Diapositiva 1 - SWCA Environmental Consultants

Diapositiva 1 - SWCA Environmental Consultants

New instruments for effective social
participation in energy projects.
Dr. Luis Vera Morales
Presentation Index
• Project financing and “social license”
• Social-environmental risks and conflicts for
energy projects
• Equator Principles
• Social participation instruments in Mexico
and their interconnectedness (EIA, SIA,
Consultation with Indigenous communities)
• Environmental liability
• Final remarks
Global Economic Environment and Energy Project Finance
Energy projects compete with the rest of the infrastructure projects for the
available financial funds on a global scale.
-
The two determining factors to obtain financing are the project risk and
the investment returns in relation to the global market, this is, the real
possibility in a reasonable period of time for a financial institution to
recover their money.
- Under project finance, the guarantee is established in the consent letter.
This “agreement” requires:
- A pledge of shares
- To obtain a recognition by third parties and the government that
the financial institutions will (i) be the successor of the energy Company
(EPC or operator) to rectify any possible breaches (ii) will obtain additional
deadlines for its compliance and (iii) in case of foreclosure, only assume the
risk limited to the loaned amount.
- Today the biggest risks are the environmental and social-environmental.
There is nothing worse than a dirty project.
Financing the “social license”
At present, the institutions familiarized with determined regions/sectors
have establishes their permissible risk limits for granting credits for certain
regions/sectors/levels
- Today the environmental variable must adhere to the strictest
environmental standards (follow precisely the World Bank Guides/ IFC’s
performance standards / Equator Principles, etc).
 If the social license is not included, consensus on the project, the company
has two alternatives for project finance: (i) renegotiate with the financial
institutions the funds for the social part (ii) self financing.
When financing is lost, at least 2 years of the project are lost as well.
 Inclusion of the social matter not only makes sense financially, risk is
lowered, increases project “glamour” as possible investment recipient, it is
also the right thing to do for all the right reasons.
Equator Principles
• Reference framework for the financial
sector, to determine, assess and manage
the environmental and social risks of the
projects.
• Applicable to financing new projects and
significant expansions.
• Increases the responsibilities of Banks in
human rights, climate change and
transparency matters.
Social Aspects of the Equator Principles
• Principle 2, related to Social and Environmental assessments.
• Principle 3, related to the commitment to comply with
national and international applicable legislation.
• Principle 4 requires the client to develop an Environmental
and Social Management System.
• Principle 5, related to Stakeholder Engagement, which
establishes the need to conduct the consultations to the
communities involved or affected by the project.
• Principle 6, requires the client to establish a grievance
mechanism, to arrive to agreements regarding the concerns
and complaints related to the social and environmental
development of the project.
• Principle 7, requires an Independent Review, by an
environmental and social consultant, for those projects with
potential high risk impacts, which includes, negative impacts
to the indigenous communities and significant impacts to
cultural heritage.
Energy and social-environmental risks
•
•
Infrastructure projects are especially vulnerable to the socialenvironmental risks because their impacts affect primarily (but not
only) communities that inhabit the areas affected directly and
indirectly by the activities.
These conflicts can arise due to:
• Use or contamination of resources (water, air, soil, etc.)
• Displacement of communities or the use of places that have
special significance to the local inhabitants of the place in
question.
• Location of places inhabited by indigenous peoples or with
high archaeological value.
Types of conflicts
Two types of conflicts:
1. Between companies and the affected
communities
a. Conflicts linked to the social-environmental
impact
b. Territorial disputes
c. Human rights violations (Access to water,
indigenous lands, etc)
d. Corporate non-compliance (additional problem
of alternative justice)
2. Between communities and authorities.
Social participation in Mexico
• Diverse instruments exist to ensure social
participation in decision-taking
administrative procedures.
– Environmental Impact Assessment (LGEEPA)
– Consultation to Indigenous communities
(ILO’s Convention 169)
– Social Impact Assessment (Hydrocarbons Law
and Electric Industry Law)
Environmental Impact Assessment Procedure
(PEIA)
• The PEIA is detailed in the LGEEPA (1988) and in its
regulations (REIA) (2001)
• As an environmental policy instrument, the EIS is
particularly participative.
