B.C. Budget delivers $902 million to fund Clean B.C. initiatives

BC government news open micThe government of British Columbia tabled its Budget on February 19- officially detailed in  Making Life Better- A Plan for B.C. 2019/20 — 2021/22 .  As summarized by the National Observer article, “B.C. provincial budget funds nearly $1 billion for climate action” , it included $902 million  over the next three years to support the 2018 Clean B.C. Plan . Here are some of the big-ticket items:  $107 million for transportation initiatives – mostly providing incentives for zero-emission vehicle purchases (up to $6000 per vehicle) and funding for new charging stations;  $58 million for making homes and commercial buildings more energy efficient – as a result, homeowners can get up to $14,000 for energy efficiency improvements such as  switching to high-efficiency heating systems or upgrading their doors or  windows. $168 million is dedicated to funding  an incentive program to encourage large industrial polluters to reduce their emissions; $15 million is dedicated to help remote communities transition to clean energy solutions, and  $299 million is unallocated as yet. In addition to the Clean B.C. funds, the budget includes $111 million over three years to fight and prevent wildfires, another $13 million for forest restoration, and $3 million for the BC Indigenous Clean Energy Initiative, to help First Nations communities build clean energy projects.

Reaction has generally been positive – for example, from Clean Energy Canada . The Canadian Centre for Policy Alternatives B.C. Office, in “Nine things to know about the B.C. Budget” commends the  $223 million which is  budgeted to increase the climate action tax credit for low- and middle-income earners, but says, “action needs to be ramped up further—and fast”.  CCPA’s  Special  Pre-budget Feature  included an essay by Marc Lee “Expand climate initiatives to reflect the urgency of the crisis”  (Feb. 1). Lee had called for the  reinstatement of  annual increases to the carbon tax, beginning in 2019 with an increase of $10 per tonne – but no such policy was announced. (Lee had also called for more realistic budget allocations for wildfire response, which was addressed).

Finally, the Pembina Institute response is generally positive, though it calls for an independent panel to publicly monitor accountability and report on progress annually, echoing the Op-Ed “wish list” it had released before the budget was handed down.  . That had  stated: “B.C.’s Climate Change Accountability Act needs more teeth. What’s required is a transparent process whereby the government forecasts carbon pollution (including reduction goals for each sector), tracks and publicly reports on our progress, submits this data for independent verification, and adjusts policies as necessary.”   Other key items which Pembina had called for include  stronger regulations than those announced in January to limit methane pollution, and a strategy to use clean electricity to power the controversial LNG production which threatens to make the province’s GHG emissions targets unreachable.

Electric vehicle policy in Canada stalled by provincial opposition – 2018 market share at 2.2% of vehicle sales

electric carArticle updated on February 12:

Just as the cost of solar energy has steadily declined, so too has the total cost of ownership of electric vehicles, according to new research from Deloitte  consultancy in the U.K. .  Deloitte’s forecast is that total cost of ownership of electric vehicles will match that of  internal combustion cars  as early as 2021 in the U.K., and by 2022 globally.   By 2030, Deloitte’s also forecasts global EV adoption will rise from two million units in 2018, to four million in 2020, to 21 million in 2030, driven by consumer demand and government incentives.

In Canada:  Electric Mobility Canada, a non-profit advocacy network, released 2018  statistics for sales of electric and hybrid vehicles on February 8.  Their report shows that ev sales amounted to 2.2% of all new car sales in 2018 – disappointing, but a 125% increase over sales in 2017.  There are now approximately 93,000 ev’s in Canada, with almost all concentrated in British Columbia, Ontario, and Quebec.

A federal Strategy for Zero Emissions Vehicles, promised for 2018,  was expected to be announced on January 21 at the meeting of the Council of Ministers Responsible for Transportation and Highway Safety.  The extent of a policy announcement was a quote which appeared in the Toronto Star article: “ Ottawa wants to increase the number of zero-emission vehicles sold in Canada to 10 per cent of new cars sold in 2025, 30 per cent in 2030 and 100 per cent in 2040.”  Frustrated by the lack of progress, the David Suzuki Foundation  is  hosting  a petition titled “Has Canada stalled on electric vehicles?” calling for mandatory targets for electric vehicle sales, ramping up to 30 per cent by 2030 and a temporary purchase incentive program.

