Technology Innovation and Emissions Reduction Regulation

(Consolidated up to 270/2025) ALBERTA REGULATION 133/2019 Emissions Management and Climate Resilience Act TECHNOLOGY INNOVATION AND EMISSIONS REDUCTION REGULATION Table of Contents Part 1 Interpretation and Application 1 Interpretation 2 Incorporation of standards 3 Rules respecting large emitters Part 2 Emissions Reduction Opted‑in and Aggregate Facilities 4 Opted‑in facilities 5 Aggregate facilities Benchmarks 6 High‑performance benchmarks 7 Facility‑specific benchmarks 8 Compliance cost containment allocation benchmarks Allowable Emissions 9 Large emitters and opted‑in facilities — allowable emissions 10 Aggregate facilities — allowable emissions 11 Allocation rate 12 Duty to not exceed allowable emissions 13 Net emissions Compliance Cost Containment 14 Cost containment designation Reports 15 Compliance report 16 Annual forecasting report 17 Emissions reduction plan report Part 3 Emission Offsets, Emission Performance Credits and Fund Credits 18 Emission offset projects 19 Emission offsets 20 Emission performance credits 20.1 Sequestration credits 20.2 Capture recognition tonnes 20.3 Investment credits 20.4 Reactivated credits 21 Fund credits 22 Cancellation of and nature of emission offsets, emission performance credits, sequestration credits, capture recognition tonnes and fund credits Part 4 General Administration 23 Powers of Minister and director 24 Exemptions 24.1 Exemption — low‑emitting status 26 Duty to comply 27 Third party assurance providers 27.1 Refusal of verification Records 28 Request for confidentiality 29 Access to applications and reports 30 Publication 31 Record retention Enforcement 32 Audits 33 Offences 34 Penalties 35 Due diligence Transitional, Consequential Amendments, Repeal, Review and Expiry and Coming into Force 36 Transitional 37 Consequential amendments 38 Repeal 39 Review and expiry 40 Coming into force Schedules Part 1 Interpretation and Application Interpretation 1 (1) In this Regulation, (a) “Act” means, (i) until December 31, 2019, the Climate Change and Emissions Management Act , and (ii) on and after January 1, 2020, the Emissions Management and Climate Resilience Act ; (b) “aggregate facility” means a group of 2 or more conventional oil and gas facilities designated as an aggregate facility by the director under section 5; (c) “allowable emissions” means the allowable emissions (i) for a large emitter or opted‑in facility, as determined in accordance with section 9, or (ii) for an aggregate facility, as determined in accordance with section 10; (d) “annual forecasting report” means a report under section 16; (d.1) “associated emission offset” means an emission offset converted into a sequestration credit in accordance with section 20.1, which may be further converted into a capture recognition tonne in accordance with section 20.2; (e) “benchmark” means the emissions intensity assigned for a product for allocation purposes; (f) “benchmark unit” means the unit of measure of a product for a benchmark; (g) “biomass CO 2 emissions” means all emissions of carbon dioxide released from sources located at a facility as a result of the decomposition, fermentation, combustion or other chemical processes involving biomass; (g.1) “capture recognition tonne” means a capture recognition tonne converted from a sequestration credit in accordance with section 20.2; (h) “CO 2 e tonnes” in respect of a specified gas means the carbon dioxide equivalent tonnes determined in accordance with subsection (3); (i) “compliance cost containment allocation benchmark” means a benchmark assigned under section 8; (j) “compliance report” means a report under section 15; (k) “conventional oil and gas facility” means (i) a facility for extracting, from an underground geological deposit or reservoir, gas, oil or primary bitumen, (ii) a facility for processing gas, (iii) a facility for the primary processing of oil or primary bitumen, (iv) a facility for disposing of waste, in an underground geological formation, resulting from an activity described in subclauses (i) to (iii), (v) a facility for transporting, in a pipeline, gas, oil or primary bitumen, but does not include (A) any facility that constitutes a distribution system for the distribution of gas within a community to ultimate consumers, or (B) any facility for transporting oil, gas or primary bitumen across a provincial or international border, (vi) a facility for storing gas, oil or primary bitumen in the course of the gas, oil or primary bitumen being transported by a facility included in the definition in subclause (v), or (vii) a facility for supplying or transporting water in relation to an activity described in subclauses (i) to (vi) but does not include a large emitter or opted-in facility; (l) “cost containment designation” means a designation issued under section 14(6); (m) “department” means the department administered by the Minister; (n) “direct emissions” means the quantity of all specified gases released from sources located at a facility, expressed in CO 2 e tonnes, not including (i) biomass CO 2 emissions, or (ii) emissions from fuel used at a covered facility as defined in the Greenhouse Gas Pollution Pricing Act (Canada) and for which a fuel charge has been paid under that Act in respect of a time at which an exemption certificate applied in accordance with section 36 of that Act in relation to that covered facility; (o) “electricity facility” means a facility that produces electricity as a primary product or both electricity and industrial heat as primary products; (p) “emission offset” means an instrument serialized on the Alberta Emissions Offset Registry (i) on or after January 1, 2020, in recognition of a reduction in the release of a specified gas or a sequestration or geological sequestration of, or a capture of, carbon dioxide that meets the requirements of section 19, (ii) on or after January 1, 2018 and before January 1, 2020, in recognition of a reduction in the release of a specified gas or a sequestration of, or a capture of, carbon dioxide that met the requirements of section 16 of the Carbon Competitiveness Incentive Regulation (AR 255/2017) (repealed), or (iii) before January 1, 2018, in recognition of a reduction in the release of a specified gas or a sequestration of, or a capture of, carbon dioxide that met the requirements of section 7 of the Specified Gas Emitters Regulation (AR 139/2007) (expired); (q) “emission offset project” means a project undertaken to generate emission offsets; (r) “emission offset project developer” in respect of an emission offset project means the person registered as the project developer of the emission offset project on the Alberta Emissions Offset Registry; (s) “emission performance credit” means (i) an emission performance credit issued under section 20, (ii) an emission performance credit issued under section 17 of the Carbon Competitiveness Incentive Regulation (AR 255/2017) (repealed), or (iii) an emission performance credit issued under section 9 of the Specified Gas Emitters Regulation (AR 139/2007) (expired); (t) “emissions intensity” means the quantity of specified gases, expressed in CO 2 e tonnes, released in the production of a benchmark unit of a product; (u) “emissions reduction plan” means a plan or updated plan referred to in section 14(2) or 17(3); (v) “emissions reduction plan report” means a report under section 17; (w) “facility” means (i) a plant, structure, thing or site, or (ii) any 2 or more contiguous or adjacent plants, structures, things or sites (A) that are operated and function in an integrated fashion, and (B) for which the same person is the person responsible, where one or more activities listed in any of sections 2 to 11 of the Schedule of Activities to the Environmental Protection and Enhancement Act occur, including all the buildings, equipment, structures, machinery and vehicles that are part of the activity or activities; (x) “facility‑specific benchmark” means a benchmark assigned under section 7; (y) “forecasting facility” means a large emitter that has total regulated emissions of 1 000 000 CO 2 e tonnes or more in 2016 or a subsequent year; (z) “Fund” means the Technology Innovation and Emissions Reduction Fund continued by the Act; (aa) “fund credit” means a fund credit obtained under section 21; (bb) “high‑performance benchmark” means, for a year, a benchmark set out in the Table in Schedule 2 or established by the Minister under section 6; (bb.1) “investment credit” means an investment credit issued under section 20.3; (cc) “large emitter” means, subject to section 3, a facility that (i) has direct emissions of 100 000 CO 2 e tonnes or more in 2016 or a subsequent year, or (ii) imports more than 10 000 tonnes of hydrogen in 2023 or a subsequent year; (dd) “net emissions” means the net emissions for a regulated facility determined under section 13; (ee) “net geological sequestration” means the quantity of carbon dioxide that is sequestered in a geological formation, less the quantity of specified gases, expressed in CO 2 e tonnes, released as a result of the sequestration activity; (ff) “net sequestration” means the quantity of carbon dioxide sequestered in a sink, other than a geological formation, less the quantity of specified gases, expressed in CO 2 e tonnes, released as a result of the sequestration activity; (ff.1) “operator” means the person who, in respect of a conventional oil and gas facility, keeps records and submits reports under the Oil and Gas Conservation Act, Oil Sands Conservation Act or Pipeline Act to (i) the Alberta Energy Regulator, or (ii) the electronic information system called Petrinex that is administered by the Department of Energy and Minerals; (gg) “opted‑in facility” means a facility designated as an opted‑in facility under section 4; (hh) “person responsible” means, subject to subsection (2)(c), (i) where the release of the specified gas occurs at a conventional oil and gas facility, the operator, if any, of the conventional oil and gas facility, (ii) subject to subclause (i), where the release of the specified gas occurs at a facility that is the subject of an approval or registration under the Environmental Protection and Enhancement Act , the holder of the approval or registration, (iii) subject to subclause (i), where the release of the specified gas occurs at a facility that is not the subject of an approval or registration referred to in subclause (ii) but is the subject of an approval or other authorization issued by the Alberta Energy Regulator or the Alberta Utilities Commission, the holder of that approval or authorization, or (iv) subject to subclause (i), where the release of the specified gas occurs at a facility other than a facility described in subclause (ii) or (iii), the owner of the facility; (ii) “primary bitumen” means bitumen, other than oil sands in situ bitumen as defined in section 1(1)(j) of Schedule 2 or oil sands mining bitumen as defined in section 1(1)(k) of Schedule 2, that is extracted from a well; (jj) “primary processing” means any processing of oil or primary bitumen that is for the principal purpose of removing any of the following: (i) water; (ii) hydrocarbon liquids or gases; (iii) sulphur compounds; (iv) contaminants; (v) any combination of 2 or more things listed in subclauses (i) to (iv); (kk) “product” means (i) an end product or intermediate product produced by a regulated facility, or (ii) an input, output, process or other thing specified under subsection (4) as a product produced by a regulated facility; (ll) “production” means the quantity, expressed in the applicable benchmark unit, of a product produced by a regulated facility; (mm) “regulated facility” means an aggregate facility, large emitter or opted‑in facility; (nn) “renewable electricity facility” means an electricity facility that produces electricity from an energy resource that occurs naturally and that can be replenished or renewed within a human lifespan, including, but not limited to, (i) moving water, (ii) wind, (iii) heat from the earth, (iv) sunlight, and (v) sustainable biomass; (nn.1) “sequestration credit” means a sequestration credit converted from an emission offset in accordance with section 20.1; (oo) “specified gas” means a gas listed in the Specified Gas column of Schedule 1; (pp) “Standard for Completing Greenhouse Gas Compliance and Forecasting Reports” means the Standard for Completing Greenhouse Gas Compliance and Forecasting Reports, published by the department, as amended or replaced from time to time; (qq) “Standard for Developing Benchmarks” means the Standard for Developing Benchmarks, published by the department, as amended or replaced from time to time; (qq.1) “Standard for Direct Investment” means the Standard for Direct Investment, published by the department, as amended or replaced from time to time; (rr) “Standard for Greenhouse Gas Emission Offset Project Developers” means the Standard for Greenhouse Gas Emission Offset Project Developers, published by the department, as amended or replaced from time to time; (ss) “Standard for Validation, Verification and Audit” means the Standard for Validation, Verification and Audit, published by the department, as amended or replaced from time to time; (tt) “third party assurance provider” means a person who is eligible to be a third party assurance provider under section 27; (uu) “total regulated emissions” means the total regulated emissions for a regulated facility determined in accordance with section 13(3) or (4); (vv) “true‑up obligation” means the quantity by which a regulated facility’s total regulated emissions in a year exceeds the regulated facility’s allowable emissions for the year; (ww) “year” means a calendar year unless otherwise specified. (2) Except where otherwise indicated, for the purposes of this Regulation, the person responsible for (a) a large emitter in respect of a year is the person who is the person responsible for the large emitter on the last day of the year, (b) an opted‑in facility in respect of a year is the person who is the person responsible for the opted‑in facility on the last day of the year, and (c) an aggregate facility (i) in respect of the first year for which the aggregate facility is designated as an aggregate facility is the person responsible who signed the application under section 5(1), and (ii) in respect of any other year is the person who is the person responsible for the aggregate facility on the first day of the year, regardless of whether that person continues to satisfy the criteria set out in subsection (1)(hh) with respect to any facility that is part of the aggregate facility during the year. (2.1) Notwithstanding subsection (2), where an executor, administrator, receiver, receiver manager or trustee of a person responsible for a regulated facility has charge, management or control of the regulated facility, the executor, administrator, receiver, receiver manager or trustee, as the case may be, is also deemed to be the person responsible for that regulated facility for the purposes of this Regulation. (3) For the purposes of this Regulation, a quantity of a specified gas, expressed in tonnes, is converted