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Section II – Analysis of Program Activities by Strategic Outcome
2.1 Strategic Outcome
Facilitate the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project while maximizing social and economic benefits and minimizing adverse social and environmental effects.
2.1.1 Program Activity by Strategic Outcome
| 2008-09 Financial Resources | 2008-09 Human Resources (FTEs) | ||||
|---|---|---|---|---|---|
| Planned Spending |
Total Authorities |
Actual Spending |
Planned | Actual | Difference |
| 265,000 | 257,211 | 139,718 | 2 | 2 | 0 |
| Expected Results |
Performance Indicators |
Performance Status |
Performance Summary |
|---|---|---|---|
| In concert with other federal government departments, the NPA will develop a regulatory framework which accommodates modern environmental practices, takes into account the rights of First Nations communities, and considers the interests of provincial-territorial governments, so as to be prepared to effectively regulate and to facilitate the planning and the construction of the Foothills pipeline, should a detailed project plan come forward. The NPA's activities are dictated by the timing and pace of the planning and construction of the pipeline. | Regulate the planning and construction of the Canadian portion of the Alaska Highway Gas Pipeline Project. | Mostly met – no construction took place during the 2008-09 fiscal year. |
The NPA maintained a state of readiness to respond to any requests initiated by Foothills. |
| The NPA will effectively respond to any regulatory filings by Foothills and make certain that the Act is properly administered. | Met all – the NPA administered the Act and there were no regulatory filings requiring response. | The NPA maintained a state of readiness to respond to any requests initiated by Foothills. | |
| To allow the NPA to prudently refine its plans and state of readiness to respond and to enhance its engagement with other participants that would be involved in the planning and the construction of this phase of pipeline development, an adequate level of staff will be hired. | Mostly met – the NPA began its search for a permanent, full-time assistant commissioner. | The NPA now has a full-time assistant commissioner. |
2.1.2 Benefits for Canadians
An Alaska Highway Natural Gas Pipeline would be the largest private sector infrastructure investment in North American history. Such a project would make considerable contributions towards Canada's strategic outcome of Strong Economic Growth.
Natural resources have contributed to the development of Canada as a modern industrial society generating prosperity (e.g., jobs) and a higher quality of life for generations of Canadians. In 2007, Canada's energy sector accounted for 6.9% of gross domestic product (GDP); accounted for 2 percent of total employment; and was the source of a record $138 billion in merchandise exports. In 2008, capital expenditures in the energy sector amounted to $81.2 billion, representing 23.5 percent of total public and private investments in Canada.
In addition to the macroeconomic benefits associated with an Alaska Highway pipeline, there would also be significant regional economic benefits including northern development.
2.1.3 Performance Analysis
In working toward realization of its strategic outcome, the Agency's principal task for 2008-2009 fiscal year was to initiate preparedness to respond to regulatory filings by Foothills and to make sure that the Northern Pipeline Actwas properly administered. With the renewed interest in northern pipelines the Agency was called on to provide information in the event that the northern segment of the pipeline (Phase II) proceeded, including an examination of the commitments of the Government of Canada that are embodied in the Actand changes to other legislation that have occurred since the pipeline was certificated.
The agreements that are currently in place with NRCan and other government departments continued to facilitate efficiencies in the administration of the Act. An administrative agreement exists between the Yukon Territory Government and the Agency to facilitate the administration of an easement agreement related to land access rights granted to Foothills for the pipeline. The Agency collected the annual fee of $30,400 from Foothills on behalf of Indian and Northern Affairs Committee (INAC) and redistributed an appropriate share to the Yukon Territory Government. These transactions are excluded from the calculations of recoverable costs mentioned in Section 3.2 Financial Performance.
In light of the low-level of activity in the Agency, there are no specific RPP commitments or parliamentary committee recommendations to be implemented.
2.1.4 Lessons Learned
On account of very little activity on the Foothills pipeline project during the fiscal 2008-2009 period, most Northern Pipeline Agency activity was administrative in nature. Therefore, there are no lessons learned to report at this time.
