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Section II: Analysis of Program Activities by Strategic Outcome

2.1 Strategic Outcome

The Canadian Nuclear Safety Commission has a single strategic outcome:

Safe and secure nuclear installations and processes used solely for peaceful purposes and public confidence in the nuclear regulatory regime’s effectiveness.

The following table summarizes the links between the CNSC’s strategic outcome, program activities, expected results and 2009–10 performance.

Strategic Outcome

Performance Indicators	Targets	2009-10 Performance
Compliance rating of licensees	Satisfactory or better in all safety areas	Met All The CNSC has produced a 2009 CNSC Staff Integrated Safety Assessment of Canadian Nuclear Power Plants. The report evaluates how well licensees are meeting regulatory requirements. CNSC staff assessments concluded that in 2009 all nuclear power plants in Canada operated safely. Details included the following for nuclear power plants: Staff found no serious process failures. Staff found no confirmed radiation doses above the regulatory limits. No environmental releases from the plants were above regulatory limits. Canada met its international obligations regarding the peaceful use of nuclear energy. In 2009, all nuclear power plants (NPPs) achieved integrated plant ratings of satisfactory or greater. Satisfactory is defined as follows: Compliance within the area meets requirements and CNSC expectations. Any deviation is only minor, and any issues are considered to pose a low risk to the achievement of regulatory objectives and CNSC expectations. Appropriate improvements are planned. The complete 2009 NPP report, along with comparable reports from previous years, is available at nuclearsafety.gc.ca.
Number of radiation exposures over the allowable limits	Zero reported cases	Not Met In total, there were four exposures in 2009–10 that exceeded regulatory limits, two involving Nuclear Energy Workers, and two involving non-Nuclear Energy Workers (members of the public). All involved the nuclear substances sector. In all cases, the licensee(s) conducted investigations to determine causes and to correct deficiencies. Pursuant to regulatory requirements, the affected individuals were given authorization to return to work by a CNSC Designated Officer, as required.
Positive IAEA Safeguards Conclusion	Positive Annual Attestation of Safeguards	Met All In 2009, Canada was once again successful in attaining a positive safeguards conclusion from the IAEA, providing the highest possible level of assurance that all nuclear material in the country remained in peaceful activities2. This conclusion is the ultimate indication of the CNSC’s success in implementing the requirements of Canada’s international safeguards commitments.

²IAEA conclusions are based on calendar years and therefore cover a slightly different period than the CNSC’s fiscal year.

Performance Analysis

As part of the CNSC’s day-to-day regulatory oversight of nuclear licences in Canada, the organization conducted nearly 2,000 inspections, assessed many licence applications, and issued renewals and amendments.

In the last year, the CNSC’s efforts focused on reviewing submissions regarding Ontario Power Generation’s proposed new nuclear power plant at its Darlington site near Bowmanville, Ontario. Submissions were for a Joint Review Panel process regarding the project’s environmental assessment and licence to prepare the site. Bruce Power Inc., in June 2009, made the decision to withdraw its two proposed new nuclear power plant (NPP) projects near Tiverton and Nanticoke, Ontario, which presented the CNSC with resource allocation challenges.

The CNSC continued to strengthen its regulatory framework and develop application guidance for new NPPs to ensure readiness should provinces choose to build new nuclear power plants.

On the international front, the CNSC continued to participate in the activities of the IAEA and the Nuclear Energy Agency. These provide opportunities to share best practices in nuclear safety and strengthen Canada’s commitments to non-proliferation and the peaceful use of nuclear materials.

The CNSC also worked with other government bodies last year to explore new ways to license the production of medical isotopes. In June 2009, the Government of Canada appointed an Expert Review Panel on Medical Isotope Production charged with reviewing submissions from the private and public sectors to supply much-needed medical isotopes for Canada. The goal was to enable the licensing of new sources of medical isotopes in a timely manner while ensuring the highest standards of safety and security.

The Integrated Regulatory Review Service (IRRS) peer review was conducted by a team of international experts with direct experience in the areas being evaluated. The mission assessed the organization, its governance, legislative framework, and its key program areas against international norms and best practices. The output of this exercise was a comprehensive report, prepared by international nuclear safety experts and published in the fall of 2009, on the performance of the CNSC as a nuclear regulator. The findings and management response will help the CNSC make further improvements to its regulatory regime.

IRRS improvements were included in the Harmonized Plan of Improvement Initiatives. The Harmonized Plan is a corporate, client-driven, improvement plan that integrates and aligns all cross-functional CNSC improvement initiatives into a single prioritized plan. It sets clear deliverables and assigns accountability to ensure that all commitments are met.

The following section describes the CNSC’s program activities and identifies the results achieved and lessons learned, including performance indicators and targets for each of them. This section also details the benefits for Canadians and includes the financial and non-financial resources that were dedicated to each activity for fiscal year 2009–10.

Program Activity: Regulatory Framework

Program Activity Description

Expected results: A clear and pragmatic regulatory framework

The Regulatory Framework program is in place to ensure that Canadians – and licensees in particular – have a clear and pragmatic regulatory framework for the nuclear industry in Canada.

This program activity includes efforts to develop and make amendments to those regulations (such as the regulations under the Nuclear Safety Control Act; regulatory and guidance documents, such as policies, standards and guides; the Safeguards Agreement and Additional Protocol between Canada and the International Atomic Energy Agency, and Canada’s bilateral Nuclear Cooperation Agreements) that protect the health, safety, security, and environment for Canadians, while implementing Canada’s international commitments on the non-proliferation of nuclear weapons.

The CNSC also administers the Nuclear Liability Act and, as a Responsible Authority under the Canadian Environmental Assessment Act, carries out environmental assessments for nuclear projects in accordance with this legislation.

The following tables align the Regulatory Framework expected results with their corresponding targets and performance status.

Program Activity: Regulatory Framework

2009-10 Financial Resources ($ thousands)			2009-10 Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
28,761	30,148	24,345	149	127	(22)

Performance Indicators	Targets	Performance Status and Summary
Satisfaction levels of stakeholders across key performance areas	Increasing trend in survey results over a three-year period, stable thereafter	Not applicable
Number of legal challenges to the regulatory framework	Minimal/declining number of challenges and/or high success rate of defending challenges	Mostly met In the last fiscal year, there was a legal challenge to the regulatory framework in the form of a judicial review of a decision of the Commission in the matter of a licence for a mining project, McLean Lake, Saskatchewan. A hearing will take place in 2010, in Saskatchewan, and the decision should be forthcoming in the fall.

Performance Analysis

The CNSC conducted outreach initiatives in communities across the country to engage with licensees, the public and other stakeholders on how it regulates areas such as uranium mines and mills, on the licensing process for new nuclear projects, and on our role in regulating the nuclear industry.

Regulatory and guidance documents were posted on the CNSC’s Web site nuclearsafety.gc.ca for consultation to provide a clear, transparent and risk-informed set of requirements for meeting the NSCA and other associated legislation and regulation. The CNSC also provided support for new nuclear projects and refurbishment work.

On the stakeholder engagement front, the CNSC engaged government partners through the Major Projects Management Office (MPMO) to ensure that the environmental assessments and regulatory review for six nuclear projects are carried out as effectively and efficiently as possible. Since signing the Memorandum of Understanding for the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects in August of 2007, the CNSC has participated in the development of the Government of Canada’s approach to consulting with Aboriginal groups for major resource projects. In 2009–10, the CNSC outlined and published its approach to Aboriginal consultation on its Web site, nuclearsafety.gc.ca, and undertook substantial work to strengthen our capacity in this area.

Canada was once again successful in attaining a positive safeguards conclusion from the IAEA, providing the highest possible level of assurance that all nuclear material in the country remained in peaceful activities³. This conclusion is the ultimate indication of the CNSC’s success in implementing the requirements of Canada’s international safeguards commitments.

An international review team found that Canada’s nuclear regulatory framework is mature and well-established and that the CNSC does an effective job in protecting the health, safety and security of Canadians and the environment.

Lessons Learned

As part of this program activity, the CNSC is currently benchmarking its regulatory program against those of other nuclear regulators, such as the United States Nuclear Regulatory Commission, and against the guidance issued by the IAEA.

The IRRS mission was a unique opportunity for international benchmarking as it involves an assessment by experienced regulators from many different countries. The final IRRS report outlined 19 best practices, and 32 recommendations and suggestions for improvement. The CNSC is taking action to address these findings.

The full IRRS report and the CNSC’s Management Response are available on the CNSC’s Web site, nuclearsafety.gc.ca.

Benefits for Canadians

This program activity ensures that the CNSC has a solid regulatory framework and that stakeholders are informed about the activities, policies, programs and role of the CNSC, and that they have an opportunity to ask questions and express their views. It provides objective scientific and technical information on the areas regulated by the CNSC and engages stakeholders by soliciting their input on regulatory issues to enhance the quality of the organization’s work and decisions. Licensees and government stakeholders (both domestic and international) are also appropriately informed about and consulted on the role, activities, policies, and programs of the CNSC.

³ IAEA conclusions are based on calendar years and therefore cover a slightly different period than the CNSC’s fiscal year.

Program Activity: Licensing and Certification

Program Activity Description

Expected results: Individuals and organizations that operate safely and conform to safeguards and non-proliferation requirements.

The Licensing and Certification program is in place to issue licences or certify persons or organizations to conduct nuclear-related activities in Canada.

With this program activity’s funding, the CNSC obtains evidence of the applicant and licensees’ ability to operate safely and comply with nuclear safeguards and non-proliferation requirements.

The CNSC undertakes this work to obtain assurance that nuclear activities and facilities in Canada are conducted with adequate provision for the protection of health, safety, security and the environment and the fulfillment of commitments to the peaceful use of nuclear energy.

The following tables align the Licensing and Certification expected results with their corresponding targets and performance status.

Program Activity: Licensing and Certification

2009-10 Financial Resources ($ thousands)			2009-10 Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
31,272	29,539	25,045	202	196	(6)

Performance Indicators	Targets	Performance Status and Summary
Number of licences issued as per service standards	Per external service standards	Mostly Met For details on the CNSC’s licensing activities, see the External Performance Standards table in Section III: Supplementary Information. In addition to the results provided in the External Performance Standards table, approximately 550 applications for export or import of nuclear and nuclear-related dual-use goods and technology were processed and assessed in fiscal year 2009–10. Approximately 160 applications for export of risk-significant radioactive sources (RSRS) were processed and assessed in fiscal year 2009–10. All bilateral Requests for Consents (RfC) and prior shipping notifications required pursuant to regulatory controls on exports and imports of RSRS were administered, consistent with service standards and bilateral commitments. Proposed amendments to the Nuclear Non-proliferation Import and Export Control Regulations were approved by the Commission and are anticipated to come into force early in fiscal year 2010–11.

Performance Analysis

In support of the expected result of individuals and organizations that operate safely and conform to safeguards and non-proliferation requirements, the CNSC assessed applications for, and issued and amended a number of licences and certificates pertaining to everything from uranium mines and mills, to transport licences, to imports or exports of nuclear material.

In 2009–10, the CNSC:

• Made nearly 2,600 licensing decisions
• Issued 112 new licences
• Renewed 533 licences.

The CNSC also participated in pre-project vendor design reviews to verify whether nuclear power plant designs respect Canadian safety principles and criteria:

• AECL – ACR-1000 design: Phases 1 and 2 have been completed. Phase 3 is currently underway and will be completed in the next fiscal year.
• AECL – EC 6 (Enhanced CANDU): Phase 1 was completed.
• Westinghouse – AP1000 design: Phase I has been completed.
• AREVA – EPR design: Preliminary work of the Phase 1 Review was started but is currently on hold, at the request of the vendor.

Executive summaries for completion of each phase can be found on the CNSC’s Web site, nuclearsafety.gc.ca.

Approximately 20 environmental assessments were active throughout the year, including three that were completed:

• Decision on Deloro Mine environmental assessment screening report
• Decision on Port Granby low-level radioactive waste environmental assessment screening report
• Decision on GE Hitachi environmental assessment screening report.

Also in December 2009, Cameco filed an application to extend the life of its Key Lake facility, including increasing its annual production of uranium oxide from 18 million to 22 million pounds. The joint regulatory process for this expansion is underway and will trigger a public environmental assessment jointly with the province of Saskatchewan. Additional information on EAs can be found online at nuclearsafety.gc.ca.

In response to the shortage of medical radioisotopes in 2009–10, many hospitals and medical clinics switched to alternative suppliers and types of radioisotopes. Because radioisotopes were identified as necessary for patient care, requests for licensing amendments to accommodate new suppliers for isotopes were given the highest priority. In all cases, such amendments were processed within 24 hours.

Lessons Learned

While the CNSC must maintain a strong, competent and independent ability to assess applications and make determinations about the qualifications of applicants and the quality of their programs, the organization is improving the coordination of regulatory activities with other federal regulators involved in the licensing of new major nuclear facilities through its participation in the Government of Canada’s Major Projects Management Office (MPMO). The CNSC fully supports the MPMO’s objectives and goals of improving the federal regulatory system for major natural resource projects. The CNSC will continue to work with its MPMO partners to coordinate regulatory activities related to major nuclear projects, and examine administrative, regulatory and legislative options to advance the principles of the MPMO.

