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Section II - Analysis of Program Activities by Strategic Outcome

Strategic Outcome

Strategic Outcome: Safe and secure pipelines and power lines built and operated in a manner that protects the environment and enables efficient energy markets.

Performance Indicators	Targets
Frequency of disabling injuries and pipeline failures	0 disabling injuries and 0 pipeline failures; assessed via reported incidents and year by year improvement
Frequency of major releases into the environment (Major release = greater than 100 m³ of liquid hydrocarbon)	0 releases; assessed via reported incidents and year by year improvement
Canadian energy and transportation markets are working well	Adequate oil and natural gas pipeline capacity in place based on pipeline utilization; similar Canadian and US energy markets have equivalent pricing; pipeline companies provide services which meet the needs of shippers

Successfully delivering on the targets under the NEB’s strategic outcome contributes to the safety of Canadians, the protection of the environment and efficient energy markets. The NEB works to achieve its strategic outcome through its two main program activities—Energy Regulation and Energy Information—which are supported by an Internal Services program activity. The following sections provide detail on these program activities, including expected results and the financial and human resources planned for each.

Program Activity: Energy Regulation

Human Resources (FTEs) and Planned Spending ($ millions)
2011–12		2012–13		2013–14
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
233.9	37.4	233.9	35.6	233.9	33.9

Program Activity Expected Results	Performance Indicators	Targets
The responsible development and operation of energy infrastructure NEB-regulated facilities and activities are safe and secure The environment is protected throughout the lifecycle of NEB-regulated facilities and activities Canadians benefit from efficient energy infrastructure and markets The rights and interests of those affected by NEB-regulated facilities and activities are respected	Companies have adequate and effectively implemented safety, integrity and environmental management systems and programs	100% of companies regulated by the NEB have safety, integrity and environmental management systems and programs in place
	Percent of planned compliance activities completed	100% of planned compliance activities are completed
	The Board’s regulatory processes are measurably efficient and effective	All NEB service standards for its regulatory services are met6
	Percent of planned financial regulatory audits completed	100% of planned financial regulatory audits are completed
	Stakeholders are satisfied with NEB processes, information and interaction	80% of stakeholders who provide feedback are satisfied with NEB processes, information and interaction

Program Activity Summary: This program provides the Canadian public, project proponents and other government agencies with regulation of international and designated interprovincial power lines; construction, operations, and tolls and tariffs on international and interprovincial pipelines; energy trade; and exploration and development in certain frontier and offshore areas. The companies that are regulated by the Board create wealth for Canadians through the transport of oil, natural gas and natural gas liquids, and through the export of hydrocarbons and electricity. As a regulatory agency, the Board’s role is to help create a framework which allows these economic activities to occur when they are in the public interest. The public interest is inclusive of all Canadians and refers to a balance of economic, environmental and social interests that change as society’s values and preferences evolve over time.

The Energy Regulation Program has two program sub-activities:

• Energy Regulation Development: This program sub-activity provides the regulatory expectations for applications and compliance with regulatory decisions. To make decisions in the Canadian public interest and to provide regulatory leadership that is responsive, proactive and innovative, the NEB must continually develop, improve and communicate regulations, regulatory and compliance tools, guidance, and processes. Related activities include developing and maintaining Memorandums of Understanding and workplans, providing regulatory and technical expertise through standards associations, and sharing best practices.

• Energy Regulation Implementation: This program sub-activity provides assessment and processing of regulatory applications submitted under the Acts administered by the NEB. It also provides regulatory oversight of energy infrastructure and markets through monitoring and enforcement activities. Responsibilities are pursuant to the NEB Act, COGO Act, CPR Act and the Canada Labour Code. Related services include stakeholder engagement and liaison, addressing landowner complaints, and facilitating appropriate dispute resolution.

Planning Highlights

To achieve the expected results, the NEB plans to:

Provide a clear and coherent regulatory framework by:

• Modernizing NEB regulations and guidance materials so that they are effective and efficient. This includes:
  
  
  • Improving the clarity of NEB filing requirements for applications by updating the NEB Filing Manual.
    
    
• Leveraging opportunities for legislative refinement with other departments and agencies and participating in regulatory improvement initiatives. This includes:
  
  
  • Conducting a public review of the safety and environmental requirements for offshore drilling in the Canadian Arctic.