• El PEIA includes a consultation process that is itself
divided into an oral and written stage (art. 34 LGEEPA)
• The result of the consultation is included in the
resolution (art. 35 Bis LGEEPA)
• The lack of a supported and warranted citizen
observation, can lead to administrative remedies,
nullity procedures, and even amparo proceedings
(habeas corpus).
Participation in the PEIA
• The 60 days + 60 days suspension rule in case
additional information is required + another 60
day extension if the project complexity so
requires.
• 3 “sub-processes” crucial in the general EIA
process
– File processing: 10 days after submission. The first risk for
suspension of up to 60 days.
– Public Consultation: 20 days after processing.
– Public meeting: up to 50 days after the petition = 60 days. For
this reason the “suspension” or “expansion” of the deadline is
needed.
•Energy projects always require a public meeting.
•The previous points must be followed strictly to avoid discrepancies
against the procedure.
•The investor has no control on tasks 3 to 6, must ensure that each one is
correctly carried out for the project to be successful. The expected times
for tasks 4 to 6 is reduced but their planning is important.
•This period is impossible to reach if the timeframes are not reduced as
possible. The alternative: suspension or extension of the deadline.
•Real period of time (8 months minimum)
•It gives enough time for citizen and other government
levels (states/municipalities) to study and evaluate the
project.
•Increase the possibilities of failure in the process by the
investor or the authorities.
Social Impact Assessment in the context of the
energy reform
• The reform to articles 25, 27 and 28 of the Mexican Constitution,
published in the Official Federal Gazette on December 20th, 2013,
led to the publishing on August 11th, 2014 of 9 new regulatory laws
and the reform of 12 existing laws. Among these laws are the
Hydrocarbons Law (HL) and the Electric Industry Law (EIL), the
regulations to both statutes were published on October, 31st 2014,
these instruments regulate the Social Impact Assessment (SIA).
What is a Social Impact Assessment?
The only definition for a social impact assessment
contained in the Mexican Legislation is found on the
Regulations of the Hydrocarbons Law.
Social Impact Assessment
“The document that contains the identification of the
communities and towns located in the influence area of
a hydrocarbons project, as well as the identification,
characterization, prediction and assessment of the
consequences to the population that could arise there
from as well as the mitigation measures and the
appropriate social management plans”
Who must conduct or file a Social Impact
Assessment?
• In accordance with the Hydrocarbons Law
(HL) and the Electric Industry Law (EIL), every
party interested in obtaining a permit or
authorization to carry out a project in these
areas must file before the Ministry of Energy
(SENER) a Social Impact Assessment (SIA).
Note.- In accordance with the Regulations of the Hydrocarbons Law, the parties interested
in obtaining a permit to carry out activities related to commercialization of hydrocarbons,
oil and petrochemical products, are not required to file a SIA, unless Works or infrastructure
are carried out.
What must the SIA include?
Hydrocarbons
Electric Power
Laws
Identification, characterization,
prediction and assessment of the
social impacts that could arise from
these activities.
Identification, characterization,
prediction and assessment of the
social impacts that could arise from
these activities.
Mitigation measures
Mitigation measures
Social management plans
What must the SIA include?
Hydrocarbons
Electric Power
Regulations
Project and influence area description.
Identification, characterization,
prediction and assessment of the
positive and negative social impacts
that could arise from the project.
Identification, characterization,
prediction and assessment of the
positive and negative social impacts
that could arise from the project.
Identification and characterization of
the communities and towns located in
the influence area of the project.
Identification and characterization of
the communities and towns located in
the influence area of the project.
Prevention and mitigation measures.
Prevention and mitigation measures.
Social management plans.
Social management plans, proposed by
the interested parties in developing a
project related to the electric power
What must the SIA include?
 The Regulations of both the HL and the EIL establish that
the SIA has to be filed following the guide and format
established by SENER.
