Debates of March 9, 2015 (day 73)

Date
March
9
2015
Session
17th Assembly, 5th Session
Day
73
Speaker
Members Present
Hon. Glen Abernethy, Hon. Tom Beaulieu, Ms. Bisaro, Mr. Blake, Mr. Bouchard, Mr. Bromley, Mr. Dolynny, Mrs. Groenewegen, Mr. Hawkins, Hon. Jackie Jacobson, Hon. Jackson Lafferty, Hon. Bob McLeod, Hon. Robert McLeod, Mr. Menicoche, Hon. Michael Miltenberger, Mr. Moses, Mr. Nadli, Hon. David Ramsay, Mr. Yakeleya
Topics
Statements

That would be a big part of the mandate of the energy division within Public Works and Services.

Thank you, Mr. Beaulieu. Energy, operations expenditure summary. Mr. Bromley, sorry.

Thank you, Madam Chair. I just had one other area I wanted to explore. The science is showing that because of the fugitive, it’s called, and actual emissions of natural gas development from unconventional sources, that’s through exploration, development, decommissioning and transport, and conversion of natural gas into LNG and back and loading it onto trucks, unloading it from trucks and so on, makes LNG from unconventional sources as bad as coal in terms of greenhouse gas emissions. So I see that there’s a commitment here or a mandate for examining the potential for liquefied natural gas to provide a cleaner… That’s the last line in the activity description, “a cleaner and less expensive alternative to the use of imported diesel fuel.” Now, you see, natural gas is as bad as coal when it’s LNG from unconventional sources. That means it’s much dirtier than imported diesel fuel. So, would the Minister follow this up during the life of this Assembly and determine exactly what the situation is and report back to this House in an objective form on whether the science indicates that’s true? This is based on shorter distances of transport than we have in the Northwest Territories, much easier and better conditions for transfer without running into problems and losing more fugitive emissions to the atmosphere. So, would the Minister take that on?

Thank you, Mr. Bromley. Mr. Beaulieu.

Thank you, Madam Chair. We could look at the information, the science behind the production of liquefied natural gas, as a government and report back to the House on our findings.

Thank you, Mr. Beaulieu. Mr. Bromley.

Thank you, Madam Chair. I appreciate that from the Minister and I will look at the Hansard to see the specifics of that request because there are some areas where that wouldn’t apply, like conventional sources. I appreciate the Minister’s commitment. I guess I’m out of time. Thank you.

Thank you, Mr. Bromley. Energy, operations expenditure summary, $8.456 million.

Speaker: SOME HON. MEMBERS

Agreed.

Agreed. Thank you. Page 430, energy, grants, contributions and transfers, total grants and contributions, $4.488 million.

Speaker: SOME HON. MEMBERS

Agreed

Thank you, Madam Chair. I know in the community energy systems that we’ve looked at, we’ve had a couple of feasibility projects done in communities such as Lutselk’e and Whati, perhaps others, I think maybe Deline, where things are technically feasible but they’re very costly to do. We are in a point, as we’ve heard from the Minister, where fossil fuel prices are down right now. This was highlighted by the Diavik expert on wind. You see this with successful businesses, when prices drop and we know it’s going to be so likely for a period of time, maybe a year or two or three, who knows, they recognize it’s a real opportunity. I know this department has realized this for building up their fuel sources for communities and so on, so they are moving on this. What are we doing to recognize this opportunity in terms of our community energy systems that have been very expensive under the sort of prices we’ve had in the past for fossil fuels, which would be used in the building of those? Is the department realizing this situation is an opportunity to perhaps bring some of these projects forward in a more affordable way, given this window of opportunity that $50 oil has provided us? Thank you.

Thank you, Mr. Bromley. Deputy Minister Guy.

Speaker: MR. GUY

Thank you, Madam Chair. In terms of community energy systems, there has been some work done. There are some small-scale ones out there that we are aware of and we have participated in a couple. There is one in Behchoko that we’re part of. We have a number of small district heat systems throughout our own portfolio. We have a small one here in Yellowknife. We have the system in Fort Simpson. We also have a system that’s working very well in Hay River. We also have a system in Fort Smith where we provide heat to the community government. I think as the systems and technologies become more common place, we will see other opportunities out there to work with other communities that are interested in doing this. Also, in Fort McPherson, there is a system there that we are participating in. So we see that part of the work we’ll be doing going forward. Thank you, Madam Chair.

Thank you, Mr. Guy. Mr. Bromley.

I appreciate that. I think it’s a real opportunity for projects such as Lutselk’e and Whati who would provide both the power and the heating requirements for the community if it became affordable under the reduced fossil fuel prices we are enjoying currently.

Just on the Yellowknife liquefied natural gas plan feasibility study, this seems a bit bizarre to me, but again, I would ask the Minister perhaps include his earlier commitment to examine what the greenhouse gas emissions are for that liquid natural gas as part of that feasibility study. It would be a natural addition to that to make sure we are achieving all of our government roles. Thank you.

