Regulatory Reform: Now More Important Than Ever

1. Regulatory Reform: Now More Important Than Ever Gerry Protti Vice Chair Energy Policy Institute of Canada IPAC Conference Ottawa August 23, 2010

2. Why Now? • Economy and Investment • Environmental Expectations • North American Events • International Reputation

3. Current Situation • Canada blessed with staggering renewable and non-renewable resource wealth • Second largest recoverable oil reserves in the world • Second largest producer of uranium • Third largest producer of natural gas • Fourth largest in installed hydro capacity • Huge potential in wind, tidal, wave and other renewable sources • Energy governance in Canada may be the most complex in the world • Federal role • Provincial • Municipal • Aboriginal • Both ENGOs and Investors feel that the current system is flawed

4. Federal Commitment is Clear "To support responsible development of Canada's energy and mineral resources, our Government will untangle the daunting size of regulations that needlessly complicate project approvals, replacing it with simpler, clearer processes that offer improved environmental protection and greater certainty to industry.“ 2010 Federal Throne Speech

5. Characteristics of Current Regulatory Framework & System • Multiple Policy/ Legislative platforms • Inconsistent Definitions/Applications of Regulatory Risk • Government regulatory resources sometimes inadequate • Mixed success with intergovernmental and intragovernmental coordination • Unresolved procedures for Aboriginal consultation • Multiple entry points for intervenors • New environmental legislation/regulation without economic considerations • Expanding process time frames

6. What is being done? • Recent Federal initiatives • Provincial initiatives • Business involvement

7. Some examples of what “we” need to do • Construct regulatory road maps • Develop single window regulatory vehicles • One project, one process reviews involving all levels of government • Introduce sector-focused regulatory approaches • Develop accountability frameworks for regulatory process and performance • Establish an independent expert international panel for a regular review of Canada's regulatory process and performance

8. Risks of doing nothing • Duplication, overlapping and contradictory regulations damage Canada's competitiveness, increasing costs for development while adding no net benefit • Erosion of investor and public confidence and certainty through competing federal-provincial priorities and policies • Environmental concerns are not adequately addressed • Major projects are delayed or cancelled hurting the Canadian economy • Regulatory overlap can cause problems for project approval and operational oversight and compound trade impediments

9. Opportunities for Canada • Cooperation on energy leads to a stronger federation and a stronger economy • Harmonization of regulations and a single regulatory window would significantly improve competitiveness and can support/enhance existing environmental policy direction • Improve Canada's reputation and relative competitive position • Significantly reduce regulatory time frames, increase transparency and improve dispute resolution • Contribute to reduction of federal-provincial trade barriers