Definitions

1   In this regulation:

"Act" means the Clean Energy Act;

"annual percentage change" means the annual percentage change in the annual average All-items Consumer Price Index for British Columbia, as published by Statistics Canada under the authority of the Statistics Act (Canada);

"environmental attribute" means any credit, benefit, greenhouse gas emissions reduction, offset or allowance attributable to

(a) the production and use of renewable natural gas, hydrogen, synthesis gas or lignin, and

(b) the displacement, by the production and use described in paragraph (a), of the production and use of natural gas derived from fossil fuels;

"farm tractor" has the same meaning as in section 1 of the Motor Vehicle Act;

"fiscal year" means the period from April 1 in one year to March 31 in the next year;

"former regulation" means the Greenhouse Gas Reduction (Clean Energy) Regulation as it read immediately before May 22, 2023;

"implement of husbandry" has the same meaning as in section 1 of the Motor Vehicle Act;

"industrial utility vehicle" has the same meaning as in section 1 of the Motor Vehicle Act;

"light-duty vehicle" means a vehicle with a manufacturer's gross vehicle weight rating of 3 856 kg or less;

"logging truck" has the same meaning as in section 1 of the Motor Vehicle Act Regulations;

"non-bypass customer" means a customer of a public utility that receives service under a rate that is not specific to the customer;

"operating costs", in relation to a fuelling station or to distribution or storage infrastructure, means

(a) operating and maintenance expenses,

(b) electricity expenses,

(c) interest expenses,

(d) taxes, including property taxes,

(e) return on equity,

(f) extraordinary retirement costs, and

(g) amounts with respect to the depreciation of the

(i) capital costs,

(ii) construction carrying costs,

(iii) feasibility and development costs,

(iv) sustaining capital costs, and

(v) decommissioning and salvaging costs

determined with reference to the remaining service life of the fuelling station or distribution or storage infrastructure, as approved by the commission in setting rates;

"safety guidelines" means safety guidelines adopted by the British Columbia Safety Authority;

"shore-side asset" means any of the following:

(a) boil-off gas recovery equipment;

(b) an LNG cryogenic loading manifold;

(c) an LNG cryogenic pipeline and vessel loading berth;

(d) an LNG cryogenic storage tank;

(e) an LNG measurement apparatus;

"tanker truck load-out" means equipment for transferring liquefied natural gas from a storage tank to a liquefied natural gas tank trailer.

[am. B.C. Regs. 235/2013, s. 1; 98/2015, s. 1; 214/2016, s. 1; 114/2017, s. 1; 84/2018, s. 1; 134/2021, s. 1; 126/2023, s. 1; 125/2023, s. 1; 125/2024, Sch. 2, s. 1.]

Prescribed undertaking — marine vehicles using liquefied natural gas

2   (1) In this section:

"natural gas marine vehicle" means a marine vehicle that uses, as a fuel source, liquefied natural gas;

"undertaking period" means the period ending on March 31, 2026.

(2) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility provides, on or before March 31, 2026, through an open and competitive application process,

(i) grants or zero-interest loans to persons in British Columbia for the purchase of a natural gas marine vehicle to be operated in British Columbia, or

(ii) grants to persons in British Columbia

(A) to implement safety practices, or

(B) to improve maintenance facilities

to meet safety guidelines for operating and maintaining a natural gas marine vehicle;

(b) an expenditure on a grant or loan for a natural gas marine vehicle does not exceed 50% of the difference between the cost of the natural gas marine vehicle and the cost of a comparable vehicle that uses gasoline or diesel;

(c) during the undertaking period,

(i) total expenditures on the undertaking in this section, including expenditures on administration, marketing, training and education, do not exceed $60 million in total,

(ii) expenditures on administration, marketing, training and education related to the prescribed undertaking in this section do not exceed $9 million in total, including any expenditures on administration, marketing, training and education related to the prescribed undertakings described in section 2 (1) and (3.2) of the former regulation, and

(iii) expenditures on the undertaking on grants referred to in subsection (2) (a) (ii) do not exceed $6 million.

[en. B.C. Reg. 125/2023, s. 2; am. B.C. Regs. 124/2024, s. 1; 125/2024, Sch. 2, s. 2.]

Prescribed undertaking — liquefied natural gas distribution and storage

2.1   (1) In this section:

"expenditures" includes, except with respect to expenditures on administration and marketing, binding commitments to incur expenditures in the future;

"undertaking period" means the period ending on March 31, 2026.

(2) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility, before March 31, 2026, enters into a binding commitment to

(i) construct and operate, or

(ii) purchase and operate

liquefied natural gas distribution and storage infrastructure, other than liquefied natural gas fuelling stations, in British Columbia, including liquefied natural gas rail tank cars, ISO containers and shore-side assets, for the purpose of reducing greenhouse gas emissions;

(b) total expenditures on the undertaking during the undertaking period do not exceed $40 million, including

(i) any expenditures related to the prescribed undertaking described in section 2 (3.4) of the former regulation, and

(ii) expenditures on administration, marketing, training and education;

(c) at least

(i) 80% of the forecast total operating costs of the distribution and storage infrastructure for the first 5 years of the operation are recovered from one or more persons under a take-or-pay agreement with a minimum term of 5 years, or

(ii) 60% of the forecast total operating costs of the distribution and storage infrastructure for the first 7 years of the operation are recovered from one or more persons under a take-or-pay agreement with a minimum term of 7 years.

[en. B.C. Reg. 125/2023, s. 2; am. B.C. Reg. 125/2024, Sch. 2, s. 2.]

Prescribed undertaking — acquiring renewable natural gas

2.2   (1) A public utility's undertaking that is in the class defined in subsection (3) is a prescribed undertaking for the purposes of section 18 of the Act.

(2) For the purposes of subsection (3), "acquires renewable natural gas" includes producing renewable natural gas by producing or purchasing biogas and upgrading it to renewable natural gas.

(3) The public utility

(a) acquires renewable natural gas that meets the criteria described in section 8.2 (3) at costs that meet the following criteria, as applicable:

(i) if the public utility enters into a contract, before December 31, 2023, to acquire renewable natural gas by purchasing it, the purchase price of the renewable natural gas does not exceed the maximum amount, determined in accordance with section 9 (1), in effect in the fiscal year in which the contract for purchase is signed;

(ii) if the public utility enters into a contract, on or after December 31, 2023, to acquire renewable natural gas by purchasing it, the purchase price of the renewable natural gas for each fiscal year of the contract for purchase does not exceed the maximum amount, determined in accordance with section 9 (2), in effect in that fiscal year;

(iii) if the public utility acquires renewable natural gas by producing it, the levelized cost of production reasonably expected by the public utility does not exceed the maximum amount, determined in accordance with section 9 (1), in effect in the fiscal year in which the public utility decides to construct or purchase the production facility,

(b) subject to subsection (4) of this section and section 10, acquires renewable natural gas that, in a calendar year, does not exceed 15% of the total amount, in GJ, of natural gas provided by the public utility to its non-bypass customers in 2019,

(c) acquires and sells or transfers to its customers the environmental attributes of the renewable natural gas it purchases or produces, and

(d) the environmental attributes described in paragraph (c) are retired at the time of sale or transfer to the customers of the public utility.

(4) The amount referred to in subsection (3) (b) does not include renewable natural gas acquired by the public utility that the public utility provides to a customer in accordance with a rate under which the full cost of the following is recovered from the customer:

(a) the acquisition of the renewable natural gas;

(b) the service related to the provision of the renewable natural gas.

[en. B.C. Reg. 125/2023, s. 2; am. B.C. Reg. 125/2024, Sch. 2, s. 3.]

Repealed

3   Repealed. [B.C. Reg. 235/2013, s. 3.]

Prescribed undertaking — electricity purchases for non-integrated areas

3.1   (1) In this section:

"microgrid" means an electricity generation, storage and distribution system owned and operated by the authority for a non-integrated area;

"non-integrated area" means any of the following:

(a) Ah-Sin-Heek (Bella Coola);

(b) Anahim Lake;

(c) Atlin;

(d) Bella Bella;

(e) Dease Lake;

(f) Ehthlateese;

(g) Good Hope Lake;

(h) Hartley Bay;

(i) Kwadacha;

(j) Masset;

(k) Sandspit;

(l) Telegraph Creek;

(m) Toad River;

(n) Tsay Keh Dene.

