Provincial and territorial oil and gas methane regulation, exemptions and interactions.
| Direct regulation | Large emitter treatment | ||||
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| Policies | Characteristics | Exemptions and gaps | Characteristics | Exemptions and gaps | |
| BC | Provincial carbon tax, provincial upstream methane regulations, provincial LES |
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| AB | Federal fuel charge, provincial upstream methane regulations, provincial LES |
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| SK | Federal fuel charge, provincial LES with federal top-up (transition to a full provincial system in 2023), provincial methane regulations |
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| ON | Federal fuel charge, federal methane regulations, provincial LES |
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| QC | Provincial cap and trade system, federal methane regulations | Federal regulation; see ON |
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| NB | Provincial fuel charge and LES, federal methane regulations |
| Facilities with annual emissions below thresholds; methane from incomplete combustion indirectly priced through fuel purchases | ||
| NS | Provincial cap and trade system (transitioning to OBPS), federal methane regulations | Federal regulations; see ON |
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| PEI | Provincial fuel charge, federal LES and methane regulations | Federal regulations; see ON |
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| NL | Provincial fuel charge and LES, federal methane regulations |
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| NT | Territorial carbon tax, federal methane regulations | Federal regulations; see ON | Carbon tax with rebate. |
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| MB, YK, NU | Federal fuel charge, LES, and methane regulations | Federal regulations; see ON |
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| Direct regulation | Large emitter treatment | ||||
|---|---|---|---|---|---|
| Policies | Characteristics | Exemptions and gaps | Characteristics | Exemptions and gaps | |
| BC | Provincial carbon tax, provincial upstream methane regulations, provincial LES | General oil and gas methane reduction target rather than activity or source-specific Requirement to not vent or flare with some exceptions Flaring volume limits and component-specific venting limits Surface casing vent flow (SCVF) limit of 100 m3 / day (2.8 kg/h) Leak defined as release equal or greater than 500 ppm or an unintentional release detected by a gas imaging camera Annual or triannual LDAR surveys depending on facility type Facility: Repair within 30 days or next turn-around Well: Repair within 30 days | No minimum flare efficiency requirement Flaring limits are a recommendation, not a requirement No specific venting limits other than SCVF SCVF tests part of routine maintenance, not an LDAR program No requirement to conserve gas over flaring Fugitive emissions repair not required below threshold LDAR does not apply to all wells Does not apply to liquefied natural gas facilities Allows for extension of repair timeline LDAR frequency likely insufficient | Performance standard for facilities with annual emissions above 10,000 t CC>2e Includes all sources of methane in facility total GHG quantification Specific performance standard for liquefied natural gas facilities | Priced emissions are only from incomplete combustion Direct rebates of incremental carbon tax above $30 CAD/tonne for emissions intensity below standard. Eligible facility emissions include venting, flaring and fugitives LNG: requirement to not vent or flare with some exceptions; no LDAR requirement |
| AB | Federal fuel charge, provincial upstream methane regulations, provincial LES | Venting, flaring and fugitive emissions reduction requirements Some flaring volume limits Component-specific venting limits Facility vent gas limit of 15,000m 3 per month Annual or triannual LDAR surveys depending on facility type Facility: Repair within 30 days or next turn-around if release greater than 10,000 ppm Well: Repair within 90 days if release greater than 300m 3 per day (8.5 kg/h) | Exempts oil sands mining, oil sands processing and natural gas distribution pipelines No LDAR or SCVF test frequency requirement for wells No minimum flare efficiency requirement Venting limit excludes certain activities and facilities below a threshold Requirement to conserve gas over flaring threshold-based Excludes facilities that vent all received and produced gas from an LDAR program Fugitive emissions repair not required below threshold Allows for extension of repair timeline Only repair at well abandonment if SCVF below 300m 3 / day (8.5 kg/h) | Output-based pricing for facilities with annual emissions above 100,000 t CO2e Opt-in above 10,000 t C02e. Proposed to change to 2,000 t CO2e in 2023 Includes all sources of methane in facility total GHG quantification Venting reductions eligible for offset credits Allows for aggregation and opt-in of conventional oil and gas (COG) facilities with emissions below opt-in threshold | Facilities with annual emissions below thresholds; methane emissions from incomplete combustion indirectly priced through fuel charge Emissions from venting, fugitive and flaring are not included in total regulated emissions for COG facilities. Proposed to change in 2023 Venting emissions from COG unpriced except through offset market |
