Energy
First Nations Buy Into Pipelines
From the Frontier Centre for Public Policy
“Meaningful Indigenous participation in our resource economy is maturing. At first, First Nations used to ask for compensation, the jobs, and then for the contracts that created those jobs, Now they seek purchase equity in the project itself. Soon they will create the project and seek others to invest in it. Then they will have real economic power.”
It’s taken years to get here, but there’s a new trend in Canada’s pipeline industry, and it couldn’t come soon enough. That’s because the path we’ve been on until now has been one to ruin.
On July 30, TC Energy announced it was in the process of selling 5.34 per cent of its Nova Gas Transmission Ltd. (NGTL) System and the Foothills Pipeline assets for a gross purchase price of $1 billion. “The Agreement is backed by the Alberta Indigenous Opportunities Corporation (AIOC) and was negotiated by a consortium committee (Consortium) representing specific Indigenous Communities (Communities) across Alberta, British Columbia and Saskatchewan. This results in an implied enterprise value of approximately $1.65 billion, inclusive of the proportionate share of the Partnership Assets’ collective debt,” TC Energy said.
This comes a few months after its March 14 announcement to sell “all outstanding shares in Prince Rupert Gas Transmission Holdings Ltd. and the limited partnership interests in Prince Rupert Gas Transmission Limited Partnership (collectively, PRGT). PRGT is a wholly owned subsidiary of TC Energy and the developer of a natural gas pipeline project in British Columbia and potential delivery corridor that would further unlock Canada as a secure, affordable and sustainable source of LNG.”
The Nova system sale is significant. It’s the principal natural gas gathering system throughout Alberta and a bit into B.C. In addition to supplying Alberta with its gas needs, Nova, in turn, feeds the TC Energy Mainline. It also supplies Saskatchewan via Many Islands Pipe Lines and TransGas, both subsidiaries of SaskEnergy. And since Saskatchewan’s domestic gas production keeps falling, we now rely heavily on Alberta gas to keep our furnaces lit and our new gas fired power plants turning, keeping the lights on. When you look at the Nova map, it’s basically the map of Alberta.
Some of the most significant difficulties in getting major pipeline projects built in this country over the last 16 years has been Indigenous opposition. One of the first stories I wrote about with Pipeline News during the summer of 2008 was a First Nations protest on the Enbridge right of way at Kerrobert, complete with a teepee. That was for the Alberta Clipper project, but it was relatively quickly resolved.
Then there was Enbridge’s Northern Gateway project, which was approved by the Conservative federal government but halted by the courts because of insufficient Indigenous consultation. It was ultimately killed very early into the Trudeau-led Liberal administration, when he said, “The Great Bear Rainforest was no place for a pipeline, a crude pipeline.”
Northern Gateway would have terminated at Kitimat. Yet, curiously enough, that same forest had to be crossed to built the TC Energy Coastal GasLink project. It went grossly overbudget in no small part due to delays and resistance in every manner possible from the Wet’suweten in northern B.C. As Canadian Press reported on Dec. 11, 2023, “By the time the pipeline was finished, its estimated construction cost had ballooned from $6.6 billion to $14.5 billion.”
And then there was Trans Mountain Expansion. It had opposition from the BC government, City of Burnaby, and everyone who could apply a Sharpie marker to a Bristol board. But Indigenous opposition was a major factor. As Pipeline Online reported via the Canadian Press, “The project’s $34-billion price tag has ballooned from a 2017 estimate of $7.4 billion, with Trans Mountain Corp. blaming the increase on “extraordinary” factors including evolving compliance requirements, Indigenous accommodations, stakeholder engagement, extreme weather and the COVID-19 pandemic.”
By this spring, the number was $34 billion, and I anticipate its final cost will be higher still.
Maturing
There’s been a big change in recent years, not just in pipelines, but in other energy industries like wind and solar. That change had gone from consultation to jobs to equity investment.
The word used almost always is “reconciliation.” That can be a loaded word in many ways, Some feel it will heal wounds, and right past wrongs, or at least try to. Others would say it’s a form of extortion. And some take issue with racial overtones. But here’s something I heard this week that makes a lot of sense:
“Meaningful Indigenous participation in our resource economy is maturing. At first, First Nations used to ask for compensation, the jobs, and then for the contracts that created those jobs, Now they seek purchase equity in the project itself. Soon they will create the project and seek others to invest in it. Then they will have real economic power.”
