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Overview
The Technology Innovation and Emissions Reduction (TIER) system is specific to the conventional oil and gas sector.
The Government of Canada applied a federal fuel charge to all fossil fuels used in Alberta on January 1, 2020 under the Greenhouse Gas Pollution Pricing Act (GGPPA). On the same date,
Alberta introduced the Technology Innovation and Emissions Reduction Regulation (AR 251/2022) as the province’s improved approach to reducing greenhouse gas emissions from large industrial facilities.
The GGPPA includes provisions to exempt facilities regulated under provincial policies that meet federal criteria. TIER meets federal requirements and protects regulated facilities from the GGPPA, while achieving emissions reductions using an approach that is cost-efficient and tailored to Alberta’s industries and priorities.
The TIER regulation since 2016 has automatically applied to facilities that annually emit 100,000 tonnes CO2e or more of greenhouse gases (GHGs) or import more than 10,000 tonnes of hydrogen annually.
Federal fuel charge exemption
To protect industry from the federal fuel charge, Alberta allows eligible conventional oil and gas facilities with less than 100,000 tonnes CO2e per year to opt into the TIER system. A facility regulated under TIER may apply for an exemption from the federal GGPPA requirements and would only be subject to the compliance requirements of the provincial TIER system.
Emitters need to register with the Canada Revenue Agency to obtain an exemption certificate that can be provided to fuel suppliers. This will allow deliveries of fuel to be made to you without the application of the federal fuel charge at the time of delivery if the fuel is for use at your facility, or any of the individual facilities of your aggregate facility, subject to certain conditions.
The registration process is outlined in the Federal Fuel Charge Exemption Application TIER Fact Sheet
Federal fuel charge exemption
To protect industry from the federal fuel charge, Alberta allows eligible conventional oil and gas facilities with less than 100,000 tonnes CO2e per year to opt into the TIER system. A facility regulated under TIER may apply for an exemption from the federal GGPPA requirements and would only be subject to the compliance requirements of the provincial TIER system.
Emitters need to register with the Canada Revenue Agency to obtain an exemption certificate that can be provided to fuel suppliers. This will allow deliveries of fuel to be made to you without the application of the federal fuel charge at the time of delivery if the fuel is for use at your facility, or any of the individual facilities of your aggregate facility, subject to certain conditions.
The registration process is outlined in the Federal Fuel Charge Exemption Application TIER Fact Sheet.
Amendments and orders
- Order in Council 403/2022 – TIER Regulation Amendments – December 2022
- Ministerial Order 03/2024: Technology Innovation and Emissions Reduction Regulation High Performance Benchmark and Benchmark Unit Order – February 2024
- MO 87/2021: Technology Innovation and Emissions Reduction Fund Credit Amount – December 2021
- MO 062/2022: Technology Innovation and Emissions Reduction Fund Credit Amount – December 2022
Application forms
Aggregate facility application
The owner of two or more conventional oil and gas facilities may apply to have those facilities regulated under the TIER regulation by applying to form a conventional oil and gas facility aggregate.
An aggregate facility is a combination of conventional oil and gas facilities that are treated as a single facility. The aggregate facility treatment streamlines the reporting and compliance process and simplifies the administrative requirements of the TIER system.
- New Aggregate Facility Application Form
- Guidance for Creating Boundaries
- A/media/4476ggregate Application TIER Fact Sheet
Updates to existing aggregates
The following forms should be used to request additions or removals of conventional oil and gas facilities and/or individual Petrinex facilities from existing aggregates.
Removals take effect for the following calendar year. Additions will be reviewed and approved as received.
- Adding Facilities to Existing Aggregate Application Form
The deadline is November 15 to add a facility to an existing aggregate or create a new aggregate in the same calendar year. - Removing Facilities from Existing Aggregate Application Form
The deadline is December 1 for removal of a facility from an existing aggregate or revocation of aggregate designation for the upcoming year.
Application for a facility-specific benchmark
The person responsible for an aggregate facility may choose two or three reference years within the three consecutive year period beginning with the year prior to the first year of being registered under TIER for benchmarking purposes. For aggregates that entered TIER in 2021, the reference year for 2021 compliance will be 2020 where that data is obtainable.
Aggregate facility forms for benchmarks
- Aggregate Facility Specific Benchmark Application Form
- Aggregate Facility Benchmark Unit Request Form
- Aggregate Facility Reference Years Notification Form
- Aggregate Facility Benchmark Unit Option 2 Support Workbook (additional guidance for option 2)
- Standard for Developing Benchmarks (aggregate facilities)
- Video instructions for filling out Aggregate Benchmark Forms above
Benchmarking deadline September 1
Requests could include:
- for the upcoming reporting year
- re-assessments of benchmark unit, benchmark or benchmark reference years
Operators are encouraged to contact the department to discuss submission timing for same-year enrolled facilities.
First compliance year requirements
- Use the Aggregate Facility Specific Benchmark Application Form and provide the verified previous year GHG emissions and volumetric data. If seeking an exemption from using the previous year’s data contact the Department.
- Notification about selected Benchmark Reference Years use the Aggregate Facility Reference Years Notification Form. The default option is 2023 to 2025
Compliance reporting documents
All facilities are required to submit verified annual compliance reports yearly by June 30 of the following year. Reference materials will be available on this page.
- Standard for Completing GHG Compliance and Forecasting Reports
- TIER Aggregate Compliance Reporting Form – 2023
Verification documents
Lead verifiers, peer reviewers, and designated signing authorities completing verifications for compliance reports submitted by June 30 and benchmark applications submitted by September 1are required to complete the TIER-specific verification training. Note that this is updated verification training provided through an online Learning Management System that requires registration. For more information about this training and/or to register for this training, contact the department at [email protected].
- Standard for Validation, Verification and Audit
- Verification Report Template
- Verification training
Lead verifiers, peer reviewers, and designated signing authorities completing verifications should take the online Learning Management System training. To register email [email protected].
Quantification methodologies
Deviation Request form
If a facility is unable to meet any mandatory quantification methodologies, the facility may submit a deviation request to the director for review and approval. If accepted, the director may approve a deviation for a period of up to 12 months. Refer to the AQM and Standard for Completing Greenhouse Gas Compliance and Forecasting Reports for details to deviation requests.
The following form may be completed and submitted to the director at [email protected].
Change Notification
All facilities are required to submit a notification of certain changes to the facility as set out in section 25 of the regulation. These include changes to the person responsible for an aggregate or a conventional oil and gas facility that is part of an aggregate, if a conventional oil and gas facility has emissions greater than 100,000 tonnes of carbon dioxide equivalent, imports more than 10,000 tonnes of hydrogen in a year, or if a conventional oil and gas facility is decommissioned.
The following form should be used for this purpose:
The form may also be voluntarily used to notify of a change in the certifying official or reporter for person responsible.
Additional resources
Contact
Connect with Alberta Environment and Protected Areas about the TIER regulation:
Email: [email protected]
Subscribe to the conventional oil and gas mailing list
This automatic email system distributes information specific to the conventional oil and gas sector with respect to the Technology Innovation and Emissions Reduction system to subscribers. This list and website are the primary sources of information and updates on greenhouse gas mitigation for Alberta's conventional oil and gas sector.