Emissions cap ‘patently unconstitutional’ says Alberta oil industry group

A wolf in sheep’s clothing. And “patently unconstitutional” to boot.

That’s how Canada’s largest oil industry association is describing federal Environment Minister Steven Guilbeault’s proposed emissions regulations which are presently open for comment and review before being submitted for Royal Assent.

Despite proroguing parliament, Guilbeault appears determined to move ahead with the Liberal government’s debilitating climate agenda despite the resignation of Prime Minister Justin Trudeau and its almost certain demise after March 24. Even so, interested parties had until January 8 to submit comments or forever hold their peace.

In its submission, the Canadian Association of Petroleum Producers (CAPP) accuses of gross “overreach” that will have the effect of curtailing Canada’s oil and gas production.

“ No government should pursue such patently unconstitutional legislation. The cap will hurt Canadians already struggling with affordability. The emissions cap should not progress to a final regulation,” CAPP president and CEO Lisa Baiton wrote.

“ First and foremost, as a cap on our industry's growth, it will negatively impact the economy and it is an unconstitutional intrusion into provincial affairs. This alone should halt it.”

In its submission, CAPP argues that Canada is already projected to be the worst performing OECD economy over the next 40 years even as Canadians are already struggling with an affordability crisis.

The design of the legislation threatens more than 900,000 well paying jobs. In addition, it threatens bilateral trade worth about $177 billion or a quarter of Canada’s trade balance, about 99% of which comes from the US.

“ Canada has an opportunity to leverage this interdependence in negotiations with our largest trading partner, but not if we are regulating limits on the industry's growth. The optics and real impacts of implementing the Draft Emissions Cap are critical considerations in the face of a potentially challenging binational trade relationship with the United States and the opportunity for North American energy independence.”

While the declared intent of the Draft Emissions Cap is to reduce emissions, the practical effect of the regulation will be to regulate and curtail upstream oil and gas production, CAPP added.

Instead, it prefers market driven solutions that deliver the lowest cost reductions and promote investment — a carrot rather than stick approach.

“We want to work with al governments, federal and provincial, to consolidate and streamline regulations and programs targeting greenhouse gas emissions reductions to deliver efficient emissions reductions and long-term investment certainty.”

In addition to being unconstitutional, Alberta Premier Danielle Smith and cabinet ministers have argued that the cap amounts to a production cut of about 1 million barrels per day.

Although its not immediately clear how the prorogation affects the proposed legislation — and whether it dies on the order paper — a spokesperson for Environment Minister Rebecca Schulz  said this is the “last chance” for the feds to scrap the cap or get taken to court.

“"For too long, we have watched this federal government ignore the needs of Canadians while attacking our economy and our energy sector. The proposed emissions cap is not just bad policy, it's an economic wrecking ball aimed at the heart of Canada’s economy,” Schulz said in a Wednesday statement.