Premier Danielle Smith has been vehemently opposed to the regulations that aim to create a net-zero net-zero electricity grid starting in 2035, and has vowed they won’t be implemented in Alberta
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The federal government is considering a series of changes to its draft clean electricity regulations (CER) that Environment Minister Steven Guilbeault says reflects the feedback he’s received from industry and power providers.
The draft CER unveiled last August are intended to help transition Canada to a net-zero electricity grid starting in 2035.
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The regulations have drawn criticism from industry, who see the CER as impractical, and from some provincial governments including Alberta, where Premier Danielle Smith has vowed that they will not be implemented.
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On Friday, Guilbeault announced 10 potential changes to the CER that he claims offer more flexibility in how the standards are met.
“My sense is that many will find that they’ve been heard and that they’ve been listened to,” he said in an interview with Postmedia.
“I think people who are in the business of electricity in Canada realize that the path forward is decarbonization.”
The new provisions under consideration include an annual emissions limit that would be dependent on the size of the generation unit. That would coincide with the elimination of peaker provisions, the 450-hour limits on how long gas plants can be switched on during times of peak demand.
“If you’re moving towards an emission limit, then then companies will be incentivized to use their more efficient units as opposed to their more polluting units,” Guilbeault said.
Another possible change is allowing the use of offsets for those that go beyond their emissions limit, which is not permitted under the current draft CER.
“From a greenhouse gas perspective, it doesn’t change anything because they would have to compensate for their emissions, but it may give them more flexibility,” Guilbeault said.
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An additional update being proposed is to allow pooling: when utility companies or Crown corporations combine the emissions limits of individual existing unit into one pooled limit.
Changes to rules around new units under development, as well as to cogeneration units, are also under consideration, as is the draft regulations’ 20-year end-of-prescribed-life timeframe for natural gas or other units.
Postmedia has reached out to Smith’s office as well as the office of Alberta Environment Minister Rebecca Schulz for comment.
Guilbeault could not say if the possible overhaul of the CER would make them more palatable to Alberta.
“It’s hard for me to comment on what Premier Smith might say or not say.”
An analysis by Postmedia of the preliminary public feedback to the CER showed individual Canadians who wrote in were largely in favour of the regulations, while industry, power providers, and related groups were significantly more opposed.
Ottawa will continue to consult on the CER through March 15, with the regulations scheduled to be finalized later this year.
“Nothing is decided,” Guilbeault said.
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