(2) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility, on or before December 31, 2029, enters into a contract to purchase electricity;

(b) the electricity referred to in paragraph (a) is

(i) produced, at a facility that begins operating on or after January 1, 2024, using a clean or renewable resource as defined in the Act, and

(ii) used to provide service to a non-integrated area;

(c) if the public utility reasonably expects that upgrades are necessary to enable distribution of the electricity referred to in paragraph (a) in a microgrid, the public utility constructs and operates those upgrades.

[en. B.C. Reg. 124/2024, s. 2.]

Prescribed undertaking — electrification

4   (1) In this section:

"benefit", in relation to an undertaking in a class defined in subsection (3) (a) or (b), means all revenues the public utility reasonably expects to earn as a result of implementing the undertaking, less revenues that would have been earned from the supply of undertaking electricity to export markets;

"cost", in relation to an undertaking in a class defined in subsection (3) (a) or (b), means costs the public utility reasonably expects to incur to implement the undertaking, including, without limitation, development and administration costs;

"cost-effective" means that the present value of the benefits of all of the public utility's undertakings within the classes defined in subsection (3) (a) or (b) exceeds the present value of the costs of all of those undertakings when both are calculated using a discount rate equal to the public utility's weighted average cost of capital over a period that ends no later than a specified year;

"natural gas processing plant" means a facility for processing natural gas by removing from it natural gas liquids, sulphur or other substances;

"specified year", in relation to an undertaking within a class defined in subsection (3), means

(a) a year determined by the minister with respect to an identified public utility, or

(b) if the minister does not make a determination for the purposes of paragraph (a), 2030;

"undertaking electricity" means electricity that is provided to customers in British Columbia as a result of an undertaking and is in addition to electricity that would have been provided had the undertaking not been carried out.

(2) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) for the purpose of reducing greenhouse gas emissions in British Columbia, the public utility constructs or operates an electricity transmission or distribution facility, or provides for temporary generation until the completion of the construction of the facility, in northeast British Columbia primarily to provide electricity from the authority to

(i) a producer, as defined in section 1 (1) of the Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation, B.C. Reg. 495/92, or

(ii) an owner or operator of a natural gas processing plant;

(b) the public utility reasonably expects, on the date the public utility decides to carry out the undertaking, that the facility will have an in-service date no later than December 31, 2022.

(3) Subject to subsection (4), a public utility's undertaking that is in a class defined in one of the following paragraphs is a prescribed undertaking for the purposes of section 18 of the Act:

(a) a program to encourage the public utility's customers, or persons who may become customers of the public utility, to use electricity, instead of other sources of energy that produce more greenhouse gas emissions, by

(i) educating or training those customers respecting energy use and greenhouse gas emissions, carrying out public awareness campaigns respecting those matters, or providing energy management and audit services, or

(ii) providing funds to those persons to assist in the acquisition, installation or use of equipment that uses or affects the use of electricity;

(b) a program to encourage the public utility's customers, or persons who may become customers of the public utility, to use electricity instead of other sources of energy that produce more greenhouse gas emissions, by

(i) educating, training, providing energy management and audit services to, or carrying out awareness campaigns respecting energy use and greenhouse gas emissions for, or

(ii) providing funds to

persons who

(iii) design, manufacture, sell, install or, in the course of operating a business, provide advice respecting equipment that uses or affects the use of electricity,

(iv) design, construct, manage or, in the course of operating a business, provide advice respecting energy systems in buildings or facilities, or

(v) design, construct or manage district energy systems;

(c) a project, program, contract or expenditure for research and development of technology, or for conducting a pilot project respecting technology, that may enable the public utility's customers to use electricity instead of other sources of energy that produce more greenhouse gas emissions;

(d) a project, program, contract or expenditure supporting a standards-making body in its development of standards respecting

(i) technologies that use electricity instead of other sources of energy that produce more greenhouse gas emissions, or

(ii) technologies that affect the use of electricity by other technologies that use electricity instead of other sources of energy that produce more greenhouse gas emissions;

(e) a project for the construction, acquisition or extension of a plant or system, that the public utility reasonably expects is necessary to meet the public utility's incremental load-serving obligations arising as a result of an undertaking defined in paragraph (a), (b), (c) or (d), if the public utility reasonably expects any one such project to cost no more than $20 million.

