NEW – Federal: An act to amend the Greenhouse Gas Pollution Pricing Act passed in the House of Commons. But the game is not yet won

On June 23, the last sitting day before summer break, the House of Commons passed Private Members Bill, C-206, which requires that propane be exempted from the Greenhouse Gas Pollution Pricing Act (GGPPA). Unlike gas and diesel, propane is currently not exempted under the GGPPA for farming applications except for greenhouses.

Although the C-206 did pass in the House of Commons, it must be passed in the Senate and given Royal Assent before it becomes law. If that does not happen before an election is called, the legislation will not proceed and will have to be re-introduced in the next parliament.

The CPA has been vocal for over two years about the need for an exemption for propane under the GGPPA. So while the priority for the CPA is to see an exemption be applied to propane, it does appear that at least part of the efforts of the association to have changes made to the GGPA will bear some fruit, not in terms of an exemption but rather through rebates.

In her 2021 budget address, Finance Minister Chrystia Freeland indicated that changes will be forthcoming that will allow for a more level playing field for propane relative to gas and diesel through a rebate program that is estimated to total up to $100 million.

The CPA will be monitoring the C-206 and continue to push for a full exemption for propane under the GGPPA.