Ottawa floats new options for electricity rules that drew ire of Alberta and Saskatchewan
The federal government is considering significant up‐ dates to its proposed regu‐ lations aimed at reducing emissions from electricity generation to net-zero.
The move comes after months of consultations with
Canadians, the government said, but also follows strong opposition from politicians in Alberta and Saskatchewan.
A draft version of the Clean Electricity Regulations was initially released last Au‐ gust. The regulations function as a set of rules for transition‐ ing Canada's electricity grid to net-zero starting in 2035.
Environment and Climate Change Minister Steven Guil‐ beault told CBC News it was always the goal to strike the right balance when it came to the first set of draft regula‐ tions.
But Ottawa remained open to comments from provinces and experts, he said, adding the revisions weren't precipitated solely due to pushback in Alberta and Saskatchewan.
"I wouldn't say that the options that we're proposing in today's document are the result of the actions or com‐ ments of one particular juris‐ diction over others," he said.
"I mean, we've held webi‐ nars with more than 500 peo‐ ple, we've had 75 different bi‐ lateral meetings, 18,000 sub‐ missions were made. So what we're putting out today is a result of everything we've heard, and not one particular company, individual or even province."
Last November, Alberta in‐ voked its Sovereignty Act for the first time over the draft regulations. Alberta Premier Danielle Smith called the 2035 target unachievable. Guil‐ beault has also referenced the 2035 date as a deadline.
Yet, under the prior draft regulations, exceptions would have allowed for significant amounts of emissions from electricity generation into the 2040s, and even into 2050 and beyond.
But even with those provi‐ sions, Alberta had concerns.
Unlike most of the rest of the country, Alberta gets most of its electricity from natural gas. Prominent Alber‐ ta economists like Andrew Leach and Blake Shaffer ar‐ gued Ottawa would need to be flexible in developing the electricity regulations given Alberta's unique makeup.
WATCH | Alberta in‐ voked Sovereignty Act over
net-zero electricity grid regulations:
In January, Jonathan Wilkinson, the federal minis‐ ter of natural resources and energy, also told the CBC's Aaron Wherry that he didn't feel as though Alberta was questioning the need to green its grid, just the pace of doing so.
"We probably have a view that it can go faster. And so we've been trying to actually understand and look at how we might be able to address some of their specific con‐ cerns," Wilkinson said at the time.
"Hopefully, when we get to [finalizing the regulations], Al‐ berta will see that we have re‐ flected seriously on some of the things that they have brought up."
In November, the Saskatchewan government al‐ so said it would use its Saskatchewan First Act for the first time to establish a tri‐ bunal to study the economic effects of the proposed regu‐ lations.
'No meaningful correc‐ tions': Alberta minister
In a statement sent to CBC News on Friday afternoon, Rebecca Schulz, Alberta's min‐ ister of environment and pro‐ tected areas, wrote that the update made "no meaningful corrections to the most de‐ structive piece of Canadian electricity regulation in decades."
"[Guilbeault] is still pushing emissions targets that are not feasible or realistic for 2035. The federal government is still proposing to violate Canada's constitution," Schulz wrote.
"Electricity is clearly within provincial jurisdiction."
The federal timeline jeop‐ ardizes reliability and afford‐ ability of power in the province, she added, insisting tweaks won't fix strategy and calling for it to be "scrapped entirely."
Dustin Duncan, Saskatchewan's minister re‐ sponsible for Crown corpora‐ tions, including SaskPower, wrote in a statement to CBC News that the announcement from the federal government was "an admission that the proposed Clean Electricity Regulations are unaffordable and technically and logistically unattainable."
"No tweaks or adjustmen‐ ts can adequately address the fundamental flaws in these regulations. The stacking on of additional federal regula‐ tions in this area of exclusive provincial jurisdiction is nei‐ ther helpful nor necessary," Duncan wrote.
"We continue to call on the federal government to ac‐ knowledge, and come to the table with funding to support, Saskatchewan's plan to achieve net-zero electricity generation by 2050 in a way that builds and protects Saskatchewan's economy while ensuring the continued viability of our power grid and publicly owned Crown utility for generations to come."
