Minister of Natural Resources Jonathan Wilkinson is threatening to pull billions in federal funding from provinces that refuse to comply with the Liberal government’s pledge to have a “non-emitting” electricity grid across the country by 2035.
Wilkinson’s remarks are the latest in a series of threats from federal officials concerning the incoming Clean Electricity Standard – which provinces like Alberta and Saskatchewan have labelled as unrealistic and an infringement on provincial sovereignty.
According to Wilkinson, his government is considering barring non-compliant provinces from a 15% investment tax credit and a $3 billion fund for renewable energy.
“We certainly are considering that,” Wilkinson told the Canadian Press.
“But there is obviously consultation that’s going on with respect to the investment tax credits. We want to hear from people. We also want to think about if we’re going to put those kinds of constraints or strings on those things, how we best do that.”
Canadians can expect an early draft of the regulations to be released by Wilkinson’s office early this month.
Critics of the policy say that the federal government is overreaching when it comes to power regulation, which is traditionally left up to the provinces and that completely cutting out coal or gas power is not possible for provinces that lack other options.
“I’m not going to answer hypotheticals with respect to this. But it’s our interpretation that these decisions on how you produce power, most certainly are in the realm of provincial jurisdiction,” said Saskatchewan Premier Scott Moe in May.
A recent report by the federal Parliamentary Budget Officer (PBO) found that as a result of the incoming regulations, Canadian families could pay up to $1,008 extra due to the regulations.
“I can understand that people are not happy when we underline that government action will have repercussions, and in this case, costs, but I stand by the analysis we provided,” said PBO Yves Giroux.
Wilkinson’s recent comments are not the first time that prominent cabinet members have threatened provinces with repercussions for not towing the Liberal government’s line on climate change.
In May, Environment Minister Steven Guilbeault said that premiers who refused to comply could potentially face violations under the Criminal Code.
“We’ve regulated the ban on coal through (Canadian Environmental Protection Act), which is a criminal tool that the federal government has,” said Guilbeault.
“So not complying with this regulation would be a violation of Canada’s Criminal Code.”
