Saskatchewan Announces Output-based Performance Standards; Ontario Removes Cost of Carbon from Natural Gas Rates

August 29, 2018

Saskatchewan Announces Output-based Performance Standards

 

The Government of Saskatchewan today announced that it has developed new output-based performance standards (OBPS) that will apply to more than 40 Saskatchewan industrial facilities, as part of the province's made-in-Saskatchewan climate change strategy, Prairie Resilience. 

 

The facilities subject to the OBPS generate 11% (or approximately 8.5 million tonnes) of total provincial emissions and are expected to reduce that portion by a total of 10% by 2030. These measures are in addition to previously announced reductions in electricity generation (40%) and methane from upstream oil and gas (40%).

 

Saskatchewan’s performance standards will increase over an established schedule from 2019 to 2030, cumulatively reducing greenhouse gas emissions by 5.3 million tonnes. The sector-specific performance standards are expected to achieve the following emissions intensity reductions:

  • Potash, coal and uranium mining: 5%

  • Iron and steel mills: 5%

  • Fertilizer manufacturing: 5%

  • Pulp mills: 5% 

  • Ethanol production: 5%

  • Refining and upgrading: 10% 

  • Upstream oil and gas – combustion only: 15%

 

The Government of Canada previously indicated that provinces opting to establish or maintain a provincial or territorial pricing system that meets the forthcoming federal benchmark need to outline how they are doing so by September 1, 2018.

 

Ontario Directs OEB to Remove Cost of Carbon from Natural Gas Rates

 

The Government of Ontario today announced its intention to remove the cost of carbon from natural gas bills in Ontario. The government indicated that removing the cost of carbon means a reduction of approximately 3.3 cents per cubic metre on the price of natural gas for Ontario consumers.

 

The Ontario Energy Board (OEB) has been notified to take immediate steps to remove the cost of  carbon from natural gas rates by October 1, 2018. The OEB is expected to provide direction to natural gas utilities no later than August 31, 2018, instructing utilities to file new customer rates with the cost of carbon removed.

 

Please contact Lisa DeMarco at lisa@demarcoallan.com should you wish to discuss the foregoing.

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