(4) An undertaking is within a class of undertakings defined in paragraph (a) or (b) of subsection (3) only if, at the time the public utility decides to carry out the undertaking, the public utility reasonably expects the undertaking to be cost-effective.

[en. B.C. Reg. 76/2017; am. B.C. Reg. 124/2024, s. 3.]

Prescribed undertaking — electric vehicle charging stations

5   (1) In this section:

"eligible charging site" means a site where one or more eligible charging stations are located;

"eligible fast charging station" means a fast charging station that

(a) is available for use by any member of the public during the site's hours of operation,

(b) does not require users to be members of a charging network, and

(c) is capable of charging electric vehicles of more than one make;

"eligible level 2 charging station" means a charging station that

(a) is a fixed device capable of charging an electric vehicle using 240V,

(b) shares a site with an eligible fast charging station or is on a site owned by any of the follow entities:

(i) a public utility;

(ii) the government;

(iii) the government of Canada;

(iv) an agency of the government or government of Canada;

(v) a government body, as defined in section 1 of the Financial Administration Act;

(vi) a local authority, as defined in section 1 of the Schedule to the Community Charter;

(c) is available for use by any member of the public during the site's hours of operation,

(d) does not require users to be members of a charging network, and

(e) is capable of charging electric vehicles of more than one make;

"fast charging station" means a fixed device capable of charging an electric vehicle using a direct current;

"limited municipality" means a municipality with a population of 9 000 or more;

"site limit", in relation to a limited municipality, means the number calculated by

(a) dividing the population of the municipality by 9 000, and

(b) if applicable, rounding the quotient up to the nearest whole number.

(2) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility constructs and operates, or purchases and operates, an eligible fast charging station;

(b) the public utility reasonably expects, on the date the public utility decides to construct or purchase an eligible fast charging station, that

(i) the station will come into operation by December 31, 2030, and

(ii) if the station will be located in a limited municipality, the number of eligible charging sites in the municipality on the date the station will come into operation will not exceed the site limit for the municipality on that date;

(c) if an eligible fast charging station comes into operation on or after January 1, 2022, the station uses or is configured to use the Open Charge Point Protocol.

(3) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility constructs and operates, or purchases and operates, an eligible level 2 charging station;

(b) the eligible level 2 charging station conforms or will conform to the Open Charge Point protocol;

(c) the public utility reasonably expects, on the date the public utility decides to construct or purchase the eligible level 2 charging station, that the station will come into operation by December 31, 2030.

[en. B.C. Reg. 139/2020; am. B.C. Regs. 125/2023, s. 3; 175/2023, s. (a); 124/2024, s. 3.]

Prescribed undertaking — zero-emission vehicles, machines and charging infrastructure

5.1   (1) In this section:

"commercial zero-emission charging infrastructure" means

(a) a device or battery capable of charging a zero-emission vehicle or machine using 240V or direct current, or

(b) battery-based storage installed for the purposes of charging a zero-emission vehicle or machine;

"eligible zero-emission vehicle or machine" means

(a) a vehicle or machine that is propelled by electricity or hydrogen from an external source and emits no greenhouse gases at least some of the time while the vehicle or device is being operated, and

(b) the vehicle or machine is one of the following:

(i) a vehicle with a manufacturer's gross vehicle weight rating of more than 4 536 kg;

(ii) a school bus;

(iii) a transit bus;

(iv) a marine vehicle;

(v) a mine haul truck;

(vi) a locomotive;

(vii) an implement of husbandry;

(viii) a farm tractor;

(ix) a logging truck;

(x) an industrial utility vehicle;

"expenditures" includes, except with respect to expenditures on administration and marketing, binding commitments to incur expenditures in the future.

