B.C. Reg. 38/2024, deposited on March 4, 2024, introduces amendments to the Fee, Levy, and Security Regulation (B.C. Reg. 8/2014) under the newly updated Energy Resource Activities Act. These changes, ordered by the Board of the British Columbia Energy Regulator, adjust various fees and definitions related to the development and operation of ammonia, hydrogen, methanol, and natural gas conversion facilities in British Columbia. The amendments reflect a broadening of the province’s regulatory framework to cover emerging energy resource activities, ensuring that these new facilities fall under appropriate oversight.

One of the key changes is the adjustment of terminology to align with the Energy Resource Activities Act, replacing the former Oil and Gas Activities Act. This update indicates a shift toward integrating new types of energy infrastructure, such as ammonia, hydrogen, and methanol production facilities, into the regulatory framework. Several new definitions have been added, including “ammonia facility,” which refers to any facility that produces ammonia. A distinction is made between Class A ammonia facilities, which produce less than 5,000 tonnes per year, and Class B facilities, which produce 5,000 tonnes or more. Similar classifications are introduced for hydrogen and methanol facilities, with Class A hydrogen facilities producing less than 100,000 tonnes per year and Class B facilities producing 100,000 tonnes or more. A “natural gas conversion facility” is also defined as one that converts natural gas into organic compounds other than methanol. Additionally, the term “non-oil-and-gas facility” now includes ammonia, hydrogen, methanol, and natural gas conversion facilities, bringing them under the same regulatory scrutiny as oil and gas operations.

The regulation also introduces a new fee structure for permitting and amending permits for ammonia, hydrogen, and methanol facilities. The fees vary based on the size of the facility, with Class A facilities (producing less than 5,000 tonnes of ammonia or methanol or less than 100,000 tonnes of hydrogen) required to pay $12,400 for an initial permit application. For larger Class B facilities, the fee is significantly higher at $50,000. Additionally, fees for amending permits are established, with minor amendments for Class A facilities costing $1,000 and major amendments for Class B facilities costing $7,000. This fee structure reflects a recognition of the different scales of industrial operations in these sectors, with larger facilities requiring more oversight and higher fees.

Another significant amendment is the increase in financial security requirements for operators of these facilities. Previously, operators were required to provide security in the amount of $900,000, but this has been raised to $1,200,000. This adjustment likely reflects a greater emphasis on ensuring that operators have the financial capacity to cover potential environmental and operational risks associated with ammonia, hydrogen, and methanol production.

British Columbia (38/2004) March 5, 2024