+ RMA Rural Municipalities
of Alberta

Resolution 1-17S

Carbon Levy Exemption of Natural Gas and Propane for All Food Production Uses

Date:
March 21, 2017
Expiry Date:
April 1, 2020
Active Status:
Active
Sponsors:
MD of Willow Creek
Year:
2017
Convention:
Spring
Category:
Environment
Status:
Intent Not Met
Vote Results:
Carried
Preamble:

WHEREAS the Climate Leadership Implementation Act effective January 1, 2017 states that every recipient shall pay a carbon tax on purchases of natural gas and propane; and

WHEREAS as purchasers, farmers cannot pass the additional cost of a carbon tax on to consumers or the international market; and

WHEREAS programs are in place through the Climate Leadership Plan to help farm operations reduce their emissions through efficiency upgrades; and

WHEREAS farmers use natural gas and propane for the production of food e.g. grain drying, irrigation, milk parlours, hog barns, chicken barns, greenhouses, etc.; and

WHEREAS farmers are exempt on marked fuel by way of the carbon levy exemption certificate; and

WHEREAS farmers create a tremendous carbon sink with their production of crops;

Operative Clause:

THEREFORE, BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties   appeal to the Government of Alberta to provide carbon levy exemption certificates for the use of natural gas and propane for all food production uses.

Member Background:

Alberta’s food producers are outstanding at feeding the population of the Province as well as contributing to the needs of the world.  They are in a position of accepting what the consumer will pay for their production.  They have no way of recovering extra costs such as added taxes.

Consumption of fossil fuels is a necessity for the many facets of food production in Alberta.  While using these fuels to raise crops they are creating a huge carbon sink which has not been addressed in the Climate Leadership Plan.

The Government of Alberta has fortunately exempted marked fuels from the new carbon tax but the consumption of natural gas and propane for food production has been overlooked.  All fuels used for food production should be exempt.

RMA Background:

2-16F: Exemption of Municipalities from Carbon Levy

THEREFORE, BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties request the Government of Alberta to exempt all municipalities in Alberta from the carbon levy.

DEVELOPMENTS: Awaiting government response.

6-16F: Carbon Levy Exemption on Natural Gas abd Propane Used for Agricultural Operations

THEREFORE, BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties request that the Government of Alberta amend the Climate Leadership Implementation Act to exempt farming operations from the carbon levy on natural gas and propane.

DEVELOPMENTS: Awaiting government response.

Government Response:

Environment and Parks:

The Alberta Climate Change Office (ACCO) is working with Alberta Agriculture and Forestry (AF) and Alberta Treasury Board and Finance (TBF) to assess Resolution 1-17S. As part of this assessment, the ACCO is also exploring alternative solutions to address concerns brought forward by the Alberta Association of Municipal Districts and Counties (AAMDC).

Development:

Though it is positive that the Government of Alberta has indicated in its response that multiple ministries and the Alberta Climate Change Office are exploring alternative solutions to address concerns regarding the carbon levy that have been identified by the AAMDC, there is no indication that exemption certificates will be issued as requested in this resolution.  The AAMDC’s Climate Change Advisory Committee recognized the benefit that Alberta’s agricultural lands serves as a carbon sink, and supports the need for continued advocacy for an exemption from the carbon levy on natural gas and propane used for food production.  Due to the lack of commitment by the Government of Alberta in moving this forward, this resolution has been assigned a status of Intent Not Met. The AAMDC will continue to work with the government and monitor any resulting develops related to this issue.

Provincial Ministries:
Environment and Parks
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