Discussion Topic Areas

The following discussion topic areas are based on the Emissions Trading Regulation Consultation Paper (PDF/256kb).

Note that you may comment on as many or as few of the discussion topic areas as you see fit. Additional comments, or submissions addressing topics of your choosing, are also welcome.

1.   Determining which facilities are "regulated operations" under this regulation

If an operation is emitting over 25,000 tCO2e of emissions covered by the cap under British Columbia legislation, the entity would automatically be a “regulated operation”. The total covered emissions of a regulated operation creates a compliance obligation where the regulated operation would be required to “surrender” a quantity of compliance units equal to the sum of its covered emissions over the three year compliance period (see consultation paper discussion topic area 1 and appendix A).

1.1 - Please provide comments on establishing the link between the quantity of a regulated operation's verified GHG emissions reported and the regulated operation's GHG compliance liability:

1.2 - Please provide comments regarding the source types of operations that are under consideration to include in B.C. emissions trading system:

1.3 - Please provide comments regarding potential provisions for operations to "opt-in" to the emissions trading system:

1.4 - Please provide comments on the approach to ceasing compliance obligations for operations that shut down:

2.   Setting the number of B.C. allowances through B.C.'s nine-year allowance forecast and three-year compliance period

B.C. will publish a first forecast of the number of allowances that it will issue annually in the first quarter of 2011. By December 31, 2014 the forecast out to 2023 would be established – with the forecast revised and published prior to the beginning of each subsequent compliance period. B.C. also intends to set a cap on allowances issued during a compliance period – i.e., a three-year allowance budget – prior to each compliance period (see consultation paper discussion topic area 2).

2.1 - Please provide comments regarding the timing of the Province publishing the allowance forecast and budget:

2.2 - Please provide comments on how to best facilitate stakeholder input on the economic and emissions forecasts to support the allowance budget determination:

2.3 - Please provide comments on the list of factors that the Ministry may consider in deciding whether an adjustment of the allowance budget is necessary:

3.   Distribution (allocation) of allowances

Following publication of the allowance budget for the compliance period and prior to each three-year compliance period, the B.C. Government would publish a B.C. allowance distribution plan. The total number of allowances in the allowance distribution plan could not exceed the number of allowances in the allowance budget for that year (see consultation paper discussion topic area 3).

3.1 - Please provide comments on the process to set the three-year allowance distribution budget:

3.2 - Please provide comments on the process to set the annual allowance plan:

3.3 - Please provide comments regarding the proposed date of March 31^st of each year for the Minister to transfer serialized allowances into the accounts of regulated operations in accordance with the applicable quantities on the allowance distribution plan:

3.4 - Please provide comments on establishing a process for applying for and obtaining approval to submit bids and for B.C. to withdraw that approval that is clear, transparent and does not unfairly favour certain participants over others:

3.5 - Please provide comments on whether or not B.C. should make public a list of eligible auction participants:

3.6 - Please provide any preferences regarding the announcement of the reserve price in advance of or after the action, or not at all:

3.7 - Please provide comments on how the auction will be conducted, including the length of the bidding window, the form a bid must take, the withdrawal of bids, the rejection of bids, how the clearing price will be calculated and how allowances will be allocated in the event of tied bids:

3.8 - Please provide comments on how to mitigate the risk of non-payment, including taking a deposit, not requiring advance payment but publicizing any default, or taking full payment in advance:

3.9 - Please provide comments on the means for new entrants to access allowances:

4.   Registry and accounts for emissions trading system participants

B.C. would establish and maintain a registry to ensure the accurate accounting of the issue, holding, transfer, retirement and cancellation of compliance units, and the compliance obligations and status of regulated operations. Any person or organization (not just regulated operations) – including the B.C. Government or someone acting on its behalf – may hold compliance units. Information collected by and stored in the registry would be used when determining the Province’s performance in relation to its greenhouse gas emissions reduction targets. The registry would also collect information that is important for market surveillance and market oversight purposes (see consultation paper discussion topic area 4).

4.1 - Please provide comments on the proposed types of accounts:

4.2 - Please provide specific comments on what information you would like to see made publicly available from the registry:

5.   Market design and oversight

B.C. and WCI partners have evaluated potential market oversight program design options for their ability to ensure efficient operation of secondary commodities and derivatives markets (see consultation paper discussion topic area 5).

5.1 - Please provide comments on whether to require the reporting of over-the-counter derivative contracts to a central repository:

5.2 - Please provide comments on whether to limit the number of compliance instruments an entity could hold:

6.   Compliance of regulated operations with program requirements

The Cap and Trade Act allows for allowances, offsets and recognized compliance units (RCUs) to be used by regulated operations for compliance. The proposed Emissions Trading Regulation would set out how approved allowances, offsets and RCUs may be used for compliance by surrendering them through the registry (see consultation paper discussion topic area 6).

6.1 - Please provide comments on the process for regulated operations to demonstrate compliance:

6.2 - Please provide comments on setting the limit on the use of offsets for compliance:

7.   Other comments

7.1 - Please provide any additional comments on any aspect of the proposed Emissions Trading Regulation that you feel may have not been addressed in the consultation paper and discussion topic areas:

Remember – comments and response forms should be submitted by ***, 2010.

Thank you once more for your time and comments!

(Optional) Contact Information

If you wish to receive further information concerning regulatory changes related to the Emissions Trading Regulation, please provide your contact information – including an e-mail address – below. This information will be compiled separate from responses and used to inform respondents of posting of the summary of comments and subsequent actions to develop and implement the regulation. Note that all submissions will be treated with confidentiality by government staff and contractors however information that identifies you as the source of those comments may be publicly available if a Freedom of Information request is made under the Freedom of Information and Protection of Privacy Act.

Background and Area of Interest

Please mark an “x” in the appropriate boxes if your primary interest in the ministry’s intentions relates to your:

Work in the private sector
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Work as a project developer or aggregator
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Work as an assurance provider (i.e., project validation or verification)
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Work for a government regulatory agency:
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Work for a public sector organization
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Involvement or work for an environmental or community interest group

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Thank you once more for your time and interest in the development of this regulation.