THE LEADING VOICE FOR THE PROPANE INDUSTRY IN CANADA.


June 2024 

 

Advocacy

New 'Greenwashing' Regulations Introduced – Here's What You Need to Know

You may have recently heard about the passage of Bill C-59, now known as the Fall Economic Statement Implementation Act, 2023 SC, c 15. As of June 20, 2024, this law introduced a new provision under the Competition Act’s section on deceptive marketing practices, making “greenwashing” a reviewable matter. In this regard, a last-minute amendment expanded the scope of the Act’s prohibition against such conduct by referencing:

“any representation made to the public with respect to the benefits of a business or business activity for protecting or restoring the environment or mitigating the environmental and ecological causes or effects of climate change, that is not based on adequate and proper substantiation in accordance with internationally recognized methodology, the proof of which lies on the person making the representation”.

The last 15 words are most concerning. Specifically, the term “internationally recognized methodology” is not defined, yet the burden of proof falls on the company. The CPA shared our concerns and will push the government to ensure a fulsome consultation on any guidance documents. In the meantime, the provision is effective immediately, having been enacted upon receiving Royal Assent on June 20, 2024.

In light of this uncertainty, the CPA is taking a closer look at our own publicly facing materials and will be using the following as guidance:

  1. Be precise – avoid being vague and ensure messaging is clear.
  2. Back-up/Support statements – Specific benefits/data should be supported with reputable studies and appropriate methodologies.
  3. Certifications/standards – If referencing certifications, ensure all products or services are fully certified or follow certain standards fully (not just partially).
  4. Do not exaggerate.

We encourage you to take a good look at your public-facing messaging. If you have any further questions, please do not hesitate to contact us. We will continue to monitor the status, impact and subsequent analysis of this important item and keep you apprised.

CPA’s railway strike prevention efforts

As major railways and the Teamsters Canada Rail Conference (TCRC) strive to reach common ground to avoid a work stoppage, the CPA remains engaged with all stakeholders, including the federal government.  

On May 2, CPA President and CEO Shannon Watt wrote to Federal Minister of Labour Seamus O’Regan Jr emphasizing the potential consequences of an extended disruption in rail services on critical services such as rural hospitals and seniors’ homes, which rely on propane energy. Access the full letter here. All government submissions and letters can be found here.  

On May 10, CPA SVP of Government Relations Allan Murphy spoke with the Minister’s Chief of Staff Paul Moen to further discuss the impacts on propane customers across the country.  

The immediate threat of a work stoppage has been temporarily mitigated, with the minister deferring the matter to the Canadian Industrial Relations Board (CIRB). Originally, strike action could have commenced 72 hours after the initial May 22 deadline, but now any strike is contingent upon the CIRB’s findings, anticipated in July.  

The CPA has communicated to the minister’s office that any further delay in resolving the dispute between the rail companies and the Teamsters risks jeopardizing propane transportation in the late summer and fall when demand increases for agriculture activities and home heating. 

CPA makes the case from oil to propane with key politicians

The month of May was very busy on the advocacy front as the CPA worked to expand the propane footprint in Canada, focusing on how propane can reduce emissions and provide affordable energy.  

On May 23, CPA Atlantic Committee Chair Royden Boudreau, Vice Chair Lee Johnson, and SVP Government Relations Allan Murphy met with Nova Scotia Natural Resources Minister Tory Rushton. This meeting capped a series of discussions with MLAs and bureaucrats regarding a CPA proposal to incentivize consumers to switch from heating oil to propane. The minister was receptive to the concept and agreed to discuss the issues with the ministers of environment and finance.  

On May 28, Murphy, joined by Boudreau and other CPA members James Callow and Graham Bryan held discussions with Yasmine Atassi and Brenna Walsh, senior advisors to Natural Resources Canada Minister Jonathan Wilkinson, regarding the upcoming Greener Homes Affordability Program scheduled to roll out next year. The minister’s office remains focused on oil to heat pump conversions without including a propane option.  

The propane option was also discussed with the official opposition. Upwards of twenty meetings have been held or scheduled on this issue, including eight in May. Meetings will continue in June and throughout the summer in constituency offices across Canada. CPA staff may reach out to members to join meetings with local MPs as well as provincial and municipal officeholders. 

