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February 2018

CPA Ensuring Propane Industry Fully Considered in Clean Fuels Standard

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The CPA is diligently working with the Federal government on the development of a Clean Fuel Standard (CFS) and providing input to ensure the propane industry is fully considered in the ensuing policy and regulations.

The Federal government is consulting with provinces, territories, and stakeholders as well as Indigenous peoples to develop a CFS under the Canadian Environmental Protection Act, 1999 to reduce greenhouse gas emissions from the use of fuels.  

A Clean Fuel Standard Regulatory Framework was published in Part I of the Canada Gazette on December 23, 2017. It covers the scope of the regulations, regulated parties, the carbon intensity approach and compliance mechanisms.

On January 18, the CPA participated in a multi-stakeholder consultative committee meeting. The committee, which consists of senior representatives from governments, industry and advocacy groups, will meet periodically and provide a forum for Environment and Climate Change Canada to inform key stakeholders of progress of the regulatory process and to receive input on key issues. 

On January 19, the CPA submitted comments regarding the development of the final regulations. Recommendations from the CPA included that the CFS be transparent, understandable and minimize red tape. The design of a compliance mechanism must be concise and easily adaptable. In terms of administration, costs for reporting must be minimal. 

The CPA also recommended that the CFS be fully harmonized with provincial regulations. It must reflect a level playing field for all stakeholders, including propane, and not advantage fuel sources that are not presently commercially viable at the expense of propane.  

Consumer choice and price affordability must be paramount considerations in the development of a national CFS. Stakeholders, such as the CPA, must be fairly and fully consulted in the development of any credits/trading system.

The CPA is planning to participate in a Technical Working Group that will be established. This will be a smaller group of experts that meet regularly and engage in the development of regulatory text.

In addition, the CPA expects to meet with officials from Natural Resources Canada to discuss the CFS and the propane industry.

 

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