Such a pleasure to listen to a member of the NDP who actually understands that there is a need for natural gas, because not everyone over there—and I didn’t hear all your remarks; I apologize. But I did hear some of them. Sometimes I wonder how this member continues to exist in the NDP caucus, because he thinks a lot like us at times.

But seriously, we are going back and putting a natural gas policy statement in the window for the Ontario Energy Board, which should clearly understand our mandate, and that is to continue the type of growth and prosperity that our province is seeing. I think this member actually does understand that in order for us to continue to see the massive investments in our province, we have to have a reliable, stable, affordable grid, and that includes natural gas and nuclear. But I’ll let him expand on that, if he would.

I’d like to thank the leader of the Green Party for his always thoughtful commentary that he brings to the House. He does a great job. It was very enjoyable listening to his 10 minutes of comments. He cherry-picked a lot of interesting statistics that he threw out, and it’s a lot to unpack in a one-minute question.

He did touch on the fact that we do have very, very affordable and reliable natural gas home heating in our province. and it is rate-regulated. I think that’s really important.

The member talked about how people are moving en masse to heat pumps in Europe. Well, there’s a reason for that. It’s because the cost of natural gas across Europe has soared over the last number of years, far beyond the price of natural gas in our regulated province.

The question I have for the member opposite is, does he believe that the system operator, the IESO, is prepared to power all of those natural gas heaters—sorry, that would be coming off with heat pumps?

Does the leader of the Green Party believe in an orderly transition, or does he just believe in going all green and torpedoes be damned?

Thanks to the member from Hamilton for her comments earlier, in her 20-minute speech.

We are very fortunate; we have one of the cleanest grids in the entire world here in Ontario.

I know that the NDP critic for energy is opposed to natural gas. He would like to rip out all the natural gas today. He’s also opposed to nuclear, which provides almost 60% of our electricity, and that’s emissions-free, baseload power that we keep investing in in the province.

Our goal at the Ministry of Energy is to ensure that we have affordable, reliable and clean energy production—and reliable is a big, big, big part of it, because if the lights go out, then there’s going to be chaos in our province.

Don’t you think—and this is to the member opposite—that it would have made sense for the Ontario Energy Board to have heard from the IESO at the hearings that would decide whether or not the next one and a half million homes we’re going to build in our province would all move to electric?

We acted quickly. Why? Because reliability of our electricity system in our province is paramount, and ensuring that we’re keeping new homes as affordable as possible is paramount. When you look at the fact that the IESO, the Independent Electricity System Operator, wasn’t asked for their opinion on whether or not we had the electricity in the province to continue to power the one and a half million new homes that are going to be built, that’s a big, big problem. The IESO was not called to testify at the hearings. And the OEB ruled, themselves, that it was going to cost about $5,000 more per home.

What I’d really like to know from the member opposite is, if she’s against natural gas and she’s against nuclear, how is she going to power our province?

I hope that the member’s constituent will understand that nothing new is happening here. We’re reverting back to the way it was prior to December 2023, five months ago. The same process that was in place for 40 years is in place again until we can get a new decision from the Ontario Energy Board, after we set a natural gas policy statement for them to consider.

The one thing that is clear from the commissioner’s report is that they didn’t hear from the necessary stakeholders in this process. That’s why we had to step in. They didn’t consider the impact that it would have on our electricity grid and the ability to bring the electricity to keep people warm in the wintertime. That’s why we stepped in—and to ensure that people can get into the new home market.

Natural gas in the home heating sector keeps people warm.

Natural gas in the electricity sector makes sure that we can keep the lights on, our elevators running, our traffic lights running, and our manufacturing facilities operating, and we need it. It’s our insurance policy to keep the lights on in Ontario.

Madam Speaker, if you want an example of how the NDP simply don’t understand energy policy, exhibit A was the question that we just experienced from the member opposite.

This change in policy reverts back to the policy that was in place five months ago. This is a policy that is going to ensure that we can build homes in Ontario at a lower cost for the people of Ontario. That’s why we brought forward Bill 165—to ensure that the people who wanted to get a home in our province wouldn’t have to pay more to do so.

And if they had bothered to read the commissioner’s opinion, it says right in there that it will drive up the cost of building new homes in our province.

The NDP are ideological. They listen to folks like Environmental Defence. They’re not listening to the folks who are building homes or those who are buying them.

Our government has done a lot to reduce the cost of living in Ontario. While the feds have implemented this punitive carbon tax on the people of Canada, we have reduced the price of living in Ontario, reducing red tape—the Minister of Economic Development talks about it all the time—by $8 billion, the cost of doing business in Ontario. For those who drive, the gas tax—10.7 cents a litre. Eliminating that very, very costly Drive Clean program—you will remember what a scam that was. We ended that. The member is from the Durham region. We eliminated the tolls in the Durham region. There are folks in Durham and across Ontario who take transit—implementing One Fare, which is going to save the people of Ontario $1,600 a year. At every step, we’re considering the people of Ontario and their ability to pay. That’s the difference between our PC government, under the leadership of Premier Ford, and Justin Trudeau and the federal Liberals.

Under the previous Liberal government—I know the member will remember this—they referred to the north as “no man’s land.”

We believe that northern Ontario is a land of opportunity for forestry, for mining—ensuring that we get clean electricity to these jurisdictions.

Absolutely, we’re working with those who are investing in our biomass sector in places like Atikokan and Hearst; the Calstock facilities; Kapuskasing; also, in Thunder Bay, at the former Resolute facility there. We’re re-signing all of these contracts—Hornepayne; I can’t leave them out. We’re re-contracting all of these biomass facilities, and we’re continuing to talk with the folks in the forestry sector about how we can ensure that they are a viable industry for our province moving forward.

And I love the axe. It was great.

Not only are our nuclear facilities ensuring that we have clean air in our province—the single largest greenhouse gas emissions accomplishment in North America, in eliminating coal-fired power with nuclear power—but these medical isotopes are an enormous opportunity for us to save people’s lives, not just in this country and across North America, but around the world. We are one of the superpowers when it comes to medical isotopes.

Things like cobalt-60—we provide almost 50% of the world’s cobalt-60 from our Candu facilities here in Ontario, from places like Bruce and Darlington, and soon in Pickering. Lutetium, molybdenum-99, yttrium-90—all of these medical isotopes are going to be sent around the world to help cure cancer. It’s an unbelievable story—all part of our nuclear energy advantage in Ontario.

It is the Organization of Canadian Nuclear Industries—what did I say? I don’t know. Anyway, thank you. I’d like to correct my record. I see the good people of Hansard looking me straight in the eye. OCNI is the Organization of Canadian Nuclear Industries.

I can’t finish by correcting myself. I have to talk about the fact that we have one of the cleanest, most reliable electricity grids in the entire world, something that we should be very proud of as we continue to invest. It’s going to take us a while to get those refurbishments done at places like Bruce and at OPG in Darlington, and then at the Pickering plant, where we’re refurbishing the B units there. It’s going to take us some time to build those battery storage facilities. They should be on the grid by mid-to-late next year. We’ll roll out more non-emitting resources after we get those storage facilities built in the province to ensure that our system operates more efficiently.

As a result of this pragmatic approach—and industry is seeing it, the people of Ontario are seeing it, and our farmers and agricultural sector are seeing it. They’re able to make investments in their business, in their homes, in their farms because of stable energy policy. It’s finally come back to Ontario after 15 years of skyrocketing electricity bills, uncertainty with things like the global adjustment. We brought that certainty back to Ontario.

Bill 165 builds on that certainty for people looking to invest and buy new homes in our province.

With that, I’ll turn it over to my good friend my parliamentary assistant.

Good morning, everyone. I’m going to be splitting my time today with my very energetic parliamentary assistant, the member from Renfrew–Nipissing–Pembroke, otherwise known as the Yak.

I rise today to begin third reading of Bill 165, the Keeping Energy Costs Down Act, 2024. To start, I think we need to talk about why this bill is so timely. We know that families across Ontario, right across our province, are dealing with some tough challenges these days. My colleagues and I talk about it every day in question period, with question after question about the punitive carbon tax. All families, not just those here in Ontario, but across Canada, are being hit every day by the terrible Liberal carbon tax, which is driving up the price of everything—but not just that; they’re also dealing with the impacts of high inflation, and they’re dealing with high interest rates right now. That means higher costs at the grocery store, and it means higher costs at the gasoline pump. As you’re fuelling up your vehicle, it means less money to put away for a rainy day, and it means higher mortgage costs.

Let me tell you, Speaker, the last point is really a sore spot for so many families, including those who don’t even own a home yet. So many people are striving for that dream of home ownership. They’ve saved up for a down payment in many cases, they’ve had their eye on a new house, and they’ve done everything right. But they’re dealing with a government in Ottawa that just continues to raise the price of living, which makes it all feel out of reach—and they’re doing it every April 1. That’s no April Fool’s joke. It’s causing a lot of pain for families right across our country.

