Tag: BC

In First Budget, BC NDP Increase Carbon Tax but Abandons Revenue Neutrality

In July 2017, the BC New Democratic Party (NDP) was sworn into office and subsequently released its first provincial budget. The Budget 2017 Update (2017/18 – 2019/20) addressed a number of policy issues including tax measures and new spending on social initiatives. Although the NDP is still in the process of articulating its climate change policy, the budget did announce changes to the BC carbon tax. In particular, the budget provides for the following:

  • As of April 1, 2018, an annual increase in the carbon tax of $5 per tonne of carbon dioxide equivalent (CO2e) until it reaches $50 on April 1, 2021 (the federal government has set a pan-Canadian target carbon price of $50 by 2022). BC’s carbon tax is currently set at $30 per tonne of CO2
  • Effective as of September 11, 2017, Part 2 of the Carbon Tax Act has been repealed. This means that the requirement for the BC Ministry of Finance to prepare an annual Carbon Tax Report and Plan will no longer apply. Further, the Carbon Tax Act will no longer require that revenue measures be introduced to offset carbon tax revenues, meaning that the government will be allowed to spend carbon tax revenues on emission reduction measures and other green initiatives, rather than having to return carbon tax revenues to taxpayers.

With the repeal of Part 2 of the Carbon Tax Act, an important reporting and transparency mechanism has been removed. It is uncertain at this time whether the BC NDP will implement a similar reporting mechanism to ensure accountability for the use of carbon tax revenues by the provincial government. It is anticipated that the BC NDP will provide further details on its climate change policy priorities in the coming weeks.

BC Climate Leadership Team Issues 32 Recommendations to BC Government

In May 2015, BC Premier Christy Clark appointed a Climate Leadership Team (consisting of leaders from B.C. businesses, communities, First Nations, academia and the environmental sector) to provide advice and recommendations to government for its new Climate Leadership Plan.
Following stakeholder consultations, the Climate Leadership Team prepared a report that was released by the BC government on November 27, 2015, in advance of the COP 21 meeting in Paris. The team’s report consists of 32 recommendations addressing a number of areas including GHG reduction targets, carbon tax design, transportation, buildings, communities, offsets, and First Nations.

Some of the key recommendations from the Climate Leadership Team include:

  • setting a legislated target for 2030 of 40% GHG reduction from 2007 levels, and reaffirming B.C.’s commitment to the 2050 target of an 80% GHG reduction from 2007 levels;
  • establishing the following sector-specific GHG reduction goals (below 2015) for 2030: (a) 30 per cent for the transportation sector totalling 6.3 MT of CO2; (b) 30 per cent for the industrial sector totalling 8.4 MT of CO2; and (c) 50 per cent for the built environment totalling 3.4 MT of CO2;
  • lowering the provincial sales tax (PST) from 7 per cent to 6 per cent, supported by incremental carbon tax;
  • increasing the carbon tax by $10 per year commencing in July 2018 while (a) maintaining the current tax reductions achieved through the existing carbon tax that are broad based, provide support to vulnerable populations, or promote GHG reductions; (b) adjust the current low income and rural and northern tax credits; and (c) establish targeted and transparent mechanisms for emission-intensive, trade-exposed sectors until such time that carbon pricing and regulatory policy equivalency with other jurisdictions is achieved;
  • expanding the coverage of the current carbon tax to apply to all GHG emission sources in BC after five years, starting with measurable GHG emissions covered by the current reporting regulation;
  • using incremental revenues generated from the increase in the carbon tax to (a) eliminate PST on all electricity rates; (b) establish mechanisms to facilitate investments in technology and innovation that reduce GHG emissions; and (c) establish mechanisms to provide local governments with funding for projects that will result in demonstrable GHG emission reductions;
  • amending the Clean Energy Act to increase the target for clean energy on the integrated grid from 93 per cent to 100 per cent by 2025;
  • establishing a strategy and funding to phase out diesel generation in remote communities and replace it with low-GHG electricity service by 2025;
  • developing a low-carbon transportation strategy to enable the transportation sector to emit 30 per cent fewer GHG emissions by 2030 which include Zero Emission Vehicle targets, increases to the scope and coverage of the Low Carbon Fuel Standard, and the establishment of a revenue neutral PST for all vehicles based on grams of Co2 per kilometre;
  • undertaking a review and update of the Climate Action Charter to align provincial and community goals;
  • creating a waste-to-resource strategy that reduces GHG emissions associated with food waste, organic waste, and landfills;
  • working with First Nation communities to transition communities that are currently dependent on diesel generation to low-GHG electricity service; and
  • undertaking a review of the current offset policy in BC.

