Notice of intent to amend Part 2 of Schedule 1 to the Greenhouse Gas Pollution Pricing Act

Purpose

The purpose of this notice is to announce the intent to make an order under section 189 of the Greenhouse Gas Pollution Pricing Act (the Act) to delete the name of a province from Part 2 of Schedule 1 to the Act (the Order). The Order would implement the measure set out below taken in response to the stated intention of the Government of Canada to stand down the Output-Based Pricing System (OBPS) in Saskatchewan.

Pursuant to section 194 of the Act, the measure referred to in this notice may take effect earlier than the day on which the Order is made, if the Order so provides. Subject to Governor in Council approval, it is proposed that this Order be made in 2023 and could take effect as early as January 1, 2023.

Context

In summer 2021, Canada updated the federal benchmark for the 2023–2030 period. This update confirmed the national minimum price on carbon pollution to 2030, and strengthened the criteria that all carbon pollution pricing systems must meet in order to ensure all systems across Canada will be comparable in terms of stringency and effectiveness. All carbon pollution pricing systems will be required to meet the updated federal benchmark requirements for 2023; otherwise the federal OBPS will apply.

Following this update, Environment and Climate Change Canada reviewed proposed provincial and territorial carbon pollution pricing systems to determine if they meet the updated federal benchmark. Following this assessment, the Government of Canada intends to stand down the federal OBPS in Saskatchewan, as their system is expected to meet the updated federal benchmark requirements as of January 1, 2023.

Description of the potential measures

The OBPS, established under Part 2 of the Act, applies to covered facilities located in provinces listed in Part 2 of Schedule 1 to the Act. In order that the OBPS no longer applies in Saskatchewan, an order made under section 189 of the Act would delete the name of the province of Saskatchewan from Part 2 of Schedule 1 to the Act.

Coming into force

The Act permits the Order to have effect retroactively. However, the Order must not have effect before the day on which this notice is published.