Summary#

Bill C-234 changes the Greenhouse Gas Pollution Pricing Act to expand the on-farm fuel charge exemption. It adds marketable natural gas and propane to “qualifying farming fuel” and broadens what counts as “eligible farming machinery,” including equipment for heating or cooling barns/greenhouses and grain dryers. These expansions last for 8 years, unless Parliament postpones the end date (Coming into Force s.1–4).

• Extends the farm fuel-charge exemption to marketable natural gas and propane for 8 years (Bill s.4; Coming into Force s.1).
• Treats heating/cooling equipment for livestock housing and crop-growing buildings as eligible farming machinery (Bill s.1(1)).
• Explicitly includes grain dryers as eligible during the 8-year period (Bill s.2).
• After 8 years, the added provisions are repealed unless both Houses vote to postpone; postponements can be repeated (Coming into Force s.1–4).
• No direct changes for non-farm uses of these fuels.

What it means for you#

• Households

  • No direct change to home heating bills. The exemption applies only to on-farm uses in eligible machinery (Bill s.1(1), s.2, s.4).

• Farmers

  • You would not pay the federal fuel charge (carbon price on fuels) on marketable natural gas (pipeline‑quality gas) and propane used in eligible farming machinery for 8 years after the Act takes effect (Bill s.4; Coming into Force s.1).
  • Eligible machinery includes equipment used to heat or cool buildings used to raise or house livestock or to grow crops, and includes grain dryers during the 8-year period (Bill s.1(1), s.2).
  • After 8 years, these added inclusions and the exemption for natural gas and propane end unless Parliament postpones the change by resolution of both Houses (Bill s.1(1.1), s.2.1, s.5; Coming into Force s.1–4).
  • Gasoline and light fuel oil remain qualifying farming fuels; this bill does not change that (Bill s.4–5).

• Fuel suppliers and distributors

  • Sales of marketable natural gas and propane for eligible on-farm uses would be exempt from the federal fuel charge for 8 years once the Act comes into force (Bill s.4; Coming into Force s.1).
  • After 8 years, absent a parliamentary postponement, these sales return to being subject to the fuel charge (Bill s.5; Coming into Force s.1).

• Local governments

  • No direct change. The bill targets on-farm fuel use definitions and exemptions (Bill s.1–5).

Expenses#

• Estimated net cost: Data unavailable.

• Key points

  • The bill reduces federal fuel charge revenues by exempting marketable natural gas and propane used in eligible farming machinery for 8 years (Bill s.4; Coming into Force s.1).
  • After 8 years, revenues would rise relative to the 8‑year period if the exemption ends as scheduled; Parliament may postpone the end date (Coming into Force s.1–4).
  • No official fiscal note identified as of October 20, 2025. Data unavailable.

Proponents' View#

• Reduces farm operating costs for grain drying and barn/greenhouse heating by removing the federal fuel charge from marketable natural gas and propane for 8 years (Bill s.1(1), s.2, s.4; Coming into Force s.1).
• Targets core farm activities by limiting eligible machinery to equipment used to raise or house livestock or grow crops, and by naming grain dryers (Bill s.1(1), s.2).
• Time-limited design provides temporary relief while cleaner technologies scale; Parliament can reassess and postpone the end date if needed (Coming into Force s.1–4).
• Leaves non-farm uses unchanged, keeping the broader carbon pricing system intact for households and most businesses (Bill s.1–5).

Opponents' View#

• Weakens the carbon price signal for a significant farm fuel use category for at least 8 years, which may slow fuel switching or efficiency upgrades (Bill s.4; Coming into Force s.1).
• Lowers federal fuel charge revenues from farm natural gas and propane, requiring adjustments elsewhere in the system or smaller proceeds from these sources (Bill s.4; Coming into Force s.1). Data unavailable.
• Creates uneven treatment across sectors, since other commercial users of natural gas and propane continue to pay the fuel charge (Bill s.4–5).
• Adds compliance and enforcement complexity, since authorities and suppliers must verify that exempt fuels are used in eligible machinery and buildings for qualifying farm purposes; the bill relies on existing Act mechanisms and does not add new enforcement detail (Bill s.1–5).