Energy Planning and Approval Strategies

1. Energy Planning and Approval Strategies Sustainable Energy Policy

2. Overview Sustainable Energy Policy

3. outline • Strategic – BC Hydro Long Term Planning • Project level • Environmental Assessment • Federal • Provincial • Integration Sustainable Energy Policy

4. BC Hydro – supply gap Sustainable Energy Policy

5. BC Hydro - planning • Integrated electricity planning - the long-term planning of electricity generation, transmission, and demand-side resources to reliably meet forecast requirements. • 2000s - long-term acquisition plan (LTAP) every 4 yrs • Needs to be reviewed and approved by BCUC • 2010 Clean Energy Act – IRP replaces LTAP • Same problem for analysis and decision-making • but different consultation, review, and approval Sustainable Energy Policy

6. Utility planning • Planning context, objectives • Gross (pre-DSM) demand forecasts • Resources (supply and DSM) – ID and measurement • Develop resource portfolios • Evaluate and select resource portfolios • Develop action plan • Consult • Get approval Sustainable Energy Policy

7. 2008 LTAP developments • Application submitted to BCUC June 2008 • Evidentiary update December 08 • Formal hearings in BCUC • BCUC decision rejecting plan July 2009 • Greenpolicyprofsummary Sustainable Energy Policy

8. BCUC decision – rejected plan for 4 reasons • did not adequately addressed self‐sufficiency • DSM plan not adequately supported by analysis • Rejected plan to reduce its reliance on Burrard Thermal • Rejected special target for Clean Power Call Sustainable Energy Policy

9. BCUC decision –bottom line • Mostly, critical of the lack of evidence or analysis underlying BC Hydro’s plan • not a challenge to government policy, but as a criticism of BC Hydro for not providing sufficient evidence that it was complying with government policy • Exception: refusal to endorse BC Hydro’s desire to reduce reliance on Burrard Thermal Sustainable Energy Policy

10. BCUC decision - controversy • Critics of private power projects, including the BC New Democratic Party, declared victory, claiming the decision is a rejection of the BC government’s plan to rely on private power for future electricity supply.  • Climate activists blasted BCUC “a serious blow to the clean energy transition and climate leadership in British Columbia.” • First Nations denounced the Commission for creating roadblocks to their ability to use green power projects to promote economic development. Sustainable Energy Policy

11. BC government response • April 2009 Throne Speech : BC government clarified that the BCUC “will receive specific direction”   • October 2009: Special direction #2: ordered BCUC to rely on no more than 900 MW capacity and 0 GW/yr firm energy • May 2010: Clean Energy Act passed. • New IRP process • Removed from BCUC scrutiny Sustainable Energy Policy

12. Sustainable Energy Policy

13. Evaluation • What are the consequences of removing BC Hydro planning from BCUC review? Sustainable Energy Policy

14. BC Hydro IRP presentation • http://www.bchydro.com/etc/medialib/internet/documents/planning_regulatory/iep_ltap/2011q2/bc_hydro_irp_-_webinar.Par.0001.File.BC-Hydro-IRP-Webinar-Presentation-April-2011.pdf Sustainable Energy Policy

15. Change in Self-sufficiency • Timing delayed by rate review • Old: by 2016 enough B.C.-based energy to meet customer demand even in critical water conditions; and by 2020, an extra 3,000 gigawatt hour per year of insurance energy • New: by 2016, enough B.C.-based energy to meet customer demand in an average water year • The Province will also propose changes to the Clean Energy Act to eliminate the insurance requirement Sustainable Energy Policy

16. Project level – Environmental Assessment Sustainable Energy Policy

17. Approved plan calls for new independent power projects • What happens now? Sustainable Energy Policy

18. Ashlu Creek Sustainable Energy Policy

19. Ashlu Creek • 49.9 MW – Ledcor – Innergex • Extensive review by Squamish-Lillooet Regional District (SLRD) • SLRD rejected • BC government passed Bill 30 to “bring certainty” to approval process – 2006 • Project approved – commercial operation began Dec 09 Sustainable Energy Policy