into carbon dioxide equivalent tonnes by multiplying that quantity by the global warming potential set out for the specified gas in the Standard for Completing Greenhouse Gas Compliance and Forecasting Reports. (4) The director may specify an input, output, process or other thing as a product produced by a regulated facility for the purposes of this Regulation. (5) For the purposes of this Regulation, a large emitter or opted‑in facility is considered to begin commercial operation on January 1 of the year immediately following the year in which the large emitter or opted‑in facility first produces a product. (6) Notwithstanding subsection (5), the director may designate the year of commercial operation that a large emitter or opted‑in facility is in for the purposes of this Regulation if (a) the large emitter or opted‑in facility (i) is in its 3rd or 4th year of commercial operation and is experiencing or has experienced a significant disruption resulting in the large emitter or opted‑in facility having significantly less production than anticipated for an extended period of time, (ii) is undergoing or has undergone a significant expansion, or (iii) is undergoing or has undergone a significant change, and (b) the director considers it appropriate to make the designation. (7) The director shall not make more than one designation under subsection (6) with respect to a particular significant disruption, significant expansion or significant change. (8) In determining whether it is appropriate to make a designation in respect of a large emitter or opted‑in facility under subsection (6), the director must consider (a) in the case of a significant disruption experienced by a large emitter or opted‑in facility, the nature and extent of the delay in reaching or sustaining anticipated production levels and the effect of the delay on specified gas emissions, (b) in the case of a significant expansion or significant change undergone by a large emitter or opted‑in facility, the nature and extent of the expansion or change and the technologies employed in the expansion or change that affect specified gas emissions, and (c) any other matter that in the director’s opinion is relevant to determining whether it is fair and reasonable to make the designation considering the objective of reducing specified gas emissions. (9) Notwithstanding subsection (5), the director may, on request of the person responsible for a large emitter or opted‑in facility that has produced a product for less than 3 years, designate that the large emitter or opted‑in facility is in its 3rd or a subsequent year of commercial operation for the purposes of this Regulation. (10) The director shall not make a designation under subsection (9) unless the director receives the request of the person responsible for the large emitter or opted‑in facility on or before November 30 of the year for which the designation is requested. (11) For the purposes of sections 8(4)(a) and 14(6)(c) and (12)(e), whether the person responsible for a large emitter or opted‑in facility is likely to experience economic hardship attributable to the compliance costs incurred in respect of the large emitter or opted‑in facility must be determined in accordance with the Standard for Developing Benchmarks. AR 133/2019 s1;132/2020;251/2022;98/2023;270/2025 Incorporation of standards 2 Pursuant to section 61 of the Act, the following standards published by the department, as amended or replaced from time to time, are incorporated into and form part of this Regulation: (a) Standard for Completing Greenhouse Gas Compliance and Forecasting Reports; (b) Standard for Developing Benchmarks; (b.1) Standard for Direct Investment; (c) Standard for Greenhouse Gas Emission Offset Project Developers; (d) Standard for Validation, Verification and Audit. AR 133/2019 s2;270/2025 Rules respecting large emitters 3 (1) This Regulation does not apply to a facility, other than an opted‑in facility or an aggregate facility, until the year after the earlier of the year in which the facility (a) first has direct emissions of 100 000 CO 2 e tonnes or more, and (b) first imports more than 10 000 tonnes of hydrogen in 2023 or a subsequent year. (2) An opted-in facility, or a facility that is part of an aggregate facility, that meets a threshold under subsection (1)(a) or (b) (a) continues (i) as an opted-in facility, or (ii) as part of the aggregate facility, as the case may be, for the year in which the threshold under subsection (1)(a) or (b) is met, and (b) becomes a large emitter the following year. AR 133/2019 s3;251/2022 Part 2 Emissions Reduction Opted‑in and Aggregate Facilities Opted‑in facilities 4 (1) In this section, (a) “emissions‑intensive‑trade‑exposed sector” means a sector (i) that has an emissions intensiveness that equals or exceeds 1% and a trade exposure that equals or exceeds 10%, (ii) that has an emissions intensiveness that equals or exceeds 3%, or (iii) that has a trade exposure that equals or exceeds 80%; (b) “emissions intensiveness” in respect of a sector means the full carbon pricing costs of the sector divided by the gross value added for the sector; (c) “full carbon pricing costs” means full carbon pricing costs as established in accordance with the Standard for Developing Benchmarks; (d) “sector” means the part of the economy consisting of entities that produce goods or services that are the same or substantially the same; (e) “trade exposure” means the ratio of A to B where A is the total value in dollars of all end products produced by the sector in Alberta that are exported from Alberta plus the total value in dollars of all end products produced by the sector that are imported into Alberta; B is the total value in dollars of all end products produced by the sector in Alberta plus the total value in dollars of all end products produced by the sector that are imported into Alberta. (2) Subject to subsection (11), the person responsible for a facility may apply to the director for the facility to be designated as an opted‑in facility. (3) An application under subsection (2) must (a) be submitted in the form and manner prescribed by the director, (b) include the information required by the director, and (c) be received by the director on or before September 1 of the year preceding the year in which the designation is requested to be effective, unless otherwise authorized by the director in writing. (4) The director may designate a facility as an opted‑in facility if (a) the application meets the requirements under subsection (3), and (b) the director is satisfied that (i) the facility competes directly with a facility to which this Regulation applies, or (ii) the facility is in an emissions‑intensive‑trade‑exposed sector and that the facility (A) had direct emissions of 2000 CO 2 e tonnes or more in 2017 or a subsequent year, or (B) is likely to have direct emissions of 2000 CO 2 e tonnes or more in its 3rd year of commercial operation. (5) The director shall notify the person responsible for a facility in writing of the director’s decision as to whether to designate the facility as an opted‑in facility. (6) The person responsible for an opted‑in facility may apply to the director for the designation of the facility as an opted‑in facility to be revoked. (7) An application under subsection (6) must (a) be submitted in the form and manner prescribed by the director, (b) contain the information required by the director, and (c) be received by the director on or before December 31 of the year preceding the year in which the revocation is requested to be effective. (8) The director may revoke the designation of a facility as an opted‑in facility on the application of the person responsible if (a) the application meets the requirements under subsection (7), and (b) no specified gases were geologically sequestered at the opted‑in facility in any year. (9) The director shall notify the person responsible for an opted‑in facility in writing of the director’s decision as to whether to revoke the designation of the opted‑in facility as an opted‑in facility. (10) The person responsible for a facility that has been notified that the designation of the facility as an opted‑in facility has been revoked shall submit the compliance report for the last year that the facility was designated as an opted‑in facility on or before June 30 of the following year. (11) The person responsible for a renewable electricity facility is not eligible to apply for the renewable electricity facility to be designated as an opted‑in facility if (a) the renewable electricity facility has a total nominal capacity of less than 5 megawatts, (b) the renewable electricity facility is part of a renewable electricity program in respect of which a participant has entered into a renewable electricity support agreement under section 7(4) of the Renewable Electricity Act , or (c) in the opinion of the director, an economic benefit is being provided in respect of the renewable electricity facility under a program or other scheme that is attributable to the electricity produced at the renewable electricity facility having been produced from an energy resource referred to in section 1(1)(nn). AR 133/2019 s4;132/2020;251/2022;270/2025 Aggregate facilities 5 (1) The person responsible for 2 or more conventional oil and gas facilities may apply to the director (a) for a group of 2 or more of the conventional oil and gas facilities to be designated as an aggregate facility, or (b) for an amendment of a designation held by the person responsible under subsection (3) to add a conventional oil and gas facility to an aggregate facility. (2) An application under subsection (1) must (a) be submitted in the form and manner prescribed by the director, and (b) include the information required by the director. (2.1) Repealed AR 251/2022 s5. (2.2) An application under subsection (1) must be received by the director on or before November 15 of the year in which the designation or the amendment to the designation, as the case may be, is requested to be effective. (3) The director may designate a group of two or more conventional oil and gas facilities as an aggregate facility, or amend a designation to add a conventional oil and gas facility to an aggregate facility, if (a) the application meets the requirements under subsections (2) and (2.2), (b) the director is satisfied that the same person is the person responsible for each of the conventional oil and gas facilities to be included in the aggregate facility, and (c) none of the conventional oil and gas facilities to be included in the aggregate facility is a large emitter, an opted‑in facility or a part of another aggregate facility. (4) The director shall notify the person responsible for the conventional oil and gas facilities in respect of which an application is made under subsection (1) in writing of the director’s decision as to whether to (a) designate the group of conventional oil and gas facilities as an aggregate facility, or (b) amend the designation of an aggregate facility to add a conventional oil and gas facility. (5) Notwithstanding any change in the person responsible for a conventional oil and gas facility or other circumstance that could affect the inclusion of a conventional oil and gas facility in an aggregate facility, subject to subsection (8), (a) if a conventional oil and gas facility is part of an aggregate facility on January 1 of a year, the conventional oil and gas facility continues to be part of the aggregate facility for the whole year, or (b) if a conventional oil and gas facility is added to an aggregate facility during a year, the conventional oil and gas facility is considered to be part of the aggregate facility for the whole year. (6) Subject to subsection (5), the director may amend the designation of an aggregate facility to remove a conventional oil and gas facility from the aggregate facility on the request of the person responsible if the request is received on or before December 1 of the year preceding the year for which the amendment is requested to be effective. (7) The director shall amend the designation of an aggregate facility to remove a conventional oil and gas facility from the aggregate facility if (a) the conventional oil and gas facility ceases to be a conventional oil and gas facility, (b) the conventional oil and gas facility has direct emissions of 100 000 CO 2 e tonnes or more in a year, (b.1) the conventional oil and gas facility imports more than 10 000 tonnes of hydrogen in a year, (c) the conventional oil and gas facility is decommissioned, (d) the person responsible for the conventional oil and gas facility determined in accordance with the criteria in section 1(1)(hh) has changed, unless the same change has occurred with respect to every other conventional oil and gas facility included in the aggregate facility, or (e) the conventional oil and gas facility is designated as an opted-in facility. (8) The amendment of a designation under subsection (6) or (7) is effective (a) at the end of the day on December 31 of the year (i) for which the amendment under subsection (6) is requested to be effective, or (ii) in which an event referred to in subsection (7)(a) to (d) occurs, or (b) immediately on the conventional oil and gas facility being designated as an opted-in facility as referred to in subsection (7)(e). (9) The person responsible for an aggregate facility may apply to the director for the aggregate facility designation to be revoked. (10) An application under subsection (9) must (a) be submitted in the form and manner prescribed by the director, (b) contain the information required by the director, and (c) be received by the director on or before December 1 of the year preceding the year in which the revocation is requested to be effective. (11) The director may revoke the designation of a group of conventional oil and gas facilities as an aggregate facility (a) on the application of the person responsible if the application meets the requirements under subsection (10), or (b) if only one conventional oil and gas facility remains in the aggregate facility. (12) The revocation of a designation of a group of conventional oil and gas facilities as an aggregate facility may only be made effective at the end of the day on December 31 of a year. (13) The director shall notify the person responsible for an aggregate facility in writing of the director’s decision as to whether to revoke the designation of the group of conventional oil and gas facilities as an aggregate facility. (14) The person responsible for an aggregate facility that has been notified that the designation of the group of conventional oil and gas facilities as an aggregate facility has been revoked shall submit the compliance report for the last year that the designation was in effect on or before June 30 of the following year. AR 133/2019 s5;132/2020;251/2022 Benchmarks High‑performance benchmarks 6 (1) Subject to subsection (2), a product listed in the Table in Schedule 2 has the respective high‑performance benchmark and benchmark unit listed in the Table in Schedule 2. (2) The Minister may, by order, (a) establish a high‑performance benchmark and benchmark unit for