Propane Pulse Newsletter - September 2024

Bill C-59 received royal assent on June 20, 2024. The bill includes a federal investment tax credit for carbon capture, utilization and storage (CCUS) projects and amendments to the federal Competition Act aimed at greenwashing.

Under these provisions, firms cannot represent the benefits of their business activities for protecting or mitigating the environmental and ecological effects of climate change unless based on adequate and proper substantiation in accordance with “internationally recognized methodology”. It remains unclear what this methodology will entail or how the process will unfold, but the burden of proof is on businesses to substantiate any claim.

The Competition Bureau wants to hear a wide range of perspectives and will carefully consider all feedback. Interested parties are invited to provide comments by September 27, 2024. The CPA provided input as part of the consultation process, which is consistent with many other associations. The CPA also participated in a coalition letter with other industry groups. CPA members are encouraged to provide their input. Information on the consultation process can be found here.

Given the risks associated with potential violations of these provisions, many Canadian oil and gas companies have temporarily removed or paused communications about their environmental and sustainability activities and goals from their websites, including investor presentations and ESG and sustainability reports, pending further guidance from the Competition Bureau.

For any questions or to receive a copy of the coalition letter, please contact Katie Kachur (katiekachur@propane.ca)

The CPA wrote to the National Liberal Rural Caucus to emphasize the importance of propane and highlight that Canada’s climate strategy requires a tailored approach. The letter follows the pre-budget submission filed in August with the House of Commons Finance Committee.

In a letter to Rural Caucus Chair Serge Cormier, the CPA stated, “Providing affordable energy in Canada is anything but a one-size-fits-all approach.” The CPA also addressed how propane can help alleviate energy poverty by offering a practical energy choice for Canadians living in rural, Indigenous, and remote communities.

Over the past few months, the CPA has met with MPs, including Housing and Infrastructure Minister Sean Fraser. The CPA has also held discussions with the office of Natural Resources Minister Jonathan Wilkinson. These conversations will continue as the House of Commons resumes.

In July, CPA’s President and CEO Shannon Watt and CPA’s VP of Government Relations for Ontario Chris Crawford attended the Assembly of First Nations Annual General Assembly in Montreal, Que. The event was a great opportunity to meet with chiefs from across Canada to discuss the challenges facing their communities and how propane can provide affordable, lower-emission energy.

The CPA also had the chance to observe resolutions debated and voted on by representatives from First Nations communities. There were speeches from representatives of all three major political parties in Canada, including Ministers Dominic LeBlanc, Arif Virani, and Gary Anandasangaree, Conservative Party Leader Pierre Poilievre, and New Democratic Party Leader Jagmeet Singh.

The provincial Energy Future Initiative (EFI) focuses on B.C.’s energy landscape, emphasizing the need for a comprehensive and integrated energy plan. Its recent review concluded that “B.C.’s growing energy demands are challenging to meet, with the province now relying on significant electricity imports to maintain reliability.”

EFI is calling for a bold, forward-looking energy strategy that ensures reliable and affordable energy to support economic growth and living standards. It stresses that energy policy considerations should extend beyond climate and electricity, encompassing reliability, resilience, and affordability. The CPA supports EFI’s messaging and advocacy.

The Institute offers ten recommendations to address these issues. For more details, watch the Energy Futures Town Hall: Meeting B.C.’s Energy Needs. August 28th 2024 and read the full report here.

As part of the CPA’s advocacy ahead of the provincial election on Oct. 19, the CPA sent a letter to all candidates from all parties, highlighting the important role propane plays across the province. The letter also outlines key concerns and provides recommendations and solutions. The goal is to ensure candidates understand propane’s vital role and position the CPA and its members as solution-oriented regarding the future of energy policy in B.C. For any questions, contact VP Government Relations West, Katie Kachur. 

Chamber of Commerce poll reveals economic concerns from B.C. residents

The B.C. Chamber of Commerce’s recent poll highlights key economic concerns of British Columbians in the upcoming election.

The survey shows that most people believe a strong economy is crucial for funding essential public services like schools and hospitals. However, only 40 per cent think the current government is creating a business-friendly environment. Just 14 per cent believe business opportunities have recently improved, and many think rising regulatory changes are causing businesses to relocate. Voter intentions show the B.C. NDP leading the B.C. Conservative Party, with support varying by region. The Chamber urges the next government to focus on economic growth and investment stability to ensure a thriving province. For the full news release, visit BC Chamber of Commerce Unveils Robust Poll Ahead of October Election.

From May 8 to June 14, 2024, Technical Safety BC sought feedback on planned changes to the 2025 design registration fees, including a 13 per cent fee increase and new cancellation charges. The consultation involved 81 participants, with 58 per cent saying the changes would have little to no impact on their business, while 15 per cent expressed serious concerns. Feedback was mixed, with some participants requesting more explanation for the fee hikes. The final decision will be announced in the coming months, with a 90-day notice before any changes take effect. Read the full report: 2025 Design Registration Fee Consultation: What We Heard.

This summer, FortisBC announced a rebate program for customers looking to upgrade their propane systems for efficiency. FortisBC propane customers are eligible for rebates as outlined in the program requirements here. For more information, including eligibility requirements, please visit here. Note that invoices must be dated on or after July 1, 2024. The CPA is pleased to see this opportunity for Revelstoke customers and will continue to work with FortisBC on potentially expanding the program to include more propane customers across the province. For more information, please contact VP Government Relations West, Katie Kachur.

The CPA participated in the provincial consultation on medium- and heavy-duty (MHD) zero-emission vehicle (ZEV) requirements. On Aug. 23, the Government of B.C. released the following statement:

“The consultation paper proposed that most MHD ZEV requirements would come into effect in 2026. However, to address the policy issues raised by interested parties, the ministry has adjusted timelines to allow more time for research, engagement, and analysis. This means the implementation of MHD ZEV requirements will be delayed beyond the timelines outlined in the consultation paper. Additional research and analysis are underway, and the ministry will provide further updates as this work progresses.”

