ceen 590 formal government processes
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CEEN 590 Formal Government Processes
outline
Overview Clean Energy Act Canadian energy governance Canadian (and BC) government Aboriginal rights – Idle no More
Overview
Governance in 2 stages Formal procedures Next week: (informal) processes; actor
dynamics Core distinction:
Authority: ability to make rules backed up by coercive power of the state
Power/influence: ability to influence outcomes
Today: foundations for authority
Clean Energy Act
What are the 5 most important objectives of BC electricity policy?
What is the definition of self-sufficiency in the Act?
What is the definition of clean or renewable?
How are integrated resource plans developed and approved?
CEA - Objectives
Self sufficiency"electricity supply obligations" means(a) electricity supply obligations for which rates are filed with the commission under section 61 of the Utilities Commission Act, and(b) any other electricity supply obligations that exist at the time this section comes into force,determined by using the authority's prescribed forecasts of its energy requirements and peak load, taking into account demand-side measures, that are in an integrated resource plan approved under section 4;
"heritage energy capability" means the maximum amount of annual energy that the heritage assets that are hydroelectric facilities can produce under prescribed water conditions.
(2) The authority must achieve electricity self-sufficiency by holding,(a) by the year 2016 and each year after that, the rights to an amount of electricity that meets the electricity supply obligations, and(b) by the year 2020 and each year after that, the rights to 3 000 gigawatt hours of energy, in addition to the amount of electricity referred to in paragraph (a), and the capacity required to integrate that energysolely from electricity generating facilities within the Province,(c) assuming no more in each year than the heritage energy capability, and(d) relying on Burrard Thermal for no energy and no capacity, except as authorized by regulation.
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Self Sufficiency in 2007 Energy Plan self sufficient by 2016, + insurance of 3000
GWh/year by 2026 result: ensures substantial surplus available
for export in almost every year New Clean Energy Act continued this policy
(insurance date moved up to 2020) 2007 regs: assume “critical water
conditions” (in regulation) 2012: changes to “average water
conditions”
Clean energy – LNG “cheat”
(c) to generate at least 93% of the electricity in British Columbia from clean or renewable resources and to build the infrastructure necessary to transmit that electricity;
"clean or renewable resource" means biomass, biogas, geothermal heat, hydro, solar, ocean, wind or any other prescribed resource;
Governance in Context actions – behavioural actions
energy choices by firms, consumers
policies – rules produced by government that influence actions Objectives (increase renewable
electricity) Instruments (renewable portfolio
standard) Settings (10% by 2012)
governance – who decides the rules
Sustainable Energy Policy 9
Gattinger: 4 key energy policy imperatives (MESS)
1. Markets – more efficient and competitive
2. Environment – pollution, biodiversity, climate
3. Energy Security – assurance of adequate, safe, affordable supply
4. Social Acceptability – coping with local opposition to projects
5+ Governance Imperatives
1. The Rich Fuel Endowment: The problem of too many choices
2. Dependence of US Continental Markets3. Divided Political Jurisdiction4. Regional-Spatial Realities, and Producer-
Consumer Tensions5. Environmental Issues 6. Aboriginal Peoples’ concerns
Modified from Doern and Gattinger, Power Switch
Governance – 3 Core Questions Who decides? Who participates? At what level of
government? (vertical dimension)
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Vertical Dimension –Division of PowersPROVINCIAL 109 – all lands, mines,
minerals, and royalties to the provinces
92 – provincial management and sale of public lands (federal jurisdiction over “Canada Lands”)
FEDERAL 91 –international and
interprovincial trade 91 –tax any mode or
means Spending “Indians” Fisheries and
navigation General
criminal law Peace, order, good
governmentWhat about local government? International government?
Gattinger: energy federalism The character and dynamics of federal-
provincial relations in the energy field
January 15, 2009 Sustainable Energy Policy 14
Four Periods of Energy Federalism 1867 -1930 -- nationalist cooperative 19030-1950s – expansionist
collaborative Energy development as economic
development 1960s-mid-1980s – competitive Mid-1980s to present – third-rail
January 15, 2009 Sustainable Energy Policy 15
PeriodizationDoern and Gattinger
1. WW II to 1973: Regulatory Nation- (and Province) Building
• energy development as economic development
• shift from coal to oil2. 1974-1984: The Energy Crisis and
Government Intervention3. Mid 80s to 2000s: Energy Deregulation,
Free Trade, and Sustainable Development
January 24, 2013 Sustainable Energy Policy
The Enduring Legacy of Trudeau’s 1980 National Energy Program
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Why history lesson?
Can’t understand current Canadian energy policy and governance without it
Context:1.Two most important problems in
Canadian politics: Quebec and relations with US
2.In Canadian federal-provincial relations, energy second only to Quebec January 24, 2013 Sustainable Energy Policy 18
NEP Enduring legacy
January 24, 2013 Sustainable Energy Policy 19
Prime Minister Stephen Harper, during 2008 election campaign, on Stephan Dion’s carbon tax
“It’s like the national energy program in the sense that the national energy program was designed to screw the West and really damage the energy sector. This is different in that it will actually screw everybody across the country.”
