Published monthly for the last 5 years, Integrated Sustainability's regulatory bulletin highlights regulatory updates affecting energy project development teams that the Integrated Sustainability team has been tracking within North America's energy and natural resource sectors. Read the regulatory bulletin here.

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The International Sustainability Standards Board (ISSB) announced that new global sustainability and climate disclosure standards will be effective as of January 2024. The final drafts of the two standards will be released by the end of Q2 2023, and disclosure against the standards will start in 2025.

The main considerations of these new disclosures include the following:

• These climate disclosure standards are voluntary. Jurisdictional authorities will determine if these standards are to become mandatory. At this point, across Canada, they are considered voluntary.
• The goal of global sustainability and climate disclosure standards is to ensure consistent, comparable, and comprehensible information and provide a common language for investor focused sustainability-related disclosures.
• Each standard has an approach in alignment with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), utilizing the four elements of Governance, Strategy, Risk Management, and Metrics & Targets.
• S1 General Requirements for Disclosure of Sustainability-related Financial Information focuses on significant sustainability-related risks and opportunities, whereas S2 Climate-related Disclosures assesses the effect of climate-related risks and opportunities on a company’s enterprise value.

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On 13 February 2023, the AER released a new edition of Directive 088: Licensee Life-Cycle Management and Manual 023: Licensee Life Cycle Management, to align with the changes to the liability management framework.

The changes have been updated as follows:

• Added the closure nomination component of the Inventory Reduction Program, which allows eligible requesters to request the closure of a site.
• Define the closure plan approaches available to licensees when a site is nominated.

The licensee capability assessment (LCA) tool and OneStop will be updated in early March 2023 to reflect these changes. Licensees with sites associated with the Government of Alberta’s site rehabilitation program (SRP) will receive further direction on how to implement these new requirements in spring 2023.

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On 15 February 2023 the Canadian Society of Evolving Energy (CSEE) held a BC Days Conference in Calgary, which included presenters from the newly rebranded British Columbia Energy Regulator (BCER) (formerly the BC Oil and Gas Commission [OGC]), and the BC Ministry of Energy, Mines and Low Carbon Innovation (EMLI) including EMLI Deputy Minister Shannon Baskerville. The presenters spoke of the recent changes to BC) regulations; many of which are being changed to align with the goals of CleanBC and Reconciliation, and are summed up in the BCER’s new purpose as stated in Section 6 of Bill 37:

“The purpose of the regulator is to regulate energy resource activities in a manner that protects public safety and the environment, supports reconciliation with Indigenous peoples and the transition to low-carbon energy, conserves energy resources and fosters a sound economy and social well-being.”

These changes are largely due to the passing of Bill 37, in November 2022, which allows for amendments to the Acts, and the agreement with the Blueberry River First Nation and Treaty 8 Nations. Some of the changes highlighted at BC days include the following:

Recent Regulatory Changes in BC:

• BC OGC to become BCER (jurisdiction expanded to include regulation of hydrogen, ammonia, and methanol), effective 17 November 2023.
• BCER board of directors to consist of 5-7 members (previously 3) and to include 3 5 directors, one director who is an Indigenous person and one deputy minister.
• Oil and Gas Activities Act (OGAA) will be amended to Energy Resources Activities Act (ERAA) and will include the regulation of hydrogen, ammonia, and methanol.
• Petroleum and Natural Gas Act (PNGA) will also be amended to align with expanded responsibility.
• BCER will have the right to access and regulate subsurface storage under private land and the definition in the PNGA of natural gas has expanded to include all fluid hydrocarbons (not defined as petroleum) and any of the following produced from a well:
  • Carbon dioxide
  • Helium
  • Hydrogen
  • Hydrogen Sulphide
• BCER is now able to hold a responsible person (director/officer, someone with control or beneficial interest) liable for orders on a permit or for the debts associated with an orphan site and limitation period expanded from 2 to 7 years.
• New, simpler, Natural Gas royalty regime and freehold production tax
  • Existing credits under the previous Deep Well Royalty Program, can be transferred to environmentally focused land healings and emission-reduction work, if beyond regulatory requirements, used for original purpose, or will expire. 

Comments from the BCER on the Blueberry River Fist Nation (BRFN) Agreement and four of the Treaty 8 First Nations (Fort Nelson, Saulteau, Halfway River and Doig River First Nations) Consensus

• The new measures may seem blunt; however, they are intended to be temporary while restoration can occur, and more long-term landscape and watershed planning can occur.
• The new plans will consider cumulative effects and the principles of reconciliation and the agreements between governments (government of BC and First Nations).
• There is a commitment of $1.5 Billion for restoration; BC has ensured $600 million within the next 10 years.
• There will be disturbance fees required at permitting phase of projects ($60,000/hectare in crown land disturbance within the BRFN HV1, Trapline and Priority Watershed Management Basin Areas).
• The BCER will be releasing pre-engagement requirements (by end of Feb 2023).

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The federal government has released the interim Sustainable Jobs Plan (the Plan) to identify and secure sustainable jobs for the current and future working population. The Plan will prioritize identifying and supporting job markets positioned around clean energy technology that harnesses Canada’s abundant natural resources and energy sources. The interim Plan for 2023-2025 establishes the foundation for the federal government’s involvement, including a federal governance, engagement, and accountability framework.

Beginning in 2025, the Plan will be released to provide the public with direction on the sustainable job market that meet/strive towards the country ‘net zero emissions’ goals. It is expected that all areas of government will work to identify opportunities in the country’s market to promote opportunities, especially in areas that have been historically underrepresented. Identifying these opportunities will be facilitated through discussions with the Regional Energy and Resources Tables established in each province that will engage with workers, their unions and labour organizations and other partners including industry.

It is estimated that net-zero emissions by 2050 scenario could create almost 40 million new jobs in clean energy by 2030, and Clean Energy Canada anticipates that jobs in the clean energy sector in Canada will grow by 3.4% annually over the next decade. A complete overview of the Plan initiatives and description of the 10 key actions areas for 2023-2025 are provided under the government’s website.

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International

• New Global Sustainability and Climate Disclosure Standards in Effect January 2024

Federal

• Government of Canada releases Sustainable Jobs Plan 

Alberta

• Government of Alberta/Danielle Smith’s response to Sustainable Jobs Plan
• EPO Imperial’s Kearl Oil
• New Editions of Directive 088 and Manual 023
• Alberta to Pilot Oil and Gas Royalty Breaks

British Columbia

• BC Days Conference Review - Need-To-Know Regulatory Changes
• New Measures for Old Growth, Innovation, and Forest Stewardship
• Compliance Fines related to Sediment & Erosion

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Regulatory applications and permitting are often one of the greatest risks to project schedule. Engaging us in the early stages of your project will help anticipate and address risks and challenges before they arise. Contact us for:

• Feasibility Assessments and Evaluations
• Regulatory Applications and Permitting
• Regulatory and Stakeholder Engagement
• Site Inspections and Monitoring
• Compliance Management and Reporting

The regulatory bulletin is compiled by Stephanie Demers, B.Sc., Manager, Regulatory and Environmental, Integrated Sustainability. Copyright © 2023 Integrated Sustainability, All rights reserved.