THE LEADING VOICE FOR THE PROPANE INDUSTRY IN CANADA.


December 2023 

Please note that the CPA and PTI offices will be closed from Monday, December 25, 2023, and will reopen on Wednesday, January 3, 2024.

Significant win for industry: Feds looking to reduce propane carbon intensity to 70.08 g/CO2e!

After several years of the CPA working with governments to lower the carbon intensity (CI) of propane as per our market analysis undertaken in 2022, the federal government is proposing to lower the CI for propane to 70.08 g/CO2e from 75.33 g/CO2e. This win for the industry means that members have more time to generate credits (and not pay the federal fuel tax) under the Clean Fuel Regulations.

Under this new modelling, the proposed CI for natural gas has also been reduced, down to 60.40 g/CO2e from 67.78 g/CO2e. More details on this approach are available in the Fuel LCA Model Methodology.

This pre-publication of the proposed changes to the CI of propane and natural gas will be in the next formal publication in June 2024.

Stakeholders are invited to review this pre-publication and provide comments to ECCC within 30 days following the pre-publication at modeleacvcarburant-fuellcamodel@ec.gc.ca. Please indicate the following in the subject line: Comments on the pre-publication: Updated carbon intensity of natural gas and propane. The CPA will be submitting comments.

Are you a trainee? Log in to your dashboard

Advocacy

Congratulations CPA members! Outstanding participation in advocacy campaign to save C-234

Close to 2,000 members wrote to Senators in support of farmers and advocated for the passing of Bill C-234 into law. While the vote did not swing in our favour and the bill’s progression faces a delay indefinitely (details in the full story below), the propane industry made its voice heard loud and clear in Ottawa. Thank you for standing up for farmers and helping us in the campaign to save Bill C-234! 

Propane exemption bill for farmers will be delayed indefinitely

Sponsored by Ontario MP Ben Lobb, Private Member’s Bill C-234 faces delay, possibly indefinitely, due to a recent vote on the bill in the Senate. 

The Bill that was passed in its original form by the House of Commons and at the Senate Agriculture and Forestry Committee was amended at Third Reading in the Senate. The amendment changes the Bill which means the House of Commons will need to review the amendments and send the bill back to the Senate where it must be voted upon. 

The challenge for supporters of the bill such as Canada’s farmers and the CPA is that the timing of such a review by the House is unclear. A private member’s bill is not a government-sponsored bill and the path for any review of a bill sent back to the House by the Senate is subject to being scheduled on the agenda of the House. Since the agenda is controlled by the government which does not support C-234, many are worried that C-234 may not be called at all. 

The CPA will continue to work with farmers and agriculture groups to advocate for C-234 and support an early review by the House so that it can be passed in the Senate without more delays. 

Supporters of Line 5 receive good news

The proposal by Enbridge to build a pipeline tunnel under the Straits of Mackinac in Michigan received good news earlier this month. 

On December 1, the Michigan Public Service Commission approved Enbridge’s $500 million plan to encase in a protective tunnel a portion of the aging oil pipeline that runs beneath the Straits of Mackinac. The plan still needs approval from the U.S. Army Corps of Engineers, which is still compiling an environmental impact statement. A final decision may not come until 2026.  

In Wisconsin, Enbridge has run into trouble with a judge ruling that Enbridge must cease its operations on Bad River land and reroute by 2026. Enbridge appealed the ruling noting that a 1992 contract with the Bad River band constituted consent for Line 5 to operate on its territory through 2043.   

In both the Michigan and Wisconsin cases, the Government of Canada supported Enbridge by invoking a 1977 pipeline treaty with the U.S. The treaty governs the free flow of oil between Canada and the U.S. and Canada maintains that the international treaty must be honoured. 

Reducing methane requires a practical and realistic approach

At COP28, Minister of Environment and Climate Change Steven Guilbeault announced proposed amendments for Canada’s oil and gas methane regulations for the oil and gas sector. [ News Release and technical backgrounder.] A 60-day comment period will begin following publication in Canada Gazette Part I later this month. View the CPA’s feedback to the federal government regarding proposed methane regulations here.

Canada introduces framework to cap greenhouse gas pollution from oil and gas sector

The proposed Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap proposes to cap 2030 emissions at 35% to 38 % below 2019 levels, while providing compliance flexibilities to emit up to a level of about 20% to 23% below 2019 levels. The greenhouse gas pollution cap puts a limit on the amount that the sector can pollute in the goal to reach net zero by 2050.  

