Fifth Session, 42nd Parliament (2024)

OFFICIAL REPORT
OF DEBATES

(HANSARD)

Thursday, March 14, 2024

Afternoon Sitting

Issue No. 401

ISSN 1499-2175

The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.


CONTENTS

Orders of the Day

Committee of the Whole House

T. Halford

Hon. R. Fleming

Report and Third Reading of Bills

Committee of the Whole House

Hon. N. Sharma

M. de Jong

Hon. L. Beare

P. Milobar

Royal Assent to Bills

Bill 2 — Employment Standards Amendment Act, 2024

Bill 4 — Municipal Affairs Statutes Amendment Act, 2024

Bill 5 — Child, Family and Community Service Amendment Act, 2024

Bill 7 — Social Development and Poverty Reduction Statutes Amendment Act, 2024

Bill 8 — Athlii Gwaii Legacy Trust (Winding Up) Act

Bill 10 — Commercial Transport Amendment Act, 2024

Bill 6 — Supply Act (No. 1), 2024

Committee of the Whole House

P. Milobar

Hon. N. Sharma

Hon. R. Kahlon

Proceedings in the Douglas Fir Room

Committee of Supply

B. Banman

Hon. B. Ralston

A. Walker

Hon. B. Ma

L. Doerkson

Proceedings in the Birch Room

Committee of Supply

P. Milobar

Hon. G. Heyman

R. Merrifield

E. Ross


THURSDAY, MARCH 14, 2024

The House met at 1:02 p.m.

[The Speaker in the chair.]

Orders of the Day

Hon. R. Kahlon: In the main chamber, I call Committee of the Whole on Bill 10, Commercial Transport Amendment Act.

In the Douglas Fir Committee Room, I call Committee of Supply for the Ministry of Forests, and, after that completes, I call the Committee of Supply for Ministry of Emergency Management and Climate Readiness.

In the Birch Committee Room, we call Committee of Supply for the Ministry of Environment and Climate Change Strategy.

Committee of the Whole House

BILL 10 — COMMERCIAL TRANSPORT
AMENDMENT ACT, 2024

(continued)

The House in Committee of the Whole (Section B) on Bill 10; S. Chandra Herbert in the chair.

The committee met at 1:04 p.m.

The Chair: All right, Members, if the minister and the critic are ready, I believe we are on clause 2, so we’ll get started with Bill 10, Commercial Transport Amendment Act, 2024.

On clause 2.

T. Halford: We’re talking about clause 2, section 12. It’s saying here “not more than $500,” “not more than $100 000 or to imprisonment for not more than 18 months, or to both.” We’re talking about the Commercial Transport Amendment Act. Has anybody ever been imprisoned under the Commercial Transport Act?

[1:05 p.m.]

Hon. R. Fleming: Let me begin by doing something I neglected to do at the outset of committee stage, and that is to introduce the staff at the Ministry of Transportation and Infrastructure who are assisting us during this debate.

To my left is Steve Haywood, who is the executive director and registrar for the commercial vehicle safety and enforcement branch. And to my right is Kirk Rockerbie, who is the manager of transportation policy. Behind me is Jacquie McMorran, who is our legal counsel. And this morning Jeremy Wood was here. He’s our executive director of strategic policy and legislation.

The member asks about the Commercial Transport Act and whether there are any sections that allow for imprisonment, if I heard him correctly. There is only one section that has a reference to this, and it’s section 7.02. That is a provision that outlines the violation of permit conditions. To our knowledge, no one has ever been charged or convicted to serve a term of imprisonment for a violation of section 7.02.

T. Halford: Apologies to the minister. I did not hear that clearly, and that was my fault. Sorry. I asked if anybody has been imprisoned, resulting from the Commercial Transport Act in this province.

Hon. R. Fleming: I’ll repeat for the member that there is one section that does contain provisions around a sentencing that could include a term of imprisonment. It’s section 7.02, and it’s around violation of permit conditions. To our knowledge, nobody has been charged or prosecuted that led to a term of imprisonment.

[1:10 p.m.]

T. Halford: Thanks to the minister for that answer.

Again, going back to the 18 months, can the minister give an example of what may have to transpire for somebody to receive the maximum sentence that’s going to be in this legislation, of 18 months?

Hon. R. Fleming: The Crown counsel, of course, would likely, in a scenario that we’re imagining here this afternoon…. Where you had a very egregious offence and the circumstances were such that Crown counsel pursued charges, and the circumstances of the investigation by police and other agencies warranted and met those two-step tests, both the likelihood of conviction and conviction being in the public interest….

In the course of a trial, the Crown would obviously make submissions on sentencing. When there’s a finding of guilt within that trial, then that allows a judge to determine a range of penalties, both financial and, potentially, imprisonment, or both.

T. Halford: The minister has brought up a good point here. When we’re talking about the $100,000 and how that could be levied, who is…?

We know the court will decide about imprisonment. I get that part of it. In terms of the monetary fines that could be levied, who will be making that? Did the minister say a court would be making that decision? Would the ministry be making that decision? Would cabinet be making that decision, or is that going to be left in the hands of the judicial court?

Hon. R. Fleming: That will be determined at trial, and then, ultimately, by our independent judiciary. It would be up to a judge.

Maybe to explain what we’re gaining here by passing this legislation right now, there is no ability to do that under the Commercial Transport Act. There will be upon royal assent of this bill. It will allow, again, a range of sentencing options for a now prosecutable offence where there isn’t one today.

T. Halford: The maximum fine as of right now is $500. I believe that to be correct. So who makes that determination if the driver is going to be fined $500?

[1:15 p.m.]

Hon. R. Fleming: Right now the $500 fine maximum that exists is for a violation ticket at roadside that could be issued by police or the commercial vehicle safety and enforcement unit. This legislation will actually allow us to increase those fines. But the much more serious sanctions that are under discussion in this section of the bill relate to a different process that is adjudicated in court.

T. Halford: What is that threshold, then? Is it $1,000? Is it $5,000, $50,000, $75,000, $100,000? When does that kick in?

So you get stopped. You’re oversized, or you’ve struck something. Who’s making that determination whether CVSE can issue a fine, whether you have to go to court as an escalator? Is there a certain threshold that needs to be met? Can the minister clarify that?

Hon. R. Fleming: The authorities that would attend an accident could immediately issue a VT with that fine. But upon a police investigation — again, we’re talking about what would likely be a very serious accident or based on facts found out about the driver and their previous record of infractions — there would be a whole bunch of circumstances that would be determined as fact during the course of the investigation that would inform Crown counsel, which would then take it to court.

Then the discretion on — as he called it, the threshold — the ultimate penalty amount would be determined by a judge, not by the ministry or cabinet or any other process. Legislation will allow a judge to go as high as $100,000.

T. Halford: A truck gets stopped; it’s overheight. Does CVSE have the ability to issue a fine? To what extent? Can that fine be $500? Can it be $100,000?

If there is a strike that happens at an overpass and CVSE attends, can they issue a fine that can be $500,000, $50,000, or $100,000? Or the responsibility for the entirety, whether it’s $500,000 or $50,000 or $100,000 — is that respons­ibility now solely in the hands of the court?

[1:20 p.m.]

Hon. R. Fleming: The attending officer will basically have a choice based on what they’re seeing in the scene of an incident of a serious collision, let’s say, and will have the choice between an enforcement order issued then and there or whether they wish to, after the adoption of Bill 10, now pursue a long-form information process, which would provide charging recommendations to Crown counsel, which would seek a much higher amount that will be available under the CTA.

T. Halford: The amendments under clause 2 amend section 12 of the Commercial Transport Act, and it references “a person who contravenes.” Can the minister clarify, does person mean the driver, or can it also mean a company and/or personnel within that company?

[1:25 p.m.]

Hon. R. Fleming: It’s important to note that there are no changes to whom the CTA offence applies. Mostly, the person is the driver, but owners can also be held liable, and I’ll return to that in a second. Of course, there’s a not insignificant portion of the industry that are owner-operators, where they are one and the same.

A ticket issued to a driver, though, also flows through to the carrier’s national safety certificate, so the accumulation of citations on their safety certificate is held in record. The carrier’s liability for being part of the unsafe behaviour that has caused the incident, often based on an accumulation of safety citations, can then be part of the progressive enforcement system that we described earlier in this debate, where they can have suspensions of their entire fleet and therefore be involved and be held liable for the incident that set that in motion.

T. Halford: Just to be clear, if an overpass is struck, significant damage, there’s negligence…. Two questions.

One is you could fine the operator of the vehicle. The driver may not have the means to pay the maximum penalty, and then, could an operator face imprisonment time as well? Based on the explanation just given there, could an operator face imprisonment based on these legislative changes, even if they’re not operating the vehicle that struck an overpass?

[1:30 p.m.]

Hon. R. Fleming: This is similar to the last answer. The amendment here assigns the fine and would pursue it through a conviction in a court and it would be an individual, so it would be it would be the driver. As I’ve said, in many cases the driver is the owner.

There are other sections of the Motor Vehicle Act, and there is the progressive enforcement regime that deals with the carrier, where they’re a contributing factor to negligence that’s part of the accident.

Clauses 2 and 3 approved.

Title approved.

Hon. R. Fleming: I move that the committee report the bill complete without amendment.

Motion approved.

The committee rose at 1:31 p.m.

The House resumed; the Speaker in the chair.

Report and
Third Reading of Bills

BILL 10 — COMMERCIAL TRANSPORT
AMENDMENT ACT, 2024

Bill 10, Commercial Transport Amendment Act, 2024, reported complete without amendment, read a third time and passed.

Hon. N. Cullen: I’m wondering if we can take a small pause. We’re going to move on to a miscellaneous stats bill, and I know we’re waiting for the relevant minister to come. It should be just a number of minutes, and we’ll get started.

The Speaker: The House will be in a short recess.

The House recessed from 1:33 p.m. to 1:48 p.m.

[S. Chandra Herbert in the chair.]

Deputy Speaker: Okay, Members. Let’s call this Legislature back in session.

I acknowledge the acting Government House Leader.

Hon. N. Cullen: Thank you very much, Mr. Speaker. Apologies for the delay. It couldn’t be avoided.

I’d like to introduce, for Committee of the Whole, Bill 9, Miscellaneous Statutes Amendment Act, 2024, for debate.

Deputy Speaker: Thank you, Minister.

We will move into committee.

Committee of the Whole House

BILL 9 — MISCELLANEOUS STATUTES
AMENDMENT ACT, 2024

The House in Committee of the Whole (Section B) on Bill 9; S. Chandra Herbert in the chair.

The committee met at 1:49 p.m.

The Chair: Would the Attorney like to start with an opening statement?

Hon. N. Sharma: Yeah. Thanks, Chair.

I would just like to introduce my team and thank them for all their work. We have Anita Nadziejko, director of policy and legislation; Tarynn McKenzie, senior policy analyst; and Doughton Amit, policy analyst.

On clause 1.

[1:50 p.m.]

M. de Jong: Just when we thought our opportunities for these delightful exchanges might have ended, here we are yet again. We’ll get right to it.

Clause 1, I take it, is designed to address a problem or an issue that has cropped up with respect to the Lobbyists Transparency Act. I’ll ask the first two questions in this order. What is that issue or problem that has given rise to this amendment?

Hon. N. Sharma: I guess it wouldn’t be to fix a problem. It was just to maybe amend itself to the nature of how the online system works. By removing “prescribed form and manner” and replacing it by “manner specified from the registrar,” it allows the registrar to update and change the form online.

M. de Jong: Then maybe the question that follows from that is: is there a concern around the level of certainty…? I have the Attorney’s point about changing online forms. But if that is the case, presumably, the term “prescribed form” would allow for the registrar to make that change at any time, in any way that they would choose. A prescribed form available online can be changed at any point. So I’m not certain I follow the distinction.

Hon. N. Sharma: Okay, so by the term “prescribed,” it requires a regulation. What’s happened, in practice, is there’s never been a regulation on this because it’s up to the independent officer, through the online process, to do it in the form and manner that they see fit. So it really is just a clarification of that.

M. de Jong: With respect to section 3, sub (1) and sub (3), there isn’t today a prescribed form?

Hon. N. Sharma: No.

M. de Jong: That, presumably, is intended to be changed following the passage of this section?

Hon. N. Sharma: There wouldn’t be regulation because the power to make regulation for this has been removed through this amendment. It just, basically, reflects the status quo of what’s happening right now, which is that the registrar, as an independent officer, sets the form and manner of it.

M. de Jong: I don’t want to over-dramatize this, although I suppose some within this carefully regulated business of lobbying might. I won’t.

[1:55 p.m.]

If what the Attorney General is saying is correct, and the forms that have been used are the result of the work of the registrar, but have not been prescribed in the way that the present section requires, then are those forms actually valid today?

Hon. N. Sharma: Just to bring clarity to what we’re talking about here, it’s not an actual form; it’s a registry. It sets out, basically, the status quo, which is that the registrar is responsible for the form and manner of that registration. That occurs online. It’s within the purview of the independent officer, with the online resources — just to make sure that that’s clear.

M. de Jong: So there’s no concern…. There is apparently today, under sub 3(1) and sub 3(3)…?

Sub 3(1) is requiring that a lobbyist “must file with the registrar a registration return in the prescribed form….” I think that’s what we’re dealing with. “Within 10 days after beginning to lobby on behalf of a client, a consultant lobbyist must file with the registrar a registration return in the prescribed form….” That suggests, to me, filing a document. Am I reading that correctly?

Hon. N. Sharma: When we look at the act on the whole, it does, in the act, talk about what types of information — which, I think, the member is getting at — are required to be registered. This is simply talking about form and manner, so not an actual form. It’s just that, in practice, it’s an online registry, and people register online.

It isn’t about…. There are other things that might talk about the content or what must be filed, but this is just a simple thing to say that it’s in the form and manner prescribed by the registrar. The online registry can be maintained by them without a need for prescribed forms or any kind of regulation — which wasn’t happening, anyway.

M. de Jong: All right. It’s interesting, to the extent that what we may be dealing with is the transition between a paper-based system and an online system. Was there ever a form?

I think my point is…. When this act was created, my guess is that there was actually a form, and we have evolved out of that into an online system. Am I describing that correctly?

[2:00 p.m.]

Hon. N. Sharma: Yes. I’m told it’s been online for quite awhile and certainly since 2020, when the major changes were made. But the member may be right that this is my, maybe, legacy language, but it does reflect the current state of these amendments and just better reflects what’s happening, which is with the online registry that’s managed by the registrar.

M. de Jong: Is there any concern whatsoever within the ministry that is generally concerned that the evolution and the technology is only now being matched by the evolution in the law and that exposes the registry and the ministry to a suggestion or allegation that the present state of the registry falls outside of, until this passes, let us say, the present ambit of the law? Is there any concern whatsoever that the law simply hasn’t kept up with the evolution of the technology?

[J. Tegart in the chair.]

Hon. N. Sharma: No concern at all. This is really very much a minor amendment to reflect how the registry has been operating online for a long period of time. As I mentioned before, the important thing is that the act, as a whole, mentions what type of information must be in there to comply with the act. That’s the important part of it. This is relatively benign.

M. de Jong: I think the final question relating to this issue, the other thing that occurred to me…. When we shift from a prescribed form, meaning a regulation, as the Attorney has pointed out, to transferring authority to the registrar, the good news is that changes can be made more easily and don’t require the OIC. The bad news can be for the people who are utilizing the service. It changes very quickly and all the time, and they are confronted each time they are obliged to register with a different set of requirements.

What assurance can the Attorney, with the assistance of her staff, provide that those who are obliged to provide this information aren’t either going to be confronted by an ever-changing series of requirements?

Hon. N. Sharma: The registrar is mindful of that, and I know through the operation of the independent registry that they have staff on board to actually explain changes, if they’re made, to people. I’ve been told that from various groups they call up, and they get answers right away. If changes are made, which I think happens from time to time, they also have the ability, and they put time into educating people about those changes. Generally speaking, I think we haven’t heard concerns about that.

M. de Jong: The requirements will be uniform and not dependent — this is a question — on which officer within the office I happen to be speaking with. That is to say, there will be a single registry requirement, and it won’t be open to interpretation of various assisting officers. That can also be frustrating, as the Attorney General, I’m sure, will agree, if the advice or requirements one receives are different, depending on who you talk to.

[2:05 p.m.]

Hon. N. Sharma: I can assure the member that we haven’t heard that kind of concern with the services that the registry provides the public.

M. de Jong: With respect to this clause, I don’t think it does, but can the minister confirm: does this change, in any way, the substantive requirement to file a registration for either a lobbyist, a client or a consultant lobbyist?

Hon. N. Sharma: No.

Clause 1 approved.

On clause 2.

M. de Jong: Well, let’s just start again where I started with clause 1, the problem or issue that the changes proposed in clause 2 are designed to address.

Hon. N. Sharma: This particular amendment, I think the….

Oh, he’s asking about the whole section, so I’ll maybe go through that. There are two things that the amendments in (h) and I guess (i), which are removed — that they do.

The first one is to clear confusion that was happening on the ground with respect to coalition. Coalition can be confusing in the sense where it could be a separately registered organization that uses the term “coalition” because it is a coalition, but it’s actually registered as a non-profit or other organization, and that’s lobbying, or it could be a coalition in another sense of just organizations that are separately registered coming together to lobby.

We found that the use of the word “coalition” was causing confusion because of those two interpretations of it. Instead, it was amended to describe the activity, so the activity of a lobbyist working together with another lobbyist. So forming a…. It’s, in a sense, forming the latter version of coalition that I described, but it’s describing that activity and outlining that they need to register.

This was something that people were telling us was causing confusion in what was needed to register and who was needed to register and how, so that was the reason for that.

The second change was specifically to remedy an issue that particularly non-profit organizations were coming to us to say. They often do request government funding. So it’s changing it from registering every time you request funding to when you receive it.

[2:10 p.m.]

You can see that one section is removed. It’s just really to get at the administrative burden that that was putting on organizations. Sometimes when you’re requesting often for government funding, you’re only successful sometimes. It’s just reducing that administrative burden on registering.

M. de Jong: Thanks. That’s helpful.

Let’s deal with the first part of the section. The abstract description that the Attorney has provided is helpful. Is there an actual example? I’ll tell the Attorney where I’m going. My impression is that by making this change, the number of organizations captured by the section should actually be reduced as opposed to expanded, because the rationale seems to be that the existing use of the term “coalition” was causing confusion that led organizations that weren’t captured by this to think they were.

If this is designed to address that confusion, the scope of the number of organizations captured should be reduced. It would be helpful to have a real-life example of where this cropped up.

Hon. L. Beare: I seek leave to make an introduction.

Leave granted.

Introductions by Members

Hon. L. Beare: Up in the gallery joining us today right now are the WorkAble graduate interns in our building.

Very happy to have you all.

These are internships across the B.C. public service for recent post-secondary graduates self-identifying as having a disability. They are 12-month internships, and they run all across B.C. from September to September. They encourage people with disabilities to consider a career in B.C.’s public service.

I want to make you feel very welcome.

I hope the House will join me in welcoming you to the Legislature.

Debate Continued

Hon. N. Sharma: These changes to the provision don’t change the reporting requirements. They seek to bring clarity. Let me talk through it by example. You can think of an organization, so I’m just going to give a hypothetical.

[2:15 p.m.]

If I’m an organization and the name of my organization is coalition, or I am a coalition, but I have separately set myself up with a board of directors, registered myself, like, I’m a separate organization or I act as one, then that’s different than what we’re changing here, which is that if you are a coalition in the sense of a whole bunch of individual organizations that have come together to meet with an MLA, for example….

It’s clarifying that in one case, the former one, you can register just individually that organization, without listing the organizations that attended. But if you are the other version of the coalition that I described, where you’re a bunch of organizations separately registered, separate organizations coming together to lobby, that the list…. The names and businesses of the organizations are part of what needs to be registered.

What we were finding was that there was confusion in that. In that sense, we might actually have less reporting, because if you’re a coalition that’s formally organized as a coalition, as an organization, you may have, before, gone through and said, “Oh, do I have to list every single one of the organizations that form my formal structure?” — that sit on the board or whatever. That was not necessary. So it clears up that confusion and would reduce the administrative burden on that side.

M. de Jong: Thanks, and I think I understand.

So the mere fact that my organization, in its name, includes the term “coalition” does not necessarily mean that I fall within the parameters of subsection 4(1)(a), sub (h). The retired beer league hockey coalition, unless it works with other organizations, is not a coalition, and the deletion of that term is meant to convey or alter the requirement, clear the requirement…. Unless one organization’s lobbyist is working with another separate organization’s lobbyist, these provisions do not apply. Is that essentially correct?

Hon. N. Sharma: That’s right. It clarifies which reporting requirements are required for that group. So the member is correct. If they’re working with another one, and it’s a group coming together that are independent, then it would be different reporting requirements than if it’s just one that’s a registered coalition.

I think, yeah, I agree with what he said.

M. de Jong: Then let’s go to the second part of clause 2, where, in subsection 4(1), (i.1) is repealed. This is an existing requirement for organizations that have requested funding within a 12-month period. So what is the requirement? Where does this requirement come into play now, and how is it different after this section has been repealed?

Hon. N. Sharma: Before I answer that question, I’ll give the member and the public a little background about what the reasons are for the changes before us in general.

Really, a group of non-profits, including United Way, Vancouver Foundation, some of the bigger ones acting on behalf of smaller ones, came to government and said: “We are all for transparency. We really appreciate that. We want to register our lobbying when we do it, but some of the things in here are really burdensome. They apply to everybody, but particularly non-profits, and we don’t think they necessarily add to transparency.”

One of those sections feeds into the amendment that we are talking about right now, which is that the requirement that used to exist before, if these things pass, would exist after this, which is that you would have to register every time you requested government funding.

[2:20 p.m.]

You already do it when you receive it, so that’s very transparent. You’ve received funding. You register it in the lobbyists…. Everybody knows you’ve received it. But you can imagine, particularly non-profits…. They do a lot of requesting of government funding, so the requirement to register every single one of those requests….

What we were hearing from that sector in particular was that it’s overly burdensome, an administrative burden on us, and we already are tightly squeezed when it comes to our administrative ability. We want to serve the public instead.

They’re very thoughtful changes in this one. If it passes, it would say, “You no longer need to register your government request for funding; but yes, you definitely still have to register when you receive funding from government,” which is later on in the act.

M. de Jong: So the key change there is that there will still be detailed transparency around organizations that have received funding from government as a result of lobbying but not necessarily the same degree of transparency around requests that have been made but did not result in funding. Is that correct?

Hon. N. Sharma: Yeah, just with a couple slight nuances. Let’s say that organization did a lobbying activity for that funding. It wasn’t just an application. They actually met with an elected official and said: “You know, I really want…. I’m lobbying you for this money.” They would still have to register that activity but not the request, unless it was successful. It’s a little bit nuanced.

Also, I think one of the reasons that organizations were asking for this is that government also has a very…. Often there’s another side of transparency there with the process used for selecting grant applications and all the other — that side of the transparency that’s covered. So we think it’s a good way to lower administrative burden that’s unnecessary but not compromise transparency.

Clauses 2 and 3 approved.

On clause 4.

M. de Jong: We appear here to be dealing with a situation where there is an attempt to define in more detail in what circumstances a monthly return needs to be filed. My question is not dissimilar from the other initial questions I’ve asked with the preceding clauses, and that is: what is the genesis or the source of the change? Is it an issue that has been raised by those obliged to file, or is it in response to concerns that the registrar themselves have raised?

[2:25 p.m.]

Hon. N. Sharma: There are three things that I’ll talk about with this section, just generally, to explain the amendment. First of all, in section 4.1(1), the change that is made is making it subject to section 4.4, and section 4.4 talks about final obligations when you’re stopping yourself from being a lobbyist. You’re not going to be a registered lobbyist anymore because you’re done your lobbying. When there are final obligations, the timelines are different, and those are set out in section 4.4. The rest of it doesn’t change.

The bottom part of it, from subsections (2) to (5) — nothing in the content has changed there. It’s just organizational changes. The thinking behind that was that it would be easier to put all of those requirements in one section for clarity purposes.

M. de Jong: Is the registrar contemplating specific changes to the form and manner that have informed this proposed amendment?

Hon. N. Sharma: No, the registrar is not contemplating changes in that regard.

M. de Jong: Looking at sub 4.1(2), I was trying to ascertain how this was manifestly different from the original 4.1. I’m now looking at what is referred to in clause 4 of the bill, referencing sub 4.1(2), and how that is actually and practically different from the original 4.1.

Hon. N. Sharma: That subsection used to be subsection 4.2(4). There’s no difference in the content. It’s just moved for the purposes of better organization of the legislation.

M. de Jong: If we go to what is, in the bill, sub 4.1(4), I see the reference to five consecutive months.

Any magic in that? Is that a holdover from an existing provision, or is that a…? What was the rationale around five months?

[2:30 p.m.]

Hon. N. Sharma: This subsection is like the one we previously talked about where it hasn’t actually changed in the content.

The member asked about the five-consecutive-month timeline. That time period hasn’t changed from previous versions of this legislation. Every time we do anything, we consult with the registrar to see what, if any, changes are needed. I’m assuming by that, this timeline was appropriate.

M. de Jong: Then lastly, in sub (5), it sets out the criteria by which termination can occur for a designated filer and termination of the registration of the lobbyist.

It firstly sets out the criteria for that 30 days after the monthly return under subsection (4) was due. Is that a discretionary matter, or does that follow automatically? That’s the first question.

Is there a discretionary authority? Or is it an absolute requirement, an automatic requirement, that the designated filer…? The registration of that lobbyist is terminated for failure to comply with sub (4)?

Hon. N. Sharma: It’s not discretionary after that. It is terminated after 30 days, as written out in the rest of the section — so not discretionary.

M. de Jong: Let me just ask this, then, in a practical example.

So I am someone who is covered by these provisions, the lobbyist and designated filer. I have not done my monthly filing in accordance with 4.1(4). Three months later, I begin to file my monthly filings again, but technically, I’m no longer registered.

Have I explained the kind of scenario? To be terminated, does it require an act by the registrar to formally terminate and notify the registrant that they’ve been terminated, or is it just deemed to have taken place and the designated filer, the lobbyist, must re-register and be aware of that?

Hon. N. Sharma: What would happen in practice is when they went to go register, so to log in, they would get a notice that their account was deactivated because of the time lapse. Then they would have to re-register.

M. de Jong: I think the Attorney has hit the nail on the head there. Are they allowed to rely on that?

[2:35 p.m.]

In the example I’ve given, if I don’t receive that notice or that indication, am I entitled to assume that notwithstanding that I have not complied with the provisions that we are dealing with around monthly filing…? If I don’t receive that notice or indication that I’ve been terminated, am I entitled to assume that my registration remains valid?

Hon. N. Sharma: There’s no requirement for the registrar to give notice under this.

I want to differentiate between this and enforcement provisions. There may be times where the registrar needs to enforce lack of compliance with the rules in the act, but that’s a separate provision. This is just a situation where somebody hasn’t…. It’s basically an inactive registry or registrant, where they just haven’t registered lobbying after a certain period of time, and it expires. It would just automatically do something. They would receive notice of that if they tried to go in again.

