Public Affairs Report September 2019

Propane. A game changer for a low-emission Canada. Affordable and accessible now.

Canadian Propane Association PUBLIC RELATIONS REPORT SEPTEMBER 2019 Page | 1

For information, please contact the following persons:

Rebecca Keeler Vice-President, Regulatory Affairs and Safety [email protected]

Allan Murphy Vice-President, Government Relations [email protected]

Jean-François Duguay Director, Government Relations, Quebec and Atlantic Canada [email protected]

Marcelline Riddell Director, Government Relations, Ontario [email protected]

Darren Cunningham Director, Government Relations, Western Canada [email protected]

Canadian Propane Association – Public Affairs Report – September 2019

This material is protected by copyright and other laws. Canadian Propane Association © 2019. All rights reserved. No part of this report may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopying, recording or any information storage and retrieval system without written permission from the Canadian Propane Association. All content, graphics, charts, tables, text, and exercises in this workbook are the property of the Canadian Propane Association unless expressly credited to other sources.

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GOVERNMENT RELATIONS

1. MARKET DEVELOPMENT ...... 4 1.1 Remote and Indigenous Communities ...... 4 1.1.1 UPDATED – FEDERAL: Remote and Indigenous communities ...... 4 1.2 Fuel Switching ...... 5 1.2.1 NEW – PRINCE EDWARD ISLAND: Rural communities and fishing industry ...... 5 1.2.2 SUCCESS! NEW-BRUNSWICK: New energy efficiency programs for propane ...... 6 1.2.3 NEW – PRINCE EDWARD ISLAND: $10 million earmarked for fuel switching ...... 6 1.3 Auto-propane ...... 7 1.3.1 SUCCESS! NEW-BRUNSWICK: Propane school buses are on the road ...... 7 1.3.2 NEW – ALBERTA: Changes to converted auto re-certification ...... 7 1.3.3 NEW – PRINCE EDWARD ISLAND: Government plans to acquire propane fleet buses...... 8 1.3.4 UPDATED – ONTARIO: Requirement to train to refill auto propane vehicles amended ...... 8 1.4 Market Retention ...... 9 1.4.1 UPDATED – FEDERAL: Enbridge Pipeline 5 ...... 9 1.4.2 UPDATED – ONTARIO: Natural gas expansion ...... 10 1.4.3 UPDATED – ONTARIO: Toronto bylaws ...... 10

2 PUBLIC POLICY ...... 11 2.1 Federal ...... 11 2.1.1 UPDATED – Clean Fuel Standard in Canada ...... 11 2.1.2 UPDATED – Carbon pricing backstop ...... 12 2.1.3 NEW – 2020 Budget ...... 13 2.1.4 NEW – 2019 Election ...... 14 2.2 Provincial Cap & Trade, Carbon Tax and Green Plans ...... 15 2.2.1 UPDATED – ALBERTA: The end of the carbon levy ...... 15 2.2.2 NO CHANGES – BRITISH COLUMBIA: The Climate Change Accountability Act ...... 16 2.2.3 UPDATED – BRITISH COLUMBIA: Low Carbon Fuels Standard ...... 17 2.2.4 NO CHANGES – BRITISH-COLUMBIA: Clean BC Plan ...... 18 2.2.5 UDPATE – MANITOBA: Climate and Green Plan ...... 18

3 BUSINESS OPERATIONS ...... 19 3.1 All Provinces ...... 19 3.1.1 NO CHANGES – Hours of service regulations ...... 19 3.1.2 UPDATED – Source of ignition (smart meters, heat pump, etc.) ...... 19 3.2 Manitoba ...... 20 3.2.1 UPDATED – Office of the Fire Commissioner ...... 20 3.2.2 NEW – MANITOBA: 2019 Election ...... 20 3.3 Ontario ...... 21 3.3.1 UPDATED – Seasonal load restrictions ...... 21 3.4 Saskatchewan ...... 21 3.4.1 UPDATED – Gas fitters trade recognition and course in Saskatchewan ...... 21 3.5 Western Canada ...... 22 3.5.1 UPDATED – Propane supply for 2019 harvest ...... 22

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REGULATORY AFFAIRS

1. FEDERAL REGULATIONS ...... 23 1.1 Transport Canada ...... 23 1.1.1 UPDATED – Safe transfer of propane in federal facilities ...... 23 1.1.2 UPDATED – Transport Canada consultation on TDG Regulations (training) ...... 23 1.1.3 UPDATED – Standard TP 14877 ...... 24 1.1.4 UPDATED – Consultation on the international harmonization updates to the TDG Regulations ...... 25 1.1.5 NO CHANGES – Transport Canada consultations: New fees for TDG registration ...... 26 1.1.6 UPDATED – Equivalency certificates ...... 26 1.1.7 NO CHANGES – Electronic logging devices...... 27 1.1.8 NO CHANGES – Client Identification Database ...... 27 1.1.9 NO CHANGES – Safety Standard CSA B625 ...... 27 1.1.10 NO CHANGES – Federal motor carrier safety administration regulatory guidance ...... 28 1.1.11 UPDATED – ERG updates for emergency response procedures for propane ...... 28 1.1.12 NEW – Electronic shipping documents ...... 28

2. ENERGY REGULATIONS...... 29 2.1 Across Canada ...... 29 2.1.1 NO CHANGES – Regulations amending the energy efficiency regulations ...... 29

3. CODES AND STANDARDS ISSUES ...... 29 3.1 UPDATED – Certification for direct-fired vaporizers ...... 29 3.2 UPDATED – Pressure relief valve performance study for 420 Ib cylinders ...... 30 3.3 NO CHANGES – External PRV options ...... 31 3.4 UPDATED – Canadian Registration Number (CRN) consortium ...... 31 3.5 NEW – Gas fitters reconciliation agreement ...... 32 3.6 NEW – RECALL: Refillable 1 lb cylinder kits sold in Canada ...... 32 3.7 NEW – FEDERAL: Red tape reduction and regulatory modernization ...... 33

4 PROVINCIAL REGULATIONS ...... 33 4.1 Atlantic Canada: ...... 33 4.1.1 UPDATED – Regulatory harmonization ...... 33 4.2 British Columbia ...... 34 4.2.1 NO CHANGES – Propane Filling Plants and Container Refilling Centres ...... 34 4.3 Manitoba ...... 34 4.3.1 NO CHANGES – Mandatory entry-level commercial truck driver training ...... 34 4.4 Nova-Scotia: ...... 34 4.4.1 NO CHANGES – Installation Code for propane fuel systems on motor vehicles ...... 34 4.4.2 UPDATED – Technical Safety Advisory Board ...... 35 4.5 Ontario ...... 35 4.5.1 UPDATED – TSSA Consultation: Propane Orders Reassessment Report ...... 35

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GOVERNMENT RELATIONS

1. MARKET DEVELOPMENT

1.1 Remote and Indigenous Communities

ISSUE: Improve living conditions in Indigenous communities by switching from diesel and heating oil to low- emission propane. EXPECTED OUTCOMES: Develop and execute a strategy that will meet the needs of Indigenous communities and result in the development of partnerships with CPA members to replace diesel and heating oil with low-emission propane for home energy use. Pilot projects would be established to demonstrate the propane advantage in Indigenous communities. BACKGROUND: Provinces and the Government of Canada are committed to reducing reliance on diesel fuel in Canada’s remote, Northern and Indigenous communities. The objective is to move towards secure, affordable and clean energy to provide both environmental benefits and economic opportunities for these communities with the support of federal programming. The CPA has determined that the best approach to ensure that propane is proactively considered when addressing the reduction of GHGs in Indigenous and remote communities is to develop a strategy wherein the CPA will connect directly with communities themselves. The CPA is hopeful that the development of a community–oriented approach will result in expanding propane’s footprint in these remote communities. Many Indigenous communities are skeptical of the federal top-down approach to economic development. For the propane industry, establishing relationships and trust at the community level will be critical to the goal of expanding the footprint of propane in this sector. ACTIVITIES: Robert Lavigne, CPA’s Indigenous advisor, held a series of discussions in Thunder Bay in May 2019 with officials from the Major Projects Office of Indigenous Service Canada, Hydro One Remote Communities Inc., Matawa First Nations Management (MFNM) and Aroland First Nations. Lavigne followed up with additional information requested by these organizations. In addition, following the signing of a memorandum of understanding between Aroland First Nation and Canadian-based mining company Noront Resources, a letter was sent to Alan Coutts, CEO and president of Noront Resources promoting the use of propane for their future development. Lavigne also facilitated a meeting between Jonathan Neegan, Economic Development Advisor for MFNM and Pierre Fortin and Ryan Roulstan from Superior Propane to schedule visits, information exchanges and follow up meetings. Outreach in Northwestern Ontario is also underway. Responding to a request from CPA member Morgan Fuels, a PowerPoint presentation was prepared, specifically oriented for First Nations. Attempts to connect with the Grand Treaty 3’s office has been delayed due to administrative changes and forest fires within the area. In Eastern Canada, Lavigne has contacted the Nain Research Centre of Labrador with regards to Nunatsiavut’s Energy Security Plan.

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In Quebec, CPA contacted Chief Paul-Émile of the Manawan First Nation about their frequent electrical outages over the past several years and with Chief Curtis Bosum of Oujé-Bougoumou First Nation, whose heating infrastructures (wood and oil) are reaching end of life. The CPA held an initial meeting with Chief Junior Gould, the newly elected leader of the Abegweit First Nation in Prince Edward Island. Presented to Chief Gould were the benefits of incorporating propane as an opportunity to reduce GHGs and limit remediation costs caused by oil spills, which historically have been significant. Lavigne is developing an Indigenous Cultural Awareness webinar that will be made available to members of the CPA. NEXT STEPS: The CPA’s outreach to Indigenous communities will include coordinating visits with CPA members and those communities whose level of interest has moved beyond the initial positive response. At year end, the CPA will assess the challenges and the opportunities on the Indigenous file. The federal election may affect funding priorities by the federal government in terms of how to deal with issues such as contamination of land, air and water in Indigenous communities. Meetings with the newly elected federal government regarding Indigenous communities and the advantages of propane will be among priority topics for discussion.

1.2 Fuel Switching

ISSUE: Much of PEI’s rural communities and fishing industry is still currently dependent on home heating oil, electricity and wood – propane is a cleaner burning fuel and an excellent energy option for Islanders and fisherman. EXPECTED OUTCOMES: Expand the use of propane as a replacement for diesel and furnace oil in PEI’s rural communities and the onshore energy requirements of the fishing industry. BACKGROUND: Following the very successful Atlantic Seminar held in June in Crowbush, discussions have continued with PEI government officials and stakeholders about the various applications of propane. Among those consulted was the Minister of Fisheries and Community Affairs Jamie Fox. ACTIVITIES: In his capacity as Minister for Rural Communities, Minister Fox was informed that low-emission propane is a cleaner burning fuel and an excellent energy option for Islanders, many of whom are currently dependent on home heating oil, electricity and wood In his role as Minister of Fisheries, Minister Fox was briefed on the concept of fish plants across the province transitioning to propane either as a primary source of energy, replacing the use of heating oil or replacing diesel for backup generation. A meeting was held with members of the PEI Fishermen’s Association who are seeking a carbon reduction strategy. As was indicated to the minister, the CPA explained to the fishing group that propane provides a cleaner energy option than fossil fuels traditionally used in the fishing industry. At the Atlantic Seminar, Premier King indicated that his government believes there is a role for low- emission propane in various applications. NEXT STEPS: Given that the new government has been in office for several months and now better able to determine next steps, the CPA will be scheduling additional meetings with the Minister of Fisheries and Community Affairs and the members of the PEI Fisherman’s Association to gauge interest and determine next steps in switching to propane.

