Bill C-30 (Historical)

Canada's Clean Air Act

An Act to amend the Canadian Environmental Protection Act, 1999, the Energy Efficiency Act and the Motor Vehicle Fuel Consumption Standards Act (Canada's Clean Air Act)

Part 1 of this enactment amends the Canadian Environmental Protection Act, 1999 to promote the reduction of air pollution and the quality of outdoor and indoor air. It enables the Government of Canada to regulate air pollutants and greenhouse gases, including establishing emission-trading programs, and expands its authority to collect information about substances that contribute or are capable of contributing to air pollution. Part 1 also enacts requirements that the Ministers of the Environment and Health establish air quality objectives and publicly report on the attainment of those objectives and on the effectiveness of the measures taken to achieve them.
Part 2 of this enactment amends the Energy Efficiency Act to
(a) clarify that classes of energy-using products may be established based on their common energy-consuming characteristics, the intended use of the products or the conditions under which the products are normally used;
(b) require that all interprovincial shipments of energy-using products meet the requirements of that Act;
(c) require dealers to provide prescribed information respecting the shipment or importation of energy-using products to the Minister responsible for that Act;
(d) provide for the authority to prescribe as energy-using products manufactured products, or classes of manufactured products, that affect or control energy consumption; and
(e) broaden the scope of the labelling provisions.
Part 3 of this enactment amends the Motor Vehicle Fuel Consumption Standards Act to clarify its regulation-making powers with respect to the establishment of standards for the fuel consumption of new motor vehicles sold in Canada and to modernize certain aspects of that Act.

The Environment

[John Baird, Conservative, Minister of the Environment]

Mr. Speaker, I would like to make it clear that scientific evidence tells us to act as soon as possible. That is our goal.

The committee studying Bill C-30 met on Monday and we saw that the Liberal Party is not comfortable with the idea of working harder and passing Bill C-30 as soon as possible. It wants to analyze and conduct more studies. That is not the best course of action in a file that is so important for Canada.

[John Baird, Conservative, Minister of the Environment]

Mr. Speaker, last October, our government was the first in Canadian history to say that it would deal with industry. This is very important.

It was very clear in October that this government would regulate greenhouse gas emissions and air quality. Last week, the Prime Minister said that this announcement would be made in the coming weeks or months. Bill C-30 is a very important part of this.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, members of the Conservative Party continue to struggle against the idea that they are little more than laggards when it comes to the environment. Whenever they make this claim, one of their senior ministers makes a public statement to remove any lingering doubts.

First, the Prime Minister suggested that it was difficult to predict next week's weather, so how could he possibly believe global warming was a threat to Canadians. Now the Minister of Public Safety was “begging for Big Al Gore's glacial melt when the mercury hit -24”.

The same minister went on to prove his utter misunderstanding of the pine beetle crisis and the impact that global warming had on it. I wonder if the same minister also still believes there is not enough evidence to prove that smoking actually causes cancer.

We are at the beginning of a legislative committee that will rewrite Bill C-30 and create what could be the most important environmental legislation in years. The NDP will fight hard to create hard targets and real timelines to ensure we change the course that Canada is on.

My fear is the Conservative members may have a lot of catching up to do. I strongly urge them to do much study over the Christmas holidays.

Procedure and House Affairs

[Gary Goodyear, Conservative, Cambridge, ON]

Mr. Speaker, I have the honour to present the twenty-fifth report of the Standing Committee on Procedure and House Affairs regarding the membership of the legislative committee on Bill C-30, An Act to amend the Canadian Environmental Protection Act, 1999, the Energy Efficiency Act and the Motor Vehicle Fuel Consumption Standards Act (Canada's Clean Air Act).

The Environment

[Rona Ambrose, Conservative, Minister of the Environment]

Mr. Speaker, I would also ask the hon. member to recognize in Bill C-30 the elements that are necessary to have a biofuels industry. If Bill C-30, Canada's clean air act, does not pass, we will not have the regulatory authority to blend fuels to have a biofuels industry.

I would encourage him to recognize the things that are presently in the bill and to make sure he protects those so that we can have a better environment and also a better economy.

[Rona Ambrose, Conservative, Minister of the Environment]

Mr. Speaker, in fact we are working with the large final emitters right now to look at regulations, so I look forward to working with the committee.

I would suggest to the hon. member that he recognize there are things in Bill C-30 that we would like to also protect, things like making sure that we address air pollution. Right now the bill that is in front of the House from the Liberals and from the NDP does nothing to address air pollution in particular. It also does not address indoor air pollution, which is a real issue in terms of the health of Canadians. I would ask him to do the same thing and work with the government to make sure that those issues are addressed and protected in Bill C-30.

