Bill to Establish a National Strategy to End Energy Poverty

Moved second reading of Bill S-251, An Act to establish a national strategy to end energy poverty.

She said: Honourable senators, as we gather on this gorgeous day with a cool crispness in the air, here in the Senate Chamber on the unceded and unsurrendered lands of the Anishinaabe Algonquin Nation, I rise to draw your attention to a matter of national importance: the matter of energy poverty.

According to Dr. Fatih Birol, Executive Director of the International Energy Agency:

The global energy system faces three major strategic challenges in the coming decades: the growing risk of disruptions to energy supply; the threat of environmental damage caused by energy production and use; and persistent energy poverty. . . .

Honourable colleagues, globally Canada is one of the largest energy producers and one of the largest consumers of energy. A cold climate with warm summers in southern latitudes, which are getting hotter, and a large geography with a dispersed population — historically, we have had comparatively affordable energy prices, even if we’ve seen that change more recently — and our relatively high standards of living all contribute to Canada’s high energy intensity.

Canada’s total per capita energy consumption is four times the global average, and we are in the top dozen countries globally on this measure. In other words, Canadians use a lot of energy.

Prime Minister Carney expressed his government’s vision for energy in this way: “We will make Canada an energy superpower, drive down our emissions and diversify our export markets.”

Prime Minister Carney’s promise is to make Canada an energy superpower in both conventional and clean energy. This promise on energy is a central plank in the government’s plan to grow Canada’s economy and ensure a good life for Canadians.

Finance Minister Champagne said here in our chamber last week, “We are building a stronger, more independent and more affordable Canada.”

Honourable colleagues, I’m sure we all want to see our country and our fellow citizens prosper. We can get behind the promise of inclusive and sustainable economic growth.

We all agree that the health and well-being of Canadians is of paramount importance. We know that citizens having opportunities for meaningful participation in our society and economy is key to a healthy democracy and that ensuring affordability is central to these outcomes and to the fundamental social contract between the government and Canadians of all ages — those in rural and those in urban communities from coast to coast to coast.

However, honourable colleagues, we also know that the antithesis of prosperity is poverty. And that poverty is an enormous burden for the people experiencing it and an enormous responsibility for those of us entrusted with ensuring we have in place the strategies, policies, programs and accountabilities to address it effectively.

So, colleagues, as we grow a stronger economy for Canada, it is important to ensure that the benefits of the growth and its intended prosperity are shared by all Canadians.

Honourable senators, energy poverty is one hidden — literally behind closed doors — not widely understood yet insidious and extensively experienced form of poverty in Canada.

Most people think of energy poverty as a problem experienced in the Global South, and it is.

Colleagues, I became aware of energy poverty when I started my international development career in Botswana 46 years ago. I was the Rural Industrial Officer for the Southern District of Botswana, and I was based in Kanye.

At that time and in that place, energy poverty was experienced by the majority of the population, and it was largely due to a lack of electricity and the practice of cooking using charcoal and wood.

Energy poverty in rural Botswana in the 1980s adversely affected access to education, access to health care, health outcomes and economic participation. I gave birth there, to my daughter Lindi, in a hospital without electricity. Fortunately, there were no complications.

Over recent decades, there have been great strides made in addressing energy poverty worldwide, yet today 1 in 12 people on earth still lack basic access to electricity, mostly in sub-Saharan Africa and South Asia, and 1 in 4 people are still using wood, charcoal, crop waste and animal dung for cooking, with its associated adverse health impacts.

Canada has signed on to the United Nations Agenda 2030. Its Sustainable Development Goal 7 is “Ensure access to affordable, reliable, sustainable and modern energy for all.”

Even though this goal largely applies to the Global South, where energy poverty is still experienced by very large numbers of people, it also applies to industrialized countries like Canada.

So, colleagues, what does energy poverty look like in Canada? In Canada, it is estimated that 2 million households experience energy poverty. With an average household size of 2.4 in Canada, that means an estimated 4,800,000 Canadians are living in a situation of energy poverty. That’s what I meant: hidden behind closed doors.

