NEW – ON: Industry opposes impact of TSSA’s new fee structure

At the April 21, 2021 meeting of the CPA’s Ontario Committee, the propane industry provided  Mr. Sam Sadeghi, statutory director of fuels with the Technical Standards and Safety Authority (TSSA), with unanimous opposition to the regulator’s new fee structure that becomes effective May 1, 2021.

Regulated propane businesses received the new fee schedule the week of April 21, 2021 and were alarmed to find increases of over 20 per cent across the board. For some applications, such as bulk plants with two 30,000 (USWG) tanks and an ancillary dispenser on site, fees could more than double, from $5,500 to $12,000, due to the new category bands TSSA developed.

While the regulator contends that adequate industry consultation was conducted on this new fee model, it is clear the scheme was established in the absence of a modulization of the actual data (which the TSSA has on hand) on the current make-up of propane facilities in the province.

Several industry participants indicated they may have to reconfigure their sites to reduce costs resulting from the imposition of this new fee structure. They also said the new scheme will not improve safety outcomes and is at odds with the TSSA’s mission.

Participants expressed concerns for Ontario’s energy security as owners might look to reduce storage capacity to align with the new fee thresholds. The new fees are very untimely as Ontario experiences other threats to energy supplies, such as the current issues surrounding Enbridge Line 5.

They also said the fee structure could increase administrative costs for industry as licence holders look to decouple smaller dispensing tanks from their bulk plant operations and licence them separately. Also, any reduction in retail dispensing could reduce amenities in rural areas and impact tourism, particularly RV tourism, if owners remove the now very costly retail dispensing facilities.

Later that day, CPA President and CEO, Nathalie St-Pierre, who attended the meeting, sent a message to TSSA executives outlining the areas where significant discrepancies exist in the new few structure for the propane industry and requested immediate redress. The CPA will forward these concerns to Minister of Government and Consumer Services, Lisa Thompson, failing an appropriate, timely response from the TSSA.