DPR 2004-2005
National Energy Board

2.2  Goal 2

2.2.1  Context

The Board is committed to protecting the environment and respecting the rights of those affected by the construction, operation, maintenance and decommissioning of facilities it regulates. The NEB strives to achieve this goal by conducting environmental, socio-economic and lands assessments of applied-for projects; inspecting and monitoring construction activities; auditing environmental protection programs; ensuring regulated companies consult with landowners, tenants and affected parties regarding proposed facilities; and through considering all project phases (the project lifecycle ) in assessment and compliance.

As part of its Goal 2 commitments, the NEB continually aims to improve the effectiveness, efficiency and transparency of its own processes to meet the needs and expectations of Canadians.

2.2.2  Strategies

The NEB identified four strategies for Goal 2 in its 2004-2005 RPP:

• Reinforce goal-oriented regulation to improve industry’s ownership of environmental performance.
• Apply risk management techniques, improved tools and more efficient processes to environmental assessments.
• Anticipate and prepare for emerging environmental issues and upcoming applications.
• Promote coordination and partnerships.

2.2.3  Plans and Priorities

The NEB continues to use two key performance measures to ensure that NEB-regulated facilities are built and operated in a manner that protects the environment. They are:

• Percent of environmental conditions placed on NEB facility approvals that achieve their desired end results (DER).
• Number of major liquid hydrocarbon releases into the environment per year.

Percent of environmental conditions placed on NEB facility approvals that achievetheir desired end results (DER)

Environmental conditions are attached to project approvals to address specific environmental issues associated with a project. Each condition attached to an Order or Certificate has a defined DER. Once condition compliance is confirmed, the NEB assesses the effectiveness of environmental conditions by evaluating achievement of the DER. Achievement of the DER is confirmed through NEB inspections and project monitoring. Measuring the DER effectiveness of environmental conditions allows the NEB to improve the clarity and effectiveness of the conditions it places on facility approvals.

In 2004-2005, NEB staff confirmed that 130 conditions were effective in promoting environmental protection. This is 95 percent of all the conditions confirmed in that period (Figure 6).

The percentage of environmental conditions not achieving their DER has remained historically between about five to ten percent. Where possible, conditions that are not effective and do not resolve outstanding issues with the company are tracked. Ineffective conditions are flagged so they can be clarified before being used on future applications.

Figure 6: Achievement of Desired End Results for Environmental Conditions

Number of major liquid hydrocarbon releases into the environment per year

Major releases are defined as unintended or uncontained releases exceeding 100 m ³ of liquid hydrocarbon. The number of major releases of liquid hydrocarbon to the environment is a key indicator of the success of operating facilities regulated by the NEB. The desired target is that NEB-regulated facilities operating under approved conditions and permits should have no major releases to the air, land or water. There was one major release by NEB-regulated companies in 2004-2005 (Table 4).  This release was contained within the secondary containment of the plant.

Table 4: Major Releases to the Environment During Operation

2.2.4  Program and Results on Major Actions of 2004-2005

In its 2004-2005 RPP, the NEB identified five major actions to help deliver Goal 2 strategies.  These major actions, along with an additional major action (landowner complaint resolution process), and their results are discussed below.

1.  Implement process changes arising from amendments to the Canadian Environmental Assessment Act (CEA Act) and the new Species at Risk Act (SARA).

In the fall of 2004, several NEB staff took training on the online CEA Registry (Registry) from the Canadian Environmental Assessment Agency (CEA Agency) and now have the ability to input data into the Registry.  In addition, templates and guidance material have been developed to ensure that NEB environmental specialists know the information requirements and obligations of the Registry.

Also in 2004, the NEB developed an internal Guide to the NEB Comprehensive Study Process . The purpose of the Guide is to provide NEB staff with the guidance necessary to effectively and efficiently coordinate an approach to the comprehensive study process under the CEA Act.

In December 2004, after discussions with the CEA Agency, the NEB asked the Minister of the Environment to support a substitution agreement between the NEB and the CEA Agency ^[4] . The Minister declined, anticipating that more efficiency and procedural certainty would be brought to the federal environmental assessment process through "consolidation of federal environmental assessment", as outlined in the October 2004 Speech from the Throne. The NEB remains fully committed to continuous improvement of its regulatory processes, and looks forward to working with the CEA Agency as it leads the reform and consolidation of the federal environmental assessment process.

In 2004-2005, the NEB developed policies and procedures to ensure the NEB is in compliance with the SARA. For those applications to which SARA applies, a decision making framework was developed and endorsed by the Board. NEB staff were advised on the application of those policies and procedures.

As a result of these activities, the NEB has successfully implemented process changes in response to amendments to the CEA Act and SARA.

2.  Implement the revised NEB Filing Manual , environmental screening template and environmental issues briefing tool.

NEB Filing Manual

In April 2004, the NEB released the Filing Manual to provide guidance to companies preparing applications to the Board.  It sets out the filing requirements for applications to the Board, including but not limited to the requirements for environmental, socio-economic and lands assessments.  Industry, Aboriginal groups, government and non-government organizations were involved in the development of the Filing Manual , and the NEB arranged training in 2004 to help users become familiar with the document and the requirements and guidance that it contains.

