Proposed suspension of coal CO2 rules in Saskatchewan

Summary#

This is a proposed Order to suspend the federal Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations in Saskatchewan starting January 1, 2025. The suspension would rely on a short equivalency agreement that covers the 2025–2026 period and is open for public comment for 60 days.

What it does#

• Declares the federal coal-fired electricity CO2 regulations do not apply in Saskatchewan while the equivalency agreement is in force.
• Takes effect January 1, 2025 and is tied to an equivalency agreement covering 2025–2026; the Order ends if that agreement ends.
• Relies on Saskatchewan’s own rules, the Management and Reduction of Greenhouse Gases (General and Electricity Producer) Regulations (the Saskatchewan Electricity Regulations), which the federal government says will limit emissions to no more than 29.4 Mt of CO2e for 2025–2026.
• Lets two provincial coal units (Boundary Dam units 4 and 5) continue operating past the dates those units would otherwise have had to stop under the federal rules.
• Repeals a previous related Order and is being published as a proposed instrument under the Canadian Environmental Protection Act, 1999.
• The proposal includes a 60-day public comment period before any final decision.

Who's affected#

• SaskPower and other large electricity producers in Saskatchewan.
• Residents and electricity ratepayers in Saskatchewan, because the change can affect how the province plans electricity supply and costs.
• Environmental and public-health groups watching air pollutant and greenhouse gas outcomes.
• The federal department involved is Environment and Climate Change Canada (which will continue to get emissions and enforcement data from Saskatchewan).
• Small businesses: the federal notice says no small businesses are expected to be directly affected.
• The notice says Indigenous peoples are not expected to be further affected; no specific Indigenous consultation was carried out for this Order.

Why it matters#

• It lets Saskatchewan use its own rules to meet the same greenhouse gas outcome that the federal rules would produce over 2025–2026. That gives the province more flexibility in planning and investments.
• The Order avoids immediate costs that would have come from forcing early closures or expensive retrofits of coal units. That could help avoid short-term increases in electricity rates.
• There may be small increases in local air pollutants if coal units run longer. Earlier federal analysis estimated a possible cumulative increase of about 37 kt of sulphur oxides (SOx) and 8 kt of nitrogen oxides (NOx) under a similar arrangement, but those increases were judged to be low and any related health impacts were expected to be small.
• The modelling behind the equivalency did not include possible effects from the proposed Clean Electricity Regulations, so future decisions could change if those federal rules are finalized.
• This is a proposed Order, not final. People and groups can comment during the 60-day consultation period.