Guelph city council is calling on the provincial government to allow municipalities to collect new fees from Enbridge gas and other fossil fuel providers.
In a motion approved Tuesday evening, council is asking for amendments to the Municipal Act which would allow municipalities to charge for-profit gas utility companies “fair fees” for the use of public lands, such as the installation of delivery pipes below roads – something done in other provinces.
“It might not be perfect here, but it’s more of like a statement that’s being made,” said Mayor Cam Guthrie, who referred to himself as “a big free-market guy” and a “libertarian-type” of person in most cases. “We have got to start moving things off of the fossil fuels.”
A 20-year agreement between Enbridge and the City of Guelph allowing the use of municipal easements is set to expire next spring. With existing legislation as its guide, city staff recommended the contract be renewed largely as-is, but that was rejected by council during a committee of the whole meeting earlier this month.
Council renewed its call for new fees on Tuesday.
The motion, which was split into several pieces that received varying levels of support but were each approved by a majority of council, direct city staff to negotiate new fees from the utility company in line with what other jurisdictions in Canada charge, as well as have it pay for relocating lines when there’s conflict with city infrastructure, without passing the cost on to customers.
However, provincial legislation currently prohibits cities from charging gas companies to run their delivery pipes below municipal roads and rights of way.
City council also wants utility companies to be held responsible for the cost of removing abandoned infrastructure, which they currently are not.
“These clauses are aspirational. I think we all recognize that,” said Coun. Leanne Caron, who put the motion forward. “Change is coming. It has to.”
Ahead of council’s vote, representatives from Enbridge urged council to stick with the status quo arrangement, noting it contributes about $1 million in annual property taxes to the city for its underground infrastructure and invests in renewable energy projects.
“It’s great public relations for them. … It’s a feel-good, warm and fuzzy thing that they’re offering to customers,” Evan Ferrari of eMERGE Sustainable Guelph told council of Enbridge’s renewable energy investments, which he said account for a “very small amount” of its total capital spending.
“Frankly, their business is burning stuff and I don’t see that ending in the foreseeable future.”
Like Ferrari, numerous other delegates urged council to seek change.
“The climate crisis is a major problem that affects my generation,” said Henry Moran of Youth Climate Anxiety and Action. “When I grow up, I don’t want to have to worry about whether the air I’m breathing, the water I’m drinking or the food I’m making is clean enough, but I might have to.”
Based on municipal fees collected in other provinces, council heard Guelph could see $8.8 million in additional revenue from Enbridge. Several speakers suggested those funds would put a significant dent in $15 million in planned cuts at the city, including climate change initiatives.