M. de Jong: I’m just trying to think of this from a practical point of view. This situation not happened…. A designated filer or lobbyist who is required to file on a monthly basis misses a couple of months, then resumes and may continue to resume for a year or two, in full compliance with the legislation, only to have someone come along later and say: “Ah, two years ago you missed two months, and you’re automatically terminated.”

It strikes me, and I will presume to answer my own question, that if the registry is continuing to accept filings, the lobbyist is entitled to assume that their registration remains valid. That’s what I’m trying to confirm.

Hon. N. Sharma: I’ve been assured by the registrar that the regime is really focused on trying to be as low barrier and accessible to get people to register their lobbying. So we start with that.

But in the situation where somebody has been inactive for I think it’s six months, where their account is terminated, there are a few things that could happen. First of all, there’s a process for reactivation of that account. They could register again. I’m sure that would be done in a way that is as low barrier as possible.

Clause 4 approved.

On clause 5.

M. de Jong: Third-party sponsors. Are there…?

I see the interplay between the deletion of subsections 4.2(4) to (9) and then the changes to sub (10) reflecting that. I think my general question is: how does this change — collectively, these changes — the obligations that third-party sponsors have to provide information to the registrar?

[2:40 p.m.]

Hon. N. Sharma: Essentially, it doesn’t change anything that doesn’t currently exist as obligations on third-party sponsors.

One part of it that we already talked about is subsections (5), (6), (7) and I think (10) and (11). No, sorry. That’s it, so those ones.

We mentioned the changes that were moved into the other section 4 just to add organizational clarity. The one change that is really like a consequential amendment is that later on in clause 3, it talks about the changing of, and I’m sure we’ll get to that, monthly reporting to every three months. Subsection (2)(e)(ii) makes that change.

Those are the main aspects of this clause.

Clause 5 approved.

On clause 6.

M. de Jong: Let’s, again, begin with the general question about dealing with the form and content of monthly returns.

It strikes me that what the ministry is attempting to do here is either add some things or bring some additional clarity. I wonder if the Attorney could confirm for the committee which or, if it’s both…. In what way are the amendments intended to accomplish that?

Hon. N. Sharma: This comes from, again, the work that we did with, particularly, non-profit organizations related to the administrative burden of this act.

What this change does is change the reporting requirements for government funding received to up to three months. You could still report every month, but you won’t be in breach if it’s up to three months after you’ve received that funding.

It gives the organization the leeway to be able to address the administrative burdens of reporting but still gets at the transparency that we’re looking for.

M. de Jong: As a consumer of information contained or released by the registrar and the public lobbyist registry, how will this change what information I, or a member of the public, am able to receive?

[2:45 p.m.]

Hon. N. Sharma: It’s all the same information that would be required and as exists already. It just gives that grace period of up to three months, in terms of reporting, when you’ve received government funding.

M. de Jong: Let me ask. To what degree? Or maybe it applies to all of them. I’m thinking about third-party sponsors, senior public officers, election advertising.

Is everyone captured by these provisions?

Hon. N. Sharma: The same definitions of how the act applies, generally, would apply to these provisions. It’s consultant lobbyists or any lobbying organization, very broadly.

M. de Jong: In terms of how the registrar reports information…. Am I correct that there would need to be a notation that the information contained, released by the registrar is accurate to within…?

It’s accurate on the basis of what people have reported but would have to disclose that activities…. Additional activities could have taken place within the previous three-month period that would ultimately be reported but have not been reported and need not be reported for up to three months instead of up to one month.

The accuracy of the information is altered to that extent. It’s accurate to within a three-month period, not a one-month period.

Hon. N. Sharma: Organizations would still be required to report their lobbying monthly. The only change would be…. If you’ve received government funding, it’s up to three months that you have to register.

I think this is in line with a lot of other jurisdictions, in terms of the timelines for reporting when government funding is received.

M. de Jong: The impetus for this change, as it related to government funding, came from the organizations themselves, the registrar, the ministry — all three or one of the three?

Hon. N. Sharma: They specifically came from a lot of work that was done by organizations representing the non-profit sector. It was bigger organizations like United Way B.C., Vancouver Foundation, Vantage Point.

They conducted a big study of some of the administrative impacts of various things with government, particularly the lobby act, in light of balancing transparency versus administrative burden. This was specifically one of the things…. We consulted with them and found that balance of lowering the administrative burden but still having the transparency.

Clauses 6 to 8 inclusive approved.

On clause 9.

Interjection.

The Chair: We’ll take a five-minute recess to get the support staff.

The committee recessed from 2:49 p.m. to 2:51 p.m.

[J. Tegart in the chair.]

The Chair: Calling the committee back to order.

Recognizing the Attorney General.

Hon. N. Sharma: Thank you, Chair.

I wanted to introduce my new team that’s jumped in on these provisions. I have Jenny Manton, the ADM for court services branch and Erin Turner, the director of policy and legislation. I want to thank them for their work.

M. de Jong: Definitions of emergency vehicles and capturing a sheriff’s vehicle in ways that it is not apparently captured now — where was the gap, and what are we trying to fix here in terms of….? Is it a sheriff’s vehicle for the purpose of doing what sheriffs are generally doing, which is transporting people to and from courts and correctional institutions, or is it other types of sheriff’s vehicles? Where is the gap that this is intended to address?

Hon. N. Sharma: This is something that not only the sheriffs have asked for, but also is to promote the health and safety of not only the public, but also the sheriffs.

Currently, as it stood, they were allowed to turn on their lights when they had a prisoner on board, but if they were on duty but encountered an emergency and pulled over to assist, they are not technically allowed to turn their lights on. You can imagine, that creates a safety challenge not only for the sheriff that’s parked on the side of the road to get out of their vehicle, but also for the individual they’re assisting. This just makes sure that that situation is captured under this legislation.

M. de Jong: So the mechanics of accomplishing that are, am I correct, to eliminate the words from the section that created the limitation on the use of emergency lights and sirens and that sort of thing?

Hon. N. Sharma: Yes.

M. de Jong: Not to suggest that anyone within the sheriff services is going to abuse this, but the result of this is: I’m a sheriff, I’m in my vehicle, I’m not transporting a detained person, but I receive information of any sort that causes me to think I should lend assistance in an emergency situation.

I can put my emergency lights on and I can put my siren on. For all intents and purposes, I am now entitled to the same designations, protections and abilities to operate on the road as a police car, an ambulance or a fire truck, other vehicles that are captured by the emergency vehicle designation.

[2:55 p.m.]

Hon. N. Sharma: I would take an opportunity to plug our great sheriff service in this province. They’re very highly trained, very exceptional individuals that show up for the safety of our courtrooms every day. They already have a statutory duty under the Sheriff’s Act to take action to provide assistance in circumstances where they might arrive first at the scene, like in a motor vehicle accident.

What these changes do is just enhance the safety of that situation, so they are allowed to turn their lights on to protect themselves and also whoever they might be assisting and any traffic that’s passing by.

Clause 9 approved.

On clause 10.

M. de Jong: Can the Attorney, with the assistance of her very able staff, paint a picture of an accident scene, why it’s required and how it operates to authorize sheriffs to do something tomorrow that they are not entitled to do today?

Hon. N. Sharma: As mentioned before, what this does is enhance safety. If they’re first on the scene…. Beforehand, they could only use their hazard lights. So this allows them to use their emergency lights and direct traffic, if needed, for the safety of that scene. If the police arrive and they’re still asking or in need of assistance from the sheriffs to continue to direct traffic, they could do that.

M. de Jong: My impression is that this, in no way, alters the authority or the power of a peace officer — a police officer being part of that definition. So, (a), is that the case? And (b), it expands the range of authority to specifically include and vest upon a sheriff the authority that a peace officer presently has?

Hon. N. Sharma: That’s correct. It in no way changes the definition of peace officer or their authorities.

M. de Jong: I don’t have the Motor Vehicle Act in front of me, so it may be, I suspect, that other sections provide an answer, but I’m going to avail myself of the Attorney and her staff.

In the subsections of this proposed clause 123, replacing the existing 123, where it speaks of preventing injury or damage to persons or property and permitting proper action in an emergency, are there limitations built into other sections of the Motor Vehicle Act around where that applies or how that applies in terms of motor vehicle–related incidents?

I’m trying not to be fanciful here, but a sheriff that happens upon a bank robbery scene…. Do these provisions apply in that circumstance? There’s not necessarily a motor vehicle incident at play, but most people would say there is a threat to public safety nonetheless.

[3:00 p.m.]

Hon. N. Sharma: What this provision does is really define the role of the sheriffs in a clear way. If a sheriff considers it necessary to ensure the orderly movement of traffic, to prevent injury or damage to person or property, to permit proper action in emergency, and that’s kind of been triggered — and they’re very highly trained, so they would be able to assess that — then they can assume the role of turning their emergency vehicle’s lights on and directing traffic.

The very first thing would be to call the police, as they’re trained to do so, until there’s action. In any number of scenarios, and the member raised one, if those are triggered for the sheriff in that assessment of the situation, then the ability to turn the emergency lights on and direct traffic would be at play.

M. de Jong: Thanks. That’s helpful.

In the context of the Motor Vehicle Act, what the Attorney has said makes eminent sense — that they would lend assistance in terms of the, as it says in sub (a), orderly movement of traffic. But there are then sub (b) and (c), which speak about preventing injury or damage to persons or property, and then a very general one, “permit proper action in an emergency.”

[S. Chandra Herbert in the chair.]

What are those intended to cover? They presumably are intended to convey some additional authority and, I suppose, some additional responsibility on sheriffs. The first one is pretty self-evident; the other two, sub (b) and sub (c), less so.

Hon. N. Sharma: All of these are contained in the sheriff’s ability to direct traffic and enact their emergency lights, which is what we talked about previously. So in the context of that, if they determine that it was needed to prevent injury or damage to a person or property or permit proper action in an emergency, then they could take on that responsibility of directing the traffic accordingly.

M. de Jong: I think we’ve come around to more or less answer my initial question. These additional powers/responsibilities are restricted in their application to traffic management-related issues. Is that correct?

Hon. N. Sharma: Yes.

M. de Jong: Thank you.

Here’s my last, sort of more general question that relates to something going back 100 years, when I sat in the Attorney’s chair, that I was curious about.

In the Lower Mainland, in the metro areas, the sheriffs are hard-pressed to fulfil their duties. There have been issues in the past around retention. I suspect my colleague will canvas some of that with the Attorney at the appropriate time in the spending estimates. All to say, sheriffs in those areas don’t tend to have a lot of spare time.

There are other parts of the province where courts may have more time available in their responsibilities to the courts and at certain parts of the day or times of the day.

[3:05 p.m.]

I recall being asked by sheriffs from those areas, located in those parts of the province: “Look, we get training in some of these areas around traffic management and traffic safety. Why not let us put that training to work?”

This section speaks of an emergency situation where sheriffs happen upon the scene and just coincidentally happen to be there, but has the Attorney thought about circumstances where sheriffs who received this additional training, that we’ve heard about again today, might actually be deployed?

Why am I interested? Why should someone be interested? Because in some of those parts of the province, we have dramatically elevated levels of crime, and it might free up police officers to investigate other forms of criminal behaviour. It’s a way of perhaps sharing the burden a little bit differently, tapping into the expertise and, apparently, the interest sheriffs at one time had to fulfil some of those traffic management-related functions and allowing police to focus their attention on other areas of public safety that are equally, if not more, important.

A long-winded way of saying: is the Attorney open to the idea in situations where sheriffs have the time and have the interest to actually deploy them purposefully and on a more regular basis to traffic management duties?

Hon. N. Sharma: I’ll start by saying that sheriffs play, and the member would know, a very, very important role in terms of the proper, safe conduct of our justice system. That is in the courtroom and transport of accused. It’s very key, and we are actively recruiting and retaining sheriffs to get more and more into our system. So that’s my primary focus right now, and I really see the good work that they do.

We’ve recently done a lot of work to understand how to strengthen and grow our sheriff service, and one of the things that we heard from that is that sheriffs are asking about scopes of practice and what that might look like in today’s environment.

We do intend to engage the service in that conversation, and we’re open to that, but I think it all comes under the context of their primary role, which is in our justice system.

M. de Jong: That’s fair. I’ll try to explore that just briefly. No argument from me that the primary responsibility for sheriffs remains the justice system, proceedings in courts and the safe transfer of detained persons to and from the courts, whether they are in a local downstairs lockup or at a provincial or federal corrections facility.

People are undoubtedly not aware that every day that happens on a fairly widespread basis, where detained persons are brought to and from the courts. No argument from me that that needs to remain the primary focus.

The Attorney has confirmed that sheriffs, not in all parts of the province but in some, have made the case that where they are not engaged in those duties, rather than sitting around, they’d like to put their training to work in other areas of public safety.

My general question is: is the Attorney open to exploring that conversation with sheriffs and exploring the possibility, in circumstances where it is appropriate, of an expanded scope of work practice?

Hon. N. Sharma: Yes, I am, in the context of the deep work that we’re doing with our sheriff service to uplift not only the work that they do but to support them, because we know how vital they are to our court services. I am open and our team is open to engaging in conversations with sheriffs of what that might look like, and I will not predetermine the outcome of those conversations here.

Clauses 10 and 11 approved.

[3:10 p.m.]

The Chair: I understand there’s been a request to stand down clause 12 until I believe it was 19 and to begin with clause 20.

Sorry, acting House Leader, I should have that request officially.

Hon. L. Beare: Yes, thank you, Chair.

Can we please stand down clauses 12 to 19, as the minister is in estimates?

Clauses 12 to 19 inclusive stood down.

The Chair: All right. So we are going to stand down clauses 12 through 19, and that means we will be starting with clause 20, which is relating to the Ministry of Finance amendments.

The Chair: We’ll just wait for the appropriate parties to join the House, and we’ll get going.

Hon. L. Beare: Thank you. We’ll request a five-minute recess.

The Chair: The acting House Leader requests a five-minute recess. I grant such a recess. Please come back promptly. Thank you.

The committee recessed from 3:11 p.m. to 3:16 p.m.

[S. Chandra Herbert in the chair.]

The Chair: All right, Members. Let’s call this committee back to order. We’re here with Bill 9.

On clause 20.

Hon. N. Sharma: I just wanted to take a moment to thank the team that’s joining me here from the Ministry of Finance. We have Tiffany Norman, executive director, policy and legislation division, and Matthew Yong, strategic advisor, policy and legislation division. I just want to thank them for their work and for joining me.

P. Milobar: Thanks to the minister for filling in for the time being. Obviously, the staff will be providing much more nuanced answers for the minister to provide to us. That’s great.

First off, can the Minister explain the implications that this definition repeal will have on the general public’s understanding of an insurer?

Hon. N. Sharma: From the perspective of the general public, it provides clarity to what the definition of “insurer” means, to make it clear that it always means an insurance company. That’s consistent with other acts in the definition of “insurer.”

P. Milobar: In this clause, they’re also adding a definition around personal information. I can get that it has the same meaning, as it says, as in the Freedom of Information and Protection of Privacy Act. Why was there the need to insert “personal information” into clause 20 as well?

[3:20 p.m.]

Hon. N. Sharma: The reason for the addition of this definition, which the member pointed out, was that in clause 29, which I’m sure we will get to, it uses the term “personal information.” Because of that, it required a definition.

P. Milobar: What are the anticipated impacts on regulatory oversight and consumer protection of altering the definition of an “insurer” to exclude agents and adjusters?

Hon. N. Sharma: There generally is no impact, to the member’s question.

What this does is, really, provide clarity that the definition of “insurer” means insurance corporation. In particular instances, which are in the act, when it does need to mean something broader, it expressly says that or includes that.

P. Milobar: Thanks for that.

Will this change in definition in any way affect the responsibilities and liabilities of agents and adjusters compared to insurers?

Hon. N. Sharma: No.

P. Milobar: What prompted the decision to redefine “insurer” within the context of the one FSR project and ongoing regulatory reforms?

Hon. N. Sharma: The sole purpose of these amendments was to seek the clarity that I described before.

P. Milobar: Are there any specific case studies, incidents or anything like that that have led to the redefinition? Is there highlighting of the need for the clear distinction between the entities?

Hon. N. Sharma: This is largely just a housekeeping matter. Upon review of the act, the team here identified that, in reality, most uses of the word “insurer” referred to the insurance corporation and just those exceptional uses didn’t include that. So it was just a matter of housekeeping to clarify.

P. Milobar: A lot of times changes like this are made to try to better align with other provinces or similar jurisdictions, international standards, that type of thing.

Does any of this redefinition align with…? Or was it checked to see if it will align with those regulatory changes that may be happening with international standards on financial services regulation?

Hon. N. Sharma: Thanks for the question.

Yeah. You’re correct in pulling that up, in the sense that this new definition does align with the Insurance Act and the financial services legislation of Canada and other provinces, which is something you always seek to do with financial legislation.

Clause 20 approved.

On clause 21.

P. Milobar: Just a question or two on this clause as well, Mr. Chair.

Can the minister provide an example of how this substitution will impact people in our communities?

The Chair: Minister for advanced education.

[3:25 p.m.]

Introductions by Members

Hon. L. Beare: With us in the gallery today, we have a group from the Ministry of Health and the provincial health team. I’d like to take the opportunity to welcome them to the chambers. We’re having some exciting debates here today.

If everyone would please join me in making them welcome.

The Chair: Thank you to the Minister of Post-Secondary Education and Future Skills.

Debate Continued

Hon. N. Sharma: This doesn’t change the meaning of anything, nor does this change impact the public. It is in line with what we were talking about previously, which is that with the definition of “insurer,” as defined to mean insurance company, there are instances where that definition doesn’t fit. This is one such instance.

Section 66(2) requires an insurance company member of a prescribed insurance compensation plan…. It’s not just an insurance company, it’s an insurance company that’s a member of an insurance compensation plan. The definition was switched to “entity” just to make sure that there is a distinction noted there and that there was clarity provided.

Clause 21 approved.

On clause 22.

P. Milobar: On the previous clauses, there was a lot of discussion around electronic filing and access and things of that nature. On clause 22, can the Minister provide an example of how people will be able to access copies of the forms once they are filed?

Hon. N. Sharma: In this circumstance, it’s not a public-facing document. I’ll explain what has just been explained to me: that in this instance, an insurer would already have a form that they may have filled out with the client or whoever they’re working with.

[3:30 p.m.]

In this circumstance, the superintendent may order that that insurer, and that’s defined under the sections, file a copy of that form with them to see if it’s in compliance with the rest of the regulatory regime. It’s not really a public-facing thing. It’s more of an internal thing, for regulation.

P. Milobar: Were stakeholders, like insurers and the licensees, consulted on the language changes, and if so, what feedback was incorporated into these changes?

Hon. N. Sharma: The substantial change here is a change from insurer to insurer or a licensee under that section, so it doesn’t really change any obligations or requirements that are currently on insurers or any other stakeholder in the legislation.

It just provides that clarity of what is meant, or what is needed to be meant, by adding it on top of insurer, by including licensee. Because of that, there was no consultation needed to drive any changes of policy. It was merely a housekeeping issue.

Clause 22 approved.

On clause 23.

P. Milobar: Just to confirm with the minister that I’m reading this correctly. So this seems to be that it’s adding a requirement that the sale of insurance through the use of an electronic agent meet the requirements established in rules made by the Insurance Council of British Columbia, as well as those established in rules made by the B.C. Financial Services Authority.

This would indicate to me that this means if you go online to access an insurance product, it has to meet the standards that a product being sold in B.C. would typically meet, even if the electronic agent or institution that we’re accessing electronically is from a different jurisdiction.

Hon. N. Sharma: In terms of the purpose of these provisions, as it was just explained to me, the purpose of it is the B.C. Financial Services Authority, at this stage, regulates insurance companies, while the Insurance Council regulates licences and regulates insurance agents and salespeople. So in that context, we have two regulators, and under the current regime, the B.C. Financial Services Authority has rule-making power, but the Insurance Council does not.

These changes add the council into the provisions under the…. You’ll see the amendment. It adds the term “or the council, as applicable,” just to clarify that.

I know the member asked a question. If he could just give us some more clarity in terms of what that was, then I’ll try to see if I can answer it.

[3:35 p.m.]

P. Milobar: Well, the question I had, actually, was derived from the explanation in the bill in terms of what Financial Institutions Act,section 92.2, which clause 23 deals with…. The explanation is “adds a requirement that the sale of insurance through the use of an electronic agent meet the requirements….”

I guess the question is: is this just for the sale of insurance products internal to B.C. but through an electronic means? In other words, I electronically communicate with an insurance agent in Kamloops while I’m down in Victoria to deal with an insurance product. Or is it, also, that I’m able to electronically deal with an insurance agent in Alberta or Ontario through electronic means, but that agent would then still have to actually be abiding by the regulations within British Columbia?

Hon. N. Sharma: Yes. The member got it correct, as I understand it. Even if it’s outside of the province of B.C., the trigger point is a sale to somebody that’s located in B.C. If it’s a call centre that’s in Alberta or some other jurisdiction, and that is happening, then they are required to comply with the rules under this regime.

P. Milobar: I asked this question somewhat with the backdrop of what we see happening in the gaming world.

There are all sorts of rules around what you can or can’t do in terms of online gambling. You’re technically not supposed to be on Bet365 if you live in B.C., or any of the ones, but there are workarounds. There are VPN; there’s all this type of thing. You just click the box. Some are bad actors. They don’t really geofence their product very well. Others are very reputable operators, and they stay within the confines of the province they’re supposed to operate in or the jurisdictions.

What type of oversight…? Is there any ramping up within these agencies to make sure there’s proper oversight and scrutiny and auditing or things of that nature to make sure that online access is reasonably meeting that standard of meeting what is supposed to be happening under British Columbia law in terms of the provision of those particular insurance products people might be seeking out?

[3:40 p.m.]

Hon. N. Sharma: The general oversight…. The member asked a question about compliance, enforcement and oversight to the regime. The general ability to do that is under the B.C. Financial Services Authority and the Insurance Council as independent regulators. They have the compliance, oversight and regimes, which include penalties and all the things in their toolkit.

The change that this does is to clarify in certain circumstances where the Insurance Council would have that rule-making power. So in a sense, it broadens their ability to regulate over certain things.

Clause 23 approved.

On clause 24.

P. Milobar: I’m just double-checking to see if they want to swap ministers before we dive into this next clause or not.

On clause 24, this is about amending “in subsection (1) by striking out ‘within 90 days’ and substituting ‘within the prescribed period’” and “in subsection (1.1) by striking out ‘within 60 days’ and substituting ‘within the prescribed period.’”

Can the minister provide an example of the timeline that this new prescribed period will come into effect, given that we had fairly clear definitions in the legislation in terms of 90 days and 60 days? And now it’s a little more open-ended, of “within the prescribed period.”

Hon. N. Sharma: The reason for these changes is to provide flexibility in those timelines and also to align, as is important, with financial laws with other jurisdictions like Saskatchewan, Ontario, Quebec, Prince Edward Island and Newfoundland and Labrador that also have prescribed deadlines.

The deadlines will be put in through regulation, and there will be a consultation process with industry to decide what they will be. So they will be listed out in regulation.

One of the reasons is that there could be, sometimes, conflicting financial reporting requirements from a parent company with their subsidiary or something like that. So that’s why there was a need for flexibility in the timelines.

P. Milobar: Well, the minister touched on partly what my follow-up question was going to be, and that’s around a timeline for actual implementation.

[3:45 p.m.]

This section, I note, comes into effect by way of order-in-council, not royal assent, as most of the rest of the clauses in the financial sections of the miscellaneous stats bills do.

I’m just wondering what the expected timeline is for clause 24 to actually be truly amended and in effect. I recognize we’re amending it today, but the real meat of it is: when does it actually, truly take effect? What is the anticipated consultation and then turnaround within OIC to move forward with this?

Hon. N. Sharma: I’m told by the team here that the goal is to have the regulations in place as soon as possible. That will depend on the consultation process, but there’s no set timeline.

P. Milobar: Well, thank you. I think everyone would hope that government would do things as soon as possible, but that’s not the reality. So looking for a little bit more clarity on that timeline, I guess, particularly with the backdrop of a looming provincial election.

How does the election factor into the timeline for consultation, and can this consultation and then order-in-council be done before a general election or writ drop? Basically, we have until around the beginning of September, second week of September, and then the business of government starts to come to a halt in terms of things like this. This is my understanding of how government typically works, regardless of political stripe, because of the election.

Is there an expectation that this will all be wrapped up before the writ period and that we’ll see the OIC then, or is this one of those changes that could be lingering out there for quite an extended period of time, actually?

Hon. N. Sharma: We don’t expect this to be a contentious issue. Consultation is important. One of the things where we can guide this is the fact that other jurisdictions have prescribed regulations where they set out timelines. Oftentimes, in this type of regulation, we do try to mirror other jurisdictions. You know, given the fact that we’re going to be working on it as soon as possible, it is possible that in this mandate we would have the regulations in place.

P. Milobar: One thing that has always intrigued me with the post-2020 election is the fact that with the government having a very firm number in the majority…. It’s not like the first ’17-20 timeframe where, depending on the day and who is not feeling well, the government may or may not fall. There’s obviously a stronger base of votes for the government to move through legislation. They can bring forward legislation with pretty good certainty it’s going to pass, I guess, unless it’s the Land Act, and then it doesn’t come forward at all.

In terms of this, why was there not consultation already happening if it’s not expected to be contentious, if it’s going to be built primarily on what other jurisdictions are already doing? I mean, frankly, this government has people sign NDAs all over the place to work on things ahead of time. Why, in this case, on something especially with the backdrop of a looming election, was there not already that work being done?

Maybe you’re not signed off by the time this bill comes forward from the institutions but pretty close to knowing exactly what was going to happen in terms of those regulations, so that we could see them advance forward perhaps quicker. I’ll give the minister a couple of examples.

[3:50 p.m.]

We had housing bills where we spent days asking the minister what the regulations were going to be, and the minister said he couldn’t provide those answers because they were still working on them. Then, five days later, there was a 57-page document of regulations and rules around housing released publicly after it was passed.

We had FOI legislation where we were talking about fees for days on end, and the minister couldn’t provide because the government was still consulting. They were still working on it. Literally minutes after the bill was passed and royal assent was given, the regulations magically appeared.

I’m wondering why, in something like this, the government…. If it’s truly not meant to be contentious and meant to just align with what other provinces are doing, why hasn’t that work already been started in anticipation of this bill passing, knowing that government has the majority and will pass regardless? Let alone that it’s not contentious. It’s not like the opposition is opposed to this.

It just seems like this is going to be a piece of legislation that people will hear about, think changes have been made and then find out, in fact, it’s not actually law. It has not come into force and effect yet because we’re still waiting for cabinet to sign off. So why has there not been that pre-work done in this case?

Hon. N. Sharma: The reason for these particular changes from 90 days to a prescribed period is because we heard from people that there is a need for more flexibility. We are following nothing more than the proper procedures related to legislation, where we wait for royal assent before we go out to consult.