That’s what Steve Halabura, professional geologist, told me. And he would know, since he’s been working with First Nations on this economic development front.
And you see that in the timeline I laid out. The 2008 protests were very much about compensation and jobs. Trans Mountain Expansion saw significant First Nations’ owned and operated firms awarded contracts. And now, they’re buying equity positions.
You know what? If First Nations bands, and people, do indeed become owners in these resource companies and infrastructure, if it helps pay for housing and water treatment plants, if it means meaningful work and paycheques, are they likely to fight the next project tooth and nail? Or will they want to be a part of it?
And think of it this way – if we could have gotten to this point ten years ago, maybe these projects might have gone much more smoothly. Maybe their final costs wouldn’t have been double, or quadruple, the original budget. When you think of it in that perspective – if a billion dollar equity stake meant Coastal GasLink could have cost $5 billion less, would it have been worth it to bring First Nations in as equity partners?
Some will say that’s extortion. Others would say it’s justice, or reconciliation. But maybe, just maybe, this is how we move forward, and everyone in the end wins. And maybe then Canada can, once again, build great things.
Brian Zinchuk is editor and owner of Pipeline Online and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected].
Daily Caller
East Anglia educated environmental scholar says it’s time to “Scrap Green Energy Handouts Once And For All”
From the Daily Caller News Foundation
Vijay Jayaraj is a Research Associate at the CO2 Coalition, Arlington, Virginia. He holds a master’s degree in environmental sciences from the University of East Anglia, U.K.
As the presidential election nears, it is reasonable to ask why the United States continues to give away billions to “avert” a fabricated climate crisis to countries that have little interest in participating in the charade beyond accepting handouts.
The United States has been a significant contributor to global climate initiatives, most notably through its involvement in the Paris Agreement.
At the 15th U.N. Climate Conference in 2009, rich countries pledged to provide $100 billion a year in climate finance by 2020 to assist developing nations fight climate change. This target was said to have been achieved for the first time in 2022, according to the Organization for Economic Cooperation and Development.
Having the world’s largest economy, the United States was expected to support a large portion of the Green Climate Fund (GCF), which resulted in a promise of $1 billion.
GCF claims to be the “world’s largest dedicated climate fund” with a portfolio valued at $12 billion, or $45 billion when co-financing of projects is included. According to the GCF website, the fund delivers “transformative climate action in 140 countries” to keep “average global temperature rise well below 2 degrees Celsius.”
To which one might respond: Poppycock! No “climate action” will have a significant effect on temperatures, and the 2 degrees cited hardly matter environmentally in any case. Climate policies “will have a trivial effect on temperature but disastrous effects on people worldwide,” concludes a recent paper by Prof. Richard Lindzen of the Massachusetts Institute of Technology and Prof. William Happer of Princeton University.
Besides, contrary to doomsday predictions, the Earth is flourishing in many ways. Global poverty has decreased dramatically over the past few decades, and agricultural yields have increased significantly partly, because of higher levels of atmospheric CO2. Natural disasters — often cited as evidence of climate change — are causing fewer deaths than ever before, despite population growth and development along coastlines and other vulnerable areas.
The outrage of having taxpayer money poured down the climate rat hole is compounded by the fact that recipients of GCF grants include China and India, the world’s largest emitters of greenhouse gases that are rapidly expanding consumption of fossil fuels. Meanwhile, the bone-headed policy of the United States is to reduce the use of these affordable and abundant fuels to the detriment of household budgets, business profitability, electric grid reliability and national security.
So, instead of pouring billions into international climate projects, the United States should prioritize its own energy security. This means developing its oil, coal and natural gas and strengthening partnerships with reliable allies like Canada.
The United States’ vast reserves of natural gas have been made available through advanced extraction technologies such as hydraulic fracturing and horizontal drilling, making the country one of the world’s leading producers. This abundance can ensure a reliable and cost-effective energy supply for other nations and reduce U.S. dependency on foreign sources, enhancing national security.
The intermittent nature of wind and solar power — both GCF darlings — necessitates backup power sources or massive battery storage systems that come with their own environmental and economic costs. The materials needed for batteries, for instance, are often mined in regions with poor environmental records or by using child labor.
