This is page numbers 1823 to 1864 of the Hansard for the 16th Assembly, 2nd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was communities.

Topics

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Ramsay. The honourable Minister responsible for the Power Corporation, Mr. Roland.

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Speaker. The Power Corporation General Rate Application or the rate rider application that is being looked at right now, that the Member’s pointed out, is to deal with the past expenses of the Power Corporation on fuel prices. In fact, it goes back quite a number of months, so it’s a makeup for loss of money that was looked at when they went through the general rate rider application over a year ago. So that makes up some of the issues not for going ahead.... It is more

dealing with the costs that the Power Corporation had to deal with.

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

David Ramsay

David Ramsay Kam Lake

Mr. Speaker, I can understand and appreciate some of the previous costs. A lot of previous costs, as well, were because of bonuses paid to the senior management at the Power Corporation. I agree with my colleagues over here that are calling for a full scale review of the Power Corporation. I believe that they should find the way and the means within to pay for the fuel that they have had to pay for in the past and the costs that they have to pay for the past and not go and try to get it out of the pockets of residents in the Northwest Territories.

Again, I want to ask the Minister: given the fact that oil is $74 a barrel, will the government instruct the Power Corporation to drop the current GRA and the rate riders?

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

Floyd Roland

Floyd Roland Inuvik Boot Lake

Mr. Speaker, I fully

understand the need to take action when it comes to power generation in the Northwest Territories. Hopefully, as we look at the initiative as the Assembly, we’ll be able to look at options. I know that through the Ministerial Energy Coordinating Committee we’re looking at bringing a paper forward that looks at all options that we should look at here in the Northwest Territories.

As for the General Rate Application that is before the PUB right now, one of the other circumstances that we have to realize is the PUB has placed, for example, a 15 per cent cap on increases or decreases — more on the increases side for the costs. For example, if in one of our communities the actual cost of power generation is in the 30 per cent range from the previous rate application, then they’re capped at that 15 per cent, and that further impacts the delivery throughout the rest of the territory. So there are a number of implicating factors here, and as I stated, much of this cost on the fuel situation is going out to recapture costs that have already been spent by the Power Corporation. I will get the full details for the Member on this.

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Roland. Time for question period has expired; however, I will allow the Member a short supplementary. Mr. Ramsay.

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

David Ramsay

David Ramsay Kam Lake

Thank you, Mr. Speaker, and I thank the Premier for that response. You know, as an MLA you get questions all the time from constituents, and one of the questions that I’ve been getting numerous times lately…. I would like somebody to explain this to me. That’s why I’m going to ask the Minister today to explain this to me and explain to the residents in the Northwest Territories. How is it that every time we turn around, conservation is pushed on residents? Conservation of power, conservation of energy.

The residents in our territory are doing what they can to cut back on power. They’re replacing their appliances; they’re driving smaller cars; they’re doing what they can. But that’s on one hand, and then on the other hand, the Power Corporation is going to go out and increase power rates 19 per cent. The two don’t correlate. I would like the Minister to try to explain to the residents of the Northwest Territories how this is. If we’re using less power, how come they are going to charge us more for it?

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

Floyd Roland

Floyd Roland Inuvik Boot Lake

The process that is laid before the Power Corporation and how it has to operate…. It goes through a very thorough review, and in fact it costs a substantial amount of money when it comes to putting the application before the PUB and justifying the costs that it operates under and establishing its rates and then going forward to see if it can get the approval.

As you look at the annual costs that we have to face here in the Northwest Territories, the Power Corporation is going through the same. For example, whenever a new package is negotiated with the employees, that has an impact. When refuelling happens in our remote communities, that has an impact. As well, replacing existing infrastructure has an impact.

One of the things we have to consider in all of this is that although we look at alternatives, we’re still working within a framework that’s quite structured, that leaves little room for thinking outside the existing process. I think that’s where we come in as Members of the Assembly: to look outside the box, as I heard a Member state earlier, and look at options that truly can benefit our community members.

When we talk about conservation, the less power used is definitely a good thing and helps us. Because if there’s more population in the community or more houses, then at times we have to add an additional generation plant to be able to provide that power source, which means that community is impacted. If we can reduce that just by planning, we can limit the impact.

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Roland. Final short supplementary, Mr. Ramsay.

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

David Ramsay

David Ramsay Kam Lake

Thank you, Mr. Speaker. I wanted to ask just one final question, I guess, about fuelling. Now that prices are low, I’d like to ask the Minister responsible for the Power Corporation: why can’t we go out there? I’ll bet that the cost of fuel does go up in the near future. Why can’t we go out today and buy the fuel that we need for this winter and for next summer’s resupply? We can buy fuel that far in advance. I think that even if we have to borrow the money, if we can ensure that power rates in the communities are going to stay at a lower rate, we

should be going out there and buying that fuel today to ensure lower rates for our constituents.

