Alberta Record

· Order in Council / TIER Amendment Regulation · in-force

Order in council tier amendment investment credits

This Order in Council amends the Technology Innovation and Emissions Reduction Regulation, introducing 'investment credits' as a new compliance instrument, defining their eligibility and use, and granting the Director new authority to issu…

Moderate impactCentralization of powerThe public, directly

What changed

  • Introduces 'investment credit' as a new compliance instrument and defines 'Standard for Direct Investment' within the Technology Innovation and Emissions Reduction Regulation.
  • Amends the net emissions calculation formula (NE = TRE – (EO + EPC + FC + SC + IC)) to incorporate investment credits (IC).
  • Establishes rules for the use of investment credits, including a 5-year validity period, single-use restriction, and applicability from the 2026 compliance year.
  • Grants the Director the authority to issue investment credits to regulated facilities in recognition of eligible investments.
  • Defines 'eligible investment' and 'eligible investment project,' outlining criteria, exclusions, and the requirement for an audited investment statement.
  • Empowers the Director to approve projects as 'eligible investment projects' if they are not pre-approved under the Standard for Direct Investment.
  • The Specified Enactments (Jurisdiction) Regulation (AR 201/2013) is amended by this Order in Council.
  • Section 2(c.1) is repealed from Schedule 2 of the Specified Enactments (Jurisdiction) Regulation (AR 201/2013).

Why it matters

  • Expands the range of compliance options available to regulated facilities for meeting emissions reduction targets under the TIER program.
  • Centralizes authority with the Director of the department to approve specific investment projects and issue corresponding investment credits.
  • Introduces a new mechanism designed to incentivize direct monetary investments in emissions reduction projects within Alberta.
  • Requires regulated facilities to adhere to new auditing and reporting standards for investments to qualify for credits, increasing administrative oversight.
  • Shifts a portion of emissions compliance from direct reductions or existing credit types to investments in approved projects, potentially altering market dynamics for other credit types.
  • This amendment alters the scope of enactments falling under the jurisdiction defined by Schedule 2 of AR 201/2013.
  • The repeal removes a specific enactment from the purview of the entities or authorities outlined in Schedule 2.
  • The change may reallocate or remove oversight responsibilities for the repealed enactment, impacting regulatory boundaries.

Other governance concerns

  • Increased discretion of the Director in approving projects and issuing credits.
  • New compliance mechanism for regulated facilities.
  • Reliance on external standards ('Standard for Direct Investment' and 'Standard for Validation, Verification and Audit') not fully detailed in the OIC text.
  • Changes to regulatory oversight
  • Potential shift in accountability for specific enactments
  • Clarity of jurisdictional boundaries

Primary sources (2)

Secondary sources (2)