Canadian Nuclear Safety Commission 2015–16 Departmental Performance Report

ISSN 2368-5220
Catalogue number: CC171-21E-PDF

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2015.

President's Message

As President of the Canadian Nuclear Safety Commission (CNSC), it is my pleasure to present our 2015–16 Departmental Performance Report, particularly as we mark the 70th anniversary of safe nuclear regulation in Canada.

Over the past year, we have continued to implement our Strategic Planning Framework, which sets out clearly defined goals and priorities, to guide our efforts in dealing with the changes taking place in the nuclear sector. As the CNSC is the sole regulator responsible for all nuclear activities in Canada, it is important that our work reflects and anticipates the needs of a changing industry, and that we continue to ensure the safety of Canadians and the environment.

In the past year, the CNSC’s work focused on five main priorities, which are outlined in greater detail throughout this report:

• Regulatory oversight of the nuclear industry
• Modern nuclear regulation
• Trusted regulator
• Global nuclear influence
• Improving management effectiveness

In pursuit of these five priorities, the CNSC completed a number of major licensing activities over the past year. These activities included a public hearing in 2015 for the renewal of the power reactor operating licence for the Bruce A and B Nuclear Generating Station and the Darlington Nuclear Generating Station, a public hearing in 2015 for the renewal of the Class 1B nuclear substance processing facility operating licence for Nordion (Canada) Inc.’s facility and for SRB Technologies (Canada) Inc.’s gaseous tritium light source facility. As well, a public hearing was held in 2015 to remove the Gunnar Remediation Project Phase 2 hold point as it pertained to the remediation of the tailings deposits at the Gunnar Legacy Uranium Mine Site in Northern Saskatchewan. Additionally, the joint review panel report on Ontario Power Generation’s Deep Geologic Repository was submitted to the Minister of Environment for decision, and an export licence was granted for Canada’s first uranium shipment to India.

In October 2015, an international team of experts and the International Atomic Energy Agency (IAEA) completed an International Physical Protection Advisory Service (IPPAS) mission to review national nuclear security practices in Canada, following a commitment Canada made at the 2014 Nuclear Security Summit in the Hague, Netherlands. The IPPAS team concluded that Canada conducts strong and sustainable nuclear security activities, and the team identified a number of good practices in the national nuclear security regime.

The CNSC completed the remaining Fukushima Action Items (FAIs), following the Fukushima event of 2011, as specified in the CNSC Integrated Action Plan On the Lessons Learned From the Fukushima Daiichi Nuclear Accident.^{Footnote i}

In addition to these large initiatives and special projects, the bulk of our work entails day-to-day oversight of nearly 1,700 licensees, to ensure the continued safety of all nuclear activities in Canada. In support of this work, we continued efforts on our 10-year workforce renewal plan. These efforts included identifying critical competencies for regulatory work, addressing attrition risks in our workforce, re-profiling the organization to ensure growth and development opportunities, and recruiting a talent pool of new graduates.

The CNSC remains committed to promoting a healthy safety culture that encourages professional and respectful scientific debate. The CNSC is a science-based organization which fosters a working environment that encourages staff to communicate their best professional judgments. The ability to raise issues is an important element of a healthy safety culture.

Our ongoing efforts and commitment to safety are reflected in the Canadian nuclear industry’s excellent safety record. Our goal is to maintain this success as we continue to strive toward being the best nuclear regulator in the world.

____________________________
Michael Binder
President

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Results Highlights

2015–16 Departmental Actual Spending (dollars):

$137,968,668

2015–16 Departmental Actual Full Time Equivalents (FTEs):

808

Highlights:

• Renewed Bruce Power’s operating licence
• Renewed Ontario Power Generation’s Darlington operating licence
• Issued an export licence for Canada’s first uranium shipment to India
• Facilitated completion of an International Physical Protection Advisory Service mission
• Completed all Fukushima Action Items following the Fukushima event of March 2011
• Renewed the Class 1B nuclear substance processing facility operating licences for Nordion (Canada) Inc.’s facility and for SRB Technologies (Canada) Inc.’s gaseous tritium light source facility
• Held a public hearing in 2015 to remove the Gunnar Remediation Project Phase 2 hold point as it pertained to the remediation of the tailings deposits at the Gunnar Legacy Uranium Mine Site in Northern Saskatchewan
• Completed core licensing, compliance and verification activities
  • conducted 1,450 inspections (not including desktop reviews) for nearly 2,400 licences held by almost 1,700 licensees
  • managed over 3,000 CNSC certificates held by persons across Canada who are key operating personnel for power and research reactors, health physicists and radiation safety officers, and industrial radiography exposure device operators
• issued 23 orders to specific licensees using nuclear substances and 5 administrative monetary penalties (3 to the industrial sectors, 1 to a nuclear power plant, and 1 to an individual) – additional information is available in the CNSC’s 2015–16 Annual Report^{Footnote ii}

Section I: Organizational Overview

Organizational Profile

Appropriate Minister: Jim Carr

Institutional Head: Michael Binder

Ministerial Portfolio:Natural Resources Canada^{Footnote iii}

Enabling Instrument(s): Nuclear Safety and Control Act^{Footnote iv}

Year of Incorporation / Commencement: 2000

Organizational Context

Raison d'être

The Canadian Nuclear Safety Commission (CNSC) was established on May 31, 2000, with the coming into force of the Nuclear Safety and Control Act (NSCA). It replaced the Atomic Energy Control Board established in 1946 by the Atomic Energy Control Act.

