The Yukon government lifted the curtain on its long-awaited proposed model for the carbon price rebate this morning, saying individual Yukoners can expect to receive two cheques this year once the levy hits the territory in July.

That number will bump up to four cheques come 2020 and following years, given that the Yukon is being hit with the tax in the middle of the year, unlike other jurisdictions.

In an effort to keep administration costs low so as not to grow government, YG explained this morning that there will be no full-time staff hired for this, thanks in part to using “existing processes within government,” documents noted.

Meanwhile, households in the Yukon are estimated to make up just under 30 per cent of the fuel use in the territory, and the proposed rebate will see them get back about 45 per cent.

Meanwhile, individuals will pay a levy of $3.41 million and expect to be rebated $3.51 million this year. As of 2023-2024, that number will grow to a $7.57 million levy and $11.7 million rebate.

By that point, the levy itself is expected to grow to $50 per tonne, after steadily increasing from $20 per tonne as of this year.

Those eligible for rebates will get more back on average than what they paid in levies, show documents circulated at a technical briefing held today.

It cites the reason for this as being some groups like YG, the feds and tourists not receiving rebates.

“As opposed to us taking that money and putting it towards something (like retrofits), who better to decide how to spend that money to make their houses more efficient than Yukoners themselves,” said Premier Sandy Silver. He was among those on hand this morning to walk reporters through some of the changes.

The premier and the governing Liberals ran on a platform promise to return rebates to Yukoners and Yukon businesses before their entry into power in 2016.

As for businesses, who make up more than 46 per cent of fuel use, they will be getting back 51 per cent.

Municipal governments, which account for 2.5 per cent of fuel usage, will get three per cent back while First Nations governments which contribute to 0.5 per cent fuel usage will get one per cent.

A Department of Finance official also explained that part of the reason for individuals getting back more than they paid may be in part because of the number of exemptions.

Katherine White, the deputy minister of Finance, echoed the documents provided.

“The largest part of our economy is the people in this territory, hence at the end of the day, they’re paying the highest levy,” she said.

From July of this year to June of 2020, individuals are to fork over an extra $84 on average thanks to the levy.

Those eligible for a rebate will get their first payment in October and another in April of 2020 – at a payment of $43 each.

Businesses (not including placer and quartz mining operations) will get a refundable income tax credit along with their tax return.

This credit will take into consideration things like equipment that either consumer fossil fuel or displace this consumption.

As well, business can expect the tax credit to include a Super Green Credit that will encourage future investments in clean energy generation and energy conservation equipment.

Documents estimated this green rebate to be about $17.24 for every $1,000 in assets this year, a figure that will grow to $57.46 by 2023.

Equipment rebates, calculated at a similar rate of per $1,000 in assets, sit at $8.62 this year and will balloon to $28.73 by 2023.

First Nations governments will get annual transfers beginning in March of next year, while municipal ones will get annual transfers too, beginning in April 2020.

Documents note that First Nations and municipal governments have different fiscal years, which is why there is that discrepancy of issuing rebates in March or April – payments that will be transferred automatically without any application needed.

Meanwhile, those eligible under the placer and quarts mining operations will apply to YG for a rebate from Jan. 1 of next year for work done throughout the previous fiscal year.

The documents cite that eligible parties will get proportionally more on average than they paid in the tax because groups YG, the feds and tourists will not be getting a rebate.

Come July 2020, rebates will be given out four times a year by the Canada Revenue Agency under the same payment method as a person’s tax return. (That means they will either be issued by cheque or direct deposit.)

More remote areas of the territory, which the documents acknowledged tend to have higher energy needs paired with little access to other transportation options because of limited infrastructure, will be granted a 10 per cent remote supplement.

“A remote supplement will reduce the risk of a disproportionate burden on vulnerable groups within Yukon,” the documents said.

They note that Canada has also promised to give a 10 per cent supplement to those living in remote areas in four provinces that don’t meet the federal backstop or don’t opt into the backstop.

Silver nodded, adding that will be helpful for those in northern areas who require “more fossil fuel for their day to day activities and commuting.”

In the territory, those living outside of Whitehorse city boundaries qualify as remote Yukoners.

As of July this year, there will be a fuel charge rate for gasoline of 4.42 cents (which will rise steadily to just over 11 cents come April 2022).

For light fuel oil, that number will sit at $5.37 cents and increase to $13.41 cents, while propane will be 3.1 cents and rise to $7.74 cents.

Also as of this year, when the levy will be $20 per tonne, a person will pay $84 and get back $86 – a figure expected to grow to $284 by 2023, when they will pay $187.

Meanwhile, a family of four living in Mayo, for example, will be charged $50 per tonne and get back money totalling $1,249 in four instalments in 2023.

White also added that businesses are not expected to have to “put their prices up too much in response to the imposition of the carbon tax because of this rebate.”

Part of that is thanks to exemptions, including the aviation industry, among others.

“One of the reasons we see the distortions is we take the entire electrical grid out... in terms of emissions, it looks kind of wonky,” White said.

That was in reference to YG’s talks with Ottawa (which have been going on since 2016) which led to aviation fuel being exempted as well as light fuel oil for electricity generation in more remote communities.

“So once you take all the exemptions out, that’s how the personal group ends up being so (high).”

Those eligible for rebates are people (including kids), businesses, municipalities, First Nations governments and placer and quartz mining operations.

For children, payments will be made to one parent or guardian much the same way the Yukon Child Benefit is administered.

Filing a tax return in the territory will ensure Yukoners get a rebate through the Canada Revenue Agency (CRA).

Ottawa will collect the revenue from the levies and return it to Yukon via a transfer – that figure will then be deposited into a “discrete fund” that YG will use to rebate its residents. Yukoners can expect their first payment to be made in October of this year.

The unveiling comes after Silver has maintained that the tax revenue collected will be neutral – something the documents also echoed.

While it acknowledged that there will be a small positive impact on the surplus of YG in the initial stages (because some revenues will be given to YG just before some rebates will be distributed), an agreement with the CRA to give out rebates before Ottawa returns revenues to YG means there will eventually be no change to the surplus “as the rebates will be revenue neutral.”

Silver maintained he is confident the levy itself will have long-term positive impacts, pointing to Ottawa’s estimate that in its first year, the levy will result in emission reductions of 6.8 kilotons. That figure is expected to reach 32 kilotons come 2022.

“While I appreciate the concept of kilotons of emissions is difficult to visualize,” Silver said, “the key is the overall emissions in the Yukon will reduce year after year.”

The feds are expected to collect about $7.8 million from the territory – revenue that will be returned to it through a transfer.

As for long-term next steps, the feds will monitor the impact of carbon pricing and the rebate’s effectiveness.

Ottawa and its jurisdictions are to work on an interim report on the pricing in 2020 and another five-year review in 2022.

Asked about the possibility of a change of heart about implementing the tax at the federal level and how that could impact the territory, Silver said that bridge may be crossed if the need arises.

“We will work with any government on any file but that would have to come in the future,” he said, noting that many of the talks done on the file were with Prime Minister Justin Trudeau’s governing Liberals.

The party is gearing up for this year’s federal election, currently slated for around Oct. 21.

Until then, the territory is encouraging Yukoners to review the framework and submit comments or feedback by Feb. 4 of this year – but it does not expect much to change, White said.

The framework is available on engageyukon.ca, with the tax itself coming into effect July 1.