Thank you, Madam Chair. I am here this evening to present Bill 92, An Act to Amend the Petroleum Products and Carbon Tax Act, No. 3. The purpose of Bill 92 is to add carbon tax revenues sharing grants -- sharing community grants and annual reporting requirements to the carbon tax legislation. This bill represents our final collaborative effort to revise the territorial carbon tax regime to meet federal 2023 to 2030 carbon pricing benchmarks.
As part of March 23rd discussions concerning Bill 60, An Act to Amend the Petroleum Products and Carbon Tax Act, we worked together to better mitigate the additional carbon tax burden required for the Northwest Territories to continue to administer its own carbon tax regime. This collaboration led to my commitments to do the following:
- Implement a regional cost of living offset;
- Provide annual revenue sharing grants to community governments totaling 10 percent of net carbon tax revenues;
- Introduce legislation establishing community government revenue sharing;
- Strengthen annual reporting requirements; and
- Follow up with the federal government to ensure federal departments meet directly with Northwest Territories communities to discuss developing energy alternatives.
The cost of living offset benefit based on the region of residents was made effective July 1st, 2023. For the July 1st, 2023 to June 30th, 2024 interim benefit payments, those are made to residents until the Canada Revenue Agency completes its system change in the fall. At that time, residents will receive any applicable additional payments retroactive to July 1st of 2023.
Bill 92 represents my commitment to reduce the carbon tax burden on community governments through revenue sharing grants totaling 10 percent of net carbon tax revenues. These grants will provide flexible funding that may assist local governments to reduce greenhouse gas emissions. The allocation formula will be described in regulations and the intention is to provide each community government with a base funding amount plus a per capita allocation. This will provide appropriate support to community governments in larger communities while also recognizing that smaller communities are often in more remote locations where costs are higher.
Bill 92 is a good example of consensus government's style of getting things done. The 19th Legislative Assembly's approval for keeping territorial control of the carbon tax has meant that the GNWT retains the flexibility to design a made-in-the North solution that reflects northern priorities and circumstances.
I would like to thank the Standing Committee of Government Operations and the Member for Frame Lake for their tenacity and willingness to collaborate on this bill to demonstrate our commitment to making carbon prices work in the Northwest Territories. That concludes my opening remarks. I would be happy to answer any questions the Members may have.