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Section I – CNSC Overview

Message from the President

As President of the Canadian Nuclear Safety Commission (CNSC), I am pleased to present this Report on Plans and Priorities. As the CNSC celebrates its 65th anniversary as Canada’s nuclear regulator, Canadians can be assured that they have benefited from a safe nuclear industry since 1946, and that the CNSC will continue to provide strong regulatory oversight to ensure safety and security of this sector and its activities.

The CNSC is entrusted with an important mission: regulating nuclear activities to protect the health, safety and security of Canadians and the environment; and implementing Canada’s international commitments on the peaceful use of nuclear energy. We have set a vision to be the best nuclear regulator in the world. To realize that goal, the CNSC will continue to focus its attention on its “Core + 4 Cs” responsibilities – Core regulatory work of licensing and compliance; Commitment to ongoing improvement; Clarity of our requirements; Capacity for action; and Communications.

In addition to its core regulatory work of licensing and compliance efforts for 3300 licenses, the CNSC will focus in 2011-12 on the regulatory oversight of refurbishment projects at nuclear power plants and the licence renewals for major facilities, such as Point Lepreau, Gentilly-2, the AECL Chalk River Laboratories and Port Hope facilities. The CNSC will also continue its regulatory ongoing oversight of the Port Hope Area Initiative and will continue to strengthen its outreach efforts to inform Canadians on the safety of nuclear activities in Canada.

In addition, the CNSC will be working to complete the Joint Review Panel (JRP) of the Darlington New Build, and the JRP will be conducting an extension hearing in 2011-12. The CNSC will also be starting the JRP for the Deep Geologic Repository (DGR) in Ontario, monitoring the restart of Point Lepreau in 2011-12, and preparing for a follow-up to 2009’s Integrated Regulatory Review Service (IRRS) Mission in November 2011.

In Budget 2010, the Government of Canada gave new powers to the CNSC as the single responsible authority for environmental assessments of new nuclear projects. Additionally, as a result of authority provided by Parliament, the CNSC is now implementing a Participant Funding Program to encourage effective public participation, including Aboriginal consultation, and ensuring that public concerns and values are taken into consideration during CNSC hearings. Public participation is an important element of an open and balanced review process as it strengthens the quality and credibility of reviews and decisions made by the Commission.

The global economic recovery has been slow, leading to delays in several major nuclear projects. Nonetheless, the CNSC continues to ensure a state of readiness to be able to respond to new applications when the industry or provinces decide to proceed with new projects. To this end, the CNSC places a premium on ensuring clarity of its requirements and will continue to enhance its regulatory framework to do so.

The CNSC will continue to meet its day-to-day regulatory responsibilities, and the new demands being placed on it, by continuing to engage its government partners, through the Major Projects Management Office, to promote efficiency in the regulatory reviews for major projects.

Furthermore, the CNSC will work with its international partners to ensure Canada’s security and international safeguards obligations are met.

In conclusion, over the past 65 years, Canada has had an internationally recognized track record for nuclear safety. The CNSC is proud to have contributed to that safety record by providing strong regulatory oversight. The CNSC will continue to strive towards its vision of being the best nuclear regulator in the world, and Canadians can be assured that the CNSC will remain vigilant in overseeing Canada’s nuclear industry so that safety is never compromised.

Original signed by

Michael Binder
President


1.1 Summary Information

Raison d’être and Responsibilities

In 1946, the Canadian Parliament passed the Atomic Energy Control Act and established the Atomic Energy Control Board (AECB), providing it with the power to regulate all nuclear activities related to the development and use of atomic energy in Canada.

More than half a century later, in May 2000, the Nuclear Safety and Control Act (NSCA) came into effect and established the Canadian Nuclear Safety Commission (CNSC) as the successor to the Atomic Energy Control Board, with responsibilities and authorities to regulate an industry that spans all segments of the nuclear fuel cycle and a wide range of industrial, medical and academic uses of nuclear substances.

The CNSC is an independent regulatory agency and quasi-judicial administrative tribunal, and has jurisdiction over all nuclear-related activities and substances in Canada.

Vision

To be the best nuclear regulator in the world.

Mission

Regulating nuclear activities to protect the health, safety and security of Canadians and the environment, and to implement Canada’s international commitments on the peaceful use of nuclear energy.

Mandate

Under the NSCA, the CNSC achieves its mission by:

  • regulating the development, production and use of nuclear energy and substances in Canada, as well as the production, possession, use and transportation of nuclear substances;
  • implementing measures to meet international and domestic controls on the non-proliferation of nuclear weapons and nuclear explosive devices; and
  • providing objective scientific, technical and regulatory information about the activities of the CNSC.

In this context, the CNSC:

  • is also responsible for implementing the Government of Canada’s December 2007 Directive to the Canadian Nuclear Safety Commission Regarding the Health of Canadians, which requires the CNSC—when regulating the production, possession and use of nuclear substances—to consider the health of those Canadians who, for medical purposes, depend on nuclear substances produced by nuclear reactors;
  • as a Responsible Authority under the Canadian Environmental Assessment Act, carries out environmental assessments (EAs) for nuclear projects in accordance with this legislation;
  • administers the Nuclear Liability Act;
  • is Canada’s authority with respect to the implementation of nuclear safeguards as set out in the Agreement Between the Government of Canada and the International Atomic Energy Agency for the Application of Safeguards in Connection with the Treaty on the Non-Proliferation of Nuclear Weapons; and
  • administers the nuclear non-proliferation provisions of bilateral Nuclear Cooperation Agreements that the Government of Canada enters into with foreign nuclear trade partners.

The Commission has up to seven permanent members, appointed by the Governor in Council, and is supported by employees across Canada. The CNSC President is a permanent full-time Commission member, while other members may be appointed to serve on a full or part-time basis. Temporary members can also be appointed by the Governor in Council, as required. Commission members are chosen according to their credentials, and are independent of any political, governmental, special interest group or industry influences.

As a quasi-judicial administrative tribunal and court of record, the Commission makes independent, fair and transparent decisions on the licensing of nuclear-related activities, establishes legally binding regulations, and sets regulatory policy direction on matters relating to health, safety, nuclear security and the environment. For licensing matters related to major nuclear facilities, the Commission considers applicant proposals, recommendations of CNSC staff, and stakeholder views before making decisions. In order to promote openness and transparency, the Commission conducts its business to the greatest extent possible in public hearings and meetings and, where appropriate, in communities affected by the decision at hand. Commission hearings are conducted in a public forum approximately 10 times per year, and decisions are usually released within 30 business days after the closing of the hearings.

This map illustrates the organizational locations across Canada.

The following organizational chart provides additional details about the CNSC:

This diagram illustrates the organizational structure of the Commission Tribunal and the CNSC Staff.

Program Activity Architecture

The CNSC made minor changes to the sub-activities in its Program Activity Architecture (PAA) as part of an annual government-wide amendment and approval process:

  • The Regulatory Document Development sub-activity has been combined with the Administration of the Nuclear Safety and Control Act sub-activity within the Regulatory Framework program activity.
  • The Reporting sub-activity under the Compliance program activity has been removed. The reporting of actuals was merged with the Verification and Enforcement sub-activities.

The following diagram illustrates the CNSC’s revised framework of program activities and program sub-activities, which support its strategic outcome:

This diagram illustrates the CNSC’s program activity architecture.

1.2 Planning Summary

Financial Resources ($ thousands)
2011-12 2012-13 2013-14
118,264 119,712 121,714

The financial resources table above provides a summary of the total planned spending for the Canadian Nuclear Safety Commission for the next three fiscal years.

Human Resources (full-time equivalent – FTE)
2011-12 2012-13 2013-14
775 775 775

The human resources table above provides a summary of the total planned human resources for the Canadian Nuclear Safety Commission for the next three fiscal years.

Incremental funds of $13 million, and associated 75 FTEs, allocated for fee-exempt and non-cost recoverable (including nuclear security) activities are set to expire at the end of fiscal year 2010-11. The CNSC is working with the Government to ensure that it is resourced to fulfill its mandate.