That’s why we’re doing things differently here in Ontario than the way the federal government is operating in Ottawa. What we’re doing here includes things like Bill 165, which, if passed, will help keep housing and energy costs down and provide some real relief for Ontario families.

Speaker, as you probably know, one of the biggest drivers of Ontario’s increasing demand for energy is our government’s plan to build 1.5 million new homes by 2031. It’s critical that new homeowners have options available to them, including for affordable home heating. For some families, that will be electric or hybrid heating, where you pair your natural gas furnace with an electric heat pump, just like our Clean Home Heating Initiative has done in communities across the province. But for many others, they’re looking for the reliability and affordability of natural gas. I don’t think that should come as any surprise, because natural gas is already the primary heating source for about 70% of households in Ontario. Seven out of 10 homes are heated by natural gas in our province. With affordability already a top concern for the people of Ontario, we can’t make a family who’s accessing their preferred home heating option pay even more.

That’s why I was extremely disappointed in the Ontario Energy Board’s decision from December of last year that would have effectively increased the cost of new homes. Under this decision, they—and apparently the NDP and the Liberals, based on their votes at second reading in the Legislature, anyway—would like to see families pay 100% of the cost to connect to the natural gas grid upfront. That would lead to thousands of dollars being added to the cost of new homes. Those are costs that, today, are currently spread out over 40 years—just like a mortgage, amortizing it over 40 years, making it much more manageable for families buying their first home or moving to a bigger place as their kids grow up. In fact, according to the OEB’s own decision, the cost of a new home would increase by about $4,400, on average, across the province, and it would cost significantly more than that—in the tens of thousands of dollars—for those in rural Ontario, on farms and residences in more rural and remote parts of northern Ontario, in particular. That type of change wouldn’t just be a huge departure from the realities of our energy system, but it’s also a huge departure from the historical practice which has been in place since 1998.

This bill, Bill 165, would keep costs down by allowing these costs to be paid over 40 years instead of all up front. Going from 40 to zero was the decision of the OEB, which is far from rational and pragmatic. What we’re doing is, for the time being, going back to the 40-year amortization period. That’s a win for the taxpayer. It’s a win for the business owner. It’s a win for the farmer. It’s a win for the homebuyer. It’s a win for everyone in Ontario.

Ontario, like the rest of Canada, is already grappling with high interest rates and inflationary pressures, along with the impact of this terrible federal carbon tax. So how can we, in good conscience, take any action that would raise prices on the backs of first-time homebuyers and moms and dads who are looking for a bigger space for their growing families? As a government elected with a mandate to rebuild Ontario’s economy, keep costs down for people and businesses and build the homes our growing province needs, we simply can’t and won’t stand for this. We definitely can’t stand for it when we’ve had well over 200 requests from Ontario municipalities to expand access to natural gas in their communities. I want to say that again, because that’s almost half of the municipalities in Ontario that are actively calling for more natural gas in their communities.

Bill 165 would allow us to reverse this decision, to protect future homebuyers and keep shovels in the ground. But reversing the decision alone isn’t enough if we don’t address the issues that got us here in the first place.

While the Ontario Energy Board makes hundreds of decisions every year, this particular decision raised concerns instantly about public engagement in the decision-making process. In fact, in the decision, one commissioner noted that the decision on natural gas connection costs was reached without input from a number of key stakeholders. Home builders, contractors, farmers—the people and businesses who actually build the homes and feed our province—weren’t able to provide input on a decision that affects their industry drastically. That same commissioner also noted that this split decision, despite having a significant impact on electricity demand, was reached—this is really important—without input from the province’s Independent Electricity System Operator, the system manager for our electricity grid in the entire province. To quote that dissenting commissioner: “Is the scenario of no-new-gas-connections, replaced by construction of all-electric developments, feasible? For example, would electricity generators, transmitters, distributors and the IESO be able to meet Ontario’s energy demands in 2025? I don’t know,” was the answer.

As Ontario’s Minister of Energy, I find it extremely concerning to read that quote, especially when our government is focused on a pragmatic approach to supporting the electrification of home heating, transportation and manufacturing, with a focus on keeping costs down and our energy reliable so we can keep the lights on in our province and continue to see the record investment that we’ve seen in our province.

Part of our pragmatic approach—and we started this a number of years ago—was the establishment of an Electrification and Energy Transition Panel. This panel was put together to advise our government, our ministry, on the highest-value short-, medium- and long-term opportunities for the energy sector to help Ontario’s economy prepare for electrification and the energy transition. While the OEB was aware that the panel’s report was to be released around the same time of their decision, they decided to go beyond their role as an energy regulator and make a major energy policy decision without waiting for the government’s response stemming from that panel’s report. The final report, as I say, was due around the same time as the decision was made, just before Christmas. It’s unfortunate, because the panel’s recommendations and our government’s response will have a significant impact on the sector and Ontario’s planning decisions going forward.

Ultimately, more than 200 stakeholders, Indigenous partners and communities, government departments and agencies, and members of the public provided input to that panel. So all of the stakeholders that you would want participated in that panel’s discussions and deliberations. In the end, all that work resulted in serious and some very well-thought-out recommendations for the ministry and our government to consider.

For example, one of the key recommendations of the Electrification and Energy Transition Panel’s report, Ontario’s Clean Energy Opportunity, was for the government to issue a natural gas policy statement, providing clear direction for the long-term role of natural gas in Ontario. As laid out in the report, natural gas will continue to play a critical role as a source of energy in the province for a number of years to come. That recognizes the fact that any major shift away from this fuel source would require a significant build-out of our grid that could not be accomplished quickly.

We’re in the process of building new nuclear facilities at Bruce Power; small modular reactors at Darlington and other new non-emitting generation through competitive processes through the Independent Electricity System Operator; and battery storage facilities procured competitively through the IESO to ensure that those renewables that we have on the grid now and those that we will add in the future are able to provide electricity to the grid in an efficient manner and provide stability for electricity customers around the province.

No one would think that going from a 40-year period to zero years and adding thousands of dollars to the price of a home during a housing crisis is a pragmatic or responsible approach, which is the way that we’ve taken on the energy file. Even one of the OEB commissioners recommended only reducing the horizon to 20 years. When talking about the horizon, they mean the revenue horizon for paying for these pipelines.

Given these concerns, our government saw an opportunity to continue our work, originally started back in our first mandate, to modernize the Ontario Energy Board. In 2019, my predecessor, the member for Kenora–Rainy River and the Minister of Northern Development, took steps to enhance trust and transparency in Ontario’s energy sector by restructuring the OEB’s governance and operational framework. That was part of our work under the Fixing the Hydro Mess Act.

As you will recall, this government was largely elected in 2018 to a massive majority government because of the failed energy policies of the previous Liberal government. Everyone remembers the tripling price of electricity during their 10 years in power.

Today, we’re continuing to fix the hydro mess that was left to us. We’re continuing that work. And we’re responding to the concerns raised in the December 2023 decision by proposing legislative changes that would ensure major OEB decisions with far-reaching implications on our constituents, like on natural gas connection costs, don’t happen again without adequate stakeholder consultation and without all the facts about government policy priorities.

Specifically, the Keeping Energy Costs Down Act requires the Ontario Energy Board to conduct broader engagements when conducting both natural gas and electricity hearings.

If passed, Bill 165 also gives the government the authority to introduce regulations that require the OEB to notify and invite participation of testimony from specific stakeholders or economic sectors. For example, if we know a decision is going to have a major impact on a particular sector, like transit operators, low-income service providers, the construction industry or a particular government agency like the Independent Electricity System Operator, we would require, or could require, the OEB to notify them and invite their participation in the hearing.

These changes would also provide the government, through the Minister of Energy, with the authority to require a separate hearing, more formally known as a generic hearing, on any matter of public interest that could arise during an OEB proceeding. This would further ensure that Ontarians’ voices are heard on matters that will affect their families, businesses and communities. That was a change that was very much welcomed during the committee hearings that were held here at the Legislature last month.

Just take the comments of the president of the Ontario Greenhouse Alliance, Jan VanderHout—he was here last night; I saw him with TOGA. He presented on behalf of Flowers Canada. It’s amazing—my goodness—the success that Flowers Canada is having, with something like $325 million worth of flowers exported to the US last year. It’s a growing industry. Maybe my parliamentary assistant should buy some for his wife. He probably hasn’t done that in a while.

Jan VanderHout from Flowers Canada said, “This legislation will ensure that Ontario’s energy transition is practical and inclusive of a broader range of economic and social impact considerations. The consideration was poorly given to many of the rural areas, and like my colleague at OFA,” the Ontario Federation of Agriculture, “we were also not consulted—not to my knowledge, certainly—before this OEB decision was made.” He went on to say, “It really becomes important that they understand the nuances of the various aspects of industry and agriculture in the province and, certainly, I think that was entirely missed, because the dynamics of the high-rise buildings here in downtown Toronto are significantly different than the challenges that we face in rural Ontario, which is a large area.”

