Non-Profit Exemption from Federal Fuel Charge

WHEREAS the lingering effects of the Covid-19 pandemic, declining community participation and contracted consumer spending has left many non-profit organizations unable to meet their operational expenses; and

WHEREAS in 2019,  Finance Canada announced its intent to apply the federal pollution pricing fuel charge in Alberta, effective January 1, 2020, as a result of the province’s May 30, 2019 repeal of its carbon levy; and

WHEREAS  Finance Canada stated that “the direct proceeds from the federal fuel charge … will go directly to individuals and families in Alberta through tax-free Climate Action Incentive payments.” And that, “the remainder will go to support other sectors, including small and medium-sized businesses, schools, hospitals, nonprofits and Indigenous communities in the province”; and

WHEREAS the background document, Proposed Application of the Federal Carbon Pollution Pricing System in Alberta, estimated that $610 million would go to support Alberta’s schools, hospitals, small and medium-sized businesses (SMEs), colleges and universities, municipalities, non-profits, and Indigenous communities over four  fiscal years from 2019-20 to 2022-23; and

WHEREAS in 2020, Finance Canada stated that 10% of the direct proceeds from the federal fuel charge would be used to support small businesses, schools, universities, municipalities, and Indigenous groups; and

WHEREAS the 2022 federal budget allocates proceeds from the federal pollution pricing fuel charge to Indigenous groups, farmers and emission-intensive trade-exposed businesses, but no longer addresses support for Alberta’s schools, hospitals, colleges and universities, municipalities and non-profit organizations; and

WHEREAS the Low Carbon Economy Fund (LCEF), which has earmarked $2.2 billion over seven years, is only available for projects that result in the reduction of greenhouse gas  emissions, and do not provide support for non-profit operational expenses; and

WHEREAS the Greenhouse Gas Pollution Pricing Act currently allows for certain groups to benefit from partial or full relief of the fuel charge through the use of an exemption certificate;