As I expressed to the member, we don’t expect it to be contentious. We expect there to be lots of other examples that we can use in terms of what the prescribed timelines or periods could be in different scenarios. We would expect that we could put them in place as soon as possible.

P. Milobar: Can the minister then share with us what is out in Canada right now for typically actioned prescribed timelines so that we have a ballpark window of what people can reasonably expect, of what the timelines will look like, what “within a prescribed period” would look like, once that consultation is done?

[3:55 p.m.]

Hon. N. Sharma: My team over here is looking for answers, but in the interests of time, if the member wants to ask another question, we can get back to him on other examples.

P. Milobar: Sure. I think it is important because the whole consultation is going to be based on, as the minister has said, what other jurisdictions are doing and the intent to align. If it’s truly not that consequential in terms of being confrontational with the industry, it should be a fairly quick and smooth and easy process. But that’s also why I’m confused why it hasn’t started.

Maybe just to clarify with the minister, the minister says: “Well, we don’t consult until royal assent on bills when it comes to regulation.” Royal assent on clause 24 is completely irrelevant, because clause 24 is by order-in-council. The rest of the bill matters for royal assent, for the most part. Clauses 24 and 25 don’t.

I guess I’m trying to reconcile the minister’s previous answer around not consulting because of awaiting royal assent on this bill, when it’s actually order-in-council that will then trigger this clause to come into effect by law.

Given the potential complexities, as the minister has said in a previous answer around other factors like filing dates and periods that other head offices may have and not wanting to conflict with that, but at the same time actually…. It sounds like the ministry is well aware of these potential impacts. They are well aware, though, that they also want to align it with more of what is going on in the rest of the country. What is…?

Again, why not the pre-consulting, and why can’t we, at this point, publicly acknowledge the ballpark of what the government is hoping to get to with these regulations, given that they are going to be based on national standards?

One would assume, when the bill was being drafted, and with the intent that the ministry staff would already know somewhat what they were driving towards for an end-point, or…. It’s a strange way to bring forward changes if you don’t even have a ballpark order of magnitude that you’re trying to get to, to have an end point.

Hon. N. Sharma: Just to answer the member’s question, the law, until we receive royal assent and this becomes law, is 90 days and 60 days. Once it switches, if this is past its prescribed period, then we have the ability to speak and do our consultation process with the community or the stakeholders at issue to get a real good made-in-B.C. solution for the prescribed timelines.

With that, I move that the committee rise, report progress and ask leave to sit again.

Motion approved.

The committee rose at 3:58 p.m.

The House resumed; the Speaker in the chair.

Committee of the Whole (Section B), having reported progress, was granted leave to sit again.

The Speaker: Members, I am advised that Her Honour the Lieutenant-Governor is in the precinct, so please remain seated. We will advise you as soon as she becomes available. We will continue with our procedures.

Her Honour the Lieutenant-Governor requested to attend the House, was admitted to the chamber and took her seat on the throne.

[4:00 p.m. - 4:05 p.m.]

Royal Assent to Bills

Clerk of the Legislative Assembly:

Employment Standards Amendment Act, 2024

Municipal Affairs Statutes Amendment Act, 2024

Child, Family and Community Service Amendment Act, 2024

Social Development and Poverty Reduction Statutes Amendment Act, 2024

Athlii Gwaii Legacy Trust (Winding Up) Act

Commercial Transport Amendment Act, 2024

In His Majesty’s name, Her Honour the Lieutenant-Governor doth assent to these acts.

Supply Act (No. 1), 2024

In His Majesty’s name, Her Honour the Lieutenant-Governor doth thank His Majesty’s loyal subjects, accepts their benevolence and assents to this act.

Hon. J. Austin (Lieutenant-Governor): ÍY SȻÁĆEL NE SĆÁLEĆE.

As always, it’s wonderful to join you today.

I have to say I really do enjoy these opportunities to come and see all of you, and generally when I come in, people seem to be smiling. I know it’s only because it means you get some time off. I understand you have a couple of weeks’ break.

I simply want to say I hope you take that time to enjoy your families, get a little bit of downtime, relax, and I’ll look forward to seeing you all again soon.

HÍSW̱ḴE SIÁM. Thank you so much.

Her Honour the Lieutenant-Governor retired from the chamber.

[4:10 p.m.]

[The Speaker in the chair.]

Hon. R. Kahlon: In the main chamber, we call Committee of the Whole on Bill 9, Miscellaneous Statutes Amendment Act.

In the Douglas Fir Room, I call Committee of Supply for the Ministry of Forests.

In the Birch Room, Committee of Supply for the Ministry of Environment and Climate Change Strategy.

Apologies, hon. Speaker. In the Douglas Fir Room, I call continued debate of the Emergency Management and Climate Readiness estimates.

Committee of the Whole House

BILL 9 — MISCELLANEOUS STATUTES
AMENDMENT ACT, 2024

(continued)

The House in Committee of the Whole (Section B) on Bill 9; J. Tegart in the chair.

The committee met at 4:14 p.m.

The Chair: We’ll call the committee to order. We’re dealing with Bill 9, Miscellaneous Statutes Amendment Act, 2024.

Clause 24 approved.

On clause 25.

P. Milobar: I recognize that clause 25 is worded other than the fact of section 163 versus section 127 being amended. It’s the same in terms of striking out within 90 days and striking out within 60 days and substituting both of those within the prescribed period. I recognize that on the front end.

[4:15 p.m.]

I’m wondering. Is there any substantive difference between these two? In other words, is there going to have to be a totally separate consultation done on clause 25 than clause 24? If not, will they just be at the same time? It’s essentially the same topic, same issue, just two different clauses that need to be amended to make everything right within the legislation.

Hon. N. Sharma: Yes. They’re essentially the same in a lot of ways. So the consultation would be done together.

Clause 25 approved.

On clause 26.

P. Milobar: Clause 26 appears to make it possible for insurance agents and employees to sell insurance across geographic boundaries within Canada. What prompted the decision to allow this to happen?

Hon. N. Sharma: Under the Financial Institutions Amendment Act, 2019, what was added was the ability to have restricted insurance agents as licensees. Currently that’s not enforced. Right now the regulations and licensing regimes have been worked on with the Insurance Council.

What the changes under this do is recognize a common business model, which is that some restricted licensees utilize international or national call centres to do their work. So this amendment will provide flexibility for restricted licensees to structure their operations as needed.

P. Milobar: Has there been any modelling done or concerns that this would further enable fewer and fewer people employed within British Columbia within the insurance sector? Companies could be even more app-based and driven. As a result, your products and that can be accessed and serviced by, as the minister just said, call centres versus physical locations within British Columbia where there’s a physical human behind a desk dealing with the customer’s needs.

[4:20 p.m.]

Hon. N. Sharma: It’s just important to put this in context.

These particular amendments — or the regime that was related to restricted insurance agents and licensing them — are about an area that is currently exempted and needs to be brought into a regulatory regime in a more defined way. That’s the work of not only these amendments but the work since 2019 to add this.

These are examples where insurance is sold incidentally to the licensee’s ordinary business. You can think of examples where they’re not insurance brokers necessarily, but it’s incidental to their other business to have insurance as a product. Once the regime is implemented, it would make it easier for the public to access insurance products when they’re purchasing something else, which is happening already.

That was the reason that there’s not a need to do modelling related to any changes that might happen as a result of these amendments. It’s just bringing, maybe, existing things into a regulatory regime.

P. Milobar: Bringing it into that regulatory regime…. Was there thought…? Are there already, still, the protections, then, in place on things like — we referenced it earlier — personal information and things of that nature? If the call centre that the person is accessing is in a jurisdiction that, obviously, has different information laws than British Columbia, do the British Columbia protections still kick in for that person’s personal information?

We’re dealing with insurance products. Typically, there’s a lot of information that could potentially be shared, at that point, with the company. I recognize the client might be doing it willfully and wanting to access that service. They may not understand what jurisdiction they’re actually phoning into or communicating on a chat, an electronic chat, back and forth, let alone what their privacy laws of that jurisdiction might be.

Are there those further protections either within clause 26 or elsewhere within the act itself?

Hon. N. Sharma: Yes. Once this is brought into place so that there are licensees as a restricted insurance agent, then, as we canvassed earlier, under previous sections, they would be expected to comply with all of the regulatory oversight related to the sale of that insurance product in British Columbia.

Clauses 26 and 27 approved.

On clause 28.

P. Milobar: I’m just wondering if the minister could tell us…. What will be the process for disclosing information or records for the purposes stated in this section?

[4:25 p.m.]

Hon. N. Sharma: With respect to the perspective of the public, it doesn’t change any of the privacy protections or personal information protections under any of the clauses in general. It’s very specific to reducing the administrative burden of what was existing before, where the Insurance Council had to get the consent of the BCFSA to exchange information through administering what is their responsibility.

What it does is remove that requirement and that administrative burden in terms of their processes.

P. Milobar: It says that the “information or records described in subsection (1) may be disclosed.” It’s still not a requirement that someone has to. It’s at their discretion.

Not needing the consent — I get that, of speeding up the process — of the B.C. Financial Services Authority or the superintendent, not having to be obtained anymore….

Can we get a sense of the order of magnitude and how many times this was being sought? Was the BCFSA overwrought with requests and a big backlog? Is that what has prompted this change? What is the true impetus for why this needs to be changed in the first place?

Hon. N. Sharma: Really, these changes are to address an unnecessary administrative burden. The Insurance Council and the BCFSA regulate different areas of the professions. We went through that earlier. There was actually no need for that extra step of consent because of their clear jurisdictions and the clear use of that information.

It just gets at removing that administrative burden, which was unnecessary.

Clause 28 approved.

On clause 29.

P. Milobar: I do recognize that we’re now at the clause that triggered the personal information, the definition being inserted earlier on.

Can the minister provide an example of how a person will be informed about the reasons for and the uses of the collection of their personal information and how that will be handled?

[4:30 p.m.]

Hon. N. Sharma: Actually, this introduction of this provision is very specific and narrow, and it remedies something that was happening under the Trust and Deposit Business Exemption Regulation.

The collection of a form requires the collection of personal information through a personal information return. In order for that to happen, we need to clarify very clearly that not only is it allowed for them to collect that personal information, but it’s also protected under FOIPPA and all the other protections of privacy that would apply to that.

P. Milobar: I’m assuming, then, that there are provisions that also mean that the person needs to be provided that level of detail about how their personal information can or can’t be used.

Hon. N. Sharma: Yes. In amending this provision, we consulted very clearly with legal counsel in terms of our compliance with FOIPPA and these amendments. So, yeah, that would all fall into place with these amendments.

Clause 29 approved.

On clause 30.

P. Milobar: In (4.1) of this clause, it says, “A voting member of the council whose term of office has expired may continue to hold office until a successor is appointed,” but there’s no timeline spelled out for how long that process may be allowed to continue on for. Why is that, and what is the timeline that a successor needs to be appointed before that person is deemed to be no longer on the board?

[4:35 p.m.]

Hon. N. Sharma: I just want to put this provision in context. As often happens when we contemplate legislation, we want to remedy, in the instance of extraordinary circumstances, to make sure that business can continue. This is just part of our modernization of the board governance that is in line with a lot of board governance modernization.

There are a lot of other provisions in the act that talk about timelines and appointments and assurances that there’s the right number of people in the board governance structure, but in the instance where…. You can think of an exceptional circumstance like COVID. We had a lot of exceptional circumstances there, where you have an instance where there is a council member whose term is expired, but there isn’t a successor in place.

It’s important, in that circumstance, to have clarity that the business can still continue, that there still is a voting member in that instance. So it’s meant to capture an extraordinary circumstance and to make sure that there’s no gap in governance in that circumstance.

P. Milobar: I can totally understand and appreciate that. I guess the question is…. It seems to be worded fairly open-ended in that there is no actual end point. It just says until a successor is appointed with no time frame whatsoever, no…. You know, they must appoint, within six months, someone else, and then a subclause to what happens if they’re still unable after the six months, but at least something to indicate there might be a bit of urgency to try to figure out the situation and find someone.

Is it truly open-ended, and if not, then can the minister point to where that becomes no longer open-ended? In fact, it forces the council to act maybe a little quicker to make sure that there’s not that lack of a successor, I guess.

I mean, this ties into term limits, essentially, in terms of length of service on the council. We’ve all seen boards out there and other decision-making entities where people really don’t want to leave or people that want people to stay longer than they really are supposed to be allowed to. There are ways to extend, and this seems to be a way for them to be able to extend without actually having an urgency to replace.

Hon. N. Sharma: Yes, as I mentioned before, this is in the instance of a pretty extraordinary circumstance because of the functioning of the rest of the act that talks about appointments and how governance structures will work related to that. But there is an ultimate power that the Lieutenant-Governor has to rescind an appointment in the situation of abuse that the member raised, and that would remedy any abuse of that provision.

P. Milobar: I’m assuming it’s the BCFSA that would be overseeing the board in terms of how they’re conducting and be the ones that might be alerted to needing to step in to remedy the situation.

Hon. N. Sharma: In this particular instance, it would be the Insurance Council of B.C.

The Chair: We’re going to do a two-minute recess.

The committee recessed from 4:39 p.m. to 4:40 p.m.

[J. Tegart in the chair.]

Clause 30 approved.

On clause 31.

P. Milobar: This is a clause dealing with…. “If a voting member is unable to attend personally any meeting of the council, the chair of the council may nominate a non-voting member who is of the same representative character as the voting member to attend the meeting in place of the voting member.”

I understand the idea around the phrasing of “same representative character.” That, in the context of a board, makes sense. Are there any other criteria that the chair must follow or for the council to abide by when choosing a non-voting member to attend the meeting in place of a voting member? Is that the sole criterion that the board chair has the discretion to invoke?

Hon. R. Kahlon: Staff have informed me that if a member is, for example, doing life insurance and is not available, it only can be somebody who is licensed as a life insurance official that can come in.

P. Milobar: It also says that it allows the chair to nominate. Is the process that the chair is nominating a name of a non-voting member to the rest of the council, and the council approves that name, and then that name is allowed to be a participant, as a voting member, for that meeting? Or is it at the sole discretion and appointment of the chair?

Hon. R. Kahlon: It’s at the discretion of the chair. The chair can appoint directly.

P. Milobar: I’m making a bit of an assumption, but it’s better to have it on the record, I guess. The assumption would be, obviously, that the non-voting member, who is now going to act in a voting capacity for that one particular meeting, would have full access — including any in-camera-type documents and discussion, and, if needed, would then be signing off on the same code-of-conduct type of scenarios that voting members would have already gone through.

[4:45 p.m.]

Hon. R. Kahlon: I was asking a few questions so that I’m grounded on all the pieces.

The member would be correct, as he says, that whoever is coming in would have access to the documents that are required for that meeting.

Clauses 31 and 32 approved.

On clause 33.

P. Milobar: This is (k) in section 225.1. Subsection 2 is amended by adding the following paragraph: “(k) for the purpose of section 92.2 (2), establishing requirements for insurance agents and insurance salespersons who issue, deliver or offer to undertake contracts of insurance through the use of electronic agents.”

We’ve canvassed a lot on the electronic stuff leading up to this. I get the broader concept here. I guess the question, though, is that it’s kind of general, in saying that it’s establishing requirements, but it doesn’t tell us what those requirements actually are.

Why that’s relevant is that clauses 24 and 25 were the only two that come into effect by order-in-council. This clause will come into effect by way of royal assent, and there’s no real detail as to what the established requirements for insurance agents and insurance salespeople are going to be. Where would one be able to look up what those actual requirements are?

Hon. R. Kahlon: Two things. This is clarifying rule-making authorities in this section. The B.C. Financial Services Authority regulates insurance companies, while the Insurance Council licenses and regulates insurance intermediaries, including restricted insurance agents.

This amendment is a technical correction to the Financial Institutions Amendment Act, in 2019, which incorrectly assigned the power to make rules respecting the online sale of insurance by insurance agents and salespersons to the B.C. Financial Services Authority.

The rules right now don’t exist. There’s a comprehensive process that has to happen. Public engagement still has to happen, and then it has got to come to the minister for sign-off before it’s public.

Clause 33 approved.

On clause 34.

P. Milobar: As I mentioned, we’ve done a lot of discussion on various clauses around online and online sales and all of that. It’s interesting. The clause 34 note says that it “removes the requirement that the records published by the Insurance Council of British Columbia be published online.”

I guess it just seems like a reverse. You have municipalities struggling right now, trying to figure out how they’re going to have a newspaper of record to publish in because there’s not a physical newspaper, and we’ve had to change laws around electronic notifications being valid and legal. Yet here it seems like we’re removing the piece of technology that everything is moving to.

What is the logic behind saying that they no longer have to publish something online? If not online, where are they reasonably expected to be publishing still, for access, for their members to be able to see what’s going on?

[4:50 p.m.]

Hon. R. Kahlon: By crossing out “online,” it doesn’t mean that they won’t be online. They still will be, but now they’ll have the ability to also publish — through print, through newspapers, through magazines — in different ways beyond just online. So online still will happen, but they’ll have the ability to do others as well.

Clause 34 approved.

On clause 35.

P. Milobar: In clause 35, how will the new enforcement powers enhance the regulatory body’s ability to collect fines from current or former licensees?

Hon. R. Kahlon: The amendment will allow the Insurance Council to file, with the courts, an order imposing unpaid fines for contravention of the Financial Institutions Act and its regulations by licensees, former licensees or any other officer, director, employee, controlling shareholder, partner or nominee of the licensee or former licensee. The unpaid fines will be a debt owed to the Insurance Council, which is enforceable by the courts.

Clause 35 approved.

On clause 36.

P. Milobar: This is striking out “its powers” and substituting “the superintendent’s powers.” Am I correct in assuming that this is not providing any new powers to the superintendent and that it’s simply clarifying, and a language change to better reflect whose powers it is?

Hon. R. Kahlon: Yes, the member would be correct.

Clause 36 approved.

On clause 37.

P. Milobar: Again, just to clarify that with 37, the same as 36, this is just language cleaning up around “its supervision” versus “the superintendent’s supervision.”

Hon. R. Kahlon: Yes. Again the member is correct.

Clauses 37 and 38 approved.

On clause 39.

P. Milobar: Here we go; let’s see if I can go three for three. This is around the Mutual Fire Insurance Companies Act. It really looks to be just a housekeeping amendment. Are there any implications that will change the definition of “registrar,” in terms of impact to the general public?

Hon. R. Kahlon: There would be no change at all.

Clause 39 approved.

On clause 40.

P. Milobar: There has definitely been a rise in the difficulty of obtaining fire insurance, especially in wildfire-affected communities in the Interior. Will any of these changes do anything to help those residents that we’re seeing, on a yearly basis, being more and more impacted in trying to access fire insurance, as it relates to wildfire impacts?

[4:55 p.m.]

Hon. R. Kahlon: It’s important to note that there’s only one company incorporated under this section. It’s a technical change. Before, it was really restrictive only to fire insurance, and now they’ll be able to provide different types of insurance.

P. Milobar: To clarify then, this will enable them to provide other forms of insurance that they’re currently not able to provide under the act?

Hon. R. Kahlon: This one company that falls under this, by this change, they’ll be able to better reflect what type of breadth of insurance they offer in the title of their name.

Clause 40 approved.

On clause 41.

P. Milobar: In what ways do the specificities of the new name, compared to the ways that the mutual fire insurance company is named in other provinces…. And what time frame does the minister foresee the approval process taking for any new name?

Hon. R. Kahlon: This is a very technical change. This piece of legislation is over 100 years old, and only one company is reflected in it. This just allows them to better reflect in their name the services that they provide.

Clause 41 approved.

The Chair: We will take a two-minute recess.

The committee recessed from 4:57 p.m. to 4:59 p.m.

[J. Tegart in the chair.]

The Chair: I call the committee back to order.

On clause 42.

P. Milobar: Can the minister confirm that on subclause 42(b), it’s simply creating a capital I to the word Indigenous. It’s just simply a spelling correction.

Hon. R. Kahlon: I think he just wanted me to stand up to say he was correct again, and I will.

P. Milobar: Well, as much as I like to hear the minister repeatedly tell me that I am correct, that wasn’t really the case. It’s just because, of course, some of these changes are very basic and some we just want to make sure we’re not missing some broader implication of a change.

[5:00 p.m.]

In terms of the overall change in clause 42 and the definitions, what was the consultation process like with the nation on changing the definitions?

Hon. R. Kahlon: The shíshálh Nation was consulted and reviewed a consultation draft of the legislation, and it’s supportive of proceeding with the amendments.

Clause 42 approved.

On clause 43.

P. Milobar: Can the minister explain why in paragraph (d), it’s being replaced with “the council of the shíshálh” — I’m probably going to mispronounce it; it’s not intentional; I do apologize to the nation if that happens — rather than as a nation government district? It’s really just around the replacement of the council of the nation rather than the nation government district.

Hon. R. Kahlon: Yeah, that’s the name, the shíshálh Nation. That’s the way they would like to be referred to.

Clause 43 approved.

On clause 44.

P. Milobar: Just if any of the changes in clause 44…? Do they create any changes in the delegation of powers of duties for decision-makers?

Hon. R. Kahlon: The amendment doesn’t change the intent of the section at all.

Clause 44 approved.

On clause 45.

P. Milobar: Just to confirm — and the minister touched on it earlier with an earlier question around naming — by recognizing the nation by its traditional name, there’s no impact on any other existing legislation or clauses in this section, I’m assuming?

Hon. R. Kahlon: The member is correct. This amendment does not change the intent of the section.

Clause 45 approved.

On clause 46.

P. Milobar: So will the “Sechelt Indian Government” appear anywhere in legislation, or will “Sechelt” not be written anywhere in legislation relating to the nation, moving forward with this clause?

Hon. R. Kahlon: Yes. We have amended six pieces of legislation to align the new name.

Clause 46 approved.

On clause 47.

P. Milobar: Can the minister explain the reasoning behind repealing the definition of “proclamation” in the shíshálh Nation Government District Enabling Act? And are there any repercussions to this repeal?

Hon. R. Kahlon: The definition of “proclamation” is repealed, as the term will no longer be required in sections 2 and 5 in the shíshálh Nation Government District Enabling Act. So the amendment does not change the intent of the section.

[5:05 p.m.]

P. Milobar: I’m assuming there are no repercussions on the definition of “referendum” as well.

Hon. R. Kahlon: The member is again correct.

Clause 47 approved.

On clause 48.

P. Milobar: Can the minister explain the format and election process for the nation government district council and how this is different from what was in place previously?

Hon. R. Kahlon: The district council is still the governing body, but we’re reflecting the shíshálh Nation name in this section.

P. Milobar: In (2), it says: “The Lieutenant Governor in Council must by regulation establish an Advisory Council to represent all the residents of the shíshálh Nation Government District.” Can we get clarification on what exactly that will be creating and for whom?

Hon. R. Kahlon: In that section, the intent is still the same but just the proclamation is not needed.

P. Milobar: Sorry. The proclamation appears to be in clause 50. I thought we were on 48. I was more interested in how….

Basically, by order-in-council there’s going to be an advisory council that must be created to represent all the residents. What is meant by “all the residents,” and how large will this advisory council be?

The Chair: Minister, would you like to stand?

Hon. R. Kahlon: I was just saying, Chair….

The section that’s being amended originally said that if a proclamation is issued, the Lieutenant-Governor-in-Council must, by regulation, establish an advisory council to represent all residents of the Sechelt Indian government district. The new section just removes “if a proclamation is issued.” The rest of the section is still the same, and that’s why the amendment does not change the intent of the section at all.

P. Milobar: I get where the minister is going. But that, to me, on my copy, looks to be clause 50, and we’re on clause 48.

Clause 48 is: “Section 2 is repealed and the following substituted: Status of District Council and establishment of Advisory Council.” That’s what the questions are on.

Can we have a quick recess so we can compare and make sure we’re working from the same…? Again, we’re not opposed to this. We’re just trying to get clarification for things moving forward.

The Chair: We’ll have a two-minute recess.

The committee recessed from 5:09 p.m. to 5:13 p.m.

[J. Tegart in the chair.]

The Chair: I call the committee back to order.

There has been an agreement to stand down clause 48.

Clause 48 stood down.

On clause 49.

P. Milobar: I’m wondering. When did the federal act get amended to reflect their traditional name?

[5:15 p.m.]

Hon. R. Kahlon: That was on June 23, 2022.

Clause 49 approved.

On clause 50.

P. Milobar: Now, this goes back to our proclamation, but I recognize that some of our confusion came in. Hopefully not again. I’ll give it a shot.

Can the minister explain why the proclamation that previously was relevant to the act has been replaced? What is the significance of removing it? Was it a request by the nation or that type of process that led us to this point?

[5:20 p.m.]

Hon. R. Kahlon: In the late 1980s, when the district council was originally recognized, it was done by proclamation. Now this amendment removes that requirement and updates the section. So it repeals the requirement of the district council to be recognized by proclamation and instead provides for the act to enable recognition, which is consistent with the current drafting of statutes.

Hon. Chair, I move the committee rise and report progress and ask to leave to sit again.

Motion approved.

The committee rose at 5:21 p.m.

The House resumed; the Speaker in the chair.

Committee of the Whole (Section B), having reported progress, was granted leave to sit again.

Committee of Supply (Section A), having reported resolution and progress, was granted leave to sit again.

Committee of Supply (Section C), having reported progress, was granted leave to sit again.

Hon. R. Kahlon moved adjournment of the House.

Motion approved.

The Speaker: This House stands adjourned until ten o’clock, Tuesday, April 2.

The House adjourned at 5:23 p.m.


PROCEEDINGS IN THE
DOUGLAS FIR ROOM

Committee of Supply

ESTIMATES: MINISTRY OF FORESTS

(continued)

The House in Committee of Supply (Section A); R. Parmar in the chair.

The committee met at 1:03 p.m.

The Chair: Good afternoon, Members. I call Committee of Supply, Section A, to order.

We’re meeting today to continue the consideration of the budget estimates of the Ministry of Forests.

On Vote 30: ministry operations, $413,993,000 (continued).

B. Banman: I want to thank the minister and staff for your time. A couple of questions. I just want to focus in on the Water Sustainability Act and water rights in B.C., if I may.

Water rights in B.C. may be exercised under a system of priorities according to their respective priority dates. That is, for those that may or may not know, first in time, first of right. During times of scarcity with water, licensees with the earlier priority dates are entitled to take their full allocation of water over the junior licensees. As an example, a water licence with a 1930 priority date would have precedent over a licence with a 1960 priority date, regardless of the purpose for which that water is used.

The first question I have is: would the minister be so kind as to confirm whether or not that is accurate, what I’ve just read out, that understanding? Let’s just start with that.

[1:05 p.m.]

Hon. B. Ralston: I’d love to enter into this debate. This Water Sustainability Act was under the jurisdiction of the Ministry of Forests. It was transferred, I think in September of last year, to Water, Land and Resource Stewardship. So as much as I’d be enthusiastic about dealing with your question, you’ll have to take it up with the other minister.

