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

3.  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

4.  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?

5.  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” 5

6.  the Act requires that BC Hydro include planning for the export market in its new “integrated resource plan” (IRP) (Section 3). 6

7.  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). 7

8.  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 8

9.  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) 9

10.  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. 10

11.  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

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

13.  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 Policy13

14. 1. The Rich Fuel Endowment: The problem of too many choices 2. Dependence of US Continental Markets 3. Divided Political Jurisdiction 4. Regional-Spatial Realities, and Producer- Consumer Tensions 5. Environmental Issues 6. Aboriginal Peoples’ concerns

15.  Who decides?  Who participates?  At what level of government? (vertical dimension) 15

16. 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 government What about local government? International government?

17.  http://www.youtube.com/watch?v=yi1yhp- _x7A http://www.youtube.com/watch?v=yi1yhp- _x7A Sustainable Energy Policy17

18. 18  executive  governor general governor general  lieutenant governor (largely ceremonial) lieutenant governor  premier and cabinetpremiercabinet ▪ 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

19.  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 19

20.  House of Commons – 308 seats  Conservative (165) – 54%  New Democrat (101)  Liberal (35)  Bloc Quebecois (4)  Green Party (1)  Independent (1) Sustainable Energy Policy20

21. Vote %Seat % Conservative4053 NGP3133 Liberal1911 BQ61 Green40.3

22. BRITISH 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 Policy22

23. 23  Provincial Courts  Federal Court of Appeals  Supreme Court of Canada  Very little role in energy policy except for aboriginal rights

24. 24 statute enabling legislation Act of legislature regulation delegated legislation order in council cabinet (informal) lieutenant governor (formal) contracts, permits

25. 25 Legally required rules are a subset of “public policy” Example: BC Energy Plan documentBC Energy Plan

26. 26  Minister:  Elected politician  Member of cabinet and legislature  Appointed Officials  Example: BC Ministry of Energy

27.  Division of powers  Head of state  PM or premier  Cabinet  Members of legislature  Legislatures  Minister  Appointed officials  Bureaucracies  Courts Sustainable Energy Policy27

28.  Authority vs power  Formal bases for policy in statute and regulation  provincial dominance  executive dominance  Next week: policy process, actor dynamics