Yesterday in the legislature I had the opportunity to rise in Question Period to question government about the dubious economic justifications underpinning Alberta and Federal rhetoric supporting the Trans Mountain pipeline.

Below I reproduce the video and text of the exchange with the Minister of the Environment.

Video of Exchange

Question

A. Weaver: The federal and Alberta governments, not to mention the B.C. Liberals, with their alternate facts, hysterical rhetoric and revisionist history, have been fearmongering about the risks to our economy if the Trans Mountain expansion doesn’t go ahead.

Mr. Speaker: Member, if I may stop you for a moment. If you could ensure that your question does not refer to the opposition, since it’s supposed to be directed to the government member.

A. Weaver: That’s fair enough, hon. Speaker. I’ll make sure it doesn’t refer to the members opposite. I assume, hon. Speaker, that this will also be applied to when we’re referred to in their questions, because it’s been multiple times over the time that we’ve had here that they’ve referred to us. I look forward to that. Thank you.

Interjections.

Mr. Speaker: Members.

A. Weaver: But it’s been reported that governments are actually basing economic claims on an analysis commissioned by Kinder Morgan itself. Experts are raising significant questions about this analysis, whether it’s because of changes in market conditions, flawed methodology or erroneous assumptions about how the oil markets function. Some raise serious doubts about the argument that we could fetch a higher price for our oil in Asia than in the U.S. One expert called this argument “kind of bogus.”

Add to this the fact that the price of oil has collapsed. In making its business case, Kinder Morgan assumed a price of $100 to $150 per barrel, and prices are now $60 per barrel.

My question is to the Deputy Premier and Minister of Finance, who I understand has laryngitis, so I will pose this question to the Minister of Environment. We’ve heard this government talk about the risk of a spill to our environment. But what is their position on the questionable claims made about the economic benefits of this pipeline?

Answer

Hon. G. Heyman: Thank you to the Leader of the Third Party for the question and raising these issues in the Legislature. Certainly, I’m aware of the difference in the market price of oil. I’m aware of questions that have been raised about the economics of the project as, I suspect, are most members of the House. However, with respect to those questions, that is not the primary concern of our government, nor is it the responsibility of our government to determine the economics of a project which we have neither initiated nor sought.

What is our job, however, is to ensure that we do everything we can to protect British Columbia’s economy, the tens of thousands of jobs in tourism, in film and television, in the seafood sector, and the billions in economic development that stand with it, all of which could be at risk from a single spill of diluted bitumen. We believe that we must defend B.C.’s economy. We must defend our interest. We must defend our environment.

We understand it’s a federal project — federally regulated — a project in terms of allowing it. We understand also that the constitution has a clear role for provinces in permitting, in conditions and in regulating against negative impacts that are a concern and a detriment to our province.

Supplementary Question

A. Weaver: The economic conditions have indeed changed significantly since Kinder Morgan was approved. We’ve seen oil prices crater due to world market changes. We face huge uncertainty about future prices due to new supply and to massive technological shifts, as markets around the world embrace renewable technology. Energy experts say it’s basically now impossible to predict future prices.

The analysis that Kinder Morgan relied upon in its application to the NEB and its claims of the economic benefits to Canada from this pipeline fundamentally assumed that there was no other export capacity that would be built.

Since then, Keystone XL and line 3 have now been approved, which add over one million barrels a day of export capacity. We now have more capacity than we need. In light of the trends, it’s absolutely shocking that our federal government is willing to put taxpayer money behind this pipeline.

My question, again — through you, through the Deputy Premier and Minister of Finance, who has laryngitis, to the Minister of Environment — is this: will this government demand that the federal government and the government of Alberta publicly release their economic case justifying their rhetorical assertions as to the economics of the Trans Mountain Pipeline and its fundamental business case for national security and national importance?

