Nova Scotia exempt from federal coal rules

Summary#

This is a proposed order that would continue to exclude Nova Scotia from the federal Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations while a provincial equivalency agreement is in force. The new order would come into force on January 1, 2023, be tied to the 2020 Equivalency Agreement, and was published for comment on May 7, 2022 (comments allowed for 60 days).

What it does#

• Declares that the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations do not apply in Nova Scotia.
• Repeals and replaces the earlier 2014 order that had already stood those federal rules down in Nova Scotia.
• Makes the new order end automatically on the day the Canada–Nova Scotia equivalency agreement regarding greenhouse gas emissions from electricity producers, 2020 (the 2020 Equivalency Agreement) terminates.
• States the order would come into force on January 1, 2023 (or on the day it is registered if registered later).
• The government’s analysis says the new order would likely cease no later than December 31, 2024 (based on the term of the Equivalency Agreement).
• This is a Part I (proposed) notice: the public had 60 days from May 7, 2022 to send comments or objections.

Who's affected#

• Electricity producers in Nova Scotia — they are the main group covered by the equivalency agreement and by the federal regulations if the agreement ends.
• The Government of Nova Scotia and the federal Department of the Environment / Environment and Climate Change Canada, because they manage the equivalency arrangement.
• The government says there would be no additional costs for small businesses from adding an expiry provision to the order.

Why it matters#

• It clarifies how long Nova Scotia will be treated as outside the federal coal-fired electricity emissions rules. That matters for companies that plan investments or pollution controls.
• If the 2020 Equivalency Agreement ends, the federal regulations would apply in Nova Scotia again. The order links the two so the switch is automatic.
• The change is meant to give legal and regulatory certainty without adding new compliance costs, according to the government analysis.