Pity

Pity the municipalities and rural communities that must follow the twists and contortions of the province and its renewable energy policies. No matter one’s position on energy and how it is generated, it is plain enough, after a decade of floundering, of spilling billions of dollars into investors’ and foreign conglomerates’ pockets and of changing rules every few months and with only increasingly expensive electricity bills to show for it—that, by every measure, Ontario’s adventure in green energy has been a disaster. Evident to all but those who choose not to look.

But surely the worst effects are being felt in rural Ontario— by communities and groups illequipped to combat ruinous government policy and underfunded to resist big developers that are eager, willing and financially motivated to obliterate opposition.

This week at Shire Hall will offer another foul-smelling exhibit.

First some context. Many renewable energy sources such as wind and solar energy are expensive—costing much more to produce than exisiting sources. More, even, than we pay on our electricity bills–though it is increasingly having an impact.

We are, however, desirous of cleaner forms of energy. The free market wouldn’t supply it—so government did.

Rather than build these renewable energy plants themselves, they paid others to do it. To entice investors and developers, they had to heavily subsidize them, with taxpayer money. It must have been shocking, even to the provincial government, just how much they would have to lavish upon these companies to persuade them to put their capital at risk in this scheme.

But now the province has their attention. Like the smell of blood to sharks, luxurious subsidies have attracted a sea of developers—each eager to feast on Ontario’s charity.

Roadblocks soon appeared, however. The electricity grid (transmission and distribution network) wasn’t built to manage unpredictable intermittent electricity generation from wind and solar energy. Environmental concerns were growing. And communities were resisting the industrialization of their rural landscape and skyline.

So in 2009 the Green Energy Act was devised and enacted to clear these roadblocks.

Communities and municipalities were removed from the decision-making. Places such as Prince Edward County no longer had input over where, and how many industrial wind turbines or vast tracts of solar panels would be constructed in their midst. Local government had become bystanders in their own community. Many council members resorted to working alongside environmentalists and community activists to combat these rogue provincial policies.

In 2012, the province relented—a bit. It devised a point system for renewable energy applications. Developers had to win support from the municipality, community or aboriginal group to win these points. More points meant it was more likely their lucrative deal would be approved. In this way, the province believed it would ensure that these massive, intrusive projects went only where they were welcome.

But it wasn’t long before developers figured out that if they put cash on the table, they could more easily win support from these groups and rural municipalities. (It also served to expose just how lucrative these deals were.) One developer offered this municipality $70,000 a year for 20 years in exchange for two points if council got on board with a proposed 100 acre solar farm.

Uneasy about simply trading cash for support, this municipality then spent the next few months developing a detailed policy articulating the criteria, including financial compensation and under which circumstances, it would grant these points to developers. The prerequisites were uniform, fair and provided a levelplaying field for all. It was approved just last year.

Now, the rules have changed again. Earlier this year, the province decided that large scale renewable energy projects would no longer be procured through the feed-in tariff program. Instead, developers would prepare competitive bids to win these contracts. It was an attempt to stem the heavy losses and rising costs of its energy policies.

In doing so, it has yet again changed the ground rules in rural Ontario. Again.

This week council will be presented with a legal opinion that suggest its prerequisites represent an “unlawful exercise of power by the municipality.” The developer, ArcStar Energy, will be before a committee of council on Thursday arguing that County council has neither the right or authority to extract fees or charges from renewable energy projects in this community.

The solar developer no longer needs or wants municipal support in the form of two points. They need only to lower their costs to ensure a successful bid. Certainly, one way to do this is to jettison any municipal participation in the income stream.

The legal opinion presented by the developer cautions the municipality that it is “improper to frustrate the mandate of the renewable energy program” and risks “challenges to the legality of the municipality’s actions.”

In simple language, the developer is urging the municipality to drop its fees and charges, or else it will be sued.

Twenty four months ago, developers were offering cash for support of their project; this week another developer is threatening legal action if Council asks.

These developers use and abuse the municipality’s roads and bridges—paying little heed to local rules and regulations. They pay a pittance in the form of municipal taxes. And now they are threatening to use the courts to cut the municipality out of the income stream.

They are more agile and possess deeper pockets than small communities like this one. Once again, Shire Hall has been made a bystander in its own community. While others profit.

rick@wellingtontimes.ca