Regulatory Affairs
March 24, 2022

UPDATE – ON: CPA gaining some wins as it grapples with TSSA on critical issues

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The CPA has proactively engaged on several critical files over the past month and provides the following updates:

  1. TSSA fees - CPA executives and Propane Advisory Council (PAC) member representatives met with Minister of Government and Consumer Services office staff on February 10, 2022, seeking redress for ongoing high fees charged to propane operators by the TSSA. The CPA’s presentation to Minister Ross Romano’s team outlined the issue of average fee increases of 30 percent for the sector resulting from the new fee structure imposed on May 1, 2021.

    Staff members were informed that since this time, the propane industry has contributed hundreds of thousands of dollars more in fees to the TSSA with no commensurate improvement in service or safety outcomes. Romano’s policy advisors requested more information on the issue and committed to responding after a thorough review of the documents provided. A comprehensive file was sent by CPA’s Director of Government Relations in Ontario, Marcelline Riddell, who will continue outreach until a response is provided.

    Meanwhile, on February 7, 2022, PAC Chair Dave Karn advised the TSSA that while the high cost of operating propane businesses in the province remains a priority for the industry, the Council supports the TSSA’s revised 2022 fee structure which addresses the inequity for some bulk plants (60,000 – 65,000 USWG) baked into the 2021 regime, while mitigating fee increases for smaller operators. This revised structure will be reflected in TSSA’s fee schedule posted after May 1, 2022.

  2. Underground tank applications process and costs – Since the TSSA added a specific provision (section 1.16, clause 7.8.1) to the Code Adoption Document amendments for Propane Storage and Handling, propane businesses wishing to install underground tanks for clients have absorbed an uncertain, costly ($1,200 per site on average), and unnecessary application and approvals process. The provision shifted authority for these installations from the manufacturer’s instruction to the TSSA as the Authority Having Jurisdiction.

    On March 3, 2022, CPA staff and impacted members met with the TSSA’s Statutory Fuels Director, Sam Sadeghi, and new Engineering Manager, Fuels, Gary Highfield, to discuss remedies for these installations. TSSA representatives admitted the Authority had been unprepared to administer this new requirement and that treating underground tank applications as variances is incorrect. Members stressed that these installations have been taking place for decades without change, other than the oversight shift in Ontario. The TSSA indicated a willingness to work together to determine a more equitable treatment for these installations and an appreciation for the information provided on Quebec’s treatment of these. A follow-up meeting is scheduled for May 2, 2022, when the CPA expects to hear how the TSSA plans to address the issue for the spring installation season.

  3. Propane Advisory Council (PAC) recruitment – The TSSA is revising its recruitment process for all Advisory Council Chairs. The new recruitment process will come into play when long-standing Chair, Dave Karn, vacates his post as PAC Chair later this year.

    The TSSA is also recruiting for a vacant position on the PAC for a cylinder exchange operator. PAC member Sue Hardy (Director, National Energy Equipment) will vacate her seat effective June 2022, opening a position in the large owner/operator/distributor category.

 

 

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