Answer

Hon. G. Heyman: While it isn’t the job of the province of British Columbia, specifically, to make demands of the federal government with respect to business cases, when the federal government or the government of Alberta proposes putting public money into a project, I think they’d be well advised to listen to the advice of the Premier of British Columbia, who said: “Our focus, and we think every province and every government in Canada’s focus, should be on adding value to our resources and creating the most jobs possible for resources.”

That’s what we’re trying to do here in British Columbia. We’re trying to get the most value from our resources to give the most value to British Columbians, who want jobs, rather than profits to corporations headquartered outside of this province.

We will continue to take every step that we’re allowed under the constitution to protect tens of thousands of jobs and to protect our tourism industry, our seafood industry, our film industry — the billions of dollars in GDP — from the tremendous threat of a catastrophic oil spill that could be caused by a pipeline rupture. It could be caused by a train derailment. And it could be caused by a seven-fold increase in tanker traffic off our shores.

Today I was afforded the opportunity to address delegates at the 69^th annual convention of the Association of Vancouver Island and Coastal Communities. As noted on their website:

“The Association of Vancouver Island and Coastal Communities (AVICC) is the longest established area association under the umbrella of the Union of BC Municipalities (UBCM). The area association was established in 1950. It now has a membership of 53 municipalities and regional districts that stretches from the North Coast Regional District down to the tip of Vancouver Island and includes Powell River, the Sunshine Coast, the Central Coast and the North Coast. The Association deals with issues and concerns that affect large urban areas to small rural communities.“

Below I reproduce the text of my speech.

Text of Speech

I am delighted to be here this morning with all of you – and I think we share an essential trait as politicians, even if we are not always aligned in policy or vision.

Each of you, I expect, can identify the issue or the passion that motivated you to run for local government. It may have been an environmental issue, as it was for my colleague Sonia Furstenau, or it may have been a desire to see a project in your community to move forward.

And it is passionate leadership at the local government level that sees so much positive change come forward in our province.

Look at the Town of Gibsons – the first in North America to pass a natural asset management policy, showing extraordinary leadership in recognizing the indisputable logic of including natural assets in financial planning.

In Cowichan there is the Cowichan Watershed Board, laying the foundation for watershed co-governance with First Nations, and taking tangible, necessary steps toward reconciliation in the process.

Recognizing that healthy and happy communities – as Charles Montgomery so eloquently points out – have social connection and collaboration in their fibre, Oceanside and Mt. Waddington’s Health Networks are models for bringing people together to create long-term positive health outcomes.

It was my own commitment to action on climate that motivated me to run for MLA in 2013, after I had seen our province go from a climate leader under Gordon Campbell to a climate laggard under Christy Clark.

As a climate scientist, I had long encouraged my students to engage with decision makers – or become decision-makers themselves – if they wanted to see politicians take action on climate. I realized that I too had a responsibility to participate in the building of political will to act on climate – not as a voice of doom, but as a voice for the extraordinary possibility and opportunities that lie before us in this challenging time.

So much of the conversation around climate and the transition away from a fossil-fuel economy is backward-looking, focusing on the economy of the 20th-century.

Look at the hysteria and rhetoric around the kinder morgan expansion – the shocking doubling-down on a pipeline that would export heavy oil – diluted bitumen – out of Vancouver. In every way, this is the wrong direction for our economy, our environment, our relationship with First Nations, and our climate.

Now take the potential that lies in new technology and innovation. Shell has recently announced that it has the technology to extract vanadium from bitumen, and use the vanadium to build steel that can be used to manufacture battery cells that have the capacity to store energy.

Consider that potential! Rather than dumping yet another raw resource as quickly as we can into foreign markets that reap the rewards of jobs and revenue as they process it into a usable and far more valuable commodity, we could be looking at using this resource to develop and support steel manufacturing, innovative energy storage technology, and the renewable energy sector.

We could massively increase the return to our citizens and our economy, and we could be actively building the future energy systems that will sustain our children and grandchildren.

