Updating this thread. I ended up setting up the squid.conf file with the following config to get it to work.
First, at the top of the localnet lines-
acl localnet src 205.205.205.1/32
Then, I added the only domains that I wanted to provide access to. This whitelisted them.
acl GOOD dstdomain .google.com
acl Good dstdomain .domain.ca
Followed by, the allow and deny lines
http_access allow GOOD
http_access deny all
Finally, "uncommenting" the Safe ports/services for 80 and 443.