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The BCER is undertaking a comprehensive review of its regulatory framework to incorporate the manufacturing, associated on-site storage and pipeline transportation of hydrogen, ammonia and methanol.

Background

In 2022, the Energy Statutes Amendment Act granted the British Columbia Energy Regulator (BCER) oversight over the manufacturing, associated on-site storage and pipeline transportation of hydrogen, ammonia and methanol in the province.

Objective

As a result of our expanded mandate, we are undertaking the process of comprehensively reviewing and updating our regulatory framework to encompass these new activities. This undertaking is guided by our mandate and mission statement of “ensuring energy resource activities in the province are undertaken in a manner that protects public safety and the environment, supports reconciliation with Indigenous peoples, conserves energy resources and fosters a sound economy and social well-being.”

Process

The process comprises four primary steps: (1) reviewing the existing regulations for potential changes, (2) policy development of proposed regulatory changes, (3) deciding whether to move forward on regulatory change and drafting of regulations and (4) implementing the regulations. Extensive engagement will be undertaken throughout the process.


ERAA Discussion Paper timeline image for web

Scope

The review will consider all applicable regulations under the Energy Resource Activities Act (ERAA) - and may also result in changes to associated regulatory materials, such as manuals and guidance documents.

This review will not be considering those aspects of these energy resources' value chains that fall outside the regulatory purview of the BCER, such as distribution, end-use, transportation of dangerous goods as well as a variety of economic programs and enabling processes to support low-carbon transition.

Regulatory pyramid

Progress to Date

In the fall of 2023 we undertook our initial engagement, which involved gathering input based on a discussion paper entitled A New ERAA - Considerations for Integrating Hydrogen, Ammonia and Methanol into Energy Resource Regulation in British Columbia. The discussion paper highlighted potential areas of regulatory change and key considerations for integrating these energy resource activities into the BCER’s regulatory framework.

The initial engagement consisted of publicly posting the discussion paper on the BCER’s website, email distribution through the BCER’s external newsletter, email notifications, social media posts and hosting virtual engagement sessions targeting First Nations, industry, municipal governments, and members of the public.

We summarized the input we received in Summary of Input Received on Discussion Paper A New ERAA: Considerations for Integrating Hydrogen, Ammonia and Methanol into Energy Resource Regulation in British Columbia.

Based on the feedback from our initial engagement activities, we have formulated proposed regulatory policies for pipelines and manufacturing facilities for hydrogen, ammonia and methanol.

Your feedback is requested on these proposed policies by June 30, 2024.

Questions, comments and written submissions can be directed to regulatoryaffairs@bc-er.ca.

Based on the feedback from ongoing engagement activities, we have refined the originally proposed regulatory policies for facilities manufacturing hydrogen. View the latest proposed policies here (pdf).

  • The original regulatory proposals for pipelines and facilities manufacturing ammonia and methanol are consistent with those initially proposed.

Your feedback is requested on these proposed policies by Dec. 19, 2024.

Questions, comments and written submissions can be directed to regulatoryaffairs@bc-er.ca.

Next Phase of Engagement

Spring - Summer 2025

Areas for future regulatory oversight might include:

  • Financial Assurance
  • Liability Management
  • Remediation and Reclamation Obligations
  • Cost Recovery

Stay tuned for announcements when engagement starts


If you have comments or questions, please email: RegulatoryAffairs@bc-er.ca