The CPA’s President and CEO Shannon Watt has been invited to speak at the 35th World LPG Forum & European Liquid Gas Congress, the largest annual event gathering of propane professionals in the world. Under the theme, ‘Just Energy’, the event attracts over 100 countries and showcases an impressive line-up of industry leaders, experts and influencers.  

This year, the event takes place in Rome from November 13-17, 2023. For more information and to register, visit lpgweek.com. 

Calgary hosted the 24th World Petroleum Congress 2023 in mid-September. WPC is dedicated to promoting sustainable management and use of the world’s petroleum resources for the benefit of all and propane was included in critical discussions at this global event. Specifically, WPC hosted CPA President & CEO Shannon Watt and World LPG Association CEO James Rockall as panelists in the Role of Natural Gas and Natural Gas Liquids in the Energy Transition panel session. James was also a guest on the Circular Economy -Consumerism & Industry Responses panel. CPA’s Vice President, Government Relations, West Katie Kachur moderated a panel on Reverse Engineering Net Zero.  

The WPC hosted key stakeholders in the energy sector to discuss the energy transition. The CPA was pleased to play a role in many important conversations, alongside CPA members such as Imperial, Tourmaline, and Suncor.  

On September 20, the CPA filed a submission before the Senate Committee on Agriculture and Forestry indicating its full support of Bill C-234, An Act to Amend the Greenhouse Gas Pollution Pricing Act (GGPPA).

In the submission, CPA President Shannon Watt said “CPA members provide low-emission propane energy to Canada’s farming community. Propane is a safe and critical energy in the agriculture community. It costs less than other fuel sources, and propane farm equipment has high-efficiency engines that offer lower maintenance costs without compromising performance, power, or productivity.”

She stated that “according to the Parliamentary Budget Officer, under the provisions of C-234, farmers in the provinces currently affected by the federal carbon tax can expect to save $9 million in carbon taxes on propane in 2022-2023. As of July 1, the Atlantic provinces are now also included under the GGPPA. With the passing of C-234, farmers in those provinces would see savings as well.”

With the yearly increases in the rate of carbon tax ratcheting up to $170 per tonne by 2030, the exemption will mean annual savings to farmers of about $33 million by the year 2030-2031. In aggregate, the exemption for propane represents a total savings for farmers from 2022-2023 to 2030-2031 of $189 million.

While there have been efforts to provide some rebates for propane, Canada’s agriculture sector and CPA members have been clear that the rebates do not go far enough.

It is expected that C-234 will work its way through the Senate this fall and become law before Christmas. After several years of advocating for fair treatment for propane under the GGPPA, the law when it’s passed will be a reward for lots of hard work by CPA members and Staff.

On August 3, the CPA submitted its recommendations to the House of Commons Finance Committee as they prepare their recommendations for the 2024 federal budget.

In her submission, CPA President Shannon noted that for decarbonization to be executed fairly, it must be a careful “dial” approach and not a “switch”.

“We cannot make up for lost opportunities of the past by penalizing Canadians, especially those in Indigenous, rural, and remote communities whose access to the cleaner energy options are limited compared to those who live in urban communities,” said Watt. “The transition to a green future requires fairness, affordability, and low-emission energy choices for all consumers. This means an all-hands-on-deck approach to providing low-emission, affordable, dependable, and secure energy. “

The recommendations made to the committee include:

• Change Part IX of the Excise Tax Actto categorize residential heating fuels, such as propane, to zero-rated for purposes of the GST.
• Expand federal programs such as the Canada Greener Homes Grant to include propane to support heat pumps and ensure the reduction of energy costs and GHGs in residential applications.
• Provide cleaner and healthier living conditions in Indigenous communities by supporting the conversion of residential, public, and commercial buildings in these areas from diesel/heating oil to propane.
• Change the Greenhouse Gas Pollution Pricing Act (GGPPA) to ensure that propane receives the same carbon tax exemptions as diesel and natural gas for the purposes of remote power generation.
• Make tax credits available for converting fleets from gasoline to propane.
• Offer the same level of energy choice as the United States’ Inflation Reduction Act which allows for a suite of energies to qualify for its low-carbon programming, including natural gas, compressed natural gas and propane. Significant biofuels incentives must also be developed to ensure investment parity with the U.S.

