annual report 2020 - absa the pressure equipment safety

››› absathe pressure equipment safety authority

For the year ending October 31, 2020ANNUAL REPORT 2020

An Overview

››› Table of

CONTENTS

November 1st, 2019 – October 31st, 2020

Corporate Profile ...................................................................................................... 1

Chairman’s Message ................................................................................................. 4

The Year in Review ................................................................................................... 6

2020 Financial Highlights ....................................................................................... 19

ABSA - 2 Annual Report 2020 1

The fundamental purpose of ABSA is a simple one: within the scope of its mandate and operations, to preserve public safety. As a regulatory organization, delegated by the Alberta Government in April 1995, ABSA’s mission is to work with our stakeholders to ensure pressure equipment is designed, constructed, operated and decommissioned in a manner that protects public safety.Services under the Safety Codes Act include: design review, registration and inspection of pressure equipment; registration of Quality Programs; and examination, testing and certification of power engineers, pressure equipment inspectors, welding examiners and pressure welders.

Safety has long been a concern and a priority of all pressure equipment industry stakeholders, including owner-operators and the agencies charged with administering safety codes and regulations. In fact, the obvious need for the safe operation and quality manufacturing of pressure equipment has led to safety legislation worldwide. In Alberta, 2020 marked the 123rd year of boiler and pressure vessel safety ordinances. It also marked the 25th year of ABSA’s delegation to deliver the pressure equipment safety program.

Changes in program delivery by government, combined with industry’s strong support for the continuation of safety services, led to ABSA’s establishment as a Delegated Administrative Organization (DAO) responsible for pressure vessels, boilers and pressure piping systems in Alberta. ABSA carries out its duties and fulfills its obligations in conjunction with its public and private sector partners; the American Society of Mechanical Engineers (ASME), Canadian Standards Association (CSA), and Alberta regulations.

The costs of operating ABSA are funded through fees paid by the industry and other users of ABSA’s services. Fees are set by the Board of Directors, subject to the approval of the Minister of Municipal Affairs. ABSA works with designers, manufacturers, users, and other stakeholders to promote pressure equipment safety. ABSA is a not-for-profit organization registered under the Societies Act, reporting to a Board of Directors representing manufacturing, industry, labour, education and the public. The Board reports annually to the Minister of Municipal Affairs.

Corporate

PROFILE›››

2 ABSA - Annual Report 2020

›››Design Review and Registration Includes the review and, when found acceptable, registration of new pressure equipment designs, joining procedures and repairs and alterations to existing pressure equipment to ensure compliance with CSA, ASME and other applicable codes and standards.

New Construction Inspections Ensures that pressure equipment is constructed in accordance with legislative requirements and applicable codes and standards, as well as the fabricator’s registered Quality Management System.

Initial and Installation Inspections Ensures that fabrication and installation meet all provincial legislation, codes and standards prior to pressure equipment being placed in service in Alberta.

In-Service Inspections ABSA conducts regular inspection of pressure equipment and audits owner’s inspection and integrity management programs to ensure pressure equipment remains safe for operation.

Certification and Accreditation of OrganizationsVerifies competency and compliance for organizations certified to construct, alter, repair, conduct integrity assessments and service pressure equipment and for owner-users who maintain integrity programs for inspecting their equipment.

Glossary of

TERMS


October 31st, 2020 ABSA Board of DirectorsMs. Michelle ColletonChair

Mr. Alejandro CarvalloVice Chair

Ms. Pamela McIntyreTreasurer

Mr. Gary WoodsSecretary

Dr. Neil FassinaPast Chair

MembershipMembership in the Association currently consists of the Board of Directors and ABSA Officers.

There were no retirements or appointments of new directors this year.

October 31st, 2020 ABSA Executive TeamMr. Mike PoehlmannGeneral Manager, Chief Inspector and Administrator & Officer

Mr. John SiggersExamination & Certification Manager

Mr. Robin AntoniukAssistant Chief Inspector & Officer

Mr. Lou PetrusevskiDesign Survey Manager

Mr. Djordje SrnicAssistant Chief Inspector

Ms. Monica ElfstedtController & Officer

Mr. Mike PrefumoInspections Manager

Mr. Jared UditskyHuman Resources Manager

Mr. Mathew FiszerInformation Technology Manager


To say the least, 2020 has been a challenging and historic year, a year that has changed the lives of Albertans, Canadians and communities around the world. As I write this message, Alberta is on the verge of experiencing the peak of the COVID-19 pandemic and many are faced with the compounded social and economic impacts of high unemployment and low energy prices. As oil prices crashed and an unprecedented public health crisis emerged ABSA rose to the challenge. I could not be more proud of the way ABSA’s Board Directors, Management and teams have focused on our value that ‘People are Safe’. ABSA’s offices were closed in early March, and systems and processes were quickly modified to permit all employees to work from home. Some services were temporarily suspended during the initial “lock-down” stage of the pandemic response, while other services carried on under practices that exceeded the public health orders and guidelines. There was minimum service disruption to our stakeholders.

