G&M Rejects: The Questionable Future of Ontario's Green Energy Act...

I've started taking it upon myself to submit pieces to the Globe & Mail. Anyone can do this, simply by submitting a 700-word piece to comment@globeandmail.ca on any topic they would like. However, the likelihood of actually getting published is fairly small. They get roughly 30 of these submissions per day and many of them come from people who frequently write for different news outlets. But it's worth a shot. They give you about a two week window to decide if they will print it. Sadly, my two weeks are up. So here it is: 

It may only be a few months old, but Ontario’s landmark Green Energy Act (GEA) legislation could soon find itself in hot water. Environmentalists and green energy advocates alike might very well choose to dispel such a statement amidst their victorious celebrations, but let us not ignore the political realities of the GEA. While much of the legislation’s content is not particularly controversial and quite popular, it faces pressure for a few key reasons.




The first such reason is cost. The government is allocating $5-billion over a three year period to the GEA, much of which will be put towards investment in the current electricity infrastructure. Investment in the system is absolutely necessary, but some might say that a few billion dollars in only a few years might be pushing it. Regardless of the appropriateness of the government spending, billions of dollars worth of investment in a new program will almost always breed critics. Furthermore, the significant conservation programs and hefty Feed-in-Tariffs that will spur renewable energy development – the other two fifths of the GEA budget – have left those in opposition to the act chomping at the bit, most notably Ontario’s Progressive Conservatives. The criticisms range from overvaluation of the conservation programs to the unfair market distortions that will be created by government subsidies, but it is clear that the GEA is not a political lovefest in Ontario.

Dalton McGuinty’s government could very well suffer from some of the GEA measures. This is what GEA proponents should really be worried about. It is not too surprising, as any large, progressive legislation is often fraught with political risk. From within the GEA itself, the risk stems from the centralized and streamlined approvals process for renewable energy projects that removes the autonomy of the local municipalities. While touted by its proponents as a mechanism of efficiency, this particular tool of the GEA could backfire as local opposition to green projects swells. Indeed, during a well-packed community meeting in October in Manvers, Ontario, a proposed wind farm was heavily scrutinized by the 500 strong crowd. But the criticism wasn’t just reserved for the wind project itself; the crowd, residing in a Liberal-controlled riding, took direct aim at the McGuinty government and its support for projects like this. Manvers is only one of a growing many places where the GEA will really touch some nerves.


The biggest risk lies within the factors the GEA has no control over. That is, the current state of affairs of Dalton McGuinty’s government. The E-Health scandal, high unemployment rates and a severely hindered economy have done little to raise the public confidence of the provincial government. Indeed, an unprecedented $25-billion move into the red could spell political disaster. Interestingly, this budget shortfall does not even account for the money expected to be doled out in the GEA. At best, several of the grand ambitions of the GEA will have to be revised or dropped outright for lack of funds. The next provincial election is not for another two years, but if a the PCs manage to regain power in Ontario, you can be sure that a good chunk of the GEA will be changed significantly, if not removed.

But the trouble for the GEA does not stop there. Its most vehement political supporter, Deputy Premier and Minister of Energy and Infrastructure, “Furious” George Smitherman, announced his plan to resign in March to run in Toronto’s mayoral race. If anything is proposed to happen to the GEA, he won’t be around to stop it. Eyeing the budget shortfall, some of his colleagues in Cabinet that he so passionately fought off when proposing the GEA will seek to cut up the more flexible and politically viable aspects of the act. Unfortunately, these pieces might be some of the most progressive.

The GEA is indeed a landmark decision and the Ontario government should be applauded for implementing it. The sweeping measures taken will help to ensure a beneficial and efficient transition to a green energy future for the province. But in today’s political and economic climate, nothing is completely written in stone. Take advantage while you can because the Green Energy Act might be a limited time offer.