When a fossil fuel pipeline winds through city parks, under roadways and stretches across public land, most provinces require companies to pay millions in fees to municipalities — but not Ontario.
On Monday, the Ontario Green Party introduced a bill to end this “free ride” for fossil fuel companies, including giants like Enbridge, that don’t pay a cent for pipeline access and leave taxpayers to subsidize their oil and gas infrastructure.
The party is proposing the “No Free Ride for Fossil Fuels Act” to give Ontario municipalities the power to charge oil and gas providers for using public land.
Green Party Leader Mike Schreiner told Canada’s National Observer that, if passed, the legislation would align Ontario policies with those of other provinces, such as Alberta, Saskatchewan, Nova Scotia and B.C. The change would allow cities and towns to use the fee revenue to fund vital services like affordable housing and building climate-resilient infrastructure.
“I think most people don't realize that we're giving fossil fuel companies like Enbridge a complete free ride in Ontario,” Schreiner said. “And I think if people knew about this, they would be outraged.”
Schreiner said Ontario Premier Doug Ford’s close ties to fossil fuel companies like Enbridge have led him to prioritize corporate interests over the well-being of Ontarians. As a result, climate-related impacts harm communities, threaten public health and increase the cost of living, he added.
“[Ford] has repeatedly put corporations like Enbridge before the people of this province. His actions are fuelling climate chaos, hurting our communities and driving up the cost of living,” Schreiner said.
Schreiner pointed to legislation introduced earlier this year by the Ford government, including the Keeping Energy Costs Down Act, which overrides decisions by the Ontario Energy Board (OEB) that would have limited Enbridge’s funding for gas expansions.
In an email response, Isha Chaudhuri, spokesperson for the Ontario Minister of Energy and Electrification, pivoted to issues of affordability.
“Instead of making life more difficult on families, we are taking a different approach by lowering costs, eliminating the carbon tax, and using non-emitting nuclear technology to reduce emissions,” Chaudhuri said.
Toronto is also considering an end to a multimillion-dollar fossil fuel subsidy that allows Enbridge to use the municipality's underground infrastructure without paying fees.
“We subsidize fossil fuels in so many ways, but we have to stop," said Keith Brooks, programs director at Environmental Defence. “The good news is that we really don't need gas to heat our homes anymore — heat pumps do a better job for lower costs and are far better from a climate perspective.”
Brooks noted that municipalities are facing fiscal challenges, so eliminating the subsidy could help fund essential services and programs.
Tyler Rouse, a pathologist and member of the Canadian Association of Physicians for the Environment (CAPE), says it is clear fossil fuel companies should not be subsidized by governments, including free use of municipal land.
“We think that governments at all levels should be taking measures to phase out fossil fuel use and transition to cleaner forms of energy to protect people's health,” he said.
Rouse noted that air pollution from fossil fuel use causes significant illness and death, with Health Canada estimating the costs at $120 billion per year.
“I believe any action that encourages companies to invest in alternatives is important, whether at the municipal or provincial level,” he said.
Comments
If I'm not mistaken, a gas pipeline runs right through a subway station in the north part of Toronto.
And we've got a nuclear goods facility within a kilometer or so of downtown downtown.
I guess if we taxed 'em, it'd have to be a budget line item ... and then the residents would come to know.
Maybe the taxes collected could be used to pay for heat pumps ... starting with gas customers who can't afford them, rather than simply subsidizing the well-heeled in transferring over to less costly energy forms.