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;

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta (RMA) advocate to the Government of Canada to amend the Greenhouse Gas Pollution Pricing Act to allow registered non-profit organizations to apply for an exemption certificate from the federal fuel charge; and

FURTHER, BE IT RESOLVED that the RMA advocate for the Government of Canada to meet their previous mandate of support for registered non-profit organizations by allowing them to access a portion of the direct proceeds from the federal fuel charge to fund their increasing operating expenses.

Since the implementation of the Carbon Tax Repeal Act in 2019, the Government of Canada has signaled its intent to use the direct proceeds from the federal fuel charge, not issued to individuals and families through the Climate Action Incentive Payment (CAIP), to support small and medium-sized businesses, schools, hospitals, non-profits and Indigenous communities.

While the 2022 federal budget has reiterated support to indigenous groups, farmers and emission-intensive trade-exposed businesses, it does not provide direct support for non-profits groups, as promised in numerous background documents. Although the Government of Canada has earmarked $2.2 billion for the Low Carbon Economy Fund (LCEF), the LCEF only provides support for large projects that can demonstrate a reduction in Greenhouse Gas Emissions over a seven (7) year timeline. This does not help non-profit organizations which are struggling to remain operational as a result of rising utility costs onset, in part, by the federal fuel charge.

The following table shows the estimated increases in the federal fuel charge over the next seven (7) years and the estimated effect on the price of natural gas:

16-22F: Exemption of Natural Gas and Propane for Agriculture Under the Greenhouse Gas Pollution Pricing Act

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta advocate to the Government of Canada to amend the Greenhouse Gas Pollution Pricing Act to include natural gas and propane as exempted fuels for agricultural production.

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2-22S: Negative Impact of Carbon Tax on Rural Albertans

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta (RMA) conduct a rural impact analysis on the federal carbon pollution pricing system to determine how the system is negatively impacting rural Albertans and rural municipalities and share the analysis with the governments of Alberta and Canada; and

FURTHER BE IT RESOLVED that the RMA advocate to the Government of Canada for the amendment to the Greenhouse Gas Pollution Pricing Act to halt carbon tax increases on fuel.

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