Canada’s Clean Fuel Standard Framework released

On December 13, the Government of Canada released its  Clean Fuel Standard Regulatory Framework, the latest stage in the  development of regulations to complement the Pan-Canadian Framework on Clean Growth and Climate Change, by achieving  30 megatonnes of annual reductions in GHG emissions by 2030.  The standard will apply to all fuels – gasoline and diesel, but also aviation fuel, natural gas for heating, and metallurgical coal. It  will also apply to the full life cycle of fuels –  the first jurisdiction in the world to do so, according to the Pembina Institute .  The Clean Fuel Standard process began in November 2016, with consultations held throughout 2017,  largely focused on the government’s Discussion Paper (February 2017).   Comments received in that consultation were compiled  in a November report:  Clean fuel standard: Summary of stakeholder written comments on the Discussion Paper.   In response to the December Framework release, comments on the technical details will be accepted from  industry, provincial  governments, non-governmental organizations until January 19, 2018. Draft regulations are promised for  late 2018.

The Pembina Institute reaction  highlights three noteworthy aspects of the proposed Canadian Fuel Standard Framework:  1. Sustainability and indirect land-use change issues are sidelined –  which is “concerning and unacceptable” ;  2. Canada’s existing  federal Renewable Fuels Regulations will remain in place for a short-term transition period, and the new GHG-intensity-based clean fuel standard will eventually replace them – ( an approach  Pembina has previously recommended in its April 2017 submission to the government ); and  3.  Pembina urges  “the importance of timelines” – i.e. the longer it takes to implement these regulations, the more stringent they must be if Canada is to meet its emissions reduction target for 2030.

How important is the Clean Fuel Standard?  It has been called the single most important policy tool to achieve Canada’s emissions reductions target for 2030.  And in November 2017, Clean Energy Canada published “What a Clean Fuel Standard can do for Canada”  in which Navius Research used two in-house models to simulate the impact of different Clean Fuel Standard designs on Canada’s economy.  The report concluded, among other beneficial effects :  “The policy would increase economic activity in clean fuels in Canada by up to $5.6 billion a year in 2030. It would also create up to 31,000 jobs for the skilled workers needed to build, operate and supply new clean fuel facilities.”   A separate Technical Report  explains the modelling and provides much more detail about all projections, including employment projections.

Also of interest: From the EcoFiscal Commission,  A delicate (im)balance: policy interactions and the federal clean fuel standard  and an April 2017  Submission to the Clean Fuels Standard  consultations  from the Pembina Institute, Equiterre, Environmental Defence, and the Conservation Council of New Brunswick.

New Brunswick’s new Climate Change Act unlikely to meet the federal carbon pricing benchmark

The government of New Brunswick introduced its Climate Change Act on December 14, 2017. According to the government press release ,   the province will adopt the federal government’s intensity targets for the 10 large industrial emitters in the province,  and  will redirect existing taxes on gasoline and diesel fuel – but not heating fuel –  to a new Climate Change Fund.  It forecasts that in 2018, 2.33 cents per litre of existing gasoline taxes and 2.76 cents per litre of existing diesel fuel taxes will be transferred to the Climate Change Fund, amounting to about $37 million, to be invested in infrastructure adaptation and energy efficiency improvements for homes, business, industry and transportation.  For details, see the government Backgrounder  and see the CBC analysis “Liberals’ sleight-of-hand carbon tax formally proposed in climate bill “(Dec. 14) for summary and reaction.  In  “Legislation misses mark on protecting families and communities from worst of climate change impacts in N.B.” , the Conservation Council of New Brunswick calls the government plan “an uninspiring follow-up to last December’s climate change action plan , which was a smart road map for climate action and job creation that was among the best in the country…. we have legislation that largely maintains the status quo and sets us on a race to the bottom when it comes to protecting the health and safety of New Brunswickers and taking advantage of the economic opportunities that come with ambitious climate action.”

