ARCHIVED - RPP 2006-2007
National Energy Board

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SECTION I – OVERVIEW

Chairman’s Message

I am pleased to present the 2006-2007 Report on Plans and Priorities for the National Energy Board (NEB or Board).

The NEB is a cost-recovered, independent federal agency whose purpose is to promote safety and security, environmental protection and economic efficiency in the Canadian public interest within the mandate set by Parliament in the regulation of pipelines, energy development and trade.  The main functions of the NEB include regulating the construction and operation of pipelines that cross international or provincial borders, as well as tolls and tariffs.  Another key role is to regulate international power lines and designated interprovincial power lines.  The NEB also regulates natural gas imports and exports, oil, natural gas liquids and electricity exports, and some oil and gas exploration on frontier lands, particularly in Canada’s North and certain offshore areas.  The NEB also provides energy information and advice by collecting and analyzing information about Canadian energy markets through regulatory processes and monitoring.  By constantly striving for excellence throughout this broad spectrum of activities, the NEB works hard to achieve its purpose of promoting safety and security, environmental protection and efficient energy infrastructure and markets in the Canadian public interest.

In delivering on its mandate, the NEB is guided by a strategic plan with clearly articulated goals and objectives.  Priorities for the strategic plan are identified through continual environmental scanning, which includes input from stakeholders interested in, and affected by, energy regulation.  Energy prices have hit record highs in the past year and indicators suggest they are likely to present challenges beyond the 2006-2009 planning horizon.  Energy markets are responding to this new reality.  As a result, this planning period will require the Board to develop and retain the capacity to respond to several, complex multi-billion dollar infrastructure applications while still delivering on the full spectrum of its activities, in an environment where the demand for experienced human resources is becoming increasingly competitive.

The Board’s role in regulation in this context is twofold.  First, we must protect the things that are important to Canadians: the integrity of the environment, respect of individual property; public safety and security; and effective market functioning.  Second, we must ensure Canadians have access to sufficient energy supplies by enabling the timely development of appropriate energy infrastructure for projects found to be in the public interest.  In order to fulfil our mandate in this complex, increasingly competitive environment, the NEB is addressing the following three priorities through our 2006-2009 strategic plan.

Our first priority is to provide a streamlined and efficient regulatory process.  Efforts will focus on integrated decision-making, cost efficiencies, effective public participation, and harmonized processes delivered through increased transparency and accountability.  In addition to continued emphasis on improvements to the flexibility and responsiveness of our own regulatory processes, renewed efforts with respect to cooperation and partnerships with other agencies engaged in the regulatory process will be applied.  The NEB is committed to introducing procedures in support of participant funding and to establishing the conditions under which it will be granted substitute authority for the Canadian Environmental Assessment Act thereby enhancing the timeliness and efficiency of the regulatory process while preserving the quality of the environmental assessment.  These initiatives are directly aligned with the Government of Canada’s Smart Regulation Strategy.

To ensure Canadians understand our rapidly changing energy environment, and that policy makers have access to independent, objective energy advice, our second priority is to inform Canadians on regulatory and energy related matters in a timely and relevant manner.  Feedback from all stakeholders representing energy interests across Canada has shown us that the Board provides considerable value to Canadian decision makers through the integrity, independence and objectivity of the information and analysis it provides.  Our commitment is to continue to provide energy information and advice that will effectively inform energy policy discussion and decision-making in Canada.

Our third priority, to enhance the NEB’s capacity and culture, is critical to delivering on our first two priorities.  The period covered by this strategic plan will present significant challenges to the Board’s ability in the Calgary labour market to recruit, develop, and retain the technical and analytical expertise that is essential to deliver our expected business results.  In this environment of high demand for expertise throughout the energy sector, the NEB will require the support of central agencies to define and implement strategies that may require enhanced flexibility as a cost-recovered separate employer or special operating agency.

