Good morning, Speaker. I really appreciate the opportunity to speak to Bill 165, Keeping Energy Costs Down Act, 2024, because this is a significant matter. It’s one that touches the lives and livelihoods of hard-working families, farmers and business owners all across Ontario.

The landscape of energy consumption is changing. Our government understands the importance of developing infrastructure that addresses Ontario’s expanding energy requirements, fosters innovation and drives economic progress, while remaining affordable and keeping Ontario competitive. High interest rates, skilled trades shortages, lack of supply and increased demand in housing have increased building costs and increased housing prices.

Our government is focused on working to make life more affordable for everyone. We’re delivering solutions that will help power the province’s growing economy. As Ontario’s population continues to grow, the proposed Keeping Energy Costs Down Act, 2024, would ensure that the province can build new homes, and people from across the province can continue to access reliable, cost-effective energy, where and when it’s needed.

My riding of Chatham-Kent–Leamington spans from the beautiful town of Leamington, my hometown, to Pelee Island and across the southern half of Chatham-Kent, along the shores of Lake Erie, through Wheatley, Blenheim, Ridgetown and Highgate. I’m proud to share that my riding hosts 3,800 acres of controlled-environment agriculture, the largest concentration of greenhouse agriculture in Canada. These farms produce fresh, safe, locally grown fruits and vegetables with exceptional quality and yield, while conserving water, recycling nutrients and implementing cutting-edge technology solutions right here in Ontario.

I have personally witnessed a technological revolution in sustainability, innovation and entrepreneurship on our farms, in our orchards and in our high-tech greenhouses. To maintain our momentum as global leaders, our government is taking decisive action to keep energy costs down and empower our farmers to reinvest in their operations while remaining competitive. Lower energy costs help keep family farms viable to reinvest in their operations, remain profitable and respond quickly to changing consumer preferences, all while enhancing long-term resilience.

By prioritizing policies that keep energy costs down, we’re strengthening our Grow Ontario Strategy and empowering our entire agricultural sector and Ontario’s farming families to continue to grow fresh food for families in Ontario, Canada and the world. By supporting safe, reliable, affordable energy to grow our own food, we can maintain food sovereignty while nurturing the technological industries and innovation that support it, right here in Ontario.

The latest report from Ontario’s Electrification and Energy Transition Panel highlights that natural gas plays a crucial role in Ontario’s energy landscape, serving three vital functions: powering electrical generation, providing home and water heating and supporting various industrial and agricultural sectors.

Our government knows that this bill is a step in the right direction to preserve consumer energy choices by ensuring that natural gas remains viable, safe and affordable for all consumers. Bill 165 is a pivotal piece of legislation that supports safe, affordable, reliable options for farm operations like grain drying, which contributes to broader agricultural stability and security. By prioritizing measures to minimize energy costs and promote affordability, this act ensures that grain farmers all across Ontario have access to cost-effective energy solutions, including natural gas, for their critical drying operations.

This is essential for farmers across the province, especially during harvest season, to ensure these precious crops can be safely stored, make it to processors and make it to our markets. By using natural gas, grain farmers can effectively manage moisture levels in a wide variety of harvested grains. That prevents spoilage and ensures the highest quality of production that Ontario is known for.

As global leaders in fresh food production, Ontario greenhouse growers rely on safe, affordable natural gas, which is essential during our cooler months while enabling us to grow crops year-round. This, in turn, enhances exports, increases prosperity and strengthens food sovereignty. This is growing Ontario.

Greenhouses, of course, require precise temperature and humidity controls for optimal plant growth, and this is exactly what natural gas can deliver: safe, consistent and reliable power. By using natural gas, greenhouse farmers can maintain ideal growing conditions for a variety of crops with higher yields and world-renowned quality year-round.