While there are a variety of indicators of energy poverty, a common one used by Efficiency Canada is when a household spends more than 6% of take-home income on home energy use.

Energy poverty is experienced by people in every province and territory of Canada, with Atlantic Canadians experiencing the highest percentages and people in Ontario experiencing it in the largest numbers.

Over the past four years, in my home province of Nova Scotia, the number of households experiencing energy poverty has ranged from 31% to 48%. That’s a lot of households.

The high cost and usage levels of furnace oil are major contributing factors to energy poverty in Nova Scotia.

Dr. Mylène Riva, Canada Research Chair in Housing, Community, and Health at McGill University, is the lead author on the article “Energy poverty in Canada: Prevalence, social and spatial distribution, and implications for research and policy.”

According to Dr. Riva:

Energy poverty happens when “a household experiences inadequate levels of essential energy services in the home” . . . where energy services are those functions performed using energy, such as heating, cooling, lighting, cooking, washing, etc. While energy poverty relates to household factors such as low income, occupancy, and the needs and practices of household members, it is also caused by factors external to the household including the energy inefficiency of the dwelling and of appliances, the type of energy supply, and its cost. The capital expenditure needed to improve the energy efficiency of the dwelling is what distinguishes energy poverty from poverty: while increased incomes can lift households out of poverty, it may not lift them out of energy poverty if they still cannot afford, or have no control over (in the case of renters), improving the energy efficiency of their dwelling. Thus, while related, energy poverty is not just a problem of low income.

Having said that, of course, lower-income households are disproportionately impacted by energy poverty.

Energy poverty is significantly higher in rural areas, with older adults and those living alone more at risk.

Research indicates that energy poverty in Canada varies by gender. It is more common among newcomers, renters and single-parent families.

The rate of energy poverty for First Nations households on-reserve is more than twice the Canadian average. Indigenous communities, particularly remote and northern communities, can face a combination of the following: higher energy costs because fuel may have to be transported over long distances; older or inefficient housing causing increased heating requirements; housing needing major repairs, which is associated with substantially higher energy poverty; lower household incomes and higher overall costs of living; and greater reliance on diesel generation in some remote communities.

Honourable colleagues, energy poverty in Canada is having serious deleterious effects on our fellow citizens. It can have a negative impact on physical and mental health, with people facing tough choices over heating and cooling their homes or buying groceries and medications. It can also limit an individual or community’s ability to pursue economic opportunities and take part more generally in society.

Colleagues, energy poverty sits at the intersection of affordability, housing, health, energy efficiency, economic security, social inclusion and reconciliation — all matters of importance to Canadians.

Therefore, honourable senators, I rise today to introduce Bill S-251, an act to establish a national strategy to end energy poverty.

Bill S-251 is a very straightforward bill. It has six pages, which I promise not to read to you, but I will speak to its main components this evening.

The bill defines energy poverty as:

. . . a condition in which a household is unable or at significant risk of being unable to access the energy services required . . . to maintain adequate health, comfort, safety and participation in society.

This includes economic participation.

Bill S-251 will require the Government of Canada to develop a national strategy to end energy poverty, significantly reduce energy poverty in the near term and ultimately eliminate it.

The minister responsible is the Minister of the Environment, Climate Change and Nature. This is because the Office of Energy Efficiency was moved from Natural Resources Canada to Environment and Climate Change Canada, effective July 30, if people were wondering about that.

Bill S-251 calls for establishing a national framework for understanding, measuring and addressing energy poverty.

It calls for bringing together federal departments, other orders of government, Indigenous governing bodies, experts, service providers and people with lived experience, with the minister establishing an advisory council to advise on the development, implementation and evaluation of the strategy.

The bill establishes accountability and transparency requirements, including — and this is something all of us are always looking for — regular reporting to Parliament on the strategy’s implementation and effectiveness.

Those are the essential elements of the bill.

Honourable colleagues, I am very happy to report that Member of Parliament Bruce Fanjoy will be the House of Commons sponsor of Bill S-251. We have been working closely for the past few months and have been greatly assisted in our efforts by Efficiency Canada.

