C-234

Details

Full Title

An Act to amend the Greenhouse Gas Pollution Pricing Act

First Reading

February 7, 2022, Parliament 44, Session 1

Type

Private Member’s Bill

Full Content

https://www.parl.ca/legisinfo/en/bill/44-1/c-234

Summary

Bill C-234 proposes changes to the Greenhouse Gas Pollution Pricing Act. The bill focuses on how the carbon tax applies to farming operations. It changes the definitions of "eligible farming machinery" and "qualifying farming fuel." These changes would affect which farming activities and fuels are exempt from the carbon tax. The bill goes through multiple changes to these definitions, some of which come into effect immediately, while others are delayed and can be postponed by Parliament.

The initial changes to the definition of "eligible farming machinery" include property used for heating or cooling buildings used for raising livestock or growing crops. The bill later removes and then re-adds a similar definition, and also removes grain dryers from the definition of eligible farming machinery. The definition of "qualifying farming fuel" initially expands to include marketable natural gas and propane, but is later changed to remove these fuels.

Some of the amendments are set to take effect 8 years after the Act comes into force, unless Parliament votes to postpone them. The Governor in Council can create a resolution to postpone these changes, and Parliament can debate and vote on the resolution. The postponement can be extended following the same procedure. This means that the specifics of which farming-related items are exempt from the carbon tax could change over time, depending on future decisions by the government and Parliament.

Issues

Economy

• Inflation and Cost of Living

  By amending the Greenhouse Gas Pollution Pricing Act to include and then exclude marketable natural gas and propane as qualifying farming fuels, this bill could impact the cost of farming and, consequently, the prices of agricultural products. The exemptions provided to certain farming activities may reduce the burden of the carbon tax on farmers, potentially stabilizing or lowering food prices. However, the removal of certain exemptions could have the opposite effect, increasing costs for farmers and potentially contributing to higher food prices.

• Taxation

  The bill amends the Greenhouse Gas Pollution Pricing Act, which is Canada's carbon tax legislation. The changes to the definitions of 'eligible farming machinery' and 'qualifying farming fuel' directly impact which farming operations and fuels are subject to or exempt from the carbon tax. Including and then excluding certain fuels changes what farmers will need to pay. These changes could affect the financial viability of farming operations.

Environment

• Climate

  Bill C-234 modifies the Greenhouse Gas Pollution Pricing Act, which is aimed at reducing greenhouse gas emissions. By changing the definitions of "eligible farming machinery" and "qualifying farming fuel," the bill adjusts the scope of carbon pricing as it applies to agricultural activities. Initially, some changes could expand exemptions for certain farming-related emissions sources, potentially reducing the incentive to lower emissions from those sources. Later changes could reduce those exemptions, incentivizing emissions reductions.

• Energy

  The bill directly relates to energy use in the agricultural sector by changing which fuels qualify for exemptions under the Greenhouse Gas Pollution Pricing Act. The inclusion and subsequent exclusion of marketable natural gas and propane as 'qualifying farming fuels' has implications for the energy costs of farming operations.