The Keeping Energy Costs Down Act would, if passed, also provide an ability to reverse the Ontario Energy Board’s split decision which would have required any new home buyer, farm or business to pay 100% of the cost of a natural gas connection up front—very, very difficult. Reversing this decision would save at least $4,400 on the price of every new home for my family, for our constituents and for your families.

Through the Keeping Energy Costs Down Act, our government is dedicated to promoting fair and inclusive decision-making processes within the Ontario Energy Board. This ensures affordability for everyone. The legislation, if passed, will mandate the OEB to engage specific stakeholders or economic sectors, ensuring voices from diverse backgrounds are hard, particularly those who could be affected by forthcoming decisions. By prioritizing inclusivity and transparency, we’re taking meaningful steps toward building a more equitable and sustainable landscape in energy for everyone.

Speaker, I’m going to share some local and highly credible voices who are supporting this act, if I have time.

First, Mr. George Gilvesy, chairman of the board of directors of Ontario Greenhouse Vegetable Growers: “Natural gas is an essential crop input, as heat and carbon dioxide are captured to optimize and enhance greenhouse vegetable production.” That’s right here in Ontario. “Legislation such as this will continue to drive investment in Ontario’s agricultural sector, growing food, jobs and economic prosperity.”

Similarly, the president of the Ontario Federation of Agriculture, Drew Spoelstra, stated, “The Ontario Federation of Agriculture is supportive of the decision taken by the Minister of Energy to address the Ontario Energy Board’s decision, which threatens to increase costs for new homes relying on natural gas for heating, jeopardizes housing affordability and future access to this energy”—

My question is for the Minister of Energy. It has been a month and a half since the federal Liberal government increased the carbon tax by a whopping 23%. Everything seems to be getting more expensive. Food, gas and energy prices are all on the rise, while paycheques are failing to keep pace. Life is getting harder and harder with this punitive Liberal carbon tax.

The Liberal members in this House, instead of asking their federal counterparts to cut the carbon tax, are doubling down in support of this tax, which is hurting Ontario families and businesses.

Can the minister please explain how the carbon tax continues to hurt every single person living in this province?

It’s simply unacceptable that the federal Liberals are pricing Ontarians out of grocery stores, out of their homes and into situations where they have to choose between eating and heating. Families are struggling now more than ever, and they need our help.

Let’s ensure we do this right. It’s time for the Liberals to stop this vicious carbon tax and give real financial relief to the people of Ontario.

Can the minister please tell the House what our government is doing to ensure Ontario has a clean, reliable and emission-free energy system without taking a step backwards and imposing a carbon tax on the people of Ontario?

This bill essentially is the government weighing in and overturning the ruling of an independent regulator. So this government kneecapped a regulator, and it really reduces the transparency, accountability. It also raises the concern that important energy decision-making is being done via backroom lobbying. It furthers the practice of this government of not being transparent and open and not doing the people’s business in this House.

I see a direct connection to you discharging Lydia’s Law directly to committee and overturning the independent regulator’s decision.

Can you speak to me about Lydia’s Law and how this connects to your government’s overturning of decisions that are made by regulatory bodies in this province?

You mentioned that the OEB decision didn’t include stakeholders. In fact, there are 134 pages of that report, and many, many stakeholders were consulted—just like Lydia’s Law, where End Violence Against Women Renfrew County spoke during the Renfrew inquest; the Centre for Research and Education on Violence Against Women and Children spoke; Women’s Legal Education and Action Fund, LEAF, spoke; the Sexual Assault Support Centre Waterloo Region brought their information to this important private member’s bill, on behalf of the MPP for Waterloo, Catherine Fife.

My question is, just like this government ignored the recommendations from your own regulator—keeping in mind that Enbridge is a regulated monopoly—just like you ignored decisions that you don’t like, why are you ignoring the Auditor General’s recommendations when it comes to Lydia’s Law and keeping sexual assault survivors safe in this province?

I sit on committee; you’re absolutely right. Every single time, your government uses their supermajority to squash anything that they don’t like.

