safety of Canadians and the environment.

To further enhance our safety and environment programs we are also forging a new way of working with Indigenous communities through the Indigenous Advisory and Monitoring Committees established for the Line 3 and Trans Mountain pipelines. These committees provide a means for ongoing identification and resolution of issues of importance to Indigenous groups, and contribute to the effectiveness of the NEB’s regulatory oversight work with the benefit of Indigenous knowledge.

Regulatory Excellence is a perpetual pursuit, and the NEB will continue to set higher performance targets for itself as it strives to regulate pipelines, energy development and trade on behalf of Canadians in a way that protects the public and the environment while supporting efficient markets.

Key Risks

Risk Analysis

There are six key risks identified by the NEB to be considered in its planning environment for 2018–19, which include the risks related to:

1. An incident involving NEB-regulated infrastructure.
   
   Preventing harm is at the heart of what a regulator does. To reduce safety risks, a proactive approach to incident prevention is critical. That is why all available actions are taken by the NEB to protect the environment and the public with an emphasis on learning from past incidents to reduce future incidents. This is a primary focus for the NEB, with much of work aimed at reducing the likelihood and probability of this risk.
2. Harm to a member of the public, NEB staff, or a Board Member.
   
   The NEB is committed to ensuring Canadians are engaged in its regulatory work, and that means that there is a risk that increased public interest in our processes of the type that escalates to disruption or threats may result in harm to members of the public, NEB staff, or a Board Member may occur. Conducting NEB business in a secure manner is paramount to ensuring safety to individuals and the right to be heard with respect.
3. Inadequate financial or human resources.
   
   The NEB needs to ensure we have the right level of expertise and resources to carry out the NEB’s regulatory role. With high levels of variability in the regulatory industry, along with having levels of temporary (sunsetting) funding in its appropriation, there is a risk that the NEB cannot plan, recruit or retain resources effectively to meet the NEB’s obligations. The NEB will mitigate this risk by continuing to actively monitor the NEB’s allocation and develop, improve and implement tools which track resourcing needs as well as implement plans to address shortfalls-which includes, but is not limited to, submitting further funding requests when appropriate.
4. Accidental or inappropriate disclosure of NEB or industry information.
   
   Increased public expectations for transparency in energy and pipeline data and information has been a primary determinant of the NEB’s ramped up efforts to efficiently supply accessible and transparent data. Enhancing current systems and processes, while streamlining data and information management practices, will reduce the risk of incomplete data and information. Relatedly, it is important to protect the data and information the NEB manages. Accidental or intentional disclosure of sensitive information has the potential to impact financial markets, pose a breach of the Government of Canada Policy on Government Security, or lead to a loss of public trust. Physical and information technology security controls and improvements, coupled with ongoing employee training on proper information management practices, will help to mitigate this risk.
5. Incomplete data and information.
   
   Increasing our regulatory performance relies on a robust approach to data and information management. The NEB’s is increasing its focus on data collection and analysis, while making information about pipeline safety performance available to Canadians. Compiling information on company performance helps the NEB to establish trends and assess the appropriate level of oversight needed. The NEB will use trend information to direct its resources towards improving performance of companies through management systems and ultimately the performance of the industry. The NEB will also create a new business unit whose purpose will be to transform how the NEB manages data and information.
6. An insufficient approach to strengthening and maintaining stakeholder relationships.
   
   Seeking to strengthen relations with Indigenous Peoples as well as landowners, regional representatives, industry, and Canadians is aligned with a broader Government-wide commitment. For the NEB, strengthening these relationships is critical to our ability to continually improve how we regulate and ensure we are delivering on our mandate. Any dialogue on energy infrastructure, safety and environmental protection must recognize the unique needs of all NEB stakeholder relationships. Implementing a public engagement strategy that includes a plan for meeting the distinct engagement needs of differing groups, combined with a regional NEB presence, will facilitate relationship-building now and into the future. Engagement with our stakeholders incorporates a focus on both educating about energy information, regulatory processes and the NEB’s role as a lifecycle regulator. Engaging with Canadians will improve how we work and make decisions that reflect and respond to Canadians’ views and concerns.

Reporting framework

The NEB’s Departmental Results Framework and Program Inventory of record for 2018–19 are shown below:

Supporting information on the Program Inventory

Supporting information on planned expenditures, human resources, and results related to the NEB’s Program Inventory is available in the GC InfoBase.

Supplementary information tables

The following supplementary information tables are available on the NEB’s website.

• Departmental Sustainable Development Strategy
• Disclosure of transfer payment programs under $5 million
• Gender-based analysis plus
• Planned evaluation coverage over the next five fiscal years

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs. The tax measures presented in this report are the responsibility of the Minister of Finance.

Organizational contact information

Date modified:

2023-12-28