Thank you, Mr. Bromley. Minister Beaulieu.

Thank you, Madam Chair. We agreed to that, that we would look at the greenhouse gas emissions outlook for natural gas. We would look at all of the alternative energy systems, including biomass as well.

The one other I had was I was out with Premier McLeod when we erected the wind monitoring pole or tower out at Giant Mine. That’s been two or three years ago now. I suspect it’s been three years ago. Do we know what the findings have been there and do we have the wind resources for wind generation in the capital city? Thank you.

That is one of the things that, as a division, starting on April 1st, we will be following up on very soon into the creation of that division.

Getting ahead of myself, I guess. That’s all I had. Thanks.

Thank you, Mr. Bromley. Energy, grants, contributions and transfers, total grants and contributions, $4.488 million.

Speaker: SOME HON. MEMBERS

Agreed.

Energy, active positions, information item. Any questions?

Speaker: SOME HON. MEMBERS

Agreed.

Page 435, Technology Service Centre, operations expenditure summary, $1.535 million. Mr. Bromley.

Thank you, Madam Chair. I just had one question here. I know there’s so much expertise in this division, and I know the Minister is aware that we’re putting a Mackenzie Valley fibre optic line that’s meant to enhance the access to the Internet and opportunities for education and health and so on services. I wonder if I can get the perspective of this department.

First of all, has the department looked at that project? Are they providing advice on that project?

Thank you, Mr. Bromley. Minister Beaulieu.

Thank you, Madam Chair. I will have the director, Laurie Gault, respond to the Member.

Thank you, Minister Beaulieu. Ms. Gault.

Speaker: MS. GAULT

Thank you, Madam Chair. Yes, TSC had input into the planning process and some of the technical discussions. Currently it’s with the Department of Finance working through the implementation stage. We anticipate being brought back into conversation once we start to see what the connectivity needs of the communities that are coming on board to the fibre link are, and that way we’ll be able to leverage opportunities both with our existing network and the new facilities.

Thank you, Ms. Gault. Mr. Bromley.

Thanks, Madam Chair. Just on that, and I appreciate that information, we want to be maximizing the benefits to the individuals in our communities who would be accessing this – I know the Minister supports that – for their own education, health and certainly economic development opportunities. As currently planned, are we using the best way of getting this service to each home in the communities that will be serviced by the fibre optic line? I understand that that is typically getting a fibre optic line right to the homes, but I don’t have the technical expertise to carry it beyond that. Has that been the advice and would that be the advice of the department?

Thank you, Mr. Bromley. Minister Beaulieu.

Thank you, Madam Chair. I’d like to have the director, Laurie Gault, respond to that, and perhaps if the Minister of Finance could add to the response, then that would be good as well.

Thank you, Minister Beaulieu. Ms. Gault.

Speaker: MS. GAULT

Thank you, Madam Chair. This is actually both a business as well as a technical conversation, particularly that last mile piece, both dependent upon the demand in the local community and the facilities that are already there as well as what would be required from provisioning from the fibre optics. I know Finance has been engaging the communities with what the requirements are, the type of services they would like to promote, and truly that volume and demand and capacity will need to be that joint conversation between how we best connect to those last miles and literally right to the front door.

Thank you, Ms. Gault. Does the Finance Minister have anything he’d like to add to those comments? Minister Miltenberger.

Thank you, Madam Chair. The intention is to have a clear point of presence in all the communities affected and benefitting from the fibre optic line and then the business opportunity will kick in in the communities either through a service provider from somewhere, or in cases like Deline where there’s an interest in the community to provide all those services themselves and create a business that would hook up all the telecommunication and Internet requirements and run them the same as is done in larger communities. We see this is a business opportunity at the community level with cable, with cell service, with hooking up all the operational requirements from businesses and governments.

Thank you, Mr. Miltenberger. Mr. Bromley.

Thank you, Madam Chair. I think this is where obviously there is a matter of scale here for the smaller communities. They’re not going to have the volume to be able to provide the same services and so there’s a real opportunity for government to plug in there and provide the subsidy needed. This is a cost recovery project for the government, and of course we will be enjoying some financial benefits from it, so it’s a good opportunity for us to make sure that the very best services can be provided and make even the smallest communities competitive and give them an advantage for participation in the larger economy. That’s just a comment. I guess I’ll leave it at that. I appreciate the responses I’ve heard.

Thank you, Mr. Bromley. Technology Service Centre, operations expenditure summary, $1.535 million.

Speaker: SOME HON. MEMBERS

Agreed.

Technology Service Centre, chargeback, information item. Questions?

Speaker: SOME HON. MEMBERS

Agreed.

Technology Service Centre, active positions, information item. Any questions?

Speaker: SOME HON. MEMBERS

Agreed.

Thank you, Members. Turning to page 438, Public Stores Revolving Fund, information item. Any questions?

Speaker: SOME HON. MEMBERS

Agreed.