Both Ontario and Saskatchewan opposed a national plan at the January Ministers’ meeting, as reported in the Toronto Star in “Ottawa Queens Park spar over federal plan for more zero emission vehicles”  (Jan. 22). The National Observer examines their opposition in “Electric vehicle strategy sputters as provinces battle it out on green policies” (Jan. 18).  The Ford government in Ontario cancelled the EV purchase incentive program in June 2018, and more recently, EV charging stations at the commuter parking lots of the GO regional transit have been removed.

BC ev charging stationsMeanwhile, on February 11, the federal government announced a $1.15-million investment to build 23 electric vehicle fast chargers across British Columbia , in partnership with funding from the provincial government.  The funding comes from the federal  Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative (EVAFIDI), which has budgeted  $182.5-million for fast-charging and natural gas stations across the country.  That program has recently been criticized in a National Observer article, “Close to half of Canadian program touted for electric cars is funding natural gas stations”(Jan. 25) .

Relevant international research:  An October 2018 Briefing paper from the International Council on Clean Transportation: Electric vehicle capitals: Accelerating the global transition to electric drive–  which identifies the 25 cities worldwide with the highest electric vehicle uptake through 2017, and discusses the policies, actions, and infrastructure that have enabled their success. And in December 2018, the ICCT also published  Using vehicle taxation policy to lower transport emissions: An overview for passenger cars in Europe, which highlights the need for taxation incentives at the point of purchase and for gas/electricity consumption, as well as the importance of company fleets “as they make up the highest proportion of new-car registrations in markets such as France, Germany, and the United Kingdom.”

Review of Alberta’s Climate Leadership Plan and carbon levy; updates on renewables and methane regulations

env defence carbon-pricing-alberta-fbEnvironmental Defence released a report in December 2018, Carbon Pricing in Alberta: A review of its success and impacts  . According to the report, Alberta’s carbon levy, introduced in 2017 as part of the broader Climate Leadership Plan, has had no detrimental effect on the economy, and in fact, all key economic indicators (weekly consumer spending, consumer price index,and gross domestic product) improved in 2017. The report also documents how the carbon levy revenues have been invested: for example, over $1 billion used to fund consumer rebates and popular energy efficiency initiatives in 2017; support for Indigenous communities, including employment programs; a 500% growth in solar installations; funding for an expansion of light rail transit systems in Calgary and Edmonton; and prevention of an estimated 20,000 tonnes of greenhouse gas (GHG) pollution. The conclusion: the Climate Leadership Plan and its carbon levy is off to a good start, but improvement is needed on promised methane reduction regulations , and the regulations to enforce the legislated cap on oil sands emissions need to be released.

Methane Regulations:    The Alberta Environmental Law Centre published a report in 2017 evaluating the province’s methane emissions regulations. On December 13, the government released new, final regulations governing methane. On December 19, the Alberta Environmental Law Centre published a summary of the new Regulations here  

Since the Environmental Defence study, on December 17, the government announced  agreement on five new wind projects funded by Carbon Leadership revenues, through the  Renewable Electricity Program. Three of the five projects are private-sector partnerships with First Nations, and include a minimum 25 per cent Indigenous equity component to stimulate jobs, skills training and other  economic benefits. The government claims that all five projects will generate 1000 jobs.

On  December 19 the government also  announced   new funding of  $50 million from Alberta’s Climate Leadership Plan for the existing  Sector-specific Industrial Energy Efficiency Program , to support technology improvements in the  trade-exposed industries of pulp and paper, chemical, fertilizer, minerals and metals facilities.

Balanced against this, a December 31 government press release summarized how its “Made in Alberta ” policies have supported the oil and gas industry: including doubling of support for petrochemical upgrading to $2.1 billion; creation of a Liquefied Natural Gas (LNG) investment team to work directly with industry to expedite fossil fuel projects; political fights for new pipelines (claiming that “Premier Notley’s advocacy was instrumental in the federal government’s decision to purchase the Trans Mountain Pipeline”), and the ubiquitous Keep Canada Working  advertisements promoting the keepcanada workingbenefits of the Trans Mountain pipeline . The press release also references the November announcement that the province will buy rail cars  to ship oil in the medium term,  and the December 11 press release announcing that the province is  exploring  private-sector interest in building a new oil refinery .

