Protecting Communities and Individuals When Siting a Nuclear Waste Disposal Facility

Elizabeth Brubaker
Borealis Energy Research Association on behalf of Energy Probe
February 28, 1996

Part 3 of Energy Probe’s Submission on The Adequacy of Atomic Energy of Canada Limited’s Environmental Impact Statement on the Concept for Disposal of Canada’s Nuclear Fuel Waste. Submitted to the Federal Environmental Assessment Review Panel.

Introduction

As part of its review of Atomic Energy of Canada Limited’s Environmental Impact Statement on
the Concept for Disposal of Canada’s Nuclear Fuel Waste (AECL’s EIS), Energy Probe commissioned Borealis Energy Research Association to examine approaches to siting. In Part I of Energy Probe’s submission, dated July 28, 1995, we addressed the adequacy of the EIS. In this paper, Part III of Energy Probe’s submission, we address the merits of the opinions and conclusions of the EIS and recommend alternatives.

A successful siting process will be one that works and is fair. The process proposed by AECL, which excludes many affected parties from decision making, meets neither requirement. We propose alternatives that will help shield communities and individuals from the costs and risks of proposed facilities, making the process more equitable and increasing its prospects for success. To protect communities, we recommend obtaining informed consent from all potentially affected communities; to protect individuals, we recommend preserving common law property rights.
Protecting Communities: The Importance of Identifying and Consulting All Affected Communities

In Procedures for Public Hearings, The Environmental Assessment Panel poses a key question: “Who would be selected to participate substantially in decision-making, and how?” More generally, the panel promises “to examine and develop criteria by which . . . acceptability should be evaluated.”

AECL has contributed little on the subject of who, beyond a host community, should participate in decision making. Focussing on obtaining a host’s acceptance of a proposed facility, it has remained vague about the roles of other potentially affected communities. It has neither defined such communities nor specified the nature or extent of their participation. It has merely stated, “Potentially affected communities that are not potential host communities would establish with the implementing organization methods for consultation that would provide opportunities for their views to be taken into account in decision making.”
Experience with voluntary siting processes in both Canada and the United States points to the importance of broadly defining affected communities and of gaining acceptance from all of them. Agencies siting controversial facilities have generally defined affected communities too narrowly. While they have sought volunteer hosts, they have rarely made sure that neighbouring communities or those along transportation routes also benefited from and supported their proposals. The resulting conflicts between potential host communities and their neighbours have frequently poisoned, or derailed, the siting processes.
Communities in Conflict

One study of low-level radioactive waste disposal in the United States, Canada, and Europe referred to “the ‘spatial differentiation’ of opposition to repository siting plans.” Local communities, which are more likely to gain economically from disposal sites, may welcome proposals that surrounding regions, which are less economically dependent on the projects and less likely to be compensated for associated risks, oppose.

Examples of such “spatial differentiation” abound. In the U.K., consultations about the siting of low-level radioactive waste have pitted supportive host localities against opposing surrounding regions. Likewise, in Alberta, while 77 per cent of the voters in Riley would have accepted a hazardous waste facility, a majority of the residents in the surrounding county voted against the proposal, discouraging the province from continuing to seek a site there. Attempts to site low-level radioactive waste in Nebraska have met with similar divisions, with the village of Butte, the beneficiary of a compensation package, supporting the proposal and neighbouring communities and the surrounding county registering strong opposition. In Tennessee, both the City of Oak Ridge and the County of Roane supported hosting a proposed temporary storage facility for high-level radioactive waste, while the state opposed the plan.

The host communities that get financial benefits in exchange for accepting hazardous facilities are not necessarily the communities that bear the various costs of the facilities. Facility impacts may be sufficiently widespread to affect people in many jurisdictions. But even narrow impacts may affect neighbours more than hosts: Communities frequently locate hazardous facilities near their borders, subjecting those in other jurisdictions to their effects. In such cases, those bearing considerable economic, environmental and social costs may have had no power over the siting of the facility.
Siting Low-Level Radioactive Waste in Ontario

Ontario’s low-level radioactive waste siting process exemplifies the problems that result when potentially affected communities do not participate in decisions that may affect them. In September 1995, over 72 per cent of the voters in a Deep River, Ontario, referendum approved an agreement-in-principle to accept low-level waste from Southern Ontario. Deep River Council had negotiated a benefits package in return for agreeing to take the waste. Job security headed the council’s list of demands: It would accept the waste only if the federal government agreed to maintain 1995 employment levels at AECL’s nearby Chalk River Nuclear Laboratories for 15 years. The council also demanded $8.75 million in economic diversification funds.

Both Deep River residents and neighbouring communities were deeply split on the issue of whether the proposed waste facility would benefit or harm them. The community liaison group for the third phase of the siting exercise recommended opting out of the process. In 1994, its successors resigned en masse, with the group’s chairwoman complaining of “deceit and manipulation” in the siting process.

Nearby communities-especially those downstream and downwind of the proposed facility who would likely suffer from any toxic releases from the site and subsequent contamination of the Ottawa River, along with those who were concerned about transportation risks-also expressed considerable opposition to the proposal. In 1994, when five nearby municipalities placed questions about the proposal on municipal election ballots, 80 per cent of the voters opposed the proposal. Several municipal councils also passed resolutions condemning the proposal.

Deep River Council’s decision to exclude neighbouring communities from its 1995 referendum exacerbated local ill will. A former community liaison group representative for the townships complained bitterly about a process that defined community by map boundaries. In denying its neighbours the right to vote in the referendum, she went on, Deep River Council treated them as second class citizens.

Indeed, a number of Deep River’s neighbours continue to criticize the referendum process. Some, feeling disempowered by the process, despair of making a difference and have no plans for further action. Others, however, are calling for a full federal environmental assessment of the proposed facility-a course of action that could delay the project considerably.

The discord created by Deep River’s approach illustrates the importance of adequately defining an affected community. The siting process violated the fundamental principle that those most likely to be affected by a proposed project should have the greatest say in whether or not it goes ahead. Perversely, only people living upwind and upstream from the proposed facility had the opportunity to vote in the deciding referendum. Those most likely to be adversely affected by the facility-those living downstream and downwind from it, or those living along transportation routes-had no voice.
Siting a Monitored Retrievable Storage Facility in New Mexico

The siting process for the Monitored Retrievable Storage (MRS) facility for high-level radioactive waste in the United States similarly illustrates the importance of involving all affected communities in controversial siting decisions. The federal MRS negotiator sought only a willing host community; although he promised to consult surrounding jurisdictions, he did not require their approval. Furthermore, the Department of Energy awarded study grants only to those interested in hosting a facility; it made no monies available to those who might be affected by a facility hosted by another community.
After the Mescalero Apache Tribe applied for an MRS study grant in 1991, it began consultation with the larger New Mexico community. In the following months, the Mescaleros consulted the governor’s office, a state representative, and members of the New Mexico Congressional delegation. They arranged an informational briefing for representatives of three nearby counties and three villages, and meetings with local economic development groups.

While consulting affected parties may have led to a greater understanding of the proposed project, it did not ensure that those consulted were willing to accept the proposed risks. As the federal MRS negotiator noted, “Public understanding does not automatically mean public agreement.” Serious concerns about the Mescaleros’ plan existed at all levels of government. New Mexico’s governor, its state legislators, and its national representatives and senators adamantly opposed the project. Local politicians worried that their tourism-dependent economies would suffer if the project went ahead. In 1991, the Lincoln County Commission, representing the county surrounding the Mescalero reservation, voted to oppose the siting of an MRS facility in their county.

The Mescaleros promised that those affected by the proposed facility would benefit. A Tribal Council representative explained, “fundamental fairness dictates that every community which would be impacted by an MRS located on Mescalero lands is not only entitled to be compensated for those impacts, but should also share in whatever benefits might be negotiated.” He did not limit beneficiaries to immediate neighbours: “Residents of the state of New Mexico deserve to reap tangible rewards from an MRS sited in their state.”

But the Mescaleros didn’t back up their promises of benefits with promises of control. They didn’t offer their neighbours the opportunity to negotiate their own benefits, or to veto a project that, in their estimation, left them worse off. In the end, only tribal members would be able to vote in the Mescaleros’ referendum.

Disempowered by the siting process, those fearing they would be affected by the MRS turned to the political process. Opposition from New Mexican politicians became so strong that in 1993 the Senate voted to prohibit funding for the next phase of feasibility studies. The official siting process soon fell apart, to be replaced by private negotiations between the Mescaleros and 33 nuclear utilities. In 1995, the Mescaleros voted to go ahead with the project. The tribe prevented those opposed from further obstructing the siting process by invoking tribal sovereignty.
Siting High-Level Radioactive Waste in Nevada
While not a voluntary process, the U.S. Department of Energy’s (DOE’s) efforts to site a permanent high-level nuclear waste repository at Yucca Mountain in Nevada again demonstrate the clashing interests of various affected communities. The strongest opposition comes not from the local officials who are directly involved in negotiations but from those who are further removed-those with less power to influence the terms and conditions of any arrangement.

Local communities’ support or opposition to the Yucca Mountain proposal reflect, in part, their potential to benefit financially from it. Many neighbours to the west, who will likely profit from the facility, approve of it. Their counterparts to the east, who are too far away to earn income from the repository, are more suspicious of it.

The greater Nevada community is concerned about the negative effects of a repository on the state economy; polls indicate that over 75 per cent of Nevadans strongly oppose the proposed facility. Many professional and trade associations have also registered their opposition. And virtually all political bodies-including Nevada’s governor, the state legislature, the state’s congressional delegation, and most local governments-are opposed. Their concerns have disrupted the siting process. The State of Nevada, for example, at one point refused to issue necessary licences, leading to a DOE court challenge.
Empowering All Communities of Interest

One principle behind voluntary siting is the inherent value, in a democratic society, of informed consent. The principle surfaced a number of times in AECL’s treatment of the social aspects of nuclear fuel disposal, particularly in its discussions of ethical decision making. AECL proposed an ethical framework that includes the principles of voluntarism and shared decision making-principles that, in its words, “incorporate . . . the achievement of informed collective consent.” But the principles of voluntarism and informed collective consent should not be limited to a host community. On the contrary, they require that a facility, before it may proceed, earn broad support from whomever it may affect, regardless of their political jurisdiction. Whenever possible, risks, whether to immediate neighbours, to those living downwind or downstream of a proposed facility, or to those living along transportation routes, should be voluntarily assumed.

To ensure that risks are accepted willingly, it is necessary to identify all potentially affected communities and to invite all such communities to vote on, and support, the proposed project. Only if majorities in all affected communities support the project should it go ahead. Requiring separate votes will avoid problems associated with a larger community “selling out” a smaller or less powerful community.

As political boundaries do not determine who will be adversely affected by a proposal, they should not determine who falls within the voting communities. Instead, the boundaries should reflect “communities of interest,” or groups of people who are likely to experience similar impacts. Communities of interest need not be mutually exclusive: An affected individual could fall within a number of communities of interest, and be eligible to vote with each of those communities.
In order to obtain the approval of all communities of interest, the implementing organization will have to approach each one to ensure that those who may be affected will on balance benefit from the project. Defining real communities of interest will make it easier for the implementing organization to negotiate appropriate compensation, and to ensure that those bearing specific risks will enjoy comparable benefits. The most directly affected communities will insist on effective mitigation and generous benefits; less adversely affected communities will have more modest demands. Ultimately, if a majority in any community of interest rejects a facility, if it cannot be persuaded through enhanced mitigation or increased compensation to change its mind, and if no alternatives exist that will spare it from impacts and risks (therefore eliminating its right to vote), the project should not go ahead. Such opposition indicates that the costs or risks remain unacceptably high.

The definition of communities of interest will inevitably be somewhat arbitrary. The federal or provincial government could identify communities of interest, or communities could present themselves to a regulatory body. Alternatively, the implementing organization could propose a definition that would then be subject to an environmental assessment. Whatever the method, if approached with honesty and fairness, the definition used thus far in voluntary siting processes can be much improved. Possible communities of interest could include: close neighbours; those within a certain radius; those living downwind or downstream of the facility; or those within one or more “risk perception shadows”-areas influenced by public awareness of the facility and by the number, directness, significance, and duration of any impacts.

Those living along transportation corridors should also make up a community of interest. AECL has not proposed applying the principle of voluntarism to this group. But its members, subject both to ongoing nuisances and to the threat of accidents, are clearly potentially affected by a facility. Transport Canada noted that the transportation of nuclear waste will increase the current risk level and potentially affect the safety of those living along transport routes. According to the author of one book about nuclear waste facility siting, “environmental risks in the transportation of hazardous wastes are at least as great as those in storage and disposal.” “Accidents,” he continued, ” are an inevitable feature of any system of transportation. On average, trucks [in the United States] are in accidents once every 400,000 miles of travel. Between 1971 and 1985, trucks carrying radioactive materials were in 167 transportation accidents (mostly on highways) involving 2,602 packages of radioactive materials; a total of 67 packages experienced some release of their contents.” Rail accidents involving spills of dangerous goods also occur frequently.

Past siting experiences suggest that to satisfy the potentially affected transportation community the implementing organization may have to agree to strict procedures regarding schedules, training, maintenance, rest stops, or weather conditions. It may have to assist communities in upgrading fire or safety services. Or it may have to financially compensate those living along transportation routes, as Browning-Ferris Industries has done at its Ridge Landfill near Blenheim, Ontario, or as the Ontario Waste Management Corporation considered doing for those living along access routes to its hazardous waste facility.

Protecting Individuals: The Importance of Preserving Property Rights

The siting process proposed above, while protecting the rights of the majority in all communities of interest, does little to protect minority rights. Only a purely voluntary system-one in which an implementing organization would have to gain permission from every potentially affected individual-would perfectly protect all individuals. But such a system would likely be unworkable in the context of nuclear waste, given the virtual certainty of some irreconcilable opposition to any proposal regarding the use, transport, or disposal of radioactive materials.

Over the centuries, our political and legal systems have evolved to accommodate both majority and minority rights. While our political tradition promotes democratic decision making (decision making by majorities) our common law tradition emphasizes individual rights. Empowered with common law property rights, those in the minority may protect themselves against abuses by the majority.

In siting a nuclear waste facility, it will be essential to protect the interests of those who were wrongly excluded from the communities of interest voting on the proposal, those who voted against the proposal, and those who did consent but who may experience unforeseen-and thus uncompensated-problems. The best way to protect such individuals is to explicitly protect their common law property rights.

If those affected by the transportation or disposal of nuclear waste maintain their traditional common law property rights, they may be able to obtain injunctions against hazardous operations or damages for injuries suffered. They may be able to take action not only against actual harms but also against potential harms, or risks.

For centuries, courts have heard cases about risky activities that have not yet harmed anyone. They have often determined that merely exposing others to risk constitutes a nuisance which should be enjoined (i.e. stopped by a court injunction), or if it has already occurred, compensated or punished.

But courts have disagreed over what constitutes an actionable risk. Some have required proof of actual, immediate danger. Others have required proof of a likelihood of harm. Still others, particularly in the United States, have ruled that whether the disputed activity is actually dangerous or likely to be dangerous is irrelevant: What matters is whether the public believes it to be dangerous. Such courts have treated perceived risks as nuisances that should be enjoined on the grounds that they frighten neighbours, interfere with their quiet enjoyment of their property, and lower their property values.
Quia Timet Injunctions
Canadian courts tend to issue injunctions against proposed or ongoing activities if they pose a real and substantial risk of harm, if the harm would be irreparable, and if a monetary payment could not adequately compensate for the harm. A plaintiff who sues quia timet (“because he fears”) must demonstrate that his apprehension is well founded, or reasonable; unfounded apprehension does not justify an injunction.

In their decisions, Canadian courts often repeat the description of the quia timet injunction found in Attorney-General v. Corporation of Manchester, an 1893 case regarding a proposed smallpox hospital in Manchester, England. The judge in that case specified that “the Court does not require absolute certainty [that injury will arise] before it intervenes; something less will suffice.” He explained, “The principle which I think may be properly and safely extracted from the quia timet authorities is, that the plaintiff must shew a strong case of probability that the apprehended mischief will, in fact, arise.” In 1918 the Supreme Court of Canada approved this principle; contemporary courts continue to follow it.

The judge deciding Attorney-General v. Corporation of Manchester referred to a number of quia timet precedents. Several involved activities that posed public health risks. In one case, for example, a court indicted a woman who carried her smallpox-infected son on a public highway. Other quia timet precedents cited in the Manchester case involved the risk of explosion or fire. Neighbours, fearing that such events would cause them irreparable injury, convinced the courts to prevent them from occurring.

When considering quia timet injunctions, courts often weigh both the probability and the consequences of the apprehended danger. In the often cited Earl of Ripon v. Hobart, one judge noted the practicality of “balancing the magnitude of the evil against the chances of its occurrence.” The law, the judge went on, will “provide against a somewhat less imminent probability in cases where the mischief, should it be done, would be vast and overwhelming.”
Accordingly, if the injury feared were extensive, the court would be more likely to issue an injunction: “[T]he only means of attaining certainty, amidst the discrepancy of learned opinions, is actual experience. If the waiting for that might, by any proximate possibility, occasion such irreparable and extensive damage as some of the witnesses speak of, the inducement would be strong to grant an injunction in the meantime.”

As the above passage suggests, a consideration of the consequences of a threat materializing includes an assessment not only of the magnitude of the harm but also of its reparability. A British judge explained in 1974 that an injunction would not be premature if probable damage could not be prevented or repaired at a later date. The judge cited an earlier decision to that effect: “[I]f the damage is not proved to be so imminent that no one can doubt that, if the remedy is delayed, the damage will be suffered, I think it must be shown that, if the damage does occur at any time, it will come in such a way and under such circumstances that it will be impossible for the plaintiff to protect himself against it if relief is denied to him in a quia timet action.” Another judge summed it up this way: “I think the origin of quia timet may be an illustration of the rule that prevention is better than cure, and in a case of this kind the cure may be uncertain.”
Injunctions against Perceived Risks

Many U.S. courts have pursued an even tougher line of reasoning about threatened harms-one that treats perceived risks as actual harms, either because they interfere with people’s quiet enjoyment of their property or because they reduce property values. This approach, epitomized by a series of decisions made by the Supreme Court of Washington, favours those who fear the adverse effects of proposed developments.

In a 1910 case, Everett v. Paschall, the Supreme Court of Washington issued an injunction against a small tuberculosis sanitarium in a residential neighbourhood of Seattle. Although medical science insisted that a well-run sanitarium posed no threat, the public feared infection. The dread inspired by the facility disrupted its neighbours’ “mental quiet,” interfering with their comfortable enjoyment of their property. The facility also reduced their property values.

Arguments that the public’s fear was “unsustained by science” did not move the court. In one judge’s words, “The theories and dogmas of scientific men, though provable by scientific reference, cannot be held to be controlling unless shared by the people generally.” He explained, “we question our right to say that the fear is unfounded or unreasonable, when it is shared by the whole public to such an extent that property values are diminished. The question is, not whether the fear is founded in science, but whether it exists; not whether it is imaginary, but whether it is real, in that it affects the movements and conduct of men.”

The judge also acknowledged the reasonableness of the public’s safety concerns. Even careful management could not ensure security: “[T]he security of the public depends upon proper precautions and sanitation, which may at any time be relaxed by incautious nurses or careless or ignorant patients.”

The court concluded that the sanitarium constituted a nuisance. Citing the ancient maxim, “use your own property so as not to harm another’s,” it ordered the facility to shut down.
In its decision, the court referred to a number of other cases in which activities provoking fear-substantiated or not-had been deemed nuisances. In one, Stotler v. Rochelle, the Supreme Court of Kansas issued an injunction to prevent a cancer hospital from opening. A neighbour had argued that the hospital would emit offensive smells, threaten public health and reduce property values. The court agreed that the hospital would constitute a nuisance. In its words, “In the present state of accurate knowledge on the subject, it is quite within bounds to say that, whether or not there is actual danger of the transmission of the disease under the conditions stated, the fear of it is not entirely unreasonable. . . . The question is not whether the establishment of the hospital would place the occupants of the adjacent dwellings in actual danger of infection, but whether they would have reasonable ground to fear such a result, and whether, in view of the general dread inspired by the disease, the reasonable enjoyment of their property would not be materially interfered with. . . . However carefully the hospital might be conducted, and however worthy the institution might be, its mere presence, which would necessarily be manifested in various ways, would make the neighborhood less desirable for residence purposes, not to the oversensitive alone, but to persons of normal sensibilities.”

In Baltimore v. Fairfield Improvement Co., also referred to in Everett v. Paschall, a Maryland court similarly enjoined a family from housing a leper, citing the public’s terror and dread of leprosy. It explained, “There are modern theories and opinions of medical experts that the contagion is remote, and by no means dangerous; but the popular belief of its perils . . . cannot, in this day, be shaken or dispelled by mere scientific asseveration or conjecture. It is not, in this case, so much a mere academic inquiry as to whether the disease is in fact highly or remotely contagious, but the question is whether, viewed as it is by the people generally, its introduction into a neighborhood is calculated to do a serious injury to the property of the plaintiff there located.”

