The Rest of Canada

1. The Rest of Canada

2. Outline • Ontario energy policy • Big picture • FIT • BC comparisons • NEP • Canadian energy policy in 2010s

3. 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)

4. Ontario Fuel Mix

5. Governance

6. Shifting problem definitions • 1990s: cost • Public health (note Walkerton focusing event) • Supply • Economic development

7. 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

8. ON instruments (Rowland)

12. 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

13. Ontario conclusion • How many times were other provinces or the Government of Canada mentioned in either article?

14. The NEP and Legacy Trudeau

15. 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

16. 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

17. 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

18. 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).

19. 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)

20. 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

21. NEP denouement • Beginning in 1982, world oil prices began to plummet

22. 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

23. 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

24. Canadian Energy Strategy for 2010s

25. 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

26. 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)