Over the last few days there has been a flurry of emails to MLAs around the province concerning BC NDP’s Bill 17: Clean Energy Amendment Act, 2020. These emails articulate opposition to the removal of BC Hydro’s “self sufficiency clause”.

Let’s take a look at this issue in more detail.

Bill 17 proposes changes to the Clean Energy Act and Utilities Commission Act to give BC Hydro the ability to consider a range of energy resources and asset options as it prepares its Integrated Resource Plan.

The bill has been put together in what teachers reading this will recognize as a “two stars and a wish” format. That is, sandwiched between two very positive changes is one that is creating a great deal of concern.

The bill proposes amendments that will allow BC Hydro to:

1. implement a 100% clean energy standard;
2. Remove BC Hydro’s self-sufficiency provision. That is BC Hydro is currently required to hold the rights to enough electricity from generating facilities solely within the province to meet its projected energy demand (more on this below).
3. Remove Burrard Thermal from the list of heritage assets which would allow BC Hydro to dispose of, or develop, this asset.

You’ll get absolutely no argument from me about the importance of implementing a 100% clean energy standard. The bill does not require 100% of BC’s electricity to be produced from clean sources, but it does set up a reporting structure and the intention is clearly to move in that direction as part of CleanBC, which the BC NDP government and I developed collaboratively in 2018. The requirement for 100% clean electricity would have to be set through regulation (Order in Council) and presumably that would occur after consultation with Washington, Oregon and California as to the precise definition of what is considered “clean electricity”. Presently, about 95% of BC’s electricity is generated from renewables.

You’ll also get absolutely no argument from me about the needs to mothball Burrard Thermal. Burrard Thermal was shut down in 2016 by the previous BC Liberal government after announcing it would do so in 2013. It sits on 78 acres of waterfront property in Port Moody that could be put to better use. What’s particularly strategic about the location is that it already has transmission lines to the area and so could supply power to heavy users of clean electricity. In fact, this strategic asset could be used as a carrot to attract to our province industry looking for access to clean energy as a means of demonstrating corporate leadership and developing green branding. Ever since I got elected in 2013, I have been pointing out that British Columbia should be using its abundant clean electricity resources to attract cleantech and manufacturing industries here. And so I am very supportive of government’s intentions in this regard.

What’s more troubling is the removal of BC Hydro’s self-sufficiency provision. In reality, BC Hydro does not actually have a stringent self-sufficiency clause in place, although we used to. That’s because on February 3, 2013 the BC Liberals relaxed this clause (to protect ratepayers from hydro increases) by changing the requirement for BC Hydro to be self sufficient for average instead of critical (i.e. the most adverse sequence of stream flows occurring within the historical record) water conditions at their legacy hydro electric dams. Back in May 2019, I expanded on BC Hydro’s lack of self sufficiency in a series of questions I asked the Minister of Energy, Mines and Petroleum Resources.

Much like the BC Liberals wanted to protect ratepayers from hydro increases, the BC NDP clearly want to do the same. The removal of the rest of the self sufficiency clause would create electricity trading opportunities with the United States via the highly successful power trading arm of BC Hydro — Powerex. The US is awash with very cheap solar power that Powerex could purchase during the day and at night, when the sun isn’t shining, they could sell back hydro power from our legacy dams at a premium. The arbitrage opportunities are boundless and it is no doubt that this would a) protect ratepayers from hydro rate increases and b) bring in much needed revenue to our province.

But here’s the twist, in doing so, we will likely put the final nail in the coffin for BC’s once vibrant clean energy sector.

When the BC NDP introduced Bill 17: Clean Energy Amendment Act, 2020 on June 23, I immediately determined that it was problematic. The problem was not with the desire for BC Hydro to keep rates low or use our legacy dams like batteries (one of my very first blog posts upon getting elected was on this topic), but rather that some of the unforeseen consequences and missed opportunities had not been fully explored (see for example my question to the Minister of Energy Mines and Petroleum Resources on July 15, 2020). And so I immediately set out to work with the BC Legislative drafters to propose amendments to the Bill (reproduced below). The amendments have been sitting on the order papers since July 14 and will be moved during committee stage for Bill 17.

The amendments ensure that:

1. BC can still implement a 100% clean energy standard;
2. Burrard Thermal will be removed from the list of BC Hydro’s heritage assets;
3. BC Hydro’s self sufficiency requirement for average water conditions at their legacy hydro electric dams is retained;
4. The definition of clean electricity reverts back to the original Clean Energy Act.

