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Home > Speeches and Presentations > Speeches and Presentations 2010 > The NEB and Canada's Sustainable Energy Future

The NEB and Canada's Sustainable Energy Future

Presented by
Roland George
Board Member
National Energy Board

USAEE/IAEE North American Conference
Calgary, Alberta

15 October 2010

Good Evening.

First, I'd like to extend my congratulations to the award winners tonight. Kenichi, your hard work for the IAEE is greatly appreciated. Also, to those students that have been recognized for their papers, thank you for your hard work and for contributing to your field.

I'd like to thank the conference organizers for the opportunity to speak to you tonight. I will be discussing the National Energy Board (NEB) and its role in Canada's sustainable energy future.

The National Energy Board
Active and Effective in Pursuit of a Sustainable Energy Future

First, since some of you may not be familiar with the National Energy Board, I'd like to provide some background on what we do. The Board is not only our Members but also 400 staff who are dedicated to serving the Canadian public interest.

In terms comparable to the U.S., think of the NEB as a combination of the FERC, the Department of Transportation's Pipeline and Hazardous Materials Safety Administration, the Department of Energy's Office of Oil and Gas Global Security and Supply and the Energy Information Administration. The NEB is Canada's national energy regulator. It was established in 1959 to promote safety and security, environmental protection and economic efficiency in the Canadian public interest within the mandate set by Parliament for the regulation of pipelines, energy development and trade. The Board reports to Parliament through the Minister of Natural Resources.The Board's main responsibilities include regulating the construction and operation of interprovincial and international oil and gas pipelines, international power lines, and designated interprovincial power lines. Furthermore, the Board regulates the tolls and tariffs for the pipelines under its jurisdiction. With respect to the specific energy commodities, the Board regulates the export of natural gas, oil, natural gas liquids (NGLs) and electricity, and the import of natural gas. Additionally, the Board regulates oil and gas exploration and development on frontier lands and offshore areas not covered by provincial or federal management agreements.

In an advisory function, the Board also keeps under review and analyzes matters related to its jurisdiction and provides information and advice on aspects of energy supply, transmission and disposition in and outside Canada. In this role, the NEB publishes periodic assessments to inform Canadians on trends, events and issues which may affect Canadian energy.

These roles are performed under the guidance of our Vision. It states that "The NEB is active and effective in Canada's pursuit of a sustainable energy future." I'd like to focus on the phrase "sustainable energy future" for the remainder of my presentation.

What is Sustainability at the NEB?

Sustainability is a challenging concept to define. This term can often be ambiguous and mean different things to different people. Likewise, as society's values and interests evolve, so does the meaning of sustainability.

Sustainable development was a term most famously defined in The Brundtland Report in 1987 as "…development that meets the needs of the present without compromising the ability of future generations to meet their own needs." The report also contributed to the idea of sustainable development by linking environmental issues with social and economic considerations.

What does the term "sustainable energy future" mean to the NEB?

The Board recognizes that there is no universally agreed-upon definition of sustainability. For the Board it means that, within the context of our mandate, we will integrate the environmental, social and economic considerations relevant to choosing a course of action. In so doing, the Board must ask itself: to what extent is Canada better off, or worse off, overall, by choosing this course of action? By integrating the relevant considerations, the Board assesses the overall public interest associated with the chosen course of action. How does this work in practice? Well, for example, when the Board considers a facility application, the Board requires that it be designed and built so the chances of a rupture are minimized. Safety is a primary priority of the Board and an important social consideration. Similarly, keeping the pipe from rupturing prevents the environmental degradation that would result from a spill. Likewise, the economic impact from a pipeline rupture would generally be negative for Canada as a result of disrupted energy flows and lost trade revenues.

Each case is different with many diverse considerations related to, among others, economic feasibility physical facilities, public consultations, Aboriginal matters, land matters, environmental and socio-economic matters, tolling and so on. The NEB integrates all of these when making decisions in the Canadian public interest.

A Long History of Sustainability at the NEB

Although the wording sustainable energy future is new to the Board's Strategic Vision, considering economic, socio-economic and environmental issues has been fundamental to the Board's decision making since the passage of the NEB Act in 1959. The Act, which provides the Board's authority, states that when the NEB issues a certificate it must be "...satisfied that the pipeline is and will be required by the present and future public convenience and necessity..." At the NEB, the "public interest" is inclusive of all Canadians and refers to integrating economic, environmental and social considerations when making its decisions. The considerations change as society's values and preferences evolve over time. The Board weighs the relevant impacts of these interests when making its decisions. In this respect, the Board has been making sustainable decisions since its inception. As a regulator, the Board considers, in one gesture, all of the relevant impacts on the public interest when making its decisions. This is a key aspect of pursuing a sustainable energy future.