Improve performance of regulated companies by:

• Measuring the performance of regulated companies and determining the need for regulatory action.
  
  
• Providing transparent, factual assessments of the regulated industry’s performance to the public.
  
  
• Reviewing and enhancing the NEB’s regulatory compliance programs. This includes:
  
  
  • Completing the Incident Reduction Project to examine linkages between the technical causes of pipeline failure and underlying management system deficiencies.

Provide timely regulatory decisions in the Canadian public interest by:

• Assessing applications and ensuring the continuous improvement of the application assessment process.
  
  
• Enhancing opportunities for stakeholders to effectively engage with the NEB. This includes:
  
  
  • Offering the Appropriate Dispute Resolution process more proactively as a tool to resolve outstanding issues.
    
    
  • Improving the quality of information available on the NEB website, including the Landowner’s Guide and the section on public participation.
    
    
  • Completing guidelines for landowners and companies on safe crossing practices on agricultural land.

Benefits for Canadians

Through the Energy Regulation Program, the NEB contributes to Canada’s energy future by deciding whether Canadian energy infrastructure projects are in the public interest. The Board makes these decisions within a regulatory framework that balances the environmental, social, and economic dimensions of facilities and related activities. This framework enables procedural fairness and streamlining in regulatory processes. Through its regulatory compliance programs, the NEB sets expectations for the regulated industry and holds it accountable for outcomes on behalf of Canadians. Ultimately, these activities make it possible for all Canadians to benefit from a safe, secure and reliable supply of energy.

Program Activity: Energy Information

Human Resources (FTEs) and Planned Spending ($ millions)
2011–12		2012–13		2013–14
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
31.4	5.0	31.4	4.8	31.4	4.5

Program Activity Expected Results	Performance Indicators	Targets
Timely, objective and independent energy information that enables informed decisions regarding energy markets and infrastructure	Feedback from internal and external clients on Energy Information Program products via questionnaires after workshops, comments cards with publications, interviews with clients	80% of feedback from clients indicates they find Energy Information Program products useful and relevant
	NEB website provides timely and relevant energy market information	5% increase in visits to content on the NEB website from the previous year

Program Activity Summary: This program provides the Board, industry, policy makers, and the Canadian public with energy industry and market surveillance, including the outlook for supply and demand of energy commodities in Canada, to assist in decision making regarding energy infrastructure and markets. This program informs Canadians on energy market developments and issues related to the Board’s regulatory mandate, which are primarily in the gas, oil and electricity market sectors, and under Part VI of the NEB Act by providing market analysis to determine whether Canadians are able to access energy at fair market prices.

Planning Highlights

The NEB will provide relevant, neutral and credible energy information by:

• Continuing to deliver the current suite of Energy Information Program products.
  
  
• Producing a new Energy Futures Report.
  
  
• Implementing a new Commodities Tracking System to track and report the export and import of energy commodities.
  
  
• Ensuring that Board Members and staff are informed of current and emerging issues in energy and related regulatory areas.

Benefits for Canadians

The goal of the Energy Information Program is to provide relevant, neutral and credible information on the energy industry and energy markets. The NEB uses its expertise to monitor markets to inform its Board Members and share this information with Canadians. Access to this expert knowledge helps policy makers, industry and the Canadian public make informed choices about energy options. Through its monitoring of energy exports, the Board determines whether exports are surplus to Canadian requirements and if energy markets are functioning properly, including whether Canadian energy users have access to domestically-produced energy on terms and conditions at least as favourable as those available to export buyers.

Program Activity: Internal Services

Human Resources (FTEs) and Planned Spending ($ millions)
2011–12		2012–13		2013–14
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
128.3	20.7	128.3	19.8	128.3	18.8

Program Activity Summary: 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. 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 Travel 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

To ensure the NEB has the capacity to effectively deliver on its mandate, the NEB will focus on the following activities:

• Proactively assessing and addressing current and emerging resource needs.
  
  
• Providing a positive workplace.
  
  
• Continuing to integrate and improve the effectiveness, consistency and efficiency of corporate processes, tools, and policies.
  
  
• Enhancing financial management and security practices.
  
  
• Assessing organizational information management needs.

Benefits for Canadians

These initiatives will have a positive impact on the overall effectiveness of other program activities at the NEB. The contribution of Internal Services to the strategic outcome of the Board is indirect, but critical.

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