The safe and responsible delivery of energy provides considerable economic benefits – employment, training, taxes and investment. Pipelines deliver economic benefits to all Canadians – from the small communities that count on energy to thrive to the large urban centres that use energy to drive their industry. In this section, we report on the year’s performance and our ongoing initiatives to benefit communities and Canada’s economy.

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Invested in Canadian capital projects

In 2016, our members invested $7.9 billion in capital projects – helping to ensure Canada continues to have the safe and efficient transmission pipeline infrastructure it needs to stay competitive.

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Contributed to government tax revenues

In 2016, our members contributed $1.5 billion to government tax revenues including income, property, motor fuel and carbon taxes.

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Of that $1.5 billion, our members paid in $732 million in 2016 in property taxes to municipalities in communities where we operate pipelines across Canada. In many rural municipalities with transmission pipelines, our industry is the largest single contributor to municipal taxes.

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Contributed to Fort McMurray wildfire relief

In 2016, CEPA and its member companies, including employee contributions, donated more than $2.1 million in support of Fort McMurray wildfire relief.

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Our members are currently proposing to invest more than $50 billion in Canadian pipeline projects over the next five years.

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Invested in community initiatives

In 2016, our members invested $31.1 million in community initiatives across Canada, including $3 million in Indigenous communities.

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Labour income provided by the transmission pipeline industry in 2015*

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Contributed to Canada’s economy in 2015 from the operation of energy transmission pipelines*

*Source: Canada’s energy pipelines are an overlooked source of economic prosperity. In 2013, for the first time ever, CEPA commissioned a study to detail the economic impacts of Canada’s transmission pipeline industry. The 2013 study, The Economic Impacts from Operations of Canada’s Energy Pipelines (Angevine Economic Consulting Ltd.) was updated in 2015 and will be updated again in the spring of 2018. Highlights of the 2015 update are captured here. The full study is available at http://www.cepa.com/Economic-Impacts-from-Operation-of-Canadas-Energy-Transmission-Pipelines-2015

Member initiative: Early stakeholder engagement key to success on Alliance Pipeline’s Regina Bypass project

Third-party crossings on pipeline systems are common for CEPA members, so natural gas transporter Alliance Pipeline wasn’t surprised to be involved in accommodating the Regina Bypass. However, once Alliance received a full briefing from the Saskatchewan Ministry of Highways in 2015, it was clear this project would be much more than a routine third-party crossing.

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The Regina Bypass is the largest transportation infrastructure project in Saskatchewan’s history. When completed in 2019, the bypass highway will cross a variety of existing infrastructure and utilities, including Alliance’s main pipeline (or mainline) in two locations.

For Alliance, it meant that new sections of heavy wall pipe would need to be installed at each of the two locations where the new highway will cross the mainline. This was to comply with the CSA standard requirements for pipeline location factor change as a result of the highway construction. The abandoned section of existing pipe was removed. The flow of the 3,848-kilometre Alliance system would also have to be shut down for about seven days to connect the new pipe sections.

The Alliance project team understood that regulatory compliance, effective stakeholder engagement and significant planning were critical for project success. For example, early contact was made with the National Energy Board about the preferred pre-job method to safely evacuate the natural gas in the affected 35-kilometre pipe segment. Flaring (controlled burning of the natural gas) was the NEB’s preferred option – as opposed to venting the gas to the atmosphere.

Alliance’s priority was to lower the pressure in the pipeline segment to the greatest extent possible to maximize natural gas conservation and minimize emissions and flaring time. Prior to the flaring, they successfully reduced the normal operating pressure in that segment by 41 per cent, meeting their intended objective.

Understanding that the flaring might be of interest in the local area, Alliance was quick to initiate comprehensive public outreach and engagement with landowners, municipal interests and other businesses and industry in the immediate area. Alliance wanted to ensure the awareness of local stakeholders, so it focused on one-on-one contacts and conversations and in-person presentations to councils and first responder associations.

Alliance also communicated with its customers throughout the time before and after the service outage, to enable them to prepare for the shut down and generally help mitigate gas transportation impacts.

Other notification and engagement activities included:

  • Early notification to residents of Regina and surrounding areas about the construction and flaring using a variety of media, including newspaper and radio advertising in advance of the activities.
  • Consulting the airport and air traffic control authorities as the flaring site was approximately seven kilometres west of the Regina International Airport. Alliance also arranged for a “Notice to Air Men” (NOTAM) during the flaring, to alert aircraft pilots about the tall flare stacks.
  • In-person notifications to landowners to alert them about noise and visibility.

The Alliance team’s focus on engaging the public early and comprehensively paid dividends. No complaints were received regarding the flaring or the pipe replacement work.

In October 2016, CEPA member, Alliance Pipeline, completed the construction work required to accommodate the Regina Bypass. Final clean up and reclamation on the pipeline right-of-way occurred in spring 2017.

The consortium managing the Regina Bypass Project gave Alliance high praise for safety, leadership, early engagement and open communication.

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CEPA at the frontlines of Canada’s environmental and regulatory reviews

CEPA and our members are actively participating in the federal government’s review of Canada’s environmental and regulatory processes. The Canadian Environmental Assessment Act (CEAA) and the modernization of the National Energy Board (NEB) are both part of the comprehensive review, which began in mid-2016.

By participating in the reviews, CEPA is giving our members a single clear voice in Canada’s environmental and regulatory processes to ensure decision-making continues to be based on evidence and science, and is fair, transparent, timely and coordinated. As part of the CEAA review process, CEPA participated on the Multi-Interest Advisory Committee.

Through the Committee, CEPA worked closely with representatives from Indigenous organizations, industry associations and environmental groups to provide input to the government appointed Expert Panel responsible for conducting the review and continues to provide advice to the Minister of Environment and Climate Change following the Panel’s report.