In our 45 years of providing energy advice and monitoring Canada’s energy market, we have listened to and recognized the needs of stakeholders from industry, public, NGOs and fellow regulatory agencies.  The Board works hard to ensure that its decisions appropriately balance and integrate these views to arrive at decisions that are in the Canadian public interest.  While this planning period will present significant challenges to the Board I am confident, if we are successful in resolving issues of capacity and delivering on this strategic plan, that Canadians will continue to benefit from the tremendous endowment of energy resources they possess.

Management Representation Statement

I submit for tabling in Parliament, the 2006-2007 Report on Plans and Priorities (RPP) for the National Energy Board.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2006-2007 Estimates: Report on Plans and Priorities and Departmental Performance Reports: 

• It adheres to the specific reporting requirements outlined in the TBS guidance;
• It is based on the department’s approved Program Activity Architecture as reflected in the Management Resources and Results Structure;
• It presents consistent, comprehensive, balanced and reliable information;
• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
• It reports finances based on approved planned spending numbers from the Treasury Board Secretariat.

Kenneth W. Vollman
Chairman

Summary Information

The Board’s corporate purpose is to promote safety and security, environmental protection and efficient energy infrastructure and markets in the Canadian public interest[1] within the mandate set by Parliament in the regulation of pipelines, energy development and trade.

The NEB is an independent federal agency that regulates several aspects of Canada’s energy industry.  Its purpose is to promote safety and security, environmental protection and economic efficiency in the Canadian public interest within the mandate set by Parliament in the regulation of pipelines, energy development and trade.  The main functions of the NEB include regulating the construction and operation of pipelines that cross international or provincial borders, as well as tolls and tariffs.  Another key role is to regulate international power lines and designated interprovincial power lines.  The NEB also regulates natural gas imports and exports, oil, natural gas liquids (NGL) and electricity exports, and some oil and gas exploration on frontier lands, particularly in Canada’s North and certain offshore areas.  The NEB also provides energy information and advice, by collecting and analyzing information about Canadian energy markets through regulatory processes and monitoring. 

The main functions of the NEB are established in the National Energy Board Act (NEB Act).  The Board has additional regulatory responsibilities under the Canada Oil and Gas Operations Act (COGO Act) and under certain provisions of the Canada Petroleum Resources Act (CPR Act) for oil and gas exploration and activities on frontier lands not otherwise regulated under joint federal/provincial accords.  In addition, 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 facilities regulated by the Board.

The NEB is an independent regulatory tribunal established in 1959.  The NEB reports to Parliament through the Minister of Natural Resources.  The Board is a court of record and has certain powers of a superior court of record including those with regard to compelling attendance at hearings, the examination of witnesses under oath, the production and inspection of documents, and the enforcement of its orders.  The Board's regulatory decisions and the reasons for them are issued as public documents.

The NEB’s regulatory responsibilities for public safety, security and protection of the environment are set out in the NEB Act and the COGO Act.  The NEB is also required to meet the requirements of the Canadian Environmental Assessment Act (CEA Act)and the Mackenzie Valley Resource Management Act where the Board's environmental responsibilities span three distinct phases: evaluating potential environmental effects of proposed projects; monitoring and enforcement of terms andconditions during and after construction; and monitoring and regulation of ongoing operations, including decommissioning.

The sections of the Public Safety Act, 2002 (Bill C-7) amending the NEB Act came into force on 20 April 2005 (through an Order of the Governor General in Council).  The amendments provide the NEB with clear legislative authority for the security of pipelines and international power lines.  The NEB has amended its corporate purpose statement to include the word security to reflect the amendments made to the NEB Act. 

The Board’s mandate also includes the provision of expert technical advice to the Canada-Newfoundland Offshore Petroleum Board (C-NOPB), the Canada-Nova Scotia Offshore Petroleum Board (C-NSOPB), Natural Resources Canada (NRCan), and Indian and Northern Affairs Canada (INAC).  The Board may, on its own initiative, hold inquiries and conduct studies on specific energy matters as well as prepare reports for Parliament, the federal government and the general public.  The NEB Act requires that the Board keep under review matters relating to all aspects of energy supply, production, development and trade that fall within the jurisdiction of the federal government.  In addition, the Board provides advice and carries out studies and reports at the request of the Minister of Natural Resources.

