CPA Public Affairs
February 2021

NEW – ON: CPA proposes propane programs for Ontario 2021 budget

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On February 12, 2021, the CPA submitted a comprehensive report to the Ontario Ministry of Finance as part of the government’s pre-budget consultation process. The CPA proposed the government adopt seven programs utilizing propane as environmentally sound, economically viable options to immediately benefit Ontario citizens, communities and businesses and spur economic pandemic recovery efforts. 

These include:

  1. Reduce, and eventually eliminate, the provincial 4.3 cent/litre gas tax on auto propane.
  2. Establish a switch off oil tax credit to allow for home heating fuel choice and provide environmental benefits to remote and rural communities.
  3. Adopt a government fleet conversion program to realize significant GHG emission reductions by replacing current diesel and gas vehicles with propane vehicles.
  4. Adopt an incentive program for propane vehicle conversions by funding up to $5,000 per vehicle conversion.
  5. Finance a high-carbon school bus replacement strategy to fund the replacement of diesel- and gasoline-powered school buses with propane as a low cost and reliable fuel for student transport. 
  6. Amend government procurement processes to include propane to help level the playing field with other fuels.
  7. Promote renewable propane by explicitly listing it in all government clean fuel policies and programs.

In the CPA’s letter to the minister, the CPA  asked that “As governments, energy and auto industry leaders study significant investments in hydrogen fuel technologies to power the province and country for decades to come, the CPA asks your government to consider propane as a viable, ready source of domestic, low-emission, low-cost energy for home, business and vehicle use right now, that requires a small amount of government support to realize considerable economic and environmental benefits.”

CPA Ontario Government Relations Director, Marcelline Riddell, will continue to monitor the budget development and delivery process and keep members apprised of initiatives impacting the propane industry.


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