Federal coal rules suspended in Saskatchewan 2025–26

Summary#

This is a proposed Order that would suspend the application of the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations in Saskatchewan for the years 2025–2026. The suspension is based on a provincial–federal equivalency agreement under the Canadian Environmental Protection Act, 1999 that says Saskatchewan’s rules will achieve the same greenhouse gas outcome; the proposal was published for comment and includes a 60-day comment period.

What it does#

• Declares that the federal Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations would not apply in Saskatchewan starting January 1, 2025 and covering up to December 31, 2026, while the equivalency agreement is in effect.
• Relies on Saskatchewan’s own rules (the Saskatchewan Electricity Regulations) that set sector-wide emission caps so the province’s electricity-sector emissions over 2025–2026 are no greater than what the federal rules would have allowed. The federal and provincial modelling targets for 2025–2026 are 29.4 Mt of CO2e for the electricity sector.
• Lets two specific coal units, Boundary Dam units 4 and 5 (BD4 and BD5), operate under the provincial regime past the dates they would have hit “end of useful life” under the federal rules.
• Requires Saskatchewan to provide annual GHG and generation data and other reporting to federal authorities while the agreement is in force.
• The Order includes an expiry condition: it ends if the underlying equivalency agreement is terminated.
• This is a proposed Order published for public comment (there is a 60-day comment period), not a final law yet.

Who's affected#

• SaskPower and other large electricity producers in Saskatchewan. These are the main operators of coal-fired units that the Order concerns.
• Residents of Saskatchewan who may see impacts on electricity planning, costs, and local air quality. The Order is meant to avoid immediate shutdown or retrofit costs that could affect electricity supply and rates.
• Environment and Climate Change Canada and federal regulators, who would avoid overlapping regulatory administration for the province while the agreement is active.
• Small businesses are not expected to be directly affected, according to the government’s analysis.
• It is unclear if any other provinces or groups are directly affected; the Order applies only to Saskatchewan.

Why it matters#

• It avoids duplicate rules: the federal government is letting Saskatchewan use its own system if it can show equivalent greenhouse gas outcomes. That reduces administrative overlap for industry and government.
• It gives Saskatchewan more flexibility in when and how to replace coal with non‑emitting generation. That can smooth investment decisions and help avoid sudden cost increases for electricity customers.
• The equivalency test is based on greenhouse gases (CO2e), not local air pollutants. Past modelling for similar agreements showed a possible low increase in air pollutants in Saskatchewan—about 37 kt more SOx and 8 kt more NOx in an earlier, longer-period analysis—pollutants that can affect health. The government’s view in this item is that those air-pollutant increases would be low for the period covered.
• This is a proposal open for comment. It is not yet in force; the Order would only take effect if finalized and would start on January 1, 2025, if made.