Saskatchewan premier Scott Moe (pictured above) has announced that starting January 1, the province will no longer collect the federal carbon tax on electric heat.

Moe stated that individuals in northern Saskatchewan who use electric heat should be exempt from paying the levy. According to The Canadian Press, the province plans to identify those who use electricity for heating and reduce a percentage of their bills accordingly.

The announcement comes a few weeks after Moe declared that SaskEnergy, the provincial natural gas utility, will not send Ottawa the carbon charge on natural gas. Moe made the decision in response to Prime Minister Justin Trudeau’s exemption on home heating oil, which is used almost exclusively in the Atlantic provinces. Moe has described the exemption as unfair.

Moe was one of five premiers to sign an open letter in November asking Trudeau to exempt all forms of home heating from the federal carbon tax. However, Trudeau has not issued any further exemptions.

In response to the latest news from Saskatchewan, Trudeau has said that he expects Saskatchewan to follow the law. He also said that the exemption for home heating oil is justified, as heating oil is far more costly than natural gas. According to Trudeau, it’s impractical for individuals using heating oil to switch to other energy sources.

Moe has said that he expects “no consequences” for his refusal to collect the federal carbon tax on electric heat. Moe’s government recently introduced legislation to protect SaskEnergy executives from fines or jail time if the company does not remit carbon charges.

Saskatchewan is not the only province to defy the federal government’s push toward net zero CO2 emissions. On Monday, Alberta premier Danielle Smith invoked the Alberta Sovereignty Act.

The Sovereignty Act seeks to force provincial government agencies to disobey upcoming federal clean energy regulations. However, Smith has conceded that the measure will have little practical impact.

In spite of Alberta and Saskatchewan’s hostility to Trudeau’s decarbonization plans, the renewables sector is growing rapidly in both provinces.

Solar capacity grew tenfold in Alberta between 2020 and 2022. Meanwhile, Saskatchewan plans to add 3,000 MW of new wind and solar capacity by 2035. Renewables currently account for roughly a third of both provinces’ power grids.

Image Source: CBCSaskatchewan