This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.
This bill has received Royal Assent and is now law.
This is from the published bill.
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 the Minister of Natural Resources with prescribed information respecting the shipment or importation of energy-using products;
(d) provide for the authority to prescribe as energy-using products manufactured products, or classes of manufactured products, that affect or control energy consumption;
(e) broaden the scope of the labelling provisions; and
(f) broaden the scope of the Minister’s report.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
The House proceeded to the consideration of Bill S-3, An Act to amend the Energy Efficiency Act, as reported (without amendment) from the committee.
The Acting Speaker Barry Devolin
There being no motions at report stage, the House will now proceed, without debate, to the putting of the question on the motion to concur in the bill at report stage.
Steven Fletcher Conservative Charleswood—St. James—Assiniboia, MB
moved that the bill be concurred in.
(Motion agreed to)
Some hon. members
Agreed.
Steven Fletcher Conservative Charleswood—St. James—Assiniboia, MB
moved that the bill be read the third time and passed.
Energy Efficiency ActGovernment Orders
Cypress Hills—Grasslands Saskatchewan
Conservative
David Anderson ConservativeParliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board
Mr. Speaker, it is my pleasure to address the House regarding the third reading of Bill S-3, a bill proposing to amend Canada's Energy Efficiency Act. The bill was discussed at second reading, went to committee and was dealt with very quickly there. We had agreement that the bill should go ahead. It came back here, and today we are debating it at third reading.
The purpose of the bill is fairly straightforward, and that is to eliminate the least efficient energy-using products from Canada's marketplace. Eliminating them will substantially help in reducing greenhouse gases and other atmospheric emissions.
This is not a long bill. It only has a few clauses. I want to summarize what the bill contains. We think it is important that Canadians understand what is in the bill because it is a significant bill. It has five main clauses.
The bill clarifies the classes of energy-producing products that may be established based on their common energy-consuming characteristics. Some of this was done in the past, but this will bring more clarity and will allow the government to move quickly in order to regulate some of these products that are not energy efficient.
The bill requires that interprovincial shipments of energy-using products meet the requirements of the act.It requires dealers to provide the Minister of Natural Resources with the prescribed information regarding the shipment or the importation of energy-using products. It provides for the authority to prescribe as energy-using products manufactured products or classes of manufactured products that affect or control energy consumption. It broadens both the scope of labelling provisions and the scope of the minister's report.
In short, that is what the bill does. The bill is only four pages long, but it is a significant bill.
The amendments will pave the way for energy efficiency regulations that will cover more products in this country more effectively. This will help Canadians save money by reducing household energy use and lowering home energy bills which every Canadian wants to do.
Energy efficiency is a central aspect of our government's plan to reduce greenhouse gases and air pollution. It is also central to our economic action plan.
Improving energy efficiency is one of the easiest, most cost-effective ways to control energy costs for consumers and businesses alike. Because doing so is good for the environment and for the economy, energy efficiency has become an important part of the Government of Canada's approach to tackling climate change.
Becoming more efficient energy users will also help Canada and Canadian families save money during these difficult times.
Improving energy efficiency has immediate benefits. Whether it is installing a programmable thermostat at home, a high-efficiency copier at the office or a more efficient electric motor at the plant, we begin saving energy. We start spending less money and indeed, we put out fewer emissions. The benefits start right away and they continue to grow, almost like compound interest, month by month and year after year.
As energy prices fluctuate, energy efficiency helps cushion those ups and downs and makes budgeting for energy easier for both families and businesses. With the long-term trend for energy prices likely to be higher, the savings in dollars would continue to get bigger.
I would like to give a little bit of history. Canada's Energy Efficiency Act came into force in 1992. It gave the Government of Canada the authority to make and enforce standards for the performance of energy-using products of two kinds: products imported to Canada and products manufactured in Canada which were shipped across provincial or territorial borders.
The act at that time also gave the federal government the authority to set labelling requirements for these products. This way, consumers then could compare energy efficiency of various models of the same product.
The first set of regulations flowing from the act came into effect in 1995. These regulations applied to a variety of products, primarily major appliances, things such as dishwashers, water heaters, refrigerators, freezers, clothes washers and dryers.
Since that time, the regulations pertaining to the act have been amended 10 times to reflect changing circumstances or to add more products to the standards list and to increase the stringency of the existing standards. We believe there is more that can be done.
