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Can a rabbit be safe with cedar chips or cypress?

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I know, I know, I shouldn't have a rabbit outdoors, but I do! The pen area is huge, with a 3 story condo, 2 shelters, a tree, surrounded on 3 sides by my house...trust me, it's all good! My question is whether or not a rabbit can be safe with cedar chips or cypress mulch as ground cover? Her pen is a sandy area (that she burrows to china in!!) that I have kept covered with pine needles. The 'skeeters are getting annoying, so I thought I'd replace the pine needles w/ landscaping wood chips, as I've heard it's a natural bug repellant of sorts. I don't want any respiratory problems, so I wanted to make sure it's safe before I tackled the job (I'm telling you it's a huge area!!)