Canadian Gas Association Responds to Federal Budget 2021

On April 19, 2021, Canada’s Minister of Finance, the Honourable Chrystia Freeland, tabled the federal government’s 2021 Budget, the first in two years.

The Canadian Gas Association (CGA) recognizes that this budget comes at a crucial time when many Canadians across the country are facing dire economic circumstances because of the COVID-19 pandemic and lockdowns. Through all this, Canada’s natural gas delivery industry has focused on its core objective – the safe delivery of affordable, reliable, clean energy to customers across the country. Continued access to that energy is essential to our country’s ongoing well-being.

CGA’s members have also been working with stakeholders to develop energy and infrastructure projects aimed at delivering economic recovery as quickly as possible. More information about these proposed projects can be found at www.fuellingcanadaseconomy.ca.

“CGA looks forward to working with the Government of Canada wherever possible to help deliver economic recovery, including on initiatives that have been announced in the 2021 budget,” said Timothy M. Egan, President and CEO of the Canadian Gas Association. “CGA’s members are committed to serving their respective communities and providing essential energy services in order to meet Canadians’ daily energy needs, under whatever circumstances we face.”

The Government’s 2021 Budget has several measures that CGA believes can help Canadians through these difficult times and that, properly focused, can help bring us out of them quickly:

  • Two separate initiatives to support energy efficiency, including a $5,000 grant and a $40,000 loan to address various levels of retrofits. CGA members in many provinces offer energy efficiency programs. Taken together, utility and federal programming will benefit homeowners as they look at ways to improve their energy use profile.
  • Foundational funding for renewable gases, such as hydrogen and renewable natural gas, through the $1.5 billion Clean Fuels Fund, which was announced in December 2020. We are seeking federal leadership on renewable gases by having federal departments begin to source available RNG, and in the future, hydrogen supplies, to meet the energy needs of federal buildings.
  • Support for carbon capture utilization and storage (CCUS) through a proposed tax credit to support CCUS capital costs and a $319-million fund for Natural Resources Canada to support related research, development, and demonstrations.
  • A bolstered Strategic Innovation Fund (SIF) Net Zero Accelerator Program which focuses on reducing industrial emissions with a total value of $8 billion. We hope to see this program support industrial customers that want to consider low-emission gases such as renewable natural gas and hydrogen, or other efficiency and technology opportunities.
  • Carbon levy rebates for farmers using natural gas for grain drying and an additional $50 million to the previously announced $166-million Agricultural Clean Technology program for the purchase of more efficient grain dryers.

CGA’s members are companies with employees who live and work in communities across the country. All of these employees are committed to helping their communities – and the country as a whole – come out of the current challenges as quickly and painlessly as possible.

About the Canadian Gas Association
The Canadian Gas Association is the voice of Canada’s natural gas delivery industry. Its membership includes natural gas distribution and transmission companies, equipment manufacturers, and suppliers to the industry. Our utility members are active in eight provinces and one territory and meet 35 per cent of Canadians’ energy needs through a network of over 566,000 kilometers of underground infrastructure. This infrastructure can also be used to deliver renewable gases including renewable natural gas and hydrogen, in order to contribute to Canada’s greenhouse gas emission reductions. Today, over 7.2 million customer locations representing approximately two-thirds of Canadians, rely on natural gas for clean, affordable and reliable heating and power.

Media Information:
Aysha Raad
Director, Communications
Canadian Gas Association
613-748-0057
araad@cga.ca

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