Natural Resources

The committee continued its study on Canada's electricity future, hearing from three witnesses: Luc Boivin, Mayor of Saguenay; Vittoria Bellissimo of the Canadian Renewable Energy Association; and Lorena Patterson of WaterPower Canada. The meeting opened with the election of Carol Anstey as vice-chair and discussion of a proposed short forestry-related study on European deforestation measures, with the clerk reporting that a translated report was moving through the publications office.

Luc Boivin described Saguenay as one of the few Quebec municipalities generating, harnessing and distributing its own electricity through Hydro-Jonquière, and argued for a complementary transformation that protects existing hydro sites while diversifying into wind, solar, tidal and many small power plants. He said development must be done in partnership with Indigenous nations and that local stakeholders know the land and social acceptability best, asking that federal tools such as the Canada Infrastructure Bank give communities more autonomy, that RCMs be considered the best option for diversifying medium and small power supply, and that communities be allowed to develop energy projects so the economic benefits flow back locally. He noted Saguenay's deepwater port and industrial port zone position it as a player in the northern corridor, and said that while energy affordability matters, labour shortages and immigration are currently the top concern for regional businesses.

Vittoria Bellissimo said Canada faces significant electricity demand growth and that wind, solar and storage are affordable, reliable and quickly deployable, citing Ontario's LT2 procurement, which selected 640 megawatts of eight-hour batteries instead of new natural gas. She said CanREA is tracking 26 gigawatts of procurements representing roughly $46 billion in investment, with up to $200 billion possible by the mid-2030s, and that up to 30% of capital expenditures could be spent on made-in-Canada components, potentially $100 billion in domestic manufacturing investment. She asked for simplified access to investment tax credits, accelerated transmission development, durable policy certainty, and a tailored suite of incentives for manufacturers and developers, and said she was bullish on reaching 35% electrification by 2035, though provinces like Alberta and Saskatchewan would have a harder time.

Lorena Patterson said hydro power provides more than half of Canada's electricity and supplies the storage, balancing and grid stability that let wind and solar operate efficiently, and that Canada will need $1 trillion to $2 trillion in electricity investment, with 160,000 megawatts of total capacity including 83,000 megawatts of hydro. She identified three barriers: uncertainty that future demand will materialize, financing tools that do not reflect hydro's intergenerational value, and regulatory uncertainty, recommending low-interest long-amortization loans, expanded loan guarantees, extending the clean electricity investment tax credit to 2040 or beyond, revisiting the EIFEL rules, and expanding Indigenous loan guarantee programs. She said the Fisheries Act's focus on individual fish creates huge reporting burdens and inconsistent regional application, asking for a hydro-specific regulation, permits within a year and exemptions for already-operating facilities, and said Bill C-39 is a step forward but not enough; she disagreed with Bellissimo's framing on accelerated capital cost allowances, saying hydro needs longer amortization while Bellissimo said her technologies already have a reasonable setup and mainly need speed.

In response to questioning, Boivin said he cannot set rates because Quebec's Régie de l'énergie governs them, but that access to energy blocks of 50 megawatts or more is essential to attracting industrial projects, and he urged parliamentarians to consider the need for foreign workers. Bellissimo said the Churchill Falls agreement shows the value of governments working together and that inter-regional planning would produce better deals for ratepayers, while Patterson said the agreement demonstrates what federal support can achieve and wants it repeated elsewhere. Patterson said ambiguous regulation has caused investors to decline or pause projects, and that Bill C-5 has not yet had time to demonstrate faster project construction in her industry.

Procedurally, the committee elected its opposition vice-chair and discussed, without a formal vote, a Bloc proposal to add up to two meetings on the impact of an incoming European deforestation standard on Canadian forestry markets, with members indicating general support and the motion expected at a later meeting.