ARCHIVED - Canadian Nuclear Safety Commission

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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. Canadians have benefited from a safe nuclear industry since 1946, supported by effective regulation. Our aim is to continue to oversee the orderly and safe evolution of this sector and its activity.

The recent global economic downturn slowed short-term growth in worldwide and domestic demand for energy. This had an impact on some of the planned new projects by the Canadian nuclear industry that would be regulated by the CNSC. Now, there are promising signs of economic recovery, both here at home and abroad. This recovery, along with long-term energy demand projections, suggests by renewed interest in nuclear energy as a clean energy source in addressing climate change. While the CNSC prepares for tomorrow, it must remain vigilant in keeping Canada's facilities safe today.

The CNSC is entrusted with an important 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.

The CNSC regulates all aspects of the Canadian nuclear sector, from mining to energy production, waste management and medical applications. The CNSC is responsible for regulating 22 nuclear power plants, 10 nuclear research facilities, six uranium mines – supplying 25% of the world's supply – and more than 25 legacy and waste sites. The CNSC is also regulating the early stages of some major projects, namely a new nuclear power plant at Darlington and a Deep Geologic Repository in Ontario for low- and intermediate-level waste. It carries out regulatory oversight of more than 3,000 licences in Canada while carrying out over 2,000 inspections and assessing many licence applications, renewals and amendments each year.

The CNSC fulfills its mandate through its dedicated and skilled scientific, technical and corporate specialist staff, responsible for implementing the decisions of the Commission and verifying compliance with licences and regulations; reviewing licence applications and performing environmental assessment review work; and engaging citizens through community outreach activities.

The CNSC is vigilant in regulating the nuclear sector and strives to keep the public informed of progress in its mandate areas of interest to Canadians, such as the National Research Universal reactor and the annual performance of our nuclear power plants and uranium mines. Attention will continue in these areas for the coming year.

In the past year, the CNSC held 11 licensing hearings (including three hearings in communities: Port Hope, Port Elgin, and Saskatoon), and heard from 145 intervenors. These outreach efforts will continue, as the Commission is committed to providing facts and data to mitigate any misinformation and lack of understanding in the general public domain.

On November 20, 2009, the International Atomic Energy Agency released the final report for the Integrated Regulatory Review Service (IRRS) Peer Review of the CNSC in June 2009. The purpose of the IRRS mission was to compare Canada's regulatory practices with international standards and equivalent good practices elsewhere in the world.

Overall, the review team determined that Canada has a mature and well-established nuclear regulatory framework, and that the CNSC does an effective job of protecting the health, safety and security of Canadians and the environment.

We will enhance the way we do business through our continuous improvement initiatives: addressing recommendations from the IRRS mission, strengthening our approach to regulatory research and evaluation, and responding to Management Accountability Framework assessments. By strengthening our internal processes, we will be focusing on key strategies to retain our skilled and knowledgeable staff.

One thing has not changed in the last 64 years: Canada's nuclear regulator will not compromise safety. Canada has an impressive and internationally recognized track record for nuclear safety, and we will continue to strive towards our vision of being the best nuclear regulator in the world, as laid out in this Report on Plans and Priorities.

[ original signed by M. Binder ]

Michael Binder
President

 

1.1 Summary Information

Raison d'être and Responsibilities

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

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 a successor to the Atomic Energy Control Board.

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

Our vision

To be the best nuclear regulator in the world.

Our 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.

Our mandate

Under the NSCA, the CNSC achieves its mission through the following areas:

• Regulating the development, production and use of nuclear energy in Canada, as well as the possession and transportation of nuclear substances;
• Implementing measures on the non-proliferation of nuclear weapons and nuclear explosive devices;
• Providing objective scientific, technical and regulatory information about the activities of the CNSC.

In this context, the CNSC:

• Is responsible for complying with the Government of Canada's December 2007 Directive to the Canadian Nuclear Safety Commission Regarding the Health of Canadians. This Directive requires the CNSC, when regulating the production, possession and use of nuclear substances, to take into account the health of those Canadians who, for medical purposes, depend on nuclear substances produced by nuclear reactors;
• Administers the Nuclear Liability Act and, as a Responsible Authority under the Canadian Environmental Assessment Act, carries out Environmental Assessments (EAs) for nuclear projects in accordance with this legislation;
• Is Canada's authority with respect to 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.

