The goals of the current regulatory review are to identify changes required to achieve the provincial target for a 75 per cent reduction in methane emissions from the oil and gas sector by 2030, make progress towards near elimination of methane emission by 2035 and achieve equivalent reductions to the proposed federal regulations, as applied to the oil and gas sector in B.C.

This review focuses on the reductions that can be achieved by regulation under the Energy Resource Activities Act and does not address reductions that may be achieved through other acts, policies or programs. As draft federal regulations have not been published, the regulatory development process will initially focus on achieving provincial goals and will consider federal regulations once they are published in the Canada Gazette, Part I.

Any new or revised provisions will build on the existing legislative and regulatory framework under the Energy Resource Activities Act for reducing methane emissions including:

• Drilling and Production Regulation,
• Oil and Gas Processing Facility Regulation,
• Pipeline Regulation,
• Liquified Natural Gas Regulation,
• Investigations Regulation, and
• Applicable guidance documents (such as the Flaring and Venting Guideline and the Fugitive Emissions Guideline).

The BCER’s objective for this review is to deliver a regulation that ensures activities are undertaken in a manner that protects public safety, safeguards the environment, supports meaningful reconciliation and advances the public interest and contributes to B.C.’s economy.

Phase 1 Engagement Feedback Received

The British Columbia Energy Regulator (BCER) conducted early engagement with stakeholders and Indigenous Nations to gather feedback and obtain technical input into amending regulations to achieve the 75 per cent reduction of methane emissions by 2030, relative to 2014 levels.

The BCER received 17 submissions in response to Phase One of our engagement from Indigenous Nations, regulated companies, environmental organizations, industry associations and other interested parties.

The common themes we heard include:

• New vs. existing facilities: For new facilities, set more stringent standards for new equipment as compared to existing operations. For existing facilities, provide flexibility for permit holders to assess and identify the best opportunities for methane abatement.
• Source-by-source approach and intermittent activities: There is general support for setting more stringent emission limits, continuing to promote operational work practices that enable efficient leak detection and repair while ensuring regulation of methane emission limits is informed by continued research; and recognizes effects or similar regulations in neighbouring jurisdictions.
• Alignment: To achieve a coordinated and effective framework for reducing methane emissions. Governments at varying levels within Canada must work to ensure intersecting policy and programs are working in synergy.
• Regulatory options: Enable considerations for safety, operational, technical, economic, and other practical constraints when setting emission limits, and conservation or destruction options for methane emissions.

This document highlights the technical and broader policy feedback received during early engagement.

Based on the feedback received, outputs of B.C. methane emissions modelling and emerging research, an initial regulatory pathway to achieve the three objectives of the regulatory review has been proposed.

BCER is seeking input on the proposed policy for the development of regulations to reduce methane emissions. The engagement period is open until July 21, 2023. At the close of the engagement period, an internal review, with an analysis of comments received to date, will be completed. Formal approval of the policy by the BCER Board will follow, contingent on alignment with any announcements of federal regulations once they are published in the Canada Gazette, Part I.

The linked presentation includes the proposed regulatory policy and provides an overview of the provincial context for reducing emissions in the oil and gas sector, initial insights from 2022 annual reporting and preliminary methane emissions modelling for B.C.’s oil and gas sector.

The proposed policy builds on the existing source-based approach and:

• Increases the stringency of design and operating standards for sources of methane emissions at new facilities.
• Requires more leak detection surveys to be conducted at facilities and wells.
• Expands the scope of the regulations to include some operational activities where methane emissions may occur.
• Enables flexibility in achieving outcomes, by allowing for the use of alternative leak and detection program (Alt-LDAR) and introducing a phased approach for the elimination of venting, where it is feasible.

The regulatory policy may be adapted to reflect changes to modelling results, if applicable.