[John Godfrey, Liberal, Don Valley West, ON]

Mr. Speaker, last night, the House of Commons voted to send Bill C-30 to a legislative committee to be completely rewritten. In committee we will be able to take the Conservatives by the hand, as we would with a child, and teach them how to make this bill effective in the fight against global warming.

Does the Prime Minister promise to respect the committee's recommendations, even if they involve Kyoto protocol obligations and serious limits on the biggest emitters?

[Stephen Harper, Conservative, Prime Minister]

Mr. Speaker, I promise to get to the bottom of it. I am really not sure whether I should take what the leader of the NDP said personally.

It was at the request of the leader of the NDP that the government agreed to put Bill C-30, the clean air act, before a parliamentary committee at second reading. Because we want to make concrete progress, we invite the constructive participation of all opposition parties. I would encourage the leader of the NDP to return to that constructive tone.

Canada's Clean Air Act

[Marcel Lussier, Bloc, Brossard—La Prairie, QC]

Mr. Speaker, this bill on air quality would amend three existing statutes, the first of which is the Canadian Environmental Protection Act. Based on our observations, however, these are not new regulatory powers that the government plans to grant itself, because they already exist in the Canadian Environmental Protection Act. The bill would also amend the Energy Efficiency Act. We find it strange that this amendment is being introduced after the EnerGuide program was eliminated. The third part of the bill would amend the Motor Vehicle Fuel Consumption Standards Act.

The Bloc Québécois currently supports sending this bill to committee before second reading. In our view, the amendments proposed by Bill C-30 are unnecessary. They would only slow down the process of taking concrete action against climate change. This is simply a delay.

The bill is also accompanied by a notice of intent, which lists the regulations the government intends to adopt over the next few years and the deadlines it has set for doing so. This document shows that the government is starting from scratch and beginning a new round of consultations in three phases leading to new standard that would not be mandatory until 2010.

Bill C-30 in its current form is unacceptable. It practically means the end of the Kyoto protocol objectives. The bill would incorporate into the Canadian Environmental Protection Act the statement that respecting Canada's international commitments on the environment is a matter of government discretion. We agree with referring the bill to committee before second reading because that will give us the latitude we need to consider the admissibility of amendments to this bill.

We will work in good faith in this committee, but the Bloc Québécois will make no compromises because respecting the Kyoto protocol targets is what is important. We will also present amendments to address the fairness of the polluter-pay rule, Canada's respect for its international commitments and, most of all, the urgent need for action to fight climate change. I want to remind hon. members that the Bloc's priority is still Bill C-288, which clearly respects the Kyoto protocol objectives and for which the legislative agenda is controlled by the opposition and not by our government.

Thanks to past investments by the administrators at Hydro-Québec in the area of hydroelectricity, Quebec has a non-polluting electricity production network. Quebec's plan mainly targets transportation and pollution reduction in certain industries.

As far as transportation is concerned, the bill would amend the Motor Vehicle Fuel Consumption Standards Act to create the regulatory power to impose mandatory vehicle consumption standards on the industry by 2011, after the voluntary agreement expires. This does not seem soon enough.

The government has announced that Environment Canada and Health Canada also intend to hold detailed consultations with the provinces and industry starting in the fall. This consultation is late. It is planned in three major phases: the first will end in 2007, the second in 2008 and the third in 2010. Therefore, no regulation will come into effect before 2010.

What is important to the Bloc Québécois is that targets are established. These targets are in our report on the evaluation of greenhouse gas emissions.

In 2004, production of greenhouse gases in Quebec was about 12 tonnes per person, or half the average rate of production of 24 tonnes per Canadian. As for the other provinces, per capita emissions totalled almost 69 tonnes in Saskatchewan and 73 tonnes in Alberta, or five to six times greater than in Quebec.

If we compare increases between 1990 and 2004, we note that Quebec emissions have risen by 6% since 1990, compared to 39.4% for Alberta and 61.7% for Saskatchewan.

As I was saying earlier, opting for hydroelectric energy certainly was a significant factor in Quebec's enviable performance. However, the collective choices made by its citizens, industries and the National Assembly also made it possible to achieve these results. The Quebec pulp and paper industry alone reduced its greenhouse gas emissions by 18% between 1990 and 2005.

The excellent performance of the Quebec manufacturing sector also made a substantial contribution to Quebec's positive results. Between 1990 and 2003, this sector reduced greenhouse gas emissions by 6.8% and emissions arising from industrial processes by more than 15%. These reductions were made possible by significant strategic investments by Quebec companies in innovative technologies allowing them to improve their processes and their energy efficiency.

