The Technology Innovation and Emissions Reduction (TIER) Regulation is Alberta’s industrial greenhouse gas emissions pricing regulation and emissions trading system. Facilities regulated under TIER must reduce emissions to meet facility benchmarks.
TIER applies to about 60% of Alberta’s emissions. Facilities that reduce emissions beyond their benchmark can generate emissions performance credits. Facilities that do not directly meet their benchmark can comply in one of three ways:
- submit Alberta Emission Offsets generated from qualifying emissions reductions outside of regulated facilities
- submit emissions performance credits
- obtain fund credits by paying the prescribed price into the TIER fund
TIER replaced the Carbon Competitiveness Incentive Regulation (CCIR) on January 1, 2020.
TIER facilities are exempt from paying the federal fuel charge. The TIER regulation applies to facilities that emitted 100,000 tonnes of carbon dioxide equivalent CO2e or more per year of greenhouse gases in 2016, or a subsequent year.
A facility with less than 100,000 tonnes CO2e per year may be eligible to opt-in to the TIER if it competes against a facility regulated under the TIER regulation, or emits 10,000 tonnes CO2e or more per year and belongs to a sector with high emissions intensity and trade exposure.
The owner of two 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 aggregate. More information for conventional oil and gas facilities is available on the TIER Conventional Oil and Gas sector TIER website.
Facility owners may also be eligible to receive economic relief under the Compliance Cost Containment Program.
The Alberta Emission Offset System enables the generation of Alberta Emission Offsets as a method of compliance under TIER.
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. The amendments can be reviewed in Order in Council (233/2020) (PDF, 230 KB).
- Technology Innovation and Emissions Reduction Regulation
- Ministerial Order: Technology Innovation and Emissions Reduction Fund Credit Amount – November 2020
- Ministerial Order: 2019 CCIR Compliance Reporting Deadline – June 30, 2020
- Order in Council (233/2020) TIER Regulation Amendments – July 2020 (PDF, 230 KB)
Facilities that satisfy the criteria under the regulation may apply to opt-in to the regulation.
By opting in, facilities may apply to become exempt from the application of the Greenhouse Gas Pollution Pricing Act (GGPPA) for fuels whose emissions are included in their site reporting.
- TIER Opt-in Application Form (XLSM, 2.3 MB)
- TIER Opt-in Fact Sheet (PDF, 420 KB)
- Standard for Developing Benchmarks
- Guidance for Creating Boundary Files (PDF, 2.4 MB)
Conventional oil and gas opt-in
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 aggregate facility (PDF, 219 KB) .
Additional information is available on the TIER Conventional Oil and Gas sector website.
The TIER regulation makes use of both facility specific and high performance benchmarks. Details of the benchmark setting process are available here:
Large emitters and opted-in facilities can apply for benchmarks using the following forms. These apply to facilities with one product or facilities with multiple products including facilities with self-generation of electricity:
- Single-Product Benchmark Form (XLS, 1.3 MB)
- Multi-Product Benchmark Form (XLS, 1.3 MB)
- Self-Generation Form for Multi-Product Facilities (XLS, 183 KB)
The following instructional videos provide a step-by-step overview for filling out the forms:
Compliance reporting documents
All facilities are required to submit verified annual compliance reports yearly by June 30 of the following year. Supporting documents for the compliance reporting process will be published on this page.
Forecasting reports are required under the regulation for facilities that have had emissions of one million tonnes CO2e or more per year.
- Standard for Completing Greenhouse Compliance and Forecasting Reports
- Forecasting Report (XLSM, 95 KB)
Compliance reporting and benchmark applications require third party assurance.
Alberta Greenhouse Gas Quantification Methodologies (AQM)
Quantification methodologies for emissions, production and other reported data are prescribed for facilities that are subject to the Technology Innovation and Emissions Reduction Regulation and the Specified Gas Reporting Regulation.
