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Departmental Plan 2019-2020

Northern Pipeline Agency

2019-20
Departmental Plan

The Honourable Amarjeet Sohi, P.C., M.P.
Minister of Natural Resources

PDF Version (1.04 MB)

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019

Cat. No. BT31-2/2019III-31

ISSN 2368-4054

This report is published separately in both official languages.

Copies are available on the Northern Pipeline Agency website at:

http://www.npa-apn.gc.ca/publications/69

Printed in Canada

Table of Contents

Commissioner’s message.

Plans at a glance and operating context

Planned results: what we want to achieve this year and beyond

Program

Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project

Internal Services

Spending and human resources

Planned spending

Planned human resources

Estimates by vote

Future-Oriented Condensed Statement of Operations

Additional information

Corporate information

Organizational profile

Raison d’être, mandate and role: who we are and what we do

Operating context and key risks

Reporting framework

Supplementary information tables

Federal tax expenditures

Organizational contact information

Appendix: definitions

Endnotes


Commissioner’s Message

Christyne Tremblay, Commissioner

It is my pleasure to present the 2019-20 Departmental Plan for the Northern Pipeline Agency (the Agency).

The Agency was established by the Northern Pipeline Act (the Act) in 1978 to facilitate the planning and construction by Foothills Pipe Lines Ltd. (Foothills) of the Canadian portion of the Alaska Highway Gas Pipeline (AHGP) project and to maximize social and economic benefits from its construction and operation while minimizing any adverse effects. The pipeline was certificated in 1978 under the Act to transport Alaskan and possibly northern Canadian natural gas to southern markets in Canada and the United States, as provided for by the Canada-U.S. Agreement on Principles Applicable to a Northern Natural Gas Pipeline.

The southern portion of the pipeline was constructed in the early 1980s and presently transports Canadian gas to commercial markets. Unfavourable economic conditions have led to several delays in the completion of the northern portion of the pipeline.

In 2008, TransCanada PipeLines Limited (TransCanada), which now owns Foothills, was selected by the State of Alaska to pursue a large-scale pipeline project that would transport natural gas in a large diameter buried pipeline from Prudhoe Bay, Alaska to Boundary Lake, Alberta using the northern portion of the AHGP project. However, Foothills/TransCanada notified the Agency in February 2013 that no further work is planned on the AHGP for now and it will await further commercial interest before recommencing its efforts.

To align with the reduction in the AHGP project activities in recent years, the Agency has scaled down its operations to a minimal level while continuing to fulfill Canada’s ongoing obligations as set out in the Act. For 2019-20, the Agency has prepared itself to ramp up activities in response to the potential need to carry out work expected over the next three year period. During this time, the Agency will also respond to any incoming inquiries from other government agencies, Indigenous groups and the public.

Christyne Tremblay
Commissioner

Plans at a glance and operating context

Planned financial resources: $1,084,070

Who is involved? 4 Full Time Equivalents (FTE)

What results are planned? The Agency will maintain the appropriate minimum level of preparation activities for a regulatory framework, so as to remain prepared to ramp up quickly to effectively regulate and facilitate the planning and construction of the pipeline should the project proceed. For 2019-2020, the Agency has prepared itself to ramp up activities in response to the potential need to carry out work expected over the next three year period.

For more information on the Agency’s plans, priorities and planned results, see the “Planned results” section of this report.

Planned results: what we want to achieve this year and beyond

Program

Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project

Description

Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project.

Planning highlights

The Agency will maintain the appropriate minimum level of preparation activities for a regulatory framework, so as to remain prepared to ramp up quickly to effectively regulate and facilitate the planning and construction of the pipeline should the project proceed. For 2019-2020, the Agency has prepared itself to ramp up activities in response to potential need to carry out work expected on the AHGP Project.

Planned results
Departmental Results Departmental Result Indicators Target Date to achieve target 2015-16 Actual results 2016-17 Actual results 2017-18 Actual results
The Agency will maintain the appropriate minimum level of preparation activities for a regulatory framework, so as to remain prepared to ramp up quickly to effectively regulate and facilitate the planning and construction of the pipeline should the project proceed. The Agency will respond to company and public correspondence within 15 business days of receipt. 80% Annual 100% 100% 100%

In 2017-18 the Agency received only one request from the public.