Regulatory Initiatives

Over time, environmental considerations have become increasingly important to Canadians and to the Board's decision making and other regulatory initiatives.

Given the evolving nature of Canadian society, the NEB's regulatory model must also adapt to meet the changing needs. Therefore we are continually improving our tool kit to promote a sustainable energy future. For example, the Board has a number of regulatory initiatives currently underway, including:

• Engagement of Environmental Non-governmental Organizations (ENGOs) - Over the past few years, we've found an increasing demand from ENGOs to better understand our processes. Through this initiative, we have worked to establish positive working relationships with ENGOs, in support of improved environmental outcomes from NEB-regulated activities.
• Arctic Offshore Drilling Review - the Review will examine a broad range of topics, from the potential hazards and risks associated with Arctic offshore drilling to financing a spill clean-up.
• Development of a draft Remediation Process Guide - This guide is being created to ensure successful remediation of soil and groundwater contamination.
• Land Matters Consultation Initiative (LMCI) - The LMCI provided a forum to discuss issues and generate options to support the long-term responsible development of the energy sector, while respecting the rights and interests of those affected. It was an extensive process and the NEB continues to work on implementing a number of LMCI actions.
• Participant Funding Program - The NEB is committed to ensuring that stakeholders are effectively engaged in the Board's public processes. The NEB recently received the legislative authority to establish a Participant Funding Program. The program, which was activated on the 1^st of October, 2010, provides financial assistance to support the timely and meaningful engagement of Aboriginal groups, landowners, incorporated non-industry not-for profit organisations, and other interested parties in the NEB's oral hearing process for facilities applications.  More details of the program are available on Public Participation and Land Matters, Participant Funding Program.

As a result of the 2010 Federal Budget announcement, the NEB will now deliver environmental assessments for projects within its jurisdiction that normally would have been assessed by a joint review panel established under the Canadian Environmental Assessment Act (CEA Act) . However, the fundamentals of the NEB's environmental assessment process remain unchanged as the Board has been conducting its own environmental assessments on projects not requiring a joint review panel since the implementation of the CEA Act in 1992. The NEB will continue to work closely with its federal agency and departmental partners in the scoping and delivery of environmental assessments. The process will remain subject to the requirements set out in the CEA Act and approval will still be required from Cabinet.

With all these regulatory initiatives underway, you may be asking yourself if the Board has the capacity to keep up with this work. And the answer to that is a resounding - yes! The Board has approximately 50 environment, socio-economic, lands and stakeholder engagement specialists on staff. When you include the engineers and technical staff whose ongoing responsibility includes "keeping the stuff in the pipe," there are approximately 100 professionals focused on doing the right thing and doing it right when it comes to sustainability. The Board has the right people and resources to be active and effective in Canada's pursuit of a sustainable energy future.

Sustainability and Energy Information

In addition to the Board's regulatory role, providing energy information to Canadians is an important function for the Board and integral to promoting a sustainable energy future. In order for Canadians to make informed decisions about their energy choices, they require fact-based, timely and accessible information about their energy system.

There is a wide audience for the Board's many information products, including technical analysts, decision makers and the general public. From one page energy fact sheets to full length energy market assessments, a large base of knowledge is easily accessible to all Canadians. In fact, two NEB staff were presenting in the previous session at this conference on some of the excellent energy analysis we do at the Board.

For more information

I'd like to wrap up with a quick overview of the key messages of my presentation.

• The Board is continually striving to be active and effective in Canada's pursuit of a sustainable energy future.
• A sustainable energy future can be described as a three legged stool, with environmental, economic and social considerations representing the three legs.
• For many years, the Board's decision making has integrated environmental, economic and social considerations in determining public interest.
• The NEB is continuing to improve its regulatory model, through various initiatives aimed at Canada's pursuit of a sustainable energy future.
• Informing Canadians about energy helps promote a sustainable energy future.

If you are interested in knowing more about the topics I discussed this evening, I would be happy to answer any questions you may have. A copy of my presentation has been made available electronically on the NEB website.

Or, if you prefer:

Give us a call. All of our contact information is on this slide.

Drop by our Library in Calgary located on the main floor of our office.

Reference our recent publications (Energy Futures, Infrastructure EMA, Briefing Note on Attitude and Behaviour etc.)

Thank you and enjoy the rest of the evening.

 

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Date Modified:

2011-10-28