2023–24 Annual Report of the Canada Energy Regulator – Strategic Plan

2023–24 was the final year of the CER’s three-year Strategic Plan, a document which set out a clear path forward for the organization. The Strategic Plan has three parts:

• The Mission guides the organization’s everyday actions under the Canadian Energy Regulator Act (CER Act), with safety remaining at the core of its mandate.
• The Vision is aspirational and sets a clear path for where the organization is headed.
• The four interconnected Strategic Priorities reflect areas of cross-organizational focus and improvement to help better deliver on the Mission and reach the Vision.

The four interconnected Strategic Priorities were Trust and Confidence, Reconciliation, Competitiveness and Data and Digital Innovation.

The following is a summary of activities and results from the last year of the Strategic Plan.

Trust and Confidence

The focus of this strategic priority was to foster the trust and confidence of Canadians through robust communications, transparency, collaboration and inclusive engagement. Staff and leaders concentrated on engaging respectfully with Indigenous Peoples and Canadians, and developing an even more engaged and empowered workforce.

Accomplishments from this past year include:

• National Engagement Plan: The CER approved and launched the National Engagement Plan, a key deliverable under the Engagement Core Responsibility.
• Engagement Initiatives: The CER supported several engagement initiatives designed to gather the input of Canadians and influence the CER’s decisions and work. These initiatives provide insight and information to enhance damage prevention and safety outcomes. These included delivering initiatives with safety at the forefront and collaborating with and representing regulatory stakeholders on the Canadian Common Ground Alliance Damage Prevention Senate. It also included presenting the CER “big picture” aggregate data analytics from contravention reports to identify trends, issues and focus areas, and holding damage prevention workshops with industry participants. The CER hosted four virtual workshops in the past two years aimed at improving safety outcomes and creating meaningful dialogue, with over 100 people attending each workshop.
• Diversity and Belonging Roadmap: CER staff led advancements on the Diversity and Belonging Roadmap, including the launch of new coaching and mentoring programs, updates to Human Resources policies and tools to remove barriers in recruitment practices, and mandatory training for leaders on Duty to Accommodate responsibilities.
• Accessibility Plan: The CER delivered its first progress report on the Accessibility Plan, highlighting the completion of 11 actions in support of a barrier-free Canada by 2040, to the Accessibility Commissioner.
• Hybrid Workplace Approach: The CER implemented its long-term Hybrid Workplace Approach and new Telework and Hybrid Work Guidelines.



• Culture Assessment: In 2023-24, the CER assessed its organizational culture to encourage an engaged, empowered workforce and to support its mission as an effective, efficient, and trusted regulator. The objectives of the assessment were to determine key aspects of the current and desired culture, conduct a gap analysis, and identify and define behaviors that represent the desired culture.

Reconciliation

The CER is committed to Reconciliation with Indigenous Peoples, including the implementation of the United Nations Declaration on the Rights of Indigenous Peoples (UN Declaration), and the meaningful involvement of Indigenous Peoples in its work. While the organization knows that its commitments are important, it also knows that actions matter most.

The United Nations Declaration on the Rights of Indigenous Peoples Act (UN Declaration Act) became law in Canada in June 2021. Part of implementing this new law included the development of an Action Plan to achieve the objectives of the UN Declaration. Implementation of the UN Declaration Act is transformational and generational work. It is a whole-of-government responsibility, and the CER is committed to being a part of it.

Accomplishments from this past year include:

• Continuing to implement the UN Declaration Act: With the support and leadership of our Board of Directors and Indigenous Advisory Committee, the CER worked alongside the Trans Mountain Expansion – Indigenous Advisory and Monitoring Committee (TMX-IAMC) and Natural Resources Canada (NRCan) to co-develop a measure in the Action Plan that was released on 21 June 2023. The CER has been dedicated to implementing the UN Declaration and Action Plan Measure 34 (APM 34) will help advance these efforts in a focused and coordinated way.

  Work has begun to create a shared vison, co-develop governance frameworks and plan next steps in the short- and long-term. The CER will collaborate with Indigenous partners and NRCan to renew relationships grounded in recognizing rights, showing respect, fostering cooperation, and forming partnerships for transformative change.

