Discussion · Private Members' Business
William Stevenson Conservative
“I want the House to send this bill to committee. It gives businesses a tax credit to turn their waste heat into electricity. This helps the environment, saves energy, and strengthens our economy. I also want the government to bring back the search and rescue dog program in Banff.”
“Madam Speaker, I appreciate my colleague from Calgary Centre’s putting forward Bill C-269 to address a gap in the system. I knew the member long before I was elected last year, so I know he is deliberate when he addresses a problem. When first notified, I was in disbelief that there was not already a capital cost allowance, CCA, group to address this issue. As a CPA in public practice, I spent a fair amount of time scrolling the details of different classes of capital costs to see where specific pieces of equipment fell for my clients, so I am glad this bill would address the gap in today’s legislation. For a couple of generations now, the tax law has not been about calculating a tax bill; rather it has been about changing human behaviour. Rules have been installed to penalize certain actions and reward others. Now, there are incentives either way to change how society behaves. In so many of the current government’s pieces of legislation, there are unintended consequences from the bills, but I believe that Bill C-269 would very much address the problem correctly. This legislation would encourage industries to have green practices, not by changing their main industry but by dealing with by-products of their process. Therefore, the legislation would still encourage a good practice, not by punitive actions that could end an industry but by encouraging a practice of using its heat by-products to create power. In Yellowhead, I have a long list of industries that could be a good fit for this program, including the Mondi pulp plant, the Amrize cement plant in Exshaw, as well as the forest industry and oil and gas industry, all in my riding. While these industries represent important opportunities for their workers and communities across Yellowhead, I also want to bring attention to an issue that has raised serious concern among my constituents. While back at home last weekend, I heard from countless constituents about the Liberal government’s decision to cut the search and rescue dog program in Banff. This program saves lives. Since being made aware of the issue just over a week ago, my petition has gathered close to 10,000 signatures in five days and my office has received hundreds of emails. Last Friday, we sent a letter to the environment minister and the Parks Canada CEO, and we are awaiting their responses. The government needs to fix a problem it created and reinstate the rescue dog program in Banff. I do not think I have ever had as many media emails or interviews as I have had in the last week about this issue. I want to thank the local, national and international media for helping to bring this to people’s attention to correct the issue. I recognize that this is not the issue we are speaking to today, but I did not want to miss the opportunity to tie that in with the safety of our parks. Bill C-269 is a practical piece of legislation that seems common sense to me and deserves the attention of the House. This is about making better use of resources we already have, reducing waste, strengthening our economy and creating opportunities for Canadian businesses. In simple terms, this bill would give Canadian businesses an incentive to recover energy that would otherwise be lost, and put that energy to productive use. This is an obvious, easy choice for a government that seems to have a hard time keeping its environmental commitments. I represent a large rural riding where people understand the importance of getting the most out of every resource. In communities back home, our economy is built on people who work hard, invest in the businesses and make productive use of the resources around them. A forestry operation cannot afford to waste valuable resources, a mine company cannot operate without reliable power and a manufacturer has to watch its operating costs. These are not foreign economic concepts for the people I represent; they are everyday realities. That is why I believe that Bill C-269 deserves the House’s support. Many industries produce substantial amounts of heat as part of their normal operation. I think about a lumber mill, manufacturing facility, processing plant or anything in the energy sector. These facilities use significant amounts of energy to work the machinery, process materials and produce the goods that Canadians and the international markets depend on. During those processes, a huge amount of heat is produced. Some of the heat is useful, but most of it is lost. That heat represents energy that has already been paid for, energy that has already been produced and energy that could be put to another use. Waste heat to power technology allows businesses to capture some of that heat and convert it into electricity. The technology is commercially available. It can be installed at existing facilities, and the electricity can be used on site or, in some situations, put back into the grid. We are not talking about building an entire new power plant. We are talking about making an existing operation more efficient. This opportunity is particularly relevant in Alberta. We have an economy that relies heavily on natural resources in industry. These businesses are essential to our provincial economy and benefit Canada as a whole. They also represent opportunities to recover energy that might otherwise be lost. Our energy industry has invested heavily in technology, innovation and operational efficiency. Companies are continually looking for ways to produce more with fewer inputs, improve the environmental performance and reduce operating costs. Waste heat recovery is another step in that direction. It is important to recognize that it is not simply an Alberta issue. This is a national economic opportunity. I also want to speak about the tax credit itself. This is where I think the bill takes a very practical approach. Canada already has investment tax credits that support clean electricity technologies, including wind, solar and hydro. Bill C-269 proposes to extend an incentive to qualifying equipment that recovers industrial heat and converts it to electricity. The proposed tax credit would be 30% of eligible capital costs. Something that is very important to me is that it would be non-refundable, which means it is a tax credit that eligible businesses could use against tax they owe. It is not a cheque from the government, and it is not an unconditional grant. The important point is that the business is still investing in its own capital. It is still taking responsibility for the project, and it is still making decisions based on its own operations and commercial needs. We should be encouraging that type of private sector investment. The economics have to work. Equipment has to meet the requirements, and businesses have to make sound investment decisions. Government should establish a reasonable framework and allow businesses to determine where the opportunities exist. This is a matter of Canadian competitiveness. Canadian companies should not be placed at a disadvantage simply because our tax system fails to recognize an opportunity that other jurisdictions are encouraging. We should want investment to happen here. We should want Canadian workers installing the equipment, Canadian companies supplying the technology and Canadian businesses benefiting from the electricity. We should want the economic activity and tax revenue that comes with a stronger industrial sector in Canada. We should be doing everything reasonable to encourage innovation and investment, rather than creating additional obstacles for the businesses that support our economy. Ultimately, Bill C-269 is about common sense. It recognizes that we do not always need to build something new to produce more value. Sometimes, we need to make better use of what we already have. Canadians want practical solutions, not announcements of ambitious goals. We need to respect taxpayer money, and we need to create conditions for businesses and communities to succeed. For those reasons, I am pleased to support this legislation, and I encourage all members of the House to support sending Bill C-269 to committee for further study.”
Madam Speaker, I appreciate my colleague from Calgary Centre’s putting forward Bill C-269 to address a gap in the system. I knew the member long before I was elected last year, so I know he is deliberate when he addresses a problem. When first notified, I was in disbelief that there was not already a capital cost allowance, CCA, group to address this issue. As a CPA in public practice, I spent a fair amount of time scrolling the details of different classes of capital costs to see where specific pieces of equipment fell for my clients, so I am glad this bill would address the gap in today’s legislation. For a couple of generations now, the tax law has not been about calculating a tax bill; rather it has been about changing human behaviour. Rules have been installed to penalize certain actions and reward others. Now, there are incentives either way to change how society behaves. In so many of the current government’s pieces of legislation, there are unintended consequences from the bills, but I believe that Bill C-269 would very much address the problem correctly. This legislation would encourage industries to have green practices, not by changing their main industry but by dealing with by-products of their process. Therefore, the legislation would still encourage a good practice, not by punitive actions that could end an industry but by encouraging a practice of using its heat by-products to create power. In Yellowhead, I have a long list of industries that could be a good fit for this program, including the Mondi pulp plant, the Amrize cement plant in Exshaw, as well as the forest industry and oil and gas industry, all in my riding. While these industries represent important opportunities for their workers and communities across Yellowhead, I also want to bring attention to an issue that has raised serious concern among my constituents. While back at home last weekend, I heard from countless constituents about the Liberal government’s decision to cut the search and rescue dog program in Banff. This program saves lives. Since being made aware of the issue just over a week ago, my petition has gathered close to 10,000 signatures in five days and my office has received hundreds of emails. Last Friday, we sent a letter to the environment minister and the Parks Canada CEO, and we are awaiting their responses. The government needs to fix a problem it created and reinstate the rescue dog program in Banff. I do not think I have ever had as many media emails or interviews as I have had in the last week about this issue. I want to thank the local, national