Planning Summary Table

The following table summarizes the links between the CNSC’s strategic outcome, program activities, expected results and Government of Canada outcomes. It also includes planned spending by program activity:

Strategic Outcome: Safe and secure nuclear installations and processes used solely for peaceful purposes and public confidence in the nuclear regulatory regime’s effectiveness.
Performance Indicator Targets
Compliance rating of licensees Satisfactory or better in all Safety and Control Areas
Number of radiation exposures over the allowable dose limits Zero reported cases
Positive International Atomic Energy Agency (IAEA) Safeguards Conclusion Positive Annual Safeguards Broad Conclusion for Canada
Increased stakeholder confidence in the CNSC’s ability to regulate. Increasing trend in survey results over a three-year period, stable thereafter
($ thousands)
Program Activity1 Expected Results Forecast Spending
2010-11
Estimated Planned Spending2 Alignment to Government of Canada Outcome
2011-12 2012-13 2013-14
$ FTE $ FTE $ FTE $ FTE
Regulatory Framework A clear and pragmatic regulatory framework. 23,012 127 19,083 103 18,663 103 18,989 103 Social Affairs: A Safe and Secure Canada
Licensing and Certification Individuals, organizations and prescribed equipment that operate safely and comply with all regulatory requirements. 23,377 196 24,788 191 24,093 191 24,408 191
Compliance

High levels of compliance with the regulatory framework;

Nuclear substances, equipment and technology exported from Canada remain in peaceful use.

43,202 264 36,674 245 38,437 245 39,101 245
Internal Services Activities and resources administered to support the needs of programs and other corporate obligations. 40,985 254 37,719 236 38,519 236 39,216 236  
Total Planned Spending3 130,576 841 118,264 775 119,712 775 121,714 775  

1 For program activity descriptions, please access the Main Estimates.

2 Most costs incurred for the CNSC’s regulatory activities are recovered by the federal government from licensees under the CNSC’s Cost Recovery Fees Regulations (2003). In 2011-12, the CNSC projects to recover approximately $111 million in licence fees. Of the forecasted $111 million to be recovered from licensees, CNSC has authority to directly respend $88 million pursuant to Section 29.1(1) of the Financial Administration Act. The remaining $23 million is held centrally for costs associated with employee benefits, accommodations, health insurance and other expenditures that are directly paid for by central service providers and reimbursed by the CNSC.

3 Incremental funds of $13 million, and associated 75 FTEs, allocated for fee-exempt and non-cost recoverable (including nuclear security) activities are set to expire at the end of fiscal year 2010-11. The CNSC is working with the Government to ensure that it is resourced to fulfill its mandate.

Context

As a regulatory organization with a well-defined mandate, the CNSC has baseline planning work that is relatively consistent from year-to-year.

Seventy percent of day-to-day work is in the form of core regulatory activities to support the regulatory framework, licensing and compliance programs. Given the clear mandate of the CNSC, the fundamental nature of its work remains constant and its priorities are based on three main considerations:

  • completing licensing, certification and compliance work in accordance with regulatory requirements;
  • responding to unforeseen demands; and
  • undertaking initiatives to improve the effectiveness and efficiency of the organization.

The CNSC must also be ready to respond to challenges presented by external pressures and uncertainties. Indications of global and Canadian economic recovery, as well as the Government of Canada’s commitment to reducing Canada’s total greenhouse gas emissions, project a scenario where nuclear energy remains a critical part of the energy mix.

In Canada, some applications for new nuclear power plants were recently withdrawn. Nonetheless, licensees are moving forward with the refurbishment or life extension of existing nuclear power plants that the CNSC must license and regulate; the CNSC must also continue to prepare for new nuclear power facility projects. In this context, the Province of Ontario released in November 2010 Ontario’s Long-term Energy Plan which features $87 billion in total investments, of which $33 billion is earmarked for the future refurbishment of ten nuclear reactors and the construction of two new nuclear power plants at the Darlington site.

The CNSC remains ready to provide the necessary regulatory oversight related to the production of medical isotopes and to assess proposals for non-reactor produced isotopes. The CNSC continues to monitor progress and best practices in the field of nuclear waste management, particularly as they may apply to the proposed Deep Geologic Repository (DGR) and future Nuclear Waste Management Organization projects. Additionally, the CNSC will keep monitoring small reactor developments in anticipation of an emerging industry sector. As well, the CNSC always evaluates new emerging scientific methods in order to regulate industry efforts on waste management and reduce and recycle by-products arising from the fuel cycle or operation of reactors.

Internationally, a large number of new nuclear power plants are in the planning and construction phases. Any growth in the demand for nuclear energy, at home or abroad, also affects the entire domestic nuclear fuel cycle (from uranium mining and milling, uranium refining and fuel production to the management of nuclear waste), thereby driving the demand for more nuclear projects in Canada. The CNSC will maintain a state of readiness for future new projects, and will regulate all of these projects in an open, transparent and timely fashion.