We have also been fortunate to have the support of my Director of Parliamentary Affairs, Sarah Thomas, and also David Groves, Senate of Canada Parliamentary Counsel, from the Office of the Law Clerk and Parliamentary Counsel.

Earlier today, both MP Fanjoy and I spoke of our intentions to introduce Bill S-251 at the Canada Home Energy Justice Conference at Carleton University.

The conference brings together housing providers, utilities, Indigenous organizations, community leaders, policy-makers, business leaders, entrepreneurs, researchers and others focused on finding ways to end energy poverty in Canada once and for all.

And now here we are in the Senate Chamber, shining a light on the issue of energy poverty in Canada and introducing Bill S-251, a bill designed to address this often hidden form of poverty.

You might ask, though, “Doesn’t the federal government already have policies and programs in place to deal with energy poverty?” The answer is a simple yes. The government does have some related policy frameworks and some important programs.

Last week, Finance Minister Champagne was in our chamber, as you will recall, for the Senate Committee of the Whole study on Bill C-38. While with us, Minister Champagne made reference to government measures related to affordability — you may recall this — fitting into an affordability pyramid. Remember that? That pyramid encompassed housing, food and transportation fuel. The government has not specifically addressed energy poverty as defined in Bill S-251 in this affordability pyramid, but it would certainly fit well in there.

The government’s new strategy, A National Strategy for an Electrified Canadian Economy, is built on the idea that electricity can be a cheaper energy source than fossil fuels. While unveiling the strategy, Prime Minister Carney said that the goal is to lower energy costs for 70% of Canadian households.

Honourable colleagues, lowering energy costs is critical to addressing energy poverty. A well-informed and well-designed strategy to end energy poverty, such as the one called for in Bill S-251, would ensure that people and communities experiencing energy poverty would be prioritized and included in that 70% target.

Colleagues, Canada co-hosted the 11th Annual Global Conference on Energy Efficiency in Montreal in June, which resulted in the Montreal Action Plan. While addressing the immediate disruptions in conventional energy supply, of course, the Montreal Action Plan reaffirmed the commitment to collectively doubling the global average annual rate of energy efficiency improvements by 2030, and conference participants pledged to exploit the full potential of energy efficiency to build long-term resilience against future energy shocks.

The Montreal Action Plan states:

We commit to work collectively to help all people access the benefits of energy, including low-income households and other vulnerable groups, by implementing energy efficiency policies to alleviate hardship in the short-term and build long-term resilience.

At the Montreal conference, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, joined the International Energy Agency, or IEA, Ministerial Advisory Panel on Electricity Affordability. The panel is charged with identifying key policy solutions and key actions to strengthen affordable electricity globally — including in Canada — specifically for vulnerable populations.

Speaking at that same conference, the Honourable Julie Dabrusin, Minister of the Environment, Climate Change and Nature, said:

Energy efficiency is one of the most practical tools we have to lower costs for Canadians, and it does so while cutting emissions at the same time. That is the spirit of this conference: turning efficiency into lower bills, stronger competitiveness and a more secure energy future. Canada is ready to keep leading it, with partners here at home and around the world.

Honourable senators, the Montreal Action Plan, the IEA panel role that Minister Hodgson has taken on related to electricity affordability and the statement by Minister Dabrusin linking energy efficiency to energy affordability are well aligned with the purpose of Bill S-251, An Act to establish a national strategy to end energy poverty.

Colleagues, one recent legislative example of government policy priorities is Bill S-4, An Act to amend the Energy Efficiency Act. It was while studying this bill at the Senate Standing Committee on Energy, the Environment and Natural Resources that my awareness of the potential uneven impacts of improved energy efficiency measures was heightened. It was really my aha moment, actually.

Bill S-4 is an important piece of legislation modernizing Canada’s Energy Efficiency Act, updating energy efficiency rules to reflect modern technologies, support innovation, strengthen enforcement and encourage the responsible use of energy.

