BC's Greenhouse Gas Industrial Reporting and Control
Act(theAct) came into force on January 1, 2016. The Actwas
originally passed by the BC legislature in November 2014 and
enables performance standards to be established for industrial
facilities or sectors. The Act currently sets a greenhouse (GHG)
emissions benchmark for liquefied natural gas (LNG) facilities,
along with an emissions benchmark for coal-based electricity
generation operations. Performance standards for other industrial
facilities and sectors will likely be added later on. TheActalso
streamlines several aspects of existing GHG legislation into a
single legislative and regulatory system, including the GHG
reporting framework established under theGreenhouse Gas Reduction
(Cap and Trade) Act.
As reported in our earlier blog, the Act establishes a GHG emissions
intensity benchmark of 0.16 carbondioxide equivalent (CO2e) tonnes
per tonne of LNG produced, which will cover all facilityGHG
emissions (including combustion, electricity generation, venting
and fugitives) from the point when gas enters a facility to where
it is loaded on to a ship or rail car to go to market. The Act
defines a "facility" as including all buildings,
structures, stationary items and equipment that are (i) located or
used primarily on a single site, contiguous sites or adjacent
sites, (ii) are controlled by the same person, and (iii) function
as a single integrated site.
Three regulations necessary to implement the Act also came into
effect on January 1, 2016:
Greenhouse Gas Emission Control Regulation,
which establishes the BC Carbon Registry to track compliance unit
transactions and sets criteria for developing emission offsets
issued by the BC government. The regulation also establishes a
price of $25 for funded units issued under the Act that will be put
towards a technology fund to support the development of clean
technologies. Regulated operations (including LNG operations), will
purchase offsets from the market or funded units from government to
meet emission limits.
Greenhouse Gas Emission Administrative Penalties
and Appeals Regulation, which establishes the process for when,
how much, and under what conditions administrative penalties may be
levied for non-compliance with the Act or regulations. The
regulation establishes a maximum monetary administrative penalty of
$50,000 for failure to submit required reports or verification
statements, or for failure to produce information or records for
inspection. In addition, regulated entities may be required to
retire compliance units in certain circumstances for non-compliance
with the Act or regulations; the formulas for calculating such
administrative penalties are set out in the regulation. Also, the
regulation provides that certain decisions relating to
methodologies, validation and verification bodies, acceptance of
project plans, and the issuance of offset units may be appealed to
the Environmental Appeal Board in accordance with the procedures
set out in the Environmental Management Act.
Industrial operationslocated in British Columbia and emitting
10,000 tonnes or more of carbon dioxide equivalent emissions (CO2e)
per year (excluding emissions from biomass listed in Schedule C of
the regulation) have been required to report GHG emissions since
2010 (reporting operations emitting 25,000 tonnes or more of CO2e
per year have also been subject to a third party verification
requirement). Under the new GHG reporting framework, industrial
operations will continue to report and where applicable, verify,
GHG emissions as they have since 2010.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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