 Also, it is indicated that SENER shall issue the general
provisions that will contain the methodology for
identifying the influence area, as well as methodologies
for determining the impacts.
 At present the general provisions that include the
minimum requirements for the SIA are being developed,
as well as the mentioned methodologies and the type of
projects that will have to file the SIA for its approval.
What is the content of the SIA?
General provisions on the Social Impact Assessment in the energy sector (unpublished)
I.
Executive summary
II.
Section A: Social Impact Assessment
a. Presentation
b. General information of the project
c. Social Impact Assessment’s methodology
d.Influence areas of the project
e. Base line’s study results
f. Characterization of the indigenous towns and communities
g. Analysis of the stakeholders
h. Social impacts
i. Bibliography
III. Section B: Social Management Plan
a. Executive summary
b. Introduction
c. Implementation and monitoring of the mitigation measures and the measures for the expansion
of positive impacts
d. Communication plan and connection to the community
e. Social investment plan
f. Health and safety plan
g. Dismantling plan
h. Monitoring plan
SIA Procedure
 The SIA resolution must be obtained before beginning
works or activities
 In the case of electric power industry, the SIA must be
submitted “90 days before beginning negotiations”
 The deadline for the authority to issue the SIA
resolution, is 90 business days for hydrocarbons projects
and 90 calendar days for electric power projects, both
from the day of submission of the SIA before SENER.
SIA Procedure
Submission of
SIA before
SENER
If a public consultation is
required, SENER will start
the procedure.
Procedure may take from 1
month to 1 year. Time
varies depending on the
identified problems related
to the indigenous
communities and the
difficulty to reach
agreements.
Submission
SENER reviews the
information and if
deemed necessary
will request for lacking
information to be
submitted.
The applicant has 20 business days
to submit the lacking information.
Once the information
required is submitted,
SENER will determine if
a public consultation is
needed, and will issue
the resolution within 90
days will issue the
Resolución
Duration of the procedure: 90 business days- H/ working days - E
If there is no
requirement for
information, SENER
will issue the
resolution within 90
days from the
submission of the EIS
and will determine if a
public consultation is
required.
SIA Resolution
Link between the SIA and the Environmental
Impact Assessment (EIA)
• They are only linked in the HL, which
establishes on the last paragraph of article 121:
“The SIA resolution must be submitted by the
assignees,
contractors,
permittees
and
authorized parties for the EIA”.
Competent authority to issue a SIA resolution
Consultation to indigenous communities and
towns
• Both the HL and the EIL establish that a
consultation must be carried out when the
projects are developed in indigenous
communities and towns, which must be
carried out by SENER. The consultation
rules are still vague but the general stages
are described in the laws and regulations.
Indigenous consultation (Convention
169 ILO)
• All projects (public, private or social) that
affect an indigenous community, their
idiosyncrasy, culture, territory, natural
resources, etc. are subject to a previous and
informed consultation in accordance to
their uses and customs.
• Consent is not required.
• Diverse issues: incompatible legislation,
commonly unacceptable for the financial
risk taker, community dispersion, non
functional communities, etc.
Consultation
Stages – Regulations EIL
Article 92.- Consultation on article 119 of the EIL,
includes, at least, the following general stages:
I. Consultation Plan: The planning that SENER
carries out for the consultation, and the
establishment of coordination with the authorities
mentioned on article 90 of these Regulations;
II. Previous agreements: The scopes that SENER
and the traditional or representative authorities
from the indigenous communities and towns agree
on the way that the consultation will be carried out;
Consultation
III. Informative: Providing sufficient information and culturally
appropriate to the indigenous communities and towns on the
project subject to consultation;
IV. Advisory: Dialogue period that happens on the inside of
the indigenous community or town for the decision-taking on
the acceptance of the project subject to consultation;
V. Deliberative: The establishment of agreements or the
obtention of previous and informed consent, as the case my
be, on the development of the project subject to consultation,
and
VI. Monitoring of agreements: Monitoring on the compliance
of reached agreements, using the mechanism that is
established by the community or town for this purpose.
