Regulations Amending Part 1 of Schedule 1 and Schedule 2 to the Greenhouse Gas Pollution Pricing Act: SOR/2019-79

Canada Gazette, Part II, Volume 153, Number 7

Registration
SOR/2019-79 March 26, 2019

GREENHOUSE GAS POLLUTION PRICING ACT

P.C. 2019-218 March 25, 2019

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 166 of the Greenhouse Gas Pollution Pricing Act footnote a, taking into account, as the primary factor, the stringency of the provincial pricing mechanisms for greenhouse gas emissions, makes the annexed Regulations Amending Part 1 of Schedule 1 and Schedule 2 to the Greenhouse Gas Pollution Pricing Act.

Regulations Amending Part 1 of Schedule 1 and Schedule 2 to the Greenhouse Gas Pollution Pricing Act

Amendments

1 Part 1 of Schedule 1 to the Greenhouse Gas Pollution Pricing Act footnote 1 is amended by adding the following after the heading “Provinces and Areas for the Purposes of Part 1 of the Act”:

Table 1

List of Provinces
Item Name of Province
1 Ontario
2 New Brunswick
3 Manitoba
4 Saskatchewan

2 Table 1 of Part 1 of Schedule 1 to the Act is amended by adding the following in numerical order:

Item Name of Province
5 Yukon
6 Nunavut

3 Tables 1 to 5 of Schedule 2 to the Act are replaced with the following:

TABLE 1

Rates of charge applicable for the period beginning on April 1, 2019 and ending on March 31, 2020
Column 1

Item
Column 2

Type
Column 3

Unit
Column 4

Listed Province
Column 5

Rate
1 Aviation gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0498

0.0498

0.0498

0.0498

2 Aviation turbo fuel $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0516

0.0516

0.0516

0.0516

3 Butane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0356

0.0356

0.0356

0.0356

4 Ethane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0204

0.0204

0.0204

0.0204

5 Gas liquids $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0333

0.0333

0.0333

0.0333

6 Gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0442

0.0442

0.0442

0.0442

7 Heavy fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0637

0.0637

0.0637

0.0637

8 Kerosene $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0516

0.0516

0.0516

0.0516

9 Light fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0537

0.0537

0.0537

0.0537

10 Methanol $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0220

0.0220

0.0220

0.0220

11 Naphtha $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0451

0.0451

0.0451

0.0451

12 Petroleum coke $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0767

0.0767

0.0767

0.0767

13 Pentanes plus $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0356

0.0356

0.0356

0.0356

14 Propane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0310

0.0310

0.0310

0.0310

15 Coke oven gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0140

0.0140

0.0140

0.0140

16 Marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0391

0.0391

0.0391

0.0391

17 Non-marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0517

0.0517

0.0517

0.0517

18 Still gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0540

0.0540

0.0540

0.0540

19 Coke $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

63.59

63.59

63.59

63.59

20 High heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

45.03

45.03

45.03

45.03

21 Low heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

35.45

35.45

35.45

35.45

22 Combustible waste $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

39.95

39.95

39.95

39.95

TABLE 2

Rates of charge applicable for the period beginning on April 1, 2020 and ending on March 31, 2021

Column 1

Item

Column 2

Type

Column 3

Unit

Column 4

Listed Province

Column 5

Rate

1 Aviation gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0747

0.0747

0.0747

0.0747

2 Aviation turbo fuel $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0775

0.0775

0.0775

0.0775

3 Butane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0534

0.0534

0.0534

0.0534

4 Ethane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0306

0.0306

0.0306

0.0306

5 Gas liquids $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0499

0.0499

0.0499

0.0499

6 Gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0663

0.0663

0.0663

0.0663

7 Heavy fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0956

0.0956

0.0956

0.0956

8 Kerosene $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0775

0.0775

0.0775

0.0775

9 Light fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0805

0.0805

0.0805

0.0805

10 Methanol $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0329

0.0329

0.0329

0.0329

11 Naphtha $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0676

0.0676

0.0676

0.0676

12 Petroleum coke $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1151

0.1151

0.1151

0.1151

13 Pentanes plus $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0534

0.0534

0.0534

0.0534

14 Propane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0464

0.0464

0.0464

0.0464

15 Coke oven gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0210

0.0210

0.0210

0.0210

16 Marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0587

0.0587

0.0587

0.0587

17 Non-marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0776

0.0776

0.0776

0.0776

18 Still gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0810

0.0810

0.0810

0.0810

19 Coke $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

95.39

95.39

95.39

95.39

20 High heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

67.55

67.55

67.55

67.55

21 Low heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

53.17

53.17

53.17

53.17

22 Combustible waste $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

59.92

59.92

59.92

59.92

TABLE 3

Rates of charge applicable for the period beginning on April 1, 2021 and ending on March 31, 2022

Column 1

Item

Column 2

Type

Column 3

Unit

Column 4

Listed Province

Column 5

Rate

1 Aviation gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0995

0.0995

0.0995

0.0995

2 Aviation turbo fuel $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1033

0.1033

0.1033

0.1033

3 Butane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0712

0.0712

0.0712

0.0712

4 Ethane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0408

0.0408

0.0408

0.0408

5 Gas liquids $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0666

0.0666

0.0666

0.0666

6 Gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0884

0.0884

0.0884

0.0884

7 Heavy fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1275

0.1275

0.1275

0.1275

8 Kerosene $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1033

0.1033

0.1033

0.1033

9 Light fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1073

0.1073

0.1073

0.1073

10 Methanol $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0439

0.0439

0.0439

0.0439

11 Naphtha $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0902

0.0902

0.0902

0.0902

12 Petroleum coke $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1535

0.1535

0.1535

0.1535

13 Pentanes plus $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0712

0.0712

0.0712

0.0712

14 Propane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0619

0.0619

0.0619

0.0619

15 Coke oven gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0280

0.0280

0.0280

0.0280

16 Marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0783

0.0783

0.0783

0.0783

17 Non-marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1034

0.1034

0.1034

0.1034

18 Still gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1080

0.1080

0.1080

0.1080

19 Coke $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

127.19

127.19

127.19

127.19

20 High heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

90.07

90.07

90.07

90.07

21 Low heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

70.90

70.90

70.90

70.90

22 Combustible waste $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

79.89

79.89

79.89

79.89

TABLE 4

Rates of charge applicable after March 31, 2022

Column 1

Item

Column 2

Type

Column 3

Unit

Column 4

Listed Province

Column 5

Rate

1 Aviation gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1244

0.1244

0.1244

0.1244

2 Aviation turbo fuel $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1291

0.1291

0.1291

0.1291

3 Butane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0890

0.0890

0.0890

0.0890

4 Ethane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0509

0.0509

0.0509

0.0509

5 Gas liquids $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0832

0.0832

0.0832

0.0832

6 Gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1105

0.1105

0.1105

0.1105

7 Heavy fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1593

0.1593

0.1593

0.1593

8 Kerosene $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1291

0.1291

0.1291

0.1291

9 Light fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1341

0.1341

0.1341

0.1341

10 Methanol $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0549

0.0549

0.0549

0.0549

11 Naphtha $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1127

0.1127

0.1127

0.1127

12 Petroleum coke $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1919

0.1919

0.1919

0.1919

13 Pentanes plus $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0890

0.0890

0.0890

0.0890

14 Propane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0774

0.0774

0.0774

0.0774

15 Coke oven gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0350

0.0350

0.0350

0.0350

16 Marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.0979

0.0979

0.0979

0.0979

17 Non-marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1293

0.1293

0.1293

0.1293

18 Still gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

0.1350

0.1350

0.1350

0.1350

19 Coke $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

158.99

158.99

158.99

158.99

20 High heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

112.58

112.58

112.58

112.58

21 Low heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

88.62

88.62

88.62

88.62

22 Combustible waste $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

99.87

99.87

99.87

99.87

4 Tables 1 to 4 of Schedule 2 to the Act are replaced with the following:

TABLE 1

Rates of charge applicable for the period beginning on April 1, 2019 and ending on March 31, 2020