The CNSC is a departmental corporation listed in Schedule II of the Financial Administration Act^{Footnote v}, and reports to Parliament through the Minister of Natural Resources.

Mission

The Canadian Nuclear Safety Commission regulates the use of nuclear energy and materials to protect health, safety, security and the environment; to implement Canada’s international commitments on the peaceful use of nuclear energy; and to disseminate objective scientific, technical and regulatory information to the public.

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Mandate

Under the NSCA, the CNSC:

• regulates the development, production and use of nuclear energy in Canada to protect health, safety and the environment
• regulates the production, possession, use and transport of nuclear substances, and the production, possession and use of prescribed equipment and prescribed information
• implements measures respecting international control of the development, production, transport and use of nuclear energy and substances, including measures respecting the non-proliferation of nuclear weapons and nuclear explosive devices
• is responsible for disseminating objective scientific, technical and regulatory information concerning the CNSC’s activities, and about how the development, production, possession, transport and use of nuclear substances affect the environment and the health and safety of persons

Responsibilities

The CNSC is an independent regulatory agency and quasi-judicial administrative tribunal. It provides regulatory oversight of all nuclear-related activities and substances in Canada.

Environmental protection is a key element of the CNSC’s mission and mandate. As the sole responsible authority for nuclear projects under the Canadian Environmental Assessment Act, 2012 (CEAA 2012)^{Footnote vi}, the CNSC carries out environmental assessments in accordance with this legislation. For nuclear projects that no longer require environmental assessments under CEAA 2012, the CNSC continues to ensure the public and environment are protected through environmental assessments under the NSCA. The CNSC is also responsible for designating installations under the Nuclear Liability Act.^{Footnote vii} Additional discussion of the new Nuclear Liability and Compensation Act^{Footnote viii} can be found in Section III, Internal Services.

The CNSC is Canada’s authority for the implementation of 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 (“Safeguards Agreement”)^{Footnote ix} and the associated Additional Protocol.^{Footnote x} The CNSC also administers the nuclear non-proliferation provisions of bilateral nuclear cooperation agreements between the Government of Canada and foreign nuclear trading partners, pursuant to the requirements of Canada’s nuclear non-proliferation policy.

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

In addition to being a regulatory organization, the Commission is an administrative tribunal set up at arm’s length from government. The Commission makes most decisions through a public hearing process that is guided by clear rules of procedure.^{Footnote xi} Interested parties and members of the public may be heard at proceedings of the Commission. Proceedings are periodically held in communities close to major nuclear facilities to make them as accessible as possible to affected persons. Additionally, the Participant Funding Program is available to support Aboriginal and public participation in these proceedings.

The Commission provides extensive reasons for its decisions which are based on scientific information that often includes public input as well as the recommendations of expert CNSC staff. Decisions, hearing transcripts, webcast archives and CNSC Online resource modules are publicly available on the CNSC website and various social media platforms. By joining the Twitter platform, the Commission has an additional tool to inform the public about important Commission decisions, press releases and news about the CNSC’s participation in events or conferences.

Strategic Outcome and Program Alignment Architecture

The following illustrates the CNSC’s strategic outcome, as well as the complete framework of programs and sub-programs that support it.

• 1. Strategic Outcome: Safe and secure nuclear installations and processes used solely for peaceful purposes and an informed public on the effectiveness of Canada’s nuclear regulatory regime.
  • 1.1 Program: Nuclear Fuel Cycle
  • 1.1.1 Sub-program:Uranium Mines and Mills
  • 1.1.2 Sub-program:Nuclear Processing Facilities
  • 1.1.3 Sub-program:Nuclear Waste Management Facilities
• 1.2 Program: Nuclear Reactors
  • 1.2.1 Sub-program: Nuclear Power Plants
  • 1.2.2 Sub-program: Research Reactors
• 1.3 Program: Nuclear Substances and Prescribed Equipment
  • 1.3.1 Sub-program: Medical Sector
  • 1.3.2 Sub-program: Industrial Sector
  • 1.3.3 Sub-program: Commercial Sector
  • 1.3.4 Sub-program: Academic and Research Sector
  • 1.3.5 Sub-program: Packaging and Transport
  • 1.3.6 Sub-program: Dosimetry Services
• 1.4 Program: Nuclear Non-Proliferation
  • 1.4.1 Sub-Program: Domestic and International Arrangements
  • 1.4.2 Sub-Program: Safeguards
  • 1.4.3 Sub-Program: Import and Export
• 1.5 Program: Scientific: Technical, Regulatory and Public Information
  • 1.5.1 Sub-Program: Regulatory Framework
  • 1.5.2 Sub-Program: Scientific and Technical Information
  • 1.5.3 Sub-Program: Research
  • 1.5.4 Sub-Program: Public Engagement and Outreach
• Internal Services

Operating Environment and Risk Analysis

For 2015–16, the CNSC identified the key risk of a changing regulatory environment. The CNSC operates in a dynamic environment that is greatly influenced by shifting industry patterns and global economies. As such, the CNSC continues to make adjustments to its plans and priorities to adequately respond to the industry’s ongoing evolution.