Affordable energy choice becoming more important as provinces move to offset increasing hydro costs

A critical part of discussions between the CPA and governments at all levels is the affordability of propane compared to heating oil. Another emerging factor is the need for affordable energy choices as rising hydro costs in some provinces have prompted governments to take steps to protect consumers. 

Ontario has long held a policy of offsetting electricity costs. In recent years, about $6 billion annually has been spent on electricity cost-relief programs. Recently, both Nova Scotia and Newfoundland have allocated funds to offset increases for ratepayers. 

In Nova Scotia, the government is proposing to buy $117 million of Nova Scotia Power’s $395 million debt. Without government action, households would face a seven per cent increase, and industrial customers would see a 13 per cent rise. Nova Scotia’s power rates are already among the highest in Canada. 

In Newfoundland, the government announced plans to spend $2 billion over the next six years to prevent residential power rates from skyrocketing. This action is required to cover the costs of the Muskrat Falls project as well as other Newfoundland and Labrador hydro expenses. Without this intervention, an average monthly bill would grow from $300 to $500. 

The CPA will continue to advocate for affordable energy choices for customers at all levels of government. 

BC: Government recognizing CPA-proposed carbon intensity for propane

On June 18, the Ministry of Energy, Mines and Low Carbon Innovation noted new “proxy carbon intensities (CI)” for propane production pathways. This follows years of advocacy with the B.C. government discussing the importance of an accurate CI value for CPA members selling propane for transportation purposes and thus subject to the Low Carbon Fuel Standards (LCFS) system. The table below lists four pathways for Canadian production, including propane produced from a natura gas plant in western Canada. These new proxies reflect the analysis that S&P Global completed for CPA in 2022: GHG Emissions Intensity of Canadian Propane – CPA Summary

This is a great policy change from the provincial government that better reflects the production of propane for many CPA retailers. Further detail can be found here. Please contact VP Government Relations, West, katie kachur if you have any questions.

BC: Be part of the conversation at the 2024 UBCM Convention

The CPA encourages BC members to participate in the 2024 Union of BC Municipalities Convention. Running from September 16- 20, this annual event brings together key stakeholders across the province, offering a unique opportunity for CPA members to engage in municipal, provincial, and federal conversations surrounding B.C.’s energy future. There is also an opportunity for members to participate on the trade show floor at UBCM, a well-attended event that showcases the role propane plays across the province. The CPA will once again sponsor the Natural Resources breakfast, an event that provides an opportunity to highlight propane’s role in the province with key provincial politicians. 

CPA’s President and CEO, Shannon Watt, and VP Government Relations West, Katie Kachur, will be attending the events, including the BC Seminar on September 17, in Pitt Meadows.  

For questions, please reach out Katie   

Click here to register for UBCM.
Click here to register for the Resource Breakfast series. 

BC: CPA promotes propane at fall events throughout the province

Bioenergy webinar this fall in the West Coast Bioenergy Guild

The CPA will be participating in the West Coast Bioenergy Guild hosted by the BC Bioenergy Network this fall to highlight the role of renewable propane, renewable DME, and other pathways that propane can reduce emissions while providing reliable and affordable energy. Established in April 2008 through government support, the network facilitates strategic partnerships to identify low-carbon solutions. Some of the network’s partners are also members of the CPA. To learn more about the network and to register for the webinar, visit this link 

2024 Forward Summit

CPA’s VP Government Relations for western Canada, Katie Kachur will be speaking at the Forward Summit held October 22-23, 2024, in Vancouver. This event serves as a platform to bring together Indigenous communities and Canadian industry to foster discussions on national economic reconciliation. The CPA encourages all members in British Columbia to consider attending this significant event. For more details and registration, visit this link.   

2024 Smart Energy Conference

CPA’s Katie Kachur, VP Government Relations for Western Canada will also be participating in the upcoming 2024 Smart Energy Conference, taking place on November 5-6 in Vancouver. This conference will facilitate discussions on the latest advancements in hydrogen, energy storage, EVs, transportation, energy efficiency, electrification, and renewables. It aims to explore how these innovations will reshape collaboration among utilities, municipalities, policymakers, integrators, corporations, governments, researchers, and consumers to achieve an inclusive transition to net zero. For registration, please visit this link.  

BC: $9.8 million boost for First Nations' clean energy projects

Thirty-five First Nations in British Columbia are receiving $9.8 million in federal and provincial funding to develop clean energy projects. The funding comes through the BC Indigenous Clean Energy Initiative (BCICEI), a partnership between the Government of Canada, the Province of British Columbia, and New Relationship Trust (NRT). 