  Action Plan Measure 34

  This action plan measure calls for working in consultation and cooperation with First Nation, Métis, and Inuit communities, governments and organizations to (i) enhance the participation of Indigenous Peoples in, and (ii) set the measures that could enable them to exercise federal regulatory authority in respect of, projects and matters that are currently regulated by the Canada Energy Regulator



• Building the CER’s Indigenous cultural intelligence: Building Indigenous cultural capacity is essential for the CER to fulfill its Reconciliation and APM 34 commitments. CER employees’ interactions with Indigenous Peoples are guided by their specific rights- and interests-based concerns regarding the CER’s regulatory work. Fostering cross-cultural dialogue as the foundation for building relationships contributes to advancing Reconciliation.

  The Indigenous Cultural Intelligence and Change Management Framework (ICICMF) is the cornerstone for individual and organization-wide transformative change; it supports the CER in building strong relationships with Indigenous Peoples. Its components include:

  • National Indigenous Engagement Blueprint: Guiding the CER’s engagement approach with Indigenous Peoples organization wide.
  • Indigenous Procurement Strategy: Supporting Indigenous businesses and economic Reconciliation.
  • Indigenous Recruitment, Retention, and Advancement Strategy: Building a robust Indigenous workforce within the CER.
  • Elders In-Residence Program: Integrating Indigenous knowledge and ceremony into CER operations.

  The ICICMF also educates CER staff to be proactive change agents in an evolving relationship with Indigenous Peoples. This is achieved through training sessions, Indigenous Art Markets, guest speakers for the National Day for Truth and Reconciliation, and ceremonial participation with Indigenous groups like the Trans Mountain Expansion and Line 3 Indigenous Advisory Monitoring Committees (IAMCs), furthering our commitment to the meaningful advancement of Reconciliation.

• Indigenous involvement in oversight: In 2023-24, the CER continued to demonstrate its commitment to co-developing a broader systemic model for Indigenous Peoples’ involvement in compliance and oversight of new major CER-regulated projects and existing infrastructure by including language in APM 34: “[The CER will] Develop a systemic model to enhance Indigenous peoples’ involvement in compliance and oversight over the lifecycle (design, construction, operation and abandonment) of CER-regulated infrastructure. The model should integrate learnings from existing structures and relationships.” In 2023-24, Indigenous Monitors participated in 54 CER compliance verification activities.
• CER’s relationship with the IAMCs remains a top priority: The CER’s relationship with the IAMCs for the Trans Mountain Expansion and Line 3 Replacement Projects remained a top priority throughout 2023-24. The IAMCs help provide for better oversight of the Trans Mountain Expansion and Line 3 Projects in a manner that aligns with the UN Declaration to achieve the Government of Canada’s commitment to Reconciliation. They also lead to a partnership-based approach to oversight among federal and Indigenous Committee members, support Indigenous engagement, and the provision of advice and recommendations grounded in technical expertise. The IAMCs provide a forum for Indigenous communities, regulators, and the federal government to work collaboratively with proponents to better understand industry standards and technical matters associated with pipeline and marine safety, emergency planning and response, and socio-economic impacts. Key achievements accomplished over the past year with the IAMCs are reflected in this report under Indigenous Engagement.

Competitiveness

One of the CER’s goals over the past three years has been to improve the transparency, predictability, and efficiency of its regulatory work; drive innovation that contributes to the transition to a low carbon economy; and research the future Canadian energy landscape to help prepare in the transition to a new low carbon economy.

Accomplishments from this past year include:

• Engaging directly with regulated industry: The CER is committed to enhancing its ongoing dialogue with regulated companies. This dialogue directly supports the CER’s continuous improvement work and industry innovation to meet the changing needs of Canadians and the energy sector. After developing and launching the Regulated Industry Engagement Group in October 2022, two meetings were held in 2023 with regulated industry building momentum behind this engagement initiative. Participants in those meetings discussed best practices, regulatory efficiency initiatives and upcoming regulatory changes. These types of discussions foster a predicable regulatory environment and support regulatory innovation.
• Improve transparency and predictability in regulatory processes: The predictability and timeliness of completeness decisions for regulatory applications had been identified as an area needing improvement. The decision on NorthRiver Midstream’s NEBC Connector Project marked the first time since 2015 that a pipeline project with supplemental Crown consultation was approved with no extensions to the 90-day time limit for a Governor in Council (GIC) decision. The CER’s approach taken on engagement and consultation to ensure issues were identified and addressed early and throughout the hearing process enabled the GIC to meet this time limit. The increased predictability and timeliness in supporting such decisions has been a noticeable improvement in the way that assessment processes are executed, without compromising the integrity of the CER’s regulatory oversight.