A separate CEPA committee comprised of leaders and experts from member companies supported our participation by helping to develop industry-wide positions and make recommendations. One of the key recommendations was a two-part review for major pipeline projects that aims to create clarity on key policy issues earlier in the decision-making process.

CEPA also participated in reviews for the Navigation Protection Act and Fisheries Act.

All four reviews are intended to help foster public confidence in regulatory review processes and ensure that Canada’s energy sector remains competitive for the long-term.

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Member initiative: Trans Mountain partnership prepares Indigenous women for construction jobs

When the National Energy Board (NEB) approved Kinder Morgan Canada’s Trans Mountain Expansion Project (TMEP) in November 2016, the team was well-prepared for the NEB’s conditions to provide training for local, regional and Indigenous people.

As part of their early preparations, TMEP had proactively made training commitments to Indigenous groups and local communities. They had also entered into partnerships with training institutions across Alberta and B.C. to prepare people for construction and other roles that require short-term training.

One example is a partnership with Women Building Futures (WBF) to recruit, assess and train Indigenous women for entry into the pipeline construction field. WBF is an Alberta-based organization that prepares women for jobs in industries where they have been historically under-represented. WBF has a consistent employment rate of 90 per cent for those who complete training.

The newly created eight-week Kinder Morgan’s Trans Mountain Pipeline Construction Labourer Training Program will train 24 Indigenous women in two separate sessions, offered in July 2017 and February 2018. WBF values their commitment to improving the economic prosperity of all women. WBF’s Indigenous Engagement team sought out feedback from Indigenous communities and organizations to strengthen their proven-successful program delivery method for this new program.

The program began with a five-day career builder session to identify suitable candidates for training and to help them prepare. Forty-three Indigenous women attended the sessions, which were held in Stony Plain, Edmonton, Wetaskiwin and Hinton, Alberta. TMEP provided a project briefing for the prospective participants as part of the program’s kick-off sessions.

Once the training is complete, program participants will be fully equipped for construction jobs on the Trans Mountain Project, or elsewhere. They will have priority for hiring by TMEP’s contractors.

Through partnerships with communities, governments and training institutions, TMEP expects to train around 800 people by the time the project is completed and operating in late 2019. Some of those trained could be employed on the project.

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Joining forces to build world-leading spill response for British Columbia

In our 2015 industry performance report, we shared the work underway to enhance a land-based spill response regime for B.C. Two years later, CEPA and our members continue to collaborate with the B.C. Ministry of Environment on developing this policy direction.

CEPA has teamed up with several other industry associations to develop an industry-led provincial response organization, which is now called the BC Preparedness and Coordination Organization (PCO). The focus of the organization is to enhance information-sharing, communications and coordination among the various industries involved.

Since the beginning of 2017, the PCO has been quite active. It has developed an inventory of existing response capabilities and is working towards identifying key areas for improved collaboration that would provide the most value for British Columbians.

Other 2017 initiatives include working with First Nations communities and local governments on planning and preparedness, such as joint emergency management exercises, and organizing a symposium to bring all interested stakeholders together to increase awareness.

We will continue to engage with the BC Ministry of Environment to help shape the PCO to meet shared goals.

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Member initiative: First Nations and Pembina Pipeline combine strengths through environmental training program

Protecting the land, water and wildlife is a top priority for First Nations when it comes to infrastructure projects. That’s why Pembina Pipeline developed a program to build in the environmental interests, strengths and priorities of the First Nations communities they work with.

2017 marks the second year of the Environmental Trainee Program, which offers training to First Nations businesses on the environmental aspects of pipeline construction. The program offers custom training for First Nations community members near the company’s operations, and provides job opportunities with contractors and Pembina Pipelines.

Through in-class instruction and on the job experience, participants develop an understanding of the procedures and construction methods used to install pipelines, while working to protect the environment. They also learn about environmental planning (including regulatory requirements), pipeline inspection, safety, reclamation, operations and pipeline integrity.

The skills and certification a participant receives from the program can lead to a career as an environmental technician. To date, over 80 people have participated in the training, which has led to over 25 environmental jobs on six different projects. Participants, First Nations communities and contractors alike find the program valuable.

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Pipeline projects receive government approval

After a long and rigorous review process, two key pipeline projects received government approval in November 2016 – Enbridge’s Line 3 Replacement Project and Kinder Morgan’s Trans Mountain Expansion Project. TransCanada’s Keystone XL (KXL) received presidential approval in March 2017. These projects will contribute significantly to the Canadian economy, providing employment and tax revenue and broader market access for Canadian product.

2,000
full-time direct and indirect jobs

Employment*
The development and construction phase of these projects will generate an average estimated 12,000 temporary full-time jobs annually and during the first 20 years of operation will sustain more than 2,000 full-time direct and indirect jobs across Canada every year.

$1.7B
estimated tax revenue

Tax Revenues*
These projects will result in estimated tax revenues of $1.7 billion for Canadian federal and provincial governments during the construction phase and more than $3 billion during the first 20 years of operation.

$17B
contributed to GDP over the first 20 years of operation

Gross Domestic Product*
These projects will contribute almost $8 billion in additional Gross Domestic Product for the Canadian economy during the development and construction phase and more than $17 billion over the first 20 years of operation.

Capacity: Collectively these projects will provide additional capacity of 1.8 million barrels per day of crude oil exiting Western Canada.

*TransMountain and Enbridge Line 3. At the time of publishing, final details on the specific Canadian impacts of KXL had not been finalized. Numbers will be updated when they become available.

For more information visit: www.transmountain.com, www.enbridge.com/projects-and-infrastructure/projects/line-3-replacement-program-canada, www.keystone-xl.com (U.S. impacts).

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