Renewable Energy Policy in Canada Living on a Finite Earth: Energy Law and Policy for a New Era Journal of Environmental Law and Litigation October 10, 2008 Shi-Ling Hsu Associate Dean University of British Columbia Faculty of Law
British Columbia: 90% hydro 10% nat gas Alberta:48% coal 42% nat gas 10% wind, hydro Ontario:43% nuclear 25% coal + oil 25% hydro 7% nat gas Manitoba: 95% hydro 5% other Quebec:93% hydro 7% other
Federal Policy “ecoEnergy” production subsidies: 1¢/kwh for 10 years Projects must be commissioned by March 2011 electricity must be for sale in Canada
Registered ecoEnergy projects, by type number Capacity (MW)
Registered ecoEnergy projects, by province number Capacity (MW)
S – same tax benefits as for oil sands development, oil & gas development, Canadian Explorer Expense, Canadian Development Expense: accelerated depreciation (30%), indefinite loss carryforward non-renewable tax benefits were more than $1 B in 2000, 2001, and 2002 CRCE – deduct expenses for… feasibility studies siting survey, preparation and development costs resource assessment studies service connection costs Federal tax incentives Flow-through share agmts
BC Energy Plan (2007) Clean Power Call: submit proposals by Nov 2008, in service by 2016 Standard Buy Offer Program: small renewable projects (< 10MW) 6.9¢ to 8.4¢/kwhr Bioenergy Initiative: $25M in funding
Ontario tax incentives Standard Buy Offer Program: small renewable projects (< 10MW) 11¢/kwhr, 14.5¢/kwhr if baseload 42¢/kwhr for solar corp retail sales tax rebate for building materials corp income tax deduction for new assets capital gains tax exemption provincial sales tax rebates for residential solar
"There is a way out, and that is through a common (global) environmental tax on emissions…." Economists' Voice, July 2006 Joseph Stiglitz on Climate Change: Here are three votes for a carbon tax: Tierney, Nordhaus, and Mankiw…. What do we all have in common? None of us is planning to run for elected office. Gregory Mankiw's Blog, May, 2006 Gregory Mankiw on Climate Change: Also: Alan Greenspan, Martin Feldstein, Gary Becker…
Carbon taxes in Canada Quebec: sale of fossil fuels less than 1 cent/litre of gas British Columbia: sale of fossil fuels ≈ $9.50/ton CO 2 up to $30/ton 2.4 ¢/litre up to $7.4 ¢/litre Revenue neutrality -- $100 BC "dividend"; pers & corp income taxes, "rural aid"; low-income aid Federal Liberal Party: “Green Shift” expand 10 ¢/litre excise tax to other fossil fuels
"Green Shift": expand 10¢/litre (=$42 tonne CO 2 ) to other fossil fuels: coal, natural gas, heating oil, propane, jet fuel, etc. Revenue neutrality: lower lowest income tax rate, working income tax credit, rural/Northern relief, lower corp taxes, accelerated cost deprec for green technologies, R&D funding…
"Green Shift": expand 10¢/litre (=$42 tonne CO 2 ) to other fossil fuels: coal, natural gas, heating oil, propane, jet fuel, etc. Revenue neutrality: lower lowest income tax rate, working income tax credit, rural/Northern relief, lower corp taxes, accelerated cost deprec for green technologies, R&D funding… "Those advocating a carbon tax suggest that by making the costs for certain things more expensive, people will make different choices," Layton said. "But Canada is a cold place and heating your home really isn't a choice." "The National Energy Program was designed to screw the West and really damage the energy sector and this will do those things … But this is different. It will actually screw everybody across the country."