(2) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility provides, on or before March 31, 2030, through an open and competitive application process,

(i) grants or zero-interest loans to persons in British Columbia for the purchase of an eligible zero-emission vehicle or machine to be operated in British Columbia, or

(ii) grants to persons in British Columbia

(A) to implement safety practices, or

(B) to improve maintenance facilities

to meet safety guidelines for operating and maintaining an eligible zero-emission vehicle or machine;

(b) subject to paragraph (c) and subsection (4), total expenditures on the undertaking during the period ending on March 31, 2030 do not exceed $100 million;

(c) total expenditures on grants to persons in British Columbia during the period ending on March 31, 2030 in relation to subsection (2) (a) (ii) do not exceed $6 million;

(d) an expenditure on a grant or zero-interest loan for an eligible zero-emission vehicle or machine does not, in any year of the undertaking, exceed 50% of the difference between the cost of an eligible zero-emission vehicle or machine and the cost of comparable vehicle or machine that uses gasoline or diesel.

(3) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility, before March 31, 2030, enters into a binding commitment to construct or purchase, for the purposes of charging and fuelling eligible zero-emission vehicles or machines, commercial zero-emission charging infrastructure or hydrogen fuelling infrastructure and operate the infrastructure;

(b) subject to subsection (4), total expenditures on the undertaking during the period ending on March 31, 2030 do not exceed $100 million.

(4) The undertakings referred to in subsections (2) and (3) are prescribed undertakings for the purposes of section 18 of the Act only if

(a) the total combined expenditures of the undertakings in this section on administration and marketing during the period ending on March 31, 2030 do not exceed $6 million, and

(b) the total combined expenditures of the undertakings in this section on training, education, studies, pilot projects and standards development during the period ending on March 31, 2030 do not exceed $8 million.

[en. B.C. Reg. 125/2023, s. 4; am. B.C. Reg. 124/2024, s. 3.]

Prescribed undertaking — zero-emission vehicle grants

5.2   (1) In this section:

"adjusted average price", in relation to a fiscal year, means the product of

(a) 0.75, and

(b) the average price of a credit transferred in the calendar year that ends on a date in the fiscal year;

"credit" means a credit under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act or the Low Carbon Fuels Act;

"government corporation" has the same meaning as in section 1 of the Financial Administration Act;

"motor vehicle liability policy" has the same meaning as in section 1 of the Motor Vehicle Act;

"specified credit" means a credit for the supply of electricity

(a) before January 1, 2022 to charge a vehicle at a residential building, or

(b) on or after January 1, 2022 to charge a vehicle at a residential building that includes fewer than 5 dwelling units;

"zero-emission vehicle" has the same meaning as in section 1 of the Zero-Emission Vehicles Act.

(2) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility provides grants for the following who purchase or lease in British Columbia a new zero-emission vehicle that is a light-duty vehicle:

(i) an individual who is resident in British Columbia;

(ii) a person, other than a person excluded under subsection (3), who operates in British Columbia, if the person

(A) registers and licenses the vehicle in accordance with section 3 (1) (a) and (b) of the Motor Vehicle Act, and

(B) insures the vehicle under a motor vehicle liability policy that is valid for a period of 12 months beginning on the date the vehicle is delivered to the person and maintains that policy in force for that period;

(b) expenditures on administration and marketing in relation to the undertaking, in each fiscal year of the public utility, do not exceed $2.5 million;

(c) total expenditures on the undertaking, other than expenditures on administration and marketing, do not exceed the amount specified by subsection (4).

(3) For the purposes of subsection (2) (a) (ii), the following are excluded:

(a) the government;

(b) the government of Canada;

(c) the government of a province or territory within Canada;

(d) the government of a jurisdiction outside of Canada;

(e) an agency of a government described in paragraphs (a) to (d);

(f) a government corporation or a corporation that stands in relation to a government described in paragraphs (b) to (d) as a government corporation stands in relation to the government of British Columbia.