Protocols for public consultation
(on a case by case basis)
•
•
•
•
-Juchitán-eolic
-Sonora-gas pipeline
-Chihuahua-gas pipeline
-Puebla-hydroelectric
Federal Law on Environmental Liability
Purpose of the Law (art 1)
• It regulates Environmental Liability for
Damage to the Environment
• It regulates repair of damages and losses as
well as compensation when ordered as a
result of federal lawsuits
• It regulates (i) alternative mechanisms for
the solution of controversies, (ii)
administrative procedures, and (iii) those
referring to the commision of crimers
against the environment.
Basic Definitions
• Damage to the environment (art 2, fr. III): Loss, change,
affectation or adverse and measurable modifications to
habitats, ecosystem, natural elements and resources …
their innerchange relationship and the environmental
services they provide.
• Excepction (Art 6): no damage will be caused where:
– The affectation to be caused were previously authorized through
existing permits (EIA/MIA, Forestry/CUSF, etc.), as well as all the
affectations had been expressly manifested, identified, delimited,
evaluated, mitigated and compensated.
– Do not exceed permissible maximum levels established in laws
and standards (NOMs).
• Baseline (art 2, fr. VIII): Condition of habitat, ecosystem…
at the moment immediately preceeding the damaging
action.
Consequence of the damaging actions:
• Damage (art 10)
– To Repair (art 12): Return to the baseline through
restoration, re-establishment, treatment, recovery,
remediation
– Compensation (art 14):
• When total or partial repair is impossible
• Caused by a (measurable) illicit activitypor actividad ilícita
evaluable
• An after the fact authorization is obtained (de-naturalization
of the EIS/ EIA procedure)
• With benefit to society (art 17)
Problems of LFRA
• LFRA understands the environment as
static rather than dynamic
• Is based on the principle that scientific
information is readily available or that
scientific knowledge is, so that repair is
evident
• Is the irrestrictive application of the
Legality Principle (legal positivism)
• Coercitivity is at its base. Lack of
scientific solution gives place to
negotiation.
De-naturalization of EIA /MIA
•
•
EIA: in LGEEPA, is a preventive authorization , only when
the activity is expected to cause ecological disequilibrium
or NOMs are exceeded.
LFRA: Tevery departure from baseline is a damage subject
to repair
– It is an actual redefinition of the EIA (ver art 3, fr. I).
– ¿How about residual impacts?
– ¿Why ad hoc studies are not permitted?
– ¿Who determines the “relevant affectations”?
¿Guidelines, previous consultations, etc?
– It looks to the past.
De-naturalization of NOMS
• New requirements for NOMs (art 7):
– Casuistics
– minimal quantities of deterioration, but “significant”
– Propose criteria, i.e. Regeneration capacities of natural
resources
• Consecuence:
– No existing NOM can be used as an exception of damage
– Does not recognize the reality of standardization in
Mexico
– It does not understand the importance of NOMs for the
efficiency of environmental policy
Efectos del Positivismo / legalidad / certeza / en la
aplicación del conocimiento científico en el contexto
legal
NOM
Solución científica normada (obligatoria)
Generación de conocimiento
Desfasamiento por legalidad
Normalización
Repair obligations not cpnsidering financial costs,
technical capabilities or scientific knowldege
LFRA
+
Cost of
“repair”
+
Presence of pollutants
Pareto (efficiency): financially reasonable,
technically feasible, environmentally possible.
-
Repair environmental affectation
Past
Future
Prior state=baseline
•Resilience
•Contaminant vs
Contamination
•MPL
•Legitimate environmental
affectation
•Cost of living in society
Degradation
¿damage?
Civil
LFRA
PEIA
Water
Hazmats
and
Hazwastes
…y derivado de la asignación de concesiones en las
Rondas 1.1 y 1.2 ya se están celebrando contratos
•
•
•
•
•
RONDA 1 | AGUAS SOMERAS – PRIMERA CONVOCATORIA
CONTRATO PARA LA EXPLORACIÓN Y EXTRACCIÓN DE HIDROCARBUROS
BAJO LA MODALIDAD DE PRODUCCIÓN COMPARTIDA
CLÁUSULA 1. DEFINICIONES E INTERPRETACIÓN
“Daños Preexistentes” significa los pasivos ambientales presentes en el Área
Contractual, identificados en la línea base ambiental de conformidad con lo
establecido en las Cláusulas 3.4 y 14.4.