We sell ourselves short by looking backwards – when transformation and innovation are happening more and more rapidly, it is the worst possible time for us as a province or a nation to double down on the ever decreasing returns in a race to the bottom of early 20th-century economics.

And it’s smaller communities – like the ones that many of you represent – that could benefit immensely from the emerging economy that’s rooted in education and driven by innovation and technology.

Consider the potential of Terrace as a centre for manufacturing – we as a province should be reaching out to Elon Musk and encouraging him to see the potential benefits of a Tesla plant or battery manufacturing plant in Terrace, where shipments to Asia are easily accessible through Prince Rupert’s port, and shipments to Chicago are at the end of a rail line that runs straight through Terrace.

Here on the island, Victoria has already earned the moniker “Techtoria” – and the Cowichan Valley is situated perfectly to be the next destination region for an industry that is growing by leaps and bounds.

BC’s own digital technology supercluster was recently awarded $1.4 billion in federal funding – an investment that is expected to produce 50,000 jobs and add $15 billion to BC’s economy over the next ten years.

And the work being done will make the lives of British Columbians better – including creating a health and genetic platform that will allow medical specialists to create custom, leading-edge cancer treatments that are personalized to the unique genetic makeup of each patient.

This work – hi-tech innovation, research, education – this work can happen anywhere in our increasingly connected world. It’s the connectivity highways that we should be investing in – these will allow all communities to reap the rewards of the 21st-century economy.
At a reception for the BC Tech Association last week, I met Stacie Wallin. Her job is to nurture tech companies that have hit the 1 million dollar level in revenue to scale up to the 25 million dollar level.

And she is so busy that she has nearly a dozen people working with her to keep up with the work that’s coming her way. When pipelines and LNG plants crowd out our conversations about BC’s and Canada’s economy, we miss what’s actually happening – the exciting, innovative, emerging economy that is reshaping our communities.

And there’s so much more. The film industry, tourism, education, professional services, value-added forestry, innovation in mining, renewable energy – our potential in this beautiful province is as boundless as our stunning scenery – and squandering time and energy to prop up sunset industries is the wrong place to be putting our precious efforts and money.
And if governments double down on 20th-century carbon-based economics, it’s your communities that feel the impacts and pay the prices.

Floods, droughts, wildfires, damage from increasingly punishing storms, sea level rise & storm sureges – all of these cost your communities, and your citizens, more and more money.

Communities are hit with the costs of building infrastructure to prevent flooding during the melt season, at the same time as having to determine how to deal with depleted aquifers that won’t be able to sustain the residents who depend on them for drinking water, and another drought this summer will once again put Vancouver Island at severe risk for wildfires.

The impacts of climate change will continue to put severe pressures on all our communities – which is why it’s utterly irresponsible for our provincial government to be considering a 6 billion dollar subsidy of the LNG industry – including letting LNG Canada off the hook for paying their fair share of carbon pricing.

Consider that fact alone – that the potential single greatest emitter of greenhouse gases in BC would only ever have to pay $30/tonne for its carbon pollution, while the rest of us, including industry, will see carbon pricing rise by $5/tonne each year.

This is an unacceptable logic, and one that we can’t possibly support – and I urge you, as the elected representatives who will be seeing the costs and consequences of climate change in your communities – I urge you to also encourage this government to recognize that giving massive tax breaks to the LNG industry because it isn’t economically viable is not the direction BC should be heading right now.

Consider an alternative. Why not invest in the Squamish Clean Technology Association (SCTA) created to seek out leading edge ventures that will help create an innovation hub focused on clean energy. We could attract the best and brightest minds to come to BC to figure out how to harness the renewable energy that abounds in our province while encouraging the innovation that our world needs most right now.

In response to a question from the audience on Friday about how to get municipal staff to think beyond their standard frames of reference, I understand that Charles Montgomery pointed to new models for civic design, and suggested that politicians may need to “drag them kicking and screaming” into the 21st century.