Organizational Priorities

The CNSC undertakes work in support of its single Strategic Outcome. For 2011-12, the CNSC has the following priorities.

Program priorities

  • Execute core baseline licensing and compliance for over 2500 licensees across Canada’s nuclear sector.
  • Continue positioning a state of readiness for new nuclear facilities, particularly, new uranium mines and new nuclear power plants.
  • Continue regulatory oversight of nuclear power plant refurbishment projects (Gentilly-2, Darlington, Point Lepreau, Bruce A 1&2).
  • Undertake regulatory reviews of applications for licence renewals (Hydro-Quebec’s Gentilly-2, AECL’s Chalk River Laboratories/NRU, Cameco’s Port Hope Conversion Facility).
  • Provide regulatory oversight of refurbishment and restart of New Brunswick Power’s Point Lepreau Generating Station.
  • Continue regulatory oversight of the Port Hope Area Initiative (PHAI).
  • Ensure all licensees have an appropriate financial guarantee in place.
  • Develop a policy on fitness for duty requirements across the nuclear sector.
  • Implement new responsibilities as the single authority for environmental assessments of new nuclear projects.

Management priorities

  • Develop and implement a strategy for addressing funding requirements, including reviewing and amending the CNSC’s Cost Recovery Fees Regulations (2003).
  • Focus on becoming an Employer of Choice.
  • Implement Participant Funding Program.
  • Strengthen the CNSC’s Research and Evaluation functions.
  • Strengthening the CNSC’s regulatory program by completing CNSC Harmonized Plan of Improvement Initiatives for licensing and compliance:
    • Conduct of Technical Assessment; and
    • Conduct of Inspection.
  • As part of outreach efforts, emphasize the CNSC’s 65-year track record of overseeing a safe nuclear industry, and enhance the CNSC’s web presence.
  • Undertake review of performance indicators.

By continuing to design, document and implement foundation-level improvements, the initiatives will provide clarity in roles, responsibilities and regulatory requirements while assuring the CNSC’s regulatory capacity. Through the harmonization of all improvement initiatives under the Harmonized Plan, the CNSC aims to strengthen its regulatory effectiveness and improve overall efficiency to the mutual benefit of the CNSC, licensees and the Canadian public.

In completing these priorities, the CNSC will maintain its focus on its key ways of doing business: the Core + 4 Cs. In particular, the CNSC will focus on its Core work of Licensing and Compliance, and undertake specific initiatives presented in Section II – Analysis of Program Activities.

A brief summary of the “4 Cs” follows:

  • Commitment to ongoing improvements – “Always room for improvements.”

    This priority area includes completing initiatives under the Harmonized Plan, a set of internal improvements that respond to recommendations from past audits, lessons learned and peer reviews such as the Integrated Regulatory Review Service (IRRS), and preparing for an IRRS follow-up mission. It also includes ensuring that the health of Canadians and the safety of facilities are central considerations in all licensing and compliance activities through initiatives such as isotope contingency planning and assessing environmental concerns. This priority also encompasses improvements in corporate services and policies, including those identified through various audits.

  • Clarity of our requirements – “So everyone understands the rules.”

    This priority area centers on creating broad awareness among licensees, vendors of nuclear technology and proponents of the CNSC’s requirements stemming from the Nuclear Safety and Control Act, whether for refurbishments and life extensions or new projects (such as design reviews, joint review panels, etc.). Its other goals are revitalizing the CNSC’s regulatory framework; developing and updating regulatory documents and guidance, with particular attention to guidance for licence applications and environmental assessments; engaging government partners through the Major Projects Management Office; and continuing the implementation of the protocol for NRU licence renewal.

  • Capacity for action – “Ready to respond no matter what the situation.”

    This priority area focuses on ensuring the CNSC’s internal capacity (the right people, at the right time, doing the right things) to respond to changing events, all while fulfilling our mandate. The CNSC will continue its efforts to establish itself as a recognized Employer of Choice, and will underscore knowledge management in its retention and training initiatives. The CNSC will also maintain a sustainable financial management and internal control framework to respond to its regulatory activities. The organization is strengthening planning and operational processes, and is focusing on information management progress in key areas such as compliance reporting, inspection tracking/resolution and financial management.