The Minister of the Environment refuses to acknowledge the efforts made by Quebec or the value of the Quebec plan. It was again obvious in Nairobi, where she failed to mention Quebec's green plan in her official speech to the international community.

Rather than revise its international obligations by calling the Kyoto protocol into question, the Conservative government must implement the climate change action plan. That was the Bloc Québécois' proposal, founded on the very important principles of equality and polluter pays. With respect to the polluter pays principle, studies have been done on Canada's emissions and it is generally accepted that responsibility for reducing emissions should be shared non-proportionally based on population or gross domestic product. It should be shared by the provinces and the territories. The Bloc Québécois is proposing a three-part approach to distribute the burden across Canada and give each province quotas to comply with.

The European Union succeeded in reaching an agreement on distributing greenhouse gas emissions among 15 European countries. The negotiations took two years to achieve concrete results. Each country has its own targets to reach.

In Canada, negotiations went on for almost five years and were suspended. We have not yet reached a compromise on distributing responsibility among the provinces and territories.

According to this three-part approach, Quebec's goal would be 0% relative to 1990 levels. The province could therefore simply address its 6% increase since 1990 to reach its goal: 1990 production levels.

Other provinces' goals are much higher because of their energy choices.

In conclusion, over the next few weeks, the Bloc Québécois will propose amendments to this bill.

[Tony Clement, Conservative, Minister of Health and Minister for the Federal Economic Development Initiative for Northern Ontario]

Mr. Speaker, I am pleased to address the House on Bill C-30, the clean air act. It is a major step in meeting Canada's new government's commitment to introducing an environmental agenda that is national in scope, achievable and will provide the foundation for improving the health of Canadians and the environment of Canadians for generations to come.

It is through this act that we can address a problem that has a profound impact on the health of Canadians and, as Minister of Health, that obviously is a prime objective for me.

The health of Canadians is affected by the quality of the air that we breathe. The clean air act also provides Canada with a realistic and, we believe, an affordable plan to deal with greenhouse gas emissions simultaneously. Our government's objective is to minimize or eliminate the risks to the health of Canadians posed by environmental contaminants in the air. It goes without saying that clean air is important and imperative to the health of all Canadians.

I represent the constituency of Parry Sound—Muskoka. I also consider myself a so-called green Conservative. My constituents are concerned about clean air and clean water but they are also concerned about the water levels in our constituency that are directly affected by environmental change.

People want to see action. They have heard lots of talk in this chamber and elsewhere at the federal level and a lot of talk by the previous Liberal government but they have seen no action. As the hon. member said a few moments ago, what we have seen from the previous government and the previous environment ministers has been an increase of 35% or more above the Kyoto targets in terms of greenhouse gas emissions. This is a sorry state of affairs, which is only exceeded in the embarrassment by the fact that the United States of America under George Bush was able to do better than us here in Canada under the previous government. The Auditor General has said that the previous Liberal government should be ashamed of its record and she condemned it for it. I believe we can and we must do better.

As a starting point, Bill C-30 rightly draws attention to the fact that we must challenge the old ways of doing things, ways that have produced no tangible benefits, and voluntary approaches that have produced more hot air than true commitment and results. We must follow up with action to address air pollution and greenhouse gas emissions simultaneously and directly.

Unfortunately, as I said, we have been lulled into a false sense of security, which was created by the former Liberal government when it agreed to unrealistic targets that were impossible to achieve. The clean air act is the first step toward a true regulatory agenda that can and should be supported by all members of Parliament in order to protect the health and environment for future generations and a legacy that can be built upon to create better progress and, of course, be supported by a sound economy.

While I would like to focus today on a number of key areas that highlight the importance of the bill, I would also like to say that it has been designed to meet objectives which I believe are shared by most members of the House. The first of these objectives concerns the protection of the health of Canadians.

The clean air act recognizes the fundamental relationship between environment and health and identifies the health of Canadians as a key driver behind the regulation of air pollution and greenhouse gas emissions.

As we all know, the quality of the air Canadians breathe is vital to their health. The air quality bill will lead to solutions that will improve the health of Canadians, and it recognizes the importance of protecting the health of vulnerable populations.

Air pollution can affect us all, no matter who we are, where we live, or how healthy we are. The World Health Organization recently estimated that air pollution caused two million premature deaths every year around the world.

Using data from eight Canadian cities, Health Canada scientists estimate that of all the deaths in these cities every year at least 5,900 deaths could be linked to air pollution. Research also shows that poor air quality sends thousands of Canadians to hospital each and every year.

