Evidence of meeting #24 for Natural Resources in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was gas.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Tim Hodgson  Minister of Energy and Natural Resources
Sletto  Chief Executive Officer, Canadian Energy Regulator
Christie  Chief Economist, Canadian Energy Regulator
O'Brien  Assistant Deputy Minister, Fuels Sector, Department of Natural Resources
Jennings  Committee Researcher

The Chair Liberal Terry Duguid

What is your point of order?

5:20 p.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

My point of order is that we've already established, by convention and at the PROC committee meeting this very month, it is absolutely within the latitude of members of Parliament to ask questions of the regulators, who are more than—

Corey Hogan Liberal Calgary Confederation, AB

I'm sorry, Chair, but I never—

5:25 p.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

No, I'm going to finish my comment.

We're in front of professionals who are here and prepared to be accountable to Canadians. We're asking questions and they're well capable, and the member just explicitly explained how his questions are directly related to LNG.

The entire topic of this meeting is also related to a larger study on the budget. Every single one of these regulators requires major budgets, and there are major budgets in the MPO.

He is asking about the Canada Energy Regulator. He has tied electrification to LNG. He is advocating for his local community. The Liberals are trying to stop him, but I bet these guys are well prepared to answer the questions, as they've already shown, so why don't we stop this anti-democratic interference by the Liberals?

If you guys are at all serious about collaborating, getting along and hearing from all Canadians, including those of us who represent regions that you do not, let us just stop this and get going.

The Chair Liberal Terry Duguid

Thank you.

Corey Hogan Liberal Calgary Confederation, AB

Thank you, Chair. I never rose my point of order.

The Chair Liberal Terry Duguid

Hang on. I haven't recognized you yet.

5:25 p.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Also, I'm never going to be the person who brings up an issue about language, but I think “frigging” is unparliamentary.

The Chair Liberal Terry Duguid

Hang on. Excuse me.

We're suspended for a moment.

The Chair Liberal Terry Duguid

We're back in session.

Before I recognize Mr. Hogan, I'll note that I have just ruled on relevance.

Mr. Gunn, I would ask you to relate your questions to the matter at hand. We've invited folks who are prepared to speak to the subject matter before our committee today, clauses 593 and 594 of Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on November 4, 2025. If they were invited on the matter to which you're speaking.... I'm not sure it's fair to the witnesses, so I would ask you once again to stick to the matter at hand, or I will pass it on to the next speaker.

Before that, Mr. Hogan, you had a point of order.

Corey Hogan Liberal Calgary Confederation, AB

Thank you, Chair.

I didn't get an opportunity to say my point of order. There was an assumption that was relatively correct, but I was just going to flag that the member explicitly talked about electricity's effect on his local economy. We are talking about an export provision, and I appreciate the latitude.

I'm sensing that there's some energy for an electricity study in our future, and I'm down for that, but today we're talking about LNG.

The Chair Liberal Terry Duguid

Okay.

Go ahead, Mr. Gunn.

5:25 p.m.

Conservative

Aaron Gunn Conservative North Island—Powell River, BC

Mr. Chair, literally a big part of why the Canada Energy Regulator made this decision comes from a submission from BC Hydro opposing it. One of BC Hydro's goals is the electrification of LNG projects, of which there is one right next door to Powell River in Squamish, so there is a direct correlation on this.

Your letter states that BC Hydro indicated that it was willing to purchase this electricity on comparable terms, perhaps to help with the electrification of LNG projects. How can the energy regulator be satisfied that fair market access criteria were truly met in this case if you go forward with the licensing process?

5:25 p.m.

Chief Economist, Canadian Energy Regulator

Darren Christie

I'm not going to speak to how the commission might rule, just out of fairness for the process and the application—

5:25 p.m.

Conservative

Aaron Gunn Conservative North Island—Powell River, BC

How do you determine that?

5:25 p.m.

Chief Economist, Canadian Energy Regulator

Darren Christie

If the recommendation is accepted, that gives the commission the ability to make determinations about process, which could include evidence submitted from parties. It would be determined based on the evidence put before the commission.

5:25 p.m.

Conservative

Aaron Gunn Conservative North Island—Powell River, BC

You mentioned earlier surplus tests for LNG exports. Would you also consider a surplus test when it comes to electricity if, for example, British Columbia will need this electricity to electrify LNG export facilities? Will that be a factor in your decision on whether to grant a licence?

5:25 p.m.

Chief Economist, Canadian Energy Regulator

Darren Christie

The test in the act for electricity is different from the test for hydrocarbons, including LNG. It's not the net surplus test that Ms. Sletto described.

5:30 p.m.

Conservative

Aaron Gunn Conservative North Island—Powell River, BC

As part of the test, do you have to consider, or are you able to consider, what's in Canada's broader national interest or in the interests of workers, jobs and the local economy, in this case Powell River, or is it more narrow, where you're only looking at fair market access criteria?

5:30 p.m.

Chief Economist, Canadian Energy Regulator

Darren Christie

First, I'll say that this is the first time the commission has recommended that this type of application be moved to the additional process, so I'm not confident in giving a firm answer on what the commission can consider.

5:30 p.m.

Conservative

Aaron Gunn Conservative North Island—Powell River, BC

Can you commit that if you do get the go-ahead from cabinet to proceed with this, there will be public hearings in Powell River as part of a future licensing process?

5:30 p.m.

Chief Economist, Canadian Energy Regulator

Darren Christie

I cannot, because that is a decision of the independent commission of the CER.

The Chair Liberal Terry Duguid

Thank you both.

Mr. Gunn, I want to thank you for connecting your comments and your questions to LNG. I really appreciate it.

Mr. Guay, you have six minutes.

Claude Guay Liberal LaSalle—Émard—Verdun, QC

Thank you, Mr. Chair.

I want to thank the witness for being present and for being ready to answer questions.

We heard a few weeks ago that a potential issue in the funding and raising of capital for oil and gas exports comes from a lack of certainty. Do you feel that the new 50-year export licence for LNG will increase certainty, making these projects more financially viable, de-risked and likely to be seen to completion? From an economic standpoint, maybe you can then link it to job creation and actual projects moving forward. That would be helpful in helping us justify this amendment.

5:30 p.m.

Chief Executive Officer, Canadian Energy Regulator

Tracy Sletto

I may start the response, but I'll turn the question over to our colleagues from Natural Resources Canada. As a regulator, of course, our responsibility is with the safety and economic regulatory mandate.