With regard to this bill right now, we moved about 12 amendments, and your government voted every single one of them down. I have been in committee when you’ve moved into in camera for no reason; been in committee when you were reversing your greenbelt legislation, and you didn’t even let the people come to debate that.

If I can take the member at his word that he will use the power of his government to bring Lydia’s Law to the committee and that you will hold public and open hearings across the province—can I have your word on that?

I want to thank the member for Chatham-Kent–Leamington for his speech. I know his community is home to—it was formerly Union Gas, then Enbridge. So, back 10 years ago, plus or minus, under the Green Energy Act, we saw these proposals to be rid of natural gas in the province of Ontario, which would have had a devastating impact on Chatham-Kent.

What I’m hearing today from some of the arguments is that the opposition seems to be saying they want to force Ontarians to move away from natural gas entirely. Can the member speak to whether that’s a smart approach for his community and across Ontario for Ontario’s energy system, and the impacts that this sort of ideological approach might have on your community?

I actually want to dedicate my question to the Minister of Energy and my respect for him. Quite often, I have been impressed by him in the last six years; usually, it’s for his quick wit. But on this issue, I have never seen him move so fast—faster than the electricity in the wires—because when the OEB came out and said, “Make the shareholders, make Enbridge pay out of the profit margins,” he said, “No. Make the consumers pay.”

My question for our member is, who did it faster—Usain Bolt running 100 metres or this minister standing up for Enbridge in the media?

I’m honoured to rise today to speak to Bill 165—the “keeping costs down for Enbridge act,” I think is what it should be called, and “making the people of Ontario pay the bill for Enbridge’s operations act.” It’s outrageous, frankly, for the government to take the unprecedented step, for the first time in Ontario’s history, to intervene in the independent decision of the Ontario Energy Board, the regulator designed to protect the people of Ontario. It’s outrageous for the government to intervene in that way in order to continue to subsidize Enbridge, a giant multinational corporation, to expand fossil fuel infrastructure in this province, especially at a time when we’re facing a climate emergency.

Canada is on fire yet again. The toxic smoke from western Canada is blowing into Ontario as we speak, leading to more toxic air that we breathe.

The international energy association, an incredibly conservative organization, has made it absolutely clear that if we’re going to meet our climate obligations, we can’t continue to expand fossil fuel infrastructure.

The OEB, a very conservative organization, finally made a decision that actually takes into account the climate crisis and, quite frankly, what’s good for energy consumers in this province, and in less than 24 hours, the government asked to overturn it. We now know from the FOI request around the emails around this decision that even the government’s own lawyers were worried about the government taking this action, but the government said “No, no, no. We’re not going to listen to the lawyers. We’re not going to listen to the independent regulator. We’re going to listen to Enbridge and their $19-million CEO and actually put Ontarians on the hook for the stranded assets associated with ruling out fossil gas infrastructure.” And do you know what makes it more galling? If there was no alternative for people, then you might say the government has an argument here. But people can have heat pumps. The OEB decision, backed up by mounds of evidence, shows it will actually be 13% cheaper for people to install a heat pump rather than fossil gas infrastructure.

So we have to ask, who is the government acting for? Is it the people of Ontario or Enbridge Gas? It’s clearly Enbridge Gas.

An analysis independently done by Brandon Schaufele from the Ivey school describes it as this: Effectively, the OEB decision “shifts the upfront gas connection cost onto home developers in a manner similar to development charges for water and sewer connections,” other forms of infrastructure. “Unlike water and sewer, however, developers could decide to skip a natural gas connection altogether,” and install heat pumps, which would actually save people money.

“The government’s decision explicitly undermines the OEB and threatens credibility of” the independent regulator and “energy investment in the province.”

It’s a bad outcome for customers, but it’s a good outcome for Enbridge. So why is the government doing this when we’re in the midst of a climate crisis?