The Commission has up to seven permanent members, appointed by the Governor in Council, and is supported by 850 employees across Canada. The President of the CNSC is a permanent full-time Commission member, while other members may be appointed to serve full or part-time. 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.

The Commission is a quasi-judicial administrative tribunal and court of record and 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. With respect to licensing matters related to major nuclear facilities, the Commission considers applicant proposals, recommendations of CNSC personnel, and stakeholder views before making its 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 released within 30 business days after the closing of the hearings.

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The following organizational chart provides additional details about the CNSC:

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Program Activity Architecture

The following chart illustrates the CNSC's complete framework of program activities and program sub-activities, which support its strategic outcome:

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1.2 Planning Summary

As a regulatory organization with a well-defined mandate, the CNSC's baseline planning work is relatively consistent from year-to-year. However, the CNSC's planning context brings with it mixed drivers and uncertainties to which the organization must respond. The combination of early indications of global and Canadian economic recovery, as well as the Government of Canada's commitment to reducing Canada's total greenhouse gas emissions (goal of having 90% of Canada's electricity provided by non-emitting sources such as hydro, nuclear, clean coal or wind power by 2020) project a scenario where nuclear energy is a critical part of the energy mix.

Based on current circumstances¹, the economic crisis halted the continuing short-term rises in the demand for fossil fuels. However, the overall energy demands will resume, and nuclear power is seen as a key contributor in considerations of replacing fossil fuels, as a way to generate electricity and reduce harmful greenhouse gas emissions.

In Canada, although some applications for new nuclear power plants were withdrawn, the CNSC continues to regulate the refurbishment of existing nuclear power plants and prepare for investments in new nuclear power facilities. Any growth in the demand for nuclear energy, at home or abroad, also affects the entire nuclear cycle (from uranium mining and milling, uranium refining and fuel production to long-term management of nuclear waste), thereby driving a demand for more projects in Canada. The CNSC will regulate all of these projects in a simple, clear, and timely fashion in accordance with its mandate.

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¹ International Energy Agency's (IEA) World Energy Outlook 2009 - http://www.worldenergyoutlook.org/

The Atomic Energy of Canada Limited's (AECL) National Research Universal (NRU) reactor will remain a key focus for the CNSC. The CNSC will continue its regulatory oversight of AECL, and will be preparing for AECL's licence renewal for the NRU reactor and the rest of the Chalk River Laboratories in 2011.

The CNSC will continue to implement the Directive to the Canadian Nuclear Safety Commission Regarding the Health of Canadians by assigning the highest priority to licensing actions requests which involve patient care issues. Requests from health care providers are acted upon immediately and in most cases approvals, such as for replacements to technetium-99m (Tc-99m), the radioisotope most commonly used in medical imaging, have been authorized in less than one day.

Organizational Priorities

The CNSC has cast its organizational priorities under the heading "Core + Four."

Core regulatory operations represent the bulk of our everyday work to deliver on our mandate. These include the administration of the regulatory framework, licensing, certification, and compliance activities, with the ultimate goal to make sure that the Canadian nuclear industry is operating safely and securely. The Four priorities support and complement our Core regulatory operations:

• Commitment to ongoing improvements;
• Clarity of regulatory requirements;
• Capacity for action;
• Communications.

These priorities and their associated commitments (presented in Section II) support the CNSC's strategic outcome and form the basis of this Report. They are an integral part of the Performance Management Contracts of CNSC executives, our Quarterly Performance Reports, as well as the Departmental Performance Report and Annual Report.

A brief summary of the four priorities follows.

• Commitment to ongoing improvements – "always room for improvements."
  
  In addition to core licensing and compliance activities, this priority includes completing Harmonized Plan initiatives (a continuous series of internal improvement works) and addressing recommendations from the Integrated Regulatory Review Service (IRRS—an international peer review). 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 corporate service level and policy improvements, including those identified through various audits.
  