a product not listed in the Table in Schedule 2, or (b) in the case of a product that is listed in the Table in Schedule 2, substitute a high‑performance benchmark and benchmark unit in place of the high‑performance benchmark and benchmark unit listed in the Table. (3) An order under subsection (2) must be published on a publicly accessible page on the department’s website. Facility‑specific benchmarks 7 (1) If the director considers it appropriate to do so, the director may, on the director’s own initiative or on the application of the person responsible for a regulated facility under subsection (2), (a) assign a facility‑specific benchmark and benchmark unit for a product of a regulated facility and specify the year for which the facility‑specific benchmark and benchmark unit is applicable, or (b) subject to subsection (6), at any time review a facility‑specific benchmark or benchmark unit for a product of the regulated facility and assign a new facility‑specific benchmark, a new benchmark unit, or both, and specify the year for which the facility‑specific benchmark, benchmark unit or both is applicable. (2) The person responsible for a regulated facility may apply to the director (a) for the assignment of a facility‑specific benchmark and benchmark unit for a product of the regulated facility that does not have a facility‑specific benchmark, or (b) for the review of a facility‑specific benchmark or benchmark unit for a product of the regulated facility and the assignment of a new facility‑specific benchmark, benchmark unit or both. (2.1) An application under subsection (2) must be received by the director on or before (a) September 1, in the case of a large emitter or opted‑in facility, or (b) December 1, in the case of an aggregate facility, of the year in which the person responsible first intends to use the facility‑specific benchmark, the benchmark unit or both to determine the allowable emissions for the regulated facility. (3) An application under subsection (2) must (a) be submitted in the form and manner prescribed by the director, (b) include the information required by the director, and (c) be verified by a third party assurance provider as required by the director. (4) The person responsible for a regulated facility shall comply with the rules and other requirements set out in Part 1 of the Standard for Developing Benchmarks in preparing and submitting an application for (a) the assignment of a facility‑specific benchmark and benchmark unit, or (b) the review of a facility‑specific benchmark or benchmark unit for a product of the regulated facility and the assignment of a new facility‑specific benchmark, a new benchmark unit or both. (5) A third party assurance provider shall comply with the rules and other requirements set out in Part 1 of the Standard for Validation, Verification and Audit in providing a verification referred to in subsection (3)(c). (6) The director shall not review a facility‑specific benchmark for a product of a regulated facility and assign a new facility‑specific benchmark for the product unless the director is of the opinion that (a) the facility‑specific benchmark may be inaccurate, (b) the regulated facility has undergone a significant expansion or significant change, (c) the product has significantly changed, or (d) production of the product by the regulated facility has decreased significantly and the decrease is attributable to the provisions of (i) an enactment of Alberta, other than the Act or this or another regulation under the Act, or (ii) an enactment of Canada or any other province or territory of Canada. (7) Each facility‑specific benchmark for a product of a regulated facility must be determined in accordance with the Standard for Developing Benchmarks. (8) In assigning a facility‑specific benchmark for a product of a regulated facility, the director may specify that a product of the facility that would otherwise have a high‑performance benchmark is included in the product for which the facility‑specific benchmark is assigned and that, accordingly, the high‑performance benchmark for the product does not apply. (9) The director shall give the person responsible for a regulated facility written notice of the facility‑specific benchmarks and benchmark units for the products of the regulated facility. AR 133/2019 s7;270/2025 Compliance cost containment allocation benchmarks 8 (1) Subject to subsection (4), if a cost containment designation is in effect for a large emitter or opted‑in facility for a year, the director may (a) on the application of the person responsible for the large emitter or opted‑in facility under subsection (2), assign a compliance cost containment allocation benchmark for the year for any product, except electricity, of the large emitter or opted‑in facility that has a high‑performance benchmark or facility‑specific benchmark for the year, or (b) subject to subsection (5), on the director’s own initiative or on the application of the person responsible for the large emitter or opted‑in facility, at any time review a compliance cost containment allocation benchmark for a product of a large emitter or opted‑in facility and assign a new compliance cost containment allocation benchmark for the product and specify the year for which the compliance cost containment allocation benchmark is applicable. (2) The person responsible for a large emitter or opted‑in facility that is applying for a cost containment designation or for which a cost containment designation is in effect may apply to the director (a) to receive a compliance cost containment allocation benchmark for a product of the large emitter or opted‑in facility for a year that the cost containment designation is being applied for or is in effect, or (b) for a review of a compliance cost containment allocation benchmark. (3) An application under subsection (2) must (a) be submitted in the form and manner prescribed by the director, (b) contain the information required by the director, and (c) be submitted on or before March 31 of the year following the year in which the person responsible wants to use a compliance cost containment allocation benchmark for the product in determining the allowable emissions for the large emitter or opted‑in facility. (4) The director may assign a compliance cost containment allocation benchmark for a product of a large emitter or opted‑in facility for a year only if (a) the person responsible for the large emitter or opted‑in facility is likely to experience economic hardship in the year attributable to the compliance costs incurred in respect of the large emitter or opted‑in facility after taking into account the combined effects of (i) the operation of section 13(11) in respect of the large emitter or opted‑in facility, (ii) the total amount of any benefits that have been, are being or will be provided in respect of the year to the person responsible for the large emitter or opted‑in facility in respect of the large emitter or opted‑in facility under an initiative of the Government of Alberta, or an agency of the Government of Alberta, that are funded out of the Fund, and (iii) any compliance cost containment allocation benchmarks the director has assigned or is considering assigning for other products of the large emitter or opted‑in facility for the year, and (b) the director is satisfied that the product constitutes a significant portion of the total production of the large emitter or opted‑in facility or is otherwise fundamental to the continued operation of the large emitter or opted‑in facility. (5) The director may assign a new compliance cost containment allocation benchmark for a product if the director is of the opinion that there is an inaccuracy in the data on which the existing compliance cost containment allocation benchmark for the product was based. (6) Each compliance cost containment allocation benchmark for a product of a facility must be determined in accordance with the Standard for Developing Benchmarks. AR 133/2019 s8;251/2022;270/2025 Allowable Emissions Large emitters and opted‑in facilities — allowable emissions 9 (1) Subject to subsections (2) and (3), the quantity of allowable emissions, expressed in CO 2 e tonnes, for a large emitter or opted‑in facility for a year is determined in accordance with the following formula: AE = ∑ (AR i‑Y x P i ) – ((HPB E‑Y x I E ) + (HPB Hy‑Y x I Hy ) + (HPB IHe‑Y x I He )) i=1 where AE is the quantity of allowable emissions, expressed in CO 2 e tonnes, for the large emitter or opted‑in facility for the year; AR i‑Y is the allocation rate for year Y for each product i as determined in accordance with section 11; i is each product of the large emitter or opted‑in facility that has an allocation rate; Y is the year; P i is the production of each product i for the large emitter or opted‑in facility for the year; HPB E‑Y is the high‑performance benchmark for year Y for electricity; I E is the electricity that is imported by the large emitter or opted‑in facility, expressed in megawatt hours, during the year; HPB Hy‑Y is the high‑performance benchmark for year Y for hydrogen; I Hy is the quantity of hydrogen, expressed in tonnes, that is imported by a facility during the year which is not used for the production of any product with a benchmark unit of Alberta complexity weighted barrel unless that use is for stationary fuel combustion; HPB IHe‑Y is the high‑performance benchmark for year Y for industrial heat; I He is the quantity of heat, expressed in gigajoules, that is imported by the large emitter or opted‑in facility during the year. (2) If the director has assigned a compliance cost containment allocation benchmark for a product of a large emitter or opted‑in facility for which a cost containment designation is in effect, the formula in subsection (1) shall be read as follows with respect to the year for which the compliance cost containment allocation benchmark is assigned: AE = ∑ (AR i‑Y x P i ) – ((HPB E‑Y x I E ) + (HPB Hy‑Y x I Hy ) + (HPB IHe‑Y x I He )) i=1 + ∑ (BCCA j‑Y x P j ) j=1 where each term that is given a meaning in subsection (1) has that meaning; BCCA j‑Y is the compliance cost containment allocation benchmark for year Y for each product j; j is each product of the large emitter or opted‑in facility that has a compliance cost containment allocation benchmark for year Y; P j is the production of each product j for the large emitter or opted‑in facility for year Y. (3) Repealed AR 251/2022 s7. AR 133/2019 s9;132/2020;251/2022;270/2025 Aggregate facilities — allowable emissions 10 (1) Subject to subsection (2), the quantity of allowable emissions, expressed in CO 2 e tonnes, for an aggregate facility for a year is determined in accordance with the following formula: AE = ∑ (AR i‑Y x P i ) i=1 where AE is the quantity of allowable emissions, expressed in CO 2 e tonnes, for the aggregate facility for the year; AR i –Y is the allocation rate for year Y for each product i as determined in accordance with section 11; i is each product of the aggregate facility that has an allocation rate; Y is the year; P i is the production of each product i for the aggregate facility for the year. (2) If the quantity determined under subsection (1) for a year is less than zero, the aggregate facility has zero allowable emissions for the year. Allocation rate 11 For the purposes of sections 9 and 10, the allocation rate for a product of a regulated facility for a year is the greater of (a) the high‑performance benchmark for the product for the year, and (b) the facility‑specific benchmark for the product for the year. Duty to not exceed allowable emissions 12 (1) The person responsible for a large emitter or opted‑in facility, other than an electricity facility, that is in its 3rd or subsequent year of commercial operation shall comply with the requirement that the net emissions for the large emitter or opted‑in facility for a year shall not exceed the allowable emissions for the large emitter or opted‑in facility for the year. (2) The person responsible for an aggregate facility shall comply with the requirement that the net emissions for the aggregate facility for a year shall not exceed the allowable emissions for the aggregate facility for the year. (3) The person responsible for an electricity facility shall comply with the requirement that the net emissions for the electricity facility for a year shall not exceed the allowable emissions for the electricity facility for the year. Net emissions 13 (1) In this section, (a) “Class III well” means a well that is classified as a Class III well under Directive 051: Injection and Disposal Wells — Well Classifications, Completions, Logging, and Testing Requirements, published by the Alberta Energy Regulator, as amended from time to time; (b) “raw gas” means raw gas as defined in the Oil and Gas Conservation Act . (2) For the purposes of section 12, the quantity of net emissions, expressed in CO 2 e tonnes, for a regulated facility for a year is determined in accordance with the following formula: NE = TRE – (EO + EPC + FC + SC + IC) where NE is the quantity of net emissions, expressed in CO 2 e tonnes, for the regulated facility for the year; TRE is the quantity of total regulated emissions determined in accordance with subsection (3) or (4), whichever applies; EO is the quantity of specified gases, expressed in CO 2 e tonnes, represented by the emission offsets used for the regulated facility for the year, in accordance with the rules set out in this section; EPC is the quantity of specified gases, expressed in CO 2 e tonnes, represented by the emission performance credits used for the regulated facility for the year, in accordance with the rules set out in this section; FC is the quantity of specified gases, expressed in CO 2 e tonnes, represented by the fund credits used for the regulated facility for the year, in accordance with the rules set out in this section; SC is the quantity of specified gases, expressed in CO 2 e tonnes, represented by the sequestration credits used for the regulated facility for the year, in accordance with the rules set out in this section. IC is the quantity of specified gases, expressed in CO 2 e tonnes, represented by the investment credits used for the regulated facility for the year, in accordance with the rules set out in this section. (3) For the purposes of subsection (2), the quantity of total regulated emissions, expressed in CO 2 e tonnes, for a large emitter or opted‑in facility for a year is determined in accordance with the following formula: TRE = DE – ICO 2 + ECO 2 + UCO 2 – CRT where TRE is the quantity of total regulated emissions, expressed in CO 2 e tonnes, for the large emitter or opted‑in facility for the year; DE is the direct emissions for the large emitter or opted‑in facility for the year; ICO 2 is the quantity of carbon dioxide, expressed in tonnes, that the large emitter or opted-in facility imported during the year from another regulated facility, not including (a) the quantity of biomass CO 2 emissions, or (b) any carbon dioxide removed from raw gas and disposed of as an acid gas stream to an underground formation through a Class III well in a scheme approved under section 39(1)(d) of the Oil and Gas Conservation Act ; ECO 2 is the quantity of carbon dioxide, expressed in tonnes, that the large emitter or opted-in facility exported during the year, not including (a) the quantity of biomass CO 2 emissions, or (b) any carbon dioxide removed from raw gas and disposed of as an acid gas stream to an underground formation through a Class III well in a scheme approved under section 39(1)(d) of the Oil and Gas Conservation Act ; UCO 2 is the quantity of carbon dioxide, expressed in tonnes, used by the large emitter or opted‑in facility as feedstock for the production of urea during the year; CRT is the quantity of carbon dioxide, expressed in tonnes, represented by capture recognition tonnes used for the regulated facility for the year, in accordance with the rules set out in this section. (3.1) The person responsible for a large emitter or opted‑in facility shall comply with the following rules in using a capture recognition tonne in determining the total regulated emissions for the large emitter or opted‑in facility under this section: (a) a capture recognition tonne may only be used for the large emitter or opted‑in facility from which the carbon dioxide that was geologically sequestered for the associated emission offset was captured; (b) a capture recognition tonne may only be used once; (c) a capture recognition tonne in recognition of a net geological sequestration that occurred in a year may only be used for that year. (4) For the purposes of subsection (2), the quantity of total regulated emissions for an aggregate facility, expressed in CO 2 e tonnes, for a year is determined in accordance with the following formula: TRE = E SFC + E F + ECO 2 A where TRE is the quantity of total regulated emissions, expressed in CO 2 e tonnes, for the aggregate facility for the year;

