BC: Update - CPA extremely disappointed as BC plans to add administrative burden to report carbon credit under the Low Carbon Fuel Standard

This past summer, the Ministry of Energy, Mines and Petroleum Resources consulted industry on elements of the BC Low Carbon Fuel Standard. The CPA provided submissions to the ministry on its proposed General Amendments and Compliance Penalty discussion papers.

The ministry recently announced their conclusions from the consultation. Despite the submissions and subsequent discussion with LCFS Director Michael Rensing, the ministry will continue to calculate the carbon intensity (CI) number for propane based on oil-refined product rather than from natural gas – even though over 80 per cent of propane in BC is derived from natural gas processing. A lower CI number can lead to greater credit generation for CPA member companies participating in the program.

The industry will be required as of January 1, 2021 to report their LCFS compliance for the generation of credits from the retail level as opposed to the producer level, where it was previously being reported. In submissions and discussions about the program, and in a letter to Energy, Mines and Petroleum Resources Minister Michelle Mungall, the CPA had argued against moving credit generation away from producers because it will create a significant administrative burden for retailers.

The CPA will continue to push the ministry to use a CI number that reflects reality: that most of the propane imported into BC is derived from natural gas. The proposed changes are not final – the BC government must decide if it will amend the current Act that governs the LCFS or introduce an entirely new Act. Either option will be executed in the spring session of the legislature.

The CPA will continue to work on this file to support members. For more information, please contact Darren Cunningham at darrencunningham@propane.ca.