From July 29-30, 2012, the Honourable Wayne Easter, P.C., M.P., Vice-Chair, led a delegation from the Canadian Section
of the Canada-United States Inter-Parliamentary Group (IPG) to the 36th Annual
Conference of the New England Governors and Eastern Canadian Premiers (NEG/ECP)
in Burlington, Vermont. The other members of the delegation were the Honourable Michel Rivard, Senator, Mr. John
Williamson, M.P., Vice-Chair, and Mr. Terrence Young, M.P. The delegation was accompanied by Mr.
Mohamed Zakzouk, Advisor to the Canadian Section.
THE EVENT
Through the NEG/ECP, which holds a conference
annually, 11 jurisdictions in New England and Eastern Canada (see the Appendix) share ideas, build on historic
ties, advance their interests
and encourage cooperation with the private sector. Over the years, the NEG/ECP
conference has addressed many topics of shared interest, including trade, the
environment, economic development, tourism, energy, fisheries and agriculture.
DELEGATION OBJECTIVES FOR THE EVENT
Canada and the U.S. New England states share a
mutually beneficial relationship. According to recent figures, more than
400,000 jobs in the six New England states rely on Canada-U.S. trade. Annual
merchandise trade between Canada and these states was recently valued at almost
US$25.1 billion: about US$7 billion was exported from these states to Canada,
while they imported more than US$18 billion from Canada. Recent data suggest
that, in a 12-month period, Canadians made more than 2.7 million visits to the
New England states and spent more than US$730,000, while residents of these
states made more than 1.2 million visits to Canada and spent about US$450,000.
The IPG aims to find points of convergence in
respective national policies, to initiate dialogue on points of divergence, to
encourage the exchange of information and to promote better understanding among
legislators on shared issues of concern. Members of the IPG’s Canadian Section
meet regularly with their federal counterparts and, in recent years, have
attended meetings of governors and state legislators. At these events, Canadian
delegates engage in conversations that help the Canadian Section to achieve its
objectives and that explain the nature and scope of the bilateral relationship.
Members of the Canadian Section of the IPG found the
2012 conference of the NEG/ECP to be a valuable opportunity to discuss the
numerous opportunities for Canada and the six New England states to collaborate
on improving regional trade links, especially regarding energy and
transportation infrastructure. Feeling that members of the Canadian Section
were able to achieve their objectives for the event, the Canadian Section
intends to attend future annual conferences of the NEG/ECP to continue its work
in advocating Canadian interests in the New England states.
ACTIVITIES DURING THE EVENT
During
the NEG/ECP’s 2012 conference, a number of issues were addressed, including
regional trade relations, transportation and energy. In particular, the
following sessions took place:
·Building a Clean and Cost-Effective Future for
the Northeast: A Discussion with Governors, Premiers and Their Energy Policy
Experts
·New Vehicle Technology Opportunities
ØMass Commercialization of Electric Vehicles in
the Region: Benefits and Barriers
ØOpportunities and Challenges for Utilities
Meeting Electric Vehicle Demands
ØPublic Policies to Accelerate Electric Vehicle
Deployment
·Trade and Transportation: Keeping Transportation
Flowing Across a Secure Border
ØSetting the Stage: Why the Cross-Border
Transportation Network Matters
ØWhat is Currently Happening to Advance
Cross-Border Transportation Systems?
ØWhat More is Needed and What Can the Region’s
Governors and Premiers Do?
This
report summarizes the plenary and selected other discussions that occurred at
the conference.
BUILDING A CLEAN AND COST-EFFECTIVE ENERGY FUTURE FOR THE NORTHEAST: A DISCUSSION
WITH GOVERNORS, PREMIERS AND THEIR ENERGY POLICY EXPERTS
·Vermont aims to promote market-driven subsidies,
rather than traditional subsidies, for renewable energy development;
furthermore, Vermont and Rhode Island have adopted a feed-in tariff to help
finance renewable energy projects.
·Canada is a country of vast oil and gas
resources, and it produces substantial hydroelectric energy; Quebec is one of
the largest producers of hydroelectricity in the world.
·The Government of Quebec has improved its
relationship with First Nations significantly, particularly regarding energy
resource development.
·Quebec aims to produce 4,000 megawatts of wind
power by 2015, which would make it the second-largest producer of wind energy
in North America, after Texas.
·Vermont is committed to building small,
renewable and locally generated power.
·Vermont is interested in entering into energy
trade agreements with any Canadian province that is willing to provide
affordable renewable energy supplies.
·Maine supports smaller scale, and sometimes less
competitive, renewable energy resources.
·Nova Scotia is reducing its reliance on
coal-powered energy and is increasing its reliance on wind and natural gas
projects.
·Connecticut is interested in procuring the
lowest possible cost for its energy users, and is seeking regional partners to
help reduce energy prices in New England.
·Newfoundland and Labrador is a key producer of
renewable energy in eastern North America; the province believes that there are
many opportunities to strengthen energy trade links with U.S. states.