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

Floyd Roland

Floyd Roland Inuvik Boot Lake

Mr. Speaker, the process the Power Corp has looked at…. It has in fact joined the Department of Public Works and Services’ Petroleum Products Division so that they can bring the volumes to a larger amount, thereby seeing some additional savings. We are topped up in most communities because of a resupply scenario by barge, which has to be done in our spring and summer operation. Unfortunately, this year it was one of the highest prices we faced, and that’s an issue that we’re all going to have to face as the colder temperatures hit us. We’re looking at options where we can try to lessen the impact on people in the Northwest Territories, and we’ll continue to do so.

Question 510-16(2) Impact Of Lower Fuel Prices On General Rate Application
Oral Questions

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Roland. Item 8, written questions. The honourable Member for Mackenzie Delta, Mr. Krutko.

Question 40-16(2) Training Costs In The Department Of Environment And Natural Resources
Written Questions

David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. I have a written question regarding training costs in the Department of Environment and Natural Resources.

1) How many ENR employees, identified by

position title and community of residence, have taken training courses in the last three years?

2) What courses have been taken, and what was

the course location and cost?

Question 40-16(2) Training Costs In The Department Of Environment And Natural Resources
Written Questions

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Krutko. The honourable Member for Sahtu, Mr. Yakeleya.

Question 41-16(2) Fuel Spills Response Plan
Written Questions

Norman Yakeleya

Norman Yakeleya Sahtu

Thank you, Mr. Speaker. My written question is directed to Hon. Minister Miltenberger, Minister of Environment and Natural Resources.

1) Will the Minister develop a plan of action that

includes community renewable resource councils as part of types of fuel spill response plans?

2) Can the Minister provide an explanation as to

why it took four and a half hours to have his officials at the scene of the Rocky Island barge fuel spill and an explanation on why they did not stay at the scene until the barge was safely secure from further spills?

3) Has the department conducted, in conjunction

with local renewable resource councils, an environmental impact study in Wrigley and Tulita on the impacts because of the “unknown amount of spills?”

Question 41-16(2) Fuel Spills Response Plan
Written Questions

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Yakeleya. Item 9, returns to written questions. Item 10, petitions. Item 11, reports of standing and special committees. Item 12, reports of committees on the review of bills. Item 13, tabling of documents. The honourable Minister responsible for the Workers’ Safety and Compensation Commission, Mr. Robert McLeod.

Tabling of Documents
Tabling of Documents

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Mr. Speaker, I wish to table the following document entitled Workers’ Compensation Board Northwest Territories and Nunavut Annual Report 2007.

Document 110-16(2), Workers’ Compensation

Board NWT and Nunavut Annual Report 2007, tabled.

Tabling of Documents
Tabling of Documents

Jackson Lafferty

Jackson Lafferty Monfwi

I wish to table the following document entitled Annual Report on Official Languages 2007–2008. Mahsi, Mr. Speaker.

Document 111-16(2), Annual Report of Official

Languages 2007–2008, tabled.

Tabling of Documents
Tabling of Documents

Michael Miltenberger

Michael Miltenberger Thebacha

Mr. Speaker, I wish to table the following document entitled Beverage Container Program Annual Report 2007–2008. Thank you.

Document 112-16(2), Beverage Container

Program Annual Report 2007–2008, tabled.

Tabling of Documents
Tabling of Documents

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Miltenberger. Item 14, notices of motion. Item 15, notices of motion for first reading of bills. Item 16, motions. The honourable Member for Great Slave, Mr. Abernethy.

Motion 24-16(2) Tiered Vehicle Registration System (Motion Carried)
Motions

October 20th, 2008

Glen Abernethy

Glen Abernethy Great Slave

Thank you, Mr. Speaker.

WHEREAS climate change, as a result of greenhouse gas emissions, is one of the most serious environmental, economic and political challenges of our time;

AND WHEREAS global climate change is predicted to result in significant impacts in the North, some of which are already being felt;

AND WHEREAS the Government of the Northwest Territories, through the NWT Greenhouse Gas Strategy, has committed to reducing greenhouse gas emissions to 10 per cent below 2001 levels by 2011;

AND WHEREAS the Northwest Territories per capita greenhouse gas emissions are over 50 per cent higher than the national average and amongst the world’s highest;

AND WHEREAS the transportation sector emits 46 per cent of greenhouse gases in the Northwest Territories, which represents the largest single source of emissions;

AND WHEREAS the use of fuel efficient vehicles can contribute to a substantial reduction in greenhouse gas emissions;

AND WHEREAS the Government of the Northwest Territories has the authority to establish vehicle registration fees;

NOW THEREFORE I move, seconded by the honourable Member for Yellowknife Centre, that this Legislative Assembly recommends implementing a tiered vehicle registration system where fees are based on the fuel economy rating of vehicles, thereby encouraging ownership of more fuel-efficient vehicles and supporting the overall reduction of greenhouse gas emissions in the Northwest Territories.

