Farm fuel and rural utility programs

The Alberta Farm Fuel Benefit (AFFB) Program allows eligible producers to receive a 9-cent-per-litre provincial fuel tax exemption on the purchase of dyed gasoline and diesel.

Eligibility

Eligible Alberta producers are fully exempt from the provincial tax on propane and aviation fuel used for farming purposes.

To qualify for the benefit, producers must:

• be actively and directly farming by controlling farming assets and making the day-to-day management decisions
• have annual farm commodity production worth at least $10,000 or $5,000 to $9,999 if the only other significant sources of income are Canada Pension Plan or Old Age Security

For more information about the AFFB:

• Alberta Farm Fuel Benefit Program fact sheet

How to apply

Apply for an AFFB registration number:

• AFFB application form with instructions

If your entire farming operation is not located in Alberta, attach a completed Schedule A:

• Schedule A: Alberta Farm Fuel Benefit Operations Outside Alberta

Applications can be submitted by email, fax or mail (see Contact below).

If you qualify, Alberta Agriculture and Irrigation will issue you a registration number. Your registration number is your approval number for the Alberta Farm Fuel Tax Exemption Certificate.

The Remote Area Heating Allowance (RAHA) program was established in 1980. It reduces the cost of heating fuels for Albertans who do not have access to natural gas service in their area. These individuals generally reside in remote locations in the province and are not located in a current natural gas distributors franchise area.

The RAHA program, which is different from the Natural Gas Rebate program, is a legislated program of the Heating Oil and Propane Rebate Act and the Rebate Authorization Regulation. The RAHA program is currently scheduled to expire March 31, 2026. To ensure that the Regulation and RAHA program continue to be relevant and necessary, they are reviewed prior to their expiry dates and may be renewed in their present or amended forms following review.

Eligibility

If your primary residence is outside the franchise boundaries of a natural gas distributor, you may be eligible for a rebate on heating oil and/or propane purchases.

If natural gas service extends to your location in the future, your eligibility for heating oil/propane rebates terminates, regardless of whether you choose to receive natural gas services from the local distributor.

Rebates

The program provides direct rebates to Albertans of up to 25% of the cost of fuel (less GST and carbon levy) on annual consumption of up to:

• 18,185 litres (4,000 gallons) of propane
• or 12,275 litres (2,800 gallons) of heating oil
• or a proportionate combination of both

How to apply

• RAHA application form

Submit your completed application and original or copy of your invoices/delivery tickets for heating oil and/or propane rebates to:

Rural Utilities
Remote Area Heating Allowance
Suite 200, J.G. O’Donoghue Building
7000 113 Street
Edmonton, AB  T6H 5T6

Fax: 780-422-1613

Email: [email protected]

Get direct deposit

If you are eligible for the RAHA rebate, you may authorize the Government of Alberta to deposit your payment directly into your bank account. This provides you with quicker access to your rebate.

We send confirmation letters advising that your rebate has been processed and will be deposited to your account.

• Application for direct deposit

Mail the completed form to:

Rural Utilities
Remote Area Heating Allowance
Suite 200, J.G. O’Donoghue Building
7000 113 Street
Edmonton, AB  T6H 5T6

Rural electrification in Alberta commenced in 1947. There are currently 32 member-owned Rural Electrification Associations (REAs) and 2 Investor-Owned Utilities (ATCO Electric and FortisAlberta) that provide electric distribution to rural Albertans.

Grants

The Rural Electric Program (REP) grant helps farmers access a basic, essential service at a reasonable cost and aids in the diversification of our rural economy. It also provides partial equity with other Albertans living in urban areas.

How to apply

The REP grant program is available to individual producers and is administered through the Alberta Federation of Rural Electrification Associations (AFREA). Program guidelines and the application can be found on AFREA’s Rural Electric Program website.

Governance

REAs are incorporated under the Rural Utilities Act and Regulation. This legislation outlines the powers and duties of the directors of the association, membership, and provides associations with standard bylaws under which to operate.

REA rates for electrical distribution and terms of service are set and approved by the member-elected board of directors. Members are encouraged to bring any concerns about their REA rates or terms of service to their respective REA board for resolution.

Consumers with concerns about services or rates charged by ATCO Electric or FortisAlberta rates can contact the Utilities Consumer Advocate office.

