Alberta offers rebates to adjust to carbon levy

EDMONTON, Alberta, April 21 (UPI) -- A provincial government in Canada said it was offering hundreds of dollars in rebates to help families adjust to a shifting energy landscape.

Residents in oil-rich Alberta next year will pay extra for gasoline, diesel and natural gas used for home-heating as part of a carbon levy. Most of the revenue generated through the levy will support the development of renewable energy and other low-carbon developments.

Shannon Phillips, the provincial minister for the environment, said the new levy would in part help put Albertans back to work and add diversity to an economy that relies heavily in oil.

"We are committed to providing Albertans with the support they need to take action and help make Alberta a leader in the fight against climate change," she said in a statement.

Officials from the opposition Wildlife party said Monday the provincial government was misleading the public about the true costs of the carbon tax. When fully implemented, the party said families would face as much as $1,000 in extra costs.

Phillips said the administration would offer full or partial rebates to low- and middle-class families, or the equivalent of around 65 percent of provincial households. The opposition said the rebate ignores cost-of-living expenses and higher utility bills.

"It's just the wrong choice to make for our economy and jobs at a time when families and businesses are being forced to squeeze every penny," opposition leader Brian Jean said in a statement.

Last month, the provincial government estimated the economy, measured in real gross domestic product, will shrink by 1.1 percent this year, after a 1.5 percent decline for full-year 2015. The total revenue forecast for the fiscal year of $31.2 billion is $478 million lower than estimated in the budget last year.

Lower crude oil prices means less revenue for the provincial government. Provincial Finance Minister Joe Ceci said non-renewable revenue could decline by as much as 90 percent, a squeeze he said could "have profound consequences for generations to come."