Gary Lunn

[Questions on the Order Paper, September 18th, 2006]

With respect to the $11.9 million contribution allocated to the Integrated Grain Processor's Co-operative, IGPC, project in July 2005 under the ethanol expansion program, in response to

(a), a short term extension of climate change programs including the ethanol expansion program has now been approved. This will serve as an interim measure until the government's new policy directions have been finalized. The Government of Canada is providing substantial resources, close to $380 million this year, which is comparable to spending last year. Programs, including the ethanol expansion program, belonging to four groups--mitigation, international, policy, and public education and outreach--will have their program authority extended by one year until March 31, 2007.

In response to (b), Natural Resources Canada is now working with the IGPC towards the finalization of a contribution agreement for the allocated funding. Upon successful completion of this agreement, the funding will be released to the IGPC as the project incurs eligible costs in accordance with program terms and conditions.

In response to (c), no funds have been released to IGPC to date.

[Questions on the Order Paper, September 18th, 2006]

In response to (a), the government is pursuing new directions in the area of climate change policy through the development of a made in Canada plan that is focused on ensuring future generations enjoy clean air, clean water, clean land, and clean energy here in Canada.

The government recognizes the important contributions that renewable energy sources, such as wind, can provide to a diversified energy supply mix for Canada. We recognize the role that the wind power production incentive, WPPI, has played in leveraging provincial and industry support for wind energy.

The 2006 federal budget committed $2 billion over the next five years to the environment, energy efficiency and clean energy technologies. This funding will be allocated to measures that are effective in achieving real results for Canada. Some of the measures funded may be those previously supported; others will be new. Decisions will be made as part of the made in Canada plan.

In response to (b), government support for wind energy development consists of a variety of measures including investment tax credits, support for innovative research, technology development and demonstration. Below are some of the initiatives supported by the Government of Canada related to wind energy.

Under class 43.1 of the federal Income Tax Act, energy investors have access to an accelerated capital cost allowance, CCA, rate of 30% on a declining basis to encourage investments in certain equipment used to either produce heat for an industrial process or to generate electricity. The equipment must use a designated renewable energy source, such as wind, or burn fossil fuel efficiently. The new class 43.2 will provide a 50% CCA writeoff for certain high efficiency co-generation equipment and the full range of renewable energy generation equipment currently included in class 43.1, such as wind generators. This increased rate will apply to equipment purchased between February 23, 2005 and December 31, 2012.

Another tax measure provinding support for wind energy development is the Canadian renewable and conservation expense, CRCE, category, which allows certain wind exploration expenses to be deducted immediately or transferred to investors using flow through shares. Natural Resources Canada provides technical advice to investors and developers on the applicability of class 43.1, class 43.2 and CRCE on eligible energy projects.

Natural Resources Canada, through its renewable energy technology group, RET, part of the CANMET Energy Technology Centre, CETC, provides support to the Canadian renewable energy industry in its research and development efforts to develop and deploy renewable energy technologies, such as wind, biomass and micro-hydro. The RET helps industry to generate competitive and environmentally responsible alternatives to conventional energy generation through cost sharing and technical assistance in support of technology development and field trials. Examples of this work include the Canadian wind energy atlas, the development of Canadian wind turbine standards, and research into cold climate operation of wind turbines.

The government, in partnership with the Government of Prince Edward Island, P.E.I., provides funding for the Wind Energy Institute of Canada, WEICan, located at the Atlantic Wind Test Site in P.E.I.. WEICan supports the development of wind power generation in Canada and wind energy related products and services for Canadian and export markets. The institute's activities are focused on four key areas of work: testing and certification; research and innovation; industry training and public education; and technical consultation and assistance.

[Questions on the Order Paper, June 21st, 2006]

Mr. Speaker, the answer is as follows: a) The working group’s members are representatives from federal departments and agencies, including laboratories and regional development organizations, whose mandates address ocean or ocean energy whether from an R&D, commercial, policy or environmental perspective.

Members are: Atlantic Canada Opportunity Agency, Environment Canada, Fisheries and Oceans, Industry Canada, Natural Resources Canada, National Research Council (Canadian Hydraulics Centre and Institute for Oceans Technology), Western Economic Diversification.

b) There are currently 38 members on the FOEWG.

c) FOEWG has met five times since its inception in April 2005.

d) FOEWG is chaired by Natural Resources Canada, Office of Energy R&D. There is no funding per se attached to the FOEWG; the Working Group relies on in kind value through the time and efforts of its members.

e) FOEWG’s mandate is to assess through information gathering, the potential contribution of Canadian and international ocean energy technology to the Canadian renewable energy supply; and help create a policy advisory body and technological framework for Canadian renewable energy from oceans.