Additional information on the background and operations of the NEB may be found at the Board’s Internet site:  www.neb-one.gc.ca.

Financial Resources (million $)

2006-2007	2007-2008	2008-2009
37.9	38.5	38.5

Human Resources (Full-time equivalents)

2006-2007	2007-2008	2008-2009
305.1	307.6	307.6

Departmental Priorities

	Type	Planned Spending (million $)
		2006-2007	2007-2008	2008-2009
Regulatory framework	Previously committed to	4.7	4.7	4.7
Energy information	On-going	1.9	1.9	1.9
Capacity and culture	Previously committed to	1.2	1.3	1.3

Departmental Plans and Priorities

The Board’s vision is to be an active, knowledgeable partner in the responsible development of Canada’s energy sector for the benefit of Canadians.

Operating Environment

The NEB follows an annual strategic planning cycle.  The formal process begins with an analysis of external influences, including societal and economic trends.  As part of this environmental scan, the NEB invites a cross-section of stakeholders interested in energy regulation to attend meetings and share ideas.  The environmental scan is followed by the development of long-range strategic goals, resource, budget and work planning, performance measurement and reporting processes.  The plans that are established are regularly updated throughout the year as required.

In establishing the priorities for 2006-2007, the NEB considered evolving trends, risks and challenges that might influence how it carries out its responsibilities and delivers results to Canadians.  A few of these important developments are discussed below.

Energy Market Context

Energy prices hit record highs in the last year.  World oil prices climbed to unprecedented levels, at least in nominal dollars, reflecting significant demand growth and limited spare production and refining capacity.  Weather related events were also a major factor.  The price of benchmark West Texas Intermediate crude oil rose through to the end of August, peaking in the $US70 per barrel range, following the supply losses from Hurricane Katrina.  By year-end 2005 prices retreated to $US60 and are expected to remain strong in 2006.

Natural gas prices were strongly influenced by the price of crude oil and the loss of supply from the Gulf of Mexico, with the Henry Hub benchmark increasing through the year to the $US6-$7 per million BTUs in the January-February period to the $US12-$14 range toward year-end. 

Canadian energy consumption has been steadily increasing over the past decade driven by economic growth and population increase.  High prices send important signals to energy users to economize on their consumption, and to energy producers to find and develop new sources of energy.   However, the consumer response is complex, and tends to play out over a long period of time.  In the short-term, Canadians are experiencing increased heating and transportation costs and the Board will be challenged to increase the quality of information provided to the public on the functioning of energy markets.

The high price energy environment is encouraging industry to develop new and unconventional sources of oil and natural gas to meet Canada’s future energy needs.  For its part, the exploration and production sector in Canada has responded. Over 24,000 oil and natural gas wells were drilled in 2005 and the sector invested close to $40 billion in developing new supply sources, including oil from the oil sands in Alberta. With vast reserves in the oil sands and the development off the coast of Newfoundland, Canada is steadily increasing its oil production. Total Canadian oil production is expected to increase on the order of 10 percent by year-end 2006 and gas production is expected to increase less than one percent.

Canada recently became the number one exporter of crude oil to the United States and it is expected that Canadian exports will grow as production from the oil sands steadily grows over the coming decade. Considerable new investment in the pipeline transportation sector is required to transport the growing production to markets.  The producing sector will have to make choices as to which markets it wishes to access as options include the U.S. south and mid-west markets, California and Asian markets that could be accessed via a pipeline to the west coast.

Canadian gas production is expected to increase slightly over the next few years as declining conventional gas production is more than offset by robust growth in natural gas from coal bed methane (CBM, also called natural gas from coal, or NGC). The resource base for CBM is large so there are grounds for optimism about future supply, but the outlook for production beyond a couple of years is still uncertain.  The industry is attempting to develop frontier natural gas sources in the Mackenzie Delta and the Board has an application before it to build a major pipeline from the Delta down the Mackenzie Valley to markets in the south.