and international media for helping to bring this to people’s attention to correct the issue. I recognize that this is not the issue we are speaking to today, but I did not want to miss the opportunity to tie that in with the safety of our parks. Bill C-269 is a practical piece of legislation that seems common sense to me and deserves the attention of the House. This is about making better use of resources we already have, reducing waste, strengthening our economy and creating opportunities for Canadian businesses. In simple terms, this bill would give Canadian businesses an incentive to recover energy that would otherwise be lost, and put that energy to productive use. This is an obvious, easy choice for a government that seems to have a hard time keeping its environmental commitments. I represent a large rural riding where people understand the importance of getting the most out of every resource. In communities back home, our economy is built on people who work hard, invest in the businesses and make productive use of the resources around them. A forestry operation cannot afford to waste valuable resources, a mine company cannot operate without reliable power and a manufacturer has to watch its operating costs. These are not foreign economic concepts for the people I represent; they are everyday realities. That is why I believe that Bill C-269 deserves the House’s support. Many industries produce substantial amounts of heat as part of their normal operation. I think about a lumber mill, manufacturing facility, processing plant or anything in the energy sector. These facilities use significant amounts of energy to work the machinery, process materials and produce the goods that Canadians and the international markets depend on. During those processes, a huge amount of heat is produced. Some of the heat is useful, but most of it is lost. That heat represents energy that has already been paid for, energy that has already been produced and energy that could be put to another use. Waste heat to power technology allows businesses to capture some of that heat and convert it into electricity. The technology is commercially available. It can be installed at existing facilities, and the electricity can be used on site or, in some situations, put back into the grid. We are not talking about building an entire new power plant. We are talking about making an existing operation more efficient. This opportunity is particularly relevant in Alberta. We have an economy that relies heavily on natural resources in industry. These businesses are essential to our provincial economy and benefit Canada as a whole. They also represent opportunities to recover energy that might otherwise be lost. Our energy industry has invested heavily in technology, innovation and operational efficiency. Companies are continually looking for ways to produce more with fewer inputs, improve the environmental performance and reduce operating costs. Waste heat recovery is another step in that direction. It is important to recognize that it is not simply an Alberta issue. This is a national economic opportunity. I also want to speak about the tax credit itself. This is where I think the bill takes a very practical approach. Canada already has investment tax credits that support clean electricity technologies, including wind, solar and hydro. Bill C-269 proposes to extend an incentive to qualifying equipment that recovers industrial heat and converts it to electricity. The proposed tax credit would be 30% of eligible capital costs. Something that is very important to me is that it would be non-refundable, which means it is a tax credit that eligible businesses could use against tax they owe. It is not a cheque from the government, and it is not an unconditional grant. The important point is that the business is still investing in its own capital. It is still taking responsibility for the project, and it is still making decisions based on its own operations and commercial needs. We should be encouraging that type of private sector investment. The economics have to work. Equipment has to meet the requirements, and businesses have to make sound investment decisions. Government should establish a reasonable framework and allow businesses to determine where the opportunities exist. This is a matter of Canadian competitiveness. Canadian companies should not be placed at a disadvantage simply because our tax system fails to recognize an opportunity that other jurisdictions are encouraging. We should want investment to happen here. We should want Canadian workers installing the equipment, Canadian companies supplying the technology and Canadian businesses benefiting from the electricity. We should want the economic activity and tax revenue that comes with a stronger industrial sector in Canada. We should be doing everything reasonable to encourage innovation and investment, rather than creating additional obstacles for the businesses that support our economy. Ultimately, Bill C-269 is about common sense. It recognizes that we do not always need to build something new to produce more value. Sometimes, we need to make better use of what we already have. Canadians want practical solutions, not announcements of ambitious goals. We need to respect taxpayer money, and we need to create conditions for businesses and communities to succeed. For those reasons, I am pleased to support this legislation, and I encourage all members of the House to support sending Bill C-269 to committee for further study.