There has been an increase over the past few decades of certain diseases affecting Canadians. It is a well-known fact that the prevalence of asthma among children has increased over the years. According to the 1996-97 national population health survey, over 2.2 million Canadians have been diagnosed with asthma. Asthma, bronchitis and chronic obstructive pulmonary disease afflict over 3.7 million Canadians.

Breathing problems are not the only thing we should be concerned about. Air pollution also affects the heart. Cardiovascular disease is responsible for 40% of all mortality in Canada.

These illnesses are exacerbated and, to some degree, are caused by air pollutants.

Most people think only in terms of outdoor pollution but I want to talk today about the air we breathe indoors, where we spend as much as 90% of our time.

One particular indoor air pollutant is radon, which occurs naturally in the ground in many areas of Canada, particularly northern Canada. This is an air pollutant for which this government is planning immediate action. Radon is the largest source of radioactive exposure to Canadians. New scientific evidence demonstrates an elevated risk of levels of radon found in many Canadian homes. Exposure to radon accounts for 1,900 lung cancer deaths every year in Canada and is second only to tobacco smoke as the primary cause of lung cancer.

The government is currently preparing to roll out a new indoor air quality guideline for radon as a basis for taking action to reduce expose and associated health impacts. The clean air act would provide important authorities which can be used to ensure that we have the tools to effectively manage and promote the actions required to reduce or eliminate this health risk.

Clearly, we have to take steps to reduce all the potential factors that increase the incidence of illness and death, especially in our children.

Canada's clean air act will give us the powers and the tools we need to deal with sources of indoor and outdoor air pollution.

Our proposed new clean air act, the centrepiece of the clean air regulatory agenda, would also amend the Canadian Environmental Protection Act and strengthen the Government of Canada's ability to take action to reduce air pollution and greenhouse gases, as I said, simultaneously, and provide explicit authority to regulate air pollutants and greenhouse gases without requiring that they be designated as toxic substances.

In the past there has been opposition to designating greenhouse gases as toxic, which impeded constructive discussions about their management. Canada's new government would no longer have to wait for an air pollutant to receive an official toxic declaration.

I believe all governments must act effectively and in unison with their respective jurisdictions but clearly there is a need for national leadership. We must put politics aside and finally move forward on real concrete solutions so we can manage air quality and service Canadians today and in the future.

[Bernard Bigras, Bloc, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, there is a clause in Bill C-30 about equivalency.

Would the Leader of the New Democratic Party be prepared to amend that equivalency clause to integrate a territorial approach that would enable provinces such as Quebec to implement their own greenhouse gas emissions reduction plan?

[Bernard Bigras, Bloc, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, I am very pleased to participate in the debate on Bill C-30, Canada's clean air act, as the government is calling it. This bill amends three existing acts: the Canadian Environmental Protection Act, the Energy Efficiency Act and the Motor Vehicle Fuel Consumption Standards Act.

We have been waiting a long time for the Conservative government to tell us what it plans to do to fight climate change and smog. We waited a long time because up to now, the policies of the Conservative Party, a political party on the verge of taking power more than a year ago, had nothing to offer in terms of measures or an effective plan to respect Canada's commitments under the Kyoto protocol signed in that Japanese city in 1997.

The bill before us here today is a far cry from what we were expecting. First of all, we were expecting a plan and a bill that would integrate the targets for greenhouse gas reductions set out by the Kyoto protocol, especially during the first phase of reductions of greenhouse gas emissions. Similar to Bill C-288, which is currently in committee, we were expecting this bill to include a 6% reduction in greenhouse gas emissions between 2008 and 2012, compared to 1990 rates.

Not only does this nearly 36-page bill never mention Kyoto, it also never refers to this target for reducing greenhouse gases during the first phase of targeted reductions. I would remind the House that this target was endorsed by Canada.

The bill also contains nothing about the second phase of reductions or the government's intentions. The only target the government is proposing here today to fight climate change is a target somewhere between 45% and 65% in greenhouse gas reductions by 2050, as though we can continue to produce greenhouse gases without worrying about short-, medium- and long-term targets for reductions. This is no different than presenting a business plan to a board of directors of a private company—and I wonder what the government would do—with no short- or medium-term goals, but only one objective for 2050.

Personally, I think that board of directors would send its managers back to do their homework, so that they could present a realistic plan that respects the international commitments signed by Canada.

Not only does the bill set a target for 2050, but the reference level for this 45% to 65% reduction in emissions is 2003, rather than 1990 as set out by Kyoto.