  
• Clarity of our requirements – "so everyone understands the rules."
  
  This priority centers on creating broad awareness among licensees, vendors of nuclear technology, and proponents of the CNSC's requirements stemming from the NSCA, whether for refurbishments and life-extensions or new projects (such as design reviews, review guides, joint review panels). Its other goals are revitalizing the CNSC's regulatory framework; updating regulatory documents and guidance, with particular attention to guidance for licence applications and Environmental Assessments (EAs); 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 focuses on the CNSC's workforce, to ensure sufficient knowledge and skills in fulfilling our mandate. The CNSC will continue its efforts to brand itself as an Employer of Choice, by shifting from recruitment to retention and training initiatives. We are strengthening our planning and operational processes, and 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 aims to strengthen communications with the CNSC's licensees, stakeholders, Aboriginal peoples, international counterparts, other government departments and central agencies, in accordance with our goal of being the best nuclear regulator in the world and our mandate to disseminate objective scientific, technical and regulatory information to the public concerning our regulatory activities.
  

Financial Resources ($ thousands)

2010-11	2011-12	2012-13
131,422	121,438 *	123,725 *

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)

2010-11	2011-12	2012-13
850	795 *	795 *

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.

* Both total Planned Spending and the associated Planned Human Resources (FTEs) are scheduled to reduce in 2011-12 due to the sunsetting of funding currently allocated for fee-exempt licensees and specific nuclear security activity. Options are being developed for consideration.

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 (for each program)	Satisfactory or better in all safety areas
Number of radiation exposures over the allowable limits	Zero reported cases
Positive International Atomic Energy Agency (IAEA) Safeguards Conclusion	Positive Annual Safeguards Broad Conclusion for Canada

 

Program Activity1	Expected Results	Forecast Spending ($ thousands)		Estimated Planned Spending2 ($ thousands)						Alignment to Government of Canada Outcomes
				2010-11		2011-123		2012-13
		2009-10
		Expenditures	FTEs	Expenditures	FTEs	Expenditures	FTEs	Expenditures	FTEs
Regulatory Framework Program	A clear and pragmatic regulatory framework	25,946	118	19,407	120	16,065	102	16,100	102	Social Affairs: A Safe and Secure Canada
Licensing and Certification Program	Individuals and organizations that operate safely and conform to safeguards and non-proliferation requirements	27,932	211	27,709	215	27,738	214	28,227	214
Compliance Program	High levels of compliance with the regulatory framework	38,259	267	39,868	273	36,707	254	37,481	254
Internal Services4	Activities and resources administered to support the needs of programs and other corporate obligations	41,792	237	44,438	242	40,928	225	41,917	225
Total Planned Spending		133,929	833	131,422	850	121,438	795	123,725	795

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 Canadian Nuclear Safety Commission Cost Recovery Fees Regulations(2003). In 2010-11, the CNSC projects to recover approximately $106.3 million in license fees. Of the forecasted $106.3 million to be recovered from licensees, CNSC has authority to directly respend $86.3 million pursuant to Section 29.1(1) of the Financial Administration Act . The remaining $20.0 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 In 2006-07 and 2007-08 the Treasury Board approved additional resources for CNSC workload pressures associated with fees-exempt licensees and mitigating risks to nuclear security. Both total Planned Spending and the associated Planned Human Resources (FTEs) are scheduled to reduce in 2011-12 due to the sunsetting of this funding. Options are being developed for consideration.

⁴ Includes both Internal Services spending and CNSC's capital funding applicable to all Program Activities.

Risk Analysis

Through our strategic planning exercise the CNSC identified two key risks that could impact our objectives:

Major Project Delays

During the past few years, the CNSC developed and implemented an aggressive recruitment strategy, anticipating increases in the number of major nuclear projects advancing in Canada. The economic downturn in 2008-09 brought uncertainties and delays in the announcements of new nuclear power plants in Ontario. If such projects are seriously delayed or outright cancelled, revenues (which account for approximately 70% of CNSC funding) could be significantly reduced. The CNSC has initiated contingency plans to adapt to these changes without compromising on its regulatory mandate.

