Important regulatory changes have been implemented to Alberta TIER, Saskatchewan OBPS, & BC CIIP/OBPS for the 2023 reporting year. Please review the following information, as it may impact the data Envirosoft needs to complete your reporting.
New for the 2023 reporting year, aggregate facilities are required to report their flaring emissions as part of compliance reporting. Alberta Environment and Protected Areas (AEP) released an update to Chapter 15 of the Alberta Greenhouse Gas Quantification Methodologies (AQM), providing guidance on how to quantify volumes and emissions associated with flaring. Aggregate facilities with flaring operations had the opportunity to submit an updated benchmark application, including flaring to AEP by December 1st, 2023. If an aggregate facility did not submit a re-benchmark application, AEP will be calculating the benchmark and provide to the operator, using the rich gas default and an assumed combustion efficiency of 98%.
Depending on information available, facilities can choose to use either default emission factors for methane and carbon dioxide emissions or use site specific gas compositions to calculate the methane and carbon dioxide emissions. For nitrous oxide, default emission factors must be used. For aggregates that use site specific gas compositions, quarterly flare gas samples must be taken.
For facilities using default compositions: Envirosoft will be pulling flaring volumes from Petrinex, but where multiple flare streams exist, we will need to know the default compositions most representative of each stream, and the volume assigned to each stream.
For Facilities with site specific sampling: Envirosoft will require clients provide their quarterly samples, for us to load into our system to quantify flaring emissions, in addition to the combustion efficiency for each flare.
2024 Planning and Sampling:
For facilities benchmarked using site specific gas compositions, ensure that sampling plans are in place to capture quarterly flare samples.
Effective January 1, 2023, the Saskatchewan Ministry of Environment’s Management and Reduction of Greenhouse Gases (MRGHG) (Standards and Compliance) Regulation includes reporting of flaring, on-site transportation and industrial product use source categories. The inclusion of these additional source categories aims to align existing baseline emission intensities with the 2023 federal benchmark.
Operators have until December 15, 2023, to submit a verified baseline to add additional source categories. Should operators choose to not submit prior to this date, the MRGHG will not be calculating a revised baseline on their behalf. Instead, operators will be required to report these additional sources for the 2023 compliance against the existing baseline. This may result in increased compliance obligations.
As per section 4(17) of the Industrial Facility Standard and section 4(14) of the Aggregate Facility Standard, regulated emitters are not required to revise existing stationary fuel combustion baselines using the global warming potentials for those greenhouse gases from IPCC’s Fifth Assessment Report (AR5). However, since the ministry will be re-calculating baselines to include additional source categories, stationary fuel combustion baselines will also be re-calculated with the revised AR5 factors to align with the methodology of the additional source categories. Only data that has not been previously verified will require verification.
Envirosoft will be pulling flaring volumes from Petrinex, but will require clients provide their flare gas analysis samples, for us to load into our system to quantify flaring emissions, in addition to the combustion efficiency for each flare.
For reporting of on-site transportation emissions, Envirosoft will require clients provide the volume of each fuel type used for on-site transportation for the calendar year for us to load into our system and quantify emissions from on-site transportation.
2024 Planning and Sampling:
For facilities adding additional source categories to an existing baseline, sampling and data collection plans should be in place for each additional source.
BC CIIP/ OBPS
In early 2023 the BC government announced changes to the CleanBC Industrial Incentive Program (BC CIIP), coming in 2024. As of April 2024, the BC CIIP program will be replaced with BC Output Based Pricing System (BC OBPS). Industrial facilities that meet the threshold will be required to register and report to the BC OBPS program. Facilities may also opt in.
BC CIIP is a voluntary program that provides operators the opportunity to receive incentive payments from the BC government to recuperate some of the carbon tax paid throughout the year. Through CIIP, operators pay carbon tax at the time of use and then depending on operations emissions intensity relative to a sector benchmark, operators may be eligible to receive a portion of the carbon tax paid in return.
The BC OBPS program has two main differences from CIIP. The first being that BC OBPS is mandatory for producers that emit greater than 10,000 tonnes of CO2e per year, and the second that BC OBPS allows operators to receive a carbon tax exemption certificate. This means that for registered operations, operators will not have to pay carbon tax at the time of purchase, but instead are required to submit their annual emissions and production to the OBPS program. Submissions will be reviewed, and operators will either receive credits, or be required to pay compliance costs depending on the intensity of their operations relative to sector benchmarks.
The BC OBPS program commences in the 2024 reporting year. For 2023 compliance reporting, there are no changes to the current CIIP reporting process.
2024 Planning and Sampling:
Operators that meet the 10,000 tonnes CO2e/yr threshold, or that wish to opt in to the BC OBPS program must register between January 1, 2024 and February 28, 2024. The carbon tax exemption certificates for approved facilities will take effect April 1, 2024.
For further information on the changes, please see the blog posts below, or reach out to firstname.lastname@example.org
We strongly encourage you to provide your feedback and contact us with any questions on how you may be affected by the proposed changes.