We are pleased to report that ABSA’s COVID safe work procedures have indeed been very effective. As at the operating year end one ABSA employee had become ill with COVID-19. However, we understand the illness was not contracted in the course of ABSA work. While dealing with the health risks of the pandemic added to on-the-job hazard’s, normal work with its hazards continued, and we are also pleased to report that ABSA employees had another safe year in terms of injuries to employees, with no lost time incidents. This is a consistent testament to ABSA’s Health and Safety Program, which is audited each year by a 3rd party. This year we achieved an audit score of 76%.

From an industry perspective, the reported number of fires, accidents and unsafe conditions were again higher than reported last year. The increase is the result of the ongoing campaign to increase awareness of reporting requirements. Five injuries were reported which, while unfortunate, were fewer injuries than reported last year. Tragically, one fatality, which was not related to failure of pressure equipment, was reported when a worker died from a fall from scaffolding inside a large power boiler. All pressure equipment incidents are investigated to determine the root cause for the purpose of identifying actions to prevent recurrence. Summaries of accidents are reported on the ABSA website to heighten the awareness of the general public to the hazards of pressure equipment in an effort to prevent injury. (www.absa.ca/unsafe-condition-accident-fire-reporting)

With respect to operations, management closely monitored the enterprise risks associated with the economic recession, and in consideration of the short and medium term economic outlook, decided to reduce costs with the most significant impact being a decrease in the number of employees. This reduction was managed with respect for the valued contributions of those who in some cases had worked with ABSA for over 30 years. The management team has worked to balance ABSA’s workforce against anticipated demand, while maintaining strong succession plans.

››› Board Chair’s

MESSAGE


Financially, despite the significant decline in activities ABSA’s revenues and expenses were managed to keep the deficit and reserves at year end in line with the Board’s targets for financial risk mitigation. The independent external auditor gave ABSA a clean financial audit again this year. Having evaluated ABSA’s financial position and sources of income, the Board is satisfied there are no commercial, financial or other pressures that threaten ABSA’s ability to provide services impartially. There will be no increase to ABSA’s fee schedule in 2021.

ABSA Managers, Assistant Deputy Minister Dale Beesly, and Chief Executive Officer of the Safety Codes Council, Brian Alford, met with the Board for the annual strategic planning session in February. There was excellent discussion regarding the challenges and opportunities to be addressed by both ABSA and the Board in the next few years. The end result was agreement on the key guiding principles and strategies for the 5 Year Business Plan, which was ultimately approved by the Board in October.

We are satisfied that the 5 Year Plan contains the correct tools and strategies to address the challenges of the current business environment, to deliver the pressure equipment safety program in Alberta in a manner that meets the requirements of our delegation, and maintains ABSA’s solid reputation as a leader in pressure equipment safety.

There were no changes in ABSA Board membership in 2020.

On behalf of the Board of Directors, I wish to acknowledge the outstanding support we have received this year from the entire team at ABSA. My fellow Board members as well are to be recognized for their excellent stewardship and commitment to the safety of employees, our industry partners and our communities. I extend my appreciation to Gary Woods (representing the power generation sector), Pam McIntyre (representing the oil & gas sector), Alejandro Carvallo (representing the manufacturing sector), and Neil Fassina, (representing post secondary institutions).

It has been a privilege to have started my term as Chair during this 2019/2020 year.

Respectfully submitted,

Michelle ColletonBoard of Directors Chair - ABSADecember, 2020

[original signed by]


›››No Serious AccidentsWe are pleased to report that ABSA employees had a safe year in terms of workplace accidents and incidents, as there were no lost time injuries. We did experience 3 employee incidents that required medical aid, but no long-term injuries or illnesses resulted. One employee was involved in a non-injury vehicle accident. Driving ranks as the most hazardous occupational activity for our employees. Collectively, they drive approximately 1 million kilometres per year travelling to conduct inspections, audits and examinations. ABSA mandates that employees who regularly drive participate in advanced driver training courses.

Due to COVID-19 our annual safety management system audit was delayed until November 2020. ABSA’s health and safety management system Certificate of Recognition (COR) is valid through 2021.

Workforce ChangesAs a consequence of the economic recession brought about by COVID-19 and low energy prices, demand for services sharply declined. With economic forecasts suggesting continuing low activity, we had to reduce our employee complement to rebalance it against the anticipated demand for services.

