Energy policy must be discussed on the provincial level

Cities shouldn’t go it alone on natural gas, Val Litwin writes.

The cost of energy is among the biggest issues affecting small businesses across British Columbia. Their ability to pass along competitive pricing to their customers depends on the cost of the inputs. For decades, natural gas has been a widely available solution for manufacturing, commercial, transportation and retail businesses.

B.C.’s natural gas industry fuels the economy in the northeast of the province by creating well-paying jobs and encouraging growth in rural B.C. It also provides communities across the province, including the Lower Mainland, a cost-effective energy source.

The City of Vancouver decided recently to press forward with a de facto ban on natural gas in support of its goal to eradicate the use of all fossil fuels in the city by 2050. The overall strategy will strike some as being in harmony with our times, yet on closer examination it proves to be riddled with challenges that impact businesses not just in the Lower Mainland, but throughout the province.

In support of the fossil-free goal, a number of policies are coming into effect that severely limit how natural gas is included in new buildings. We are hearing from business organizations, and now in our current election discourse, about taking the city to task for not working with those affected to develop a sound policy. This is fair criticism. Moving ahead too quickly with changes, and not doing essential collaborative work to build consensus, is a recipe for less-than-desirable outcomes.

The B.C. Chamber of Commerce has been at the forefront of responsible climate policy as a supporter of the revenue-neutral carbon tax, which seeks to encourage reduction in energy use. The city’s restrictions mean fewer choices in Vancouver, which translates into higher housing costs in a place that is already challenged to attract talented workers. Restaurants are concerned about losing affordable natural gas to cook with, especially in a city renowned for its diverse cuisines.

Banning natural gas over the long-term means that innovation in using natural gas as a transportation solution is effectively stigmatized. This is particularly ironic since Vancouver is the home of a global business success story, Westport Fuel Systems. The company develops low-emissions technologies that allow engines to operate on clean-burning fuels such as compressed natural gas, liquefied natural gas, hydrogen and biofuels such as landfill gas.

The city could start by acknowledging that natural gas is an affordable, clean, safe and reliable energy choice. It is used to heat hot water and space. Restaurants depend on it for cooking. It is delivered via a scalable, flexible energy delivery system that easily incorporates renewable natural gas. Consumers can use exactly the amount they wish to use and choose appliances that offer more efficiency with each passing year.

Natural gas is now being recognized as the foundation on which to build the innovative renewable energy systems of the world. It is replacing coal for the generation of electricity in jurisdictions beyond B.C. And it is being brought into transportation uses, including close to home where B.C. is taking delivery of new ferries powered by liquefied natural gas.

For economic development purposes, it would be useful if B.C. were able to develop alternative value-added uses for the province’s natural gas resources to unlock the economic value of the resource for B.C. and for the benefit of our economy and communities. Value added to the production of natural gas could also enable the resource to compete in other markets, and provide an outlet for a commodity and reserve resource.

To achieve such an outcome, energy policy should be harmonized and addressed at a provincial level to create certainty and a level playing field for businesses across the province. Individual municipalities pursuing idealistic, but impractical, policies can affect affordability for all of us by impairing the cost-effectiveness of functional and desirable energy delivery systems.