This round of BCICEI support includes $7.5 million from PacifiCan and Indigenous Services Canada, and approximately $2.3 million from the Government of B.C. through its CleanBC plan. Additionally, the province, NRT, and PacifiCan are designing a new funding stream for BCICEI. This stream will support small-scale renewable energy projects that are currently ineligible for BC Hydro’s power calls due to their size, allowing them to contribute to the power grid. The new stream will be funded with $140 million, first announced in June 2023. An engagement period will begin soon to gather ideas from interested First Nations. 

The CPA encourages members to review the criteria to determine if this funding could support any respective (B.C.-based) projects. For more information, please visit Canada, B.C. support First Nations to power up new clean energy projects. 

MB: CPA addresses energy and agricultural concerns in meetings with Manitoba cabinet ministers

During the week of May 27, CPA’s VP Government Relations for Ontario and Manitoba Chris Crawford and Aaron Nagtegaal of Superior Propane met with Jamie Moses, minister of economic development, investment and trade, and natural resources. The meeting highlighted the importance of propane in Manitoba’s energy mix and discussed the recent Propane Decarbonization Roadmap for Canada. The CPA emphasized that renewable propane should play a key role in providing a lower-emission energy source for Manitobans, especially those without access to natural gas.  

On May 28, the CPA, along with members from the Keystone Agricultural Producers, met with Malaya Marcelino, minister of labour and immigration. The meeting addressed concerns from both the propane and agricultural sectors regarding the shortage of inspectors and the resulting delays in activating propane services. They also discussed Manitoba Bulletin ITS 22-002, which mandates that any installation of propane tanks with a capacity of 10,000 USWG or larger must include a Risk and Safety Management Plan. This requirement significantly impacts the agricultural sector. 

ON: Premier Ford's cabinet shuffle – key changes impacting the CPA

On June 6, 2024, Premier Ford shuffled his Cabinet, resulting in significant changes. Stephen Lecce was appointed the new minister of energy and electrification, replacing Todd Smith, who was moved to the education portfolio. Additionally, Sam Oosterhoff was appointed as associate minister of energy-intensive industries within the ministry of energy and electrification.  

Other changes impacting the CPA included Rob Flack being appointed minister of farming, agriculture, and agribusiness, and Lisa Thompson becoming minister of rural affairs. 

CPA News

CPA member and trainer recognized at national ERAC awards!

Emergency Response Assistance Canada, a subsidiary of the CPA, recently held their National Responder Awards that recognize the efforts of outstanding individuals and response teams in the areas of leadership, safety, training and learning, and long-term service.

Clint Hillman, regulatory & technical specialist with Superior Propane, was awarded the ERAC Excellence in Leadership award. Clint has been an integral part of the ERAC BC South response team for over 15 years and was acknowledged for his leadership and innovation within the team, as evident by his skill, engagement, readiness and safety commitment for all members of the team, other responders, the public and environment.

Normand Desvergnes, a trainer with Propane MM in Quebec and a trainer with the CPA’s Propane Training Institute, received the Excellence in Training Award. Normand, a long-standing remedial measures advisor with ERAC, was recognized for his passion, dedication and perseverance that sets the bar for excellence in dangerous goods preparedness response.

Propane MM was presented the Excellence in Training and Learning Award for their depth of experience and training, providing critical support to ERAC. They consistently provide a well-trained and equipped emergency response, always ready to respond on behalf of ERAC and their plan members.

Congratulations Clint, Normand and Propane MM!

CPA Out and About

Shannon Watt, CPA President & CEO, and Melissa Michaud, VP Operations, met with members of parliament, Hon. Richard Lehoux and Hon. Gerard Deltell to discuss propane’s important role in Canada. Discussions included the importance of propane as a critical energy source for remote and rural communities and the agriculture sector.

From left to right: Shannon Watt, MP Richard Lehoux and Melissa Michaud.

From left to right: Melissa Michaud, MP Richard Deltell and Shannon Watt.

From left to right: Allan Murphy, VP Government Relations, CPA; MP Karen Vecchio and Melissa Michaud, VP Operations, CPA.

CPA’s Chris Crawford, VP of Government Relations, Ontario & Manitoba and Katie Kachur, VP of Government Relations, West, met with MPP Mike Schreiner, Leader of the Green Party of Ontario, to discuss the CPA’s Decarbonization Roadmap for Canada.