Prelude to NEP 1957-1961 1959 – National Energy Board
Created 1961 – National Oil Policy
two market policy▪ east of Ottawa Valley, cheap imported
Venezuela oil▪ Ontario and west, more expensive Canadian
oil▪ delivered by Trans-Canada Pipeline▪ continental price under umbrella of US
protectionism▪ growing exports to US
Rapid growth in oil and gas industry
January 24, 2013 Sustainable Energy Policy 20
Prelude to NEP 1973-1980 1973 – OPEC oil embargo
link to global geo-politics: Arab-Israeli War price controls on domestic crude oil and natural
gas subsidized consumption by refiners through oil
import compensation program (OICP) 1975 – Petro-Canada established
foster resource development increase federal government information about reserves
1979 – Iranian revolution led to world price doubling gap between Canadian prices and world prices increased
January 24, 2013 Sustainable Energy Policy 21
1980 Political Economy of Energy in Canada Oil coalition: federal
Conservative Party, western provincial governments, and oil industry rapid convergence to
world prices smaller federal share of
revenues privatization of Petro-
Canada enabling foreign
ownership
Federal Coalition: federal Liberal and NDP Party, central and eastern provincial governments slower increase in prices larger federal share of
revenues strengthening of Petro-
Canada regulation on foreign
ownership
January 24, 2013 Sustainable Energy Policy 22
National Energy Program October 1980 budget “a centralist, nationalist and
interventionist political and policy initiative which at its core was intended to substantially restructure the key relationships of power and the sectoral and regional distribution of wealth in Canadian energy politics” (Toner and Bregha 1984).
January 24, 2013 Sustainable Energy Policy 23
National Energy Program 1980 3 goals
security of supply▪ Petroleum Incentive Program (PIP) encouraged
exploration and development Canadianization▪ 50% Canadian ownership by 1990 (from 29%)▪ PIP criteria favoured Canadian firms on Canada Lands▪ enlarge Petro-Canada through acquisitions
interregional equity in price and revenue sharing▪ 8% Petroleum and Gas Revenue Tax (PGRT)
January 24, 2013 Sustainable Energy Policy 24
Backlash Against NEPcbc retrospective video
Universal industry opposition Vehement opposition by Alberta
– led by Premier Peter Lougheed cutback in oil production cancellation of 2 oil sands projects
Compromise of 1981 produced a new pricing system old domestic oil increased to 75%
world price new conventional oil at world price
January 24, 2013 Sustainable Energy Policy 25
NEP denouement
Beginning in 1982, world oil prices began to plummet
January 24, 2013 Sustainable Energy Policy 26
NEP denouement
Oil price decline after 1982 Mulroney Era (Progressive
Conservative) begins in Fall 1984 Western Accord effectively
dismantled NEP deregulated oil prices phased out PGRT
January 24, 2013 Sustainable Energy Policy 27
NEP Enduring Legacy
Lesson: mistaken federal government overregulation
Strengthened Alberta’s anti-Ottawa tendencies
Revived as a bogey-man to discredit major federal energy-related initiatives including climate action
January 24, 2013 Sustainable Energy Policy 28
Government in Canada
http://www.youtube.com/watch?v=yi1yhp-_x7A
Sustainable Energy Policy 29
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Parliamentary Government –Executive
executive governor general (federal) lieutenant governor (provincial)▪ Both largely ceremonial
premier and cabinet▪ Premier/PM: leader of the party with
the most seats in the legislature▪ Cabinet: selected by the Premier/PM
from members of the legislature of the premier/PM’s party
▪ Party rules and system norms make Premier/PM remarkably powerful (Ruff)▪ Cabinet selection▪ Party nomination
Parliamentary Government –Legislature MP – member of
Parliament MLA – members of
legislative assembly influence limited by
majority rule – government must have support of majority
party discipline – all members must vote how their party tells them to▪ Party policy set by caucus – in reality
by cabinet and especially leader
31
Parliamentary Government –Legislature
House of Commons – 308 seats Conservative (165) – 54% New Democrat (101) Liberal (35) Bloc Quebecois (4) Green Party (1) Independent (1)
Sustainable Energy Policy 32
Votes and SeatsVote % Seat %
Conservative 40 53
NGP 31 33
Liberal 19 11
BQ 6 1
Green 4 0.3
Parliamentary Government –LegislatureBRITISH COLUMBIA – 85 SEATS
BC Liberal (49) - 58% New Democrat (35) Independent (1)
ALBERTA – 83 SEATS
Progressive Conservatives (61) 70%
Wildrose Alliance (17) – 20%
Liberal (5) 6% NDP (4) 5%
Sustainable Energy Policy 34
35
Parliamentary Government –Judicial
Provincial Courts Federal Court of
Appeals Supreme Court of
Canada Very little role in
energy policy except for aboriginal rights
36
Parliamentary Government – Forms of Law
statuteenabling legislationAct of legislature
regulationdelegated legislationorder in councilcabinet (informal)lieutenant governor (formal)
contracts, permits
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Parliamentary Government – Policy that is not Law
Legally required rules are a subset of “public policy”
Example: BC Energy Plan document
38
Bureaucracy
Minister: Elected politician Member of cabinet and legislature
Appointed Officials Example: BC Ministry of Energy and
Mines
Mandate
Essential Elements of Authority Division of powers Head of state PM or premier Cabinet Members of
legislature
Legislatures Minister Appointed officials Bureaucracies Courts
Sustainable Energy Policy 39
Aboriginal Rights and Title Governments have a duty to consult and
accommodate First Nations (Haida) Not a veto (Haida, Taku)
“Free, prior and informed consent” from UN Declaration Non-binding on signatories Canada late signatory with condition that
FPIC not a veto Obligations involved in accommodate
uncertainSustainable Energy Policy 41
Summary
Authority vs power Formal bases for policy in statute
and regulation provincial dominance executive dominance Next week: policy process, actor
dynamics
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