What does that mean in reality? It means that we will start calculating the reduction in greenhouse gas emissions in 2003, as if nothing happened in the provinces or certain industrial sectors before 2003. Yet the Province of Quebec—sadly, we are just a province, even though we are now a nation—is one of the first provinces to have tabled a plan to fight climate change.

Quebec is prepared to comply with greenhouse gas reduction targets that use 1990 as the reference year. But the government is proposing 2003 as the reference year, as if it were possible to emit more greenhouse gas before 2003. In addition, this bill does not provide for offsetting credits for industrial sectors that have reduced their emissions in relation to 1990 levels.

This bill therefore does not comply with the international commitments signed by Canada. In introducing Bill C-30, Canada has flip-flopped on its international environmental commitments.

This government has also decided to set aside something that is vital to Quebec: the principle of equity. Past efforts by the provinces and territories and by industries should be recognized under the government's bill, yet there is nothing in the bill that does this.

In addition, we are expecting major efforts in transportation, an important sector in Quebec. What is the government proposing? Essentially, it is telling us that the voluntary approach that the government has agreed on with the auto industry can continue on its merry way until 2011. After 2011, the government will consider regulations based not on the most effective criteria and standards in North America—those in California—but on standards comparable to those of the U.S. Environmental Protection Agency.

They have decided, in terms of automobile manufacturing standards, to use lower benchmarks, and thus lower the standards, when Canada should be using its regulations to raise them. Worse yet, we learned just this morning that the government will have two systems for the industrial sectors: one that will be based on the intensity of emissions and another on the absolute reduction in greenhouse gas emissions.

It has been decided in Canada to spare the oil and gas industry at the expense of the industrial sectors that have made some efforts in the past. This is the second unfair factor: after the territorial aspect, or the non-recognition of the efforts made by Quebec since 1990, this is unfair to the industrial sector, in that Canada's oil industry is being spared.

We are indeed in favour of referring Bill C-30 to committee, but we believe that fundamental improvements need to be made to this bill. Recognition of the Kyoto targets, especially in the first phase, must be seen in the very essence and spirit, the principle and preamble of the bill.

We need stronger commitments and an immediate plan that will allow us to take action in the second phase of greenhouse gas emissions reduction, a year from now, in Bali, when the international community will begin to reflect on the system that should be applied in this second phase. The only debate we are having in this House is on the reduction objective for 2050.

Let me say again: if executives were to present this plan to a board of directors, they would be sent back to the drawing board to come up with reduction targets for the short, medium and long terms.

I will close by addressing a major aspect that we will defend in the parliamentary committee: this principle of acknowledging the territorial approach. We have not, thus far, been able to achieve our greenhouse gas emissions reduction targets because the proposed plans require reduction from coast to coast and Canada's economic structure differs from one province to another, while Quebec's energy policy also differs from those of the other provinces.

In committee, we will be working on having this territorial approach recognized within Bill C-30.

[John Godfrey, Liberal, Don Valley West, ON]

Mr. Speaker, first I would like to congratulate the member for Saint-Laurent—Cartierville on his victory in Montreal on the weekend. He won because of his passion and credibility on the issues of the environment and sustainable development. He made the environment the main pillar of his program and rightly so in light of climate change. It is in the spirit of this victory for the environment that we will be studying Bill C-30 starting today.

What is our approach? The role of the official opposition is to be responsible and take action based on principles. Our role is to identify—together with the other opposition parties, the government and the environmental NGOs— practical solutions that will improve this bill.

We are not insisting on the fact that this bill is a Liberal initiative so that we can take all the credit. That is not how we do things. What we will insist on is that this bill be the best possible bill for the environment, for Canadians, especially with regard to the fight against global warming.

What is at stake here in this bill is nothing less than the greatest challenge facing humanity today, the first order of business: dealing with global warming.

Our position since the government first introduced the bill has taken the following lines. First, that this bill is not necessary and that the Canadian Environmental Protection Act contained all the necessary power to combat climate change and, indeed, air pollution.

Second, which I think was demonstrated by the minister's speech, with all respect, that to bring the two elements together is deliberately confusing. Air pollution and climate change are not the same thing. They can be linked and they can be related but they frequently and most often require different strategies and different solutions.

Climate change is primary, a precondition for every other policy that any government would want to bring forward. If we do not deal with it first and foremost, we will not get around to the rest of it, whether it is air pollution or anything else that the government might bring forward.

Our third criticism is that this bill is not Kyoto compliant nor is it even Kyoto relevant. There is no reference in the bill or the notice of intent to regulate to Kyoto standards. It is important to consider the bill and the notice of intent to regulate as a package.

