Alberta Methane Equivalency Agreement

3.2 (1) After this agreement comes into force, Alberta will make Canada available each year: it recently announced a $52 million investment to support methane reduction and job creation programs in this sector. To demonstrate the equivalence of results between Alberta`s regulations and federal regulations, ECCC modelled the federal provisions using the department reference case, as published in the 2018 Canadian GHG and air pollutant projections, and modelled the Alberta regulation using the same methodology and data. Enabling technology, innovation and basic scientific research is key to Alberta`s approach to methane reduction and emission power. The Government of Alberta continues to support methane technology and innovation approaches across the oil and gas sector with industry-supported TIER funding. Current programs already in place to support technology and innovation in reducing methane emissions are as follows: while the parties agree to enter into an equivalency agreement (“agreement”) that recognizes that the MERR and the relevant sections of the EPEA are provisions in accordance with the requirements of Section 10 of the EPA , and the Governor of the Council may state that federal methane regulations do not apply in an area under the jurisdiction of the Province of Alberta. The English version of the Canada-Alberta equivalency agreement, which respects methane releases from the oil and gas sector, is the only official version. Alberta was the first regional government in North America to commit to a goal of reducing methane emissions for the oil and gas sector. Alberta will use a combination of policy instruments to achieve the province`s 45% methane reduction target by 2025, including regulatory requirements, market-based programs and investments in technology and innovation. The federal government approved Alberta`s plan after learning that its methane emissions were the same as its own. As part of the agreement, the AER published bulletin 2020-12 on 12 May 2020-12: The requirements for reducing methane emissions have been amended and the changes to Directive 017 and Directive 060 come into force immediately. The agreement must be subject to legislative proceedings and approved by the Federal Cabinet. As part of the legislative review process, Environment and Climate Change Canada will publish the agreement for a period of 60 days and respond to these comments. While the agreement is in the process of being legislation, the federal regulations will continue to apply in Alberta.

“Canadians want their governments to continue to take action to combat climate change during the COVID 19 pandemic. I am pleased that the federal government has entered into equivalency agreements with Alberta, British Columbia and Saskatchewan to reduce methane emissions from their oil and gas sectors. These efforts form the basis of the next steps we need to take as a country to exceed our 2030 climate target. – The Honourable Minister of the Environment and Climate Change 5.3 Canada will review the information contained in Section 3.0 of this agreement each year, in particular to monitor emissions reductions resulting from the implementation of the MERR. The text of the preliminary agreement is expected to be published for a period of 60 days on the Environment and Climate Change Canada website, and the agreement will be concluded and subject to cabinet approval and a general council. The oil and gas industry should expect more updates on the implementation of the agreement once Environment and Climate Change Canada responds to public comments on the agreement after the first 60-day comment period.