Minister of Environment and Climate Change Catherine McKenna poses for a photo during a Climate Leaders' summit in Chelsea, Que., on May 17, 2018. iPolitics/Matthew Usherwood

The provincial governments of Ontario, Saskatchewan and New Brunswick have all agreed in principle to how the government wants to spend a portion of the new tax on carbon-emitting products like gasoline and diesel.

Manitoba, though, says it won’t accept the funding, with Premier Brian Pallister on Thursday telling local media the plan was a “hoax.”

Federal Environment Minister Catherine McKenna announced last month that the federal government planned to put three per cent of this year’s carbon tax revenues towards projects that make schools more energy efficient, like installing better lighting, heating and cooling systems or more efficient windows.

The government’s carbon tax, which the Trudeau Liberals passed into law and put into action at the start of this year, is only applied in provinces which don’t have an emissions-based levy that is up to the par of its own. The federal government’s legislation states that all revenues must return to the jurisdiction where they’re collected. 90 per cent of the funds are promised to directly return to consumers through an offsetting tax rebate. The remaining 10 per cent is dedicated to help municipalities, hospitals, universities, schools and and small and medium-sized businesses become more energy efficient.

The federal government decided that that three per cent (an estimated $60 million) of total proceeds would help retrofit schools in Ontario, Saskatchewan, New Brunswick and Manitoba – the provinces where the federal levy is collected – this year.

READ MORE: Feds pledge $60 million in carbon tax revenues to help schools become more energy efficient

When she announced the federal government’s intention for the tax in June, McKenna asked for a formal response from the provinces by today.

iPolitics confirmed that the environment ministers of Ontario, Saskatchewan and New Brunswick that each wrote McKenna telling her they accepted her proposal, but that they each had concerns or additional questions about the plan.

“I am writing to confirm that our government agrees in principle to redistributing these funds back to Ontario school boards, subject to any necessary internal approvals. … That said, it is our position that the funds generated by the carbon tax should never have been taken from Ontario’s schools, families and businesses in the first place,” Ontario Environment Minister Jeff Yurek wrote to McKenna in a letter, which was provided to iPolitics.

“We are accepting the funding commitment in principle but there are some details to be worked out,” Anne Mooers, a spokesperson for New Brunswick’s Department of Environment said.

“Our government has agreed to enter negotiations to receive the funding to ensure the proceeds of the tax that were levied in Saskatchewan stay in Saskatchewan,” Matthew Glover, a spokesperson for Saskatchewan’s government said in an email.

Paul Hamnett, another spokesperson for Saskatchewan’s government, said over the phone on Thursday that there’s “a lot to be worked out” still between the province and the federal government, specifically regarding cost coverage. In her pitch to the provinces, McKenna proposed a cap on energy efficient upgrades’ costs at 40 per cent. While McKenna says in an appendix of her letter that “there is no requirement for provincial governments to match the federal funding,” Glover said that funding for these upgrades will inevitably come out of the budget that school boards receive from the provincial government.

The federal government projects that Ontario schools will receive $41 million, Saskatchewan schools will receive $12 million, and New Brunswick schools will receive $2 million to contribute towards retrofit projects.

Manitoba schools were expected to receive $5 million under the plan.

But on Thursday, Pallister accused the federal government of overreaching into provincial areas of responsibility.

“We’re already doing leading-green architecture on our schools and building a record number,” he said.

“We really don’t think this is how a country should be run and so no, the feds want to have a PR campaign to promote the carbon tax and they’re on their own.”

In a statement sent to iPolitics by email on Friday, McKenna said Pallister was “playing politics.”

“It is disappointing that Mr. Pallister has decided to reject money to help Manitoba’s schools fight climate change, become more energy efficient, and save money,” McKenna said.

She maintained that the carbon tax revenues would be given back to Manitoba and that the $5 million would help Manitoba schools install “better windows, lighting, and heating.”

In a letter responding to McKenna’s proposal obtained by iPolitics, Manitoba’s Education Minister Kelvin Goertzen said the province “cannot accept another Ottawa intrusion.”

“None of the increasing federal carbon tax revenue – or the GST layered upon it – should be taken from Manitobans in the first place,” the letter says.

Here’s Goertzen’s full letter:

READ MORE: Provinces quiz McKenna on eligibility rules for new carbon tax revenue program

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