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New Brunswick consumers may face double carbon charges on July 1

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New Brunswick drivers appear likely to face two new carbon-related charges this time next month that could add as much as 12.4 cents per litre to the price of gasoline and 14.2 cents to diesel, factoring in all changes, including the effect of the HST.

In a province that consumes 1.4 billion litres of the two fuels each year, it’s a potential cost to consumers in excess of $175 million, less than one-third of which will be subject to rebates.

Final amounts will depend on an upcoming decision of New Brunswick’s Energy and Utilities Board, but a double increase on each fuel on July 1 appears inevitable according to the province’s new public intervener Alain Chiasson.

“Unfortunately, that sounds about right,” said Chiasson.

On gasoline, the two charges include a 3.26-cent-per-litre annual increase in regular carbon taxes applied at the pump.

Diesel, which contains more carbon than gasoline, is facing a 3.97-cent-per-litre increase.

Diesel prices set a Canadian record in New Brunswick when they passed $3 per litre in early November 2022. The federal government says so much money was made by oil companies last year they can afford to pay for new clean fuel regulations. (Eric Wooliscroft/CBC)

Those increases, added to existing carbon taxes imposed in earlier years, will all be recoverable by consumers when carbon tax rebates in New Brunswick begin in October.

The second and more controversial July 1 charge, estimated to be as high as 7.5 cents per litre on gasoline, is to be imposed to compensate oil companies for extra costs caused by new federal “clean fuel” regulations.

A similar charge on diesel could be as high as 8.4 cents and unlike carbon taxes, neither of those will be subject to rebates.

There is a dispute between the federal and New Brunswick governments over whether oil companies or consumers should deal with the costs of the clean fuel program, but it’s New Brunswick’s decision. In December, the province changed legislation clearing the way for consumers to pay.

New Brunswick Natural Resources and Energy Development Minister Mike Holland told the legislature that costs of the clean fuel regulations to “manufacturers and importers” of petroleum products would be “significant.”

“These cost will be passed on to wholesalers and retailers, so it will be critical to have these costs reflected in the weekly price calculation,” said Holland.

Through its legislation, the province authorized a new “carbon cost adjuster” to be added to regulated fuel prices to  mitigate costs to oil companies of the new clean fuel rules and then left it to the Energy and Utilities Board to decide on an amount.

The Irving Oil refinery in Saint John is Canada’s largest. The New Brunswick government changed legislation in December to allow costs imposed by new federal rules about clean fuels to be passed on to consumers. (Roger Cosman/CBC News)

The board hired the consulting company Grant Thornton to advise it on how to proceed and the company developed a formula that estimated amounts that would have to be charged to consumers to pay for new federal levies facing industry.

A hearing was held by the board at the end of April, and although it has not released a decision yet on what clean fuel charges it will authorize, Chiasson does not see many options.

“The board will make its decision,” said Chiasson.

“Maybe they’ll come up with some other formula but I doubt they would go against their experts so we’re probably looking at a seven- or eight-cent increase plus the carbon tax.”

What is the clean fuel standard?

Unlike the carbon tax, which is meant to affect consumer decisions about the use of fossil fuels, the clean fuel standard is aimed at affecting industry practices.

Its goal is to encourage an expansion of the production and distribution of products like ethanol and biodiesel and to force changes inside refineries like the use of renewable energy in the manufacturing process.

The price of gas and diesel in New Brunswick has been falling this spring, but that may change July 1 when two separate carbon charges may hit provincial pumps at the same time. (Richie Bulger/CBC)

Targets have been set to lower the carbon intensity of what refineries produce and how they operate, and financial rewards and penalties are in place if those targets are exceeded or missed.

Critics have complained passing costs of penalties onto consumers will lower incentives for industry to make changes. In a letter to the Energy and Utilities Board last week, federal Environment Minister Steven Guilbeault urged the board not to authorize any increase in prices to consumers for clean fuel costs.

He said companies have a year to take actions that will reduce penalties they might face and claimed the costs of not meeting targets are being exaggerated in any event.

“It is the position of the Government of Canada that the Clean Fuel Regulations will not necessarily lead to significant cost increases to refiners particularly in the short term,” he wrote.

“Seeking immediate consumer price increases to account for estimated costs under a worst case scenario projection could lead to a scenario where a company later chooses a lower cost option (and) pockets the increased revenue from consumers.”

Guilbeault’s letter also made the point that refiners earned record amounts of money in 2022 and could afford to pay for the clean fuel changes, but his intervention may be too little too late.

The letter arrived a month after the board’s hearing into the issue had already concluded with no sign that the body is officially taking it into consideration.

As of Wednesday, it had not been added to the official record of the carbon cost adjustor matter.

Chiasson said all indications are double carbon charges are coming to New Brunswick July 1. The only question is how large the second of the two will be.