Budgetary financial resources (dollars)
2019-20
Main Estimates
2019-20
Planned spending
2020-21
Planned spending
2021-22
Planned spending
1,084,070 1,084,070 1,909,105 1,309,105

The increase in planned spending is mainly attributed to the potential need for the Agency to ramp up quickly and commence increased activities in response to the AHGP project.

Human resources (full-time equivalents)
2019-20 Planned full-time equivalents 2020-21 Planned full-time equivalents 2021-22 Planned full-time equivalents
4 4 4

Financial, human resources and performance information for the Agency’s Program is available in the GC InfoBase.Footnote 1

Internal Services

Description

Internal Services are those groups of related activities and resources that the federal government considers to be services in support of Programs and/or required to meet corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct services that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. These services are: 

  • Management and Oversight Services
  • Communications Services
  • Legal Services
  • Human Resources Management Service
  • Financial Management Services
  • Information Management Services
  • Information Technology Services
  • Real Property Management Services
  • Materiel Management Services
  • Acquisition Management Services
Budgetary financial resources (dollars)
2019-20
Main Estimates
2019-20
Planned spending
2020-21
Planned spending
2021-22
Planned spending
0 0 0 0
Human resources (full-time equivalents)
2019-20
Planned full-time equivalents
2020-21
Planned full-time equivalents
2021-22
Planned full-time equivalents
0 0 0

Planning highlights

The Agency has a single strategic outcome and a single program. As a small and separate federal entity, the Agency has service agreements with the National Energy Board, Natural Resources Canada and Shared Services Canada, and expenditures for Program and internal services through these agreements are recorded as Program spending.

Spending and human resources

Planned spending

Departmental spending trend graph

Departmental Spending Trend Graph 2019-2020

Text version

This bar graph shows the Northern Pipeline Agency planned and actual spending for the fiscal years between 2016-17 and 2021-22.

Total spending and planned spending by period is as follows:

Statutory

2016-2017: $3,337
2017-2018: $5,319,361
2018-2019: $3,451
2019-2020: $29,070
2020-2021: $106,335
2021-2022: $106,335

Voted

2016-2017: $250,994
2017-2018: $221,805
2018-2019: $220,920
2019-2020: $1,055,000
2020-2021: $1,802,770
2021-2022: $1,309,105

Total

2016-2017: $254,331
2017-2018: $5,341,166
2018-2019: $224,371
2019-2020: $1,084,070
2020-2021: $1,909,105
2021-2022: $1,309,105

The Agency’s spending trend graph is a reflection of the Agency’s past and forecasted operational requirements. In the 2011 Budget, the Agency received new funding to support the development of the AHGP given Foothill’s decision at that time to pursue the northern portion of the project. The Agency’s operating costs were increased to respond to the company’s expectations for regulatory services (including a forecasted requirement of four FTEs). In 2012-13 Foothills informed the Agency that it would not be proceeding with the project until further notice. Consequently, the Agency’s operational requirements have been adjusted from the initial forecast on a year-by-year basis (as reflected in the graph above for 2016-17 to 2018-19). The increase in spending for 2017-18 is mainly attributed to a remittance to Foothills representing the outstanding over-collection balance of approximately $5,315,360 from Foothills that had accumulated as of December 14, 2017. For 2019-20, the Agency’s planned spending in the amount of $1,084,070 is mainly attributed to the potential need for the Agency to ramp up quickly and commence increased activities in response to the AHGP project. While forecasts for 2020-21 and subsequent years continue to reflect the continued increased level of planned spending, these forecasts will be adjusted as necessary to reflect a funding level commensurate with the Agency’s anticipated operational requirements.