E SFC is the quantity of specified gas emissions, expressed in CO 2 e tonnes, not including (a) the quantity of biomass CO 2 emissions, or (b) the quantity of emissions from fuel used at a covered facility as defined in the Greenhouse Gas Pollution Pricing Act (Canada) and for which a fuel charge has been paid under that Act in respect of a time at which an exemption certificate under section 36 of that Act applied in relation to that covered facility, resulting from the combustion of solid, liquid or gaseous fuel from stationary fuel combustion devices at an aggregate facility for the primary purpose of providing useful heat, or energy, for industrial, commercial or institutional use; E F is the quantity of specified gas emissions from flaring, expressed in CO 2 e tonnes, not including (a) the quantity of biomass CO 2 emissions, or (b) the quantity of emissions from fuel used at a covered facility as defined in the Greenhouse Gas Pollution Pricing Act (Canada) and for which a fuel charge has been paid under that Act in respect of a time at which an exemption certificate under section 36 of that Act applied in relation to that covered facility, resulting from the controlled combustion of a gas or liquid stream produced at the facility, used for routine, non‑routine or emergency disposal of a hazardous waste stream, where the main purpose is not energy production; ECO 2 A is the quantity of carbon dioxide, expressed in tonnes, not including biomass CO 2 emissions, resulting from the combustion of solid, liquid or gaseous fuel from stationary fuel combustion devices at an aggregate facility for the primary purpose of providing useful heat, or energy, for industrial, commercial or institutional use, that the aggregate facility exported during the year. (5) The person responsible for a regulated facility shall comply with the following rules in using an emission offset in determining the net emissions for the regulated facility under this section: (a) an emission offset may only be used by the person responsible that holds the emission offset; (b) an emission offset may only be used once unless it has been reactivated under section 20.4; (c) an emission offset may only be used if it has been verified as required by section 18(2); (d) an emission offset serialized on the Alberta Emissions Offset Registry in recognition of a reduction of specified gas emissions or a net sequestration, net geological sequestration or capture of carbon dioxide that occurred in 2014 or a previous year may only be used for 2020 or a previous year; (e) an emission offset serialized on the Alberta Emissions Offset Registry in recognition of a reduction of specified gas emissions or a net sequestration, net geological sequestration or capture of carbon dioxide that occurred in 2015 or 2016 may only be used for 2021 or a previous year; (f) an emission offset serialized on the Alberta Emissions Offset Registry in recognition of a reduction of specified gas emissions or a net sequestration, net geological sequestration or capture of carbon dioxide that occurred in any of the years 2017 to 2022 may only be used for a year within the 9‑year period beginning with the year in which the reduction of specified gas emissions or net sequestration, net geological sequestration or capture of carbon dioxide occurred; (g) an emission offset serialized on the Alberta Emissions Offset Registry in recognition of a reduction of specified gas emissions or a net sequestration or net geological sequestration of carbon dioxide that occurred in 2023 or a subsequent year may only be used for a year within the 6-year period beginning with the year in which the reduction of specified gas emissions or net sequestration or net geological sequestration of carbon dioxide occurred. (6) The person responsible for a regulated facility shall comply with the following rules in using an emission performance credit in determining the net emissions for the regulated facility under this section: (a) an emission performance credit created in a year may only be used for a subsequent year; (b) an emission performance credit may only be used by the person responsible that holds the emission performance credit; (c) an emission performance credit may only be used once unless it has been reactivated under section 20.4; (d) an emission performance credit issued in respect of 2014 or a previous year may only be used for 2020 or a previous year; (e) an emission performance credit issued in respect of 2015 or 2016 may only be used for 2021 or a previous year; (f) an emission performance credit issued in respect of any of the years 2017 to 2022 may only be used for a year within the 8‑year period after the year in respect of which the emission performance credit is issued; (g) an emission performance credit issued in respect of 2023 or a subsequent year may only be used for a year within the 5 year period after the year in respect of which the emission performance credit is issued. (6.1) The person responsible for a regulated facility shall comply with the following rules in using a sequestration credit in determining the net emissions for the regulated facility under this section: (a) a sequestration credit may only be used by the person responsible that holds the sequestration credit; (b) a sequestration credit may only be used once unless it has been reactivated under section 20.4; (c) a sequestration credit may only be used if it is converted from an emission offset that has been verified as required by section 18(2); (d) a sequestration credit may only be used for a year within the 6‑year period beginning with the year in which the net geological sequestration of the associated emission offset occurred. (6.2) The person responsible for a regulated facility shall comply with the following rules when using investment credits to determine the net emissions for the regulated facility under this section: (a) an investment credit may be only used for one year within the 5‑year period beginning with the year in which the eligible investment, as defined in section 20.3, occurred; (b) an investment credit may be only used by the person responsible that obtained the investment credit; (c) an investment credit may be only used once; (d) an investment credit may be only used for the 2026 compliance year or later. (7) The person responsible for a regulated facility shall comply with the following rules in using a fund credit in determining the net emissions for the regulated facility under this section: (a) a fund credit may only be used once; (b) unless otherwise authorized by the director in writing, a fund credit obtained on or before June 30 in a year may only be used for the previous year; (c) unless otherwise authorized by the director in writing, a fund credit obtained after June 30 in a year may only be used for that year; (d) a fund credit may only be used by the person responsible that obtained the fund credit and may only be used in respect of the regulated facility in respect of which it was obtained. (8) The person responsible for a regulated facility shall not use an emission offset, emission performance credit, sequestration credit, investment credit or fund credit to determine the net emissions for the regulated facility under this section unless, (a) in the case of an emission offset, emission performance credit, sequestration credit or investment credit, the credit is held by the person responsible on the relevant date, or (b) in the case of a fund credit, the credit is obtained by the person responsible on or before the relevant date. (8.1) For the purposes of subsection (8), the relevant date is (a) the date the compliance report for the year is submitted, or (b) the date on which the compliance report is required to be submitted for that year, if the report is not submitted on or before that date. (9) Subject to subsection (11), for the purposes of determining the net emissions for a regulated facility for a year under this section, the person responsible for the regulated facility shall not use (a) emission offsets, (b) emission performance credits, (c) sequestration credits, and (d) investment credits for more than a combined maximum of the applicable percentage set out in the following table of the true-up obligation for the regulated facility for the year. Combined Maximum Percentage of True-up Obligation Year(s) Percentage 2023 or earlier 60% 2024 70% 2025 80% 2026 or a subsequent year 90% (10) Subject to subsection (11), for the purposes of determining the net emissions for a regulated facility for a year under this section, the person responsible for the regulated facility shall not use (a) emission offsets serialized on the Alberta Emissions Offset Registry in recognition of a reduction in specified gas emissions or a net sequestration, net geological sequestration or capture of carbon dioxide that occurred in a year before 2017, and (b) emission performance credits issued in respect of a year before 2017 for more than a combined maximum of 40% of the true‑up obligation for the regulated facility. (11) Subsections (9) and (10) do not apply to a regulated facility for which a cost containment designation is in effect. (12) The person responsible for a regulated facility in respect of a year shall determine the net emissions for the year on or before the date on which the compliance report is required to be submitted for that year. AR 133/2019 s13;132/2020;251/2022;270/2025 Compliance Cost Containment Cost containment designation 14 (1) The person responsible for a large emitter or opted‑in facility with a first year of commercial operation prior to 2023 may apply to the Minister for a cost containment designation in respect of the large emitter or opted‑in facility. (2) An application under subsection (1) must (a) be submitted in the form and manner prescribed by the Minister, (b) include financial statements for the large emitter or opted‑in facility that have been audited, as provided for by the Standard for Validation, Verification and Audit, by a professional accounting firm registered under the Chartered Professional Accountants Act and authorized to perform an audit engagement, (c) include an emissions reduction plan that must (i) be submitted in the form and manner prescribed by the Minister, (ii) include the information required by the Minister, and (iii) be validated by a third party assurance provider, (d) include a statement of the total amount of any benefits that have been, are being or will be provided to the person responsible for the large emitter or opted‑in facility in respect of the large emitter or opted‑in facility under an initiative of the Government of Alberta or an agency of the Government of Alberta, (e) include any other information required by the Minister, (f) be certified by the person responsible for the large emitter or opted‑in facility in the manner required by the Minister, and (g) be received by the Minister on or before March 31 of the year following the first year in respect of which the designation is requested to be effective. (3) The person responsible for a large emitter or opted‑in facility shall comply with the rules and other requirements set out in Part 1 of the Standard for Developing Benchmarks in preparing and submitting (a) an application for a cost containment designation, and (b) an emissions reduction plan. (4) An auditor shall comply with the rules and other requirements set out in Part 1 of the Standard for Validation, Verification and Audit in providing an audit referred to in subsection (2)(b). (5) A third party assurance provider shall comply with the rules and other requirements set out in Part 1 of the Standard for Validation, Verification and Audit in providing a validation referred to in subsection (2)(c)(iii). (6) The Minister may issue a cost containment designation in respect of a large emitter or opted‑in facility to the person responsible for the large emitter or opted‑in facility if (a) the application meets the requirements under subsection (2), (b) the large emitter or opted‑in facility produces a product, other than electricity, that has a high‑performance benchmark or a facility‑specific benchmark, (c) the person responsible for the large emitter or opted‑in facility is likely to experience economic hardship attributable to the compliance costs incurred in respect of the large emitter or opted‑in facility for one or more years for which the designation is requested, and (d) implementation of the emissions reduction plan will reduce the emissions intensity with respect to the large emitter or opted‑in facility. (7) The Minister may refuse to issue a cost containment designation in respect of a large emitter or opted‑in facility to the person responsible for the large emitter or opted‑in facility in any of the following circumstances: (a) the person responsible for the large emitter or opted‑in facility is not in compliance with the Act or the regulations under the Act or any other enactment under the administration of the Minister with respect to the large emitter or opted‑in facility; (b) the large emitter or opted‑in facility is a subject of, or is subject to, (i) receivership, insolvency or bankruptcy actions or proceedings, (ii) proceedings under the Companies’ Creditors Arrangement Act (Canada), or (iii) seizure, foreclosure, distress or other enforcement actions or proceedings; (c) the total amount of one or more