September 26, 2008

Campbell Stalls with Local Government Gas Tax Rebate

It appears that Premier Campbell has invented yet another program, the "Climate Action Revenue Incentive program", where uncertain and uncosted payments may be made if local governments buy offsets that could cost many times the amount of the incentives. Don't expect certainty on any of the details before the May 2009 election.

The Greenhouse Gas Reduction Targets Act was introduced to the BC legislature on November 20th 2007. On December 12th an Order in Council proclaimed the Act effective January 1, 2008. On March 11, 2008 an Order in Council made the Minister of the Environment responsible for the administration of the Act, and on April 17, 2008 the Act was amended.

The Act sets out the requirements for a public sector organization to be considered "carbon-neutral". When Campbell flip-flopped on exemptions to his gas tax, declaring that municipalities and school boards could qualify for a refund on their tax payments, he said that to qualify they would have to commit to becoming carbon-neutral by 2012. According to the Act that means:

• Pursuing actions to minimize its greenhouse gas emissions,
• Determining its greenhouse gas in accordance with the regulations, and
• Applying emission offsets in accordance with the regulations to net those emissions to zero.

As of September 2008 the all important regulations to the Act have not been adopted. "Emission offset" is defined as "an emission offset, as established, approved or recognized under the regulations for the purpose of (a) reducing or avoiding greenhouse gas emissions into the atmosphere, or (b) removing greenhouse gas from the atmosphere."

The bottom line is that in order to get their money back, municipalities and school boards will have to buy emission offsets, but without regulations to the Act no one knows what offsets are, let alone how much they will cost or whether they will reduce greenhouse gas emissions.