Canada: the year past and the battle over carbon pricing in the year ahead

The Energy Mix Yearbook Review for 2018 is undoubtedly the most thorough and informed review of 2018 climate issues for Canadians.  It compiles its newsletter coverage of 2018 stories and adds context and analysis, as well as a multitude of links to further reading.  The sections of exceptional interest include “Jobs and Just Transition: Renewables and Efficiency Jobs Surge while Fossil Employment Sags “; “Fossils go for Broke”  and “Canada’s Contradiction: Low-Carbon Leader or Perpetual Petro-State?”  .  Other, briefer overviews for Canada include “State of Play 2018”  from EcoJustice, highlighting legal issues;  “ 10 wins for Canadian energy and climate action in 2018: Year in review” with a positive slant from the Pembina Institute (Dec. 20) ; and from the Council of Canadians 2018 in Review: Offshore drilling (December 21),  a chronology from Atlantic Canada.

On December 20, easily overlooked because of the holiday season,  Environment and Climate Change Canada published five separate review reports.  Clean Canada:  Protecting the Environment and Growing our Economy   is a snapshot of Canada’s federal climate action policies and expenditures, and seems intended for a wide popular audience.  Second Annual Synthesis Report regarding the Pan-Canadian Framework on Clean Growth and Climate Action   (French version here )  is a more detailed accounting of the policies and programs by the federal and provincial governments in 2018, organized in chapters relating to carbon pricing, complementary measures (buildings, transportation, electricity, agriculture, etc.); adaptation and resilience; clean technology and innovation and jobs; reporting and oversight; federal engagement and partnership with Indigenous people .  2018 Canada’s Greenhouse Gas and Air Pollutant Emissions Projections Report  (French version here ) provides, again,  a policy overview but its main purpose is to continue the series of annual reports (since 2011) of detailed emissions data for economic sector and  geographic region. It also includes emissions projections to 2030 under two different scenarios – (spoiler alert: oil and gas will be Canada’s leading source of emissions, followed by transportation and heavy industry).

Other substantial reports published on December 20 will form the basis for consultations in 2019.  The new draft for the Federal Sustainable Development Strategy 2019 to 2022 will inform a public consultation until April 2, 2019. (The companion 2018 Progress Report on the Federal Sustainable Development Strategy  evaluates the 2016 to 2019 strategy goals and the activities of  41 federal departments and agencies.)

The final Clean Fuel Standard Regulatory Design Paper focuses on the liquid fuels regulations, with comments requested by February 1, 2019. The draft regulation is scheduled to be published in 2019 and a final regulation by 2020, bringing to an end a complex consultation process that began in 2016 (summarized by WCR  in January 2018).  The Clean Fuel Standard will apply to the full life cycle of all fuels, gasoline and diesel, aviation fuel, natural gas for heating, and metallurgical coal, and has been called the single most important policy tool to achieve Canada’s emissions reductions target for 2030.

And finally, a regulatory proposal relating to the most publicized issue for 2019: carbon pricing.  Next Steps in Implementing the Federal Pollution Pricing System for Large Industry (the “Output Based Pricing System”)  was released on December 20, and carries  a deadline for public comments of February 15, 2019. The Output Based Pricing System registration system went live on November 1, 2018, with reporting and verification requirements starting on January 1, 2019.

The coming battles over Carbon tax in 2019:   As Prime Minister Justin Trudeau announced in late October 2018,  the federal government has not backed down on its determination to impose a carbon pricing policy across all Canadian jurisdictions in 2019, despite resistance and constitutional challenges led by the premiers of Saskatchewan and Ontario.  In some provinces – British Columbia , Alberta , Quebec  – established carbon pricing systems continue; in Nova Scotia , Prince Edward Island , Newfoundland and Labrador –  newly approved systems which meet the government’s benchmarks under the Pan-Canadian Framework will begin.   In the other provinces who have opposed the federal plan – Manitoba , Saskatchewan , New Brunswick and Ontario  –  the federal backstop fuel charge will be imposed starting in April 2019, sweetened by a “Climate Action Incentive”,  whereby all carbon revenue collected by the federal government will go directly back to people in the provinces from which it was generated.  The Annex of the Second Annual Synthesis Report of the Pan-Canadian Framework  provides up to date summaries for the situation in each province.

