Bill C206 and Bill C234 – Exemption of propane and natural gas from the Greenhouse Gas Pollution Pricing Act

Resolution 5-22; Resolution 10-21;

Bill C206 is a private members bill introduced in September 2020, and has been reinstated into this session. This bill would update the Greenhouse Gas Pollution Pricing Act so that the definition of qualifying farming fuel means a type of fuel that is gasoline, light fuel oil, marketable natural gas, propane or a prescribed type of fuel.‍ (combustible agricole admissible)” This bill has passed in the House of Commons and is now at the second reading in the Senate (further along than Bill C234). It requires three readings in the Senate.

Follow the progress of Bill C206 – An Act to amend the Greenhouse Gas Pollution Pricing Act (qualifying farming fuel)

Bill C234 is a private members bill introduced in November 2021 that asks that propane and natural gas to be exempted from carbon pricing under the Greenhouse Gas Pollution Pricing Act rather than rebating a portion of the carbon tax paid. In addition to the changes proposed in Bill C206, this bill changes the “definition eligible farming machinery” to “property used for the purpose of providing heating or cooling to a building or similar structure, including those used for raising or housing livestock;” This bill is in the second reading in the House of Commons, and was last discussed on March 25, 2022.

Follow the progress of Bill C234 – An Act to amend the Greenhouse Gas Pollution Pricing Act

The Agriculture Carbon Alliance (ACA) was created in 2021 to ensure that Canadian farmer’s sustainable practices are recognized in the carbon discussions. On March 28, the ACA representing 13 national agriculture commodity and farmer associations was invited to participate in a meeting with the Standing Committee on Agriculture where various issues related to carbon pricing were discussed. At the meeting there was discussion around why an exemption would be preferred over the rebate system that is now in place for natural gas and propane.

  1. Administering rebates cost the government money and time
  2. Rebates add administrative burden to farmers
  3. Rebates are not sufficient ($1.70 rebate for $1000 in eligible expenses was mentioned by an MP but I am unable to verify)
  4. Carbon pricing disincentives investment in innovations that reduce carbon emissions by tying up potential capital and only returning a portion at tax time.

Minister Nixon in his response to Resolution 5-22 encourages farmers and ASBs to contact “… reaching out to senators who have been appointed to represent Alberta. Senators appointed to represent Alberta include: Patti LaBoucane-Benson, Paula Simons, Karen Sorensen and Scott Tannas.”. Contact information for Senators can be here. Minister Nixon further advises that ASBs “contact The Honourable Steven Guilbeault, MP, Minister of Environment and Climate Change Canada, and The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food Canada, to re-emphasize your concerns. Contact information for each Minister can be found at http://www.canada.ca by scrolling down to “Contact us.”

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