We know that investors around the world are pouring not billions, but trillions of dollars into the green energy transition. As a matter of fact, last year alone, $1.88 trillion went into the green energy transition—half of it into wind and solar, because they’re now the lowest-cost sources of electricity generation, but a big and growing chunk of it into heat pumps. Do you know why? Because heat pumps save people money and reduce climate pollution at the same time. That’s exactly why, over the last two years in the US, more new home developments have installed heat pumps over fossil gas. It’s better for the climate and cheaper for the people.

In Europe, right now, a 40% year-over-year increase in heat pump sales—do you know why heat pumps are growing so fast in Europe? They’re cheaper for people, good for people, good for the economy, good for creating jobs manufacturing heat pumps—not so good for giant corporations like Enbridge.

So which side of the ledger is the government on? I want to know.

What is especially infuriating about this is, not only are they ramping up fossil-gas infrastructure, which is going to increase climate pollution; they’re doing it at a time when Ontario has the worst performance in climate pollution now. The data released just 10 days or so ago shows that the province with the largest increase in climate pollution in the entire country in 2021-22 is the province of Ontario. As a matter of fact, 60% of the increase in climate pollution in Canada during that period comes from the province of Ontario.

This government not only wants to expand fossil-gas infrastructure for buildings, but they want to ramp up gas plants, which is going to increase climate pollution from the electricity sector by 580%.

I’ve heard the members opposite say what a clean grid we had. Yes, it was 96% clean when they took office. Now it’s 87% clean and going down, because they’re going to increase climate pollution by 580% for the rest of this decade, at a time when we’re all paying the price for the climate crisis.

Last year, in Ontario, one million acres burned. We had toxic air pollution all down the eastern seaboard. As a matter of fact, in just four days, from June 4 to June 8, in the province of Ontario, the health care system paid an additional $1.28 billion due to hospital admissions from toxic air exposure.

We know from the Financial Accountability Officer that the cost to infrastructure in the province of Ontario alone—just public infrastructure, just this decade, the next six years—is going to be $26.2 billion.

According to the Insurance Bureau of Canada, the damage to insured assets last year due to the climate crisis was $3.1 billion. They estimate that the cost of uninsured assets is three times that, almost $10 billion, costing everybody in this country an additional $750.

The cost of the climate crisis is only going up. We’re all paying for it.

We have solutions that will save us money, like heat pumps. We have solutions that will create jobs—by installing things like heat pumps. And we have the opportunity to actually move in that direction. We have an incredibly conservative energy regulator actually saying, “Do you know what? We should maybe start thinking about this. If we’re going to do a 40-year amortization period starting in 2025, that takes us to 2065, 15 years after the country’s commitment to be net-zero, so why would we make a decision like that, leaving the stranded assets on the backs of energy consumers in this province?” It will be the people of Ontario who will pay for it. That’s exactly what the OEB decision said.

When we have a truly competitive market, people would make a financial decision and say, “We’re not going to take on that risk.” But Enbridge doesn’t have to make that decision because they’re a regulated monopoly, and the regulator said, “Do you know what, Enbridge? We’re going to make you decide to take that risk by removing the 40-year amortization period, because the people of Ontario should not bear the risk of your business decisions, especially when there are cheaper, cleaner, better alternatives.”

Mr. Speaker, I’m pleased to rise and speak in strong support of Bill 165, the Keeping Energy Costs Down Act, 2024. This legislation is a critical step forward in our ongoing efforts to ensure that energy remains affordable, reliable and accessible for all Ontarians, while also supporting our housing and economic growth.

Since day one, our government has been dedicated to making life more affordable for the people of Ontario. We have introduced policies that have cut costs, such as scrapping the cap-and-trade carbon tax, cutting the gas tax, and implementing the Ontario Electricity Rebate. These measures have saved families and businesses significant amounts of money.

The Keeping Energy Costs Down Act is another crucial piece of our comprehensive strategy to keep costs low and support the needs of our growing province.

