The federal government has detailed it’s pollution pricing plan for Saskatchewan.
Minister of Public Safety Ralph Goodale laid it out in Regina Tuesday morning, following Prime Minister Justin Trudeau’s announcement in Toronto of continuing ahead to place a price on pollution.
While the Prairie Resilience plan was generally accepted, there were some gaps pointed out.
“Since the provincial plan doesn’t cover either electricity generation or natural gas pipelines, the federal backstop will apply to only these two sectors among heavy emitters to make the results more comprehensible,” said Goodale.
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The plan would see an approximate 4.42 cents/litre increase in gasoline by April of 2019, with that being collected from both fuel producers and distributors. Costs would continue to rise as time progresses. Gas and diesel used for farm trucks and machinery will be exempted.
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In total, the estimated direct and indirect impact on the average Saskatchewan households, said Goodale, comes out to about $400, money which will be returned.
“Primarily through a new, tax-free, climate action incentive which will be paid to every household when everyone files their federal income tax next spring,” said Goodale.
Goodale noted a large majority of Saskatchewan household will receive incentives larger than the actual costs, saying the average family of four will receive a return of just over $600, while the average provincial household will get about $598. A formula also provides a 10% top up for rural areas outside of Regina and Saskatoon.
“Most individuals and families will be better off with this federal plan from the very beginning,” said Goodale. ” If they strive to become more energy efficient, which is the objective, everything extra that they gain stays in their pockets.”