In the intervening years, courts have both followed and criticized the decision in Everett v. Paschall. Courts have cited it when contemplating a variety of nuisances, including a cemetery, a public beach, a trade school, and a sewage lagoon.

In 1922, the Supreme Court of Washington issued an injunction against a proposed hillside reservoir that could have menaced nearby homes. The court found that the potentially affected property owners had a “reasonable apprehension of danger.” Those complaining, it explained, were “men and women who, in the ordinary business of life, are not to be charged as victims of hysteria, nor ready dupes of conjectural and imaginary fears, having a very real and present apprehension that their lives and properties will be jeopardized by the hanging of this modern sword of Damocles above their heads, and that fear is bolstered by the testimony of expert witnesses, and confirmed by the common sense of any one to whom the facts come. It does not take the testimony of experts, although that was produced, to advise one that the proposed structure would cause a most serious depreciation of property values within the affected area. It is an obstruction to the free use of property as it interferes essentially with the comfortable enjoyment of life and property. It is a nuisance, for it annoys, injures, and endangers the comfort, repose, health, and safety of these respondents and renders them insecure in life and the use of their property.”

In determining whether the reservoir posed an enjoinable risk, the court examined both the probability of an accident occurring and the consequences of such an accident. While experts differed on whether a large embankment would successfully impound the water, it was clear to the court that, should an accident occur, not only property but also lives would be in danger. In the words of the Chief Justice, “If the breaking of the proposed reservoir would probably result in comparatively small damage and no loss of life, I would not demand proof of its safety with a high degree of certainty; but, in view of what now seems to me would be the appalling result of such breaking, I would want the necessity of its location there, and its safety, to be proven beyond all doubt, before withholding the injunctive relief prayed for.”
In a 1946 decision prohibiting the establishment of a psychiatric institution in a residential neighbourhood, the Washington Supreme Court affirmed a lower court’s decision that specialists’ disagreement about the threats posed by such operations validated neighbours’ fears. “If,” it repeated, “there is this difference of opinion among those skilled in the profession, can this court say that the fear expressed by a layman for his safety and that of his family is unfounded or imaginary?” Occasioning such fear and reducing nearby property values, the institution constituted a nuisance. In order to prevent it from depriving “property owners of that repose and comfortable enjoyment of their homes to which they are entitled,” it should be enjoined.

Many recent cases about perceived risks have pertained to the transportation or disposal of hazardous wastes. One 1977 case involved a chemical waste disposal site in Wilsonville, Illinois. The host community, fearing that the site was unsafe even though it had acquired necessary permits from the Environmental Protection Agency, went to court and asked for an injunction.

The trial court determined that the site constituted both a present and a prospective nuisance. Although it acknowledged the need for hazardous waste disposal, it noted that such need could not justify the creation of a nuisance: “[N]uisance cannot be justified on the ground of necessity, pecuniary interest, convenience or economic advantage. . . . [W]here disposal of wastes create a nuisance said disposal site may be closed through legal action.” The court granted an injunction against the site’s operation, and ordered its owners to exhume and remove the toxic waste that had already been buried and restore the site.

Several years later the Supreme Court of Illinois upheld the lower court’s decision. The court confirmed that an injunction could be granted against the threat of harm-a prospective nuisance-where harm is highly probable. The waste disposal site in question could, under a number of scenarios, contaminate neighbouring air, water or ground. “A court does not have to wait for it to happen before it can enjoin such a result. . . . Under these circumstances, if a court can prevent any damage from occurring, it should do so.”

In a concurring opinion, one judge suggested that an injunction would be called for even if contamination were not dangerously probable: “[T]here are situations where the harm that is potential is so devastating that equity should afford relief even though the possibility of the harmful result occurring is uncertain or contingent. The Restatement’s position applicable to preventative injunctive relief in general is that ‘[t]he more serious the impending harm, the less justification there is for taking the chances that are involved in pronouncing the harm too remote.’. . . If the harm that may result is severe, a lesser possibility of it occurring should be required to support injunctive relief. . . . Although the ‘dangerous probability’ test has certainly been met in this case, I would be willing to enjoin the activity on a showing of probability of occurrence substantially less than that which the facts presented to this court reveal, due to the extremely hazardous nature of the chemicals being dumped and the potentially catastrophic results.”

Maximizing the Availability of Injunctions in Canada

It is difficult to predict how-or even whether-the American court decisions discussed above could affect the rights of Canadians living along waste transportation corridors or near a nuclear waste disposal site. Historically, American courts have greatly influenced their Canadian counterparts; although not binding, their decisions have often been persuasive. Canadian courts continue to cite American cases in their decisions, especially when they have no Canadian or British precedents to look to.

If Canadian courts do adopt American thinking on perceived risks, the transport and storage of nuclear waste could be prime candidates for the application of the principles. Canadians perceive nuclear waste to be an extremely risky material. In one 1992 survey, 42 per cent of the men surveyed and 54 per cent of the women surveyed considered nuclear waste a high risk to the public. “Nuclear power and nuclear waste rank at the top of perceived personal health risks even when respondents live in British Columbia or the Prairies where nary a nuclear generator exists.”

AECL’s study of the social aspects of nuclear waste disposal confirmed the public’s widespread fear:

[M]any members of the public view nuclear waste as uniquely hazardous and difficult to handle. The risk associated with it is seen by some people to be absolute rather than relative, and some hold the view that unknown catastrophic events are somehow inevitable. . . . Researchers who conducted a word association test in the United States on the words “nuclear waste repository” found that the most frequent single associations were dangerous, danger, death and pollution. In addition, there were a large number of images referring to war, annihilation, weapons, and things military. In short, the responses revealed pervasive dread, revulsion, and anger.

AECL later added that “Canadians feel personally at risk, no matter where they live, from nuclear waste more than from any other health hazard.”

Scientific opinion regarding the risks associated with nuclear waste is more divided than is public opinion. If courts demand proof of a substantial risk of harm before issuing injunctions, trials will inevitably become battlegrounds between conflicting experts and studies. In contrast, if courts need only be convinced of a general public fear of nuclear waste before ruling against its transport or burial, plaintiffs will have a far easier time proving their cases.

Regardless of the standard that prevails (regardless of whether courts enjoin perceived risks or scientifically proven risks), as long as those adversely affected retain their common law property rights, they will have a better chance of enjoining land uses that constitute nuisances than they otherwise would. There remains, however, a major impediment to obtaining injunctions against public works.

AECL has not proposed, nor has the panel or government chosen, an “implementing organization” for a nuclear waste disposal project. We therefore do not yet know who would construct and operate transportation and disposal facilities. If the federal or provincial governments were to assume that role, those affected by the facilities would be unable to obtain injunctions against them: Courts issue injunctions only against private parties, not governments or their agents.

In contrast, if the implementing organization were based in the private sector, those affected by its activities could have access to the full range of common law remedies. Private proposals for nuclear waste disposal have been floated in the past, both in the United States and, to a lesser extent, in Canada. New Mexico’s Mescalero Apaches are negotiating private agreements with utility companies regarding a Monitored Retrievable Storage facility on their land. Similarly, the Meadow Lake Crees’ proposal to dispose of nuclear waste in northern Saskatchewan has been described as “a fully privatized spent fuel disposal system opportunity.”

But even private projects, if government-authorized, may be immune from injunctions. Statutes and regulations override the common law. A statute authorizing a party to take a specific action also authorizes all inevitable consequences of that action, whether or not they would otherwise be permissible. Therefore, if one party damages others as an inevitable result of exercising its statutory authority, its victims don’t automatically have recourse to common law injunctions; instead, they have recourse to the procedures or remedies laid out in the statute that has authorized the damage. Only if the statute explicitly so provides do they maintain their common law rights.

Federal and provincial legislators must therefore ensure that statutes and regulations regarding nuclear waste disposal don’t leave those affected without recourse to injunctions to prevent harm. They must permit activities only on the condition that they do not violate others’ property rights. When wording laws and regulations, they must specify that nothing in them legalizes nuisances or other unlawful acts.

If those adversely affected do retain their rights to injunctions, they will have considerable power over proposed transportation routes and disposal facilities. Under a strict property rights regime, the courts might consider either element to be an enjoinable nuisance. If so, the implementing organization could proceed only with its neighbours’ full approval. Facilities that did proceed would thus be not only “acceptable” but also accepted.
Damages or Compensation for Harms or Risks
If injunctions are unobtainable, damages would be the common law remedy available to those adversely affected by the transportation or disposal of nuclear wastes. While governments and their agents are immune from injunctions, they are not exempt from ordinary tort liability; courts can therefore assess damages against them if their activities harm others or put them at risk. As noted above, those authorized to construct public works may or may not be immunized from liability for the inevitable results of their activities, depending on the wording of the authorizing statute. Again, it is essential that the legislation authorizing public works specify that it is not authorizing any nuisances, and that those adversely affected by the works retain their common law remedies. If the legislation does permit activities that would otherwise be considered nuisances, against our recommendations, it should at least specify that those affected acquire broad compensation rights.

Many court cases about compensation have been launched by people who have had some of their land expropriated for public works, or who live in the vicinity of such works. If part of someone’s property is expropriated, the value of the remaining (non-expropriated) property may decline. The owner may obtain compensation for “injurious affection” caused by the expropriation itself or by the actual or anticipated use of the expropriated land. In some cases, others living near a public work may also obtain compensation if its construction interferes with their property rights or decreases the value of their land. Neighbours of highways, hospitals, fire stations, sewage lagoons, airports and other “obnoxious” land uses frequently fall into the latter category.

In Toronto v. J. F. Brown Co., for example, the Supreme Court of Canada ordered the city to compensate a store owner for a decline in the value of his property resulting from the construction and operation of public lavatories nearby. As one judge explained, “the presence of such conveniences makes the property less desirable from the point of view of possible purchasers and lessees, and therefore diminishes its selling and letting value.” Since the statute authorizing the project didn’t specify that those affected retained their rights to common law remedies, the owner couldn’t seek an injunction or traditional damages for nuisance. He could, however, claim compensation for injurious affection.

Neither federal nor provincial expropriation acts guarantee full compensation for injurious affection by the construction and use of public works to those whose land has not been expropriated. The federal act includes no such provisions; many provincial acts limit compensation to the damages caused by the construction, rather than the operation and maintenance, of public works. If the specific statutes governing a public work do not contain compensation provisions, the inadequate provisions of the general expropriation acts apply by default. To avoid disempowering potential victims, it is therefore essential that laws regarding the transportation and disposal of nuclear waste provide for compensation for both the construction and the use of any facilities.
Damages for Perceived Risks
In a number of recent U.S. cases, courts have awarded damages to landowners who, after partial expropriations, have been left with land of reduced market value, thanks to the public’s fear of the use to which the expropriated land would be put. When deciding whether or not to compensate for diminished values resulting from fear, courts have disagreed over how reasonable that fear must be, with some courts requiring a rational basis for the fear and others completely disregarding the fear’s reasonableness. Texas Electric Service Company v. Nelon exemplifies the former approach, while Santa Fe v. Komis illustrates the latter. Both cases addressed the transportation of nuclear waste.

In 1975, Texas Electric Service Company acquired an easement on a strip of Mr. and Mrs. Burlyn Nelon’s peanut farm. The public utility planned to construct a railroad line which would carry nuclear waste away from its nearby nuclear generating station. Upon expropriation, the market value of the Nelons’ remaining land plummeted from $800 to $500 per acre-a change attributed in part to potential buyers’ fear of radiation escaping from transported waste.

In affirming a lower court’s decision to compensate the Nelons for the loss of value in their remaining land, the Court of Appeal reviewed one witness’s testimony regarding the danger of accidents or sabotage. The court determined that the witness need not prove that an accident was probable, or that similar accidents had occurred in the past: The rule established in previous cases “does not require that an accident of the type feared already [has] occurred; it is sufficient if there is a basis in reason for the fear.”

Other courts have not required that the public’s fear be reasonable in order to justify compensation. In 1988, the City of Santa Fe, wanting to construct a bypass on which to transport nuclear waste going from Los Alamos to the Waste Isolation Pilot Project near Carlsbad, expropriated 43 of the 674 acres owned by John and Lemonia Komis. The Komises sought compensation for reduction in the value of their remaining land. Public perception of the hazards of nuclear waste transportation, they claimed, reduced their land’s market value, either as subdivided residential land or as recreational land, by one million dollars.

In support of their claim, the Komises commissioned a public opinion poll indicating that 71 per cent of those polled believed that property values near the new bypass would decrease. Forty-one per cent of the county’s residents predicted decreases of between 11 and 30 per cent on residential properties near the bypass.

The case went to the Supreme Court of New Mexico, which agreed with the lower court that in the case of a partial expropriation for a land use that frightened potential buyers and diminished the value of any remaining land, compensation would be required regardless of whether the public’s fear was well-founded. It confirmed the jury’s award of $337,815 for public-perception damages.

In its decision, the court referred to a number of cases regarding high voltage transmission lines that reduce the value of lands through which they run. It favoured an approach holding public fear of the lines to be compensable regardless of its reasonableness, since even unfounded fears affect market value: “[I]f loss of value can be proven, it should be compensable regardless of its source.”

The same, the court found, would apply to a highway used to transport nuclear waste. Arguments about the safety of radioactive waste transport were of no interest: “Whether the transportation of hazardous nuclear materials actually is or is not safe is irrelevant; the issue is whether public perception of those dangers has a depressing effect on the value of the property not taken.”

As noted in Santa Fe v. Komis, transmission lines are frequent subjects of perceived risk lawsuits in the United States. Those living near high voltage lines increasingly claim damages for reductions in their property values caused by the public’s fears that the lines’ electric and magnetic fields will cause cancer. Disputes over the validity of such fears, arising from the contradictory or inconclusive nature of many studies on the subject, have not deterred the courts from holding companies liable for the consequences of the fears.

In a 1993 case, Criscuola v. Power Authority of New York, the New York Court of Appeals awarded damages against a utility whose new transmission line lowered neighbouring land values. The court ruled that it was irrelevant whether or not the public’s “cancerphobia” resulted from a genuine danger, since even an unreasonable fear could result in a very real loss of market value: “Whether the danger is a scientifically genuine or verifiable fact should be irrelevant to the central issue of its market value impact.”
The Importance of Maintaining Insurance

Property rights, to be meaningful, must be enforceable. Those who may be harmed by the transport or disposal of nuclear waste must be confident that they will be able to assert their rights should the need arise. To assure people that, should harm come, they will be able to recover full damages, the implementing organization must maintain adequate insurance coverage on both transport and disposal activities. Furthermore, to ensure that victims will be able to obtain justice long after the implementing organization has ceased doing business, provisions should be made to finance future clean-up and compensation.
The Implications of Requiring Consent from Communities of Interest and Maintaining Individuals’ Rights to Injunctions and Damage Awards

Executing the recommendations presented throughout this paper will likely increase the implementing organization’s costs. But such provisions will not actually increase the total costs of nuclear waste disposal; they will simply make visible otherwise hidden risks and costs, redistributing them away from potential victims. They will force the implementing organization to internalize its externalities, to pay any costs it imposes on its neighbours. Such an equitable distribution of costs is an essential element of any ethical waste disposal system.
The implementing organization may be allowed to pass its costs on to taxpayers. Alternatively, it may be required to pass them on to the nuclear industry, possibly affecting the financial viability of nuclear waste generation. Eliminating hidden subsidies to waste generation by requiring the nuclear industry to pay the full costs of waste disposal may encourage power generators to reduce their production of nuclear waste.

Increased liability, backed by sufficient insurance, will increase the safety of the nuclear waste disposal system. Insurers’ exposure will prompt them to demand additional safety measures, procedures, or reconfigurations that will increase the implementing organization’s level of care and improve the safety of both transportation and disposal facilities.

While the costs (to the implementing organization) of executing our recommendations may be high, considerable benefits-both ethical and pragmatic-will result. The siting process, resting on the principles of informed consent and property rights, will distribute costs and benefits far more equitably than its predecessors, or than the process proposed by AECL. The process will be more voluntary, more truly characterized by shared decision making, and more fair-in short, far better able to satisfy the worthy principles of implementation proposed by AECL.

Furthermore, a siting process relying on such principles is more likely to succeed than one that forces people to bear risks. AECL has pointed out that accepted risks tend to be acceptable risks: “[P]eople consider the risk of an activity to be lower or more acceptable if . . . they engage in or accept the activity voluntarily.” Knowing they have a choice, and armed with strong, enforceable property rights, communities and individuals will be more willing to cooperate in the siting process. They will know that they can vote no if they stand to lose more than they will gain. And they will know that they will be able to obtain an injunction or damages if the implementing organization creates (or perhaps even threatens to create) a nuisance. The knowledge that they will be protected by the law will give people the necessary confidence to say yes to a proposal.
Summary of Recommendations

To protect potentially affected communities, Energy Probe recommends that:

Those overseeing the siting process should identify all potentially affected communities and invite all such communities to vote on the proposed project. Only if majorities in all affected communities support the project should it go ahead.

The boundaries of the voting communities should reflect “communities of interest”- groups of people who are likely to experience similar impacts. Communities of interest need not be defined politically, nor need they be mutually exclusive. An affected individual could fall within a number of communities of interest, and be eligible to vote with each of those communities.

Communities of interest could include: close neighbours; those within a certain radius; those living downwind or downstream of the facility; those within one or more risk perception shadows; and those living along transportation corridors.

To protect potentially affected individuals, Energy Probe recommends that:

Laws and regulations regarding the transport and disposal of nuclear waste should explicitly preserve the common law property rights of all who may be affected, thus enabling them to obtain injunctions against hazardous operations or damages for injuries suffered. Such laws must permit activities only on the condition that they do not violate others’ property rights. They must specify that nothing in them legalizes nuisances or other unlawful acts.

If the legislation does permit activities that would otherwise be considered nuisances, against our recommendations, it should at least specify that those affected acquire broad compensation rights. To avoid disempowering potential victims, it is essential that laws regarding the transportation and disposal of nuclear waste provide for compensation for both the construction and the use of any facilities.

To assure people that, should harm come, they will be able to recover full damages, the implementing organization must maintain adequate insurance coverage on both transport and disposal activities. Furthermore, to ensure that victims will be able to obtain justice long after the implementing organization has ceased doing business, provisions should be made to finance future clean-up and compensation.

Posted in Nuclear Power, Nuclear Safety | Leave a comment

Manitoba public utilities board inquiry into the future role of Central Gas Manitoba

February 26, 1996

 

Energy Probe’s Prefiled Evidence in Manitoba Public
Utilities Board June 1996 Inquiry into the Future Role
of Centra Gas Manitoba


Separating Gas Merchant from Distribution Functions in Manitoba
Pre-filed Testimony on Behalf of Energy Probe

Thomas Adams Senior Consultant Borealis Energy Research Association

Presented to the Manitoba Public Utilities Board

Regarding

REVIEW OF NATURAL GAS SUPPLY PROCUREMENT, TRANSPORTATION AND STORAGE FUNCTIONS OF CENTRA GAS MANITOBA INC. AND REVIEW OF GUIDELINES FOR ACCEPTABLE CONDUCT BETWEEN CENTRA GAS MANITOBA INC. AND AFFILIATED COMPANIES

Preamble

The following pre-filed testimony is submitted on behalf of the intervenor, Energy Probe. A résumé for the author is attached as Appendix A. The testimony responds to the “List of Issues” attached to the Board’s letter of January 19, 1996. A preliminary description of the testimony was provided to the Board in a letter from Energy Probe’s counsel, Mark O. Mattson, February 15, 1996. This testimony focuses primarily on issues of principle and regulatory policy rather than on empirical, quantitative analysis.

The Board’s Issues List and Our Response

Issue 1

i) Please describe current market conditions from the well head to the customers’ meters in the context of their structure, behaviour and stability in the areas of supply, transportation and storage. ii) In discussing the structure, behaviour and stability of the current market, please describe any constraints or concerns that unfavourably impact on the current marketplace.

Response

This testimony addresses key elements in the current market conditions in Manitoba related to market structure, the basic methods of price formation, and customer information.

Centra Gas Manitoba Inc. has a dominant position as gas merchant in Manitoba’s core gas market. This position is a reflection of past regulatory practice. Opportunities exist to change the market structure to benefit the public interest.

System gas pricing issues are now administered by way of a forecasted weighted average cost of gas (WACOG) and a deferred purchase gas variance account (PGVA). Direct purchase pricing is managed by way of monthly buy/sell reference prices. Residential customers receive a bundled price for system service.

