Mr. Speaker, all proceeds collected from the federal fuel charge go into the Consolidated Revenue Fund. Under the Greenhouse Gas Pollution Pricing Act, or GGPPA, all proceeds from the federal fuel charge assessed must also be returned from this Fund back to the jurisdiction of origin.
Pursuant to section 270 of the GGPPA, the Minister of the Environment must table a report in Parliament annually with respect to the administration of the act, which includes details of proceeds assessed and how they were returned.
The most recent annual report was tabled in March 2023, in respect of a pollution price of $40 during the 2021 22 fuel charge year. For reference, that report is published here: https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how-it-will-work/greenhouse-gas-annual-report-2021.html.
Detailed information in respect of the 2022 23 fuel charge year will be available in the next annual report, which is required to be tabled by the Minister of Environment and Climate Change by the end of the current fiscal year. Note that these data have yet to be fully assessed and audited as part of the 2022 23 year end Public Accounts process.
In provinces where the fuel charge applies, the majority of proceeds are returned to households through climate action incentive, or CAI, payments while the balance of proceeds is to be returned to small and medium sized businesses and Indigenous groups. Proceeds relating specifically to the use of natural gas and propane by farmers are returned directly to farmers via a refundable tax credit.
Over time, any difference between proceeds assessed and disbursed in each jurisdiction is corrected through adjustments to future CAI payment amounts, such that all proceeds are returned to the jurisdiction of origin. These differences are reported upon in the annual reports.