The CPA will also be filing pre-budget submissions for many of the provinces in advance of the 2024-25 budget cycle.

As part of Budget 2023, the federal government proposed amendments to the Canada Transportation Act to increase the rail interswitching limit from 30km to 160km across the Prairies. This extended interswitching will be in effect on a pilot basis for 18 months.  

Extended interswitching gives shippers who are physically located on a single rail line, which is the reality for most grain elevators, the ability to automatically seek competing service from the next closest railway if it is within the 160km radius. The intent of this measure is to give shippers captive to one of Canada’s two rail carriers the opportunity to have at least one competitive option.  

Extended interswitching’s most powerful use is in getting better service from the existing rail carrier who would otherwise have less motivation to meet customer needs if the competitive alternative wasn’t available. The threat of loss of business, as in any other normally competitive market, aims to change behaviour to provide better quality service. The CPA anticipates that this change will result in positive shipper (propane) negotiating leverage in the relationship with their originating carrier – who they are often otherwise captive to in a monopoly-like manner. Please contact Katie Kachur (katiekachur@propane.ca) with any questions. 

The federal government opened a call for project applications for Stream 2 of the Green Freight Program. This stream provides support for engine repowers, switching to cleaner fuels, and fleet transportation improvements. The program includes incentives for alternative fuel vehicles, tire changes, truck system changes, such as space between truck and trailer reduction, and under-skirt additions. Propane is included in this program. The application window is open until November 16, 2023. 

The minister responsible for the Pacific Economic Development Agency of Canada announced the government is giving nearly $6 million for Indigenous communities in British Columbia to develop clean energy projects.  Minister Sajjan says the funding shows Canada is committed to working with First Nations to help them grow their economy and take advantage of opportunities in the technology sector.  

More than $3.9 million of the funding, provided by PacificCan and Indigenous Services Canada, will be given to the BC Indigenous Clean Energy Initiative to help 14 communities develop clean energy projects. The CPA encourages CPA members active in the province to reach out to communities relying on diesel and explore areas of partnership and opportunity.  

The CPA attended the 2023 Union of BC Municipalities (UBCM) this past September in Vancouver, B.C. to meet leaders across the province and learn about energy issues important to their respective communities. There was a wide variety of conversations regarding the future of B.C.’s energy system and sustainable transitions.  

CPA’s VP of Government Relations, West Katie Kachur was at the event, speaking to the importance of propane, especially in remote communities relying on diesel as their primary energy source, in emissions reduction strategies for the transportation sector, and as a key backup source for grid-related outages.  

As part of the event, the CPA sponsored the Natural Resources Summit breakfast series, an opportunity that brings mayors, councillors, the resource sector, and the provincial government together to discuss the latest news and developments related to B.C.’s mining, energy, and forestry sectors. The CPA encourages members active in B.C. to participate in the 2024 convention as it is a prominent event and a key opportunity to discuss propane.  

The CPA responded to the Alberta government’s announcement to pause renewable energy projects by writing an op-ed stating that no province in Canada should have a “one-size fits all” energy solution. Published in both the Calgary Herald and Edmonton Journal, the CPA’s opinion piece, Energy choice for a greener future should include propane, called on the government to consider a flexible and adaptable approach to energy policy that considers all needs and challenges of all individuals and regions while ensuring affordability and reliable energy choice.  

The Alberta Minister of Affordability and Utilities had issued the surprise announcement on August 3, 2023, directing the Alberta Utilities Commission to pause approvals in respect of new renewable electricity generation projects until at least February 29, 2024.  