WACOG is widely recognized as an inefficient means of price formation which leads to the likelihood of inaccurate prices being received by consumers in the marketplace. Average cost pricing is an undesirable residue of administered pricing regimes which existed prior to the advent of market pricing. WACOG is based on forecasts of market prices and customer use volumes, forecasts which can and have been significantly in error. The result often is inefficient pricing signals being provided to the market. Average cost pricing for energy commodities leads to many well recognized ill effects, particularly incentives for excess conservation during times when the average cost exceeds market price and incentives for excess consumption during times when market price exceeds average cost.

Under the former regime of totally regulated gas prices, WACOG created the appearance of price stability. However, evolution toward market pricing has revealed WACOG to be inherently unstable. Customers, at liberty to move to and from utility system gas, have an incentive to abandon system gas when market prices are falling. Conversely, when market prices are rising, customers flock back to system gas. Customers who seek security by staying on system gas are buffeted by these moves as WACOG reacts to changing demands and prices in a lagged fashion.

Reliance on a forecasted WACOG creates a need for a PGVA. PGVA protects utilities from price forecast error, which in itself is good. However, PGVA does not solve the fundamental problems created by WACOG. PGVA adds to inefficiency and administrative burdens while creating unfairness. Use of PGVA results in rate making after the fact. Clearing PGVA balances can lead to significantly distorted prices in the market place whereby current users contribute to, or benefit from, the activities of previous users.

Buy/sell reference prices are artificial pricing constructs that also create inefficiency. Reference prices have the potential to deflect from market prices. Reference prices may also deflect significantly from WACOG and the prices received by customers. In addition, reference prices can constitute an artificial barrier to the development of competition. Non-utility gas vendors are exposed to the risk of reference prices fluctuating not only due to changes in the underlying market prices but also due to actions of buy/sell price administrators.

Bundled prices, which Manitoba residential gas consumers now receive for gas service, pose an additional and substantial artificial barrier to entry for competing suppliers. Some of the key costs within the service bundle include costs for the commodity, transmission, storage, load balancing, metering and billing, and distribution. Without completely unbundling prices, the further development and differentiation of the gas market—whether driven by customer knowledge and choice, or by the entrance of competing suppliers of some of these services that are suited for competition—will be hampered unduly.

Looking at the prevailing market conditions from the vantage point of the small user, gas commodity competition is weak as it is dominated by utility gas, what competition exists presents itself to the customer as an opportunity for rebates rather than pure prices, price drivers are artificially bundled and opaque, and choice among purchase options is virtually non-existent.

Issue 2

i) What changes in the current marketplace do you recommend? Please explain your recommendation providing estimates of the economic benefits and risks of such changes by customer class. ii) In making your recommendations, please discuss the anticipated market structure, behaviour and stability in the changed environment including any constraints or concerns that may impact on the function of such a changed marketplace.

Response

I recommend that the Board move in an orderly but determined way toward a pure utility by completely separating from regulation all functions suited for competitive market delivery, particularly the merchant function. My purpose in recommending enhanced supply competition is to improve efficiency, expand customer choice, and strengthen customer protection. Competition in the merchant function is best achieved through separation from the distribution business. In turn, separation of the merchant function is best achieved by restructuring elements of the utility currently performing the merchant function into a separate enterprise and selling that enterprise to different owners. My second main recommendation is that the Board should move the utility toward maximally efficient, unbundled prices for regulated goods and services.

Gas deregulation to date has produced many successes: lower rates for consumers, improved utilization of capital resulting from developments such as the secondary market for pipeline capacity, and more efficient gas purchasing practices. Even those who have not participated in direct purchase have benefitted from commodity deregulation. These gains suggest strongly that consumers and the public interest will benefit by pursuing further deregulation.

The public interest is unlikely to benefit by keeping regulatory control over the pricing and provision of energy goods and services if they are suited for delivery to customers in a competitive market.

Selling the merchant business at its market value is a method of achieving complete separation while keeping existing shareholders whole.

By boosting competition, separating the merchant business from the distribution business will have the beneficial effects of encouraging a greater range of products and services to further customer choice and of enhancing the flexibility of the gas market to respond to changing market conditions. In addition, separation will simplify the regulatory process by eliminating the effort associated with commodity regulation, thereby allowing regulators to focus more on decisions related to the pure utility. Competition increases the range of interests participating in the gas market, which can have many indirect effects such as strengthening the regulatory process by expanding the range of perspectives available to the Board.

I recommend that the Board pursue unbundling of prices for discrete goods and services remaining within the regulatory ambit. Unbundling will benefit consumers directly by empowering them to make more informed energy decisions. As well, unbundling will benefit consumers indirectly by enhancing the potential for competition to develop. Candidates for unbundled prices include, but are not limited to, transmission services, storage services, customer accounting including metering and billing services, and load balancing. Unbundled prices will reveal to customers the underlying factors that drive their cost of service. Non-utility service providers will be able to acquire utility services for re-bundling with competitive services to provide new products that meet customer needs and enhance choice.

The Board should commit the gas industry in Manitoba to moving away from WACOG and buy/sell reference prices, and to replace them with market prices. Separating the merchant function for regulation will assist in this transition. The gas commodity market, in its current state of development, can be described as mature, highly liquid, competitive, and continental in scope. Market prices, in my opinion, are an excellent reflection of marginal cost. Beyond eliminating the inefficiencies and competition damping tendencies of WACOG and buy/sell reference prices, the positive benefits I would anticipate from market pricing for gas include increasing awareness of the seasonality of the value of gas, enhancing incentives for energy conservation on peak, and reducing costs for achieving service security during times of supply constraint.

One method of eliminating WACOG and buy/sell reference prices while enhancing customer choice is now being advanced in Ontario. The development of innovative Agent, Billing and Collection (ABC) service in Ontario, which I expect will provide significant benefits to customers, is a concrete example of benefits from both commodity deregulation and unbundling.

More than two years ago, Energy Probe developed and promoted the concept of fixed-price/fixed-term gas contracting for residential consumers. Under Energy Probe’s scheme, gas marketing would work like mortgage marketing in that competing marketers could offer consumers a menu of packages featuring various levels of price risk and time duration. The marketer would offset customer requirements by making matching orders to buy from gas sellers. Small users would gain the opportunity to eliminate uncertainty in commodity gas costs.

Happily, some utilities are now starting to enable customers and non-utility suppliers to make arrangements for fixed-price/fixed-term service. The three major Ontario distributors have recently committed themselves to provide ABC service for customers and their non-utility suppliers. Use of the ABC concept will allow residential and small general service customers the option of price security for fixed terms. For customers of Consumers Gas on ABC service, bills will separately identify fixed monthly charges, delivery charges, and commodity costs. The commodity supplier will also be identified on the bill along with its contact phone number. This separately identified information will allow customers to become much better informed about their gas service.

Under ABC, the price that customers receive for their commodity gas is negotiated directly with the supplier and not reliant on WACOG or buy/sell reference prices.

In Ontario, the organizational drive to develop ABC has come from non-utility suppliers seeking methods of responding to customer needs. Utilities are facilitating ABC by sufficiently unbundling and expanding their service offerings to allow marketers to couple Western Bundled T-Service with an Agency Billing and Collection service agreement. Without deregulation and unbundling, fixed-price/fixed-term service would probably not have become available.

ABC service is now before the Ontario Energy Board for approval in the current Consumers Gas rates case. I anticipate that ABC service will be in place for residential and small general service customers by the fall of this year.

Unfortunately, the future of the ABC option is clouded by the expressed intentions of Ontario distribution utilities to offer competing options through streamed prices. If the utilities pursue fixed-price/fixed-term service within the ambit of regulation, the integrity of the competitive environment could be threatened. Potentially, competitors will be unwilling to commit themselves to fully develop the market due to the threat of utilities competing against them using the many special advantages inherent to monopolies. The Ontario utilities have not yet released the details of their fixed-price/fixed-term rate plans. If their plans allow these rate options to remain outside and unrelated to regulation, gas customers will be better off.

Issue 3

Please describe the role of Centra Gas Manitoba Inc. in any changed marketplace including a description of what is the “minimum level of service” that can or should be provided by the utility.

Response

Any changes to the prevailing service arrangements in Manitoba must ensure protection of the interests of default customers—those who, for whatever reason, do not choose to deal with non-utility suppliers. Default customers should be supplied with system gas. System gas would be priced on as short a term as practical. The purpose of short term pricing is to eliminate the problems created by WACOG. Customers on system gas who seek price stability would be able to make arrangements with a non-utility supplier.

Issue 4

If the minimum level of service does not include natural gas procurement, transportation or storage, please discuss separation issues related to existing contracts, security of supply, obligation to serve, backstopping, nominations and load balancing.

Response

Under my merchant function separation and service unbundling proposals, the distributor’s obligation to supply would be unchanged. Existing commitments must be met regardless of separation decisions. I have commented on backstopping under Issue #3 and only have comments on load balancing to add.

As the gas market in Manitoba matures further, utility load balancing may eventually be reduced in importance and phased out from the pure utility. Utility load balancing may be replaced by efficient, alternative means of meeting the need. The development of an efficient and liquid spot market price for gas at relevant delivery points within Manitoba, particularly if combined with more advanced means of pricing gas at the meter and communicating those prices to consumers, could eliminate the need for utility load balancing services. Demand-sensitive prices in a mature market may eventually contain sufficient information to stimulate appropriate responses from transmission and storage service providers as well as consumers in order to balance loads reliably.

Issue 5

Describe what regulatory directives or legislative amendments may be required to support such changes. Please discuss what regulatory framework would be required in the new environment.

Response

I have no specific submissions on amendments to Manitoba laws or regulatory directives to implement these proposed changes.

Issue 6

Please describe any transitional considerations as well as a timetable for transition. Please discuss the dissemination of market information under the changed environment.

Response

The Board should encourage the utility to maximize supply flexibility. Flexibility will ensure that future commitments to storage, transportation, and commodity gas are not “strandable.” In the interests of fairness, all gas users should be allowed to come and go from system supply only on terms that leave other users unaffected. However, the flip side of this commitment ought to be that utilities manage themselves so as to maximize customer choice. Put another way, inflexible supply commitments, being impediments to customer choice and competition, ought to be minimized.

The market share of gas supply competitors after separation should be allowed to develop in a climate of fair competition. Complete separation in the merchant function is a most effective way to achieve fair competition. However, in the short run, the former utility affiliated gas merchant might enjoy substantial market share. I recommend extreme caution or forbearance in using regulation specifically to dilute market share. Assigning the appropriate market share would be entirely arbitrary. Competition will cause market shares to evolve over time.

Deregulation has been a success to date. However, the exact manner in which consumers have benefitted would have been impossible to predict at the outset of the process of deregulation. Similarly, it would be unreasonable now to demand predictions about the benefit of further deregulation. Deregulation will create incentives for producers to develop new products and find efficiencies, but we cannot now know what they will be.

Issue 7

Please discuss the guidelines for acceptable conduct between Centra Gas Manitoba Inc. and affiliated companies, including the methodology and costing for the transfer of assets, the sharing of resources including human resources and the use of a common name.

Response

Incomplete divestiture of the merchant business would be a costly second-best relative to complete separation. Problems created by adopting the second best include the question of how to manage and regulate affiliate transactions, who should bear the cost of regulating affiliate transactions, how to impute a value for the use of the utility’s name, what to do about the utility’s special access to information about customers such as load patterns and credit history, and how to ensure comparability of service to affiliates and competitors. Each of these problems is highly complex and controversial. A complete enquiry into these subjects would be a major undertaking. In the event of incomplete divestiture, affiliated companies and utility parents will have powerful profit-based incentives to skew the outcome in their own interest. At every turn, regulators will be confronted with impediments to their ability to serve the public interest.

Cleanly separating the merchant function from the distributor through a change in ownership eliminates these difficult problems. Affiliate transactions would not be an issue because the divergent interests of different owners would eliminate the problem of cross-subsidies. Without the risk of cross-subsidies, there would be no need for regulatory oversight over the merchant. The value of utility’s name and reputation would be recognized in the sale price. Similarly, information obtained by the utility merchant would be recognized in the sale price but after the sale, the former utility merchant would have to obtain market information by the same means available to any other vendor.

This concludes my pre-filed testimony.

 

Posted in Manitoba | Leave a comment

Finishing the job on gas deregulation: separating Gas Merchant and distribution functions

Thomas Adams
Energy Analects
February 19, 1996

After 10 years of success with deregulation of gas, provincial regulators of gas local distribution companies (LDCs) should finish the job. The road forward is to fully deregulate that which can be competitive. Gas merchant functions still under the regulatory umbrella should be separated from rate regulation entirely. The invigorated competitive environment created by this change will benefit customers and the public interest. Further deregulation will lower regulatory costs, improve flexibility and responsiveness to changing market conditions, and diversify the range of interests participating in the industry.

There once was a time when gas transactions in most parts of Canada were entirely controlled by powerful monopolies and their regulators. Producers and consumers were but pawns in a game controlled by external masters. Gas deregulation, which originated in the Western Accord, started to change all that. Signed March 28, 1985, by the governments of Canada, Alberta, British Columbia, and Saskatchewan, the accord was premised the need for a more flexible and market-oriented environment. The Accord led to the Agreement on Natural Gas Markets and Prices of October 31, 1985, which became known as the Halloween Agreement.

In 1986, Ontario became a leader in gas deregulation by embracing the Halloween Agreement. The Ontario Energy Board (OEB) was the first regulator in North America to allow all customers to circumvent utility system gas by switching to gas directly purchased from non-utility suppliers. Not only were big business customers allowed to shop for gas, but homeowners, schools and hospitals could also shop of for better deals. The results have been dramatic. Homeowners in Toronto have seen their rates drop 36 percent in inflation-adjusted terms since deregulation. Based on the Ontario precedent, jurisdictions across North America began opening up their gas markets.

Ontario is losing its position as a leader in deregulation. The Ontario Energy Board, lacking support from the provincial government, is merely reviewing separation in loose public forums. Meanwhile, the Manitoba Public Utilities Board has created a docket to examine separating the merchant function from the LDC function and will commence hearing the case in April.

Gas commodity deregulation by provincial utility regulators could have the counter intuitive effect of strengthening regulation. Provincial regulators generally do not have a direct mandate to strengthen competition. Keeping the gas merchant function within the regulatory ambit protects utilities from the federal Competition Act. Utilities may be able to claim a defence of “regulated conduct” in reply to charges of anti-competitive behaviour as allowed under the act. Without the shield afforded by regulation, competitors would have a stronger case for pursuing federal remedies in the case of abuse of dominance. This is a new form of protection since most provincial regulators do not concern themselves with competition issues directly.

Separation of distribution and merchant functions must be structural. Ideally, separate ownership of the distribution company from the marketer would develop. A method of achieving this end would be to separate the functions, issue existing shareholders with stock in each new company, and allow the ownership pools to drift apart. However, separate ownership may be difficult to achieve in cases where holding companies control LDCs. Some of the benefits of separation could be obtained even if a common parent continues to control the two, although scrutiny by the regulator of affiliate transactions will remain important.

Private LDCs are now being urged, often by competing marketers, to convert their gas sales departments, which are generally operated as not-for-profit services, into for-profit, deregulated, competition-oriented affiliates. Yet, the private utilities resist.

In part, utility resistance to separation may arise out of the measured conservatism that is needed to manage an industry with a very slow rate of capital rollover combined with extreme capital intensiveness. Or utilities may be seeing system gas customers as valuable assets in the event that “lighter regulation” is implemented. Utilities might also see now underutilized customer information as a strategic asset in the event that more competition breaks out.

Because of years of regulatory protection, gas LDCs are effectively quasi-governmental organizations. Utility resistance may result from managers behaving like government department heads protecting turf and pursuing managerial, rather than commercial, incentives. Although shareholders may be attracted to the invitation to create a new profit centre from a currently non-profit activity, managers may be repelled by the implications of losing automatic cost recovery.

Finishing the job of deregulating commodity gas purchasing will bring an end to average-cost pricing for gas. The use of Weighted Average Cost Of Gas (WACOG) is a carry-over from the foregone era of regulated prices. The apparent simplicity of WACOG appeared attractive in a regulated environment where market and consumer behaviours were controlled. However, the veneer of simplicity presented by WACOG conceals a gross inefficiency, which dregulation reveals.

WACOG is inherently unstable in a market environment. Customers, at liberty to move to and from utility system gas, abandon system gas when market prices are falling. Conversely, when market prices are rising, customers flock back to system gas. Customers who seek security by staying on system gas are buffeted by these moves as WACOG reacts to changing demands and prices in a lagged fashion.

More than two years ago, Energy Probe developed and promoted the concept of fixed-price/fixed-term gas contracting for residential consumers. Under our scheme, gas marketing would work like mortgage marketing where terms are offered to consumers who can select from a menu of packages featuring various levels of price risk and time duration. The marketer would offset customer requirements by making matching orders to buy from gas sellers.

Happily, some utilities are now starting to facilitate customers and brokers, or marketers, being able to make arrangements for fixed-price/fixed-term service. The three major Ontario LDCs have recently committed themselves to provide Agency Billing and Collections bundled Transmission service (ABC T) for customers and their representative brokers or marketers. Hopefully, the ABC T concept will be used to give customers the option of price security for fixed terms.

Fixed-price/fixed-term service corrects the inefficiency created by WACOG while enhancing consumer choice. Fixed-price/fixed-term service is a marginal-cost pricing concept.

If utilities develop fixed-price/fixed-term service, there are potential risks to the development of fair competition. Our enthusiasm for fixed-price/fixed-term contracting has not waned, but that enthusiasm does not make us supporters of price differentiation through gas streaming. As the OEB found in its decision in the 410-II/411-II/412-II case in 1987 “gas purchased by the LDC should arrive in Ontario without being streamed to specific customers or customer groups” (1.33).

Price streaming could have many negative effects on competition. Because of their control over billing information, utilities could easily target customers interested in special terms. Risks to utility marketers, such as risks from aggressive marketing or failing to hedge sales commitments with offsetting purchases, could be subsidized by non-participating customers of the utility.

Borrowing some jargon from the demand-side management lexicon, separation transition issues should be managed in accordance with the no-losers test. Intelligently implemented commodity deregulation should make everyone better off.

In making the transition toward complete commodity deregulation, it is unreasonable to demand predictions about exactly how the benefits will come. The specifics of how newly liberated competitive markets will behave are impossible to predict. We cannot presume to know what kinds of new products will arise or what synergies will be discovered. Nor can we prove or guarantee that further deregulation will lower rates, but we have strong reasons to believe that it will, especially given the success to date of limited deregulation.

The transition to fully deregulated markets should not be guided by regulators setting arbitrary targets for market shares of participants in the new world of gas marketing. Market shares should arise, not by design, but by the interplay of market forces in a climate of fair competition.

Separation will raise some questions that the regulators will have to deal with. These include:

Can gas marketers formerly associated with utilities trade under the utility’s name?

Who should be responsible for naturally competitive businesses now within the LDC umbrella like billing, meter reading, and collections?

Although existing meters in rate base should be grandfathered, in the future, who should own the customer’s meter?

Can load balancing needs be met by market mechanisms, or is there a natural monopoly in this area?

The time has come for the regulators and government policy makers to encourage the LDCs to divest themselves of the merchant function. Such separation will assist in protecting the public interest. Just as the utilities now oppose separation, they once opposed direct purchase deregulation. If regulators and governments choose separation, I am willing to bet that in a few years even the utilities who now oppose separation will look back on the decision as the right thing to have done, just as they generally do now when looking back at the first steps toward deregulation.

 

Posted in Natural Gas Utility Regulation and Commodity Deregulation | Leave a comment

Moving ahead with gas deregulation: separating Gas Merchant and distribution functions

Thomas Adams
Energy Probe
January 31, 1996

Presenter: Thomas Adams
Director of Utility Research,
Energy Probe Senior Consultant,
Borealis Energy Research Associates

Ontario’s gas local distribution companies (LDCs) and their regulator, which have together done a very good job of serving their customers and the public interest, must make a break with the status quo and embrace further commodity purchase deregulation. Ontario was once in the lead in gas deregulation, but we are no longer in the lead. For example, the Manitoba Public Utilities Board has created a docket for separating the merchant and LDC functions. The road forward is to fully deregulate that which can be competitive and finish the job Ontario started 10 years ago. Full gas purchase deregulation cannot be achieved without institutionally separating the merchant function from regulation.

Energy Probe advocates further deregulation to improve value for consumers, make gas a more aggressive competitor against less environmental attractive fuel forms, and provide a successful model of market reform which can be applied to electricity sector reform. We are confident that further deregulation will lower regulatory costs, improve flexibility and responsiveness to changing market conditions, and diversify the range of interests participating in the industry.

Gas commodity deregulation by the Ontario Energy Board (OEB) could have the counter intuitive effect of strengthening regulation. The OEB does not have a direct mandate to strengthen competition. Keeping the gas merchant function within the regulatory ambit protects utilities from the federal Competition Act. Utilities may be able to claim a defence of “regulated conduct” in reply to charges of anti-competitive behaviour as allowed under the act. Without the shield afforded by regulation, competitors would have a stronger case for pursuing federal remedies in the case of abuse of dominance.