Jan, as usual, is absolutely right. If the OEB is making a decision that’s going to have an outsized impact on families and businesses in rural Ontario, then they need to make the effort to hear from those stakeholders in rural parts of Ontario.

But it’s not just rural versus urban—representatives from the OFA, the Ontario Home Builders’ Association, the Association of Power Producers of Ontario and more also highlighted the importance of broad consultation to ensure decisions don’t have unintended consequences, especially on government priorities, including getting more affordable homes built. It’s also important to keep other priorities in mind, including making Ontario an attractive place to do business, and access to affordable and reliable energy is also a critical part of our sales pitch.

That’s why to further protect consumers, we’re also proposing to make regulatory changes that would prohibit customers from being required to financially contribute to the construction of certain gas transmission projects. These proposed changes would preserve the historical treatment of natural gas transmission projects under OEB jurisdiction when those projects are specified by government direction. Maintaining the current approach, where customers are not required to make upfront payments, will ensure Ontario continues to attract critical investments in sectors like the greenhouse and automotive industries in southwestern Ontario.

Bill 165, the Keeping Energy Costs Down Act, doesn’t stop there. It also proposes to streamline the leave-to-construct process for small energy projects, making reliable and affordable energy options available to communities, homes and businesses in a more cost-effective and timely manner. Today, anyone looking to connect a new home or business to Ontario’s natural gas system with a pipeline must obtain leave-to-construct approval from the OEB if the expected cost of the project will be $2 million or greater. The OEB reviews the application and grants leave to carry out the project if it’s deemed to be in the public interest to do so.

Over the past couple of years, we’ve heard concerns from mayors and councils and agricultural organizations at places like the Rural Ontario Municipal Association and AMO conferences from all across the province on this leave-to-construct issue, and they’re frustrated that the $2-million threshold for small pipeline projects that was first set back in 2003 hasn’t been updated to reflect inflation and increased construction costs, like the ones we talked about earlier. They’re concerned that even the smallest projects to connect something like a new housing development would no longer receive the exemption, as was the original intent. The changes we’re proposing would allow the government to prescribe conditions in regulation to exempt small projects from leave to construct, while also maintaining the crown’s obligations related to rights-based consultation with Indigenous communities, ensuring opportunities remain for their input into proposed new projects.

Through Bill 165, if passed, the government intends to introduce regulations to streamline the leave-to-construct process by exempting small pipeline projects that cost between $2 million and $10 million, provided the crown’s duty-to-consult obligations with Indigenous communities have been met.

I want to stress that both the government of Ontario and the OEB are ensuring that Indigenous communities have a continued opportunity to bring their views forward and to inform any decisions that may impact their rights or their interests. These changes would improve the timelines for pipeline construction and expansion by cutting red tape and expediting the installation of natural gas to rural, remote and underserved communities while also helping to support a reliable and cost-effective provincial energy supply. Project applicants would continue to contact the Ministry of Energy early in the planning process and provide the ministry with a description of the proposed project, including the need for the project, its terminal points, characteristics such as the length and diameter of the pipeline, and the proposed route. Along with any additional information requested, the Ministry of Energy will assess whether the proposed project triggers the duty to consult. Where it is triggered, the OEB would then determine whether the crown has adequately discharged its duty to consult prior to granting such applications.

I also want to be clear that for all projects, whether there is a leave-to-construct proceeding or not, proponents will continue to require authorizations from Ontario ministries and municipalities. This will include permits and other approvals relating to technical, safety and environmental requirements needed to support the construction of the pipeline.

All of this work is going to build on the important action that we have taken to move Ontario forward as a leader in economic growth and clean energy, including:

—cutting the gas tax through December of this year;

—saving families an additional $312 a year through our Ontario Electricity Rebate;

—investing an additional $50 million in the Ontario Electricity Support Program, which is delivered by the OEB, to help those who need help the most;

—launching the Clean Home Heating Initiative, with incentives of up to $4,500 per household to roll out electric air-source heat pumps paired with existing natural gas furnaces;

—scrapping the previous Liberal government’s cap-and-trade carbon tax that punished people and businesses; and

—introducing legislation to protect the people of Ontario from any future carbon tax, and a whole lot more.

All of this has made us increasingly attractive to business and industry, with companies and investment surging into our province at a record rate. It brings us so many benefits.

Just take the Honda announcement from two weeks ago that was landed following a lot of work by Minister Fedeli and Premier Ford and other members of our team: This $15-billion investment will create the country’s first comprehensive electric vehicle supply chain, and it’s all going to be located right here within our provincial boundaries. That includes four new manufacturing plants—not one, but four: a new stand-alone battery plant at Alliston, a new EV vehicle assembly plant, a new cathode active material and processing plant, and a new separator plant, as well. This investment, which was a number of years in the making, represents a vote of confidence in Ontario’s status as a leading jurisdiction in the global production and development of electric vehicles, batteries and battery materials.

It’s just one example of the growth that we’re experiencing in Ontario. In addition to Honda, Ontario is already working, as you know, with Stellantis in Windsor, Volkswagen in St. Thomas, Umicore in Loyalist township, all of whom are making great progress on their multi-billion dollar investments.

We’re also seeing major investments in green steelmaking in places like Hamilton and Sault Ste. Marie, with Dofasco and Algoma Steel. While the traditional steelmaking process uses coal, one of the largest sources of emissions in the province, our government is working with the federal government and the steel industry to end coal use and electrify their operations to support the production of green steel, fuelling our growing automotive sector.

As a result of these investments and our housing goal that I mentioned earlier, for the very first time since 2005, almost 20 years ago, Ontario’s electricity demand is on the rise. For almost 20 years, we’ve either seen electricity demand stay the same or even diminish as manufacturing jobs fled the province for other jurisdictions. In fact, an expert analysis from the IESO, our system operator, shows that electricity demand could more than double by 2050 if we stay on the rate that we’re on right now. That’s why we’re taking action now—actually, it’s why we took action a couple of years ago to ensure that we have the energy that we know we’re going to need down the road.

Last summer, I released the comprehensive Powering Ontario’s Growth plan. This plan lays out our road map to provide families and industries with the reliable, low-cost and clean power that we need to power Ontario’s future. Powering Ontario’s Growth builds on the key strengths of our system, including our diverse supply mix made up of nuclear, hydro, natural gas, other non-emitting resources like renewables and, soon, batteries that are currently being built across the province. It also builds on the significant action our government has already taken to meet demand through the end of the decade with major projects and procurements, including a $342-million expansion of our energy efficiency programs that are offered through IESO and, as I mentioned, energy storage procurement, which is actually the largest such procurement in Canada’s history and one of the largest in North America.

This plan also builds on Ontario’s international leadership on nuclear power and small modular reactor development. It builds on our legacy as the birthplace of the Candu reactor—which is still among the safest, most reliable reactors in the world today—and our reputation as a world-leading source of life-saving, cancer-fighting medical isotopes, which are harvested from our Candu reactors at the same time that they’re producing almost 60% of the province’s electricity every day. It’s an amazing success story—part of our nuclear advantage.

Nuclear power, as I mentioned, makes up more than half of our current electricity supply in Ontario. It’s a source of affordable and clean power. Nuclear energy is why Ontario is able to maintain one of the cleanest electricity grids in the entire world. That’s why expanding our province’s nuclear fleet is a key component of our plan to meet future demand. That includes innovative new solutions like the SMR, as I mentioned, that’s currently under construction at the Darlington OPG site. In fact, we’re making progress on developing the country’s first commercial-grid-scale SMR at that Darlington nuclear site. It’s not just Canada’s first; it’s not just North America’s first; this will be the first SMR producing electricity on the grid in the entire G7 or the Western world.

As a result, we’re attracting incredible interest from around the world, helping us open new export opportunities for our province.

I had the opportunity yesterday morning, down at the Invest Ontario offices at the Eaton Centre, working alongside our former colleague Bill Walker, who’s now the head of the OCNI, the Ontario coalition of nuclear industries—I was thinking “Canada” was in there. They had a group in from Brazil. They’re looking at our SMR and our expertise in nuclear to deploy in their jurisdiction.

But we didn’t stop there. Through Powering Ontario’s Growth, we’ve also begun the planning and licensing for three additional SMRs at the Darlington site, to bring that total to four. Speaker, 1.2 gigs of clean, reliable, affordable electricity is on its way, supporting the 65,000 people who work in our nuclear sector in Ontario.

In addition to our SMR expansion, we’re working with Bruce Power to begin pre-development work for the province’s first large-scale nuclear station build in more than 30 years. This new supply will complement the extensive work that’s already going on in the sector, including the significant progress that’s being made on the refurbishments and major component replacements that are happening right now, ahead of schedule and on budget, at Darlington and also at Bruce Power. The refurbishment of Candu reactors at Darlington and Bruce represent the largest clean energy projects in Ontario, securing a steady supply of clean baseload power through our province.