Column 1

Item

Column 2

Type

Column 3

Unit

Column 4

Listed Province

Column 5

Rate

1 Aviation gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0498

0.0498

0.0498

0.0498

0

0

2 Aviation turbo fuel $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0516

0.0516

0.0516

0.0516

0

0

3 Butane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0356

0.0356

0.0356

0.0356

0.0356

0.0356

4 Ethane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0204

0.0204

0.0204

0.0204

0.0204

0.0204

5 Gas liquids $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0333

0.0333

0.0333

0.0333

0.0333

0.0333

6 Gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0442

0.0442

0.0442

0.0442

0.0442

0.0442

7 Heavy fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0637

0.0637

0.0637

0.0637

0.0637

0.0637

8 Kerosene $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0516

0.0516

0.0516

0.0516

0.0516

0.0516

9 Light fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0537

0.0537

0.0537

0.0537

0.0537

0.0537

10 Methanol $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0220

0.0220

0.0220

0.0220

0.0220

0.0220

11 Naphtha $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0451

0.0451

0.0451

0.0451

0.0451

0.0451

12 Petroleum coke $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0767

0.0767

0.0767

0.0767

0.0767

0.0767

13 Pentanes plus $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0356

0.0356

0.0356

0.0356

0.0356

0.0356

14 Propane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0310

0.0310

0.0310

0.0310

0.0310

0.0310

15 Coke oven gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0140

0.0140

0.0140

0.0140

0.0140

0.0140

16 Marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0391

0.0391

0.0391

0.0391

0.0391

0.0391

17 Non-marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0517

0.0517

0.0517

0.0517

0.0517

0.0517

18 Still gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0540

0.0540

0.0540

0.0540

0.0540

0.0540

19 Coke $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

63.59

63.59

63.59

63.59

63.59

63.59

20 High heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

45.03

45.03

45.03

45.03

45.03

45.03

21 Low heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

35.45

35.45

35.45

35.45

35.45

35.45

22 Combustible waste $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

39.95

39.95

39.95

39.95

39.95

39.95

TABLE 2

Rates of charge applicable for the period beginning on April 1, 2020 and ending on March 31, 2021

Column 1

Item

Column 2

Type

Column 3

Unit

Column 4

Listed Province

Column 5

Rate

1 Aviation gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0747

0.0747

0.0747

0.0747

0

0

2 Aviation turbo fuel $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0775

0.0775

0.0775

0.0775

0

0

3 Butane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0534

0.0534

0.0534

0.0534

0.0534

0.0534

4 Ethane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0306

0.0306

0.0306

0.0306

0.0306

0.0306

5 Gas liquids $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0499

0.0499

0.0499

0.0499

0.0499

0.0499

6 Gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0663

0.0663

0.0663

0.0663

0.0663

0.0663

7 Heavy fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0956

0.0956

0.0956

0.0956

0.0956

0.0956

8 Kerosene $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0775

0.0775

0.0775

0.0775

0.0775

0.0775

9 Light fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0805

0.0805

0.0805

0.0805

0.0805

0.0805

10 Methanol $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0329

0.0329

0.0329

0.0329

0.0329

0.0329

11 Naphtha $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0676

0.0676

0.0676

0.0676

0.0676

0.0676

12 Petroleum coke $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1151

0.1151

0.1151

0.1151

0.1151

0.1151

13 Pentanes plus $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0534

0.0534

0.0534

0.0534

0.0534

0.0534

14 Propane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0464

0.0464

0.0464

0.0464

0.0464

0.0464

15 Coke oven gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0210

0.0210

0.0210

0.0210

0.0210

0.0210

16 Marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0587

0.0587

0.0587

0.0587

0.0587

0.0587

17 Non-marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0776

0.0776

0.0776

0.0776

0.0776

0.0776

18 Still gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0810

0.0810

0.0810

0.0810

0.0810

0.0810

19 Coke $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

95.39

95.39

95.39

95.39

95.39

95.39

20 High heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

67.55

67.55

67.55

67.55

67.55

67.55

21 Low heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

53.17

53.17

53.17

53.17

53.17

53.17

22 Combustible waste $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

59.92

59.92

59.92

59.92

59.92

59.92

TABLE 3

Rates of charge applicable for the period beginning on April 1, 2021 and ending on March 31, 2022

