On Sept. 1, 2023, hydrogen, ammonia, methanol and expanded powers on carbon storage reservoirs will be added to the BC Energy Regulator’s (BCER) existing mandate on oil, gas and geothermal activities.
DATE ISSUED: Aug. 31, 2023
EFFECTIVE DATE: Sept. 1, 2023
On Sept. 1, 2023, hydrogen, ammonia, methanol and expanded powers on carbon storage reservoirs will be added to the BC Energy Regulator’s (BCER) existing mandate on oil, gas and geothermal activities. This was enabled by the Energy Statutes Amendment Act passed by the B.C. Legislature on Nov. 24, 2022 and through Order in Council 464.
Some key highlights are:
- Change in Act name: Renames the Oil and Gas Activities Act (OGAA) to the Energy Resource Activities Act (ERAA or the Act). This change will better reflect the scope of BCER’s responsibilities as an energy resources regulator.
- Revised purpose for BCER: The statutory purpose of the BCER under the Act is amended to reflect the full scope of its responsibilities and to support reconciliation with Indigenous peoples and the transition to low carbon energy. The revision re-affirms the BCER’s responsibility to “regulate energy resources activities in a manner that protects public safety and the environment, supports reconciliation with Indigenous peoples and the transition to low-carbon energy, conserves energy resources and fosters a sound economy and social well being.”
- Defining “energy resource activities”: The definition of “oil and gas activity” is repealed and replaced with “energy resource activity.” The new definition highlights that, in addition to having jurisdiction over the exploration and production of natural gas, the BCER is responsible for the oversight of the “construction or operation of a facility for manufacturing hydrogen, ammonia or methanol from petroleum, natural gas, water or another substance.” The BCER is now also responsible for oversight of pipelines that convey an energy resource, carbon dioxide, and includes water used and produced for energy resource activities.
- Inclusion of storage reservoirs: The amendment clarifies and expands the scope of the Act to include carbon dioxide storage in reservoirs. Such storage is defined as an “energy resource activity” and includes the exploration for, or development, or use of a storage reservoir in relation to traditional oil and gas activities, new energy resource activities, or storage of carbon dioxide derived from other sources.
- Expanded liability: New provisions are introduced to ensure “principals” or “responsible persons” in relation to a permit may be held responsible for restoration and other obligations. In addition, the changes enable and streamline the sale of orphan infrastructure with potential value and provide the ability to apply the proceeds towards the restoration of other orphan sites.
Specific changes to permit holders, project proponents and other agencies
The BCER has updated ERAA terminology through its Board regulations. Most of the regulations linked to OGAA and Specified Enactments under the authority of the province were also updated.
- BCER’s regulatory framework: The BCER continues to maintain consistent compliance and enforcement tools, and engagement requirements are applied to all energy projects. The framework includes the coordination for consultation and engagement with First Nations on hydrogen, ammonia, and methanol projects.
- Jurisdictional interfaces: The BCER, British Columbia Utilities Commission and Technical Safety BC will continue to coordinate on their areas of regulatory authority for the energy sector.
- The BCER’s “Carbon Dioxide Subsurface Storage Application Guide,” currently under revision, requires proponents to include information to the BCER regarding reservoir and well suitability for geologic storage, safety, and environmental protection. To assist applicants and operators, the BCER will publish the Carbon Dioxide Subsurface Storage Summary Document which provides additional information to assist in preparing an application and project operation.
It is the responsibility of project proponents to identify all applicable laws and regulations that will govern their project. Under ERAA:
- The construction or operation of a facility for manufacturing hydrogen, ammonia or methanol requires a facility permit from the BCER.
- A permit is required for pipelines that convey an energy resource, carbon dioxide, water used for an energy resource activity, and water produced in the course of an energy resource activity.
- Carbon dioxide storage in reservoirs will require a Special Project approval under section 75.
If you have questions regarding the permitting and authorization requirements for new activities under ERAA, please contact energy.transition@bc-er.ca
Regulatory Framework Development
The BCER engages with Indigenous peoples, industry, stakeholders and the public in the development of its regulatory framework. Any information on proposed regulatory updates is provided on the BCER’s Regulatory Update webpage. Over the coming months, the BCER will be seeking input on changes to regulations for the inclusion of the manufacture, storage and distribution of hydrogen, ammonia and methanol. New or amended application guides and associated information will be published as regulations take effect.
If you have any questions regarding this Information Update, please contact:
Geoff Turner
Executive Director, Energy Transition & Inter-Governmental Relations
BC Energy Regulator
250-419-4401