Our government is supporting OPG’s plan to proceed with the next steps toward refurbishing Pickering nuclear station’s B units. That plant is operating at an incredible rate right now. It’s because of the expertise from the skilled trades, our power workers, and those who work in our nuclear sector.

I’m not exaggerating when I say that Canada, and Ontario in particular, is an international leader, a powerhouse, when it comes to nuclear power. Nations around the world are looking to our province to leverage our expertise as they make decisions on their own SMR deployment to help them achieve energy independence and meet their climate goals. That was apparent during my recent nuclear trade mission to Dubai. I attended COP28. I attended the World Nuclear Exhibition in Paris, France, as well and met with folks in the United Kingdom, in London, who are also looking to our expertise on the SMR as they build out their plans for small modular reactor deployment in the UK.

Beyond nuclear energy, Powering Ontario’s Growth is also continuing our competitive approach to procuring a diverse set of resources to meet our growing capacity and energy needs. Just like with home heating, natural gas generation is part of our pragmatic approach to keeping the lights on. It’s our insurance policy, an approach that has been reinforced by the Independent Electricity System Operator, whose natural gas phase-out study stated that natural gas generation plays a crucial role in the reliability of the electricity grid and provides a range of services that no other resource today can provide on its own.

In short, while most of the time Ontario can meet its electricity generation with nuclear and hydroelectric—which we’re also investing in refurbishing—and bioenergy and renewables, we need to face the reality. We need a pragmatic approach, one that keeps energy affordable, keeps the heat on and helps families afford their first home.

Interjection.

Well, the OEB, in its own decision, said it was going to cost about $4,400, but they were looking at a cul-de-sac in the GTHA when they were using that analysis. We know and you know, certainly, being from Perth–Wellington, just how much more it’s going to cost to get that extra line out to your home or to the farms that are—boy, they’re starving for more natural gas in your community. I hear from them all the time at ROMA and AMO. It’s going to cost them tens of thousands of dollars more.

That’s why we won’t let this stand. That’s why we’re coming back with our natural gas policy, so that the Ontario Energy Board will be able to reconsider government policy and ensure that they’re hearing from the proper people, including the Independent Electricity System Operator, home builders, contractors, farmers and those who will be impacted by these additional costs that are heaped onto them as a result of this misguided decision.

In Niagara, where my colleague is from, a new business customer would see an upfront connection charge of approximately $53,000. That’s $53,000 more that they would have to pay up front instead of amortizing this over a 40-year period. Anybody who thinks that going from 40 years to zero years is rational is completely irrational—it just is. A recent restaurant project in Niagara would cost approximately $13,000 more up front. So it’s going to have an impact on the residents in Niagara, just as it would right across the province.

We have an opportunity, particularly in our greenhouse sector, to be a world leader. We already are, but we have an opportunity to grow that even more. And providing them with the ability to amortize the cost of pipelines up to 40 years makes a heck of a lot of sense and will increase our GDP dramatically.

The dissenting commissioner’s opinion, Allison Duff, was very, very clear as well: that the OEB commissioners didn’t hear from the stakeholders that they needed to hear from. They didn’t hear from the farmers, they didn’t hear from the home builders, they didn’t hear from the contractors, and most importantly, they didn’t hear from the system operator that manages our electricity grid. So we’re going to put this back in the OEB’s court once we set our natural gas policy.

Once again, we see the NDP trying to find any way possible they can to oppose a piece of legislation, even one that makes as much sense as this one does, Madam Speaker.

This is necessary in a housing crisis to assuring that we can keep shovels in the ground and build the homes that we’re talking about building.

A recent condominium development here in the GTA would see an upfront connection charge of approximately $290,000. I don’t know who the opposite member thinks is going to pay that, but it’s going to be the person who buys that condo or lives in that condo—$290,000. A three-building condo development in Toronto would see an upfront connection charge of approximately $1,065,000. Who does the NDP think is going to bear the cost of that? It’s going to be that homeowner, the new homeowner, and we have to step in to ensure that we’re protecting the homeowners of the province.

—carried by the homebuyer.

So now you are saying it’s passed on to the homebuyer, okay. Because previously, you weren’t saying that. But then again, we just had the critic responsible for energy in question period actually concerned about the cost of natural gas for people in Ontario and the critic for labour from northern Ontario just saying that everybody should basically rip out their natural gas and go with an electric heat pump. So they’ve been spinning over there, and they don’t know exactly what their position is.

Speaker, I think it’s important that we take a moment before we get into the broader debate to be clear about how ridiculous the argument is that the home builder or the developer is going to carry the upfront cost of this and it’s not going to be passed on to the consumer. Let me give you just a few real-world examples of much it could cost to connect a new home, business or development to the natural gas system if you had to pay up front.

In the GTA, connecting a new recreation and wellness centre could see an upfront connection charge of about $128,000. On a new 39-home subdivision—actually in your riding, the Minister of Labour’s riding, in Campbellford—it would cost about $357,000 up front. That’s more than $9,000 a home. A recent restaurant project in southwestern Ontario would see an upfront charge of about $18,000. There’s even one other example here that I’ve got: A recent three-building condominium here in the GTA would see an upfront connection charge of approximately $1,065,000.

This bill, Bill 165, would keep costs down by allowing those costs to be paid off over 40 years, amortized over 40 years, instead of all up front. That’s a big win for the taxpayer. It’s a big win for the business owner. And, more importantly, it’s a real win for the homebuyer—that new homebuyer that’s trying to enter the market.

There’s only one party in the Legislature that actually cares about keeping the cost of new homes down and that’s the Progressive Conservative Party of Ontario. Because at a time when Ontario, like the rest of Canada, is already grappling with high interest rates and inflationary pressures along with the impact of terrible federal policies like the carbon tax, we can’t in good conscience take any action that would raise prices on the backs of those first-time homebuyers and moms and dads, like me, who want to get their kids out of the house and into their own home and start building their own equity, or those younger moms and dads, unlike me, who are looking for more space for their growing families. Speaker, we definitely can’t let it stand in the way when we had well over 200 requests from Ontario municipalities to expand access to natural gas in their communities.

Now, I go to the ROMA, the Rural Ontario Municipal Association, conference every year, and AMO, the Association of Municipalities of Ontario, every year. And my very, very capable parliamentary assistant here, Mr. Sarrazin, from eastern Ontario, sits and listens to municipal delegations where they’re begging us for natural gas expansion projects in their communities because they want to have this low-cost, reliable, affordable energy in their communities for their constituents and for new homeowners. As a government elected with a mandate to rebuild Ontario’s economy and keep costs down for people and businesses and build the homes our growing province needs, we simply can’t stand for that cost being borne by those new homeowners. That’s why Bill 165 will allow us to reverse the specific part of the OEB decision, protect future homebuyers and keep shovels in the ground at a time where we’ve got a goal to build 1.5 million homes by 2031.

Speaker, reversing the decision alone isn’t enough if we don’t address the issues that got us to this place. While the Ontario Energy Board makes hundreds of decisions every year—the OEB is making all kinds of decisions on rate applications every day and, to their credit, almost all of them have been without issue. This one particular issue, though, did raise some concerns about public engagement in the decision-making process. In fact, in the decision itself, one of the commissioners—the dissenting commissioner—noted that the decision on natural gas connection costs was reached without input from key stakeholders, like the people that build homes, like construction companies, like the contractors, like the farmers that were going to be able to access natural gas in their communities, the people and the businesses who actually build the homes, the farmers in this province.

The same commissioner—Commissioner Duff is her name—also noted that this decision, which could have significant impacts on electricity demand, was reached without any input at all from the Independent Electricity System Operator, the IESO. To quote from that dissenting commissioner, “Is the scenario of no-new-gas-connections, replaced by construction of all-electric developments, feasible? For example, would electricity generators, transmitters, distributors and the IESO be able to meet Ontario’s energy demands in 2025?” She answers her own question. “I don’t know,” she says. The commissioner said, “I don’t know,” Madam Speaker.

Let me tell you, as Ontario’s Minister of Energy, that was quite a concerning quote to read in the dissenting opinion, especially when our government is focused on a pragmatic approach to supporting the electrification of home heating and transportation and manufacturing, with a focus on keeping energy costs down and energy reliable. The other three parties in the Legislature don’t care about keeping the costs of energy down. They’re very ideological in their approach to the energy sector and electricity. We’re not. We’re relying on organizations like the Independent Electricity System Operator to give us the pragmatic advice that comes from operating the electricity system in Ontario. Every decision that we’ve made has been a very pragmatic decision. The Clean Home—

Interjection.

That makes a lot of sense, Madam Speaker, this Clean Home Heating Initiative using hybrid heat pumps for customers that are natural gas customers. Because what it’s going to do is have that hybrid heat pump that is operating on electricity most of the time, but when the temperature does hit minus 15 or minus 18, or minus 20 sometimes overnight—or even colder up in Kiiwetinoong; it gets very cold up there in northwestern Ontario—then your backup will kick in. In this case, the natural gas furnace will kick in.