ABSA’S Quality Management SystemIn 2018, ABSA was successful in obtaining ISO 9001:2015 registration of our quality management system (QMS). In 2019 we continued implementation of our QMS and worked on enhancing it by including conformance to ISO 17020, 17021 and 17024. This included development of separate quality manuals for our key processes. We transitioned one of our employees to the role of Corporate Quality Assurance Coordinator to provide monitoring of the entire QMS. The QMS is subject to annual internal audits and to annual surveillance audits by the Registrar. Audits were conducted completely through online platforms, as ABSA offices were closed and most ABSA employees were working from home because of the COVID-19 pandemic.

Commitment to Training and CompetencyABSA is committed to providing programs aimed at ensuring people engaged in activities affecting pressure equipment safety are trained and competent. We demonstrate this commitment through various competency certification programs and technical training for our staff and our pressure equipment industry clients.

A considerable amount of effort was spent on staff training again this year. A total of 13,979 hours were recorded as training, compared to 14,927 hours last year. In addition to many hours of on-the-job training with mentors, new technical staff will typically undergo 400+ hours of formal training in their first year of employment.

The Year in

REVIEW

lost time incidents0


Customer ServiceABSA takes the position that it is more effective to promote industry compliance with a customer service based approach to delivering our services. We monitor and follow up responses to an online customer feedback survey and track customer compliments and complaints that we receive through other means. 90% of the responses to our online survey in the past year indicated they were satisfied with the services they receive from ABSA.

External TrainingABSA develops and delivers seminars that are intended to improve the knowledge and understanding of Alberta legislation and program requirements for pressure equipment safety. In 2020, we presented a total of 19 seminars; 13 public seminars and 6 private seminars were presented at various locations across Alberta. Unfortunately, 22 scheduled seminars were cancelled (from mid-March through October) as a result of ABSA’s response to the COVID-19 pandemic.

2018 Fiscal Year 2019 Fiscal Year 2020 Fiscal Year12 Seminar Topics 11 Seminar Topics 11 Seminar Topics

47 Seminars 47 Seminars 19 Seminars

72 Seminar Days 84 Seminar Days 32 Seminar Days

572 Hours of Instruction



867 Attendees 975 Attendees 278 Attendees

Quality Systems Certification Program (QSCP)The scope of the QSCP includes verification audits and certification of quality management systems for the construction, repair and alteration of boilers, pressure vessels, pressure piping systems and fittings; conducting performance qualification testing of pressure welders and machine welding operators; servicing and setting pressure relief valves (PRV’s), managing the integrity of in-service pressure equipment (for owner-users) and conducting integrity assessments (for integrity assessment organizations).

Audits are conducted to verify effective implementation of certificate holders’ quality systems. A total of 590 quality management system audits were conducted this year, compared to 628 last year. The slight decline was due to reduced activity in the spring as a result of ABSA’s COVID-19 measures implementation, and broader shut-downs implemented under the public health orders. Audits are conducted at boiler, pressure vessel, piping and fitting shops, pressure relief valve servicing shops, welder testing organizations, owner-user organizations and integrity assessment organizations. The total number of certified companies currently stands at 1,266. There were 1,286 at this time last year.

90% satisfaction rate

with ABSA services from online survey

590 quality system audits


In-Service Pressure Equipment Inspection Program Focused on High Risk EquipmentInitial/Installation Inspections are performed on pressure equipment after field installation work is complete. The purpose of an installation inspection is to verify that the equipment is safe for operation, and to initiate inspection records. An initial inspection of pressure equipment manufactured outside Alberta includes verification of design registration. A total of 2,066 initial/installation inspections were conducted in 2020, compared to 2,837 in 2019.

Periodic In-Service Inspections are performed at intervals throughout the service life of pressure equipment to verify its continued fitness for safe operation. Inspection intervals are determined in accordance with established condition and risk-based requirements. A review of inspection and related statistics at year’s end show:

· There were 179,823 vessels subject to in-service inspection and monitoring at year-end. This represents a decrease of 3.8% from the 187,008 items reported in-service at the end of fiscal 2019.

· Of the vessels subject to in-service inspection and monitoring, approximately 22,839 items are deemed “non-process” equipment and are generally considered subject to individual inspection by ABSA. Of the remaining 156,984 “process” equipment items, 138,380 are subject to integrity assessment by their owners under ABSA-certified owner-user programs. Owners are also responsible for the in-service integrity assessment of the remaining 18,604 process equipment items.

179,823 vessels

subject to in-service inspection & monitoring

New Construction Inspection ABSA provides independent third-party Authorized Inspector services for pressure equipment constructed to CSA and ASME codes in Alberta.

ABSA serves as the Jurisdictional Authorized Inspection Agency in ASME joint reviews of Alberta applicants for ASME certification.

Fabrication activity decreased significantly in 2020 due to a combination of the economic recession and the COVID-19 pandemic. ABSA signed off on 4,966 data reports for pressure equipment built at Alberta fabrication facilities this year. There were 9,158 items built in 2019. For context, fabrication activity level had a record high 22,700 items built in 2006.

ABSA successfully renewed its new construction Authorized Inspection Agency accreditation from ASME. The US-based survey team was unable to visit our offices due to the COVID travel restrictions, so the survey was conducted remotely using online meeting tools. No non-conformances were noted during the two-day survey.

4,966 data reports signed-off


· A total of 13,958 in-service inspections were performed by ABSA safety codes officers this year. This is a decrease from the 15,605 inspections completed in 2019. The decrease can be attributed to COVID-19 measures which restricted access to owner sites. A remote in-service inspection procedure was developed to provide safety codes officers with a mechanism to conduct inspections when access to site is restricted.

ABSA in-service inspection priority continues to be directed at items installed at locations with high public exposure, such as schools, hospitals, apartment buildings, offices and retail facilities; with lower priority placed on items installed at locations with low public exposure such as non-owner-user process facilities, mines, sawmills, cement plants and other industrial installations. The inspection status of high priority public occupancy equipment at the end of October 2020 stands at approximately 98.9% current, with 134 items currently past due for inspection. This is a normal overall inspection status for this time of year. ABSA has processes in place to ensure appropriate escalating action is taken to follow up on any outstanding inspections.

A web based field inspection application was developed and implemented for certain types of equipment. The safety codes officers can update inspection data in the field, and the application provides a platform for quality checks of the inspection data by administrative staff and supervisors. Certificates of inspection permits can then be digitally authenticated by the safety codes officer and emailed to the owner. This approach replaces the traditional paper-based approach. Phase 2 of the web application development will continue in 2021.

Owner’s Pressure Equipment Integrity Management ProgramA risk assessment process is used to determine which owners of pressure equipment are required to develop, implement, and maintain a certified Pressure Equipment Integrity Management (PEIM) Program. Owners’ PEIM programs are monitored to verify that processes and activities are carried out by the owner in conformance with their PEIM quality management system.

There were 84 audits of Pressure Equipment Integrity Management (PEIM) systems completed this year compared to 149 last year. The decline in the number of audits was a direct result of COVID-19 restrictions by ABSA and owners that prevented our auditors from visiting sites. A remote auditing procedure was subsequently developed to allow auditors to conduct audit activities remotely. Owner-user PEIM certification audits are generally conducted at three-year intervals. Surveillance audits may be conducted between certification audits.

Owners reported approximately 11,454 integrity assessments this year compared to 14,154 at this time in 2019. All were reported using the electronic summary reporting tool . The reduction in the number of integrity assessments can be attributed to vessel inspection deferrals due to COVID-19 restrictions at owner sites. Vessels inspections may be deferred in accordance with Information Bulletin IB20-007 Inspection and Servicing Requirements for In-Service Pressure Equipment Deferrals.

IB20-007 is a temporary modification of the established process made to assist owner’s to safely defer inspections under the logistics challenges caused by the pandemic.

84 audits

of PEIM systems

13,958in-service inspections


Design Survey The Design Survey department completed a total of 6,758 design and procedure registrations in fiscal 2020. For context, 6,534 registration applications were received this year, a 24.5% decrease from the 8,650 applications received in the 2019 fiscal year. Timely service continued to be important. Overall, the department consistently met all customer focused performance indicators by: performing initial reviews well within the published 10 day priority service and 15 day regular service timeframes; registration records are sent back to the applicant within 5 days of being accepted; and deficient design submissions are kept active and resolved in a reasonable timeframe (no stagnant design submissions).

Adapting to the impacts of the COVID-19 pandemic was a significant challenge. Great cooperation and hard work of ABSA employees and stakeholders led to the very timely and successful implementation of many COVID-19 adaptations, which resulted in little to no disruption in design review and registration service delivery. Working from home has become one of the most significant changes. Fortunately, increased interest and participation by industry stakeholders in using the electronic application submission process allowed for a nearly seamless transition to working from home. 72.1% of all applications were received under the electronic submission application process, a significant increase from last year’s 52.8%. The scope of the electronic submission application process has been expanded to include all design and procedure registration categories, including fittings and pressure piping systems, which historically were only accepted in hard copy format.