B. Banman: Thank you very much, Minister.

What I would like to do then is move on to actually…. As we all know, we have had horrendous forest fires within British Columbia. Would the minister include that…? When it comes to managing those forests after a burn — or prior to a burn, even; prior to a burn for sure it does — does that fall within the jurisdiction of this ministry?

Hon. B. Ralston: The answer is yes.

B. Banman: Now I know that I’m in the right place.

One of the questions that has happened is that after a burn, I’m sure that the minister and staff would acknowledge, there is approximately a year and a half where much of the timber that is standing actually has value.

Would the minister please confirm that that is, in fact, correct, that even though that forest has gone through a horrific fire, there is still value in that timber that’s standing that could be used for a number of things with regards to its use in the fibre industry?

Hon. B. Ralston: Yes, there is value. It depends upon the species and the severity of the burn that the stand has experienced. There is what’s called a burn severity analysis which is conducted to find answers to that kind of a question. Companies, B.C. Timber Sales, First Nations are obviously interested in finding out that and are able then to engage what the prospective economic value of the stand might be.

I know there’s a series of questions coming, so I’ll await the next question.

B. Banman: Thank you to the minister for the answer. Yes, there is value. I get that there is a burn severity analysis, I believe, the minister just…. That was the name of that.

Would the minister be so kind as to explain who it is that looks after that analysis, and how long that analysis actually takes?

[1:10 p.m.]

Hon. B. Ralston: There are two ways in which the burn intensity is analyzed. One is through on-the-ground inspection. But given the size of some of these areas, that is difficult sometimes.

There’s also what’s called burn intensity mapping by satellite and remote sensing data. Those two things are integrated. Usually that begins after the fire has ended and after the smoke has dissipated. Sometimes there’s lingering smoke in the area.

Remote sensing requires clear skies for successful and usable imaging. Then those two sets of data and analysis are integrated into the forest inventory.

I expect the member will then go on to ask a question about what happens after that.

B. Banman: Well, actually, I appreciate what goes into it. But my question is: how long does that actually take? Because we have a finite time…. I’ve been told, and perhaps the minister can confirm that that is approximately correct, that there is a year and a half to get this valuable timber to market. How long does it take this ministry to do that analysis?

[1:15 p.m.]

Hon. B. Ralston: There’s a range, obviously, here. For priority fires, if they’re able to do the mapping, the weather conditions, the smoke conditions and such, they can do that in a couple of weeks. I would say, roughly, it’s a 60- to 90-day average, but there are exceptions to that.

The Donnie Creek fire in the northeast of the province, which was huge…. Because it spanned such a vast area, assessment was taking place at the areas that were at the beginning of the fire, while the fire continued in a more distant location and was not yet finished. All of the mapping and all of the analysis is complete for last year’s fire season.

In terms of the question about the shelf life, if I can put it that way, of burned timber, it really does depend upon the species. For example, pine can be ten or even 20 years, whereas spruce would be a very much shorter period. It’s very species-dependent and also dependent on the severity of the burn.

B. Banman: Where I’m going with this is: there is value in the timber that’s standing. As the minister has just said, there are varying lengths of time that it takes. But what I’ve heard him say, with the exception of Donnie Creek, which is exceptionally large…. But I’m sure the minister would agree that within Donnie Creek, there had been assessments already done on part of that, where we could have equipment going in there and harvesting that wood now.

The minister will…. We are watching forest companies and sawmills shut down in rapid succession throughout the province. We are watching people lose their jobs and entire communities being turned upside down because of lack of ability to get into and access fibre. What I’m hearing from organizations that are in the timber industry is that they desperately want to get in there to harvest these particular stands that are burnt and that, in addition to that, they will actually reforest on the way out. It is a win for the environment.

The question I next have for the minister to confirm is: would the minister agree and confirm that after a burn, if we have things such as an atmospheric river or a heavy snow load, these burnt forests no longer have the ability to retain the water, as they once did during a freshet, and that by leaving them as is, this actually, especially with the record levels…? We’re not talking about small burns here or there. We are seeing unprecedented burns.

Would the minister agree that by leaving nature to take its course, this actually potentially has a huge, devastating effect on the environment and on fish habitat?

[1:20 p.m.]

Hon. B. Ralston: Great. A couple of different responses to the couple of questions that the member proposed there.

The Donnie Creek fire. There are already 700,000 cubic metres in salvage, permits that have been issued, some to nations and some to companies. Salvage has already begun in parts of that burn.

In terms of companies and a quick start, if they own the tenure, there’s no barrier to beginning salvage work right away. That’s something that companies are eager to do.

In terms of the questions the member asks about the impact on hydrology, the water flow — all of that is accurate. So that’s why there is an emphasis from the office of the chief forester and in the ministry on prompt reforestation. The ministry plants or directs the planting of over 300 million trees a year. That’s for all the reasons that the member set out in his question. That’s important work, and it’s begun as promptly as possible.

B. Banman: Again, thanks to the minister for the answer.

As I suspected, the minister would confirm that the faster we can reforest these areas, the faster we will be able to mitigate the damage, and in particular, help protect our waterways and help protect fish habitat.

[1:25 p.m.]

You mentioned Donnie Creek. I guess the question I have is: how many salvage permits have been issued in the last three years?

If I may, the minister asked…. No, not just for Donnie Creek. We have seen unprecedented fires in the last three years. Of that, could the minister tell me…?

Actually, I’ll make it more exact. Can the minister tell me approximately how many hectares have been lost to wildfire? Of that, how many hectares worth of salvage permits have been put in to salvage the valuable timber that’s there? More importantly, how much has been reforested from those areas that have been salvaged? Just salvaged. Not the ones that already, if a fire….

I understand the minister’s point that if someone has a permit on a woodlot to cut, for instance, in a certain area, if there’s a fire, they still have the right to go in and salvage stuff without hindrance. But I’m talking about…. In response to fires, how much of the hectares that have been consumed…? What’s that number? Of that, how many permits have been issued to salvage those hectares and then reforest?

[1:30 p.m.]

Hon. B. Ralston: Thank you to the member for that question. I’ve got some background figures here. I’m going to focus on 2023 to begin with.

In 2023, the timber harvesting land base burned, in the south, 4,869,814 cubic metres; in the north, 30,739,688 cubic metres; on the coast, 725,079 cubic metres. There’s a qualification here in the note: not all the area burned is harvestable. Things such as accessibility, damage, retention areas and cultural values all impact the amount of volume available for harvest.

Fourteen WSOAs — wildfire salvage opportunity agreements, the department is replete with acronyms — assigned by First Nations are in process; seven additional ones are currently in negotiation. The north area is currently working on issuing 1.25 million cubic metres of non-replaceable forest licence volume under those WSOA agreements; and it’s 50,000 cubic metres in the south.

The statistics for the previous years that the member has referenced are not available here but can be provided subsequently in writing.

B. Banman: So the general public can understand, if we have, say, 100 percent of the burn area — not all of that is going to be going to be harvestable; I understand that — can we break that down into a percentage of 100 percent of burn? What’s the percentage of that area in hectares that have been issued a salvage permit?

Seeing as how the minister brought it up that some of that is not…. I am sure that there are going to be statistics as to roughly how much is never going to be harvestable. It’s either beyond what it is or, you know, it was too small a stand or not the right species. The minister has given a few examples of that.

Let’s break it down into a digestible chunk for Joe Public and for my mom, who’s watching at home, so that she can understand: of the 100 percent that was burned, what is salvageable? How much could have been issued, and how much has actually been issued, to get in there and get that valuable wood before it rots and goes bad? Let’s use 2023 as the example, unless it would be easier to use 2022. I’ll leave that to the minister’s staff to sort out.

[1:35 p.m.]

Hon. B. Ralston: The answer turns out to be a little bit more complicated than I had anticipated. I had mentioned the figure of 1.4 million cubic metres, for the 2023 season, which have been issued permits. That’s approximately 20 percent of the viable. That’s not the first number, the total burn. This is the number that the member mentioned, a subset which is the viable area. Permits have been issued so far for 20 percent of that.

Now, that process continues, and it can continue for some time. The economic value of the burned timber, depending on the species and the market price, is not a static number. It might be even years after the burn, if prices rise, that it may then become economic to actually harvest areas that, in the initial first year, might not be economic. I guess with that qualification, just to understand the complexity.

[1:40 p.m.]

For the reasons that the member noted earlier, the idea is to undertake that kind of harvesting, get the licences out and get the work done and the replanting beginning as fast as possible.

B. Banman: What I understand…. Of the 100 percent that is viable, only 20 percent of permits have been issued thus far. That now leaves myself and many others wondering. That seems like a very low number.

In addition to that, as the minister has pointed out…. When it comes to fish habitat and the environment, time is of the essence to ensure that we do everything possible to mitigate the damage, especially when it comes to our waterways.

I guess the question I have for the minister is: why is that number so incredibly low? It seems low. Keeping in mind that we are already now approaching the next fire season, why has it taken so long to issue as little as 20 percent, and what has the ministry done to expedite the salvage rights or the salvaging licensing to happen in a faster way? How many staff have been hired to expedite this? What has been done to be able to get…?

As we talked about, there could be as little as a year and a half. I think, if you talk to most people at home, they will say: “You know what? I get that it may take ten years.” There will be value there for ten years, but it is totally unacceptable to allow that kind of time to take place when we now have the risk of the hydrology that we talked about destroying the environment, slides that are going into areas, roads that are being washed out, infrastructure that’s being washed out.

I bring this home to me. My neck of the woods saw firsthand what happens in an atmospheric river. If, heaven forbid, that comes again, what extra has this ministry done to expedite that? What I am hearing from the folks out in the field is that little or nothing has actually been done. I don’t know whether that’s a fair comment or not.

How many extra staff have been put through to actually assess this work and ensure that permits are going out the door as fast as they possibly can? What I’m hearing is that it’s business as usual, if not slower than before or not being done at all.

[1:45 p.m.]

Hon. B. Ralston: I appreciate the member’s question. I have, as minister, directed that this wildfire salvage be a priority. Indeed, following that direction, staff have been reallocated to salvage planning and permitting and to wildfire recovery and restoration. There are some….

I think one needs to bear in mind that the season that just passed was unprecedented. So the volume that has already been permitted is a very high amount compared with the typical season. I’m not saying that as an excuse, but I think it’s important to place it in perspective.

The other influences on wildfire salvage…. There are a number of limitations. One is accessibility to a road. It has to be within one kilometre. Slopes that are suitable for ground skidding. It has to be moderately to severely burned timber. There have to be areas within the timber-harvesting land base, which amounts to about 30 percent of the province, and areas where First Nations cultural concerns are not limiting.

I have expressed and directed that wildfire salvage be a priority. I think the member knows that given the shortage of fibre, which the Premier has identified in his speech at the Prince George Natural Resources Forum as one of the highest priorities of the ministry….

Companies are, in a way that they have not been previously, eager to seek out and receive fire-damaged wood and have adjusted their milling processes to accommodate it. It is valued and sought after. There is a market for it. We’re moving with urgency, given the value of that timber and the market for it.

B. Banman: I thank the minister for the answer.

The minister brought up First Nations and consultation with First Nations. What I’d like to know is (a) how many First Nations have we actually consulted, and (b) how long does that consultation process generally take before the harvest salvage, in this case, licence is issued?

We now know that it can take anywhere from two weeks to three months to assess the damage. How long can the consultation process, on average, take with First Nations to be able to get to the point where there is an agreement in place that those areas can actually be issued a salvage licence? How much consultation has actually been done to date?

[1:50 p.m.]

Hon. B. Ralston: There is a consultation process put in place. I’ve, again, directed that that be expedited. There are post-wildfire planning tables that involve nations, industry and communities. But generally, the cooperation from First Nations on these types of consultations is very good, because people want to understand the urgency and also want to get to work.

To take the example of the northeast, where we had talked about the Donnie Creek fire and just major fires in that region, by February we’d issued one million cubic metres in the WSOA agreements to nations and 700,000 cubic metres to industry. In some ways, the fire there is not technically even out because there are these underground holdover fires. But the bulk of the fire had diminished by October, November.

I would say that that is relatively and admirably expeditious in terms of making the assessment, fulfilling the consultation process and issuing the contracts. Now the work is beginning.

B. Banman: Again, I thank the minister for the answer. I’m not sure I got a clear sort of…. So it takes two weeks to three months to assess the damage? I’m not sure I got an answer on that.

Let me go straight to the heart of it, percentage-wise. Now, let’s just keep with the year and a half. Let’s go with the lowest common denominator that there is value for a year and a half. We now know that only 20 percent thus far have been put out for the last fire. We’re approaching, now, the beginning of the fire season. It was right around this time of year where we started having fires. We’re now ticking off at 12 months, close to when they started. That leaves six…. We can call it six months, 12 months, whatever. We know we’ve gone at least half a year past.

[1:55 p.m.]

What is the time frame, on average, after the fire has been extinguished that it takes for a salvage permit to be issued? It depends on how we divide this up. We could say that it takes a very, very long time for the 80 percent that have not been handed out. But, on average, how long does it take to get an actual salvage permit after the fire has been extinguished?

Hon. B. Ralston: I appreciate the member is hoping to get an answer that results in a statement of an average. But it really would be misleading to simply state an average. It’s really very region-dependent, and there are a series of factors that are required to give such a figure.

Maybe I can give an example about the northeast region, because that’s where there were huge fires, and the biggest one, the Donnie Creek wildfire, which was approximately 620,000 hectares. About 20 million cubic metres of merchantable timber was impacted, about 50,000 hectares of restored cutblocks were impacted, and 560 kilometres of fire guard was constructed for fire suppression activity. So a huge fire, one of the biggest in the history of the province.

[2:00 p.m.]

Wildfire salvage harvesting has started, with over 400,000 cubic metres of potential salvage permitted and 200 million more currently in the permitting process. First Nations with interests in the Fort St. John timber supply area have been actively engaged in the North Peace wildfire recovery working group.

Again, I appreciate the answer the member is hoping to get, but I don’t think it is really one that I can give, because it would not really be accurate and may very well mislead others.

B. Banman: My time is up. I appreciate the minister for the answers that he’s done.

I would say the following. The only other question I have, which can be in writing, is: of the percentage of logs that are being salvaged, how many actually are being exported from the province as whole raw logs? That can be an answer.

I would say this to the minister. I am not alone, in that doing everything we can to mitigate the damage and salvage what we can…. When an industry is collapsing, I would say to the minister that we need a Herculean effort to be able to save these jobs, and not only that but do what’s right by the environment, which is to help replant on the way out and protect the waterways.

I do appreciate the time. Thank you very much.

A. Walker: I’d like to continue on where the Leader of the Third Party ended, which was discussions about the amount of old-growth forests logged in British Columbia.

Her question was about transparency and making data available. My question is very specific, however. Referencing that same CBC News article, we saw that in 2019, there were 39,400 hectares of old-growth forests logged, and two years later, that number had increased, according to that data.

My question very specifically is: what is the amount of old-growth forest harvested in British Columbia for the year 2022 and for the year 2023?

[2:05 p.m.]

Hon. B. Ralston: The forest land base of the province is about 59 million hectares. The total hectares of the province, the size of the province is 95 million hectares. The total forest land base is 59 million hectares. Just to put that in context.

In 2020, 41,818 hectares of old growth were logged. In 2021, 41,930 hectares were logged. That’s an increase of 112 hectares, because the member mentioned an increase. Stanley Park, for example, is 404 hectares, so it’s a quarter of the size of Stanley Park that was the increment in old-growth logging.

For 2022, the figure is preliminary because the numbers are not final at this point, but it’s 28,688 hectares.

A. Walker: That is good to hear. The numbers the minister shared are actually higher than what was previously published for 2020-21. But the preliminary results certainly show that the trend is going in the right direction, and that’s something I’m sure folks can be quite pleased with.

When the technical advisory panel launched their process and went through that engagement, we’ve now recognized that First Nations were not a part of that process. After that technical advisory panel result was released, we certainly learned, through that process, and I appreciate it.

[2:10 p.m.]

I’ve listened to the questions before. I don’t want to get into what land is there and what’s not. We’ve heard that answer. The question I have, that’s very specific, is: of the 2.6 million hectares that were announced in that mapping process, how many of those hectares have been deferred or protected?

Hon. B. Ralston: Just to make sure I’ve got the statistics right, I’m going to read this note here.

In November 2021, the government announced its intention to work in partnership with First Nations rights and title holders to defer development within 2.6 million hectares of old-growth forests. Of the 2.4 million hectares of old growth that has been deferred or newly protected since November 2021, 1.23 million hectares is at-risk old growth identified by the old growth technical advisory panel, and an additional 1.19 million hectares were identified by First Nations.

That’s the figure that leads to the final conclusion that I’ve been citing earlier in the comments that I made here.

A. Walker: I appreciate the clarity.

Of the land base that was designated by the technical advisory panel for deferral, which government had agreed at that time to defer, what is the total land base that has been deferred or protected?

[2:15 p.m.]

Hon. B. Ralston: I think this is what the member is driving at. So 1.23 million hectares is at-risk old growth identified by the old growth technical advisory panel, and an additional — this is non-technical advisory panel area — 1.19 million hectares were identified by First Nations. That process is…. The member, I think, was present when the Leader of the Third Party was asking questions. This process continues. I hope I’ve made that distinction clear.

A. Walker: So 1.23 million hectares was identified by the technical advisory panel as at-risk old growth. My understanding is that government had agreed that that would be deferred. Obviously there’s been a discussion since then with First Nations about their input on their land base. The question was: of that 1.23 million hectares…?

We’ve got a map out there that designates all these different pieces of land. It’s not one big parcel, obviously. There’s a lot of little pieces. Of that mapped area, a couple of years after this process has started, how much of that today is deferred or protected, and how much of that is not deferred or protected?

Hon. B. Ralston: The 1.23 million hectares, which is the subject of the member’s question, are deferred. The process is ongoing, and I think this may be what the member is heading towards. The decision about the ultimate status of those 1.23 million hectares will be determined by the process. I think it’s likely that it will be conserved, but that decision has not been finally made yet. It’s still in….

The deferral process is an interim process. Highly likely about the outcome, but, as I think the member is going to suggest, not certain. But it’s highly likely that there will be decisions made about that that the member will agree with.

A. Walker: Recognizing, of course, the deferral processes is temporary, and protection is long-term…. But that work needs to be done between government to government. I fully respect that. I just was wanting to make sure that, as of today, those lands designated have not been logged. I think it’s clear through the minister’s response that that is the case, that they have not been logged. I appreciate that.

Just going through my notes before my last question. I’ll tie the two together to save time here. I was provided with a preliminary number for 2022. An estimated roughly 28,000 hectares, 29,000 hectares for 2022, were logged. Just wondering if there’s any preliminary number for 2023.

Then I’d like to shift into the Private Managed Forest Land Act review. The what-we-heard report came out on that in August 2019. It’s an important review.

[2:20 p.m.]

The questions that were asked through that were to ensure that this program is achieving the objectives that the program has, environmental management but also sustainable forestry management. Of the responses of that review, 57 percent came from Vancouver Island, even though we represent 3 percent of the land base and only 17 percent of the population.

The responses: half of those didn’t agree that the broad goals are currently relevant. Two-thirds disagree that the public environmental values specified in the managed forest land act are actually being upheld and that the regulatory framework is not achieving the objectives of the act.

Question is: following that 2019 report, the what-we-heard report, what has changed in the private forest managed lands, and what does the future hold, as obviously we’ve got the watershed security process underway? I gather there’s a second review that’s taking place.

Following this report, what has changed on the private managed forest lands, and what can people in my community, constituents and those that rely on the forest industry, expect moving forward as far as the private managed forest land act?

Hon. B. Ralston: There isn’t a preliminary number for 2023. I think 2022 would have to be closed off first. But that will be disclosed as soon as it’s available.

The private forest land review. I think what the member was quoting from was from the what-we-heard report. No further steps have taken place in the process of following up on that review.

At the moment, the process is posed for our sister ministry, Water, Land and Resource Stewardship, to conduct their work on the watershed sustainable strategy. Where that’s at probably would be a question better directed to the Minister of WLRS during his estimates, which I think have yet to take place.

A. Walker: That what-we-heard report came out in 2019. We don’t have a lot of private managed forest land in the province, but in Parksville-Qualicum that is our forested land base. There was considerable engagement that took place, considerable feedback, and I’m surprised that there’s been no change since then, since that report. I will follow up with the Ministry of Water, Land and Resource Stewardship.

I want to thank the minister and their staff for making this time available. We have a long history of forestry in this province, and we have a bright future in forestry. I thank them very much for their time.

The Chair: Seeing no further questions, I’ll ask the minister if he has any closing remarks.

Hon. B. Ralston: No, I just want to thank the staff who’ve been here yesterday and then, through some fits and starts, both this morning and this afternoon.

[2:25 p.m.]

I want to thank them for their patience and their hard work on the file, not only in the last few days, but the continuing work that we do in Forestry. It’s a big team, and there are many challenges in forestry, but I certainly think that we’re up to them, and I look forward to working on the considerable challenges in forestry. I think we have potential solutions and will continue to strive to achieve them.

With that, perhaps I can move the requisite motion.

The Chair: Thank you, Minister. Seeing no further questions, I will now call the vote.

Vote 30: ministry operations, $413,993,000 — approved.

Vote 31: fire management, $232,736,000 — approved.

ESTIMATES:
OTHER APPROPRIATIONS

Vote 53: Forest Practices Board, $3,991,000 — approved.

The Chair: Thank you, Members. The committee will now take a five-minute recess while we prepare for the next ministry.

The committee recessed from 2:26 p.m. to 2:33 p.m.

[R. Parmar in the chair.]

ESTIMATES: MINISTRY OF
EMERGENCY MANAGEMENT
AND CLIMATE READINESS

(continued)

The Chair: I call Committee of Supply, Section A, to order. We’re meeting today to continue the consideration of the budget estimates for the Ministry of Emergency Management and Climate Readiness.

On Vote 21: ministry operations, $79,047,000 (continued).

Hon. B. Ma: If I may, Chair, I’d like to begin by responding to two of the outstanding questions posed by the member for Cariboo-Chilcotin yesterday that we were not able to find a firm response to.

The Chair: Go ahead, Minister.

Hon. B. Ma: Thank you.

Thank you so much to the member for Cariboo-Chilcotin for allowing us some time to verify responses to a couple of questions that he asked.

[2:35 p.m.]

The first question that was outstanding was his question regarding whether any communities were currently being supported with the transportation of potable water due to drought. We have confirmed that the answer is no.

However, that is not to say that there are not communities that we are carefully engaged with, due to concerns regarding drought. However, as of this time. we are not currently supporting any communities with the transportation of potable water.

The second question that we had committed to responding to was to provide a split between the public sector DFA and private sector DFA payments. I will provide, to the member, that response now. For fiscal year 2021-2022, the province paid out approximately $3.6 million in disaster financial assistance, of which $2.7 million was to private individuals, residents and businesses. The remainder was public.

In fiscal year 2022-23, about $30.24 million was paid out through the private stream, and $4.3 million was paid out through the public stream, for a total of approximately $34.6 million. If the sums are not adding up exactly, it’s just because I am truncating the number. I could provide it to the single-dollar digit if the member insists.

For fiscal year 2023-24, based on the data that we have as of the third quarter, just over $1 million was paid out through the private stream, and $7.5 million was paid out through the public stream, for a total of $8.5 million.

I will say, however, just for clarity, that these values are based on fiscal-year payouts. So they may not align with events that people are familiar with occurring within calendar years, for a number of reasons — one being the difference between a fiscal year and a calendar year. It’s also because there can be a processing delay as applications are made and adjudicated and as funds are issued.

I’ll also note that it is not the most useful metric for determining how far along the recovery is within communities — to focus only on the payout amounts for public disaster financial assistance — because of the way that disaster financial assistance is processed through the public stream.

I won’t presume the critic’s line of questioning that will come next, but I will offer that I am happy to elaborate on what I mean and provide an overview of the high-level steps involved in the processing of the disaster financial assistance program for the public stream.

I can also speak to dollar commitments that have been made so far to different communities for various events. Keep in mind that disaster financial assistance is only one of the programs through which the province works with communities to provide them with funding. The numbers might not align here if one were thinking about the total amount being reported as dollar amounts committed to communities.

I just wanted to provide that clarity. It’s because disaster financial assistance is only one of several programs through which we’re able to provide supports to communities for recovery and mitigation works.

L. Doerkson: I certainly don’t need the pennies or any of that information. What I am trying to understand, though, is what that sort of split is between residents that might be receiving these funds and, of course, our municipalities. When the minister refers to public — gosh, I can’t remember now what the quote was; public something — is it the municipalities that receive that?

[2:40 p.m.]

I think I heard the minister say $4.3 million, roughly, in 2022-23, and then in 2023-24, potentially $7.5 million. If I’m understanding — I’m seeing the minister nod her head — that is for municipalities, not for residents.

Hon. B. Ma: The critic is correct. The public stream is the funding that we provide to municipalities, regional districts and First Nations. The private stream is the funding that we provide to individuals for their residences and businesses.

L. Doerkson: Thanks for that. I’m going to come back to DFA a little bit later and talk about specific instances. I do appreciate getting a bit of a better understanding of that.

I do want to spend a little bit of time on the budget itself before we get into some specifics. I didn’t have, of course, the benefit of participating in this process last year with the minister, but I want to get some examples of what might be under climate readiness. I believe it’s $38 million. I wanted to get a better understanding of what might be in that category.

Hon. B. Ma: Under the climate readiness programs line item in the budget, that covers funding for mitigation projects with communities, as well as the disaster and climate risk resiliency assessment that the ministry is leading.

I will note, as well, that outside of this particular line item, we do provide funding for disaster risk reduction mitigation activities through the community emergency preparedness fund. Under the previous budget, an additional $180 million was committed to that fund, for a total of $369 million, but it is administered through UBCM. So it doesn’t show up in our ministry budget for this fiscal year.

L. Doerkson: The minister touches on a point that has certainly got me a little bit confused. I can appreciate there’s money coming from other ministries and other places. That’s why I’m specifically asking this question. I think we’ll see a little bit later that there has been $243 million promised. I’m unclear as to how those funds move through this ministry, noting that we’re really looking at a budget sheet of $101 million, $125 million and $115 million.

I can appreciate, too, that the ministry is obviously connected in so many ways to other things, whether that be WLRS or Forests. I know there are all kinds of opportunities for cross-pollination between the ministries, but that’s exactly what I’m trying to understand, I suppose — where the funds are coming from.

[2:45 p.m.]

The minister referred to the term “mitigation.” Honestly, I’m not arguing that it’s too much or not enough; I don’t know what the right number is. I’m trying to understand why those items wouldn’t be in this budget. I do want to get a bit of a sense of what mitigation work is being done. I’m hoping I can get a little bit of a better understanding of where the funds are coming from.

Hon. B. Ma: I can answer this question in a number of ways. Rather than assume where the critic would like to go, I’ll allow him to elaborate after I provide an initial response.

I’ll start by breaking down the allocation of the $234 million being referenced. I’ll speak to some of the other programs that are all part of the work that EMCR does in order to support disaster risk reduction and mitigation. We can go into those programs as well and provide more information if the critic is interested.