Column 1

Item

Column 2

Type

Column 3

Unit

Column 4

Listed Province

Column 5

Rate

1 Aviation gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0995

0.0995

0.0995

0.0995

0

0

2 Aviation turbo fuel $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1033

0.1033

0.1033

0.1033

0

0

3 Butane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0712

0.0712

0.0712

0.0712

0.0712

0.0712

4 Ethane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0408

0.0408

0.0408

0.0408

0.0408

0.0408

5 Gas liquids $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0666

0.0666

0.0666

0.0666

0.0666

0.0666

6 Gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0884

0.0884

0.0884

0.0884

0.0884

0.0884

7 Heavy fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1275

0.1275

0.1275

0.1275

0.1275

0.1275

8 Kerosene $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1033

0.1033

0.1033

0.1033

0.1033

0.1033

9 Light fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1073

0.1073

0.1073

0.1073

0.1073

0.1073

10 Methanol $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0439

0.0439

0.0439

0.0439

0.0439

0.0439

11 Naphtha $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0902

0.0902

0.0902

0.0902

0.0902

0.0902

12 Petroleum coke $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1535

0.1535

0.1535

0.1535

0.1535

0.1535

13 Pentanes plus $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0712

0.0712

0.0712

0.0712

0.0712

0.0712

14 Propane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0619

0.0619

0.0619

0.0619

0.0619

0.0619

15 Coke oven gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0280

0.0280

0.0280

0.0280

0.0280

0.0280

16 Marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0783

0.0783

0.0783

0.0783

0.0783

0.0783

17 Non-marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1034

0.1034

0.1034

0.1034

0.1034

0.1034

18 Still gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1080

0.1080

0.1080

0.1080

0.1080

0.1080

19 Coke $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

127.19

127.19

127.19

127.19

127.19

127.19

20 High heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

90.07

90.07

90.07

90.07

90.07

90.07

21 Low heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

70.90

70.90

70.90

70.90

70.90

70.90

22 Combustible waste $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

79.89

79.89

79.89

79.89

79.89

79.89

TABLE 4

Rates of charge applicable after March 31, 2022

Column 1

Item

Column 2

Type

Column 3

Unit

Column 4

Listed Province

Column 5

Rate

1 Aviation gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1244

0.1244

0.1244

0.1244

0

0

2 Aviation turbo fuel $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1291

0.1291

0.1291

0.1291

0

0

3 Butane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0890

0.0890

0.0890

0.0890

0.0890

0.0890

4 Ethane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0509

0.0509

0.0509

0.0509

0.0509

0.0509

5 Gas liquids $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0832

0.0832

0.0832

0.0832

0.0832

0.0832

6 Gasoline $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1105

0.1105

0.1105

0.1105

0.1105

0.1105

7 Heavy fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1593

0.1593

0.1593

0.1593

0.1593

0.1593

8 Kerosene $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1291

0.1291

0.1291

0.1291

0.1291

0.1291

9 Light fuel oil $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1341

0.1341

0.1341

0.1341

0.1341

0.1341

10 Methanol $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0549

0.0549

0.0549

0.0549

0.0549

0.0549

11 Naphtha $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1127

0.1127

0.1127

0.1127

0.1127

0.1127

12 Petroleum coke $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1919

0.1919

0.1919

0.1919

0.1919

0.1919

13 Pentanes plus $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0890

0.0890

0.0890

0.0890

0.0890

0.0890

14 Propane $/litre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0774

0.0774

0.0774

0.0774

0.0774

0.0774

15 Coke oven gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0350

0.0350

0.0350

0.0350

0.0350

0.0350

16 Marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.0979

0.0979

0.0979

0.0979

0.0979

0.0979

17 Non-marketable natural gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1293

0.1293

0.1293

0.1293

0.1293

0.1293

18 Still gas $/cubic metre

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

0.1350

0.1350

0.1350

0.1350

0.1350

0.1350

19 Coke $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

158.99

158.99

158.99

158.99

158.99

158.99

20 High heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

112.58

112.58

112.58

112.58

112.58

112.58

21 Low heat value coal $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

88.62

88.62

88.62

88.62

88.62

88.62

22 Combustible waste $/tonne

(a) Ontario

(b) New Brunswick

(c) Manitoba

(d) Saskatchewan

(e) Yukon

(f) Nunavut

99.87

99.87

99.87

99.87

99.87

99.87

Coming into Force

5 (1) Sections 1 and 3 come into force on April 1, 2019.

