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Leveling the playing field

Province updates emissions regulation

Jul 29, 2020 | 3:17 PM

An expansion of eligibility in the Technology Innovation and Emissions Reduction (TIER) regulation will see fewer Alberta industries will pay the federal carbon.

The provincial government says updates made to TIER will help save industries money and stay competitive.

A release from the government says dozens of industries like potato processing facilities and wood product facilities will now be eligible for exemption from the costly federal carbon tax because they can be regulated under TIER.

“We’re refining the TIER regulation based on significant stakeholder feedback, which will make the regulatory process more cost-effective and put our industries on a level playing field with their peers without affecting emissions reductions,” says Jason Nixon, minister of environment and parks, in the release. “These updates will make more companies competitive in the long term and cut costs so that industries can reallocate savings into good-paying jobs for hardworking Albertans. This is another step in improving Alberta’s ability to compete in a global economy, building the right conditions for our province’s future prosperity.”

The facilities that are now eligible for TIER will be able to achieve the same emissions they would under the federal system, but with the added benefit of cost savings. The updates build on the success of the TIER system, which is already saving regulated oil and gas facilities 90 per cent in costs in 2020 – or about $450 million – compared to what they would have paid under the federal carbon tax. Large industrial facilities are also saving more than $300 million annually under TIER compared to the previous provincial emissions regulations.

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TIER applies to large industrial emitters and opted-in facilities like small oil and gas operations, and will now include a wider range of sectors. It does not have a direct effect on Alberta households or the federal government’s decisions about the carbon price on families. The federal carbon tax continues to apply to fuel consumed outside of TIER facilities, pending the outcome of Alberta’s court challenge.

Alberta successfully challenged the constitutionality of the federal government’s Greenhouse Gas Pollution Pricing Act in the Alberta Court of Appeal last December. The act remains in place, pending the completion of the appeal to the Supreme Court of Canada this fall.

Quick facts

• The updated TIER opt-in eligibility includes facilities under the 100,000-tonne threshold and those that belong to highly emissions-intensive sectors.
• Other updates to TIER include red tape reduction and administrative relief for conventional oil and gas facilities in recognition of challenges and delays caused by the COVID-19 pandemic.
• It is estimated that eight different industrial sectors will benefit from updates to TIER. About 100 small industrial facilities and about 20 medium-sized industries will become eligible for relief from the federal carbon tax.
• TIER helps industrial facilities, which account for more than 65 per cent of Alberta’s total emissions, find innovative ways to reduce emissions and invest in clean technology to save money and stay competitive.
• The TIER system is a unique solution that allows the province to reduce emissions and cut costs without interference from Ottawa.