Let me start by addressing a critical issue this bill tackles: the recent decision by the Ontario Energy Board to require new customers to pay 100% of natural gas connection costs up front. This decision, if left unchallenged, would add approximately $4,400 to the price of new homes, and tens of thousands of dollars for homes in rural Ontario. This is unacceptable.

Bill 165 gives the province the authority to reverse this decision, restoring the previous arrangement where these costs were spread over 40 years. This change will help prevent unnecessary financial burdens on new home buyers and ensure that we continue building homes across Ontario without delay. It will protect the dream of home ownership, especially for those in rural areas, and keep our housing market moving forward.

Natural gas is not only essential for heating our homes, but also for powering our economy. By restoring the natural-gas-connection-cost rules, we are ensuring that businesses—particularly small businesses and farms—do not face prohibitive upfront costs. This is vital for economic growth not just in my riding of Carleton, which has numerous small businesses and family-owned farms, but also for maintaining Ontario’s competitiveness.

The proposed legislation also preserves the existing treatment of gas transmission projects. This means new customers will not have to incur upfront contributions, ensuring that these critical infrastructure projects can proceed without financial barriers. This is especially important for sectors like agriculture and manufacturing, which rely on affordable and reliable energy.

I have to look no further than my own riding of Carleton, where one such natural gas expansion helped bring natural gas, which was desperately needed, to the community of York’s Corners in the eastern part of my riding, bringing natural gas to homes as well as Stanley’s Olde Maple Lane Farm, a staple of the Ottawa agriculture industry—finally, after years of requesting it.

Again, this expansion is especially important for sectors like agriculture and manufacturing, which rely on affordable and reliable energy.

Another significant aspect of Bill 165 is the emphasis on public engagement. The OEB’s recent decisions highlighted a lack of adequate consultation with affected sectors. This bill mandates broader engagement, ensuring that future decisions by the OEB reflect the priorities of all Ontarians. The legislation empowers the government to direct the OEB to conduct separate hearings on any matter of public interest. This ensures that decisions are made with comprehensive input and are aligned with the public’s needs and government policy priorities. By involving more stakeholders, we can ensure that the energy policies we implement are fair, informed and beneficial for everyone.

Now let’s focus specifically on how this bill will improve life in rural Ontario. Rural communities, such as those in my riding of Carleton—including North Gower, Richmond, Metcalfe, Ashton and more—are the backbone of our province, contributing significantly to our economy through agriculture, manufacturing and other vital industries. However, these communities often face unique challenges when it comes to energy access and affordability.

In rural areas, new home construction often requires more extensive infrastructure for natural gas connections, leading to higher upfront costs. The OEB’s decision would have added tens of thousands of dollars to the cost of new homes in these areas. By reversing this decision, Bill 165 ensures that these costs are spread over 40 years, just like a mortgage. This will significantly lower the financial barriers to building new homes in rural Ontario, making home ownership more attainable for families, and supporting the growth and vitality of these communities.

Rural businesses, particularly small farms and local enterprises, are crucial to Ontario’s economy. The high upfront costs for natural gas connections could deter new businesses from setting up in rural areas and hinder the expansion of existing ones. By restoring the previous cost structure, this bill will encourage more investment in rural Ontario, fostering economic development and job creation.

In rural areas, natural gas is often the most reliable and affordable heating option. The OEB’s decision threatened to limit this choice by making natural gas connections prohibitively expensive. Bill 165 ensures that rural residents can continue to choose natural gas, preserving their ability to access reliable and cost-effective heating.

This bill also maintains the existing treatment of gas transmission projects, ensuring that new customers do not have to pay upfront contributions. This is especially beneficial for rural areas, where the infrastructure costs can be significantly higher. By alleviating these financial burdens, we are making it easier to expand and improve essential energy infrastructure in rural communities like those in my riding of Carleton and across the province.

