The carbon tax that is part of Alberta’s “climate leadership” plan released May 24 has some agricultural producers concerned about additional costs.
If passed, the new legislation will establish a carbon levy and rebate plan in law, reinvest the revenue into ways that address climate change and establish a new agency designed to develop and deliver energy efficient programs and services in the province.
The NDP government plan includes a $20 per tonne carbon levy on all fuel that emits greenhouse gases when burned: diesel, gasoline, natural gas and propane.
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The levy will rise to $30 per tonne in 2018 and is expected to generate $9.6 billion over the next five years.
The levies as of Jan. 1, 2017, will be 5.35 cents per litre on diesel, 4.49 cents per litre on gas, $1.011 per gigajoule on natural gas and 3.08 cents per litre on propane.
Marked gas and diesel used by farmers in farming operations will be exempt from the levy, but those using natural gas may see their costs rise.
Alberta’s greenhouse operators are among those who are heavy users of natural gas.
Albert Cramer, a greenhouse operator from Medicine Hat, Alta., and a member of the Alberta Greenhouse Growers Association, said he is eager to learn details of the rebate program the government proposes for producers in his business and for farmers who use natural gas for grain drying and other production needs.
Cramer said he favours a model similar to that in British Columbia.
“If they are going to put a carbon tax in, then they have to give us greenhouse guys an incentive to make our greenhouses as efficient as we can,” said Cramer.
“B.C. does the same thing. B.C. growers get almost 80 percent of it back if they can prove that they’re energy efficient.”
Cramer said energy efficiency “is not such a horrible idea. If they need to put a carbon tax on, to make themselves feel good — because that’s all it is — then you’re just forcing the grower to spend more money. But at least he can spend it (on efficiencies) and save it.”
This is the busy season for greenhouse growers, said Cramer, so the association has not yet determined what the carbon tax might mean to its members.
However, the association did ask the government to consider the B.C. model for rebates, even though the greenhouse industry was not specifically consulted.
“We haven’t really had a consultation with them. The government is just going ahead with this stuff, not even talking to the people that are affected the most. And that’s too bad.”
The government’s rebate plan indicates a small business corporate income tax rate reduction to two percent from one percent effective in January.
That may offset costs for greenhouse operators, said Cramer.
Alberta families who earn less than $95,000 annually and individuals who earn less than $47,500 annually will be eligible for rebates, according to the proposed plan.
The opposition Wildrose Party criticized the carbon tax. Shadow environment minister Todd Loewen said it would mean $500 or more in direct taxes to Alberta households “with hundreds more in indirect costs as prices rise for all consumer goods.” He said farmers would see costs climb for heat, electricity and water.
Alberta Liberal leader David Swann was also critical of the carbon tax and the rebate plan.
“The stated purpose of the carbon tax is to reduce consumption, but 60 percent of Albertan households will receive the full rebate amount,” he said in a news release.
“How will this incentivize conservation and what metrics did the government use to determine how much tax is enough to change behaviour?”
