"[The First Nations Clean Energy Business Fund]will encourage more first nations to become a part of B.C.'s energy future and drive investment in clean, renewable energy projects," B.C. Energy Minister Rich Coleman, after the fund was unveiled earlier this week.
The fund was first announced a year ago, as part of former premier Gordon Campbell's controversial Clean Energy Act. It was roundly dismissed at that time as insignificant. Aging has not improved the fund. It's still tokenism toward first nations who are anxiously looking for real partnerships in the multimillion-dollar clean-energy sector.
The Clean Energy Act drew considerable attention last year for stripping the BC Utilities Commission of much of its regulatory powers over hydro rates, independent power projects and major plans such as the Site C dam in northeastern B.C. A provision to have BC Hydro install interactive "smart" power meters in every home by the end of next year continues to be in the spotlight.
Less noticed was a commitment for a first nations fund. According to a government announcement this week, the fund "aims to promote increased first nation participation in the clean-energy sector" through revenue sharing from clean-energy projects, grants of up to $500,000 for first nations to invest in clean-energy projects and $50,000 to support first nations with feasibility studies or engaging with proponents of clean-energy projects.
In anticipation of the legislation last year, a government-appointed green-energy advisory task force had submitted 16 recommendations on partnerships with first nations and local communities.
The recommendations included giving priority consideration to first nations for independent power projects and when issuing new tenure to lands or waters for green-energy production. The task force called for the province to make a commitment to training programs and establish an equity fund to enable first nations and remote communities to be full participants in the developments.
The recommendations were not out of line with initiatives in B.C. and elsewhere. Ontario, two years ago, launched a $250-million fund to guarantee loans to aboriginal communities that would allow them to take equity participation in projects. Ontario also has an aboriginal energy partnership program that provides funds for feasibility studies, technical research and developing business cases. BC Hydro recently signed a revenue-sharing agreement for a transmission line that will cross Nisga'a First Nations land.
However, the B.C. government ignored 15 of the task force's 16 recommendations. The province also turned down a request from three aboriginal organizations and 47 first nations for further discussions before passing the legislation.
Judith Sayers, a former chief of the Hupacasath band in Port Alberni, has some experience in developing an independent power project. Her 300-member band is a majority partner in a $14-million, 6.5-megawatt project on China Creek that produces enough electricity to power 6,000 homes.
She described the fund as a good first step. "It is just not enough," she said. The government commitment of $50,000 for studies would cover only about 10 per cent of the development costs of a project. Grants of $500,000 for investments will also not buy much - the rule of thumb is an investment of $1-million is required to produce one-megawatt of power.
Several first nations will likely look to the fund to help them participate in projects. With plans to also use the fund for revenue sharing with first nations, the government may be building up impossible expectations.
The government says the $5-million is its initial contribution to the fund. If Mr. Coleman realistically wants to see the fund encourage more first nations to become a part of B.C.'s energy future and drive investment, he will have to make a significantly bigger commitment.