Hon. Duncan Wilson: Honourable senators, I rise today to move third reading of Bill S-4, An Act to amend the Energy Efficiency Act.
I would like to first acknowledge all our colleagues on the Standing Senate Committee on Energy, the Environment and Natural Resources for their diligence in studying this bill. I also thank Senator David Wells as the critic and Senator Coyle and others whose amendments and observations have led to a thoughtful report.
[Translation]The committee held eight meetings on this bill. Testimony was given at five of these meetings by the government, industry, non‑governmental organizations and Indigenous groups, while the last three were spent on a clause-by-clause consideration of the bill. I’ll speak to the amendments adopted shortly.
First of all, I would like to briefly explain why this work is so important to me.
In my previous role at the Vancouver Fraser Port Authority, I worked on initiatives to reduce energy consumption across port operations. In collaboration with our partners, we found practical ways to cut consumption, which helped reduce costs for businesses while minimizing environmental impact.
This experience allowed me to see for myself that energy efficiency is not an abstract concept. It produces concrete results for businesses, communities and our environment.
I am leaning on those lessons as I consider this bill. Modern energy efficiency standards are essential to our energy security, to the fight against climate change and to a stronger and more competitive economy.
Colleagues, the bill before us reflects a painstaking effort to modernize a law that has not been overhauled since 1992. The amendments adopted in committee ensure that the law remains clear, focused and effective in today’s economy.
[English]Let me begin with clause 2. This amendment may appear technical, but it speaks directly to the purpose of the act. The amendment clarifies that new types of energy efficiency standards must relate only to energy efficiency or the responsible use of energy.
That clarity matters because Bill S-4 introduces new tools that will allow us to go beyond simply measuring how much energy a product uses. It will allow us to consider durability, performance, how products interact with the grid and how they contribute to reducing overall energy demand.
With that flexibility must come focus. The amendment ensures that, as we evolve our approach, we remain grounded in our core objective of using energy more efficiently and responsibly. It also underscores the flexibility needed to target energy and cost savings directly while maintaining a clear legislative focus.
Colleagues, I want to touch on the committee’s discussion about including commercial entities in Bill S-4. Doing so closes a simple but important loophole. Today, companies that import regulated products to sell in Canada must meet energy efficiency standards, while companies bringing them in for their own commercial use do not. This gap has driven up costs for Canadian equipment users and has created a pathway for underperforming equipment to enter local markets.
During committee discussions, important questions were raised on this matter. Would this apply to equipment already in use? Would businesses need to replace what they already own or add new labels? The answer is no. This change only affects new, regulated products entering Canada.
The committee agreed that the amendments raised were not necessary because the entire Energy Efficiency Act is underpinned by trade and commerce authorities that only kick in at the border and have no bearing on businesses’ existing operations.
Bringing commercial entities under the act simply ensures that the same rules apply to everyone importing equipment. It protects Canadians from higher energy costs today, and it gives us a practical tool for the future, especially as we see growing energy demand from large users, like data centres.
[Translation]I will now talk about the amendments to clauses 18 and 19.
The wording of these amendments is straightforward, but their scope is broad. Broadening the wording by replacing “Emerging Energy Sources” with “Renewable or Emerging Energy Sources” in Part II of the act reflects today’s reality. Technologies such as wind and solar power are no longer emerging energy sources. They are established and reliable sources of energy and promoting them is an integral part of the responsible use of energy for the future.
Because this is such an important speech, today, I am wearing a new tie with sailboats on it to symbolize renewable energy.
This change — not my new tie, but the inclusion of renewable energy — sends a strong message. It reflects the reality of the current energy system in which renewable energy is no longer an ambition for the future but a well-established component of Canada’s energy mix. At the same time, it leaves the door open. It recognizes that both renewable and non-renewable energy sources are essential to meeting the country’s diverse energy needs.
The reasoned amendments adopted in committee do not change the focus of the bill; they strengthen it. They clarify the bill’s purpose and ensure that the legislation reflects the energy systems of today and those we will build in the future.
Honourable senators, besides examining these amendments, it is worth taking a step back to recall what this bill aims to achieve.
The Energy Efficiency Act has been one of Canada’s quiet successes, and energy efficiency remains one of the quickest and most cost-effective ways to reduce costs and strengthen our energy system. This is highlighted in an article published on May 7 in Canada’s National Observer, which features a petition presented in the House of Commons calling for energy efficiency to be made a national priority.
The article notes that investing in energy efficiency not only enhances our national energy sovereignty but also provides consumers and businesses with greater protection against the impact of geopolitical shocks and the resulting increase in energy prices. In addition, energy efficiency measures produce results much faster than other major infrastructure projects, which can take years to complete. Moreover, every province and every region of our country will benefit from improved energy efficiency.