This is a very, very pragmatic approach, and the CHHI, our Clean Home Heating Initiative, is operating in a number of municipalities across the province: in Durham, in Barrie, in St. Catharines, in Sault Ste. Marie. It’s a program that we’ve been expanding, and taking a very pragmatic approach. Maintaining access to natural gas also ensures reliable access to heat, as I mentioned, on those coldest days of the year.

Another part of that pragmatic approach was the establishment of the Electrification and Energy Transition Panel. This panel is advising me. It’s advising our government on the highest-value short-, medium- and long-term opportunities for the energy sector to help Ontario’s economy prepare for electrification and the energy transition. While the OEB was aware that the Electrification and Energy Transition Panel’s report was to be released around the time of their decision, the OEB decided to go beyond their role as an energy regulator and make major energy policy decisions without waiting for the government’s response stemming from the panel’s final report. That’s unfortunate, because the panel’s recommendations and our government’s response will have a significant impact on the sector and Ontario’s planning decisions.

We brought in experts for a reason. The panel was chaired by David Collie, the past president and CEO of the Electrical Safety Authority of Ontario. Other panel members were Chief Emerita Emily Whetung of Curve Lake First Nation and Professor Monica Gattinger, director of the Institute for Science, Society and Policy, a full professor at the school of political studies and founding chair of Positive Energy at the University of Ottawa. David, Monica and Emily conducted extensive engagements with key energy stakeholders and Indigenous partners across four streams from March to July 2023. In the end, more than 200 stakeholders, Indigenous partners and communities, government departments and agencies, and members of the public provided input to that panel.

In the end, all that work resulted in serious and well-thought-out recommendations. For example, a key recommendation of the electricity panel—Ontario’s Clean Energy Opportunity is the name of that report—was for the government to issue a natural gas policy statement providing clear direction for the long-term role of natural gas in Ontario, something that we intend to do, because, as laid out in their report, natural gas will continue to play a critical role as a source of energy in the province for at least the short and medium term. That recognizes the fact that any major shift away from this fuel source—which supports more than 70%, as I mentioned, of our home heating needs—would require a significant buildout of our grid that couldn’t be accomplished quickly.

Just take Quebec: Quebec uses mostly electric heating. Over the past few years, Ontario has had to step in to supply electricity from our natural gas generating stations on the coldest days of the year to keep the heat on at homes in Quebec and businesses in Quebec. We don’t want us to be in the same position, where families have to worry about if the heat will turn on or not. Under our government, we won’t be.

Given these important observations, there’s no doubt that the OEB decision is out of touch. No one could think that going from a 40-year period to zero years and adding thousands of dollars to the price of a home during a housing crisis is a pragmatic or responsible approach. As a matter of fact, it’s a completely irrational approach to go from 40 years to zero. Even one of the OEB commissioners in the decision, in a rare dissenting opinion, recommended only reducing the horizon to 20 years.

Given these concerns, our government saw an opportunity to continue our work, originally started back in our first mandate, to modernize the Ontario Energy Board. In 2019, my predecessor, the member for Kenora–Rainy River, Minister Rickford, took steps to enhance trust and transparency in Ontario’s energy sector by restructuring the OEB’s governance and operational framework. That was part of the work under the Fixing the Hydro Mess Act.

Today, we’re continuing that work and responding to the concerns raised in the December 2023 decision by proposing legislative changes that would ensure major OEB decisions with far-reaching implications on our constituents—like on natural gas connection costs—don’t happen again without adequate stakeholder consultation and without all the facts about government policy priorities.

Specifically, the Keeping Energy Costs Down Act requires the Ontario Energy Board to conduct broader engagement when conducting both natural gas and electricity hearings. If passed, it also gives the government the authority to reintroduce regulations to require the OEB to notify and invite participation or testimony from specific stakeholders or economic sectors. For example, if we know a decision is going to have a major impact on a particular sector—like transit operators, low-income service providers, the construction industry or a particular government agency like the IESO, the Independent Electricity System Operator—we could require the OEB to notify them and invite their participation.

These changes would also provide the government, through the Minister of Energy, with the authority to require a separate hearing, more formally known as a generic hearing, on any matter of public interest that could arise during an OEB proceeding. This would further ensure that Ontarians’ voices are heard on matters that will affect their families, businesses and communities.

To further protect customers, we’re also proposing to make regulatory changes that would prohibit customers from being required to financially contribute to the construction of certain gas transmission projects. These proposed changes would preserve the historical treatment of natural gas transmission projects under OEB jurisdiction when those projects are specified by government direction. Access to reliable and affordable energy has been critical to landing historic international investments over the past six years, and maintaining the current approach where customers are not required to make upfront payments will ensure Ontario continues to attract critical investments in sectors like the greenhouse sector and the automotive industries in southwestern Ontario.

It wasn’t that long ago when I was the energy critic, Madam Speaker—from 2015 to 2018—and I would talk to the folks from the auto sector all the time. As a matter of fact, Sergio Marchionne, who used to be the CEO of Chrysler, said famously that, under Premier Wynne and the previous Liberal government, Ontario was the least competitive jurisdiction, not in Canada—the least competitive jurisdiction in North America and the world to build cars.

I was the Minister of Economic Development in 2018-19 when we were setting about making sure that Ontario was a competitive place and open for business again when I took the call, in the first four months in that role in government, from the CEO of General Motors Global telling us—the Premier was on the call with me—that after 100 years of building cars and trucks in Oshawa, they were going to be shuttering that plant. I remember specifically the words from the CEO at GM. He said, “This is nothing that your government has done. You’ve inherited an absolute mess. We have full confidence that you’re going to fix the situation, make Ontario a competitive place to do business again, and we’ll be back.” I’m happy to say that we’ve done exactly that and the trucks are rolling off the line in Oshawa, Ontario, again at that General Motors plant.

All of the amendments that we brought forward would enshrine the good principles that have guided sound decision-making for these last number of years and protect against uncertainty. They’re also going to provide reassurance to communities and to businesses that they can rely on the energy system in Ontario, something they previously couldn’t do. Access to reliable, affordable energy is critical to our province’s growth, and these changes are going to help ensure that Ontario remains that attractive place for businesses to invest and families to call home.

Bill 165, the Keeping Energy Costs Down Act, doesn’t stop there. We also proposed to streamline the leave-to-construct process for small energy projects, making reliable and affordable energy options available to communities, homes and businesses in a more cost-effective and timely manner.

Today, anyone looking to connect a new home to Ontario’s natural gas system with a pipeline must obtain a leave-to-construct approval from the OEB if the expected cost of the project will be $2 million or greater. The OEB reviews the application and grants leave to carry out the project if it’s deemed to be in the public interest to do so.

Over the past couple of years, we’ve heard concerns from mayors, councils and agricultural organizations across the province on this issue. I know my colleague the parliamentary assistant has heard these as well at places like ROMA and AMO. They’re concerned that even the smallest projects to connect something like a new home no longer receive the exemption as originally intended.

The changes we’re proposing would allow the government to prescribe conditions in regulation to exempt small projects from leave-to-construct while maintaining the crown’s obligation related to rights-based consultation with Indigenous communities, ensuring that opportunities remain for their input into proposed new projects.

Specifically, if the bill is passed, the government intends to introduce regulations to streamline the leave-to-construct process by exempting small pipeline projects that cost between $2 million and $10 million, provided the crown’s duty-to-consult obligations with Indigenous communities, as I mentioned, have been met. These changes would improve the timelines for pipeline construction and expansion by cutting red tape and expediting the installation of natural gas to rural, remote and underserved communities, helping to support a reliable and cost-effective provincial energy supply.

Speaker, I want to stress that both the government of Ontario and the OEB are committed to ensuring that Indigenous communities have a continued opportunity to bring their views forward and inform any decision that may impact their rights or interests. But these are small projects, for the most part. It’s like relocating gas lines to support transit projects, or connecting a single home or small business or a new condo building, moving a gas line for municipal waterworks and those types of projects.

Project applicants would continue to contact the Ministry of Energy early in the planning process and provide the ministry with a description of the proposed project, including the need for the project, its terminal points, characteristics such as the length and diameter of the pipeline and the proposed route. Along with any additional information requested, the Ministry of Energy will assess whether the proposed project triggers the duty to consult. Where it is triggered, the OEB would then determine whether the crown has adequately discharged its duty to consult prior to granting such applications.

I also want to be clear that for all projects, whether there’s a leave-to-construct proceeding or not, proponents will continue to require authorizations from Ontario ministries and municipalities, including permits and other approvals relating to technical, safety and environmental requirements needed to support the construction of the pipeline.

To ensure the board meaningfully implements the changes outlined in the legislation, I intend to appoint a new chair for the Ontario Energy Board later this winter or early this spring. They will fill the role formerly held by Mr. Richard Dicerni, who passed away last year, just a few weeks after he stepped down from the position of chair.