Fourth, there are no short term goals for greenhouse gas reductions. We are not talking intensity. We are talking reductions. There is no reference to Kyoto's first implementation period of 2008 to 2012. There are no regulations for greenhouse gases coming into force before 2010, unlike project green which saw regulations, not voluntary measures, coming into place for large final emitters by 2008.

The fifth point is that goals for greenhouse gas reductions in the medium and long term are not ambitious enough.

The sixth point is that the bill, as written, actually weakens the Canadian Environmental Protection Act by creating unnecessary and ambiguous alternate lists for greenhouse gases and air pollutants.

The final point is that the provincial equivalency agreements are not as strong in the proposed bill as they are currently under CEPA.

Our original intent was to vote against the bill at second reading since we could not accept its fundamental principles or the accompanying notice of intent to regulate. Our current intention, now that the bill is at first reading and can be amended, is to produce amendments which meet our original criticisms, as I have outlined, and work with the government, opposition parties and environmental groups to produce a serious piece of legislation.

I will not today speak to the air pollution sections because we can work to improve those sections. However, air pollution is not where the problems lie.

I will begin by simply suggesting the key deletions that need to be made to this bill. First, the changes that weaken the provincial equivalency provisions of CEPA and, second, the creation of unnecessary new categories of greenhouse gases and air pollutants and the parallel regulatory authorities created along with those categories that put the federal power to regulate these substances at risk.

As to the targets and purposes of this legislation, for Kyoto, Bill C-30 must be amended to make explicit reference to Canada's obligations under the United Nations Framework Convention on Climate Change and its Kyoto protocol. This should include a reference to Canada's 2008 to 2012 target from article 3, paragraph 1 of the Kyoto protocol of a reduction of greenhouse gas emissions to 6% below Canada's 1990 level.

For medium and long term targets, Bill C-30 must be amended to include a long term target for Canada of at least an 80% reduction in greenhouse gas emissions below 1990 levels by 2050. For the periods 2015 to 2050, interim targets should be established at five year intervals, with a 2020 interim target set at a level of at least 25% below the 1990 level.

Through Bill C-30, the following principles should be added to the preamble of CEPA. Canada's climate policy must be guided by the ultimate objective of the UN Framework Convention on Climate Change, which is to prevent dangerous anthropogenic climate change. This means keeping global average temperature increases under two degrees Celsius relative to pre-industrial levels.

Canada needs to commit to doing its fair share to combat this global problem. We need the use of hard caps on greenhouse gas emissions that increase in stringency if the science shows that further efforts are needed. There should be no trade-offs between cleaner air and greenhouse gas reductions.

For more detail, we need some sectoral amendments. For heavy industry, we need an amendment requiring the governor in council to limit greenhouse gas emissions from heavy industry through regulations that take effect no later than January 1, 2008 for the period 2008 to 2012. The amendment must include a hard cap on emissions that impose a Kyoto target on heavy industry. This means working toward a reduction to 6% below industry's 1990 emission levels for all final emitters. We need an auction of permits with the option of revenue recycling for economic efficiency.

We also need a linkage to other Kyoto compliant emissions trading systems. For vehicles, we need an amendment that would require the governor in council to impose regulated vehicle emission standards set to match or exceed the California vehicle standards, with those regulations coming into force for the 2009 model year.

On energy efficiency, a preamble should be added to the Energy Efficiency Act that supports setting continuous economy-wide improvement targets in energy efficiency in Canada, with two new sections to be added to the Energy Efficiency Act. First: the governor in council would be required to prescribe energy efficiency standards for all energy using products that are responsible for significant or growing energy consumption in Canada. Second, the governor in council would be required to review all energy efficiency standards within three years after they were introduced or amended and every third year thereafter. Through this review, every energy efficiency standard must be made to meet or exceed the most stringent levels found in North America.

On the issue of governance, we need a budgetary policy that would require the Minister of Finance to table an analysis of the projected greenhouse gas impacts of the Government of Canada's budgetary policy, disaggregated by measure, at the same time that the minister tables the annual budget.

Finally, we need the creation of an emissions reduction agency that would draw on the model of the California air resources board and create an arm's length agency responsible for climate research, regulation and the development of science based, interim, greenhouse gas targets for Canada.

With this package of amendments, we would turn Bill C-30 into a real bill for climate change and a real bill for air pollution reduction. However, we must remember that the first order of business must be global warming and climate change without which no other government activity will matter if we cannot start by saving the planet.

[Rona Ambrose, Conservative, Edmonton—Spruce Grove, AB]

Mr. Speaker, all of the hon. member's questions raise exactly the point as to why we should get this bill to a legislative committee as quickly as possible to address these issues.

