4.1.4 Regulations in Canada

Canada shares jurisdictional responsibilities between federal and provincial jurisdiction. Issues that concern environmental protection fall under both regulatory authorities. Various constituents of the CCS chain thus fall under both regulations. However, storage issues are subject to provincial competency. Four provinces are currently proceeding with CCS regulations: Alberta, Saskatchewan, British Columbia and Nova Scotia. Their CCS regulations are currently in different development stages.

Alberta has already finalised its regulatory framework: in 2010 it enacted Alberta Carbon Capture and Storage Statutes Amendment Act (Gagnon, 2012). This Act basically amends a number of provincial statutes to facilitate CCS. Alberta government has the authority to grant licences and to lease for the injection of CO2. With respect to long-term stewardship the transfer of responsibilities back to the Crown (federal level) is foreseen after issuing a closure certificate. Before the issuance of this document, the lessee is required to contribute into a fund to cover the Crown's province's assumed liability, the costs of monitoring the site and other post-closure costs. Further amendments to the aforementioned Act were developed by Carbon Sequestration Tenure Regulation from 2011 (AR 68/2011, 2011). In it, the process for obtaining pore space tenure rights for carrying out CO2 geological storage is defined and the requirement to store in geological formations deeper than 1,000 meters below the surface is stipulated. The evaluation permit allows the permit holder to carry out activities to evaluate the suitability of a site for subsurface CO2 storage. The permit is valid for five years and is subject to administrative fees and measurement, monitoring and verification requirements. The regulation establishes details about drilling the wells and evaluation and testing of these wells, and foresees an injection duration period of fifteen years. Lessees must submit a monitoring plan for approval by the Minister of Energy every three years. Closure plans must also be submitted for approval every three years. CO2 storage operations will have to obtain other approvals, such as surface access and injection well licences. The Regulations from 2011 will expire on 30 April 2016 with the aim to be reviewed and amended, if necessary. Alberta Carbon Capture Storage and Funding Act from 2009 and the Carbon Capture Storage and Funding Act Regulation provide funding mechanism for the design, construction and operation of CCS projects.

Moreover, Alberta initiated a CCS Regulatory Framework Assessment, within which different working groups are identifying any other potential regulatory gaps associated with CCS deployment. Enhancements for issues such as geological site selection and closure criteria, post-closure stewardship fund inputs and monitoring, measurement, and verification requirements were recommended. The final report of the Regulatory Framework Assessment was planned to be ready by the end of 2012 (Gagnon, 2012). No further specifications have been found, though the date has passed.

In Saskatchewan, the Oil and Gas Conservation Act (Bill 157, 2010) has been amended to expand and clarify the provincial regulatory authority for CO2 storage. With these legislative amendments and Oil and Gas Conservation Regulations from 2012, barriers for CO2 storage operations have been lifted. The provisions in the amendment that relate to CO2 injection and storage refer to: regulation of the injection, storage and withdrawal of substances, including CO2 and other GHGs; revision and clarification of the term »substance«; regulation and measurement of the withdrawal and underground storage of substances (such as CO2) from and to a well (IEA GHG, 2012).

British Columbia released its Natural Gas Strategy in February, 2012. CCS is recognized as one of possible climate solutions. It was established that a regulatory framework and amendments to existing legislation are needed, possibly in cooperation with the BC Oil and Gas Commission. Some gaps have been identified such as site selection, monitoring, measurement, and verification and long-term liability issues. Legislative amendments are expected for 2013 (Gagnon, 2012).

In Nova Scotia, they have just started the activities to enable possible deployment of a pilot CCS project (Gagnon, 2012). Both an onshore and offshore option for storage was considered by the research consortium. They have issued a set of reports which include among others also regulatory/legal reports and risk management roadmaps.

Canadian provincial regulations, where available, are founded on the existing oil and gas regulatory practice. As such, the provinces decided for updating their existing regulatory framework rather than developing a comprehensive integrated CCS framework. However, similar to the USA, the driver for CO2 underground disposal operations in Canada are still enhanced oil/gas recovery operations and not CO2 geological storage itself. Further progress in forming the regulatory regime on provincial as well as on federal level is foreseen when the outcomes of the Alberta Regulatory Framework Assessment initiative are available (Baker and McKenzie, 2011).