New Federal Coal Regulations Proposed to Reduce GHGs
August 19, 2011
The Federal Government announced the Proposed Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations today (Friday, August 19, 2011). These new regulations will apply to all new builds and to facilities that have reached the end of their economic-life.
The proposed regulations are divided into four parts:
- Performance standards for CO2 emissions intensity. This part also provides exemptions in relation to emergencies and units integrated with carbon capture and storage systems (meaning that if units use CCS, and potentially assist with the exploitation of additional fossil fuels they may be subject to a less stringent performance standard)
- Requirements for recording and reporting data
- Quantification rules
- Coming into force schedule for the phased implementation of the performance standard (The regulations will begin coming into force in 2013 and standby units will not be subject to the standards until 2020)
The government announced this move as part of the broader suite of industry-specific initiatives to reduce GHGs. It states that the new regulations will reduce the absolute GHGs from the sector by 31 megatons between 2005 and 2020. Notably, these regulations do not create any new obligations for existing coal fire plants, some which have decades left in their economic-life. There is still much that can be done to lower GHGs and create a more stringent regulatory environment in the sector going forward, although the government has not announced any immediate intention to further regulate existing facilities.
Critics argue that the regulations do not do enough. For instance, they do not apply to new builds, such as one recently announced by Maxim Power Corp in Alberta, approved before the regulations are implemented.
According to the Vancouver Sun, Minister Kent touted the proposed regulations as very relevant to the sector, as many plants will reach the end of their economic-life this decade. See Angela Hall’s article here for more.
The government has been consulting key stakeholders since it announced its intention to make these regulations in June of 2010. The proposed regulations will be posted in the Canadian Gazette on August 27th and will be open for comments for 60 days following.
More information can be found through Environment Canada’s press release.