Draft rules to be issued later this week by Canadian officials would set a performance standard for coal-fired plants based on emissions levels from high-efficiency natural gas generation.

The proposed rules, which are to take effect in 2015, were unveiled last Friday by Canada’s Environment Minister Peter Kent during a visit to the Boundary Dam power station in Saskatchewan.

Under the rules the standard for new coal-fired plant emissions would be based on emission levels from high-efficiency gas-fired generation, which are estimated to be up to half the emissions levels of coal. Plants online by 2015 would be allowed to operate without the additional restrictions unless they wanted to extend their operating lives.

“Fully two-thirds of Canada’s coal-fired units are very close to their end of operating life,” Kent stated. The proposals would give plant operators and investors some certainty, he said. “What we’ve done is to avoid stranding capital on plants that still have years left in their operating lives.”

Canada first announced its intention to reduce greenhouse gas (GHG) emissions in the electricity sector last year. The government wants to encourage investment in “cleaner” technologies that include gas-fired generation, renewable energy, and carbon capture and storage. The Boundary Dam, noted Kent, is an example. SaskPower is spending C$1.2 billion to retool one of the coal-fired plants to pump its GHG emissions underground.

“Our strategy to lower our emissions is based on making improvements sector by sector to sustain our economy and protect our environment,” said Kent. “We are taking action in the electricity sector because we recognize the potential for significant emissions reductions.”

The government of Canada “is making progress toward our ambitious target of reducing our greenhouse gas emissions 17% from 2005 levels by 2020 through a sector-by-sector approach aligned with the U.S.,” Kent said.

Draft rules are to be published in the Canada Gazette on Saturday (Aug. 27) for a 60-day public comment period. The final rules are expected to be published in 2012, and regulations are scheduled to take effect on July 1, 2015.

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