Thank you very much, Mr. Chairman. Let me join with my colleagues in thanking the committee for taking the time to hear us today. We appreciate that very much.
Briefly, let me introduce the Canadian Gas Association to you. We're the association that represents the industry that delivers natural gas to Canadians in their communities. Put another way, we deliver about 26% of the energy that Canadians use; we deliver to close to six million homes and businesses from one side of Canada to the other.
Mr. Chairman, in addition to our written submission we have provided some slides that we hope the committee might find useful in its deliberations. In those we lay out four specific proposals. I'll return to the details of the proposals in a minute, but they're basically under two broad themes. The first theme is fuel choice; the second theme is what we call integrated energy systems.
Let me put that in perspective. Looking forward, I think the challenge we face in Canada in our energy system is threefold: we need to increase the reliability of the system, we need to ensure the affordability of energy to Canadians, and we need to deal with environmental impacts across the board. In order to do that, we take the view that we need to look at the energy system as a whole. By the energy system, I mean the whole network, from production at the upstream end through to end use.
There are a couple of things to think about in this regard. What Canadians buy is not energy; they buy the services that energy provides, and we need to start by focusing there, whether it's heat, whether it's light, or whether it's process heat for industry. We have a system that is becoming increasingly integrated, increasingly diverse. Those are two things we need to encourage. We need to think about how that system is most effective and efficient at delivering the services Canadians look for.
The particular interest of my association is the downstream end of that system. Let me talk a little bit about the role of natural gas in that context. As I say, natural gas accounts for something over one-quarter of the energy Canadians use. Most importantly, natural gas has several attributes that lead to that position in the marketplace. Natural gas is the form of energy best suited for delivering heat--for delivering things like hot water, for delivering process heat to industry. We've been very successful over the years at making our way in that marketplace.
Looking forward, we think there are opportunities that could and should be supported by public policy to sustain that position and, in the process, to improve the functioning of the energy system because of natural gas's inherent environmental advantages, because of its affordability advantages, and because of its inherent reliability in its capacity to deliver energy to Canadians when they want it--on demand--with very little fear of disruption.
As I said, we focused on two themes: one we call fuel choice. It is basically to ensure that Canadians have the chance to make the smart environmental and economic choice.
The essential point here is making sure that the gas distribution infrastructure is available to support those choices, and to ensure, when we have energy efficiency programs--which I'm assuming the government will support, looking forward--that those programs also support fuel choice as a viable and appropriate and environmentally preferable option.
The second theme is what we call integrated energy systems. These are systems that bring together different technologies, that deliver a number of energy services, that allow the two grids--electricity and natural gas--and new technologies such as renewables and energy-efficiency technologies to work together.
There are two proposals there: support to demonstration programs to support integrated energy systems, and support to looking at how the capital cost allowance system, specifically class 43.1, can be made more efficient and more effective in ensuring those choices are made.
Mr. Chairman, with that I'll wrap it up. Thank you very much.