Canada: Innovating A Path To Emission Reductions: Alberta Government Seeks Stakeholder Feedback On Proposed New Emissions Reduction Framework For Large Industrial Emitters

Last Updated: July 26 2019
Article by Canadian ERA Perspectives and Selina Lee-Andersen

Most Read Contributor in Canada, August 2019

The Alberta government is seeking feedback from stakeholders on its proposed Technology Innovation and Emissions Reduction (TIER) system, which is intended to replace the current Carbon Competitiveness Incentive Regulation (CCIR) on January 1, 2020. TIER is designed to encourage energy-intensive facilities to find innovative ways to reduce emissions and invest in clean technology to stay competitive. Alberta Environment & Parks (AEP) released the TIER Discussion Document on July 9, 2019 which outlines the proposed policy changes expected under the TIER system compared to the current CCIR. The deadline for stakeholder feedback is August 2, 2019.

Overview of Proposed TIER System

Under the proposed TIER system, facilities that emit more than 100,000 tonnes of carbon dioxide equivalent (CO2e) per year (other than electricity generators) will be required to comply with facility specific product benchmarks, equal to 90% of their average 2016 to 2018 emissions intensity. The reduction requirement would increase by 1% per year, starting in 2021 (i.e. facility-specific product benchmarks would decrease from 90% of baseline emissions intensity in 2020, to 89% in 2021, 88% in 2022, and so on). AEP is seeking input on whether the tightening rate should apply to the "good-as-best-gas" benchmark for electricity.

Electricity facilities with more than 100,000 tonnes of CO2e per year will be required to comply with a "good-as-best-gas" benchmark set at 0.37 tonnes of CO2e per megawatt hour (MWh). This benchmark is equal to the performance of the best combined-cycle natural gas powered electricity generator in Alberta.  

Regulated facilities can achieve compliance by:

  • reducing their emissions;
  • using credits from facilities that have met and exceeded their emissions targets;
  • using emission offsets from organizations that are not regulated by TIER, but have voluntarily reduced their emissions;
  • paying into the TIER Fund, which will be used for new Alberta-based technologies that reduce emissions, such as research and investment in carbon capture, and improved oil sands extraction technology.

The first $100 million in annual revenue and 50% of the remaining revenue paid into the TIER Fund will be used for emissions reduction technologies, such as new and improved technologies for oil sands extraction, research and investment in carbon capture, utilization and storage, or other areas of opportunity for industrial emission reductions. The Alberta government is also considering solutions under the TIER system to protect 26 facilities (including smaller conventional oil and gas facilities) emitting less than 100,000 tonnes of CO2e per year from the federal fuel levy.

Opt-In/Opt-Out for Facilities Emitting <100,000 Tonnes

Under the TIER system, it is proposed that a facility may opt-in to the system if it competes directly against a facility that is covered by the regulation, or if the facility has greater than 10,000 tonnes CO2e of annual emissions and belongs to a high Emissions Intensive and Trade Exposed (EITE) sector. Eligible facilities that opted-in to the CCIR would be automatically opted-in to TIER to facilitate exemption from the federal fuel charge, but may opt-out if desired.

On the ability to opt-out, AEP is seeking input on provisions to allow opted-in facilities and regulated facilities with emissions below a certain threshold for a certain period of time to opt-out of the TIER regulation without being required to demonstrate equivalent coverage under an alternative regulatory system.

Consultation Process

AEP, which is leading consultation activities on TIER, is seeking feedback on the following areas:

  • scope of emissions coverage (including indirect emissions, industrial process emissions, biomass emissions, formation CO2 emissions, and fugitive emissions) and thresholds;
  • criteria for opt-in/opt-out provisions;
  • how to treat new facilities and best-in-class facilities;
  • compliance flexibility – it is proposed that credits created under the Specified Gas Emitters Regulation and CCIR will be eligible for use under TIER, with the same expiry dates;
  • fund credit price;
  • treatment of conventional oil and gas producers below the emissions threshold;
  • TIER Fund design for innovation funding;
  • reporting and verification requirements;
  • Compliance Cost Containment Program; and
  • regulatory review frequency – it is proposed that an initial regulatory review be completed by January 1, 2023, and every fifth year after 2023.

While other policies are currently being reviewed by government, the scope of this consultation process is primarily focused on the TIER system. In particular, AEP has indicated that the carbon levy, oil sands emissions limit, methane regulations, renewable electricity program, federal fuel charge, emission offset protocols, among others, are outside the scope of the TIER engagement process.

Next Steps

The proposed TIER system has been put forward by the Alberta government as the centrepiece of province's approach to climate change, and further details are expected in fall 2019. AEP has indicated that it is working with its federal counterparts to ensure that the proposed TIER system meets federal benchmarking criteria to avoid the need for the federal output-based carbon pricing system for large emitters (under the Greenhouse Gas Pollution Pricing Act) to be implemented in Alberta.  Separately, the federal government has announced that the federal carbon levy will apply in Alberta from January 1, 2020. The ministers of AEP, Agriculture and Forestry, and Energy are planning to meet with a variety of industry stakeholders throughout July 2019.

To view the original article click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions