UPDATE – Federal: CPA continues to support fight for propane exemption for agriculture applications

The CPA will continue to support the efforts of Private Members Bill C-234 as it continues to make its way through the various stages of the House of Commons and the Senate before coming into law. 

Bill C-234 is sponsored by Ontario MP Ben Lobb. If passed, it would trigger changes to the federal law, the Greenhouse Gas Pollution Pricing Act (GGPPA), that currently exempts diesel and gasoline but not propane and natural gas from the carbon tax for the purposes of agriculture applications. 

The GGPPA affects farmers in Alberta, Saskatchewan, Manitoba and Ontario. Bill C-234 also expands the applications of the exemption to include heating barns and drying crops such as corn and grain. 

If passed, farmers can expect to save $9 million in carbon tax on propane in 2022-2023. With the yearly increases in the rate of carbon tax ratcheting up to $170 per tonne by 2030, the exemption will mean a savings to farmers of about $33 million for the year 2030-2031. The exemption for propane represents an aggregated total savings for famers from 2022-2023 to 2030-2031 of $189 million. 

Bill C-234 is currently before the House of Commons Agriculture-Agri-food Committee for review. The CPA has been granted stakeholder status and will file a submission in support of farmers as they fight to include exemptions for propane and natural gas under the GGPPA

We will also continue to collaborate with like-minded associations such as the Canadian Canola Growers and the Grain Growers of Canada. 

The CPA will also be assisting members in Alberta, Saskatchewan, Manitoba and Ontario in their support of the exemption by providing them with information they can share with their MPs as well as with members of the House of Commons Agriculture-Agri-food Committee. 

The CPA has consistently communicated to Department of Finance ministers and officials that the GGPPA is unfair, questioning the rationale for exempting diesel and gasoline but not propane and natural gas since the object of the act is ostensibly to reduce GHGs. The CPA also recommended changes in pre-budget submissions to the federal finance committee.