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Davis LLP Web Logs or "Blogs" are intended to provide general comments on developments in the law. They are not intended to be a comprehensive review nor are they intended to provide legal advice. Readers should not act on information in the blogs without seeking specific advice on the particular matter. Please contact a lawyer listed on the blog pages for additional details, or to discuss how blog information is relevant to a specific situation.

Climate Change Law Practice Group Blog

» February, 2007

BC Energy Plan Calls For Two New BC Hydro Power Calls

BC Hydro has been tossing around the idea of issuing a call for power focused on 'near commercial' technologies for a while now.  Near commercial technolgies include both hydrogen fuel cell plants and tidal/wave power, two sectors which are poised to take off, but with the exception of a test project at Race Rocks, have not had an opportunity to enter into the commercial realm.

 As recent as early February, a BC Hydro spokesperson admitted that a near commercial call was still a possability, but would ultimately depend on the BC Energy Plan.  Well that plan was released today, and a the BC Government announced its intention to instruct BC Hydro to explore to new power calls. 

The first call will focus on biomass facilities that utilize waste wood, and is poised to take advantage of the millions of Bone Dry Tonnes of wastewood that are burnt in beehive stacks in BC every year without producing any power and the estimated 1 billion Bone Dry Tonnes of wastewood that will result from the Mountain Pine Beetle infestation.  Coincidentally, the BC government also stated that beehive burning is not an option on a go forward basis in their Throne Speech earlier this month.

The second call will be an open call for small (under 10MW) non-firm sources of energy.  These sources include wind, ocean (tidal and wave), run-of-the-river hydro and solar.  Prices are to be set at the same price as was offered in the most recent call for power. 

To further help near commercial technologies, the soon to be formed "Innovative Clean Energy Fund" will be used partially to help market, showcase and develop 'near commercial' renewable technologies and commercial renewable technologies that have the potenital to be exported abroad.  As for the wood matter call, a new Bioenergy Strategy will be implemented to help develop the bioenergy market.  This initative should also benefit the development of bioenergy from other sources such as agricultural crop residue, organic municipal waste and animal manure.

As always, we will keep on top of these developments on this blog as more details on the Calls for power or any other 'enabling' legislation is released.

Posted Tue, 27 February 2007 15:53:00 EST

How Much Tax Relief Is That?

For those of you curious as to the exact details on the tax exemption relating to wind power, the 2007 Budget will be providing an exemption to wind power similar to the exemption provided in 2005 for elgible hydroelectric power projects.  This means the value of the wind energy towers and the bases will not be included in the property value when calculating school taxes under theSchool Act.  We will post a link to the regulations once they have been published.

Posted Tue, 20 February 2007 18:45:00 EST

Wait For 2008

The 2007 BC Budget has just been introduced to the Legislative Assembly and the Throne Speech is acknowledged.  But if you were hoping for funds on climate change initiatives to appear in this document you will be disappointed.

In all $103 million was marked for environmental initiatives.  This funding will be for
extending the tax rebate on hybrid vehicles;purchasing 20 new hydrogen buses;exempting wind power from the school property tax;extending tax relief to all bio-diesel fuels;the creation of an environmental secretariat;establishing the new Green City Awards; andproviding $38 million over four years for LocalMotiongrants to encourage and reward green initiatives.
So where is the follow up to last week's Throne Speech?  In the 2008 Budget.  In particular, it was noted that "next year's budget will build on these improvements, and directly support theclimate change plans that will be developed in the coming year."  Hopefully it will be a busy year of consultation and policy development to focus the creative and entrepreneurial efforts of this Province on finding ways to reach the ambitious goals announced last week.  As promised, we here at Davis will be keeping you up to date on forthcoming changes, so stay tuned.

Posted Tue, 20 February 2007 18:14:00 EST

Government Commits To Renewable Energy And Combatting Global Warming

The British Columbia government made a series of dramatic commitments to renewable energy and sustainable development in its 2007 Throne Speech. 
The government dedicated roughly half of the Throne Speech to articulating a series of commitments to combating global warming and climate change, including the following pledges on energy 
·                   Net zero greenhouse gas emissions by 2016 for all new and existing electricity production
·                   90% of all electricity to come from clean, renewable resources
·                   100% carbon sequestration of any coal-fired electricity production facility
·                   Consider all forms of clean, alternative energy to meet energy needs, specifically bioenergy, geothermal, tidal, run of river, solar, wind power, wood chips and wood waste
·                   Make BC a net exporter of clean electricity
·                   Establish a $25 million Innovative Clean Energy Fund to encourage the commercialization of alternative energy solutions
·                   Require methane capture from landfills
·                   Seek new technologies to reduce energy losses in transmission
·                   Facilitate growth and development of local companies providing renewable energy and sustainable development technologies and solutions
These commitments were made as part of the government's overall goal of reducing British Columbia's greenhouse gas emissions by at least 33 percent below current levels by 2020. Other specific commitments included making the government carbon-neutral by 2010, developing a carbon-trading system, phasing in new car tailpipe emissions standards by 2016 to match California's, establishing a hydrogen highway from Whistler to Greater Vancouver and seeking to extend it to San Diego, extending existing tax incentives to encourage the switch to hybrid cars and alternative fuels, and implementing several measures to encourage personal conservation.  
The government has indicated that it intends to bring forth new legislation and regulations to accomplish these goals, but little specific information is yet available. We expect to see a series of measures announced over the next year that will incorporate a blend of new legislation and regulations, tax incentives and similar inducements, and the occasional commitment to new targeted investments and funding. 
Tomorrow's provincial budget offers the government its first opportunity to begin rolling out its implementation strategy, and it has another opportunity this spring with the scheduled release of its new energy policy. However, the government pledged in the Throne Speech to establish a Climate Action Team to formulate targets and measures for achieving the government's central commitments, and it may choose to wait until after that committee has reported back before unveiling its core implementation measures. 
The Throne Speech text is available at http://www.leg.bc.ca/38th3rd/Throne_Speech_2007.pdf .
Stay tuned to this blog for reporting and analysis as more information becomes available and draft legislation and regulations are released. 

Posted Mon, 19 February 2007 14:07:00 EST

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