Recognizing that traditional sources of North American gas supply are unable to keep pace with the expected future growth in demand, there is growing momentum behind the development of northern gas and liquid natural gas (LNG) receiving terminals.  Two LNG proposals, one in Nova Scotia and one in New Brunswick, received provincial site approvals during the last year. Other projects are being planned for Quebec. As well, options to expand infrastructure, such as storage and pipeline capacity, are being examined to balance the market.

In Canadian electricity markets a key issue is the concern about the adequacy of electric generation especially in the post-2007 period. An important trend is the emphasis on green and renewable resource development, but it is recognized that emerging technologies such as wind, small hydro and biomass can only be part of a diversified solution to address the challenges in achieving supply/demand balance. Furthermore, even these technologies, which may be attractive from the environmental standpoint and addressing longer term issues such as climate change, often face the same challenges as conventional technologies in obtaining siting approvals and grid access. Thus proposals for large hydro developments are being revisited, which implies expanded regional trade and potentially significant additions to long-distance transmission capacity. New nuclear capacity, as well as refurbishments, is also being considered.

In summary, industry is responding to the tight market situation by developing new large infrastructure projects, including oil pipelines, natural gas pipelines, LNG receiving terminals and power generation and transmission facilities. These projects could bring additional energy supplies to Canadians and help ensure future energy security.  The NEB is responsible for reviewing many of these infrastructure projects and ensuring that, when they are found to be in the public interest, they proceed in ways that provide the greatest benefits to Canadians while minimizing any adverse impacts.  In this context, there are a number of challenges with the current regulatory system that require solutions to ensure fair and effective regulatory processes.  These challenges include providing a clear regulatory framework and modern tools, ensuring effective participation in regulatory processes, and maintaining the capacity to deliver in these areas.

Regulatory system

The NEB’s mandate is to promote safety and security, environmental protection and economic efficiency in the Canadian public interest within the mandate set by Parliament in the regulation of pipelines, energy development and trade.  Under this mandate, the Board’s role is to both protect and enable in the public interest.  In its enabling role, the Board meets its mandate through providing a clear regulatory framework and efficient regulatory processes and practices so that projects found to be in the public interest can proceed on a timely basis.  At the same time, the Board must protect the things that are important to Canadians: the integrity of our environment, respect for individual property; public safety and security, and effective market function.

The Speech from the Throne 2004 conveyed the federal government commitment to smart government, which includes a “transparent and predictable regulatory system that accomplishes public policy objectives efficiently while eliminating unintended impacts”.  The External Advisory Committee on Smart Regulation’s (EACSR) 2004 report provides an outline for moving forward with a smart regulation strategy including principles and recommendations for improving the regulatory system.  One of the key recommended elements is regulatory cooperation in order to create a more seamless regulatory environment in Canada.  The NEB is continuing to operate on principles in line with those put forward by the EACSR including both protecting and enabling; more responsive regulation; and supporting interjurisdictional cooperation.

In the energy context, investors in major infrastructure projects look for clear and predictable regulatory processes in order to proceed with their investments.  Stakeholders in energy system development look for simple, easily accessible processes to provide input as energy related projects come forward.   A key challenge in the Canadian regulatory framework context for energy systems is jurisdictional fragmentation.  For example, there are fourteen agencies with some type of regulatory authority with respect to the proposed Mackenzie Gas Pipeline. Similarly, a number of provincial and federal agencies have legal mandates to review elements of applications for offshore facilities and LNG terminals.  Another example is the conduct of NEB and Canadian Environmental Assessment Agency (CEA Agency) legislated responsibilities with respect to environmental assessments of federal energy projects.  This substantially increases the complexity in taking integrated decisions, in the Canadian public interest, that consider all relevant environmental, operational, social and economic factors.

