Trudeau, McKenna to announce compensation for federal carbon plan

OTTAWA – Canadians will soon find out exactly how they will be compensated for the upcoming federal carbon tax.

The Canadian Press has learned Prime Minister Justin Trudeau will be in Toronto on Tuesday with Environment Minister Catherine McKenna where they will unveil a long-promised rebate plan and will announce which provinces will be subject to a federally-imposed price on pollution.

Provinces that don't meet the federal standard of having a carbon price of at least $20 per tonne of emissions by January 1 will have Ottawa's plan forced on them.

Residents in those provinces are expected to begin receiving rebate cheques based on their household income level and family size to help offset cost impacts like higher heating bills and gas prices.

Insiders say the cheques will roll out with plenty of time for Canadians to feel their impact before the next election.

Carbon pricing is expected to be a key campaign issue, with the federal Conservatives pushing heavily against a carbon tax and insisting they would eliminate it entirely if they form government.