Overview

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

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 which replaced the Carbon Competitiveness Incentive Regulation.

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.

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 opt in to 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 July 2020 to allow additional sectors to voluntarily opt-in to the regulation and reduce administrative burden for regulated conventional oil and gas facilities.

Regulation

Conventional oil and gas aggregation 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.

For the 2020 compliance year, an application must be received on, or before, November 1, 2020.

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:

2020 updates to person responsible

One of the amendments makes the operator of record of a conventional oil and gas facility the default person responsible for the facility. The following fact sheet provides instructions for applying this change for 2020 where desired:

The following form should be used to request that facilities receive an aggregate designation under a new person responsible.

Application for a facility-specific benchmark

Alberta Environment and Parks has changed the default 2020 benchmark year for conventional oil and gas facilities from 2019 to 2020. This means that true-up obligation for 2020 will be 10% of an aggregate facility’s stationary fuel combustion emissions.

As a result of this decision, regulated aggregate facilities are advised not to prepare and submit a TIER benchmark application in 2020 as 2020 compliance reporting will serve this purpose.

We will later communicate the method to submit your desired benchmark unit in early 2021 for confirmation by the department in advance of preparing your 2020 compliance report.

Additional information about the baseline years and benchmarking process for compliance year 2021 and beyond is still under consideration and will be communicated in a subsequent update.

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

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.

Verification documents

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

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

Conventional oil and gas aggregate facilities deadlines

  • September 18, 2020
    • Application for change in person responsible for 2020
  • November 1, 2020
    • Application for new aggregate designation for 2020
  • December 1, 2020
    • Application for change in person responsible for 2021
    • Adding a facility to an existing aggregate for 2020
    • Removing a facility from an existing aggregate effective January 2021
    • Application to revoke aggregate designation for 2021
    • Application for new aggregate designation for 2021
  • January 15, 2021
    • Benchmark Unit application for 2020 aggregates
    • Benchmark application for 2020 aggregate if using 2019 baseline
  • June 30, 2021
    • Compliance reporting for 2020 aggregates

Drafts for comment

No drafts are available for comment at this time.

Stakeholder presentations and other background information

Fact sheets:

Other reference materials:

Contact

Connect with Alberta Environment and Parks about the TIER regulation:
Email: aep.ghg@gov.ab.ca

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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Should you wish to have your personal information removed, changed or have any further questions or concerns, please contact John Storey-Bishoff, Regulatory and Compliance at 780-644-7119.

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