Incorporating

Incorporating a Rural Utilities Association involves several steps. For details, see:

• Instructions to incorporate a Rural Utilities Association

You must complete the following and submit them to Rural Utilities for review:

• Memorandum of Association Schedule 1: Form 1
• Notice of Address or Notice of Change of Address
• Nuans report
• Incorporation registries fee (see ‘Incorporate Alberta corporation’ in the Registry agent product catalogue)

Annual returns

REAs must submit the following to Rural Utilities within 120 days after their annual general meeting (AGM):

• Officers List
• minutes from the AGM
• audited financial statements
• any new supplemental bylaws*

With over 155,000 km of natural gas distribution pipelines connecting more than 380,000 rural consumers, Alberta maintains the largest rural natural gas distribution pipeline system in the world.

Under the Rural Gas Program, approximately 1,500,000 natural gas consumers are served by 85 participating natural gas utilities: the Federation of Alberta Gas Co-ops Ltd. (with 82 members), ATCO Gas and Pipelines Ltd., Apex Utilities Inc., and the City of Medicine Hat.

Rural Utilities is responsible for:

• ensuring the safe and orderly development of natural gas distribution systems
• conducting technical reviews
• issuing approvals
• developing policy issues respecting rural gas utility operations and business practices
• regulating gas co-ops

Important regulations

Gas Distribution Act

As per the Gas Distribution Act, the chief officer sets and enforces standards for rural gas utilities and low pressure distribution-system:

• design
• construction
• operation
• maintenance

Rural Utilities has adopted Canadian Standards Association (CSA) code Z662 as the standard. This is a national standard set by CSA for utility distribution systems. In addition to the Z662, Rural Utilities publishes the Technical standards and specification manual for natural gas distribution systems in Alberta (TSM Manual) which is issued in accordance with section 2 of the Gas Distribution Act. In conjunction with the Z662, the TSM Manual is intended to provide a guide to distributors on the safe design, construction and operation of gas distribution systems in Alberta.

The Gas Distribution Act also provides for the issuance and approval of rural gas franchise areas. With very limited exceptions, a distributor holding a franchise area approval has both the right and duty to offer and provide natural gas service to all potential consumers within the distributor’s franchise area.

Low-pressure natural gas distribution pipelines – Roles and responsibilities

The roles and responsibilities provide direction for the ongoing safety and operation of infrastructure associated with rural gas utilities and low-pressure distribution pipelines under the Gas Distribution Act, and recognizes the Alberta Utilities Commission’s jurisdiction under the Gas Utilities Act.

Low-Pressure Natural Gas Distribution Pipelines – Roles and Responsibilities

Rural Utilities Act

Gas Co-ops are incorporated under the Rural Utilities Act. This legislation outlines the powers and duties of the directors of the association, membership, and standard bylaws.

Unlike the Investor-Owned Utilities (ATCO Gas and Pipelines Ltd. and Apex Utilities Inc.) whose rates for natural gas distribution are set and approved through the Alberta Utilities Commission, rural gas co-op rates are set by the member-elected board of directors. Members are encouraged to bring any concerns about their gas co-op rates directly to their board of directors. Similarly, concerns with the rates charged by a municipal utility should be raised directly with the municipality.

Consumers with concerns about ATCO Gas and Pipelines Ltd. or Apex Utilities Inc. can contact the Utilities Consumer Advocate office.

Safety

Under the Gas Distribution Act, the Chief Officer and Rural Utilities are responsible for ensuring the safe construction, operation and maintenance of all low pressure gas distribution systems. This responsibility is not only to rural areas, but extends to urban areas such as:

• cities
• towns
• villages

Rural Utilities undertakes the following types of initiatives to ensure the safety of the public and those involved in natural gas distribution.

Quality Management Plans

The Quality Management Plan (QMP) is an agreement with the Province of Alberta under section 5 of the Gas Distribution Act that the rural gas utility is being designed, constructed, operated and maintained in accordance with requirements set by section 2 of the act.

The QMP also ensures the safety of customers, employees and the general public.

Under the Gas Distribution Act, the department can conduct audits of distributors' operations to ensure they are fulfilling their commitment under the QMP. These audits are conducted through third parties and by department staff.

