NewsFONOM responds to how cap and trade affecting municipalities SHARE ON: Rocco Frangione, contributor, Thursday, Jan. 19th, 2017We`re hearing on a regular basis the effect cap and trade is having on ordinary people. But now the Federation of Northern Ontario Municipalities is also telling us about the impact the new tax is having on municipal governments. FONOM president Alan Spacek says cap and trade has left municipalities vulnerable to rising energy costs. Cap and trade took effect New Year`s Day and adds a new tax to your oil and gas bill as well as when you gas up at the pumps. It`s estimated the new tax will generate $2-billion a year for the Wynne Liberals.