(4) For the purposes of subsection (2) (c), the specified amount is the sum of the products, for the fiscal year of the public utility that begins in 2022 and each subsequent fiscal year, of

(a) the number of specified credits transferred away by the public utility in the fiscal year, and

(b) the adjusted average price for the fiscal year.

[en. B.C. Reg. 126/2023, s. 2; am. B.C. Regs. 80/2024; 124/2024, s. 3.]

Prescribed undertaking — hydrogen

6   A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility

(i) produces or purchases hydrogen that is distributed through the natural gas distribution system in British Columbia to the customers of that public utility or of another public utility, or

(ii) purchases hydrogen that is provided to a customer of the public utility other than through the natural gas distribution system in British Columbia and that is to be used by that customer to replace, at least in part, natural gas derived from fossil fuels;

(b) the hydrogen referred to in paragraph (a) meets the criteria described in section 8.2 (3);

(c) the costs incurred by the public utility in producing or purchasing the hydrogen referred to in paragraph (a) meet the following criteria, as applicable:

(i) if the public utility produces hydrogen, the levelized cost of production reasonably expected by the public utility does not exceed the maximum amount, determined in accordance with section 9 (1), in effect in the fiscal year in which the public utility decides to construct or purchase the production facility;

(ii) if the public utility purchases the hydrogen for distribution through the natural gas distribution system in British Columbia, the purchase price of the hydrogen for each fiscal year of the contract for purchase does not exceed the maximum amount, determined in accordance with section 9 (2), in effect in that fiscal year;

(iii) if the public utility purchases the hydrogen to provide it to a customer by a means other than the natural gas distribution system in British Columbia, the sum of the purchase price of the hydrogen and the costs of distribution reasonably expected by the public utility does not exceed, for each fiscal year of the contract for purchase, the maximum amount, determined in accordance with section 9 (2), in effect in that fiscal year;

(d) subject to section 10, the public utility purchases hydrogen in an amount that, in a calendar year, does not exceed 5 PJ;

(e) the public utility acquires and sells or transfers to its customers the environmental attributes of the hydrogen it purchases or produces;

(f) the environmental attributes described in paragraph (e) are retired at the time of sale or transfer to the customers of the public utility.

[en. B.C. Reg. 134/2021, s. 3; am. B.C. Regs. 124/2024, s. 3; 125/2024, Sch. 2, s. 4.]

Prescribed undertaking — synthesis gas

7   (1) In this section, "biomass" means non-fossilized plants or parts of plants, animal waste or any product made of either of these, other than a fuel product, and includes wood and wood products, agricultural residues and wastes, biologically derived organic matter found in municipal and industrial wastes, black liquor and kraft pulp fibres.

(2) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility purchases and distributes synthesis gas that meets the criteria described in section 8.2 (3) and that is

(i) derived from biomass,

(ii) to be used by a customer to replace, at least in part, natural gas derived primarily from fossil fuels, and

(iii) to be used at the site at which it is produced;

(b) the sum of the purchase price of the synthesis gas referred to in paragraph (a) and the costs of distribution reasonably expected by the public utility does not exceed, for each fiscal year of the contract for purchase, the maximum amount, determined in accordance with section 9 (2), in effect in that fiscal year;

(c) subject to section 10, the public utility purchases the synthesis gas in an amount that, in a calendar year, does not exceed 15% of the total amount of natural gas, in GJ, provided by the public utility to its non-bypass customers in 2019;

(d) the public utility acquires and sells or transfers to its customers the environmental attributes of the synthesis gas it purchases;

(e) the environmental attributes described in paragraph (d) are retired at the time of sale or transfer to the customers of the public utility.

(3) The costs of distribution described in subsection (2) (b) are limited to the costs of the construction and operation, at the site at which the synthesis gas is produced, of meters and pipelines associated with the undertaking.

[en. B.C. Reg. 134/2021, s. 3; am. B.C. Regs. 124/2024, s. 3; 125/2024, Sch. 2, s. 5.]

