N.L. calls on Ottawa to hold off on new clean fuel regulations

The government of Newfoundland and Labrador is blasting the federal government over its clean fuel regulations just days before they're scheduled to come into effect.

Finance Minister Siobhan Coady said the province isasking the federal government to hold offon its looming clean fuel regulations, slated to come into effect July 1, pointing out there's a lot unknownabout the cost.

"We do not know at this point how much that will be, how that will be passed on, so there's still uncertainty," Coady said at a news conference on Wednesday."That's why we're asking the federal government to pause until we have some certainty."

What is certain, Coady said, isthe parliamentary budget officer indicated the addedcost will beabout 17 cents per litre on gasoline and 16 cents per litre on dieselby 2030. That's on top of the looming carbon tax.

"So we're concerned about competitiveness. We're concerned about affordability. We're concerned and we want to reiterate that today because of course July 1is coming in a few days," Coady said.

She said the province understandsthe federal government is concerned with fighting climate change butthis policy isn't the way to do it.

Coady was joined Wednesday by Energy Minister Andrew Parsons,who said there have been multiple efforts to get their federal counterparts to understand Newfoundland and Labrador's positionbut that hasn't happened.

"The reality is that when people get their car gassed up this coming weekend, they're going to feel it," said Parsons.

He's encouragingresidentsto contacttheir members of Parliament nothim about the situation because the regulations are federal.

Parsons also said the regulations will have an impacton Marine Atlantic, and additional costs of burning fuel will likely be passed on to consumers.

CoadysaidNewfoundland and Labrador was exempt from the previous renewable fuels tax in light of the province's unique geography and sparse population.

Constitutional options

He said the federal government hasn't been doing right by this obligation for years and this charge will make things"more onerous" on Newfoundlanders and Labradorians.

"We've talked about,within the Department of Justice and within government,on the possibilities of constitutional challenge here, based on this. It's gotten to that point where we have to look at all of our options to protect Newfoundlanders and Laboradorians," Parsons said.

He said "there would be a huge uprising" if the situation were playing out in another province.

"But the fact it's here in Newfoundland Labrador, they feel that they could just continue on this path, and I absolutely don't think that's the case," he said.

The province has been "sounding the alarm" over its concerns about the regulations for years,Parsons said,addinghe believed there would be opportunity to find a "common sense balance."

"Sometimes it's clear as mud. I don't know if they truly know what the impact is going to be," he said.

Defending the feds

Earlier Wednesday, federal Labour MinisterSeamus O'Regandefended theregulations, sayingeight out of 10 people will be get more money in rebates than they pay in tax.

"I know that sounds kind of counterintuitive and people are like, 'Well, why tax?'Because you'll always have that cash. We will always be giving you this cash; $1,312," he said.

"But when you make choices on buying products that have less carbon and less pollutants, you'll be saving money and you'll have more money in your pocket. And that's what we wanted to do."

He said climate change is happening and people should not be able to pollute for free. Moreover, he said, the only way the country will address the issue in a meaningful way is if everyone does something.

"In this instance, the price on pollution has always been there," he said."The province charged it and they put it into general revenue. It was at roughly 11 cents. It is going up to 14 cents now."

But, he said, the federal rebate will cover that a family of four will get$1,312 a year.

O'Regan also said people won't have to apply for it or see it come out through income tax.

"You were going to see it in your bank account come this July, so that money will be in pocket," he said. "You're not going to have to wait until like a tax rebate at the end of the year and suffer the costs until then."

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