Extensive risk-management work continued in 2015–16, culminating in the development of an Enterprise Risk Management Policy and Enterprise Risk Profile (ERP).  While the Policy sets out, at the highest level, the CNSC’s commitment to risk management, the ERP provides a snap shot of the organization’s key risks such as the risk of a nuclear accident, malevolent activities, and lost or stolen nuclear substances. The ERP was developed through a series of interviews, workshops and discussions with CNSC staff and managers across the organization. An assessment of the risks was undertaken and additional mitigation put in place where deemed necessary.

Key Risks (as identified in the new 2016 Enterprise Risk Profile)

Risk	Risk Response strategy	Link to the Organization’s program(s)
There is a risk of a nuclear accident	Execution of baseline licensing and compliance activities for nuclear power plants (NPPs) Implementation of Periodic Safety Reviews Undertake research projects to establish site-wide safety goals	Nuclear Reactor
Malevolent activities	Continue implementation of REGDOC-2.12.3, Security of Nuclear Substances: Sealed Sources Enhance regulatory control of inventories of disused and historical sources	Nuclear Non-proliferation
Lost or stolen nuclear substances	Undertake a threat assessment as part of next phase of the national nuclear forensics capability development Complete CNSC deliverables under the Single Window Initiative Implement CNSC action plan resulting from the 2015 International Physical Protection Advisory Service (IPPAS) mission recommendations	Nuclear Substances and Prescribed Equipment

The CNSC operates in an environment driven by factors that are not all under its control. Although the CNSC has a comprehensive regulatory oversight regime, unplanned events may occur. Given this possibility, the CNSC maintains strong controls to mitigate risks the organization may face.

Organizational Priorities

In 2015–16, the CNSC focused on five overarching strategic priorities:

1. Provide regulatory oversight of the nuclear industry
2. Modern nuclear regulation
3. Trusted regulator
4. Global nuclear influence
5. Improving management effectiveness.

Additional details on the CNSC’s programs, priorities, and achievements in the past year can be found in the 2015–16 Annual Report^{Footnote xii}, and a number of performance and regulatory oversight reports can be found on the CNSC’s website.^{Footnote xiii}

1. Provide regulatory oversight of the nuclear industry

Provide regulatory oversight for licensing and certification of nuclear facilities and activities, and ensure compliance with the regulatory regime.

Description

The CNSC regulates all nuclear facilities and activities in Canada. It is imperative that all facilities and activities operate safely and make adequate provision to protect the health, safety and security of Canadians and the environment, and that Canada's international commitments on the peaceful use of nuclear energy are respected.

The licensing/certification and compliance of nearly 1,700 licensees are a major part of the CNSC's core work.

The objective of this priority is to ensure licensed operations remain safe and secure.

Priority Type^{Footnote 1}

• Ongoing

Key Supporting Initiatives

Planned Initiatives	Start Date	End Date	StatusFootnote 2	Link to the Organization’s Program(s)
licensing and oversight of existing major nuclear facilities and activities re-licensing of the Darlington (including its refurbishment) and Bruce nuclear generating stations	Ongoing	Ongoing	The specified licensing activity is complete.	Nuclear Fuel Cycle; Nuclear Reactors; Nuclear Substances and Prescribed Equipment; Nuclear Non-Proliferation
Licensing oversight of safe waste management	Ongoing	Ongoing	Ongoing
continuing to deliver commitments on the lessons learned from the Fukushima Daiichi accident	2011	March 2016	Completed
Progress Toward the Priority In 2015-16, the CNSC continued to provide regulatory oversight, in Canada, of the use of nuclear energy and materials to protect health, safety, security and the environment. The CNSC also continued to implement Canada’s international commitments on the peaceful use of nuclear energy, and continued to disseminate objective scientific, technical and regulatory information to the public. CNSC staff conducted site inspections and desktop reviews, and regulatory oversight reports were presented and discussed in public proceedings throughout the year. In May 2015, the CNSC renewed the Bruce Power operating licence as a single licence for both Bruce A and B. In December 2015, the CNSC renewed the Darlington operating licence, authorizing refurbishment activities and operation of the reactors. The CNSC continued its regulatory oversight of nuclear legacy sites: outdated or unused research facilities and buildings, buried and stored radioactive waste, and affected lands. The CNSC also continued to periodically inspect these sites to determine whether these sites and their safety documentation comply with regulatory requirements and environmental requirements. Additionally, a public hearing was held in 2015 for the renewal of the Class 1B nuclear substance processing facility operating licence for Nordion (Canada) Inc.’s facility and for SRB Technologies (Canada) Inc.’s gaseous tritium light source facility. As well, a public hearing was held in 2015 to remove the Gunnar Remediation Project Phase 2 hold point as it pertained to the remediation of the tailings deposits at the Gunnar Legacy Uranium Mine Site in Northern Saskatchewan. All Fukushima Action Items (FAIs) for all Canadian nuclear power plant licensees were closed. As part of the established compliance verification program, CNSC staff will continue to monitor FAI implementation at Canadian nuclear power plants through related station-specific Action Items.