Political analyst Lori Williams of Calgary's Mount Royal University said it isn't quite accurate for Alberta's minister to say there has been no meaningful change.
Williams sees the remarks as a political part of a public negotiation, adding that what happens behind the scenes between governments might look rather different.
"It's politics, and they're trying to push for more in the way of compromise," Williams said.
"In fact, they're saying that this is exclusively provincial ju‐ risdiction, and the federal government has no role to play in this at all. I'm not sure that's going to be an effective strategy long-term."
New options under con‐ sideration
An Alberta-Ottawa work‐ ing group has been meeting since last September, with a stated goal of finding consen‐ sus around emissions reduc‐ tion and energy develop‐ ment.
Ottawa said over the past six months, it has been con‐ sulting with provincial and territorial governments, the Canada Electricity Advisory Council, Indigenous represen‐ tatives, electricity providers and environmental organiza‐ tions, among others.
Based on those consulta‐ tions, Ottawa said it was con‐ sidering new options for the clean electricity regulations.
The proposed changes would change several provi‐ sions provinces and utilities objected to initially. They in‐ clude dropping intensitybased standards from green‐ house gas emissions limits.
That means generators would no longer be forced to meet a single standard of how much carbon is emitted per unit of energy. Instead, each generator would be assigned an annual emissions limit.
Companies that own a number of generators would also be allowed to pool emis‐ sions from facilities operating in the same jurisdiction. Com‐ panies would also be allowed to buy carbon offsets to com‐ pensate for overshooting their assigned limits.
The government is also considering changes to how new plants are brought in un‐ der the regulations.
Under the previous scheme, operators were con‐ cerned about the require‐ ment that all generation would have to either be re‐ newable or be equipped with carbon abatement by 2035. They argued that projects al‐ ready under construction would be disadvantaged and could be left stranded once the new rules took effect.
The government now pro‐ poses a time-limited exemp‐ tion to that rule for fossil fuel generators that come into op‐ eration before 2025. A spokesperson for Environ‐ ment and Climate Change Canada said there could be some "wiggle room" on the start date.
Industries that generate their own power and feed ex‐ tra back into the grid are also affected by the proposals. Previously, all generated power would have been af‐ fected by the regulations.
Under the suggested changes, only the power that gets fed back into the grid is affected. Power generated and used on-site would not be.
Finally, small generators producing under 25 megawat‐ ts would still be exempted. But any new units at the same facility collectively gen‐ erating more than that would have to follow the regula‐ tions.
Confident on climate goals: Guilbeault
Jason Dion, senior research director for the Canadian Cli‐ mate Institute, wrote in a statement that the revised design was a "welcome change" that will deliver more flexibility for grid operators. Dion was a part of the govern‐ ment's electricity advisory council.
"Finalizing the regulations as early as possible would give policy certainty to grid operators, which would help with planning and invest‐ ment," said Dion, whose orga‐ nization focuses on climate change policy research.
When asked by CBC News whether the changes would affect Canada's climate goals moving forward, Guilbeault said the analysis is still on‐ going in regards to what's being proposed.
"There's a number of op‐ tions that have been put on the table. We won't necessar‐ ily use all of them, but we cer‐ tainly wants to hear people's views on all of them," he said.
"I'm confident that when we finalize the regulations, we will be very close to our initial target and that this very im‐ portant piece of regulation will enable Canada to reach its 2030 goals, en-route to a 2050 net-zero country."
Andrew Leach, who is an energy and environmental economist and a professor at the University of Alberta, said he thought Ottawa had re‐ sponded not only to concerns from Saskatchewan and Al‐ berta, but also from genera‐ tors, experts in the field and others.
"[Those people were say‐ ing], 'Hold on, hold on.' Elec‐ tricity is an industry that you need supply to equal demand at every instant in time, and some of the restrictions you're putting through, the [regulations] might compro‐ mise that," Leach said.
"Those flexibilities that needed to be there just weren't there. So you're seeing the federal govern‐ ment respond to that, which I think is great."
The government is contin‐ uing to collect feedback on the new regulations until March 15 and intends to pub‐ lish the final regulations later this year.