Saskatchewan : Special event for CPA members

On June 6, the CPA hosted a special event in Regina for all Saskatchewan-based CPA members. The gathering was a fantastic opportunity for the propane sector to connect, learn, and discuss the pivotal role of propane with government representatives in Saskatchewan, including Minister of Agriculture David Marit and NDP energy critic Aleana Young.

Minister of Agriculture David Marit (middle).

NDP energy critic Aleana Young (middle).

National Coalition of Chiefs Energy and Natural Resources Summit

CPA’s Katie Kachur was pleased to attend the National Chiefs Coalition Energy and Natural Resource Summit on June 9-10. The event emphasized the importance and inclusion of Indigenous communities for a prosperous energy sector and future for Canada.

Presenter Malcolm Macpherson, national chair of the Indigenous practice at Whitelaw Twining

Pat’s Ribbon Skirts and Crafts

Global Energy Show

CPA’s Katie Kachur was invited by the Young Women in Energy to participate in the Emerging Leaders discussion during the 2024 Global Energy Show.

 

Superior Propane team at the 2024 Global Energy Show.

Young Women in Energy member.

Market Insights

More Canadians Back Oil Industry Amid Rising Cost of Living, Pollster Reveals

Despite intense debate and criticism surrounding the oil and gas industry, Canadians’ support for the sector is growing stronger. Pollster Nik Nanos, speaking at the Global Energy Show in Calgary, revealed data indicating increasing public support, driven by concerns over affordability, jobs, and inflation. 

“Canadians are practical. They understand the importance of the sector today and into the future,” Nanos explained, emphasizing the public’s effort to balance environmental goals with economic realities. This sentiment is backed by a Nanos Research poll for the University of Ottawa’s Positive Energy program, showing nearly three-quarters of Canadians view the oil and gas industry as vital to the economy, up from 65% in November 2020. 

Survey respondents rated Canada’s handling of major energy projects poorly, giving a score of 5.5 out of 10 for approving new developments like pipelines and hydroelectric dams, and 5.4 for building future energy infrastructure. Nanos stressed the need for practical, honest communication from the government about the trade-offs involved in energy decisions. Read the full story 

Electric buses are no bargain says school district

Data analysis conducted by the Kyrene School District in Arizona showed that electric buses cost more than twice the price of propane-powered buses and are not as efficient. The analysis showed that electric school buses can only travel about a quarter of the distance before they need recharging. The costs to train staff how to fix them also is unknown. Read the full story. For more information, check out the CPA’s web page on auto propane and how it compares favourably with electric. 

 

CPA member AltaGas launches $1.35B propane export terminal

CPA member  AltaGas Ltd. and Royal Vopak NV (Vopak) have approved the construction of a $1.35 billion terminal at the Ridley Island Energy Export Facility (REEF). This large-scale liquefied petroleum gas and bulk liquids terminal will export energy products, such as propane, to Asia from British Columbia. 

Following a five-year environmental preparation and review process that involved extensive engagement with multiple stakeholders, including Indigenous rights holders and local communities. AltaGas says REEF will enhance Canada’s role as a growing global energy exporter, strengthen Canadian and Asia Pacific energy connectivity, and provide Canadian producers and aggregators with access to premium global markets for LPGs. 

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.

Propane and Butanes Export Summary

Canadian Propane Exports by volumes/destinations/modes

Canadian Propane Inventory & Storage levels

Consumer Prices for Propane Fuel (canada.ca)

Weekly rail performance indicators – Propane products

.

.

.

.

.

.

.

.

.

.

 

Visit Maxquip

CPA Events - SAVE THE DATES!

CPA 2024 Alberta Seminar & Kandlelighters’ Golf Tournament

When: September 6-7, 2024
Where: Red Deer Resort & Casino
3310-50 Avenue, Red Deer, AB 

CPA 2024 BC Seminar & Golf Tournament

When: September 17, 2024
Where: Pitt Meadows Golf Club
Pitt Meadows, BC

Other Industry Events

WLGA webinars will be held online, on MSTeams, from 6 am – 8 am EST (12 pm-2 pm Paris time)

  • Q3: Tuesday, Sep. 24 
  • LPG Week 2024/Cape Town: Monday, Nov. 18 

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.