While the bill is not a direct affordability measure, one of its clear and stated intentions is to improve affordability, and it will for many Canadians. However, in committee we heard from a number of witnesses, including the First Nations Housing Professionals Association, that the bill does not fully address the capacity to implement and maintain these new technologies. Housing conditions, workforce readiness and funding are also concerns there.

Tabitha Eneas, Chair of the First Nations Housing Professionals Association, said at the committee meeting:

First Nations communities are managing multiple overlapping pressures: aging housing stock, overcrowding, deferred maintenance, rising energy costs, rising construction costs, limited funding and limited capacity, and this all creates energy poverty.

At the same time, communities are being asked to transition to higher energy standards. This creates tension. . . .

The Senate Energy Committee included observations in its report on Bill S-4 that addressed the community readiness gap and acknowledged that improving energy efficiency standards alone will not completely address the issue of energy poverty and could even compound it. It called on the government to address energy poverty by implementing energy efficiency support programs to advance the uptake of energy-efficient appliances for low-income households.

Colleagues, it’s that age-old conundrum where people and communities need to have the resources — they need to have the money — to make these investments in order to be able to save money over the long term. We all know that problem.

Yes, colleagues, the government has a number of programs to support Canadians in accessing energy efficiency technology and energy-saving upgrades. These are complementary to and are often implemented in coordination with programs of the provinces, territories, municipalities, Indigenous governments and organizations and utilities.

I will not list them all, but I will mention that the latest announcement on Friday, October 2 — just last week — of an investment of $66.3 million through the Federation of Canadian Municipalities’ Green Municipal Fund’s Community Efficiency Financing and Sustainable Affordable Housing initiatives for 162 projects across Canada will help with efficiency, affordability and resilience. That followed the government’s announcement at the Montreal conference in June of $500 million, including $300 million in federal funds to expand the Canada Greener Homes Affordability Program. We hear there may be more big announcements this week.

These government programs and policies are absolutely critical, and the point we are trying to make with the introduction of Bill S-251 is that what Canada needs is a comprehensive and coherent strategy to address and ultimately end energy poverty in Canada. The strongest national approaches to energy poverty that we see combine a clear definition of energy poverty, a robust measurement framework, targeted household and community supports, energy efficiency improvements and ongoing monitoring of progress.

Countries that have made energy poverty a sustained, explicit policy priority have generally moved beyond one-off assistance programs toward a combination of affordability measures, energy efficiency improvements, better data, measurable impacts and accountability — exactly what is proposed in Bill S-251. There are well-advanced experiences to learn from in the United Kingdom, the European Union, New Zealand and others.

Honourable colleagues, as I move toward concluding my remarks, I invite each of you to look into the issue of energy poverty in your regions and in your communities, because it is there, even if it is hidden. Let me know if you need any help because we’re here to help you find that out.

As every one of us knows, it is our special responsibility as senators to know about and represent the interests of people in our communities, particularly those who may not have the loudest voices. While we would like to move Bill S-251 to committee as soon as is reasonable, I’d like to invite anyone who is interested to participate in the debate on the bill.

I have spoken with Senator Housakos and Senator Martin, Leader and Deputy Leader of the Opposition in the Senate, to help identify a critic for Bill S-251. I know they, their caucus mates and all senators care about the issues of energy affordability and access, which are so central to this bill.

Bill S-251, An Act to establish a national strategy to end energy poverty is a timely bill as Canada seeks to build a more prosperous, secure and resilient nation.

Bill S-251 makes lasting energy affordability a national priority.

Every reduction in energy poverty is a person with more room in their household budget, less stress, better health, a safer home and improved opportunities to participate in and contribute to their community and Canada’s economy.

By calling for the development and implementation of a national strategy to end energy poverty, Bill S-251 is a move toward greater prosperity for all Canadians and for a healthier and more sustainable environment and a stronger Canada overall.

This is what a true energy superpower looks like. Thank you for your attention to this matter of national importance.

Honourable colleagues, I look forward to working with you to make sure that Bill S-251 moves forward.

Canadians are counting on us.

Wela’lioq. Thank you.