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Equivalency agreement signed

The Governments of Canada and Saskatchewan have reached an agreement in principle to finalize an equivalency agreement for Canada’s existing coal-fire regulation.

The Governments of Canada and Saskatchewan have reached an agreement in principle to finalize an equivalency agreement for Canada’s existing coal-fire regulation. The agreement will now include an equivalency clause that recognizes the current and future opportunities for carbon capture and storage (CCS) to trap carbon dioxide and store it.

That process has already been deployed at SaskPower’s Boundary Dam Power Station on the refurbished 115 megawatt Unit 3 that includes a carbon dioxide carbon capture island.

On Nov. 21, the federal government announced regulatory action that will accelerate the transition from traditional coal power to clean energy by 2030. Traditional coal-fired electricity does not use carbon capture and storage technology.

Once finalized, the federal/provincial equivalency agreement on coal-fired power generation regulations will provide Saskatchewan with more flexibility in transitioning to more renewable energy including evaluating future opportunities for carbon capture and storage.

“This agreement is good news for Saskatchewan’s environment and provincial economy,” Environment Minister Scott Moe said. “We can proceed with our aggressive plan to move to 50 per cent renewable energy generation capacity by 2030, cutting emissions by 40 per cent over 2005 levels. Saskatchewan can continue to use coal in a responsible manner beyond 2030 as long as equivalent emission reduction outcomes are achieved.”

Federal Minister of Environment and Climate Change, Catherine McKenna, who had toured the Boundary Dam Unit 3 site earlier this year, said, “I’m pleased to work with the province toward an equivalency agreement that makes sense for them and that considers the innovative steps they’re taking toward renewable electricity and lower emissions electricity sources. I look forward to continuing to collaborate with all provinces and territories to find ambitious solutions to climate change as we set ourselves on a sustainable and prosperous path for the future.”

Through the agreement, the province would be allowed to meet or improve upon federal emission requirements on the electricity system-wide bases as opposed to regulation of every coal-fired plant.

The agreement recognizes that Saskatchewan will meet emissions outcomes of the federal government’s coal-fired electricity regulation and proposes to take provincial emissions into account as of July 1, 2015, in establishing the equivalency agreement.

The agreement acknowledges the province has introduced CCS “in advance of, and beyond regulatory requirements” and has a significant public commitment to renewable energy.