benefits that have been, are being or will be provided to the person responsible for the large emitter or opted‑in facility in respect of the large emitter or opted‑in facility under an initiative of the Government of Alberta, or an agency of the Government of Alberta, exceeds, or is considered by the Minister to be comparable to, the value of fund credits that would be needed to meet the true‑up obligation for the large emitter or opted‑in facility for any year for which the person responsible has requested the cost containment designation if only fund credits were used to meet the true‑up obligation for that year; (d) a cost containment designation was previously issued in respect of the large emitter or opted‑in facility and was revoked under subsection (12)(a), (b), (c) or (d). (8) The Minister may (a) impose any terms and conditions the Minister considers appropriate on a cost containment designation, (b) amend a term or condition of, add a term or condition to or delete a term or condition from a cost containment designation, and (c) subject to subsection (12), set out in a cost containment designation the years for which the designation is in effect. (9) The person responsible for a large emitter or opted‑in facility in respect of which a cost containment designation has been issued shall comply with the terms and conditions of the cost containment designation. (10) The Minister shall notify the person responsible for a large emitter or opted‑in facility in writing of the Minister’s decision as to whether to issue a cost containment designation in respect of the large emitter or opted‑in facility. (11) A cost containment designation is effective for a period of not more than 5 consecutive years as specified by the Minister, but the person responsible for a large emitter or opted‑in facility may, at any time, apply under subsection (1) for another cost containment designation. (12) The Minister may revoke a cost containment designation (a) if the person responsible for the large emitter or opted‑in facility is not in compliance with the Act or the regulations under the Act or any other enactment under the administration of the Minister with respect to the large emitter or opted‑in facility, (b) if the Minister is of the opinion that the person responsible for the large emitter or opted‑in facility has not complied with a term or condition of the cost containment designation, (c) if the large emitter or opted‑in facility is a subject of, or is subject to, (i) receivership, insolvency or bankruptcy actions or proceedings, (ii) proceedings under the Companies’ Creditors Arrangement Act (Canada), or (iii) seizure, foreclosure, distress or other enforcement actions or proceedings, (d) if the total amount of one or more benefits that have been, are being or will be provided to the person responsible for the large emitter or opted‑in facility in respect of the large emitter or opted‑in facility under an initiative of the Government of Alberta, or an agency of the Government of Alberta, exceeds, or is considered by the Minister to be comparable to, the value of the fund credits that would be needed to meet the true‑up obligation for any year for which the cost containment designation is in effect for the large emitter or opted‑in facility if (i) compliance cost containment allocation benchmarks were not applicable for the large emitter or opted‑in facility for that year, and (ii) only fund credits were used to meet the true‑up obligation for the large emitter or opted‑in facility for that year, (e) if it is no longer likely that the person responsible for the large emitter or opted‑in facility will experience economic hardship attributable to the compliance costs incurred in respect of the large emitter or opted‑in facility, or (f) on the request of the person responsible for the large emitter or opted‑in facility. (13) The Minister shall notify the person responsible for a large emitter or opted‑in facility in writing of the Minister’s decision to revoke a cost containment designation issued in respect of the large emitter or opted‑in facility. AR 133/2019 s14;251/2022 Reports Compliance report 15 (1) The person responsible for a large emitter or opted‑in facility, other than an electricity facility, that is in its 3rd or a subsequent year of commercial operation in a year shall submit to the director a compliance report for the large emitter or opted‑in facility for a year on or before June 30 of the following year. (2) The person responsible for an aggregate facility shall submit to the director a compliance report for the aggregate facility for each year the aggregate facility is designated as an aggregate facility on or before June 30 of the following year. (3) The person responsible for an electricity facility shall submit to the director a compliance report for the electricity facility for each year the electricity facility is a large emitter or opted‑in facility on or before June 30 of the following year. (4) The compliance report must (a) be submitted in the form and manner prescribed by the director, (b) include the information required by the director, (c) confirm that the net emissions for the regulated facility for the year do not exceed the allowable emissions for the regulated facility for the year, (d) be certified by the person responsible in the manner required by the director, and (e) be verified by a third party assurance provider. (5) The person responsible for a regulated facility shall comply with the rules and other requirements set out in Part 1 of the Standard for Completing Greenhouse Gas Compliance and Forecasting Reports in preparing and submitting a compliance report for the regulated facility under this section. (6) A third party assurance provider shall comply with the rules and other requirements set out in Part 1 of the Standard for Validation, Verification and Audit in providing a verification referred to in subsection (4)(e). Annual forecasting report 16 (1) Subject to subsection (2), if a forecasting facility is in its first or a subsequent year of commercial operation in a year, the person responsible for the forecasting facility on September 30 of the year shall, on or before November 30 of the year, submit to the director an annual forecasting report with respect to the facility for the following year. (2) The person responsible for a forecasting facility is not required to submit an annual forecasting report with respect to the forecasting facility under subsection (1) for (a) the year following the first year in which the forecasting facility has total regulated emissions of 1 000 000 CO 2 e tonnes or more, (b) the 2nd year following a year in which the forecasting facility has total regulated emissions of less than 1 000 000 CO 2 e tonnes, or (c) the 2nd year following a year in which the true‑up obligation of the forecasting facility was less than 50 000 CO 2 e tonnes of specified gas emissions. (3) The annual forecasting report must (a) be submitted in the form and manner prescribed by the director, (b) include (i) a forecast of the forecasting facility’s total regulated emissions for the following year, (ii) a forecast of the forecasting facility’s production of each product that has a high‑performance benchmark or a facility‑specific benchmark for the following year, (iii) a forecast of the true‑up obligation for the forecasting facility for the following year, (iv) the ratio of fund credits to the sum of emission performance credits plus emission offsets plus sequestration credits that the person responsible will use to meet the facility’s true‑up obligation for the following year, and (v) any other information required by the director and (c) be certified by the person responsible in the manner required by the director. (4) The person responsible for a forecasting facility shall submit an updated annual forecasting report on or before March 15 of the year following the year in respect of which the forecasting report was submitted. (5) The person responsible for a forecasting facility shall comply with the rules and other requirements set out in Part 1 of the Standard for Completing Greenhouse Gas Compliance and Forecasting Reports in preparing and submitting an annual forecasting report for the forecasting facility. AR 133/2019 s16;251/2022 Emissions reduction plan report 17 (1) The person responsible for a large emitter, or opted‑in facility, in respect of which a cost containment designation has been issued shall submit to the director an emissions reduction plan report for the large emitter or opted‑in facility for each year, other than the first year, that the designation is effective on or before June 30 of the following year. (2) An emissions reduction plan report must (a) be submitted in the form and manner prescribed by the director, (b) include financial statements for the large emitter or opted‑in facility that have been audited by a professional accounting firm that is registered under the Chartered Professional Accountants Act and authorized to perform an audit engagement, (c) include a statement of the total amount of any benefits that have been, are being or will be provided to the person responsible for the large emitter or opted‑in facility in respect of the large emitter or opted‑in facility under an initiative of the Government of Alberta or an agency of the Government of Alberta, (d) include any other information required by the director, and (e) be verified by a third party assurance provider on or before June 30 of the year in which it is submitted. (3) An emissions reduction plan report may include an updated emissions reduction plan that meets the requirements of section 14(2)(c). (4) An auditor shall comply with the rules and other requirements set out in Part 1 of the Standard for Validation, Verification and Audit in providing an audit referred to in subsection (2)(b). (5) A third party assurance provider shall comply with the rules and other requirements set out in Part 1 of the Standard for Validation, Verification and Audit in providing (a) a validation of an updated emissions reduction plan, or (b) a verification referred to in subsection (2)(e). Part 3 Emission Offsets, Emission Performance Credits and Fund Credits Emission offset projects 18 (1) An emission offset project developer shall comply with the rules and other requirements set out in Part 1 of the Standard for Greenhouse Gas Emission Offset Project Developers (a) in initiating and implementing an emission offset project, and (b) in registering an emission offset project with the Alberta Emissions Offset Registry. (2) An emission offset project developer shall ensure that an emission offset is verified by a third party assurance provider. (3) A third party assurance provider shall comply with the rules and other requirements set out in Part 1 of the Standard for Validation, Verification and Audit in verifying an emission offset. Emission offsets 19 ( 1) A reduction in specified gas emissions or a net sequestration of carbon dioxide, other than a geological sequestration, must meet the following requirements for the reduction or sequestration to be recognized by one or more emission offsets: (a) the reduction or sequestration must occur in Alberta; (b) the reduction or sequestration (i) must result from an action taken that is not required by law at the time the action is taken, and (ii) must not be required by law at the time the reduction or sequestration occurs; (c) the reduction or sequestration must (i) result from an action taken on or after January 1, 2002, and (ii) occur on or after January 1, 2002; (d) the reduction or sequestration must be real and demonstrable; (e) the reduction or sequestration must be quantifiable and measurable, directly or by accurate estimation using replicable techniques; (f) the specified gas emissions that were reduced or the carbon dioxide that was sequestered must not have reduced a regulated facility’s total regulated emissions under section 13(3) or (4). (2) A net geological sequestration of carbon dioxide must meet the following requirements for the net geological sequestration to be recognized by one or more emission offsets: (a) the carbon dioxide that is geologically sequestered must be captured through a dedicated process from sources located at a facility in Alberta or separated from the air within Alberta; (b) the carbon dioxide must be stored in a geological formation that is located wholly or partly in Alberta; (c) the geological sequestration must not be required by law at the time the geological sequestration occurs; (d) the construction of the infrastructure used to geologically sequester the carbon dioxide must have been initiated on or after January 1, 2002; (e) the geological sequestration must occur on or after January 1, 2002; (f) the geological sequestration must be quantifiable and measurable, directly or by accurate estimation using replicable techniques; (g) the carbon dioxide that was sequestered must not have reduced a regulated facility’s total regulated emissions under section 13(3) or (4); (h) the geological sequestration of the carbon dioxide must be permanent. (3) A capture of carbon dioxide must meet the following requirements for the capture to be recognized by one or more emission offsets: (a) the carbon dioxide must be captured through a dedicated process from sources located at a facility upgrading or refining bitumen in Alberta; (b) the capture must not be required by law at the time the capture occurs; (c) the construction of the infrastructure used to capture the carbon dioxide must have been initiated on or after January 1, 2012 and the infrastructure must have been used to capture carbon dioxide on or before December 31, 2015; (d) the carbon dioxide must be (i) captured by infrastructure capable of capturing, and (ii) stored in geological formations capable of storing 1 000 000 tonnes of carbon dioxide per year; (e) at least 51% of the volume of carbon dioxide captured through the dedicated process from sources located at a facility upgrading or refining bitumen in Alberta in a year must be sequestered in a geological formation in respect of which a pore space tenure agreement has been entered into with the Government of Alberta on or after January 1, 2011; (f) the capture must be quantifiable and measurable, directly or by accurate estimation using replicable techniques; (g) the captured carbon dioxide must be geologically sequestered in accordance with subsection (2) on or before December 31, 2022; (h) the amount of money established under section 21(2) must be less than $80 at the time the captured carbon dioxide is geologically sequestered. (4) Each (a) one CO 2 e tonne reduction in specified gas emissions, or net sequestration of one tonne of carbon dioxide, that meets the requirements of subsection (1), or (b) net geological sequestration of one tonne of carbon dioxide that meets the requirements of subsection (2) may be recognized by the serialization of one emission offset. (5) Each capture of carbon dioxide that meets the requirements of subsection (3) may be recognized by the serialization of the number of emission offsets determined as follows: (a) if the amount of money established under