The Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations, 2023, establish the framework for managing and reducing greenhouse gas emissions from regulated facilities. Enacted under Order in Council 199/2023 these regulations form part of the broader legislative effort to address climate change impacts by setting standards and compliance requirements for industrial and electricity facilities.

The regulations provide detailed definitions to clarify various terms used throughout the document. Key definitions include “associated gas,” which refers to gas produced from oil wells, and “baseline emissions intensity,” a metric calculated by dividing the baseline emissions level of a commercial product by its baseline production level. This metric helps in determining the emissions profile of products at industrial facilities.

“Regulated emitter” is a central term defined as any person or entity owning or operating a facility with significant greenhouse gas emissions. For industrial facilities, this threshold is set at 25,000 tonnes of CO2 equivalent (CO2e) in 2017 or subsequent years. For electricity facilities, the threshold is 10,000 tonnes of CO2e starting in 2022. Facilities meeting these thresholds are required to comply with the regulations.

The regulations outline various types of facilities and their associated emission categories. “Electricity facility” is defined as a facility primarily involved in generating electricity and, if applicable, sold heat. In contrast, “industrial facility” pertains to those where the primary commercial product is not electricity but may involve electricity generation.

Specific provisions address the treatment of emissions from different sources and types of fuel. For example, emissions from associated gas combustion are categorized differently depending on whether the facility is an electricity or industrial facility. The regulations also account for facilities under construction and those decommissioned, ensuring that emissions from these stages are appropriately managed.

Facilities must adhere to various reporting requirements to demonstrate compliance. These include “baseline submissions” for determining baseline emissions intensity and “compliance returns” to prove that facilities have met their compliance obligations. “Emissions returns” are used to report actual emissions against permitted levels and determine if performance credits have been earned or compliance obligations incurred.

The regulations establish performance standards and emission limits. These standards set limits on allowable emissions per unit of commercial product or per unit of electricity and heat generation. Facilities must meet these standards to avoid non-compliance penalties.

Saskatchewan (OIC 199/2023) May 12, 2023.