Since that time, Canada has adopted some demanding environmental goals. We have committed ourselves to achieving an absolute reduction of 20% in greenhouse emissions by 2020 and 60% by 2050. This includes mandatory limits on emissions from large industry, but we must also substantially reduce emissions on other fronts as well. That is what Bill S-3 aims to achieve.
Regulations made under the revised act will expand the list of covered products and will tighten the standards for some of the products which are already regulated.
The proposed amendments will also make the act more efficient. For example, it will be possible to apply standards to whole classes of products instead of multitudes of individual products. This will be especially important in our attempts to reduce standby power consumption. I would like to talk about that.
Standby power is the electricity that is consumed by many products in our homes when they are turned off. I am speaking here of products such as TVs, computers, CD players, microwave ovens and battery chargers. As many as 25 or even more of these devices can be found in the typical Canadian home. Consequently, most Canadians do not realize that standby power can account for as much as 10% of an average household's annual electricity costs. Ten per cent of the bill is tied to this hidden use of power.
The question is, what if all of these products consumed a minimal amount of power in standby mode?
The Office of Energy Efficiency at Natural Resources Canada estimates that a typical household could cut its electricity cost by at least $35 a year just by making those changes. Across the country, enough electricity could be saved in order to power more than 300,000 homes.
The amendments proposed in Bill S-3 will also allow us to make improvements to the well-known EnerGuide label. It will be even easier for consumers to compare the energy performance of different models of the same product.
Energy efficiency also helps to create and secure jobs. That is another important consideration during the current economic downturn. As soon as we decide to improve the insulation in our homes or to install energy-efficient windows and doors, we are creating and protecting the jobs of the thousands of Canadians who do that work and who manufacture those products.
I would like to bring up something else here, and that is the home renovation tax credit. It does not have anything directly to do with Bill S-3, but it is certainly an extremely popular change that this government has introduced in its budget.
The home renovation tax credit is a non-refundable tax credit that is going to be given for work performed or goods acquired in respect of improvements made to an eligible dwelling. Eligible dwellings are basically the houses that we use and that we live in personally. The credit is going to be based on eligible expenditures for work performed or for goods acquired after January 27, 2009 and before February 1, 2010. The work has to be done and the goods have to be acquired this year. That is obviously going to be important in this economy and the times in which we are living.
It seems that people have really taken to this across the country. People are aware of it. They seem to be more and more interested in doing renovations to their homes in order to access this credit.
The credit is only going to be available for the 2009 tax year. It applies to expenditures of more than $1,000. People have to spend more than $1,000 if they want to claim the tax credit. They can spend up to $9,000. If they spend $9,000, they will get a tax credit of $1,350. It is a significant tax credit. Certainly from what I and my colleagues are hearing across the country, this is going to be a very popular measure in terms of making changes that are going to allow people to save energy and to make those renovations that will make their houses more energy efficient.
As well, Canadians will be able to take advantage of another aspect of our economic action plan. We have just allocated another $300 million to eco-energy retrofit homes for the next two years, and increased all grants by 25%. That increase will further stimulate economic activity for the construction and service industries.
When all of these things are put together, we have quite a package in terms of encouraging people to improve their energy use and energy efficiency.
This will include energy auditors and engineers who assess energy use, providing information needed to make the best choices for making homes and buildings more efficient.
Just as important, the economic activity we generate when we invest in energy efficiency stays right here in Canada. It stays right in our communities supporting local contractors and tradespeople.
Finally, the amendments proposed in Bill S-3 will have a bearing on Canada's competiveness because obviously, a more energy efficient Canada is a more competitive and a more prosperous country. Better energy efficiency means lower energy costs for both business and industry. That means the products that we make in this country and that we sell can be priced more competitively in the global market.
That is important to our future prosperity because other countries are also making some of these same investments in energy efficiency.
That is why energy efficiency has become a central part of our government's long-term economic plan. This is really seen as a strategic investment.
It is also important to consider the energy performance of the goods we produce. If made in Canada electric motors or windows are the most energy efficient, they will be much more attractive to our international customers.
In conclusion, there are numerous and significant advantages to be gained by the amendments proposed in Bill S-3. We would encourage members of the House to pass this bill as quickly as possible.
