On March 28, federal Finance Minister Chrystia Freeland presented the 2023 Federal Budget.

High inflation, high-interest rates, and other factors have led to economic forecasts for Canada that are the most negative since the financial crisis of 2007-08. The budget acknowledges that reality through Finance Canada modelling that predicts a possible recession in 2023 at worst and marginal growth at best.

The Liberal government tabled a less expansive budget than usual. However, despite its narrower focus, the budget further increases federal spending.

Most of the new and overall spending is targeted at funding public healthcare, building a green economy, driving “friend-shoring” of strategic industries and supply chains, and providing financial assistance to middle- and low-income Canadians feeling the effects of inflation.

The foundations of the budget – healthcare and green industrial policy – are two areas in which the long-term spending could be transformative but may not be due to implementation challenges. That will bear close monitoring and makes Budget 2023 ripe for revisiting in the coming years.

Of interest to CPA members, the budget continues a narrow path to reducing emissions rather than including all low-emission energy options such as propane. It proposes new investment tax credits, business financing, and targeted investments and programming that the government hopes will spur a Canadian green industrial economy. Those policies include:

• A 15% tax credit for investments in clean electricity infrastructure;
• A 30% tax credit for investments in clean technology manufacturing machinery or for investments to extract, process, or recycle critical minerals;
• Details for the Clean Hydrogen Investment Tax Credit, with support ranging between 15%-40%, depending on project type;
• Expanding the Investment Tax Credit for Carbon Capture Use and Storage to cover more technology types;
• Committing that the Canada Infrastructure Bank will invest at least $20 billion to support clean electricity and clean growth infrastructure projects;
• Extending the 50% reduction of corporate income tax rates for zero-emission technology manufacturers by three years; and
• A new allocation of $500 million over 10 years to the Strategic Innovation Fund.

The CPA will continue to examine the details of the budget to identify possible opportunities for Canada’s propane industry.

The CPA is participating in an industry group that is seeking clarity on the federal government’s implementation of the Clean Fuel Regulations (CFR).

The Industry Steering Committee on Climate and Clean Air, which includes companies from a range of sectors in the fuel and feedstock supply chains is requesting clarification on a number of items, including the timeline for Environment and Climate Change Canada approval of carbon intensity applications and how verification of compliance credits will be completed by approved verifiers by the June 30, 2023 deadline. The committee stresses that industry engagement is necessary to ensure practical guidance and workable solutions are developed for some of the issues members are currently experiencing. Read the letter here.

Members of the CPA BC Committee will be travelling to Victoria on May 1 for the CPA’s first lobby to be held in B.C. The opportunity to meet with provincial decision-makers across the government will help to raise the profile of propane and its many benefits as well as the expanding export market.

Key messaging will focus on propane as an affordable, safe, and clean energy option for communities that may not be connected to the electrical grid or natural gas pipelines. This event follows the successful Propane on the Hill national lobby day held on March 21. Similar events will be held across jurisdictions to ensure propane is included in Canada’s energy transformation and its journey to lower emissions. For more information, please contact Katie Kachur.

The CPA is working with B.C. industry and business associations regarding the province’s new greenhouse gas pricing framework modelled on the federal output-based pricing system. The group is seeking assurance from both the environment and climate change minister and finance minister that full and transparent consultation on the province’s new pricing systems will occur before ministerial decisions are made. Issues to be discussed include matters such as benchmarks, tightening rates, thresholds for protection, offsets, and use of the regulated price as a floor price. Read the letter here.

The Alberta government has announced a $50 million technology fund designed to ‘reshape’ the province’s energy systems. Emissions Reduction Alberta will consider proposals for technologies that focus on energy transport and distribution technology, energy storage, digital solutions for energy management, demonstration of net-zero and net-zero ready buildings, low-emission vehicle infrastructure and fleets, and more. Importantly, the government has not limited the fund to any particular energy carrier and is encouraging integration between systems. This a great opportunity for propane in such areas as providing a reliable and affordable energy source in rural and remote communities, during power failures, and replacing diesel in fleets and school buses.