The National Observer summarizes the reaction from the federal government  in “New Brunswick defends climate plan against McKenna’s concerns”, quoting the Minister’s  Facebook post which reiterated the federal position that it will impose a carbon tax on any jurisdiction which falls short of federal carbon pricing benchmarks under the Pan-Canadian Framework on Clean Growth and Climate Change.  In a separate statement on December 15 , the Minister extended the deadline for provincial compliance till the end of 2018.

Site C Hydro Dam will go ahead after historic decision by B.C.’s NDP Premier

site-c-project-location-mapBringing an end to years of controversy, in what NDP Premier Horgan called a “very, very divisive issue”, the British Columbia government announced on December 11 that it will proceed with construction of the Site C hydroelectric dam , on the grounds that it is too late to turn back.  In a press release  which blames “megaproject mismanagement by the previous government”, the government justifies its decision by saying that  cancellation would result in  “ an immediate and unavoidable $4-billion bill – with nothing in return – resulting in rate hikes or reduced funds for schools, hospitals and important infrastructure.”  The press release continues with a list of sweeteners for the opponents of the project, announcing that improved project management to keep costs to $10.7 billion; new community benefits programs to keep jobs in local communities and  increase the number of apprentices and First Nations workers hired; a new BC Food Security Fund to help farmers whose land will be negatively affected; and the promise of a new alternative energy strategy for B.C. .

The National Observer provides a brief overview of reaction in “As costs escalate, Horgan says it’s too late to stop Site C mega-project” . CBC News covers the debate and the decision in several articles, including “ John Horgan disappoints both Site C opponents and supporters in northeast B.C.”   and “B.C. government to go ahead with Site C hydroelectric dam project ” which examines the huge political fallout and  states that the Green Party , which holds the balance of power in B.C.’s legislature,  will not  force an election over the issue, despite their opposition to the decision.

Reaction on labour issues :  For mainstream union reaction to the decision, see “Site C: What Happens Next?”  in The Tyee (Dec. 11)  .  The complex labour politics of Site C is summarized in “ Construction Unions Pressing for Completion of Site C” , which appeared earlier in The Tyee,  (Nov. 24) , and takes a deep dive into the ties between the NDP government and  the Allied Hydro Council of BC, a bargaining agent for unions at previous large hydro projects, and an advocate of the  Site C project.  Following the decision, the  Independent Contractors and Businesses Association (ICBA) stated their “relief” for the go-ahead decision, with the reservation that “Arbitrarily setting apprentice and other workforce ratios will limit contractor flexibility and inevitably drive up costs and slow the construction schedule.”   Similar sentiments appear in the press release from the Christian Labour Association of Canada (CLAC) , which represents the majority of Site C workers  under the Open Shop system in place since 2015.

site-c-protest-camp

Photo by Yvonne Tupper, from CBC News

Re the First Nations opposition: “‘A reconciliation fail’: B.C. First Nations promise court action over NDP’s approval of Site C”   at CBC News (Dec. 12), quotes First Nations leaders, including the Union of B.C. Indian Chiefs, and the West Moberly First Nations and Prophet River First Nations, who have already announced that they will apply for a court injunction to halt construction of the project and begin a civil action for Treaty infringement.

A sampling of reaction of environmentalists appears in “Site C a betrayal of First Nations, Ratepayers and Future Generations” (Dec. 11) and in multiple articles at DeSmog Canada https://www.desmog.ca/  . A glimpse of the environmental campaign appears at the Stop Site C website , and the  Wilderness Committee, a member of that campaign, reacts here .