The halt on projects was stated to be in direct response to a letter from the Commission that highlighted the need to review and consider broad policy changes with respect of renewable development. The Commission’s review will include a public inquiry, after which the Commission is required to submit, no later than March 29, 2024, a report analyzing its findings to the ministry.  

The CPA will continue to engage with the Government of Alberta throughout this process and ensure the benefits of propane are included in this discussion, as part of a “wide path” approach to energy development in the province.  

As part of its increased advocacy in Saskatchewan, the CPA is pleased to announce its membership with the Saskatchewan Chamber of Commerce. The Chamber has represented the Saskatchewan business community since 1920, advocating on behalf of all sizes of businesses, local chambers of commerce, and professional associations. The Chamber will allow the CPA and its members to have further opportunities for engagement with key stakeholders across the province, ensuring that decision-makers are aware of the important role propane can and should play in the energy, agricultural, and transportation sectors in the province. As part of its membership, the CPA will be part of key annual events, including the upcoming Chair’s Invitational Dinner in Regina on October 3.  For any questions, please contact SVP Government Relations West, Katie Kachur (katiekachur@propane.ca)  

The CPA held a productive meeting in Point Edward, Ontario with MPP Bob Bailey (Sarnia-Lambton) to provide an overview of the propane industry and its impact on the Ontario economy. CPA board member Jason Cooper, VP of Government Relations, Ontario and Manitoba, Chris Crawford and PTI Business Development Manager Jim Bellwood also discussed the role propane can fill in providing Ontarians with a Canadian energy choice that is low emission, affordable and accessible. The CPA looks forward to continued advocacy efforts this fall with Ontario’s Members of Provincial Parliament.

This summer, the CPA engaged in an important dialogue with Atlantic Canada’s premiers as part of continued efforts to expand the use of propane throughout the region.  

In her June 13 letter to PEI Premier Dennis King, the chair of the Council of Atlantic Premiers, CPA President Shannon Watt wrote, “I am writing to you regarding the economic and environmental advantages the expanded use of low-emission propane can provide to Atlantic Canadians, especially at a time when the push to decarbonization by the federal government seems to ignore the impact on residents in Atlantic Canada.”  

Watt indicated that the propane industry is presently designing its pathway to net zero by 2050. She also noted other important themes of the CPA’s advocacy efforts: 

• It’s important that governments understand that decarbonization, done fairly, is a dial not a switch;  
• That propane is more affordable than carbon-intense fuels such as gasoline, diesel, and heating oil; 
• Lower emission propane means lower carbon taxes;
• The transition to net zero must be affordable, and; 
• Energy choice will allow for affordable low-emission options. 

Premier King responded in a July 14 letter to Watt: “We share your concerns regarding energy costs and are making considered efforts to ensure affordability for Atlantic Canadians…We appreciate your input on this topic and encourage you to continue advocating for the use of propane in Atlantic Canada, contributing to the region’s pathway to net zero. We look forward to receiving your third-party study outlining your net-zero plans in fall 2023.” 

Throughout the summer, the CPA also had several meetings with MLAs and MPs in Nova Scotia and PEI. Those consultations will continue throughout the fall across Atlantic Canada. 

The CPA provided comments on the Northwest Territories government’s 2030 energy strategy and climate change strategic framework. In its submission, the CPA recommended that propane and renewable propane be the energy solution of choice to displace diesel systems for heating, power generation and transportation. The NWT’s diesel demand in 2019 was 4,822 litres per capita, more than five times the national average of 855 litres per capita. A significant portion of NWT’s demand for diesel fuel is for space heating and power generation. Read the recommendations here.  

On Sept. 1, 2023, hydrogen, ammonia, methanol and expanded powers on carbon storage reservoirs were added to the BC Energy Regulator’s (BCER) existing mandate on oil, gas and geothermal activities.  