Canadian Registration Number (CRN) Online Web PortalThe CRN Online Web Portal was developed to facilitate real-time electronic sharing of technical design data among Canadian regulatory authorities to facilitate mutual recognition of design registration based on a harmonized review process. The tool has proven to be quite effective. A new module was developed and implemented into the CRN Online Web Portal to provide industry stakeholders another option for submitting Alberta specific design registration applications. The new module allows for the direct uploading of the design documents, and provides a platform for the submitter and the design reviewer to communicate about the design application. 705 Alberta-specific registration applications were received through the CRN Online Portal this year. This represents an additional 10.8% of applications. Combined with the traditional electronic submissions (emailed) reported above, a total of 82.9% of all design registration applications were received in electronic format this year.

82.9% received in electronic format

design registration applications

6,758 designs & procedures

reviewed & registered


Common/Harmonized ReviewABSA has been working with all other regulatory authorities on a project to harmonize the CRN review process. The project is known as the Common/Harmonized Review project. The goal of the project is to decrease variability in the review process so that a pressure equipment designer can readily have their design accepted in all of Canada. The project is continually evolving and improving, and is now being used on registration applications by all participating jurisdictions. We continue to receive positive feedback from industry stakeholders about the efficiency and time savings associated with a single harmonized review.

Safety Codes Act AmendmentsThe Safety Codes Act was amended in July, 2020. Section 2.2 Suspension or modification of Act or regulations was added and Section 57.1 Administrative penalties was amended.

Power Engineers RegulationThere were no amendments to the Power Engineers Regulation in 2020.

Pressure Welders RegulationThe Pressure Welders Regulation was amended in March 2020. Section 25 was revised. The expiry date had been set at May 31st, 2020, and was advanced to May 31st, 2022.

Pressure Equipment Safety Regulation (PESR)There were no amendments to the Pressure Equipment Safety Regulation in 2020.

Pressure Equipment Exemption Order (PEEO)The Pressure Equipment Exemption Order was amended effective January 1st, 2020. Section 2.2 was added to provide exemption criteria for thermal liquid heating systems.

continued to receive positive feedback

single harmonized review


ABSA Involvement in Development of Codes and StandardsABSA has been very involved in ASME and CSA Code Committee work. Through participation in various technical committees, ABSA employees are involved in revisions of existing codes and standards or development of new standards (such as ASME Boiler and Pressure Vessel Section XIII Overpressure Protection). Around 420 ballots, containing more than 1,000 proposals for code changes, were reviewed or monitored in the last 12 months.

Active participation and work in the Code Committees allows ABSA to represent Alberta’s interests in code and standard development. Additionally, this work allows us to be proactive and properly inform stakeholders about potential and pending code changes before they become mandatory. This work is also a good opportunity for harmonization of requirements between different codes, as well as harmonization of different jurisdictional requirements among Canadian jurisdictions by introducing common requirements. One of these projects involves the modernization of CSA B51. ABSA technical staff is providing leadership and active participation in this project. Djordje Srnic, ABSA Assistant Chief Inspector, is chair of the B51 Technical Sub-Committee on Modernization. The project includes adding conformity assessment requirements, developing an informative annex to establish a harmonized scope for the application of B51, and restructuring of the code to make it more user friendly. This will be a significant project with a target of having the majority of work completed in time for the next edition of B51 which is scheduled for 2024.

Technical Support to IndustryABSA’s Technical Advisory Group (TAG) provides solutions to stakeholder inquiries related to implementation of the pressure equipment legislation, codes, standards and ABSA policy documents. For example, stakeholders frequently request clarifications on how certain regulation requirements or exemptions may be applied to their pressure equipment. Stakeholders inquire about design registration requirements, repairs and alteration requirements, applicability of Information Bulletins or ABSA AB-500 series documents on specific applications, and other areas of safety programs in the pressure equipment discipline. In the last 12 months, ABSA’s TAG responded to 1,452 inquiries. In comparison to the previous year, TAG processed approximately 13% fewer inquiries, mainly due to the impact of COVID-19 on industry activities.

1,000+ code change proposals

reviewed or monitored

TAG responded to1,452 inquiries

13% fewer than last year


Power Engineering ExaminationsThere were fewer examinations written in 2020 compared to the previous 3 years. Examinations were halted on March 16th, 2020, and were not resumed until Alberta announced its Stage 1 relaunch and ABSA had prepared COVID-19 safety protocols for administering exams. When examinations resumed in June, they were offered at reduced capacity and only in ABSA’s Calgary and Edmonton offices. In September, examinations were resumed at reduced capacity outside Edmonton and Calgary.