In addition, to support the Government of Canada’s commitment to A Safe and Secure Canada, as well as to support the CNSC’s vision to be the best nuclear regulator in the world, the CNSC hosted an IRRS mission in 2009, to assess the organization, its governance, legislative framework, and its key program areas against international norms and best practices. The output of this mission was a comprehensive report, prepared by international nuclear safety experts and published in the fall of 2009, on the performance of the CNSC as a nuclear regulator. The findings and management response will help the CNSC make further improvements. It should be noted that one of the strengths identified by the IRRS team is the use by the CNSC of a risk-informed decision-making process within the licensing programs.

Benefits for Canadians

This program activity is central to meeting the CNSC’s mandate, by ensuring that applicants for licences and certificates fully meet the requirements of the NSCA and related legislation before they are permitted to engage in any activity with a nuclear component.

Canadians can feel confident that if the CNSC licenses it – it’s safe.

Program Activity: Compliance

Program Activity Description

Expected results: A high level of compliance by licensees with the regulatory framework.

The Compliance program is in place to ensure that CNSC licensees exhibit a high level of compliance with the CNSC’s regulatory framework. This program enables the CNSC to provide regulatory assurance to Canadians of the continuing compliance and safety performance of licensees.

The number of reviews of mandatory licensee reports does not generally vary from year to year. Over the past several years, a decision was made to shift limited resources on a risk-informed priority basis based on licensee performance; for example Type I inspections (more resource-intensive, complex program-based, on-site reviews) have been replaced with Type II inspections (point-in-time, program output-based reviews) where merited due to licensee historical performance.

In general, the high rates of industry compliance with the regulatory framework that the CNSC has observed can be directly and positively attributed to the CNSC’s visible, focused, flexible and varied verification program.

This program activity’s funding is used for the promotion of compliance, safety culture and common safety values, compliance audits, inspections, and enforcement actions.

The following tables align the Compliance expected results with their corresponding targets and performance status.

Program Activity: Compliance

2009-10 Financial Resources ($ thousands)			2009-10 Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
40,605	40,366	39,724	255	264	9

Performance Indicators	Targets	Performance Status and Summary
Degree/level of reconciliation between Canada and other countries of nuclear inventories subject to bilateral NCAs.	Targets set on an annual work planning basis	Met All All nuclear transfer notifications and reports required to be issued by the CNSC as a result of pending nuclear export and import authorizations and associated bilateral compliance procedures pursuant to Nuclear Cooperation Agreements (NCA) and corresponding Administrative Arrangements (AA) have been made. All Annual Inventory Reports (AIRs) for 2009 required to be submitted by the CNSC pursuant to requirements of bilateral NCAs and associated AAs have been issued; all AIRs received by the CNSC in fiscal year 2009–10 have been reviewed and issues requiring consultation with foreign counterparts identified for action by staff. A NCA between Canada and Jordan was signed in May 2009; the CNSC signed a bilateral (AA) with the Jordanian Nuclear Regulatory Commission in September 2009. In fiscal year 2009–10, the CNSC signed bilateral AAs on harmonization of export and import controls on radioactive sources with Argentina, Brazil and Japan. Throughout the fiscal year, the CNSC maintained and administered all notification, accounting and reporting procedures as required to implement and comply with the provisions of Canada’s bilateral NCAs and AAs.
Compliance inspections closed as per performance standards.	Per external performance standards.	Mostly Met For details, see the External Performance Standards table in Section III: Supplementary Information.
Adherence with Sealed Source Tracking requirements.	All on time, 100% match with Registry.	Met All All sealed sources accounted for. As of the end of 2009–10, there were 4,653 transactions, 7,987 sealed sources involved, 492 licences involved.
Nuclear material ‘ledger’ reconciliations between the CNSC and licensees.	Identical inventory records or reconciliation of nuclear material.	Met All Reconciliation is complete. The CNSC continues to maintain its timeliness commitments in reporting to the satisfaction of the IAEA. The CNSC is on track to achieve Canada’s best reporting timeliness record since 1999.

Performance Analysis

The CNSC conducted nearly 2,000 compliance inspections to ensure oversight of nuclear facilities. The CNSC also made further progress in developing its Sealed Source Tracking System, and the CNSC continues to maintain its timeliness commitments in reporting to the satisfaction of the IAEA.

In addition, the CNSC reviewed close to 2,600 Annual Compliance Reports provided by licensees. These reports contained detailed information on licensees’ operations over the course of the previous year. Information reviewed by CNSC staff in annual compliance reports includes statistics on occupational exposure to workers handling radioactive material.

Lessons Learned

The CNSC continually engages in discussions with international nuclear regulators to exchange lessons learned from their compliance programs and develop best practices. Compliance programs from other nuclear regulators (such as the United States Nuclear Regulatory Commission) are also regularly considered to gauge potential effectiveness. Nationally, the CNSC enters into arrangements with provincial authorities to effectively facilitate cooperation between regulators. A good example of this collaboration is the coordinated approach to the regulation of uranium mines and mills in Saskatchewan, whereby, through a Memorandum of Understanding, federal and provincial authorities work together to minimize duplication while ensuring that all regulatory requirements are verified.

