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Issue Category: Issue 1, 2023

  • CAMPUT’s new executive director up to the challenge

    CAMPUT’s new executive director up to the challenge

    On September 26th 2022, CAMPUT announced the appointment of a new executive director. A professional accountant with broad experience in leadership, strategic direction and stakeholder relations, Jocelyn Fraser officially assumed the position on December 1st.

    She comes well-qualified for what will be a challenging job. Following an early career in public accounting practice, “I was introduced to the regulatory and energy world through the Nova Scotia Utility and Review Board,” she says. During nearly ten years there as Director of Risk and Financial Advisory Services, “I was focused primarily on utility regulation but volunteered extensively within the CAMPUT network including teaching at CAMPUT’s Energy Regulation Course.”

    Jocelyn Fraser, CPA, CA, Executive Director, CAMPUT

    As stated on its website, CAMPUT’s mission is “to continuously improve energy and public utility regulation in Canada.”

    Perhaps not a household name, CAMPUT and its predecessor organizations have long been an integral part of the evolving Canadian utilities regulation scene. They go back to the early 1960s, when members of the Canadian Association of Utility Commissioners met annually to discuss matters of common regulatory concern and interest.

    As its purview expanded, in April 1976 that association was reorganized and CAMPUT was born. Formally established as an acronym for the Canadian Association of Members of Public Utility Tribunals, its objective was to promote the quality of public utility regulation in Canada by providing a forum for the exchange of information and views among its members. Founding members hosted annual general meetings in their respective jurisdictions.

    CAMPUT continued to grow in size and prominence. In 2011 it adopted as its moniker just the acronym CAMPUT. Full membership eligibility was expanded to “any Canadian tribunal, board, commission or agency responsible for the economic regulation of one or more utilities in its province, territory or jurisdiction, as well as to any Canadian energy tribunal, board, commission or agency that makes binding decisions through adjudicative or quasi-judicial processes.”

    “With Canada’s energy future facing reorganization and transition towards an affordable and sustainable net-zero future, regulators adopt an important new vision: balancing newly-defined environmental issues with traditional consumer protection responsibilities.”

    And now CAMPUT continues its evolution taking on fresh challenges. With Canada’s energy future facing reorganization and transition towards an affordable and sustainable net-zero future, regulators adopt an important new vision: balancing newly-defined environmental issues with traditional consumer protection responsibilities.

    At CAMPUT, Fraser knows these responsibilities will be challenging but she’s ready. “I was pulled back to the energy world by my wonderful network of peers,” she says. “But what enticed me was my passion for problem solving and the opportunity to support collaboration in this industry to help overcome barriers and focus on long term successful energy transition and security. Many years ago, I was described by a one of my peers as a ‘Triple A’ personality. I have always spun [that] as Authentic, Approachable and Adaptable.”

    The CAMPUT 2023 conference in May 2023, added another couple of ‘A’s which aptly describe the challenges facing Fraser and the regulations industry in Canada. The conference themed Ambitious & Agile: New Regulatory Pathways for a Just Energy Transition. The program focus was summed up as, “The pace of the energy transition is accelerating, and along with other energy stakeholders, regulators need to be decisive and agile to respond to changing expectations…we challenge conventional wisdom regarding the role of energy regulators and explore bold and innovative ideas about how we can adapt and develop new pathways to a just energy transition.”

    Clearly this demonstrates that the regulators’ role in Canada’s energy transition is not yet well-defined and there are important topics needing serious discussion. For example, accelerating innovation. “Innovation is often described as a critical component of the energy transition,” the program states. “Do regulators have a role in accelerating innovation? If so, what is it? (e.g. updating regulatory approach to incent utilities to innovate? advocating for legislative change? partnerships and collaboration? encouraging investments in innovations?).”

    Another is necessary alliances to achieve net zero: While sector-specific greenhouse gas and renewables targets exist in many jurisdictions, “meeting Canada’s economy-wide net-zero goal by 2050 may require a level of cross-sector cooperation that could make strange bedfellows out of historical competitors.”

    In tackling such new questions and issues, CAMPUT’s approach will need to be creative. “Our membership is a diverse collection of regulatory bodies with varying mandates, legislation, and regional opportunities,” says Fraser. “I need to listen and remain adaptable to support a diverse membership. That said, I do believe within our diversity we have experiences and solutions that can be used as a roadmap for how we can all improve. We really do have to be in this transition together.”

    “The pace of the energy transition is accelerating, and along with other energy stakeholders, regulators need to be decisive and agile to respond to changing expectations…”

    To better understand how Canada might reform utility legislation to accommodate the growing environmental obligations, in 2022 the Canadian Gas Association and Electricity Canada prepared a study called Net Zero: An International Review of Energy Delivery System Policy and Regulation for Canadian Energy Decision Makers.1 The paper included a roadmap for Canada to amend and update its utility regulatory policy and legislation.

    To do that, the report found, Canada needs to create a task force with a mandate to develop concrete legislative and policy reform in light of emissions reductions towards a sustainable net zero. The force would be collaborative: convening federal, provincial, and territorial policymakers and regulators alongside Indigenous and municipal governments and organizations, industry, civil society and academic leaders.

