CPA Public Affairs
April 2021

UPDATE – Federal: CPA makes the case for fixing oversights in the Greenhouse Gas Pollution Pricing Act

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In a letter to the editor published in the March 29 edition of the Hill Times, CPA President & CEO Nathalie St-Pierre once again called on the federal government to make immediate changes to the federal “backstop” or carbon tax under the Greenhouse Gas Pollution Pricing Act (GGPPA).

Currently under the GGPPA, farmers pay a carbon tax for using a cleaner fuel (propane) while gasoline and diesel are exempt.

Three key changes would address oversights in the original bill, while assuring that the intention of the GGPPA is not only respected but enhanced.

First, the GPPA should be changed to ensure that propane receives the same exemptions as any other fuel, such as gas and diesel, used in agriculture.

Second, the “exclusivity for farm machinery in Sec. 18 (part 7)” should be changed to include farming activities such as fuel used for heating hatcheries and barns, as eligible farming activities under the act.

Finally, the GGPPA should be changed to ensure that propane receives the same fuel charge exemption as natural gas and diesel for remote power plant operators under Sec. 36 of the act.

St-Pierre noted that the changes to the GGPPA should be made as soon as in the upcoming federal budget.

The CPA will continue to push for changes to the GGPPA.


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