2017 Fiscal

2018 Fiscal

2019 Fiscal

2020 Fiscal

Exams Written 9,318 8,456 8,318 6,180

Multiple Choice 7,426 6,662 6,503 4,804

Long Answer 1,892 1,794 1,815 1,376

Multiple choice examination questions have been used for 5th, 4th and 3rd class for several years. In 2016 the Association of Chief Boiler and Pressure Vessel Inspectors approved a project initiated by the Standardization of Power Engineer Examinations Committee (SOPEEC) to start converting long answer examinations at the second class and first class levels to multiple-choice type examinations. Two of the six papers for a second class power engineer have now been converted to a multiple-choice style examination. The second class power engineer B1 paper will be available for use on January 1st, 2021 across Canada.

On behalf of SOPEEC, ABSA obtained French language examinations from the Province of New Brunswick. These French language standardized power engineer examinations are now available to all SOPEEC member jurisdictions.

The examination grading processing time has increased due to the safety protocols implemented in response to COVID-19. The actual notification for some examinations is current running at approximately 5 days due to the examinations being quarantined for 3 days prior to grading. For context, last year we averaged 1.2 business days for essay style examinations, and less that half a day for multiple choice examinations.

Valid Power Engineer 2017 Fiscal

2018 Fiscal

2019 Fiscal

2020 Fiscal

Total Certificates 28,314 28,464 29,664 28,851

1st Thru 5th Class 21,885 22,231 22,479 22,191

Special Oilwell 5,244 4,966 4,691 4,218

Steam Traction Engine Operator 30 27 31 17

Building Operator A 523 476 426 387

Building Operator B 499 459 416 372

Fireman’s 133 96 80 70

Fired Process Heater Operator 147 209 291 348

1,452 inquiries

French language standardized power engineer

examinationsnow available


New Certificates Issued2017 Fiscal

2018 Fiscal

2019 Fiscal

2020 Fiscal

Total 3,364 3,120 3,033 2,336

1st Thru 5th 2,148 1,855 1,890 1,463

Special Oilwell 99 229 204 84

Special Boiler Operator 153 140 99 79

Temporary 757 688 585 592

Transfers into Alberta 144 141 163 95

Fired Process Heater Operator 60 65 89 23

Steam Traction Engine Operator 3 2 3 0

The total number of valid power engineer certificates of competency decreased by 813 in comparison to last year’s totals. There are now a total of 28,851 valid power engineering certificates of competency. Most noticeable, the number of Special Oilwell Operator have certificates accounted for nearly 60% of the decrease; a consequence of the decline in oil and gas well drilling activity. The Building Operator A & B certification, along with the Fireman’s certification, continue to decrease in numbers, mostly due to attrition. Those certifications are no longer being offered, however they can continue to be renewed by the certificate holder. Efforts have been made in the past four years to reduce the number of temporary certifications by working with stakeholders in developing a plan to provide additional training for employees who require a higher level of certification. There was a slight increase of plant owners requesting a temporary citification for their staff, mostly to address contingencies in anticipation of COVID isolations.

Pressure Welder CertificationHigh quality welding of pressure equipment is essential. The Pressure Welders Regulation assures safety by establishing competency and certification requirements for:

• pressure welders

• machine welding operators

• welding examiners

ABSA administers processes for the examination and certification of pressure welders, machine welding operators, and welding examiners.

Welder testing activity in Alberta has dropped significantly this past fiscal year and is now at low levels not seen for more than 16 years. ”C” pressure welder testing can be considered an indicator of the unavailability of fully qualified Alberta welders. “C” pressure welder certification is a temporary, provisional welding certificate. The person who earns this certificate of competency is only permitted to weld at the work site of the employer named on the certificate, typically during shutdowns or rush work to complete major projects. There were 15 “C” pressure welder tests conducted this past year. For context, there were 1,118 “C” pressure welder tests conducted in 2013.

The number of “B” pressure welders transferring into Alberta also continues to drop, from 265 in 2015 to 28 in 2020.

Pressure Welders 2017 Fiscal

2018 Fiscal

2019 Fiscal

2020 Fiscal

Welder Certificates Issued 724 716 528 324

Total Welder Tests 1,708 1,497 949 673

‘B’ Pressure Welder Tests 1,452 840 564 364

‘B’ Pressure Welder Transfers from out of Province

110 74 51 28

‘B’ Pressure Welder Tests for Apprentices

139 294 227 110

‘C’ Pressure Welder Tests 56 52 19 15

Machine Welder Tests 50 65 88 50

Tack Welders Tests 3 8 0 29

28,851 valid power

engineer

certificates of competency


Welding Examiner Companies authorized to conduct performance qualification testing of welders are required to employ a certified Welding Examiner to supervise the welder tests and certify the performance qualification cards. There are a total of 480 individuals who are certified to carry out the functions of a Welding Examiner and 38 certified as a Welding Examiner in Training.