This also applies to many of our provincial and federal representatives, who may say that they recognize our need to transition to the new economy, but then try to convince us that the way to reduce greenhouse gas emissions … is to increase greenhouse gas emissions.

Doubling down with doublespeak – let’s not let this become a new Canadian tradition.

We need our provincial and federal politics to reflect the best of what we see at the local government level.
Informed discussion and debate, listening to people who present differing opinions, allowing for compromise as a path forward, working from a place of shared values and finding solutions that best reflect those values.

And while it may not always feel this way at your council and board tables, the reality is that your level of government is one that is generally far less driven by partisanship and ideology.

We have an extraordinary opportunity to bring our electoral system into the 21st century in BC with the referendum that is happening this fall. And while there will be many discussions on both sides of this debate over the next several months, it’s essential to begin with what are we trying to solve with electoral reform in BC.

Currently, under First Past the Post, elections are geared towards a “winner take all” outcome. And that winner almost never has the support of the majority of the voters.

40% is often the magic number.

40% of the popular vote in BC can generally deliver to one party a majority of seats in the legislature, and 100% of the power for 4 years.

Informed discussion and debate, listening to differing opinions, compromise, collaboration, finding common ground based on shared values – that’s completely unnecessary when your party has enough votes to ram through any legislation and any agenda you like.

Compare this to almost any other human endeavour, where collaboration, cooperation, and respect deliver the outcomes that have moved us forward throughout history.

Yes – let’s compete to bring forward the best ideas, the boldest visions – but let’s not make competition the only value that underpins politics.

Charles Montgomery points out that the infrastructure of our cities and our communities can be a source for unhappiness, through creating mistrust, a sense of disconnect, and a lack of sociability.

It seems that our political infrastructure – and in particular a first past the post system that delivers 100% of the power with a minority of the votes – can also create mistrust, lack of sociability, and unhappiness. In our winner take all system, inflicting knock out blows to the other side becomes a normal part of our politics – but how much does this damage our governance?
How many good ideas, brought forward by opposition MLAs or MPs have died sad deaths on the order papers under a majority government that can’t be seen to work across party lines?

Electoral reform – particularly electoral reform that would bring in a form of proportional representation – would deliver more minority governments to BC.

And some may try to convince you that’s a terrible thing – but I ask, is working across party lines a terrible thing? Is collaboration on policies and legislation a terrible thing? Is having more minds engaged on solving problems a terrible thing?
Or could this change in our electoral infrastructure actually bring us politics that contribute to more sociability – the one factor that Charles Montgomery said was paramount to our happiness.

Premier Horgan mentioned in his address that there has been conflict between our two parties.

There has indeed – and the media will always focus on these points of tension – but if you look at how much legislation was passed in the fall, how many initiatives have moved forward over the past nine months and then consider the ratio of collaboration to conflict, you’ll recognize that – much like at your own council tables – when you work from a place of shared values, it’s possible to almost always find a path forward.

Our current electoral model has its origins in the Middle Ages, and it has undergone significant change over the centuries.
It was only 100 years ago that women were given the right to vote in BC, and as we discuss and debate extending that right to 16 and 17 year olds, let us remember that the world around us changes continuously, and it’s up to us to ensure our institutions – particularly our democratic institutions – adapt to meet the needs of our society.

Happy cities, happy communities, happy politics. Let’s dream big.

Thank you.

Today we issued a press release (reproduced below) calling out the political rhetoric surrounding the ongoing debate about the Trans Mountain pipeline.

Earlier in the day I did an interview with Stephen Quinn on CBC Radio’s Early Edition show. In that I expand upon some of the rhetoric emanating from Ottawa.

I also participated on CTV’s Powerplay with Don Martin and was interviewed by Vassy Kapelos well as  CBC’s Power and Politics (below).

Media Release

Truth and facts must prevail in Trans Mountain discussion: Weaver
For immediate release
April 10, 2018

VICTORIA, B.C. – Andrew Weaver, leader of the B.C. Green Party, is calling for politicians to hold themselves to a higher standard of facts and evidence in discussions around the Trans Mountain pipeline.

