It's being applauded by environmentalists but is seen as a setback to the oil industry.
That's the reaction to Canada's national energy regulator saying it will allow wider discussion of greenhouse gas emission issues in upcoming hearings for the Energy East Pipeline.
"Apparently you can teach an old dog new tricks. The National Energy Board has finally listened to Canadians and agreed to study the climate impacts of Energy East, as well as whether the pipeline makes economic sense in a carbon-constrained world. This is a step in the right direction," said Patrick DeRochie of the lobby group Environmental Defence
The National Energy Board has announced the topics that will be part of its assessment of the Energy East and Eastern Mainline Projects.
Previously, the NEB only considered GHG emissions directly associated with construction and operation of a pipeline.
"The Hearing Panel noted the public’s interest in better understanding the risks associated with potential accidents and system malfunctions that may, for example, lead to an oil spill into the environment.," says an NEB news release. "As a result, the assessment will provide more visibility to the evaluation of such scenarios, their potential consequences, the proposed mitigation and response measures, as well as the preventative programs aimed at reducing or eliminating risk factors.
"In addition, the NEB will consider upstream and downstream greenhouse gas emissions (GHGs) in determining whether these projects are in the public interest. The NEB also wants to examine the potential market impacts of GHGs reduction targets embedded in laws and policies on the economic viability of the projects."
The next step leading to the Hearing Order, which will contain more details about the hearing calendar, is a comment period on the completeness of TransCanada’s applications. This will represent another early opportunity for the public to provide input in the assessment of these two major projects. An additional period to apply to participate will also be announced.
Under the National Energy Board Act, the NEB reviews applications to build and operate new pipelines and makes its recommendation based on the Canadian public interest. The public interest includes all Canadians and refers to a balance of economic, environmental and social (including health) interests.
The NEB is responsible for carrying out, for each project, an environmental assessment (EA) under the Canadian Environmental Assessment Act, 2012. An EA is a planning tool and serves to review the effects likely to be associated with a project. It also considers possible ways (mitigation) available to reduce environmental effects and an assessment of how those affects may act cumulatively with similar effects of other projects and activities in a region.
Energy East is a 4,500-kilometre pipeline proposed to carry 1.1 million barrels of crude oil per day from Alberta and Saskatchewan to refineries in Eastern Canada and a marine terminal in New Brunswick. The pipeline runs through North Bay.
Alberta's energy minister expressed disappointment in the decision and said her office would continue to review it.
"Based on our initial analysis, we believe this would be a historic overreach and have concerns about what this means for energy development across Canada," Margaret McCuaig-Boyd said in a statement Wednesday.
She said deciding the merits of a pipeline on downstream emissions "is like judging transmission lines based on how its electricity will be used."
Associated Links
Final Lists of Issues & Factors and Scopes of the Factors for the Environmental Assessment
- Regulating in the public interest
- The NEB and environmental assessment
- Energy East and Eastern Mainline Project webpage
With files from Canadian Press.
