Natural Resources Committee on Nov. 22nd, 2007

[Gary Lunn, Conservative, Saanich—Gulf Islands, BC]

First of all, I absolutely believe ACL. It has to be self-sufficient. I think there's a great opportunity. There are certain issues that, as the minister, I am forced to deal with. As far as not putting money into other industries, that's absolutely absurd, and false.

On our renewable energy initiative, we put $1.5 billion into promoting renewable energy: wind, solar, geothermal, biomass, and tidal. We've put $230 million into technology initiatives. We've put $2 billion into our biofuels initiative. Of that, $500 million is going into next generation cellulose. We are making significant investments in all other forms of energy.

The really exciting promise of where this is going, and I get quite enthusiastic about it, is what's being developed on the technology front on things like carbon capture and storage, and on clean coal. They're making some remarkable progress in the technology on this. I believe in the very near future we will go from the laboratories and research to pipe and steel in the ground, where we're going to see full commercial projects with respect to clean coal with full carbon sequestration that will potentially be emission-free. There are some great things happening in all the sectors right across the board. I'm very enthusiastic about that.

Your assertion that we're not investing in other energies is false.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

Minister, this year, you're doing 10 net-zero energy healthy home demonstrations. Why didn't you do 2,500 consuming 60% of the usual amount of energy? These are technologies that we know and that were developed here in Canada a number of years ago. You do 10 model demonstrations to show that you're doing something. Why didn't you do 4,000 or 5,000 home demonstrations consuming 60% of usual energy levels?

[Gary Lunn, Conservative, Saanich—Gulf Islands, BC]

In fact, that's exactly what we're doing. We've spent, as I said, $300 million on our ecoEnergy efficiency initiative. We're investing in the research and technologies. We're developing building codes in Natural Resources Canada. It's primarily provincial or municipal jurisdiction, building codes; it's not federal jurisdiction. But they don't necessarily have the resources for the development of these codes, so we're actually developing these—the latest standards in building energy efficiency—within Natural Resources Canada to make these building codes available for the jurisdictions to implement. But it's not our jurisdiction to do that. We recognize what is within our jurisdiction. It's not up to us to walk into Quebec and say “These are your new building codes”. It's not our jurisdiction, but we can develop—

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

The National Building Code has always been done by Canada.

[The Vice-Chair, Liberal, Lloyd St. Amand]

Mr. Allen.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Thank you, Mr. Chair.

Mr. Tobin, I have just a couple of questions.

I have a comment on your major projects office. In New Brunswick we have a significant number of new mining opportunities that are coming about in New Brunswick, which is quite exciting. One of the major ones is actually in my riding. What I'd like to know is what do you see as the specific roles and responsibilities of that, and is there an allocation? I didn't notice it. When do we expect a ramp-up of that major project office to take off, and when will we expect to see these costs in the budget?

[Gary Lunn, Conservative, Saanich—Gulf Islands, BC]

I'll answer that, and with the indulgence of the chair, perhaps I could invite Phil Jennings to the table. He is the ADM for the MPMO. He could shed some additional light on that.

They are ramping up; they are staffing up. We think this is a great initiative, where we have an opportunity to cut our regular approval times in half. We want to make sure we have it right before we launch it, but some time in early 2008--we don't know exactly whether it will be February, March, or April--we will start accepting projects.

I will just ask Mr. Jennings to expand on this. He's actually been setting up the office, staffing it, and setting up their priorities.

[Philip Jennings, Director General, Petroleum Resources Branch, Department of Natural Resources]

I should just clarify one thing. The initiative is actually broader than the office itself, so $150 million was allocated to a number of departments over five years, and actually 85% of that money is to deal with capacity issues. In essence, there has been, as the minister mentioned before, a 200% increase in the number of natural resource projects in the last few years alone, and departments were feeling the pressure in terms of being able to respond to that in terms of maintaining the high environmental standards, in terms of being efficient, in terms of how it does it. So a large part of that is really dealing with the capacity, which would be allocated where it's needed, and obviously if it's needed for mining projects in your riding, then that's where it will be allocated by departments.

The office itself will be located in Natural Resources Canada, and that is essentially $20 million over five years. That's to deal with what we're actually calling the system issue, which is, at the moment, that each regulatory department discharges its obligations in terms of regulations. CEAA does the environmental assessment, but nobody was tasked with trying to look at how this system was working together, and the office's principal task is essentially trying to make sure that there is coordination among federal departments in terms of how it discharges the obligations. Another part of what the office will be doing is actually increasing transparency so that all stakeholders, including members of the public, can have a better sense of what is required in terms of regulatory approvals--where it is in the system--so that the accountability is much stronger in terms of having an effective and efficient regulatory system.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

I have another really quick question, and this relates to forestry. That also has a big impact in New Brunswick, as you are aware, Mr. Minister.

A lot of the forestry industry is looking at alternative generation sources to do this, and I do recognize the complication of provincial jurisdiction and energy generation. So with respect to the renewable power piece, what has been the take-up and the success in dollars flowing as per these estimates to projects in the energy generation forest sector?

[Gary Lunn, Conservative, Saanich—Gulf Islands, BC]

On our renewable ecoEnergy initiative, where we have put $1.5 billion in to put 4,000 megawatts of clean energy into the system...actually the bioenergy within the forestry sector, we made it so that it's eligible. So if a forest company is looking at recovering some of its wood waste or waste and creating bioenergy, then they are eligible for this production incentive.

On the take-up, I don't have the exact number. I'll be happy to get that back to you. In dealing with the Forest Products Association of Canada, they have been a very enthusiastic supporter of this program, and the take-up right across Canada has been very strong by the forest sector. That's one of the ways we've been able to help. We still recognize there are some extraordinary challenges that the forest sector is facing and we're looking at further opportunities where we can work with the industry to ensure that it can continue providing jobs for Canadians.

[The Vice-Chair, Liberal, Lloyd St. Amand]

Thank you, Mr. Allen.

Thank you again, Minister, for coming. Thanks to your officials.

Mr. Anderson.

[David Anderson, Conservative, Cypress Hills—Grasslands, SK]

I'd like to remind members, in the absence of the chair, that we have witnesses coming on Tuesday to deal with the Nuclear Liability Act. We will be able to bring all of the witnesses set forward by the members, other than one who is stationed in Europe. I thought maybe we should bring that back to the committee to discuss the expenditure that may involve.

[The Vice-Chair, Liberal, Lloyd St. Amand]

Thanks, Mr. Anderson.

[Alan Tonks, Liberal, York South—Weston, ON]

I move adjournment.

[The Vice-Chair, Liberal, Lloyd St. Amand]

The meeting is adjourned.