Bill 165 also addresses concerns regarding the leave-to-construct process. Municipalities and agricultural organizations have raised valid concerns that the $2-million threshold for pipeline projects, set two decades ago, is outdated. Inflation and increased construction could mean that many projects now exceed this threshold, leading to unnecessary delays and regulatory burdens. This bill proposes to streamline the LTC process by allowing the government to prescribe conditions to exempt certain small projects from requiring LTC. This change will reduce delays and costs, helping to build housing and transit infrastructure faster. It will ensure that we can meet the needs of our growing population efficiently and effectively.

Let me illustrate the importance of this bill with a concrete example from rural Ottawa, in my riding of Carleton. The community of York’s Corners recently benefited from a natural gas expansion project completed by Enbridge Gas. This project brought much-needed natural gas infrastructure to the area, significantly improving the quality of life for residents.

Prior to this expansion, families in York’s Corners relied on more expensive and less efficient energy sources for heating. The introduction of natural gas has provided these households, as well as local business Stanley’s Olde Maple Lane Farm, with a more affordable and reliable heating option. This has not only reduced their energy bills but has also improved the overall comfort and quality of their homes. It’s also made the operation of Stanley’s Olde Maple Lane Farm more feasible and efficient.

The success of the York’s Corners project underscores the importance of making natural gas connections accessible and affordable across all rural communities in Ontario. By passing Bill 165, we can ensure that other rural areas will similarly benefit from natural gas expansions, fostering economic growth and improving the quality of life for residents.

In conclusion, Bill 165, the Keeping Energy Costs Down Act, is a comprehensive piece of legislation and I am proud to support it.

It’s always a pleasure, it truly is, to be able to speak in this House and today to talk about Bill 165, Keeping Energy Costs Down Act. This is a bill that the title doesn’t really reflect what the actual goal of the bill is.

We’ll go back a little bit. The Ontario Energy Board is an independent regulator that regulates natural gas prices. The people in my riding who have natural gas—I’m not going to sugar-coat this—like natural gas, because the price is predictable, because it’s regulated. Often in northern Ontario—and I have put bills forward that, actually, the price of gasoline should be regulated, because there’s often 20 cents’ difference between where I live and where it’s cheapest on my trip, which is usually north of Barrie. Then, when you get down here, it gets to almost northern Ontario price again, and that has nothing to do with transportation. That’s why we often say it should be regulated.

We hear this all the time: that while the government has taken 10 cents off the price of gas—they have foregone taxes, but in that legislation, they didn’t put anything that that 10 cents actually goes to consumers. So that 10 cents could have just as easily gone to the profit margin of the oil companies who control gas prices.

I actually enjoy talking to the Minister of Energy. Actually, it’s not that hard for me to be in the NDP caucus. It’s much easier than it sometimes would be being in a caucus where you introduce legislation and then rescind it, and then introduce legislation again and then rescind it, and then introduce it again and then rescind it.

Yes, we need reliable energy sources. We need a reliable grid. But I question, again, having a 40-year amortization on parts of the grid that might only be feasible for 10 years, and whether that’s good business for the people buying those homes.

It was brought up that in Europe, they’ve already transitioned. My family is from Holland. Even before gas went up, it was already illegal to hook up to natural gas, because they recognized it long before we did.

The question is, this bill doesn’t really address that. This bill just overrules the decision. That is the issue. That is the issue. I think we can all agree, and it’s not very often we all agree in this House—very rarely. I don’t think anyone would disagree that a 40-year horizon for natural gas installations for home heating makes sense. I don’t think anybody disagrees with that.

But I will let you know that we’re getting a lot less calls for natural gas right now than we were two, three years ago—a lot less calls because the price of natural gas has gone up and a lot of people are switching to heat pumps, and heat pumps aren’t the total answer in northern Ontario.

Let’s be clear. I’m not going to sugar-coat it, but we’re getting a lot less calls for natural gas now than we were two or three years ago, but a lot of those are for industrial or farm applications, and that’s a totally—