“There is an inordinate amount of fear-mongering going on in the political climate surrounding Trans Mountain,” said Weaver.

“In 2018 in this country, our commitment to facts and the truth is more important than ever.

“Today in the House, the MLAs for Abbotsford West and Chilliwack-Hope implied that their communities are at risk due to bitumen shipments by rail, stoking fears that a Lac-Mégantic-style disaster could befall them if the Trans Mountain pipeline does not go through. This is patently false – the truth is that the train in the Lac-Mégantic tragedy was loaded with highly combustible Bakken crude, not heated bitumen or undiluted heavy crude.

“The risk of Trans Mountain lies in the way diluted bitumen behaves in an ocean spill. Studies using suspended particulate matter, which characterizes the water off B.C.’s coast, suggest that bitumen would in fact either form tar balls or sink. There is not sufficient scientific evidence on whether such a spill could be cleaned up.

“In Alberta, Ms. Notley is engaging in her own fear-mongering by alleging this amounts to a ‘constitutional crisis’. It is irresponsible to be throwing such inflammatory terms around when B.C. is simply trying to consult with British Columbians and to seek scientific evidence about a substance that poses a significant risk to our communities and to our economy.

“The Prime Minister acknowledged that the NEB process that led to this project’s approval was flawed, and promised to subject it to a revised environmental assessment process. As an intervener in those NEB hearings, I know that they were woefully inadequate in terms of facts and evidence. For instance, the spill response was predicated on calm conditions and 20 hours’ worth of sunlight in a single day. This is unacceptable and ample evidence suggests that Mr. Trudeau and Ms. Notley’s attempt to strong arm B.C. into rolling over for this project is because of politics, not evidence.”

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Media contact
Jillian Oliver, Press Secretary
+1 778-650-0597 | jillian.oliver@leg.bc.ca

After a three week break, the 3^rd session of the 41^st parliament resumed today. In question period I quizzed the Premier as to how he could argue that British Columbia would meet its legislated greenhouse gas reduction targets while at the same time developing an LNG industry.

In late February I wrote an extended essay detailing the desperate, fiscally-irresponsible steps that the BC Liberals and subsequently the BC NDP have taken in an attempt to entice major LNG players to BC.

Below I reproduce the video and text of our exchange.

Video of Exchange

Question

A. Weaver: Government has committed to reducing greenhouse gas emissions by 40 percent from 2007 levels by 2030 and 80 percent from 2007 levels by 2050. This is why the government’s continued desperate push for LNG is so problematic.

LNG Canada’s proposed four-train LNG facility would add eight to ten megatonnes of carbon-dioxide-equivalent. That’s more than 50 percent of all of British Columbia’s present industrial emissions. And they’d add that to B.C.’s total emissions.

Our targets are such that by 2050, British Columbia can emit only 12.9 megatonnes of carbon-dioxide-equivalent. And at about 9.6 megatonnes, LNG Canada would yield the single largest source of those emissions. That’s three-quarters of all of British Columbia’s allowable emissions in just one LNG facility.

My question is to the Minister of Environment and Climate Change Strategy. How is it possible for British Columbia to meet its greenhouse gas reduction targets in light of these numbers?

Answer

Hon. J. Horgan: I thank the Leader of the Third Party for his question. I know his passion for climate action and his reason for being in this House is that very issue.

I’m committed, as I said during the election campaign and as I’ve said since forming the government…. We are going to put in place targets by 2030 to see our emissions go down by the 40 percent from what they were in 2007. I’m committed to doing that.

But at the same time, when investors come calling with proposals, it’s appropriate that we talk to them. It’s appropriate that we look at the fiscal framework and we put in place the terms of engagement.

