The Department of Environment admitted it did not consider how different Canadians use fuel when figuring out the average costs of the new climate change regulations.According to Blacklock’s Reporter, Conservative MP Dan Mazier (Dauphin-Swan River, MB) said the estimations did not consider the differences between city and rural fuel use.“The government was advised the Clean Fuel Regulations would increase the cost of fuel and still proceeded with them,” Mazier told the Commons Environment committee.Starting on July 1, the Clean Fuel Standard forced more ethanol and biodiesel into fuel blends, which are more expensive than oil.On June 29, the 2022 Regulatory Impact Analysis Statement from the environment department estimated the country could face costs of up to $46 billion annually.“The Impact Analysis stated regulations would increase the cost of energy and disproportionately impact low and middle-income Canadians, is this correct?” asked Mazier. “That is correct, yes,” replied Derek Hermanutz, director general of economic analysis at the Department of Environment.“The estimated impacts in the Regulatory Impact Analysis Statement are for full implementation of the regulations by 2030. There is flexibility within the regulations in terms of different pathways. Ultimately, the increasing costs will be determined by choices.”“But there was no disputing they were advised these regulations would increase the cost of fuel?” asked Mazier. “Yes,” replied Hermanutz.“Did the government conduct a specific analysis on how the Clean Fuel Regulations would impact rural Canadians?” asked Mazier. “The analysis includes regional breakdowns by different provinces in Canada but does not have a breakdown of the impacts on urban versus rural,” replied Hermanutz.On May 18, the report A Distributional Analysis of the Clean Fuel Regulations from the Parliamentary Budget Office explained the extra costs of the Clean Fuel Standard are in addition to the carbon tax.By 2030, the Clean Fuel Standard will make gasoline 17¢ more expensive for each litre. This is on top of the 38¢ carbon tax and a 5% GST. So, in total, gas will cost 58¢ more per litre.The Budget Office said costs per household would average as high as $1,157 a year in Alberta, followed by Saskatchewan ($1,117), Newfoundland and Labrador ($850), Nova Scotia ($635), Manitoba ($611), Prince Edward Island ($569), New Brunswick ($501), Ontario ($495), Québec ($436) and British Columbia ($384). Lower costs in provinces with large hydroelectric or nuclear power systems were “reflecting the lower fossil fuel intensity of their economies,” wrote analysts.
