Energy Planning and Approval Strategies

Sustainable Energy Policy 1

Overview

Sustainable Energy Policy 2

outline

Strategic – BC Hydro Long Term Planning

Project level Environmental Assessment

▪ Federal▪ Provincial

Integration

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BC Hydro – supply gap

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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

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Utility planning

Planning context, objectivesGross (pre-DSM) demand forecastsResources (supply and DSM) – ID and

measurementDevelop resource portfoliosEvaluate and select resource

portfoliosDevelop action planConsultGet approval Sustainable Energy Policy 6

2008 LTAP developments

Application submitted to BCUC June 2008 Evidentiary update December 08

Formal hearings in BCUCBCUC decision rejecting plan July

2009 Greenpolicyprof summary

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BCUC decision – rejected plan for 4 reasons

1. did not adequately addressed self‐sufficiency

2. DSM plan not adequately supported by analysis

3. Rejected plan to reduce its reliance on Burrard Thermal

4. Rejected special target for Clean Power Call

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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

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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.

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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

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Sustainable Energy Policy 12

Evaluation

What are the consequences of removing BC Hydro planning from BCUC review?

Sustainable Energy Policy 13

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

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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 15

Project level – Environmental Assessment

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Approved plan calls for new independent power projects

What happens now?

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Ashlu Creek

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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

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Should local or regional governments have the right to veto power projects?

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Environmental Assessment

Environmental Assessment as a policy tool – a “procedural policy instrument” Requires analysis and procedure but does not

specify outcome

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Stages in EA

1. Proposal from proponent2. Screening – is EA required and if so

what kind?3. Scoping – what issues?4. Assessment of the proposal5. Report preparation, submission,

and review6. Decision: recommendation by EA

body, authoritative decision by political body

7. Monitoring and compliance follow-up

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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 23

CEAA Process

1. Determine if an environmental assessment is required

2. Identify responsible authority (RA)3. screening – initial assessment

If potentially significant adverse effects or significant public concern, requires mediation or panel review

4. Conduct the analysis and prepare the environmental assessment report

5. RA Reviews environmental assessment report6. Make environmental assessment decision7. Implement mitigation and follow-up program, as

appropriate Sustainable Energy Policy 24

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

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CEAA results

99% of projects approved

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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

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Case study: Prosperity Mine

PROVINCE

BC gov approves despite serious problems identified by gov agencies in quality of analysis and magnitude of impacts

FEDERAL

Panel assessment far more rigorous on data, analysis

Concluded significant impacts to environment and First Nations concerns

Cabinet rejects mine proposal

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Update: Taseko has resubmitted a revised proposal that is now under review

EA issues in CanadaLibrary of Parliament Paper, Conference Board

Vertical Coordination (across jurisdictions)

Horizontal Coordination (across agencies) Includes issues of “substitution”

ScopingCumulative effectsFollowupStrategic assessmentsMissing? Sustainable Energy Policy 29

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 30

Enviro Checklist 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

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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.

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Institutions for renewable energy expansion – criteria (Jaccard et al)

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Alternatives, consequencesJaccard et alIRP + PROJECT SPECIFIC ASSESSMENT/APPROVALS risks larger than

necessary local environmental effects

Risks less satisfied public

STRATEGIC ASSESSMENT Risks delay in

renewable development (and climate change mitigation)

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An important tradeoff that needs to be considered in process design