System plans

Distributors must annually submit digital as-built plans of their systems Rural Utilities. These plans are critical to the safety of workers in the energy sector, utility business and third-party contractors involved in excavation.

• Low-pressure (map viewer found at GeoDiscover Alberta.
• 2 GIS datasets can be downloaded:
  • Rural Utilities Gas Distribution Low Pressure Pipelines
  • Rural Utilities Franchise Areas

Data is limited to location and distributor of low-pressure pipelines. Franchise areas include name and contact info for distributors. Additionally, urban municipalities also have information on their natural gas distributor. Requests for detailed data should be made to the natural gas distributor. Requests for detailed distribution system data should be made directly to the natural gas distributor.

Easements

Before any construction can take place, distributors must obtain an easement from the landowner. As a safety measure, easements indicate to the landowner and those conducting a title search that a buried facility is contained within the property.

Grants

Under the Rural Gas Program, grants are made available to rural gas distributors for system expansion and updating. Administered by the Alberta Federation of Gas Co-ops Ltd.,these grants help off-set the cost of construction for natural gas infrastructure.

Resources

The following resources are associated with the Rural Gas Program:

Bulletins

• Bulletin RU 2018-01: As-built Digital Mapping Submissions & Licensing of Low Pressure Pipelines – October 2018
• Bulletin RUD 2007-01: Medium Pressure High Density (PE 100) Polyethylene Pipe – December 2007
• Bulletin 2004-04: PE Pipe Licensed with EUB over 700 kPa (100 psi) – July 2004
• Bulletin RUB 2004-02: Historical Polyethylene Pipe Material Codes – R, Q, and P – February 2004
• Bulletin RUB-2004-01: Operating Pressures of CIL 219 PE Pipelines – February 2004

Mapping

• GeoDiscover Alberta – search ‘rural utilities’ under Data Search and ‘Add to Map’
• Rural Gas Franchise Map

Leak and damage forms

In accordance with the Gas Distribution Act, gas utilities must submit a form to report leaks and third-party damages. The form must be completed online in the Rural Utilities Portal. MyAlberta Digital ID for Business is required prior to logging in.

Instructions for completing the form:

• Rural Utilities Portal instructions

You can print and take this form into the field:

• Rural Gas Program Leak/Damage Report

Other references

For extra information on Bulletin RU 2018-01, see:

• Quick Reference for Bulletin RU 2018-01
• Procedures to Merge MicroStation DGN Files

Incorporating

Incorporating a Rural Utilities Association involves several steps. For details, see:

• Instructions to incorporate a Rural Utilities Association

You must complete the following and submit them to Rural Utilities for review:

• Memorandum of Association Schedule 1: Form 1
• Notice of Address or Notice of Change of Address
• Nuans report
• Incorporation registries fee (see ‘Incorporate Alberta corporation’ in the Registry agent product catalogue)

Annual return

Gas co-ops must submit the following to Rural Utilities within 120 days after their annual general meeting (AGM):

• Officers List (entered through the Rural Utilities Portal)
• minutes from the AGM
• audited financial statements
• any new supplemental bylaws*

There are over 170 water co-operatives across Alberta offering well over 6,700 services. Many were incorporated in the 1960s and '70s to provide water service to their immediate area. Many of these co-operatives are incorporated and regulated by Rural Utilities under the provisions of the Rural Utilities Act and Regulation.

Rural Utilities reviews and approves water co-ops' corporate filings, including:

• incorporations
• annual returns
• bylaw changes

Water co-ops also receive advice and technical assistance from the Alberta Federation of Rural Water Co-operatives Ltd. Alberta Environment and Protected Areas is involved in water quality and water licensing issues and Alberta Health Services for potable water quality.

Incorporating

Incorporating a Rural Utilities Association involves several steps. For details, see:

• Instructions to incorporate a Rural Utilities Association

You must complete the following and submit them to Rural Utilities for review:

• Memorandum of Association Schedule 1: Form 1
• To be completed along with memorandum of Association: Supplemental Bylaws
• Notice of Address or Notice of Change of Address
• Nuans report
• Incorporation registries fee (see ‘Incorporate Alberta corporation’ in the Registry agent product catalogue)

Annual returns

Water co-ops must submit the following to Rural Utilities within 120 days after their AGM:

• Officers List
• minutes from the AGM
• audited financial statements
• any new supplemental bylaws*