Envirosoft | Blog

BC OBPS Technical Backgrounder

Written by Lilja Eyvindson | Nov 30, 2023 9:52:45 PM

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 government 
  Allows 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 reporting 

Performance 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% Annually 

Registration 

  Must be completed between January 1st and February 28th 2024, to received carbon tax exemption credit for April 1, 2024 
  BCeID can be obtained here: BCeID - Home 
  May take several weeks to obtain BCeID 
  Operators must register 

Registration process for BC OBPS: 

  1.  Operator obtains a Business BCeID
  2.  Operators admin activates operators profile 
  3.  Operators admin can grant access to other users 
  4.  Users enter administrative and operation information 
  5.  Operators admin submits operation registration form 
  6.  CAS reviews operation registration form 
  7.  CAS sends confirmation of registration to operator 

Registration Process for Carbon Tax Exemption:

  1.  CAS sends confirmation of operation registration to operators
  2.  Operator downloads exemption certificate 
  3.  Operator fills out exemption certificate for each operation
  4.  Operator provides exemption certificate to fuel seller for each operation
  5.  Carbon tax is exempted for regulated fuel use 

Timeline 

Reporting & Compliance: 

  1. March 1 – Reporting Portal Opens
  2. May 31 – Emissions and Compliance Reporting Requirements Due
  3. November 30 – Compliance Obligations Due 

Opt-In Registration: 

  1. For transition year- Registration is due February 28th, 2024
  2. 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 data 
  Reporting only participants will require verification for emissions data. 

Baselining 

  Performance standards are set using the three-year average emissions intensity from 2019 to 2021 

Carbon Tax Exemption 

  Declaration form from ministry of finance is required to be presented at time of sale 
  Form 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:  

  1. NG intermittent devices venting
  2. NG Continuous low bleed devices venting
  3. NG Continuous high bleed devices venting
  4. NG Pumps Venting 

Onshore Petroleum and NG Productions 

  1. NG intermittent devices venting
  2. NG Continuous low bleed devices venting
  3. NG Continuous high bleed devices venting
  4. NG Pumps Venting 

NG Distribution: 

  1. NG intermittent devices venting
  2. NG Continuous low bleed devices venting
  3. NG Continuous high bleed devices venting
  4. 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:

TECHNICAL BACKGROUNDER B.C. Output-Based Pricing System  

B.C. Output-Based Pricing System 
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