Note that the finalized AQM (version 2.0) only includes chapter 15 as it is the only chapter that is finalized. The remaining chapters are included in the draft AQM provided in the section below.
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. The following form may be completed and submitted to the director at [email protected].
- Deviation Request Form (XLSX, 30 KB)
Draft AQM for Comment Period
A draft AQM is posted for a 30-day stakeholder comment period and includes the following chapters and appendices:
- Chapter 1 Stationary Fuel Combustion
- Chapter 4 Venting
- Chapter 5 On-Site Transportation
- Chapter 8 Industrial Processes
- Chapter 12 Imports
- Chapter 13 Production
- Chapter 14 Carbon Dioxide Emissions from Combustion of Biomass
- Chapter 16 Cogeneration Benchmark Calculations
- Chapter 17 Measurements, Sampling, Analysis and Data Management
- Appendix A References
- Appendix B Fuel Properties
- Appendix C General Calculation Instructions
- Appendix D Conversion Factors
- Appendix E Additional Information for the Alberta Gas Processing Index
See the following documents:
- Draft Alberta Greenhouse Gas Quantification Methodologies (PDF, 3.1 MB)
- Draft Alberta Greenhouse Gas Quantification Methodologies (redlined version) (PDF, 1.8 MB)
Refer to the above section for the finalized Alberta Greenhouse Gas Quantification Methodologies (Version 2.0).
Note that the finalized AQM (version 2.0) only includes chapter 15 as it is the only chapter that is currently finalized.
Submit your questions and comments using the template form below to [email protected] by the closing date of December 2, 2020.
- Stakeholder Comments Table (DOCX, 227 KB)
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 a large emitter or opt-in facility.
The following form should be used for this purpose:
- TIER Notification Form (XLSM, 346 KB)
The form may also be voluntarily used to notify of a change in the certifying official or reporter.
Compliance Cost Containment Program
If TIER regulation compliance costs exceed 3% of sales or 10% of profit at a facility, the owner of that facility may be eligible to receive relief under the Compliance Cost Containment Program. Additional information is available in the Standard for Developing Benchmarks.
- Standard for Developing Benchmarks
- Standard for Validation, Verification and Audit
- Compliance Cost Compliance Containment Application (XLSX, 180 KB)
Stakeholder presentations and other background information
- TIER Regulation Fact Sheet (PDF, 223 KB)
- TIER Opt-in Fact Sheet (PDF, 255 KB)
- Federal Fuel Charge Exemption Application TIER Fact Sheet (PDF, 210 KB)
Other reference materials:
- TIER - Conventional Oil and Gas Webinar - October 2020 - (PDF, 870 KB)
- TIER Amendments - Stakeholder Information Webinar - August 2020 (PDF, 603 KB)
- TIER Webinar - November 2019 (PDF, 603 KB)
- TIER Conventional Oil and Gas Session (PDF, 1.0 MB)
- Guidance for Creating Boundary Files (PDF, 2.4 MB)
- TIER Cost Estimator Tool (XLSX, 565 KB)
Also see the TIER Conventional Oil and Gas webpage for additional information specific to conventional oil and gas aggregate facilities.
See the Alberta Emission Offset System webpage for additional information specific to generation of Alberta Emission Offsets.
Connect with Alberta Environment and Parks about the TIER regulation:
Email: [email protected]
Subscribe to TIER mailing list
This automatic email system distributes information pertaining 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.
This information is collected so we may provide you with updates.
The email address you provide to Alberta Environment and Parks (AEP) is collected under the authorization of Section 8 (1) (2) of the Government Organization Act, and is being managed in accordance with Section 33 (c) of the Alberta Freedom of Information and Protection of Privacy Act.
Submitting this information is strictly voluntary and by providing your email address you are giving AEP your permission to use your email address to subscribe to updates on AEP Technology Innovation and Emissions Reduction System Mailing List. Your email address will be shared in confidence with direct line Manager, Director and System Administrator. Your personal information will not be used or disclosed for any other purpose without your consent by AEP.
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.