What is Greenhouse Gas Pollution Pricing?
In an effort to reduce greenhouse gas emissions by encouraging energy efficiency and cleaner energy options, the federal government has introduced the Greenhouse Gas Pollution Pricing Act. As part of the act effective April 1, 2019 there will be a fuel charge on essentially all carbon-based fuels consumed in the Province of Ontario, including propane.
What propane customers will be affected by this additional pricing?
Greenhouse Gas Pollution Pricing is applicable to all propane consumed in the province. There is a limited exemption for commercial greenhouse operations.
What is the rate of the fuel charge for propane?
April 1, 2019 – $0.0310 per litre
April 1, 2020 – $0.0464 per litre
April 1, 2021 – $0.0619 per litre
April 1, 2022 – $0.0774 per litre
April 1, 2019 – $0.5580 per cyl
April 1, 2020 – $0.8352 per cyl
April 1, 2021 – $1.1142 per cyl
April 1, 2022 – $1.3932 per cyl
April 1, 2019 – $0.9176 per cyl
April 1, 2020 – $1.3735 per cyl
April 1, 2021 – $1.8323 per cyl
April 1, 2022 – $2.2911 per cyl
April 1, 2019 – $2.7590 per cyl
April 1, 2020 – $4.1296 per cyl
April 1, 2021 – $5.5091 per cyl
April 1, 2022 – $6.8886 per cyl
How will the fuel charge appear on EDPRO invoices?
For bulk propane deliveries the fuel charge will appear as a separate line item titled “Carbon Price”. For propane delivered in cylinders the fuel charge is incorporated into the cost per cylinder at the rates shown above and are not listed as a separate item.
What is the partial exemption available to commercial greenhouse operators?
There is a proposed 80% exemption on the fuel charge for propane used for heating or generating carbon dioxide (CO2) at a commercial greenhouse operation. Certain criteria must be met. Additional information is available at http://www.fin.gc.ca/n18/data/18-097_3eng.asp Note: This partial exemption is still ‘proposed’ and has not yet been adopted into law. Until this partial exemption is formally implemented propane delivered to greenhouses will be charged at the current rate.
How do I apply for the commercial greenhouse exemption?
If your operation meets the required criteria please complete the L404 form available at https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l404.html and submit to our office at firstname.lastname@example.org. Fuel charges apply until the signed exemption declaration is received.
Is there not an exemption for farming operations?
There are certain qualifying exemptions to the Greenhouse Gas Pollution Pricing available to farmers. However propane is not listed as a qualifying farm fuel under the act and therefore no exceptions are applicable.
Is HST charged on the fuel charge?
Yes, HST is charged on the subtotal which includes the fuel charge.
Where do I find additional information on the program?
For more information please visit the Government of Canada website: https://lawslois.justice.gc.ca/eng/acts/G-11.55/