Separation of the distribution function from merchant functions must be structural. Ideally, separate ownership of the distribution company and the marketer would develop. However, this ideal may be difficult to achieve given that holding companies currently control the major LDCs. Some of the benefits of separation could be obtained even if a common parent continues to control the two functions, although regulatory scrutiny of affiliate transactions will still be necessary.

Because of years of regulatory protection, Ontario’s gas LDCs are today quasi-governmental organizations. Energy Probe is generally of the view that minimizing the direct role of government in the energy business is good policy. One example where Ontario’s gas LDCs have excessive, governmental-type powers is the LDCs’ power of life or death over agents, brokers, and marketers (ABMs) through the management of displacement volumes.

How should we understand the lack of interest utilities express in response to the invitation to spin off a currently non-profit function and convert it into a for-profit function? We have some misgivings about using customer surveys as the basis for a case against separation as the utilities have suggested. It is unfortunately true that gas customers are poorly informed about the operation of the gas system. Some customers, when asked if utilities should be allowed to sell gas, may wonder if they are being asked if fuel should be delivered to users. Lack of knowledge on the part of customers is at least in part due to billing practices and rate structures that have obscured the actual underlying costs of service. Energy Probe is very impressed by the commitment of Consumers Gas to break out customer, commodity and capacity costs on the customers’ bills and hopes that this initiative will improve customer awareness.

In part, utility resistance to separation may arise out of the measured conservatism that is needed to manage an industry with a very slow rate of capital rollover combined with extreme capital intensiveness. Or utilities may be seeing system gas customers as valuable assets in the event that “lighter regulation” is implemented. Utilities might also see now underutilised customer information as a strategic asset in the event that more competition breaks out. I recommend an appreciation for the quasi-governmental nature of utilities. I suggest to you that utility managers are behaving like government department heads protecting turf and pursuing managerial, rather than commercial, incentives. Although shareholders may be attracted to the invitation to create a new profit centre from a currently non-profit activity, managers may be repelled by the implications of losing automatic cost recovery.

More than two years ago, at the Direct Purchase hearing, Energy Probe developed and promoted the concept of fixed-price/fixed-term gas contracting for residential consumers. Under our scheme gas marketing would work like mortgage marketing where terms are offered to consumers who can select from a menu of packages featuring various levels of price risk and time duration. The marketer would offset customer requirements by making matching orders to buy from gas sellers.

Because of our interest in customer choice, we are pleased to see the Agency Billing and Collections bundled transmission service (ABC) option being developed now by utilities and ABMs. We hope that ABC will be used to give customers the option of price security for fixed terms.

When we originally proposed fixed-price/fixed-term service, our purpose was to correct instability created by the weighted average cost of gas. Fixed-price/fixed-term service provides a way of moving closer to marginal cost pricing. However, if utilities develop fixed-price/fixed-term service within their regulated operations, there are potential risks for the continued development of fair competition. Our enthusiasm for fixed-price/fixed-term contracting has not waned but that enthusiasm does not make us supporters of price differentiation within regulation through gas streaming. As the OEB found in its decision in the 410-II/411-II/412-II case “gas purchased by the LDC should arrive in Ontario without being streamed to specific customers or customer groups” (1.33).

Regulated price streaming could have many negative effects on competition. Because of their control over billing information, utilities could easily target customers interested in special terms. Risks created by utilities engaging in aggressive marketing, or failure to hedge sales commitments with offsetting purchases, could be subsidized by non-participating customers of the utility.

Borrowing jargon from the demand management lexicon, separation transition issues should be managed in accordance with the no-losers test. Intelligently implemented commodity deregulation should make everyone better off. In making the transition to complete commodity deregulation, it is unreasonable to demand predictions about exactly how the benefits will come. The specifics of how newly liberated competitive markets will behave are impossible to predict. We cannot presume to know what kinds of new products will arise or what synergies will be discovered. Nor can we prove or guarantee that further deregulation will lower rates, but we have strong reasons to believe that it will, especially given the success to date of limited deregulation.

Some may suggest that deregulation be stalled to retain the capacity of the OEB to enforce measures aimed at protecting the environment. Energy Probe lauds the purpose but opposes the means. In our view, the OEB is a rate regulator, not an environmental regulator. If the Board does wade into environmental regulation it should be wary of environmental boomerangs. Efforts by the Board to achieve environmental objectives by imposing special costs on gas, costs that are not imposed on other fuel forms with worse environmental consequences, are likely to increase rather than decrease environmental harm. Environmental regulation should be applied across sectors and fuel forms.

Energy Probe does not support proposals that would set out arbitrary targets for market shares of participants in the new world of gas marketing. Market shares should arise, not by design, but by the interplay of market forces in a climate of fair competition.

Government action is needed to modernize the OEB Act. The obligation to serve needs to be redefined as an obligation to deliver. Gas trades at the customer’s meter must be permitted. Allowing gas trades to be transacted in Ontario is necessary for a local hub price to develop. A local hub price may facilitate more efficient use of existing facilities, a more efficient market in secondary pipeline capacity, and better price signals to guide expansion decisions.

Separation will raise some questions that the OEB will have to deal with. These include:

Can gas marketers formerly associated with utilities trade under the utility’s name?

Who should be responsible for naturally competitive businesses now within the LDC umbrella like billing, meter reading, and collections?

Although existing meters in rate base should be grandfathered, in the future, who should own the customer’s meter?

Can load balancing needs be met by market mechanisms, or is there a natural monopoly in this area?

The time has come for the OEB to encourage the LDCs to divest themselves of the merchant function. Such separation will assist in protecting the public interest. Just as the utilities now oppose separation, they once opposed direct purchase deregulation. If the Board and the government choose separation, I am willing to bet that in a few years even the utilities who now oppose separation will look back on the decision as the right thing to have done, just as they do now with the direct purchase decision.

 

Posted in Natural Gas Utility Regulation and Commodity Deregulation | Leave a comment

Feeding the nuclear dragon CANDUs for China?

David H. Martin
Nuclear Awareness Project for the Campaign for Nuclear Phaseout
October 1, 1995

Introduction

The sale of CANDU reactors to China will be a disastrous deal for the people of both Canada and China. The cost to Canadian taxpayers will be enormous, since the cost of AECL and the CANDU reactor continue to require a massive subsidy of about $200 million per year. China can ill afford to put its scarce resources into an expensive technology that has been discredited at home in Canada, where the first large reactor is being phased out, ahead of schedule, in October 1995. It is unacceptable that the Canadian government proposes to provide nuclear technology to a country with the reputation of a nuclear renegade, and which, together with France, has defied a world-wide effort to ban nuclear weapons tests. Furthermore, Canada should not be trading with a nation such as China, which engages in systematic and brutal abuse of human rights.

In November 1994, Atomic Energy of Canada Ltd. (AECL) announced that it had signed a Memorandum of Understanding (MOU) with the China National Nuclear Corporation (CNNC) to begin negotiations on the sale of two CANDU-6 (i.e. 700 MW) reactors. At that time, AECL stated that the deal might take one year to 18 months to complete. The most recent round of negotiations apparently began between AECL and CNNC in the spring of 1993.{1} In the past, nuclear deals between AECL and China have been on-again, off-again. In the spring of 1980, an eight-person delegation from AECL visited China, after interest had been expressed in possibly purchasing two CANDU-6 reactors. Serious Chinese consideration of nuclear power was a shift in policy since the Chinese had apparently had cold feet about nuclear power in the wake of the 1979 Three Mile Island accident.{2} In 1980, an AECL official stated, “The odds now are high we will get a chance to participate in the [Chinese nuclear] program.” {3} However, by February 1981

Current CANDU negotiations with China involve not just a simple price tag, but the terms for a Canadian government loan, and probably the extent of technology transfer that AECL and nuclear manufacturers are prepared to offer the Chinese. The Chinese are already notorious for their disregard of copyright and licensing agreements. In addition, there are moral questions of human rights in China and the potential contribution to the Chinese nuclear weapons program.

The MOU was signed shortly after Chinese Premier Li Peng and Canadian Prime Minister Jean Chrétien had signed a Nuclear Cooperation Agreement (on nuclear weapons proliferation) in November 1994. The site being considered for the reactors is at the Qinshan facility (site of an existing 300 MW reactor), on the coast at Hangzhou Bay in Zhejiang Province, 126 km south-west of Shanghai. It has been suggested that the overall cost of the two reactors might be $3.2 billion to $3.5 billion. It is unclear whether the Chinese will purchase heavy water or fabricated fuel bundles for the reactors (the Chinese have their own heavy water production capability). Of the total cost, it is speculated that about one third would remain in China for construction and the possible manufacture of some plant components. AECL has suggested that Canadian companies might receive up to $2.7 billion worth of business.{5} However, other speculation that Canada would offer financing of about $2 billion, indicates that $2.7 billion i

It has been admitted that the AECL/CNNC agreement “…almost did not take place because of last-minute concessions demanded by the Chinese government”.{7} AECL refused to disclose the concessions that have already been promised, however various sources have confirmed that Canada will finance roughly two-thirds of the project — over $2 billion — through the Export Development Corporation. Natural Resources Minister Anne McLellan has stated that,

“With respect to China, any financing provided by the Canadian

government for a CANDU project in that country would be in the form of

a loan through the Export Development Corporation (EDC). Furthermore,

any loan would be at a non-concessional interest rate as set under the

International Consensus Agreement by the Organization for Economic

Cooperation and Development.”{8}

While the EDC would administer the loan to China, the loan would

actually be made by the Government of Canada. The loan would go through

the “Canada Account” of the EDC, which is carried on the books of the

Departments of Foreign Affairs and International Trade. The government

would have to make the loan for two reasons: it would be far too large

a loan for the EDC to handle, and longer-term sovereign loans to Third

World countries are too risky for the private sector financial

community. In other words, the taxpayers of Canada will be forced to

accept the risk of a multi-billion dollar loan that the private sector

would not even consider.

AECL is hoping that it will be able to negotiate “turnkey” deals for the two reactors. In a “turnkey” project, the builder provides a completed plant, and the buyer only has to “turn the key” to start it. The presumption is that there is no transfer of technology, and accordingly a greater benefit to the vendor. AECL has already proven itself willing to part with CANDU design information for modest fees. CANDU technology transfer (unlike the transfer of other reactor designs, which are controlled by large, integrated private sector corporations such as GE, Westinghouse or Siemens) is in the hands of a number of private sector component manufacturers as well as AECL. As a general rule, these suppliers have sought the sale of at least two CANDU units before licences for manufacturing technology are granted.{9} However, South Korea is the only country that has put in a hard order for more than one CANDU reactor{10}, and with a buyers’ market in effect for so long, Korea was able to negotiate increasingl

The Chinese Nuclear Industry

Two nuclear power facilities have been constructed in China: a 300 MWe PWR at Qinshan (Zhijiang Province); and two 900 MWe PWRs at Daya Bay in Guangdong Province (known as Daya Bay plant or Guangdong-1). The Qinshan plant, owned by China National Nuclear Corporation (CNNC), began operation in 1991. Its components were 70% Chinese in origin, and 30% imported. It has since been shut down for extensive modifications. Daya Bay, on the coast 52 km northeast of Hong Kong, was a joint Anglo-French venture between GEC and Framatome, made possible because of a deal to sell electricity to nearby Hong Kong. An earlier commercial partnership between GEC and CNNC had collapsed when the US refused to allow CNNC to use the Westinghouse PWR licence because of Chinese aid for the Pakistani nuclear weapons program. The first unit was connected to the grid in 1993, and the second in 1994. Daya Bay is 75% owned by CNNC, and 25% by China Light & Power (a Hong Kong utility).

It is recognized that due to capital shortage, these are the only nuclear plants that will be in operation by 2000. However a number of other nuclear projects totalling 8,000 MW (including possibly two 700 MW CANDU reactors) are in various stages of negotiation.

As part of a move to increase domestic nuclear capability, the CNNC was established in 1986. The CNNC (with whom AECL has signed its Memorandum of Understanding for the sale of two reactors) has responsibility for both civilian and military nuclear activities at all levels of the nuclear fuel chain. It has over 200 subsidiaries and about 300,000 employees, including a significant research and development capability.

China and Nuclear Weapons

The Chinese nuclear weapons program was established in 1955, initially with the help of the Soviet Union. Despite the Soviet withdrawal of aid in 1959, China exploded its first atomic bomb in 1964, and its first hydrogen bomb two and a half years later. At that time, China had several plutonium production reactors, a plutonium reprocessing facility and a uranium enrichment facility. China is one of the five declared nuclear weapons states under the Nuclear Non-Proliferation Treaty, and has exploded 43 nuclear bombs since 1964. Despite international pressure, China continued atmospheric bomb tests until 1980 (long after the last atmospheric tests by France in 1974).{11} China has recently done the basic minimum in order to facilitate its entry into the world of international “civilian” nuclear power. It joined the International Atomic Energy Agency (IAEA) in 1984, signing some voluntary safeguard measures in 1988, and it signed on to the Nuclear Non-Proliferation Treaty in 1992. However, in 1991 the China Nuclear Energy Industry Corporation (CNEIC — a subsidiary of the CNNC) sold a 300 MW PWR based on Qinshan-1 to Pakistan, and construction began at the Chasma site in 1993. A contract has also been signed with Iran for a 2X300 MW plant. Coincidentally, China has also sold missile technology to both Pakistan and Iran.{12} Pakistan has been actively pursuing nuclear weapons for some time, and is widely considered an “undeclared” nuclear weapons state, as are India and Israel. In addition, China has also exported a number of “research” reactors. These foreign sales have given China the reputation of a renegade in the dark world of nuclear weapons proliferation.

In September 1992, the United States, Britain, Russia and France joined together for a moratorium on nuclear weapons testing. Immediately before the testing halt, eight tests were conducted in 1992 — six by the US and two by China. Originally set to expire in July, 1993, President Clinton announced at that time that he would extend the moratorium until October 1994 on the condition that no other nation conducted a test.{13} On October 5, 1993 (just 12 days after losing its bid to host the year 2000 Olympic games) China conducted an underground nuclear explosion at the Lop Nur test site in the north-western province of Xinjiang. The test was China’s thirty-ninth since 1964. In June 1994, Canadian Foreign Affairs Minister Andr Ouellet appealed to the Chinese to halt their imminent nuclear bomb test. A week later, the Chinese exploded their 40th bomb at Lop Nur. A Canadian seismic station at Yellowknife placed the explosion at 40 kilotonnes — about twice the explosive force of the Hiroshima bomb.{14} Th

The 42nd Chinese nuclear test came on May 15, 1995, a few days after the conclusion of the extension of the Nuclear Non-Proliferation Treaty.{16} Although Foreign Affairs Minister André Ouellet had been strangely silent about the Chinese test just before the Canadian trade visit, he criticized the May test, saying, “This latest Chinese test clearly violates the positive spirit that led to the indefinite extension, supported by China, of the NPT just three days ago. Canada calls on China to cease all further testing and to adhere to the nuclear testing moratoria observed by the other nuclear weapons states.”{17} China’s 43rd nuclear weapons test came in August 1995. Canada’s opposition to Chinese testing is clearly only rhetoric, and the government is not willing to back it up with meaningful commitment, such as trade sanctions.

The Chinese decision to proceed with weapons testing in defiance of what was then an effective world ban, was provocative and destabilizing at a very sensitive time. The 25-year-old Nuclear Non-Proliferation Treaty (NPT) was under review in a controversial “Extension Conference”, in New York in April 1995. The five declared nuclear weapons powers sought, and despite strong opposition, obtained an indefinite extension. China’s flouting of the voluntary test-ban further eroded the credibility of the NPT.{18} There have also been attempts through the Conference on Disarmament and the Test Ban Amendment Conference to transform the 1963 Partial Test Ban Treaty into a comprehensive treaty by 1996.{19} Again, Chinese weapons tests have been a significant stumbling block to progress. There can also be little doubt that Chinese testing helped to create the “political space” for France to resume its nuclear testing in the South Pacific.

The Chinese argue that their nuclear bomb tests are needed to confirm the safety and reliability of its weapons, and that they need to make these tests prior to the likely implementation of a Comprehensive Test Ban in 1996.{20} It is also safe to say that the NPT Extension Conference heightened international pressure to end weapons tests. Once again, China was an international nuclear “bad boy” with its subsequent nuclear test. By proceeding with a deal to sell CANDU reactors to China, in the midst of these delicate negotiations, Canada has exhibited callous disregard for the international disarmament process. The message to China is that it can continue to ignore the political posturing of Canada and the other western powers, relying on the possibility of reactor sales and other trade relations to overcome any real threat in the form of sanctions or trade boycott. The Liberal government in Ottawa has injured Canada’s credibility as a peacemaker, in a desperate drive to keep AECL and the Canadian nuc

China: A Risky Business Proposition

With a largely untapped market of 1.2 billion people, China has had a magical allure for international capital. However, the bloom on the rose has faded in the last year, and it has become increasingly clear that investment in China is a high-risk proposition. In 1994, the Chinese national government decided that foreigners could not have a majority ownership of power projects.{21} China has also apparently decided to limit the rate of return for foreign companies investing in power projects — limits ranging from 12 to 15% have been discussed.{22} Even well-known power project developers such as Gordon Wu have abandoned China for deals in Pakistan and India that are presumably safer and more lucrative.{23} This is extremely revealing, since through Hopewell Holdings, Wu pioneered power investments in China, and his projects have been identified as exemplary by Ontario Hydro and others.{24}

There are a number of other danger signs: Chinese state enterprises have defaulted on $600 million in loans from Japanese, German and Italian banks; the China International Trust & Investment Corp. (CITIC) is refusing to pay a $40 million debt to the London Metal Exchange; and two other state companies are refusing to pay $100 million in trading losses to Lehman Brothers Inc.{25} In the most high profile trade disagreement, a trade war between the USA and China over the copyright protection of intellectual property rights was narrowly averted in February 1995.{26} However, the reconciliation was short-lived, as a new trade disagreement was triggered when China failed to live up to a 1992 Memorandum of Understanding to lift import controls, licence requirements and quotas on a variety of products.{27} The expropriation of the largest Mcdonald’s restaurant in the world in Beijing, despite a 20 year contract, has sent shivers through the foreign investment community. Adding to the uncertainty of the fut

CANDU Sales and Human Rights in China

On November 7, 1994, in a momentary aside during commercial discussions, Prime Minister Chrétien mentioned to Chinese Premier Li Peng that Canada wants to maintain a dialogue with China on the question of human rights and then quickly reassured the Premier that Canada would not link trade and human rights.{29} Li Peng is a former electrical engineer known to be a nuclear power booster. He is also widely assumed to be the main planner and instigator of the Tiananmen Square Massacre in June 1989. The Chinese simply ignored Chrétien’s feeble overture, and a spokesperson for Li Peng denied that human rights had even been raised. Nova Scotia Premier John Savage also could not remember Chrétien raising the issue.

Just one month after Prime Minister Chrétien and the provincial premiers had left China, a group of non-violent pro-democracy activists in Beijing received prison sentences of up to 20 years. The group, known as the “Beijing 15” were arrested in 1992, after they had planned to distribute leaflets on the anniversary of the Tiananmen massacre.{30} The sentences were undoubtedly timed to come after the Canadian trade delegation. China continues to officially defend the Tiananmen Square massacre, in which several hundred people are assumed to have perished. In the opinion of Amnesty International, repression has continued since that time. . . .

“Despite rapid economic changes in recent years, which have led to

increased freedom and some relaxation of social controls, there has

been no fundamental change in the government’s human rights policy.

Dissent in any form continues to be repressed and serious human rights

violations continue.”{31}

Chinese authorities acknowledge holding over 3,000 prisoners for

“counterrevolutionary offenses” (i.e. for political dissent). It is

estimated that many more political prisoners have been charged with

criminal offenses — for example, people participating in peaceful

demonstrations have been charged with “disturbing public order” or

“hooliganism”. In addition there has been documentation of widespread

use of torture in China.{32} In March 1994, John Shattuck, US Assistant

Secretary of State for Democracy, Human Rights and Labour, met in

Beijing with prominent Chinese dissident Wei Jingsheng, just freed

after 14 years in prison. Wei was re-arrested shortly after meeting

with Mr. Shattuck and has not been heard from since.

The continued abuse of human rights in China indicates the bankruptcy of Canada’s policy of reform through engagement. Canada should have the moral courage to clearly raise human rights issues, and should be prepared to forego trade relations with countries such as China which have been consistent and long-term violators of basic human rights.

FOOTNOTES

{1} Barrie McKenna, “Canadian Firms see $2.7 billion in Candu deals”, Globe and Mail, November 9, 1994, p. B1.

