Mr. Speaker, it is my pleasure to address the House regarding the third reading of Bill S-3, a bill proposing to amend Canada's Energy Efficiency Act. The bill was discussed at second reading, went to committee and was dealt with very quickly there. We had agreement that the bill should go ahead. It came back here, and today we are debating it at third reading.
The purpose of the bill is fairly straightforward, and that is to eliminate the least efficient energy-using products from Canada's marketplace. Eliminating them will substantially help in reducing greenhouse gases and other atmospheric emissions.
This is not a long bill. It only has a few clauses. I want to summarize what the bill contains. We think it is important that Canadians understand what is in the bill because it is a significant bill. It has five main clauses.
The bill clarifies the classes of energy-producing products that may be established based on their common energy-consuming characteristics. Some of this was done in the past, but this will bring more clarity and will allow the government to move quickly in order to regulate some of these products that are not energy efficient.
The bill requires that interprovincial shipments of energy-using products meet the requirements of the act.It requires dealers to provide the Minister of Natural Resources with the prescribed information regarding the shipment or the importation of energy-using products. It provides for the authority to prescribe as energy-using products manufactured products or classes of manufactured products that affect or control energy consumption. It broadens both the scope of labelling provisions and the scope of the minister's report.
In short, that is what the bill does. The bill is only four pages long, but it is a significant bill.
The amendments will pave the way for energy efficiency regulations that will cover more products in this country more effectively. This will help Canadians save money by reducing household energy use and lowering home energy bills which every Canadian wants to do.
Energy efficiency is a central aspect of our government's plan to reduce greenhouse gases and air pollution. It is also central to our economic action plan.
Improving energy efficiency is one of the easiest, most cost-effective ways to control energy costs for consumers and businesses alike. Because doing so is good for the environment and for the economy, energy efficiency has become an important part of the Government of Canada's approach to tackling climate change.
Becoming more efficient energy users will also help Canada and Canadian families save money during these difficult times.
Improving energy efficiency has immediate benefits. Whether it is installing a programmable thermostat at home, a high-efficiency copier at the office or a more efficient electric motor at the plant, we begin saving energy. We start spending less money and indeed, we put out fewer emissions. The benefits start right away and they continue to grow, almost like compound interest, month by month and year after year.
As energy prices fluctuate, energy efficiency helps cushion those ups and downs and makes budgeting for energy easier for both families and businesses. With the long-term trend for energy prices likely to be higher, the savings in dollars would continue to get bigger.
I would like to give a little bit of history. Canada's Energy Efficiency Act came into force in 1992. It gave the Government of Canada the authority to make and enforce standards for the performance of energy-using products of two kinds: products imported to Canada and products manufactured in Canada which were shipped across provincial or territorial borders.
The act at that time also gave the federal government the authority to set labelling requirements for these products. This way, consumers then could compare energy efficiency of various models of the same product.
The first set of regulations flowing from the act came into effect in 1995. These regulations applied to a variety of products, primarily major appliances, things such as dishwashers, water heaters, refrigerators, freezers, clothes washers and dryers.
Since that time, the regulations pertaining to the act have been amended 10 times to reflect changing circumstances or to add more products to the standards list and to increase the stringency of the existing standards. We believe there is more that can be done.
Since that time, Canada has adopted some demanding environmental goals. We have committed ourselves to achieving an absolute reduction of 20% in greenhouse emissions by 2020 and 60% by 2050. This includes mandatory limits on emissions from large industry, but we must also substantially reduce emissions on other fronts as well. That is what Bill S-3 aims to achieve.
Regulations made under the revised act will expand the list of covered products and will tighten the standards for some of the products which are already regulated.
The proposed amendments will also make the act more efficient. For example, it will be possible to apply standards to whole classes of products instead of multitudes of individual products. This will be especially important in our attempts to reduce standby power consumption. I would like to talk about that.
Standby power is the electricity that is consumed by many products in our homes when they are turned off. I am speaking here of products such as TVs, computers, CD players, microwave ovens and battery chargers. As many as 25 or even more of these devices can be found in the typical Canadian home. Consequently, most Canadians do not realize that standby power can account for as much as 10% of an average household's annual electricity costs. Ten per cent of the bill is tied to this hidden use of power.
The question is, what if all of these products consumed a minimal amount of power in standby mode?
The Office of Energy Efficiency at Natural Resources Canada estimates that a typical household could cut its electricity cost by at least $35 a year just by making those changes. Across the country, enough electricity could be saved in order to power more than 300,000 homes.
The amendments proposed in Bill S-3 will also allow us to make improvements to the well-known EnerGuide label. It will be even easier for consumers to compare the energy performance of different models of the same product.
Energy efficiency also helps to create and secure jobs. That is another important consideration during the current economic downturn. As soon as we decide to improve the insulation in our homes or to install energy-efficient windows and doors, we are creating and protecting the jobs of the thousands of Canadians who do that work and who manufacture those products.
I would like to bring up something else here, and that is the home renovation tax credit. It does not have anything directly to do with Bill S-3, but it is certainly an extremely popular change that this government has introduced in its budget.
The home renovation tax credit is a non-refundable tax credit that is going to be given for work performed or goods acquired in respect of improvements made to an eligible dwelling. Eligible dwellings are basically the houses that we use and that we live in personally. The credit is going to be based on eligible expenditures for work performed or for goods acquired after January 27, 2009 and before February 1, 2010. The work has to be done and the goods have to be acquired this year. That is obviously going to be important in this economy and the times in which we are living.
It seems that people have really taken to this across the country. People are aware of it. They seem to be more and more interested in doing renovations to their homes in order to access this credit.
The credit is only going to be available for the 2009 tax year. It applies to expenditures of more than $1,000. People have to spend more than $1,000 if they want to claim the tax credit. They can spend up to $9,000. If they spend $9,000, they will get a tax credit of $1,350. It is a significant tax credit. Certainly from what I and my colleagues are hearing across the country, this is going to be a very popular measure in terms of making changes that are going to allow people to save energy and to make those renovations that will make their houses more energy efficient.
As well, Canadians will be able to take advantage of another aspect of our economic action plan. We have just allocated another $300 million to eco-energy retrofit homes for the next two years, and increased all grants by 25%. That increase will further stimulate economic activity for the construction and service industries.
When all of these things are put together, we have quite a package in terms of encouraging people to improve their energy use and energy efficiency.
This will include energy auditors and engineers who assess energy use, providing information needed to make the best choices for making homes and buildings more efficient.
Just as important, the economic activity we generate when we invest in energy efficiency stays right here in Canada. It stays right in our communities supporting local contractors and tradespeople.
Finally, the amendments proposed in Bill S-3 will have a bearing on Canada's competiveness because obviously, a more energy efficient Canada is a more competitive and a more prosperous country. Better energy efficiency means lower energy costs for both business and industry. That means the products that we make in this country and that we sell can be priced more competitively in the global market.
That is important to our future prosperity because other countries are also making some of these same investments in energy efficiency.
That is why energy efficiency has become a central part of our government's long-term economic plan. This is really seen as a strategic investment.
It is also important to consider the energy performance of the goods we produce. If made in Canada electric motors or windows are the most energy efficient, they will be much more attractive to our international customers.
In conclusion, there are numerous and significant advantages to be gained by the amendments proposed in Bill S-3. We would encourage members of the House to pass this bill as quickly as possible.
