Opposition attempts to hit reset on N.S. carbon pricing bill

Opposition members say amendments to the Environment Act that wouldprice pollution for the two largest emitters in Nova Scotia is a halfmeasure that will lead to a carbon tax on gas, diesel and home heatingoil being imposed on consumers.

But the environment minister says efforts by opposition MLAs to sendthe bill back to the department for further evaluation risks havingthe carbon tax apply to everyone.

The bill isstalledas members debate a hoist motion by theLiberals. If successful, that motion would send the amendments backto the Environment Department for three months for furtherconsideration.

In an interview Friday at Province House, Environment Minister TimHalman said he welcomes "robust debate," but said his government wouldnot support the hoist motion because it would delay passage of the bill beyond the federal deadlinefor provinces to have an approved plan in place for pricing carbon.

"If we don't have our regulations in place to hold large emittersaccountable by Jan. 1, the federal backstop on large emitters could beimposed," he said. "And that's dangerous because that would result in an eight per centincrease in power rates for Nova Scotians."

Halman has said the provincial program would limit power rateincreases to two per cent.

Cap-and-trade program to expire next year

Since 2019, Nova Scotia has priced carbon using aprovincially designed cap-and-trade program. That's prevented the province from seeing the same spikes in gas prices experienced inother provinces that have a carbon tax.

But theprogram is set to expire next year as newfederal pricing standards kick in. The price per tonne of emissions will increase to $65 from $50 next year, and will go up by $15 annuallyuntil reaching $170per tonne in 2030.

Provinces have the option of accepting the federal carbon tax as aplan, coming up with their ownwhich would need to be approved byOttawaor using a hybrid model that would combine the two options.

Initially, Premier Tim Houston's government opted for none of theabove, arguing that Nova Scotia should be exempt from pricing carbonbecause of its legislated targets for greenhouse gas emissionreductions and plans to expand the use of green energy by 2030.

The federal government swiftly rejected that proposal, and that led toHalman's announcement last week of an output-based pricing system forthe province's two largest emitters Nova Scotia Power and Lafarge with the program being voluntary for other industrial emitters.

Environment Department officials believe other companies will sign onto the plan because the alternative to theprovincial program would bethe federal carbon tax, which would be more expensive.

But while opposition members have welcomed the plan for largeemitters, they say that by not presenting an option for how to tackle pricing consumer fuels, such as gas, diesel and furnace oil, theprovincial government is abdicating its responsibility and invitingthe federal carbon tax.

Province risks losing control of money

Outright opposition to the carbon tax means the province also riskslosing control of the money it would generate and how it would be usedwithin Nova Scotia. Federal officials have said they would use themoney to send cheques to residents to help offset the impacts of thetax.

"They're giving up a way for Nova Scotia to control the funds to dowhat's right for Nova Scotia by just sitting back after a year andsaying, 'Here's half of the option, you guys go ahead and do a carbontax,'" said Liberal environment and climate change critic Iain Rankin.

"They're putting politics ahead of doing what's right for NovaScotians. It's easier for them to blame the federal government that acarbon tax is coming, when they're actually bringing legislationforward that makes that happen."

NDP environment and climate change critic Susan Leblanc said theprovincial government has opted to play politics with the issue ofpricing carbon for consumers, rather than do the work required to comeup with a credible plan that would satisfy federal regulations whilealso dampening the blow for consumers.

"What is the result is that Tim Houston and this bill is essentiallygoing to impose a carbon tax on Nova Scotia," she said. "This idea that, you know, the feds are imposing this carbon tax onus, it's just not true. It's smoke and mirrors."

A year to come up with plan

Leblanc said the Tories have had a year since coming to power toformulate a plan, and they would have known even before that that it would be a requirement for whatever party formed government after thelast election.

Rankin said the government should have argued for a short-termextension of the cap-and-trade system to allow the province to continue to meet federally required targets while negotiating a betterlong-term deal for Nova Scotia.

But Halman said that and other options were considered. Ultimately,his government landed where it did with the legislation that's before the House, the "only viable option" for Nova Scotia to protect the environment and ratepayers, he said.

"The feds are very strict andI'd say dogmatic when it comes to the pricing of carbon on the commercial and the industrial side."

The Tories are hoping to persuade the federal government that theirmutual goals can be achieved using methods other than a carbon tax, such as increased investments in efficiency and green energy programs.

Halman will find out within the next month or so just how persuasive that argument is.