I would submit to him that we should not have to choose between regulating air pollution and regulating greenhouse gases. What we have learned from other jurisdictions and from the measures put in place by the last government is that it is not enough. We did not go far enough. We definitely did not go far enough when it comes to air pollution.

We know now that taking an integrated approach to addressing both of these issues is key to the health of Canadians and key to the health of our environment, because one technology to reduce greenhouse gases may in fact result in increased air pollution, and vice versa, depending on fuel choices and many other related issues.

On the issue of Kyoto, Bill C-30 is a piece of domestic legislation so that Canada can finally make emissions reductions here at home. Obviously the discussion at the committee will involve whether or not this legislation is going to contribute to our overall Kyoto compliance and how, but what I will say is that we can finally say something positive to the international community, and we did deliver this positive message in Nairobi, which is that because Canada is finally moving toward mandatory, regulated emissions reductions, we will be able to make a contribution to the global effort to reduce greenhouse gases. We also delivered the message to the international community that we will also be reducing air pollution, which is obviously a priority for all of the member countries as well.

Again, in Nairobi, Canada was one of over 162 countries that led us to a consensus, and the consensus was that the Kyoto protocol needs to undergo a review. Canada supports a review of the Kyoto protocol to make sure that as we move forward to the next compliance period we make sure that we do not make the mistakes that were made previously.

We also introduced strong accountability frameworks around some of the international programs that the member raises. Again, the member needs to make a distinction between taxpayer funded programs and programs that are market driven. The Kyoto protocol has some mechanisms that are supposed to be used by the market, but the previous government was using taxpayers' dollars to invest in those projects. We believe that if it is industry led, that is fine.

The bottom line is that under the Liberal plan the taxpayer was paying and under the Conservative plan the polluter will pay. That is the substantial difference.

On short term targets, I welcome input from all parties leading up to January and through our legislative committee to help us set short term targets that are achievable and that will not ruin our economy but will instead encourage our economy to make a transformation into a green economy. I would thank the member for whatever he would like to add to the committee.

[Rona Ambrose, Conservative, Minister of the Environment]

moved:

That Bill C-30, An Act to amend the Canadian Environmental Protection Act, 1999, the Energy Efficiency Act and the Motor Vehicle Fuel Consumption Standards Act (Canada's Clean Air Act), be referred forthwith to a legislative committee.

Mr. Speaker, it is my honour to rise today in my capacity as Canada's Minister of the Environment to speak to Bill C-30, Canada's clean air act, which marks a bold new era of environmental protection as this country's first comprehensive and integrated legislation to reducing air pollution and greenhouse gases.

I welcome all who are present today to discuss Canada's clean air act, understanding that our commitment to a better future for all Canadians is unwavering.

The environment is a sacred trust, bestowed on us by our ancestors to embrace and preserve for our country's future. Canada's new government intends to uphold this responsibility, which is why it is important that consideration of Bill C-30, Canada's clean air act, begin as soon as possible.

The environment is a concern to all of us. Greenhouse gas emissions and air pollutants transcend borders and affect the health, environment and well-being of all Canadians.

Since taking office, our government has undertaken a number of important environmental initiatives. These include: action to reduce the release of mercury into our surroundings; reductions to the release of toxic substances from base metal smelters; new tax incentives for the banking of environmentally sensitive lands; funding for the development of renewable fuels; and the introduction of new infrastructure funding dedicated to public transit, as well as tax credits for the people who use public transportation.

The opposition has criticized Canada's clean air act, but have yet to identify one single clause in the act with which they disagree. Instead, the opposition has introduced two private members' bills that ignore the issue of targeting air pollution.

Not surprisingly, after decades of neglecting air pollution, the state of the environment this government has inherited from the newly elected Leader of the Opposition jeopardizes the health of every Canadian, but especially the most vulnerable in our society, our children and seniors, who suffer disproportionately from smog, poor air quality and environmental hazards.

Our government shares the concerns of Canadians about the environment and the quality of the air that we breathe.

Addressing only greenhouse gases is not enough. We must also address air pollution. Poor air quality is not a minor irritant to be endured, but a serious health issue that poses an increasing risk to the well-being of Canadians.

Again, Canada's clean air act is the first legislation to address both air pollution and greenhouse gases in an integrated fashion. Greenhouse gas emissions degrade Canada's natural landscape and pose an imminent threat to our economic prosperity.

Canada's clean air act represents real, concrete action to achieve results through mandatory, strict regulations.

We are sharply focusing our efforts on addressing the greatest threats to the health and well-being of Canadians. We need tough pollution regulations that measurably reduce asthma, chronic bronchitis and lung cancer by improving both indoor and outdoor air quality. This is why our government will take unprecedented action to regulate indoor air pollution, the second highest cause of lung cancer in non-smokers.

