CALGARY, Alberta (Reuters) - The oil-rich Canadian province of Alberta said on Tuesday it will put C$4 billion ($3.92 billion) into two funds that will be used to pay for carbon capture and storage programs and to boost use of public transit to cut the province's carbon-dioxide emissions.

The Alberta government said it will set aside C$2 billion in each of the two funds, with the cash coming from its budget surplus for this year - a figure last pegged at C$1.6 billion but expected to be billions of dollars higher due to the increased royalties the province is collecting from record high oil prices.