Alongside the introduction of the draft Regulatory Framework, Minister Wilkinson released a Roadmap for the Decarbonization of Canada’s Oil and Gas Sector that sets out the measures undertaken by the government, provinces and territories, and the investment community. The Government of Canada says it will continue to engage with industry, Indigenous groups, provinces, territories, and all other stakeholders to ‘get this system right’. Written submissions in response to this document should be submitted by email by February 5, 2024 to PlanPetrolieretGazier-OilandGasPlan@ec.gc.ca.

The CPA has provided comments on the proposed cap, view submissions here.  

BC: Analysis reveals CleanBC policies slow economy and reduce income below 2020 levels

On November 20, the CPA hosted executives from the BC Business Council (BCBC) to hear more about their recent analysis and modelling undertaken to better understand the impacts of the CleanBC policies. Almost 40 members participated and heard about the economic impacts stemming from CleanBC policies to the overall provincial economy and GDP. The results demonstrate that CleanBC policies reduce income (GDP) below 2020 levels in BC’s foundational sectors, will slow the economy to 0.4% by 2030, and continue to widen the gap as compared to other provinces/states. This analysis adds evidence to CPA advocacy, underscoring the need to balance reliable, affordable and low-emission policies.   

The CPA has been a member of BCBC since 2022 and continues to leverage the collaboration, research, and advocacy produced by BCBC and its members. For further information or to receive a copy of the presentation please contact VP Government Relations West, Katie Kachur.   

.

.

.

Please RSVP your attendance to Chris Crawford at chriscrawford@propane.ca.
Deadline: January 20, 2024

BC: CPA continues to advocate Low Carbon Fuel Standard changes

The Government of British Columbia passed the new Low Carbon Fuels Act in spring 2022 to replace the Greenhouse Gas Reduction Act.  The Ministry of Energy, Mines and Low Carbon Innovation issued regulations on December 11, which are intended to bring the new Act into force on January 1, 2024. You can view them here. If you missed the information sessions hosted by the Low Carbon Fuels Branch, you can view the presentation slides here. 

The CPA has recently learned that the default carbon intensity (CI) is based on propane imports from a Washington oil refinery, which is not reflective of propane production or use across the province. The CPA has encouraged the government to publish a natural gas CI as soon as possible to reflect the propane system more accurately and ensure propane use (for transportation) is eligible for credit generation opportunities as a low-carbon fuel option. 

According to government estimates, there are about six suppliers of propane in B.C. End uses covered under the LCFS include: 

  • Use in a light-duty or heavy-duty motor vehicle for the purpose of on-road transportation. 
  • Other prescribed uses, including forklift applications, cargo handling, ground support equipment. 

End-uses not covered under the LCFS: power, heat, process fuel, industrial applications and other uses (e.g., BBQs). 

For further information please contact VP Government Relations West Katie Kachur. 

SK: CPA working to ensure government’s carbon tax removal includes propane

Starting January 1, 2024, SaskPower will remove the carbon tax from electric and natural gas home heating. This will benefit approximately 30,000 SaskPower customers, reducing their power bills an average of $21 per month through the winter. This decision follows Premier Scott Moe’s recent announcement that SaskEnergy would stop collecting the carbon tax from residential customers in the new year, providing relief for about 85% of Saskatchewan homes.  

The CPA is working to ensure that propane users are included in any policy designed to reduce the burden of home heating costs. Active conversations are underway as to how to get propane included, following a similar rebate model that the Government of Alberta introduced for households in 2021. 

MB: CPA sponsors and attends inaugural event to meet with new government

The CPA attended two events in Winnipeg in November that provided an opportunity to speak to many government officials from the new provincial government. On November 21, the CPA’s Chris Crawford along with Aaron Nagtegaal from Superior Propane attended the Manitoba Chamber of Commerce’s Deputy Ministers’ Dinner. This event provided an opportunity to speak with deputy minister’s from Labour and Immigration, Environment and Climate Change, Municipal and Northern Relations, and Indigenous Economic Development.  

On November 22, the CPA was honoured to sponsor and take part in the inaugural Celebrating Manitoba event – a platform bridging government and business interests across the province. Crawford and Nagtegaal had the privilege to connect with new Premier Wab Kinew, Minister of Agriculture Ron Kostyshyn, and Minister of Municipal and Northern Relations Ian Bushie. The CPA collaborated with fellow organizers: Manitoba Canola Growers Association, Manitoba Pork Council, Manitoba Real Estate Association, Prairie Sky Strategy, and Keystone Agricultural Producers. 

