Sask. calls federal methane emissions proposal an 'overreach'
SaskPower directed by province to stop collecting carbon tax on electric heat
The Saskatchewan government says proposed federal methane emissions regulations amount to a "production cap" on the oil and gas sector and are an overreach by Ottawa.
Federal Minister of Environment and Climate Change Steven Guilbeault made the announcement at COP28 in Dubai on Monday.
"Lowering methane emissions from our oil and gas sector is one of the fastest and most cost-effective ways we can cut the pollution that is fuelling climate change," Guilbeault said from the United Nations annual climate change conference in the United Arab Emirates.
The proposed regulations are similar to those announced in recent days by the United States and are designed to help Canada reach and exceed its 2030 target of slashing methane emissions from the oil and gas sector by at least 75 per cent below 2012 levels.
Methane is an odourless, colourless gas and is considered to be about 80 times more harmful to the atmosphere than carbon dioxide.
"As the world's fourth-largest oil and gas producer, we have both the responsibility and the know-how to do everything we can. At this time of robust profit margins and high energy prices, there has never been a better time for the oil and gas sector to invest in slashing methane emissions," Guilbeault said.
The federal government said a coalition of 50 oil and gas companies had announced a commitment to reduce their methane emissions by 80 to 90 per cent by 2030.
The Saskatchewan government sent a news release on Monday in response. It said the proposal would amount to a "75 per cent reduction in methane emissions in Saskatchewan's oil and gas sector."
It said the change "violates" an equivalency agreement signed between the federal government and the province in 2020.
Saskatchewan Minister of Energy and Resources Jim Reiter called Guilbeault's announcement an "overreach" that would hurt provincial revenues and lower the standard of living.
The province said it achieved a 60 per cent reduction in emissions, which included methane from upstream oil facilities, between 2019 and 2022.
It aimed to reduce methane emissions by 40 to 45 per cent from 2015 levels by 2025.
The federal government said it wants to reduce oil and gas methane emissions by at least 75 per cent from 2012 levels by 2030.
"These continually changing rules lead to investor uncertainty and allow countries with far less stable regulatory regimes to dominate the energy space," said Saskatchewan Justice Minister Bronwyn Eyre in a release.
Eyre said the proposed standards infringe on "exclusive provincial jurisdiction over natural resources." She said the province may refer the issue to its Economic Impact Assessment Tribunal.
Last week, the tribunal was tasked with its first assignment to study the economic impact of the federal government's clean electricity regulations.
SaskPower to stop collecting carbon tax on electric heat
The Saskatchewan government has formally directed SaskPower to stop billing customers who use electric heat on Jan. 1, 2024.
Premier Scott Moe announced the plan on social media last week, indicating a change was forthcoming.
The provincial government said approximately 30,000 customers use electric heat and the savings will amount to an average of $21 per month this winter.
This comes a few weeks after the government said it would remove the carbon tax on home heating bills for customers in Saskatchewan who use natural gas. It was in response to the federal government's decision to exempt home heating oil from its carbon pricing policy for three years. Moe called that unfair to Saskatchewan energy consumers.
"In response to the federal government's decision to exempt the carbon tax on heating oil, our government is ensuring fairness for Saskatchewan families," Minister Responsible for SaskPower Dustin Duncan said in a news release.
The government is asking those who use electric heat to contact SaskPower to check their eligibility.
On Nov. 16, the provincial government introduced legislation intended to provide legal protection for those at SaskEnergy from consequences for not collecting or remitting the carbon tax.
The legislation said the protection applied to SaskEnergy's current and former directors, officers, employees and other associates. The responsibility was transferred to Minister Duncan.
The province said not collecting the tax would save SaskEnergy customers $400 on average. Natural gas is the heating source for 85 per cent of Saskatchewan homes.
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with files from CBC's Kyle Bakx and the Canadian Press