f) FOEWG does not have an official relationship with similar provincial organizations such as the B.C. Alternative Energy & Power Task Force. FOEWG’s relationships with the provinces have been through meetings and discussions with governmental representatives such as with Nova Scotia’s Departments of Natural Resources and Energy, New Brunswick’s Department of Energy, and British Columbia’s Ministry of Energy, Mines and Petroleum Resources. This last April, FOEWG organized a meeting between its members and representatives from Nova Scotia and New Brunswick to discuss potential collaboration on ocean energy projects; and to present the federal capabilities and interests in ocean energy, whether from a technical perspective or a regulatory and environmental one. FOEWG is planning a similar endeavour with British Columbia in the near future.

g) FOEWG is only comprised of federal representatives. However, FOEWG anticipates that through the above mentioned and forthcoming collaborative work, federal/provincial sub groups will be formed.

h) As mentioned above, FOEWG is not a funding program but has been instrumental in securing $250K for two studies in 2005 06 from the Technology and Innovation R&D funds: the first year of a three year resource assessment (last two years un funded as of yet), which would lead to an interactive web based ocean energy atlas similar to the Wind Atlas; and a multidimensional study that includes a technology review, a supply chain analysis and an environmental scan of both the regulatory framework for ocean energy projects and their environmental impacts.

i) FOEWG’ long term priorities and goals are to:

--Foster technological development and develop Canadian capacity

--Coordinate federal S&T efforts and interests in ocean energy

--Develop synergies and partnerships between federal departments and agencies, and with provincial governments

--Ensure that projects and initiatives are complementary to avoid duplications or overlaps

--Increase communication across departments and agencies, and serve as a tool to inform upper management of federal ocean energy activities.

[Natural Resources, June 19th, 2006]

Mr. Speaker, that may have been what happened in the 13 years of the old Liberal government.

I have been up there. I have visited these projects. The work they are doing in the environment department on the reclamation of their lands, on the replanting of their forests has been very successful. On the recovery of water, they are going through extensive science and have been very successful at recovering almost 100% of the water, recycling it, re-purifying it and putting it back through the systems. There are a lot of resources being put on that, as well as on the scientific community. Natural Resources Canada is working with the industry to find solutions that work for Albertans and for all of Canada.

[Natural Resources, June 19th, 2006]

Mr. Speaker, we are looking at that specific report. We are actually looking at areas where we do need to respond. Officials at our department are looking at it. Incredible strains are being put on the systems from the increased expansion and our demand on energy.

As we face those challenges we are doing the research. For example, the amount of water that is used in the recovery of the oil sands is very high and we are looking at ways of reducing that. We are working together with our scientists to find solutions.

[EnerGuide Program, June 19th, 2006]

Mr. Speaker, I would remind the hon. member that of some 120 programs, 95 are still currently in place. It should be no surprise to the hon. member that their programs did not work. If their programs worked, why are greenhouse gases 35% above Liberal targets? That is not a record that I would be proud of.

[EnerGuide Program, June 19th, 2006]

Mr. Speaker, as I have explained many times in the House before, only 50¢ of every $1 in that program went into doing anything for the environment. Those are the facts. Those programs were introduced by previous Liberal governments.

It should be no surprise to Canadians that there were a number of programs introduced by the previous Liberal government that just did not deliver. The Liberal record on greenhouse gas reductions was an unmitigated disaster. This government will not follow the Liberal government's record.

[Natural Resources, June 14th, 2006]

Mr. Speaker, only a Liberal could believe that imposing punishing taxes on clean, renewable energy is good public policy. Ninety-five per cent of Quebec's power generation is hydroelectric, which emits virtually no greenhouse gases. Quebec's hydro industry employs over 20,000 workers and last year alone contributed over $2 billion to the Quebec economy.

It is beyond ridiculous. I guess only the Liberal Party could think that the path to energy is paved with regressive taxation and robbing Quebeckers of their hard-earned tax dollars. How could anybody do something so ridiculous, wanting to tax clean, renewable energy?

[The Environment, June 12th, 2006]

Mr. Speaker, I understand that the member for Etobicoke--Lakeshore is now suggesting a carbon tax on Canadians. Not only does the old Liberal Party want to spend billions of dollars buying hot air credits in Russia, to add insult to injury, it wants to impose a new carbon tax on Canadians to pay for Russia's hot air.

The last time the Liberals introduced a national energy policy it was an unmitigated disaster.

This government will work with every Canadian and stakeholder to ensure that we get achievable results. We will not look for disaster solutions like the old Liberal tired governments.

[Natural Resources, June 8th, 2006]

Mr. Speaker, if the member opposite wants to talk about the programs that were working for the Liberal Party, I do not know if he is talking about the sponsorship program or what he is referring to, the facts speak for themselves.

Greenhouse gases under the old Liberal government, the very old Liberal government, went up each and every single year it was in office for 13 years. We have done more in six months than that old government did in 13 years.

I want to remind the hon. member, on renewable fuels, that the Minister of Agriculture and Agri-Food, the Minister of the Environment, and I met with every provincial counterpart, and we are moving forward to bringing real results to every single Canadian.