The BC Energy Regulator is seeking input as it develops new provisions under the Fee, Levy and Security Regulation (FLSR). The BCER’s revenue model is built on a combination of levies charged on oil and gas production and infrastructure, as well as fees for service (e.g. fee to review an application) prescribed in the FLSR. For any activity, the permit application fee covers the work required to adjudicate the application.
Upon commencement, the Energy Resource Activities Act (ERAA) will enable the BC Energy Regulator greater jurisdiction for the regulation of hydrogen production and transportation. To accommodate an expanded mandate, new fees will be introduced for facilities involved in manufacturing hydrogen, ammonia, and methanol:
1. Application fees – structure: Define two classes (Class A and Class B) of facilities for manufacturing hydrogen, ammonia, and methanol based on the respective design capacity (i.e. the threshold for a reviewable project under the Environmental Assessment Act).
• Specify that a Class A facility for:
- Hydrogen means a facility with a production capacity of less than 100,000 tonnes per year of hydrogen.
- Ammonia means a facility with a production capacity of less than 5,000 tonnes per year of ammonia.
- Methanol means a facility with a production capacity of less than 5,000 tonnes per year of methanol.
• Specify that a Class B facility for:
- Hydrogen means a facility with a production capacity of greater than or equal 100,000 tonnes per year of hydrogen
- Ammonia means a facility with a production capacity of greater than or equal 5,000 tonnes per year of ammonia.
- Methanol means a facility with a production capacity of greater than or equal 5,000 tonnes per year of methanol.
2. Application fees – cost: Establish fees on application for a Class A or B facility for manufacturing hydrogen, ammonia, or methanol.
- Fee for Class A facility for manufacturing hydrogen, ammonia or methanol is $12,400
- Fee for Class B facility for manufacturing hydrogen, ammonia or methanol is $50,000.
3. Amendment fees: Specify that the definition (section 1 of the FLSR) and fee for major and minor amendments of a facility application will be extended to applications for a facility for manufacturing hydrogen, ammonia, or methanol.
- Fee for a major amendment to Class A or B facility permit for manufacturing hydrogen, ammonia or methanol is $ 7,000.
- Fee for a minor amendment to Class A or B facility permit for manufacturing hydrogen, ammonia or methanol is $1 000.
4. Advice and consultation fees: Specify that the fees for advice and consultation services application (section 4.1 of the FLSR) will be extended to applications for a facility for manufacturing hydrogen, ammonia or methanol that is a reviewable project within the meaning of the Environmental Assessment Act.
Feedback from this input process will be reviewed to help inform the Regulator cost recovery structure for facilities involved in the manufacture of hydrogen, ammonia, and methanol.
If you have comments or questions related to this regulation, please email us at RegulatoryAffairs@bc-er.ca. The engagement period was closed Jan. 31, 2023. Comments received after January 31 will be reviewed and assessed for future revisions.