Thank you for the opportunity to appear before the Standing Committee on Natural Resources in regard to the private member's bill, Bill C-354, an act to amend the Department of Public Works and Government Services Act with respect to use of wood.
To begin, I want to acknowledge that wood and wood products are indeed important contributors to the Government of Canada's infrastructure needs. For example, Public Services and Procurement Canada, alone, is already spending approximately $160 million a year, on average, for office fit-ups and interior finishes, of which approximately 15% is directly related to the use of wood products. We believe that, in order to have a complete discussion on this topic, we need to first set the stage by sharing with you the important work that PSPC has undertaken and is continuing to undertake to support the Government of Canada's goals of reducing greenhouse gas emissions. This includes PSPC's current policies and practices associated with the use of sustainable materials.
PSPC's commitment to sustainable government operations is enshrined in our policies, frameworks, procedures, and tools that govern the design, construction, and operations of our assets. In support of the federal sustainable development strategy and as part of our department's mandate, we are firmly committed to making government operations more sustainable with the green building practices and other initiatives. This includes using sustainable materials, moving toward optimizing our space use, and lowering the energy consumption of our federal buildings.
To put this into context for you, buildings are significant emitters of greenhouse gases and contribute 23% of Canada's overall GHG emissions. As providers of accommodation to the Government of Canada, our department is in the unique position to have a direct and significant impact on the greening of government operations. PSPC is the first federal department to complete a national carbon-neutral portfolio plan that takes into account all real property–related greenhouse gas emissions and energy reduction initiatives that we have undertaken. An example of this includes the investment we have made in the energy services acquisition program, through which we are modernizing the heating and cooling system that serves approximately 80 buildings in Ottawa. This includes many of the buildings on and around Parliament Hill. In advance of this modernization effort, we are currently piloting and testing wood chips for use as a possible biomass fuel. The results will help determine the potential for expanding this option to other federal heating and cooling plants.
PSPC has also undertaken a leadership position in embedding GHG reductions in project design. By undertaking a comparative analysis of the cost versus GHG emissions reductions for different project design options over a 25-year life cycle, decision-makers are able to select the best balance between fiscal and GHG emission considerations.
For example, in the case of the Arthur Meighen Building in Toronto, designing for the minimum departmental requirements would lead to a 24% reduction in GHG emissions as compared to the current building. However, by incorporating additional sustainability requirements, it is possible for the project to achieve a substantial GHG emission reduction of 88% with a minimal net increase in life-cycle costs over 25 years, that increase being $13 million or 5.6%.
As part of PSPC's commitments under the federal sustainable development strategy and pan-Canadian framework on clean growth and climate change, we are committed to designing projects and buildings to meet sustainable performance standards such as leadership in energy and environmental design, LEED, and Green Globes. These performance standards encourage the use of products and materials for which life-cycle information is available and that have environmentally, economically, and socially preferable life-cycle impacts.
For example, PSPC's Quebec City regional office, which was completed in 2012, is certified LEED gold and is currently the most energy efficient building in our portfolio. Another example is the Greenstone Government of Canada Building in downtown Yellowknife. Completed in 2005, the Greenstone Building was the first building above the 60th parallel that was certified LEED gold, representing a remarkable achievement in this unique environment.
PSPC's policies, standards, and tools set out a holistic approach to fostering sustainable practices, which include the use of sustainable building materials in construction and renovation projects that meet performance requirements while also giving appropriate consideration to environmental and economic factors.
As well, through the delivery of a range of real property services to, and in collaboration with, other government departments, PSPC is provided with opportunities to understand demand, aggregate similar needs, and develop proposals that will reduce the Government of Canada's overall footprint in GHG. The National Building Code of Canada, or the building code, allows the use of wood and other combustible construction materials in structural elements for buildings up to six storeys in height, unless it can be demonstrated that they can perform in the same way as non-combustible construction materials. In alignment with the building code, PSPC continues to allow wood to be considered in the design and construction of federal buildings.
The next speaker from Natural Resources Canada will brief you on other actions the Government of Canada is taking to support the use of wood, and more generally, to reduce the GHG emissions. This includes innovative research and development that could result in updating the building code to allow wood buildings up to 12 storeys and beyond. We are following this closely and are excited by the material use possibilities these potential changes could bring. As you can see, there is so much that we are already doing to implement holistic, integrated project design that takes into account the use of sustainable materials like wood to reduce GHG emissions.
The Government of Canada and PSPC are committed to fairness, openness, and transparency in the procurement processes, principles that are also deeply enshrined in both policy and law. Canadians expect the government to adhere to the principles of fairness in procurement. With this in mind, PSPC is committed to ensuring that, through the procurement process, it does not give preference to one building material over all others. These commitments support Canada's obligations under key trade agreements such as the Canadian Free Trade Agreement, or CFTA, and the North American Free Trade Agreement.
For example, the CFTA prohibits discrimination among the goods or services of a particular province or region. Giving preference to projects that promote one primary material—in this case, wood—may be interpreted as discrimination against regions that do not supply this material. Similarly, as a technical specification, referring to a particular type of material for which no alternative is permitted could be interpreted as creating unnecessary obstacles to trade.
To conclude, PSPC initiatives and policies reaffirm our commitment to protecting the environment and to ensuring a fair, open, and transparent procurement process for all suppliers. PSPC continues to work to integrate many sustainable practices in our operations and to take an integrated and holistic approach to project design and construction, which includes the use of a variety of sustainable materials while giving appropriate consideration to environmental, social, and economic factors.
Thank you. My colleagues and I would be pleased to answer any of your questions at the end of the opening statements.