UPDATE – Federal: Bill presented at the Commons to remove carbon tax for fuels used by farmers

Ben Lobb, MP for Huron-Bruce in southern Ontario, presented Bill C-234 entitled An Act to amend the Greenhouse Gas Pollution Pricing Act (GGPPA), in the House of Commons on February 7, 2022.

Lobb wants to exempt propane and natural gas used for grain drying, heating and cooling livestock barns and greenhouses, as well as irrigation and steam flaking, from the federal carbon tax for farms in Ontario, Manitoba, Saskatchewan and Alberta.

On February 7, CPA Interim President and CEO, Allan Murphy, wrote to MP Lobb indicating that the CPA has long been advocating for changes to the Act that would see propane exempted. Murphy added, “You will find attached a letter to the Minister of Finance dated January 18, in which we call on an exemption for propane. I would welcome an opportunity to discuss this very important issue with you at your earliest convenience.”

In that letter to Finance Minister Chrystia Freeland, Murphy stated that the tax rebate measures announced by the minister in her December fiscal update provide limited benefit for certain parts of the farming sector, particularly for crop drying applications.

Although it was a good decision by the government to return fuel charge proceeds directly to farming businesses in backstop jurisdictions via a refundable tax credit, starting in the 2021-22, the CPA has always advocated that the only solution that will offer relief to farmers and reduce GHGs is an exemption for propane.

The CPA will monitor MP Lobb’s proceedings and continue to engage with the federal government on exempting propane under the federal carbon tax for agriculture applications.

The Association will also continue to engage with the finance minister’s office to secure further changes to the GGPPA to other agricultural applications such as barn heating and include exemptions for propane for remote power generation and as it did for diesel and natural gas.