• Onshore Pipeline Regulations and Filing Manuals Review: The CER continued its comprehensive review of the Onshore Pipeline Regulations (OPR) and Filing Manuals in 2023-24. The review is part of how the CER will deliver on commitments to enhance competitiveness and regulatory excellence and transform the way it and regulated companies work with Indigenous Peoples across the lifecycle of regulated facilities.

  In 2023-24, the CER published a What We Heard Report based on key themes from the first phase of engagement. The organization also held a pilot workshop with the Trans Mountain Expansion and Line 3 IAMCs to discuss measures to prevent and address impacts to the Rights and Interests of Indigenous Peoples. Lessons learned from this pilot workshop are being integrated into planning for the CER’s next phase of engagement. Phase 2 of engagement will be structured around issue-specific topic papers, which are based on input received to date and present specific options for ‘how’ the CER will update the OPR and Filing Manuals. Funding will be available to support the continued participation of Indigenous Peoples in the review.

• Transition to a low carbon economy: The CER’s Market Snapshot series furthered the CER’s goal of providing Canadians with a neutral source of timely and relevant energy information and analysis. In 2023-24, the focus of this work remained broad with an increase in data and analysis focused on the transition to lower carbon energy alternatives with eight Market Snapshots highlighting renewable energy.

  The CER has been instrumental in updating the Canadian Standards Association’s CSA Z662 to now include hydrogen in the standard. Such an update provides clarity for pipeline companies to innovate in this space. Providing this degree of clarity is part of the journey in driving innovation which will include in the future, consideration of regulatory requirements for transportation of ammonia and carbon dioxide.

The CER is committed to building on what has been accomplished over the past three years, while recognizing that Canadian energy systems will continue to evolve in light of new supply and demand dynamics, the suite of policies at the federal and provincial levels, and consumer preferences. This is why the CER will maintain its strategic focus initiated under Competitiveness to now be further advanced by both the Competitiveness and Regulatory Excellence Strategic Priority as well as the Preparing for the Energy Future Strategic Priority, both of which are detailed in the What the Future Holds section of this report.

Data and Digital Innovation

In 2021, the CER identified Data and Digital Innovation (DDI) as a key strategic priority for 2021-24. The goal was to foster a culture and develop systems of data and digital innovation that would support the effective execution of the CER's mandate. This initiative aimed to enhance public access to accurate data and energy information, thereby facilitating meaningful engagement and informed decision-making. It also sought to improve opportunities for digital interaction.

Over the last three years, this strategic priority has been instrumental in driving numerous projects that have contributed significantly to the organization's achievements. Efforts have included providing training and tools to elevate data competencies within the CER, establishing a robust data foundation for analytics and decision-making, and broadening our data usage to better serve Canadians with vital energy information. Furthermore, we have made strides in integrating data and information systems both internally and externally, which has led to greater access to dependable data and energy insights. This has resulted in more support for informed decision making, enhanced process transparency, increased digital engagement, greater efficiency, and more impactful public involvement.

While the CER has completed the final year of this strategic priority, the organization remains committed to nurturing a culture of data and digital innovation that underpins all facets of its mandate. Digital solutions and data-driven insights have become integral components of the CER's program delivery framework. The robust groundwork laid down by the DDI strategic priority, coupled with the development of exciting technologies, will continue to propel innovation forward, enhance trust and confidence, bolster competitiveness, and facilitate Reconciliation efforts within the CER.

Accomplishments from this past year include:

• Providing insights with data: The CER has made energy information more accessible to Canadians by launching the Energy Futures Net-Zero Data Visualization. This platform transforms complex data into an easy-to-understand visual format.
• Increasing efficiency with digital tools: The CER has delivered the first pilot release of the CER Portal, which includes functionality and features for CER staff. The CER Portal is a secure and integrated access point for the CER's adjudication tools and, eventually, all aspects of the CER-regulated facility lifecycle. When completed, this portal will be used by companies for application and document submissions, as well as by CER staff, the Commission, and participants in CER processes. The CER Portal is designed to streamline processes by automating workflows, collecting structured information, enhancing data accuracy, saving time, and ensuring consistent decisions.
• Improving accuracy with innovation: CER staff has built a Geographic Information System-based method to support the Abandonment Cost Estimate calculation to reduce processing time and human error. This standardizes the calculation method and enhances the transparency of the formulas and data used for estimations.
• Enhancing accessibility of digital products: The CER is advancing accessibility for information communications technology to ensure access to digital products for all Canadians, in line with the CER Accessibility Plan. The plan includes the Information and Communication Technology Accessibility Initiative, which evaluated and provided recommendations for improving the accessibility of the CER’s digital products.

Date modified:

2024-11-04