CPA Public Affairs
September 2022

CPA petitions Agriculture Committee to help pass C-234

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Expected to be on the House of Commons’ fall agenda, Private Members Bill C-234 would force changes to the federal Greenhouse Gas Pollution Pricing Act (GGPPA), which currently allows for carbon tax exemptions for gasoline and diesel in agriculture applications but does not provide the same for propane or natural gas. 

Should C-234 become law, farmers that are subject to the tax in Alberta, Saskatchewan, Manitoba and Ontario will see propane exempted from the carbon tax for many agriculture applications. 

The CPA has strongly advocated its support for C-234 and its predecessor, C-206, that passed the House of Commons but did not receive Royal Assent before the 2021 election. 

In continuation of those efforts to support changes to the GGPPA, the CPA has written to the Chair of the House of Commons Committee and the Agriculture and Agrifoods Committee, which is presently reviewing the bill. 

In a letter to Committee Chair and Nova Scotia MP Kody Blois, SVP Government Relations Allan Murphy focused on much-needed savings for farmers. “With the yearly increases in the rate of carbon tax ratcheting up to $170 per tonne by 2030, the exemption will mean an annual savings to farmers of about $33 million by the year 2030-2031,” he said. “In aggregate, the exemption for propane represents a total savings for farmers from 2022-2023 to 2030-2031 of $189 million.”  

Murphy also noted the environmental advantages of expanding the use of propane. “By allowing for an exemption for propane, farmers will be able to take full advantage of a much cleaner energy source. Propane minimizes environmental impact with fewer emissions and 98% less particulate matter than diesel. Unlike diesel, propane vaporizes when released, eliminating the risk of contaminating water, ground or air.” 

Murphy stressed that C-234 should be advanced through the legislative process as soon as possible so that farmers can fully benefit from a cleaner energy choice while significantly reducing costs.  

The CPA plans to hold meetings to further discuss the issue when Parliament resumes in late September.


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