The NEB is moving forward to provide regulatory clarity by outlining processes within its regulatory framework through its quality management system.  The NEB continues to participate with other regulators and environmental assessment boards and agencies on initiatives to simplify regulatory processes and enable integrated decision-making.  For example, the NEB is working actively with the CEA Agency to select a pilot for the Board processes to substitute for the environmental assessment process as provided for under the CEA Act.

Further to providing a clear regulatory framework, and supporting smart regulation, the NEB is continuing a number of initiatives over the next planning period.  The Board continues to implement a goal-oriented approach to regulation as it reviews and updates its regulations and guidelines.  With respect to risk-based approaches to regulatory oversight, the NEB is continuing to implement an integrated compliance system which will enable effective risk-based decision-making related to safety, security and environmental protection.  This approach spans the entire life-cycle of facilities, from design and assessment through construction, operations and eventual abandonment.  The integrated compliance approach builds on the regulated pipeline companies’ response to goal-oriented regulation, which has been to develop, or strengthen, their existing internal management systems.

Northern Exploration and Development

Regulatory processes to review the proposed Mackenzie Valley Pipeline are underway.  If approved, that project could be constructed within the next few years, requiring extensive regulatory oversight.  In addition, interest in a possible gas pipeline from Alaska remains strong.  In both cases, coordination between a range of agencies and effective engagement of local communities are priorities.  The Board is actively considering the potential for a permanent presence in the North during the construction of these major projects should they be approved.

In addition to pipeline infrastructure in the North, the NEB regulates frontier exploration and production.  To support a clear, efficient regulatory framework in all areas under its mandate, the NEB has recently completed an independent evaluation of its frontier exploration and production regulatory function.  NEB clients and stakeholders in the North are strongly of the view that the legislative framework within which they work, based on the CPR Act and the COGO Act, needs to be revised and modernized. Streamlining of regulations in the North can be achieved to a certain point, and the Board is working toward that goal.  However, some amendments to three acts (NEB Act, COGO Act, CPR Act) are required, and efforts to modernize that regulatory framework will be a priority in this planning period. 

Effective participation in NEB processes

The NEB’s mandate is to protect Canadian interests associated with major energy infrastructure projects, including environmental, social and economic interests, as well as to enable responsible energy infrastructure development.  The Board requires effective input from affected citizens and interest groups in order to ensure that it can render decisions that best capture the interests of Canada. 

Public proceedings for federally regulated energy infrastructure may involve a wide range of stakeholders, including landowners, the general public, aboriginal communities, non-governmental organizations, energy producers, shippers, distributors and users.  However, the NEB is one of the only major regulatory agencies in Canada that has no legal authority to grant intervenor funding to participants in its public hearing processes.

Another challenge for the Board is in understanding how the evolving law on aboriginal consultation affects its role as an arm's length quasi-judicial tribunal. The courts have not yet provided clear guidance on the impact of the principle of the honour of the Crown on independent tribunals. The Board will continue to monitor legal developments in this area and in the meantime will continue in its efforts to ensure that it has information regarding aboriginal interests that may be affected by proposed projects before rendering decisions that may affect those interests.

Recruitment and retention of skilled knowledge workers

The NEB faces an increasing challenge to recruit and retain staff in Calgary’s extremely competitive employment market, with the demand for skilled knowledge workers escalating rapidly throughout the entire energy sector.  In addition, the activation of new areas of energy development, such as liquid natural gas on the coasts and geotechnical work in the North, requires the recruitment of skilled staff to support NEB regulation in these areas.

The energy industry is experiencing increasing growth and is actively competing for individuals with the same technical skill sets that the NEB requires.  As the demand for the technical skills tightens, the NEB finds that it is unable to compete with the responsiveness of the private sector in offering competitive wages and benefits.  The Board’s rate of attrition due to industry’s active recruitment across the energy sector at the mid and senior levels is increasing.   The Board is also competing with the private and public sector for the scarce resources graduating from post secondary institutions. 