It is the case that the Ministry of Emergency Management and Climate Readiness acts as a central, lead, coordinating agency on behalf of the province around emergency management across all four phases. However, a lot of the other ministries carry mandates on various hazards. So we do work with them very closely.

For instance, the Ministry of Forests carries a mandate on wildfire fighting. WLRS now has a mandate around drought. The technical expertise that the province relies upon to help guide a lot of the work that we do will exist in many of these other ministries. Working closely with our ministry partners across government, EMCR pulls together a lot of the work happening.

I’ll provide a breakdown of the $234 million. Of that, there is the top-line response to where that funding is coming from. It’s all being drawn from contingencies. It won’t show up in this particular boat, but it is accounted for in the contingencies draws.

The Barrowtown pump station — that’s $76.6 million. That flows through EMCR out of the ’23-24 fiscal budget.

Then there’s an agricultural water infrastructure program that accounts for $83 million of that $234 million. That also flows through the ’23-24 fiscal year budget, through the Ministry of Agriculture.

There is a water metering pilot program, of $50 million, which is coming out of fiscal year ’24-25. That flows through the Municipal Affairs Ministry.

[2:50 p.m.]

There is $14 million that is being provided for the Cowichan weir, flowing through fiscal year ’23-24 that flows through the Ministry of Water, Land and Resource Stewardship.

There’s also $10 million being committed to the St. Mary Lake program. It’s a project that supports water storage capacity to sustain environmental flow on St. Mary Lake on Salt Spring Island. That’s coming out through the ’24-25 fiscal year through the Ministry of Water, Land and Resource Stewardship as well. Those are some of the contingency draws that are being used to support these immediate projects.

In addition to that, the ministry also, of course, administers the disaster financial assistance program, and then we contribute to the community emergency preparedness fund that is administered through UBCM. So that’s the $369 million, of which I believe just over half has now been distributed to communities.

There are also contributions that the province makes to certain cost-shared programs with the federal government — for instance, what we call the green ARDM program, the green infrastructure program under the ARDM. If you’d like the acronym spelled out, I will figure that out for you.

There’s also a COVID-19 resilience infrastructure stream of ARDM as well, and there’s provincial funding towards that too. So there are quite a few different buckets that all work together and basically support overall mitigation and disaster reduction.

L. Doerkson: That actually helps a great deal, Minister. It actually helps for another set of estimates in WLRS as well. So thank you for that.

I guess now turning back to the $38 million within this ministry, I think the minister said earlier that that was for mitigation. I just want to better understand what the minister is referring to as mitigation. Is that physical work? Is it managing these funds? What’s happening with this nearly $40 million?

[2:55 p.m.]

Hon. B. Ma: Climate readiness programs. That line item provides for costs associated with the delivery of disaster preparedness and mitigation funding programs, as well as strategic reviews and training and exercises.

Disaster preparedness and mitigation funding programs could include provincial contributions to those cost-shared programs with the federal government. It could cover a wide range of disaster preparedness activities and mitigation activities, including risk assessments, all the way through to physical infrastructure.

This funding tends to flow right into communities. So when we talk about the delivery of disaster preparedness and mitigation funding programs, that usually means cash to communities to support their mitigation projects.

You’ll notice that in each fiscal year, this line item grows by a substantial margin. That’s basically in recognition of the growing need for the ministry to be able to contribute to these kinds of programs. In addition to this line item, there is, of course, the CEPF program that we have been using to substantially bolster the amount of money that is available to flow into communities immediately while our ministry kind of builds up capacity to be able to also administer further supports direct from our ministry, in addition to what is being provided through UBCM.

L. Doerkson: Thank you, Minister. I want to just ask a couple more questions on this, because I want to be crystal-clear, Minister, with respect to….

There’s some amazing funding and work that’s happening through FESBC, but I’m sort of getting a sense that perhaps the ministry may be funding work in our communities that might be that kind of logging that might be occurring around fire mitigation.

I guess I’m trying to get clarity with respect to actual projects. The minister has said that these funds flow to the community. Once they’re in the community, I’m trying to get a sense of what they’re actually completing.

I know that, for instance, in Williams Lake, we’ve had much fire mitigation around our community, but a lot of that work has been done through FESBC. I’m curious to know if there are funds here that communities can apply for and, if so, how that might be used.

[3:00 p.m.]

[J. Routledge in the chair.]

Hon. B. Ma: In trying to consider how best to respond to his question in a way that is most useful, if the critic would allow me, I think I might actually speak to it from the perspective of the kinds of projects that CEPF has been covering.

The line item within the ministry budget is meant to be quite complementary to that, so it will give the critic an idea of kind of the scope of projects that are funded through EMCR, whether it’s through CEPF or some of these other cost-sharing programs that I referred to, like green ARDM. Maybe I’ll start that way, and I hope that it will provide greater clarity for the critic given the nature of this question.

CEPF, which is the program that is administered through UBCM, has multiple streams that communities can apply to. When I say communities, I mean, municipalities, regional districts, as well as First Nations.

I’ll read out some of the streams that exist. For instance, there’s a funding stream for flood risk assessment mapping and mitigation planning, of which we have approved, so far, 127 projects in the province.

There is a stream for emergency support services, equipment and training. That’s to build local capacity to provide emergency support services through training, volunteer recruitment and retention, as well as the purchase of emergency support services equipment. Some communities have used the funding to purchase sea cans and fill them with emergency gear for their communities. Under that stream, 377 projects have been approved.

There is a stream for emergency operations centres and training. This is to build local capacity through the purchase of equipment and supplies required to maintain or improve an EOC and enhance EOC capacity, and 458 projects have been approved under that stream. This is all through since 2017, by the way.

Under the fourth stream, this is probably the stream that is, I would say, the big dollar stream. It’s structural flood mitigation, which is…. Oh, well, actually that one’s retired and been replaced, but there was a structural flood mitigation stream. There were 52 projects approved under that. That’s projects to prevent or eliminate or reduce the impact of flood or geological hazards. That’s construction of actual structural mitigation projects.

[3:05 p.m.]

That has been since replaced by a stream called the disaster risk reduction–climate adaptation stream. That supports eligible applicants to reduce risk from future disasters, so it’s no longer limited to flood hazards. It could be other hazards as well, and 168 projects have been approved under that stream.

There are other streams. Indigenous cultural safety and cultural humility training, 44 projects have been approved under that one.

There’s a stream for volunteer and composite fire department equipment and training. We’ve approved 340 projects under that one.

A public notification and evacuation route planning stream. There have been 119 projects under that stream.

There’s an extreme temperature risk mapping, assessment and planning stream as well. So 47 projects have been funded under that stream.

If the critic is wondering about the types of hazards these projects tend to address, of the almost 1,900 projects that have been approved through CEPF since it was created in 2017, the vast majority — so over 1,000, about 1,050 — of those projects are considered all-hazard. So it’s hazard agnostic. It provides support to communities in preparation for whatever may come.

Of the other hazards that are often addressed by these projects, 442 of them were for flood and 340 of them were for fire. However, I will note that significant funding, and the vast majority of funding, for the fire prevention program actually flows through FireSmart.

In terms of addressing excess fuel on the ground and preparing communities to be fire smart, most of that funding actually flows through the Ministry of Forests. There were also 50 projects for extreme temperatures, so that’s both heat and cold. There were 11 projects addressing tsunami, two projects that were addressing seismic risk and two for avalanche.

That’s the range of projects that we seek to support, the types of projects that we seek to support when we talk about mitigation and adaptation funding. Like I said, most of this has flowed through this CEPF program, but we also do have some funding within ministry to manage, to distribute to communities for complementary programs like that.

I hope that helps.

L. Doerkson: It helps very much, Minister.

I just want to turn our attention back to what we were just discussing, the $234 million committed to multiple projects. We talked about the Barrowtown pump station and a number of others. I wondered how these projects may have been picked over other communities like Lytton and Merritt and other communities that we’ll discuss as we go forward.

I know that there’s a massive commitment here: $77 million, $83 million, $50 million. I think the minister mentioned a couple of other ones at $14 million and $10 million. So there certainly seems to be a significant amount of money coming back into the province. I’m just wondering how these projects were picked over those other communities.

[3:10 p.m.]

Hon. B. Ma: Looking through this list, I will note that a couple of these projects with large dollar amounts assigned to them are actually provincewide programs. For instance, the agricultural water infrastructure program is a program that already exists, but the demand for it far exceeded how much money had been previously allocated to that program.

This is the program that provides funding to support communities and the agriculture industry to improve water management during times of drought, in order to ensure human food and livestock sources are secure. Given the state of the drought that the province experienced last year, it became very clear how important this program was to the agricultural community and to food security in British Columbia in general. So we were pleased to support the province in getting that funding through there.

There’s also the water metering pilot program. That accounts for $50 million of the $234 million. This program was identified as needed — again, given the drought that we saw last year and the likelihood that we will be experiencing widespread levels of drought throughout the province in the years ahead and possibly for…. I suppose it’s too early to know exactly how long it will last, but the climate is changing very rapidly, and we need to adapt.

The water-metering pilot would support communities in improving their capacity to conserve water, by identifying leaks and supporting management of use. It’s an extremely important move for the province to take and for communities within our province to take.

The Barrowtown pump station was funded, based on its readiness as a project, within the general mitigation plan. It didn’t fit into other funding streams. The region has been working together, across three levels of government — First Nations, the province and municipal governments — on an overall plan for flood mitigation.

[3:15 p.m.]

They have an application into the federal government for DMAF funding. But the Barrowtown pump station is particularly vulnerable, given what happened in the 2021 atmospheric river event. It was almost lost due to flooding, so it needs resiliency upgrades immediately. The province determined that it couldn’t wait for the DMAF program application, I guess, to carry through to its conclusion before work began on Barrowtown.

I will say that the province also provided funding to the city of Abbotsford in the last fiscal year, as well — I believe it was last fiscal year; it might’ve shown up in the fiscal year plan prior — in order to start work on developing resiliency upgrade plans for the Barrowtown pump station, given it’s, I guess, vulnerabilities.

L. Doerkson: Thank you, Minister. I want to try to ask that question again, if it’s all right with the Chair.

Not specifically…. I guess we’ll get to that in a moment, with respect to specifically how the ministry is involved in some of these projects. I am interested in asking a couple of questions on the water-metering program.

Specifically, the question to me is: how are these things prioritized? I guess that’s my question, Minister. I’m trying to understand better. I think the minister referred to the Barrowtown pump station as being critical and definitely something that needs to be addressed right away, so much so that we might actually take that on provincially and then sort of try to collect funds from other sources at a different date or time.

I guess what I’m trying to understand is…. You know, we’ve heard so much about Lytton. We’ve heard not just from the community there; we’ve heard also from the residents outside of Lytton, just outside of Lytton. We will come to that in a more fulsome way a little bit later in this conversation. But also Merritt, as well, has had so much damage. Again, we’ll come back to that in a more fulsome way.

They’re really looking for support from the province to the tune of around $20 million or $25 million or so, but there’s also a significant amount of federal money that may be lost if they don’t get that funding provincially, right?

I guess what I’m trying to understand is how these projects were picked. I can appreciate that Barrowtown may be critical and it needs to be done right away, but these other items are critical as well. I’m just wondering how these were put on the list over and above those ones.

[3:20 p.m.]

Hon. B. Ma: It’s not a function of whether one community is more of a priority over another community but, rather, where they are in the process of their recovery or their mitigation planning, what funding envelopes are available to them for various aspects of work.

EMCR works very closely with communities to understand and help develop their mitigation strategy and then determine what aspects and elements of the overall plan can fit into the various funding envelopes that are available to us collectively, whether it is through the federal DMAF funds or DFA funds or mitigation funding, and so forth.

There is a distinction, of course, between recovery work and mitigation work, although, in some cases, I will say that there’s a significant relationship between them. Part of the work that EMCR does with communities is to try to work with them on their overall mitigation plans and their recovery plans and determine how best to get all of the pieces funded.

Speaking to Lytton…. Lytton is still in a state of recovery. I would be reluctant to suggest that they were in the mitigative stage, because they are still recovering now. We have been supporting them since the beginning. The province has committed over $58.5 million to the village of Lytton so far, but that was allotted for and added in previous budgets, so they’re not being called out here in this fiscal year.

To provide a breakdown of where that funding went or what it was for, of the $58.5 million that the province committed to the village of Lytton, $9.36 million goes to support ongoing village of Lytton operations and staffing. We provided $23.4 million to enable debris removal, archaeological support work and soil remediation; $3.4 million to help re-establish essential infrastructure and services; $2.1 million for future village of Lytton operations, and we continue to work with them.

Funding has been flowing, and we’ve been able to work with the village and with our colleagues across government to find funding sources for these various critical elements.

When it comes to the city of Merritt, I should clarify that communities like Merritt have been working very closely with us on their recovery, and a lot of progress has been made, but absolutely the work isn’t over. So in addition to $10.2 million that we have provided for residents and businesses in Merritt through the disaster financial assistance program, the province had already committed $52 million to the city of Merritt for flood recovery and resiliency as well. That includes money that we provided. This came out in the previous budget.

We provided over $10 million to rebuild the Middlesboro Bridge. We have now also approved, in principle, $46.5 million to repair the two dikes that were referred to by the member. That is a provincial commitment.

It is the case that the province will likely seek to receive a partial reimbursement from the federal government through their disaster financial assistance arrangements program for that commitment that we have made to Merritt. But that application does not impact Merritt’s ability to access the funding that we’ve already committed to them. That’s the $46.5 million. That’s a provincial funding commitment that we have provided to Merritt.

That being said, we are aware of the need to find a solution for the acquisition of additional land beneath those dikes. That’s what the city of Merritt has been talking about recently. We’re committed to continuing to do this work with them, as we have done from the beginning.

I had several conversations with Mayor Goetz over the last few days to reaffirm this commitment. Our teams are actually meeting again, I believe, next week to discuss next steps. Merritt is receiving support from the province, but there is more to do. We have to keep working with them.

[3:25 p.m.]

Again, to provide an overall summary of what has been committed to the city of Merritt so far, there was the $10.2 million that was provided as direct financial support to homeowners, tenants, small businesses, charitable organizations and farms. That was through DFA. And $4.5 million was provided through the CEPF program.

So $13.2 million, plus the 46…. I’ve got to add it up now, for me. The $13.2 million and $46.5 million — that’s $59.7 million that we have committed to the city of Merritt. Through DFA, we’ve provided an additional $330,000 for flood mitigation studies. Municipal Affairs provided them with $24.3 million for interim flood support funding.

There was also that one-time funding for the Middlesboro Bridge, which I don’t believe is included in this summary, is it? It is. So that includes the one-off funding that we provided for Middlesboro Bridge as well, and we have more work to do.

L. Doerkson: Thank you, Minister.

I certainly appreciate the numbers that the minister just introduced. The thing that I do appreciate probably more than anything is the distinction between mitigation and, of course, recovery. We will come back to this for sure in the next few hours and discuss that a little bit more.

I really am very much in favour of the support for the dike mitigation that you’ve talked about, because honestly, as far as an investment is concerned, when you think of the new levels of debris flow being so high now in Merritt and the prediction for those debris flows to happen at least once more in the next hundred years and then half of those happening twice more in the next hundred years, we could be looking at, in today’s dollars, an $800 million or $900 million cost to the province.

I hate to think what that looks like 20 years from now. To me, that is exactly what that $20 million is for. It’s mitigation to mitigate flood in the future.

The thing that is most, I think, worrisome for me on that is that there’s $98 million of federal funding attached to the 21…. Sorry, it might be 98…. It might be $80 million that would come from federal funding on the supply of that $20 million from us. But we’ll discuss that a little bit more later.

We digress here. My apologies. I’m kind of off the beaten track here.

I did have just a couple more questions about the actual ministry and its structure. I wanted to get back to those questions, if that’s all right. I want to just get a better sense of how many employees are in this ministry now and where those employees are located throughout the province. I just want to get a bit of an understanding of the structure.

In different communities throughout the province, I mean, we obviously have forests. We have WLRS and everything else. I want to understand if that’s accessible in a place like Williams Lake or Terrace or wherever.

[3:30 p.m.]

Hon. B. Ma: We currently have a base staff complement of 359, keeping in mind that because of our ability to access statutory appropriation, we do surge up when required. So there are a couple of hundred more staff members that are funded through that statutory appropriation, but they are not considered base staff. We will be growing to a base complement of 400 staff under this budget.

We are a very regional organization as well. The headquarters is on the Island over by Keating Cross, but we have regional offices that include Kamloops, Prince George, Terrace, Smithers, Surrey, Victoria and Nelson. Of course, there are also staff members who work remotely, so they could really be positioned anywhere throughout the province.

I will also comment on one of the comments made by the critic about $98 million of federal funding that might be lost due to the land acquisition piece. To provide a correction, of the $98 million of funding that has been committed to the city of Merritt so far, the vast majority of that — the vast, vast majority of that — is actually provincial funding. That’s provincial funding that has been committed to the city of Merritt.

The land acquisition piece is outstanding, and that is the work that we’re committed to continuing to do with them.

L. Doerkson: Thanks for that, Minister. We’ll certainly come back to that piece about Merritt. I will better understand that, for sure. I do have a number of questions about that. Thank you for the answer.

[3:35 p.m.]

I can imagine that the staff levels will surge up. There’s no question about that. The member for Prince George–​Valemount just showed me a burning ban for the Cariboo-Chilcotin that was issued a few hours ago. That’s certainly frightening, with respect to drought up in my region. So I can appreciate that the number may quickly change.

One last question just on the ministry itself. I know last year was an exciting year. We spent many hours together, Minister, with respect to Bill 31. I’m going to have a few questions about Bill 31 and compliance and those types of things.

What goals does the minister have for the coming year?

Hon. B. Ma: I was wondering if I could get a clarification from the critic on his question. Was he referring to our goals with respect to implementation of the Emergency and Disaster Management Act or our goals for the next year generally, as a ministry?

L. Doerkson: Well, now that the minister asked that question, I suppose the question is both, actually.

We are going to talk, Minister, about Bill 31 and the implications of that bill and how we may go forward with it.

Specifically, I’m interested more in knowing what the minister may have as goals for the ministry, other things that we might be seeing coming forward and, certainly, any improvements that might be made. Definitely I’m interested in the other as well.

[3:40 p.m.]

Hon. B. Ma: I will say that since the creation of the Ministry of Emergency Management and Climate Readiness, we did have a mandate to support increasing the capacity of the province to support communities through emergencies and climate-related disasters. That does mean building up our base capacity, our year-round capacity, in order to provide to British Columbians an organization that was not just focused on response but also an organization that is able to support them through recovery, through the preparation for emergencies and mitigation prior to the impacts of disasters.

I will say also that we have a service plan that outlines all of the top goals and the strategies and the objectives of the ministry. So I’m happy to read into the record some of those goals that we highlighted through the service plan.

For instance, we have a goal to ensure that B.C. strategies and systems reduce the impact of climate-driven hazards and other emergencies and disasters. We have a goal to create the space and do the work that is necessary to recognize Indigenous people as true partners and leaders in emergency and disaster risk management and to work towards ensuring that B.C. has modernized and enhanced emergency management across all four phases. That’s preparation, mitigation, response and recovery.

We’re doing that through a number of…. We hope to be able to provide a number of deliverables in the coming year. We do that through championing evidence-based approaches across the B.C. government to identify and reduce disaster risk and climate risks and invest in disaster risk reduction, so some of those investments that we were talking about earlier. We want to lead provincial coordination for disaster risk reduction and climate readiness initiatives.

You know what? I realize I’m just reading these bullets.

I guess overall, what we’re trying to create here and to build up is our ability to support British Columbians through emergencies, through all four phases of those emergencies. That’s basically the bottom line of it. Some of the activities that we are focused on right now are better shaping the delivery of services to Indigenous peoples that consider their needs and cultural perspectives. We, of course, are working to implement the emergency and disaster risk management legislation, the EDMA.

We are working on achieving key deliverables that we have under the EDMA. For instance, the delivery of a provincial disaster and climate risk and resiliency assessment. That’s targeted for release this summer. We are updating the comprehensive emergency management plan to support that EDMA implementation.

We’re working to support local authorities, First Nations and search and rescue organizations and implementing the new legislation by developing and providing them with new tools, new guidance, templates, providing capacity funding to local authorities and First Nations to support Indigenous engagement requirements, providing responses to technical questions.

[3:45 p.m.]

We’re trying to build up our overall readiness for the upcoming…. I call it a hazard season, but we now know that we’re experiencing disasters throughout the entire year, although it does intensify around the summer because of wildfire and drought and often flooding before and after.

We have been working to build up our readiness posture in advance of the 2024 wildfire season, working to implement the recommendations of the Premier’s Expert Task Force on Emergencies. Some of that work has already been announced. The rest of it is actively underway.

There’s also a goal to…. I’ll just provide an example of one of our objectives. We want to drastically increase the number of communities that are registered to the ERA tool so that they can be able to provide evacuees with digital support and e-transfers as part of our work to improve the delivery of emergency support services to communities, particularly given the lessons learned from 2023.

A big part of our focus this year is to do things better than last year, based on what we learned from what happened last year, and to constantly be improving our ability to respond to emergencies as we go.

L. Doerkson: Thanks for that, Minister.

I want to turn our attention now to shelters throughout the province. We’ve had, obviously, shelters for both cold and hot weather.

I think we’re going to be told to go to the big House here shortly, as well, Minister.

Again, coming back to shelters, I want to get a better sense of how this program works. I think there was a press release last year that indicated that we had more than 5,500 shelters in place. That was for warming shelters. I know, certainly in my community…. And I just talked to the member for Prince George–Mackenzie, and they’ve had the same sort of situation. We obviously have the ability to provide these shelters.

I guess what I’m not certain on is that often, in my case, there have been public structures that have been used. I know that there has been some sort of a funding mechanism to help the community run these facilities. I wanted to get a clear understanding of how EMCR is implicated in that and how this program is being run and, sort of, who is running it. Is it being run at a local level, or is the minister perhaps taking the lead on these?

Just one more question attached to that. I want to get the cost, or investment. I’m not opposed to these shelters. I’m just trying to understand what we’re doing here and what the investment looks like.

[3:50 p.m.]

Hon. B. Ma: The member had referred to a couple of different programs that I’ll provide clarification on.

The extreme weather shelter program is actually delivered by the Ministry of Housing, through B.C. Housing, I believe, so it is not an EMCR program. However, EMCR does provide funding for warming centres.

[3:55 p.m.]

Warming centres would be delivered and operated by local governments, and EMCR will reimburse local governments for incremental costs. For instance, it could cover the rental cost of a facility. If it is not a building that is owned by the city — perhaps they’re renting a private hall to use — that is eligible for reimbursement. We would cover incremental costs around utilities, janitorial costs, additional security that might be required for both day and night use.

We cover incremental wages. So if additional staff or staffing hours are required to staff the warming centre, that would be eligible. We cover costs for blankets, warm drinks, warm clothing — that sort of thing. But the need would be identified by the local community, and they would deliver the actual service. We provide the funding for it.

In terms of how much has been invested into this program, I will say that there’s not a particular cap of funding. It’s not like we set a certain amount of funding, and if we run out of that funding, we stop funding warming centres. We actually continue to fund as many warming centres as is needed for that particular year.

The community would identify the need for the warming centre. Oftentimes the triggers might be based on weather forecasts, extreme temperature alerts from Environment and Climate Change Canada, and so forth.

L. Doerkson: I guess what I’m trying to get a sense of, Minister, is…. I’ll say thanks for clearing up the distinction between housing shelters and then these warming shelters, and I can appreciate that there is not a cap on the funding.

I guess maybe what would be easier to ask would be: how many of these shelters opened that were funded by the province in the last year, in both seasons? For instance, in 100 Mile, we used arenas during the heat of the summer, and in the winter, we were using, I believe, the Gibraltar Room. I’m trying to get a sense of perhaps what last year’s cost was. I can appreciate it’s difficult to predict what it would be. Then I guess what I wondered is where in the budget it fell into, what category it fell into.

The Chair: We’ll call a recess now and then reconvene after royal assent.

The committee recessed from 3:58 p.m. to 4:16 p.m.

[R. Parmar in the chair.]

The Chair: All right. Welcome back, everyone. I call Committee of Supply, Section A, back to order.

We’re currently considering the budget estimates of the Ministry of Emergency Management and Climate Readiness.

Hon. B. Ma: If the member will allow, we’d like to get back to him on the question about numbers so that we can get as accurate a count as we can muster.

In terms of how those centres are funded, they would be funded through a stat vote. That would be the emergency management vote 22. It’s out of that.

L. Doerkson: Thanks, Minister. That’ll be just fine. I’m just trying to get a sense of how many of these shelters have opened up in both different seasons, both in hot and cool. I can wait for that information. It’s not a problem at all.

I wonder if the minister, though, could clear up the process of how this works. Is it as simple as a community applying for the funds or reaching out? I’m unaware of how the process works, and I’m trying to understand who reaches out to who. Is it the province that reaches out to the community saying, “Look, we need to do this; we’ve got a heat dome coming,” or is it the community that is actually reaching to the province for that funding?

[4:20 p.m.]

Hon. B. Ma: If we are aware of an extreme weather situation coming up…. EMCR may actually do some active reach-outs to communities to encourage them to open warming centres or cooling centres. We may set up a coordination call for emergency management partners in the area to discuss what’s coming, especially if the forecast is showing extreme cold temperatures or extreme heat temperatures. We may do that. That’s an extra thing that we would do.

Really, the need for a warming centre or a cooling centre is identified by the community. It’s very community-driven. If a community identifies that they do need a warming centre or cooling centre….

The eligibility criteria and, I guess, the policy for having warming centres or cooling centres covered is publicly available. It’s available to look at. We can provide you with the link, if that would be helpful. The community would simply call up their regional Emergency Management and Climate Readiness office and request a task number. It’s as simple as that.

Many communities may submit an expense authorization form. It’s not like a big grant application or anything like that. It’s a very simple form just so that they’re absolutely clear as to what is or is not eligible for reimbursement.

The authorization for a task number to allow a community to receive reimbursements from EMCR for a warming centre or cooling centre is done at the regional office level. It’s a very operational decision that’s made. It doesn’t have to come all the way up to the minister and be signed off and then go all the way back down to the community days or weeks later. It happens, oftentimes, immediately or close to immediately.

L. Doerkson: Okay. Thanks, Minister. That answers that question for me. I’ll look forward to seeing what the numbers look like, not just the number of centres but how much funds, in the past, have been committed to that.

I want to move along a little bit to volunteers and talk, potentially, a little bit about Bill 31. I do want to speak, I guess, to what happened with search and rescue teams throughout the province just after Bill 31 was brought into effect.

I have a couple of questions from Dwight Yochim, who, I think, is still a little bit frustrated. I want to just chat a little bit about the situation that developed there. I want to understand if the contracts that were sent out to search and rescue teams throughout the province have been contemplated for other volunteers. I know that we have multiple volunteers, of course, through ESS programs.