Prescribed undertaking — lignin

8   (1) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility purchases and distributes lignin that meets the criteria described in section 8.2 (3) and that is

(i) derived from black liquor,

(ii) to be used by a customer to replace, at least in part, natural gas derived from fossil fuels, and

(iii) to be used at the site at which it is produced;

(b) the sum of the purchase price of the lignin referred to in paragraph (a) and the costs of distribution reasonably expected by the public utility does not exceed, for each fiscal year of the contract for purchase, the maximum amount, determined in accordance with section 9 (2), in effect in that fiscal year;

(c) subject to section 10, the public utility purchases the lignin in an amount that, in a calendar year, does not exceed 15% of the total amount of natural gas, in GJ, provided by the public utility to its non-bypass customers in 2019;

(d) the public utility acquires and sells or transfers to its customers the environmental attributes of the lignin it purchases;

(e) the environmental attributes described in paragraph (d) are retired at the time of sale or transfer to the customers of the public utility.

(2) The costs of distribution described in subsection (1) (b) are limited to the costs of the construction and operation, at the site at which the lignin is produced, of meters and pipelines associated with the undertaking.

[en. B.C. Reg. 134/2021, s. 3; am. B.C. Regs. 124/2024, s. 3; 125/2024, Sch. 2, s. 6.]

Prescribed undertaking — grants and loans for synthesis gas or lignin

8.1   (1) A public utility's undertaking that is in the class defined as follows is a prescribed undertaking for the purposes of section 18 of the Act:

(a) the public utility purchases and distributes synthesis gas or lignin that meets the criteria described in section 7 (2) (a) or 8 (1) (a), as applicable;

(b) the purchase described in paragraph (a) is from a customer of the public utility to whom the public utility provides a grant or zero-interest loan to cover the costs that the customer will incur to convert facilities, or to purchase equipment for the purpose of producing the synthesis gas or lignin to be sold to the public utility;

(c) the sum of the following costs incurred by the public utility does not exceed, for each fiscal year of the contract for purchase of the synthesis gas or lignin, the maximum amount, determined in accordance with section 9 (2), in effect in that fiscal year:

(i) the costs incurred by the public utility to provide the grant or zero-interest loan;

(ii) the purchase price of the synthesis gas or lignin;

(iii) the costs of distribution reasonably expected by the public utility;

(d) subject to section 10, the total amount of synthesis gas or lignin the public utility purchases, in a calendar year, from all customers described in paragraph (b) does not exceed 5 PJ;

(e) the public utility acquires and sells or transfers to its customers the environmental attributes of the synthesis gas or lignin it purchases;

(f) the environmental attributes described in paragraph (e) are retired at the time of sale or transfer to the customers of the public utility.

(2) The costs of distribution described in subsection (1) (c) (iii) are limited to the costs of the construction and operation, at the site at which the synthesis gas or lignin is produced, of meters and pipelines associated with the undertaking.

[en. B.C. Reg. 125/2024, Sch. 2, s. 7.]

Carbon intensity

8.2   (1) In this section:

"carbon dioxide equivalent" means the mass of carbon dioxide that would produce the same global warming impact as a given mass of another greenhouse gas, as determined in accordance with section 2 of the Low Carbon Fuels (Technical) Regulation;

"carbon intensity" has the same meaning as in section 1 of the Low Carbon Fuels Act;

"gCO2e/MJ" means grams of carbon dioxide equivalent per megajoule of energy;

"GHGenius" means the spreadsheet model of that name designed for analyzing the components attributable to the stages of the life cycles of fuels for the purpose of determining all greenhouse gases resulting from the production and use of those fuels;

"greenhouse gas" has the same meaning as in section 1 of the Climate Change Accountability Act;

"higher heating value" means a measure of heat content based on the gross energy content of a combustible fuel;

"ISO" means the International Organization for Standardization;

"ISO 14044:2006" means ISO standard entitled Environmental management — Life cycle assessment — Requirements and guidelines, published in July 2006;

"reference date" means the date

(a) a public utility decides to construct or purchase a production facility for the purposes of section 2.2 (3) (a) (iii), or

(b) a contract for purchase is signed for the purposes of section 2.2 (3) (a) (ii), 6, 7, 8 or 8.1;

"verification body" means a person that is accredited as a verification body by, and is in good standing with, a member of the International Accreditation Forum.