section 21(2) is equal to or less than $40 at the time that the captured carbon dioxide is geologically sequestered, the number of emission offsets is calculated in accordance with the following formula: N = A x 1 where N is the number of emission offsets; A is equal to the number of emission offsets that recognize the net geological sequestration of the number of tonnes of carbon dioxide that meets the requirements of subsection (2); (b) if the amount of money established under section 21(2) is more than $40 but less than $80 at the time that the captured carbon dioxide is geologically sequestered, the number of emission offsets is calculated in accordance with the following formula: N = A x (80 – B) 40 where N is the number of emission offsets; A is equal to the number of emission offsets that recognize the net geological sequestration of the number of tonnes of carbon dioxide that meets the requirements of subsection (2); B equals the amount of money established under section 21(2). (6) One emission offset represents one CO 2 e tonne. AR 133/2019 s19;251/2022;270/2025 Emission performance credits 20 (1) If the total regulated emissions of a regulated facility in a year are less than the allowable emissions for the regulated facility for the year, the director may issue one or more emission performance credits to the person responsible for the regulated facility. (2) The number of emission performance credits that may be issued under subsection (1) must be determined in accordance with the following formula: EPC = AE – TRE where EPC is the number of emission performance credits that may be issued under subsection (1); AE is the quantity of allowable emissions for the regulated facility for the year; TRE is the quantity of total regulated emissions for the regulated facility for the year. (3) One emission performance credit represents one CO 2 e tonne. (4) Repealed AR 251/2022 s12. AR 133/2019 s20;251/2022 Sequestration credits 20.1 (1) An emission offset project developer may convert an emission offset serialized on the Alberta Emissions Offset Registry into a sequestration credit. (2) An emission offset must meet the following requirements to be converted into a sequestration credit: (a) it must have been an emission offset for a net geological sequestration of carbon dioxide in accordance with section 19(2); (b) the net geological sequestration must have occurred in 2022 or a subsequent year; (c) the carbon dioxide that was geologically sequestered for the emission offset must have been captured at a large emitter or opted‑in facility. (3) Where the emission offset project developer converts an emission offset into a sequestration credit, the sequestration credit shall not be converted back into an emission offset. (4) One sequestration credit represents one CO 2 e tonne. AR 251/2022 s13 Capture recognition tonnes 20.2 (1) A person responsible for a large emitter or opted‑in facility who holds a sequestration credit may convert the sequestration credit into a capture recognition tonne. (2) A sequestration credit must meet the following requirements to be converted into a capture recognition tonne: (a) the carbon dioxide that was geologically sequestered for the associated emission offset must have been captured at the large emitter or opted‑in facility of the person responsible who is applying to convert the sequestration credit; (b) the geological sequestration must have occurred in 2023 or a subsequent year. (3) A conversion under subsection (1) must occur on or before May 31 of the year following the year in which the carbon dioxide was geologically sequestered. (4) Where the person responsible converts a sequestration credit into a capture recognition tonne, the capture recognition tonne shall not be converted back into a sequestration credit. (5) One capture recognition tonne represents one CO 2 e tonne. AR 251/2022 s13 Investment credits 20.3 (1) In this section and section 20.4, (a) “eligible investment” means a monetary investment (i) in an eligible investment project, (ii) made by a person responsible for a regulated facility, and (iii) that meets the requirements set out in Part 1 of the Standard for Direct Investment, but does not include (iv) an investment made prior to January 1, 2025, (v) an investment made at a large emitter or opted‑in facility for which a cost containment designation is in effect, (vi) an investment made in a project before the director approves the project as an eligible investment project, unless the project is a pre‑approved project, (vii) any part of an investment made by or granted to the project or to the person responsible by a government, by an organization funded by the government or from the Fund, or (viii) any part of an investment that will be recovered through an investment tax credit or similar mechanism set out in Part 1 of the Standard for Direct Investment; (b) “eligible investment project” means a project in Alberta that is (i) a pre‑approved project, or (ii) approved by the director under subsection (9); (c) “pre‑approved project” means a project specified in Part 1 of the Standard for Direct Investment as a pre‑approved project. (2) The director may issue one or more investment credits to the person responsible for a regulated facility in recognition of an eligible investment. (3) To be eligible for investment credits for an eligible investment made in a year, the person responsible must submit an audited investment statement to the director on or before June 30 of the following year that (a) is submitted in the form and manner prescribed by the director, (b) includes the information required by the director, and (c) is audited in accordance with the Standard for Validation, Verification and Audit by a professional accounting firm registered under the Chartered Professional Accountants Act and authorized to perform audit engagements. (4) An auditor shall comply with the rules and other requirements set out in Part 1 of the Standard for Validation, Verification and Audit in auditing an investment statement. (5) The number of investment credits that may be issued under subsection (2) for an eligible investment made in a year must be determined in accordance with the following formula: IC = EI / FCA where IC is the number of investment credits that may be issued, expressed in tonnes; EI is the eligible investment made for the year by the person responsible, expressed in dollars; FCA is the fund credit amount established under section 21(2) for the year the person responsible made the eligible investment. (6) One investment credit represents one CO 2 e tonne. (7) The person responsible for a regulated facility may apply to the director at any time for a project to be approved as an eligible investment project. (8) An application under subsection (7) must (a) be submitted in the form and manner prescribed by the director, and (b) include the information required by the director. (9) The director may approve a project as an eligible investment project if the director is satisfied that the project meets the requirements for an eligible investment project set out in Part 1 of the Standard for Direct Investment. AR 270/2025 s10 Reactivated credits 20.4 (1) A person responsible who submits an audited investment statement on or before March 31 of the year following the year in which the eligible investment was made may elect to use one or more investment credits issued for that investment to reactivate emission offsets, sequestration credits or emission performance credits. (2) The emission offsets, sequestration credits and emission performance credits that are eligible to be reactivated under subsection (1) are emission offsets, sequestration credits and emission performance credits that were used by the person responsible to meet a true‑up obligation for any of the three compliance years immediately preceding the year in which the eligible investment was made, but no earlier than the 2025 compliance year. (3) For the purposes of section 13, a reactivated credit (a) is deemed to be an emission offset, sequestration credit or emission performance credit, as the case may be, that has not been used, and (b) is subject to the same rules under section 13 that applied to the original emission offset, sequestration credit or emission performance credit, as the case may be, before that credit was first used by the person responsible. AR 270/2025 s10 Fund credits 21 (1) A person responsible may obtain fund credits by contributing money to the Fund. (2) The Minister may, by order, establish the amount of money that a person responsible must contribute to the Fund to obtain one fund credit for a year. (3) One fund credit represents one CO 2 e tonne. Cancellation of and nature of emission offsets, emission performance credits, sequestration credits, capture recognition tonnes and fund credits 22 (1) In this section, “former regulation” means (a) the Carbon Competitiveness Incentive Regulation (AR 255/2017) (repealed), or (b) the Specified Gas Emitters Regulation (AR 139/2007) (expired). (2) Without limiting subsection (6) or (7), the director may cancel, or direct the cancellation of, an emission offset serialized on the Alberta Emissions Offset Registry if, in the opinion of the director, (a) the reduction in specified gas emissions or the sequestration, geological sequestration or capture of carbon dioxide recognized by the emission offset did not meet the applicable requirements under this Regulation or a former regulation, (b) the serialization of the emission offset was based on incorrect, false or inaccurate information, or (c) the emission offset is otherwise invalid, as determined in accordance with Part 1 of the Standard for Greenhouse Gas Emission Offset Project Developers. (2.1) Without limiting subsection (6) or (7), the director may cancel, or direct the cancellation of, a sequestration credit or capture recognition tonne serialized on the Alberta Emissions Offset Registry if, in the opinion of the director, (a) the net geological sequestration of carbon dioxide recognized by the associated emission offset did not meet the applicable requirements under this Regulation, (b) the serialization of the associated emission offset was based on incorrect, false or inaccurate information, or (c) the associated emission offset is otherwise invalid, as determined in accordance with Part 1 of the Standard for Greenhouse Gas Emission Offset Project Developers. (2.2) Without limiting subsection (6) or (7), the director may cancel, or direct the cancellation of, an investment credit if, in the opinion of the director, (a) the issuance of the investment credit was based on incorrect, false or inaccurate information, or (b) the investment credit is otherwise invalid, as determined in accordance with Part 1 of the Standard for Direct Investment. (2.3) Without limiting subsection (6) or (7), the director may cancel, or direct the cancellation of, a reactivated credit serialized on the Alberta Emissions Offset Registry if, in the opinion of the director, (a) the associated investment credit did not meet the applicable requirements under this Regulation, (b) the issuance of the associated investment credit was based on incorrect, false or inaccurate information, or (c) the associated investment credit is otherwise invalid, as determined in accordance with Part 1 of the Standard for Direct Investment. (3) Without limiting subsection (6) or (7), the director may cancel an emission performance credit, or direct the cancellation of an emission performance credit, if, in the opinion of the director, the issuance of the emission performance credit was based on incorrect, false or inaccurate information. (4) The director shall give notice of a cancellation or direction under subsection (2), (2.1), (2.2), (2.3) or (3), (a) in the case of an emission offset, (i) to the administrator of the Alberta Emissions Offset Registry, (ii) to the emission offset project developer, (iii) if the emission offset is held by the person responsible for a regulated facility or has been used, as described in subsection (5), by a person responsible for a regulated facility, to that person responsible, and (iv) if the emission offset is held by a person other than the emission offset project developer or a person responsible for a regulated facility, to that person, (b) in the case of an emission performance credit, (i) to the person responsible for the regulated facility in respect of which the emission performance credit was issued, (ii) if the emission performance credit is held by the person responsible for a different regulated facility or has been used, as described in subsection (5), by a person responsible for a different regulated facility, to that person responsible, and (iii) if the emission performance credit is held by a person other than a person responsible for a regulated facility, to that person, (c) in the case of a sequestration credit, (i) to the administrator of the Alberta Emissions Offset Registry, (ii) to the emission offset project developer of the associated emission offset, (iii) if the sequestration credit is held by the person responsible for a regulated facility or has been used, as described in subsection (5), by a person responsible for a regulated facility, to that person responsible, and (iv) if the sequestration credit is held by a person other than the emission offset project developer or a person responsible for a regulated facility, to that person, (d) in the case of a capture recognition tonne, (i) to the administrator of the Alberta Emissions Offset Registry, (ii) to the emission offset project developer of the associated emission offset, and (iii) if the capture recognition tonne has been used by the person responsible for a large emitter or opted‑in facility in determining the total regulated emissions for the large emitter or opted‑in facility, to that person, or (e) in the case of an investment credit, (i) to the person responsible for the facility where the investment credit was used to determine the net emissions, and (ii) to the person responsible who obtained the investment credit. (5) If the person responsible for a regulated facility has used an emission offset, emission performance credit, sequestration credit or investment credit that is cancelled under this section in complying with section 12 of this Regulation, section 6(1), (2) or (3) of the former regulation referred to in subsection (1)(a) or section 6(2) of the former regulation referred to in subsection (1)(b), the person responsible shall, within 60 days after receiving notice of the cancellation or direction, do one of the following: (a) pay into the Fund an amount equal to the amount the person responsible would have had to contribute to obtain one fund credit for the year the emission offset, emission performance credit, sequestration credit or investment credit was used; (b) use another emission offset in place of the cancelled emission offset, emission performance credit, sequestration credit or investment credit, but the person responsible may only do so if the person responsible held the emission offset at the time the cancelled emission offset, emission performance credit or sequestration