Motion 24-16(2) Tiered Vehicle Registration System (Motion Carried)
Motions

The Speaker

The Speaker Paul Delorey

The motion is on the floor. The motion is in order. To the motion, the honourable Member for Great Slave, Mr. Abernethy.

Motion 24-16(2) Tiered Vehicle Registration System (Motion Carried)
Motions

Glen Abernethy

Glen Abernethy Great Slave

Thank you, Mr. Speaker. The Department of Transportation is in the early stages of designing and implementing a new digital vehicle registration system to be used throughout the Northwest Territories. Given that we’re still in the development phase, now’s the best time to consider a change in how we register vehicles in the NWT so that can be incorporated into the system.

I believe that vehicle registration fees in the Northwest Territories should be changed from a flat rate to a graduated emission based system. This strategy will help the Northwest Territories and Canada meet its targets for greenhouse gas reduction and achieve the goal set by the NWT Greenhouse Gas Strategy in 2007. The proposal is an opportunity for the Northwest Territories to be a leader in regulating vehicles to support the immediate need for climate change mitigation.

Mr. Speaker, changing our registration fee policy to a graduated emission based system meets the goals set out in the NWT Greenhouse Gas Strategy by increasing the awareness of climate change and the need to control emissions, engaging all

Northerners who register a vehicle and promoting the use of more efficient equipment and technology. This is a practical action that can be taken immediately with long term results of sustained reduction in emissions. These alone are strong reasons for the GNWT to consider changing our vehicle registration policy to reflect our priority of climate change mitigation.

The GNWT’s strategic plan identifies the need to coordinate efforts to ensure sustainable development. If development increases at its current rate, the Northwest Territories will triple its emissions within the next three to five years. We can counter this by promoting the use of environmentally responsible vehicles.

A new emission based registration system would also advance current initiatives already in place by both the territorial and federal governments. It gives us an opportunity to work proactively with residents, communities and industries on the mitigation of climate change. In addition, now that the ecoAUTO rebate program offered by the federal government has been cancelled effective December 31, this could take its place as an incentive for Northerners to buy environmentally responsible vehicles.

Mr. Speaker, the Government of Canada has announced that it will introduce new regulations for fuel consumption for cars and light trucks starting in 2011. The new standard will meet or exceed the one proposed by the United States of 6.7 litres per hundred kilometres. Some provinces, such as British Columbia, will also introduce new vehicle emission strategies in their spring session — report standards that approach the state of California’s proposed 5.3 litres per hundred kilometres.

The transportation sector accounts for roughly 25 per cent of Canada’s total greenhouse gas emissions and 18 per cent of the emissions in the Northwest Territories. The NWT Greenhouse Gas Strategy identifies that if 10 per cent of the NWT vehicles were replaced by mid-sized hybrids, emissions would be reduced significantly.

While greenhouse gas emissions for vehicles is a complex problem, changing our registration fees to directly address emissions would be a step in the direction of territorial and federal climate change mitigation goals. It would also make it easier for Northerners to adapt to future federal regulations.

The Northwest Territories does not perform emission testing on vehicles, nor does it currently have a graduated registration policy in place like most other jurisdictions. The majority of Canadian provinces have tiered registration systems, which classify vehicles in a variety of ways. Some do it by weight. Some jurisdictions, such as B.C., tend to follow the state of California’s tailpipe emissions approach, dividing their fleet of vehicles into two

groups: passenger cars and light duty trucks, and larger trucks and SUVs.

The United Kingdom classifies its vehicles by brands with carbon dioxide per kilometre and charges fees at a rate that averages one imperial pound per gram of carbon dioxide per kilometre for most vehicles. Every litre of fuel burned emits approximately 2,300 grams of carbon dioxide. Owners of alternative fuel vehicles or fuel efficient vehicles such as the Toyota Prius, which consumes on average about 4 litres per hundred kilometres, are charged an almost negligible fee of up to 35 British pounds, or $72 Canadian, per year. Vehicles cost up to 400 British pounds, or $822 Canadian, a year if they register vehicles that emit 226 grams of carbon dioxide or more per kilometre.

