BC Will Regulate GHG Emissions From LNG Facilities Through Bill 2-2014: The Greenhouse Gas Industrial Reporting And Control Act

On October 20, 2014, the province of British Columbia introduced Bill 2-2014, the Greenhouse Gas Industrial Reporting and Control Act (the Bill). If passed, the Bill will require the province's liquefied natural gas (LNG) facilities to meet an emissions intensity standard of no more than 0.16 tonnes of CO2 equivalent per tonne LNG produced (0.16T CO2e/T LNG, or the Emission Standard), which is among the most stringent standards for LNG in the world.

The Bill would also repeal and replace the current Greenhouse Gas Reduction (Cap and Trade) Act and consolidate various related statutes and regulations under the Bill or new regulations to be promulgated under the Bill, thereby amending the current greenhouse gas (GHG) reporting, offsets, and related requirements under the Reporting Regulation, the Emissions Offsets Regulation and the Carbon Neutral Government Regulation. The Bill will operate in addition to the $30/tonne of carbon tax that is payable on all combustion