Successful applicants are eligible for up to $10 million with a minimum request of $250,000. The application deadline is Thursday, June 15, 2023, at 5 p.m.

Order Fixing Fees for Registrations Related to Dangerous Goods Means of Containments (MOCs) was published in the Canada Gazette, Part 1 (CGI) on March 25, 2023, for a 60-day comment period.

The proposed order would introduce fees that would be applicable to:

• operators of container facilities who design, manufacture, requalify, or repair MOCs as well as to design engineers who design standardized MOCs; and
• service providers who review designs of MOCs, inspect MOCs and provide training to companies who conduct MOC activities.

Under this Ministerial fees order, fees would be required for:

1. Initial registrations: for new applicants who want to register with Transport Canada (TC) and obtain a certificate of registration; and
2. Certificate renewals: for existing applicants who want to maintain their certificate of registration with TC. Most certificates are required to be renewed every five (5) years. 

Please provide your comments to Robert Loenhart by May 17, 2023.

The CPA will compile the comments and submit a proposal based on our previous commentary prior to the government’s May 24 deadline.

Environment and Climate Change Canada has announced amendments to schedule 2 of Greenhouse Gas Pollution Pricing Act, Amending the Fuel Charge Regulations and Repealing the Part 1 of the Greenhouse Gas Pollution Pricing Act Regulations (Alberta).

The objectives of the amending regulations are to integrate the Alberta and Ontario output-based pricing systems with the fuel charge, to specify the fuel charge rates in Schedule 2 of the GGPPA to reflect the new carbon price trajectory, to implement measures released for consultation on August 9, 2022, and to incorporate minor technical amendments related to the fuel charge system.

As of April 19, several employees within the Transportation of Dangerous Goods (TDG) Directorate are on strike until further notice. Consequently, there may be delays in some of its services, such as:

• Requests for temporary and equivalency certificates;
• Regulatory questions;
• Regulatory Interpretation;
• Consumers Registration;
• Means of Containment (MOC) Registration;
• Oversight; and
• Other TDG-related requests. 

TDG says that all requests will be addressed as soon as possible.

The CPA will be raising the issue of refilling U.S. DOT cylinders in Canada with Transport Canada. Currently, the onus is being placed on gas pump attendants to determine if a cylinder meets Canadian regulations.

U.S. D.O.T. cylinders can be transported to and used in Canada, including ones that have been requalified. Canada requires a CG-7 pressure relief device to be replaced every 10 years after the date of manufacture. However, the U.S. does not require this regulation, which means that most propane cylinders that have been requalified in the U.S. will not have a new pressure relief device (valve).

Gas attendants in Canada have been taught to visually inspect a cylinder prior to filling and to check the collar if the date of manufacture of the pressure relief device (valve) is within the last 10 years. Issues arise when the requalification date indicates the cylinder has been requalified, but the D.O.T. cylinder’s valve has not been replaced. Identifying the date on the valve can also be a challenge and attendants may have difficulty ascertaining if the valve has been replaced. The onus is then on the pump attendant to determine if the valve “looks” like it has been replaced.

The CPA will be discussing this safety issue at the next General Policy Advisory Council meeting.

The Technical Standards and Safety Authority (TSSA) are seeking nominations for its annual Safety Awards program that recognizes the outstanding contributions of leaders in public safety. Nominations for TSSA’s 2023 Safety Awards are now open. The closing date for submitting nominations is June 2, 2023. The annual awards program is part of the TSSA’s ongoing efforts to promote awareness and encourage best practices to improve safety outcomes. More information can be found in the TSSA’s press release and website. 

The Nova Scotia Safety Branch has announced Eve Webster as the new senior director of compliance for Occupational Health and Safety (OHS) Division of the Safety Branch, beginning April 17, 2023.

Eve joined the Technical Safety Division in 2009 first working in the Elevators and Lifts team, and then taking on project management work for both the Technical Safety Division and the Safety Branch. In 2019, Eve transitioned to the OHS Division as one of the regional directors for the Central Region.