Article content continued

He also said the province’s long-term plan for returning to a surplus by 2023/2024 will require the use of carbon tax proceeds.

“Beginning in 2021, additional revenue resulting from the federally imposed carbon price tied to the construction of the Trans Mountain pipeline will be used to support vital public services as the province stays on track to balance the budget by 2023,” Ceci said.

The province’s tax on carbon was immediately controversial when it was first announced in November 2015. At that time, Premier Rachel Notley said the carbon levy, which rose from $20 per tonne in 2017 to $30 per tonne this year, would be revenue-neutral because the proceeds would not be directed to general revenues.

“We will put every penny raised through the carbon price to work here in Alberta – building our economy, creating jobs, and doubling down on efforts to reduce pollution and promote greater efficiency,” Notley said at the time. “The Alberta carbon price will therefore be revenue-neutral, fully recycled back into the Alberta economy.”

Now, the government plans to re-direct any carbon levy proceeds above $30 per tonne into general revenues beginning in 2021, when the price is expected to reach $50 per tonne.

The re-allocation would boost Alberta’s revenues by $100 million that year, rising to $1 billion per year by 2023, when the province expects to post a modest $700 million surplus.

Ceci dismissed concerns that there had been changes to the government’s plans for carbon funds. He said the Alberta’s portion of the tax — which he puts at $30 per tonne — would still fund pollution-reducing initiatives, while the federal portion — anything above $30 per tonne — would go to general revenue.