September 2009

Minister's Message

It’s been a busy summer at the Ministry of Energy, Mines and Petroleum Resources.

I’m pleased to welcome Randy Hawes in his new role as the Minister of State for Mining. I look forward to working with him on this exciting and challenging portfolio.

At the Hydrogen and Fuel Cell Conference in June, I had the opportunity to highlight B.C.'s leadership in hydrogen and fuel cell technology and showcase the Hydrogen Highway. The Province, along with California, Oregon and Washington, is looking to extend the hydrogen highway through to California. It was inspiring to see how innovation and commitment to developing clean energy alternatives continue to propel us towards a low-carbon energy future.

Alternative energy was front and centre again when I toured the Bear Mountain Wind Project near Dawson Creek. Wind power is among the fastest growing renewable energy technologies in the world and this wind park is adding skilled jobs and pumping millions of investment dollars into B.C.'s economy.

We also launched our oil and gas stimulus package to further encourage the oil and gas sector to invest in B.C. The province is one of the most competitive oil and gas jurisdictions in North America and we are working to make sure it remains that way.

With a competitive business climate, innovative ideas and a motivated, skilled workforce, B.C. is at the forefront of environmental and economic leadership.
 

B.C. Buildings Going Greener

Commercial buildings across B.C. could soon be more energy efficient, thanks to an agreement between the Ministry of Energy, Mines and Petroleum Resources, BC Hydro and the Building Owners and Managers Association of BC (BOMA).

The agreement, which could affect up to 17,000 buildings, sets out targets and outlines a strategy to support BOMA BC in driving members and non-members to make commercial buildings more sustainable and reduce greenhouse gas emissions.

As a first step, BC Hydro is funding an energy manager for BOMA to help building operators identify and implement conservation solutions.

The agreement sets out a six-year plan, which focuses on developing a simple process for building owners and managers to access funding from the federal government, Power Smart and other utilities, along with creating a tracking tool that allows commercial buildings to measure energy savings and the reduction of greenhouse gas emissions.

The plan also outlines educational initiatives to raise conservation awareness amongst building operators and tenants and calls for BC Hydro and government support of alternative energy projects that reward tenants for achieving best practices in energy efficiency and emission reductions. 

News release.
 

Stimulus Makes B.C. More Competitive

In July, the Province announced an oil and gas stimulus package designed to attract investment and produce immediate economic benefits including jobs and infrastructure projects.

The package includes four royalty and two regulatory initiatives that will enhance B.C.’s competitive business climate, creating momentum in the industry and attracting significant new investment into the province. 

News release.

Throne Speech, August 2009

The Throne Speech which opened the first session of the B.C. Government’s 39th Parliament touched on a number of items related to energy and energy conservation in the province. Highlights include:

• Electricity self-sufficiency and clean, renewable power generation will be integral to our effort to fight global warming.

• Phasing out Burrard Thermal is a critical component of B.C.'s greenhouse gas reduction strategy.

• British Columbia will take every step necessary to become a clean energy powerhouse, as indicated in the BC Energy Plan.

• A new transmission line along Highway 37 will replace dirty diesel power in First Nations communities, open new opportunities in mining and clean power production and create job opportunities throughout the Skeena Region.

• A new Green Energy Advisory Task Force will be appointed to complement the work of the BCUC's long-term transmission requirement review.

News release.

New Green Technology Supported in Budget Update

The budget update tabled on September 1, contained a number of highlights for the Energy, Mines and Petroleum Resources industries.
Among them are new investments to support related green technology including:

• $21.8 million for a new technology project at the University of Northern B.C. to convert waste wood into clean energy, and to improve energy efficiency; 

• $27.6 million for a campus expansion at Okanagan College, which includes construction of a Centre for Green Building Technologies; and

  • $7.8 million for the Energy House project at Northern Lights College in Dawson Creek. Energy House – which has significant support from private business – will specialize in LEED© Platinum education and research with a focus on alternative energy.

The mining industry also saw benefits with the extension of the Mining Flow Through Share Tax Credit to December 31, 2010, further establishing B.C. as  one of the top jurisdictions in the world for mining with one of the most competitive tax and regulatory systems in the world.

Bear Mountain Project Underway

On August 6, Minister Lekstrom toured the Bear Mountain Wind Project. Located 16 kilometres southwest of Dawson Creek, the innovative project is poised to become B.C.'s first fully operational wind farm. Set for completion in November, it will generate enough electricity in an average year to power 38,000 homes. The $200 million development is an AltaGas project.

Minister Lekstrom and Commissioner Alex Ferguson at OGC Green Offices

The BC Oil and Gas Commission (OGC) recently moved into the newly finished Dockside Green, the Victoria harbourside development which is setting a new standard for green urban developments.

Dockside Green heats its buildings using biomass gasification, a process that generates low-cost heat and power from biofuels including wood waste from local mills, as well as tree trimming and deadfall from the Greater Victoria area. 

This effort to reduce greenhouse gas emissions will help fight climate change and fits in well with the Provincial Energy Plan’s vision to encourage made-in-B.C. solutions for meeting our growing energy needs.

Land Rights Sales Continue to Boost B.C. Economy

The B.C. economy received a boost this summer with the June, July and August land rights sales.
June featured the ninth largest land rights sale in the province’s history.

The sale resulted in $178.4 million in bonus bids. It was triple the total sales during the last five months combined and proved strong investment interest in the oil and gas industry.

July and August added $38.3 million and $37 million respectively, bringing the calendar year to date total to $321.7 million.
 
June news release.
July news release.
August news release.

HST Benefits Industry

In July 2010, B.C. will adopt a harmonized sales tax (HST), joining six other Canadian provinces with a similar tax system. The province will boast the lowest harmonized sales tax in Canada when we move to this more efficient system.

The HST is great news for industry across B.C. and will remove about $2 billion in costs from job supporting sectors such as mining, forestry, oil and gas, construction and more.

Mining and oil and gas will see about $80 million in costs removed, which can be passed down to consumers and provide new opportunities for mining in the province.

The HST will make B.C. one of the most competitive jurisdictions, not just in Canada, but in the industrialized world. Moving to the HST will result in a 40 per cent reduction to the effective tax on new business investment.

Oil and Gas Industry Leads in Conservation

An agreement between the Province and the Canadian Association of Petroleum Producers will establish the B.C. oil and gas industry as a leader in energy conservation.

The Province and CAPP have signed a Memorandum of Understanding (MOU) on energy efficiency that will help to encourage energy conservation and greenhouse gas (GHG) emission reductions in the oil and gas industry.

Since 2001 the oil and gas industry has experienced unprecedented growth, with record land rights sales in 2008 generating $2.66 billion in revenues for British Columbia. Through this MOU, the Province and CAPP will work collaboratively to achieve energy efficiency in the oil and gas industry, primarily through fuel gas efficiency.

News release.

Royalty Credit Program Supports Infrastructure

Thirty-one oil and gas infrastructure projects providing jobs and opportunities for B.C. will go ahead as the Province awards $120 million in credits under the Infrastructure Royalty Credit Program.

Nineteen companies received the credits for the road and pipeline projects which will support oil and gas exploration and production and improve access to underdeveloped areas of north eastern B.C.

This increased activity and new production will generate additional royalty revenue to the Province.

News release.

 

Hawes and Lekstrom attend Minister's Council on Mineral Exploration and Mining meeting

The July meeting attendees included David McLelland, Gavin Dirom, Allen Wright, Minister of State for Mining Randy Hawes, Jim O’Rourke, Minister of Energy, Mines and Petroleum Resources Blair Lekstrom, Tim Stewart, Paul Allard and Pierre Gratton.