ARCHIVED – National Energy Board – 2013-14 Departmental Performance Report – Section I: Organizational Expenditure Overview
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Section I: Organizational Expenditure Overview
Organizational Profile
Appropriate Minister: The Honourable Greg Rickford, P.C., M.P.
Institutional Head: C. Peter Watson, P.Eng.
Ministerial Portfolio: Department of Natural Resources
Enabling Instrument(s): National Energy Board Act (NEB Act)
Year of Incorporation / Commencement: 1959
Other: In 2014, the National Energy Board will celebrate 55 years of ardently promoting safety and security, environmental protection and economic efficiency in the Canadian public interest.
Organizational Context
Raison d’être
The National Energy Board is an independent federal, quasi-judicial regulatory tribunal established in 1959 to promote safety and security, environmental protection and economic efficiency in the Canadian public interest within the mandate set by Parliament for the regulation of pipelines, energy development and trade.
Responsibilities
The main responsibilities of the NEB are established in the NEB Act and include regulating:
- The construction, operation, and abandonment of pipelines that cross international borders or provincial/territorial boundaries, as well as the associated pipeline tolls and tariffs;
- The construction and operation of international power lines and designated interprovincial power lines; and
- Imports of natural gas and exports of crude oil, natural gas liquids (NGL), natural gas, refined petroleum products and electricity.
Additionally, the Board has regulatory responsibilities for oil and gas exploration and production activities in Canada Lands[1] not otherwise regulated under joint federal/provincial accords. These regulatory responsibilities are set out in the Canada Oil and Gas Operations Act (COGOA), and the Canada Petroleum Resources Act (CPRA).
The NEB conducts environmental assessments (EA) during its review of applications for projects under its jurisdiction. For certain projects, an EA is also 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 Board also monitors aspects of energy supply, demand, production, development and trade that fall within the jurisdiction of the federal government. The Board reports to Parliament through the Minister of Natural Resources.
Strategic Outcome(s) and Program Alignment Architecture
- 1. 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.
- 1.1 Program: Energy Regulation Program
- 1.1.1 Sub-Program: Energy Regulation Development
- 1.1.2 Sub-Program: Energy Regulation Implementation, Compliance Monitoring and Enforcement
- 1.2 Program: Energy Information Program
- Internal Services
- 1.1 Program: Energy Regulation Program
Organizational Priorities
Organizational Priorities
Priority | Type[2] | Strategic Outcome(s) [and/or] Program(s) |
---|---|---|
Continual improvement of safety and environmental outcomes. | Previously committed to | Energy Regulation |
Summary of Progress | ||
|
Priority | Type | Strategic Outcome(s) [and/or] Program(s) |
---|---|---|
A robust regulatory framework for the North. | Previously committed to | Energy Regulation |
Summary of Progress | ||
|
Priority | Type | Strategic Outcome(s) [and/or] Program(s) |
---|---|---|
A flexible and efficient organization able to meet new and ongoing priorities. | Previously committed to | Energy Regulation, Internal Services |
Summary of Progress | ||
Changes to the NEB Act resulting from the Government’s plan for Responsible Resource Development, as enacted by the Jobs, Growth and Long-Term Prosperity Act imposed time limits and the requirement to ensure timely handling of applications. As well, an increase in industry activity is resulting in unprecedented demand on NEB services. A flexible and efficient organization is required for the Board to achieve its strategic outcome and priorities in an effective and efficient manner. In support of meeting our third strategic priority, the NEB:
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Risk Analysis
Key Risks
Risk | Risk Response Strategy | Link to Program Alignment Architecture |
---|---|---|
Environmental protection and safety: There is a risk of an incident with respect to NEB-regulated company activities resulting in a serious injury, fatality(ies) or significant environmental damage. |
Risk identified in the 2013-14 RPP Strategies were effective in reducing risk exposure |
Energy Regulation |
Resource Constraints: There is a risk that the volume of applications and demand on programs will be higher than expected. |
Risk identified in the 2013-14 RPP Strategies were effective in reducing risk exposure |
Energy Regulation Energy Information Internal Services |
Loss of reputation as a regulator: There is a risk that the Board will be unable to maintain public confidence if its actions are not considered expert, efficient, effective and independent. |
Risk identified in the 2013-14 RPP Strategies were effective in reducing risk exposure |
Energy Regulation |
Changes in public interest: There is a risk that the public interest changes in a way that leaves the Board unable to factor those changes in a timely manner when it carries out its statutory mandate. |
Risk identified in the 2013-14 RPP Strategies were effective in reducing risk exposure |
Energy Regulation |
Inability to recruit and retain staff: There is a risk that the NEB will be unable to compete with industry and other employers to attract and retain the skilled staff required to deliver its mandate. |
Risk identified in the 2013-14 RPP Strategies were effective in reducing risk exposure |
Energy Regulation Energy Information Internal Services |
Inability to deliver effective internal services: There is a risk that an ineffective alignment of the Board’s internal services and regulatory programs will impact the NEB’s ability to proactively manage program delivery and internal and external changes. |
Risk identified in the 2013-14 RPP Strategies were effective in reducing risk exposure |
Internal Services |
Environmental protection and safety continued to be of paramount importance to the NEB and to Canadians. The NEB employs a risk-informed compliance verification program, which considers resource requirements to perform compliance activities and ensure those activities are completed in accordance with the plan. Corrective actions were monitored and regulated companies’ operating environments observed for emerging risks and trends. In addition to increasing the number of inspections and audits we conducted, the NEB’s AMPs framework provided the NEB with additional enforcement mechanisms.
