Saskatchewan’s Bill on Natural Gas Carbon Tax

The Government of Saskatchewan has presented new legislation designed to allow them to cease remitting the federal carbon tax imposed on natural gas bills. This legislation aims to offer legal protection for individuals within the energy Crown corporation.

In reaction to Ottawa’s decision to put off the tax on home heating oil, the Saskatchewan Party government stated last month that SaskEnergy would cease remitting the carbon tax on natural gas on January 1.

The federal action mostly benefits the Atlantic provinces, where natural gas serves as a primary source for home heating. Saskatchewan and other provinces have argued that it’s not fair that natural gas hasn’t received the same treatment.

The legislation presented on Thursday proposes to assign the province exclusive registration of natural gas distribution within Saskatchewan.

The legislation assures protection to the Crown corporation, as well as all present and past directors, officers, employees, and affiliated members, from potential legal repercussions stemming from their decision not to remit the tax.

According to federal law, companies that fail to remit the carbon tax may encounter substantial fines, and their executives could potentially face imprisonment as well.

“I think what we’ve tried to do is provide as much assurance as we can,” said the minister responsible for SaskEnergy, Dustin Duncan.

“This will be the government that will be making the decision in the event that we get to the point of not remitting the carbon tax.”

He stated that he hired personal legal representation in the matter and that the province is expected to fund his legal fees.

Duncan previously expressed that he’s ready to face potential consequences like going to “carbon jail” for not remitting the tax.

Last October, Prime Minister Justin Trudeau said that Ottawa wouldn’t provide additional exemptions, citing the considerably higher cost of heating oil compared to natural gas and the limited alternatives available for consumers.

The Saskatchewan government claims that eliminating the federal carbon tax from SaskEnergy bills could result in an approximate savings of $400 for an average family in the province next year.

SaskEnergy remitted $172 million in carbon tax to the federal government in 2022.