National Energy Board (NEB) – Implications of Proposed Changes: A Review
via Friends of Science Calgary
http://ift.tt/2on3Vep
Many Canadians have been unaware of the work of the National Energy Board (NEB) since its establishment in 1959, as a group of highly skilled, very technical people with a mandate to carefully review proposals for national energy infrastructure, such as pipelines and power lines, and oil/gas imports/exports, with a view to national safety, resilience and economic interests.
Recently various activists and environmental groups claimed the NEB process was flawed and demanded a review. Now there are proposals for a significant revision to the existing operation. The proposed processes will take much longer for approvals, will incorporate less tangible, less measurable considerations such as climate change, and much of the focus on the present very important technical and long-term performance evaluations appear to be taking second place to these less tangible considerations.
Robert Lyman posed the question “Can Canada Survive Climate Change Policy?” at his Calgary presentation on May 9, 2017. The proposed changes to the NEB are a related complication. Canadians must look at the highly competitive global markets and evaluate whether making infrastructure projects more difficult to approve, in a process that is apparently less technical, is in the best economic interests of the nation, even as Canada is already an acknowledged leader in environmental management. Ottawa energy policy expert, Robert Lyman, has contributed the following overview. This summary is the first of a multi-part series on this topic. – Friends of Science Society
THE REPORT OF THE EXPERT PANEL ON THE MODERNIZATION
OF THE NATIONAL ENERGY BOARD
Contributed by Robert Lyman © May 17, 2017
This document is intended to provide a summary of the key elements of the May 15, 2017 report of the panel appointed by the current Trudeau Government with a mandate to offer recommendations that would “modernize” the National Energy Board, and specifically would “position the NEB as a modern, efficient, and effective energy regulator and regain public trust”.
This summary will focus especially on the policy and regulatory system that would result if the panel’s recommendations were accepted and implemented, not on the rationale offered by the panel. As introduction, however, it should be noted that the panel presented its conclusions as a product of its cross-Canada consultations and as part of “a comprehensive vision for the future of the energy transmission infrastructure regulation” in Canada. Notably, the report recommended:
- Placing energy infrastructure regulation within the framework of a national energy strategy that furthers Canada’s climate change emissions reduction commitments;
- Significantly increasing the role and authority of indigenous people (“creating a nation-to-nation relationship”) in all phases of energy policy, infrastructure regulation, and lifelong oversight of energy infrastructure;
- Radically increasing the scale and scope of stakeholder engagement in all phases of energy project regulation; and
- Increasing the transparency and openness of all licensing processes and follow-up actions by the regulator.
To achieve this vision, the panel recommends the following:
- Replacement of the National Energy Board with an entirely new policy and regulatory review system
- Recommendation that, as the first stage in that system, the government of Canada develop an energy strategy that “reconciles economic, social and environmental (particularly climate change) goals in a way that can meaningfully inform decision making and frame the context for debates about whether, for example, a proposed energy infrastructure project aligns with Canada’s big-picture goals for economic, social and environmental progress”.
- Establishment of the first step in project review as a one-year process in which the Governor in Council (i.e. the federal Cabinet), after extensive consultations with aboriginals and analysis by a new Major Projects Management Office in Natural Resources Canada of its strategic acceptability, would determine whether the project “aligned with the national interest”;
- Creation of a new Canadian Energy Transmission Commission (CETC) to replace the National Energy Board. This board, along with the Canadian Environmental Assessment Agency (CEA), would evaluate “the potential risks of a project to Indigenous peoples (based on robust consultation), the environment, and human health and safety”. This process would be conducted by a five-person panel of Hearing Commissioners at least one of whom is indigenous), composed of two commissioners from the CETC, two commissioners from the CEA, and a fifth panel member. The environmental assessment would take place under CEA authority. The panel expects this to be a process that would take one year.
- The CETC would then examine all the “technical issues” related to the pipeline and whether it could operate safely and securely (there is no mention of regulating safety, engineering, economic viability or rates). This process would take another two years and, if satisfied, the Joint Panel would have authority to grant or deny licences.
- Creation of a new, independent Canadian Energy Information Agency, separate from policy and regulatory functions, to provide “information and analysis for policy makers and the public”.
- The CETC play a major role in “keeping the land pure”, by regulating the safety and integrity of pipelines and electricity transmission lines during their operation, recognizing that “as we reduce our global dependence on fossil fuels we can expect the number of new major pipeline projects to dwindle…Overall, the goal shared by the CETC and industry is an ambitious one: zero incidents and zero releases.”
- End of Summary. Look for additional posting on this topic in the coming days.
Additional reading:
Moving Oil by Pipeline: Examining The Facts
Moving Oil by Tanker in Canada: The Facts
via Friends of Science Calgary http://ift.tt/2on3Vep
May 17, 2017 at 07:07AM
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