Prime Minister Mark Carney has launched the Build Communities Strong Fund, a $51-billion, 10-year program to support infrastructure projects across Canada. The first round includes 13 projects, with an initial $300 million in funding focused on housing-enabling infrastructure, community facilities, and support for rural, Northern, and Indigenous communities.

The program also places a strong emphasis on the use of Red Seal trades and unionized labour, while encouraging greater participation from domestic workers and business owners in building and strengthening communities.

What it means for propane
While not energy-specific, the fund could benefit propane sector members in several ways:

• Increased housing development, particularly in off-grid areas where propane is a key energy source
• Expanded investment in rural and Indigenous communities, creating opportunities for propane to meet local energy needs
• Greater construction activity, driving demand for propane in job site heating and equipment

The focus on skilled trades and domestic participation may also be of interest to members on the manufacturing side, as well as those involved in projects supporting housing and infrastructure development.

Following Ontario’s move in 2025 to eliminate the tax on auto propane, the CPA has continued to engage with the Ministries of Finance for Saskatchewan, Alberta and BC on reducing or eliminating their provincial motor fuel taxes. The Q1 jurisdictional submissions can be found here: British Columbia, Alberta and Saskatchewan. For questions, contact VP, Government Relations, West Katie Kachur.

The Government of British Columbia has introduced amendments to its zero-emission vehicle (ZEV) legislation, lowering the 2035 sales target from 100% to 75% and removing the planned requirement to end new internal combustion engine vehicle sales by that year. The province will also remove the 2026 and 2030 targets from legislation.

Current expectations are that the 26% ZEV sales requirement will remain in place for 2026–2027, with targets for 2028–2030 to be aligned with forthcoming federal emissions standards anticipated in summer 2026.

The CPA supports this approach and will continue working with the provincial government to ensure policies remain practical and equitable for all British Columbians. For more information, contact VP Government Relations, West Katie Kachur.

On March 31, 2026, the CPA hosted a reception at Queen’s Park for MPPs and staff from all parties. The event provided an opportunity to raise awareness of the propane industry and recognize the ongoing support shown by elected officials across the political spectrum in recent years.

Representatives from the Ontario PC Party, Ontario NDP and the Liberal Party of Ontario shared remarks during the reception.

Thank you to the CPA members who attended. We look forward to continuing our work with MPPs to ensure propane remains a reliable and important part of Ontario’s energy mix. For more information, contact VP Government Relations, Ontario & Manitoba Chris Crawford.

Over the past month, the CPA has met with several MPPs to discuss opportunities to reduce regulatory burden for the propane industry. Meetings were held with:

• MPP Laurie Scott, Haliburton–Kawartha Lakes–Brock
• Office of MPP Tyler Allsopp, Bay of Quinte
• MPP Joseph Racinsky, Wellington–Halton Hills
• Associate Minister Sam Oosterhoff, MPP for Niagara West

During these discussions, the CPA outlined two key recommendations to support a more effective regulatory framework for propane operations:

• Amend the Highway Traffic Act to include propane bulk trucks among exemptions from seasonal load restrictions, ensuring uninterrupted access to customers during critical periods.
• Provide temporary relief from Hours of Service regulations, where appropriate, to maintain safe and reliable propane delivery during peak demand or emergency situations.

The CPA looks forward to continued engagement with MPPs to advance these priorities and support a more efficient business environment across the province. For more information, contact VP Government Relations, Ontario & Manitoba Chris Crawford.

On April 20–21, the CPA joined industry partners and Saskatchewan members in Regina for a series of strategic engagements to highlight propane’s role in the province’s energy system.

A key event was the second annual Energy Reception at the Saskatchewan Legislature, co-hosted with Enserva, CAOEC, and EPAC. The event convened provincial ministers, MLAs, senior staff, and industry leaders, providing an important opportunity to strengthen relationships and reinforce shared priorities around energy development, affordability, and reliability.

