What comes to mind when you think of ‘regulation’?
Traditionally, regulations set detailed rules that protect people and the environment. These are very black and white – either you adhere to every single item or you are subject to enforcement actions.
Now, however, the concept of performance-based regulation is gaining ground. Under this model, a regulator sets performance goals – whether it be for industry as a whole or for specific organizations, activities or areas, leaving room for organizations to achieve that goal in most efficient way for their operations. This allows companies to focus on continuously improving…..rather than devoting time and resources to meeting checklists.
Using a performance-based system, a regulator can look at which organizations or operations have a history of falling short of performance goals, and focus their limited resources on monitoring those organizations – getting the most bang for their regulatory buck.
CEPA Integrity First® and performance-based regulation
In assessing where to focus compliance or oversight efforts, regulators gauge industries and operations on a matrix of probability and consequence. This allows them to identify areas that have the highest risk to citizens or the environment.
Integrity First demonstrates the Canadian transmission pipeline industry’s proactive commitment to continuous improvement in the areas of safety, environment, and socio-economics.
Through Integrity First, the Canadian transmission pipeline industry, as represented by CEPA members, is able to demonstrate a history of continuous improvement, a rate of significant incidents that continues to drop, and focused risk management – all while meeting the performance goals outlined by the regulator.
By following this cycle of continuous improvement and reporting, participants in Integrity First are taking proactive steps to improve their operations.
Over time, with increased awareness of Integrity First, regulators will come to recognize that CEPA members are safe, reliable, and meeting regulators’ performance goals. And, when looking at where to focus their limited resources, the outcomes and results of Integrity First can provide regulators with confidence in CEPA members’ safety record and allow for potential efficiencies as they allocate resources.