·Newfoundland and Labrador’s Lower Churchill
energy project is an asset to Eastern Canada and New England.
·The environmental assessment for Newfoundland
and Labrador’s Lower Churchill energy project has been completed.
·Prince Edward Island has significant wind
resources, and wind power comprises about 20% of the province’s energy supply.
·Prince Edward Island needs affordable
electricity; residents currently pay the highest electricity rates in Canada.
·New Brunswick supports large-scale hydroelectric
projects and believes that the province is an energy gateway for New England.
·Massachusetts is hoping for more coordination
among New England states regarding clean energy.
·It is important to not discriminate between big
and small hydroelectricity projects.
·Reducing the eastern region of North America’s
reliance on coal-fired power should be the main regional priority in terms of
energy planning.
·New England and Eastern Canada should consider
large renewable projects “as a region.”
·Hydroelectric resources are of particular
interest for the eastern region of North America, as these resources represent
a competitive advantage when compared to other states that have limited water
resources.
·Among private-sector investors, there is a
general assumption that a price on carbon will be enforced at some point in the
future.
·Consumers are seeking low energy prices and are
concerned about stability in those prices; renewable energy projects can
provide reasonable price stability over the long term, thereby providing an
alternative to the price volatility that has characterized fossil fuels.
MASS COMMERCIALIZATION OF ELECTRIC VEHICLES IN THE REGION: BENEFITS AND
BARRIERS
Brian Wynne, Electric Drive Transportation Association
·Electric vehicles drive smoothly and do not make
any noise.
·The percentage of people interested in
purchasing electric vehicles rises dramatically when it is possible to test
drive the vehicles.
·Vehicles have been electrifying for decades,
largely because electricity is a relatively more efficient energy source.
·Currently, there are more than 40 different
types of hybrid vehicles in the automobile market; hybrid vehicles have been
marketable for more than 10 years.
·Electric vehicles are flexible and can be
configured based on need; as a result, they offer opportunities to move people
and goods in new and innovative ways.
·Electricity is not a resource, but rather a form
of energy that can be created with a variety of different resources; as a
result, electric vehicles can be powered using diverse energy sources that can
be produced domestically.
·The foundational electricity infrastructure that
is needed to power electric vehicles is already in place, although charging
equipment is still not commonly available.
·Governments can facilitate the success of
electric vehicles by easing the permitting process for electric vehicle
infrastructure.
OPPORTUNITIES AND CHALLENGES FOR UTILITIES MEETING ELECTRIC VEHICLE
DEMANDS
Watson R. Collins III, Northeast Utilities
·Utilities have been planning and supporting the
evolving electric needs of consumers for more than 100 years.
·Plug-in electric vehicles provide a platform for
innovation and opportunities.
·Electric vehicles can contribute to the
emergency preparedness of communities; for example, such vehicles can provide a
source of power for homes when power outages due to storms or other emergencies
occur.
·It is important that utilities manage the
potential impacts of electric vehicles on the electric grid.
·Utilities are currently piloting different
approaches to encourage the use of electric vehicles.
Pierre-Luc Desgagné, Hydro-Québec
·There are three main challenges associated with
electric vehicles:
Øhigh cost;
Ølimited range; and
Øa lack of charging stations.
·An electric vehicle emits fewer greenhouse gases
than a new compact gasoline vehicle, regardless of how the electricity is
generated; furthermore, an electric vehicle that is powered by hydroelectricity
emits 215 times less greenhouse gases than the most efficient gasoline vehicle.
·On average, a vehicle spends the most time at
the driver’s home; as a result, electric vehicle service stations should be
primarily located in homes.
·According to a Mitsubishi electric vehicle pilot
project in Boucherville, Quebec, which had a customer satisfaction rating of
8.9 out of 10, electric vehicles have no start-up or performance issues in the
winter; furthermore, the majority of trips in the region could be made with
only one charge at home.
·Public electric vehicle charging stations
already exist in Canada.
·Private-public partnerships are favourable
business models for the electric vehicle industry.
PUBLIC POLICIES TO ACCELERATE ELECTRIC VEHICLE DEPLOYMENT
Alain Daneau, Quebec Ministry of Natural Resources
and Fauna
·Quebec’s vision for sustainable mobility
includes three major components:
Øplanning for sustainable mobility – for example,
by incorporating urban planning and mixed-use development strategies in
transportation planning;
Øshifting mobility patterns – for example, by
offering different transit options; and
Øimproving mobility – for example, by providing
more energy-efficient fuel and vehicle choices and promoting better car
maintenance.
·In order to transform the province’s automobile
market, the Government of Quebec is promoting technological innovation in the
transportation industry, raising awareness regarding sustainable
transportation, providing financial incentives for “cleaner” vehicles, and
ensuring that the province’s regulatory environment supports the development of
sustainable transportation products and infrastructure.
·Quebec’s objectives regarding electric vehicles
include:
Øraising awareness;
Øsupporting the switch from traditional vehicles
to electric vehicles; and
Øelectrifying public transit.
