Carbon Levy - FAQ for Producers in Alberta

• The carbon levy will be included in the price of all fuels that emit greenhouse gases when combusted. These includes transportation and heating fuels such as diesel, gasoline, natural gas and propane. It will not apply directly to consumer purchases of electricity.
• Starting January 1, 2017, the carbon levy will be applied to fuels at a rate of $20/tonne of CO2 emissions. One year later, the levy will increase to $30/tonne.
• To find out more about the carbon levy and how the funds will be used, refer to the Climate Leadership Plan.

• Marked fuels used by farmers in farming operations (diesel, gasoline) are exempt from the carbon levy.
• Other fossil fuels such as natural gas, propane, heating oil and coal are not exempt from the carbon levy.

• A starter guide for anyone looking to do a basic assessment of their energy use and access some simple, low-cost ideas for reducing use of electricity, natural gas and diesel on the farm is available, see: The First Steps to Energy Management: Save Energy and Money.
• Producers can explore options to further improve energy efficiency on their farms and for associated off-farm transportation, see:
  Beneficial Management Practices: Environmental Manual for Crop Producers in Alberta - Energy Inputs
• Opportunities to leverage provincial and federal funding to help farm operations reduce emissions and save on energy include an additional $10 M invested from the Climate Leadership Plan to augment these Growing Forward 2 Programs:
  • On-Farm Solar Photovoltaics (PV) Program provides cost sharing for the installation of solar panel systems.
  • Irrigation Efficiency Program helps producers invest in new or upgraded low-pressure irrigation equipment.
  • Accelerating Innovation Program assists primary producers and agri-processors with the early adoption of new technologies or practices with potential for sector-wide impact
• Alberta’s carbon market also provides opportunities for revenue from carbon offset sales of voluntary management improvements that reduces or removes greenhouse gas emissions, such as conservation cropping, managing nitrogen fertilizers and feed efficiency in livestock, see:
  Agricultural Carbon Offsets

• Eligibility criteria for both the carbon levy exemption and Alberta Farm Fuel Benefit (AFFB) program fuel tax exemption are the same.
• The AFFB program registration number will also be used for carbon levy exemption certificate.
• The carbon levy exemption is only on marked fuel (diesel and gas) used for farming operations. The levy will apply to propane, aviation fuel and heating fuel.
• This information is also summarized in a radio interview on Call of the Land.

• Since farm operations vary widely, the effect of the carbon levy will be unique to individual operations.
• Commonly used fossil fuels subject to the carbon levy are gasoline and diesel used for contracted transportation and hauling, and natural gas used for heating. The Alberta Climate Change Office has provided a summary of the impact of the carbon levy on each type of fuel.

• Carbon Levy - Facts and Myths
• Carbon Levy - Overview and Announcements,
• Alberta’s Climate Leadership Plan.
• Climate Change and Agriculture in Alberta.
• For information on how the Alberta carbon levy relates to federal carbon pricing,