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The CPA is pleased to announce that propane has been added to the Commercial and Industrial sections of the New Brunswick Energy Efficiency program. ISSUE: While propane had been recognized for incentives in the residential portion of the NB Energy Efficiency program, it was not included in the commercial and industrial sectors. EXPECTED OUTCOMES: To ensure propane is included in the New Brunswick Energy Efficiency Program for reducing energy consumption in the residential, commercial and industrial sectors in the province. BACKGROUND: In April, CPA President & CEO Nathalie St-Pierre and Director of Government Relations, Québec and Atlantic Canada Jean-François Duguay met with NB Environment and Local Government Minister Jeff Carr to discuss the game-changing advantages of propane and to ensure the inclusion of the propane industry in provincial policy and program development. ACTIVITIES: Follow up meetings were held with Climate Change Program Coordinator Jeff White and Deputy Minister, Climate Change and Indigenous People Lindsey Rogers. It was suggested that the CPA meet with Beth Pollock at New Brunswick Energy Efficiency to ensure propane is included in the commercial and industrial sectors of the program. CPA met with Pollock in September. NEXT STEPS: As the N.B. government looks to develop new programs in conjunction with the federal government’s Green Infrastructure investment fund such as fuel switching to replace inefficient fuels with cleaner and economical alternatives (like substituting coal or heating oil for propane) the CPA will stay involved to promote the inclusion of propane.

ISSUE: Ensure that the advantages of propane and its many applications are given equal weighting as other low emission energy sources as the PEI government develops programs for its climate change strategy. EXPECTED OUTCOMES: To work with the province of PEI to develop specific programs that will see low- emission propane displace traditional fuels in a multitude of applications. BACKGROUND: The Prince Edward Island government released its annual operating budget for 2019-20 earlier this summer. The government said this budget was drawn from the best ideas and priorities identified by all parties in the Assembly as well as partners from outside of government. Of interest to CPA Members is the government’s plan to advance its Climate Action Plan, Climate Adaptation Plan and Energy Strategies, which will see $10 million worth of incentives allocated for fuel switching in existing homes and businesses. ACTIVITIES: Since the new government was elected, the CPA has met with Premier King, Minister of Environment and Climate Change Brad Trivers, Minister of Fisheries and Community Services Jamie Fox and Minister of Social Housing Ernie Hudson. Discussions have also been held with senior bureaucrats such as Paul Ledwell, clerk of Executive Council and secretary to Cabinet. In all cases, the purpose was to make these officials aware of the economic and environmental advantages of the expanded use of propane. The CPA has been advised that when the Legislature returns in the fall, a Legislative Committee will hear testimony on the issue of climate change and the strategies from various stakeholders, including the propane industry, in terms of how to address this issue.

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NEXT STEPS: Given the keen interest expressed by the Premier to reduce emissions and propane’s possible role in doing so, the CPA will be meeting with senior officials to discuss specific programming ideas. These could include variations of the “Off-Oil” and a “Green Commercial Vehicle Program”, models that have already been developed. In addition, the CPA expects to have an opportunity to appear before the Legislative committee to discuss the advantages of propane in its many applications including, residential, commercial, government buildings, transportation, agriculture and the fishery.

1.3 Auto-propane

ISSUE: Most school buses in New Brunswick still run on diesel. Replacing these diesel buses with auto propane buses will create a healthier state for the environment and the children/bus drivers and help the government save significant costs over the long-term. EXPECTED OUTCOMES: To expand the use of propane school buses in Atlantic Canada, beginning with the Province of New Brunswick and expanding throughout Atlantic Canada. BACKGROUND: The CPA believes that using propane as a fuel for school buses is a step in the right direction and is hopeful that many of the buses the New Brunswick government is planning to order for the future will be running on propane. ACTIVITIES: The CPA worked closely with staff at Superior Propane and Roland Gallant, regional service co- ordinator with the New Brunswick Department of Transportation to ensure the completion of the project. The buses are based in Moncton and will serve its school region, with half of the buses transporting children from the French district and the other half from the English district. As the holder of the propane contract, Superior conducted training sessions in late August for bus drivers and mechanics for the buses to be ready to transport children on the first day of school. The buses will refuel at two Superior Propane facilities in the Greater Moncton area, one located in Moncton and one in Dieppe, NB. On August 30, 2019, the province of New Brunswick officially launched the propane school buses in Moncton, NB as a pilot project. The CPA worked with Department of Transportation communication staff to coordinate media coverage regarding the launching of the buses. NEXT STEPS: The CPA will monitor the school’s experience with the buses, as well as promote the purchase of additional propane school buses for the next order. The work being done with New Brunswick will assist other provinces such as PEI and Nova Scotia to include propane school buses in their fleets and to ensure that no training courses are required. The CPA will also continue to advocate for the removal of the training requirement to make using propane buses more accessible.

ISSUE: One of the outcomes of the new government’s focus on the elimination of administrative red tape is the Alberta government’s discontinuation of re-certifying vehicles that have been converted to propane fuel every five years.

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EXPECTED OUTCOME: Inform members and trainers.

BACKGROUND: Alberta Municipal Affairs had mandated that all transportation vehicles converted to propane power be re-certified every five years and were required to have a current label with an expiry date affixed to the vehicle in order for it to be run on Alberta roads. The Municipal Affairs department has announced that the propane gas fuel system on converted vehicles no longer has to be requalified at regular intervals. The requirement (CSA B149.5-15) to have a provincial label on the vehicle remains but those stickers will no longer feature an expiry date. ACTIONS: The CPA notified members of the change. NEXT STEPS: Verify if PTI Course material needs updating.

ISSUE: Ensuring that the Government of Prince Edward Island considers all factors in its purchasing decisions and that it will follow through on its stated intention to put propane buses into service as early as the 2020-2021 school year. EXPECTED OUTCOMES: The Government of Prince Edward Island purchases propane buses and moves them into service as early as the 2020-2021 school year. BACKGROUND: On June 13, newly elected PEI Premier Dennis King addressed the CPA Atlantic Seminar to update members on his government’s plans to include propane as part of its energy policy development. In his address the Premier noted, “There is a lot of work being done by our government to address climate change and its impacts to our province, including identifying new ways of doing things to reduce our impact on the environment. We need to be bold as we tackle the challenge of reducing greenhouse gases. Shifting to lower emission fuels, like propane, is a sensible step in that direction. As an example, in our school system, we are looking at adding propane-powered buses to our school bus fleet, as early as the fall of 2020.” Provincial officials from PEI have also been in communication with the Province of New Brunswick as they monitor the roll out of the 16 propane-powered vehicles launched August 30 in that province. ACTIVITIES: Since the Premier’s address, the CPA has been communicating with CPA members and PEI government officials, including Wilf MacDonald, senior fleet manager with the Department of Transportation. NEXT STEPS: The CPA anticipates meeting with transportation officials, including MacDonald and Deputy Minister of Transportation and Public Works Darren Chaisson. The purpose of the meeting is to review the New Brunswick school bus roll out and determine PEI’s intentions regarding propane school bus acquisition for the 2020-2021 school year. As in New-Brunswick, the CPA will look to ensure that training courses will not be required.

ISSUE: To fill a propane vehicle in Ontario, an individual had been required to hold a propane plant operator (PPO) certificate or Record of Training (ROT) under the Fuel Industry Certificates Regulation (O.Reg.215/01)

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EXPECTED OUTCOME: Level playing field with other fuels and the training requirement to refill auto propane vehicles removed from the regulations. BACKGROUND: The CPA asked for the removal of regulatory barriers through the repeal of the Technical Standard and Safety Act, R.S.O, 2000 regulations requirement to train for refilling auto-propane vehicles. ACTIVITIES: On July 1, 2019, Section 55 of the Regulation was amended. As a result, individuals filling propane vehicles at cardlock/keylock facilities no longer require an ROT. Instead, the facility holder must maintain an ROT for persons filling propane vehicles and must provide appropriate training at least once a year. The achievement of these amendments will help open the door for further discussions with TSSA regarding other amendments that are required for the expansion of auto propane fleets in Ontario and with other provinces across Canada. NEXT STEPS: The CPA is preparing an online course allowing members to ensure their clients are trained as per the new regulation. A meeting with TSSA is scheduled for October to discuss the CPA’s approach and proposal.

1.4 Market Retention

ISSUE: The call to decommission Enbridge Pipeline 5 and Michigan’s Governor Whitmer threatening to shut it down. EXPECTED OUTCOME: Unclear at this point. Enbridge and Governor Whitmer’s administration are at an impasse with hard-line positions on both sides. BACKGROUND: Several organizations are calling for the decommissioning of Enbridge Pipeline 5, citing environmental reasons. Built in 1953, the Line 5 Straits of Mackinac Crossing has operated without incident for more than 60 years. It transports light crude oil and natural gas liquids that help to fuel quality of life for people in Michigan. This pipeline plays a vital role in the Canadian propane industry. ACTIVITIES: The CPA has been monitoring the issue diligently: June 6: Enbridge issued a statement indicating its intent to file suit in the Michigan Court of Claims to “establish the constitutional validity and enforceability of previous agreements.” June 27: Michigan’s attorney general filed suit to shut down Line 5, noting that it poses “an unacceptable risk” and that waiting 10 years for a replacement tunnel is too long. The Attorney General’s office also sought the dismissal of Enbridge’s suit regarding the validity of its agreement with the previous administration (Gov. Rick Snyder). July 7: Whitmer created an Energy Task Force to examine the “overall energy needs and how they are currently being met; identify and evaluate potential changes in energy supply and distribution; and formulate alternative solutions to meet the UP’s energy needs – including alternatives to the current distribution of propane through Line 5, which poses an unacceptable threat to The Great Lakes.” August 15: Michigan Attorney General’s office issued a statement saying that Enbridge Inc.'s Line 5 pipeline tunnel agreement with the previous administration is unconstitutional. Michigan’s position is that the language in the agreement Enbridge had with the Snyder administration didn’t adequately reflect its contents: “First, the title did not provide fair notice to legislators and the public of substance of the bill. Second, it improperly combined two unrelated purposes: the Mackinac Bridge and a proposed ‘utility tunnel’ meant to house a new Enbridge oil pipeline.”