Late in 2004, two new filing manual projects were initiated by the NEB to communicate its information requirements and expectations regarding electricity applications under the NEB Act and environmental matters for exploration and production applications under the COGO Act.  The projects involve adaptation of the NEB Filing Manual to address the specific requirements of electricity and COGO Act applications. 

Environmental Screening Template

The environmental screening template is an internal, up-to-date tool used to provide a consistent, high quality and transparent approach to environmental screenings under the CEA Act.  In 2004-2005, it was updated to reflect the new filing manual and changes to the CEA Act.

Environmental Issues Briefing Tool

The Environmental Issues Briefing (EIB) tool was created in 2003 as a way to identify focus issues using risk-oriented language. The NEB expects to use the tool in upcoming major projects and is developing consistent definitions for risk terms such as consequence and probability.

As a result of all of these efforts, the successful implementation of the revised NEB Filing Manual and screening template occurred in 2004-2005. Although the EIB tool has yet to be applied, it has been piloted and is ready for use when it is required.

3.  Identify key stakeholders in NEB environmental assessments, and measurably improve business relationships to enhance process efficiency and effectiveness.

In 2004-2005, the NEB identified two key stakeholders in relation to Goal 2 – environmental non-government organizations (ENGOs) and federal government departments. Initiatives in the reported fiscal year resulted in improved business relationships to enhance process efficiency and effectiveness.

ENGO Engagement Initiative

The ENGO Engagement Initiative was undertaken to identify ENGOs that may have an interest in NEB regulatory activity and to find out if, and how, they wish to be engaged by the NEB in the future. Project outcomes include a database of Canadian ENGO groups with an interest in the energy industry or NEB hearing involvement, and the development and delivery of a presentation about the NEB’s role and responsibilities to participants in two ENGO hosted northern oil and gas development courses in Calgary.

Federal Authority Initiative

In 2004-2005, development of the Federal Authority (FA) Initiative continued. Launched in 2003, the FA Initiative is expected to facilitate improved coordination and working relationships with other federal departments involved in environmental assessments carried out within NEB processes. The NEB has been using the results of the initiative to identify ways to improve coordination and communication with FAs and facilitate their involvement in Board processes.

One action for improvement that is being undertaken is a new Federal Government Participant (FGP) role for FAs within the NEB hearing process. The intention is to support all FAs in meeting their respective CEA Actresponsibilities, while protecting the integrity of the NEB process. The FGP role would work in tandem with the Federal Environmental Assessment Coordinator role to improve FA understanding of, and participation in, NEB hearings.  In addition to the new FGP role, FAs will still have the letter of comment, oral statement (if provided for in the Hearing Order), and full intervention as participation options available to them.

4.  Scan, evaluate and report on environmental drivers and emerging environmental issues.

The NEB wants to understand emerging technical and regulatory issues, so that the NEB’s regulatory efforts are proactive, strategic and efficient.  In 2004, an internal web-based issue tracker framework was piloted to engage NEB specialists in monitoring, analyzing, sharing and retaining knowledge on selected environmental, socio-economic and lands topics relevant to NEB planning. 

Reporting on environmental and socio-economic drivers and issues will occur in two ways.  First, all briefing notes derived from issue tracking and analysis will be available on the internal web system issue tracker tool.  Second, the Environment Professional Leader will ensure that information of significant strategic importance to the NEB is brought to the attention of Board Members and the executive in a timely manner.

If effective and efficient, the framework may be broadened to include other themes, including safety, engineering and economics.

5.  Identify and evaluate options to achieve goal-oriented outcomes in application assessments.

In 2004-2005, staff documented all processes and procedures under the NEB’s Quality Management System (QMS). The implementation of QMS in the NEB’s applications processes will assist in setting objectives, measuring and reporting results, reviewing effectiveness and continual improvement.

The NEB’s applications process will be part of the Integrated Compliance process (see section 2.1) which will ensure that information gathered during compliance audits and inspections is available to staff evaluating new applications. Further, information from the application stage will feed into the process and will be available to compliance staff.

Both the Quality Management System and the Integrated Compliance project will provide the data (e.g. measures and compliance information) that will help staff make progress toward goal-oriented outcomes in application assessments.

6.  Landowner Complaint Resolution Process.

Since 1999, the NEB has been systematically tracking landowner complaints and their resolution. Statistics from this initiative have been included in past DPRs as a mid-level environmental performance indicator. In 2004-2005, in response to external stakeholder needs and federal government service standard requirements, the landowner complaints process was evaluated, and a number of improvements were undertaken.  The resulting Landowner Complaint Resolution Program provides a consistent and timely process for resolution of landowner complaints. This program includes documented procedures, a process flowchart, continued complaints tracking, templated correspondence, service standards, an external stakeholder survey and the framework for measuring and improving all aspects of this program, including the NEB’s service standards (see section 2.4).