ON: CPA 2024 budget priorities include off-oil program

The CPA was pleased to attend the 2024 Ontario budget consultation in St. Thomas. Dave Karn from Dowler-Karn presented the CPA’s 2024 budget priorities to Parliamentary Assistant Rick Byers, Associate Minister Rob Flack, Parliamentary Assistant Matthew Rae, and Member of Parliament Hardeman. The priorities for the CPA for Ontario’s 2024 budget include an off-oil program that would incentivize Ontarians currently heating their homes with oil to switch to low-emission propane and the removal of the 4.3 cent/litre gasoline tax on propane. 

ATL: CPA Atlantic Committee to meet with NS officials about off-oil program

On December 14, members of the CPA Atlantic Committee will be meeting with officials from the Nova Scotia Department of Natural Resources to discuss the possible development of an off-oil program in that province. 

The meeting comes after several meetings over the summer and fall with Nova Scotia MLAs and cabinet ministers from across the province. The most recent meeting was held on November 29 with the entire government caucus. That meeting was led by CPA Atlantic Chair Royden Boudreau. Joining him were Vice Chair Lee Johnson of Wilson’s Heating, Doug Myles of Superior, and Allan Murphy from the CPA. 

Affordability has become a big issue for all governments that need to be able to offer affordable options to heating oil. The CPA was able to convince MLAs that an examination of a propane option is worth considering. 

Join the Celebration: National Propane Day Returns for Round Two! 

Are you a trainee? Log in to your dashboard

We are gearing up for the second annual National Propane Day taking place on Wednesday, March 20, 2024. Join forces with us to elevate National Propane Day beyond the success of last year! Here are some ideas on how you can get involved: 

  1. Host Your Own Activities: Put on events, workshops, or educational sessions in your communities. Whether it’s a customer appreciation day, a consumer giveaway, or a fun-filled gathering, highlight the versatility and importance of propane. 
  2. Connect on Social Media: Follow and repost the CPA on our social channels. Create your own custom content and share your stories, pictures, and celebration posts.  
  3. Dive into Trivia Contests: Test your propane knowledge and win cool prizes! Participate in the CPA’s trivia contests that we will be running around National Propane Day for a chance to snag the sought-after Canadian-made Chilly Moose tumbler.  

The CPA will be putting together a National Propane Day toolkit that we will share in the new year. It will include social media content, logo assets, and a template for an invitation to a customer appreciation or community event.  

Let’s make this National Propane Day a standout event. Your participation will help inform Canadians about the benefits of this low-emission, essential energy source. 

Policy/Regulatory Updates

Challenges with the Clean Fuel Regulations

Updates from Environment and Climate Change Canada on the Clean Fuel Regulations indicate industry is experiencing some challenges. Implementation challenges include the following:  

 

 

About the regulations 

The clean fuel regulations are designed to reduce emissions from every stage of production, processing, and transportation of fuels. They are also meant to drive investment in biofuels such as bio-propane and renewable propane and electric-vehicle charging infrastructure. The regulations are being phased in over seven years. The goal is that by 2030, the emissions produced from each fuel will fall by about 15% compared with 2016 levels. The regulations apply to all refiners and importers who must cut the emissions on their products either by producing their own credits through reducing emissions or buying them elsewhere.  

One way to create credits is by investing in technology that directly reduces emissions, such as installing carbon capture and storage systems at an extraction site or using zero-emitting electricity such as wind or nuclear instead of coal or natural gas to power a refinery. Companies can also get credits for producing or importing low-carbon fuels to lower their emissions output. The third way to create credits is by investing in electric-vehicle charging stations or hydrogen fuel cell stations. 

Amendments published for output-based pricing system and monetary penalties regulations

On November 22, 2023, the Regulations Amending the Output-Based Pricing System Regulations and the Environmental Violations Administrative Monetary Penalties Regulations were published in the Canada Gazette, Part II.  

To support implementation of the Amendments, the following documents have also been published: 

These policies affect both existing covered facilities under the Output-Based Pricing System (OBPS) that are engaged in activities on the List and facilities applying to be covered facilities under the OBPS (i.e. facilities applying to opt-in to the OBPS).The first compliance period under the OBPS for facilities designated as a covered facility in 2024 will begin on January 1, 2025. 

Environment and Climate Change Canada will host a webinar on the Amendments and more information on voluntary participation in January 2024. You will be invited to register for one of the sessions in English or in French several days before the webinar.  For more information on the OBPS, please consult the Output-Based Pricing System web page. 