2017 Fiscal

2018 Fiscal

2019 Fiscal

2020 Fiscal

Examinations Written 139 152 142 115

New Welding Examiner Certificates 59 49 63 41

Valid Certificates by Examination 388 375 408 421

Valid Certificates by Grandfather 96 65 67 59

Examiner in Training 55 33 32 38

In-Service InspectorOwner-users and Integrity Assessment Organization employ in-service inspectors to perform integrity assessments of pressure equipment. The authority and responsibility of the in-service inspector holder is limited to those duties designated by their employer under the employer’s ABSA-issued certificate of authorization permit. The in-service inspector certification process involves verification of experience, education, third-party certification (by API or the National Board) and knowledge of Alberta pressure equipment safety legislation via examination administered by ABSA.

2017 Fiscal

2018 Fiscal

2019 Fiscal

2020 Fiscal

Total Examinations Written 235 270 276 243

Certificates Issued 117 137 129 82

Valid Pressure Vessel Certificates 719 758 774 773

Valid Boiler & Pressure Vessel Certificates

419 454 473 472

In-Service Pressure Piping N/A 3 3 3

The certification requirements for In-Service Inspectors continues to be updated based on feedback and input from stakeholders. The examination questions based on the current body of knowledge are validated by a committee made up of senior inspectors from industry and ABSA senior technical staff.

41 individuals

received Welding Examiner Certificates

83 individuals

received In-Service InspectorCertificates


Plant RegistryThe purpose of the registry is to have a record of the assessment by a safety codes officer of the plant’s rating in terms of kilowatt capacity in the context of the Power Engineers Regulation. A registration document is issued to the owner stating the kilowatt capacity, plant rating, and minimum certification level for the supervising power engineers. The registry document includes a listing of the equipment that is associated with the plant rating.

The plant rating is used to determine the type of supervision and the class of certificate required for the supervising power engineers or operators. Plant rating is also critical for power engineers with respect to operating experience, known as “firing time”, required to progress to the next level of certification. There are 10,945 plants in the registry.

ABSA continues to work with owners, chief power engineers, chief inspectors and persons in charge of these plants to validate each plant’s registration.

In 2019 ABSA began to register ammonia refrigeration plants (ice arenas). As of October 31st, 2020, ABSA has identified and registered 300 ammonia refrigeration plants. The Power Engineers Regulation does not mandate certified operators for refrigeration plants. Ammonia refrigeration plants were added to the registry to provide a database of plants and contact information in order to enhance ammonia refrigeration safety oversight.

Power Engineers Employment Information SurveyABSA has been collecting power engineer certificate holder employment data for the for the purpose of determining how power engineers are employed in Alberta and to assess the need for future development of the power engineer certification program.

Currently there are 28,851 Alberta certified power engineers and 67.67% of them have completed the survey. Analysis of the survey data indicates 44.6% of the respondents are employed in Alberta and are required to have this certification to operate a boiler plant, heating plant or thermal liquid heating system.

SOPEEC CoordinatorThe Standardization of Power Engineer Examinations Committee (SOPEEC) comprises a member from each Canadian jurisdiction and is accountable to the Association of Chief Boiler and Pressure Vessel Inspectors (ACI). ABSA employs a fulltime SOPEEC Coordinator and administrative staff whose primary function is the development and maintenance of standardized power engineer examination questions to be used by all Canadian Jurisdictions. Each of the provinces and territories has a SOPEEC representative on this committee and provide input to the development of power engineer examinations.

The membership of ACI comprises the chief inspectors of each Canadian Jurisdiction, and one representative from each of the National Energy Board, Canadian Nuclear Safety Commission and the National Board.

The Interprovincial Power Engineering Curriculum Committee (IPECC) members represent industry and educators from across Canada.

The 2020 annual IPECC and SOPEEC meetings were held virtually in the month of June. About 44 IPECC members and 10 SOPEEC members attended the meeting. IPECC makes recommendations on Power Engineering topics and prepares motions to be reviewed and accepted by SOPEEC. ACI is responsible for final approval of changes to the power engineer certification program.

10,945 registered plants


ABSA Remains Proactive Regarding Customer RelationshipsABSA is committed to open communication with its stakeholders and continues to build on the positive relationships that have been established with key client groups. We participated in many industry group meetings such as Upstream Chief Inspectors Association (UCIA), Alberta Refinery and Petrochemical Inspectors Association, Generation and Utilities Advisory Committee (ARPIA), and Contract Chief Inspectors Association (CCIA). Participation in these stakeholder meetings gives ABSA opportunity to share information with a group of inspectors responsible for the majority of the pressure equipment that is maintained under certified owner-user Pressure Equipment Integrity Management programs.