The BC government is now reviewing the Climate Leadership Team’s recommendations. It will commence the public consultation process in January 2016, with a view to releasing a final Climate Leadership Plan in March 2016.

BC and Washington State sign Cross-Border Climate Action Plans

The province of British Columbia (BC) and the state of Washington have signed two climate action plans to strengthen cross-border efforts to reduce carbon emissions while advancing the low-carbon economy.

The province of British Columbia (BC) and the state of Washington have signed two climate action plans to strengthen cross-border efforts to reduce carbon emissions while advancing the low-carbon economy.

On February 2, 2011, BC Minister of State for Climate Action John Yap and Washington Department of Ecology Director Ted Sturdevant signed plans on limiting carbon emissions from government operations and promoting awareness of the impacts of sea level rise on coastal areas.

Under the climate action plans, entitled “Joint Action Plan on Carbon Neutral Government” and “Joint Action Plan on Awareness and Outreach for Coastal Impacts of Climate Change”, BC and Washington will:

  • demonstrate how to make government operations as carbon-neutral as possible, sharing information and drawing on BC’s success in achieving a carbon-neutral public sector.
  • further strengthen engagement with British Columbians and Washingtonians about how sea level rise threatens critical shore areas and communities.
  • BC and Washington State have been working together on climate issues since signing a Memorandum of Understanding on Climate Action in 2007. These new action plans build on existing climate-related partnerships between BC and Washington, including:
  • Pacific Coast Collaborative – representing joint efforts by BC, Washington, Oregon, California, and Alaska on energy, transportation, climate change, and ocean issues.
  • Washington-British Columbia Memorandum of Understanding on Coastal Climate Change Adaptation – holding joint science workshops, exchanging information on sea-level rise projections and mapping, sharing information on Green Shores programs, and Washington and B.C. “king tide” photo initiatives.
  • Salish Sea Ecosystem/Puget Sound-Georgia Basin Ecosystem Research Conference – the largest, most comprehensive scientific research and policy conference that focuses on issues impacting the region known as the Salish Sea. BC and Washington take turns hosting the biennial conference.

In addition, BC and Washington state are active participants in the Western Climate Initiative, a cooperative effort to reduce greenhouse gas emissions in seven U.S. states and four Canadian provinces.

The action plans can be viewed online.

Canadian Provinces Forge Ahead on Cap-and-Trade System

Canada’s three largest provinces – Québec, Ontario and BC – are moving forward with a cap-and-trade system designed under the Western Climate Initiative (WCI) to reduce greenhouse gas (GHG) emissions.

Canada’s three largest provinces – Québec, Ontario and BC – are moving forward with a cap-and-trade system designed under the Western Climate Initiative (WCI) to reduce greenhouse gas (GHG) emissions. This decision comes after plans for a cap-and-trade system have been abandoned by the U.S. Senate.

The cap-and-trade system, scheduled to begin trading in January 2012, would cap emissions on large industrial facilities in Ontario, Québec and BC, as well as in California and New Mexico. The five jurisdictions forging ahead are part of the WCI (other group members, such as Utah and Arizona, have not committed to the system). On Tuesday July 27, 2010, the WCI released its comprehensive design strategy (for more information on the design document, please see our overview: link

The WCI’s commitment is to reduce industrial GHG emissions at the regional level from 15% below 2005 levels by 2020.

Each jurisdiction continues to weigh the pros and cons of moving ahead with the WCI system. In BC, any industrial operation emitting more than 25,000 tonnes of greenhouse gas per year will be subject to the system. This threshold will capture 40 operations in the province. While the regulatory framework for a cap-and-trade program has been put in place (under the Greenhouse Gas Reduction (Cap and Trade) Act and its associated Reporting Regulation), the details of the program as they will apply in BC have not yet been settled.

BC’s Clean Energy Act Passed into Law

BC’s Clean Energy Act (the Act) received royal assent on June 3, 2010

BC’s Clean Energy Act (the Act) received royal assent on June 3, 2010. As previously reported in our Green News, the Act provides a foundation for the province to meet its stated goals of electricity self-sufficiency by 2016, job creation and reduced greenhouse gas emissions. The details of the various initiatives, including a feed-in tariff program, under the Act will be developed through regulations and it is anticipated that these regulations could be ready by as early as fall 2010.