Cities continue to fight climate change

The North American Climate Summit   held in Chicago from December 4 to 6, 2017  brought together the mayors of 50 cities from Canada, Mexico, France, and Tanzania, to reaffirm their commitment to the Paris Agreement and greenhouse gas emissions reduction.  The mayors signed the  Chicago Climate Charter , which is not legally binding but commits the municipalities to at least match the emissions reductions goals of their home countries, and sets out reporting mechanisms. The  Summit was also the setting for  the 5th annual 2017 C40 Cities Bloomberg Philanthropies Awards, which recognized exemplary city  programs from around the world (none of the winners was Canadian). The Summit was co-sponsored by the Global Covenant of Mayors for Climate and Energy.

U.S. cities in particular are keen to demonstrate their climate change-fighting resolve – many through the “We are Still In” coalition which formed after President Trump’s withdrawal from the Paris Agreement and which was very active at the COP23 meetings in Bonn.  Additionally, the Sierra Club has published  the Cities are Ready for 100 2017 Case Study Report , highlighting the U.S. cities which are committing to a 100% Renewable Energy target.   Disappointingly, on December 4, Bloomberg News reported that the Trump administration has terminated the Community Resilience Panel for Buildings and Infrastructure Systems, an interagency group created under President Obama to help municipalities protect their residents against extreme weather and natural disasters.

English_Bay,_Vancouver,_BCIn November, the City of Vancouver updated its Renewable City Strategy,  setting an interim 55% renewable energy target for 2030, which covers electricity, heating and cooling, and transport. For a discussion of Vancouver’s progress, see “Can Vancouver achieve 100% renewable energy?” in The Vancouver Sun (Nov. 5).

Alberta unveils its Just Transition plan for coal workers

On November 10, the government of  Alberta released the Recommendations of the Advisory Panel on Coal Communities – 35 recommendations to promote a just transition from coal-mining, necessitated  by the government’s Climate Leadership Plan to phase-out coal-fired electricity by 2030.  The Advisory Panel focuses on three areas: workers, communities and First Nations. The 18 recommendations regarding workers relate to income security and replacement, pension security, retraining and re-employment – and recommend a strong role for unions in planning and process.  Some examples:  … “Programs and training should be delivered, as much as possible, while workers are currently employed and should include accessible and flexible skills development models. This includes a role for employers to enable access to skills development during employment.”… “Employers and unions should play roles in facilitating the training or retraining of impacted workers. This could be reflected in employer cost sharing with government and union participation in planning and delivery of assistance.”… Where provisions are inadequate, facilitate the negotiation of severance provisions between employers and unions that represent workers at coal-fired facilities and associated coal mines. Similar negotiations should be facilitated for non-union employees. …Where provisions are inadequate, facilitate the negotiation of early retirement benefits between employers and unions that represent workers at coal-fired facilities and associated coal mines. Similar negotiations should be facilitated for non-union employees. …Immediately assess the direct impact of the transition on the funded status, solvency and operation of defined-benefit pension plans and take steps to ensure these plans are adequately funded. ”

In  a separate press release , the government announced more details about  a $40-million transition fund for workers and communities.  As described on the government website , benefits will include financial support for retraining (still under development), on-site employment counselling for individuals, and the provision of facilitators to  assist employers, employees and unions to establish a worker adjustment committee to develop a workplace transition plan, using labour market information or commissioned regional labour market studies.  In addition, Alberta is calling on the federal government to make changes to the Employment Insurance (EI) program immediately, so that the provincial  income support will not reduce their EI income,  and to also extend the duration of EI benefits for coal workers.

The Coal Transition Coalition project, an alliance of unions led by the Alberta Federation of Labour, had previously published its recommendations in  “Getting it Right: A Just Transition Strategy for Alberta’s Coal workers.  The AFL response to the government’s announcements on November 10  calls the Transition Plan “a step in the right direction” and credits the Advisory Panel with listening to workers’  input.  President Gil McGowan warns, however, that   “Offering bridging supports to workers on EI and extending the benefit period for workers close to retirement are important elements of the plan, but they depend on the federal government doing their part,” … “Many coal-fired units in Alberta are closing due to federal government regulatory changes. They have a responsibility to these workers to help ensure a just transition.”