On February 22, 2024, the…

On February 22, 2024, the Ontario government introduced Bill 165, legislation to overturn the December 21, 2023 decision and order of the Ontario Energy Board (“OEB") Enbridge Gas Inc. Application for 2024 Rates – Phase 1, EB-2022-0200 (“the OEB decision”). The OEB is an independent and non-partisan body that acts in the interest of Ontario energy customers and the public. The OEB decision ended the “revenue horizon model,” a subsidy for new gas connections paid for by Ontario consumers through their gas bills. In response, the government introduced Bill 165. Section 36.0.01 of the Bill has the effect of overturning the OEB decision and reinstating the subsidy for new connections.

In addition to the affordability impact that this decision will have on Ontario gas customers, I am concerned by the impact Bill 165 may have on the environment. As noted in the OEB’s decision, Bill 165 has the effect of subsidizing natural (methane) gas beyond the period in which it is an economically viable home heating source. This poses a serious risk to the environment because it will have the effect of encouraging housing developers to include gas heating even when it is not economically sensible to do so. Natural (methane) gas is responsible for a very large share of Ontario's greenhouse gas emissions, which directly contribute to climate change.

Climate change has enormous consequences for human suffering through drought, extreme heat, flooding, loss of food source habitats such as fisheries, crop yield reductions, increase of extreme weather such as hurricanes, and increased forest fires.

Second, I am concerned that the Province is failing to conduct adequate public consultations in accordance with their duties under the Environmental Bill of Rights. When consulting the public through the Environmental Registry of Ontario in ERO 019-8307, the Province described Bill 165 as having “no environmental impacts.” These statements indicate the Province has either failed to consider the Bill’s environmental impacts properly or intentionally misled the public during the consultation process.

This would not be the first time in recent memory the government has neglected these duties. Recent reports from the Auditor General of Ontario's Office have highlighted concerns with government decision making when the stated goal has been to build housing.

For example, the Auditor Generals' Office’s "Special Report on Changes to the Greenbelt", found the removal of sites from the greenbelt could ultimately have increased the value of land for the owners of 15 sites by $8.3 billion, and that the removal of those sites was not required to meet the government’s housing objectives.

In addition, in the AG's December 2023 report "Operation of the Environmental Bill of Rights - 1993", the AG found that “the Ontario government failed to meaningfully follow the [Environmental Bill of Rights] Act when it made sweeping legislative and regulatory changes to meet its housing supply goals”.

This legislation would facilitate the lock in of expensive and underused infrastructure that contributes to climate change and harms human health. It would encourage this even while clean and affordable electric alternatives are being deployed across the globe.