Frankly, we did touch a little bit on this in committee stage of Bill 31, but I do want to understand the mechanism and what Bill 31 is going to mean for all of our volunteers. Specifically, I want to start with SARA, just to understand…. Has that relationship improved? What is the current development with respect to B.C. Search and Rescue?

[4:25 p.m.]

Hon. B. Ma: Gratitude to the critic for the question. I guess I would start by acknowledging that the communications for the rollout of the invitations to apply for authorization as a public safety provider under the EDMA to search and rescue groups could have been done a lot better. I take personal responsibility for that.

I have to say…. I was on leave for the birth of Azalea very shortly after the legislation was brought into royal assent. During that time, when I was away, was when these invitations to apply for authorization as a public safety provider were issued. It meant that I was not around to support the communication effort that should have occurred during that process.

For greater clarity, the reason why the ground search and rescue groups were invited to apply for authorization as a public safety provider was to enable the provision of the protection of the legal proceedings that are afforded to public safety providers under the EDMA.

[4:30 p.m.]

Under the EPA, individual volunteers were provided — sorry, what is that term — protections, civil liability protections, so individual volunteers were provided civil liability protections under the EPA. Under the EDMA, we also extend that protection to the groups as an organization. Search and rescue groups are each independent organizations, so by registering as a public safety provider under the EDMA, it would allow them to have that protection.

There was no intention to fundamentally change the way that those services were being delivered through this application to become a public safety provider. However, there were clearly insufficient communications around this process and that lack of assurance that I could have provided as minister if I had not been on leave. I think that led to quite a lot of confusion and concern.

Since then, we have made a few changes and taken action to try to restart and repair that relationship. We’ve been working very closely with BCSARA. We have a good working relationship with them at the provincial organization level. We actually hosted a town hall to acknowledge the shortcomings of this process directly with ground search and rescue groups.

I delivered a personal apology and made the acknowledgment that I just did right now and basically laid out a path forward for us. EMCR staff, as well as the full BCSARA board and requesting agencies — those are the agencies like the RCMP who actually request the services of GSAR — are actually spending the entire weekend this weekend together to talk about the path forward.

In terms of the what the EDMA means for other volunteer groups…. The EDMA contemplates three volunteer groups. There were the GSAR groups, ground search and rescue groups. It talks about emergency support services volunteers. It talks about road rescue groups. You’re testing my knowledge on the actual wording of the legislation.

Now, they might not have actually listed them, but I certainly communicated with them, those groups, during the debate on EDMA.

I will say that emergency support services volunteers are different from GSAR groups because they tend to be volunteers of the local government. They tend to be volunteers of the municipality, the regional district or the First Nation. They’re not independent groups in and of themselves like GSAR groups are.

Road rescue volunteers often also fall under that format, although there are a few road rescue groups who may not. So we’re working through whether or not they should be offered the opportunity to be onboarded as a provincial safety provider as well.

Going back to where things are at with the ground search and rescue groups and the authorization as a public safety provider, I will say that 78 percent of eligible ground search and rescue groups have so far applied for that authorization and therefore will be able to have the protection of legal proceedings afforded to them under the EDMA. However, the requirement for ground search and rescue groups to apply as a public safety provider has been lifted.

We had previously very, very strongly recommended, encouraged — I suppose, set a requirement for — GSAR groups to apply as public safety providers. But given the concerns that have been raised and some of the reluctance of groups, that requirement has been lifted. We’ll continue to work with them and find a path forward so that we’re able to ensure that British Columbians are supported by a strong ground search and rescue community throughout the province.

L. Doerkson: Thanks, Minister. I appreciate that that happened while you were on leave. I think, unless I’m misunderstanding, that there might still be some frustration at that level.

[4:35 p.m.]

We will get into the other volunteers, because I do have questions about different organizations that are somewhat…. I suppose they’re not funded by anybody, really. They’re kind of in a no man’s land where they’re operating by themselves, but they are having to operate within the guardrails of certain liability issues, etc. The challenges that they’re faced with are pretty extreme, but I’ll come to that in a minute or two.

With respect to the letter that went to, of course, the Premier on January 8…. Just noting some of the points that that came up in that letter was that EMCR ignored and did not disclose significant safety concerns found in the training audit. I’m sure the minister is aware of the training audit that I’m referring to, so I don’t want to go into that in great detail. But some of the points are that there was a disrespectful attitude to search and rescue volunteers. There were a number of other concerns in a fairly large letter.

I wondered, first off, if the minister is aware and has seen the audit. Secondly, has there been any clear reason why it was withheld?

Hon. B. Ma: Yes, I do understand that EMCR had undertaken a review of annual training records. The letter would have referred to the annual review of the records associated with class D helicopter rescue. The review did not identify significant safety concerns.

A couple of months ago — I don’t remember exactly when, several weeks ago, a couple months ago — EMCR shared the nature of the findings with the BCSARA president and co-chair of the SAR volunteer joint health and safety committee, who then in turn shared them with BCSARA board.

[4:40 p.m.]

At the time, the BCSARA board had indicated to EMCR that they didn’t require an additional report or documentation, although I understand that they have since requested that the documentation be released, and we’re in the process of doing so.

L. Doerkson: Thanks, Minister. Maybe just if I could ask if the minister could expand.

There are other serious allegations in the letter: bullying, intimidation, threats, potentially sexist behaviour, all kinds of things. While that’s all concerning, I guess what I want to understand is what steps EMCR has made to repair the relationship between SARA. I can appreciate…. I think the minister said there were groups meeting. I’m not sure how EMCR is involved in that.

I’m happy to move on, knowing that this relationship is repaired and that this letter has been addressed in a fulsome way. I think they’re still very concerned about a number of these different things.

Then, I guess, secondly, if there was technology that hasn’t been brought forth for use, I wonder if the minister could explain what that technology is and why it wouldn’t be considered, or why, potentially, it is being considered.

I guess there are two questions there that I would love to hear the answer to.

[4:45 p.m.]

Hon. B. Ma: Yes, upon receiving the letter and the concerns outlined, I actually personally met directly with a group of representatives from ground search and rescue groups that raised some of the concerns.

I connected directly with the BCSARA president. We’ve had several conversations since, very excellent conversations where we reaffirmed our mutual commitment to ensuring a strong ground search and rescue landscape for British Columbians. That means working together to make sure that volunteers feel respected and heard, that they feel that they have a voice and a pathway into government and into our ministry, to me, to express their concerns.

BCSARA is very committed to making sure…. I heard from BCSARA how committed they are to working directly with the GSAR groups to ensure that that voice is available and that the GSAR groups feel as though they are being heard.

They also hosted three separate town halls earlier this year, one that I was at personally, and another that staff from EMCR was at, in order to provide greater clarity on what the Emergency and Disaster Management Act was all about and answer questions. BCSARA also hosted their own town hall to discuss internally some of the concerns that have been raised.

This weekend there’s a joint meeting of EMCR staff and the BCSARA board, as well as requesting agencies. They’re meeting all weekend, on Saturday and Sunday, to discuss the path forward. Part of the conversation will certainly be about the use of technologies as well.

It is worthwhile noting that the kind of technology or the capabilities or the kinds of services that are being requested of ground search and rescue groups…. Where those requests are initiated is the requesting agencies. That includes the RCMP, emergency health services, local authorities and First Nations as well. It’s local authorities, First Nations, B.C. RCMP and the emergency health services.

L. Doerkson: I’ll take us back to the question with respect to the technologies that are suggested in the letter that could save lives right away. I’m grateful for the answer that I just got with respect to whatever relationship-building is happening, specifically with B.C. Search and Rescue.

[4:50 p.m.]

Also concerning in the letter is an allegation that EMCR is ignoring advances in technology that could save lives today. The minister, I’m sure, is aware of them — the use of Artemis, use of drones and video-scanning software. Those are all three well-defined well-explained, potential lifesaving technology pieces that could be incredibly helpful.

I guess what I’m trying to understand is: is this letter true in suggesting that these technologies are being ignored, or is the minister considering them now?

Hon. B. Ma: Yes, EMCR is considering the use of these technologies. We, as a ministry, however, are required to work with requesting agencies for approval of the use of these technologies for search and rescue, and those conversations are ongoing.

L. Doerkson: Thank you, Minister.

I’m just wondering if I could get a sense of what the biggest concern is with these. Is it liability? I mean, it seems to me the use of drones and such are being used in so many other industries today. Search and rescue seems to feel that these are lifesaving, vitally important possible solutions to some of their rescue missions.

I’m just wondering: what are the specific items that would permit these teams from using these lifesaving technologies today?

Hon. B. Ma: I cannot speak on behalf of the requesting agencies as to what their concerns are, but we are working with them. We’re working through their concerns with them.

I should also note that we’re not doing this alone We do this work jointly with BCSARA.

L. Doerkson: The minister has suggested that other agencies are going to make the decisions on this. I guess one final — potentially one final — question on this letter.

Is this allegation false then — that SARA has suggested that EMCR ignores advances in technology that could save lives today? It’s bullet No. 3. Is that a false statement that BCSARA has made?

[4:55 p.m.]

Hon. B. Ma: I should provide greater clarity on EMCRs, I guess, participation in this work. I mean, we are very much a part of this process. We work with BCSARA and the requesting agencies through whatever concerns may be raised about the use of these technologies. So we’re very much at the table and working together with them.

I understand what the member has read out to be the position of the author of the letter as an individual. We don’t understand that to be the position of BCSARA. We are working closely with them, with the board, with the team. Basically, we’re working in partnership with the association on these challenges, and we hope to get a lot done this weekend when we meet with the requesting agencies and BCSARA again for the full weekend.

L. Doerkson: We’ll move on, Minister, from the letter.

I agree that, obviously, these were the thoughts of the author. I do know that many of these thoughts, though, were corroborated by a number of other individuals that I spoke to, and certainly, they’ve had a lot of concern.

I’ll move on to other volunteer agencies. I saw, potentially, some question marks in the minister’s eyes when I was talking about fire departments that are sort of in a no man’s land. I’d like to explain that a little bit further to her.

I have spoken about departments like the Greeny Lake fire department, for instance, in my riding. While I know that’s one fire department, certainly, this fire department would not be unlike so many others.

What I mean by that, Minister, is that they’re not funded by anyone particularly. They raise all of their own money.

The reason I’ve talked about Greeny Lake so often in the Legislature is that I just think they’re an amazing group of volunteers that sadly…. I hope that they’re not called into action, but at the moment that there is a lightning strike on Mount Timothy in my riding, they’re going to be the first people dispatched to that site.

The problem they’re facing is that they are in a situation where they’re facing a $500,000 expense in buying a new truck because they’re faced with a truck that’s timing out. I guess that’s my whole point.

[5:00 p.m.]

This is a department that is operating on its own. It’s funded entirely by themselves, but they are still, of course, volunteers that are dealing with liability. These guys sell hot dogs and 50-50 tickets, and they run a campground. It’s unbelievable what they do in order to protect their community, which is very remote, from fire.

Again, I need to stress that they are not unique. There are many departments out there that are in this situation. The problem, as I’ve said repeatedly…. Potentially, it’s a little bit misleading, but I joke about their fire truck, which has been to 25 parades and three or four fires. It’s relatively a brand-new truck, although it’s 25 years old. Now, through the offices of Public Safety, we have been able to get an extension on that particular truck.

I can’t stress this enough. This is a group of people that are simply trying to manoeuvre liability and all kinds of training and everything else. Every time they turn around, there’s another barrier in front of them. The latest barrier, of course, was the cleaning of turnout gear, whether it had been used or not used.

I don’t want to belabour the point. I guess what I’m trying to understand is how, potentially, what’s happened with SARA could be affecting volunteers like this. I know that the minister referred to auto ex earlier and other groups that potentially are funded by regional municipalities and different levels of local government, but these folks are kind of in a spot where they’re a little bit concerned about provincial reach over them as well.

I wonder if the minister has any comments regarding, first off, the funding of these types of departments. Many of them have tried to go through gaming programs and those types of things, and of course, they’re not qualifying. They’re just simply not getting the funding. I can’t stress it enough, because I’ve got a number of these departments in my riding. As I noted here a couple of hours ago, we’ve just gone on a fire ban, which is the earliest I’ve ever seen in the Cariboo. That’s for certain.

I’m wondering about those two items. One, how will Bill 31 potentially affect, or not affect, these volunteers? Secondly, we talked a little bit about hundreds of millions of dollars going to communities. I can’t think of anything more important than this kind of mitigation. Is there anything that the minister might offer up with respect to funding, and also, how will Bill 31 affect them?

Hon. B. Ma: I want to thank the member for Cariboo-Chilcotin for being a voice and an advocate for these wonderful volunteers, the volunteer firefighters that protect communities right across the province. I agree that their devotion, what they give of themselves, what they risk in order to protect their neighbours, their loved ones and their broader communities is incredible. Really, when we think about the heroes of this province, they certainly fall under that category, in my mind.

[5:05 p.m.]

I’m afraid that I won’t have a ton of information to offer for the member, because volunteer firefighters are actually governed by the Fire Services Act, not the EDMA. The EDMA has no effect on these volunteers. The Fire Services Act is under the auspices of the Ministry of Public Safety and Solicitor General. I understand that their estimates are still to come.

That being said, there is one connection that I can think of with EMCR. Through the community emergency preparedness fund — that is, the CEPF program — we do have a stream of funding to build the resiliency of volunteer and composite fire departments in preparing for and responding to emergencies through the purchase of new or replacement equipment and to facilitate the delivery of training. Under that stream, 340 projects, for a total of $17.2 million, have been approved so far. That is the extent to which volunteer firefighters are funded by EMCR.

The remaining questions that the member has would be best directed to the Ministry of Public Safety and Solicitor General.

L. Doerkson: Thank you for that, Minister.

Could you just repeat the program, please?

Hon. B. Ma: The program is the community emergency preparedness fund. This is the fund that is administered through the Union of B.C. Municipalities. However, I should note that through this program, the grants are quite small. We’re talking a maximum of $30,000 per project. That’s why 340 projects, totalling $17.2 million so far, have been approved.

It sounds like the member is perhaps referring to grants of a much larger size. I just want to add the caveat that this stream, under the CEPF funding, is very useful for quite small volunteer fire departments. I mean, $30,000, in these small organizations, is nothing to laugh at. It certainly helped many of these organizations to stock up some of the equipment and do some replacement equipment and facilitate very important training, although I acknowledge that it is not the larger amounts that the member may be seeking for his community.

L. Doerkson: Thanks, Minister. That’s helpful. Certainly, it could help with other things. I guess I will continue my plea for funding for some of those larger things.

When we look at the investment that the province is considering with respect to mitigation work in other areas — and that mitigation might be diverting water, creating a dike, rebuilding a bridge or whatever — I can’t think of anything more important, in many cases, than putting out fire before it becomes completely out of control. I will certainly research that program a little bit more.

In the last moments of today, I wondered if we could just get a little bit of clarity around the contracts that were sent out to BCSARA. Would we or could we expect to see that sent out to other volunteers in the province, volunteers like ESS? I’m also curious to know what other volunteers might fall under the minister’s leadership. I know ESS, and of course, I’m aware of BCSARA. I’m wondering about any other agencies that would fall under the leadership of the minister.

[5:10 p.m.]

Hon. B. Ma: Most of my response to the critic I’ve already provided in a previous question, but I’ll try to reiterate it in a way to provide a more fulsome, I guess, explanation.

First off, the types of volunteers that would be governed or affected by the EDMA or are contemplated by the EDMA would include ground search and rescue groups, emergency support services volunteers, PEP Air volunteers, radio operators and Road Rescue volunteers. These are the public safety lifeline volunteers.

Now, the contracts that the member is referring to, those are…. They’re not quite contracts. They are invitations to apply as provincial safety providers. That’s what I was referring to previously, that if an organization registers as a provincial safety provider, they are granted civil liability protections as an organization under the EDMA. It benefits these groups to receive the civil liability protection, but they’re only able to access that benefit as a provincial safety provider, a registered provincial safety provider.

[5:15 p.m.]

GSAR groups were invited to become provincial safety providers. Emergency support services volunteers are volunteers of the local government — so the municipality, the regional district. They’re also volunteers of First Nations, so they are not provincial volunteers. They will not be given the opportunity to register as provincial safety providers.

PEP Air volunteers are federal volunteers. So it won’t apply there.

Radio operators tend to be individuals. They’re not organizations. If the member will remember, in my previous response…. The Emergency Program Act provided civil liability protection to individuals. The EDMA provides civil liability protection to individuals as well as organizations. But because radio operators are a mishmash of individuals as opposed to organizations, there’s no benefit to them to apply for civil liability protection by becoming a provincial safety volunteer.

Road rescue volunteers are primarily attached to municipal fire departments and, therefore, fall under the same format or category or circumstance as emergency support services, although there are some road rescue volunteers that are independent groups who would be offered the opportunity to register for that protection. Then there are a few road rescue volunteer groups that are not quite either. So we’re working through which ones might be afforded the benefit of becoming a provincial safety provider.

L. Doerkson: I’ve been told to ask a quick question. The question really was whether or not these other agencies would get this contract.

Now, I think the minister referred to it as an invitation. I would say that that’s kind of a loose term. I mean, the contract that I saw for SARA did suggest that you either sign this or you won’t be deployed.

My question is: what does that mean for these other volunteers? Will they be asked to sign a similar contract? Sorry. The minister referred to it as an invitation.

Hon. B. Ma: This is the same response as I provided earlier. So I’ll try to provide even greater clarity.

They are not contracts. They are invitations to register as a provincial safety provider. When you become a provincial safety provider, you’re afforded the protections that are offered by EDMA, which include civil liability protections for the organization. That was the purpose of the invitation to become a provincial safety provider.

I will also say…. Because EMCR saw this as a benefit to organizations, it likely led to us underestimating the concerns that that invitation would raise. Again, I take responsibility for not being around to facilitate the communication process around that invitation and not being able to provide the assurances that I was, then, able to provide, as minister, when I returned from leave and gave directly to GSAR groups during that town hall that I was at.

Becoming a provincial safety provider…. The only difference, really, is the ability to access this civil liability protection. Whether a GSAR group becomes a provincial safety provider or not, they are still required to operate within the policies and procedures that are managed by EMCR.

Originally, it was the intention to get all GSAR groups to become provincial safety providers and to give all GSAR groups the benefit of the civil liability protection that comes with that registration. Since we heard the concerns raised and the reluctance from some groups to register…. Although 78 percent of groups have registered, there do remain some groups who prefer not to register.

We have since lifted the requirement to register to continue on as a GSAR group. So those GSAR groups who do not register as provincial safety providers will continue to be deployed. We will continue to work with them, and we will work with requesting agencies to, basically, carry on that valuable service that these volunteers provide.

The question….

The Chair: Minister, just noting the hour.

Hon. B. Ma: Noting the hour, I move that the committee rise, report resolution and completion of the estimates of the Ministry of Forests and report progress on the esti­mates of the Ministry of Emergency Management and Climate Readiness and ask leave to sit again.

Motion approved.

The committee rose at 5:20 p.m.


PROCEEDINGS IN THE
BIRCH ROOM

Committee of Supply

ESTIMATES: MINISTRY OF ENVIRONMENT
AND CLIMATE CHANGE STRATEGY

(continued)

The House in Committee of Supply (Section C); M. Dykeman in the chair.

The committee met at 1:03 p.m.

The Chair: Good afternoon, Members. I call Committee of Supply, Section C, to order. We’re meeting today to continue consideration of the budget estimates for Environment and Climate Change Strategy.

On Vote 24: ministry operations, $188,053,000 (continued).

P. Milobar: Thanks to the minister for making some time for me here. The member from Kelowna will be back shortly, but she’s also tied up in a different…. There are a lot of moving parts today in the Legislature, so we’re covering each other off for a little bit.

I did want to dive in a little bit, though, around the BCBC report. It’s probably not a surprise to the minister that I would go there. Really, their report was based on economic modelling that was done for the minister and the government, that was actually a government document, a government contract for the work to be done, and on a government website.

When the sum total of that report was evaluated by the economists at BCBC, it showed very clearly that full implementation of CleanBC policies would result in a $28 billion loss of GDP in the provincial economy, take wages back, potentially, $11,000 per household and essentially reset our economy back to 2013 levels.

[1:05 p.m.]

Again, this was a contract and modelling done at the request of the government for the government, yet the minister has tried to refute the report every step of the way. In fact, in the minister’s letter back to BCBC economists, the minister stated: “Cabinet has the opportunity to review the benefits and costs, including macroeconomic impacts, of all the climate policies under consideration as they are brought forward to decision, in line with the implementation plans described in the roadmap.”

Has the cabinet seen the full potential impacts of CleanBC? Have they approved of the potential loss of $28 billion to the provincial economy?

Hon. G. Heyman: The purpose of economic modelling is to demonstrate a particular result of a particular input, and economists understand this, including the Business Council of B.C. economists. The model that they referenced, and that the member opposite references, was a one-dimensional model. It was intended to show what will be the specific economic impact of these measures.

[1:10 p.m.]

What wasn’t included as an input in that particular model, which would yield a very different result, would be the costs associated with climate change on the economy — for example, the $7 billion hit to B.C.’s economy that resulted from the floods a couple of years ago and the atmospheric rivers or the economic activity and growth that is associated with investments in clean technology, clean energy and a clean economy.

We undertook the model for a very specific purpose. It was one dimensional, and it showed what it showed, but it is not a predictor of what is going to happen to the B.C. economy. In fact, what cabinet considers when we consider climate change programs and economic programs is to consider them together in a way that takes B.C. further down the path outlined in the CleanBC Roadmap to 2030, to systematically reduce emissions while at the same time choosing ways to do that which grow a healthy economy in clean tech, in clean energy and in cleaner, lower-carbon resource industries.

P. Milobar: The report very clearly showed that to drive down emissions to the level that the minister is targeting, you’d have to essentially shut down the economy, to the tune of a $28 billion hit. The minister several times now, and he just did again, references fires and floods, and he didn’t take into account the costs of those types of incidents that happened.

Is the minister saying that if we meet the CleanBC targets, if we dramatically reduce our emission profile in British Columbia, there will be no more floods or fires or large climatic events happening in British Columbia? Is that what we’re being led to believe is the end goal of these CleanBC initiatives?

Hon. G. Heyman: First of all, we think that if we meet our targets under CleanBC and if the rest of the world sets similar targets and meets them, we will gradually change the shape of the curve of escalating climate-induced harms. Will they stop tomorrow or overnight? Absolutely not. Will they get worse if we and the rest of the globe do nothing? Absolutely they will, and they may well for a while regardless of what we do.

To the member’s statement that we predicted and that I have said that we’re expecting a $28 billion hit to the B.C. economy or some sort of negative impact to the B.C. economy, that’s clearly not what I said. What I said was that that is the result that is shown from a one-dimensional model with one set of inputs that specifically did not include other inputs that relate to what spurs economic growth and opportunity in a low-carbon world.

The member may disagree with me, but that’s the position of the ministry. That’s the position that I take. That is what we intended when we produced the model. We may well look at other models that have been done elsewhere in the world or that we may do here that show all of the advantages of investing in clean tech and clean energy, in lowering emissions in mining, in forestry and elsewhere as the world is looking for low-carbon commodities that would show a very different result. That’s, in fact, what we’re focused on doing.

[1:15 p.m.]

P. Milobar: Well, it’s the minister’s own answer that didn’t take into account the $7 billion that we had to spend because of fires and floods over the last short while, making it appear that the minister was thinking that that means, under CleanBC, those incidents will stop. That that is going to happen within our provincial sphere regardless of what we do with our emission profiles is, I guess, the point. That cost to British Columbia is going to happen, whether we shut down the economy and cost $28 billion of GDP or not.

The minister references that it’s a one-dimensional modelling. I find it remarkable that the government would contract for a one-dimensional model on something that is as complex and controversial, frankly, in terms of the national dialogue and international dialogue of cost-benefit analysis around what happens when you’re trying to green up the economy and drive down emissions and things of that nature.

I guess the question to the minister is: why would the government contract for a form of modelling that apparently serves no purpose and no use for the government whatsoever and doesn’t provide any assurances to people that the government is on the right track on the economic side of driving down emissions at the same time?

[1:20 p.m.]

Hon. G. Heyman: I could go into a lot of detail, but I won’t. What I will say is that while the measures in the roadmap may have a small negative impact on economic growth, absent all the other potential growth opportunities I mentioned, it is not going to be the same as the model.

The reason for that is that we regularly and models regularly use placeholder assumptions. In this case, the placeholder assumption that was used in the model was vehicle kilometres travelled, and 70 percent of the difference in the 2030 GDP totals is due to the vehicle-kilometres-travelled reduction assumption.

The way modellers use that assumption is they assume that if people are driving less, there’s less economic activity, as opposed to them maybe driving less because of an active transportation strategy that includes more investment in public transit, other modes of getting to work, transit-oriented development and other matters.

As we continue to develop modelling for CleanBC, we will look at the placeholder assumptions that are used and look for better ways to more accurately predict actual economic impact.

P. Milobar: Well, I appreciate that answer, but that wasn’t the question. The question was…. The minister keeps saying that it was a one-dimensional model and that you can’t really rely on what it said. Yet it was contracted by the government. Certainly the government, I’m assuming, when they went out to seek this modelling to be done, would have set the parameters that they wanted the modelling done as.

It doesn’t make a whole lot of sense that…. I think the minister would agree with me that the more public buy-in you have on something like emission reductions, the better your emission reductions will be, because we need the public to actually change how they get around in a community, how they deal with their daily lives, to help drive down emissions — just as we need from industry.

You need buy-in, which means that to get the buy-in, you should have modelling that shows people that doing things around emission reductions will actually be a net benefit to them. Yet what we’re hearing is that the only modelling the government has done to this point on CleanBC, when we’re basically five years out from the 2030 targets, was a contract for a one-dimensional report that the minister doesn’t put any faith in.

Why would the government contract for such a poorly designed report, as it relates to CleanBC, if there was going to be zero faith and trust in any of the data and if the data is so one dimensional that it’s not usable anyways for the general public to understand how this will actually benefit them if reductions reduce in British Columbia?

[1:25 p.m.]

Hon. G. Heyman: Well, the member’s question is premised on whether we commissioned an economic model. The primary purpose of the Navius model was to show us what the expected emission reductions from our various pathways and measures contained in CleanBC would be. It also showed certain impacts, what I have called a one-dimensional approach to those impacts.

The primary purpose, in fact, was to show the emission reduction impacts of the measures. We may well undertake a model to look at a full range of parameters that reflect economic impacts, whether they’re negative or whether they’re positive, and I would expect that the member might well support that should that come to pass.

I’ll close by saying that the best way, I think, to evaluate the impact of B.C.’s economic plan, whether it’s StrongerBC or CleanBC or the impacts of our CleanBC measures on the economy, is actual performance. And the fact is that the actual performance of British Columbia’s economy in the five years following 2018, which includes years of CleanBC, is that we had the highest gross domestic product among large provinces in Canada — full stop.