Public opinion supports the government’s carbon tax actions, though barely, according to polling made public by Global News on January 3 . Based on a November 9 internal poll conducted for the Liberal party, 46 per cent supported and 44 per cent opposed the plan  in Saskatchewan and Manitoba ; in Ontario, 43 per cent were in support and 32 per cent opposed. Nationally, support was at 47 per cent and opposition was at 29 per cent, with women more supportive than men.

Recently, one article appeared in the labour press, supporting carbon pricing:  “Pricing carbon first step to tackling climate change” in CUPE’s Economy at Work newsletter (Jan. 2).  The mainstream press has been far more active, with general support for a carbon tax: for example,  an editorial in  the Globe and Mail newspaper is titled: “ Do you want a carbon tax, or do you want to be lied to? “(Dec. 26) . The editorial is critical of the Ontario government’s Ontario Carbon Trust proposal, about which it states:  “One emerging conservative alternative to carbon pricing is working with business to spur the development of green technology. What that usually means is taxpayers giving subsidies to business.… “Ontario’s Progressive Conservatives ….say they will dish out $400-million on a “Carbon Trust” that will collaborate with industry on emissions cuts. They can rail against carbon pricing all they want; spending taxpayer money has the same effect on pocketbooks as asking consumers to pay more.”

The Canadian Chamber of Commerce was also widely cited as supporting a carbon tax, to the extent that they issued a press release on December 17 2018, clarifying their position:  “While some of the [media] coverage notes the Chamber’s support for carbon pricing, it neglects to include that the support is contingent upon significant caveats. The report calls for government to take concrete steps to reduce the overall regulatory burden on businesses in Canada, and to return the revenues from the carbon tax to business to help them lower their carbon emissions and their energy costs.”  The report referred to, outlining the full arguments, is   A Competitive Transition: How smarter climate policy can help Canada lead the way to a low carbon economy, which was published in December 2018.

Take it to the Courts!  Saskatchewan filed its challenge to the constitutionality of the federal price on carbon pollution in April 2018; the Saskatchewan Court of Appeal announced that it will hear the case in February 13 and 14, 2019, and released the lengthly list of intervenors which it has allowed to appear.  Intervenors include the provinces  of Ontario and New Brunswick on the side of Saskatchewan, and the province of British Columbia on the side of the federal government; other intervenors include the Canadian Public Health AssociationEcoJustice, representing the David Suzuki Foundation and the Athabasca Chipewyan First Nation; and the Council of Canadians , as part of a  group of seven other civil society groups, including the National Farmers Union and  Climate Justice Saskatoon.

A separate case  was filed by the Government of Ontario and will be heard by the Ontario Court of Appeal in April 2019.  The full list of intervenors, as well as the court filings by the Ontario government, appear at the Court of Appeal website here . British Columbia and New Brunswick have also applied for intervenor status in this case.

How will the courts decide?   “Courts should not have to decide climate change policy” appeared on December 21  in Policy Options,  with a discussion of the carbon pricing cases as well as the recent litigation by Quebec’s ENvironnement JEUnesse . Co-authors Nathalie Chalifour and Jason Maclean  argue that “only a collaborative  approach to policy-making is capable of delivering the kinds of rapid, forward-looking and systemic changes in how industries and societies function that are necessary to avoid the most catastrophic consequences of climate change. Litigation, by contrast, is necessarily reactive and typically divisive, time-consuming and influenced by the incremental development of legal precedent.”  Regarding the provincial carbon tax challenges, they state that “the federal Greenhouse Gas Pollution Pricing Act is an example par excellence of cooperative federalism.”…. “There’s little doubt that the courts will confirm the federal government’s jurisdictional authority to regulate GHG emissions. They may even decide that the Constitution obliges the government to take more serious climate action.”

A complex road is ahead, as indicated by a C.D. Howe Institute Memo published in October 2018:   “Federal carbon-pricing backstop is new constitutional territory”.