Sunset Funding

The CNSC's annual appropriation funding ($45.1 million per Main Estimates) comprises $13.3 million that is due to sunset at the end of 2010-11. This funding supports regulatory oversight of fee-exempt licensees (hospitals, cancer clinics, nuclear research at universities) and sustains nuclear security efforts. The CNSC must ensure continued regulatory oversight of these facilities as well as mitigate risks to nuclear security. Options are being developed for consideration.

Expenditure Profile

Funding of CNSC Operations

The CNSC's operations are funded primarily from fees collected from industry, pursuant to the Canadian Nuclear Safety Commission Cost Recovery Fees Regulations (65-70%), and secondarily through an annual appropriation from Parliament (30-35%).

For the 2010-11 fiscal year, the CNSC plans to spend $131.4 million to meet the expected results of its program activities. Of the $131.4 million in planned spending, the CNSC is requesting $45.1 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), activities related to international obligations (including safeguards activities in support of the non-proliferation of nuclear weapons), outreach and stakeholder relations activities, public responsibilities (such as emergency preparedness), and the ongoing oversight of the Nuclear Safety and Control Act (NSCA) and the associated regulatory framework.

In addition, the CNSC plans to collect an amount of $106.3 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 $106.3 million, only $86.3 million is respendable by CNSC. The balance is used to offset the costs of services provided by other government departments on behalf of the CNSC.

In 2009, the CNSC conducted a Strategic Review of the funding, relevance and performance of all its program spending to ensure results and value for money. The results of this Strategic Review were submitted to Treasury Board in the fall of 2009, for subsequent review by Cabinet. The results of this Review will be reflected in future reporting to Parliament.

Agency Spending Trend

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The figure above illustrates the CNSC's spending trend from 2005-06 to 2012-13.

It is important to note that, as of April 1, 2011 (fiscal year 2011-12), $13.3 million in funding from the appropriation to support regulatory activities related to fee-exempt licensees and mitigating risks to nuclear security will sunset. Options are being developed for consideration.

Canada's Economic Action Plan (CEAP)

Through Budget 2009, $250 million was made available to departments and agencies over 2 fiscal years to address deferred maintenance of federal laboratories. The focus was on laboratories that contribute to core regulatory responsibilities of the Government, such as health and safety.

The CNSC was allocated $2 million in 2009-10 and $1 million in 2010-11 for a total of $3 million under CEAP to improve the laboratory capabilities, bringing them up to the international standards. The project core activities include renovation of the laboratory space, purchasing of new equipment, decommissioning of the existing laboratory, and moving to the new laboratory within the National Capital Region.

To respond to the new laboratory program and needs, the CNSC will create new scientific positions in the analytical and calibration fields. Also, in order to meet the organizational laboratory needs, the CNSC will work to obtain the ISO-17025 accreditation (general requirements for the competence of testing and calibration laboratories).

The current CNSC laboratory was established in 1978 as an independent laboratory to perform radio-analytical analyses in support of the inspection regime, as well as to provide radiation detection instrumentation services for the CNSC inspectors. This initiative will significantly strengthen the CNSC's capacity to undertake these activities.

2010-11 CNSC Funding Allocation by Program Activity

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* Includes both Internal Services spending and CNSC's capital funding applicable to all Program Activities.

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

Voted and Statutory Items

This table illustrates the way in which Parliament approved the CNSC resources, and shows the changes in resources derived from the supplementary estimates and other authorities, as well as how funds were spent.

Voted and Statutory Items
($ thousands)

Vote or Statutory Item	Truncated Vote or Statutory Wording	2010-11 Main Estimates	2009-10 Main Estimates
15	Program expenditures	40,630	40,670
(S)	Expenditures pursuant to paragraph 29.1(1) of the Financial Administration Act	86,256	97,597
(S)	Contributions to employee benefit plans	4,536	4,464
Total Agency (As displayed in the Main Estimates)		131,422	142,731

The CNSC's primary source of funding is derived from the recovery of the full cost of regulatory activities relative to fee-paying licensees pursuant to section 29.1(1) of the Financial Administration Act.

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