Bill SK-2 SaskEnergy Act Carbon Tax Fairness

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Status: Royal Assent — December 10, 2024. This Bill is now Law.

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WHO GAINS POWER

  • The Legislature gains permanent control — the carbon tax exemption on natural gas can no longer be removed by Cabinet regulation; only a full Legislature vote can change it now

WHO LOSES POWER

  • Cabinet (Lieutenant Governor in Council) loses the ability to quietly repeal the natural gas carbon tax exemption by regulation — that option is permanently removed
  • Future Saskatchewan governments lose flexibility — ending the exemption now requires passing new legislation, not a Cabinet order

WHO GAINS MONEY

  • Saskatchewan natural gas customers — the carbon tax exemption on home heating is now locked in legislation and protected from quiet repeal
  • SaskEnergy ratepayers — no carbon tax added to natural gas bills as long as this legislation stands

WHO LOSES MONEY

  • Federal carbon pricing revenue — Saskatchewan continues to exempt natural gas from carbon pricing

⚠️ No fiscal impact stated — the Bill contains no estimate of the ongoing revenue impact of the exemption on provincial or federal finances.

THE CATCH

  • This Bill repeals two sections — it does not create a new exemption; it removes the mechanism that allowed Cabinet to cancel the existing one
  • A future Saskatchewan government that wants to end the exemption must pass new legislation — raising the political cost of any future policy change
  • The assent date is blank in the bill text — worth confirming the exact date from the Saskatchewan Legislature website before publishing

⚠️ Federal-provincial tension — Saskatchewan's refusal to collect the federal carbon tax on natural gas has been subject to ongoing legal and political dispute; this Bill entrenches that position in legislation.

[Source: Saskatchewan Legislative Assembly — Bill No. 2, The SaskEnergy (Carbon Tax Fairness for Families) Amendment Act, 2024, 30th Legislature, 1st Session; introduced by Hon. Jeremy Harrison]