{2} “China still interested in CANDU, AECL says”, Globe and Mail, October 18, 1980.

{3} Thomas Claridge, “Chinese plans for nuclear could aid ailing Canadian industry”, Globe and Mail, April 7, 1980.

{4} Bryan Johnson, “Hope for CANDU sale dashed by Chinese”, Globe and Mail, February 24, 1981.

{5} Barrie McKenna, “Canadian firms see $2.7 billion in Candu deals”, Globe and Mail, November 9, 1995, p. B1.

{6} Michael Urlocker, “China’s deal for CANDUs won’t cure AECL’s ills”, Financial Post, November 11, 1994, p. 6.

{7} Anthony Wilson-Smith, “The China Deal: Chrétien’s Team Canada wins big contracts for Canada”, Maclean’s, November 21, 1994, p. 14.

{8} Hon. Anne McLellan, Minister of Natural Resources, letter to Mr. Rich Krechowicz, May 4, 1995.

{9} “Canada’s Reactor Exports”, Nuclear Policy Review Background Papers, Energy, Mines & Resources Canada, Report No. ER81-2E, 1981, p.271.

{10} Romania has nominally ordered 5 reactors, however, only one reactor has proceeded with financing from Canada. It is highly unlikely that a second reactor at Cernavoda will proceed without similar concessionary financing, and technical assistance.

{11} “Known nuclear tests worldwide, 1945-1993”, Bulletin of the Atomic Scientists, May/June 1994, pp. 62-63.

{12} Robert Sheppard, “CANDUs for China? Hold on There”, Globe and Mail, November 7, 1994, p. A13.

{13} Tom Zamora Collina, “China bucks ban with bang”, Bulletin of the Atomic Scientists, December 1993, p. 3.

{14} Jeff Sallot, “To keep nuclear materials in check”, Globe and Mail, September 9, 1994, p. A21.

{15} “Notes for an Address by the Honourable Roy MacLaren, Minister for International Trade, To the Annual General Meeting of the Canada-China Business Council, Beijing, China”, This Week in Trade and Foreign Policy, November 8, 1994.

{16} Paul Knox, “Chinese nuclear test draws fire”, Globe and Mail, May 16, 1995, p. A14.

{17} “Canada Deplores Chinese Nuclear Weapons Test Explosion”, This Week in Trade and Foreign Policy, May 15, 1995.

{18} The NPT is premised upon the intrinsically flawed concept of providing “civilian” nuclear technology to non-nuclear weapons states in order to encourage them to forego nuclear weapons. The other part of the NPT bargain is that the declared nuclear weapons states will voluntarily disarm. Progress has been slow and dubious at best, since the five nuclear powers still support deterrence as a strategic concept, and the US and Russia apparently do not intend to reduce their arsenals below 3,000 to 3,500 weapons each. Failure to achieve a test-ban to date has been added evidence of failure on the part of the weapons states.

{19} William Epstein, “Give more to get more”, Bulletin of the Atomic Scientists, November/December 1994, p. 15.

{20} Dingli Shen, “Toward a nuclear-weapons-free world: a Chinese perspective”, Bulletin of the Atomic Scientists, March/April 1994, p. 51.

{21} “Spate of discord sours quick romance with China”, Globe and Mail, December 3, 1994, p. B6.

{22} See: Peter Cook, “Lessons in the China trade”, Globe and Mail, November 4, 1994. Also: “Spate of discord sours quick romance with China”, Globe and Mail, December 3, 1994, p. B6.

{23} “Spate of discord sours quick romance with China”, Globe and Mail, December 3, 1994, p. B6.

{24} See for example comments of Ontario Hydro International executives in Ontario Energy Board, EBRLG 36 — OHII, Technical Conference, October 19, 1994, p. 137. Hopewell Holdings is a Hong Kong construction and engineering company. In 1993, a new company called Consolidated Electric Power of Asia (CEPA) was formed, 75% owned by Hopewell. CEPA acts as holding company for three power plants in China, built by Hopewell (including an 800 MW coal plant in Guangdong). The assets of Hopewell plus global equity financing of US$800 million make CEPA one of largest private power generation companies in Asia. Source: Ontario Energy Board, EBRLG 36 — OHII, Interrogatory Response 7.15.14, November 16, 1994.

{25} “Spate of discord sours quick romance with China”, Globe and Mail, December 3, 1994, p. B6.

{26} Rod Mickleburgh, “US, China avert trade war”, Globe and Mail, February 27, 1995, p. B1.

{27} Steven Mufson, “China, US make up — and fall out again”, Toronto Star, March 12, 1995, p. A4.

{28} Paul Watson, “Good fortune for China uncertain in Year of Pig”, Toronto Star, January 31, 1995, p. A1.

{29} Carol Goar, “Chinese ignore proposal on rights”, Toronto Star, November 8, 1994, p. A1.

{30} Rod Mickleburgh, “Chinese hand dissidents long terms”, Globe and Mail, December 17, 1994, p. A14.

{31} Amnesty International, China: Human Rights Violations Five Years After Tiananmen, ASA 17/20/94, June 1994, p. 3.

{32} Amnesty International, Ibid.. See also the following Amnesty reports: China / Dissidents Detained Since 1992: Political Trials and Administrative Sentences, ASA 17/05/94, January 1994. China / Protestants and Catholics detained since 1993, ASA 17/06/94, March 1994. China / Update on Torture, ASA 17/12/93, March 1993. China / Torture and Ill-Treatment: Comments on the additional report of the People’s Republic of China to the UN Committee against Torture, ASA 17/11/93, March 1993.

 

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Risks of a Nuclear Waste Disposal Facility

Norman Rubin
Borealis Energy Research Association on behalf of Energy Probe
August 8, 1995

Part 2 of Energy Probe’s Submission on The Adequacy of Atomic Energy of Canada Limited’s Environmental Impact Statement on the Concept for Disposal of Canada’s Nuclear Fuel Waste. Submitted to the Federal Environmental Assessment Review Panel.

Introduction

In September 1994, Atomic Energy of Canada Limited (AECL) completed its Environmental Impact Statement on the Concept for Disposal of Canada’s Nuclear Fuel Waste (the “EIS”). The following month marked the beginning of a nine-month review of how adequately that EIS addresses the issues raised in the Federal Environmental Assessment Review Panel’s Final Guidelines for the Preparation of an Environmental Impact Statement on the Nuclear Fuel Waste Management and Disposal Concept (the “Guidelines”). As part of that review, Energy Probe retained Borealis Energy Research Association as a consultant to examine risk methodology and criteria.

In describing the first phase of work, Energy Probe asked Borealis to review the EIS and supporting documentation and to comment on its behalf on the adequacy of its treatment of risk methodology and criteria. Energy Probe advised Borealis to focus especially on the following areas:
(1) total population, individual, and environmental risks, especially due to radioactive substances that may be released from the envisaged repository (Guidelines, pages 10-11), including the risks of human health impacts such as “additional cancers” (Guidelines, page 55);
(2) the criteria that relate to those risks (Guidelines, pages 13, 18, and 20, etc.);
(3) the definitions of safety and acceptability (Guidelines, pages 9, 11); and
(4) adequate proof of safety (Guidelines, page 11).
The following report provides that review and Energy Probe’s comments. In general, it documents multiple and systematic failures on AECL’s part to produce the information requested in the Guidelines. Indeed (as documented below), AECL’s EIS in the areas of risk methodology and criteria seems essentially to be a response to the regulatory documents of the Atomic Energy Control Board (AECB), rather than a response to the Federal Environmental Assessment Review Panel’s Guidelines. As a result, AECL’s review of risk methodology and criteria is an inadequate basis for meaningful public hearings on its proposed concept. (Despite Energy Probe’s serious concerns with several aspects of this Federal Environmental Assessment Review process, it does constitute a process that is far more modern, enlightened, and responsive to the public than any process the AECB has ever initiated — including the process that gave rise to AECB’s three regulatory documents on nuclear fuel waste disposal (R-71, R-72, and R-104). As a result, it is extremely important that this Panel ensure that the concept for geological nuclear fuel waste disposal is tested against the Panel’s own guidelines, and not merely the essentially “self-regulatory” requirements of the AECB.)

As requested by the Panel, this report refrains from commenting on the merits of the opinions and conclusions of the EIS, as opposed to its sufficiency to form the basis of public hearings. Accordingly, the absence of critical remarks herein should not be mistaken for endorsement of AECL’s opinions and conclusions.

It must be noted that funding for intervenors in this review has been extremely limited, and will not permit public-interest intervenors to provide the kind of expert evidence necessary to remedy the inadequacies documented below. It is therefore essential that these inadequacies be corrected before any more effort is spent on the review of the merits of the opinions and conclusions of the EIS.

General Recommendation: The Panel should insist that all identified inadequacies are corrected before any more effort is spent on the review of the merits of the opinions and conclusions of the EIS.
General comment on the structure and presentation of the EIS documents:

The organization of the EIS documents, including the EIS volume itself, is completely different from the organization of the Guidelines, on which it should be based. (See EIS, pp. 12-13, “Unusual Aspects of this Review and this EIS”.) Supposedly as mitigation of this offense, AECL has provided, in Appendix A of the EIS, “a cross-reference that indicates where items in the guidelines are addressed in the EIS [EIS, p. 13]”. Unfortunately, that 4-page cross-reference is totally inadequate to repair the deficiencies caused by AECL’s disregard of the structure and logic of the Panel’s Guidelines. For example, in searching for AECL’s discussion of “risk on the basis of total population” from the reference disposal system (Guidelines, §3.2, p. 10, discussed directly below), the reader (including the Panel!) is directed to search through Sections 2.2.9, 3.2, and 3.4.3 of the EIS, and Chapters 6, 7, and 9, and Appendix H in their entirety! As discussed below, that discussion is apparently not contained in any of those 135-odd pages, or anywhere in the companion volume The Disposal of Canada’s Nuclear Fuel Waste: Postclosure Assessment of a Reference System (henceforth, “R-Postclosure”).
The extent to which the deficiencies of AECL’s EIS documents are the result of its decision to ignore the Guidelines’ structure remains a subject for conjecture; however, the difficulties that decision poses to readers, intervenors, and the Panel itself — both in assessing the documents’ deficiencies and in locating the answers to specific questions asked in the Guidelines — are real and significant.

Recommendation: The Panel must direct AECL to respond directly to the Guidelines — either by preparing a new “companion” document based on the structure of the Guidelines or by beginning over, with the structure and content of the Guidelines in mind. To prevent the squandering of the precious resources of the Panel and public-interest intervenors, the Panel must not progress toward a hearing until that work is completed and judged sufficient.
General concerns regarding the future of the process:

It is a feature of this FEARO review of this concept that the developer of the concept and the author of the EIS documents (AECL) will not necessarily be the proponent or “implementing organization” of the actual management or disposal of nuclear wastes. AECL leaves the issue officially open in its discussion of the implementing organization (EIS, pp. 79-80), but also claims that it is essential to maintain AECL’s own “team” if Canada is to avoid losing a $400 million asset. (See “The Potential Loss of Technology”, EIS pp. 76-77.) Energy Probe’s contrary view on the selection of an implementing organization is also a matter of public record, and was presented to this Panel in the Scoping and Guidelines stage of this process. We continue to believe that AECL, given its mandate, its management, its history, its current priorities, and its corporate culture, is unlikely to succeed at the task of finding a publicly acceptable solution to the problems it has so aggressively promoted. Now, in light of the pervasive and apparently willful nature of many of the deficiencies in AECL’s documents (as documented below), we would suggest that the Panel consider, or urge the federal government to consider, the possibility that further investment of public funds in AECL, to remedy this deficient Environmental Impact Statement, will prove a bad investment.
Total population, individual, and environmental risks

Total population risk has not been estimated, discussed, or controlled.
The Panel directed AECL to “discuss and, where possible, quantify the risks to the health of humans and human communities . . . that are associated with the concept . . . This discussion should include . . . the following: risk on the basis of total population and the individual; . . . [Guidelines, p. 10; italics added]”. In this regard, the Panel was significantly more responsive to public concerns than the Atomic Energy Control Board, which neither discusses nor regulates the total population risk from a nuclear waste repository in its three relevant Regulatory Documents (R-71, R-72, and R-104).

Unfortunately, AECL has ignored the Panel’s direction, apparently without even mentioning it. We have only located one passage in the EIS that even remotely or indirectly discusses the decision to ignore the Panel’s direction: Pages 17-19 in R-Postclosure quote the basic guidelines in AECB’s Regulatory Document R-104 (cited in R-Postclosure as “AECB 1987a”). These guidelines refer specifically and repeatedly to “the individual of concern” or to “individual risk requirements”, and never refer to risk on the basis of total population. AECL’s first two sentences immediately after the quotations from R-104 are as follows:

The postclosure assessment of the reference disposal system includes an estimate of the radiological risk that complies with these four guidelines.

Much of our analysis is focussed on estimates of a variable that is measurable: annual dose to members of the critical group.

It must be pointed out that — despite AECL’s use of the plural word “members”, and despite its frequent avoidance of the word “individual” — what AECL calls “a variable that is measurable” is the dose (and from the dose, the health risk) to an individual member of the critical group. (According to the discussion and Figure D-54 in R-Postclosure, p. 502, the median-value size of the critical group is three persons.) All the text, charts, and graphs of “Estimated Mean Annual Dose [Sv/a]” or of “annual dose estimate [ADE]” in AECL’s submissions, covering hundreds of pages, refer only to the dose to an individual member of the critical group, and not to the collective dose or risk on the basis of total population.

This omission is extremely unfortunate, because it makes many extremely important decisions, tradeoffs, and ethical dilemmas simply vanish from view — and from the EIS documents. For example, the SYVAC model, operating only on individual dose and risk, “proves” that contaminating a well that provides drinking water for three people is far worse than contaminating a lake that serves many more people. The lake is larger, providing more dilution and therefore a lower dose to the individual. In reality, the expected total harm to humans would presumably be greater from the lake contamination, but apparently AECL hasn’t asked its staff to use the model to answer that question. (Virtually identical comments could be made about AECL’s “proof” in R-Postclosure, pp. 490-502, that the predicted annual dose decreases as the number of people drinking from a contaminated well increases.)
Similarly, the question of how far from human population concentrations to site a nuclear waste repository is a very important issue that trades off cost versus population risk, but not necessarily individual risk. To take an extreme example: A repository in downtown Toronto would most likely show lower individual doses and risks than the reference repository near Whiteshell: nobody in Toronto drinks well water, and poisons leaching out of the repository would soon reach Lake Ontario, whose enormous volume would provide significant dilution. The fact that millions of people would be put at risk, increasing the total population dose and total harm, simply does not appear from the models, as run by AECL. (AECB’s Regulatory Documents would also apparently permit urban or suburban siting of a repository — ironic because AECB’s Regulatory Documents for reactor siting place limits on total population dose!)

The totally absurd discussion of the impacts of urbanization on the discharge site (in R-Postclosure, p. 56, table 4-1) shows a “real-life” example of how AECL’s (and AECB’s) elimination of this basic and common-sense consideration can lead to sheer idiocy: “Although the discharge site could become urbanized, it is reasonable to expect that overestimates of impact [i.e., dose to the individual!] would always be obtained by assuming the discharge site is rural (Davis et al. 1993). . . . Because impacts are estimated for the group at most risk (the critical group), it is conservative to assume that they have the characteristics of a rural group and that the discharge site is rural.”

Recommendation: The Panel must, once again, direct AECL to model the collective dose or risk on the basis of total population. All the screenings, simulations, sensitivity analyses, design constraints, optimizations, etc., done with the SYVAC computer model must be redone, “on the basis of [both] total population and the individual”.
The potential for additional cancers has not been presented. (But the individual risk of fatal cancer has been deficiently represented.)

Throughout the EIS and R-Postclosure, the estimated radiation doses from the “reference system” repository — given only in terms of individual radiation doses, as discussed above — are translated into what AECL calls “the probability of a health effect”. This translation is a deficient response to the Guidelines in at least two ways:

 As AECL explains (e.g., EIS, p. 297), the very inclusive-sounding “a health effect” actually includes only fatal cancers or serious genetic effects. There is no attempt made to estimate the non-fatal cancers (or non-fatal genetic effects) that the planned repository will cause. Thus, for example, the graphs in Figure 7-7 and Figure 7-9 in the EIS volume (pp. 297 and 299) purport to show “Risk (probability of an individual incurring a health effect/a)” as a function of time, but do no such thing. Any suggestion that an AECL-induced non-fatal cancer is not a health effect is a deficiency in common English usage and common decency, as well as in responding to the Guidelines. (E.g., Guidelines, page 55, directs AECL that “Potential impacts should be expressed in terms that are readily understandable, such as: . . . the potential for additional cancers.”)

 The risks (only individual) of cancer (only fatal) are intentionally underestimated throughout, “as specified by the AECB in R-104 (Appendix B), using 0.02 as the probability of a health effect (fatal cancer or serious genetic effect) per sievert. [EIS, p. 297]” Since 1987 (the date of the AECB’s R-104), both ICRP and AECB have replaced that risk factor with one that is several times higher (as is acknowledged deep in Appendix H, EIS p. 460). Even in a submission to AECB (which this entire AECL submission resembles, but should not), the use of an obsolete, non-conservative risk factor would be a deficiency; in a submission to a FEARO panel, it is absurdly deficient.

Of course, the omission of any calculation of collective risk on the basis of total population, as discussed above, compounds these two deficiencies.
Criteria that relate to risks, and the definitions of safety and acceptability

In Guidelines § 5, page 13, the Panel requires AECL to develop “adequate long-term performance criteria . . . for each of the components of the system, and for the system as a whole. A comparison with regulatory criteria . . . should also be provided.” Guidelines § 5.13, page 18, refers more specifically to “criteria for abandonment or rejection of a vault or sections of a vault . . . “, while Guidelines § 5.2, page 20, refers to the analogous “criteria for the rejection of a rock mass . . . “. Based on our reading of two of AECL’s volumes (the EIS and R-Postclosure), AECL has not developed any long-term performance criteria, adequate or otherwise, at least for the system as a whole. Nor has it provided the requested “comparison with regulatory criteria.” Rather, it has circularly defined “safe” to mean no more than “permitted by regulations”, as follows:
We define safe as meeting criteria, guidelines and standards for protecting the health of humans and non-human biota. Criteria, guidelines, and standards for the protection of human health and the natural environment are specified in legislation, regulatory documents issued by the AECB, and guidelines, as described in Appendix B. Some may also be specified in the licenses issued by the AECB. (EIS, p. 63; “safe” is similarly defined in the Glossary, p. 495.)

The apparently total lack of independent criteria is clearly at odds with the Panel’s direction in the Guidelines sections quoted above. Further, it substitutes narrow and lax regulatory scrutiny by the “industry-friendly” AECB for the much broader scrutiny of an independently appointed, and more broadly representative, Federal Environmental Assessment Review Panel. Finally, by primarily “working backwards” from a computer-model-estimated radiation dose to a future individual, it places far too much emphasis on computer modelling of the repository, which is highly uncertain and error-prone, and also highly dependent on a specific site and therefore beyond the scope of this Panel. This Panel has before it only the “for instance” results of computer modelling of a “reference system”, modeled on a site near the Whiteshell Nuclear Research Establishment in Manitoba — a province with no nuclear generating stations and legislation prohibiting the disposal of out-of-province nuclear wastes.

In addition to the Panel’s own clear direction in the Guidelines sections quoted above, we would remind the Panel, and AECL, of Energy Probe’s long-term views on this topic, as presented in the Scoping and Guidelines phase of this Review:
 What minimum “performance criteria” and how many are appropriate for the decision to bury high level nuclear waste? What levels for these criteria does AECL propose?
. . .
 To what extent should deterministic (“pass fail”, “disqualifying”, or “drop dead”) criteria be applied in the process of site screening or selection? Which such criteria does AECL propose using?
(Energy Probe’s October 22, 1990 submission, p. 2)

We have found several brief references to the notion of “acceptable risk”, but no definition, as requested on p. 9 of the Guidelines.
Adequate proof of safety

Guidelines, page 11, calls on AECL to discuss not only “a definition of safety in relation to the concept”, but also “an outline of what would constitute adequate proof of safety.” Although the documents contain several references to the (inadequate) provisions of the AECB’s Document R-104, we can find no such outline.
Other deficiencies
Possible fissioning of weapons-grade Plutonium
The Panel directed AECL to discuss “the possible changes in the nature and characteristics of nuclear fuel waste due to changes in nuclear power technology or in energy policies (Guidelines, page 4)”, as well as the effect of changes in nuclear technology on the amount of nuclear fuel waste (Guidelines, page 8). One change in nuclear power technology which is currently being proposed by Ontario Hydro and AECL to the U.S. government is the fissioning, in Canada (probably at the Bruce-A Nuclear Generating Station) of fuel containing weapons-grade Plutonium from U.S., or possibly former Soviet, nuclear weapons. Reportedly, the preferred option being proposed by Ontario Hydro and AECL involves the operation of the Bruce-A Nuclear Generating Station for many years longer than is currently planned by Ontario Hydro. Further, in all current proposals discussed in public, the resulting nuclear fuel waste would remain in Canada. This proposal could therefore change both the quantity and the nature and characteristics of the nuclear fuel waste awaiting disposal in Canada. The EIS documents do not discuss these changes, or their impact on the concept.
“Postclosure” retrieval of buried nuclear fuel waste

In Guidelines, §3.3, page 11, “Retrieval of Buried Nuclear Fuel Waste”, the Panel directed AECL as follows:
The EIS should outline plans and procedures which would be required for the retrieval of nuclear fuel waste from a sealed and decommissioned disposal vault under emergency or other circumstances. This should include estimates of the cost of such an operation . . .
Appendix A of the EIS volume refers to two sections in that volume as addressing this topic: § 3.6.6, “Retrievability”, and § 5.8.9, “Waste Retrieval” (EIS, pp. 72-72 and p. 199). Neither provides the cost estimates specified in the Guidelines. Further, the description of “the reference disposal vault” on pp. 42-43 of R-Postclosure makes no mention of the topic at all.
Erroneous exclusion of Chlorine-36 from estimated doses and risks.

