Bill C-221 (Historical)

Environmental Restoration Incentive Act

An Act to amend the Income Tax Act (oil and gas wells)

This enactment amends the Income Tax Act to establish a tax credit for the closure of oil and gas wells. It also sets out a requirement for the Minister of Finance to make an assessment respecting the implementation of possible tax incentives for the closure of oil and gas wells.

[The Chair, Liberal, Ginette Petitpas Taylor]

No. Thank you so much for that. That's great.

Perhaps now we can proceed through each item. To be efficient with our time, we could maybe just go through them item by item, and if there are no questions or comments, we can dispose of them fairly quickly. We'll be able to address the ones for which there is debate.

Does that sound appropriate to everyone?

We'll start off, then, with Bill C-210. Does anyone have any issues or comments about that one? No.

Next is Bill C-238.

I see there are no comments, so we'll move right along to Bill C-224. Good.

Next is Bill C-215. No comments.

Next is Bill C-204, and now Bill C-229.

I'm not going to jinx it, but we're on a roll.

Now we have Bill C-218 and a motion, M-34.

Next we have Bill C-214, Bill C-220, Bill C-221, Bill C-222 and Bill C-213.

I love working with women.

Next is Bill C-223, followed by M-35.

Now we have Bill C-206, Bill C-216, Bill C-208, Bill C-205, Bill C-237, Bill C-225, Bill C-228, Bill C-236, Bill C-230 and Bill C-232.

COVID-19 Pandemic

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Madam Chair, the government announced for the energy sector $1.72 billion for orphan well remediation, an emissions reduction fund and a business credit availability program. The first idea actually comes from Bill C-221, which is the MP for Lakeland's bill. A Conservative MP suggested it. The problem is the PBO's costing for that original private member's bill was $30 billion upwards of private sector investment. Seeing that WTI is trading today as low as minus $40.32, when can Albertans expect the rest of the energy subsidy help?

Environmental Restoration Incentive Act

[Shannon Stubbs, Conservative, Lakeland, AB]

moved for leave to introduce Bill C-221, An Act to amend the Income Tax Act (oil and gas wells).

Mr. Speaker, today I introduce the environmental restoration incentive act. I thank many members and colleagues for their support.

Canadian energy producers lead the world in remediation and reclamation, but struggling small and medium-sized oil and gas producers are collapsing in real time, leaving fiscal and environmental liabilities.

The 2019 Redwater decision means at-risk small companies now cannot raise money for that purpose. Municipalities lose major revenue and facilities are left in different conditions. It is not evasion or neglect by small gas producers, but a stark reality of their precarious economic positions. The number of orphan wells rose more than 300% since 2015. There are more than 130,000 inactive wells in Canada. Cleanup costs are estimated between $30 billion and $70 billion. The current orphan well system is overwhelmed and risks costing taxpayers 100% of those costs.

My bill would enable small producers to raise money from investors exclusively for decommissioning oil and gas wells. It would incentivize and ensure private sector proponents can fulfill environmental responsibilities at the lowest public cost.

My bill is not a perfect remedy for this complex challenge that requires co-operation and ongoing action from federal and provincial governments. I ask all members to partner and prioritize real solutions for all Canadians.

We can make a real difference right away with a tax credit that can only be used the year a well is decommissioned, will only exist for six years, and will only be for small and medium-sized producers that need it the most, with further measures later on.

My bill would help the environment, create immediate jobs for oil and gas workers, and protect taxpayers.

(Motions deemed adopted, bill read the first time and printed)