The NEB is responsive to Canadians’ increased interest in the energy industry and the safety and environmental impacts of energy pipeline incidents. This fiscal year, our staff responded to 612 media requests, up from 282 the prior year. We also developed a comprehensive Communications Strategy to proactively plan for and engage in enhanced stakeholder engagement, with a focus on increasing Canadians’ confidence in the NEB as a strong federal regulator.
We ensured we heard and considered stakeholders’ views in various ways, including working with the Land Matters Group, monitoring trends present in public reports, media and political debates, issuing responsive, unbiased, transparent and evidence-based decisions, strengthening our data management processes in support of robust regulatory compliance, and making all compliance and enforcement actions public on the NEB website.
The NEB also continued to meet face-to-face with communities across the country, and this year employed social media to increase outreach, by introducing the NEB Twitter account. Since its launch, the NEB has steadily gained followers, including community leaders, journalists and environmental non-governmental organizations.
The skills and experience needed by the NEB continued to be in high demand due to private sector demand in Calgary and increased workloads at the NEB. In response to these conditions, the NEB regularly reviewed its People Strategy and staffing and recruitment. Additionally, the NEB measured employee engagement and work-life balance on a quarterly basis, which informed leadership decisions on areas of focus and assisted in responding to staff concerns and interests. Staff development was supported with access to training opportunities and access to new career opportunities in a challenging work environment.
Actual Expenditures
2013-14 Main Estimates |
2013-14 Planned Spending |
2013-14 Total Authorities Available for Use |
2013-14 Actual Spending (authorities used) |
Difference (actual minus planned) |
---|---|---|---|---|
62,436,291 | 66,900,000 | 86,299,363 | 81,682,681 | 14,782,681 |
2013-14 Planned |
2013-14 Actual |
2013-14 Difference (actual minus planned) |
---|---|---|
427.6 | 425.3 | -2.3 |
Strategic Outcome(s), Program(s) and Internal Services | 2013-14 Main Estimates |
2013-14 Planned Spending |
2014-15 Planned Spending |
2015-16 Planned Spending |
2013-14 Total Authorities Available for Use | 2013-14 Actual Spending (authorities used) |
2012-13 Actual Spending (authorities used) |
2011-12 Actual Spending (authorities used) |
---|---|---|---|---|---|---|---|---|
Strategic Outcome 1: 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. | ||||||||
Energy Regulation | 33,618,378 | 38,600,000 | 56,018,272 | 46,581,292 | 49,664,458 | 47,970,746 | 44,125,872 | 34,867,506 |
Energy Information | 7,810,511 | 8,100,000 | 6,820,972 | 5,831,489 | 5,665,194 | 6,156,305 | 5,974,560 | 8,259,353 |
Subtotal | 41,428,889 | 46,700,000 | 62,839,244 | 52,412,781 | 55,329,652 | 54,127,051 | 50,100,432 | 43,126,859 |
Internal Services Subtotal | 21,007,402 | 20,200,000 | 21,824,229 | 16,740,529 | 30,969,711 | 27,555,630 | 19,445,209 | 21,248,754 |
Total | 62,436,291 | 66,900,000 | 84,663,473 | 69,153,310 | 86,299,363 | 81,682,681 | 69,545,641 | 64,375,613 |
The variance between the Planned Spending and the Total Authorities for 2013-14 ($19.4 million) is mainly due to the following changes during the reporting period:
- Increase in authority ($12.4 million) due to approval of the office move to Center 10 Treasury Board submission,
- Increase in authority ($8.5 million) due to the approval of new Collective Agreement in December 2013 with retroactive pay back to 01 November 2011, and
- Increase in authority ($1.2 million) due to year-end adjustment to statutory employee benefit plan expenditures, offset by:
- Lower than anticipated Operating Budget Carry Forward (OBCF) from 2012-13 to 2013-14 ($1.4 million), and
- Lower than anticipated Eligible Paylist Expenditures ($1.3 million) from Treasury Board Vote 30.