Perhaps the most striking error which AECL committed and subsequently detected is the erroneous exclusion of Chlorine-36 from the list of radionuclides of concern. (See EIS p. 315, and R-Postclosure pp. 266-7.) Originally thought to be too insignificant to be included among the 68 radionuclides of concern, it may well turn out to be the single most important cause of modelled long-term radiation dose. (In the EIS documents, AECL only acknowledges that its contribution could be “comparable to radiation doses resulting from Iodine-129”. Of course, Iodine-129 totally dominates the repository’s estimated long-term radiation dose to individuals. (See, e.g., Figures ES-4 and 6-4 in R-Postclosure pp. xiii and 153: “The largest contributor is 129I; in fact, the curve of its ADE [annual dose estimate] coincides with the curve for total ADE.”)

This error, and others that have recently been discovered, should be rectified before this assessment proceeds to a hearing.
The EIS and its models must either use plausible data or the EIS must explain why not.
Through a chance coincidence, explained in a footnote to Table 6-2 on page 166 of R-Postclosure, readers of AECL’s documents can discover that the plant/soil model used in SYVAC contains a discontinuity which, we presume, is not reflected in the reality of plants and soil. We are in no position to examine all of SYVAC’s input data for similarly implausible “artifacts”, and doubt that the Panel or its Scientific Review Group is, either. Accordingly, either we must all simply distrust the integrity of AECL’s data in general, or the job must fall to AECL to indicate where there are physically implausible discontinuities in their data because of the simple combination of algorithms. Preferably, AECL would do further research to reconcile the two algorithms at their boundaries. The Panel must assure that AECL rectifies each of these deficiencies in one way or the other.
The discussion in EIS §3.10, “Timing of Disposal”, does not take account of the information on EIS page 38, concerning “trends in the setting of safety standards”.

Page 38 indicates (and we agree) that there is a trend toward more protective safety standards (either in general or for radioactive contamination in particular), as well as a trend for “new biological information” to increase the risk factors for radiation. Accordingly, there may well be a clear benefit to future populations from delaying the disposal of these radioactive wastes, until standards have become more protective. AECL should be directed to connect these two issues, and also to address the issue of evolving standards in its discussion of alternatives to the concept that delay burial

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Siting a Nuclear Waste Disposal Facility

Elizabeth Brubaker
Borealis Energy Research Association on behalf of Energy Probe
July 28, 1995

Part 1 of Energy Probe’s Submission on The Adequacy of Atomic Energy of Canada Limited’s Environmental Impact Statement on the Concept for Disposal of Canada’s Nuclear Fuel Waste. Submitted to the Federal Environmental Assessment Review Panel.

 

Introduction

In September 1994, Atomic Energy of Canada
Limited (AECL) completed its Environmental
Impact Statement on the Concept for Disposal of Canada’s Nuclear Fuel Waste

(the “EIS“). The following month marked the beginning of a nine-month review of
the EIS. As part of that review,
Energy Probe retained Borealis Energy Research Association as a consultant to
examine approaches to siting. Energy Probe advised Borealis to focus on the
following areas: past and current site selection methods; community
decision-making structures, and processes for the incorporation of these
decision-making structures into site selection decisions; ethical
considerations for site selection; and criteria used by AECL to site a disposal
facility and transport routes.

In describing the first phase of work, Energy
Probe asked Borealis to review the EIS
and supporting documentation on its behalf and to comment on the extent to
which AECL addresses the siting issues raised in the Federal Environmental
Assessment Review Panel’s Final
Guidelines for the Preparation of an Environmental Impact Statement on the
Nuclear Fuel Waste Management and Disposal Concept
(the “Guidelines“).

The following report provides that review. In
general, it documents multiple failures on AECL’s part to produce the
information requested in the Guidelines:
AECL’s review of site selection methods is incomplete, unclear and
insufficiently analytical; AECL fails to examine the applicability of others’
experience to the siting of a permanent high-level nuclear waste disposal
facility; AECL provides insufficient information on key elements of the
proposed approach; and AECL’s analysis of ethical issues is inadequate.

As requested by the Panel, this report refrains
from commenting on the merits of the opinions and conclusions of the EIS. Accordingly, the absence of
critical remarks herein should not be mistaken for endorsement of AECL’s
positions.

It must be noted that funding for intervenors
in this review has been extremely limited, and will not permit them to lead the
kind of expert evidence necessary to remedy the inadequacies documented below.
It is therefore essential that AECL be directed to correct these inadequacies
promptly before any more effort is spent on the review of the merits of the
opinions and conclusions of the EIS.

 

 Facility Site Selection Methods, Processes, and Experiences: The History and Promise of Voluntarism

 The Federal Environmental Assessment Review
Panel’s Guidelines require AECL to
include in its discussion of siting options “the use of past and current site
selection methods, processes, and experiences” (35). Canadian case studies to
be used as analogs could include “mining developments, power plant facilities,
and toxic waste management facilities” (32). In addition, the Guidelines suggest that AECL should, like the Panel, examine plans for siting nuclear waste disposal facilities in
other leading countries: “The Panel will also become aware of the development
of programs for appropriate plans and schedules for siting and construction of
nuclear fuel waste management facilities in these countries” (xi).

 Canadian Experience

In discussing past and current site selection methods, AECL concentrates on those based on the principle of voluntarism. Its EIS mentions two recent Canadian siting processes – in Alberta and Manitoba – in which communities volunteered to host hazardous waste management facilities. The EIS also notes the process now underway to site Ontario’s low-level radioactive waste (66). It does not, however, provide any information or commentary on these processes. One of AECL’s primary reference documents, Disposal
of Canada’s Nuclear Fuel Waste: Public Involvement and Social Aspects
(“Social Aspects“), provides further information on Canada’s experience with voluntary siting processes, concluding that “[r]ecent experience with voluntary siting processes demonstrates that communities are willing to be considered as potential host communities” (194). But its discussion of the above-noted experience, admittedly “brief” (164), is unsatisfactory. Covering less than two pages, it contains virtually no information on what made the successful processes work, what their key components were, what opposition they met, what other problems they faced, or how the siting organization addressed such problems. Nor does AECL discuss the long-term impacts resulting from the experiences analysed, despite instructions that its analysis should include “evaluation of the changes or
impacts, over appropriate time periods, that could be viewed directly or indirectly
as having resulted from activities or aspects of the major projects selected as
analogs” (Guidelines, 47‑48).

Nowhere does AECL discuss the applicability ofspecific case studies to the siting of a repository for high-level radioactive waste. In the absence of an analysis of the similarities and differences in public attitudes towards the facilities, and of how any differences might
affect sitability, it is impossible to judge whether past experiences might be replicable in the context of high-level radioactive waste disposal.

The comments that AECL does offer regarding the similarities or differences among various types of controversial facilities contradict one another. AECL downplays potential differences in its volume summarizing the EIS (the “EIS Summary“), suggesting, “The types of potential effects identified are not unique. Those identified for the disposal
facility are similar to effects encountered at large civil engineering projects, mining developments, nuclear generating stations, waste management facilities, and other large‑scale projects” (41). This echoes an earlier statement that “[t]he potential socio‑economic effects of disposal, both adverse and beneficial, are to some degree similar to those associated with any large‑scale facility or transportation system.” AECL follows that statement with the concession that “the potential for radiological effects on human
health and the natural environment might be of concern to people living near a disposal facility and along the transportation route, despite the low radiological risk estimated by the safety assessment” (EIS Summary, 39, emphasis added).

AECL’s reluctance to admit that the public could well be uniquely terrified by the prospect of living near a high-level nuclear waste repository sharply contrasts with its discussion in Social Aspects of the uniqueness of nuclear waste. There it acknowledges that “Canadians feel personally at risk, no matter where they live, from nuclear waste more than from any other health hazard” (125).  “[M]any members of the public,” it explains, “view nuclear waste as uniquely hazardous and difficult to handle. The risk associated with it is seen by some people to be absolute rather than relative, and some hold the view that unknown catastrophic events are somehow inevitable” (117). AECL’s identification of both dread and catastrophic potential as affecting the public’s evaluation – and, presumably, acceptance -of risks (xiii) further calls into question the direct applicability of other siting experiences to the siting of a high-level nuclear waste repository.

AECL’s discussion of Canada’s experience with voluntary siting processes omits several important examples. Although instructed to include in its analysis “justification of the selection of the case studies under consideration” (Guidelines, 47‑48), AECL fails to explain its reasons for studying certain cases and ignoring others. It offers no reason, for example, for omitting Quebec’s experience with siting a hazardous waste facility in the early 1980s.

Nor does AECL, in either the EIS or Social Aspects, explain its omission of the Meadow Lake Tribal Council’s commissioning of a study of the feasibility of hosting a high-level
nuclear waste repository in northern Saskatchewan – a story that made the news as early as April 1994. In fact, “aboriginal considerations” fill only two pages in Social
Aspects
‘s chapter on site selection, under the heading of “framework for public involvement in siting a nuclear fuel waste disposal facility” (178‑79). Since experience in both Canada and the United States suggests an unusual degree of aboriginal interest in the
hosting of nuclear facilities, AECL’s coverage is inadequate.

AECL also fails to examine voluntary siting processes in a different field: municipal waste disposal. Audrey Armour (1990) describes the Peel Region’s standard (i.e., non-voluntary) process for siting a municipal landfill in a “state-of-the-art” review of facility siting processes commissioned by AECL. The inclusion suggests that municipal landfills are relevant to high-level nuclear waste repositories. If such experience is indeed relevant, AECL has erred in neglecting to review voluntary siting processes for landfills, such as that
utilized by Browning-Ferris Industries in Manitoba.

International
Experience

AECL’s treatment of international siting
experience is even less satisfactory than its treatment of Canadian experience.
Appendix C of the EIS, “Nuclear Fuel
Waste Management in Countries Other Than Canada,” barely touches on siting
processes. And the discussion of siting in Social
Aspects
addresses just one example: the proposed Monitored Retrievable
Storage (MRS) facility in the United States. As
the MRS siting process represents a rare attempt to voluntarily site a
high-level nuclear waste facility, and shares a number of the characteristics
of the siting process proposed by AECL, it merits careful review.
Unfortunately, AECL, devoting just one paragraph to the MRS, fails to produce a
useful analysis. It appears that it has looked at only one source more recent
than 1992. It specifically mentions only the interest expressed by the
Mescalero Apache (165), who are  now
pursuing a storage facility outside of the MRS process. And its discussion
shares the failures listed above, notably a lack of detail on the process, its
reception by potential hosts and the broader community, and its applicability
to the siting of a permanent repository.

Nowhere does AECL discuss unsuccessful international experience with the voluntary siting of
disposal facilities for low-level radioactive waste, hazardous waste, or
municipal waste. Information on the difficulties experienced by, respectively,
Nebraska, Minnesota, or New York would provide insight into how and why
voluntary siting processes may fail and, conversely, what changes may be
required in order for them to succeed.

 

 

Alternative
Methods or Processes

The Environmental Assessment Review Panel
requested more from AECL than a review of case studies: “In order to achieve a
clearer understanding of the concept, in particular the socio‑economic aspects,
the proponent is encouraged to make use of appropriate analogs, natural and
otherwise, appropriate case studies of actual projects, and scenario analyses”
(Guidelines, 2). “Scenario analyses”
should include alternative methods or processes suggested in the siting
literature or tested in related fields. AECL reviews no such scenarios.

One method, recommended by a number of
academics and industry representatives but ignored by AECL, entails the use of
auctions to site controversial facilities. Herbert Inhaber (1991, 1992), for
example, recommends a reverse Dutch auction. Howard Kunreuther and Paul
Kleindorfer (1986), in contrast, suggest a sealed bid auction.

Another method, resting on strong property
rights, would enable individuals affected by nuisances to obtain injunctions
against noxious facilities, in effect giving them veto power over such
facilities. But AECL barely mentions property rights when discussing siting.
While it acknowledges in Social Aspects
that risk includes “the possible loss or diminution of some valued aspect of .
. . the perceived rights of surface land ownership” (115), it fails to discuss
the nature of such rights (perceived or real) and their implications for
siting.


 

AECL’s
Proposed Approach

 

AECL proposes a siting process based on the
principle of voluntarism: “A community would have the right to determine
whether or not it was willing to be a host community” (EIS Summary, 23). AECL’s rationale for recommending a voluntary
process is pragmatic: a voluntary process is more likely to succeed than an involuntary one. As the EIS suggests, “if people near a proposed
site feel they were not . . . offered the right to refuse the facility, then
they would likely oppose the project regardless of the validity of the
arguments for the suitability of the site . . . [P]eople consider the risk of
an activity to be lower or more acceptable if . . . they engage in or accept
the activity voluntarily” (65).

 

AECL remains vague about the details of a
voluntary siting process: “For each community that was willing to be considered
as a potential host for a disposal facility, the approach would be to make the
process fit the community” (EIS Summary,
25). Such flexibility, while potentially admirable in practice, contributes
little information about how the proposed siting process might work. Nor does
it distinguish between the flexibility to do good or to work harm. The Panel
cannot be expected to give AECL free rein in the name of flexibility. AECL should
describe realistic scenarios and recommend minimum standards without
compromising its proposed flexibility.

A number of issues concerning voluntarism
require further discussion or clarification. Specifying who could volunteer for
a facility – defining a host community and distinguishing it from an affected
community – should be a priority. While AECL notes the importance of defining
the boundary of a potential host community (EIS, 66;
Social Aspects
, 107), it offers little guidance. In fact, it is often
intentionally unclear on the issue: “What constitutes the boundaries of a
potential host community would need to be clearly defined during the siting
stage. The boundary could be based, for example, on municipal boundaries. A
potential host community could include more than one administrative unit, such
as several local municipalities or a regional municipality” (Social Aspects, 183).

Even AECL’s efforts to be more precise fail:
“In an area over which a community had jurisdiction, a disposal site would be
sought only with the support of the community. On crown land, a disposal site
would be sought only with the consent of the government that had jurisdiction.
The implementing organization would encourage the government to identify a
potential host community for a disposal facility on crown land in order to
ensure public involvement in siting decisions pertaining to that potential
site. Since a community would have the power to veto the selection of a site within its jurisdiction, this would
ensure that local concerns were addressed and that local criteria for
acceptance were met” (Social Aspects,
174, emphasis added; echoed in EIS
Summary
, 23). It remains unclear if, under AECL’s proposal, a nearby
community would actually have veto power over a facility on Crown land, since
that land would not be within its jurisdiction. Similar questions remain about
the rights of people living in unincorporated areas or living just outside a
potential host community’s boundary.

Another difficulty regarding the definition of
affected communities concerns native lands. While AECL maintains that a “siting
process that adheres to the principle of voluntarism would mean that a disposal
facility would not be imposed on an aboriginal community” (Social Aspects, 179), it offers no specific assurances regarding an
aboriginal community’s traditional lands.

Despite its instructions to include
“definitions of . . . acceptability” and “identification of a variety of
community decision‑making structures, and processes for the incorporation of
these decision‑making structures into site selection decisions” (Guidelines, 9, 35), AECL provides little
guidance on the subject. It notes a number of possible decision-making methods:
“How a community would decide whether or not to participate in siting and
whether and under what conditions it would be prepared to remain in the process
would need to be determined by the community itself. The means by which a
community would express its decision could include resolution by local
municipal councils, recommendations from a citizens’ committee appointed by the
community, or a referendum organized by the community” (Social Aspects, 183; echoed in
EIS
, 67). AECL fails to analyse the merits of these various methods. It
ignores the literature concerning conflicts between communities’ interests and
the interests of their elected politicians. It suggests no method of ensuring
that municipal councils don’t grant themselves powers that the citizens would
rather hold. And it proposes no minimum requirements – for example, support
from a three-quarters majority in a referendum – that potential host
communities must meet. Finally, AECL fails to note that the Canadian process
for siting a low-level radioactive waste disposal facility includes all three of the decision-making
hurdles mentioned in the EIS: both
town councils and special citizens’ committees have had impressive
decision-making authority, and the citizens must approve the proposed
arrangement in a referendum. AECL must explain why the process for nuclear fuel
waste should have fewer safeguards than that for less hazardous low-level
waste.

While allowing some details of the process to
remain flexible, AECL should recommend principles to ensure that the
decision-making process protects citizens against overly-ambitious municipal
governments, protects minorities against majorities, and ensures that an accepted facility is actually an acceptable facility.

Lastly, AECL remains vague about the powers
held by non-host communities affected by the proposed waste repository:
“Potentially affected communities that are not potential host communities would
establish with the implementing organization methods for consultation that
would provide opportunities for their views to be taken into account in
decision making” (Social Aspects, 171‑72;
echoed in EIS Summary, 26). Given the
frequent conflicts between host communities and their neighbours in other
voluntary siting processes, more detail is required to ensure the adequate
protection of those outside of the host’s boundaries.

 


Transportation
Route Selection Methods, Processes, and Experiences

AECL’s
Proposed Approach

 

In contrast to its approach to siting a
disposal facility, AECL does not propose using community acceptance as a
criterion for selecting transportation routes to a disposal facility. While it
notes that during the scoping meetings some suggested “that public approval
should be required in order for nuclear waste to be transported through or near
their community,” and that a 1987 survey showed that, outside of northern
Ontario, “obtaining an endorsement from local municipal officials would make
transportation more acceptable for 53% of Ontarians” (Social Aspects, 103, 104), it excludes voluntarism from its list of
principles governing transportation issues. AECL makes no attempt to justify
its choice of public involvement rather than public control.

AECL’s proposed criteria for public involvement
remain vague. Although required to discuss “public involvement with decisions
concerning the choices of transport modes, routes, and methods of operation” (Guidelines, 40), AECL proposes no
specific methods of involving the affected public in transportation choices.
Instead, it merely states, circularly, “The organization(s) would consult with
communities along the potential transportation routes to establish a procedure
to seek and address their views” (EIS,
161). Nor does it attempt to ensure that public input is meaningful or that,
with route selection occurring after site identification (EIS, 161), certain routes do not become inevitable, making
consultation a sham.

 

Finding
a Volunteer Host: The Components of a Successful Voluntary Siting Process

 

Individual
or Community Control

AECL identifies control as a key component of a
successful voluntary siting process. It explains in the EIS, “Research into people’s perception of risk . . . suggests that
people consider the risk of an activity to be lower or more acceptable if . . .
they believe they have some ability to control the risk” (65). Further detail
appears in Social Aspects:
“Experience in the United
States . .
. indicates that more control over the operation of the facility by local
people was the most important factor in obtaining the community’s acceptance. .
. . In 1988, a survey commissioned by AECL asked Canadians what conditions
would make siting a nuclear waste disposal facility near their community more
acceptable to them, and it was found that people considered community control
in siting decisions and independent monitoring of the facility (another way of
facilitating control) by far the most important” (129‑30).

AECL proposes a process of undefined community
control: “Each potential host community, and later the host community, would
share in decision making as negotiated” (EIS
Summary
, 23). Leaving details to be negotiated at a later date should not
excuse AECL from supplying sufficient detail to enable the Panel to envision
specific realistic processes, their effectiveness, their limits, and their
implications.

AECL fails to examine the importance, in
previous or current voluntary siting processes, of empowering prospective host
communities to choose their preferred disposal method. Likewise, it ignores the
potential role of this element of community control in its proposed method of
siting a high-level nuclear waste facility; it simply assumes that the siting
process will involve a single deep geological repository. Although required by
the Panel to discuss “the implication of a number of separate or dispersed
disposal facilities” (Guidelines,
12), nowhere does AECL examine whether multiple long-term disposal sites might
be more easily sited than one repository. Nor, despite the requirement to
examine long-term above ground storage  (Guidelines, 12), does it analyse whether
monitored retrievable storage (be it at a centralized facility or at power
generation sites) would be more sitable still.