20. Should local or regional governments have the right to veto power projects? Sustainable Energy Policy

21. Environmental Assessment • Environmental Assessment as a policy tool – a “procedural policy instrument” • Requires analysis and procedure but does not specify outcome Sustainable Energy Policy

22. Stages in EA • Proposal from proponent • Screening – is EA required and if so what kind? • Scoping – what issues? • Assessment of the proposal • Report preparation, submission, and review • Decision: recommendation by EA body, authoritative decision by political body • Monitoring and compliance follow-up Sustainable Energy Policy

23. Environmental Assessment - Federal • Canadian Environmental Assessment Act • Came into force in 1995 • Since 1972, governed by cabinet guidelines • applies to anything that requires federal approval or permit • Procedures managed by Canadian Environmental Assessment Agency, within Environment Canada • Usually, if federal EA no provincial EA Sustainable Energy Policy

24. CEAA Process • Determine if an environmental assessment is required • Identify responsible authority (RA) • screening – initial assessment If potentially significant adverse effects or significant public concern, requires mediation or panel review • Conduct the analysis and prepare the environmental assessment report • RA Reviews environmental assessment report • Make environmental assessment decision • Implement mitigation and follow-up program, as appropriate Sustainable Energy Policy

25. CEAA approval standards (a) where, taking into account the implementation of any mitigation measures that the responsible authority considers appropriate, (i) the project is not likely to cause significant adverse environmental effects, or (ii) the project is likely to cause significant adverse environmental effects that can be justified in the circumstances the responsible authority may exercise any power or perform any duty or function that would permit the project to be carried out in whole or in part Sustainable Energy Policy

26. CEAA results • 99% of projects approved Sustainable Energy Policy

27. Case study: Prosperity Mine • Gold and copper mine west of Williams Lake BC • Proposal would use Fish Lake as tailings pond • Federal EA process • Proponent insisted a BC EA be done Sustainable Energy Policy

28. Case study: Prosperity Mine Province federal Panel assessment far more rigorous on data, analysis Concluded significant impacts to environment and First Nations concerns Cabinet rejects mine proposal • BC gov approves despite serious problems identified by gov agencies in quality of analysis and magnitude of impacts Update: Taseko has resubmitted a revised proposal that is now under review Sustainable Energy Policy

29. EA issues in CanadaLibrary of Parliament Paper, Conference Board • Vertical Coordination (across jurisdictions) • Horizontal Coordination (across agencies) • Includes issues of “substitution” • Scoping • Cumulative effects • Followup • Strategic assessments • Missing? Sustainable Energy Policy

30. Cumulative effects? • “effects that are additive or interactive and result from the recurrence of actions over time. Cumulative impacts are incremental and result when undertakings build on or add to the impacts of previous impacts.” • Consideration required in federal rules, permitted but not required in BC • What is the best way to deal with cumulative effects in project level assessments? Sustainable Energy Policy

31. EnviroChecklist for EA • Sustainability as core objective • Strengthen public participation • Meaningfully engage Aboriginal governments as decision makers • Legal framework for strategic and regional EA • Require comprehensive, regional cumulative effects assessments • Coordinate multiple jurisdictions with highest standards • Transparency • Fair, predictable, accessible • Rights over efficiency Sustainable Energy Policy

32. Cabinet Directive on Streamlining Regulation (2007): Underlying principles: • protect and advance the public interest; • promote a fair and competitive market economy; • make decisions based on evidence; • create accessible, understandable, and responsive regulation; • advance the efficiency and effectiveness of regulation; and • require timelines, policy coherence, and minimal duplication. Sustainable Energy Policy

33. Institutions for renewable energy expansion – criteria (Jaccard et al) Sustainable Energy Policy

34. Alternatives, consequencesJaccard et al IRP + project specific assessment/approvals Strategic assessment Risks delay in renewable development (and climate change mitigation) • risks larger than necessary local environmental effects • Risks less satisfied public An important tradeoff that needs to be considered in process design Sustainable Energy Policy