This is positive for the CPA and its members, as the initial proposals did not include propane as part of the provincial low-emission mandates. The association will continue to advocate for propane as a reliable, affordable, and low-emission option for the transportation sector in B.C. and across the country. To view the CPA 2023 submission, click  here.

In July, Vancouver city council reversed a bylaw that banned the use of natural gas for heating in newly built homes. ABC Coun. Brian Montague, who proposed the motion, said in an interview with CBC’s On The Coast that the change would reduce barriers to building middle-income and multiplex housing and make Vancouver more affordable. The CPA was pleased with this decision and will continue working with coalitions across the province to address and reverse current and proposed natural gas bans in new home builds.

On June 18, 2024, the Ministry of Energy, Mines and Low Carbon Innovation modified the CleanBC Go Electric Passenger Vehicle Rebate vehicle eligibility requirements. The changes took effect immediately. Many vehicles that were previously eligible no longer qualify for a rebate, and applicants currently in the ZEV buying process may not be able to receive one. These changes provide another opportunity to educate customers in B.C. on the benefits of propane and dual-fuel options, especially as financial incentives for EVs are being reduced. For more information on the program changes, please visit this link.

As part of the CPA’s advocacy ahead of the provincial election on Oct. 28, the CPA sent a letter to all candidates from all parties, highlighting the important role propane plays across the province. The letter also outlines key concerns and provides recommendations and solutions. The goal is to ensure candidates understand propane’s vital role and position the CPA and its members as solution-oriented regarding the future of energy policy in Saskatchewan. For any questions, contact VP Government Relations West, Katie Kachur. 

In July, CPA’s VP of Government Relations for Ontario Chris Crawford and CPA member Ken Fotty with Superior Propane attended the Keystone Agricultural Producers Golf Tournament. The event provided an opportunity to meet with stakeholders from the agricultural sector in Manitoba, as well as Members of the Legislative Assembly of Manitoba, including Wayne Ewasko, interim leader of the Official Opposition.

In August, CPA’s VP of Government Relations for Ontario Chris Crawford and CPA member Gary Froese with Re-Tank Expert met with Ontario’s new Associate Minister of Energy-Intensive Industries, Sam Oosterhoff. The meeting provided an opportunity for the CPA to discuss the importance of propane in Ontario’s energy mix, particularly for rural and remote communities without access to natural gas.

The discussion also covered the CPA’s recommendations for the Fall Economic Statement, which will be submitted to the provincial government next month. These recommendations include propane and renewable propane in off-oil programs, eliminating or reducing the 4.3 cents per litre fuel tax on auto propane, replacing gasoline and diesel school buses with propane, and encouraging the development of biofuels in Canada.

The CPA looks forward to working with Associate Minister Oosterhoff to ensure propane remains part of Ontario’s energy mix.

The CPA has reached out to the Atlantic Conservative Caucus, through its chair John Williamson, to highlight the unique challenges Atlantic Canadians face regarding home energy and the lack of affordable energy options.

Unlike other regions of Canada, natural gas is not widely available in Atlantic Canada. As a result, Atlantic Canadians experience the highest levels of energy poverty in the country.

Statistics Canada reported that “The 2021 Census showed that 822,000 households in Canada (5.6%) were energy poor, and this was more prevalent in the Atlantic provinces (ranging from 10.7% to 13.7%).”

The CPA will continue to address the issue of energy affordability in meetings on Parliament Hill this fall, including promoting propane benefits.

Over the past few months, the CPA has held several meetings in Nova Scotia and Newfoundland and Labrador to advocate for replacing high-carbon and high-priced oil and diesel with propane.

In Nova Scotia, the CPA has met with senior officials in Premier Tim Houston’s office and held discussions with Deputy Premier and Minister of Finance Allan MacMaster, Natural Resources and Renewables Minister Tory Rushton, as well as officials in the offices of both the Minister of Environment and the Minister of Natural Resources and Renewables. The discussions focused on retrofitting oil furnaces with propane systems and using propane as a dual fuel with heat pumps.

The CPA also met with Senior Program Manager Sanjeev Pushkarna at Nova Scotia Power to discuss how propane can support electric heat pumps. This led to a meeting with Sven Scholtysik, director of research at Net Zero Atlantic, where both parties agreed to explore the propane industry’s role in research to address gaps in reaching net-zero targets.

In Newfoundland and Labrador, the CPA has been in contact with officials from the Department of Transportation. These officials are interested in examining the economics of propane school buses compared to diesel buses. In P.E.I, it has been reported that the delivery of 207 electric school buses has been delayed, leading the province to purchase 30 diesel buses as a temporary measure. The CPA will reach out to the P.E.I government to continue discussions about the advantages of propane school buses.

With the New Brunswick election scheduled for October 21, the CPA will write to the leaders of the major parties to highlight the economic and environmental benefits of propane.

You can find the new updated regional profile sheets on the CPA website under Member area or Media & Resources. These profiles can be printed as a single double-sided sheet for a great leave-behind after meeting with your government representative.

The CPA’s fall marketing campaign is centered around promoting propane school buses, aligning with back-to-school season and the upcoming National Bus Safety Awareness Week in mid-October. The campaign highlights the environmental and cost-saving benefits of propane-powered buses, emphasizing their safety and reliability.

In addition, the CPA is showcasing its updated regional profile sheets, with different regions highlighted every month along with reinforcing messaging on the propane advantage.  Follow and repost us on social media to help us spread the word: LinkedIn, Facebook and Instagram.