I’m not suggesting we go to the same extreme as the United Kingdom; I believe that we should rate vehicles in the Northwest Territories by how many litres it takes to go 100 kilometres. This is easy to calculate, as that information is included in manufacturers’ specifications.

In discussing this motion with other Members, some have indicated they’re concerned that the graduated system would affect small, isolated communities negatively — communities where the majority of vehicles are often four wheel drive pickup trucks. In small, isolated communities these vehicles are appropriate given the road conditions, where small vehicles low to the ground would only last a couple of weeks.

A graduated registration system does not have to be a significant disadvantage to small communities. One way to address this concern is to have a two-tiered instead of a multi-tiered system. For example, this government could implement a system where vehicles ranging from better than nine litres per hundred kilometres in the city —vehicles like the Toyota Prius, the Ford Focus and any other small cars and hybrids — could be charged less than the existing rate of $89 per year, somewhere around maybe $55 to $65. Vehicles ranging from 9.1 litres per hundred kilometres or worse in the city — vehicles such as the Ford F150, Chevy Silverado and most SUVs — would be charged the existing rate of $89 per year, which results in no change in the majority of the smaller communities.

As a note, I’ve recently travelled to Fort Resolution, Fort Smith, Hay River, Fort Simpson, Fort McPherson, Délînê, Inuvik, Norman Wells and Behchoko, and at each of these communities, with the exception of Délînê and Fort McPherson, I saw a large number of vehicles that would definitely fall into the lower registration category. With respect to Délînê and Fort McPherson, I wasn’t there long enough, and I didn’t have an opportunity to look around town, but I wouldn’t be surprised if there

were vehicles in those communities that fall into the lower rate criteria.

This is a sort of registration system that allows Northerners to choose which vehicles they’d wish to buy but also gives them incentive to make environmentally responsible choices. If this sort of action is taken by other jurisdictions, it will put significant pressure on the auto industry to develop products that meet the need for cost effective, environmentally responsible vehicles.

Basing territorial registration fees on emissions is consistent with the GNWT’s strategic plan for an environment that will sustain present and future generations, the GNWT’s target for reduced emissions by 10 per cent by 2011, and the federal government’s new standards for vehicles. It allows for flexibility and choice while still promoting environmental responsibility. It is an opportunity for the Northwest Territories to lead the way on climate change mitigation and will result in sustained long term reduction of emissions. I’m putting this motion forward and supporting it because I think it’s the right thing to do.

I’m not saying what the tiered rates should be. I believe that if this motion is passed, the Department of Transportation should conduct research into other jurisdictions, develop a reasonable rate structure that factors in the reality of small communities, and bring that proposed rate structure back to the Standing Committee on Economic Development and Infrastructure for consideration and debate. I encourage Cabinet, as well as Members on this side of the House, to support this motion and demonstrate that we care about our environment and are committed to meeting our targets for greenhouse gas reductions and achieving the goals set by the NWT Greenhouse Gas Strategy in 2007.

Motion 24-16(2) Tiered Vehicle Registration System (Motion Carried)
Motions

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Abernethy. I’ll go the seconder of the motion, the honourable Member for Yellowknife Centre, Mr. Hawkins.

Motion 24-16(2) Tiered Vehicle Registration System (Motion Carried)
Motions

Robert Hawkins

Robert Hawkins Yellowknife Centre

Thank you, Mr. Speaker. I seconded the motion proudly because I believe in this initiative. My wife and I bought a hybrid vehicle two years ago. I can tell you that when we were there, the salesperson said: where do you live? I said: we live in Yellowknife. He felt at that time, due to the analysis, that a hybrid vehicle might not necessarily give us the best payback. But that’s not how we run our family. We said that this is a smart, economical choice, and we’re making choices because we’re thinking of tomorrow as opposed to just today.

I would encourage any incentives that could be brought forward by this government that would encourage people to choose eco-friendly decisions. They make sense. Every step in the right direction — with a carrot approach, as opposed to a stick

approach — is the right way to do to this. This approach, by asking for a tiered system, says clearly that our government believes that if you’re making smart choices, better choices for the environment…. Let’s help reward people with that type of choice.

In closing, I want to emphasize that a northern made system does not necessarily mean we have to penalize the existing vehicles that are out there. It’s finding a way to encourage people to use and manage their choices just a little better. That’s why I’m in full support of redeveloping a new vehicle registration system that is sound and makes sense in the North.

Motion 24-16(2) Tiered Vehicle Registration System (Motion Carried)
Motions

The Speaker

The Speaker Paul Delorey

Thank you, Mr. Hawkins. To the motion, the honourable Member for Weledeh, Mr. Bromley.