B.C.’s GHG Reporting Regulation has come into force on January 1, 2010

The Reporting Regulation (the Regulation) is a new regulation under the Greenhouse Gas Reduction (Cap and Trade) Act that has come into force on January 1, 2010. The Regulation requires facilities in British Columbia that emit over 10,000 tonnes of greenhouse gases (GHGs) annually to report their emissions.

The Regulation has been designed to allow for a single reporting window with Environment Canada, which aims to create administrative simplicity for industry stakeholders. The Regulation sets out requirements for facilities with GHG emissions from a number of activities within B.C. to report GHG emissions to the Ministry of Environment (MOE).

One of the key objectives of the Regulation is to facilitate an accurate and transparent reporting mechanism, which will support properly functioning cap-and-trade system. As such, the Regulation specifies among other criteria:

· GHGs subject to reporting;

· level of emissions requiring reporting;

· facilities required to report;

· quantification methods to be used in reporting;

· requirements and procedures for annual reporting;

· verification mechanisms; and

· compliance obligations.

Below is an overview of the reporting specifics:

· all six main GHGs included;

· 10,000 tonne carbon dioxide equivalent (CO2e) reporting threshold;

· 25,000 tonne CO2e verification threshold;

· upstream oil and gas; (ii) natural gas transmission and distribution; (iii) electricity transmission and distribution; and, (iv) oil pipeline transportation emissions are aggregated into “linear facilities” to determine whether the 10,000 tonne reporting and 25,000 verification thresholds are exceeded;

· carbon dioxide from wood biomass, or the wood biomass component of mixed fuels, is not included in the determination of thresholds;

· first requirements (data collection and management) for reporting operations start on January 1, 2010;

· not applicable to public sector organizations, except for BC Hydro and BC Transmission Corporation electricity generation or electricity transmission;

· not applicable to emissions of landfill gas as defined under the Landfill Gas Management Regulation;

· registration to occur by April 1, 2010;

· annual emissions reports, beginning with the 2010 calendar year, required by March 31 of the following year;

· facilities with emissions greater than 20,000 tonnes of CO2e in any year between 2006 and 2009 must report these emissions along with the 2010 emissions report submitted in 2011;

· a facility may calculate emissions using alternative methodologies for the lower of 3% of the facilities total emissions, or 20,000 tonnes;

· for the 2010 calendar year, a facility may measure a specific parameter using alternative methods inconsistent with those prescribed in the regulation (approval is required for this after March 31, 2010);

· MOE may publish emissions data from major source categories;

· a facility may request that certain data remain confidential; and

· Western Climate Initiative quantification methods are required to be used (where these do not exist, required methods are specified by the MOE).

Below is an overview of verification specifics:

· verification to a reasonable level of assurance;

· 5% materiality threshold applies;

· verification statements to be submitted by September 1 of the following year for 2010 and 2011 reports (thereafter the verification deadline is the same as the reporting deadline, April 1);

· verification to be completed by an independent third party verification body, accredited by the Standards Council of Canada or the American National Standards Institute in accordance with ISO 14065;

· for verifications completed before Dec. 31, 2012, verifiers can be accredited by the California Air Resources Board; and

· conflict of interest requirements for verifiers apply.

Activities covered include:

· General Stationary Combustion

· Mobile Equipment Fuel Combustion (except for linear facilities; generally on-site, off-road equipment)

· Aluminium or Alumina Production

· Ammonia Production

· Carbon Dioxide Transportation (linear facility)

· Cement Production

· Coal Mining from Underground Mines

· Coal Storage at Facilities that Combust Coal

· Copper or Nickel Smelting or Refining

· Electricity Generation

· Electricity Transmission (linear facility)

· Electronics Manufacturing 

· Ferroalloy Production

· Glass Manufacturing

· Hydrogen Production

· Industrial Wastewater Processing

· Lead Production

· Lime Manufacturing

· Magnesium Production

· Natural Gas Transmission, Natural Gas Distribution or Natural Gas Storage (linear facility)

· Nitric Acid Manufacturing

· Oil and Gas Extraction and Processing Activities (linear facility)

· Oil Transmission (linear facility)

· Petrochemical Production

· Petroleum Refining

· Phosphoric Acid Production

· Pulp and Paper Production

· Refinery Fuel Gas Combustion

· Zinc Production