P. Milobar: Well, again, on the one hand the minister insists there will be no economic downside to CleanBC and that the modelling isn’t accurate, that it’s one-dimensional, that other measures weren’t taken into account, that as we transition there’s a net benefit switching to the green economy, things of that nature. Yet whenever we point out the $28 billion GDP drop, which is the only number we have to go on based on a government-commissioned report….

Then the minister will reference placeholder assumptions. There are duelling opinions around the 70 percent. BCBC has crunched the numbers. They think it’s more in line with the 12 or 13 percent potential difference of GDP if you use the transportation as the placeholder that the minister is talking about.

The bottom line is there are conflicting economists out there talking about how this report should or shouldn’t be interpreted. It has been publicly talked about with these conflicting interpretations since July. We’re now debating a new budget year where, with record spending, one would think that the Ministry of Environment would have found enough money in the budget to go out and get some modelling done to either reinforce what the minister and the government seem to think is going to happen under CleanBC or that, in fact, BCBC is accurate.

[1:30 p.m.]

I find it shocking that with a government-commissioned report indicating a $28 billion GDP drop, all these months later, the government has taken no action to try to verify whether it’s accurate or not, but they’re insistent on continuing down the policy path at the same time.

Why has the minister not commissioned a more fulsome review of what the CleanBC impacts — positively or negatively, as the minister has pointed out — would have in the overall economy of British Columbia? If they haven’t already initiated it — and it sounds like, in that last answer, they most definitely haven’t — why haven’t they? What is the timeline to actually get some sort of modeling out there that the government might be comfortable with?

I’ve never, in my time in government, either municipal or provincial, seen where…. If a government was really convinced that what they were doing was going to completely refute the $28 billion drop in GDP, there would have been a mad scramble to have that modelling done and out and a document to push back against. Not only do we not have that; the work hasn’t even started on that. Yet we’re expected to just trust that there won’t be a major impact to the economy as we embark on trying to hit these targets.

Why has the government not engaged a new, updated modelling to either prove or disprove what has become, now, the conversation around British Columbia within industry and within people’s households as we’re looking at trying to hit these targets that the government has set?

Hon. G. Heyman: In answering the member’s questions, I’m having, I find, to start my answer by correcting the member’s mischaracterization of a number of my statements. So I’ll do that again. I did not say that the model was inaccurate. I said it was one-dimensional, and it was designed to show the emission reduction impacts of the CleanBC suite of policies. That was its primary purpose.

The fact is that any model…. When it suits the public interest, we may well do another set of modelling, not to defend ourselves or our actions but in the public interest, to show, as best as we can predict, what may happen. But the fact remains that models are predictions.

[1:35 p.m.]

The facts — the demonstrable, historical facts — are that since 2018, for the five years following 2018, British Columbia’s GDP has exceeded all large provinces in Canada — full stop.

R. Merrifield: Thank you, Minister, for the answer to the question.

Well, I do appreciate that the minister has gone back to 2018 and given some facts relative to the GDP of B.C. Having said that, though, in the 2023 Climate Change Accountability Report, the minister’s own document actually acknowledges that even the 2021 emissions are based on a start-up phase of CleanBC.

I’m quoting from page 4. “Many policies and programs, including those in the 2021 CleanBC Roadmap to 2030” — are not yet in place. Further down the page, “The near-term emissions outlook suggests that with all the roadmap policies fully implemented,” indicating they’re not fully implemented. The last paragraph: “Based on the longer-term emissions modeling, if all CleanBC policies and programs planned today are fully implemented….” The roadmap isn’t even fully implemented.

We know that. The documents all say that. We know that from the legislation that’s come through the House. We know that from the programs that are currently in place. The minister is trying to indicate that because the GDP has still done well, then the modelling must be incorrect, without acknowledging that CleanBC has not yet been fully implemented.

The minister also said that if it’s in the public’s best interest…. Is the minister indicating that a significant drop in GDP because of policies that are to be implemented is not a reason to actually sound an alarm bell and get better modelling and give it to the public?

Hon. G. Heyman: Well, I would say this about the claim that the Roadmap to 2030 is not fully implemented. If I decide that one of the things I want to do this summer is take a road trip to St. John’s, Newfoundland and arrive there by September 1, and it’s, say for the sake of argument, June 30…. I may only have made it as far as Winnipeg. That doesn’t mean I’m not on the road or that I’m not taking measures to get to my destination.

Of course it’s not fully implemented yet. It’s not 2030, it’s not 2040, and it’s not 2050, but we are underway. We have demonstrable proof that there has been a positive impact on the economy from a whole range of factors. There has not been a negative impact. Our gross domestic product growth is the envy of large provinces across Canada, as is the fact that we’ve reduced emissions substantially and we have a robust climate plan. We’re the envy of many jurisdictions, and we intend to keep it that way.

R. Merrifield: The minister is proving my point. The point is that the modelling actually shows the full implementation of all of the aspects of CleanBC and what it will do to the economy. The modelling is the map that’s showing we’re on the wrong trajectory if we’re trying to get to…. I think the minister used Winnipeg.

[1:40 p.m.]

If we are serious about having a positive economy as well as lowering emissions, why has the minister not redone the economic modelling to show something otherwise?

Hon. G. Heyman: What the member claims is an economic model, as I’ve explained, was primarily a model to demonstrate the emission reduction potential of the various measures in CleanBC. We are driving down emissions demonstrably and have since 2018. We have had the highest GDP growth among large provinces since 2018.

The member can call that an alarm bell, if she wants. I call it success.

R. Merrifield: With all due respect, the modelling is not to show the emissions reduction. It’s to show the impact on the economy. It’s to show the impact on the GDP per different industries. That modelling, which was done by the government’s own modellers, hired by the government, to be precise — I don’t want to mince words — was actually to show what the economic impact of the emission reduction would be.

With all due respect, no, it’s not to show the emissions reduction. CleanBC does that in four different, five different, six different appendices right now, none of which add up, none of which have the same numbers, none of which….

I was actually hopeful that this year, at least, the reports would have the same numbers and appendices. But even then, one was different. It’s getting better. It’s getting cleaner.

Not once do we have the actual rebuttal that would give any amount of comfort in the economic modelling and the economic impact of the emissions being reduced to the extent that CleanBC is requiring, and not just the emissions reduction but in the way that CleanBC is actually requiring.

Hon. G. Heyman: I’ll repeat again. I’ll repeat it until five o’clock this afternoon, if I have to. The primary purpose of the model was to show the expected emission reduction results of CleanBC policies. It was not primarily done to show the economic impacts.

The fact remains that B.C.’s gross domestic product is up 14.4 percent since 2017, the highest among large provinces. That’s a fact.

R. Merrifield: With all due respect, if the minister’s insinuation is that the modelling was primarily in emissions and this is the resulting economic impact….

[1:45 p.m.]

My first go-to would be to look at redoing that economic impact to really make sure that those numbers were either correct or incorrect. The minister has not done that, despite there being three years’ worth of legislation and policy and movement in a direction that could have us careening not just to Regina instead of Winnipeg but actually careening off a cliff on our way.

In your letter to the BCBC economists, you state: “Cabinet has had the opportunity to review the benefits and costs, including the macroeconomic impacts” — huh, that sounds like there’s some security within the economic modelling that has been done and at least some reliance upon it; I’ll further go on — “of all climate policies under consideration, which are brought forward for decision, in line with the implementation plans described in the roadmap.”

Has cabinet seen the full potential economic impact of CleanBC and approved of this potential loss?

Hon. G. Heyman: The member, in the preamble to her question, said…. I think the quote is that I was talking about the resulting economic impacts of the model.

I didn’t do that. I stated that that particular impact was based on a narrow set of inputs. It wasn’t the primary purpose of the model, and it didn’t take into account many other inputs that could be put in and that would show a more holistic economic impact.

That’s why I haven’t been concerned about the model. I know that there is a range of other potential inputs and impacts and positive results that we are considering, that we look at, that we expect and that are included in that model. We’ll continue to focus on that.

[1:50 p.m.]

R. Merrifield: The minister is banking on the fact that B.C., I think, is outpacing the GDP, but if we look at this year’s forecast numbers for 2024, that is actually factually incorrect. In fact, the only two provinces that we are beating this year in the forecast numbers are Quebec at 0.3 GDP and Newfoundland at minus 0.4. PEI is predicted to outpace us at 2.3; Nova Scotia, 1.4; New Brunswick, 1.1; Ontario is basically at par; Manitoba, 1.6; Saskatchewan, 1.2; Alberta, double our economic output; B.C., 0.9.

Actually, we are third from the bottom when it comes to economic output, considering that economists — not just the BCBC but also Bank of Montreal…. And I can quote from them next if the minister would prefer. But basically, this sounds like, perhaps, on a forecast model, moving forward, our economy is not doing as well, and perhaps the economic modelling is more factually correct than what the minister would like to believe.

I’m going to go back to my question, however, and ask again. The minister has stated that “cabinet has had the opportunity to review the benefits and costs, including macroeconomic impacts of all climate policies under consideration as they are brought forward to decision in line with the implementation plans described in the roadmap.” Has the cabinet seen the full, potential impact of CleanBC and approved of this potential loss of $28 billion to the B.C. economy?

Hon. G. Heyman: As the member quoted from the letter, cabinet had a chance to review the macroeconomic impacts, which implies that what they reviewed was not simply a result of a one-dimensional, single-parameter result in a model that was primarily designed to show emission reductions. They looked at a range of potential outcomes, including significantly positive ones.

The other thing that we committed to cabinet…. When we first brought the roadmap, we said here’s the suite of policies. We will make individual decisions about how we implement each of them as we go forward, and we will report to cabinet, and we regularly report to cabinet on economic impacts. But I will not discuss the detail of the discussions to date, because that’s covered by cabinet confidentiality.

R. Merrifield: Trevor Tombe just recently said: “I estimate that B.C.’s long-run fiscal future is now bleaker than any other, including Newfoundland and Labrador, which normally holds such a distinction.” Why won’t the minister recognize the serious job losses and negative impacts on income as anticipated as a result of CleanBC’s implementation?

[1:55 p.m.]

Hon. G. Heyman: Well, while I believe that B.C.’s economic future, particularly its economic future in a carbon-constrained world, because of the proactive measures we’ve taken, is positive, I would say that what we are focused on is results. We’ve seen good results. We’re going to continue to adapt our policies to show good results.

What I’d ask the member opposite to do is to indicate whether the comments that she read in the quote from Trevor Tombe were specific to the impacts of CleanBC or were general in terms of an overall prediction of B.C.’s economic future based on a variety of factors. It’s very difficult to answer a question based on a quote taken out of context.

R. Merrifield: I will look up the exact context. But I think regardless of the quote, there are also the numbers. B.C. is falling. We’re not just in a little bit of a fall; this is a freefall. We have fallen to the third lowest in the country when we should be way up at the top.

It’s not just BCBC. I will quote from the Bank of Montreal Capital Markets on carbon innovation. I quote from the document: “When applied in combination with these other policies, the financial implications, complexities and regulatory burden could make further development in the province of British Columbia potentially uneconomic for much of industry. This is especially the case for operators who can simply shift capital and operations to other jurisdictions such as Alberta or the U.S. In a sense, we believe these policies could act as an indirect production cap for industry in B.C.”

I’ll draw the minister’s attention to the fact that Alberta is outpacing us 2 to 1 right now on how we are doing for our GDP. We should be doing better. I have a hard time believing that the minister, with the evidence in front of him as to what the forecast modellers are saying in not just the government’s own economic report but also with all of the vast information that came forward over our forecast for this year and next year and 2026…. I literally could go on. We are at the bottom, and it’s not looking better at any given year.

With this in mind, how does the government reconcile moving forward with these plans in CleanBC without any sort of understanding or initiatives to actually compensate for the economic catastrophe that we could be looking at?

[2:00 p.m.]

Hon. G. Heyman: Once again the member opposite is confusing and presenting projections as facts. While we take projections seriously and look at what underlies those projections and seek to adjust all of our economic policies and approaches to ensure that we’re benefiting British Columbians, benefiting the economy and creating jobs, projections are not facts. Facts are what happened between 2017 and today, not what is projected to happen over the next couple of years.

If the member wants to question what the full range of macroeconomic considerations that might have led to those projections are, I suggest she raise that with the Minister of Finance, because it is the Ministry of Finance that looks at those overall projections, rather than simply imply that all of this is attributable to CleanBC. In fact, none of it may be attributable to CleanBC.

Let me give the member some sense of what is resulting from CleanBC and our plan to grow a clean economy and drive down emissions while doing it.

There are 175 companies active in several transition-opportunity areas, including bioproducts and bioenergy, low-carbon electricity, agricultural technology and alternative proteins, low-carbon transportation and batteries and storage. Seven B.C. clean tech companies were on the 2024 Global Cleantech 100 list. That’s seven out of 100 in our province.

Clean Energy Canada has forecast that there will be 317,010 green jobs added in British Columbia between 2025 and 2050 in clean transportation, clean energy supply, clean industry and clean buildings. In addition to that, we’re planning a ten-year, $36 billion expansion of our electricity generation and transmission system that could see the creation of up to 12,500 construction jobs and could increase the value of net electricity exports to the U.S., which were nearly $1 billion in 2022.

R. Merrifield: Is the minister suggesting that CleanBC is not about our economy?

Hon. G. Heyman: On the contrary, I am suggesting that CleanBC is about developing a clean, low-carbon economy that helps British Columbia meet our commitments that I hope every jurisdiction in the world will meet towards the Paris targets.

[2:05 p.m.]

In doing so, we will create a robust, clean, low-carbon economy in British Columbia that takes both our technology skills and our natural resources that we’re developing and does it in a way that meets the increasing demand globally for low-carbon products.

R. Merrifield: CleanBC was touted as an economic plan when it was rolled out. I’ll quote from the CleanBC document: “CleanBC provides an effective blueprint to build our economy.”

The minister has stated this afternoon that despite it being an economic plan to build a prosperous, balanced and sustainable future, the economic modelling was either not really done well, or was sort of done, or maybe done, but hasn’t been done since that time frame.

Could the minister please respond as to why CleanBC is an economic plan without an economic modelling that we can rely on?

Hon. G. Heyman: Once again the member opposite has misrepresented what I said.

I did not say that our own economic model yielded X. What I said was that the model we did was a model to demonstrate reductions in greenhouse gas emissions and that the economic impact, narrowly framed, of a particular set of policies, rather than also looking at several other dimensions about economic opportunity, was not the primary purpose of the particular model. The emission outcomes were.

Of course I think CleanBC is an economic plan. That’s why I read out a list of a number of the economic opportunities and endeavors that are currently underway.

[2:10 p.m.]

If the member wants more, I would say that Clean Energy Canada projects that B.C. jobs and renewable power generation are set to more than quadruple by 2050. The International Energy Agency’s net-zero emissions by 2050 scenario says that global hydrogen demand increases by more than 50 percent by 2030. It’s a market that’s estimated to be worth $305 billion by 2050, and B.C. has signalled strongly our commitment to expanding our hydrogen sector.

The federal government estimates that by 2050, B.C. could earn $2.5 billion in annual GDP through the use and export of hydrogen and potentially create 3,750 new jobs in the sector.

R. Merrifield: The minister has stated that while evaluating the emissions reduction of CleanBC, the economic model that was created was not heeded to. The minister gave examples, awesome examples — examples that should be celebrated in terms of all of the clean tech and innovation that is coming on stream and out there today. I, too, echo those celebrations.

But 175 new businesses…. Let’s call it 350 new businesses. Let’s call it 1,000 new businesses. We’re talking about drops in a bucket of industries that are being crippled according to the economic outlook. The economic outlook is also being proven out by our free fall from No. 1, No. 2 to No. 7, No. 8.

All of this should cause concern, yet the minister says that he doesn’t actually adhere to the economic model because it’s not sufficient.

I am incredulous as to why the minister has not yet found a different model, sounded the alarm bell and tried to model out all of these awesome, progressive, amazing things that he describes. It is not going to supplement or supplant the other industries that we are about to lose. And some of them we don’t want to lose. The economic model actually shows a reduction in agriculture. We do not want to lose our economic output in agriculture.

When this plan came out in 2018, 2017, it was hailed as, and I’ll quote it from the press conference: “This is not only a climate plan; this is an economic plan.” An economic plan, which the minister is now saying didn’t actually have sufficient modelling attached to it.

If there is not sufficient modelling, how can the residents of B.C. be convinced at all that this won’t even have greater economic effects without having an economic plan being put together?

[2:15 p.m.]

Hon. G. Heyman: I think I understand why the member opposite is focused on the one model, because it is something that the member can hang her hat on in terms of her premise that we have an irresponsible climate plan that will damage the economy. But it’s simply not true. The “economic model” that she references is, in fact, as I’ve explained numerous times, not an economic model. It’s an emission reduction model that included a narrow economic projection based on limited inputs.

There are literally dozens of credible think tanks and economic commenters and organizations around the globe who repeatedly point out the significant opportunities, economic opportunities, in a low-carbon economy, particularly for early adopters.

Let me talk about one of the other opportunities in British Columbia in addition to the opportunities I’ve already listed. The International Energy Agency also finds that the demand for critical minerals grows three and a half times by 2030 to keep pace with the 2050 net-zero trajectory. Critical minerals currently comprise less than 25 percent of B.C.’s mining revenues, but there is significant potential for their economic contribution to grow. We’re a world-class mining jurisdiction with 16 of Canada’s 31 critical minerals, and we’re Canada’s largest copper and only molybdenum producer.

[2:20 p.m.]

We recently introduced our revised carbon tax program for large industry called the output-based pricing system. We had numerous meetings discussing the economics of our price signal in the output-based pricing system and the actual results of that in terms of competitiveness, and we reached a good result.

That’s why Teck, the Mining Association of B.C. and Rio Tinto all stood with us when we released the output-based pricing system and said that they supported strong climate action and price signals. They appreciated and supported the one we were introducing because it ensured that they would remain competitive and still attract investment to allow B.C.’s mining industry, particularly in critical minerals, to expand.

R. Merrifield: Well, as the minister has said, I am focused on the economic modelling. I am focused on it because it is the only one we have. I am more than willing to focus on another economic model that the minister has. But the minister, for the last four questions, has only given me anecdotal information, spotty information as to individualized predictions, but not overall as an economy, not overall as a province, not overall from an economic perspective.

The only ones that we do have on the forecast modelling have shown us in freefall from No. 1 or 2 to No. 7 or 8. So with all due respect, you’re right. I am focused on the one that I have in front of me, because it’s the only one that we’ve ever been given. I am somewhat incredulous that the minister has not done another one if this is indeed the only one we have.

I’ll just use some of the spotty information that the minister has given me. I’ve just taken notes, and right now I can add up about maybe $2 billion of GDP to replace the $28 billion that the model shows we are about to lose.

Most of what the minister is talking about…. I’m excited about mining. I’ve always said if we want electrification, we’ve got to get very comfortable with mining. Big proponent of our mining industry.

Right now on average in B.C., it takes 12 to 15 years to get a mining permit. Even if we wanted to double our mining, we’re looking at a 20- to 30- to 40- to 50-year goal, because we don’t put out enough mining permits. We haven’t put out mining permits under the new, current ESA other than, say, one. And now B.C. Hydro is telling us that we don’t have enough electricity and is now turning down projects.

I’ll quote from the leaked memo that came out last year. “This would give us some leverage with companies like Fortescue. You’ll either have to pay B.C. Hydro $1 billion under the existing tariff or agree to scale down size of your project.” This is a hydrogen project.

Yes, our limitations within CleanBC, within the environmental guidelines that we have, are having a dramatic impact on industry, and we’re seeing investment fleeing. We don’t have big, big dollars being predicted. We don’t have big dollars that are coming into B.C. We have forecasters that are seeing that and forecasters that are talking about it. Bank of Montreal. TD put out its own. BCBC is sounding the alarm bell.

Could the minister please describe economic opportunities totalling $28.1 billion in order to offset the GDP loss that is predicted by the government and the minister’s own modelling?

The Chair: Members, we’re going to take a ten-minute recess. We will be back here at 2.35 p.m.

The committee recessed from 2:24 p.m. to 2:42 p.m.

[M. Dykeman in the chair.]

The Chair: I call Committee of Supply, Section C, back to order. We’re currently considering the budget estimates for the Ministry of Environment and Climate Change Strategy.

Hon. G. Heyman: Once again, the member opposite refers to an economic model that in fact is an emission-reduction model. I will keep correcting the record on that.

The member also asked about other modelling that is happening in British Columbia. Modelling happens all the time, generally under the auspices of the Ministry of Finance. Modelling is taking place for the climate-aligned energy framework and for the clean transportation action plan. Jobs, Economic Development and Innovation has engaged Deloitte to do a series of projections based on opportunities and impacts of clean economic activity.

R. Merrifield: The minister didn’t actually answer my question, because I asked what economic replacements were going to happen for the $28 billion. The minister gave me four plans that are taking place right now, but none of them were substantiated with the dollar figures of GDP that were going to come into play.

[2:45 p.m.]

Hon. G. Heyman: Well, I’ll repeat: it wasn’t an economic model; it was a one-dimensional model. It didn’t include parameters and inputs for a range of other economic activity. Therefore, the $28 billion is simply not a legitimate forecast of what is going to happen — whatever the member, the Business Council of British Columbia, or Ken Peacock says.

The clean transportation action plan would never be implemented and will not be implemented in a way that has that kind of economic result. In fact, the modelling was useful in the sense that it allowed us to go back and revisit some assumptions about the clean transportation action plan to ensure that it had positive economic outcomes rather than negative ones.

In general, the member has asked how we’re going to account for economic forecasts. So let me read a range of GDP growth projections for 2025, from the British Columbia Economic Forecast Council, which were recorded in the budget documents.

For 2025, here is the range, from 13 different economists representing Bank of Montreal, Central 1 Credit Union, CIBC, Business Council, Real Estate Association, Conference Board of Canada, RBC, Scotiabank, TD and many more. For 2025, we have 1.8 percent, 2.6 percent, 3 percent, 2.1 percent, 2.8 percent, 1.1 percent, 1.8 percent, 1.9 percent, 2.5 percent, 3.6 percent, 1.8 percent. The average is 2.1.

Oh yes. There is one other projected growth figure that’s a bit of an outlier here. Faced with an average of 2.1 percent, Ken Peacock of the Business Council of British Columbia projects 0.5 percent, clearly out of step with his colleagues.

R. Merrifield: We have an emission reduction model that has an economic model attached to it, for a plan that was and is still touted as an economic plan. I’ll read TD’s forecast, for the minister: forecast modelling that TD has for all the provinces.

For the B.C. numbers that the minister just read out, we’re still an outlier in ’25-26 in our GDP growth. We’re lagging behind the rest of Canada in GDP output. I could read all the numbers for the minister if he wants, but in the interest of time, I will move on to my next question.

With this information that right now not just BCBC but TD and Bank of Montreal are predicting that we will not have the investment into our industry and that we are lagging behind on our economy, can the minister please provide a detailed explanation of how the increased carbon tax and additional emissions caps are not going to deter investment and cap exports, as warned by the experts?

[2:50 p.m.]

Hon. G. Heyman: Once again, the model forecast that was contained in the CleanBC documents is not an economic model. With respect to economic models, however, let me give a bit more information from the forecast council commentary of the B.C. budget.

I will point out that the forecast council had nothing to say about any potential negative impacts of B.C.’s climate plan on the economy. What they did say was that they discussed opportunities and challenges related to transitioning toward clean energy as well as balancing resource development with regulatory controls. Several members highlighted B.C.’s potential for critical mineral mining and LNG supply, and members noted ongoing challenges in B.C.’s forestry sector and the increased frequency and scale of climate events in the province, stressing the importance of climate resilience and adaptation for a strong economy.

Then on to a reference the member made, the BMO report was based on a draft design of the output-based pricing system, not a final design, after we consulted with industry, after we fine-tuned the design, after we found the right balance between maintaining competitiveness and pricing signals for carbon.

As a result of the work we did after the initial design that was the subject of the BMO report, the Mining Association of British Columbia, Teck Resources and Rio Tinto all thanked the government for being responsive to their concerns and for bringing forward an output-based pricing system, a carbon pricing system that retained a clear price signal for carbon, which they said they supported, and also ensuring that competitiveness was maintained and attractiveness of B.C. for investment dollars for mining was also maintained.

R. Merrifield: The minister just read from the forecast, which actually says that industry is going to face strong headwinds in light of the carbon tax increases and the industry caps, etc. The minister acknowledged that there are going to be some headwinds faced because of these CleanBC policies.

My question, though, was: could the minister please provide a detailed explanation of how the increased carbon tax and additional emissions cap will not deter investments and cap exports, as warned by the analysts?

The BMO report let’s disregard. Let’s just talk about the actual forecast, which was done after the OBPS, which was done after the information and was done by not one but many experts.

[2:55 p.m.]

Hon. G. Heyman: Given the timing of forecast council report preparation, the preparation of budget documents and my knowledge of when the final design of the output-based pricing system was released, I am quite confident that the forecast council report was written before the release of the output-based pricing system in its final form.

I’ve already answered the question of how I think it addresses issues of attracting investment and competitiveness, and I’ll simply let Teck, the Mining Association and Rio Tinto speak on their own behalf.

R. Merrifield: Absolutely. As we see mines opening up in the rest of the world, yeah, absolutely.

Given the significant projected GDP reductions in sectors like transportation, heavy industry and fossil fuels, what strategies are being developed to support these industries and their workers?

The Chair: Just a reminder to both members, please, through the Chair.

Interjection.

The Chair: It’s a reminder, Member.

Interjection.

The Chair: Member, there were a few times where it didn’t go through the Chair. It’s a reminder.

Hon. G. Heyman: As I think the member knows, prior to the introduction of the output-based pricing system, we had the CleanBC industrial incentive program and the CleanBC industry fund. The industry fund still exists, and the industry fund is a fund that we utilize to co-capitalize emission reduction technologies or electrification or energy-efficient measures that will lower the emissions profile of a particular industry.

It’s been my experience that in some cases these were projects that particular industries wanted to undertake but simply did not have enough money to do it on their own. So by helping them do it, we reduced emissions, and we reduced the energy costs and the carbon tax cost for those industries.

[3:00 p.m.]

The CIIP program, or CleanBC industrial incentive program, allowed facilities that were able to meet world-leading emissions intensity benchmarks for production in their industry to receive up to 100 percent of the carbon tax over $30 back. The new output-based pricing system supports competitiveness by allowing the use of market-based compliance mechanisms such as verifiable offsets to help incent industry to reduce emissions while having greater access to various abatement options that were available under the old system.

The OBPS itself is designed to provide greater competitiveness support to sectors that produce carbon-intensive goods that involve difficult-to-decarbonize processes. In other words, we set the rate of emissions on which the carbon tax will apply to be responsive to the unique circumstances of particular industries.

That’s one of the reasons that Teck, Rio Tinto and others received our redesigned system quite well. In addition, we have said to industry that we will begin work with them. We have begun discussions with them on what are called cost-containment measures to ensure that particular operations that are facing unique challenges have a different way to get relief in that particular circumstance for as long as that circumstance exists, because the purpose of the tax is not to shut down industry; it’s to incent change.