By contrast, modern fossil fuel extraction in the United States and Canada is subject to some of the strictest environmental regulations in the world. Ironically, by outsourcing energy production to less regulated countries in the name of “going green,” the United States causes more environmental harm globally.
Russia’s invasion of Ukraine and the subsequent energy crisis in Europe starkly illustrated the dangers of energy dependence. European countries, having underinvested in fossil-fuel infrastructure and a reliance on Russian gas, found themselves in a precarious position.
This example alone is enough for the United States to reset its priorities. Promotion of failed and mostly unwanted “green” policies should be replaced with aggressive development of fossil fuel resources, as well as nuclear power and building robust energy partnerships with allies.
Vijay Jayaraj is a Research Associate at the CO2 Coalition, Arlington, Virginia. He holds a master’s degree in environmental sciences from the University of East Anglia, U.K.
Daily Caller
Biden-Harris Admin’s Multi-Billion Dollar Electric School Bus Program Is A Huge Gift To China, House Report Finds
From the Daily Caller News Foundation
By Owen Klinsky
The Biden-Harris administration’s $5 billion Clean School Bus Program uses nearly 400% more taxpayer dollars per school bus and benefits the Chinese Communist Party (CCP), a House report revealed Tuesday.
The 51-page report from the House Committee on Energy and Commerce found promoting electric school buses and other electric vehicles (EVs) enriches the CCP as the EV supply chain is roughly 90% dependent on China, raising both national security and human rights concerns. It also highlighted immense expenses for taxpayers, with the average electric school bus under the first iteration of the Clean School Bus Program — the first of three iterations — costing $381,191, nearly four times that of a typical full-sized diesel school bus.
“It is clear the $5 billion Clean School Bus Program is overall a failure and, in many cases, a waste of Americans’ hard-earned taxpayer dollars,” Republican Congresswoman Cathy McMorris Rodgers, who chairs the House Committee on Energy and Commerce, said in a statement regarding the report’s findings. “The program, led by the radical Biden-Harris EPA [Environmental Protection Agency], props up a market that relies heavily upon a supply chain dominated by the Chinese Communist Party.”
Funded by the 2021 Bipartisan Infrastructure Law, the Clean School Bus Program provided the Biden-Harris EPA with funds over five years to “replace existing school buses with zero-emission and clean school buses.”
Kamala Harris led the Biden Administration's $5,000,000,000 EV school bus program.
After 3 years, just 60 buses are on the road.
That's over $83,300,000 per bus.
A vote for Kamala is a vote to waste more tax dollars on failed green programs.
— Daniel Turner (@DanielTurnerPTF) July 29, 2024
China currently accounts for approximately two-thirds of global EV battery cell production, while the U.S. manufactured just 7% as of 2022, raising national security concerns as the U.S. would likely have to depend on Chinese EV technology for its electric school buses, according to the report. Furthermore, the government-subsidized purchases of electric school buses under the Clean School Bus Program incentivize pre-existing human rights abuses in the EV supply, including the use of Uyghur forced labor in China’s Xinjiang region.
The report also identified limited range as an issue, with standard electric school buses from leading manufacturer BlueBird able to travel just 120 miles on a single charge, while some propane models can travel 400 miles before needing to refuel. The range problem can also be exacerbated by cold and warm weather conditions, with a study from the National Renewable Energy Laboratory finding electric transit buses lose roughly a third of their range at 25 degrees Fahrenheit compared to ideal conditions.
Electric school buses also increase the risk of fraud due to a lack of documentation requirements for contractors, with the EPA relying solely on self-certified applications and estimates created by applicants, according to the report. A separate July report from a Maryland county’s Office of the Inspector General resulted in millions of dollars in “wasteful spending.”
“The EPA launched the Clean School Bus program without sufficient safeguards and considerations for practical hurdles applicants may face. For example, the EPA did not require documentation for some of the required application information and allowed contractors enthused at the opportunity to receive federal funding to apply on behalf of unknowing school districts, some of which eventually withdraw from the program,” the report states. “The EPA failed to account for the considerable electric infrastructure upgrades that electrifying a school bus fleet could require, potentially leading to delays for schools in utilizing their new buses.”
The White House did not immediately respond to a request for comment.
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