Summary#
The Fair Evaluation of Energy Efficiency Act would change how Nova Scotia evaluates energy-saving programs. It would require decision-makers to consider greenhouse gas pollution costs and savings from replacing fossil-fuel heating or other energy uses with electricity. It would also require a new review by the Nova Scotia Energy Board and a new or updated demand-side management agreement.
- The definition of demand-side management (programs that reduce or shift energy use) would include the social cost of greenhouse gas emissions.
- Evaluations would consider total household energy costs, not only electricity costs.
- Strategic electrification programs could qualify when they replace fossil-fuel energy use and lower total household energy costs.
- The Energy Board would have to hold a new proceeding within 18 months after the bill starts.
- Nova Scotia Power and the relevant electricity franchise holder would have to create or update their demand-side management agreement within the same 18-month period.
- The bill is at first reading. It has not become law.
What it means for you#
- Households: Energy-efficiency programs could be assessed based on combined electricity and non-electricity costs, such as the cost of replacing fossil-fuel energy use with electricity. The bill does not guarantee that any particular program, rebate, or rate will be created.
- Electricity customers: Nova Scotia Power’s demand-side management plans could change after the Energy Board’s proceeding and the updated agreement.
- People using fossil fuels for heating or other energy needs: Programs that support switching to electricity could receive more favourable consideration if they reduce total household energy costs.
- Nova Scotia Power and the franchise holder: They would have to negotiate a new agreement or revise an existing one to reflect the new definition.
- Energy Board: The Board would have to reassess cost-effective demand-side management rather than relying only on earlier proceedings.
- Timing: The bill sets an 18-month deadline after it comes into force. It does not set a date for the bill to become law.
Expenses#
The bill may create administrative and review costs, but no estimate is available.
- The Energy Board would need to conduct a new proceeding.
- Nova Scotia Power and the franchise holder would need to prepare or revise an agreement.
- Energy-efficiency or electrification programs approved after the review could require spending by utilities, customers, or governments.
- The bill does not set a new tax, fee, fine, rebate, or funding amount.
- It is unclear whether the changes would increase or reduce electricity rates, household energy costs, or public spending.
- No publicly available information identifies the total cost of implementing the bill.
Proponents' View#
- The bill appears intended to make energy-efficiency decisions reflect the full cost of energy use, rather than looking only at electricity costs.
- Including the social cost of greenhouse gas emissions could give greater weight to programs that reduce climate pollution.
- Considering total household energy costs could help identify projects that cost more on the electricity bill but save money by reducing the use of fossil fuels.
- A new Energy Board proceeding could update demand-side management decisions using the bill’s broader definition.
- Strategic electrification could be seen as a way to reduce fossil-fuel use while lowering overall household energy costs, where those savings occur.
Opponents' View#
- One concern is that the bill could increase spending on energy-efficiency or electrification programs, although the bill does not provide a cost estimate.
- It is unclear how the social cost of greenhouse gas emissions would affect the ranking and approval of specific programs.
- The bill relies on the federal government’s calculation of that social cost. Changes to that calculation could affect future decisions.
- The bill does not identify which electrification programs would qualify or how savings in non-electric energy costs would be measured.
- A new proceeding and agreement could take administrative time and may lead to changes in utility plans or customer costs.
- The bill does not guarantee that households will see lower total energy costs. Actual results would depend on the programs approved and their implementation.