In addition, the CNSC is currently working to shift the organization from expert-based to process-based. Key adjustments, through the Harmonized Plan for improvement initiatives, have been identified in order to further improve effectiveness and efficiency of site inspections, and increased investments are currently being made to improve information management tools used in support of activity planning, monitoring and reporting activities.

Efforts have also begun towards the development of a CNSC-wide Licensing and Compliance Tracking System to address the collection of all licensing and compliance activities in an effort to streamline the reporting of data on inspection results, action items and safety performance.

Benefits for Canadians

The CNSC can assure Canadians that its licensees are operating in compliance with their licences, regulations, and underlying legislation, as well as with bilateral Nuclear Cooperation Agreements.

Program Activity: Internal Services

Program Activity Description

Expected results: Activities and resources administered to support the needs of programs and other corporate obligations.

Internal services are activities and resources to enable and support program delivery and meet other corporate obligations of the Commission, as an agency of government.

These activities include: Management and Oversight (including Audits and Evaluations), Communications, Legal Services, Human Resources Management, Financial Management, Information Management, Information Technology, Real Property and Material Acquisition, and Travel and Other Administrative Services.

Internal services include only those activities and resources that apply across the organization and not to those provided specifically to a given program.

Program Activity: Internal Services

2009-10 Financial Resources ($ thousands)			2009-10 Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending4	Planned	Actual	Difference
42,093	44,802	49,238	234	254	20

⁴ Includes both Internal Services spending and the CNSC’s capital spending ($7.5 million for the Modernizing of Federal Laboratories, enhancement of system infrastructure and office accommodation) applicable to all Program Activities.

Performance Analysis

In the past year the CNSC successfully managed the effective transition to the full Revenue Spending Authority (RSA) funding regime, by streamlining and simplifying the current business processes. As planned, the CNSC also launched phase I of its planning, management and reporting system aimed at supporting financial planning, monitoring and other revenue management activities.

In order to support the CNSC’s goal to strengthen the tracking of regulatory commitment activities and improve communications, a number of investments in information management and information technology were made in 2009–10. Key initiatives include the:

• Implementation of a framework of guidance and policy documents to support electronic filing activities for licensees.
• Implementation of an alternate site to support critical information systems and strengthen our business continuity capability.
• Development of new systems to support the licensees’ compliance and tracking obligations - for delivery in 2010–11.

In 2009–10, in addition to implementing a standardized training program for inspectors and mandatory management training program, the CNSC made improvements to its executive performance management program, revised its orientation program for new employees, implemented action plans in response to issues identified in the 2008 Public Employee Survey and continued efforts to be an employer of choice.

Furthermore, to accommodate the growth in employees, the CNSC also completed, as planned, the re-fit and relocation of approximately 240 employees to its satellite office in Ottawa.

As an integral part of the CNSC’s Harmonized Plan, the CNSC reviewed and instituted specific internal service improvements to enhance delivery to program managers. In an effort to reduce the web of rules, corporate policy instruments were reviewed, simplified and consolidated where feasible and, where required, new policy instruments were introduced throughout the year.

Another key initiative realized in 2009 was the implementation of a new Audit Committee whose membership includes internal and external members, increasing provisions for enhanced accountability; this initiative is in line with the Office of the Comptroller General guidelines. Three external members were appointed, in 2009, to the CNSC Audit Committee whose role is to ensure that the President has independent, objective advice, guidance and assurance on the adequacy of the CNSC’s control and accountability processes.

Finally, the CNSC took measures to strengthen its evaluation function by reallocating resources and realigning the governance structure. The CNSC Management Committee also agreed to have the Executive Committee serve as the Evaluation Committee.

Lessons Learned

The organization conducted a full review of all of its programs as part of a Strategic Review in the summer of 2009, and in the fall of 2009 underwent its second Management Accountability Framework (MAF) assessment. While the majority of observations were positive, the CNSC will utilize the information provided and put in place corrective measures to address any deficiencies, and will continue to build on areas of strength. The Strategic Review identified some opportunities for improvement in the CNSC’s programs; these will be addressed in fiscal year 2010–11.

Benefits for Canadians

The above profile of Internal Services activity reflects a structure applied across government to support a common government-wide approach to planning, design, budgeting, reporting and communications of government internal services.

The Internal Services ensure that public programs operate efficiently and effectively.

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