The Rest of Canada

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Outline

Ontario energy policy Big picture FIT BC comparisons

NEP Canadian energy policy in 2010s

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New temporary group assignments Major Power

Consumers Association of Canada

CEP Union (COPE) Canadian Wind

Energy Association (Alterra)

Assembly of First Nations

Public Interest Advocacy Centre of Canada

Pembina Institute Wilderness

Committee CAPP (Clean

Energy BC)

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Ontario Fuel Mix

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Governance

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Shifting problem definitions 1990s: cost Public health (note

Walkerton focusing event)

Supply Economic

development

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Green Energy and Green Economy Act – May 2009 - Objectives

Attract investment in renewable energy

Promote a culture of energy conservation

Create a competitive business environment

Increase job opportunities Reduce GHGs

Note: also ambitious coal phase out by 2014

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ON instruments (Rowland)

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BC comparisons?

Much more governance complexity in Ontario

Both struggling with long term energy plan approval relationship between regulatory

commission and cabinet Both turned to rely on bidding system

Ontario now dominated by Feed-in, limited in BC

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Ontario conclusion

How many times were other provinces or the Government of Canada mentioned in either article?

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The NEP and Legacy Trudeau

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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

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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

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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

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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).

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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)

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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

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NEP denouement

Beginning in 1982, world oil prices began to plummet

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NEP denouement

Oil price decline after 1982 Mulroney Era (Progressive

Conservative) begin in Fall 1984 Western Accord effectively

dismantled NEP deregulated oil prices phased out PGRT

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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

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Canadian Energy Strategy for 2010s

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EPIC recommendations Improve Canada’s regulatory regime by eliminating

overlapping and inconsistent requirements at the federal, provincial, and municipal levels.

Enhance Canada’s energy security by moving beyond our historical reliance on the United States and capturing growth opportunities in Asia and elsewhere.

Adopt interim carbon pricing measures, and define the criteria that should inform the design of a long-term carbon-pricing regime in Canada.

Promote greater public knowledge of energy’s impact on our economy, environment, and society – with a view to increasing conservation behaviour.

Foster energy innovation by encouraging more private sector investment in game-changing technologies

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New temporary group assignments Major Power

Consumers Association of Canada

CEP Union (COPE) Canadian Wind

Energy Association (Alterra)

Assembly of First Nations

Public Interest Advocacy Centre of Canada

Pembina Institute Wilderness

Committee CAPP (Clean

Energy BC)

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