    Fraser says she’s aware of the need for collaboration. She concurs with forming a joint task force to hit the bullseye. “I recognize policy at a federal level has given us broad goals, but the energy sector is primarily regulated at regional levels,” she says. “I would love to see a roadmap of where we are and where we need to be, broken down by province/territory and industry ideally with proposed solutions and targets. Breaking down where we are struggling to advance our goals could provide insight into what barriers we need to look at and guide policy makers toward targeted solutions.”

    She’s poised to start. “Necessary change is difficult even when we know exactly what we are trying to fix,” she says. “CAMPUT needs to be part of an exercise that maps out an understanding of what drives the decisions of regulators, regulated utilities, unregulated investment and other market participants across our country.”

    Graham Chandler spent a decade in energy corporate finance and marketing management. As a full-time freelance writer, he has specialized in energy topics for the past 20 years.

     

    1 Michael Cleland and Monica Gattinger, “Net Zero: An International Review of Energy Delivery System Policy and Regulation for Canadian Energy Decision Makers”, (4 April 2022), online: Canadian Gas Association <cga2026.acartdev.com/wp-content/uploads/2022/04/Net-Zero-An-International-Review-of-Energy-Delivery-System-Policy-and-Regula tion-for-Canadian-Energy-Decision-Makers.pdf>.
  • America’s gas stove kerfuffle

    America’s gas stove kerfuffle

    It all began in early January 2023, when a member of the U.S. Consumer Product Safety Commission, asked about studies linking the use of gas stoves to childhood asthma, told Bloomberg News that “any option is on the table” and that “products that can’t be made safe can be banned.”

    The agency moved quickly to walk back the remarks from commissioner Richard Trumka Jr., a Biden appointee, and assure the public that nobody was coming to haul away their stoves. But it was too late: The Jan. 9 story already had set off a new skirmish in America’s culture wars and a media feeding frenzy.

    News outlets had a field day competing for most cliché-filled coverage. The Economist observed that a “fiery debate has ignited in America” over a proposal that has “inflamed some Republicans.” Politico opined that the “stove flap gave Republican lawmakers an opening to put Biden’s energy policies back on the front burner.”

    All in all, “it was a very stupid news cycle,” as a spokesman for one House Democrat put it. “So little of it was based on fact.” Nobody agreed with that assessment more than the U.S. gas industry, which swiftly launched a public effort to refute the validity of the report that triggered the gas stove kerfuffle.

    The report in question was published in December 2022 in the International Journal of Environmental Research and Public Health and claimed that nearly 13% of current childhood asthma cases in the U.S. could be traced to gas stove use and the impact on indoor air quality from release of nitrogen dioxide, carbon monoxide and fine particulate matter.

    In a statement released a day after the Bloomberg story, The American Gas Association (AGA) disputed the findings and noted that the report was funded by non-governmental organizations, including clean-energy think tank Rocky Mountain Institute (RMI), “to advance their agenda to remove consumer energy choice and the option of natural gas.”

    The AGA issued another statement a few days later announcing that RMI “finally admitted” that the study “does not assume or estimate a causal relationship between childhood asthma and natural gas stoves.”

    AGA President and CEO Karen Harbert pointed out in the initial coverage that neither the CPSC nor the Environmental Protection Agency (EPA) present gas ranges as a major contributor to negative air quality, or health hazard in their technical or public information literature, guidance, or requirements.

    “This conversation was largely fuelled by a study which collected no data and made no assumption of causation and relies on reports that did not test natural gas stoves and have ignored research that found no association between gas stoves and asthma,” Harbert said. “For an issue as important and personal as children’s health, sound science matters.”

    As part of its response, the AGA pointed to a 2022 study by GTI Energy that actually tested gas and electric stoves in a lab. The study found no difference in particulate emissions, but it did demonstrate the importance of good ventilation for all types of stove because emissions from food and oil are produced during cooking regardless of the fuel source.

    Three days after the Bloomberg story, Harbert suggested on a call with reporters that one reason for the furor was the simple fact that Americans really like their gas stoves. Indeed, an estimated 38% of U.S. households have gas stoves and surveys show professional chefs overwhelmingly favour gas for cooking.

    “StoveGate”, with its focus on health and indoor air quality, is just a sideshow to the larger and rapidly expanding push for wholesale prohibitions on new natural gas hookups by activists who see total electrification of the U.S. energy system as a key to halting climate change.

    As of late January, nearly 100 cities and counties across the country had adopted electrification ordinances that ban or discourage gas hookups for new buildings in favour of electric appliances and heat pumps. That number is startling considering it was just four years ago that Berkeley, California, became the first U.S. city to approve a ban on natural gas hookups. The law took effect in August 2021.

    “For an issue as important and personal as children’s health, sound science matters.”

    – Karen Harbert, President and CEO, AGA

    New York Gov. Kathy Hochul jumped into the fray just as the gas-stove controversy was cranking up. Her plan announced Jan. 12 would ban gas hookups in new construction starting with new homes in 2025 and expanding to large buildings by 2028 — a move the AGA said would “raise costs to consumers, jeopardize environmental progress and deny affordable energy to underserved populations.”