Before I continue, I just want to take a moment to recognize the late Mr. Dicerni. Richard was a very, very distinguished public servant, who had served provincially and federally under all political stripes—including here in Ontario as Deputy Minister of Energy—before becoming president of Ontario Power Generation back in 1993. Richard had served Ontario and Canada very well during his 25-year career in public service and most recently as chair of the Ontario Energy Board, supporting them in their transition to the new governance structure, focusing on recruitment and organizational governance. He sadly passed away last summer, August 11, 2023.

On behalf of all of us, I want to express our deepest condolences to his wife, Carole Swan, and his family, including his son Patrick, who continues in his father’s footsteps. Patrick serves as an assistant deputy minister and executive officer at Ontario’s Ministry of Health.

I also want to take this opportunity to thank our acting chair, Glenn O’Farrell, who stepped up to fulfill this role on an interim basis following the sudden passing of his colleague. Glenn’s leadership has been appreciated as well, especially as he continues this work until a new permanent chair is appointed.

When the new chair is appointed, I will expect them to continue the hard work of their predecessors and ensure that the board conducts appropriate consultation in line with the proposed legislative requirements before reaching decisions, and to reinforce the government’s priority of supporting affordable, reliable and clean energy for all Ontarians.

Should this legislation be passed, and our new board chair is appointed, the government intends to introduce a natural gas policy statement, as I mentioned earlier, a recommendation of the Electrification and Energy Transition Panel to provide further direction to the Ontario Energy Board. At that point, we would return the issue of natural gas connection costs to the energy board for a new hearing.

I’m pleased to share that our approach has already resulted in early support from across the province. Catherine Swift, president of the Coalition of Concerned Manufacturers and Businesses of Canada, said, “This decision would have the effect of discouraging badly needed new home construction, especially regarding affordable housing. The decision would also discourage developers from using natural gas, one of the most efficient and cost-effective energy sources, in new housing developments.” The government’s approach “demonstrates a practicality that is sorely needed in many of our energy policy discussions today.”

The Ontario Greenhouse Alliance, which represents Canada Flowers and Ontario Greenhouse Vegetable Growers, said, “This legislation will ensure that Ontario’s energy transition is practical and inclusive of a broader range of economic and social impact considerations....

“In the legislation is equally important direction to ensure that future Ontario Energy Board decisions provide opportunity for a broader range of engagement and testimony from sectors and stakeholders that will be impacted by OEB decisions.

“The challenges of agriculture and food production around the world—providing safe, affordable, sustainable and secure agriculture products—means providing more of Ontario’s greenhouse products to consumers here at home and around the world.

“I’d like to thank the Ontario government for this legislation and ensuring a fair and managed approach to Ontario’s energy transition.”

The CEO of the Ontario Real Estate Association, Tim Hudak, said, “The OEB’s bad move to upend Ontario’s long-standing approach to finance infrastructure like natural gas over time puts new neighbourhoods and desperately needed new homes in jeopardy.

“Ontario’s ambitious housing supply goals necessitate new utility connections and infrastructure, including natural gas, to address the rising affordability crisis.

“OREA is in full support of the Ontario government overturning the OEB decision by whatever means necessary, including via legislation, to ensure Ontario can build the homes we need to house our population, both today and in the future.”

These are just a few of the examples that you’ll hear throughout the debate. But as you hear more, I think you’ll hear one central theme emerge, that being that our government is taking a pragmatic approach to the issue of home heating and the role of natural gas in our system more broadly, an approach that advances a reliable system, that advances an affordable system, one that is maintaining and building on Ontario’s clean energy advantage. That approach also reflects the work that we’re doing as a government to ensure a reliable supply of electricity and that it continues to be available for all Ontarians as demand continues to grow across Ontario.

At the start I mentioned how the incredible economic growth we’re experiencing as a province, alongside an ever-increasing move toward electrification for our homes and businesses and vehicles, and the fact that our population is expected to increase by millions of people by the end of this decade, is impacting our demand for electricity. In fact, for the very first time since 2005—20 years ago—Ontario’s electricity demand is rising. That’s right: For the first time in 20 years we’re experiencing increased electricity demand growth. It’s because of all of the reasons that I talked about earlier: the massive investments that are being made in our province and all of the new homes that we’re building.

In fact, expert analysis from Ontario’s IESO—the Independent Electricity System Operator—shows that electricity demand could more than double by 2050. Think about that for a minute: could double by 2050. That means our entire current supply, which includes all of the nuclear and hydroelectric capacity that we currently have, would need to double to meet the anticipated demand. That represents the biggest build-out of our grid since Sir Adam Beck created our hydroelectric system over a century ago.

That’s why we’re taking action now, and have been for the last couple of years: to ensure that we have the energy. And we know that we’re going to need that energy down the road, so we put these principles in place.

And while we’re already building new projects like the energy storage systems, government and those in the energy sector need to start planning for other major projects immediately so we have new, clean, zero-emissions projects ready to go when we need them.

That’s why, last summer, I released Powering Ontario’s Growth, laying out our plan to provide families and industries with the reliable, low-cost and clean power that we need to power Ontario’s future. It sets out the key steps that we’re taking to provide reliable, low-cost, clean power as our economy grows, as we electrify transportation and industry and we build those new homes. Powering Ontario’s Growth builds on the key strengths of our system in Ontario: our diverse supply mix, made up of nuclear, hydro, natural gas, and intermittent renewables, and soon, the battery storage facilities that will make our system that much more efficient. It also builds on the significant action that we’ve already taken to meet demand through the end of the decade with major projects and procurements, and that includes a $342-million expansion of energy efficiency programs and the largest energy storage procurement in Canada’s history. And it builds on Ontario’s international leadership in nuclear power and SMRs, on our legacy as the birthplace of the Candu reactor—still the safest, most reliable reactors in the world today—and on our reputation as a world-leading source of life-saving, cancer-fighting medical isotopes.

Nuclear power makes up more than half of our current electricity supply. And as a source of affordable and clean power, nuclear energy is why Ontario is able to maintain one of the cleanest electricity grids not just in Canada or North America, but in the entire world. That’s why expanding our province’s nuclear fleet is a key component of our plan to meet future demand. Through Powering Ontario’s Growth, we’ve begun the planning and licensing for three additional small modular reactors at the Darlington new nuclear site to round out the SMR fleet there to four units in all, increasing our supply of clean, non-emitting, reliable baseload power—1.2 gigawatts of new power. That’s enough to power 1.2 million new homes.

A Conference Board of Canada study estimates that construction and operation of four SMRs would increase Canada’s GDP by almost $14 billion and sustain, on average, approximately 2,000 jobs per year. And building four units provides more opportunities for Ontario companies to make investments to expand their operations to serve the growing SMR market both domestically and abroad. These companies are in all of our ridings. There are over 220 companies in our nuclear supply chain, all doing amazing world-class work.

By being North America’s leader in SMRs, we have the potential to grow the 65,000-person-strong nuclear sector that we have here in Ontario as well as drive economic growth and export opportunities that would allow us to be a potential supplier of products, services and expertise across a global market.

We have had visitors from around the world coming to Darlington, to tour the site. I always say, when I have an opportunity to speak about the SMR program, that the world is watching what’s happening at OPG in Darlington. And I could tell you, we’ve had visitors from all around the world: from Poland, from Estonia, from the Czech Republic, to the United Arab Emirates, to Australia. They’re coming from everywhere because we are in the pole position.

We had the governor of Indiana come up, as well, and I told him we were in the pole position. He’s looking forward to the Indy 500 that’s coming up a little bit later on this spring.

In addition to our SMR expansion, we’re working with Bruce Power to begin pre-development work for the province’s first large-scale nuclear station build in more than 30 years. As part of that project, Bruce Power will start community consultations and conduct the environmental assessment for federal approval to determine the feasibility of siting up to 4.8 gigawatts—that’s 4,800 megawatts—of new nuclear generation on its current site of Bruce C. That’s enough generation to power almost five million homes.

Recently, I was at Bruce for the launch of its request-for-information process to evaluate new nuclear technologies that could demonstrate value for ratepayers, stimulate the Ontario economy and be constructed within a timeline that meets Ontario’s clean electricity demands. Initiating this early planning will ensure that the province has a reliable, low-cost and clean option ready to power the next major international investment, all the new homes that we’re building in the province and those industries and sectors across the province as they grow and electrify.

This new supply will complement the extensive work already going on in the sector, and that includes the significant progress that has been made on refurbishment projects at Darlington and the major component replacements at Bruce. The refurbishments of these Candu reactors at Darlington and Bruce, which have been on time—actually, ahead of schedule—and on budget, represent the largest clean energy projects in Ontario, securing a steady supply of emissions-free baseload power.

Just last month, I announced that our government is supporting Ontario Power Generation’s plan to proceed with the next steps toward refurbishing Pickering Nuclear Generating Station’s B units, securing another 2,000-plus megawatts at that site.

