CPA Public Affairs
December 2020

UDPATE – Federal: CPA continues fight for propane exemption in agriculture applications

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The CPA is pushing forward with efforts to have exemptions for propane treated the same as gas and diesel in agriculture applications under the federal carbon tax.

In provinces where the Greenhouse Gas Pollution Pricing Act (GGPPA) is enforced such as Alberta, Saskatchewan, Manitoba and Ontario, propane does not enjoy the same tax exemptions from the carbon tax that heavier fuels do. As a result, the CPA has been pushing for a level playing field. The latest in that effort was a meeting with the House of Commons Finance Committee Chair Wayne Easter. On December 4, Easter met with CPA members Nancy Borden, Russ Duffee, Dan Kelly, and Guy Marchand.

The CPA reviewed with Easter its previous outreach efforts to have changes made to the GGPPA, which included meetings with the Department of Finance and the Ministry of Agriculture and Rural Development. The association stressed the severe financial impact that the tax is having on the farming community’s bottom line but also noted the potential long-term negative impact an increased usage of carbon intense fuels such as gasoline and diesel over that of low-emission propane. Considering that the objective of the GGPPA is to reduce GHGs, the actual effect could be an increase in emissions as farmers choose to take advantage of the exemptions the federal carbon tax offers through the use of gasoline and diesel.

There is currently a Private Member’s bill before the House of Commons that would see equal treatment for propane but the CPA told Easter that the time for such legislation to pass is too long and that changes to the GGPPA are needed immediately and no later than the next federal budget.

Further to the meeting with Easter, the CPA will be reaching out to Finance Minister Chrystia Freeland and Agriculture and Agri-Food Minister Marie-Claude Bibeau to once again make the case for fair treatment for propane under the GGPPA.


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