CEEN 590 Formal Government Processes

outline

Overview Clean Energy Act Canadian energy governance Canadian (and BC) government

Overview

Governance in 2 stages Formal procedures (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 is the objective for BC electricity export policy?

 Who decides, and how, whether new projects will be built for export?

 What are the terms and conditions for approving export projects?

 How are the interests of ratepayers protected in export projects? What about taxpayers?

 How will further details about export policy be developed?

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Net Exports in Clean Energy Act - objective

Clean Energy Act objective “to be a net exporter of electricity from clean or renewable resources with the intention of benefiting all British Columbians and reducing greenhouse gas emissions in regions in which British Columbia trades electricity while protecting the interests of persons who receive or may receive service in British Columbia”

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Net Exports in Clean Energy Act – integrated resource plan

the Act requires that BC Hydro include planning for the export market in its new “integrated resource plan” (IRP) (Section 3).

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Net Exports in Clean Energy Act – cabinet direction

if the government determines after receiving the IRP that it is in the public interest to do so, Cabinet may direct BC Hydro to acquire

new sources of power for export ▪ and ensure the necessary transmission

capacity for it (Section 4(1)(b)). Such decisions would not be subject to

review by the British Columbia Utilities Commission (BCUC).

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Net Exports in Clean Energy Act – the stealth option

government may develop a regulation to allow BC Hydro to engage in export contracts for the electricity planned for meeting the “self-sufficiency with reserve” obligation (Section 35(1), referring to Section 6(3)).

self-sufficiency obligation needs to be met “except to the extent that the authority may be permitted, by regulation, to enter into [export] contracts”,

export contracts established under this provision can override the “self-sufficiency with reserve” requirement

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Self Sufficiency in 2007 Energy Plan

self sufficient by 2016, + insurance of 3000 GWh/year by 2026

assume “critical water conditions” result: ensures substantial surplus

available for export in almost every year

New Clean Energy Act continues this policy (insurance date moved up to 2020)

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Net Exports in Clean Energy Act – ratepayer protection

BCUC, when it sets rates for BC Hydro, is prohibited from recovering the costs of the export projects authorized under a Section 4 determination of the government after receiving the IRP. In other words, ratepayers should not be subsidizing the export contracts established under this provision.

Implication

The meaning is in the detail: You can’t understand the important stuff of policy unless you are willing to dig deep into the details

PM gets procedures wrong NGP

http://www.cbc.ca/video/#/News/TV_Shows/The_National/1233408557/ID=2187645807

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 13

Doern and Gattinger: 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

Governance – 3 Core Questions Who decides? Who participates? At what level of

government? (vertical dimension)

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Vertical Dimension –Division of Powers

PROVINCIAL

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 Fisheries and

navigation General

criminal law Peace, order, good

governmentWhat about local government? International government?

Government in Canada

http://www.youtube.com/watch?v=yi1yhp-_x7A

Sustainable Energy Policy 17

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Parliamentary Government –Executive

executive governor general lieutenant governor

(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

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

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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 20

Votes and Seats

Vote % 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 (68) (82%)

Liberal (9) Wildrose Alliance (3) NDP (2) Independent (1)

Sustainable Energy Policy 22

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Parliamentary Government –Judicial

Provincial Courts Federal Court of

Appeals Supreme Court of

Canada Very little role in

energy policy except for aboriginal rights

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Parliamentary Government – Forms of Law

statuteenabling legislation

Act of legislature

regulationdelegated legislation

order in council

cabinet (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

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Bureaucracy

Minister: Elected politician Member of cabinet and legislature

Appointed Officials Example: BC Ministry of Energy

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 27

Summary

Authority vs power Formal bases for policy in statute

and regulation provincial dominance executive dominance Next week: policy process, actor

dynamics