Madam Speaker, the world is watching. They’re looking to Ontario to leverage our expertise as they make decisions on their own nuclear projects, including their own SMR deployment, to help them achieve energy independence, clean the air and meet their climate goals. That was apparent during my recent nuclear trade mission to France and the United Kingdom, and COP 28 in Dubai. Through meetings and events, I caught up with many of the jurisdictions who are looking to Ontario to inform the development of their own SMR programs, like Estonia, Poland, the UK and many others. In fact, Estonia’s Fermi Energia has chosen GE Hitachi’s SMR technology, the BWRX-300, for deployment in Estonia, specifically citing the Darlington SMR project as a factor in their selection decision.

It’s clear that there is recognition globally that nuclear power is essential to achieving net-zero goals and long-term energy security, particularly in the face of Russian aggression and the unprovoked attack of Ukraine. In Dubai, we saw 22 countries, including Canada, sign an international resolution to triple global nuclear capacity by the year 2050, and I also signed a partnership agreement, along with my colleague the Minister of the Environment, while in Dubai, making Ontario the first subnational jurisdiction in the world to join the Net Zero Nuclear initiative to help the world deploy reliable, affordable, clean nuclear energy, to provide energy security for countries around the world.

With Ontario already well ahead of the curve, with decades of experience with our Candu reactors and years ahead of the world on SMRs, we have an incredible opportunity to export our expertise, our experience and materials from our world-class nuclear supply chain, helping to create even more jobs here at home. And while I know not every party in this Legislature supports our nuclear workers—just a week ago, the energy critic from the NDP and the MPP for University–Rosedale said in a flyer for a town hall meeting that “nuclear is harmful to the environment and human health”—our government will always stand with our nuclear workers, who do so much for our province.

Beyond nuclear energy, Powering Ontario’s Growth is also committed to continuing our competitive approach to procuring a diverse set of resources to meet our growing capacity and energy needs, an approach that has already delivered early successes. The IESO’s first medium-term request for proposal re-contracted five facilities, representing more than 700 megawatts of capacity, at about a 30% savings compared to the previous government’s contracts.

We’ve also achieved impressive results with the province’s recent expedited long-term request for proposals, which kicked off the largest clean energy storage procurement in Canada’s history, an achievement for which I was very proud to receive the Friend of Energy Storage Award from the team at Energy Storage Canada. Through this procurement, the IESO has already secured contracts with 15 energy storage facilities, acquiring a total of 880 megawatts of capacity. And Indigenous participation in this procurement was significant, nine of the 15 contracts having at least 50% Indigenous ownership. I’m looking forward to seeing similar success stories with the first long-term RFP, the LT1 procurement, which is currently under way.

Just to keep in mind: This competitive approach is drastically different than the Liberals’ Green Energy Act, which awarded handsome, lucrative, way-over-market-price feed-in tariff contracts. You will all recall the 80-cent-per-kilowatt-hour solar contracts that were awarded during the Green Energy Act. Those contracts continued to be signed year after year, after the price of electricity was tripling in Ontario under the Liberals’ watch.

On top of all of these things that we’re doing, including bringing a competitive approach to procuring the energy that we need, we’re also investing in low-carbon hydrogen projects that will promote sustainability in the sector and contribute to our clean energy economy. We’re proceeding, again, with the competitive procurement of non-emitting energy resources to meet demand and support the operation of our grid. We’re building out our transmission system to distribute electricity to new areas of the province, all over the province, so that everybody can participate in our growing energy sector. We’re increasing energy efficiency programs in the electricity and natural gas sectors.

Just like with home heating, natural gas generation is part of our pragmatic approach to keeping the lights on, an approach reinforced by the Independent Electricity System Operator, whose natural gas phase-out study that I asked them for said, “Natural gas generation plays a crucial role in the reliability of the electricity grid. It provides a range of services that no other resource today can provide on its own, including producing large amounts of power to meet high demand and running for extended periods when other resources are not available.”

In short, while most of the time Ontario can meet its electricity generation needs with nuclear and hydroelectric and biomass and renewables, we need to face reality. Sometimes the sun doesn’t shine and the wind doesn’t blow, which is why natural gas is needed to meet those peaks and to keep the lights on when demand surges and ensure we don’t have to resort to emergency actions like rotating blackouts.

I was in Edmonton about a month ago now, stepped off the plane, and it was minus 42 degrees Celsius. I don’t know if you remember how cold it was in Alberta during that weekend. Their system operator, the AESO, was sending out bulletins to the residents of Alberta—kind of like we do our Amber Alerts here in Ontario—advising the residents in Alberta to conserve their electricity immediately or they were going to experience brownouts and blackouts.

Why did they have to do that? Because the wind fleet that they have did not show up. It was so cold, the wind turbines couldn’t turn, so they needed Saskatchewan’s natural gas and British Columbia’s natural gas to keep the lights on in Alberta and keep their residents warm. Natural gas comes back to save the day again in Alberta.

Ontario’s existing natural gas plants are doing the exact same thing right now. They’re the insurance policy to keep the lights on. I think, as a matter of fact, down at the Portlands generating station right here on the waterfront in Toronto, when it was built, it was strategically placed there to keep the lights on in downtown Toronto on the hottest and coldest days of the year. We know all too well what can happen if those plants are removed too quickly.

It was last summer when a large crane—not the bird, the piece of mechanical equipment—came into contact with a high-voltage transmission line, disconnecting the Portlands plant down there. The disconnection caused an extensive, hours-long power outage in downtown Toronto that disrupted the lives of millions of families and businesses that work here every day. Imagine if you live on the 50th floor of one of these condo buildings here and the elevators are out, which they were for hours.

The fact is, there is currently in the province no like-for-like replacement for natural gas. That’s why the IESO has concluded that natural gas generation is needed to maintain system reliability. In the end, thanks to our early planning, Ontario is well positioned with enough electricity to power growth in the near term. And, as our panel report has pointed out, we’ve got to be careful to pace the rate of increase in electricity demand with the rate at which new supply can come on stream. That’s why our government has done so much to prepare for the latter part of this decade and beyond.

Madam Speaker, as Ontario plans for a prosperous future and an energy system that continues to deliver power that is clean, reliable and affordable for all of its citizens, Bill 165, Keeping Energy Costs Down Act, is critical to our success. It recognizes that we’re working in a complex landscape with distinct regions. We are a massive, massive province. We have unique communities and organizations across this massive province that are facing unique challenges, but they’re also facing unique opportunities. And the legislative changes that this bill proposes are going to enable us to cut red tape. It’s going to enable us to get transit and homes built faster and without additional financial burden on customers. These changes will improve Ontario Energy Board processes, ensuring that the public has more input into OEB decisions, and will ensure those decisions are made with clarity on future government policy priorities to protect ratepayers.

Again, just imagine hearing this case without getting feedback from the Independent Electricity System Operator as to whether or not there’s enough electricity planned or in the system to ensure that we would have the electricity and the energy that we need to keep our residents warm each and every winter, and allow for our air conditioning to turn on in the summer.

Finally, Bill 165 is going to preserve customer energy choices by ensuring that natural gas remains an available and affordable option for all consumers.

Madam Speaker, when our government took office, we made a promise to put people first and make life easier and more affordable for families and businesses while sending a clear message that Ontario is open for business. We’ve seen the results of the work that we’ve done. Ontario is open for business. It is a powerhouse in North America. It is the economic engine in our country, once again, after years of Liberal policies that drove hundreds of thousands of jobs to other jurisdictions in North America and elsewhere in the world. The Keeping Energy Costs Down Act is going to allow us to continue to build on that promise, Madam Speaker, and ensure that Ontario is that economic powerhouse.

Yes. We’re exploring innovative new solutions in our world-class nuclear sector as well, with cutting-edge advancements in medical life-saving isotopes and small modular reactors, or SMRs. In fact, we’re making progress on developing the country’s first grid-scale SMR at the Darlington new nuclear site. This isn’t only a first for Canada, but it’s a first for the Western world and G7 countries. As a result, we’re attracting major interest from around the world, helping us open new export opportunities for our province in countries like Poland and Estonia and the Czech Republic, and the list goes on and on.

This incredible economic growth, alongside a population that’s forecast to increase by millions of people by the end of this decade, means that we need a lot more energy. One of the biggest drivers of that demand is our government’s plan to build one and a half million new homes for Ontario’s growing population by 2031. Bill 165, if passed, would make the legislative changes needed to help ensure that these homes get built faster and that the families who buy them have affordable choices for home heating.

But before we get too far into that discussion, I think we really need to set the playing field and consider where we are today. If you look broadly at our province’s entire energy demand, natural gas currently meets 39% while electricity only meets 21%. If you look at home heating, natural gas plays an even bigger role. It’s the primary heating source for approximately 70% of the people in this province, or about 3.8 million homes. While our government is supporting new options through the Clean Home Heating Initiative that I mentioned earlier, we still need to ensure that we have broad access to all forms of heating, and that includes natural gas.