  • Communications – “Accurate, clear, concise and timely.”

    This priority area aims to strengthen communications with the CNSC’s licensees, stakeholders, Aboriginal peoples, international counterparts, other government departments and central agencies, in accordance with the CNSC’s goal of being the best nuclear regulator in the world and its mandate to disseminate objective scientific, technical and regulatory information to the public about regulatory activities.

Risk Analysis

The CNSC has identified three key risks that may continue to affect its objectives:

Major Project Delays

Over the past few years, the CNSC developed and implemented an aggressive recruitment strategy, in anticipation of new major nuclear projects advancing in Canada. The CNSC adjusted its plans to respond to industry projections, including delays in the announcements of new nuclear power plants in Canada, as a result of the economic downturn. If such projects are further delayed or cancelled outright, cost recovery revenues could be significantly affected. The CNSC has initiated contingency plans to adapt to changes without compromising its capacity to meet its regulatory responsibilities.

Sunset Funding

At the end of 2010-11, 29% of the CNSC’s annual appropriation is scheduled to sunset. $13 million in incremental funding allocated to fee-exempt and non-cost recoverable (including nuclear security) activities are set to expire. The CNSC is working with the Government to ensure that it is resourced to fulfill its mandate.

Unforeseen Demands

An additional challenge that the CNSC faces is that of unforeseen demands (for example, public concerns over the transport of the steam generators through the Great Lakes that was the subject of public hearings in the fall of 2010), which can draw significantly on the CNSC’s financial and human resources that are otherwise allocated to planned regulatory activities. While the CNSC responds by revising plans and reallocating resources, moving forward, the CNSC will work to maximize efficiency in these instances.

Expenditure Profile

Funding of CNSC Operations

The CNSC’s operations are funded primarily from fees cost-recovered from licensees, pursuant to the CNSC’s Cost Recovery Fees Regulations (2003). The CNSC’s remaining resources are funded through an annual appropriation from Parliament.

For the 2011–12 fiscal year, the CNSC plans to spend $118 million to achieve the expected results of its program activities. Of this planned spending, the CNSC is requesting $30 million in total appropriation funding (annual and statutory Employee Benefit Plans) for CNSC activities related to:

  • fee-exempt applicants and licensees (such as hospitals and universities, and government funded remediation projects such as the Port hope Area Initiative);
  • fee-exempt applicants and licensees for activities such as:
    • production of non-reactor produced medical radio-isotopes;
  • activities in support of international obligations (including safeguards implementation and export control activities arising from Canada’s commitments pursuant to the non-proliferation of nuclear weapons);
  • outreach and stakeholder relations activities;
  • public responsibilities, such as emergency preparedness; and
  • ongoing oversight of the Nuclear Safety and Control Act and the associated regulations.

In 2006-07 and 2007-08, the Government approved additional resources for CNSC workload pressures associated with fee-exempt licensees and non-cost recoverable (including nuclear security) activities. This incremental funding will expire at the end of fiscal year 2010-11 and the CNSC is working with the Government to ensure that it is resourced to fulfill its mandate.

In 2009, the CNSC conducted a Strategic Review, as requested by central agencies, of the funding, relevance and performance of its entire program spending to ensure results and value for money. The CNSC identified program budget reductions for: the Canadian Safeguards Support Program; international travel and specific outreach activities. The Strategic Review is leading to a decrease of $1.5M in funding for fiscal year 2011-12.

In addition, the CNSC plans to collect an amount of $111 million from fee-paying licensees in accordance with the CNSC’s Cost Recovery Fees Regulations (2003) for regulatory activities including licensing, compliance and enforcement. Of this $111 million, $88 million is respendable by the CNSC. The balance is used to offset the costs of services provided by other government departments on behalf of the CNSC.

This picture illustrates the CNSC’s spending trend.

The figure above illustrates the CNSC’s spending trend from 2006-07 to 2013-14.

This picture presents the CNSC’s funding allocation by program activity.

Details on the expected results associated with these expenditures are provided in Section II – Analysis of Program Activities by Strategic Outcome.

Estimates by Vote

For information on the CNSC’s vote and statutory expenditures, please see the 2011-12 Main Estimates publication. An electronic version of the Main Estimates is available at http://www.tbs-sct.gc.ca/est-pre/index-eng.asp.