2. Modern nuclear regulation

Ensure the CNSC uses science-based, risk-informed and technically sound regulatory practices that take into account scientific uncertainties and evolving expectations.

Description

As a science-based organization, the CNSC bases its decisions on scientific evidence. Like all organizations, the CNSC operates in a rapidly changing environment; it must continuously review changes to determine if they have meaningful implications for the way the CNSC regulates nuclear activities.

Important changes in technology or in basic nuclear science can affect the CNSC's regulatory approach. As well, fundamental changes in the way stakeholders and the public perceive their roles in the regulatory approvals process are taking place. The CNSC needs to ensure that it fully understands these societal changes and how they affect its responsibilities as a modern regulator. To meet the challenges change can introduce, the CNSC must ensure it has the right tools and processes.

For many years, the CNSC has used a “risk-informed” approach to licensing and compliance activities for the nuclear industry’s many and varied activities. The CNSC must ensure that there is a common understanding and consistent application of “risk-informed” approaches across all programs.

Priority Type

• Ongoing

Key Supporting Initiatives

Planned Initiatives	Start Date	End Date	Status	Link to the Organization’s Program(s)
strengthen regulatory oversight by considering and adapting to changes in industry, society, science and technology	Ongoing	Ongoing	Ongoing	Nuclear Fuel Cycle; Nuclear Reactors; Nuclear Substances and Prescribed Equipment; Nuclear Non-Proliferation; Scientific, Technical, Regulatory and Public Information
articulate and implement improved tools and processes for the continued enhanced use of science in regulatory decision-making	2015–16	2017–18	On track
develop a common understanding and consistent approach to “risk-informed” for both licensing and compliance	2015–16	2016–17	On track
Progress Toward the Priority In 2015-16, CNSC’s REGDOC-2.9.1, Environmental Policy, Assessments and Protection Measures, was revised based on public feedback. It went out for a 120-day public comment period, ending on March 29, 2016. The document formalizes CNSC’s comprehensive environmental protection framework, including its environmental assessment processes under the NSCA, and for projects requiring environmental assessment under the CEAA 2012 legislation. It represents a key tool for the continued use of science, and public and aboriginal consultation in regulatory decision-making. In support of articulating and implementing improved tools and processes for the continued enhanced use of science in regulatory decision-making, a CNSC working group was established to examine and enhance scientific integrity in a regulatory environment, and is focusing on defined objectives, including developing a science policy. The working group made recommendations to the CNSC’s Management Committee in February 2016, all of which were approved. The Management Committee approved the working group to proceed with: drafting a science policy in a regulatory environment along with the appointment of a science advisor documenting an open door policy developing a non-concurrence process, and improvements to the existing Differences of Professional Opinion (DOPO) process updating the technical paper publishing process To date, the open door policy and non-concurrence process have been formally documented and are out for comment by CNSC staff and scientists. The DOPO process map has been updated and is being revised by the working group to improve its effectiveness. The science policy is being drafted and a search for suitable candidates for the science advisor position is underway. Work related to developing a common understanding and consistent approach to “risk-informed” for both licensing and compliance activity is ongoing and will continue into 2016–17.

3. Trusted regulator

Ensure that the CNSC is recognized by the public and industry as an independent, open and transparent regulator, and credible source of scientific, technical and regulatory information.

Description

Through legislation, the CNSC is mandated to disseminate objective scientific and technical information. In this capacity, the CNSC must engage in meaningful, science-based dialogue to create a climate of trust and openness between stakeholders and the nuclear regulator. It must also work to ensure transparency in the public hearing process to reach audiences beyond those traditionally interested in nuclear safety and science.

The CNSC consults and provides information to Aboriginal groups, the public and communities near existing or potential future nuclear facilities to improve their understanding of how the CNSC regulates the nuclear industry.

Providing objective scientific and technical information is an important part of the CNSC’s mandate. As such, it must continually gauge how it is perceived by the public and evaluate the effectiveness of its efforts in disseminating scientific information, making adjustments to its communications strategy as required.

The objective of this priority is to ensure the CNSC is seen as independent, open and transparent, and can facilitate Canadians’ understanding of nuclear safety and science through strengthened consultation, communication and outreach efforts.