(2) Sections 2 and 4 come into force on July 1, 2019.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

The Greenhouse Gas Pollution Pricing Act (GGPPA) received royal assent on June 21, 2018. footnote 2 The GGPPA provides the legal framework and enabling authorities for the federal carbon pollution pricing backstop system (the federal backstop system) for the purpose of ensuring that the pricing of greenhouse gas (GHG) emissions is applied broadly in Canada. The federal backstop system has two components: a charge on fossil fuels and an output-based pricing system (OBPS) for large industry. Further, the GGPPA provides the Governor in Council with authority to determine in which provinces, territories and areas the GGPPA applies, by amending Schedule 1 to the GGPPA through regulations and, with respect to the fuel charge, by amending Schedule 2 to the GGPPA through regulations. Amendments to Schedule 1 take into account recommendations resulting from the assessment of the stringency of provincial and territorial pollution pricing systems and alignment with the benchmark elements of the Pan-Canadian Approach to Pricing Carbon Pollution (the Benchmark), including the additional published guidance on the Benchmark.footnote 3, footnote 4 The federal backstop system will apply, in whole or in part, in those provinces, territories and areas listed in Schedule 1 (backstop jurisdictions). Currently, Part 1 of Schedule 1 does not list any backstop jurisdictions. It is necessary to list specific provinces and territories in Part 1 of Schedule 1 to have the fuel charge component of the federal backstop system apply to these jurisdictions.

Background

At the United Nations Framework Convention on Climate Change conference in December 2015, the international community, including Canada, concluded the Paris Agreement, which is intended to reduce GHG emissions to limit the rise in global average temperature to less than two degrees Celsius (2 °C) and to pursue efforts to limit it to 1.5 °C above pre-industrial levels. It is widely recognized that economy-wide pollution pricing is the most efficient way to reduce GHG emissions. Pricing pollution drives innovative solutions to provide low-carbon choices for consumers and businesses. As part of its commitments made under the Paris Agreement, Canada pledged to reduce national GHG emissions by 30% below 2005 levels by 2030.

In October 2016, the Government of Canada published the Pan-Canadian Approach to Pricing Carbon Pollution, which outlines the principles on which the pricing of pollution in Canada will be based.footnote 5This publication also states that a federal backstop system will apply in all Canadian jurisdictions that do not have a pollution pricing system in place that aligns with the Benchmark by 2018. The Benchmark is intended to ensure that pollution pricing applies to a broad set of emission sources across Canada, with increasing stringency over time. The complete Benchmark is presented as an annex at the end of this Regulatory Impact Analysis Statement.

Part 1 of the GGPPA, administered by the Canada Revenue Agency, establishes a charge on fossil fuels — known as the fuel charge — that will generally be paid by fuel producers or distributors and generally applies to fossil fuels produced, delivered or used in a backstop jurisdiction, brought into a backstop jurisdiction from another place in Canada, or imported into Canada at a location in a backstop jurisdiction. Part 1 of the GGPPA provides the legal framework and enabling authorities for the fuel charge with the aim of ensuring that the pricing of GHG emissions is applied broadly in Canada. The fuel charge applies at the rates set out in Schedule 2 to the GGPPA and those rates vary by fuel type. The rates increase annually up to 2022.

Part 2 of the GGPPA, administered by the Department of the Environment, provides authority to establish an OBPS. The aim of the OBPS is to minimize competitiveness risks for emissions-intensive and trade-exposed facilities in backstop jurisdictions, while retaining a price signal on pollution and thus an incentive to reduce GHG emissions. Facilities participating in the OBPS will be able to purchase charge-free fuel and will instead face a compliance obligation on the portion of their GHG emissions that exceed prescribed limits. Participants will have the option to comply with the OBPS regulations by either remitting eligible compliance units or paying the excess emissions charge, or through a combination of these options.

Schedule 1 to the GGPPA is divided into two parts. Part 1 of the GGPPA (the fuel charge) will apply in the backstop jurisdictions listed in Part 1 of Schedule 1 to the GGPPA. Similarly, facilities that meet specified criteria and are located in any of the backstop jurisdictions listed in Part 2 of Schedule 1 to the GGPPA will be subject to Part 2 of the GGPPA (the OBPS). These lists take into account recommendations resulting from the assessment of the stringency of provincial and territorial pollution pricing systems and alignment with the Benchmark.

Objective

The objective of the regulations amending Part 1 of Schedule 1 and Schedule 2 to the GGPPA (the Regulations) is to add a list of provinces and territories to Part 1 of Schedule 1 and Schedule 2 in order to have Part 1 of the GGPPA apply in these backstop jurisdictions. The Regulations also provide relief, by applying a fuel charge rate of zero dollars per litre for aviation gasoline and aviation turbo fuel for the territories listed in Part 1 of Schedule 1 and Schedule 2.