Daniel Esty, Connecticut Department of Energy and Environmental
Protection
·The key challenge to sustainable transportation
is to promote innovation and create a marketplace where new ideas can be
tested.
·It is important for governments to not “pick
winners” when it comes to different transportation options; the main focus
should be on clean vehicles, including electric vehicles, natural gas vehicles
and hydrogen vehicles, which may emerge as a viable option in the future.
·There is a need for publicly available
infrastructure to facilitate the marketability of electric vehicles.
·In general, governments should focus on
promoting a cleaner electricity generation mix.
·It is important to ensure the availability of
clean sources of energy to power the emerging electric vehicle market.
·Electric vehicles should be charged during
off-peak hours.
·The possibility of using electric vehicles to
power homes during on-peak hours is an attractive option.
·Due to the high cost of gasoline, electric
vehicles are currently less expensive than gasoline-powered vehicles.
SETTING THE STAGE: WHY THE CROSS-BORDER TRANSPORTATION NETWORK MATTERS
Brian Searless, Vermont Agency of Transportation
·New England and Eastern Canada provide crucial
market links between themselves as well as to the rest of Canada and the United
States.
·In 2011, the population in the New England
states and the Eastern Canadian provinces totalled 24.7 million, and the
region’s collective gross domestic product was $1.2 trillion.
·In 2011, cross-border trade between the New
England states and the Eastern Canadian provinces was valued at approximately
$23.9 billion; personal vehicle passenger crossings totalled 15.9 million,
while there were 1.3 million truck crossings.
·In the United States, national import and export
freight is projected to increase by 142% by 2040.
·A diversified, multi-modal transportation system
is essential for successful cross-border trade among the New England states and
the Eastern Canadian provinces; it is especially important to improve rail
connections in the region, since trade by truck is no longer sufficient.
·Cross-border trade corridors benefit U.S. states
and Canadian provinces beyond New England and Eastern Canada.
Paul Bingham, CDM Smith
·The health of the New England and Eastern
Canadian economies depends, in part, on cross-border transportation networks;
the transportation system is a crucial enabler of trade in Northeastern North
America.
·Canada and the United States are the world’s
largest trading partners; Canada is the most important market for U.S. exports,
followed by Mexico, and the United States is the most important market for
Canadian exports, followed by the United Kingdom, China and Japan.
·New England’s export growth is lower than the
U.S. average.
·The road network in New England and Eastern
Canada carries the majority of regional trade and passenger traffic; currently,
the network handles 14 million intercity passengers, and this demand is
expected to double over the next 20 years.
·Eastern Canada’s rail system has an east-west
orientation, rather than a north-south, cross-border orientation.
·Cross-border rail systems need to improve in
order to support future economic growth in the eastern region of North America.
·Funding and inter-jurisdictional coordination
are among the major policy challenges facing the expansion of cross-border
transportation networks between New England and Eastern Canada.
WHAT IS CURRENTLY HAPPENING TO ADVANCE CROSS-BORDER TRANSPORTATION
SYSTEMS?
David Moloney, Privy Council Office
·In February 2011, Prime Minister Harper and
President Obama issued a declaration on a shared vision for perimeter security
and economic competitiveness; the declaration called for the development of a
joint action plan.
·In December 2011, an action plan to implement
the Canada-U.S. shared vision was set forth and four key areas of cooperation
were identified:
Øaddressing threats early, and at or away from
the perimeter;
Øtrade facilitation, growth and jobs, including
the streamlining of the land border for legitimate trade and travel;
Øcross-border law enforcement, including efforts
to establish integrated border policies; and
Øcritical infrastructure and cybersecurity,
including emergency management initiatives.
·The shared vision for perimeter security and
economic competitiveness is meant to be a long-term partnership that will
transform border management, including concrete initiatives, clear timelines
and metrics to measure performance.
·Trusted traveler and trader programs as well as
improved wait-time technologies are among the initiatives that are being used
to improve Canada-U.S. border crossings.
Tom Ruth, Halifax International Airport Authority
·The large costs associated with crossing the
shared border between Canada and the United States affect North America’s
overall economic well-being and competitiveness.
·Leaders and legislators in Canada and the United
States must consider the costs and benefits of “thinning” the border,
particularly for small and medium-sized businesses, which play an important
role in regional economic development.
·There has been much progress regarding
cross-border trade facilitation in recent years; Canada and the United States
must continue their commitment regarding cross-border cooperation.
·The harmonization of baggage-screening
technology in Canadian and U.S. airports will improve international transit
times for passengers in both countries.
·Improving cross-border regional transportation
systems would result in economic benefits for both Canada and the United
States.
Respectfully
submitted,
Hon. Janis G. Johnson, Senator
Co-Chair
Canada-United States
Inter-Parliamentary Group
Gord Brown, M.P.
Co-Chair
Canada-United States
Inter-Parliamentary Group