Regulator adds GHGs to Energy East scope

Industry decries move as out of place

CALGARY • The National Energy Board said late Wednesday it is expanding the review of the $15.7-billion proposed Energy East pipeline project to include upstream and downstream climate change impacts.

The regulator said it would also look at the market consequences of Canada’s expanding greenhouse gas emissions reduction targets to decide whether the pipeline will be needed. Energy East would carry 1.1 million barrels of crude per day from Alberta and Saskatchewan to refineries in Eastern Canada and an export marine terminal in New Brunswick.

The decision is a win for the environmental lobby and was immediately criticized by the pipeline industry, which argued climate change belongs in the public policy arena, not regulatory reviews.

The NEB said it expanded the scope of the review of Energy East and the related Eastern Mainline projects after receiving 820 responses to its call for input, including 700 form letters.

“Given increasing public interest in GHG emissions, together with increasing governmental actions and commitments (including the federal government’s stated interest in assessing upstream GHG emissions associated with major pipelines), the Board is of the view that it should also consider indirect GHG emissions in its NEB Act public interest determination for each of the projects,” the NEB said in a letter to proponent

The Calgary-based regulator previously excluded GHG impacts outside of those directly related to construction and operation of projects.

The original Energy East review was derailed in September 2016 after members of the regulatory panel overseeing the hearings resigned amid questions about a potential conflict of interest.