Priority Type

• Ongoing

Key Supporting Initiatives

Planned Initiatives	Start Date	End Date	Status	Link to the Organization’s Program(s)
strengthen the approach to public participation, which reflects direct community interests in order to solicit value-added input that informs CNSC decision-making	2015–16	2016–17	On track	Nuclear Fuel Cycle; Nuclear Reactors; Nuclear Substances and Prescribed Equipment; Nuclear Non-Proliferation; Scientific, Technical, Regulatory and Public Information
Take steps to ensure communities have access to information about regulated facilities and activities	2015–16	2016–17	On track
establish a mechanism for ongoing assessment of stakeholder perceptions of the CNSC	2015–16	2016–17	On track
make the CNSC an authoritative source for scientific information on nuclear safety	2015–16	2016–17	On track
Progress Toward the Priority In 2015–16, CNSC staff completed 179 outreach activities from coast to coast. The activities included waste, environmental and medical-related events, and events that focused on youth, CNSC licensees and host communities. Whether they are classroom presentations, conferences or meetings with licensees, the CNSC’s outreach activities aim to demystify nuclear science, describe the CNSC’s role as Canada’s nuclear regulator and bring a “CNSC face” into communities across the country. In 2015–16, CNSC staff participated in more than 20 engagement and consultation meetings with Aboriginal groups. These meetings covered a wide range of topics including: regulatory reviews, the operation of existing nuclear facilities, the Independent Environmental Monitoring Program, and the CNSC’s early role in the Nuclear Waste Management Organization’s Adaptive Phased Management Project for a deep geological repository for used nuclear fuel. As well, the CNSC demonstrated its commitment to Aboriginal consultation over the past year by engaging with potentially affected Aboriginal groups early in regulatory reviews, ensuring it upheld the honour of the Crown before the Commission made a decision. It also encouraged Aboriginal groups to participate in reviews and public hearings, and continued building long-term relationships with Aboriginal communities interested in CNSC-regulated facilities. During 2015–16, more than 15 Aboriginal groups participated in meetings and workshops with CNSC staff, as well as many public hearings. In addition to opening its doors to the public during public proceedings and welcoming public interventions, the CNSC engages stakeholders during CNSC 101 sessions. The CNSC 101 program strives to build understanding of and public confidence in Canada’s nuclear regulatory regime. The sessions introduce the CNSC to diverse audiences in select locations, providing them with information on how the CNSC regulates and how the public can participate in the licensing process. This past year, 7 CNSC 101 sessions were delivered. The program welcomes requests from Canadians for a session in their community. Through the ongoing review of feedback and questions received at outreach events, the analysis of media reporting, public enquiries, social media posts, and the analysis of interventions, questions and answers at Commission proceedings, the CNSC continued to take steps to ensure communities have access to information about regulated facilities and activities. Additionally, the CNSC launched a new scientific and technical Web sectionFootnote xiv to support the publishing of papers and abstracts. As well, the results of the Independent Environmental Monitoring ProgramFootnote xv are publically available online. A number of the initiatives presented in the table above are ongoing, with estimated completion times scheduled for 2016–17.

4. Global nuclear influence

To ensure the CNSC leverages and influences global nuclear efforts, relevant to Canadian interests and activities, to enhance international nuclear safety, security and non-proliferation.

Description

Safety of the nuclear industry is a global concern. In this context, the CNSC must partner with international regulators, governments, industry and the public to advance regulatory issues related to nuclear safety, security and non-proliferation of particular interest to Canada. The CNSC works with these partners to ensure clarity of roles and responsibilities across jurisdictions.

The objective of this priority is to leverage the CNSC's expertise as a world-class regulator to influence global nuclear regulatory efforts in support of Canadian interests.

Priority Type

• New

Key Supporting Initiatives

Planned Initiatives	Start Date	End Date	Status	Link to the Organization’s Program(s)
develop clear objectives and a targeted agenda, for the long term strategic benefits to Canada and the CNSC, related to nuclear regulatory issues of safety and security	2015–16	2016–17	On track	Nuclear Fuel Cycle; Nuclear Reactors; Nuclear Substances and Prescribed Equipment; Nuclear Non-Proliferation
develop an improved framework for enhanced global nuclear safety and security through Canada’s and the CNSC's support of international peer reviews	2015–16	2016–17	On track
Progress Toward the Priority Two international peer reviews took place in Canada in 2015–16. The Operational Safety Review Team (OSART) Mission (an in-depth review of operational safety performance at a nuclear power plant)Footnote xvi of Canadian nuclear power plants began with the Bruce Power facility in December 2015. In its report, the OSART outlined areas of strong performance, such as the development of an effective overall technical strategy to manage reactor safety and the use of a wide range of engaging training settings to provide employees with learning and development opportunities. Planning activities continue to be on-track for the OSART mission to Ontario Power Generation facilities and sites in 2016. The second peer review, the International Physical Protection Advisory Services (IPPAS) Mission, was conducted in October 2015 and reviewed the nuclear security regime of Canadian nuclear facilities and other radioactive material and associated facilities and activities. In March 2016, the CNSC received the final IAEA report, and it concluded that Canada conducts mature, effective, strong, and sustainable nuclear security activities, and operates a well-established nuclear security regime. A management action plan was developed and approved in March 2016 to address issues raised in the report. Additional information about the results of these peer reviews, which confirm the safety and security of Canada’s nuclear facilities, can be found on the CNSC’s websiteFootnote xvii. In October 2015, Ramzi Jammal, CNSC Executive Vice-President and Chief Regulatory Operations Officer, was elected President of the 7th Review Meeting of the Convention on Nuclear Safety. In this role, Mr. Jammal will lead discussions among participating countries on how to improve nuclear safety worldwide. Also in 2015–16, the CNSC developed an international strategy to help guide its efforts in leveraging and influencing global nuclear safety and security efforts that are relevant to Canadian interests and activities. The CNSC has established objectives and priorities under this strategy. An action plan to implement the strategy is under development.