The petition presented in the other place notes that, by improving national energy productivity, energy efficiency measures generate between $4 and $7 in additional GDP for every dollar invested.
[English]It bears reminding that the cheapest unit of energy is the one we don’t use. Bill S-4 provides a pathway to do just that.
Colleagues, for more than 30 years, the Energy Efficiency Act has set minimum efficiency standards for products across the economy. These standards have eliminated the least efficient products from the marketplace and helped drive innovation in appliances, equipment and industrial systems.
The results are significant. Since 1995, these regulations have delivered more than $110 billion in savings for Canadians. They have resulted in energy savings equivalent to powering every household in Canada — approximately 16 million households — for four entire years.
Energy savings through this act have also translated into the avoidance of more than 770 megatonnes of greenhouse gases. This would be the equivalent of taking all passenger vehicles in Canada off the road for an incredible 12 years.
But we no longer live in the world of 1992, when this act was born. Today, Canadians buy products online, supply chains are global and technologies are becoming more connected, intelligent and integrated.
The current act was not designed for that reality. Without modernization, we will fall behind on affordability, energy security and competitiveness. Bill S-4 addresses that gap.
It updates the act so it can keep pace with today’s economy. It ensures that products sold online meet the same standards as those sold in stores, protecting consumers and creating a level playing field for businesses.
It enables modern labelling so that Canadians can access reliable information whether they shop in person or online. It introduces more flexible tools, allowing new technologies to be tested, assessed and brought to market more quickly. And it strengthens enforcement so that rules are applied fairly, consistently and efficiently across the marketplace.
Honourable senators, these are practical changes; they are not theoretical, and they are not controversial.
In fact, they respond directly to calls from stakeholders. More than 90 organizations have supported the modernization of this act, recognizing that it is overdue. In fact, every witness before the committee agreed that this modernization is overdue. That includes consumer advocates and energy efficiency experts — they all understand one thing: Energy efficiency is one of the easiest and most cost-effective ways to reduce costs and strengthen our economy.
It also plays a critical role in Canada’s competitiveness. Modernizing this act will allow us to do the following: reduce energy costs for businesses, which frees up capital for investment and innovation; ensure Canadian markets are not undercut by inefficient imported products; use virtual and digital tools to make it easier and cheaper to confirm compliance; and support the electrification of Canada’s economy by better managing demand and modernizing our systems, as outlined in the government’s National Strategy for an Electrified Canadian Economy.
These are not abstract benefits. They translate directly into lower costs, stronger industries and greater economic resilience.
Colleagues, let me be clear about one more point: Passing this legislation does not in itself impose new requirements overnight. Many of the changes will require regulations developed through consultation with provinces, territories, industry, Indigenous partners and others. That process matters, and it is supported by stronger reporting and accountability going forward.
In addition, the amendments to clause 25 strengthen how we measure and report on progress. One amendment will require reporting that compares selected Canadian energy efficiency standards with those in other jurisdictions, including provinces, the United States, Mexico and, importantly, other relevant partners.
This amendment builds on work already under way and presents it in a more visible and accessible manner. It shines a light on how others are approaching these challenges, drawing from lessons learned and proven best practices, and it applies them in a Canadian context.
It is a practical approach — one that provides transparency to drive ongoing improvements, while staying focused and workable in a complex and evolving global marketplace.
[Translation]The final amendment changes the bill’s review schedule. This is a new requirement introduced by Bill S-4 into the Energy Efficiency Act. This amendment will now ensure that the first review of the act takes place five years after the bill comes into force, rather than 10 years. This new schedule will allow the government to respond faster to any problems arising from amendments made to the act under Bill S-4.
Honourable senators, there is no single solution to the challenges confronting Canada, especially the challenges of affordability, energy security, competitiveness and climate change. However, energy efficiency is one of the most practical and effective tools at our disposal. It reduces costs, strengthens systems and allows us to do more with what we already have.
Bill S-4 guarantees this tool’s effectiveness, not only in the past and present, but also in the future.
The amendments passed in the Senate ensure that its implementation is clear, precise and credible.
[English]In closing, colleagues, we are not starting from scratch with the bill before us. We are building on three decades of success. We are improving a proven framework. And we are ensuring it continues to deliver for Canadians in a modern, digital and increasingly competitive world. So let’s move forward with modernizing the Energy Efficiency Act. Doing so will ensure that Canada continues to lead by using energy wisely and by building a stronger economy in the process.
Thank you. Meegwetch.