El problema es que a menos que se determine que existe contaminación
(cuando existe una afectación negativa= desequilibrio ecologico), no puedes
hablar de daños preexistentes. Por otro lado, solo puede llamarse pasivo a una
situación ambiental dada de deterioro con respecto a otro momento
determinado en el tiempo. Quien determina ese momento? Es una linea de
base pristina, la de hace 100, 50, 25 10 años? La decision es absolutamente
discrecional y es equivalente a la inseguridad jurídica absoluta. La Ley dice
que en caso de “daño”, se debe regresar la situación al estado
inmediatamente anterior. Esta es la linea de base, por tanto no hay lugar a
daños preexistentes.
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•
14.3 Responsabilidad Ambiental y Seguridad Industrial.
El Contratista será responsable:
–
–
•
•
•
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(i) del cumplimiento de todas las obligaciones, compromisos y condiciones
ambientales previstas en la Normatividad Aplicable, las Mejores Prácticas de la
Industria y los permisos ambientales,
y (ii) de los daños que cause al medio ambiente con la realización de las
Actividades Petroleras.
El Contratista cumplirá con los controles y las medidas de prevención en
materia ambiental o de seguridad industrial, requeridos por la Agencia o
por la Normatividad Aplicable o previstas en el Programa de Administración
de Riesgos o en el Sistema de Administración. Sin limitar la responsabilidad
ambiental del Contratista y sus Subcontratistas prevista en esta Cláusula
14.3 y en la Normatividad Aplicable, el Contratista y Subcontratistas
deberán:
(a) Realizar las Actividades Petroleras con sustentabilidad ambiental,
preservando y conservando el medio ambiente, sin causar daño a la
propiedad pública o privada, y con apego al Sistema de Administración;
(b) Realizar todos los estudios ambientales y obtener, renovar y mantener
todos los permisos ambientales de las autoridades competentes para la
realización de las Actividades Petroleras, de conformidad con el Sistema de
Administración y la Normatividad Aplicable;
(c) Cumplir con todos los permisos ambientales y mantener los Campos en
las mejores condiciones que permitan un desarrollo sustentable;
•
•
(e) Ser responsables de cualquier afectación al medio ambiente, y su
correspondiente resarcimiento durante la vigencia del Contrato, por lo que
deberán efectuar las labores de remediación que correspondan en caso de
contaminación causada por las Actividades Petroleras. En caso de daño
ambiental causado por las Actividades Petroleras, el Contratista y
Subcontratistas deberán efectuar de inmediato los trabajos para controlar los
efectos contaminantes, como limpieza, reparación y restauración de las áreas
afectadas en términos de lo dispuesto por la Normatividad Aplicable;
Esta cláusula confunde terminos de manera importante: la remediación solo
se da en caso de contaminación de suelos y admite alternativas a la remoción
del suelo (la inmovilización es perfectamente permitida), limpieza es la
remoción de residuos peligrosos del agua, pero no requiere regresar las cosas
al estado anterior (por demas cientifica y practicamente imposible), reparar es
un termino civil y la restauración es utilizada en LGEEA para casos específicos
de afectación a suelo por contaminantes no peligrosos. De hecho, ninguna
exige regresar al estado previo, como pareciera que manda la LFRA.
Prospección sísmica en aguas
profundas
Final remarks
Know the rules applicable to your project
Understand the reach of each agency
Socio-environmental aspects are key
Follow law by the book but
guidelines/applications/studies allow for
creativity
• Work with the Agency (negotiate contracts
and permits)
• Beware of liability
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•
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•
Thank you
Luis Vera, PhD
Vera & Asociados, S.C.
[email protected]
Mexico City (52) 55-5545-7200