Goals, Objectives, Strategies and Performance Measures

A wide range of Ministry strategies are being implemented in support of Government Goal 5 to “Create more jobs per capita than anywhere else in Canada.” Some of these strategies include implementation of the BC Energy Plan, expanding opportunities for job training and placement, facilitating First Nation involvement, engaging communities and stakeholders, as well as ensuring a secure, reliable supply of low cost electricity for British Columbians.

The Ministry has many initiatives to support Government Goal 4 to “Lead the world in sustainable environmental management with the best air and water quality, and the best fisheries management, bar none.” The Ministry will enhance the Oil and Gas Environmental Stewardship Program ensuring sound environmental, land and resource management, maintain effective, efficient regulation of mines and mineral exploration sites aimed at health, safety and environmental best practices, and promote development and use of alternative energy technology, and energy efficiency measures. Key activities include the Oil and Gas Regulatory Improvement Initiative to create a more effective and efficient results-based oil and gas regulatory framework, enhancement of the oil and gas environmental stewardship program and further implementation of the BC Mining Plan, which commits to developing faster and simpler approaches to multi-agency approvals of exploration and mining.

Through the BC Mining Plan, we are achieving our vision of a thriving, globally competitive, safe and environmentally responsible exploration and mining industry. The plan has four cornerstones: focus on communities and First Nations, protecting workers and the environment, global competitiveness and access to land. We are working with local governments, industry and community members to maintain British Columbia’s mining reputation as a world leader in social responsibility and environmental protection.

The Ministry is leading the promotion of energy efficiency measures to reduce the need for new energy supply, while delivering a healthier living and work environment for British Columbians. The BC Energy Plan provides a made-in-B.C. solution to the common global challenge of fostering the development of new, sustainable energy technology industries. This will ensure more comprehensive and proactive approaches to energy issues in British Columbia for the next 20 years, and supports the continuing evolution of the energy sector and a secure, reliable supply of affordable electricity produced in an environmentally responsible way, which supports job creation and economic growth.

Goal 1: Thriving and competitive energy, mineral and petroleum resource sectors

Objective 1.1: Increased investment, revenue generation and job creation in energy, mineral and petroleum resource development for the long term benefit of all British Columbians

     Spences Bridge, B.C.

• Long term investment in the energy, mineral and petroleum resource sectors contributes to stability and predictability, allowing the industries to grow and prosper.
• Demand for energy, mineral and petroleum resources can be cyclical, affecting the price of these resources, and thus the level of investment in the sectors. The financial costs (interest rates) and currency fluctuations can also impact investment levels.

Strategies

• Attract investment by working with industry to develop and implement focused marketing and investment programs to showcase British Columbia as a centre of excellence for energy, mining, and oil and gas development.
• Further establish British Columbia as a recognized centre for innovation and high technology research, education and demonstration, in collaboration with industry, post secondary institutions, the federal government and provincial agency partners.
• Improve British Columbia’s competitiveness in energy, mineral and petroleum development, by providing leadership and information, and investing in infrastructure.

Performance Measures 1–3: Annual investment in energy and mining sectors

Discussion

Annual investment in oil and gas exploration and development is comprised of industry investment in geophysical and geological surveys, exploratory and production wells, pipelines and processing plants. Used domestically for heating and cooking purposes, natural gas also has a wide range of commercial and industrial uses. Increased investment is an indicator of increased production which expands the supply of gas to residential, commercial and industrial consumers. In addition, oil and gas activities provide jobs for British Columbians, build provincial infrastructure, and provide significant revenue to the Province which supports the provision of social programs such as education and healthcare.

Annual investment in electricity generation and transmission facilities tracks total investment in the electricity sector in British Columbia, including improvement and replacement to existing infrastructure by the major provincial electrical utilities — BC Hydro, BC Transmission Corporation and Fortis BC — and Independent Power Producers which supply electricity to the utilities. For estimation purposes, total Independent Power Producers’ capital expenditures on a project will be attributed to the fiscal year of commercial operation, and be based on a weighted average of capital costs per megawatt of capacity. Capital expenditures in the energy sector help ensure a safe and reliable electricity system to meet household, commercial and industrial needs. The electricity sector employs many British Columbians, and the dividends from electricity Crown corporations, and tax, water rental and other revenues from all electricity market participants contribute to important social programs.

Annual investment in mineral exploration and mines combines exploration expenditure and investment in new and existing mines. Annual mineral exploration expenditures provide jobs for British Columbians throughout the province. If commercially viable deposits are discovered, new mines may be opened, and exploration dollars are converted into operating mines, with more long term employment opportunities created for rural communities. Capital investment in new or existing mines also provides jobs and builds provincial infrastructure. Mineral taxes and tenure fees and rentals provide revenue to the Crown.

Objective 1.2: An increasingly secure, reliable supply of energy for the long term benefit of all British Columbians

• A secure and reliable supply of energy contributes to economic growth and stability for British Columbians.
• Energy supply is influenced by a number of factors including regional and global demand, interest rates and availability.