credit was used and has continued to hold the emission offset since that time; (c) use another emission performance credit held by the person responsible in place of the cancelled emission offset, emission performance credit or sequestration credit, but the person responsible may only do so if the person responsible held the emission performance credit at the time the cancelled emission offset, emission performance credit, sequestration credit or investment credit was used and has continued to hold the emission performance credit since that time; (d) use another sequestration credit held by the person responsible in place of the cancelled emission offset, emission performance credit, sequestration credit or investment credit, but the person responsible may only do so if the person responsible held the sequestration credit or associated emission offset at the time the cancelled emission offset, emission performance credit, sequestration credit or investment credit was used and has continued to hold the sequestration credit since that time; (e) use another investment credit held by the person responsible in place of the cancelled emission offset, emission performance credit, sequestration credit or investment credit, but the person responsible may only do so if the person responsible held the investment credit at the time the cancelled emission offset, emission performance credit, sequestration credit or investment credit was used and has continued to hold the investment credit since that time. (5.1) If the person responsible for a large emitter or opted‑in facility has used a capture recognition tonne that is cancelled under this section in calculating the total regulated emissions and the use of the capture recognition tonne has had the effect of reducing the true-up obligation for the facility, the person responsible shall, within 60 days after receiving notice of the cancellation or direction, pay into the Fund an amount equal to the amount the person responsible would have had to contribute to obtain one fund credit for the year the capture recognition tonne was used. (6) For greater certainty, an emission offset, emission performance credit, sequestration credit, investment credit or fund credit is a revocable licence authorizing the person responsible for a regulated facility to use the emission offset, emission performance credit, sequestration credit, investment credit or fund credit in determining the net emissions for the regulated facility in accordance with this Regulation. (7) Nothing in this Regulation (a) ensures or guarantees the availability of emission offsets, emission performance credits, sequestration credits, investment credits or capture recognition tonnes, (b) ensures, guarantees or gives a person a right or an entitlement to an emission offset, emission performance credit, sequestration credit, investment credit or capture recognition tonne, (c) ensures, guarantees or gives a person a right or an entitlement to generate an emission offset or to be issued an emission performance credit or investment credit, (d) ensures, guarantees or gives a person responsible for a regulated facility a right or an entitlement to use an emission offset, emission performance credit, sequestration credit or investment credit in determining the net emissions for a regulated facility, or (e) ensures, guarantees or gives a person responsible for a large emitter or opted‑in facility a right or an entitlement to use a capture recognition tonne in determining the total regulated emissions for a large emitter or opted‑in facility. AR 133/2019 s22;251/2022;270/2025 Part 4 General Administration Powers of Minister and director 23 (1) The Minister or director may, at any time, do one or more of the following: (a) require a person responsible or emission offset project developer to provide additional information;

(b) require an audit or further audit of any financial statements contained in an application or report; (c) require validation or further validation by a third party assurance provider of any information; (d) require verification or further verification by a third party assurance provider of any information; (e) subject to subsection (1.1), require a person responsible or emission offset project developer to resubmit an application, report or information in accordance with any directions that the Minister or director considers necessary; (f) collect any additional information that the Minister or director considers necessary; (g) conduct any review that the Minister or director considers necessary. (1.1) The Minister or director may not, in respect of an application, report or information submitted for 2026 or a subsequent year, require a resubmission under subsection (1)(e) more than 4 years after the date on which the application, report or information was submitted unless the application, report or information has been resubmitted. (2) If an action taken under subsection (1) relates directly to emission offsets or emission performance credits, the Minister or director may direct that the emission offsets or emission performance credits must not be used or transferred until the Minister or director directs otherwise. (3) The director may from time to time require the person responsible for a regulated facility to implement new or additional measurements, metering or monitoring for the purpose of determining the allowable emissions for the regulated facility under section 9 or 10 or the net emissions for the regulated facility under section 13. (4) The director may prescribe forms for the purposes of this Regulation. AR 133/2019 s23;270/2025 Exemptions 24 The director may, on application, exempt the person responsible for a large emitter or opted‑in facility from one or more of the duties imposed on persons responsible under Part 2, subject to any terms or conditions the director considers appropriate, for a period not exceeding one year if the director is of the opinion that (a) the large emitter or opted‑in facility was operated under unusual conditions for a lengthy period or underwent a lengthy shutdown, and (b) the unusual conditions or shutdown caused a material reduction in the specified gas emissions of the large emitter or opted‑in facility during the period or shutdown. Exemption — low‑emitting status 24.1 (1) The director may, on application, exempt the person responsible for a large emitter from one or more of the duties imposed under Part 2, subject to any terms or conditions the director considers appropriate, if the facility’s direct emissions have been less than 10 000 CO 2 e tonnes per year for two consecutive years. (2) An exemption under subsection (1) remains in effect until the facility’s direct emissions are 50 000 CO 2 e tonnes or more in a year, at which time the exemption ceases to have effect beginning the following year. AR 270/2025 s13 25 Repealed AR 270/2025 s14. Duty to comply 26 (1) A person responsible for a facility shall (a) comply with a requirement imposed on the person responsible under section 23(1)(a) to (e), (b) provide any information under the control of the person responsible on request of the Minister or director under section 23(1)(f), (c) cooperate with any review referred to in section 23(1)(g), and (d) comply with a direction given under section 23(2). (e) repealed AR 270/2025 s15. (2) An auditor shall comply with the rules and other requirements set out in Part 1 of the Standard for Validation, Verification and Audit in providing an audit referred to in section 23(1)(b). (3) A third party assurance provider shall comply with the rules and other requirements set out in Part 1 of the Standard for Validation, Verification and Audit in providing (a) a validation referred to in section 23(1)(c), or (b) a verification referred to in section 23(1)(d). (4) An emission offset project developer shall (a) comply with a requirement imposed under section 23(1)(a), (d) or (e), (b) provide any information under the control of the emission offset project developer on request of the Minister or director under section 23(1)(f), (c) comply with a direction given under section 23(2), and (d) cooperate with any review referred to in section 23(1)(g). AR 133/2019 s26;270/2025 Third party assurance providers 27 (1) In this section, “ISO Standard 14065:2013” means the standard ISO 14065:2013 entitled Greenhouse gases — Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition, published by the International Organization for Standardization, as amended or replaced from time to time. (2) A person is eligible to be a third party assurance provider if (a) the person is accredited to ISO Standard 14065:2013 as a verification body by an accreditation organization that (i) is a member of the International Accreditation Forum, and (ii) meets any other criteria respecting accreditation established under Part 1 of the Standard for Validation, Verification and Audit, and (b) the person meets any additional qualifications specified by the director. (3) and (4) Repealed AR 270/2025 s16. (5) A person is not eligible to be a third party assurance provider for a facility if the person (a) is the person responsible for the facility or is a director, officer or employee of the person responsible for the facility or of an affiliate, within the meaning of section 2 of the Business Corporations Act , of the person responsible, or (b) is an employee or agent of the Government of Alberta. (6) The director may request any information the director considers relevant from a person or the person responsible for a facility to determine whether or not the person is eligible to perform the functions of a third party assurance provider generally or in a particular case. AR 133/2019 s27;270/2025 Refusal of verification 27.1 (1) The director may refuse to accept a verification provided by a third party assurance provider under this Regulation if any of the following apply: (a) the third party assurance provider is under investigation by the accreditation organization that accredited it; (b) the third party assurance provider is under investigation by the department for a potential contravention of section 7(5), 14(5), 15(6), 17(5), 18(3) or 26(3); (c) the third party assurance provider did not meet the applicable requirements of the Standard for Validation, Verification and Audit; (d) the accreditation organization that accredited the third party assurance provider did not meet the requirements referred to in section 27(2)(a)(ii); (e) the director believes on reasonable grounds that the verification does not comply with this Regulation or with the standards of the member of the International Accreditation Forum that accredited the verification body; (f) the director believes on reasonable grounds that the third party assurance provider is not eligible to be a third party assurance provider. (2) The director shall notify the third party assurance provider and the person responsible for the facility or the emission offset project developer, as the case may be, in writing of a decision under subsection (1) to refuse to accept a verification. AR 270/2025 s17 Records Request for confidentiality 28 (1) The person responsible for a facility may in respect of information provided to the Government under this Regulation, including, without limitation, an application under this Regulation, an emissions reduction plan, a compliance report, annual forecasting report, emissions reduction plan report, verification validation, audit, investment statement or any other information required under this Regulation, submit a written request that certain information be kept confidential for a period of 5 years after the date the information is submitted or provided on the basis that the information is commercial, financial, scientific or technical information that would reveal proprietary business, competitive or trade secret information about a specific facility, technology or corporate initiative. (2) The director shall have regard to the following when making a decision on a request for confidentiality under subsection (1): (a) whether disclosure of the information could reasonably be expected to harm significantly the competitive position of the person responsible; (b) whether disclosure of the information could reasonably be expected to interfere significantly with the negotiating position of the person responsible; (c) whether disclosure of the information could reasonably be expected to result in undue financial loss or gain to any person or organization; (d) the availability of the information or the means to obtain the information from other public sources; (e) whether there are any other competing interests that would suggest that disclosure of the information is warranted. (3) The director may require the person responsible to provide additional reasons, in writing, in support of the request for confidentiality under subsection (1). (4) The director shall, (a) if the director considers that the request for confidentiality is well founded, approve the request and order that some or all of the information to which the request relates be kept confidential and not be disclosed for 5 years after the date the information was submitted or provided, or (b) if the director considers that the request for confidentiality is not well founded, refuse the request. (5) The director shall, in writing, notify the person responsible of the director’s decision under subsection (4) within 150 days after receiving the request for confidentiality. (6) Where the director is considering a request for confidentiality under this section, the information to which the request relates is prescribed as a class of prescribed information for the purposes of section 59 of the Act until a decision is made. (7) Where the director makes an order under subsection (4)(a), the information that is the subject of the order is prescribed as a class of prescribed information for the purposes of section 59 of the Act. (8) The director shall provide annually to the Information and Privacy Commissioner, in the form and manner the director considers appropriate, a report setting out the following: (a) the number of requests received by the director under subsection (1) in the year; (b) the number of requests approved by the director under subsection (4)(a) in the year. AR 133/2019 s28;270/2025 Access to applications and reports 29 (1) Subject to subsections (2) and (3), within a reasonable time after receiving a request in writing for a copy of an application for the assignment of a facility‑specific benchmark or a compliance report, the director shall provide a copy of the application or report free of charge to the person requesting it. (2) The director is not required to provide a copy of an application or report under subsection (1) unless the director is satisfied that the person making the request has first made a request to obtain a copy of the application or report from the appropriate person responsible and that the request was refused or was not satisfied within 30 days after the date of the request. (3) Subsection (1) does not apply with respect to (a) prescribed information as defined in section 59 of the Act, or (b) information pertaining to a matter that