In addition, the NEB faces the same challenges as many other government departments and private sector companies with respect to demographics.  The NEB has an aging staff complement with many impending retirements, which means that key staff expertise will be lost over the next few years. 

The NEB’s requirement to attract to Alberta and retain employees with sound technical skills who are also effective in both official languages adds to the significance of the challenge.

In response to these increasing attrition rates, and recruitment and retention challenges in the current labour market for skilled employees throughout the oil and gas sector, the NEB has identified Human Resource capacity as a critical issue over the next planning period and will be working with central agencies to redress this significant issue.

Priorities

Improve the regulatory framework.

In carrying out its mandate, the Board has a role to both protect and enable in the Canadian public interest.  Key to fulfilling this role is the continuous improvement of the regulatory framework to set out clear regulatory rules and efficient processes that respect Canada’s strategy on Smart Regulation. Through this approach the regulatory proceedings for projects found to be in the public interest will operate efficiently and proceed in a timely basis.  The Board is working to improve its regulatory framework while ensuring that the environment is protected, individual rights are respected, public safety and security are ensured, and efficient market function is supported.

Transparent and efficient regulatory processes are important factors in supporting integrated decision-making, cost efficiencies, effective public participation, and clarifying jurisdiction.  Regulatory streamlining, reducing jurisdictional fragmentation and simplifying processes require the cooperation and commitment of other agencies who can be held equally accountable to improve overarching processes on behalf of the Canadian people. Also, integrated and balanced decisions require effective and accessible public participation processes.

Aligned with the smart regulation initiative, the NEB is continuing with its goal-oriented approach to regulation and oversight, and the development and implementation of a risk-based integrated compliance system.  The NEB is working to improve regulatory tools and processes that can be adapted to the needs of each case while preserving transparency, accountability and responsiveness. 

Plan to Achieve Priority

Through its quality management system, the NEB is consolidating its regulatory framework to provide clarity on the “how and what” of its mandate, and to enable efficient and responsive regulatory processes.  The regulatory framework contains a regulatory philosophy, tools and instruments.  Tools include a decision-making framework for determining the best fit between a given process and regulatory instruments, including Appropriate Dispute Resolution, Guidelines for Negotiated Settlements, and the NEB’s Hearing Toolkit. To support effective stakeholder engagement in harmonized regulatory processes, the NEB will be pursuing options for participant funding.

To achieve regulatory streamlining, the NEB is working with other regulatory agencies and government departments to develop environmental assessment harmonization agreements in order to minimize duplication of efforts and to ensure that the regulatory process meets expectations.   The NEB continues to pursue substitution[2] as a means of demonstrating integrated decision making that allows for single-window environmental assessments and execution of the regulatory aspects of is mandate.  To facilitate regulatory harmonization that delivers fully integrated decisions through a single window, the NEB will evaluate options and develop a regulatory submission in support of participant funding. 

To meet the need to modernize the regulatory framework for the North, recommendations for revisions to the CPR Act and the COGO Act will be developed, for delivery to process owners (NRCan and INAC).   For public and aboriginal engagement in the North, the NEB will conduct a needs assessment to provide a basis for developing regulatory processes resulting from applications in the North.

Performance Indicators

• NEB regulatory framework consolidated
• Participant funding options reviewed
• Public engagement needs for the North assessed
• Recommendations proposed for revisions to the CPR Act and COGO Act
• Framework and agreements for substitution developed
• Project specific environmental assessment harmonization agreements completed

Inform energy policy debate.

The Board is required to monitor and regularly report on Canadian energy markets pursuant to Part II of the NEB Act.  In addition, the Board must stay abreast of energy market developments in order to fulfil its role as an expert energy regulatory tribunal.  The Board must have a thorough understanding of the markets that it affects through its decision-making.