5. Improving management effectiveness

To ensure that the CNSC is a dynamic, flexible and highly-skilled organization, supported by modern management practices and tools and responds to an evolving workforce and industry.

Description

Parliament and Canadians expect the federal government to be well-managed and to exercise sound and efficient stewardship of public funds and resources. Accordingly, the Government of Canada is challenging departments and agencies to make their programs, processes, and tools more efficient to improve the overall effectiveness of government operations. In addition, given the changes seen in the nuclear industry – both in the closing of major nuclear facilities as well as delays in starting new major projects – the CNSC must adjust to and manage impacts to its operational plans and priorities, which in turn affect its cost-recovery regime.

The CNSC must maintain a high level of effectiveness while balancing the realities of a changing work environment. It must create a flexible, effective workplace, without compromise to safety, and maintain a high level of employee engagement. The CNSC's plans will focus on adopting modern technology, tools and practices to ensure it remains nimble and adaptable in the face of regulatory oversight challenges and opportunities in the Canadian nuclear industry.

The objective of this priority is to increase the CNSC's ability to effectively respond to industry regulatory requirements, and to continue improving its management of human, capital and technological resources and activities.

Priority Type

• New

Key Supporting Initiatives

Planned Initiatives	Start Date	End Date	Status	Link to the Organization’s Program(s)
consolidate strategic planning to incorporate enterprise risk profiles, e-scans, etc. and further integrate corporate and operational planning	2015–16	2016–17	On track	Nuclear Fuel Cycle; Nuclear Reactors; Nuclear Substances and Prescribed Equipment; Nuclear Non-Proliferation; Scientific, Technical, Regulatory and Public Information; Internal Services Program
implement more rigorous strategic workforce planning supported by analysis of the CNSC's needs	2015–16	2016–17	On track
leverage technology through the development of a mobile computing strategy and increase the use of the CNSC's e-portal	2015–16	2016–17	On track
provide leadership on relevant Government of Canada regulatory reform commitments	2015–16	2016–17	On track
undertake a review of CNSC financial systems to support the Government of Canada’s strategy for the Financial Management Transformation Initiative	2015–16	2017–18	On track
Progress Toward the Priority In 2015-16, the CNSC continued to strengthen its strategic planning. This included finalizing its Enterprise Risk Management Policy and Enterprise Risk Profile and implementing a strengthened In-Year Integrated Performance Reporting process. The CNSC also continued to strengthen its strategic workforce planning capabilities, reviewed its organizational design to ensure it supports competency development and career progression, and reviewed and strengthened talent management to ensure development of required core competencies and enhance career development. New talent is being recruited and a pool of new graduates will be maintained to build capabilities and meet the CNSC’s future needs. Additional information, including progress on key behaviours and career maps, can be found in the discussion of Internal Services in Section III. The CNSC also continued to implement its financial guarantee program, and continued to enhance its mobile computing strategy. Additional details can be found in Section III, Internal Services.

For more information on organizational priorities, see the Minister’s mandate letter.^{Footnote xviii}

Section II: Expenditure Overview

Actual Expenditures

Budgetary Financial Resources (dollars)

2015–16 Main Estimates	2015–16 Planned Spending	2015–16 Total Authorities Available for Use	2015–16 Actual Spending (authorities used)	Difference (actual minus planned)
133,179,745	141,533,432	145,040,408	137,968,668	(3,564,764)

Total budgetary expenditures as shown in the 2015–16 Main Estimates exclude contributions to employee benefit plans related to personnel expenditures incurred pursuant to subsection 21(3) of the NSCA. The 2015–16 actual expenditures of $138.0 million is comprised of $39.8 million in voted expenditures, $13.4 million in contributions to employee benefit plans and $84.8 million for expenditures pursuant to subsection 21(3) of the NSCA.

The financial resource table above provides a summary of total planned spending, total authorities and actual spending for the CNSC in fiscal year 2015–16. The increase from Main Estimates to planned spending is mainly explained by contributions to employee benefit plans related to personnel expenditures pursuant to subsection 21(3) of the NSCA. The increase from planned spending to total authorities available for use is primarily due to in-year adjustments for the operating budget carry forward from 2014–15 to 2015–16 as well as reimbursement of eligible paylist shortfall expenditures from the Treasury Board Secretariat (TBS) and compensation allocations for collective agreement.