Canada's clean air act is the first legislation to recognize that most sources of air pollutants are also sources of greenhouse gases and they must be addressed together. Canada's clean air act proposes a comprehensive set of amendments to the Canadian Environmental Protection Act, to the Energy Efficiency Act and the Motor Vehicle Consumption Standards Act.

Canada's clean air act contains crucial new provisions that will expand the powers of the federal government to address the existing inefficient voluntary standards and move to strict enforceable regulations.

By strengthening and bringing more accountability to our existing laws, Canada's clean air act requires the Ministers of the Environment and Health to: establish, monitor and report on new national air quality objectives tied to the health of Canadians; report to Parliament on the effectiveness and the progress of our programs; and move from voluntary to mandatory, enforceable regulations.

Canada's clean air act is needed to ensure that renewable fuel requirements can be implemented in an efficient and effective manner to provide cleaner fuels for our cars. A biofuels industry will lead to substantial reductions in greenhouse gas emissions and air pollution and unprecedented economic opportunities for Canada's agricultural industry.

The government is also consulting on options surrounding an emissions trading regime.

That is why the government, through Canada's clean air act, is consulting on options that allow trading and that align our compliance regimes to support the implementation of a trading system that results in the lowest cost opportunities for emissions reductions for industry.

We have been clear that any trading system must be market driven, not subsidized by taxpayer dollars. Unlike previous governments, our government will not purchase credits or create an artificial trading market subsidized by taxpayer dollars.

The second key difference in our approach on clean air lies in our focus on mandatory, strict regulations. Past governments relied on voluntary measures, satisfied that industry could set its own standards.

The environment commissioner confirmed that this is not acceptable or workable and condemned the former environment minister, the newly elected Leader of the Opposition, by stating that the measures were “not up to the task of meeting the Kyoto obligations”. She went on to say that the Leader of the Opposition's efforts were inadequate, lacked accountability, and would have never reduced greenhouse gas emissions below 1990 targets.

Canadians will be glad to know that those days are over. From now on, all industry sectors, including the auto sector, will have mandatory requirements, and we will enforce those requirements. Our plan puts the health of Canadians and the health of our environment first.

Any polluters that go over their air pollution targets will be fined and all money will go toward an environmental damages fund.

We also have an ambitious long term target aimed at absolute reductions in greenhouse gas emissions, up to 65% by 2050, as recommended by the National Round Table on the Environment and the Economy.

The previous government signed and ratified the Kyoto protocol without an implementation plan to achieve results. That inaction and those empty promises have left Canadians with a 35% increase in greenhouse gas emissions above the targets set by the Liberals.

We must move beyond the arbitrary and unattainable targets set by the Liberals and work together at setting achievable targets. We must lead the world by example and show them that through government cooperation with industry we can make vast improvements for the health of Canadians and the health of the planet while still maintaining one of the most robust economies in the world.

By spring 2007, the government will announce short term targets for air pollution and greenhouse gases, and industry will have to meet these regulations within four years.

Our approach also encourages technological change. Technology plays an essential role in reducing air pollution and greenhouse gas emissions and provides us with huge economic opportunities.

We will also introduce mechanisms to encourage and facilitate investment in new technology, but we will not use a carbon tax, because the only people who end up paying are Canadian taxpayers and we think that they have paid enough through their health. Under a Conservative government, it will only be the polluter that will pay.

Any industry that goes over its greenhouse gas limits will have the option of paying into a Canadian technology fund to comply with the regulation. The money paid into the fund will be reinvested in technology to reduce greenhouse gases.

The third key difference in our approach on clean air is that we are taking action right here in Canada. Canadians will be able to hold our government and industry accountable for achieving results.

We will be accountable to Canadians by reporting on our progress in a public annual air quality report and we will be held accountable through measurable outcomes linked to the health of Canadians. We will also be accountable to Parliament by mandatory annual reporting to Parliament on our actions and their effectiveness to reduce air pollution and greenhouse gases.

Rest assured that Canada will continue to be a constructive player in global efforts to address climate change, but we need to clean up our own backyard and set an example for the rest of the world. We will set an example by leading here at home and we do not plan to do this by purchasing international climate change credits to meet unachievable targets as a substitute for a concrete regulatory agenda to reduce Canada's own emissions.

This government has charted a fundamentally new course on the environment. Canada's clean air act and Canada's clean air regulatory agenda will set strict, enforceable regulations that will result in concrete, realistic action to protect the health of Canadians and the environment for generations to come.