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NEXT STEPS: The Michigan’s Court of Claims expected to either decide on the Enbridge suit or proceed to spoken arguments. The CPA will continue to monitor the issue as it develops. Engaging with communities that would be affected by closure may be considered.

ISSUE: Natural Gas Expansion when supported by taxpayers’ money or through ratepayer’s contribution is clearly unacceptable to the propane industry in Ontario. EXPECTED OUTCOMES: Intervene to support the growth of the propane industry. BACKGROUND: The Ford government began implementing natural gas expansion projects approved by the former Liberal government in January 2017, which allocated nearly $100 million to support projects in northern, rural and First Nations Ontario communities. Ten projects were identified for funding and two of these have been announced in 2019. The first in Fenelon Falls on February 1, 2019 and the second in Chatham-Kent on March 11, 2019. Furthermore, the Ford government adopted a regulatory regime that requires all ratepayers to contribute to specific expansion projects in Ontario. ACTIVITIES: The CPA worked with members to actively campaign against this approach with their local representatives and has monitored implementation carefully. In July 2019, members informed the CPA of misleading and inaccurate information being disseminated by Enbridge Gas on the Fenelon Falls project. As a result, on July 12, 2019, the CPA sent a formal letter of complaint via legal counsel requesting an inquiry on this issue. Key Ontario Ministers and MPPs were also copied on this letter. NEXT STEPS: The CPA will continue to monitor these projects and will advise members on the outcome of the request for an inquiry into Enbridge’s business practices in Fenelon Falls.

ISSUE: The City of Toronto enacted Zoning By-law No.569-2013 on May 9, 2013. The comprehensive zoning by-law includes several clauses that are problematic to the propane industry and its customers, including separations between propane storage facilities and other specific land uses, and storage capacities for vehicle fuelling stations. The CPA is a party to appeals to the Ontario Municipal Board on these issues. EXPECTED OUTCOMES: Propane storage and handling facilities be allowed to operate within the City of Toronto, and to prevent other municipal jurisdictions enacting similar restrictions to those in place in Toronto. BACKGROUND: The city is trying to establish a “road map” for moving appeals forward. All by-law issues related to Employment Zones are not near the top of the proposed “road map” but it is not yet known if the city will be dealing with the outstanding by-law issues sequentially or if they are merely grouping the issues to deal with them according to the amount of activity and petitioning by the appellants. The industry is facing challenges around storage of propane in quantities equal to or greater than 5,000 USWG (regardless of whether in propane tanks, cylinders, fuel cells or vehicle fuel tanks) on properties. They are considered a propane transfer, handling and storage facility use, and are only permitted in the Employment Heavy Industrial Zone (EH). ACTIVITIES: After reviewing the complied list of by-law regulations, the CPA indicated it will participate in the Local Planning Appeal Tribunal (LPAT) hearings of By-law 569-2013 with respect to “Vehicle Fuel Station” and “Propane” issue focused phases. The CPA is currently working through the LPAT hearing process to advocate for amended language to require consultation with propane facilities in the event of a proposed land use change.

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The CPA has submitted evidence for the upcoming hearing. NEXT STEPS: The CPA will be represented during the hearing to be held September 24, 2019 to continue to advocate for changes in the bylaw to support the propane industry.

2 PUBLIC POLICY

2.1 Federal

ISSUE: Canada is developing a Clean Fuel Standard (CFS) to reduce Canada’s GHG emissions through the increased use of lower carbon fuels and alternative technologies – identify opportunities and mitigate regulations that could penalize the propane industry. EXPECTED OUTCOMES: That propane be recognized within the CFS for its low-emission properties and that propane be categorized as a credit generator and an alternative to higher carbon intense fuels. BACKGROUND: The government released the Design Paper in December 2018, confirming that propane is eligible for credit generation – a great win for the propane industry. The Regulatory Design Paper noted, “Actions that generate credits, including fuel switching by end-users in the liquid stream: credits can be generated when some fuel users switch from a higher carbon intensity fuel to a lower carbon intensity fuel by changing or retrofitting combustion devices when a liquid transportation fuel is displaced by natural gas, propane or a non-carbon energy carrier (e.g., electricity, hydrogen) or when fuels are switched along the production chain of a fossil fuel.” ACTIVITIES: On June 28, 2019, Environment and Climate Change Canada (ECCC) released their Proposed Regulatory Approach for the Clean Fuel Standard. The CPA participated in a webinar on July 10, 2019 to ask questions and better understand the approach. The CPA sought out member input and submitted comments on the document on August 26, 2019 to ensure propane is a credit generating mechanism in the regulations. As a member of the CFS Technical Working Group, the CPA was invited to file comments on the Proposed Regulatory Approach based on the Regulatory Design Paper that was published in December of 2018. The CPA submitted comments on elements of the proposed approach that focused on: Exemptions to remote communities: • There should be an incentive to switch to cleaner fuels such as credit generation in remote communities that can go towards funding more clean energy projects. • Low-emission propane must be included in fuel charge relief for remote power plant operators/individuals that provide power generation in remote communities. Full Lifecycle Assessment Modelling Tool: • For assessing carbon intensity value for propane there should be a splitting of the carbon intensity values for refined propane and propane produced from natural gas. The interim credit reference carbon intensity for natural gas and propane, which will be reviewed when the gaseous and solid class regulations will be published: • The CPA believes that its critical that research be done on the full lifecycle of propane in Canada for an accurate CO2e number. It is also important that research be done on renewable propane for

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feasibility and an accurate CO2e number. The CPA would be very interested in participating in these studies in the Canadian context. Specific end-use fuel switching in transportation: • The CPA believes that fuel switching could be beneficial in other sectors, not just transportation, such as agriculture, construction and others. This would help these industries switch from diesel and gasoline to cleaner fuels such as propane. • The development of policies and regulations to fight climate change must reflect sound environmental policy, not old-style tax policy. The mistake of the Greenhouse Gas Pollution Pricing Act (GGPPA) must not be repeated. The CPA will continue to participate in the CFS process and work to mitigate regulations that could penalize the propane industry and optimize opportunities for propane as a low-emission fuel. NEXT STEPS: The association will continue to update members accordingly on this important issue and as ECCC releases updates to the regulations. The CPA will also be organizing a meeting of CPA producer members to discuss shared priorities and concerns about the gaseous stream stage of the CFS, which the CPA will present to ECCC.

ISSUE: The federal government’s implementation of a federal carbon tax and the effects on the propane industry. EXPECTED OUTCOMES: To ensure no undue administrative burden from the development of a backstop program and to ensure a level playing field for the propane industry. BACKGROUND: Provinces that have a carbon tax, such as British Columbia, or a cap and trade system like in Québec or plan to impose a carbon price through a cap and trade system, such as Nova Scotia, are not affected by the Federal carbon pricing. It is estimated that at $20-per-tonne, the carbon tax in 2019 will result in a cost increase for example, of 4.42 cents per litre for gasoline, 3.91 cents per cubic metre for natural gas and 3.10 cents per litre for propane in each of the non-compliant provinces. On June 28, 2019, Ontario’s top court ruled that the federal government is within its rights to impose a carbon pricing system on provinces like Ontario that do not have one because climate change is a matter of national concern. The Ford government plans to appeal the ruling at the Supreme Court. A. Manitoba: No PST on carbon Tax ACTIVITIES: The CPA is working with all affected jurisdictions to require the same exemption. Furthermore, the CPA is also pushing the federal government to ensure that propane be exempt from the fuel charge for the agriculture sector (see below). B. Exemption for farmers Farmers are getting relief from the fuel charge for fuels used in tractors, trucks and other machinery. Fuel purchases eligible for exemption must be delivered and stored on the farm. Fuel must be used exclusively on the farm in eligible farm machinery. That means anything used for farming including farm trucks, tractors, stationary or portable engines, etc. Cars or equipment used to heat or cool a building do not qualify for the exemption. The Canada Revenue Agency website has the full listing of eligible machinery and vehicles. Partial relief of the fuel charge (i.e., 80%) is applied to natural gas and propane that are exclusively used to operate commercial greenhouses to grow plants, including vegetables, fruits, bedding plants, cut flowers,

Canadian Propane Association PUBLIC RELATIONS REPORT SEPTEMBER 2019 Page | 13 ornamental plants, tree seedlings and medicinal plants. For relief to be applicable, all or substantially all of the greenhouse building must be used to grow plants. Exemptions are extended, with conditions, to users of aviation fuels in the territories and power plants that generate electricity for remote communities. The CPA believes the fuel tax exemption for farmers doesn’t go far enough and is advocating for full exemption of propane. ACTIVITIES: On May 22, CPA’s Chair Dan Kelly, Past Chair Guy Marchand, President & CEO Nathalie St- Pierre and VP Government Relations Allan Murphy met with officials from the Department of Finance led by Gervais Coulombe, senior director, Excise Sales Tax Division with the Tax Policy Branch. It became clear during the meeting that the GGPPA was much more a piece of tax legislation than genuine environment legislation. CPA officials indicated two specific examples. First, the failure to exempt low-emission propane in agricultural applications, as was done with gas and diesel, was an obvious example of the Department of Finance and Environment Canada working at cross- purposes. The second was the government’s decision not to include relief for propane use as power generation in remote communities. In the end, finance officials were not prepared to make changes to the GGPPA in the immediate term. In the opinion of the CPA, this reflects a disconnect between Environment Climate Change Canada and the Department of Finance. If the goals of reducing GHGs emissions are to be achieved, federal officials must be aligned on policies that will help achieve those goals. NEXT STEPS: Including low-emission propane in any federal legislation that is aimed at fighting climate change will be a high priority in terms of items of discussion in the next federal government.

ISSUE: 2020 Federal Budget – provide recommendations for the pre-budget submission EXPECTED OUTCOMES: That the House of Commons Finance Committee will consider the recommendations of the CPA as part of its due diligence in advising the finance minister as he/she prepares the 2020 federal budget. BACKGROUND: In August 2019, the House of Commons Finance Committee received submissions from interested individuals and organizations indicating their recommendations for the upcoming federal budget. Each year a theme is identified. For Budget 2020 the theme is Climate Emergency: The Required Transition to a Low Carbon Economy. ACTIVITIES: Again, this year, the CPA filed its recommendations. In her submission, Nathalie St-Pierre noted: “Including propane now in policy and programming development to transition to a lower carbon intensity economy and meet the Paris targets will result in an immediate energy solution to reduce GHGs while maintaining and growing jobs in Canada. Canadian-produced propane is perfect for applications as diverse as heating commercial and residential buildings, fuelling vehicles, drying crops and powering mines, amongst many others. While other energy options require largescale infrastructure spending or further technological development, propane is ready to go today.” The recommendations included: • Providing cleaner and healthier living conditions in Indigenous communities by funding the conversion of residential, public and commercial buildings in Indigenous communities from diesel/furnace oil to low-emission propane.

