Making progress toward a truly integrated energy policy.

• Author: Wenig, Michael M.
• Position: Environmental Law

In August 2006, Alberta Energy released a new policy entitled "Alberta's Integrated Energy Vision" which has received sceptically raised eyebrows from the broad spectrum of reviewers with whom I've consulted. The scepticism is well founded but the document still holds promise for its recognition of the need to view energy policy from an integrated standpoint.

The Vision document starts with a brief background discussion, then provides a one sentence Vision Statement, a list and brief explanation of four pillars of the Vision, and a list of six principles for guiding efforts to realize the Vision. Read together, the Vision Statement and four pillars express a vision of Alberta as a global energy leader because of its abundant and diverse energy resources, and its considerable energy development expertise and competitive spirit.

This kind of vision may be good for generating enthusiasm among energy developers and the government officials who oversee them, but it begs the questions: what for and at what cost? The six principles answer these questions somewhat by addressing:

* the uses of energy revenue

* the distribution of the economic benefits

* opportunities for education, employment and other aspects of participation in the energy economy

* how energy development will be conducted in light of environmental health and safety concerns.

But the principles express objectives for these areas using adjectives--like "stewardship", "responsible", "fair,.... equitable", and "sustainable"--that are so broad they arguably provide no meaningful, practical guidance for regulatory and other important government decisions.

The rest of the Vision document attempts to tie the vision to Alberta's broader policies and identifies factors that place the province at an energy development crossroads. More importantly, the document purports to explain what is so "integrated" about the energy vision. This explanation starts with a definition of "integration" as treating energy projects and commodities as part of a "larger energy system" rather than on a "standalone basis" (p. 8).

This focus on energy systems is significant because it facilitates and encourages two useful outcomes: a more comprehensive or holistic valuation of the benefits and costs of different energy resources and energy development scenarios; and, consideration of the overall social objectives that all energy production activities are collectively supposed to serve. Energy production is often...