| SK | Federal fuel charge, provincial LES with federal top-up (transition to a full provincial system in 2023), provincial methane regulations | Firm-level emissions-intensity limits for venting and flaring from oil facilities Venting limit for oil wells and facilities, above which flaring required Venting from a gas well or facility in emergencies only Semi-annual LDAR surveys for gas facilities producing or receiving more than 60,000m 3 annually Leak defined as release equal or greater than 500 ppm Facility: Repair within 30 days or next turn-around | No LDAR requirements for wells or oil facilities Combined flaring and venting from a well allowable up to 900 m3/day (25.5 kg/h), with exceptions Fugitive emissions repair not required below threshold No component-specific venting requirements Does not cover surface-casing vent flow No minimum flare efficiency requirement Allows for extension of repair timeline | Output-based pricing for facilities with annual emissions above 25,000 t CO2e. Free allocations equal to facility emissions Voluntary participation for facilities above 10,000 t CO2e Includes all sources of methane in facility total GHG quantification Only includes stationary fuel combustion for upstream oil and gas (including gas plants). Proposal to extend to include flaring in 2023 Allows for aggregation of oil and gas facilities with emissions below25,000 t CO2e | Priced emissions are only from incomplete combustion No minimum performance standard; proposal to change in 2023 Excludes flaring and on-site transportation emissions; proposal to include both in 2023 |
| ON | Federal fuel charge, federal methane regulations, provincial LES | Venting and fugitive emissions reduction requirements Site vent limit of 15,000 m3 per year (1.03 kg per hour) Flaring efficiency requirement Triannual LDAR surveys Leak defined as release equal or greater than 500 ppmv Repair within 45 days or next turn-around Repair within 730 days if an offshore facility | Venting limit excludes certain activities and facilities below a threshold No requirement to conserve gas over flaring (proposed to change) Does not cover surface-casing vent flow (proposed to change) Fugitive emissions repair not required below threshold (proposed to change) Allows for extension of repair timeline | Output-based pricing for facilities with annual emissions above 50,000 t CO2e Voluntary participation for facilities above 10,000 t CO2e Includes all sources of methane in facility total GHG quantification Priced emissions are all facility emissions | Facilities with annual emissions below 50,000 t CO2e; methane emissions from incomplete combustion indirectly priced through fuel charge |
| QC | Provincial cap and trade system, federal methane regulations | Federal regulation; see ON | Cap and trade for industrial facilities with annual emissions above 25,000 t CO2e and fuel distributors. Free permit allocation to industrial facilities Voluntary participation for facilities above 10.0 t CO2e Includes all sources of methane in facility total GHG quantification Priced emissions are all facility emissions | Facilities with annual emissions below 25,000 t CO2e; methane from incomplete combustion indirectly priced through fuel purchases Fuel distributors with annual distribution below 200 litres | |
| NB | Provincial fuel charge and LES, federal methane regulations | Output-based pricing for facilities with annual emissions above 50,000 t CO2e Voluntary participation for facilities above 10,000 t CO2e Includes all sources of methane in facility total GHG quantification Priced emissions are all facility emissions | Facilities with annual emissions below thresholds; methane from incomplete combustion indirectly priced through fuel purchases | ||
| NS | Provincial cap and trade system (transitioning to OBPS), federal methane regulations | Federal regulations; see ON | Cap and trade for industrial facilities with annual emissions above 50,000 t CO 2e and fuel distributors. Free permit allocation to fuel distributors and industrial facilities No voluntary participation Includes all sources of methane in facility total GHG quantification Priced emissions are all facility emissions Offset system enacted but no protocols | Facilities with annual emissions below 50,000 t CO2e; methane from incomplete combustion indirectly priced through fuel purchases Fuel distributors with annual distribution below 200 litres GHGs from offshore oil and gas production Natural gas distributors with delivered combustion emissions below 10,000 t CO2e/year Fugitive emissions from natural gas transmission, storage, and transportation | |
| PEI | Provincial fuel charge, federal LES and methane regulations | Federal regulations; see ON | Output-based pricing for facilities with annual emissions above 50,000 t CO2e Voluntary participation for facilities above 10,000 t CO2e Only covers methane emissions from incomplete combustion | Facilities with annual emissions below 50,000 t CO2e; methane from incomplete combustion indirectly priced through fuel charge Priced emissions are only from incomplete combustion | |
| NL | Provincial fuel charge and LES, federal methane regulations | Output-based pricing for facilities with annual emissions above 50,000 t CO2e Output-based pricing for facilities with annual emissions above 25,000 t CO2e Voluntary participation for facilities above 15,000 t CO2e Only covers methane emissions from incomplete combustion | Facilities below thresholds; methane from incomplete combustion indirectly priced through fuel charge Priced emissions are only from incomplete combustion Explicitly excludes venting and fugitive emissions from offshore petroleum and natural gas production and natural gas processing in facility GHG quantification | ||
| NT | Territorial carbon tax, federal methane regulations | Federal regulations; see ON | Carbon tax with rebate. | Priced emissions are only from incomplete combustion Direct rebates of 72 per cent of carbon taxes paid, proposed to change in 2023 to rebates based on facility performance standard Grant of up to 12 per cent of carbon tax paid for GHG reductions of at least 5 per cent relative to business-as-usual, proposed to end in 2023 | |
| MB, YK, NU | Federal fuel charge, LES, and methane regulations | Federal regulations; see ON | Output-based pricing for facilities with annual emissions above 50,000 t CO2e Voluntary participation for facilities above 10,000 t CO2e Only covers methane emissions from incomplete combustion | Facilities with annual emissions below 50,000 t CO2e; methane from incomplete combustion indirectly priced through fuel charge Priced emissions are only from incomplete combustion | |
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