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• Assistance for homeowners who wish to reduce both energy costs and greenhouse gases by switching from furnace oil to low-emission propane. • The federal government provide tax credits tax towards the conversion of commercial vehicles in Canada from traditional fossil fuels to low-emission propane. • Federal tax policy must ensure that propane qualifies for the same exemptions as gas and diesel in the Greenhouse Gas Pollution Pricing Act (GGPPA). The GGPPA should remove exclusivity for farm machinery and expand fuel use for other farming activities such as heating hatcheries, barns, etc. as eligible farming activities under the Act. NEXT STEPS: The next phase of the budget consultation process will be dictated by the election results in October. A new Committee of Finance will be struck after the election in October. That committee will have the option of canvassing for ideas again. If government changes, CPA expects to take part in a new consultation process.

ISSUE: To promote the propane advantage with federal political parties EXPECTED OUTCOMES: That propane will be part of environmental/energy platforms of political parties in the 2019 federal election. By increasing the industry’s profile as a provider of a low-emission fuel during the federal election campaign, the CPA will leverage that increased exposure when the CPA conducts post- election meetings with the elected government as well as incumbent and newly elected MPs. Senators will be part of that outreach effort as well. A new mandate provides the CPA an important opportunity to deliver its message. BACKGROUND: Over the past few years, the CPA has made significant strides in its efforts to ensure there is a greater understanding at all levels of government of the increasingly important role propane can play as part of Canada’s energy portfolio. The upcoming federal campaign will provide opportunities for the propane industry to reach out to the major political parties ACTIVITIES: The CPA continues to be frustrated by the current government’s indifference towards propane as an important energy fuel from an environmental and economic perspective. In the run up to the federal election in October, the CPA held meetings with the Official Opposition to discuss the importance of propane as an important element to the Conservative’s environmental platform. In April 2019, the CPA met with Laura Smith, senior policy advisor to Conservative Leader Andrew Scheer as well as Karina Rolland, Scheer’s manager of stakeholder relations. The meeting focused on the propane advantage, the frustration with the current government’s lack of consideration of propane and the expectation that propane would actively be considered by a Conservative government. Smith recommended that CPA meet with relevant critics to discuss the issue. On May 8, CPA Chair Dan Kelly and CPA staff Allan Murphy met with Conservative Shadow Cabinet MPs. Shannon Stubbs, Jamie Schmale and Karen Vecchio. On July 17, a follow up meeting was held with Smith to discuss the propane advantage. All major parties have received the Propane Advantage document and a request for meetings. The propane advantage was among issues raised with then Natural Resources Minister Sohi when CPA met with him on September 6 in Red Deer. At the time of writing, proposed meetings with the Green Party and NDP had yet to be confirmed. During the election, the CPA is pursuing a strategy focused on outreach to all major federal political parties and providing materials members can use to reach out to local candidates. The materials being created for the outreach include:

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The PROPANE ADVANTAGE – For a Low Emission Canada: An information document that can be used as an effective “leave behind”. This brief highlights the importance of propane as part of Canada’s energy portfolio and the industry’s economic impact in Canada. It also reviews the many low-emission applications of propane and provides a brief overview of policy recommendations. It has been sent to all major political parties. Electronic copies will be made available to members via the CPA website which they can print and share with their local candidates. A Candidate’s Guide to the PROPANE ADVANTAGE: This document focuses on the fact that the expanded use of propane creates jobs, produces low-emission energy and helps in the fight against climate change. It includes detailed policy recommendations and supporting information that will help educate candidates about the advantages of propane. Electronic copies will be made available to members via the CPA website which they can print and share with their local candidates. Political Party Questionnaire: The Leaders of all major political parties will receive a copy of a CPA Questionnaire. The questions will reflect the priorities identified by the CPA. The hope is that some of the answers received will be in support of CPA priorities which will be very helpful for post-election outreach activities. PROPANE ADVANTAGE Video: A video will be made available to CPA members for their websites and social media activities. It will also serve as a communication tool for the CPA beyond the election campaign. The video provides a visual of the various applications of propane which make up the PROPANE ADVANTAGE – from the traditional uses such as cooking and home energy, to growing markets like transportation and shows a glimpse of the future with a visual depicting renewable propane. NEXT STEPS: Congratulatory letters will be sent to the new cabinet once it is sworn in. Requests for introductory meetings will be included in the letters with telephone and email follow up. A new cabinet is likely to be sworn-in within two weeks following election. However, the return of the House of Commons may not occur until late in 2019. The status of the new government (incumbent/new and majority/minority) may factor in the timing. In any case, the CPA will look to engage with MPs as soon as possible following the campaign.

2.2 Provincial Cap & Trade, Carbon Tax and Green Plans

ISSUE: The United Conservative government eliminates the carbon levy with Bill 1 - the Carbon Tax Repeal Act. OBJECTIVE: Make the case for propane as a vital part of the energy industry revitalization. BACKGROUND: The Kenney Conservatives won the election by promising the end of the provincial carbon tax, pipeline construction, and a return to prosperity. The UCP government has cancelled the carbon levy and programs funded by the levy. The federal backstop carbon tax will be applied to Alberta on January 1, 2020; Premier Kenney has joined Ontario, Saskatchewan, Manitoba and New Brunswick in fighting this tax. UCP Attorney General Doug Schweitzer has filed suit on behalf of Alberta against the federal government to determine the constitutionality of carbon taxation. Activities: The UCP government had a short spring session to pass legislation/introduce policy that met most of the main parts of their election platform; those that pertain to propane include: • Bill 1: The Carbon Tax Repeal Act.

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• Bill 2: The Open for Business Act – giving Alberta workers more freedom, and balancing Alberta labour laws to allow for job creation. The CPA is looking at this Bill as a means to allow greater mobility of workers in trades like gas fitting. • The introduction of the Job Creation Tax Cut (in the first budget) – lowering business taxes on employers from 12% to 8% over the course of four years. • The Red Tape Reduction Action Plan – cutting government red tape by one-third, reducing costs, speeding up approvals. Other platform commitments to note that can impact the propane industry: • An energy policy to re-vitalize Alberta’s oil and gas industry promising to speed up approvals. • Investments in apprenticeships, the skilled trades and vocational education. Full details of this program will be unveiled in the first UCP budget but are reported to include: o Quadrupling the number of full-time apprentices from 1,567 to 6,000 by 2023 through $6 million in annual funding. o Dedicating $1 million for trades scholarships for 1,000 students who show potential in high school. o Appointing a skills for jobs task force to report to the government on how to reform education to expand opportunities. o Working with other provinces to harmonize provincial mobility for tradespeople and apprentices. NEXT STEPS: The CPA has good lines of contact to both the minister and deputy minister (DM Grant Sprague was a speaker at last year’s CPA Alberta Seminar) and will be reaching out to communicate with both. • The CPA is reaching out to all newly elected and re-elected MLAs with a welcome letter and invitation to meet. • The CPA to be active participants in the red tape reduction exercise to streamline regulatory burden in Alberta. • The CPA is planning to contribute to the new Alberta Energy Policy to show the new government the value and export opportunities that exist in the propane sector.

ISSUE: Bill 34 - Climate Change Accountability Act EXPECTED OUTCOMES: Ensure propane is considered a viable emerging fuel for transportation use in British Columbia. BACKGROUND: Bill 34 repeals the Greenhouse Gas Reductions Act (2008); the bill sets a 40% GHG emissions reduction objective by 2030 (from a 2007 benchmark) and a 60% reduction by 2040. It includes bi-annual climate change reports to the legislature and grants the minister the authority to implement industry-specific GHG reduction targets. The CPA believes that Bill 34 could present opportunities for propane as an alternative auto fuel because of its strong distribution network and the need to achieve the new GHG reduction objectives. The bill guides all provincial efforts in GHG reduction, and the CPA is particularly interested in how the new GHG reduction targets will impact the Low Carbon Fuel Standard (LCFS). The CPA believes that if the government and the ministry will allow greater latitude for low GHG emitting fuels – not just electric vehicles – propane could greatly assist in reducing GHG’s in British Columbia.

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ACTIVITIES: The CPA is following the regulations to be implemented with the Climate Change Accountability Act closely, including changes to the LCFS, home heating, exports and agriculture. NEXT STEPS: The government has announced the Clean BC Plan, the policy designed to meet the targets in the Climate Change Accountability Act. The 2019 Budget includes $902 Million in funding for initiatives under the Clean BC Plan. CPA has reached out to Minister Mungall’s office to discuss the Energy Rebate program that will pay a homeowner to replace a propane furnace with electric, even though the propane furnace reduces GHG emissions as well. CPA has sent a letter to Education Minister Rob Fleming to ask for a meeting on propane-powered buses as the province has a School Bus replacement program under the Clean BC Plan.

ISSUE: The Ministry of Energy, Mines, and Petroleum Resources requested comments on their Compliance Pathway Assessment discussion paper released December 2017 that is intended to be a baseline document of information to support the work of the ministry as it relates to their Low Carbon Fuel Standard (LCFS). In July 2019, following the lead of the Clean BC Plan and the Climate Change Accountability Act, the LCFS has issued three discussion papers (General Amendments, Compliance Penalties, and Refinery Improvements) to propose changes in the regulations that govern the program. EXPECTED OUTCOME: To make a strong argument for propane as a viable low-emission emerging fuel option for transportation in B.C. BACKGROUND: The original 2017 discussion paper was a document designed to compile information on various current and future fuel sources for motor vehicles. It was part of a three-year consultation cycle to “ensure that the BC Low Carbon Fuels Standard continues to be informed by the best available science”. The three new discussion papers are designed to build in greater accountability in the program. Many of the proposed amendments mirror the California Air Resources Board Low Carbon Fuel Standard in building in more stringent definitions around compliance credit generation and penalty structure to ensure compliance. ACTIVITIES: In late May 2019, the Ministry of Energy, Mines and Petroleum Resources consulted industry on the LCFS and its Avoided Emissions Policy. The CPA participated with a submission. The CPA also provided separate submissions to the General Amendments and Compliance Penalty papers. In August, working closely with members on this issue, the CPA consulted with LCFS Director Dr. Michael Rensing and his staff to discuss the CPA submissions on General Amendments and Compliance Penalties. The ministry assures the CPA that they see the efforts of the propane industry working well with the LCFS and the opportunity to work with the LCFS team to provide clearer definitions and information regarding the carbon intensity of propane, which is currently higher due to their calculation that propane comes from oil refining rather than natural gas processing. A lower CI number can lead to greater credit generation for CPA member companies participating in the program. Finally, the CPA sent a letter to Energy Mines and Petroleum Resources Minister Michelle Mungall to discuss areas of concern within the discussion papers and requested a meeting. NEXT STEPS: The CPA, with the BC Committee, will continue to work with the ministry on the LCFS to provide as much accurate information as possible. The CPA will be involved with the LCFS and Clean BC plan initiatives to ensure propane is regarded as a viable alternative fuel.