That’s why I’ve said to the LNG community: “If you’re going to employ British Columbians, there’s going to be a fair return to B.C. for access to our resource. You’re going to work with Indigenous people in partnership” — and the member for Skeena can talk to us about that — “And if you’re going to ensure that you assist us in getting to our greenhouse gas objectives, we welcome that investment.”

Supplementary Question

A. Weaver: I do appreciate the response from the Premier. Nevertheless, it seems to me that rhetoric here in B.C. is not dissimilar from what we’re hearing nationally. On the one hand, Prime Minister Trudeau claims we need to build new pipelines and increase oils sands production multifold in order to reduce greenhouse gas emissions. Our government thinks we need to increase industrial emissions by 50 percent in order to meet greenhouse gas reduction targets.

Look, LNG Canada would not build a new LNG facility today just to tear it down tomorrow. A facility will be built to be around for decades to come. That means that for all other aspects of the British Columbia economy, emissions would have to drop by 52 percent by 2030 and — get this — 95 percent by 2050. Government is essentially saying that this one LNG plant and these 200 jobs are more important than everything else in our economy.

My question to the Premier is this. Is he prepared to tell Rio Tinto Alcan, Teck, Lafarge, Canfor, Catalyst and even the Greater Vancouver Sewerage and Drainage District that they all have to shut down because British Columbia’s emission budget is all but used up by that one LNG Canada facility?

Answer

Hon. J. Horgan: Well we have no final investment decision by anyone when it comes to developing liquefied natural gas, and the members on that side will know that full well, because they promised dozens and dozens of them and none of them materialised.

I don’t want to be glib with the member’s question, because he’s absolutely correct. If we’re going to meet the targets that we have set as a Legislature — or will be codified by the Legislature in the days, weeks and months ahead — we’re going to have to have the hard discussion with all members of society, not just the industrial sector but our families, our communities. Everyone’s going to have to weigh in and do their part to reduce emissions.

This is the challenge of our generation. I’m not telling the member anything he doesn’t already know. I’m committed, as the leader of this government, to realize those objectives, and I’m going to continue to fight for that.

The BC government today outlined its proposed regulatory framework for LNG proponents such as LNG Canada. In particular, the BC government sent a letter on Monday to Mr. Andy Calitz, CEO of LNG Canada, providing specific details. While the BC Green Caucus has not seen a copy of the letter that the BC Government sent, we were consulted on the government’s high level policy objectives as outlined in their media briefing and release today.

Given that the BC Green caucus believes in the importance of giving industry certainty as to our positions and intentions, we also sent Mr. Calitz a letter that is reproduced in text form below. In our letter we are very clear that:

1. The B.C. Green Caucus does not, and will not, support exempting new LNG companies from carbon tax increases as this defeats the purpose of the carbon pricing.
2. Extending the carbon tax to fugitive emissions is a core component of our confidence and supply agreement with the BC NDP.
3. The confidence and supply agreement requires government to implement a climate action strategy to meet B.C.’s legislated emissions reduction targets of not less than 40% below 2007 levels by 2030 and 80% below 2007 level by 2050

Our firm position is that it is incumbent upon government to assess the LNG Canada project through the lens of meeting these greenhouse gas reduction targets and specifically identify a pathway to meet them. This should be done in a manner that protects existing industries that provide jobs and economic activity that British Columbians rely on.

As it stands, and despite being in office for 8 months, the BC Government still has not identified any concrete measures to reduce greenhouse gas emissions. As I pointed out in February, it is not possible to on the one hand claim you have a plan to meet our targets and then on the other hand start promoting the expansion of LNG.

As noted in the essay I wrote, in 2016, British Columbia actually lost $383 million from exploration and development of our resource. That’s because the tax credits earned exceeded the sum of the income received from net royalties and rights tenders combined. In the fiscal year ending March 31, 2017, British Columbia earned total revenue of only $3.7 million, a 99.9% drop from 2010 (BC earned 1000 times more revenue in 2010 from natural gas than we did in the last fiscal year).