In 2003, the Board conducted a comprehensive review of its role in providing energy market information and analysis to Canadians.  Last year, the Board conducted a regulatory improvement workshop at which it received feedback from a wide spectrum of parties representing energy interests across Canada.  The feedback from these and other fora is that the Board provides considerable value to Canadian decision makers through the integrity, independence and objectivity of the information and analysis it provides.  Many parties believe that the Board is uniquely positioned to provide timely and relevant advice on regulatory and energy related matters to assist policy makers in the conduct of their duties.

Given the current high price energy environment and need to develop new energy supply sources, Canadians in both the public and private sectors are required to make choices about energy sources for the future.  The electric power sector must make decisions about which energy sources to invest in, oil producers about which markets to target, governments about which technologies to invest in, and consumers about which vehicles and home heating systems to purchase.  Through its regulatory mandate, the Board maintains expertise and knowledge about energy in Canada.  To ensure Canadians understand our rapidly changing energy environment, and that policy makers have access to independent, objective energy advice, the Board will continue to undertake its activities in this regard as one of its main priorities.

Plan to Achieve Priority

The NEB produces a number of reports, known as Energy Market Assessments (EMAs), which provide Canadians with an update on developments and key issues in specific energy markets.  These include reports on electricity, natural gas and oil markets, oil and natural gas supply, the long-term outlook for Canada’s energy future and topics such as emerging technologies.  In order to better inform Canadians on regulatory and energy related matters, the Board is undertaking a number of initiatives.  A variety of information products and communications services will be developed to meet stakeholder needs and to support informed decision-making.  The Board will also respond to opportunities to promote discussion of short and long-term issues affecting Canada’s energy future.  In order to launch its next study of Canada’s energy future, the Board will undertake a cross-country consultation with stakeholders across energy sectors.

Performance Indicators

• Feedback from users of energy market information products
• Input received from stakeholders regarding Canada’s energy future

Enhance NEB capacity and culture.

The NEB is widely recognized as a knowledge-based organization and is working hard to create and reinforce a results-based culture of excellence.  By investing in and challenging our people, we seek to establish their commitment and loyalty which is essential to achieving our mandate.  As energy prices hit and sustain record highs in response to the global demand for energy, competition for experienced human resources throughout the Canadian energy sector, especially in Calgary, is reacting accordingly.  We are already becoming increasingly challenged to recruit and retain qualified personnel.  The importance to Canadians of the work performed by NEB staff clearly substantiates the need for a skilled, knowledgeable workforce. Given this environment in which we will continue to operate, the ability to attract, develop, and retain technical and analytical expertise will be critical to our success.

The NEB has implemented a number of initiatives to foster a results-based approach including an ISO-based integrated management systems framework, a knowledge exchange function, a 360 degree results-based performance management system, leadership training, and employee development plans.  In addition to continued effort in all areas the NEB will engage central agencies to define strategies designed to ensure that the NEB has the necessary capacity to fulfil its mandate.

Plan to Achieve Priority

In order to maintain the necessary capacity to meet the organization’s mandate, the NEB will continue implementing its People Strategy, a long-term human resource plan.  This three year rolling human resource plan is integrated with the NEB’s business plan.  One of the People Strategy’s key priorities is attracting and retaining highly qualified people.  A critical step being taken to meeting this priority is the identification and resolution of capacity gaps arising within the planning horizon, including bilingual capacity and appropriate representation.  As the People Strategy is implemented, the NEB will also continue to advance organizational learning to better meet current and future business needs, and to improve mechanisms to share knowledge more effectively.

To ensure the delivery of effective processes, the NEB will continue to improve its quality management system by improving its performance measurement and improvement processes, and by coordinating work to bring several key processes to an audit ready stage under the provisions of ISO 9001.

To meet the Government of Canada’s Management of Government Information Policy and to support the NEB’s quality management system, the NEB will complete the design of its records management program, and commence implementation and training.

Performance Indicators

• Strategic HR plan is revised and implemented
• Central agencies engaged to resolve the NEB’s capacity challenges
• Quality management system is ISO certified and operational

 

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