Description

In accordance with subsections 166(2) and (4) of the GGPPA, the Regulations identify the jurisdictions in which the fuel charge under Part 1 of the GGPPA will apply by adding the following provinces and territories to Part 1 of Schedule 1 and Schedule 2 to the GGPPA:

The Regulations come into force on April 1, 2019, for the provinces listed in Part 1 of Schedule 1 and Schedule 2 to the GGPPA and on July 1, 2019, for the territories (Yukon and Nunavut) listed in those Schedules.

Schedule 2 to the GGPPA is also amended by the Regulations to specify the rates of the fuel charge that will apply in each jurisdiction. The fuel charge rates reflect a carbon pollution price of $20 per tonne of carbon dioxide equivalent (CO2e) in 2019, rising by $10 per tonne annually to $50 per tonne in 2022. For the provinces of Ontario, New Brunswick, Manitoba and Saskatchewan, the rates will become effective as of April 2019, with future increases effective as of April of each year specified in the tables in Schedule 2.

The fuel charge rates that will apply in Yukon and Nunavut will become effective as of July 2019, with future increases effective as of April 1 of each year specified in the tables in Schedule 2. The Regulations also provide that a fuel charge rate of zero dollars per litre will apply to aviation gasoline and aviation turbo fuel for Yukon and Nunavut.

Regulatory development

Consultation

In March 2016, Canada’s First Ministers committed to putting Canada on a credible path to meet or exceed its commitments made under the Paris Agreement. The First Ministers agreed that such a commitment would require transitioning to a low-carbon economy by adopting a broad range of domestic measures, including pollution pricing, adapted to the specific circumstances of each province and territory.

On December 9, 2016, the Pan-Canadian Framework on Clean Growth and Climate Change (the Pan-Canadian Framework) was finalized at a climate-focused First Ministers meeting in Ottawa. A central component of the Pan-Canadian Framework is the pricing of carbon pollution, which is expected to lead to substantial GHG emission reductions, contributing to meeting Canada’s international commitments and the transition to a low-carbon economy.

The federal government is committed to ensuring that the provinces and territories have the flexibility to design their own policies and programs, while ensuring that pollution pricing applies to a broad set of GHG emission sources across Canada with increasing stringency over time. Provinces and territories can implement the type of pollution pricing system that makes sense for their specific circumstances (i.e. either an explicit price-based system or a cap-and-trade system).

In May 2017, the Government of Canada released a technical paper on the federal backstop system describing the two main components of the system:

In December 2017, the Government of Canada requested that provinces and territories provide information by September 1, 2018, describing how they intend to meet the Benchmark.

In January 2018, the federal government released draft legislative proposals relating to the proposed federal backstop system for public comment. On March 27, 2018, the Government of Canada tabled the GGPPA in the House of Commons, as part of the Budget Implementation Act, 2018, No. 1 (Bill C-74). On June 21, 2018, Bill C-74, including the GGPPA, received royal assent.footnote 7

Also in January 2018, the Government of Canada released a draft regulatory framework for the OBPS outlining the design of the system. footnote 8 Further, in May 2018, the Department of the Environment published a document related to the regulatory framework providing additional details on compliance units and their use in the OBPS. footnote 9 In setting output-based standards, the Department of the Environment is taking into account the emissions intensity and trade exposure of each sector, as well as other factors that may lead a sector to be at competitiveness risk due to the pricing of pollution.

On October 23, 2018, after the review of each provincial and territorial system, the federal government announced that it will implement the federal backstop system, in whole or in part, in 2019, in any province or territory that has requested it or that does not have a pollution pricing system in place that aligns with the Benchmark. The assessment process considered how the elements of the given provincial or territorial pollution pricing system contribute as a whole to meeting the Benchmark.

On October 31, 2018, regulatory amendments on the OBPS were published in the Canada Gazette Part II. These included the Order Amending Part 2 of Schedule 1 to the Greenhouse Gas Pollution Pricing Act (SOR/2018-212) [listing provinces and territories for the purposes of the OBPS], the Notice Establishing Criteria Respecting Facilities and Persons and Publishing Measures (Registration Notice), and the Greenhouse Gas Emissions Information Production Order (Information Order).

Regulatory analysis

Benefits and costs

The Regulations will be administered and enforced as part of the fuel charge regime under Part 1 of the GGPPA, and any requirements relating to the fuel charge under Part 1 of the GGPPA are derived from the GGPPA itself. Accordingly, the Regulations do not increase or decrease the level of costs imposed on Canadians, businesses, governments or other stakeholders.

