Good afternoon.
My name is Shannon Watt, president and CEO of the Canadian Propane Association. I want to thank you for inviting us to today's meeting.
The CPA represents 400 members from coast to coast to coast. They are composed of producers, wholesale marketers, transporters, retail marketers and manufacturers of appliances, cylinders and equipment.
I am pleased to have Jeff Daley join us today. Jeff is a propane and HVAC specialist. For the past 15 years, Jeff's been with Bryan's Fuel of Orangeville, Ontario. He is BCIN-certified and does heat loss-gain drawings, duct design, hydronic design and geothermal designs for permits. He will be available to answer questions about retrofits and hybrid energy.
All Canadians should have access to an affordable, lower-emissions energy choice. Perhaps more than any other energy source, propane ensures that Canadians, no matter where they live, have the energy they need when and where they need it, and at a price they can afford. This is particularly true in regions beyond the natural gas grid, where many homeowners are still using heating oil. In fact, propane serves many of the communities the national electricity strategy risks leaving behind.
Propane provides critical energy when extreme events occur. During winter storms or weather disruptions, propane space heating and backup generation protect homes. A policy built exclusively around electrification risks stranding rural, remote and indigenous communities with fewer affordable energy options, higher utility rates and increased energy insecurity.
Regarding retrofits, propane provides substantial savings relative to heating oil, costing less than half the price of heating oil across much of Canada. Supporting conversions from heating oil to high-efficiency propane delivers immediate financial relief to families facing high heating bills.
Full heat-pump retrofits often require rural and older homes to overhaul their electrical infrastructure by upgrading 60-amp or 100-amp service panels to 200-amp service, which frequently costs between $5,000 to $10,000 in out-of-pocket expenses before a heat pump can even be installed. Propane systems eliminate these expensive electrical upgrade barriers with hybrid propane and heat pump systems delivering the best of both worlds.
Cold snaps drastically reduce the efficiency of many electric air-source heat pumps, triggering expensive electric resistance backup heating that could spike winter utility bills. Hybrid systems combine an electric heat pump for moderate days with high-efficiency propane furnaces for deep sub-zero temperatures to keep homes warm and energy bills manageable.
We have seen proven policy models at the provincial and territorial levels. Ontario's energy for generations plan, through its home renovation savings program, already includes rebates for hybrid propane and heat pump systems. Yukon has introduced the dependable grid program that focuses on practical measures that deliver the biggest impact on peak winter demand and household resilience. It features dual-fuel heating systems, such as those pairing an energy-efficient electric heat pump with a propane backup system during extreme cold.
Federal retrofit programs such as the Canada greener homes affordability program should adopt these practical models and make hybrid propane systems fully eligible for federal incentives. Just last month, in its report to Parliament regarding the 2026 budget, the Standing Committee on Finance endorsed the CPA's position and recommended that the government “Expand lower-emission energy access in Indigenous, rural and remote communities by ensuring affordable energy choice through the inclusion of propane in federal rural energy assistance programs.”
Including propane will also improve emissions. At 72 grams of carbon dioxide equivalent per megajoule, propane emits about 30% fewer emissions than heating oil. Going further, in western Canada, the propane industry is producing renewable propane with emissions as low as 12 grams of CO2 equivalent per megajoule.
While the national electrification strategy includes a dedicated subsection recognizing natural gas's strategic role in Canada's energy mix, propane, an energy that can go where natural gas can't, is treated solely as a fuel to be displaced.
In the end, the fairest way to provide affordable low-emissions energy is to take an agnostic approach to the type of affordable low-emissions energy that is used. In other words, provide all Canadians with affordable energy choices, and that includes propane.
Thank you for your attention.