We want to ensure that it’s fulfilling its purpose, not an unintended and undesirable outcome or consequence.

R. Merrifield: Could the minister just describe what the overall emissions reductions have been with these incentive programs, understanding that the incentive programs are no longer there? It’s the OBPS that’s replaced it this year. That’s not an activated industry support. That’s a previous industry support at this point. Could the minister give me an indication of what the per-year emissions reductions were?

[3:05 p.m.]

Hon. G. Heyman: The CleanBC industrial incentive program 2024 grant amounts will be approximately just under $188 million. That’s 75 percent of the expected amount for the year. The remaining 25 percent will be remitted later in 2024, following a review of 2023 emissions reports and application data.

Total grant amounts from CIIP are $250 million this year. That’s in the wind-up year of the program. But the CleanBC industry fund continues and will continue as part of the output-based pricing system. Previous rounds of emissions performance projects are expected to reduce approximately 8¾ megatonnes of carbon dioxide equivalent cumulatively over a ten-year period. To just give that some perspective, that’s the equivalent of taking 186,000 cars off the road every year.

R. Merrifield: The minister is indicating $250 million in one year spent, but it’s 8.75 megatonnes cumulatively. The total spend…. When the minister says cumulatively, over how many years would that be cumulatively?

Hon. G. Heyman: To be more clear, because I think the member didn’t hear the differentiation — I perhaps didn’t make it clearly enough — the $250 million is carbon tax rebates from the CleanBC industrial incentive program, which is the program that rewards industry for being close to or beating world-leading emission standards. So that is what they got back from their carbon tax. That program is winding up in 2024 and will be replaced by the output-based pricing system.

The 8.7 megatonne cumulative reductions are over a ten-year period.

[3:10 p.m.]

R. Merrifield: Okay. I think I did hear correctly that it’s $250 million. That’s carbon tax that’s collected but then rebated to the companies that are beating their emissions targets and leading industry in terms of emission reductions. The 8.75 megatonnes, cumulatively, was over a ten-year time frame.

Would it be accurate to take that 8.75 and basically divide it by ten to get a per-year, or does the minister have what last year’s reduction was?

Hon. G. Heyman: Unfortunately, dividing 8.75 I think it was by ten is not accurate, because every year is different. Every year’s group of grant proposals is different, and we have been trying to focus on projects that will yield the greatest result or have the most impact in ensuring competitiveness is maintained.

What each grant proponent is required to do is provide an estimate of their ten-year emission reduction profile when they submit the grant, and then that is verified by a third party over time as the project is implemented and time plays out. We cannot give you an exact figure for a particular year.

E. Ross: I want to switch gears here really quick to LNG, specifically liquid natural gas pipelines.

Nisg̱a’a Lisims has created this proposal for the Nisg̱a’a Ksi LNG floating terminal to export liquid natural gas to Asia and other markets, of course. They’re doing it basically to support their treaty, and they’re actually doing pretty good so far. They’ve got legitimate partners in Western LNG, and they’ve got regional support.

The problem is, though, the certificate for the pipeline, which has been renewed at least once, to my understanding, is now in danger of expiring. If it expires, they’ve got to start all over. It takes millions and millions of dollars to get any type of pipeline certificate through the B.C. environmental assessment process, and time is of the essence here for this project.

I’m wondering. Has there been any conversation with your ministry to talk about how we ensure that this pipeline certificate doesn’t expire so that Nisg̱a’a Lisims can get their project off the ground more quickly?

[3:15 p.m.]

Hon. G. Heyman: The reason that the acts — both the old act and the new act, the Environmental Assessment Act — although there are some changes in the timelines, are structured in such a way that a project needs to substantially start by a particular date, notwithstanding the fact that one extension is allowed, is because after a certain period of time, there may have been significant changes to the factors that went into the original permit and the design of conditions.

Now we don’t change things retroactively, but if a project hasn’t started, then all of the factors on which it was assessed and on which the conditions were premised may well have changed.

However, notwithstanding all of that, the easiest way for this pipeline to not have to get an extension is to substantially start. To date, we’ve received no application from the pipeline company for an extension. It leads me to believe they may well be considering a substantial start in order to get past that hurdle.

E. Ross: Yes, I do understand the regulations in that respect. In fact, the Chevron pipeline was…. The certificate was saved because of evidence shown, that provided evidence that said: “Yes, we do have substantial start-up.”

That’s basically what the Nisg̱a’a Nation is asking for, because they came late into the game on an existing project. They didn’t really change the project description, only that the terminal, or at least one of the terminals, would end up in Nisg̱a’a territory as opposed to Prince Rupert.

What the Nisg̱a’a Nation is asking for is at least one more extension now they’re part of the proposal so that they don’t have to spend millions of dollars and maybe years reviewing the work that’s already been done.

I’ve already brought this up once in terms of the Kitselas Geothermal project, when they had basically the same request where the information hadn’t changed. The Kitselas First Nation was asking for an order-in-council so that they wouldn’t have to spend the millions of dollars to redo all the work again.

A lot of First Nations, including First Nations like Kitselas and Nisg̱a’a, have read a lot into government communiqués regarding UNDRIP and a new way of doing business. They’re expecting the government to go above and beyond in terms of what the regulations say because they really, truly believed that UNDRIP was going to promise something better, something above what was already written on paper.

I guess, on behalf of Skeena, I’m asking the minister to consider utilizing every tool in the toolbox to ensure that Nisg̱a’a does get a fair hearing in terms of why that certificate should not expire and basically live up to the principles under UNDRIP.

I do understand the original company’s proposal and the application. I’ve followed it ever since they actually submitted it. But that original company, TC Energy, does not own those entities anymore that actually own that certificate or the application for it. The entity that owned that certificate now is actually Nisg̱a’a and their partner, Western LNG. They’ll be asking on behalf of themselves for some type of consideration to the pipeline certificate so that they can progress on their project that’s already come a long way.

I think this actually speaks to a number of different issues: of course, UNDRIP, as well as some of the rights and title components that we already see in case law, and also to the revenues of B.C. and also to the financing world. Without this key consideration, it’s going to be really difficult for Nisg̱a’a to raise the required investment for them to keep moving ahead.

Is there anything that the minister can provide right now that can say that cabinet or the minister or government overall can step in address this situation as quickly as possible?

[3:20 p.m.]

Hon. G. Heyman: I appreciate the member’s question and advocacy for the region that he represents, as well as for the Nisg̱a’a and, in other circumstances, the Haisla.

I’ve met with a representative of the Nisg̱a’a Nation on more than one occasion, as recently, actually, as last week. They talked about a lot of things, including the particular project, and I was impressed by the thoroughness of the presentation and the work that they’ve done to date.

I was also impressed…. I’m not sure impressed is the right word. I noted that they were well aware of B.C.’s climate plan and were working to fit within it and understanding that climate impacts are important to them as well. They made that point very clearly. They are in regular contact with the environmental assessment office.

If there is an application for an extension or an application for anything else, I will either be the statutory decision-maker or part of an executive council that is considering a request. We just simply don’t have the request at the moment. I am not sure exactly what a request would be or how to judge it or what it entails, and until we actually see it, it’s hard to comment.

R. Merrifield: The minister gave some numbers, prior to my colleague’s questions, of $250 million last year and 8.75 megatonnes cumulatively over ten years. If I just took the $250 million and multiplied it by five instead of ten and asked the question, “What does each of those megatonnes cost us?” we’re looking at about $142 million per megatonne. Is that what the minister would consider a worthwhile investment?

Hon. G. Heyman: Unfortunately, it’s apples and oranges. The 8.75 megatonnes are the result of investments through the CleanBC industry fund. The $250 million are rebates from the industrial incentive program that aren’t directly or even indirectly…. Well, indirectly they may be attached to the megatonne reduction. No, they’re not, actually. They account for emission reductions that have been applied in the past or on an ongoing basis that resulted in proponents getting a rebate of up to all of the carbon tax over $30 a tonne.

The 8.75 megatonne reduction is the result of specific investments from the CleanBC industry fund that is another pot of money entirely.

R. Merrifield: If the minister could give me the 8.75 megatonnes over the ten years, how much was invested from the industry fund?

[3:25 p.m. - 3:30 p.m.]

Hon. G. Heyman: Since the program began in 2019-20, so covering five fiscal years, the amount we’ve spent, to date, from the B.C. government is $217 million. The 8.75 megatonnes would be accounted for in that $217 million. Of course, those reductions are ongoing. They will, of course, rise every year as more projects come online.

I’d also point out that it’s not just the megatonne reduction. For the particular companies that implement the technologies to reduce emissions that are funded by the CleanBC industry fund, they save money, both from energy efficiency measures as well as having to pay a lower carbon tax, because of the measures that have been implemented.

R. Merrifield: So am I to understand the minister correctly that, then, the $217 million would not include their carbon tax reduction as well — the cost of the carbon tax reduction?

Hon. G. Heyman: That’s correct. The rebates from the CleanBC industrial incentive program, which is a recognition of world-leading or approaching world-leading carbon intensity in a particular sector, are not included in that figure.

R. Merrifield: Would the minister have an approximation since 2019-2020 how much on the carbon tax discount would be given to those companies as well?

[3:35 p.m.]

Hon. G. Heyman: So $463 million over the first five years of the program is the number for CleanBC industrial incentive program rebates.

R. Merrifield: Thank you so much, Minister, for that number.

So $463 million plus the $217 million has resulted in the 8.75 megatonnes. No. I’m getting a shaking of the head from the minister. Okay, the minister will clarify for me as soon as he gets to his feet.

When he makes that response, could the minister also talk to me about whether or not he is ending the CleanBC industrial incentive program, which accounts for 6 percent of emissions increased under the CleanBC plan and what is replacing that CIIP for industry?

The Chair: Just a reminder, Members, please go through the Chair. Phrase comments and questions through the Chair, please.

[3:40 p.m.]

Hon. G. Heyman: The 8.75 megatonne reduction was the result of the projects that were funded through the CleanBC industry fund, and the figure I reported for that was $217 million.

The rebates under the CleanBC industrial incentive program recognize emission reductions that presumably took place in order to position a particular operation as at or leading the emissions intensity benchmark for that particular sector. Now, that may have been measures that were taken some time ago or measures that were implemented during the term of the program. It would vary from year to year.

We have replaced not the industry fund, which will continue, but the industrial incentive program with the output-based pricing system, which only taxes industry on emissions above a certain limit or benchmark that’s established for the sector.

R. Merrifield: Could the minister tell me about the OBPS, because it’s not modelled in the CleanBC plan. Obviously, it’s new; it’s just this year. What are the expected emission reductions or increases attributable to the OBPS?

Hon. G. Heyman: First of all, I want to say that although the methodology is different, some of the principles that were embodied in the CleanBC industrial incentive program — i.e., you get a rebate of your carbon tax paid if you are below a certain benchmark…. That principle of the benchmark or limit is embodied in the OBPS, although the methodology is different. In other words, you only get taxed for emissions above a certain benchmark level.

The modelling we have says that under the output-based pricing system, the estimated emission reductions in 2030 are two to 2.4 megatonnes below the reference case baseline. Emission reductions from the output-based pricing system are estimated to be about three-quarters of a megatonne greater in 2030 than what we would have achieved under the old CleanBC industrial incentive program.

Having said that, the output-based pricing system is a system that industry asked us to implement. As the member knows from our previous discussion, we went back and forth with industry in terms of fine-tuning the benchmarks and reached a good place that they recognized and accepted as adopting the two key principles of carbon pricing, one of which is to send an effective price signals to incent people to reduce emissions and, therefore, save money on carbon taxes paid but also to maintain competitiveness so that we’re not reducing emissions by reducing industrial activity.

The Chair: All right, Members. We are going to take a recess and come back after royal assent in the main chamber. We’ll be back here just after 4 p.m. This House stands recessed.

The committee recessed from 3:45 p.m. to 4:25 p.m.

[R. Glumac in the chair.]

The Chair: I am calling the Committee of Supply, Section C, back to order. We’re currently considering the budget estimates of the Ministry of Environment and Climate Change Strategy.

R. Merrifield: Thank you, Minister, for the answer.

That is great news, indeed, that the OBPS is going to result in a 0.75 further reduction. That is phenomenal news.

In the ministry’s analysis, what are the differences in cost, if at all?

[H. Yao in the chair.]

Hon. G. Heyman: The B.C. output-based pricing system will reduce average net carbon cost to industry for the first few years through to 2030, from what operators would have been paying under the current CleanBC industrial incentive program if it continued.

[4:30 p.m.]

R. Merrifield: Could the minister just describe what the estimate is, in absolute terms, of that reduction?

Hon. G. Heyman: Just for clarification, you mean the reduction in carbon tax costs? Yeah.

First of all, I just want to qualify the answer I’m going to give by saying that the cost of the operator under the output-based pricing system is both the cost of the carbon tax paid and the cost of any credits or offsets that they may purchase to reach compliance. The market price of offsets and credits hasn’t really settled yet. We’ll probably have a better idea after the first year.

There’s a bit of an estimate there, but the percent reduction in payments made ranges from somewhere around 50 percent in 2024 to maybe 15 percent by 2030.

R. Merrifield: The $463 million would reduce by about 50 percent? I’m using the number that the minister had given in a previous answer for the amount of carbon tax rebates/credits used as part of the previous system. Did I understand that correctly?

Hon. G. Heyman: Not exactly. The earlier figure was the value of the carbon tax rebates, which were not given to all industries and certainly were not given at 100 percent to all industries. All industries paid the 30-and-under tax. The figures that I’m using are for the cost of carbon tax credits and offsets going forward under the output-based pricing system, so it’s really apples and oranges.

R. Merrifield: Right. I am just asking for clarity because this is a transition year between the two different systems. In previous years the rebates that were given back to industry — that were a cost to the taxpayer — were approximately $463 million. The OBPS will reduce the cost.

Is the minister indicating it will reduce the cost to the industry or reduce the cost to the taxpayer? Meaning that this $463 million — will industry pay more than that but not get it back, or will they just not pay it at all? Is it more or less than that?

If there’s a 50 percent reduction on the cost to the industry, what is the actual figure — approximating, because I understand it’s on a forecast basis for 2024 — that industry will pay in carbon tax?

[4:35 p.m.]

Hon. G. Heyman: First of all, I wouldn’t call the rebates for the carbon tax under CIIP a cost to the taxpayer. What it was, was a setting of the carbon tax in a way that still maintained a price signal but also maintained business competitiveness. That was the principle of CIIP, or the CleanBC industrial incentive program. It’s also the principle behind the output-based pricing system.

So the reduction in cost that I referenced is a reduction in cost to the industries that pay the carbon tax. The ones that are eligible for the output-based pricing system are those that emit 10,000 tonnes per year or over, although we do have a provision to allow people to voluntarily opt in if they’re less than that. There are generally some reporting requirements, so they may or may not be in a position to do that.

But I would add that this is aggregate. It won’t be that for every single operator. That’s an aggregate.

R. Merrifield: All right. Let’s try and further refine here.

The OBPS — does it cover off more or less companies/industries than the CIIP program?

Hon. G. Heyman: There are a couple of odd instances where industries that were covered by CIIP won’t be covered by the output-based pricing system, but generally speaking, it applies to the same industries and the same companies, with the exception I noted that some operators under 10,000 tonnes of emissions may opt in. We don’t know that yet. And if they do, obviously more will be covered than previously.

R. Merrifield: That’s great. So the OBPS. My understanding is that the previous system still operates for one more year, which is 2024, as the OBPS gets up and running this year. If the minister could confirm that, that’d be great. Then also, how does the OBPS align with Canada’s or not?

[4:40 p.m.]

Hon. G. Heyman: Actually, the CleanBC industrial incentive program ends on March 31 of this year, and OBPS takes effect on April 1. The significant difference is that they report at the end of the year and are assessed at the end of the year. So the assessment and the payment will occur one year from now.

On the second part of the question, we were all distracted by a sneeze and didn’t get it. So if you could….

R. Merrifield: Understood. It was a very violent sneeze.

I was asking how the OBPS in B.C. aligns with Canada’s.

Hon. G. Heyman: It’s generally in alignment. Our B.C. output-based pricing system is generally in alignment with the federal output-based pricing system. What’s different, and why we have our own system in B.C., is that we wanted to keep our own industrial incentive, or a CleanBC industry fund, to co-capitalize emission reduction projects. By doing our own system, we were able to keep the ability to do that.

R. Merrifield: Is the funding for the industry fund, then, being funded through OBPS? Maybe I missed that somewhere. My second question on that: what is the revenue, then, for 2025, from the OBPS system?

[4:45 p.m.]

Hon. G. Heyman: There is no direct link between carbon taxes, the OBPS, and the CleanBC industry fund in the way the accounting is done by the Ministry of Finance. But practically speaking, there is a linkage. That’s, generally speaking, how it’s funded.

It’s difficult to answer the question about how much carbon tax will be paid in 2025 by large industry. What I can say is that the aggregate cost of compliance of industry will be in the neighbourhood of $300 million, but we can’t tell how much of that will be carbon tax and how much of it will be the money they spend on offsets and credits. So we can’t disaggregate that without experience.

R. Merrifield: That absolutely makes sense, and I thank the minister for the answer.

In the budget, it does talk about the cumulative revenue from the carbon tax increases, including revenue from the new OBPS, and then it has a number, but it’s hard to pull apart that number from that, and that makes sense. And it will be somewhat…. I mean, it’s a forecast right now, understanding that it’s unknown as to how much will be in offsets and how much will be actually in carbon tax payments, etc. So that absolutely makes sense.

I wanted to move on, if we could, to the emissions cap for oil and gas. When is the cap in place, and has that process already been initiated?

Hon. G. Heyman: When we announced the cap as part of the new energy action framework a little over a year ago — actually, almost exactly a year ago, one year and one day — we indicated that one of our goals was to align with and not duplicate the work of the federal government with their cap. At that point, they hadn’t announced any details. They’ve now announced a framework, and they’re consulting and talking to provinces.

Our intention is to conduct discussions with the federal government. We’re clear we don’t want to duplicate or place a completely unnecessary administrative burden on companies. If, say, the federal government cap completely achieves the goals that we stated were the goals of our cap, then that would apply. If there were some gaps that needed to be filled, we would be looking at what measures in British Columbia would provide the backstop.

We consulted extensively with industry and other stakeholders on that. The federal government has said they intend to implement their cap in 2026.

R. Merrifield: Thank you so much for the answer. That absolutely makes sense.

I appreciate the minister’s attention to not creating multiple levels of the same goals, as it were, and bureaucracy to achieve them.

[4:50 p.m.]

When the OBPS was being put into place, and based on the second…. We heard a lot about the first iteration. Did the minister hear at all that there will be a higher cost for industry overall? I understand from the minister that the first couple of years might be a reduction of costs. But in perpetuity and moving forward, will it cost industry more?

Hon. G. Heyman: Carbon tax, under federal policy — and our policy, which mirrors the federal policy — is to increase up to the year 2030. The projection that I gave earlier about the cost to industry of the OBPS being less than the cost to industry under our previous CleanBC industrial incentive program continued to be less right up to 2030.

R. Merrifield: So the B.C.-led is less than the Canada frame­work? Did I understand correctly? I’m just clarifying.

Hon. G. Heyman: I would say that, generally speaking, the B.C. system is equivalent to the federal system. Equivalency takes a number of forms, but the member’s particular question was about cost to industry, and I would say it’s roughly equal. But there are a number of instances where the cost to industry under the B.C. system will actually be less than it would be under the federal system.

Mining. Not every mine, but most mines are among those. There are a number of reasons for that. One of them is that we allow the output-based pricing system to apply in British Columbia to operations that emit more than 10,000 tonnes of CO2e, and the federal system is 50,000. So between 10,000 and 50,000, they pay the full carbon tax, whereas they don’t in B.C.

R. Merrifield: As carbon tax goes up, is the base still the same? Is it still held, and there’s the opportunity to hold at a certain rate, or under the OBPS, does that escalate as well?

Hon. G. Heyman: I’m not sure I understood the question. If the question is, “Does the carbon tax cost to industry go up every year as the carbon tax goes up every year,” it’s yes, with some caveats. The particular operation may have implemented emission reduction technology that, in fact, places them below a benchmark, in which case they’d earn credits that they can sell. This could be an advantage to them. I’m not sure what the member meant by “the base.”

[4:55 p.m.]

R. Merrifield: The minister had indicated previously that any…. If they operated under certain emissions, based on remarkable emissions standards, they could actually pay zero or, in some cases, earn and be able to sell the credits that they have.

Does that base go up each year as the carbon tax so that they couldn’t…? Can they get down to zero every single year?

Hon. G. Heyman: I think what the member is referring to is the stringency level, which is: does the baseline actually get tighter over time? It increases by 1 percent a year.

R. Merrifield: Thank you so much, Minister, for those answers.

I want to move to a different section of the reference scenarios, just to the building incentives that are located here and the 0.1 of a reduction in megatonnes. That seems very low or minimal, with respect to the emissions impacts within the model. How much of this relates to step code, and how much of this is the conversion of heat pumps, etc.?

This is the reference scenario based on 2015, 2020, 2025, 2030.

Hon. G. Heyman: To the member: is that reference case in a budget document, just so we can look at it directly?

R. Merrifield: Yes. This is from the GHG calculations from CleanBC.

Hon. G. Heyman: Just for clarification, is the member looking at the CleanBC document, the CleanBC Roadmap to 2030 document, or the accountability report?

R. Merrifield: I can get that for you. I had embedded it directly into my questions, but I can answer that question in just a moment. It was from the 2015, 2020, 2025, where it’s all articulated within the years. If I can just have one second, I can try and locate that for you.

[5:00 p.m.]

Hon. G. Heyman: I think we found the document, thanks to the member. The reduction is actually 1.0, not 0.1, megatonnes.

While they’re related, the step code and high-efficiency heating equipment — i.e., heat pumps, in most cases, are somewhat related — we can’t actually disaggregate that at the moment. What we will note is that this is an area in which we’ll see much steeper reductions post 2030.

R. Merrifield: Could the minister explain why there would be steeper reductions post 2030, especially considering that there are more buildings coming online, the population growth, etc.? Why would the minister assume that, after 2030, it would be a steeper decline?

Hon. G. Heyman: The reason I said that we expect steeper emission reductions post 2030…. It’s a couple of reasons. New-builds will be built to the highest efficiency standards with that equipment no later than that. In some jurisdictions, they’re already choosing to move to a higher level of the step code and get there.

The other thing is that we’re just going to see greater market penetration of that equipment, more installers familiar and comfortable with them. Prices will probably go down. It’s a matter of market maturity leading to market penetration, leading to greater uptake of these high-efficiency options.

R. Merrifield: The minister has indicated that after 2030, that will be increased. Does the minister have any predictions or forecasts on that particular item?

Hon. G. Heyman: We don’t have studies or projections.

I indicated that I think the reasons I gave would lead one to believe that the emission reductions will be higher, as will be the uptake of the equipment that leads to that.

The member might want to follow that up with Energy, Mines and Low Carbon Innovation. They administer those programs and may have done, or may be planning to do, some modelling or have access to the modelling from other jurisdictions.

R. Merrifield: Thank you for the answer to the question.

I understand that the specifics of the program might be monitored, but the program is actually inside of CleanBC. It’s a program that was touted as one of the success stories this last year, so I do want to probe further, especially because CleanBC has it articulated. I was just surprised that we wouldn’t see a greater acknowledgment within the emissions predictions or reductions overall.

I do have that link if you want me to send it to you, to the staff there for the actual chart.

Then, also, has the ministry done any work on ascertaining how much the move to a step code 5 level or the transition to heat pumps will actually cost new construction?

[5:05 p.m.]

Hon. G. Heyman: Studies in B.C. have estimated that the average new construction cost increase to meet step 5, which is net-zero energy-ready buildings, for all new construction types is approximately plus 10 percent. Research highlights that the construction cost gap declines over time, as new technologies penetrate the market and builders gain more experience with new building codes.

B.C. studies also show that the cost impact of meeting more stringent energy efficiency requirements is likely lower than a number of other factors that affect construction costs. Academic research on experiences in other jurisdictions indicates that net-zero buildings can be built at cost parity or at a single-digit percentage point cost premium over conventional buildings. Then, of course, once the sources of net-zero energy are in place, the energy costs for the occupants are significantly less.

R. Merrifield: I think that the minister is fairly accurate in terms of…. It’s about 10 percent in terms of the construction cost. That’s pretty much an industry-accepted value, and one to three was the low-hanging fruit. Three to five is the real cost-prohibitive or cost-increasing work.

You look at step code 3, and you’re probably at that $15,000 to $25,000. Then, once you hit step code 5, that’s where you get into the $80,000 to $150,000 per home, which is that 10 percent of a single-family home.

That cost would be reduced though, as an absolute, if you look at multifamily residences. Obviously, anything that’s built stacked ends up being a little bit less in terms of the cost to go to step code 5, not less in the per-square-foot price, however. The percentage can actually increase in multifamily buildings, even though the absolute cost has gone down.

Having said that, though, there have been some great studies out from even the Pembina Institute, where they’ve actually indicated that right now we are not investing enough in the needs for buildings to electrify in B.C. Actually, they assert that, right now, we would be needing to spend approximately $1.6 billion a year to meet the GHG targets that we have.

Would the minister agree with that assessment, or does the minister feel like that would be a lesser amount?

[5:10 p.m.]

Hon. G. Heyman: We have not had a chance to do a critical review of that particular study, and without looking at their methodology, we couldn’t really comment on whether we agree with their conclusion or not.

R. Merrifield: That makes sense. I can provide it to the minister, if he would like, just to confirm or negate. I was looking for something outside of just the housing industry to indicate how much it was going to cost to meet the GHG targets.

If we just use the 10 percent methodology that the minister had indicated earlier, which is accepted by the majority of the construction industry…. Does the minister have an understanding of how much that will cost per year?

Hon. G. Heyman: There are just too many variables to put a figure on it. It would depend on how much housing is built, what the cost of that housing is, and then applying an approximate 10 percent figure to it.

R. Merrifield: For the minister’s benefit, it’s pretty easy to look up what the building permits are worth here in B.C.

If you look at building permits…. I mean, just for 2023, total building permits, on a quarterly basis, were about $31 billion. You can times it by four. You’re looking at about $125 billion a year, in B.C., in building permits. You take 10 percent of that, and that’s the cost of step code 5.

That’s $1.2 billion, which is being transferred to the taxpayers of B.C., to meet that step code 5 target. I guess that’s why I was so surprised that it was only resulting in such a small reduction in the GHG admissions.

I noticed that the minister was giving a time clock earlier there. Are we adjourning right now, or do I get…?

The Chair: You can put your question on the record. We’ll end right after.

R. Merrifield: Okay. My question to the minister is…. At that dollar figure per year…. Is that what we’re expected to pay and result in such a little reduction in our GHG emissions?

The Chair: I’d ask the minister to move the motion.

Hon. G. Heyman: I move that the committee rise, report progress and ask leave to sit again.

Motion approved.

The committee rose at 5:15 p.m.