Small business lens

As the fuel charge requirements under Part 1 of the GGPPA generally apply to fuel producers and fuel distributors upstream in the distribution chain, small businesses are not expected to incur significant compliance costs due to the listing of backstop jurisdictions in Part 1 of Schedule 1 and Schedule 2 to the GGPPA. As a result, the small business lens does not apply to the Regulations.

“One-for-One” Rule

The Regulations trigger the application of Part 1 of the GGPPA, and any requirements relating to the fuel charge under Part 1 of the GGPPA are derived from the GGPPA itself. Accordingly, the Regulations do not increase or decrease the level of administrative burden imposed on business; therefore, the “One-for-One” Rule does not apply.

Regulatory cooperation and alignment

The Regulations are not related to a work plan or commitment under a formal regulatory cooperation forum.

Strategic environmental assessment

The Regulations trigger the application of Part 1 of the GGPPA, which is an essential component of the Pan-Canadian Approach to Pricing Carbon Pollution. Carbon pollution pricing intends to reduce GHG emissions in the long term by encouraging behavioural changes and stimulating investments in low-carbon innovation. Implementing the federal backstop enables implementation of the pan-Canadian approach to pricing carbon pollution and extending pollution pricing throughout Canada. By helping to ensure that all jurisdictions across Canada have a price on carbon pollution that meets the federal standard, it will support the reduction of GHG emissions and help achieve the objectives of protecting the environment, stimulating investments in low-carbon innovation and creating a sustainable clean-growth economy. It will directly and indirectly contribute to all of the goals of the 2016–2019 Federal Sustainable Development Strategy, but particularly to the goals of effective action on climate change, clean growth and clean energy.footnote 10

Gender-based analysis plus (GBA+)

The Regulations trigger the application of Part 1 of the GGPPA, which is an essential component of the Pan-Canadian Approach to Pricing Carbon Pollution.

The GBA+ concluded that the application of the carbon pollution price can have disproportionate impacts on low-income and vulnerable populations. These impacts are neutralized or mitigated in the Pan-Canadian Approach to Pricing Carbon Pollution through the recycling of the direct proceeds to individuals. Carbon pollution pricing, with well designed proceed return as a core element, will minimize the impacts of climate change on Canadians and the Canadian economy contributing to the overall resilience of the country and benefiting all, including potentially vulnerable groups, while maintaining the overall incentives of the price signal to incent behavioural change to reduce GHG emissions and help contribute to the Government’s climate change objectives. Proceeds recycling can also be directed to further mitigate climate change impacts, which can particularly benefit groups that are more vulnerable to the impacts of changing weather patterns.

On October 23, 2018, the Government announced that in Ontario, New Brunswick, Manitoba and Saskatchewan, the federal government will return the bulk of the direct proceeds from the fuel charge directly to individuals and families, through Climate Action Incentive payments, with a top-up of 10% for those living in small and rural communities. The remainder will go to support small and medium-sized businesses, municipalities, universities, colleges, schools, hospitals, non-profits and Indigenous communities.

Implementation, compliance and enforcement, and service standards

The Regulations will be implemented, administered and enforced by the Canada Revenue Agency and, at the border, by the Canada Border Services Agency as part of the fuel charge regime under Part 1 of the GGPPA.

Contacts

Gervais Coulombe
Sales Tax Division
Tax Policy Branch
Department of Finance Canada
90 Elgin Street
Ottawa, Ontario
K1A 0G5
Telephone: 613‑369‑3773

Ron Hagmann
Excise and GST/HST Rulings Directorate
Canada Revenue Agency
Place de Ville, Tower A, 9th Floor
320 Queen Street
Ottawa, Ontario
K1A 0L5
Telephone: 613‑670‑7360

Annex: The Benchmark

The Government of Canada published the Pan-Canadian Approach to Pricing Carbon Pollution on October 3, 2016, and followed up with the publication of guidance on the Benchmark in August 2017 and supplemental guidance on the Benchmark in December 2017. The Benchmark is comprised of the elements below; the guidance published in 2017 is shown in italics.

1. Timely introduction

2. Common scope

3. Two systems

4. Legislated increases in stringency, based on modelling, to contribute to our national target and provide market certainty

5. Revenues remain in the jurisdiction of origin

6. Federal backstop system

7. Five-year review

8. Reporting