Read the 214 comments posted on the proposed Clean Electricity Regulations

Comments submitted during the Canada Gazette, Part I comment period through the Online Regulatory Consultation System (ORCS) for the Clean Electricity Regulations are now available to view (including the CPA’s). View them at: Canada Gazette, Part 1, Volume 1, Number 1: Clean Electricity Regulations 

New awareness video highlights how CANUTEC handles emergency calls and TDG awareness

The Canadian Transport Emergency Centre (CANUTEC) has created an awareness video to showcase how CANUTEC Emergency Response Advisors handle emergency calls. This video also focuses on the different services that CANUTEC offers as well as increases awareness on the Transportation of Dangerous Goods Directorate’s Emergency Response Assistance Plan (ERAP) Program. The new CANUTEC Awareness Video can be found on the CANUTEC Website, the TC Video Gallery, and the TC YouTube account 

CPA Out and About

CPA had the opportunity to meet with the U.S. Consular General to delve into a crucial conversation about Line 5 and its impact on Canada’s propane industry.

From left to right: Baxter Hunt, U.S. Consular General; Shannon Watt, CPA’s President & CEO; Chris Crawford, VP Government Relations, ON & MB and Christopher Alexander, Deputy Principal Commercial Officer.

The CPA staff and Board members, Darren Eavis, and Richard Charbonneau joined the Honorable David Wells, the sponsor of Bill C-234, and farmers at a Carbon Tax Rally on Parliament Hill.

From left to right: Darren Eavis, Richard Charbonneau, Senator David Wells

CPA’s Katie Kachur was joined by Rob Hoffman of the Canadian Fuels Association at a Calgary Chamber of Commerce event last week, featuring the Honorable Nathan Neudorf, Affordability and Utilities Minister.

Celebrating Manitoba: Fostering Collaboration for Growth

Chris Crawford; MB Premier, Wab Kinew; Aaron Nagtegaal, Superior Propane.

From left to right: Chris Crawford; Aaron Nagtegaal, Superior Propane; Minister of Municipal and Northern Relations, Ian Bushie.

From left to right: Aaron Nagtegaal, Superior Propane; Minister of Agriculture, the Hon. Ron Kostyshyn; Chris Crawford.

Ontario Finance Budget Consultation , St-Thomas.

Dave Karn, President, Dowler-Karn Ltd. with Associate Minister, Rob Flack.

 

Dave Karn with MPP Rick Byers.

Dave Karn addressing the audience.

Industry Resources and Propane Stats

Click on the links below to find updated propane storage levels, exports, pricing, and rail data. This is publicly collected data updated on a weekly or monthly basis.

Canada Energy Regulator

Propane and Butanes Export Summary

Canadian Propane Exports by volumes/destinations/modes

Canadian Propane Inventory & Storage levels

Consumer Prices for Propane Fuel (canada.ca)

Transport Canada

Weekly rail performance indicators – Propane products

The CPA welcomes new members

Western Canada

  • Pinnacle Propane – Retail Marketer: Chilliwack, BC
  • Allied Energy II Corp – Producer: Calgary, AB
  • Mach Energy Services Ltd. – Transporter: Rimbey, AB

Eastern Canada

  • Country Farm Centre Ltd. – Retail Marketer: Belleville, ON
  • Midwest Cooperative Services Inc. – Retail Marketer: Teeswater, ON
  • Bird Fuels – Retail Marketer: Collingwood, ON
  • Manchester Tank Canada – Retail Marketer: Tillsonburg, ON

CPA Events - SAVE THE DATES!

CPA Member Breakfast – 2024 NPGA Expo

When: April 5, 2024
Time: 8:00 am – 9:30 am
Where: Charlotte Marriott City Centre

.

Canadian Propane Association 2024 Leadership Summit 

When: May 14-16, 2024
Where: Ottawa Marriott Hotel
100 Kent Street
Ottawa, ON  K1P 5R7

Canadian Propane Association 2024 Atlantic Seminar & Golf Tournament

When: June 4-5, 2024
Where: Rodd Brudenell River Resort
86 Dewars LN, Cardigan, PE

Other Industry Events

January 16-18: 21st Annual BC Natural Resources Forum

Shaping Tomorrow: BC’s Resource Sector and Future Generations

This year’s Forum will dive deep into the importance of interconnected decision-making through meaningful partnerships between First Nations, Government, and the BC Resource Sector.

Where: Prince George, BC.
Register here

February 29 - March 2: Young Women in Energy (YME) Summit

Content will span leadership development, gender diversity and energy industry thought leadership, and curated networking with like-minded women.

Where: Kananaskis, AB.
More details.

January 21-23: 2024 ROMA Conference

The 2024 Conference will have all of the critical rural municipal issues front and centre for you to engage, learn, network and bring innovative solutions to your community.

Where: Toronto, ON.
More details

Join the Canadian Propane Association

The CPA is the national association for the propane industry, representing companies in every region of the country and in every sector of the industry. Our members are an influential group and include producers, wholesalers, transporters, retailers, manufacturers, distributors and service providers of equipment and appliances, and associated industries.