Geoff Regan Liberal Halifax West, NS
Mr. Speaker, I would like to ask the parliamentary secretary about the climate change aspects of the bill. He talked about energy savings. He talked also about the money savings that all of us could benefit from, from measures to lower the energy use of products we have in our homes. This is true and that is why we support the bill.
It is also true of course that we can benefit and lower our energy use by turning things off, like turning off our computers at night which is important that we do. I hope that my own family is hearing me. I hope my son is hearing me say that and is reminded to do that at home.
An hon. member
Good luck.
Geoff Regan Liberal Halifax West, NS
Apparently one of my colleagues has the same challenge.
What percentage of Canada's greenhouse gases does the bill represent? When will the government bring forward regulations to regulate our greenhouse gases? The government has been talking about doing this for three years now and we have seen no action.
David Anderson Conservative Cypress Hills—Grasslands, SK
Mr. Speaker, I actually did mention a number of ways in which our government has moved on that. The goals have been set at a reduction of 20% in greenhouse gases by 2020. This government is committed to making those targets.
I talked about the home renovation tax credit which will certainly make an environmental difference for many folks in this country when they are making these changes. They are aware of the fact that energy costs are high and they certainly will be making changes in their houses that will help them to be more efficient in their use of energy. As I mentioned, the home retrofit program is designed specifically to do that.
This government has moved on a number of fronts. Obviously, Natural Resources Canada has these three. The other departments have a number of other initiatives that they have put ahead as well. There is a package that is put together that is making a difference for Canadians.
I think they appreciate that. They particularly appreciate the things like the tax credits because they allow them to do that kind of work and to get some credit for it.
Christian Ouellet Bloc Brome—Missisquoi, QC
Mr. Speaker, I have two questions for the member.
One is along the same lines as the question my Liberal colleague asked. How can the government introduce such a bill without calculating the energy and emission savings? In his speech, the member said that emissions will be significantly reduced. But by how much? He should not trot out the figure of 20% by 2020. That is another specific bill. What will the emission reductions and the energy savings be with this bill? That is what we need to know.
I would also like the member to tell me why he is talking about home renovations when I did not see anything about that in the bill. Did he see something about that somewhere? The bill does not talk about home renovations or home energy efficiency. I would like to hear what he has to say about that.
David Anderson Conservative Cypress Hills—Grasslands, SK
Mr. Speaker, I think if the member had been listening to my last answer, he would understand what I said, which is that this government has come up with a package. There are a number of things that different departments are doing. Clearly, Bill S-3 is part of that package. It will make a significant difference in Canadians' lives. That is what it is about. It is about evaluating the products that are on the market right now and finding out if they are energy efficient enough to allow them to remain as they are. If they are not, then they will be regulated and they will have to be replaced by more energy efficient products.
Standby power is a clear example of a place where energy is used and we think we can do something about it.
The answer to the member's question is that it will depend on Canadians embracing the idea of energy efficiency, welcoming it and then adhering to these regulations. That is how the difference will take place.
Brian Masse NDP Windsor West, ON
Mr. Speaker, I have a question for the parliamentary secretary about the home renovation tax credit as he is using that as a crutch for this bill.
It is important to recognize that in this tax credit scheme that the government has going, which does have some good stuff in it, it leaves out renters. Approximately 25% of Canadians are renters and it is even higher in Quebec. For example, a Muskoka cottage owner who builds a deck or re-sods the lawn can get a tax credit but renters cannot. What about renters in co-ops, especially seniors who are long term renters, who want to install new windows to reduce costs? Many apartment buildings have electric and other types of inefficient heating systems and renters need the opportunity to lower their bills because they are usually in the greatest need of support as they are lower on the income scale.
I would like to ask the parliamentary secretary why the government does not fix this. Why has it decided to punish many Canadians by not letting them into this program, especially when they could be putting savings in their pockets instead of subsidizing those who want to build decks and re-sod their lawns in Muskoka?
David Anderson Conservative Cypress Hills—Grasslands, SK
Mr. Speaker, is that not typical? The NDP is again against one of the most popular things that the government has done in years. It just shows how out of step it is with Canadians.
The home renovation tax credit is for people to renovate their homes and it will be available to them.
I do not think we need a crutch. As I mentioned, there is a package of legislative moves and a package of programs.