Good morning, Mr. Chair and members of the committee.
With me this morning are Andrea Labelle, General Manager, and Andy Bite, who also sits on the Board of Directors.
Thank you for giving us this opportunity to tell you about the transportation of propane by rail.
The Canadian Propane Association is the national voice of the Canadian propane industry, a multi-billion dollar industry that impacts the livelihood of tens of thousands of Canadians.
The CPA represents over 380 members, including producers, wholesalers, retailers, transporters, equipment manufacturers, service providers and industry associates.
Our mission is to facilitate the growth and best practices of the Canadian propane industry by acting as a unified champion for the entire industry, regardless of geography or place on the propane value chain.
Headquartered in Ottawa, the CPA maintains an office in Calgary that houses a subsidiary, the Liquefied Petroleum Gas Emergency Response Corporation, which is responsible for the propane industry's emergency response plan, and the Propane Training Institute, which trains over 24,000 students annually.
Now let me talk about the propane industry.
Canada produces approximately 11 billion litres of propane per year. Eighty-five per cent of the propane is produced by processing natural gas and 15% from refining crude oil. About half of the supply is used in Canada and the rest is exported to the United States. All the propane used in Canada is produced here.
Each year, the propane industry contributes $10 billion to the country's economy, including more than $900 million in taxes and royalties. It also employs more than 20,000 Canadians.
Propane is used in a wide range of applications, including residential heating, commercial activity, agriculture and transportation.
The propane industry is regulated by a range of statutes, standards, regulations and codes at federal, provincial and municipal levels.
The transportation of propane is governed by the Transportation of Dangerous Goods Act, 1992, and its associated regulations. They specify a number of requirements about the transportation of propane, including containment, permits required, and emergency response plans.
At the federal level, Environment Canada requires propane companies and users with significant amounts of propane on their premises to have an environmental emergency response plan,
Storage and handling of propane are regulated by provincial agencies such as the Technical Standards Safety Authority in Ontario, the Régie du bâtiment du Québec and the BC Safety Authority in British Columbia. Those agencies administer the national standards and codes that establish the practices and training that are appropriate in the handling and use of propane and related material.
Canada has a well-developed propane infrastructure that transports propane across Canada and into the United States by rail, by pipeline, by road and by water. About 4 billion litres of propane are transported by rail in Canada and more than 3 billion litres are sent by rail to the United States.
The propane industry takes all necessary steps to meet and surpass regulatory requirements designed to safely transport, deliver and use propane. We are pleased to be part of the discussion on maintaining and improving, to the extent possible, the level of safety needed for the transportation of dangerous goods by rail.