Strategies

• Ensure self-sufficiency to meet electricity needs, including extra energy or “reliability insurance”, through innovative and aggressive conservation and electricity procurement programs and BC Hydro’s own projects.
• Diversify British Columbia’s fuel supply, including biodiesel and fuels developed from biomass.

Objective 1.3: Efficient and effective fiscal, legislative and regulatory frameworks and services that reflect the public interest, and enhanced social and economic benefits for all British Columbians

• An efficient and effective tax and policy framework for industry enhances competition and encourages the investment necessary to prosper.
• Competition with other jurisdictions for investment requires ongoing progress in regulatory reform, fees and licence reviews, and policy development.

Strategies

• Review regulatory issues in cooperation with other levels of government to ensure British Columbia remains competitive, and monitor the provincial regulatory environment for global competitiveness.
• Continue to identify opportunities for appropriate regulatory reductions while ensuring the integrity of environmental, health and safety standards.
• Develop and implement a faster and simplified approach to multi-agency exploration and mining approvals, with the Ministry as the single coordinating agency.
• Expand and improve online service delivery by developing and implementing electronic payment and permitting options. For example, E-bidding as an option for the monthly Crown sales of petroleum and natural gas rights is being reviewed and anticipated to go forward in 2008/09.
• Implement new, targeted royalty and incentive programs to stimulate investment in environmental measures and development of oil and gas resource opportunities, and review existing programs to ensure that they are still current and relevant.
• Review Utilities Commission Act to ensure that utility regulation is consistent with Government’s energy and climate change policies and priorities.
• Lead the Province’s oversight of the Columbia River Treaty, including Treaty obligations and benefits and all matters that may impact British Columbia’s Downstream Power Benefit Entitlement under the Treaty, and manage the agreement with Powerex for the sale of the Downstream Benefit Entitlement.

Objective 1.4: Greater community awareness of the benefits of energy, mineral and petroleum resource opportunities

Princeton, B.C.

• Increased awareness of these benefits is one element that contributes to the social licence for industry to move forward. The energy and mining industries contribute significant revenues to government which are used to fund public services such as healthcare and education.
• Time and resources are the only real challenges related to raising awareness. The Ministry strives to reach as many communities and First Nations as it can with available staff resources.

Strategies

• Develop and implement focused promotional programs to inform British Columbians about opportunities in the energy, mining, and petroleum industries.
• Build community and industry relationships by engaging in discussion about the benefits and opportunities of resource development, and developing an offshore oil and gas benefits sharing model.
• Increase provincial awareness of opportunities by working cooperatively with other ministries and partners to engage school students in a discussion of responsible energy, mineral and petroleum resource development.
• Pursue financial and cooperative energy partnerships with industry, such as those developed with Independent Power Producers, communities and other levels of government.

Goal 2: Safe and environmentally responsible energy, mineral and petroleum resource development and use

Objective 2.1: Operational practices at work sites that protect the public, workers’ safety and the environment

• Operations at mines, quarries, and gas or oil extraction or distribution sites can be dangerous to workers and the public, and have an impact on the environment if not properly managed. Operational practices that safeguard the public, industry employees and the environment will contribute to safe and environmentally responsible development and use of these resources.
• The threat of accidents, leakages and spills is always present, so policy development, inspections, education and training are always necessary to ensure these are minimized.

Strategies

• Develop leading mine health and safety standards and practices in cooperation with labour and industry groups.
• Improve safety compliance through inspections and audits.
• Expand environmentally responsible energy, mineral and petroleum resource development, in partnership with individuals, industry, environmental groups, universities, colleges and other government organizations.
• Improve environmental compliance through inspections and audits at development sites.
• Encourage the development and adoption of clean and renewable technology through the Innovative Clean Energy Fund.

Performance Measure 4: Short term injury rate at B.C. mines

Discussion

The targets reflect the anticipated average number of accident claims per year at B.C. mines, including open pit coal and metal mines, quarries and underground mines per 100 person years. With several new mines opening in the province, the mining workforce will be larger and have a greater percentage of workers who are new to mining operations. Enhanced health and safety training and inspections will be required to maintain mining as one of B.C.’s safest heavy industries.

Objective 2.2: Increased energy conservation and use of alternative, clean energy and efficient technologies

Ruskin Dam, Maple Ridge, B.C.

• Reducing energy use by retrofitting or constructing new energy efficient buildings as well as the deployment of alternative energy technology contribute to environmentally responsible energy development. Government has a key role in providing information to the public about practical conservation initiatives, and encouraging the private sector to develop alternative energy sources.
• The up-front expense of retrofitting older buildings to make them conserve energy, as well as the cost of material and equipment to make new buildings more energy efficient will be fully recovered over time through lower energy bills.
• British Columbia has a number of alternative energy options such as solar, tidal, biomass and wind power. These sources of alternative energy are renewable and can complement existing electricity-generating facilities.

