5 takeaways from Canada’s draft rules for an oil and gas emissions cap
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This is a guest post by Ian Miron, Ecojustice staff lawyer.
Proposed pipeline liability regime steps in the right direction, but leaves too much wiggle room for polluters.
At this very moment, Canada’s liability regime is woefully inadequate when it comes to making sure that polluters pay in the event of a pipeline rupture or oil spill. That means that Canadian taxpayers like you would shoulder an inappropriate degree of the risk in the event of a serious pipeline accident, like Enbridge’s Kalamazoo River spill in Michigan.
According to recent estimates, that spill — the largest in United States history — cost more than $1.2 billion to clean-up. By comparison, Canada’s strictest liability law would have only made Enbridge automatically liable for a paltry $40 million, while providing the company with an opportunity to wriggle off the hook for any further costs.
Now consider that a number of controversial new pipeline projects have been proposed in Canada, each bigger than the last. Between Enbridge’s Northern Gateway (525,000 barrels per day), Kinder Morgan’s Trans Mountain expansion (890,000 barrels per day) and TransCanada’s Energy East (1.1 million barrels per day), thousands of Canadians may find pipeline infrastructure — locking us into a fossil-fuel economy for another generation — snaking right through their backyards.
Each project comes with an array of heavy environmental risks, including significant upstream and downstream greenhouse gas emissions. But for many Canadians, the very real threat of a major oil spill is a tangible and pressing concern, which is why it is absolutely imperative that Canada bring in a stricter, more comprehensive liability regime.
The good news is there is some progress to report. Earlier this month, the federal government introduced Bill C-46 in the House of Commons. If passed into law, Bill C-46 would completely overhaul the statutory liability regime for federally-regulated pipelines in Canada.
Here’s a quick look at a few encouraging developments and shortcomings of the bill:
Polluters will be absolutely liable for harm caused by a pipeline spill.
Polluters will be liable for environmental damages.
New tools to recoup clean-up costs from polluters.
It’s too discretionary.
It has significant gaps.
It doesn’t impose unlimited absolute liability.
Bill C-46 is a much needed, overdue first step towards a “polluter pays” regime for pipelines in Canada. In general, it could add a lot of good, innovative tools to the National Energy Board’s toolbox that could effectively protect Canadian taxpayers from paying the clean-up costs in the wake of a pipeline spill. How effective these tools will be is, unfortunately, left largely to the discretion of the Board and politicians. This lack of certainty about the degree to which polluters will be required to pay for their pollution undermines what is, in principle, a good first step.
This post originally appeared on the Ecojustice blog.
Image Credit: KARK 4 News via NRDC
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