 

Compensation
and Incentives

In the EIS,
AECL acknowledges compensation’s key role in encouraging people to accept a
potential risky facility: “Research into people’s perception of risk . . .
suggests that people consider the risk of an activity to be lower or more
acceptable if . . . they benefit from the activity” (65). In Social Aspects it notes, “Researchers
suggest that the adverse perception of risk might be reduced more easily by
increasing the salience of associated benefits than attempting to convince the
public that the risks are small” (131).

AECL pays surprisingly little attention to financial compensation and incentives,
either when analysing experience elsewhere or when proposing a siting process
for a Canadian high-level nuclear waste facility. While it describes measures –
job creation and the provision of various amenities – used to “manage” the
socio-economic impacts of other projects (EIS,
198), its analysis of other siting experiences contains virtually nothing on
the role of financial incentives. In some cases, such as the siting process for
an MRS facility in the United States (where communities were offered $100,000
for merely expressing a non-binding initial interest in considering a facility,
and can expect to receive $10 million annually for hosting an operating
facility), AECL’s oversight is inexcusable.

AECL also fails to examine alternative
compensation methods suggested in the literature regarding both siting and
liability. An analysis of the potential role of auctions, community buy-outs,
and the payment of damages for nuisances (including perceived risks) under
common law property rights regimes would assist the Panel considerably in
making an informed decision.

As with other issues, AECL’s proposal for
compensation is unacceptably vague. Benefits, it sensibly suggests, “would be
negotiated with the host community” (Social
Aspects
, 176). Although it implies that benefits might be significant,
leaving a community “better off than it would have been without the facility” (Social Aspects, 203), nowhere does it
suggest their possible magnitude. Here, again, an examination of experience
elsewhere would be useful. For example, the United States
proposes to make annual payments of $20 million to benefit the community that
ultimately hosts a permanent high-level nuclear waste disposal facility. A
successful voluntary process could well require greater incentives. Such
incentive levels could have a considerable impact on the budget and should be
discussed fully and frankly.

AECL expresses concern that offering financial
incentives to host a facility “could be perceived as bribery. . . . Extreme
care should be exercised in negotiating trade‑offs so as to avoid the
perception that there is an attempt to “bribe” local residents to accept
project risks” (Social Aspects, 112,
135‑36). It does not, however, present opposing views, such as Herbert
Inhaber’s (1991, 1992) suggestion that such a concern is unfounded since
incentives share none of bribery’s three essential characteristics; unlike
bribes, incentives are not used in pursuit of an illegal act, they are not
offered under the table, and they are not specifically targeted.

AECL’s treatment of compensation for the
adverse impact of transportation is also unsatisfactory. It fails to review
others’ experience, such as the Ontario Waste Management Corporation’s
consideration of compensating those along routes to its proposed toxic waste facility
or Browning-Ferris Industries’ policy for compensating those along roads
leading to the Ridge municipal landfill near Blenheim, Ontario.
Furthermore, it is unclear whether – and how
– AECL proposes to compensate people along its transportation routes.
While it suggests “managing effects” (Social
Aspects
, 191), it makes no mention of monetary compensation.

Waste
Reduction

AECL makes it very clear that it does not
intend to discuss the role of waste reduction in the siting of controversial
facilities: the “terms of reference excluded consideration of reduction of the
waste at source by reducing the generation of nuclear energy. . . . The
question of how widely nuclear power is utilized, or how provinces choose to
generate electricity, is not something that can be answered by the waste
disposal concept. The concept is designed only to provide a means for the safe
disposal of the waste that has already been produced, continues to be produced,
and may be produced in the future” (Social
Aspects
, 64).

Although AECL acknowledges that other aspects
of the nuclear fuel cycle may influence the public’s perception of the disposal
concept (Social Aspects, ii), it
fails to note that some, such as Barry Rabe (1991, 1994), consider waste
reduction to be a critical element in successful voluntary siting process. If
reducing waste at the source is essential to ensuring a successful siting
effort, the option must be included in a comprehensive discussion of the
process. AECL should, at a minimum, examine the role of waste reduction in
other successful voluntary siting processes and comment on how its own failure
to consider waste reduction may affect the replicability of these processes.


Trusted
Institutions

AECL discusses the importance of trusted
institutions in the voluntary siting of controversial facilities. Obviously,
people are more likely to accept facilities perceived to be less risky. And,
AECL explains, “Research into people’s perception of risk . . . suggests that
people consider the risk of an activity to be lower or more acceptable if . . .
they trust the organization responsible for the activity” (EIS, 65).

Furthermore, AECL notes “a lack of confidence
in government and industry” (Social
Aspects
, 61; also see 62, 64) and that “building trust is much more
difficult than losing it” (Social Aspects,
132). It does not, however, pursue the matter or its implications for the
proposed siting process. It fails to examine the public perceptions of the
institutions involved in previous successful and unsuccessful siting
experiences, how they differed from public perceptions of Canada’s nuclear
institutions (including AECL itself), and how the differences might affect the
applicability of the experiences in one field to that in another. Of course,
these considerations should also influence Canada’s
choice of “implementing organizations” for nuclear fuel waste management and
disposal.

The
Likelihood of Success: Predicting Site Availability

Not surprisingly, the Panel instructed AECL to
comment on the likelihood that its proposed siting process would actually
result in the selection of a site. The discussion of options in the site
selection process, it said,  should
include “potential availability of sites in Canada” (Guidelines, 35). It should also include
“an analysis of the uncertainties involved in the identification and
characterization of candidate sites . . . and the consequences of these
uncertainties” (Guidelines, 34).

AECL never clearly addresses the issue of
potential site availability. Its comments on the subject seem contradictory. On
one hand, it notes the historic unpopularity of the prospect of hosting a
disposal facility: “A 1984 survey showed that 14% of Ontario
residents (up from 8% in 1983) and 22% of northern Ontarians would favour a
disposal facility near their community, provided the disposal method was found
to be safe” (Social Aspects, 35).

The unpopularity of nuclear waste disposal
facilities does not, on the other hand, prevent AECL from assuming that its
proposed siting process will be successful: “The application of these
principles of safety and environmental protection, voluntarism, shared decision‑making,
openness, and fairness could result in a site for a nuclear fuel waste disposal
facility that is both technically and socially acceptable” (Social Aspects, 195). A process based on
these principles, it adds more confidently, “would be likely to succeed” (Social Aspects, 203). It even suggests
that the process may be too
successful – that it may produce multiple candidate sites (Social Aspects, 185, 188).

AECL does not, however, address the opposite
possibility. It completely ignores the likelihood or consequences of failure.
It suggests no course of action in the event that no community volunteers to
host a site. It hints at one option: “some people feel that some caution is
required in granting host communities the power to veto siting, arguing that if
all potential host communities voted against a site, the facility would have to
be imposed on some community, which may not be the safest or fairest method” (Social Aspects, 108). It says nothing
about the option of increasing the financial incentives offered to potential
host communities. And it doesn’t explore the possibility of exporting waste to
a volunteer community south of the border. That option it dismisses without any
discussion of the provisions of the Free Trade Agreement or examination of
whether Canada’s waste would be welcome in an American MRS facility: “Although
there is extensive co‑operation among nations producing electricity from
nuclear energy to exchange information on nuclear waste disposal, Canada cannot
expect to dispose of its nuclear fuel waste in another country” (EIS Summary, 6).

Ethical
Considerations

Individual
Rights v. Community Rights

In responding to the Panel’s request that its
discussion of options in the site selection process include “a framework of
ethical considerations for site selection” (Guidelines,
35), AECL examines several philosophical perspectives on the nature and extent
of individual rights. AECL’s comments on the issue can be found primarily in Social Aspects. There it presents the
debate as one between utilitarianism, egalitarianism, and libertarianism (xiv‑xv).
AECL admits that “there does not appear to be agreement on which ethical
framework is best suited to siting a nuclear fuel waste disposal facility”
(172). In fact, it suggests that competing ethical frameworks may be
irreconcilable, noting “a clash between at least two different value systems
(societal rights and individual rights), neither of which accepts the premises
upon which the other operates” (143). Regardless, AECL firmly rejects
libertarianism in favour of  a modified
utilitarianism.

AECL’s use of the libertarian label is
confusing: it could apply to all those who advocate individual liberty, or it
could apply only to those who embrace a particular political philosophy or
party. AECL limits its discussion of individual rights to contemporary
libertarian philosophers, giving no indication of the breadth or depth of philosophical
interest in the issue. It doesn’t, for example, even mention liberalism, whose
founder, the seventeenth-century English philosopher John Locke, drew on a
long-established legal tradition of respect for individual rights.

AECL fails to explain its dismissal of a siting
approach based on respect for individual rights. Although it suggests that a
rights-based approach could not account for the needs of future generations
(144), it neither supports this conclusion nor reconciles it with the inherent
respect for others’ rights
traditionally found in rights-based approaches. Nor does it explore siting
processes that respect individual rights, or give any indication of whether
such processes could fruitfully be applied to the siting of nuclear waste facilities.
Nowhere does it examine the possibility that a siting approach based on
individual rights might be more palatable and therefore more likely to succeed.

Posted in Nuclear Power, Nuclear Safety, Power Generation in Ontario | Leave a comment

China human rights fact sheet

March 1, 1995

Human rights violations in the People’s Republic of China (PRC) remain systematic and widespread. The Chinese government continues to suppress dissenting opinions and maintains political control over the legal system, resulting in an arbitrary and sometimes abusive judicial regime. The lack of accountability of the government and the Chinese Communist Party (CCP) means that abuses by officials often go unchecked. This fact sheet identifies the most common types of abuses, including arbitrary detention, torture and ill-treatment of prisoners, severe restrictions on freedom of expression and association and violations specific to women.

1. Controls on Expressions and Associations
2. Torture and Ill-Treatment of Prisoners
3. Lackof Judicial Independance and Due Process
4. Death Penalty
5. Tibet
6. Women
7. Resource List

Controls on Expressions and Associations

The PRC detains individuals for exercising their rights to freedom of association, freedom of religion and freedom of expression, including the right to impart and receive information, and other basic rights. The total number of persons in China detained without charge, sentenced administratively to reeducation or reform camps, or held by other means, solely for peacefully exercising these rights is unknown. However, that figure is estimated to be far in excess of the approximately 3,000 individuals that the PRC currently acknowledges imprisoning for “counter-revolutionary” or political crimes. Many of those detained are held under circumstances that constitute clear violations of due process. Such violations include lengthy detention without charge or trial and depriving defendants of access to legal counsel.

Restrictions on Independent Organizing: Although the Chinese Constitution guarantees freedom of association and assembly, national regulations severely limit association and give the authorities absolute discretion to deny applications for public gatherings or demonstrations. In practice, only organizations that are approved by the authorities are permitted to exist, and any organization that is not registered is considered “illegal.” In this manner, independent advocacy on labor, human rights, environmental, development or political issues is effectively outlawed. The CCP-controlled labor union and women and youth organizations are the only permitted avenues for organizing in these areas. Unofficial labor groups have been a particular target for suppression. In December 1994, the Beijing Intermediate People’s Court imposed severe sentences of between 15 and 20 years’ imprisonment on three prisoners of conscience, convicted of “leading counter-revolutionary organizations.” The sentences, based on the defendants’ alleged formation of non-government-approved organizations, were the harshest delivered to political dissidents in recent years.

On 4 June, 1994, the fifth anniversary of the Tiananmen Square crackdown, China promulgated new implementing regulations for the 1993 State Security Law. The repressive new measures threaten the few legal means of operation left to democracy and human rights activists, independent religious adherents and other independent voices, by criminalizing: contact with and funding from foreign organizations defined as “hostile”; the publication or dissemination of “written or verbal speeches” or “using religion” to carry out activities “which endanger state security;” and the creation of “national disputes.” The regulations also give state security officials virtually unlimited power to detain individuals, confiscate property and determine what constitutes a “hostile” organization.

Restrictions on Free Speech and the Media: Although the PRC’s 1982 Constitution guarantees citizens freedom of expression and of the press, its preamble mandates adherence to “four basic principles”– the CCP’s leadership, socialism, dictatorship of the proletariat and Marxism-Leninism Mao Zedong Thought. In practice, the PRC employs a wide range of controls that violate the right to free expression and interfere with independent media. These include severe restrictions on contact between foreign news media and Chinese viewed by the government as critical of the regime. An extensive censorship bureaucracy licenses all media outlets and publishing houses and must approve all books before publication.

The primary mechanism of control over the news media and publishing is self-censorship. Chinese journalists, editors and publishers are expected to make the information they disseminate conform to CCP Propaganda Department guidelines. For example, news coverage is required to be “80% positive and 20% negative.” Sanctions for infringements range from official criticism of the coverage to the demotion, firing or imprisonment of the individuals responsible and the closing or banning of the offending publication.

Dissidents who make their opinions known to the foreign media are often subject to threats, detention, harassment, intensive surveillance or imprisonment. During 1994, at least 20 Chinese writers, journalists, editors and publishers were persecuted in connection with their work. Also during the year, foreign correspondents from the British Broadcasting Corporation, Newsweek, Reuters, United Press International, The Wall Street Journal, The Washington Post, U.S. television networks (NBC, CBS) and other foreign media outfits were detained and interrogated by PRC police regarding their work as journalists, including the interviewing of Chinese dissidents and students and filming in Tiananmen Square. Police also banned broadcasts of CNN in Beijing hotels for five days surrounding the fifth anniversary of the 4 June 1989 military crackdown on democracy demonstrators.

Suppression of Religious Freedom: The PRC prohibits all religious activities outside establishments registered under the official branches of four state-recognized religions (Buddhism, Taoism, Christianity and Islam), established by the PRC government during the 1950s, through which Chinese and Tibetan religious adherents are required to practice their faith. Individuals conducting or participating in public worship without government authorization, including Catholics loyal to the Vatican and Protestants who worship in house churches, have been arrested, detained, placed under close police surveillance or internal exile, fined and, in some cases, tortured. PRC police have also confiscated religious literature and church property, and human rights organizations have documented the closure of hundreds of house churches since 1989.

China’s laws restricting contact with foreign coreligionists, prohibiting parents from exposing children under the age of 18 to religion, and outlawing nongovernment-controlled churches violate the UN Declaration on the Elimination of All Forms of Intolerance and of Discrimination Based on Religion or Belief. In January 1994, the PRC government increased restrictions on religious practice by foreigners in China through State Council Decrees 144 and 145. Decree 144 states that foreign nationals may bring in religious materials only “for their own use,” and bans materials deemed “harmful to the public interest.” The decree also prohibits evangelizing, establishing religious schools and other missionary activities. Decree 145 gives authorities substantial leeway in restricting religious activities deemed harmful to “national unity” or “social stability,” and limits the practice of religion by foreign nationals to state-sanctioned places of worship.

Torture and Ill-Treatment of Prisoners

Torture of detainees is endemic in Chinese detention centers and prisons. Although China became party to the UN Convention Against Torture in 1988, the government has not taken effective measures to diminish the risk of prisoners being tortured or ill-treated. Despite strong evidence of torture in several cases of death in custody, state prosecutors have refused to release autopsy results to families or to initiate investigations. In many detention centers, beatings, inadequate food and poor hygiene appear to be a routine part of the process of eliciting confessions and compliance from detainees. Such treatment is applied to ordinary prisoners as well as political detainees.

According to prisoner reports, methods commonly used by guards include: beatings using electric batons; rubber truncheons on hands and feet; long periods in handcuffs and/or leg irons, often tightened so as to cause pain; restriction of food to starvation levels; and long periods in solitary confinement. Furthermore, corrupt authorities at detention centers, prisons and labor camps have extorted large sums of money from families of detainees for the state’s provision of “daily supplies” and “medical expenses.”

Despite continuing efforts by the UN Special Rapporteur on Torture, the International Committee of the Red Cross and other humanitarian organizations, PRC officials have not agreed to allow open and unannounced visits to prisoners. PRC authorities acknowledge that there are some 1.2 million prisoners and detainees in China.

Lack of Judicial Independance and Due Process

Few legal safeguards exist in China to ensure fair trials, and the judicial system is controlled at every level by CCP political-legal committees that may determine the outcome of cases before the court hears evidence presented at trial. Legal scholars within China have called for an end to this widespread practice of “verdict first, trial second.” With the political-legal committees exercising extensive control, detainees are highly unlikely to receive fair, impartial hearings that are free from official manipulation.

China’s Criminal Procedure Law provides for detainees to have access to lawyers no later than one week before trial. However, even this minimal protection is not always observed. Prisoners typically cannot call witnesses for the defense or question witnesses against them. In politically sensitive cases, lawyers have been instructed that they may enter a not-guilty plea only if they get approval from the judicial administration. Even in death-penalty cases, appeals are usually cursory, and defendants may have only several days to file an appeal.

Arbitrary Detention: In addition to judicial convictions, PRC authorities consistently use administrative procedures to detain hundreds of thousands of Chinese and Tibetans each year.

Individuals sentenced administratively by police are not charged or brought before a judge, thereby denying them access to a lawyer and the right to defend themselves. The majority of these individuals are ordinary people, but democracy and human rights activists, independent religious adherents and worker-rights advocates are also frequently detained in this way.

The most common forms of administrative detention are:
1) “reeducation through labor,” under which police, without trial, can send individuals to labor camps for up to four years; and
2) “shelter and investigation,” under which police can detain people without charge or trial for up to three months, a time limit that is routinely ignored.

The UN Working Group on Arbitrary Detention has determined that the practice of “reeducation through labor” is “inherently arbitrary” when intended for “political and cultural rehabilitation.” According to PRC government sources, 100,000 people are sent to “reeducation through labor” camps and one million are “sheltered” each year.

Conditional Releases with Continued Deprivation of Rights: The PRC infrequently has released political prisoners of conscience before the completion of their sentences, predominantly as a result of international pressure. However, those released have been forced into exile, subjected to continuing police surveillance and harassment or, in some cases, detained again for alleged violations of the restrictive conditions of parole or new “crimes” of free expression. Many former prisoners of conscience are not granted the identity cards necessary to gain employment or travel without express official permission.

Death Penalty

During the past two years, there has been a dramatic increase in the use of the death penalty in China. This growth in the number of death sentences and executions is partly due to anti-crime campaigns launched by the government. Defendants can be put to death for criminal offenses, including nonviolent property crimes such as theft, embezzlement and forgery. In 1993, 77% of all executions worldwide were carried out in China. On a single day, 9 January 1993, 356 death sentences were handed down by Chinese courts; 62 executions took place that day. During that year alone, 2,564 people were sentenced to death. At least 1,419 of them are known to have been executed. The total number of death sentences and executions is believed to be higher. Defendants do not always have access to lawyers, and when a lawyer is available, he or she usually has no more than one or two days to prepare a defense. Death sentences have been imposed based on forced confessions and are often decided in advance of the trial by “adjudication committees,” thereby circumventing defendants’ rights to a fair and public hearing and presumption of innocence.

Tibet

In Tibet, hundreds of Tibetans have been incarcerated for peacefully expressing their political and religious beliefs. Conditions in prisons are reported to be dismal, with numerous accounts of torture and ill-treatment. In particular, PRC law enforcement officials have perpetrated violent acts against Tibetan women in detention centers and prisons. Buddhist nuns and lay women have been subject to torture or violent, degrading and inhuman treatment, including assault, rape and sexual abuse. In June 1994, one Tibetan nun died while in custody, reportedly as a result of a beating by guards. PRC authorities also have severely restricted religious practice; out of the 6,000 Buddhist monasteries that were destroyed by the PRC since its 1949 invasion of Tibet, only a few hundred have been rebuilt.

PRC policies, including population transfers of hundreds of thousands of Chinese into Tibet, threaten to make Tibetans a minority in their own land and to destroy Tibetans’ distinct national, religious and cultural identity.

Women

The Chinese Constitution and other laws provide equal rights for men and women in all spheres of life, including ownership of property, inheritance and educational opportunities. Equality between the sexes has been a part of the CCP’s agenda from its early days, and women’s rights are perceived to be in a separate category from human rights. Therefore, women’s organizations in China, even though they remain under CCP control, are able to advocate effectively on some issues involving abuses of women’s human rights. However, when women’s rights or interests conflict with Party or government policy, the latter takes precedence. This means, for example, that abuses related to the family planning policy are not reported in the media or discussed publicly. Information about other issues, such as the extent of domestic violence, trafficking in women or abuses directed at lesbians, is effectively prevented by the CCP’s injunction that most news should be positive. Thus, the controls on freedom of expression and association, which so affect democracy and human rights activists, have a strong impact on women’s human rights as well.

