Category Archives: Climate Change

Obama Climate Change Speech Sets New Standard for Keystone Pipeline Debate

By: James Coleman

PDF Version: Obama Climate Change Speech Sets New Standard for Keystone Pipeline Debate

Speech Commented On: Remarks by President Obama on Climate Change, http://www.whitehouse.gov/the-press-office/2013/06/25/remarks-president-climate-change

On June 25, President Obama unveiled a Climate Action Plan in a speech at Georgetown University (see here). This plan highlighted upcoming U.S. greenhouse gas standards for fossil-fuel power plants, directing the U.S. Environmental Protection Agency to issue new proposals for both new and existing power plants. But the speech is making the most news for an unexpected reference to the Keystone XL pipeline, which is designed to transport oil sands bitumen from Hardisty, Alberta to Steele City, Nebraska.

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Applicants to a Feed-in Tariff Program Must Expect Change

By: Nigel Bankes

PDF Version: Applicants to a Feed-in Tariff Program Must Expect Change

Case Commented On: Skypower CL 1 LP et al v Minister of Energy (Ontario) et al, 2012 ONSC 4979

In an earlier post entitled “Low carbon energy policies: vested rights, legitimate expectations and differential treatment in domestic and international law” (see here). I commented on a UK case involving changes to a feed-in tariff (FIT) program as well as a couple of ongoing international arbitrations against Canada involving provincial energy policies (one in British Columbia and one in Ontario, the Mesa Power arbitration). The Skypower decision which is the subject of this post involves changes to Ontario’s FIT program. The common theme of all of these cases are the legal implications for government where government changes its mind about the terms of incentive programs designed to encourage the uptake of low carbon forms of generation.

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Cleaning Up Coal II

By: Astrid Kalkbrenner

PDF Version: Cleaning Up Coal II

Regulations Commented On: Federal Regulations “Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations” as of 30 August 2012, (Canada Gazette Part II, Vol. 146, No 19, SOR/2012-167)

On 27 August 2011 the federal government published proposed regulations on the “Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity” (the “Draft Regulations”) (see my previous ABlawg post Cleaning up Coal). The Draft Regulations were open for comments for a 60-day public consultation period. Environment Canada received over 5000 submissions during the consultation period, including submissions from 4 provincial governments, 16 electricity industry corporations and system operators, 17 other industry corporations and associations, 6 Non-governmental Organizations (NGOs) and from the general public. The Regulatory Impact Assessment Statement (RIAS) for the Regulations acknowledges that the comments and extensive discussions with industry and provinces led to refinements of the Draft Regulations which in its final version provides greater flexibility to industry, while respecting the draft regulatory framework and maintaining the contribution of the Regulations to meeting Canada’s Copenhagen target (for the RIAS see Canada Gazette Part II, Vol. 146, No 19, SOR/2012-167, 2002 at 2003). On 30 August 2012, the final Regulations were published as a regulation of the Canadian Environmental Protection Act, 1999 (CEPA), SC 1999, c 33.

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Low Carbon Energy Policies: Vested Rights, Legitimate Expectations, and Differential Treatment in Domestic and International Law

By: Nigel Bankes

PDF Version: Low Carbon Energy Policies: Vested Rights, Legitimate Expectations, and Differential Treatment in Domestic and International Law

Cases and Matters Commented On: Secretary of State for Climate Change v Friends of the Earth and Others, [2012] EWCA Civ. 28, aff’g lower decision; Mesa Power Group LLC v Government of Canada, Notice of Intent to Submit a Claim to Arbitration under Chapter Eleven of NAFTA, July 6, 2011; Mercer International Inc v Government of Canada, Notice of Intent to Submit a Claim to Arbitration under Chapter Eleven of NAFTA, 26 January 2012, and request for arbitration (ICSID Additional Facility), April 30, 2012

Governments around the world are adopting a variety of low carbon and green energy policies designed to increase the share of renewable energy sources in the energy mix. In addition, some governments, including the government of Alberta, have also adopted policies to provide for the sequestration of carbon dioxide emissions where carbon fuels continue to make up a significant part of the energy mix. These policies often provide financial incentives to investors in order to persuade them to commit to the new technology. For example, many governments provide for feed-in-tariffs (FIT) to encourage the development of wind and solar energy. A FIT represents a commitment by the government directly or through the incumbent utility to purchase the output from the designated facility (e.g. wind generator, solar panels or biomass generation) at a specified price for a prescribed number of years (typically representing the amortization period of the asset). Such commitments are designed to be “bankable” in the sense that the proponent will be able to use the commitment to raise capital to fund the venture. Similarly, many governments have found it necessary to provide financial support (subsidies or “state aid” in the language of the European Union) for the first commercial scale carbon capture and storage projects. For example, the province of Alberta is currently providing support for three different sequestration related projects in the province (see here). Continue reading →

The European Fuel Quality Directive: Will It Slay or Will It Go?

By: Matthew Ducharme

PDF Version: The European Fuel Quality Directive: Will It Stay or Will it Go?

Document Commented On: Draft Implementing Measure to the European Union Fuel Quality Directive, February 23, 2012

On February 23, 2012, a European Union (EU) drafting committee voted on a draft law that discriminates against bitumen. This was the Draft Implementing Measure to the European Union Fuel Quality Directive (Implementing Measure). The Canadian press reported the vote ended in a stalemate. The press also noted that the law would be reconsidered in the late spring or early summer (National Post; CBC; Globe and Mail).

If the EU enacts the law it will have made a step in its fight against climate change, but the market for bitumen may be negatively impacted. If the law dies, Canada can expect a higher price on the sale of its bitumen in overseas markets. This note examines the February 23 vote within the EU law making process.

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