    Gas advocates have pushed back, with (so far) 24 states — many with bipartisan support — passing “fuel choice” legislation preempting municipalities from banning natural gas use in buildings. Those states account for nearly one-third of U.S. residential and commercial gas use. Similar legislation has been introduced in several other states.

    The industry also has notched victories in court, notably a ruling by the U.S. Court of Appeals for the Ninth Circuit April 17 overturning the Berkeley ordinance on the grounds that city officials overstepped their authority in adopting the ban. The ruling was expected to be challenged, but experts say other bans may not be affected due to the ruling’s narrow focus on specifics of Berkeley’s law.

    Even without bans, proponents of building electrification as a path to reducing greenhouse gas (GHG) emissions have plenty of tools at their disposal to encourage desired shifts in consumer behaviour. The 2022 Inflation Reduction Act, for example, created rebates of up to $840 off the cost of an electric cooktop, range or wall oven — as well as rebates and tax credits for heat pumps and electric vehicles.

    The uproar over gas stoves offers an object lesson in the difficulties of winning in the court of public opinion even when the facts are on your side. Sound science matters, but it’s not going to win the PR war when the folks you hope to persuade are leading with their hearts instead of their heads.

    While Trumka’s boss at the CPSC insisted after the blow-up that no outright ban or restrictions on gas stoves were on the docket, the agency in December already had committed to considering new safety regulations. The CPSC planned to open a public comment period in March to solicit input, but Trumka said in his Bloomberg interview that any action or new proposals this year were unlikely.

    Just a few years ago, the idea of a nationwide ban on gas stoves in the U.S. would have seemed preposterous. Short of a total ban, however, new appliance efficiency standards proposed by the Department of Energy earlier this year would make half of all gas stoves on the U.S. market today ineligible for sale.

    While it may be too soon to predict how much the nation’s love affair with gas cooking will be curtailed by unsubstantiated claims about air quality, efficiency regulations and the drive for total electrification, one thing seems certain: As a culture-war staple symbolizing the seemingly unbridgeable chasm dividing America’s political factions, the gas stove is here to stay.

    Expect to see the burner tips under the gas-stove ban issue ignited over and over in the runup to the 2024 U.S, Presidential election.

    In the polarized hyperpartisan atmosphere that pervades American politics, there’s little room for a thoughtful, reasoned debate over the relative merits of gas versus electric cooking, or for that matter over the best way for the U.S. to ensure continued access to affordable, reliable energy while reducing emissions to meet targets set by governments. And the affordability and reliability elements are getting more and more attention as both are seriously at risk with an electrification agenda. But political discourse is all about ginning up the base and reducing complex issues to slogans that fit on a t-shirt, hat, or in this case, apron.

    David Coburn is a strategic thinker, writer, media relations expert and communications consultant leveraging 30-plus years of print journalism and agency public relations experience.

  • Revolutionizing Western Canada’s Trucking Industry with CNG Stations

    Revolutionizing Western Canada’s Trucking Industry with CNG Stations

    On April 18, 2023, Tourmaline Oil Corp., Clean Energy Fuels Corp., and Mullen Group Ltd. announced a groundbreaking $70 million Joint Development Agreement to construct a network of compressed natural gas (CNG) stations across Western Canada. The collaboration aims to revolutionize the trucking industry by transitioning heavy-duty trucks and commercial transportation fleets to the use of CNG, a lower emission alternative.

    Canada’s largest natural gas producer, Tourmaline, in partnership with Clean Energy, a leading fuel service provider, will jointly invest in constructing and operating up to 20 CNG stations over the next five years. Mullen Group, one of North America’s largest logistics companies, is first to support the initiative, utilizing the network to fuel its growing fleet of CNG powered trucks.

    With its first location operational north of Edmonton, a strategically located station, the venture has begun a transformative journey for Class 8 trucking in Western Canada. Additional stations in Calgary, Grande Prairie (Alberta), and Kamloops (British Columbia) are set to commence operations in the first half of 2024. This ambitious project aims to have around 20 stations fuelling approximately 3,000 natural gas-powered trucks daily, resulting in an impressive reduction of 72,800 tonnes of CO2 emissions per year. This is equivalent to removing 15,690 passenger vehicles from the road. Furthermore, the adoption of CNG presents substantial cost savings, with fuelling vehicles currently offering up to 50% lower costs compared to retail diesel prices.

    This joint effort not only aligns with the Government of Canada’s emission reduction targets but also embraces a free-market approach to emission reduction in the long run. It highlights the immediate and significant potential of CNG for lowering the environmental impact of trucking fleets. Moreover, it lays the groundwork for the future integration of renewable natural gas (RNG) as existing CNG infrastructure can seamlessly accommodate this resource as it becomes more readily available.

    The collaboration between Tourmaline Oil, Clean Energy Fuels, and Mullen Group marks an important milestone in the journey toward lower emissions by providing an economical, convenient, and reliable pathway for the trucking industry to transition to CNG. It represents a pivotal step towards a cost-effective future for the trucking industry in Western Canada.