ABSA also participated in stakeholder meetings regarding power engineering. In addition to Interprovincial Power Engineering Curriculum Committee (IPECC) and Standardization of Power Engineer Examinations Committee (SOPEEC) meetings, ABSA participated in meetings with, the Alberta Power Engineering Curriculum Committee (APECC) meetings, and Advisory Committee meetings for NAIT, SAIT, Lakeland College and Medicine Hat College.

ABSA maintained close contact and communication with the Alberta Pressure Vessel Manufacturer’s Association (APVMA) and Alberta Pressure Piping Contractors Association (APPCA) on matters concerning the design and construction of pressure equipment the latest development on codes and standards affecting the industry.

Seminars were presented at the 2020 International Pressure Equipment Integrity Association (IPEIA) conference in Banff in late February. ABSA continues to rely on the IPEIA conference as an opportunity to solicit feedback about ABSA programs and services from industry delegates. The feedback received from industry delegates is valuable input for consideration to improve programs and services.

Administrative Staff Play a Key RoleABSA’s administrative staff fosters good customer relationships by providing excellent service. This is attested to by the numerous compliments about excellent service from administrative staff we receive from a wide spectrum of industry. Administrative staff plays a key role in responding to requests for information and helping people find answers.

Accurate records are necessary to effectively manage all programs. Administrative staff ensure compliance with the records retention requirements, and are responsible for the quality of data transferred into our various electronic databases. The electronic databases provide a permanent repository of records for all service delivery. The databases are completely backed up every day to help preserve system integrity.

electronic databases

backed up daily


Information TechnologyInformation Technology group takes pride in ensuring the secure availability of the computer system 24 hours a day, 7 days a week and 365 days a year. Availability extends not only to employees but to all authorized stakeholders and can be accessed from any internet connection throughout the world. Again, this year, this mandate was successfully achieved.

March of this year presented us the unusual and unexpected challenge due to the COVID-19 lockdowns. After the decision was made to lock down our offices, we were able to get all ABSA employees setup and working remotely within that same week. We have provided additional hardware to our employees as needed and everyone continues to work productively from their home offices.

In the last year we completed several projects and are on track to accomplish most of the targets that we set out at the beginning of the year.

Due to increased online presence and growth of our online services, we completed a major security initiative this year. This included implementing a new firewall solution with multi-layer security solutions, and an external security audit.

The firewalls were deployed in the Edmonton and Calgary offices. They have increased logging and reporting capacity and detail, which will provide us with better visibility of potential threats. They also include the latest intrusion detection and prevention technologies, as well as improved application awareness.

An online inspections application for ABSA safety codes officers (inspectors) was developed and released into production. The application allows safety codes officers to submit inspection data to the database via their mobile devices and has full connectivity with the pressure equipment database. It makes the process easier for inspectors and administrative personnel,

and greatly increases efficiency. We continue working with the Inspections Department on addressing any issues and collecting information on future enhancements.

After completing the first phase of the CRN Online portal and releasing it into production, we have been working with other jurisdictions and industry stakeholders in identifying and implementing enhancements to the portal. We are now also working on Phase 2 of the project, which includes connectivity with our design registration database. The CRN Online Portal was also opened to industry submitters for electronic design registrations.

After a number of meetings with representatives from all departments, we were able to define a set of requirements in order to start developing our Online Forms system. We worked with all the departments in standardizing forms and defining workflows. This project will see the transformation of Customer provided data from traditional, paper base fill in forms, to an online data gathering tool, where the Customer will enter their data online. The data will then be vetted and ultimately directly imported into one of our databases.

At the end of the year we also deployed our new Moodle based Learning Management System (LMS). This will allow us to deliver training and seminars on an on-demand basis, offering flexibility and ease of access.

completeda major security initiative


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Operating expenditures

Excess of expenses over revenues

Working capital ratio

2.6:1Capital budget spend Operating reserve

$20.9MTotal revenue $23.1M

-$2.1M

$12.6M$0.35M

2020 Financial

HIGHLIGHTS

The total revenue for the year is $20.9m, a 14% decline when compared to prior year results. The decrease is solely attributed to the COVID-19 pandemic restrictions and drop in both industry activity and demand for ABSA’s services. The revenues most impacted include Inspections with a 28% decline ($1.0m), and Design Survey with a 20% decline ($856k) over prior year.

The decrease in activities and associated revenues caused ABSA to reduce its employee complement for subsequent years. Salary expenses for 2020 were slightly higher than prior year by 2.6% attributed to retirement expenses.

The Earnings Statement states negative surplus of ($2.1m) for 2020, when compared to a positive surplus of $597k from 2019. The Statement of Financial Position indicates reserves of $12.6m, compliant with targets set by the Board.

annual report 2020 - absa the pressure equipment safety

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