It makes no sense to continue the generational sellout and further extend the government handout to a hypothetical LNG industry by offering ratepayer-subsidized electricity (read Site C) of 5.4 ¢/kWh (less than half what you or I pay and less than half of what it will cost to produce the electricity from Site C). It makes no sense to exempt LNG companies from being required to use electric drives for compression of natural gas to achieve this discounted electricity rate.

And in addition, expectations are that the federal government would further exempt LNG Canada from tariffs on fabricated steel imports. This would ensure that most of the infrastructure would be built in Asia and shipped to BC. At the same time, the BC Government will exempt LNG proponents from the Provincial Sales Tax (PST) for construction. So much for the multi-billion dollar investment, revenue and job creator for British Columbia.

Finally, it remains to be seen if LNG demand will increase in light of the fact that Japan, the world’s largest LNG importer, is restarting nuclear reactors that were shutdown following the Fukushima incident. In fact, just this week a major Japanese electric power company is putting its LNG contracts up for sale.

In the ongoing saga of British Columbia’s desperate attempt to land a positive final investment decision from a major LNG proponent, the generational sellout continues. In a typical race-for-the-bottom fashion, the BC NDP are proposing still further subsidies to LNG proponents.

While I appreciate the Premier’s commitment to putting in place a plan to reduce emissions to 40% below 2007 levels by 2030 and 80% below 2007 levels by 2050 and to put a price on fugitive emissions, I cannot see how this is possible if the LNG Canada proposal goes ahead. It would require every aspect of our BC economy (except LNG Canada) to collectively cut emissions by more than half in twelve years and by 95% by 2050.

As outlined in our media release below, there are significant opportunities to grow B.C.’s economy while meeting our climate targets that do not include LNG. For instance, the supercluster funding announced last month is expected to generate 50,000 jobs and $15 billion in economic activity in B.C. in the next 10 years.

In summary, the BC Green Caucus will not support any legislation brought forward to grant the exemptions outlined above.

Media Release

B.C. Green Caucus releases letter to LNG Canada clarifying position on government’s LNG approach
For immediate release
March 22, 2018

VICTORIA, B.C. – The B.C. Green Caucus released a letter sent to LNG Canada clarifying the Caucus’ position on the government’s proposed LNG regulations. The letter, sent on Monday March 19, came after the Caucus was was made aware of the the details of the government’s proposed LNG regime. The letter is intended to give industry maximum clarity, as the minority government requires the B.C. Green Caucus’ votes for general stability and to pass legislation.

“There are significant opportunities to grow B.C.’s economy while meeting our climate targets,” said Andrew Weaver, leader of the B.C. Green Party. “For instance, the supercluster funding announced last month is expected to generate 50,000 jobs and $15 billion in economic activity in B.C. in the next 10 years. Future development must fit within our climate targets, and the numbers on LNG simply don’t add up.”

The B.C. Green Caucus does not support extending the proposed measures to support existing Emissions Intensive Trade Exposed (EITE) industries as currently conceived to prospective LNG companies – a policy that would in effect freeze the carbon tax at $30/tonne for certain facilities. CASA commits government to extend the carbon tax to fugitive emissions, and the Caucus expects that this will include the natural gas industry. Further, the Caucus is concerned that increasing B.C.’s emissions through LNG developments will place an undue burden on existing industries and the public to reduce their emissions beyond what is already required.

“Not only is a plan to meet our climate commitments a core component of our Confidence and Supply Agreement (CASA) which forms the stability of this government, it is essential for ensuring we do not betray our duty to future generations.” Weaver continued. “When it became clear that the government intended to propose measures that are incompatible with B.C.’s ability to meet our climate targets, we felt it was our responsibility to communicate to LNG Canada that if these measures were to go ahead unamended, we would no longer have confidence in government.

“To be clear – our Caucus is fully committed to working in partnership with the B.C. NDP government to enact a plan to meet our climate targets and in attracting the investments we need to build a 21st century economy. We will continue to hold this government to account on all its promises, including our responsibility to the next generation and our international commitments to act on climate change.”

