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In a bold move to prioritize community needs over fossil fuel profits, Ontario’s Green Party leader Mike Schreiner has introduced the “No Free Ride for Fossil Fuels Act.” This legislation, announced at Queen’s Park, seeks to empower municipalities to charge natural gas companies, like Enbridge, for the use of public land.
This initiative is not just about revenue; it’s a call for accountability from corporations that benefit from public resources without contributing back.
Why municipalities need this legislation
Currently, most provinces in Canada have mechanisms in place to charge gas companies for public land use, but Ontario has lagged behind.
Schreiner emphasized that this bill is crucial for municipalities that are left without the financial means to invest in essential services. “This is about putting people before oil and gas profits,” he stated, highlighting the need for a fairer system that allows cities to generate revenue from companies that utilize their land.
Potential impact on local communities
Local leaders, like Guelph councillor Leanne Caron, have voiced strong support for this initiative. Caron pointed out that gas companies currently use public lands for distribution without compensating municipalities. She argued that charging these companies could provide much-needed funds for climate initiatives, affordable housing, and transitioning to renewable energy sources.
“We need this revenue to invest in climate mitigation and support the energy transition away from dependence on fossil fuels,” Caron asserted.
Financial benefits for municipalities
Schreiner’s proposal could significantly impact local economies. By implementing a fee structure similar to that of Edmonton, Guelph could potentially raise an additional $8.5 million in revenue.
This influx of funds could be directed towards city services, helping to keep property taxes low while enhancing community infrastructure. “If we use the same formula as Edmonton does, the City of Guelph could raise an additional $8.5 million in revenue that could help us fund city services and keep property taxes down,” Schreiner explained.
Next steps for the legislation
The Ontario Energy Board is currently reviewing evidence related to the renewal of Enbridge’s natural gas franchise agreement, which could be influenced by this new bill. As Guelph renegotiates its 20-year lease with Enbridge, the outcome of this legislation could play a pivotal role in shaping future agreements. “Re-tabling this bill is an important step,” Schreiner remarked, urging the province to lift the ban on municipalities charging fossil fuel companies. “Let’s stop preventing municipalities from charging fossil fuel companies from paying their fair share. I think that’s an important message to send.”