Should these amendments pass, the positive aspects of Bill 17 will be retained whereas the more troubling components will be removed.

I have communicated my intention of supporting the bill at second reading to both the BC NDP and the BC Liberals. If the bill fails at second reading, I won’t get a chance to introduce my amendments during committee stage and I fear that its positive aspects will be lost. That is, the preverbial baby will be thrown out with the backwater. The onus is ultimately on my former colleagues in the BC Green Party to indicate whether or not they support the Bill as it stands, or the amended Bill as I have proposed. Under the “good faith and no surprises clause” of the Confidence and Supply Agreement Premier Horgan and I signed in 2017, the BC Greens will have to communicate their intentions to government prior to the bill being called for debate.

I look forward to the exciting opportunities for innovation that present themselves with the removal of Burrard Thermal from the list of BC Hydro’s heritage assets and the move of BC to 100% clean electricity.

Proposed Amendments to Bill 17

17   Mr. Weaver to move, in Committee of the Whole on Bill (No. 17) intituled Clean Energy Amendment Act, 2020, to amend as follows:

SECTION 1, by deleting the text shown as struck out and adding the underlined text as shown:

1 Section 1 (1) of the Clean Energy Act, S.B.C. 2010, c. 22, is amended

(a) in the definition of “acquire” by striking out “used in relation to the authority” and substituting “in sections 7, 12 and 15”,

(b) by adding the following definitions:

“clean electricity” means electricity generated from a clean or renewable resource;
         (a) generated from a clean resource, or
         (b) deemed under the regulations to be clean electricity;

“clean resource” means a prescribed resource;

“compliance period” means a prescribed period; , and

(c) by repealing the-definition of “electricity self sufficiency”, and

(d)(c) by adding the following definitions:

“grid-connected customer” means a person in British Columbia who receives service through a direct or indirect connection to the British Columbia electrical transmission grid, other than a person in the Northern Rockies Regional Municipality;

“regulated person” means
         (a) the authority,
         (b) a prescribed public utility or class of public utilities, or
         (c) a prescribed person or class of persons who deliver electricity to grid-connected customers; .

SECTION 2, by deleting the text shown as struck out and adding the underlined text as shown:

2 Section 2 is amended by adding the following paragraph:

(a) by repealing paragraphs (a) and (n), and

(b) by adding the following paragraph:

(q) to serve grid-connected customers with clean electricity.

SECTION 3, by deleting section 3.

SECTION 4, by deleting section 4.

SECTION 6, by deleting section 6.

SECTION 8, by deleting the text shown as struck out and adding the underlined text as shown:

8 Section 37 is amended by adding the following paragraphs:

(a) by adding the following paragraphs:

(a.1) for the purposes of the definition of “clean electricity” in section 1 (1), deeming electricity delivered under any of the following to be clean electricity:
         (i) a specified contract or class of contracts;
         (ii) a specified rate or class of rates;
(iii) a specified international agreement;

(a.2) a regulation made under paragraph (a.l) may prescribe that of the electricity delivered, a specified percentage is deemed to be clean electricity;

(a.3) prescribing resources for the purposes of the definition of “clean resource” in section 1 (1);

(a.4)(a.1) prescribing a period for the purposes of the definition of “compliance period” in section 1 (1);

(a.5)(a.2) prescribing public utilities, classes of public utilities, persons and classes of persons for the purposes of the definition of “regulated person” in section 1 (l);  ,

(b) in paragraph (c) by striking out “sections 6 and 13” and substituting “section 13”, and

(c) by adding the following paragraphs:

(j) prescribing requirements for the purposes of section 19.1;
(k) prescribing matters that must be addressed in a report prepared under section 19.2 (1);
(l) for the purposes of section 19.2 (2), prescribing requirements respecting the preparation, verification and submission of reports, including, without limitation, the following:
         (i) respecting the form and content of reports;
         (ii) respecting who may conduct verifications;
         (iii) respecting the conduct of verifications;
         (iv) requiring reports or statements in relation to verifications, and respecting the form and content of those reports and statements;
         (v) respecting the dates by which reports must be submitted to the minister.

SECTION 10, by deleting section 10.

SECTION 11, by adding the underlined text as shown:

11 Sections 44.1 (8) (b), 44.2 (5) (c), 46 (3.1) (c) and 71 (2.1) (c) and (2.5) (c) of the Utilities Commission Act, R.S.B.C. 1996, c. 473, are amended by striking out “sections 6 and 19 of the Clean Energy Act” and substituting “sections 6, 19 and 19.1 of the Clean Energy Act”.