Strategies

• Ensure an active and co-ordinated focus on energy conservation and efficiency by government, communities, electricity producers and utilities across British Columbia.
• Increase the participation of local governments in the Community Action on Energy and Emissions Program and expand the First Nation and Remote Community Clean Energy Program.
• Encourage the procurement of electricity from clean and renewable sources.
• Advance the development of a hydrogen economy by promoting the hydrogen fuel cells industry and other technology that supports alternative energy.
• Implement the BC Bioenergy Strategy.

Performance Measure 5: Electricity savings achieved through conservation policies, programs and regulations

Discussion

This measure is driven by policy actions one through nine of the BC Energy Plan. Targets represent electricity savings from BC Hydro’s PowerSmart and Fortis BC’s PowerSense demand side management programs and conservation/stepped rate participants. Both of these utilities design and direct their energy efficiency programs to three main market sectors — residential, commercial and industrial. Savings are also achieved through energy performance codes and standards established for buildings and energy using devices.

Goal 3: The Ministry, communities, First Nations and industry working cooperatively for the responsible development and use of British Columbia’s energy, mineral and petroleum resources

Objective 3.1: A strengthened commitment to environmental and social responsibility through increased, appropriate and timely engagement of communities, First Nations and stakeholders in resource development

• If First Nations, local governments, landowners and non-governmental organizations are informed and participate in responsible resource development, they will have an opportunity to help identify and contribute constructively to the resolution of issues and become more aware of the benefits that resource development can provide to a community, such as regular employment for citizens.
• The principal challenges associated with engagement are sufficient time and resources to contact all appropriate communities to discuss opportunities. Communities’ and stakeholders’ time as well as resources are also limited. Not all communities and landowners are convinced that resource extraction can take place in an environmentally friendly manner.

Strategies

     Brilliant Dam, Castlegar, B.C.

• Improve working relationships between industry, local communities and landowners by clarifying and simplifying resource development and management processes, enhancing dispute resolution methods, and offering more support and information.
• Support First Nations in providing cross cultural training to agencies and industry.
• Assist industry with engaging First Nations in development proposals at an early stage.
• Provide information about local development activities to local governments, education and health service providers to inform the development of social infrastructure.
• Examine tenure policies and develop guidelines to address areas that require special consideration.

Objective 3.2: Increased opportunity for First Nations to share in the benefits of responsible resource development and use

• First Nations have limited staffing and financial resources to be fully aware of all resource development opportunities in their traditional territories. By engaging First Nations early and often, consistent with the spirit of the New Relationship, the Ministry can assist aboriginal communities in being better informed about resource development opportunities.
• If First Nations have a better awareness of resource development opportunities and how these activities are regulated in an environmentally responsible manner, they may be more receptive to such developments. With information and awareness of resource development opportunities, First Nations will also be in a better position to consider how they can become involved in joint ventures, partnerships or other activities to address employment and economic development aspirations in their community.

Strategies

• Engage First Nations to identify opportunities to participate in and benefit from energy, mining and petroleum development.
• Develop partnerships between First Nations, industry and government to fund skills, employment and business development opportunities.
• Negotiate First Nations Agreements which engage First Nations from pre-tenure through to reclamation. Involve First Nations and coastal communities in the development of an offshore oil and gas regulatory and benefit sharing model, and a remote community clean energy program.
• Investigate opportunities for the participation of 17 First Nations in oil and gas pipelines through the proposed Energy Trade Corridor between Kitimat and Prince George.

Performance Measure 6: Working arrangements with First Nations

Discussion

The Ministry’s new or renewed working arrangements include a broad range of initiatives. These arrangements can include Ministry/First Nations information sharing working groups (e.g., Hamatla Treaty Society), Long Term Oil and Gas Agreements (e.g., Blueberry River First Nations), and Mining and Mineral Protocol Agreements (e.g., Upper Similkameen Indian Band). These arrangements are either newly signed with the Ministry, or are existing arrangements that have been renewed. The benefits to aboriginal communities from these arrangements include information sharing, defined steps for the fulfilment of consultation obligations, support for community capacity, training in Ministry processes and systems related to mineral and oil and gas development, and opportunities to provide input on policy development.

Objective 3.3: Enhanced public awareness of resource opportunities and the benefits of their responsible development and use

• Increased public awareness of the employment and business opportunities from responsible resource development can enhance cooperation among industry, First Nations, communities and the Ministry.
• The Ministry seeks to reach all the appropriate stakeholders and the broader public in key regions, while making the most efficient use of Ministry resources by implementing strategic information and engagement efforts. For example, the North East Energy and Mines Advisory Committee is an effective, strategic community engagement forum.

Strategies

• Develop a targeted regional information and engagement mechanism to address energy and mines related topics on behalf of the Ministry and in collaboration with other provincial ministries, agencies and Crown corporations.
• Continue the annual Sustainable Mining Award (implemented 2006) to recognize the achievements of communities, industry and organizations.
• Implement a public information strategy on energy and mining for north east British Columbia, which is the province’s major oil and gas producing area, and the location of significant coal mining and mineral resources as well as wind power opportunities. Review and improve public information currently provided by the Ministry to make it more user-friendly.