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ISSUE: In December 2018, the Government of British Columbia released its Clean BC Plan aimed at reducing climate pollution, while creating more jobs and economic opportunities for people, businesses and communities. EXPECTED OUTCOMES: Maximize potential opportunities for members. BACKGROUND: The Clean BC Plan is the action plan to meet the CCAA targets; the government says its plan will reduce GHG emissions by 18.9Mt or 75% of its 2030 target. The remaining 25% required to meet the 2030 GHG reduction target will be announced through initiatives yet to be announced. The plan is intended to shift homes, vehicles, industry and businesses in British Columbia away from fossil fuels to low-carbon fuels, and increase the energy efficiency of homes businesses, and the transportation sector. The Clean BC Plan received $902 million over three years in the 2019 Budget, of that amount $223 million is designated for an enhanced Climate Action Tax Credit for low income families, $299 million to contingency funding for projects under development, leaving $354 million remaining for operating funds and $26 million for capital expenditures. ACTIVITIES: The CPA is following the implementation of the Clean BC Plan and has: • written to Minister of Education Rob Fleming to meet on the School Bus Acquisition Program and to the individual school boards allotted buses in this fiscal year. • written to Energy Mines and Petroleum Resources Minister Michelle Mungall on perceived prejudices in the Energy Rebate Program regarding replacing propane furnaces. The CPA intends to position propane as a highly efficient, low GHG emitting fuel that reduces carbon pollution and advocate funding for propane backup generators for solar projects. NEXT STEPS: The CPA has evaluated the Clean BC plan and has identified some early opportunities and challenges, such as organizing a lobby day for ministers and MLAs in Victoria. CPA continues to evaluate Clean BC Programs as more details on programs are revealed.

ISSUE: Manitoba’s Climate and Green Plan, a made-in-Manitoba response to the federal carbon tax. EXPECTED OUTCOME: To convey to the government the importance of propane to the agricultural, residential and construction sectors in Manitoba. BACKGROUND: The Climate and Green Plan had included a carbon tax that would have had propane exempted in many industrial sectors, including agriculture. Since mid-summer 2018, Manitoba had been non-compliant with the federal requirement for a carbon pricing program. Premier Brian Pallister has indicated he will follow Ontario in support of the legal challenge initiated by the Saskatchewan government to define the rights of the provinces in areas of natural resources and taxation. ACTIVITIES: With the current Manitoba election, the CPA sent the Propane Advantage document to all party leaders to advise of the role propane plays in many industrial sectors of the provincial economy. Follow up letters were sent with requests to meet with the policy advisors of each of the Progressive Conservatives, NDP and Manitoba Liberal parties. NEXT STEPS: The CPA will be sending letters to all newly elected MLAs with the Propane Advantage document and a meeting request to key ministers to continue the dialogue with the Manitoba government to gain their support and push for a tax exemption on propane at the federal level.

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3 BUSINESS OPERATIONS

3.1 All Provinces

ISSUE: Propane delivery bottlenecked in the winter of 2018 due to a ten-day period of extreme cold weather combined with treacherous driving conditions and trains running with smaller loads causing backlogs. EXPECTED OUTCOME: Create a prearranged permit or waiver condition accepted within the National Safety Code and provincial regulations to allow for an extension of hours of service during periods of extreme weather. BACKGROUND: In the United States, the National Propane Gas Association created a solution whereby the U.S. enacted a system to exempt drivers in periods of emergency from the hours of service provisions in certain states. They have most recently used this waiver following the effects of Winter Storm Frankie, with thirty-nine states participating. NEXT STEPS: The CPA will continue to discuss the issue with the federal and provincial governments, maintaining good collaboration and open communications with the goal of a national exemption standard.

ISSUE: Some propane companies are bearing the cost when a source of ignition is installed beside an existing propane installation in Canada EXPECTED OUTCOME: Find practical solutions to this issue and ensure that regulatory requirements are properly enforced and that propane companies do not bear the cost. BACKGOUND: Regulatory requirements stipulate that a source of ignition is required to be at no less than 10 ft (3 m) from a propane installation. When propane installations are in place before the installation of a source of ignition (e.g., smart meter, heat pumps), from the CPA’s perspective, the introduction of this new equipment requires that the utilities/companies install at no less than 10 ft (3m) from a propane installation or that they support all the costs associated to moving propane installations. Unfortunately, that is not always the case. ACTIVITIES: In Ontario, the issue was discussed at a February 2019 meeting of the TSSA’s Propane Advisory Council (PAC). The Ministry of Government and Consumer Services conducted a data gathering exercise on the size and scope of the issue in the province and potential effective remedies will be considered once the data is available. Initial findings from this exercise seem to indicate that the size and scope of the issue is such that it can be handled on a case-by-case basis in the province. However, this may be addressed at the next PAC meeting to be held in October 2019. As the CPA’ s Government Relations Director is now a PAC and RRG member, the CPA will be better positioned to monitor and report on this issue. Nova Scotia is not installing smart meters at this point, but the CPA is monitoring the situation in case there is any development. The same applies for sources of ignition, such as heat pumps. New-Brunswick Power (NBPower) has always considered the standard meter as a source of ignition. As such, the minimum distance of 10ft (3 m) has been followed by propane businesses for new installations in the province of New Brunswick for awhile. However, with the arrival of heat pumps, New Brunswick CPA members strongly insist that when propane installations are in place before the installation of a source of ignition, the utilities/installation companies must install the devices no less than 10 ft (3 m) from an

Canadian Propane Association PUBLIC RELATIONS REPORT SEPTEMBER 2019 Page | 20 existing propane installation. If it’s found that they failed to do so, they must be obligated to support all costs associated with moving the source of ignition or the propane installation. NEXT STEPS: The CPA will continue engaging the various provinces to ensure they safeguard members’ rights and will continue to share information with members to use in case of violations by electric installers.

3.2 Manitoba

ISSUE: Lack of communication and transparency from the Office of the Fire Commissioner of Manitoba to our member companies resulting in slow approvals and incurred costs. EXPECTED OUTCOMES: Ministerial awareness and an indication that the government will work with the propane industry in Manitoba to ensure resolution to outstanding issues and the implementation of a constructive regulator-industry process. Elimination of systemic regulatory bias against the propane industry in Manitoba. BACKGROUND: CPA members have had tremendous difficulty in obtaining information on appeals, clarifications on regulations, approvals and other requests into the Office of the Fire Commissioner (OFC), details vital to their businesses to ensure appropriate service to their customers. Manitoba members can experience month-long waits for replies. For years, they have raised their concerns with Fire Commissioner Dave Schaefer and with then Assistant Deputy Minister Dave Dyson; to date, nothing has changed regarding how matters are dealt with between the companies, the inspectors and the OFC. Propane customers are often left to decide if working with propane may prove to be too difficult, then they must move to higher cost, less environmentally friendly fuels for expediency because their businesses cannot wait. This is a regulatory bias that not only hurts the propane industry, but many other businesses in Manitoba that depend on propane. ACTIVITIES: The Office of the Fire Commissioner (OFC) and members have created a process to oversee issues important to the industry in a co-operative manner. There have been six meetings of the Working Group to discuss issues of concern to both sides and finding resolution, identifying solutions or need for additional information. The OFC and Technical Safety Saskatchewan have been meeting to determine best practices and harmonization of processes; this is considered a good move as our members in Saskatchewan have a very good working relationship with their regulator. NEXT STEPS: The Working Group has been established with accountable terms of reference to ensure that issues are addressed equitably and meetings will continue after the Manitoba election to realign the working group for the fall period, which is particularly important during grain drying season.

ISSUE: The Fall 2019 Manitoba election gave CPA a great opportunity to promote the propane advantage with Manitoba political parties EXPECTED OUTCOMES: Ensure that political parties understand the benefit and need for propane in many of the province’s primary industries. Be a trusted advisor to the next Manitoba government.

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BACKGROUND: The Progressive Conservative government identified propane as an important energy source from an environmental and economic perspective in their economy. With extensive exemptions provided within the proposed Manitoba carbon tax, propane saw a favorable status with the government. Through education of the Manitoba political parties, the CPA hopes to expand that perspective. ACTIVITIES: The CPA sent letters to outline the Propane Advantage to all campaigns to communicate directly with policy leaders. NEXT STEPS: CPA will reach out to the re-elected Conservatives for follow up to become a trusted advisor to the agriculture, growth, enterprise and trade, environment and sustainable development ministers of the re-elected Manitoba government.

3.3 Ontario

ISSUE: Ontario load restriction periods limit truck capacities on certain roads during the spring months (Highway Traffic Act, R.S.O., 1990). EXPECTED OUTCOMES: To work with the Ministry of Transportation on viable options so that Ontario propane suppliers can deliver fuel onside during restricted load periods. ACTIVITIES: The CPA has been working to raise and resolve this issue with the former and current governments. While initially advocating for an exemption for propane as exists for other essential services, the CPA learned that municipal infrastructure budgets would prohibit government from considering expanding the exemption class to propane in the near future. Therefore, in June 2019, CPA Board Chair Dan Kelly, Budget Propane Manager Jacco Bos, and CPA Government Relations Director Marcelline Riddell met with MTO policy staff to discuss workable options for propane fuel delivery for the upcoming restricted load season. The meeting was productive as MTO staff conceded that the 1990 legislation is unworkable for today’s industry. Jacco Bos offered options to increase per axle load weights in which MTO was very receptive. CPA was informed that MTO is actively working on a resolution to this issue, conducting consultations over the summer and requested we re-engage with them at the end of the summer for an update and to determine next steps. In early September, Marcelline Riddell followed-up with MTO staff on this issue, requesting an update on the consultation status. The CPA is awaiting a reply, including status on consultations and timeframes for addressing this issue. NEXT STEPS: The CPA will follow up in September 2019.

3.4 Saskatchewan

ISSUE: Saskatchewan does not have a suitable gas fitters training course in the province; member- companies must send apprentices to be trained out of province to the British Columbia Institute of Technology (BCIT) in Vancouver at great cost. As of June 2019, BCIT has reduced its allotment of out of province students, creating an even greater need for training in Saskatchewan. As this issue evolved, the need for gas fitters to be recognized as a trade in Saskatchewan, was also identified. EXPECTED OUTCOME: Gas fitters be recognized as a trade in Saskatchewan and a certified training course that meets industry needs, be offered in the province.

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BACKGROUND: Gas fitting as a trade is not recognized in Saskatchewan. The Ministry of Government Relations is currently making regulatory changes that will recognize gas fitting as a trade in SK, which will assist in the development of an industry appropriate course for the province. The Saskatchewan Apprentice and Trade Certification Commission claim that the plumbing and pipe fitters program offered at the Saskatchewan Polytechnical Institute for Applied Science and Technology is sufficient, but the propane industry does not share that belief as the curriculum has only a single gas course. ACTIVITIES: The Standards Council of Canada’s Provincial-Territorial Advisory Committee (PTAC) has been tasked by the Canadian Free Trade Agreement’s Regulatory Reconciliation and Cooperation Table (RCT) to develop a reconciliation agreement on gas fitter licensing across the country. In consultation with CPA members, the CPA is working with this committee regarding provincial issues with gas fitters to ensure the agreement is aligned with CPA member goals. NEXT STEPS: The CPA will continue to push Saskatchewan Apprenticeship and Training to commence an industry level gas fitter’s course in the province. The CPA will also continue to put this issue in front of the Saskatchewan government and PTAC to stress the industry’s needs by: • Coordinating information and recognizing the resources and approaches to engage with the Saskatchewan government on this issue. • Following the gas fitter license regulatory amendments process and offering CPA support. • Writing to the ministers of immigration and career training and advanced education, outlining the need to recognize the trade and create a suitable program in the province. • Drafting letters for Saskatchewan members to send to their local MLAs to apply pressure on the government to create the need for recognition and a program. • Determining a role for the Propane Training Institute in the education of gas fitters in Saskatchewan.

