Eligibility
Mandatory for producers in regulated industry with greater than 10000 tonnes CO2e/yr Smaller facilities may opt-in
Background
Developed to improve alignment with Federal governmentAllows industry to avoid paying carbon tax up from then being reimbursed
BC OBPS Replaces CIIP
BC OBPS Takes effect April 1, 2024
CIF (CleanBC Industry Fund) will remain in place but be modified to align with OBPS
Instead of carbon price on fuel, facilities will face carbon price on portion of emissions above limit.
Limits to be based on product specific performance standards aka. Emissions limit per facility
Methodology
Performance Standards are developed from CIIP reportingPerformance Standard = Reduction Factor * Production Weighted Average Emissions Intensity
Reduction Factor – Percentage of priced emissions for a specific product
Production Weighted Average Emissions Intensity – Total emissions for the products divided by the total production amount of the product
Tightening Rate
2% AnnuallyRegistration
Must be completed between January 1st and February 28th 2024, to received carbon tax exemption credit for April 1, 2024BCeID can be obtained here: BCeID - Home
May take several weeks to obtain BCeID
Operators must register
Registration process for BC OBPS:
- Operator obtains a Business BCeID
- Operators admin activates operators profile
- Operators admin can grant access to other users
- Users enter administrative and operation information
- Operators admin submits operation registration form
- CAS reviews operation registration form
- CAS sends confirmation of registration to operator
Registration Process for Carbon Tax Exemption:
- CAS sends confirmation of operation registration to operators
- Operator downloads exemption certificate
- Operator fills out exemption certificate for each operation
- Operator provides exemption certificate to fuel seller for each operation
- Carbon tax is exempted for regulated fuel use
Timeline
Reporting & Compliance:
- March 1 – Reporting Portal Opens
- May 31 – Emissions and Compliance Reporting Requirements Due
- November 30 – Compliance Obligations Due
Opt-In Registration:
- For transition year- Registration is due February 28th, 2024
- For subsequent years – Registration is due August 1 of the preceding year for which they would like to opt-in.
Compliance
Compliance Obligation: Emissions exceeding allowable can be paid using a maximum of 30% credits. Offsets must be used within 3 years.Compliance obligations are to be paid annually at the end of the year.
Verification
Will be required for all BC OBPS Participants for emissions and production dataReporting only participants will require verification for emissions data.
Baselining
Performance standards are set using the three-year average emissions intensity from 2019 to 2021Carbon Tax Exemption
Declaration form from ministry of finance is required to be presented at time of saleForm is tied to facility registration #
Any non-registered facilities need to pay tax on purchased fuel
Emissions Categories
|
Emissions Category |
GGIRCA/GGERR- Reporting |
BC OBPS – Compliance |
|
Flaring |
Yes |
Yes |
|
Fugitive |
Yes |
No |
|
General Stationary Combustion |
Yes |
Yes |
|
Industrial Process |
Yes |
Yes |
|
On-Site Transportation |
Yes |
Yes |
|
Venting |
|
|
|
Non-Useful Venting |
Yes |
No |
|
Useful Venting |
Yes |
Yes |
|
Waste |
Yes |
Yes |
|
Waste Water |
Yes |
Yes |
Useful Venting
Onshore NG Transmissions Compressions/Pipelines:
- NG intermittent devices venting
- NG Continuous low bleed devices venting
- NG Continuous high bleed devices venting
- NG Pumps Venting
Onshore Petroleum and NG Productions
- NG intermittent devices venting
- NG Continuous low bleed devices venting
- NG Continuous high bleed devices venting
- NG Pumps Venting
NG Distribution:
- NG intermittent devices venting
- NG Continuous low bleed devices venting
- NG Continuous high bleed devices venting
- NG Pumps Venting
FAQ
Credits may be transferred between facilities owned by the same operator, or between operators. Must all be participating in BC OBPS
Given that the B.C. OBPS point-of-sale exemption does not take effect until April 1, 2024, but the compliance period begins January 1, 2024, how will the first year of the new system work? ENV is still finalizing policy around the transition period between January 1, 2024, and April 1, 2024, and will share additional details in the coming months.
CIIP will apply for 2023 reporting (ie. no changes to 2023 reporting requirements)
How will reporting for 2024 year work with the exemption certificate not applicable until start of Q2? Currently being discussed by ENV
If you have questions about re-establishing a baseline for 2023, or would like our support, please reach out to your contact, or support@envirosoft.com.
Related:
