Saskatchewan exempted from federal coal CO2 rules

Summary#

An Order was made that the Reduction of Carbon Dioxide Emissions from Coal‑fired Generation of Electricity Regulations will not apply in Saskatchewan starting January 1, 2025. The decision follows an equivalency agreement between the federal government and the Government of Saskatchewan that covers the period 2025–2026 and says provincial rules will achieve the same greenhouse‑gas outcome as the federal rules.

What it does#

• Suspends the application of the Reduction of Carbon Dioxide Emissions from Coal‑fired Generation of Electricity Regulations in Saskatchewan as of January 1, 2025.
• Implements and relies on an equivalency agreement (published December 7, 2024) that says Saskatchewan’s own regulations produce equivalent greenhouse‑gas results for the 2025–2026 period.
• Ties the Order’s life to the underlying agreement: the Order ends if the agreement is terminated.
• Repeals the earlier order from 2019 that had previously stood the federal rules down in Saskatchewan.
• Requires Saskatchewan to provide annual greenhouse‑gas and electricity data and information on enforcement to Environment and Climate Change Canada.

Who's affected#

• SaskPower and other electricity producers that operate coal‑fired units in Saskatchewan (they can plan to operate under provincial rules rather than the federal standard).
• Electricity customers in Saskatchewan, who may avoid short‑term rate increases that could have come from forced early shutdowns or costly retrofits of coal units.
• Residents near coal plants and communities concerned about air quality, because continuing to run some coal units can raise local air pollutants.
• Environment and Climate Change Canada and the Government of Saskatchewan, which will share monitoring and reporting responsibilities.

Why it matters#

• It lets Saskatchewan continue using its own plan for cutting power‑sector greenhouse gases through 2026, rather than following the federal coal‑plant performance standard immediately. That gives the province more time to build non‑emitting capacity and make investment decisions.
• Practically, the agreement lets two Boundary Dam coal units (commonly called BD4 and BD5) operate past dates they would have had to shut under the federal rules. That reduces immediate costs for the electricity system but delays some emissions changes at those sites.
• The federal analysis says greenhouse‑gas outcomes should be equivalent for 2025–2026, but there may be small local increases in air pollutants. Earlier modelling estimated an additional 37 kt of sulphur oxides (SOx) and 8 kt of nitrogen oxides (NOx) in a previous standing‑down scenario; nationally the federal rules were expected to cut 1,156 kt SOx and 546 kt NOx over 2015–2035. The government’s assessment describes the local air‑pollutant increases from this arrangement as low, but they can still affect local air quality and health.
• The Order is temporary and depends on the equivalency agreement; future federal rules (such as the proposed Clean Electricity Regulations) or changes to the agreement could alter where and how the federal standards apply.