O.C. 352/2018

A.R. 199/2018

November 20, 2018


            The Lieutenant Governor in Council makes the Carbon Competitiveness Incentive Amendment Regulation set out in the attached Appendix.

For Information only

Recommended by:          Minister of Environment and Parks

Authority:                             Climate Change and Emissions Management Act
                                                (sections 5 and 60)


 

APPENDIX

Climate Change and Emissions Management Act

CARBON COMPETITIVENESS INCENTIVE
AMENDMENT REGULATION

1   The Carbon Competitiveness Incentive Regulation (AR 255/2017) is amended by this Regulation.

 

2   Section 7 is amended

                                 (a)    by adding the following before subsection (1):

(0.1)  In this section,

                                          (a)    “Class III well” means a well that is classified as a Class III well under Directive 051: Injection and Disposal Wells – Well Classifications, Completions, Logging and Testing Requirements, published by the Alberta Energy Regulator, as amended from time to time;

                                          (b)    “raw gas” means raw gas as defined in the Oil and Gas Conservation Act.

                                 (b)    in subsection (2)

                                           (i)    in the formula by adding “ECF ‑” after “DE ‑”;

                                          (ii)    by adding the following after the description of variable “DE”:

                                               ECF    is the amount of specified gases released from the combustion of clear fuel, as defined in the Climate Leadership Act, for the reporting period, expressed in tonnes on a CO2e basis;

                                         (iii)    by repealing the description of variable “ICO2” and substituting the following:

                                              ICO2    is the amount of carbon dioxide expressed in tonnes imported by the facility during the reporting period from a different facility to which this Regulation applies, excluding any carbon dioxide removed from raw gas and disposed of, as an acid gas stream, to an underground formation through a Class III well in a scheme approved under section 39(1)(d) of the Oil and Gas Conservation Act;

                                         (iv)    by repealing the description of variable “ECO2” and substituting the following:

                                             ECO2      is the amount of carbon dioxide expressed in tonnes exported from the facility during the reporting period, excluding any carbon dioxide removed from raw gas and disposed of, as an acid gas stream, to an underground formation through a Class III well in a scheme approved under section 39(1)(d) of the Oil and Gas Conservation Act;

 

3   Section 35 is amended

                                 (a)    by repealing subsection (1) and substituting the following:

Transitional

35(1)  Notwithstanding section 4(3)(c), in the case of an application under section 4(2) for a facility to be designated as an opted‑in facility for 2019, the application must be received by the director on or before December 31, 2018.

                                 (b)    by repealing subsection (4.1) and substituting the following:

(4.1)  Notwithstanding section 34.2(2)(f), in the case of an application under section 34.2(1) for a cost containment designation to be issued in respect of a facility for 2018 or 2019, the application must be received by the Minister on or before December 31, 2018.

 

4   Schedule 2 is amended

                                 (a)    in section 1(1)

                                           (i)    by adding the following after clause (b):

                                               (b.1)    “ethylene glycol” means

                                                             (i)    monoethylene glycol,

                                                            (ii)    diethylene glycol,

                                                           (iii)    triethylene glycol,

                                                          (iv)    an ethylene glycol, other than polyethylene glycol, that is heavier than triethylene glycol, or

                                                           (v)    a combination of 2 or more glycols, other than polyethylene glycol, referred to in subclauses (i) to (iv);

                                          (ii)    by adding the following after clause (c):

                                             (c.01)    “high value chemicals” means all ethylene and associated by-products, other than hydrogen, that result from the ethylene production process, including, without limitation, propylene, butadiene and benzene;

                                         (iii)    in clause (c.1) by striking out “means hydrogen exported” and substituting “means, except in clause (c.01), hydrogen that is exported”;

                                 (b)    by repealing the Table and substituting the following:

 


Table
Established Benchmarks for Products

 

Product

Established benchmark for 2018 (tonnes of CO2e per benchmark unit)

Established benchmark for 2019 (tonnes of CO2e per benchmark unit)

Established benchmark for 2020 (tonnes of CO2e per benchmark unit)

Established benchmark for 2021 (tonnes of CO2e per benchmark unit)

Established benchmark for 2022 (tonnes of CO2e per benchmark unit)

Established benchmark for 2023 and subsequent years (tonnes of CO2e per  benchmark unit) is determined as follows:

Benchmark unit

Ammonia

1.942

1.942

1.935

1.928

1.921

*BE = **BEY-1 - ***0.007

Tonne

Ammonium nitrate

0.3260

0.3260

0.3250

0.3240

0.3230

BE = BEY-1 - 0.0010

Tonne

Bituminous coal

0.07053

0.07053

0.06982

0.06911

0.06840

BE = BEY-1 - 0.00071

Tonne

Cement

0.7853

0.7853

0.7823

0.7793

0.7763

BE = BEY-1 - 0.0030

Tonne

Electricity

0.3700

0.3700

0.3663

0.3626

0.3589

BE = BEY-1 - 0.0037

Megawatt hour

Ethylene glycol

0.4946

0.4946

0.4921

0.4896

0.4871

BE = BE Y-1 - 0.0025

Tonne

Hardwood kraft pulp

0.2032

0.2032

0.2012

0.1992

0.1972

BE = BEY-1 - 0.0020

Air dry metric tonne

High value chemicals

0.4850

0.4850

0.4801

0.4752

0.4703

BE = BE Y-1 - 0.0049

Tonne

Hydrogen

9.068

9.068

8.977

8.886

8.795

BE = BEY-1 - 0.091

Tonne

Industrial heat

0.06299

0.06299

0.06236

0.06173

0.06110

BE = BEY-1 - 0.00063

Gigajoule

Oil sands in situ bitumen

0.3504

0.3504

0.3469

0.3434

0.3399

BE = BEY-1 - 0.0035

m3 of bitumen

Oil sands mining
bitumen

0.1954

0.1954

0.1934

0.1914

0.1894

BE = BEY-1 - 0.0020

m3 of bitumen

Refining

3.831

3.831

3.793

3.755

3.717

BE = BEY-1 - 0.038

Alberta complexity weighted barrel
(in thousands)

Softwood kraft pulp

0.3015

0.3015

0.2985

0.2955

0.2925

BE = BEY-1 - 0.0030

Air dry metric tonne

Note:  The values in the columns for 2020, 2021 and 2022 reflect the application of an annual 1% tightening rate.

  *BE                                       is the established benchmark for the year.

 **BEY-1                   is the established benchmark for the previous year.

***                                          is the tightening rate.