Budgetary planning summary for Program and Internal Services (dollars)
Program and Internal Services 2016-17
Expenditures
2017-18
Expenditures
2018-19
Forecast spending
2019-20
Main Estimates
2019-20
Planned spending
2020-21
Planned spending
2021-22
Planned spending
Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project. 254,331 5,541,166 224,371 1,084,070 1,084,070 1,909,105 1,309,105
Subtotal 254,331 5,541,166 224,371 1,084,070 1,084,070 1,909,105 1,309,105
Internal Services 0 0 0 0 0 0 0
Total 254,331 5,541,166 224,371 1,084,070 1,084,070 1,909,105 1,309,105

Planned human resources

Human resources planning summary for Program and Internal Services (full-time equivalents)
Program and Internal Services 2016-17
Actual full-time equivalents
2017-18
Actual full-time equivalents
2018-19
Forecast full-time equivalents
2019-20 Planned full-time equivalents 2020-21 Planned full-time equivalents 2021-22 Planned full-time equivalents
Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project. 1 1 1 4 4 4
Subtotal 1 1 1 4 4 4
Internal Services 0 0 0 0 0 0
Total 1 1 1 4 4 4

Estimates by vote

Information on the Agency’s organizational appropriations is available in the 2019-20 Main Estimates.Footnote 2

Future-Oriented Condensed Statement of Operations

The Future-Oriented Condensed Statement of Operations provides a general overview of the Agency’s operations. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management. The forecast and planned spending amounts presented in other sections of the Departmental Plan are prepared on an expenditure basis; as a result, amounts may differ.

A more detailed Future-Oriented Statement of Operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, are available on the Agency’s website.Footnote 3

Future Oriented Condensed Statement of Operations for the year ending March 31, 2020 (dollars)
Financial information 2018-19
Forecast results
2019-20
Planned results
Difference
(2019-20 Planned results minus 2018-19 Forecast results)
Total expenses 229,246 1,088,629 859,383
Total net revenues 0 0 0
Net cost of operations before government funding and transfers 229,246 1,088,629 859,383

To align with the reduction in the AHGP project activities, the Agency scaled down its operations while continuing to fulfill Canada’s ongoing obligations as set out in the Act. For 2019-20, the Agency’s increase is mainly attributed to the potential need for the Agency to ramp up quickly and commence increased activities in response to the AHGP project. During this time, the Agency continues to respond to any incoming inquiries from other government agencies, Indigenous groups and the public.

Additional information

Corporate information

Organizational profile

Appropriate minister: The Honourable Amarjeet Sohi, P.C., M.P.

Institutional head: Christyne Tremblay

Ministerial portfolio: Natural Resources Canada

Enabling instrument: Northern Pipeline ActFootnote 4

Year of incorporation / commencement: 1978

Other: The operating costs of the Northern Pipeline Agency to carry out federal responsibilities for the planning and construction of the Alaska Highway Natural Gas Pipeline project are fully recovered from the project proponent, Foothills Pipe Lines Limited. Foothills is now fully owned by TransCanada PipeLines Limited.

Raison d’être, mandate and role: who we are and what we do

“Raison d’être, mandate and role: who we are and what we do” is available on the Agency’s website.Footnote 5

Operating context and key risks

Information on operating context and key risks is available on the Agency’s website.Footnote 6

Reporting framework

The Agency’s Strategic Outcome and Program Alignment Architecture (PAA) of record for 2019-20 are shown below:

1. Strategic Outcome: The planning and construction of the Canadian portion of the Alaska Highway Gas Pipeline Project is efficient and expeditious while ensuring environmental protection and social and economic benefits for Canadians.

1.1 Program: Oversee and regulate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project.

Internal Services

Supporting information on the Program

Supporting information on planned expenditures, human resources, and results related to the Agency’s Program is available in the GC InfoBase.Footnote 7

Supplementary information tables

The following supplementary information tables are available on the Agency’s website:Footnote 8

  • Disclosure of transfer payment programs under $5 million

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures.Footnote 9 This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs, as well as evaluations, research papers and gender-based analysis. The tax measures presented in this report are the responsibility of the Minister of Finance.

Organizational contact information

The Agency has been designated as a department for the purposes of the Financial Administration Act. The Agency currently reports to Parliament through the Minister of Natural Resources, who is responsible for the management and direction of the Agency. The Agency has one senior officer, a Commissioner appointed by the Governor in Council. The Commissioner is currently the Deputy Minister of Natural Resources Canada. The Agency’s organizational structure is defined by the Act.