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CP NewsAlert: Two people confirmed killed when Vancouver Island road washed out

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PORT ALBERNI, B.C. – RCMP say the body of a second person has been found inside their vehicle after a road washed away amid pouring rain on the west coast of Vancouver Island.

Police say two vehicles went into the Sarita River when Bamfield Road washed out on Saturday as an atmospheric river hammered southern B.C.

The body of the other driver was found Sunday.

More coming.

The Canadian Press. All rights reserved.



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Sonia Furstenau staying on as B.C. Greens leader in wake of indecisive election

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The B.C. Greens say Sonia Furstenau will be staying on as party leader, despite losing her seat in the legislature in Saturday’s provincial election.

The party says in a statement that its two newly elected MLAs, Jeremy Valeriote and Rob Botterell, support Furstenau’s leadership as they “navigate the prospect of having the balance of power in the legislature.”

Neither the NDP led by Premier David Eby nor the B.C. Conservatives led by John Rustad secured a majority in the election, with two recounts set to take place from Oct. 26 to 28.

Eby says in a news conference that while the election outcome is uncertain, it’s “very likely” that the NDP would need the support of others to pass legislation.

He says he reached out to Furstenau on election night to congratulate her on the Greens’ showing.

But he says the Green party has told the NDP they are “not ready yet” for a conversation about a minority government deal.

The Conservatives went from taking less than two per cent of the vote in 2020 to being elected or leading in 45 ridings, two short of a majority and only one behind the NDP.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.



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Toronto FC captain Jonathan Osorio making a difference off the pitch as well as on it

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Toronto FC captain Jonathan Osorio is making a difference, 4,175 kilometres away from home.

The 32-year-old Canadian international midfielder, whose parents hail from Colombia, has been working with the Canadian Colombian Children’s Organization, a charity whose goal is to help disadvantaged youth in the South American country.

Osorio has worked behind the scenes, with no fanfare.

Until now, with his benevolence resulting in becoming Toronto FC’s nominee for the Audi Goals Drive Progress Impact Award, which honours an MLS player “who showed outstanding dedication to charitable efforts and serving the community” during the 2024 season.”

Other nominees include Vancouver Whitecaps midfielder Sebastian Berhalter and CF Montreal goalkeeper Jonathan Sirois.

The winner will be announced in late November.

The Canadian Colombian Children’s Organization (CCCO) is run entirely by volunteers like Monica Figueredo and Claudia Soler. Founded in 1991, it received charitable status in 2005.

The charity currently has four projects on the go: two in Medellin and one each in Armenia and Barranquilla.

They include a school, a home for young girls whose parents are addicted to drugs, after-school and weekend programs for children in a disadvantaged neighbourhood, and nutrition and education help for underprivileged youth.

The organization heard about Osorio and was put in contact with him via an intermediary, which led to a lunch meeting. Osorio did his due diligence and soon got back to the charity with his decision.

“It was something that I wanted to be a part of right away,” said Osorio, whose lone regret is that he didn’t get involved sooner.

“I’m fortunate now that to help more now that I could have back then,” he added. “The timing actually worked out for everybody. For the last three years I have donated to their cause and we’ve built a couple of (football) fields in different cities over there in the schools.”

His father visited one of the sites in Armenia close to his hometown.

“He said it was amazing, the kids, how grateful they are to be able to play on any pitch, really,” said Osorio. “But to be playing on a new pitch, they’re just so grateful and so humble.

“It really makes it worth it being part of this organization.”

The collaboration has also made Osorio take stock.

“We’re very fortunate here in Canada, I think, for the most part. Kids get to go to school and have a roof over their head and things like that. In Colombia, it’s not really the same case. My father and his family grew up in tough conditions, so giving back is like giving back to my father.”

Osorio’s help has been a godsend to the charity.

“We were so surprised with how willing he was,” said Soler.

The TFC skipper has helped pay for a football field in Armenia as well as an ambitious sports complex under construction in Barranquilla.

“It’s been great for them,” Figueredo said of the pitch in Armenia. “Because when they go to school, now they have a proper place to train.”

Osorio has also sent videos encouraging the kids to stay active — as well as shipping soccer balls and signed jerseys their way.

“They know more about Jonathan than the other players in Colombia,” Figueredo said. “That’s the funny part. Even though he’s far away, they’ve connected with him.”

“They feel that they have a future, that they can do more,” she added. “Seeing that was really, really great.”

The kids also followed Osorio through the 2022 World Cup and this summer’s Copa America.

Back home, Osorio has also attended the charity’s annual golf tournament, helping raise funds.

A Toronto native, he has long donated four tickets for every TFC home game to the Hospital for Sick Children.

Vancouver’s Berhalter was nominated for his involvement in the Whitecaps’ partnership with B.C. Children’s Hospital while Montreal’s Sirois was chosen for his work with the Montreal Impact Foundation.

Follow @NeilMDavidson on X platform, formerly known as Twitter

This report by The Canadian Press was first published Oct. 21, 2024.



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