Key highlights include:  

• Renaming the Oil and Gas Activities Act to the Energy Resource Activities Act to “better reflect the scope of BCER’s responsibilities”.  
• Amending the statutory purpose of the BCER to reflect the scope of its responsibilities and to support reconciliation with Indigenous peoples and the transition to low-carbon energy.  
• Replacing “oil and gas activity” with “energy resource activity.” The new definition highlights that, in addition to having jurisdiction over the exploration and production of natural gas, the BCER is responsible for the oversight of the “construction or operation of a facility for manufacturing hydrogen, ammonia or methanol from petroleum, natural gas, water or another substance.” The BCER is now also responsible for oversight of pipelines. 

For further information, visit the BCER website. 

Technical Safety BC engaged with the industry on their proposed fee changes for 2024-2025 between May and June of this year. The proposed changes included: 

• a general fee increase of 7% in 2024 and 4% in 2025; 
• charging the same fee across all technologies, with cost depending on exam delivery  
• (paper, digital remote, digital in-person, or practical);
• reducing fees for electrical permits with lower job values, while increasing 8% in 2024 for electrical permits with jobs valued over $1,000; and 
• charging hourly rates for administrative, safety, and professional services, with the same rate across all technologies. 

TSBC will issue recommendations to the Board of Directors and will consider all feedback received through this consultation process, and other inputs such as B.C.’s consumer price index, and the financial outlook of B.C.’s industries. Provided the new fees are approved by the board, they will be announced by early October 2023 and will be in effect on January 1, 2024. For more information please visit: Fee Schedules | TSBC (technicalsafetybc.ca). For questions please contact VP Government Relations, West, Katie Kachur. 

The CPA has commissioned a study that examines the decarbonization pathways for Canadian propane.  

The CPA represents the entire propane value chain from producers, wholesale marketers, transporters, retail marketers and manufacturers of propane equipment and collectively this group must work towards the goal of reaching net-zero emissions by 2050. This is a complex goal, but fundamentally it means that propane as a fuel must progress towards net-zero or expect that in 2050 it will not be the green, affordable, versatile and reliable option for Canadians that it is today.  

Achieving this objective requires a better understanding of critical technologies, barriers, research and development requirements and possible pathways to decarbonise propane within Canada. This report, the first of its kind for the Canadian propane sector, will explore the different technologies for producing bio-propane or renewable propane that could be a replacement for fossil propane in Canada, providing a market and barrier analysis for the technology options identified. The study would also build on the pathways research to consider what it would take to build first-of-kind bio-propane or renewable propane production facilities and distribution networks in Canada.  

Once complete, the CPA will be providing a webinar for members to speak to the lead researchers of this report. The CPA is also assessing what a rollout strategy will look like but expects a wide publication and discussion surrounding this important research. For any questions, please contact Katie Kachur (katiekachur@propane.ca)  

The CPA once again called on the government to remove the GST on home heating as Canadians head into fall and cooler temperatures through a news release published on August 21, 2023. The Parliamentary Budget Officer has reported that Canadians would see well over a billion dollars in savings annually in residential energy costs by eliminating the GST. The CPA stated that it was time the government recognized that heating is as essential as groceries in Canada and not taxed as a luxury item. Read the full release here. 

The Alberta Seminar took place in Red Deer on September 8, providing an opportunity for CPA members to listen to speakers from the Government of Alberta, connect with fellow members, and, of course, put their golfing prowess to the test! The CPA thanks Sidney Manning, Doug Horvat and Caroline Lobban for participating and sharing their perspectives on issues relevant to the propane sector. The CPA also thanks the sponsors for the event, Ditech Testing, MaXuip, Quality Steel, Total Control, Accu-Flo Meter Service LTD and Base Engineering.  

The BC Seminar was held on September 12 in Vancouver and allowed for CPA members to hear from speakers from Technical Safety BC and Transport Canada, network, and enjoy a round of golf. The CPA thanks Scott Milligan and Josée Boudreau for attending this important event and sharing their perspectives on issues specific to the propane sector.