UPDATED: Ottawa-imposed carbon price will mean jump in P.E.I. home heating costs, bigger rebate cheques
CHARLOTTETOWN, P.E.I. — P.E.I. residents can count on to see a leap in gasoline and residential heating costs subsequent summer season however may also count on to obtain lots of of {dollars} in rebate cheques.
The value will increase will come about because of a federal authorities carbon pricing backstop, which shall be imposed on Prince Edward Island, together with Nova Scotia and Newfoundland and Labrador.
Drivers will see a rise of at the least 3.3 cents per litre for gasoline as of July 1, 2023. The federal backstop will even imply a a lot larger improve within the value of house heating fuels, which have been exempt from carbon taxes since 2019.
Below this federal backstop, the value for house heating oil would improve 17.4 cents a litre whereas propane will improve 10 cents a litre as of July 2023.
That very same month, most Islanders will obtain lots of of {dollars} again from the federal authorities within the type of rebate cheques. Beginning in July of 2023, based on background documents supplied by the federal authorities, a median household of 4 will obtain quarterly rebate cheques of $240.
Yearly this is able to work out to about $960 for a family consisting of two adults and two kids. The rebate cheques shall be tax-free.
Rejection of P.E.I.’s proposal
The imposition of a federal backstop in P.E.I. represents a rejection of carbon pricing plan submitted by the Dennis King authorities final September.
A letter despatched to P.E.I.’s Atmosphere Minister Steven Myers by federal Atmosphere Minister Steven Guilbeault mentioned the province’s proposal “doesn’t align with the federal benchmark standards.”
Guilbeault-Myers letter by The Guardian on Scribd
Talking throughout query interval on Nov. 22, King mentioned the province had sought to take care of its exemption on house heating fuels, which is able to stay in place till July 2023. He pointed to the sky-high gas value will increase Prince Edward Island customers have been saddled with during the last 10 months.
King additionally mentioned the cash collected by means of carbon taxes has funded local weather change applications within the province, which he mentioned had been profitable. This included the province’s warmth pump and energetic transportation applications.
“As Islanders, we’re supportive of carbon discount. We was ninth worst within the Canadian provinces by way of emissions; now we’re fourth. I believe that speaks for itself,” King mentioned.
For the reason that earlier Liberal authorities of Wade MacLauchlan negotiated the primary carbon pricing settlement in 2018, hundreds of thousands of {dollars} of carbon pricing income have additionally been used to fund a provincial fuel tax reduce. This meant that drivers have been cushioned – to the tune of about 3.4 cents per litre – from the complete carbon value since 2019.
The brand new federal backstop may imply provincial fuel taxes could improve again to 2018 ranges.
In his letter, Guilbeault mentioned the receipt of a few of the carbon pricing income can be “conditional on Prince Edward Island sustaining its dedication to not take actions that immediately offset, cut back or negate the carbon air pollution value sign.”
It’s unclear if the P.E.I. authorities will improve its provincial fuel taxes subsequent summer season.
A carbon levy is supposed to vary client behaviour over the long run by rising the price of polluting, whereas incentivizing decrease polluting choices.
However chatting with reporters after query interval, King mentioned Island customers are extra depending on fossil fuels to warmth houses than folks in different provinces. He mentioned the province’s warmth pump incentive applications have helped cut back the proportion of households that depend on fossil fuels from 92 per cent to about 56 per cent.
He additionally mentioned most rural Islanders rely on their automobiles to commute, regardless of the province’s current investments in transit.
“Primarily what we have been making an attempt to say to Ottawa all alongside is, we’re not shopping for this as a result of we wish to pollute, we’re shopping for this as a result of proper now there aren’t any different options,” King mentioned.
Whereas the carbon pricing plans of Nova Scotia, P.E.I. and Newfoundland and Labrador have been rejected, New Brunswick is not going to see a federal backstop imposed. The Blaine Higgs authorities will hold in place a value on carbon much like the backstop on house heating and gasoline. It is going to additionally keep in place an offsetting provincial gasoline tax the province put in place in 2019.
Greens applaud federal carbon value
Talking to reporters, Inexperienced Opposition Chief Peter Bevan-Baker mentioned he was completely satisfied to see the federal carbon pricing program imposed on the province.
“Lastly (Island households) are going to obtain the complete rebate that they deserve and have deserved for so long as the carbon tax has been in place,” Bevan-Baker mentioned.
“They’ve actually forgone 1000’s of {dollars} over the previous few years that, had we had this program in place, would have been returned on to Islanders into their pockets.”
For the reason that 2019 election, the P.E.I. Greens have advocated for a “income impartial” carbon value, wherein all of the income is returned to Islanders within the type of rebate cheques.
Bevan-Baker additionally mentioned the current value fluctuations within the value of gas are prone to proceed in a decarbonizing world.
“Let’s be clear: the volatility within the market relating to fossil fuels shouldn’t be going away,” Bevan-Baker mentioned.
“And one of the best ways to take care of that, when you might have the jurisdiction as a province like P.E.I. does, is to get us off fossil fuels as rapidly as we will and transfer us to wash vitality.”