3.5 Western Canada

ISSUE: High demand on propane supply for grain dryers, exceeding the industry’s distribution capacity. EXPECTED OUTCOMES: To identify long-term solutions to manage seasonal variances in propane demand in the agriculture industry. ACTIVITIES: The CPA is in contact with agriculture groups and governments in each province to monitor the situation in 2019. The CPA is also communicating with member companies to ensure adequate supply for farmers in areas where they need additional propane to keep grain dryers running. NEXT STEPS: Monitor the harvest season and support where necessary to ensure best outcomes.

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REGULATORY AFFAIRS & SAFETY

1. FEDERAL REGULATIONS

1.1 Transport Canada

ISSUE: Requirements for the transfer of propane are not consistently applied in Canada, particularly in federal facilities. EXPECTED OUTCOMES: Support the review and promote appropriate regulatory requirements for the safe transfer of propane from rail to truck on federal facilities. BACKGROUND: In the CPA’s view, safety requirements should be consistently applied to different types of transfers, which is not currently the case between federal and provincial facilities. Provincially regulated facilities require extensive approvals and regular inspections. Federally regulated facilities do not require the same level of safety. For example, the following are key requirements that are contained in CSA B149.2 – Propane storage and handling code but not in the Transportation of Dangerous Goods Regulations: • Defined setbacks and clearances • Electrical equipment classification • Specific safety protection on transfer systems (e.g., shear point) • Fencing and barrier protection (e.g., posts, guardrails, barriers) A recommendation was made to, and rejected by, Transport Canada, as it was deemed outside of their jurisdiction. Given the CSA B149.2 Technical Committee and the Interprovincial Gas Advisory Council also deemed they did not have jurisdiction, the question of who has jurisdiction needs to be answered, and then the requirements harmonized. ACTIVITIES: June 2019, CPA met with the National Public Safety Advisory Committee to discuss next steps. It was agreed to reach out to Transport Canada directly. Transport Canada notified that they are still working on the issue but have made no developments at this time. NEXT STEPS: Continue the dialogue and follow up with a strategy, if required, to ensure appropriate measures are adopted for the safe transfer of propane from rail to truck on federal facilities.

ISSUE: Current provisions of Part 6 of the TDG Regulations are largely administrative in nature, where a valid certificate does not guarantee that a holder has the knowledge and skills to adequately perform his/her job functions. EXPECTED OUTCOMES: Improve the training requirements while preventing unnecessary administrative and financial burden on members and their employees. BACKGROUND: Transport Canada is working to implement a Competency Based Training and Assessment (CBTA) requirement in Part 6 of the TDG Regulations. The CBTA standard is being developed by the Canadian General Standards Board (CGSB) with input from the regulated community. The standard will: • Identify specific functions (classifying, handling, transporting) and describe the specific tasks that need to be done for each function; and

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• Describe the observable outcomes for each task and the criteria used to judge whether the required level of performance has been achieved for the observable outcome. ACTIVITIES: CPA submitted comments in March 2019 to continue pushing for a standard that will prevent unnecessary administrative and financial burden to members. The CPA achieved its goal and a standard was released in draft form on August 26, 2019 for public review. The deadline for comments on the draft standard is October 24, 2019. The CPA has been actively contributing to the standard development and has ensured that it will not affect members’ capacity to continue providing the PTI course, Transportation of Dangerous Goods – Propane/LPG Specific – 100-03, and that there would be no additional requirements adding costs or administrative burden. The CPA is also pleased to advise that the PTI course will meet the updated requirements, with a few small modifications required. NEXT STEPS: The next meeting to review comments from the public is scheduled for December 3-4, 2019. The CPA will continue to actively participate in the development and finalization of the standard and will update the 100-03 PTI course as appropriate.

ISSUE: On July 2, 2019, Transport Canada published an updated standard and has interpreted section 61 to mean to load all rail cars to a summer ullage table. If a car is loaded to a winter ullage, and if the car cannot be shipped directly to the customer’s yard due to capacity issues or other transportation issues, then the interpretation of the regulation indicates that the car in question is now going to storage (even if it is only temporary, on the way to the final destination). When going to storage, the requirement is that the car must be loaded to summer ullage, which means the cars must always load light, by about 30 – 40 barrels. This interpretation is being questioned by members and is under review with the CPA and Transport Canada. EXPECTED OUTCOME: Support members in obtaining adequate solutions and modifications made to the standard to reflect transport realities. BACKGOUND: The standard covers large means of containment used in the handling, offering for transport and transport of dangerous goods by rail. Highlights of the updated standard include: • Improved usability by incorporating external technical requirements, such as those in Protective Direction 34, 37 and 38. • Updated dangerous goods list to align with the 19th edition of the UN Model Regulations. Adjusted special provisions to reflect updated transportation requirements for sulphuric acid (UN1831) and hydrogen peroxide (UN2014 / UN2015). • Updated technical requirements for Class 3, flammable liquids and the new tank car specification known as TC 117. • Improved harmonization between tank car requirements in Canada and the U.S., including tank car approvals, tank car design requirements and a new mechanism to secure One Time Movement Approvals (OTMA) – Category 2. • Updated material of construction requirements for tank cars, including the addition of stainless steel, normalized steel for dangerous goods classified as a toxic inhalation hazard (TIH) and improved thickness requirements for new tank car construction. The CPA was a member of the consultative committee charged with updating the standard. The CPA informed members about the publication of the new standard. The CPA also informed members that Transport Canada has signed an agreement with the Canadian General Standards Board (CGSB) to return

Canadian Propane Association PUBLIC RELATIONS REPORT SEPTEMBER 2019 Page | 25 the TP 14877 standard to a National Standards of Canada under the CGSB (CAN/CGSB-43.147). The CPA has submitted to the National Standards of Canada to be part of the committee; however, it is currently on hold. ACTIVITIES: The CPA has been receiving several comments from members regarding the inadequacy of the interpretation by Transport Canada. NEXT STEPS: The CPA is currently in discussions with Transport Canada on interpretation of this clause.

ISSUE: Transport Canada is currently consulting on proposed amendments to the Transportation of Dangerous Goods Regulations (TDGR). EXPECTED OUTCOME: Ensure consistency between the different modes of transport, facilitate international trade of dangerous goods, and reduce regulatory burden on consignors and carriers who deal with dangerous goods in Canada. BACKGROUND: Transport Canada regularly updates the Canadian regulations to harmonize where possible, on the following: • United Nations Model Regulations on the Transport of Dangerous Goods (UN Recommendations) • International Civil Aviation Organization Technical Instructions (ICAO TI) • International Maritime Dangerous Goods Code (IMDG Code) • Title 49 of the Code of Federal Regulations of the United States (49 CFR), under the Regulatory Cooperation Council work plan Highlights of the proposed amendments: • Reducing regulatory barriers on cross-border trade with the United States by: o allowing U.S. placards when dangerous goods are reshipped by road or rail in Canada; o adopting the U.S. exemption for pressurized tanks used in water pump systems; and o introducing requirements to mark means of containment that carry non-odourized liquefied petroleum gases. • Reducing the compliance burden on industry by: o allowing the display of reduced size labels on a cylinder such as “banana labels”; and o allowing the transportation of UN3175, Solids Containing Flammable Liquid, N.O.S. using flexible intermediate bulk containers 13H3 and 13H4. • Referencing the 2018 version of Transport Canada Standard TP 14850E for small containers, which: o updates packing instructions to align with the 20th edition of the UN Recommendations; and o allows the use of non-standardized containers that exceed 450 litres in volume to transport batteries. • Improving the communication of dangerous good hazards by: o requiring the display of the marine pollutant or lithium battery marks on overpacks; and o requiring the display of orientation arrows for liquid dangerous goods. The amendments proposed are meant to align with the most recent changes in the UN Recommendations (20th Revised Edition), ICAO TI (2019-2020) and IMDG Code (2018).

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The 21st Revised Edition of the UN Recommendations will be published in the spring or summer of 2019. Therefore, TC will include further proposals that account for changes in this edition when the proposed amendment is pre-published in the Canada Gazette, Part I. ACTIVITIES: The CPA discussed with members and submitted feedback to Transport Canada. NEXT STEPS: The CPA will continue to engage with members and Transport Canada to provide support to align and move forward with the goal of harmonization.

ISSUE: Over the next few years, Transport Canada is introducing new fees, modernizing existing fees and streamlining fees for some services across Transport Canada. EXPECTED OUTCOME: Fees for the propane industry remain affordable and manageable. BACKGOUND: Transport Canada is undertaking an agenda to modernize its programs. Some services have been provided to individuals and industry free of charge, while others have not updated their fees in over 20 years and do not reflect what it costs the department to deliver those services. In October, Transport Canada initiated consultation on the potential introduction of new fees for its TDG Means of Containment Facilities Registration Program. ACTIVITIES: The CPA informed members of the consultation period, shared consultations documents, and encouraged members to provide feedback. NEXT STEPS: Proposed regulations are expected to be published in Part I of the Canada Gazette in early 2020. The CPA will continue to participate in consultations, to promote the interest of the propane industry and update members when new information is available.

ISSUE: On behalf of its members, the CPA holds six equivalency certificates. EXPECTED OUTCOME: CPA members abide by the rules governing these equivalency certificates and they continue to be recognized by Transport Canada. BACKGROUND: When issued, equivalency certificates are normally valid for a period of two years. Application for their renewal must be submitted to Transport Canada three months before they expire. ACTIVITIES: Equivalency Certificate SU 11248 Updated - (Ren. 5) authorizes members of the CPA to transport propane cylinders without having to display the dangerous goods safety marks required for small means of containment. Transport Canada has made administrative updates, with no changes to the clauses on Equivalency Certificate SU 11248 (Ren. 5). The previous Equivalency Certificate is hereby revoked and superseded by the new equivalency certificate, which is available on the CPA website. The CPA is also currently applying for an equivalency certificate under CSA B339 for the use of rivetted metal plates during requalification of series-4 containers. The docket was successfully approved at the CSA B339 committee and will be updated in the next addition of the Code. In the meantime, the CPA will ensure the renewal of all existing equivalency certificates. NEXT STEPS: Apply for the rivetted plates equivalency certificate, and renew certificates expiring in 2020. Continue to remind members that the terms and conditions of each equivalency certificate must be adhered to at all times.