CPA representatives also participated in targeted meetings with the Technical Safety Authority of Saskatchewan, focusing on regulatory processes, as well as with the Saskatchewan NDP caucus and Saskatchewan Energy Caucus, hosted by the Minister of Energy & Resources Chris Beaudry. The CPA and members highlighted propane’s role in supporting rural and remote communities, economic activity, and energy security. For questions contact Katie Kachur.

Saskatchewan’s 2026–27 budget maintains a stable, affordability-focused approach, with no new taxes or policies directly impacting the propane sector.

Rising electricity rates and continued pressure on grid infrastructure improve propane’s competitiveness, particularly in rural and off-grid applications. Ongoing support for agriculture, infrastructure and resource sectors is expected to sustain steady demand across key propane markets. For more information, contact VP Government Relations, West Katie Kachur.

Discussions at the Smart Energy Conference in Halifax highlighted the growing need for practical, reliable energy solutions as electricity costs rise and pressure on the grid increases.

Allan Murphy, Senior Vice-President, Government Relations, attended the conference and met with officials from Nova Scotia’s new Independent Energy System Operator to discuss how industry expertise can help inform the design of hybrid programs.

Hybrid heating gains traction
While much of the conference’s focus was on wind, solar and battery storage, there was clear recognition that traditional fuels such as propane and natural gas continue to play an important role—particularly as part of hybrid approaches.

In the session Hybrid Heating for Atlantic Canadian Homes: Balancing Efficiency, Affordability & Winter Reliability, panelists emphasized the value of combining high-efficiency heat pumps with supplemental fuels. Hybrid systems were identified as a practical way to reduce emissions, manage peak electricity demand, and maintain affordability and comfort during extreme winter conditions.

This approach aligns with the CPA’s Low Emission Energy Retrofit Program, which has been advanced with governments across Canada.

Growing demand from data centres
The conference also highlighted growing energy demands from data centres, which are expanding rapidly across North America. While these facilities bring investment and jobs, they also place increasing pressure on electricity systems and local infrastructure.

Professor Francis Syms of Humber College discussed the continued reliance on diesel for backup power generation and the associated environmental impacts, including nitrogen oxides and particulate matter. Propane was identified as a lower-emission alternative that can provide reliable backup power while reducing these impacts.

Expanding the use of propane in hybrid heating and as a replacement for diesel in backup generation will continue to be advanced through the CPA’s engagement with governments, including upcoming federal budget recommendations. For more information, contact Allan Murphy.

The Government of Yukon has announced significant changes to its Clean Energy Program, citing increasing strain on the territory’s electricity grid and limited energy diversity.

As part of the update, rebates for electric vehicles, chargers and e-bikes are being eliminated, with funding redirected toward solutions that help reduce pressure on the grid, including propane. New incentives will support homeowners in adopting alternative heating systems, such as propane and oil furnaces and hot water systems.

The changes follow concerns that aggressive electrification targets under the 2022 Clean Energy Act were contributing to peak demand risks, including near outages during periods of high use.

The announcement can be found here: Yukon government takes steps to address energy needs | Yukon.ca. For more information, contact Katie Kachur.

The Yukon 2026–27 budget maintains a strong focus on carbon pricing, with significant rebate flows, creating an opportunity to advocate for fair inclusion of propane as a lower-emission fuel.

Energy policy remains active, with a focus on petroleum management and grid stability—areas where propane can support reliability, particularly in remote and backup applications. Continued investment in natural resources and economic development may also drive increased demand for propane in industrial and community energy use.

With no explicit fuel-specific policies included, there is a clear opportunity for continued engagement to help shape future approaches to rural energy affordability and emissions reduction. For more information, contact Katie Kachur.

Canada’s Energy Future 2026 identifies how evolving climate policies—including carbon pricing and lower carbon fuel requirements—are reshaping the energy landscape.

The report underscores the importance of energy security and reliability, particularly as electrification increases, and highlights ongoing challenges in remote and Indigenous communities, including high costs and infrastructure gaps. These conditions reinforce the role propane can play as a flexible, reliable energy option, especially for backup and off-grid use.

To read the full report, visit: CER – Canada’s Energy Future 2026: Energy Supply and Demand Projections to 2050.