 

New B.C. Plan weds a clean economy with economic growth and worker training

cleanbc logoBritish Columbia’s long-promised climate plan, CleanB.C.  was released on December 5. The press release summary is here , details are in a 16-page Highlights Report . Top-line summary: the CleanBC plan is at pains to emphasize that it is a plan for economic growth as well as a cleaner environment.  B.C.’s existing carbon tax will increase $5.00 per year from 2018 to 2021, with rebates for low and middle income British Columbians and support for clean investments in industry.  CleanB.C. repeats some already announced initiatives, such as the the zero-emissions vehicle sales mandate and ZEV consumer incentives,  and the requirement for new buildings to be  “net-zero energy ready” by 2032.  Publicly-funded housing will benefit from $400 million to support retrofits and upgrades.  Cleaner operations by industry will target a 45% reduction of methane emissions from upstream oil and gas operations , and incentives “will provide clean electricity to planned natural gas production in the Peace region”.  There is also support through “a regulatory framework for safe and effective underground CO₂ storage and direct air capture “.

CleanB.C. recognizes the needs of workers.  From the Highlights: “As new jobs and professions emerge, post-secondary education and training need to keep pace. The Province is working with employers, Indigenous communities, labour groups and postsecondary institutions to analyze the labour market and identify: -where the strongest job growth is likely to be, – what skills are needed to meet the demand, – what specific training we need to develop and deliver in our communities, and – what support students and apprentices need to excel in these programs. As a first step, we are investing in two key sectors where we already know demand is strong and growing – cleaner buildings and cleaner transportation:  – Developing programs like Energy Step Code training and certification and Certified Retrofit Professional accreditation – Expanding job training for electric and zero-emission vehicles.” The government also states it is developing a  CleanBC Labour Readiness Plan, which is part of the reason that  Unifor responded with “Unifor supports introduction of Clean B.C. Plan”.  Laird Cronk, president of the  BC Federation of Labour calls the new strategy an “historic opportunity” to develop a sustainable economy, and states: “We’re committed to working together on just and fair transition strategies to protect existing workers and to ensure that new employment opportunities created by the CleanBC plan are good, family- and community-supporting jobs.”

The general acclaim for Clean B.C. is compiled in a Backgrounder at the B.C. government website, with statements from politicians, environmentalists, business leaders, First Nations, labour unions, and academics- among them,  Marc Jaccard from Simon Fraser University, who states:  “This plan returns B.C. to global climate leadership.” From other sources:  Clean Energy Canada:  “CleanBC marks a turning point for B.C.’s environment and economy”  (Dec. 5);  The Broadbent Blog , which singles out the exemplary commitment to equity and reconciliation with First Nations people; the Pembina Institute, “B.C. climate plan sets a course to Canada’s clean future”   and  “Five bright spots in B.C.’s new climate plan”, which highlights the importance of the accountability mechanism.   The David Suzuki Foundation   calls it a “Big Step Forward”, but points out that there is more to be done – a Phase 2 is needed.

The Phase 2 of further initiatives (and implementation legislation ) are promised. The  Government clearly admits that the initiatives announced on December 5 will only  achieve 18.9 Mt GHG reduction, leaving a 25% gap with what is required by the  legislated target for 2030 ( 25.4 Mt GHG from a 2007 baseline).

The response from West Coast Environmental Law  applauds and endorses CleanB.C. and its accountability measures, but raises the elephant in the room question:  “We know that the Province needs to go further: the map set out in CleanBC is not complete, nor does it go far enough. Some recent decisions, for example on LNG, are difficult to square with this climate plan”.  This big LNG question also appears in “Critics question B.C.’s LNG pursuit in wake of climate plan announcement” (updated on December 6), stating that “ the already-approved LNG export facilities — LNG Canada and Woodfibre in Squamish — would take up almost all of B.C.’s allowable carbon footprint under the current targets.”  The government’s current LNG Framework   was released in March 2018 , allowing the approval of a controversial  $40-billion LNG project centred in Kitimat  in October 2018.  At that time, the Green Party leader linked his Party’s support for the clean growth strategy and promised the Greens “would have  more to say” about LNG after the Clean Growth strategy was finalized.