TIER Conventional Oil and Gas

Information for the conventional oil and gas industry on opting in to the TIER regulation.

Overview

This page provides information about the Technology Innovation and Emissions Reduction (TIER) system specific to the conventional oil and gas sector.

The Government of Canada applied a federal fuel charge in Alberta on January 1, 2020 under the Greenhouse Gas Pollution Pricing Act (GGPPA). The fuel charge applies to fossil fuels used in the province.

On January 1, 2020, the Government of Alberta introduced the TIER Regulation – 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 automatically applies to facilities that emitted 100,000 tonnes CO2e or more per year of greenhouse gases (GHGs) in 2016, or a subsequent year, or import more than 10,000 tonnes of hydrogen annually.

Federal fuel charge exemption

To protect industry from the costs of the federal fuel charge, the Government of Alberta is also allowing eligible conventional oil and gas facilities with less than 100,000 tonnes CO2e per year to voluntarily enter into the TIER system. Additional information about eligibility and the application process is available on this page.

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.

The TIER regulation was amended in December 2022.

Regulation

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.

Federal fuel charge exemption application

As a person responsible for a facility regulated under TIER, you can register as an emitter with the Canada Revenue Agency (CRA). Registering as an emitter with the CRA will allow you to obtain an exemption certificate, which you can provide to your fuel supplier(s). 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.

Additional information on how to register as an emitter with the CRA:

Updates to existing aggregates

The following form 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.

Application for a facility-specific benchmark

For benchmarking purposes, 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 aggregates that entered TIER in 2021, the reference year for 2021 compliance will be 2020 where that data is obtainable.

The following forms may be used by an aggregate facility to submit a facility specific benchmark application or request a benchmark unit. As well, a benchmark unit option 2 support workbook provides additional guidance to those aggregate facilities that are selecting option 2 for their benchmark unit approach.

General information about benchmarks for aggregate facilities can be found in the Standard for Developing Benchmarks.

The following instructional video provides an overview for filling out the above forms.

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.

The following instructional video provides an overview for filling out the 2020 benchmark version of the compliance form.

Verification documents

Applications for facility specific benchmarks and compliance reports require third party verification.

Verification training requirement

Lead verifiers, peer reviewers, and designated signing authorities completing verifications for 2020 compliance reports submitted by June 30, 2021 and benchmark applications submitted by September 1, 2021 are required to complete the TIER-specific verification training. Training is encouraged but is not mandatory for verification of emission offset project reports submitted in 2021.

If you are a designated signing authority, lead verifier or peer reviewer and have not taken the training in one of the live sessions please review the training below and submit a quiz to [email protected].

Quantification methodologies

Quantification methodologies for aggregate facilities are provided in the Alberta Greenhouse Gas Quantification Methodologies (AQM).

Notification of changes

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 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.

Aggregate facilities deadlines

  • June 30, 2023
    • Compliance Reporting for 2022
  • September 1, 2023
    • Request for a review of the aggregate’s facility-specific benchmark for 2023 for existing aggregate facilities.
      • It can include re-assessments of benchmark unit, benchmark or benchmark reference years.
    • Application for Benchmark Unit and Benchmark for aggregates for which 2023 is the first Compliance Year.
      • Aggregate Facility Specific Benchmark Application Form to be used providing verified 2022 GHG emissions and volumetric data. If seeking an exemption from using 2022 data contact the Department.
    • Notification about selected Benchmark Reference Years for aggregates for which 2023 is the first Compliance Year.
      • Aggregate Facility Reference Years Notification Form to be used. The default option is 2022 to 2024 period.
  • November 15, 2023
    • Application for adding a facility to an existing aggregate facility for 2023.
    • Application for creating a new aggregate facility for 2023.
  • December 1, 2023
    • Application for removal of a facility from an existing aggregate facility for 2024.
    • Application for revocation of aggregate facility designation for 2024.

Drafts for comment

Stakeholder presentations

Fact sheets

2023 Fall Conventional Oil and Gas Webinar (September 2023)

2023 Spring Conventional Oil and Gas Webinar (March 2023)

2022 Fall Conventional Oil and Gas Webinar (October 2022)

2022 Spring Conventional Oil and Gas Webinar (April 2022)

2021 Fall Information Webinar (November 2021)

2021 Benchmarking Options Webinar (July 2021)

2020 Compliance Workshop (March 2021)

Other reference materials

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.

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