Evidence of meeting #25 for Transport, Infrastructure and Communities in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was propane.
A recording is available from Parliament.
9:50 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
As I indicated, there are a number of units in the U.S. that you can buy today for $4,000. You'll see that in my presentation.
9:50 a.m.
Conservative
Pierre Poilievre Conservative Nepean—Carleton, ON
People could go to their Home Depot, get and install a compression unit, and fill up their natural gas vehicle at home.
9:50 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
As I indicated, it will cost you $1,500 to install, but yes, you can get your Honda Civic and you can refuel it at home. That's being done throughout the U.S. The Honda Civic that is completely CNG is available only in the U.S., and yes, you can refuel it at home.
9:50 a.m.
Conservative
Pierre Poilievre Conservative Nepean—Carleton, ON
Do you have any numbers on how many are actually doing that?
9:50 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
No, I don't.
9:50 a.m.
Conservative
Pierre Poilievre Conservative Nepean—Carleton, ON
Would that allow someone to drive their vehicle for an average day of use?
9:50 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
An average commuter does less than 25,000 miles per year. They do the refill at night or, depending on their commuter distance, they may do it every second day or whatever.
9:50 a.m.
Conservative
Pierre Poilievre Conservative Nepean—Carleton, ON
You're saying the average commuter in his average day could survive on the nightly or morning fill-up.
9:50 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
A Honda Civic will go roughly 300 kilometres, so again, you have a dedicated vehicle.
9:50 a.m.
Conservative
9:50 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
Typically, where's the product? Yesterday's Globe talked about Chrysler coming out with an OEM towards the second quarter of this year. Product is one thing.
The second thing is in terms of conversions. Again, going back to Ms. Chow's comment, there are barriers because they can only put through so many vehicle conversions, and certainly what we're finding is that they're backlogged in Alberta.
9:50 a.m.
Conservative
Pierre Poilievre Conservative Nepean—Carleton, ON
Are you saying that there are restrictions right now on the importation of foreign-produced natural gas vehicles?
9:50 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
Absolutely. You can get a certificate for three years and bring over a Mercedes E350, but at the end of three years, you have to give it up. Who would spend that kind of money?
9:50 a.m.
Conservative
9:50 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
That's federal.
9:50 a.m.
Conservative
Pierre Poilievre Conservative Nepean—Carleton, ON
That's something we need to look at, then.
Is there anything restricting a retailer, such as Home Depot, from selling the compression unit for a fill-up right now?
9:50 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
Again, it is because of the standards and regulations, because they're not approved in Canada yet. That's the difference, in terms of compliance, between Canada and the U.S.
9:50 a.m.
Conservative
9:50 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
They are federal.
9:50 a.m.
President and Chief Executive Officer, Canadian Propane Association
They set those standards under the Canadian Standards Association. It is the same with propane vehicles they bring into Canada. Jurisdiction over the adoption of those regulations is different not only federally but provincially as well. It's a bit of a mishmash of standards across Canada.
9:50 a.m.
Conservative
Pierre Poilievre Conservative Nepean—Carleton, ON
Thank you for that. I think what I need from both of you is a specific list of regulations you would like to see changed. We will then bring the departmental officials before this committee and ask them to comment on those proposed changes and raise any potential objections they may have. They can consider your proposals against their commentary and potentially recommend action.
Our hope is to make this report extremely specific and straightforward to implement. If you can put together a table listing everything you want changed, right down to the sections and lines, it would help us very much in making proposals in our report that will go to the minister.
The chair raised the issue of the differential between a fuelling station price for natural gas and a home heating rate. What could we do to eliminate that differential? Is there something in the regulations, for example, that makes that differential exist?
9:55 a.m.
President and Chief Executive Officer, Canadian Propane Association
Propane is not a regulated utility, by and large, so the market dictates the price of the propane.
9:55 a.m.
Conservative
9:55 a.m.
Vice-President, Natural Gas Policy Development, Encana Corporation
I think that would be something to take a look at. Again, in each province utilities for the consumer are orchestrated a little differently from the way they are for a station. I think you'd have to take a look at that. We'd certainly have to take a look at that.
9:55 a.m.
Conservative
Pierre Poilievre Conservative Nepean—Carleton, ON
I know you don't provide retail home heating fuel. You are a wholesaler. Would there be any reason an Enbridge or any other company that provides retail-level home heating fuel would need to differentiate between the home-filled vehicle price and the home heating rate?