Shannon Stubbs

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Madam Speaker, I am pleased to support Bill C-269, the heat recovery tax credit act, introduced by my Conservative colleague the member for Calgary Centre. At its core, the bill is about common sense. It is about making better use of energy that Canada already produces, strengthening Canadian industries and creating the conditions for businesses to invest, innovate and grow. It does not create another government bureaucracy or impose new regulations on Canadians. It encourages private sector investment and gives Canadian businesses an opportunity to turn otherwise wasted energy into an economic advantage. That is the kind of practical, results-driven approach Canada needs. The heat recovery tax credit act proposes a 30% non-refundable investment tax credit for equipment that captures waste heat from industrial processes and converts it into electricity. Why is my colleague’s proposal important? Electricity demand is growing. Steel mills, cement plants, chemical facilities, pulp and paper operations and refineries all use significant amounts of energy to generate heat. Much of that heat escapes through industrial processes and is lost. Estimates suggest that between 30% and 50% of heat generated through industrial processes may be wasted. That is energy Canadian businesses have already paid to produce but cannot fully put to productive use. The technology exists to recover some of that lost heat and convert it into electricity. It is proven, commercially available and already in use, but upfront costs can discourage investment and uptake, particularly when the tech falls outside of a company’s core operations. That means projects that could lower operating costs, improve efficiency and generate electricity may never proceed. Bill C-269 would help close that gap by encouraging businesses to invest their own capital in technology that delivers measurable economic and environmental benefits. It is about unlocking investment, not putting government in charge of it. As the Conservative shadow minister for infrastructure, I certainly recognize how critical reliable, affordable electricity is to Canadians’ everyday lives and, in a major way, for Canada’s economic future. Canada needs more power. Advanced manufacturing, artificial intelligence, data centres, population growth and, of course, new industrial development all increase demand for electricity. Canada’s ability to attract investment, develop natural resources, build infrastructure and compete internationally depends on reliable, affordable energy and electricity. The question is not whether more electricity is needed but whether legislators and policy-makers will create the conditions for the private sector to produce and use it. Canada needs major energy and infrastructure projects, but those projects require significant investment, complex approvals and years of planning and construction. Opportunities to generate additional electricity from infrastructure projects already built and operating cannot be overlooked. Waste heat recovery can be installed at existing industrial facilities without requiring additional fuel. Some systems can be deployed in as little as 12 to 24 months, rather than waiting years for new generating capacity. That means more efficient infrastructure, additional reliable electricity and the value add of potentially lowering operating costs for Canadian employers. Depending on the facility, electricity generated through waste heat recovery can be used on site or supplied to the grid to strengthen local power supply. Canadians should not be forced to choose between a strong economy and better environmental outcomes. For too long, Liberal governments have approached environmental policy through higher taxes, more regulations and additional costs on the industries and workers that drive Canada’s economy. Conservatives believe in innovation, Canadian ingenuity and practical solutions that deliver results. When a manufacturer can recover energy it would otherwise waste, lower electricity costs, improve productivity and reduce emissions at the same time, that benefits businesses, workers and the environment. Waste heat recovery can generate electricity without additional fuel or additional emissions from the recovery process. It allows businesses to do more with the resources they already have and use. There should not be limits on what Canadian innovation can accomplish when industry deploys productive uses for energy that would otherwise go to waste. In Lakeland, the County of Vermilion River has demonstrated how natural gas recovered from oil field operations can be put to productive use instead of being vented or flared. That project uses a different technology, but it demonstrates the same principle. Recovering wasted energy can create economic value and deliver environmental benefits. Bill C-269 would build on that principle by encouraging investment in equipment that converts industrial waste heat into electricity. More than ever, competitiveness must be at the centre of this discussion. Canadian businesses compete internationally every day for customers, capital, contracts and jobs. When manufacturers decide where to expand, they look at energy costs, taxes, regulations and the overall investment environment. When Canadian companies face higher costs and more barriers than their competitors, Canadian workers ultimately pay the price. Investment opportunities are lost, projects are delayed, and jobs and talent move elsewhere. Meanwhile, other countries encourage businesses to adopt industrial efficiency technologies like my colleague outlines here. The U.S. provides investment tax incentives for waste heat recovery. American facilities have used these systems to generate electricity from energy that would otherwise be lost. Canada should not stand on the sidelines while competitors create conditions that attract investment. Our manufacturers, resource sectors and workers deserve the opportunity to compete and succeed here at home. Bill C-269 would help address a gap in Canada’s tax system and encourage investment that might otherwise flow to competing jurisdictions. There is no doubt this legislation does not try to solve every challenge facing the energy system through another massive government program. Instead, it is a targeted measure built around private sector investment designed to achieve real outcomes. Businesses must make qualifying investments in equipment that produces tangible results. They make the decisions, choose the technology and take responsibility for the projects. Government’s role should be to create the conditions for investment and success, not to stand in the way of Canadians who want to invest, innovate, build and work. Canada already uses investment tax credits to encourage other clean energy technologies, like solar, wind and hydroelectric power. Waste heat recovery has not received the same targeted treatment despite its potential to generate electricity from energy already available. If the objective is more reliable electricity, greater efficiency and lower emissions, this technology deserves consideration too, and the opportunities extend across the country. In Alberta, waste heat recovery could support refining, petrochemicals and industrial manufacturing. In Ontario and Quebec, it could benefit steel, cement and chemical production. In British Columbia and Atlantic Canada, it could help forestry and pulp and paper operations. Across the Prairies, it could support food processing and other energy-intensive industries. This is not a proposal limited to one province or one sector. It has applications across Canadian industry, from coast to coast to coast. Canada faces a serious productivity challenge. For too long, productivity growth has lagged behind that of our major competitors. Businesses need confidence to invest in equipment, adopt technology, expand operations and create opportunities for workers. That confidence does not come from government announcements or promises. It comes from affordable energy, predictable rules, a competitive investment environment and the ability to get projects built. Sometimes that requires major reforms like cutting red tape, removing regulatory barriers and accelerating approvals, and sometimes it requires a targeted change that unlocks private capital for opportunities already within reach. That is what Bill C-269 would do. Instead of allowing valuable energy to go to waste, it would encourage businesses to put it to work. Instead of putting another burden on industry, it would create an incentive to invest. Instead of forcing a choice between economic growth and environmental improvement, it would support both. The impacts are clear: more electricity, lower operating costs, stronger productivity, reduced emissions, more competitive Canadian industries and more efficiency all around. Those are results Canada needs. Canada has abundant natural resources, world-class industries, innovative businesses and capable workers. What Canadians need are the conditions to put those strengths to work. Canada cannot tax and regulate its way into prosperity. A stronger economy cannot be built by making it harder and more expensive to invest and produce in Canada. Energy, investment and opportunities already available cannot be wasted. Bill C-269 is a practical opportunity to support Canadian industry, strengthen electricity supply and encourage innovation without unnecessary government intervention. I encourage members of Parliament everywhere to support it at second reading so the committee can hear from industry, examine the evidence and consider how this measure could support Canadian businesses and workers. Again, I want to thank my colleague from Calgary Centre, who has been concerned with ways to increase energy efficiency and productivity across the Canadian economy for years.