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ISSUE: Transport Canada proposes to mandate the use of electronic logging devices. EXPECTED OUTCOME: Prevent an unnecessary administrative and financial burden on members and their employees. BACKGOUND: In 2019, Transport Canada finalized the rules for the use of logging devices (Canada Gazette, Part II). In June 2021, Transport Canada will require new logging devices for use in all commercial motor vehicles. ACTIVITIES: Implementation: Motor carriers and drivers have two years to prepare for the implementation of ELDs. Motor carriers need that time to select, acquire and install the ELDs, test the devices and train their drivers on how to use them. For those drivers who would be using an electronic recording device (ERD) immediately before the ELD amendments come into force, an additional two-year transitional period has been included in the regulations. During this transitional period, drivers and motor carriers would be exempt from having to comply with the new ELD provisions. After the two-year transitional period, full compliance with the proposed amendments will be required. NEXT STEPS: The CPA will continue to monitor for publication in Part II of the Canada Gazette.

ISSUE: Transport Canada plans to implement a Transportation of Dangerous Goods Client Identification Database (TDG CID). EXPECTED OUTCOME: Ensure the proposed regulation is adapted to members’ activities. BACKGOUND: TDG CID is being developed to address recommendations from the Office of the Auditor General and Transportation Safety Board to improve knowledge and awareness of its transportation of dangerous goods stakeholder base. Implementation: Implementing this database will require changes to the TDG Act and its regulations. Following this, TDG expects to launch the database via an online platform in 2020 or 2021. UPDATE: None at this time. NEXT STEPS: The CPA will continue to promote the interest of the propane industry and update members when new information is available.

ISSUE: In November 2018, the CSA has released the draft of the update to safety standard CSA B625, Portable Tanks for the Transport of Dangerous Goods for a 60-day consultation period. EXPECTED OUTCOME: Member awareness BACKGOUND: Safety standard CSA B625 sets out the requirements for UN portable tank design and manufacture and the requirements for UN, IM and IMO portable tank selection, use, inspection, testing and repair. The standard also prescribes registration requirements by Transport Canada of facilities, design reviewers and independent inspectors for conducting the activities within the scope of the standard. ACTIVITIES: The CPA informed members of the publication and provided highlights of the draft standard, and then later when it was reaffirmed. NEXT STEPS: Continue to work on the CSA committee to report back to members.

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ISSUE: Transportation of Dangerous Goods (TDG) Directorate is requesting comments on regulatory guidance that should be repealed, replaced or modified. EXPECTED OUTCOME: Provide comments to support CPA members. Regulatory reduction when appropriate. BACKGROUND: Transportation of Dangerous Goods (TDG) Directorate is requesting comments on regulatory guidance that should be repealed, replaced or modified on behalf of the Commercial Vehicle Safety Alliance (CVSA) and the Office of the Secretary of Transportation at the U.S. Department of Transportation (DOT). NEXT STEPS: The CPA will monitor the feedback provided and will ensure the review of the report.

ISSUE: The current boiling liquid expanding vapor explosion (BLEVE) evacuation distances in ERG 2016 (page 369) go up to 2.2 km, based on the worst-case scenario of debris from the explosion travelling long distances. EXPECTED OUTCOME: Provide reasonable emergency response advice in the ERG, in the case of a BLEVE, to allow for first responders to make educated decisions on emergency protocols. BACKGROUND: The current BLEVE distances of the ERG 2016 (pg 369) were developed based on a technical document, published in 1995, titled BLEVE Response and Prevention. This was prepared by Transport Canada, Canadian Association of Fire Chiefs and the Propane Gas Association of Canada Inc. The BLEVE distances are based on a minimum time to failure on severe torch fire impingement on the vapour space of a tank in good condition. These numbers are all approximate values and should be used with caution. NEXT STEPS: Reach out to ERAC for support. Develop a package for CANUTEC to help them develop a BLEVE scenario. Identify the timing for the 2024 ERG revision.

ISSUE: Transport Canada is proposing to move to electronic shipping documents. EXPECTED OUTCOME: Modernize the shipping document system, while reducing the negative administrative and financial aspects of the shift to electronic systems. BACKGOUND: Transport Canada is looking for input as they try to identify timely and flexible solutions to update the Transportation of Dangerous Goods Regulations with paperless alternatives which will: • Improve supply chain management, • Reduce paper-burden, and • Increase compliance and efficiency for industry nationally and internationally. Transport Canada is proposing a three-year sandbox between 2019 and 2022 to evaluate the feasibility of using electronic shipping documents as an alternative to the paper version by allowing selected businesses to use them. Transport Canada opened consultation on electronic shipping documents in July of 2019 on their new consultation page “Let’s Talk.”

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ACTIVITIES: The CPA notified members of the new consultation page via the Regulatory Affairs newsletter. NEXT STEPS: Transport Canada is planning a pilot project for electronic shipping documents. The CPA plans to participate by engaging members who are interested.

2. ENERGY REGULATIONS

2.1 Across Canada

ISSUE: Proposed energy efficiency regulations were published in Part 1 of the Canada Gazette in October. EXPECTED OUTCOME: Improve the energy efficiency of 12 heating and ventilation product categories. BACKGOUND: The proposed amendments would introduce or update minimum energy performance standards, testing standards, and reporting requirements. The amendment would affect residential and commercial product categories, four of which are currently regulated federally. Specifically, the amendment is designed to introduce: • minimum energy performance standards, labelling and reporting requirements for seven new product categories; • more stringent minimum energy performance standards and/or update testing standards for four currently regulated product categories; and • labelling and reporting requirements for one new product category. This amendment affects residential and commercial space heating, fireplaces, and other similar applications. According to the government, it is expected to increase the administrative costs by $72,161 in annualized average administrative costs to affected businesses. It would also impact 10 small Canadian manufacturers of affected products. The majority of these are not expected to face incremental costs, as they already manufacture compliant products and are demonstrating compliance with similar requirements in other jurisdictions. Small manufacturers that are expected to assume incremental costs have been engaged in consultations but have not raised any compliance issues associated with the size of their company. ACTIVITIES: The CPA informed members of the consultation period, shared consultations documents, and encouraged members to provide feedback. NEXT STEPS: Monitor for publication in Part II of the Canada Gazette and update members when new information is available.

3. CODES AND STANDARDS ISSUES

3.1 UPDATED – Certification for direct-fired vaporizers ISSUE: In August, the only Canadian certification document (ULC/ORD C1349) for direct-fired vaporizers was set to expire and be withdrawn. EXPECTED OUTCOME: Ensure authorities having jurisdiction accept ULC listed vaporizers BACKGROUND: Direct-fired vaporizers have been in use in Canada for decades, long before ULC/ORD C1349 was issued, and represent a very important market segment requirement for propane companies

Canadian Propane Association PUBLIC RELATIONS REPORT SEPTEMBER 2019 Page | 30 and installations where they must be used in order to provide the vaporization capacity required to meet the propane energy demand downstream. The CSA ORD, which was established and implemented in 2013, was set to expire and be withdrawn in August 2018. This would have prevented vaporizer manufacturers from applying the UL mark to their product and thus potentially preventing the use of direct-fired vaporizers that have been used for generations in Canada. In 2013, ULC/ORD C1349 – Guide for the investigation of LP-GAS Vaporizers – was issued. This was the first instance of a document which was used by the approval agencies to test and certify vaporizer products for the Canadian market. In addition to compliance with this standard, current direct-fired vaporizers comply with the USA version of the standard, UL 1349. In July 2018, the UL ORD was resurrected for another 5-year period until 2023. Any outstanding issues with industry, standards and AHJ’s surrounding the requirement to vent relief valves away for a source of ignition, in both the CSA B149.1 and ULC1349-ORD, is still being addressed by the CSA B149 committee, according to an update provided by Floyd Running at the CPA’s March 7, 2019 Regulatory Affairs Meeting. ACTIVITIES: The CPA had discussions with members and the Chair of CSA B149.2. A docket proposing that the US version of the standard UL 1349 and the UL marking on the vaporizers be adopted for use in the Canadian market was submitted to the CSA B149.2 Technical Committee. NEXT STEP: Await the decision from the CSA B149.2 Technical Committee. If the proposed change is approved, lobby authorities having jurisdiction to accept UL listed vaporizers. Meet with those involved to identify CPA’s next steps if the UL standard is not accepted by the CSA B149.2 Committee.

3.2 UPDATED – Pressure relief valve performance study for 420 Ib cylinders ISSUE: The 10-year replacement interval required for 420 Ib cylinders has resulted in an increase of dangerous goods being transported on the road and an increase in the cost of propane. EXPECTED OUTCOME: Increase the replacement interval to 25 years for pressure relief valves (PRV), while still maintaining the integrity of the cylinders. BACKGOUND: The Transportation of Dangerous Goods Regulations (TDGR) adopts the CSA Standard B340: Selection and use of cylinders, spheres, tubes, and other containers for the transportation of dangerous goods Class 2. The code requires that the CGA S-1.1 (or S7): Pressure Relief Valve Device Standards is followed, which requires the 10-year replacement interval. ACTIVITIES: Batelle was contacted to provide a proposal for a study on PRVs for the 420 Ib cylinders. They created a detailed white paper outlining their test capabilities. The research idea was proposed to Transport Canada during the Transportation of Dangerous Goods Research Symposium in February 2019. The idea was well received from Transport Canada but was not selected to be funded. At the May 2019 Board Meeting, it was proposed to move $200,000 into a research fund. This was accepted, and it was discussed using a portion of this money to perform the PRV study. In July 2019, a callout went to members for those interested in joining a committee to discuss the next steps on the study. The committee met in July and August to determine the scope of the study and the proposed funding. The CPA has reached out to multiple consultants and is refining the scope of the study.

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NEXT STEPS: • Board review and comment on the funding, move forward for the membership cycle in November • Form a technical review team to select a consultant and further refine the study • Create a detailed proposal for the study method and present it to Transport Canada with the help of the consultant • Perform the study aim for early 2020 • Submit a docket to the CSA B340 committee • Lobby Transport Canada for this change

3.3 NO CHANGES – External PRV options ISSUE: Change wording to CSA B51 for PRVs. EXPECTED OUTCOMES: Ensure external PRV options are available to members. BACKGROUND: The CPA is working with valve manufacturers to identify external PRV options. The intent is to have a valve that can be easily changed onsite. Having this type of valve in the marketplace would facilitate compliance with PRV servicing requirements found in Clause 12 of the CSA B51-14 Code. ACTIVITIES: In April 2017, the CPA sent an interpretation request to the CSA B51 Technical Committee to determine if a check valve, as proposed by RegO Products, is considered an isolation valve. The consensus was that the valve would be an isolation valve and therefore could not be installed in ASME tanks without a change to the CSA B51 Code. On July 5 and August 15, 2017, the CPA and industry representatives presented to the Clause 12 Sub- Committee of the CSA B51 Technical Committee. The purpose of the meetings was to introduce RegO Products’ check valve and to provide answers to questions raised by members of the sub-committee. The CPA continues to advocate for a change in the CSA B51 Code. In February, the CPA submitted a docket to the CSA B51 Technical Committee. The CPA, Diversco and RegO also attended a meeting of the Clause 12 Sub-Committee to discuss the docket and the check valve. NEXT STEPS: The CPA will continue to work on this file with the objective to have this new technology approved for use in Canada.