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Media contact
Jillian Oliver, Press Secretary
+1 778-650-0597 | jillian.oliver@leg.bc.ca

Text of BC Green Caucus Letter

Mr. Andy Calitz
CEO, LNG Canada

March 16, 2018

Dear Mr. Calitz,

We are writing regarding your ongoing discussions with the Government of British Columbia on your proposed project, LNG Canada in Kitimat, B.C.

As you know, British Columbia currently has a minority government, where the votes of our three caucus members provide confidence in Premier Horgan’s NDP government. The basis of our confidence is the Confidence and Supply Agreement (“CASA”) signed May 30, 2017 which binds our two caucuses to act on the principle of “good faith and no surprises.” As such, the government must consult with our caucus on all matters, and it must uphold the agreed-upon policies and initiatives enshrined in it. Our caucus has been consulted on the letter sent from the government to LNG Canada. We are writing to let you know our position on the government’s proposal in order to provide you with the fullest possible scope of information.

First, extending the carbon tax to fugitive emissions is a core component of CASA. We have assurances from the government that this extension is forthcoming pending a determination of the necessary technologies and regulations to measure them. To be clear, it is our expectation that the carbon tax on fugitive emissions will be extended to all sources of these emissions. This will have impacts on a number of industries and future proposed projects, including yours.

Second, CASA requires government to implement a climate action strategy to meet B.C.’s legislated emissions reduction targets. Therefore, all future development must fit within our province’s commitment to the Pan-Canadian Climate framework to meet our emissions reduction targets, as well as soon to be legislated targets for British Columbia specifically. As such, it is incumbent upon government to assess your project through this lens and to specifically identify how it will accomplish the emission reductions required to meet our targets of not less than 40% below 2007 levels by 2030 and 80% below 2007 level by 2050. This must be done in a way that limits harm to other existing industries that provide jobs and economic activity that British Columbians rely on.

Finally, CASA commits government to implement an increase of the carbon tax by $5 per tonne per year beginning April 1, 2018. Our intention was to ensure that across the entire economy a clear market signal was sent that incentivized low GHG producing activity, as well as spurred innovation and investment in the new economy. We were made aware over the course of our consultations with government that the proposed measures to support Emissions Intensive Trade Exposed (EITE) industries would be extended to LNG as well. These measures would have the effect of rebating up to 100% of the carbon tax that was paid beyond the $30 per tonne, based on how the greenhouse gas production intensity compares to the global cleanest benchmark.

While our caucus is supportive of these measures for the many existing industries in B.C. that already provide jobs and economic activity for our province – many of whom made their investment decisions in a previous regulatory environment – our caucus does not support extending the EITE as currently conceived to a proposed LNG industry.

If such a measure goes forward without amendment we do not see how a climate action plan, as agreed to in CASA, would have any legitimate pathway forward to reach our GHG reduction targets. As such, our caucus would no longer have confidence in government, as they would not be living up to their commitments laid out in CASA.

We believe that British Columbia must make its GHG reduction targets and climate action plan the centerpiece of its economic strategy. Our focus must be on prioritizing innovation within our economy and seeing new investments that ensure we are leaving the next generation with real opportunities to prosper. We are deeply encouraged that the companies engaged in your joint venture are investing heavily in renewable energy and other clean technologies. B.C. has a highly educated workforce, world-class research institutions and a wide range of innovative companies. We would welcome the opportunity to work with you in a manner that builds on these opportunities while helping us meet B.C.’s GHG reduction targets, as committed to under the Paris Climate Accord.

We would be happy to discuss our position in detail with you.

Sincerely,
Andrew Weaver
MLA, Oak Bay Gordon Head and Leader, B.C. Green Party

Sonia Furstenau
MLA, Cowichan Valley and Deputy Leader, B.C. Green Party

Adam Olsen,
MLA, Saanich North and the Islands