This release was issued under a previous government.

Alberta Energy has completed an extensive review that resulted in over 70 conclusions and recommendations aimed at improving CCS regulation in Alberta, and it is now providing an opportunity for the public to comment on proposed changes.

“Carbon capture and storage is a critical part of our government’s commitment to responsible energy development and reducing our carbon footprint. It will also generate more royalty revenues from enhanced oil recovery with carbon dioxide,” said Minister of Energy Ken Hughes.

“We must ensure CCS is conducted in the safest and most environmentally responsible way possible. That’s why we have been working with world experts and local leaders to look at how we can improve the regulations we have now, and it’s why we are asking the public for their say.”

Alberta has committed $170 million in 2013/2014 - and a total of $1.3 billion over 15 years - to fund two large-scale CCS projects that will help reduce CO2 emissions from oil sands refining.

The CCS Regulatory Framework Assessment, announced in 2011, looked at both the current rules for CCS in Alberta and best practices from around the world. Over 100 global experts from industry, environmental groups, academics and government participated in the review.

The public feedback period will extend to October 3.

Our government was elected to keep building Alberta, to live within its means and to fight to open new markets for Alberta’s resources. We will continue to deliver the responsible change Albertans voted for.

 

Backgrounder: Carbon Capture and Storage Regulatory Framework Assessment

Media inquiries may be directed to:

Mike Feenstra
Press Secretary
Office of the Minister of Energy
780-643-9126
780-690-8109 (cell)
[email protected]

Bart Johnson
Director of Communications
Alberta Energy
780-422-3667
780-446-9190 (cell)
[email protected]

To call toll free within Alberta dial 310-0000.

Backgrounder

August 19, 2013
Regulatory framework assessment for carbon capture and storage

The Alberta government is moving forward on its plan to reduce greenhouse gas emissions with carbon capture and storage (CCS) - the long-term storage of carbon dioxide (CO2) deep under the earth’s surface. CCS will help government both meet its climate change goals, and generate future royalty revenue for Alberta through the use of CO2 for enhanced oil recovery.

To make sure that CCS is conducted in the safest and most environmentally responsible way possible, the Alberta government is working to create the best regulatory environment.

Taking a deep look at CCS regulations
Over the past two years, a Regulatory Framework Assessment was conducted that looked at the current rules for CCS in Alberta and best practices from around the world. Over 100 global experts on CCS, including representatives from industry, environmental groups, scholars and government worked on this review. The final report, Carbon Capture and Storage Regulatory Framework Assessment, details the findings of the review, and includes over 70 conclusions and recommendations to ensure the highest levels of protection for public safety and the environment.

Staying ahead of the curve
The report looks at all aspects of CCS - including planning, monitoring, safety, environmental protection and the long-term needs of the storage site - and suggests ways of strengthening Alberta’s CCS regulations to reflect emerging technologies and feedback from stakeholders.

The recommendations and conclusions have been broken down into 11 broad categories. The following chart outlines these categories and gives an overview of the steps that government is taking to address the recommendations.

 

Summary of Recommendations

Government Response

1

Define the roles and responsibilities of the agencies that regulate CCS in Alberta.

Clarity on roles and responsibilities is important for the public, industry and government. 

2

Work with the Alberta Energy Regulator to clearly define the application and approvals requirements for CCS.  This includes reviewing the need for environmental impact assessments and submitting monitoring plans to the regulator.

Clearly outlined processes are integral for the success of CCS projects.  New regulations for CCS will enhance environmental protection and allow for a technical review of monitoring plans prior to their approval.

3

Allow for efficient and fair development of CCS by promoting cooperation among operators, enabling third party access and requiring those who have obtained tenure for CCS to use it.

Implementing these recommendations will help to reduce the cumulative environmental footprint of CCS operations and the cost of implementing CCS. 

4

Clearly define what classifies as CCS, enhanced oil recovery and acid gas disposal.

Clarity is important for all stakeholders.

5

Require project-specific risk assessments and demonstration of the storage site’s suitability for CCS.

Government will ensure that only the most appropriate sites are chosen for CCS, and that any potential risks associated with the project are appropriately identified and managed.

6

Conduct further research on leak detection methods, amine usage and the new Canadian Standards Association standard on CCS.

These recommendations will be acted upon to ensure that CCS is conducted in the safest possible manner.

7

Review and update notification and consultation requirements to ensure that people living in areas where CCS is taking place are well informed.

It is important that the people living in areas where CCS is taking place have the information they need. New consultation and notification rules are already planned under the Responsible Energy Development Act

8

Improve public access to information on the regulatory process for CCS, including pipeline integrity management plans.

Government will take steps to help the public access the information they need on CCS, including the regulatory process. 

9

Clarify that CCS operators can apply for access to conduct measurement, monitoring and verification or reclamation activities over the entire area of their carbon sequestration lease.

These recommendations will be considered within the larger context of surface rightsA review of the Surface Rights Act is already planned.  This includes  work with the Farmers’ Advocate and the Property Rights Advocate to ensure concerns are addressed.

10

Clarify the process and requirements for closing a CO2 storage site, the transfer of liabilities to the Government and the issuing of a closure certificate.

The public needs to be confident that CCS sites meet all of the closure requirements before the government assumes liability for them. 

11

Clarify details of the Post-Closure Stewardship Fund, including obligations from operators to contribute to this fund.

It is important that appropriate funds are collected for the Post-Closure Stewardship Fund, and that this fund is appropriately managed. 

The full report is available on Alberta Energy’s website at http://www.energy.alberta.ca/Initiatives/1438.asp.

More information about the science behind CCS and the projects currently underway in Alberta can be found online at http://www.solutionsstarthere.ca/.

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Media inquiries may be directed to:

Mike Feenstra
Press Secretary
Office of the Minister of Energy
780-643-9126
780-690-8109 (cell)
[email protected]

Bart Johnson
Director of Communications
Alberta Energy
780-422-3667
780-446-9190 (cell)
[email protected]

To call toll free within Alberta dial 310-0000.