(2) For the purposes of the definition of "carbon intensity" in subsection (1),

(a) greenhouse gas emissions attributable to fuel are the total greenhouse gas emissions from all stages in the life cycle of the fuel, as calculated using the most recent version of GHGenius available on the reference date, and

(b) the expected use of the fuel is for transportation, unless the public utility reasonably expects that the fuel will be used for another purpose.

(3) For the purposes of sections 2.2 (3) (a), 6 (b), 7 (2) (a), 8 (1) (a) and 8.1 (1) (a), an undertaking is a prescribed undertaking only if the renewable natural gas, hydrogen, synthesis gas or lignin, as the case may be, that is acquired by the public utility has a carbon intensity that does not exceed 30.8 gCO2e/MJ

(a) as forecast in accordance with subsection (4),

(b) as determined in accordance with subsection (5), and

(c) as verified in accordance with subsection (6).

(4) The carbon intensity described in subsection (3) must be forecast

(a) within a reasonable time before the reference date,

(b) for the entire duration of the undertaking, and

(c) based on higher heating value.

(5) The carbon intensity described in subsection (3) must,

(a) during the undertaking, be determined every 3 years, or at any other interval specified by the commission, and

(b) at the conclusion of the undertaking, be determined for the entire duration of the undertaking.

(6) The carbon intensity forecast or determined for the purposes of subsection (3) is verified if the public utility provides to the commission a statement by a verification body that

(a) attests to the fair and accurate representation of the data used to forecast or determine the carbon intensity, and

(b) is prepared in accordance with ISO 14044:2006.

(7) If, in a single undertaking, a public utility purchases renewable natural gas, hydrogen, synthesis gas or lignin that is produced at multiple production facilities, each delivery of the renewable natural gas, hydrogen, synthesis gas or lignin produced at each facility must meet the criteria described in subsection (3).

[en. B.C. Reg. 125/2024, Sch. 2, s. 7.]

Maximum amount for costs

9   (1) For the purposes of sections 2.2 (3) (a) (i) and (iii) and 6 (c) (i),

(a) the maximum amount in effect in the 2021/2022 fiscal year is $31 per GJ, and

(b) for fiscal years subsequent to the 2021/2022 fiscal year, the maximum amount is calculated on April 1 of each year by multiplying

(i) the maximum amount in effect in the immediately preceding fiscal year, and

(ii) the sum of

(A) 1, and

(B) the annual percentage change for the previous calendar year.

(2) For the purposes of sections 2.2 (3) (a) (ii), 6 (c) (ii) and (iii), 7 (2) (b), 8 (1) (b) and 8.1 (1) (c),

(a) the maximum amount for the first year of the contract for purchase is calculated on April 1 of that year in accordance with subsection (1), and

(b) the maximum amount for subsequent years of the contract for purchase is calculated on April 1 of each year by multiplying

(i) the maximum amount for the contract in effect in the immediately preceding fiscal year, and

(ii) the sum of

(A) 1, and

(B) half of the annual percentage change for the previous calendar year.

[en. B.C. Reg. 125/2024, Sch. 2, s. 8.]

Aggregate amount if multiple undertakings

10   If a public utility does 2 or more of the following:

(a) acquires renewable natural gas in accordance with section 2.2 (3);

(b) produces or purchases hydrogen in accordance with section 6;

(c) purchases synthesis gas in accordance with section 7;

(d) purchases lignin in accordance with subsection 8;

(e) purchases synthesis gas or lignin from customers to which it has provided grants or zero-interest loans in accordance with section 8.1,

the aggregate amount of all products must not exceed 15% of the total amount of natural gas, in GJ, provided by the public utility to its non-bypass customers in 2019.

[en. B.C. Reg. 134/2021, s. 3; am. B.C. Regs. 125/2023, s. 6; 175/2023, s. (c); 125/2024, Sch. 2, s. 9.]