Fuel Charge Proceeds Fund for Indigenous Governments
The Greenhouse Gas Pollution Pricing Act (GGPPA) requires that proceeds from the federal fuel charge be returned in the province or territory in which they were collected.
In recognition of the impacts of climate change on Indigenous communities, the Minister of Finance has specified that a portion of fuel charge proceeds be returned to Indigenous governments in provinces where the federal fuel charge applies. This includes:
- First Nations and Métis in Alberta
- First Nations and Métis in Saskatchewan
- First Nations and Métis in Manitoba
- First Nations and Métis in Ontario
- First Nations in New Brunswick
- First Nations in Nova Scotia
- First Nations in Prince Edward Island
- First Nations and Inuit in Newfoundland and Labrador
Returning federal fuel charge proceeds to Indigenous governments
The Fuel Charge Proceeds Fund for Indigenous Governments aims to return a portion of federal fuel charge proceeds to eligible federally recognized Indigenous governments through grant agreements. The program was developed in collaboration with First Nations, Inuit and Métis partners on a distinctions-basis. First Nation governments have the option to receive their portion of the proceeds directly or through a representative organization.
Environment and Climate Change Canada has worked with Crown-Indigenous Relations and Northern Affairs Canada and Indigenous Services Canada to identify the federally recognized Indigenous governments that are eligible to receive a share of federal fuel charge proceeds under the Fuel Charge Proceeds Fund for Indigenous Governments.
The Minister of Finance has specified the proceeds to be returned to Indigenous governments for the period of 2020-21 to 2024-25. The Minister of Environment and Climate Change has approved the approach for allocating fuel charge proceeds to Indigenous governments.
The Fuel Charge Proceeds Fund for Indigenous Governments aims to achieve a fair and equitable outcome based on the unique circumstances of Indigenous governments in each province by considering:
- equity and needs-based factors of First Nations, Inuit and Métis governments, as well as the broad climate change and fuel charge impacts on Indigenous communities
- First Nations, Inuit and Métis population data (based on relevant registries)
Conditions
Indigenous governments may use the funds towards self-determined priorities. The only condition is that the recipients must attest that the funds will not be used to weaken or negate the carbon price signal. For example, recipients may not use the Fuel Charge Proceeds Fund for Indigenous Governments to reimburse Indigenous households or businesses for amounts paid into the fuel charge, however they could provide rebates that are not directly tied to fuel charge expenses.
Who is eligible
An Indigenous government is eligible to receive a portion of the fuel charge proceeds if it is a federally recognized First Nation, Inuit or Métis government and located in one of the jurisdictions where fuel charge proceeds must be returned through the Fuel Charge Proceeds Fund for Indigenous Governments.
Eligible recipients: Environment and Climate Change Canada has consulted with Crown-Indigenous Relations and Northern Affairs Canada and Indigenous Services Canada to identify the federally recognized Indigenous governments that are eligible to receive a share of federal fuel charge proceeds.
These Indigenous governments are eligible for proceeds under the Fuel Charge Proceeds Fund for Indigenous Governments for the period of 2020-21 to 2024-25 in:
- Alberta
- Saskatchewan
- Manitoba
- Ontario
These Indigenous governments are eligible for proceeds under the Fuel Charge Proceeds Fund for Indigenous Governments for the period of July 2023 to 2024-25 in:
- New Brunswick
- Nova Scotia
- Prince Edward Island
- Newfoundland and Labrador
Eligible Indigenous governments include:
First Nations:
- a First Nation Band under the Indian Act; or
- a First Nation signatory to a self-government agreement with Canada
Inuit:
- an Inuit Treaty Organization
Métis
- a Métis government that is a signatory to a self-government agreement with Canada
First Nations representative organizations
Under the Fuel Charge Proceeds Fund for Indigenous Governments, eligible First Nation governments have the option to authorize a First Nation representative organization to apply for and administer their share of the proceeds on their behalf. This approach enables the pooling of proceeds among First Nations governments if desired.
According to this option, eligible First Nation representative organizations are:
- not-for-profit
- located in the same province as the authorizing First Nation governments
- clearly and specifically authorized by eligible First Nation governments and by their own board/decision-making authority to apply for and administer the Fuel Charge Proceeds Fund for Indigenous Governments
Deadline
Eligible recipients are encouraged to submit their required information package as soon as possible in order to receive their allocation of fuel charge proceeds for the 2020-21 to 2024-25 period.
Environment and Climate Change Canada will work to support eligible recipients to access their respective allocation through the Fuel Charge Proceeds Fund for Indigenous Governments as quickly as possible.
Environment and Climate Change Canada has contacted all eligible recipients directly via email with information about the Fuel Charge Proceeds Fund for Indigenous Governments and how to initiate the process to access the funds. Environment and Climate Change Canada will follow-up by email and phone as needed. The Department will reach out through Indigenous Services Canada or Crown-Indigenous Relations and Northern Affairs Canada to any eligible Indigenous governments that have not responded.
Environment and Climate Change Canada will conduct regular follow-ups to facilitate the return of fuel charge proceeds to all eligible recipients.
Contact Us
If you have questions on the Fuel Charge Proceeds Fund for Indigenous Governments please contact us by email at: fprcga-fcpfig@ec.gc.ca
For any of the following, please email us at fprcga-fcpfig@ec.gc.ca:
- to initiate the process to access the fuel charge proceeds
- to receive a copy of the Recipient Guide
- to learn more through an Information Session
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