Overarching Question: What…

Overarching Question:
What policy options and actions should the government consider in the integrated energy resource plan to achieve Ontario’s vision for meeting growing energy needs, keeping energy affordable and reliable, ensuring customer choice and positioning us to be an energy superpower?

Ensure propane is treated fairly when policy programs are announced: In Ontario, there are over 211,000 households that use propane as their main energy source, a number that has tripled since 2018. In addition, the propane industry has generated over $570 million in revenue for the government, a number that has increased by over $180 million since 2018.

A fair approach to the transition to a lower emissions future must be in the form of a “dial”, not a “switch”. As cleaner and greener technologies improve and become more affordable, the dial can be turned higher. To date, the more aspirational “switch“ approach through a singular focus on electrification has left rural Ontarians as well as Indigenous and remote communities behind and risks expanding energy poverty in Ontario.

Many rural communities in Ontario lack affordable and lower emission energy choice. Energy poverty is a reality for those communities that do not have access to natural gas grid. The provincial government should examine current off-oil incentive programs with an eye to expanding its applications to affordable and lower emission propane energy. This is especially critical in rural and Indigenous communities that often depend on heating oil/diesel and do not have access to the natural gas grid.

Planning for Growth

Building on the recommendations of the EETP’s final report, what actions should be prioritized to enhance planning across natural gas, electricity, and other fuels?

Recommendation 24: The government should consider a mission-oriented approach to economy-wide industrial strategy that is centered on the development of a clean energy economy.

For Canada to reach its goal of net-zero by 2050, the development of renewable fuels is critical for reducing emissions from the transportation sector . There are significant new jobs and economic development opportunities linked to this sector. The CPA and CFA are ready to do our part in ensuring these opportunities are available for Canadians and request that the province look at bringing these jobs and sector to Ontario.

Renewable Propane

From the CPA‘s perspective, biofuels refers to renewable propane. The province implementing similar incentives to those in the United States for renewable propane production could be a catalyst for getting first-of-kind renewable propane production in Canada and drive down future biofuel costs through economies of scale. Ontario is also well positioned from a demand perspective and can and should be a leading jurisdiction in Canadian biofuel production.

According to information contained in a February 2024 study completed for the CPA (The Technical Feasibility of Decarbonizing Propane in Canada) the federal carbon fuel levy on propane was expected to raise more than $350 million dollars in 2023 alone across the sector. Despite this sizeable contribution, there currently has been no subsidy or investment support for any type of renewable propane production in Canada to date.

In addition, blending propane with renewable dimethyl ether (renewableDME) provides even cleaner solutions for such applications as heating and transportation.

Unlike natural gas or electricity, propane energy is available in all corners of the country, from coast to coast to coast via its unique national distribution system.

Propane offers immediate opportunities to reduce emissions and provides an affordable energy choice to Ontarians. That is why a truly comprehensive approach to GHG reductions in Ontario must include propane as part of our province’s energy portfolio.

For the propane industry to take the next step in reaching the goal of net-zero, there must be a level playing field within biofuels and across North America. That includes the government embracing an all-hands-on deck approach to reducing emissions in a technology neutral approach. For the propane industry to be successful in scaling up proven biofuel technologies such as renewable propane and propane blended with renewable dimethyl ether, there must be incentives in Canada that are on par with those offered in the United States.

Affordable and Reliable Energy

What further actions could the government take to maintain an affordable energy system for Ontarians throughout the energy transition?

The transition requires fairness and an all-hands-on-deck approach that offers a range of lower-carbon, affordable, dependable, and secure energy choices like propane to ensure that energy needs of all Ontarians are met. There is a role for all lower emission energy in the future of Ontario, but if we focus just on the “electrification of everything” it will exclude many Ontarians, especially in rural and remote areas.

Whether its providing incentives for propane or removing unfair incentives for other energies, Ontario’s propane industry wants a level playing field which will offer Ontarians affordable and lower emission energy choices no matter where they live.