CEEN 590 Formal Government Processes

1. CEEN 590 Formal Government Processes

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

3. 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

4. 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?

5. 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”

6. 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).

7. 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).

8. 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

9. 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)

10. 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.

11. 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

12. PM gets procedures wrong NGP • http://www.cbc.ca/video/#/News/TV_Shows/The_National/1233408557/ID=2187645807

13. 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

14. Doern and Gattinger: 5+ Governance Imperatives • The Rich Fuel Endowment: The problem of too many choices • Dependence of US Continental Markets • Divided Political Jurisdiction • Regional-Spatial Realities, and Producer-Consumer Tensions • Environmental Issues • Aboriginal Peoples’ concerns

15. Governance – 3 Core Questions • Who decides? • Who participates? • At what level of government? (vertical dimension)

16. Vertical Dimension –Division of Powers provincial federal 91 –international and interprovincial trade 91 –tax any mode or means Spending Fisheries and navigation General criminal law Peace, order, good government • 109 – all lands, mines, minerals, and royalties to the provinces • 92 – provincial management and sale of public lands (federal jurisdiction over “Canada Lands”) What about local government? International government?

17. Government in Canada • http://www.youtube.com/watch?v=yi1yhp-_x7A Sustainable Energy Policy

18. 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

19. 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

20. 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

21. Votes and Seats

22. Parliamentary Government –Legislature BRITISH COLUMBIA – 85 SEATS Alberta – 83 seats Progressive Conservatives (68) (82%) Liberal (9) Wildrose Alliance (3) NDP (2) Independent (1) • BC Liberal (49) - 58% • New Democrat (35) • Independent (1) Sustainable Energy Policy

23. Parliamentary Government –Judicial • Provincial Courts • Federal Court of Appeals • Supreme Court of Canada • Very little role in energy policy except for aboriginal rights

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

25. Parliamentary Government – Policy that is not Law Legally required rules are a subset of “public policy” Example: BC Energy Plan document

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

27. 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

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