For a multi-product facility, the same approach will apply. Federal minister takes conciliatory tone on carbon pricing in the face of pushback from provinces . Based on modelling, to contribute to our national target and provide market certainty. The federal Liberals passed a law in 2018 to create a national price on carbon, to be imposed as a backstop if provinces lacked an adequate version of their own. In either case, the Registered Fuel Distributor will report to the CRA through a return and remit the levy to the Receiver General of Canada. S C H W A R T Z * I. The December 2016 Framework outlines a federal benchmark for carbon pricing that would take effect in 2018. An output-based standard is an emissions-intensity standard for a type of activity or product (e.g., tonnes of CO2e per megawatt hour of electricity). For fuels consumed in commercial road and rail transportation, the levy will apply to only the fuel that is used within a backstop jurisdiction. This will include access to a variety of enforcement measures to encourage compliance or deter future non-compliance including written warnings, administrative penalties, compliance orders and prosecution. Registered persons will need to calculate in the return the total amount of levy payable for each backstop jurisdiction and remit that amount to the Receiver General of Canada. In this case, the Registered Fuel Importer will report to the CRA through a return and remit the levy to the Receiver General of Canada (i.e., the levy is not collected at the border upon importation). The October 3, 2016 Benchmark text is provided in bold. The federal system will be consistent with the principlesFootnote 1and will return revenues to the jurisdiction of origin. Output-Based Pricing System (OBPS) which is designed for industrial emitters with GHG emissions of 50,000 tonnes CO 2 e or greater and is not applied in Alberta. international mitigation opportunities including the scope for ongoing recognition by Canadian jurisdictions of credits associated with reductions occurring in other countries. The Government may restrict the number of years that offset credits can be banked, and may require regulated facilities to replace offset credits that are revoked or invalidated after they have been submitted for compliance.Footnote 11. The output-based standard will be set at a level that represents best-in-class performance (top quartile or better) in order to drive reduced emissions intensity. Table 1: Rates of levy on liquid fossil fuels from 2018 to 2022, Aviation Turbo Fuel / Jet Fuel / Kerosene, Table 2: Rates of levy on gaseous fossil fuels from 2018 to 2022, Table 3: Rates of levy on solid fossil fuels from 2018 to 2022, High Heat Value Coal (i.e., Bituminous Coal; Anthracite). The crucial distinctions the Supreme Court should make about the federal carbon-pricing backstop. Ideally, the David Suzuki Foundation would have liked the federal government and lagging provinces to act more quickly on pricing carbon. For the output-based pricing system, regulated entities will use the same factors to calculate their emissions following a methodology that will be specified in regulations. In order to add to the transparency of the consultation process, the Government of Canada may make public some or all of the responses received or may provide summaries in its public documents. Generally, the levy will not become payable on natural gas that is delivered outside a backstop jurisdiction. For example, the carbon levy on gasoline rises to 11.05 cents per litre in 2022 from 4.42 cents per litre in 2019. These standards should be at levels that drive improved performance in carbon intensity over the 2018 to 2022 period, and should account for best-in-class performance. • Page 5, on the use of revenues: In any carbon pricing system, it is important to protect low- income or other vulnerable Canadians from cost increases they may not be able to afford. These reports will need to be third-party verified to a reasonable level of assurance by verification bodies that are accredited to ISO 14065 by a member of the International Accreditation Forum. Federal Carbon Pricing Benchmark & Backstop Proposals I. A Registered Fuel Distributor will be able to bring fuel into a backstop jurisdiction on a levy-deferred basis. More specifically, the benchmark states that jurisdictions with a direct pricing system should set a carbon price that starts at a minimum of $10 per tonne of CO 2 e in 2018 and rises by $10 per year, up to $50 per tonne of CO 2 e in 2022. To maintain program integrity, authorities will be able to revoke credits issued for projects that do not meet program requirements. The final user of a fuel will not generally have any special rights or obligations in respect of the levy, as the user will purchase levy-paid fuel in most cases. The Greenhouse Gas Pollution Pricing Act sets out the legal framework for the federal carbon pollution pricing backstop system. ... A higher benchmark … In the meantime, for fuels consumed in commercial aviation transportation, the backstop levy will only apply to fuel used in intra-jurisdictional travel. Over the five-year period of the federal carbon pricing ‘backstop’ that would amount to over $1000 paid by the average Manitoba household. 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