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Human Resources (Full-Time Equivalents [FTEs])

2015-16 Planned	2015-16 Actual	2015-16 Difference (actual minus planned)
791	808	17

Actual FTE use of 808 exceeded the planned FTE use of 791 due to the implementation of the workforce renewal initiative, which is part of the CNSC’s comprehensive strategy to ensure workforce sustainability by addressing the potential impact of attrition and ensuring effective knowledge transfer.

Budgetary Performance Summary

Budgetary Performance Summary for Program(s) and Internal Services (dollars)

Program(s) and Internal Services	2015–16 Main Estimates	2015–16 Planned Spending	2016–17 Planned Spending	2017–18 Planned Spending	2015–16 Total Authorities Available for Use	2015–16 Actual Spending (authorities used)	2014–15 Actual Spending (authorities used)	2013–14 Actual Spending (authorities used)
Regulatory framework program							28,509,322	27,536,138
Licensing and certification program							21,355,025	24,072,978
Compliance program							45,872,668	48,652,198
Nuclear fuel cycle program	11,523,104	12,245,890	12,791,173	13,026,747	12,336,289	10,173,578
Nuclear reactors program	38,370,191	40,776,958	42,592,667	43,377,094	41,077,974	40,002,299
Nuclear substances and prescribed equipment program	11,891,601	12,637,501	13,200,221	13,443,329	15,256,850	13,930,082
Nuclear non-proliferation program	6,299,582	6,694,722	6,992,824	7,121,610	6,847,634	5,982,791
Scientific, technical, regulatory and public information program	26,283,818	27,932,468	29,176,241	29,713,577	28,013,757	26,696,945
Subtotal	94,368,296	100,287,539	104,753,126	106,682,357	103,532,504	96,785,695	95,737,015	100,261,314
Internal services subtotal	38,811,449	41,245,893	43,082,484	43,875,931	41,507,904	41,182,973	42,402,554	45,355,707
Total	133,179,745	141,533,432	147,835,610	150,558,288	145,040,408	137,968,668	138,139,569	145,617,021

The resource levels indicated in the performance summary table above include the amounts reported for the CNSC’s Main Estimates as well as the authorities used for the previous three years, as presented in the Public Accounts of Canada. Resource levels for planned spending include the most recent plans, as presented in the 2015–16 and 2016–17 Reports on Plans and Priorities (RPPs).

Following a year-long review of the organization, the CNSC adopted a new Program Alignment Architecture (PAA), which was implemented in 2015–16. The new architecture more clearly reflects the fundamental aspects of regulatory oversight of programs as part of the CNSC’s regulatory work.

The new PAA includes the following programs:

• Nuclear fuel cycle program
• Nuclear reactors program
• Nuclear substances and prescribed equipment program
• Nuclear non-proliferation program
• Scientific, technical, regulatory and public information program
• Internal services program

The CNSC’s Main Estimates for fiscal year 2015–16 totaled $133.2 million, compared to total authorities of $145.1 million. The $11.9 million difference is mainly explained by:

• Contributions to employee benefit plans for personnel expenditures related to subsection 21(3) of the NSCA that were not included in the 2015–16 Main Estimates
• Operating budget carry forward from 2014–15 to 2015–16
• Funds received from TBS for the reimbursement of eligible paylist shortfall expenditures and compensation allocations for collective agreement

The change in planned spending from 2015–16 to 2017–18 is mainly due to forecasted salary retroactive payments and economic increases for salary costs.

The CNSC’s actual spending decreased from $145.6 million in 2013–14 to $138.1 million 2014–15 primarily due to spending in 2013–14 related to severance cash-out.  Spending remained stable from $138.1 million in 2014–15 to $138.0 million in 2015–16 as the launch of the workforce renewal initiative replaced higher salaried FTEs with an increased number of lower salaried FTEs.

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Departmental Spending Trend

Data for Departmental Spending trend graph

Departmental Spending Trend Graph

Fiscal year	Sunset Programs - Anticipated	Statutory	Voted	Total
2013–14	0	99,486,221	46,130,800	145,617,021
2014–15	0	98,088,079	40,051,490	138,139,569
2015–16	0	98,133,441	39,835,227	137,968,668
2016–17	0	109,148,676	38,686,934	147,835,610
2017–18	0	112,344,764	38,213,524	150,558,288
2018–19	0	114,254,667	38,216,024	152,470,691

Statutory Authority

The CNSC’s statutory spending authority is comprised of payments to employee benefit plans and expenditures pursuant to subsection 21(3) of the NSCA, which allows the CNSC to respend fees collected in the conduct of a portion of its regulatory oversight activities. Fees collected by the CNSC represent approximately 70% of planned spending.