Violence Against Women: According to some researchers, spousal abuse is far too common and, in many parts of the country, still socially acceptable. However, comprehensive statistics about the extent of domestic violence are not available or have not been made public. The official All-China Women’s Federation (ACWF) has been studying this problem and seeking solutions.

Few battered women have the opportunity to escape abuse, because shelters and other resources are not available. Women are under considerable social pressure to keep families together regardless of the circumstances. Legal action is not taken against batterers unless the victim initiates it, and if she withdraws her testimony, the proceedings are ended.

Abduction and Trafficking of Women: Trafficking and sale of women as brides or into prostitution is a serious problem in certain parts of China, and Chinese women have been sold into brothels in Southeast Asia. The PRC government has enacted various laws to combat the sale of women, but the statistics released by the government do not reliably indicate the scale of the problem. PRC officials stated that there were 15,000 cases of kidnapping and trafficking in women and children in 1993. Yet according to one estimate, 10,000 women were abducted and sold in 1992 in Sichuan Province alone.

Until recently, the authorities have not prosecuted men who purchase women as wives; thus, the trade has continued unabated. Official action to rescue victims of trafficking is generally initiated only if a complaint is made by the woman or her family. Local officials often turn a blind eye, even formally registering marriages into which the woman has been sold.

Discrimination in Employment and Education: The PRC ratified the Convention on the Elimination of All Forms of Discrimination Against Women in 1980 and enacted the Law on the Protection of Women’s Rights and Interests in 1992. However, open discrimination against women in China has continued to grow during the period of reform of the last 15 years.

According to PRC government surveys, women’s salaries have been found to average 77% of men’s, and most women employed in industry work in low-skill and low-paying jobs. An estimated 70 to 80% of workers laid off as a result of downsizing in factories have been women, and, although women make up 38% of the work force, they are 60% of the unemployed. At job fairs, employers openly advertise positions for men only, and university campus recruiters often state that they will not hire women. Employers justify such discrimination by saying that they cannot afford the benefits they are required to provide for pregnant women, nursing mothers and infants.

The proportion of women to men declines at each educational tier, with women comprising some 25% of undergraduates in universities. Institutions of higher education that have a large proportion of female applicants, such as foreign language institutes, have been known to require higher entrance exam grades from women.

Although China has a law mandating compulsory primary education, increasing numbers of rural girls are not being sent to school. Rural parents often do not want to “waste” money on school fees for girls who will “belong” to another family when they marry. According to official statistics, about 70% of illiterates in China are female.

Violations Resulting from Family Planning Policy: The Chinese Constitution mandates the duty of couples to practice family planning. Since 1979, the central government has attempted to implement a family planning policy in China and Tibet that the government states is “intended to control population quantity and improve its quality.” Central to this initiative is the “one child per couple” policy. Central authorities have verbally condemned the use of physical force in implementing the one-child policy; however, its implementation is left to local laws and regulations.

To enforce compliance, local authorities employ incentives such as medical, educational and housing benefits, and punishments including fines, confiscation of property, salary cuts or even dismissal. Officials also may refuse to issue residence cards to “out of plan” children, thereby denying them education and other state benefits.

Methods employed to ensure compliance have also included the forced use of contraceptives, primarily the I.U.D., and forced abortion for pregnant women who already have one child. In Zheijang Province, for example, the family planning ordinance states that “fertile couples must use reliable birth control according to the provisions. In case of pregnancies in default of the plan, measures must be taken to terminate them.” As an official “minority”, Tibetans are legally allowed to have more than one child. However, there have been reports of forced abortions and sterilizations of Tibetan women who have had only one child. There are also reports of widespread sterilization of certain categories of women, including those suffering from mental illness, retardation and communicable or hereditary diseases. Under previous local regulations superseded by the 1994 Maternal and Infant Health Care Law, such sterilization was mandatory in certain provinces. Under the new law, certain categories of people still may be prevented from bearing children.

Violations Against Female Children: The one-child policy, in conjunction with the traditional preference for male children, has led to a resurgence of practices like female infanticide, concealment of female births and abandonment of female infants. Female children whose births are not registered do not have any legal existence and therefore may have difficulty going to school or receiving medical care or other state services. The overwhelming majority of children in orphanages are female and/or mentally or physically handicapped.

The one-child policy has also contributed to the practice of prenatal sex identification resulting in the abortion of female fetuses. Although the government has outlawed the use of ultrasound machines for this purpose, physicians continue the practice, especially in rural areas. Thus, while the average worldwide ratio of male to female newborns is 105/100, Chinese government statistics show that the ratio in the PRC is 114/100 and may be higher in some areas.

This fact sheet was prepared by the Robert F. Kennedy Memorial Center for Human Rights. It is based on information provided by Amnesty International-USA, the Committee to Protect Journalists, the Francois-Xavier Bagnoud Center for Health and Human Rights, Human Rights in China, the International Campaign for Tibet, the Puebla Institute and the RFK Memorial Center for Human Rights. The accompanying resource list provides contact information for these organizations.

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Decision on access to documents

Indexed as: Energy Probe v. Canada (Attorney General)
DRS 93-04397, Action No. 46878/90Q
May 1, 1992

Ontario Court of Justice – General Division
Toronto, Ontario
Jarvis J.

Heard: February 5 and March 24, 1992
Judgment: May 1, 1992
(7 pp.)

 

Practice — Discovery — Production of documents — Government documents — Cabinet documents — Defences — Crown privilege — Public interest privilege — Statutory limits — Division of powers.

Application for production of federal cabinet and interprovincial cabinet documents in a challenge of the Nuclear Liability Act.

HELD: Application dismissed. The tenuous relevance of the documents was insufficient to justify disclosure. To routinely order production of such documents because it could do no harm or merely because the documents were vaguely relevant would potentially do serious harm to the future of cabinet and intergovernmental discussions and would fly in the face of the test in section 37 of the Canada Evidence Act. There was no jurisdiction to order production of a Privy Council document, as section 39 provided that this was entirely within the Clerk’s jurisdiction.

STATUTES, REGULATIONS AND RULES CITED:

Canada Evidence Act, R.S.C. 1985, c. C-5, ss. 37(2), 39. Nuclear Liability Act, R.S.C. 1985, c. N-28.

 

Theresa McClenaghan, for the Plaintiff.
David Sgayias, Q.C., for the Defendant.
Neil Finkelstein and Jeff Galway, for the Intervenors.

——————————————————————————–

JARVIS J.:— This application initially proceeded before me on February 5, 1992. Involved was the production of Federal Cabinet and Inter-Provincial Cabinet documents regarding the question of nuclear energy in Canada. The action involves a challenge to the Nuclear Liability Act R.S.C. 1985, c. N-28, which came into force in 1970. Energy Probe alleges that the Act is ultra vires the legislative jurisdiction of the Federal Government and violates several of the protections of the Canadian Charter of Rights and Freedoms.

Energy Probe took the position that the documents are relevant to the issues in this action and should be produced. The Attorney General for Canada responded that the documents, while marginally relevant, ought not to be produced as a matter of Crown privilege. The reason advanced for non-production, as set out in the Attorney General’s factum, was the protection of the

public interest in maintaining the integrity of communications, discussions and deliberations between the provinces and the government of Canada and thereby encouraging relations between the two levels of government.

 

Disclosure of such documents is argued to be antithetical to the frankness and candour that is vitally important to such deliberations. In our present political climate the importance of these relations can not be ignored.

When the motion initially proceeded on February 5, 1992, counsel for Energy Probe advanced her argument for production of the documents without having had the benefit of access to the documents themselves. As her argument proceeded, it occurred to me that it might be more helpful if she had access to the actual documents. Eventually an agreement was reached whereby copies of the documents could be provided to her and to the Court on stringent terms as to their use. My order included terms that only the counsel actually engaged in this application on behalf of Energy Probe could have access to the documents and also that the documents would not be referred to in any way in written submissions to the Court.

When the matter returned before me on March 24, 1992, counsel for Energy Probe was able to argue her position with reference to the actual documents. Argument was thereby more focused than it could otherwise have been.

While there are many obvious situations in which interim production of privileged documents of this nature might not be advisable, it was beneficial in this case and I commend the use of this device where the Crown agrees.

The Test

The test for disclosure of documents, such as those in question, is set out in s. 37(2) of the Canada Evidence Act R.S.C. 1985, c. C-5. A court can order disclosure,

subject to such restrictions or conditions as it deems appropriate, if it concludes that, in the circumstances of the case, the public interest in disclosure outweighs in importance the specified public interest. [emphasis added]

 

The Supreme Court of Canada in Carey v. The Queen, [1986] 2 S.C.R. 637, set out what factors the court is to consider when determining the public interest in disclosure and the public interest in Crown Privilege. These factors are:

1) the level of the decision-making process

 

2) the nature of the policy concerned

 

3) the particular contents of the documents

 

4) the time when disclosure is sought

 

5) the importance of producing documents in the interests of the administration of justice having regard to:

 

i) the importance of the case

 

ii) The need or desirability of producing documents to ensure adequately and fairly represented.

 

iii) the ability to ensure that only the particular facts relating to the case are revealed

 

6) any allegation of improper conduct by the executive branch towards a citizen.

 

In Leeds et al. v. The Queen in right of Alberta (1990), 69 D.L.R. (4th) 681 the Alberta Queen’s Bench held that the court should consider these same principles when making a determination under s. 37.

The Documents

The documents in question were styled “Cabinet Documents”. They were largely Minutes of meetings between Federal/Provincial ministry officials and correspondence passing between Ministers and their representatives on the nuclear issue. The date of origin of the documents ranged from 1978 to 1988.

Energy Probe claimed that the documents were relevant in the following ways:

– to reflect the Provincial concerns with respect to conflicting jurisdiction over this important question;

 

– to indicate that alternatives have been considered to nuclear power and that such alternatives, in fact, exist;

 

– to indicate that the Federal Government’s resolve to properly fund nuclear research and development was less than firm.

 

– to demonstrate that the review by the Federal Government of the Chernobyl nuclear disaster was inadequate.

 

In response, the Attorney General argued that many of the documents were too old to be of assistance, that they predated the legislation in question and were in no way part of the process which led to the passing of the Nuclear Liability Act. Some of the documents refer to other legislation which did not proceed. The Attorney General also submitted that many of the documents concerned continuation of the Candu reactor programme and that this was essentially irrelevant to consideration of the legislation in question. Insofar as Chernobyl was concerned, the Attorney General submitted that a review did, in fact, take place and the subsequent report is a public document. Any Minutes of discussions which might have taken place before the investigation was convened are of extremely limited utility. In addition, it was submitted that other evidence is available to support the argument of the plaintiff with respect to this issue.

In general, it was submitted that the relevance of the Cabinet documents to the issues in the action, and their utility, is so slight as to overwhelmingly militate in favour of non-production. In other words, the public interest in disclosure does not outweigh the specified public interest which is the protection of the sanctity of Federal/Provincial communications and negotiations.

Conclusion

On the basis of my own review of the case law and the documents for which production is sought and on the basis of the submissions made, I find that the Crown privilege should be honoured in the circumstances of this case. The documents are of tenuous relevance at best. It is trite to say that government funding of research and development is uncertain, that nuclear energy is dangerous in nature, that alternative energy sources are available and that arguments can be made to construe nuclear energy as an issue falling within the jurisdiction of either the federal or provincial governments. Confidential government documents are hardly required to demonstrate such assertions.

Counsel for Energy Probe did not attempt to make light of the importance of the confidentiality of Federal/Provincial ministry discussions. It was not suggested that I should not give serious consideration to this reality. I am convinced that to routinely order production of such documents merely because they can do no harm or merely because they are only vaguely relevant would potentially do serious harm to the future of such discussions and to fly in the face of the test set out in Section 37 of the Canada Evidence Act.

Evidentiary Questions

In addition, I was asked to rule on several disputes arising on the examinations for discovery. The document which purported to have originated with the Privy Council had been referred to in an article of the Toronto Globe & Mail. Energy Probe submitted that the privilege had been lost in view of the possession of the document by a third party. I take the view that I have no jurisdiction to order production of the document as this is a matter entirely under the jurisdiction of the Clerk of the Privy Council under Section 39(1) of the Canada Evidence Act. The Attorney General takes the position that the decision of the Clerk is final and I have no jurisdiction to go beyond it and I accept that proposition.

The final question arose on the examination for discovery of a representative of the Government of New Brunswick. That representative had refused to compare the plans of the Chernobyl plant and the plans of a New Brunswick facility and give an opinion as to whether or not the New Brunswick plant was built to withstand a greater force than that which occurred at Chernobyl. I take the view that this calls for an expert opinion based upon an hypothesis and for this reason the question was improper.

Order

For these reasons the application is dismissed. The
documents in the hands of Energy Probe shall be destroyed. I
may be spoken to regarding costs.

JARVIS J.

DRS/DRS/DRS

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Decision on access to documents

Indexed as Energy Probe v. Canada (Attorney General)

May 1, 1992

Between
Energy Probe, Plaintiffs, and
The Attorney General for Canada, Defendant, and
Ontario Hydro and New Brunswick Power Corporation, Intervenors

[1992] O.J. No. 892

DRS 93-04397
Action No. 46878/90Q

 

Also reported at:

10 C.P.C. (3d) 58

 

Ontario Court of Justice – General Division
Toronto, Ontario
Jarvis J.

Heard: February 5 and March 24, 1992
Judgment: May 1, 1992
(7 pp.)

 

Practice — Discovery — Production of documents — Government documents — Cabinet documents — Defences — Crown privilege — Public interest privilege — Statutory limits — Division of powers.

Application for production of federal cabinet and interprovincial cabinet documents in a challenge of the Nuclear Liability Act.

HELD: Application dismissed. The tenuous relevance of the documents was insufficient to justify disclosure. To routinely order production of such documents because it could do no harm or merely because the documents were vaguely relevant would potentially do serious harm to the future of cabinet and intergovernmental discussions and would fly in the face of the test in section 37 of the Canada Evidence Act. There was no jurisdiction to order production of a Privy Council document, as section 39 provided that this was entirely within the Clerk’s jurisdiction.

STATUTES, REGULATIONS AND RULES CITED:

Canada Evidence Act, R.S.C. 1985, c. C-5, ss. 37(2), 39. Nuclear Liability Act, R.S.C. 1985, c. N-28.

 

Theresa McClenaghan, for the Plaintiff.
David Sgayias, Q.C., for the Defendant.
Neil Finkelstein and Jeff Galway, for the Intervenors.

——————————————————————————–

JARVIS J.:— This application initially proceeded before me on February 5, 1992. Involved was the production of Federal Cabinet and Inter-Provincial Cabinet documents regarding the question of nuclear energy in Canada. The action involves a challenge to the Nuclear Liability Act R.S.C. 1985, c. N-28, which came into force in 1970. Energy Probe alleges that the Act is ultra vires the legislative jurisdiction of the Federal Government and violates several of the protections of the Canadian Charter of Rights and Freedoms.

Energy Probe took the position that the documents are relevant to the issues in this action and should be produced. The Attorney General for Canada responded that the documents, while marginally relevant, ought not to be produced as a matter of Crown privilege. The reason advanced for non-production, as set out in the Attorney General’s factum, was the protection of the

public interest in maintaining the integrity of communications, discussions and deliberations between the provinces and the government of Canada and thereby encouraging relations between the two levels of government.

 

Disclosure of such documents is argued to be antithetical to the frankness and candour that is vitally important to such deliberations. In our present political climate the importance of these relations can not be ignored.

When the motion initially proceeded on February 5, 1992, counsel for Energy Probe advanced her argument for production of the documents without having had the benefit of access to the documents themselves. As her argument proceeded, it occurred to me that it might be more helpful if she had access to the actual documents. Eventually an agreement was reached whereby copies of the documents could be provided to her and to the Court on stringent terms as to their use. My order included terms that only the counsel actually engaged in this application on behalf of Energy Probe could have access to the documents and also that the documents would not be referred to in any way in written submissions to the Court.

When the matter returned before me on March 24, 1992, counsel for Energy Probe was able to argue her position with reference to the actual documents. Argument was thereby more focused than it could otherwise have been.

While there are many obvious situations in which interim production of privileged documents of this nature might not be advisable, it was beneficial in this case and I commend the use of this device where the Crown agrees.

The Test

The test for disclosure of documents, such as those in question, is set out in s. 37(2) of the Canada Evidence Act R.S.C. 1985, c. C-5. A court can order disclosure,

subject to such restrictions or conditions as it deems appropriate, if it concludes that, in the circumstances of the case, the public interest in disclosure outweighs in importance the specified public interest. [emphasis added]

 

The Supreme Court of Canada in Carey v. The Queen, [1986] 2 S.C.R. 637, set out what factors the court is to consider when determining the public interest in disclosure and the public interest in Crown Privilege. These factors are:

1) the level of the decision-making process

 

2) the nature of the policy concerned

 

3) the particular contents of the documents

 

4) the time when disclosure is sought

 

5) the importance of producing documents in the interests of the administration of justice having regard to:

 

i) the importance of the case

 

ii) The need or desirability of producing documents to ensure adequately and fairly represented.

 

iii) the ability to ensure that only the particular facts relating to the case are revealed

 

6) any allegation of improper conduct by the executive branch towards a citizen.

 

In Leeds et al. v. The Queen in right of Alberta (1990), 69 D.L.R. (4th) 681 the Alberta Queen’s Bench held that the court should consider these same principles when making a determination under s. 37.

The Documents

The documents in question were styled “Cabinet Documents”. They were largely Minutes of meetings between Federal/Provincial ministry officials and correspondence passing between Ministers and their representatives on the nuclear issue. The date of origin of the documents ranged from 1978 to 1988.

Energy Probe claimed that the documents were relevant in the following ways:

– to reflect the Provincial concerns with respect to conflicting jurisdiction over this important question;

 

– to indicate that alternatives have been considered to nuclear power and that such alternatives, in fact, exist;

 

– to indicate that the Federal Government’s resolve to properly fund nuclear research and development was less than firm.

 

– to demonstrate that the review by the Federal Government of the Chernobyl nuclear disaster was inadequate.

 

In response, the Attorney General argued that many of the documents were too old to be of assistance, that they predated the legislation in question and were in no way part of the process which led to the passing of the Nuclear Liability Act. Some of the documents refer to other legislation which did not proceed. The Attorney General also submitted that many of the documents concerned continuation of the Candu reactor programme and that this was essentially irrelevant to consideration of the legislation in question. Insofar as Chernobyl was concerned, the Attorney General submitted that a review did, in fact, take place and the subsequent report is a public document. Any Minutes of discussions which might have taken place before the investigation was convened are of extremely limited utility. In addition, it was submitted that other evidence is available to support the argument of the plaintiff with respect to this issue.

In general, it was submitted that the relevance of the Cabinet documents to the issues in the action, and their utility, is so slight as to overwhelmingly militate in favour of non-production. In other words, the public interest in disclosure does not outweigh the specified public interest which is the protection of the sanctity of Federal/Provincial communications and negotiations.

Conclusion

On the basis of my own review of the case law and the documents for which production is sought and on the basis of the submissions made, I find that the Crown privilege should be honoured in the circumstances of this case. The documents are of tenuous relevance at best. It is trite to say that government funding of research and development is uncertain, that nuclear energy is dangerous in nature, that alternative energy sources are available and that arguments can be made to construe nuclear energy as an issue falling within the jurisdiction of either the federal or provincial governments. Confidential government documents are hardly required to demonstrate such assertions.

Counsel for Energy Probe did not attempt to make light of the importance of the confidentiality of Federal/Provincial ministry discussions. It was not suggested that I should not give serious consideration to this reality. I am convinced that to routinely order production of such documents merely because they can do no harm or merely because they are only vaguely relevant would potentially do serious harm to the future of such discussions and to fly in the face of the test set out in Section 37 of the Canada Evidence Act.

Evidentiary Questions

In addition, I was asked to rule on several disputes arising on the examinations for discovery. The document which purported to have originated with the Privy Council had been referred to in an article of the Toronto Globe & Mail. Energy Probe submitted that the privilege had been lost in view of the possession of the document by a third party. I take the view that I have no jurisdiction to order production of the document as this is a matter entirely under the jurisdiction of the Clerk of the Privy Council under Section 39(1) of the Canada Evidence Act. The Attorney General takes the position that the decision of the Clerk is final and I have no jurisdiction to go beyond it and I accept that proposition.

The final question arose on the examination for discovery of a representative of the Government of New Brunswick. That representative had refused to compare the plans of the Chernobyl plant and the plans of a New Brunswick facility and give an opinion as to whether or not the New Brunswick plant was built to withstand a greater force than that which occurred at Chernobyl. I take the view that this calls for an expert opinion based upon an hypothesis and for this reason the question was improper.

Order

For these reasons the application is dismissed. The
documents in the hands of Energy Probe shall be destroyed. I
may be spoken to regarding costs.

JARVIS J.

DRS/DRS/DRS

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