Energy and Natural Resources - Op Eds

Ottawa is now accepting public comment on the recently released report of its expert panel on the modernization of the National Energy Board (NEB).

The panel made 46 recommendations to the minister of natural resources. Many recommendations, if accepted, would fundamentally change the structure, mandate and governance of the NEB. They would also change how decisions are made about pipelines and transmission lines that cross provincial borders. Unfortunately, the report missed a major opportunity to restore the tattered reputation of the NEB.

Reform is needed to assist the federal government and the NEB, or any successor organization, to regain public credibility and trust in decision-making related to federally…

Last week, politicians made it harder for Canada to meet its greenhouse gas emissions reduction target.

Think I’m talking about Donald Trump’s withdrawal from the Paris agreement? No, it’s a potential attempt by B.C. politicians to block the building of Kinder Morgan’s Trans Mountain pipeline. By rejecting the pipeline, B.C. politicians are going to make it harder to reduce Canada’s emissions.

The B.C. NDP and Green parties agreed to “immediately employ every tool available to the new government to stop the expansion of the Kinder Morgan pipeline,” despite federal approval of the project, itself subject to many conditions regarding safety and environmental concerns.

First, let’s admit to one thing: more pipelines…

Every 10 years or so, the government of Ontario finds it necessary to freeze or cut electricity prices because the costs of an ambitious energy policy prove to be politically unacceptable. This leaves every generation of electricity customers paying for the cost of a failed experiment from a previous generation. We should learn from this experience and implement a governance model for the sector that reviews and mitigates costs before a policy is adopted, not after.

In 1993, the government froze prices because the costs of Ontario Hydro’s massive nuclear expansion were leading to double-digit rate increases. In 2002, the government froze prices because the electricity market opening resulted in higher and more volatile prices. In…

"My Region First!"

It's a rallying cry we're hearing more these days, as regionalism becomes more a part of public policy.

The B.C. government recently approved the Trans Mountain pipeline that will haul Alberta oil to port. And it did so after squeezing up to a cool billion dollars out of Kinder Morgan — money which will go into an environmental protection fund.

Sounds good. Alberta gets an economic boost, B.C. gets a share of the spoils and some environmental help, and Kinder Morgan foots the bill. Or does it?

Things aren't always how they appear. More often than not, the person who has to cut the cheque is not the one who ends up paying.

So who does? It's a complex question.

But in…

Following a report by Alberta’s Energy Efficiency Advisory Panel, the government announced a large program last week aimed at improving the energy efficiency of homes, businesses and non-profits. It will fund free installation of energy efficiency products throughout the province, and provide rebates on efficient appliances, lighting, and so on. With a budget of $645 million over the next five years, funded by carbon tax revenue, it’s no small endeavour and is worth a careful look.

First, let’s take a step back and ask: What is the purpose of energy efficiency programs?

Simply put, they can potentially solve two market failures: (1) environmental externalities; and (2) behavioural biases. The success of the program should…