That’s why I was extremely disappointed in an Ontario Energy Board decision that was made just before Christmas in late December that would effectively increase the cost of new homes. In an unusual two-to-one split decision, and this is very unusual at the OEB, the Ontario Energy Board reduced the revenue horizon—that’s the period of time that natural gas utilities use to calculate the upfront costs of new gas connections—for new residential and small commercial gas connections from 40 years, which has been in existence for almost 30 years—amortizing the cost from 40 years down to zero years by January 1 of next year.

What this means is that natural gas connection costs, which are normally paid over those five years, would be owed in full upfront, and that would lead to thousands of dollars added to the cost of building new homes. To be frank, the OEB simply strayed out of its jurisdiction, out of its lane when making this decision. It’s not only a huge departure from the realities of our energy system, but it’s also a huge departure from the historical practice which, as I say, has been in place for nearly 30 years—since 1998.

In fact, according to the OEB’s own decision, the cost of a new home would increase by about $4,400 on average across the province. Yes, that’s bad enough, adding $4,400 to the cost of a new home. But it would cost significantly more, in the tens of thousands of dollars, for farms and residences in rural and northern Ontario that have access to these natural gas pipelines. Think what happens when a residence in rural or northern Ontario can’t connect to natural gas. I’m sure there are some members of the NDP and maybe a few in the Liberals who would just tell them to go buy an electric heat pump and hope for the best. As a matter of fact, we just heard the member from Sudbury supporting a petition in the Legislature telling them to do exactly that. But in Ontario, especially in the harsh winters that you can experience here in Canada, in northern Ontario in particular, that may not be a realistic option.

Madam Speaker, I installed a heat pump at my house a number of years ago. I really like it. I don’t have access to natural gas where I live because I live out in the boonies in Quinte West. But even during a southern Ontario winter, even during a winter like this one that’s been pretty mild compared to other winter seasons, my furnace—my electric furnace—still kicks on on the coldest days of the year to keep my house warm, meaning that the electric open air heat pump can’t always heat my home.

So what do you do, Madam Speaker, if the NDP or the Liberals or the Greens had their way? They would have everybody on open air heat pumps, and there would be times during the year where people actually would be freezing in their home because they can’t keep their house warm. If folks in northern and rural Ontario don’t have access to natural gas like those in the big cities do, they’re often forced to rely on home heating oil or propane, which are more emitting than natural gas is and they’re also more expensive.

Now, one argument I’ve already heard from the opposition is that this additional cost of connecting to natural gas is carried by the developer and it’s not—

Good afternoon to all my colleagues in the Legislature here today. It’s been a while since I have spoken for an hour in the Legislature. So sit back, relax and enjoy the show for the next 60 minutes.

Second reading of Bill 165, the Keeping Energy Costs Down Act, 2024: If you get one thing today, Madam Speaker, I think it will be how critical this bill is to keeping housing and energy costs down for families. At a time where global and countrywide pressures like inflation and increasing building costs are forcing housing prices up, I think this bill should be a no-brainer for all of the parties in the Legislature who are looking to provide some relief to their constituents.

This new legislation is going to build housing faster, it’s going to save money and it’s going to protect customer choice, something that we are focused on doing here in the PC government. The way that we’re going to protect customer choice is by providing the government with time-limited authority to reverse this OEB decision on natural gas connection costs that would have significantly increased the price of new homes and businesses across our province. We’re introducing new requirements as well for the Ontario Energy Board to engage broadly with stakeholders on major energy decisions that impact our constituents, and modernizing the Ontario Energy Board’s leave-to-construct process for the first time in more than 20 years.

Each of these changes would cut red tape and ensure new homebuyers and businesses continue to have access to reliable and affordable energy from the source of their choice, and removing red tape, as I mentioned earlier.

Back when I was the red tape minister, we were focused on ensuring that we were cutting red tape across the province by 25% and therefore making it a more efficient jurisdiction to do business in. As a result of the work that was done by me back in 2018-19, by my predecessor, Minister Fedeli, and by Minister Gill, we have reduced a significant amount of red tape—about $9 billion each and every year on the cost of doing business in Ontario.

The proposals in Bill 165 also represent this government’s ongoing commitment to creating an energy system that meets Ontario’s growing demand while driving innovation and moving our economy forward. While cutting that red tape, getting our electricity prices under control and creating a jurisdiction for investment, we are seeing energy demand grow. Since day one, we have worked to prioritize the ratepayer, keep those costs down, make the policy environment around energy predictable and the system stable, and give consumers more choice in how they track and control their energy use and their costs.

While that may like seem a common-sense approach to doing business, I can tell you that common sense hasn’t always prevailed in Ontario’s energy planning space. In fact, it’s really easy to remember when the previous Liberal government presided over the fastest-rising hydro prices in North America, when the hydro average bill tripled—tripled, Madam Speaker—between 2003 and 2018, and families saw their bills increase by more than a thousand dollars per year. I can tell you, at my home in Quinte West, my average bill went from $220 a month to $660 a month when the Liberals were in charge of our electricity system.

And there are some members who were over there on the NDP bench right now—none of the Liberals are there because they were all voted out; they have been voted out since. But there are some members of the NDP caucus who were here during that time, and they know how inundated our constituency offices were from people who were absolutely fearful about the costs of electricity in their homes. That’s not the case anymore. Those sky-high electricity costs that we were experiencing in Ontario chased 300,000 manufacturing jobs out of our province.

This legislation that has been introduced is just another way that we’re delivering on all the work that we’ve been doing since day one to make energy and housing in this province affordable again. Just think: We have cut the gas tax, again, through June of this year. We’re saving families $312 a year through the Ontario Electricity Rebate. We’re investing an additional $50 million in the Ontario Electricity Support Program, which is delivered by the Ontario Energy Board, to help those who need it most. We have launched the Clean Home Heating Initiative, with incentives of up to $4,500 per household to roll out electric air-source heat pumps paired with an existing natural gas furnace.

We’ve scrapped the previous Liberal government’s cap-and-trade carbon tax that punished people and businesses. And unlike the current crop of Liberals, the ones that are still here, and their new leader, Bonnie Crombie—who has refused for the past week to come out against the tax, even though we all know that she supports a carbon tax—we have introduced legislation to protect the people of Ontario from any future carbon tax.

We’ve heard the same old song and dance from the few Liberals who are here. The member from Kanata–Carleton, who is a new member to the Legislature, stood up in this House just before Christmas saying that the people of Ontario were better off because of the crippling federal Liberal carbon tax. Now, she’s a former federal Liberal MP, so I guess you can understand why she would say that. But is she bringing that same kind of thinking here to the Ontario Legislature again?

The Liberal energy critic from Kingston, who is here with us today, wants us to go back to the failed Liberal energy policies of the Green Energy Act. He posted in a tweet about three weeks ago that if we had not cancelled all of those Green Energy Act contracts—those 800 contracts that would have driven up the cost of electricity in our province by a billion dollars on top of what we’re already experiencing—we’d be better off.

So I think we know what this current crop of Liberals and their brand new leader are thinking when it comes to a carbon tax and the kind of chaos that they would bring to energy costs in the province of Ontario. Again, we can’t go back there, Madam Speaker. We have to move forward with prices that are reliable and affordable, and have a system that’s clean and safe.

All of the work that we have done since 2018 has paved the way for us to move boldly forward as a leader in economic growth and reliable, affordable and clean energy. For example, Ontario is quickly becoming a leader in electric vehicles and battery development, with historic investments at Stellantis down in Windsor, to Volkswagen in the St. Thomas-London area, and in eastern Ontario at the brand new Umicore plant, which is going to be opening in Loyalist township.

We’re also seeing major investments in green steelmaking in two communities: Sault Ste. Marie in the north and also Hamilton. And while the traditional steelmaking process of using coal and coke is one of the largest sources of greenhouse gas emissions in the province, we’re working with the federal government and the steel industry to end the use of coal and electrify their operations to support the production of green steel that’s going to fuel our growing automotive sector that we are seeing here in the province.

Imagine, Madam Speaker, just what a difference those electric arc furnaces are going to make. I want you to picture driving from Burlington over that Skyway bridge into Hamilton and looking off to the right at the Hamilton waterfront and seeing those massive piles of coal that are sitting there on the waterfront. Once these electric arc furnaces are up and running, there won’t be any piles of coal there, and we can look forward to developing a brand new waterfront that has lots of restaurants and bars and economic development and good things happening there.

Interjections.

I absolutely would.

The Keeping Energy Costs Down Act would, if passed, give the province authority to reverse an Ontario Energy Board decision that would have increased the costs of new homes across the province.

The act would also require the Ontario Energy Board to conduct more public engagements so future decisions support the priorities of the people of Ontario, including keeping energy prices down.

I’ll have more to say at second reading of the bill.