Mailing address:
470-588 Booth Street
Ottawa, ON K1A 0Y7

Phone: (613) 995-1150

Email: info@npa-apn.gc.ca

Appendix: definitions

appropriation (crédit)

Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures (dépenses budgétaires)

Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

Core Responsibility (responsabilité essentielle)

An enduring function or role performed by a department. The intentions of the department with respect to a Core Responsibility are reflected in one or more related Departmental Results that the department seeks to contribute to or influence.

Departmental Plan (plan ministériel)

A report on the plans and expected performance of appropriated departments over a three-year period. Departmental Plans are tabled in Parliament each spring.

Departmental Result (résultat ministériel)

Any change that the department seeks to influence. A Departmental Result is often outside departments’ immediate control, but it should be influenced by Program-level outcomes.

Departmental Result Indicator (indicateur de résultat ministériel)

A factor or variable that provides a valid and reliable means to measure or describe progress on a Departmental Result.

Departmental Results Framework (cadre ministériel des résultats)

The department’s Core Responsibilities, Departmental Results and Departmental Result Indicators.

Departmental Results Report (rapport sur les résultats ministériels)

A report on the actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

evaluation (évaluation)

In the Government of Canada, the systematic and neutral collection and analysis of evidence to judge merit, worth or value. Evaluation informs decision making, improvements, innovation and accountability. Evaluations typically focus on programs, policies and priorities and examine questions related to relevance, effectiveness and efficiency. Depending on user needs, however, evaluations can also examine other units, themes and issues, including alternatives to existing interventions. Evaluations generally employ social science research methods.

experimentation (expérimentation)

Activities that seek to explore, test and compare the effects and impacts of policies, interventions and approaches, to inform evidence-based decision-making, by learning what works and what does not.

full-time equivalent (équivalent temps plein)

A measure of the extent to which an employee represents a full person-year charge against a departmental budget. Full-time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.

gender-based analysis plus (GBA+) (analyse comparative entre les sexes plus [ACS+])

An analytical process used to help identify the potential impacts of policies, Programs and services on diverse groups of women, men and gender-diverse people. The “plus” acknowledges that GBA goes beyond sex and gender differences. We all have multiple identity factors that intersect to make us who we are; GBA+ considers many other identity factors, such as race, ethnicity, religion, age, and mental or physical disability.

government-wide priorities (priorités pangouvernementales)

For the purpose of the 2019-20 Departmental Plan, government-wide priorities refers to those high-level themes outlining the government’s agenda in the 2015 Speech from the Throne, namely: Growth for the Middle Class; Open and Transparent Government;  A Clean Environment and a Strong Economy; Diversity is Canada's Strength; and Security and Opportunity.

horizontal initiative (initiative horizontale)

An initiative where two or more departments are given funding to pursue a shared outcome, often linked to a government priority.

non-budgetary expenditures (dépenses non budgétaires)

Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

performance (rendement)

What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.

performance indicator (indicateur de rendement)

A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.

performance reporting (production de rapports sur le rendement)

The process of communicating evidence-based performance information. Performance reporting supports decision making, accountability and transparency.

plan (plan)

The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead up to the expected result.

planned spending (dépenses prévues)

For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in the Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

priority (priorité)

A plan or project that an organization has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired Departmental Results.

Program (programme)

Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.

Program Alignment Architecture (architecture d’alignement des programmes)

A structured inventory of an organization’s programs depicting the hierarchical relationship between programs and the Strategic Outcome(s) to which they contribute.

result (résultat)

An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization’s influence.

statutory expenditures (dépenses législatives)

Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

Strategic Outcome (résultat stratégique)

A long-term and enduring benefit to Canadians that is linked to the organization’s mandate, vision and core functions.

sunset program (programme temporisé)

A time-limited program that does not have an ongoing funding and policy authority. When the program is set to expire, a decision must be made whether to continue the program. In the case of a renewal, the decision specifies the scope, funding level and duration.

target (cible)

A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

voted expenditures (dépenses votées)

Expenditures that Parliament approves annually through an Appropriation Act. The Vote wording becomes the governing conditions under which these expenditures may be made.

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