3.4 UPDATED – Canadian Registration Number (CRN) consortium ISSUE: The complexities of the CRN process have a detrimental effect on industry and consumers alike and act as an impediment to innovation and the availability of safer and more efficient products in the Canadian marketplace. EXPECTED OUTCOMES: Simplification of the CRN process BACKGROUND: The CRN Cross Industry Consortium presents a unified voice of industry sectors affected by the CRN process, specifically, sectors that are involved in the manufacture, distribution and application of pressurized equipment. The Consortium seeks outcomes that will lead to the simplification of the CRN process and as a result will encourage innovation, increase economic activity and ultimately serve Canadian consumers with safer, more efficient and environmentally friendly products. ACTIVITIES: In July 2017, the Canadian Registration Number (CRN) Industry Consortium (a group comprised of the CPA and 12 other industry members) published a white paper on the current CRN system identifying the registration process as an inter-provincial and cross-border trade barrier. The group recommended

Canadian Propane Association PUBLIC RELATIONS REPORT SEPTEMBER 2019 Page | 32 improvements to the process to facilitate the trade of pressure equipment through the mutual recognition of jurisdictions’ regulatory requirements and administrative processes related to the issuance of a CRN. At a recent Standards Council of Canada meeting in 2019, the mutual recognition proposal was endorsed by all jurisdictions except Alberta. However, the agreement will not come into effect until the provinces sign the agreement, which should be completed by mid-May 2019. The agreement, as well as the full details of the harmonized CRN system, was posted on the Standards Council of Canada website at the end of May. Note the expected timeline of the posted agreement has been updated for the fall of 2019. Manitoba signed the agreement, and as of June 2019, is accepting mutual recognition of CRN design reviews. In August, Minister of Government and Consumer Services Lisa Thompson notified the CPA that Ontario has signed the agreement. NEXT STEPS: The CPA will continue to participate in the Consortium and inform members of new developments. The CPA will work with all provincial governments/authorities to ensure ministerial agreement.

3.5 NEW – Gas fitters reconciliation agreement ISSUE: All provinces manage gas fitters as a trade differently, resulting in mobility issues from province to province and lack of people entering the trade EXPECTED OUTCOMES: Harmonize gas fitter’s regulations to decrease labor shortage BACKGROUND: The Standards Council of Canada’s Provincial-Territorial Advisory Committee (PTAC) has been tasked by the Canadian Free Trade Agreement’s Regulatory Reconciliation and Cooperation Table (RCT) with developing a reconciliation agreement on gas fitter licensing. The CPA is contributing to the committee to provide input from members on the different regional issues. ACTIVITIES: In July 2019, the CPA met with the PTAC advisor to discuss the goals and objectives. CPA regional directors have reached out to members to provide input on regional-based issues with gas fitters programs and licensing. In late August 2019, the CPA provided member feedback to this committee. NEXT STEPS: The CPA will continue engage with members to make sure the issues are on the agenda of the committee and are being addressed.

3.6 NEW – RECALL: Refillable 1 lb cylinder kits sold in Canada ISSUE: One (1) Ib refillable cylinder kits are being sold in Canada. It is illegal to refill cylinders without proper training. EXPECTED OUTCOME: Remove the kits from online retailer’s websites. BACKGOUND: The CPA and the TSSA became aware that these kits were being sold on Amazon and on other online retailer’s websites. • Filling must be done by personnel trained for that purpose. • Cylinders must be filled by weight or volume, which is not possible with these refill kits. • The cylinder sold in this kit is approved under specification TC-4BAM and can be refilled, but cylinders known as a “single trip” or “non-refillable” cylinder cannot be refilled and consumers may

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not be aware of the difference between the refillable and non-refillable cylinders. Refilling non- refillable cylinders is a safety risk as they are not designed to handle the refilling pressure. ACTIVITIES: The TSSA and CPA released a bulletin informing the public of the hazards of refilling cylinders. The CPA launched a social media campaign to further inform the public. NEXT STEPS: Continue to reach out to online retailers to inform them that it is illegal to refill these cylinders without the proper training.

3.7 NEW – FEDERAL: Red tape reduction and regulatory modernization ISSUE: The propane industry faces high levels of regulatory burden in comparison to other fuel types. EXPECTED OUTCOME: Reduce regulatory burden for the industry. BACKGOUND: The Government of Canada has released an initiative specific to regulatory modernization and red tape reduction on federal legislation and is seeking industry feedback to put forward initiatives. The CPA’s goal is to reduce red tape and regulatory burden, while still maintaining safety and integrity of the industry, and will therefore participate in this initiative to ensure members voices are heard. ACTIVITIES: The CPA released a survey in August to get input on areas where regulatory burden could be reduced. NEXT STEPS: The CPA will be submitting the feedback received from members to the federal government. The CPA is also preparing goals for red tape reduction across the country to present to provincial regulators.

4 PROVINCIAL REGULATIONS

4.1 Atlantic Canada:

ISSUE: Atlantic provinces are considering harmonizing their regulations. EXPECTED OUTCOME: Reduced administrative burden. BACKGROUND: Authorities having jurisdiction in the Atlantic provinces are looking at harmonizing safety regulations. The premiers are accelerating the process and committed to implementing harmonized regulations by 2020. Chief inspector for NS Paul Fowler and Chief inspector for NB Mike Davidson have asked the propane industry to submit regulatory change proposals or concerns to them to help streamline inter-provincial trade and therefore, strengthen the economy. ACTIVITIES: CPA members from Atlantic Canada have already begun making suggestions. As part of this harmonization initiative, in August 2019, the CPA submitted a letter to the Harmonization Committee regarding training requirements at cardlock/keylock facilities, with the intent of eliminating the training requirements for persons refuelling propane vehicles. This was achieved in Ontario, and our goal is to continue this process in Atlantic Canada. The letter also suggests the approval of the adaptation of PTI course 200-11 – Auto Propane Conversion and Inspection. This course is available in both official languages and ensures adequate training and quality of labour for auto propane conversion workers in Atlantic Canada.

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NEXT STEPS: Consultation sessions are expected to start in the fall of 2019. The CPA will attend the Harmonization Committee and will continue to consult with members on issues. Suggested regulatory changes and/or concerns with current regulations gathered from members will be sent to the appropriate authority having jurisdiction.

4.2 British Columbia

ISSUE: In December, Technical Safety BC issued a draft update of their directive on Propane Filling Plants and Container Refilling Centres to re-define how and where a propane refilling centre can be located. EXPECTED OUTCOME: Submit a position to TSBC for the B.C. propane industry that does not put CPA members at a competitive disadvantage. BACKGOUND: The proposed definitions of a Container Refill Center (CRC) and Propane Filling Plant (PFP) in the directive concern the industry as they would replace the four classifications of locations in revision 02 (2014) with two much broader classes, making expansion of propane distribution networks more restrictive. The details section in the directive has now set a focus primarily on high population density areas and is silent on all others when planning and locating new Container Refill Centers and Propane Filling Plants. The directive is silent on current CRC and PFP sites – the CPA must clarify if these sites are considered approved sites by TSBC as the directive is focused on only new construction. ACTIVITIES: Waiting for response from the TSBC. NEXT STEPS: Follow up with TSBC to pursue an in-depth dialogue on the draft directive.

4.3 Manitoba

ISSUE: As part of its commitment to public safety, the Province of Manitoba announced it will be instituting mandatory entry-level training for commercial truck drivers starting September 1, 2019. EXPECTED OUTCOME: Members awareness. BACKGROUND: The driver training program will put Manitoba drivers on par with those in Alberta and Saskatchewan as it will include 121.5 hours of training. Currently, there is no mandatory truck driver training in the province. The new mandatory measure is designed to ensure a greater degree of public safety on Manitoba highways. The province has stated there will be a one-year deferral of the training requirement for the agriculture sector to determine an appropriate phase-in strategy and mitigate effects of the new regulation on the 2019 harvest season. NEXT STEP: None required.

4.4 Nova-Scotia:

ISSUE: Implementation of regulations for auto propane in the province of Nova Scotia.

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EXPECTED OUTCOMES: Proper regulations for auto propane in the province of Nova Scotia. BACKGROUND: Since March 8, 2018 the province of Nova Scotia has adopted the CSA B19.5-15 Code, Installations code for propane fuel systems and containers on motor vehicles. ACTIVITIES: The department of Fuel Safety is currently looking into all regulation changes for 2020, including the implementation of propane fuel systems on motor vehicles. Public consultation and meetings with stakeholders are to take place in late 2019. NEXT STEPS: Seek provincial recognition of PTI training courses, especially 100-2 – Filling Auto Propane Tanks. Continue the dialogue with the provincial regulator, including the development of regulations.

ISSUE: The province of Nova Scotia is in the process of reinstating the Technical Safety Advisory Board that was previously in place. EXPECTED OUTCOMES: Technical Safety Advisory Board being reinstated. BACKGROUND: The purpose of the Advisory Board is to advise the Minister of Labour and Advanced Education on major system-wide initiatives, concerns or problems identified by the minister or his department for the Advisory Board’s consideration. These may include, but are not limited to: safety; certification and training of persons involved in regulated work; incident prevention; matters arising from non-profit organizations with mandates related to the Technical Safety Act; the issuance, expiry, suspension and revocation of licenses, registrations, permits or certifications; and any other matter as determined by the minister. ACTIVITIES: Allan Frail from Superior propane was appointed to the Technical Safety Board to represent the CPA. The start of the Technical Safety Board was delayed but is expected to start meeting in Fall 2019. NEXT STEPS: The CPA and Nova Scotia members will work with the Advisory Board to provide more feedback from the industry.

4.5 Ontario

ISSUE: TSSA provided industry stakeholders with a revised Propane Orders Reassessment Report in May 2019 for review and comment. EXPECTED OUTCOME: Provide credible input that supports risks reduction and to continue to have industry input into the TSSA’s orders assessment and reassessment process to support current practices and the advancement of the industry in Ontario. BACKGROUND: As part of its ongoing review and reassessment of orders issued under the Fuels Safety Act, regulations related to propane under the Act and CSA codes 14.1 and 149.2, the TSSA circulated a report in May 2019 to Risk Reduction Group members containing reassessments to 24 orders, based on issue frequency and risk. As a result of this exercise, the risk scores for 11 of the 24 areas identified were adjusted to reflect lower risk – lower risk should result in less frequent inspections. The TSSA sought industry input into these reassessments, which will be reflected in revised inspection schedules. ACTIVITES: The CPA facilitated industry input into TSSA initiatives such as reassessment reports by hosting discussions and circulating relevant documents to Ontario members and providing their input to the regulator.

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NEXT STEPS: Seek member feedback on impact of reassessed orders on their inspection rates and conduct. Provide input to the TSSA as appropriate.