The decrease in statutory spending authority from $99.5 million in 2013–14 to $98.1 million in 2014–15 resulted from a reduction in regulatory oversight activities related to Hydro-Québec’s shutdown of the Gentilly-2 Nuclear Generating Station in December 2012. Planned spending is forecasted to increase from $98.1 million in 2015–16 to $109.1 million in 2016–17 primarily due to projected increases in salaries, including retroactive salary payments, and to the implementation of the workforce renewal initiative. The increase in planned spending from 2016–17 to 2018–19 is mainly due to projected increases in the cost of living, including salaries and wages.

Voted Authority

The decrease in voted authorities from 2013–14 to 2014–15 is attributable to a one-time payout of federal government employee benefits related to accumulated severance in 2013–14. The decrease in voted authorities from 2015–16 to 2016–17 is primarily the result of a decrease in the operating budget carry forward to 2016–17 and a decrease in funding for the government-wide Single Window Initiative to streamline government import regulations and border processes for commercial trade, announced in Budget 2013. The decrease in voted authorities from 2016–17 to 2017–18 is mainly due to the completion of funding for the Single Window Initiative. The voted authorities remain stable from 2017–18 to 2018–19.

Sunset Programs

The CNSC does not have any sunset programs funding at this time.

Expenditures by Vote

For information on the CNSC’s organizational voted and statutory expenditures, consult the Public Accounts of Canada 2016.^{Footnote xix}

Alignment of Spending With the Whole-of-Government Framework

Alignment of 2015-16 Actual Spending With the Whole-of-Government Framework^{Footnote xx} (dollars)

Program	Spending area	Government of Canada Outcome	2015–16 Actual Spending
1.1 Nuclear Fuel Cycle	Social affairs	A safe and secure Canada	10,173,578
1.2 Nuclear Reactors	Social affairs	A safe and secure Canada	40,002,299
1.3 Nuclear Substances and Prescribed Equipment	Social affairs	A safe and secure Canada	13,930,082
1.4 Nuclear Non-Proliferation	Social affairs	A safe and secure Canada	5,982,791
1.5 Scientific, Technical, Regulatory and Public Information	Social affairs	A safe and secure Canada	26,696,945

Total Spending by Spending Area (dollars)

Spending area	Total Planned Spending	Total Actual Spending
Economic affairs
Social affairs	100,287,539	96,785,695
International affairs
Government affairs

Financial Statements and Financial Statements Highlights

In accordance with TBS policy, the CNSC reports on a full accrual accounting basis, based on generally accepted accounting principles. The tables below provide highlights from the CNSC’s statement of financial position and statement of operations, as presented in its audited financial statements. As such, there are differences between these tables and those presented in other sections of the 2015–16 Departmental Performance Report, which are prepared on the modified cash basis of accounting.

Condensed Statement of Operations (unaudited) For the Year Ended March 31, 2016 (dollars)

Financial Information	2015–16 Planned Results	2015–16 Actual	2014–15 Actual	Difference (2015–16 actual minus 2015–16 planned)	Difference (2015–16 actual minus 2014–15 actual)
Total expenses	157,495,000	155,045,686	153,868,757	(2,449,314)	1,176,929
Total revenues	106,783,000	106,548,343	104,830,693	(234,657)	1,717,650
Net cost of operations before government funding and transfers	50,712,000	48,497,343	49,038,064	(2,214,657)	(540,721)

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The planned results for fiscal year 2015–16 are as set out in the future oriented statements published within the 2015–16 Report on Plans and Priorities.

The CNSC total expenses increased by 0.8% or $1.2 million from 2014–15 to 2015–16 while revenues increased by 1.6% or $1.7 million from 2014–15 to 2015–16. The increase in total expenses was mainly due to an increase in salary and employee benefits expenses attributed to cost-of-living adjustments and the implementation of the workforce renewal initiative, offset by a decrease in the provision for severance benefits. The increase in revenues is attributable to an increase in expenses incurred to undertake regulatory activity plans as well as a review of charging formulas used for Formula fees, in order to better align them with regulatory operating activities.

The format and content of the Condensed Statement of Financial Position follows:

Condensed Statement of Financial Position (unaudited) As at March 31, 2016 (dollars)

Financial Information	2015–16	2014–15	Difference (2015–16 minus 2014–15)
Total net liabilities	44,223,206	41,532,530	2,690,676
Total net financial assets	29,743,329	27,095,110	2,648,219
Departmental net debt	14,479,877	14,437,420	42,457
Total non-financial assets	11,482,926	10,055,338	1,427,588
Departmental net financial position	(2,996,951)	(4,382,082)	1,385,131

The increase in the CNSC’s net liabilities is due mainly to the accrual of a liability for pending increases to salary costs.

The increase in the CNSC’s net financial assets is primarily a result of an increase in accrued salaries and wages due from the Consolidated Revenue Fund (CRF). Amounts due from the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the CNSC is entitled to draw from the CRF without further authorities to discharge its liabilities.

The increase in the CNSC’s non-financial assets is due to a net increase in the value of tangible capital assets, resulting from in-year purchased capital assets exceeding the value of annual amortization.

The graphs below show the CNSC’s cost of operations and revenues by expenses and revenue category.