Propane Pulse Newsletter - January 2024

The CPA has been working with the B.C. government to shape the Low Carbon Fuel Standards (LCFS) in a way that more accurately reflects the propane system across the province. While many challenges remain regarding the current regulation, the CPA was encouraged to see that the government referenced the 2022 CPA Life Cycle Analysis Study in their recent analysis for propane carbon intensity (CI). The results of the study indicate that the CI for propane in western Canada should be 73 gCO2e/MJ. Currently the BC LCFS has a CI for propane of 79.87 gCO2e/MJ which places propane retailers (for transportation uses only) in a debt scenario, as opposed to credit opportunities.  

The Low Carbon Fuels Regulation under the Low Carbon Fuels Act became effective January 1, 2024. The new regulation contains similar provisions to the current regulation with some notable new requirements, including: 

• Renewable and low-carbon jet fuel requirements; 
• Prescribed specific non-transportation fuel end uses; 
• New provisions for determining discretionary penalties and updated maximum penalties; 
• A supplier exemption threshold for jet fuel until 2028 and; 
• A volumetric exclusion for electricity   

The CPA will be providing a “how to” guide on navigating the LCFS for the BC Committee to meet reporting timelines (compliance period is January 1-March 31). For questions, please contact VP Government Relations, West, Katie Kachur. 

Informative documents 

• LCF_General_Regulation_2023.pdf 
• How the LCFS works (gov.bc.ca)  (Recent session on background information) 
• CPA LCA report: GHG emissions intensity of propane produced in Canada  

The CPA played a key role at the Natural Resources Forum, held annually in Prince George, B.C. CPA’s President & CEO Shannon Watt participated in a panel discussing sustainable energy solutions, alongside senior representatives from LNG Canada, FortisBC and ARC Resources. The CPA met with dozens of local, provincial, federal and Indigenous stakeholders throughout the three-day event, highlighting propane’s role in the province, particularly in rural and remote communities in northern B.C.  

Watt and VP Government Relations, West Katie Kachur heard from important government officials such as Premier Eby, Minister Osbourne, Minister Cullen, Minister Ralston, Minster Heyman, BC United leader Kevin Falcon, Chief Crystal Smith, FN LNG CEO Karen Ogen-Toews and Federal Minister David Wilkinson. Watt also participated in an interview with a local radio station as part of the advocacy activities.  

CPA members in attendance included AltaGas, Ovintiv, Parkland, Pembina Pipelines, Superior Propane and Tourmaline. The CPA encourages all CPA members active in B.C. to attend the 2025 event as a key advocacy opportunity. Please contact Katie Kachur for further details.  

The CPA presented to the Standing Committee on Social and Economic Development regarding Bill 3 (The Fuel Tax Amendment Act). Chris Crawford, Vice-President, Government Relations, Ontario and Manitoba, requested an amendment to Bill 3 to include propane in the list of fuels that would receive a fuel taxholiday. Propane was not added to the list of fuels in the Bill; however, the CPA looks forward to continuing its positive collaboration with the Manitoba government.   

In early December 2023, the CPA had two productive meetings in Toronto to discuss Line 5 and the CPA’s budget submission to the Ontario government.  

CPA President and CEO Shannon Watt and VP Government Relations, Ontario and Manitoba, Chris Crawford met with the new United States Consul General for Toronto, Baxter Hunt. They highlighted the importance of Line 5 to Canada’s propane industry in addition to the association’s collaboration with the U.S.’s Propane Education and Research Council and the National Propane Gas Association.   

The second meeting occured with the Minister of Finance’s Office at Queen’s Park. Shannon and Chris were joined by CPA board member James Callow. The meeting focused on the CPA’s 2024 Ontario Pre- Budget Submission which included three recommendations: the Rural Propane Retrofit Program that calls for moving Ontarians from high-emission and expensive oil to propane; the elimination of the fuel tax on auto propane; and encouraging the province to invest in biofuels to help Canada reach its target of net-zero by 2050.  

The CPA has filed its pre-budget submissions in Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador. 

The submissions focus on recommendations that will ensure affordability and reduce emissions in the home heating and transportation sectors for Atlantic Canadians, demonstrating how propane can enhance low-emission programming already in place while providing energy choice.  

The submissions outline that there are many economic and environmental advantages the expanded use of propane can provide to Atlantic Canadians, especially at a time when there is an urgent need for affordable, dependable, and low-emission energy.  

In its rush to electrification, the federal government has ignored low-emission programs that could feature propane and immediately reduce GHGs. The CPA has proposed the Low Emission Energy Retrofit Program (LEERP) which would complement the energy transitions already underway. It would provide funding for home energy retrofits away from oil to propane that would reduce energy costs and GHGs. 

In transportation, the CPA is recommending that Atlantic Canadian governments prioritize the procurement of low-emission propane school buses which would reduce operation costs and practically eliminate exposure to harmful toxins.  

Provincial budgets are expected to be announced in late winter or early spring. 

The Canadian Propane Association (CPA) routinely provides letters and submissions addressing government consultations and various public policy matters. View our latest here:  

• CPA comments on the Clean Fuel Regulations pre-publication – updated carbon intensity of natural gas and propane.  
• CPA congratulates N.W.T. Premier Simpson 

The CPA is proud to honour the trailblazers, visionaries, and champions who drive the ongoing success of the propane industry. It’s time to shine a spotlight on those exceptional individuals and companies whose unwavering commitment and dedication, drive our industry to greater heights.  

These prestigious biennial awards will be presented at the signature CPA Gala Dinner taking place on Wednesday, May 15, 2024, in Ottawa, ON as part of the CPA Leadership Summit, which brings together leaders and innovators from across the propane industry.  

The CPA invites nominations for outstanding individuals and companies across various categories. Whether you wish to nominate your achievements or recognize the exceptional endeavours of others, this is your chance to elevate the best in our industry. The categories for nominations include: 

• The Lifetime Industry Achievement Award recognizes an individual who has made significant or consistent outstanding contributions to the advancement of the Canadian propane industry. This individual is regarded as possessing integrity, honesty and the respect of his or her peers. 
• The Health & Safety Award is given to a company or individual in the propane industry who demonstrates a successfully implemented new program or an improvement in an existing program to promote, support and enhance a healthy and safe workplace environment. 
• The Innovation Award supports exceptional work executed inside or outside of the CPA membership that contributes to the advancement of the propane industry. Up to four awards may be awarded. 
• The PTI Training Award acknowledges a Propane Training Institute trainer who achieves excellence in the classroom. This individual contributes to the promotion and understanding of the propane industry through training.

Nomination documents must be received by the CPA no later than March 8, 2024.

Click on the awards above to download nomination forms or visit the Awards section on the CPA website.   

For sponsorship opportunities, contact Sherri Clair at sherriclair@propane.ca