The variance between the Total Authorities and the Actual Spending for 2013-14 ($4.6 million) is mainly due to the following changes during the reporting period:
- Lapse of $1.8 million relating to the Participant Funding Program
- Lapse of $1.0 million for the office move to Center 10
- Lapse of $0.7 million in salary – due to difficulty in the hiring of temporary Safety and Public Awareness FTEs approved in fiscal year 2012-2013
- Lapse of $0.5 million in the Hearing budget – Trans-Mountain expansion delayed to next fiscal year, and
- Lapse other O&M of $0.5 million – miscellaneous expenses throughout the organization.
Planned spending for 2014-15 and 2015-16 differs from the amounts stated in the Report on Plans and Priorities 2013-14 due to:
- Fiscal 2014-15 – The RPP indicated planned spending of $65.5 million; the $19.2 million increase is due to: Office move to Center 10 ($8.3 million); Collective Agreement ($7.2 million); One-time payment of Severance Pay ($4.1 million); and, reduction in employee benefit plan expenditures ($0.4 million).
- Fiscal 2015-16 – The RPP indicated planned spending of $63.3 million; the $5.9 million increase is due to: Collective Agreement ($7.2 million), partially offset by lower forecast Eligible Paylist expenses ($0.9 million) and a reduction in employee benefit plan expenditures ($0.4 million).
Alignment of Spending With the Whole-of-Government Framework
Strategic Outcome | Program | Spending Area | Government of Canada Outcome | 2013-14 Actual Spending |
---|---|---|---|---|
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. | Energy Regulation | Economic Affairs | Strong Economic Growth | 47,970,746 |
Energy Information | Economic Affairs | Strong Economic Growth | 6,156,305 |
Spending Area | Total Planned Spending | Total Actual Spending |
---|---|---|
Economic Affairs | 46,700,000 | 54,127,051 |
Social Affairs | 0 | 0 |
International Affairs | 0 | 0 |
Government Affairs | 0 | 0 |
Departmental Spending Trend
Text description of this graph
Departmental Spending Trend
This bar graph shows the National Energy Board’s planned and actual spending for the fiscal years 2011-12 to 2016-17.
Total Spending and planned spending by period is as follows:
- 2011-12: $64 million
- 2012-13: $70 million
- 2013-14: $82 million
- 2014-15: $85 million
- 2015-16: $69 million
- 2016-17: $69 million
The increase in actual spending in 2013-14 ($12.0 million) is due mainly to the actual cost of the office move to Center 10 ($11.3 million) and retroactive pay received once our new Collective Agreement was approved in December 2013 ($0.7 million).
The increase of $3.0 million for total planned spending in 2014-15 is due to an increase in eligible pay list items of $4.5 million related to the expiration of the employee severance pay program as well as an additional $1.5 million in Participant Funding Program spending to support the Trans-Mountain expansion. These increases are partially offset by a $3.0 million reduction in spending related to the NEB relocation.
The decrease of $15.5 million for the last two planning fiscal years from fiscal year 2014-15 is mainly due to the funding for the office move to Center 10 expiring in fiscal year 2014-15 ($8.3 million), the one-time payment of severance pay ($5.0million) in fiscal year 2014-15 and the decrease of $2.2 million in our Participant Funding Program (Trans Mountain).
Estimates by Vote
For information on the National Energy Board’s organizational Votes and statutory expenditures, consult the Public Accounts of Canada 2014 on the Public Works and Government Services Canada website.
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