Ottawa unveils details of Nova Scotia carbon tax that will take effect next summer

Ottawa will impose a carbon tax on consumer fuels in Nova Scotia next year after the provincial government refused to develop its own pricing scheme, a decision the federal environment minister said baffled him.

Steven Guilbeault delivered the details during a news conference in Ottawa on Tuesday. Nova Scotians can expect the price of a litre of gas to increase by about 13 cents, while home heating fuel will go up by about 15 cents per litre. Guilbeault said those increases would be offset for most people by quarterly rebate cheques that will begin going out in July.

The tax on gasoline, diesel and home heating fuel will come into effect in Nova Scotia on July 1, 2023, as well as in Prince Edward Island and Newfoundland and Labrador, meaning it will miss the upcoming heating season. The cheques from Ottawa will be issued automatically since there is no application process. A family of four in Nova Scotia will receive $248 each cheque, or $992 per year.

There is a 10 per cent top-up for people who live in rural communities, based on their postal code. In Nova Scotia, that is everywhere outside the Halifax metropolitan census area. The tax will not apply to fuel used for farming and fishing.

Ottawa's move comes after Premier Tim Houston and his government declined to submit a plan of their own to price consumer fuels, although their plan for pricing large industrial emitters was accepted. Guilbeault said he was "extremely disappointed" by his dealings with the Nova Scotia government.

"I'm not super popular in Alberta and Saskatchewan," he told reporters, "and yet we were able quickly to come to agreement with these provinces and there was no drama in the media about this. They really wanted to ensure that they could have their own system."

Guilbeault noted that Houston makes the distinction that he is a Progressive Conservative.

"It's interesting that we had an easier time negotiating this with Conservative governments in Alberta and Saskatchewan than we did in Nova Scotia. I guess we don't have the same definition of what progressive means."

Houston wrote to Guilbeault late Monday asking him one last time to reconsider imposing the federal tax. The minister said the premier's approach is "unconscionable," particularly given the severe effects Atlantic provinces recently experienced from post-tropical storm Fiona.

In an interview, Nova Scotia Environment Minster Tim Halman said he was disappointed with Ottawa's decision. He said he thinks Guilbeault's comments are unfair and that the federal government missed an opportunity to find another way to address climate change without the tax.

"I don't like those comments," he said. "The Nova Scotia government has put forward practical, realistic alternatives."

Halman said the nature of federalism is that there should be give and take between Ottawa and the provincial governments.

"We don't want Ottawa simply to dictate policy to us because we know the intricate details of Nova Scotia. We're the provincial government."

In a statement, Houston said his government is looking at ways to expand the heating assistance rebate program and looking at other "long-term solutions" to increase energy efficiency and make life more affordable.