is the subject of enforcement proceedings under the Act or this Regulation. Publication 30 Subject to section 59 of the Act, the director may, in any form and manner the director considers appropriate, publish (a) an application for the assignment of a facility‑specific benchmark, or (b) a compliance report. Record retention 31 (1) The person responsible for a facility that is or was a regulated facility shall retain (a) all records and information respecting the direct emissions and production of the facility for the period that the facility is a regulated facility for at least 7 years after the date on which the records or information are created, (b) a copy of each application for the assignment of a facility‑specific benchmark for the facility together with the records and information on which the application was based for at least 7 years after the year in which the facility‑specific benchmark that was assigned on the basis of the application ceases to be a facility‑specific benchmark for the facility, (c) a copy of each compliance report submitted in respect of the facility together with the records and information on which the compliance report was based for at least 7 years after the year in which the compliance report was submitted, (d) a copy of any information provided under section 23 for at least 7 years after the year in which the information was provided, (e) a copy of each audited investment statement submitted under section 20.3(3) together with the records and information on which the audited investment statement was based for at least 7 years after the year in which the audited investment statement was submitted, and (f) a copy of each application for a project to be approved as an eligible investment project under section 20.3(7) together with the records and information on which the application was based for at least 7 years after the year in which the application was made. (2) In addition to complying with subsection (1), the person responsible for a facility that is or was a forecasting facility shall retain a copy of each annual forecasting report submitted in respect of the facility together with the records and information on which the annual forecasting report was based for 7 years after the year in which the annual forecasting report was submitted. (3) In addition to complying with subsection (1), the person responsible for a facility that is or was an opted‑in facility shall retain (a) a copy of the application for the facility to be designated as an opted‑in facility together with the records and information on which the application was based for at least 7 years after the year in which the application was made, and (b) a copy of any application for the designation of the facility as an opted‑in facility to be revoked together with the records and information on which the application was based for at least 7 years after the year in which the application was made. (4) In addition to complying with subsection (1), the person responsible for a facility that is or was an aggregate facility shall retain (a) a copy of the application for the group of facilities to be designated as an aggregate facility and for any amendment of the designation together with the records and information on which the application was based for at least 7 years after the year in which the application was made, and (b) a copy of any application for the designation of the group of facilities as an aggregate facility to be revoked together with the records and information on which the application was based for at least 7 years after the year in which the application was made. (5) In addition to complying with subsection (1), the person responsible for a facility that is or was a large emitter or opted‑in facility in respect of which a cost containment designation has been made shall retain (a) a copy of the application for the cost containment designation together with the records and information on which the application was based for at least 7 years after the year in which the application was made, (b) a copy of any application for the cost containment designation to be revoked together with the records and information on which the application was based for at least 7 years after the year in which the application was made, (c) a copy of each emissions reduction plan of the large emitter or opted‑in facility together with the records and information on which the emissions reduction plan was based for at least 7 years after the year in which the emissions reduction plan was submitted, (d) a copy of each emissions reduction plan report submitted in respect of the large emitter or opted‑in facility together with the records and information on which the emissions reduction plan report was based for at least 7 years after the year in which the emissions reduction plan report was submitted, and (e) a copy of each application for a compliance cost containment allocation benchmark for a product of the large emitter or opted‑in facility together with the records and information on which the application was based for at least 7 years after the year in which the application was made. (6) An emission offset project developer, or former emission offset project developer, shall retain all records and information associated with an emission offset until the later of (a) 7 years after the day on which the emission offset is used by a person responsible for a regulated facility to meet the allowable emissions for the regulated facility, (b) 8 years after the day on which the emission offset is serialized on the Alberta Emissions Offset Registry, and (c) the day on which the emission offset may no longer be used under section 13. (7) Applications, records, reports and information required to be retained under this section must be retained (a) at the head or principal office, in Alberta, of the person responsible or the emission offset project developer or former emission offset project developer, as the case may be, or (b) at the facility or the location of the emission offset project to which they relate. AR 133/2019 s31;270/2025 Enforcement Audits 32 An inspector or investigator may undertake an audit of a person responsible, a facility, an emission offset project developer, an emission offset project, a third party assurance provider or an auditor to verify the accuracy of information required to be provided by the Act or this Regulation. Offences 33 A person who (a) contravenes section 12(1), (2) or (3), (b) contravenes any of the following sections: 4(10); 5(14); 7(4) or (5); 13(3.1), (5), (6), (6.1), (6.2), (7), (8), (9), (10) or (12); 14(3), (4), (5) or (9); 15(1), (2), (3), (5) or (6); 16(1), (4) or (5); 18(1), (2) or (3); 20.3(4); 22(5) or (5.1); 26(1), (2), (3) or (4); 31(1), (2), (3), (4), (5) or (6), (c) submits a compliance report that is not in compliance with section 15(4), (d) submits an annual forecasting report that is not in compliance with section 16(3), (e) submits an emissions reduction plan report that is not in compliance with section 17(2), (e.1) submits an investment statement that is not in compliance with section 20.3(3), (f) performs the functions of a third party assurance provider and does not have the qualifications referred to in, or is not eligible to be a third party assurance provider under, section 27, (g) retains a person as a third party assurance provider who does not have the qualifications referred to in, or is not eligible to be a third party assurance provider under, section 27, or (h) does not comply with section 31(7) in retaining applications, records, reports or information, is guilty of an offence. AR 133/2019 s33;251/2022;270/2025 Penalties 34 (1) A person who is guilty of an offence under section 33(a) is liable to a fine of not more than $400 for every tonne of specified gas, expressed in CO 2 e tonnes, by which the net emissions for the regulated facility exceeds the allowable emissions for the facility. (2) A person who is guilty of an offence under section 33(b), (c), (d), (e), (e.1), (f), (g) or (h) is liable, (a) in the case of an individual, to a fine of not more than $50 000, or (b) in the case of a corporation, to a fine of not more than $500 000. AR 133/2019 s34;251/2022;270/2025 Due diligence 35 No person shall be convicted of an offence under this Regulation if that person establishes on a balance of probabilities that the person took all reasonable steps to prevent its commission. Transitional, Consequential Amendments, Repeal, Review and Expiry and Coming into Force Transitional 36 (1) In this section, “former regulation” means the Carbon Competitiveness Incentive Regulation (AR 255/2017) (repealed). (2) A designation of a facility as an opted‑in facility under the former regulation that is in effect immediately before this section comes into force is deemed to be a designation of the facility as an opted‑in facility under section 4. (3) A cost containment designation in respect of a facility under the former regulation is not a cost containment designation under this Regulation. (4) Notwithstanding sections 4(7)(c) and 5(10)(c), an application under section 4(6) or 5(9) for a designation to be revoked for the 2025 year must be received by the director on or before December 31, 2025. (5) The person responsible for an opted‑in facility or an aggregate facility may apply to the director on or before December 31, 2025, for approval to submit a partial‑year compliance report for 2025. (6) The director shall notify the person responsible for the facility in writing of the director’s decision under subsection (5). (7) If the director grants an approval under subsection (5), “year” is deemed to mean the period from January 1, 2025 to March 31, 2025 for the purposes of sections 1(1)(vv), 7(1), 9(1), 10(1), 11, 12, 13(2), (3), (3.1)(c) and (4), 15(1), (2), (3) and (4)(c) and 20(1) and (2) in respect of the 2025 compliance report for that facility. (8) Notwithstanding section 20.3(3), an investment statement for an eligible investment, as defined in section 20.3, made in 2025 may be submitted on or before June 30, 2027, and the eligible investment is deemed to be a 2026 investment for the purposes of this Regulation. (9) For the purposes of section 20.4(2), an emission offset, emission performance credit or sequestration credit submitted in 2026 for the purpose of correcting a compliance submission for a prior year is deemed to be a credit used to meet a true‑up obligation for the 2025 compliance year. AR 133/2019 s36;132/2020;251/2022;270/2025 Consequential amendments 37 (1) The Administrative Penalty Regulation (AR 140/2007) is amended in the Schedule (a) repealing sections 1.1 and 2; (b) by adding the following after section 3: 4 Technology Innovation and Emissions Reduction Regulation sections 4(10), 5(14), 7(4) and (5), 12(1), (2) and (3), 13(5), (6), (7), (8), (9), (10) and (12), 14(3), (4), (5) and (9), 15(1), (2), (3), (5) and (6), 16(1), (4) and (5), 18(1), (2) and (3), 22(5), 25(1) and (2), 26(1), (2), (3) and (4), 31(1), (2), (3), (4), (5) and (6) and 33(c), (d), (e), (f), (g) and (h). (2) The Small Scale Generation Regulation (AR 194/2018) is amended in section 1(a) by striking out “ Carbon Competitiveness Incentive Regulation (AR 255/2017)” and substituting “ Technology Innovation and Emissions Reduction Regulation ”. (3) The Specified Gas Reporting Regulation (AR 251/2004) is amended by repealing section 1(c) and substituting the following: (c) “facility” means (i) a plant, structure, thing or site, or (ii) any 2 or more contiguous or adjacent plants, structures, things or sites (A) that are operated and function in an integrated fashion, and (B) for which the same person is the person responsible, where one or more activities listed in any of sections 2 to 11 of the Schedule of Activities to the Environmental Protection and Enhancement Act occur, including all the buildings, equipment, structures, machinery and vehicles that are part of the activity or activities; Repeal 38 The Carbon Competitiveness Incentive Regulation (AR 255/2017) is repealed. Review and expiry 39 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation (a) must be reviewed on or before December 31, 2030, and (b) expires on December 31, 2035. AR 133/2019 s39;251/2022;270/2025 Coming into force 40 (1) This Regulation, except sections 5 and 36(5) and (6), comes into force on January 1, 2020. (2) Sections 5 and 36(5) and (6) come into force on November 1, 2019. Schedule 1 Specified Gases Specified Gas Chemical Formula Carbon dioxide CO 2 Methane CH 4 Nitrous oxide N 2 O HFC‑23 CHF 3 HFC‑32 CH 2 F 2 HFC‑41 CH 3 F HFC‑43‑10mee C 5 H 2 F 10 HFC‑125 C 2 HF 5 HFC‑134 C 2 H 2 F 4 HFC‑134a CH 2 FCF 3 HFC‑143 C 2 H 3 F 3 HFC‑143a C 2 H 3 F 3 HFC‑152 CH 2 FCH 2 F HFC‑152a C 2 H 4 F 2 HFC‑161 CH 3 CH 2 F HFC‑236cb CH 2 FCF 2 CF 3 HFC‑236ea CH 2 FCHFCF 3 HFC‑236ea CHF 2 CHFCF 3 HFC‑227ea C 3 HF 7 HFC‑236fa C 3 H 2 F 6 HFC‑245ca C 3 H 3 F 5 HFC‑245fa CHF 2 CH 2 CF 3 HFC‑365mfc CH 3 CF 2 CH 2 CF 3 Sulphur hexafluoride SF 6 Perfluoromethane CF 4 Perfluoroethane C 2 F 6 Perfluorocyclopropane c‑C 3 F 6 Perfluoroproprane C 3 F 8 Perfluorobutane C 4 F 10 Perfluorocyclobutane c‑C 4 F 8 Perfluoropentane C 5 F 12 Perfluorohexane C 6 F 14 Perfluorodecalin C 10 F 18 Nitrogen triflouride NF 3 Schedule 2 High‑performance Benchmarks Definitions 1 (1) Subject to subsection (2), in this Schedule, (a), (b) Repealed AR 251/2022 s20; (c) “electricity” means electricity that is exported from a facility, but does not include electricity that is exported from a renewable electricity facility in respect of which an economic benefit is being provided under a program or other scheme that is attributable to the electricity having been produced from an energy resource referred to in section 1(1)(nn) of this Regulation; (d) - (f) Repealed AR 251/2022 s20; (g) “hydrogen” means, except in clause (f), (i) hydrogen that is exported from a facility other than a facility that produces a product with a benchmark unit of Alberta complexity weighted barrel, or (ii) hydrogen that is generated at a facility that produces a product with a benchmark unit of Alberta complexity weighted barrel, excluding hydrogen that is vented or combusted; (h) “industrial heat” means thermal energy that is exported from a regulated facility to (i) a type of emission offset project generating emission offsets as described in section 19(2) or (3) of this Regulation or specified in the Standard for Greenhouse Gas Emission Offset Project Developers, or (ii) a different large emitter or opted‑in facility; (i) - (l) Repealed AR 251/2022 s20. (2) If Part 1 of the Standard for Developing Benchmarks includes a definition of a product that is not defined in subsection (1), or includes a further definition of a product that is defined in subsection (1), then the definition or further definition applies to this Schedule unless a contrary intention appears in the Standard. Table High‑performance Benchmark ( CO 2 e tonnes per benchmark unit) Product Name Benchmark Unit 2025 Ammonia tonne 1.735 Ammonium Nitrate tonne 0.1408 Bitumen — Oil Sands In Situ m³ of bitumen 0.2797 Bitumen — Oil Sands Mining m³ of bitumen 0.1835 Canola Oil — Crude tonne 0.1072 Cement tonne 0.7595 Coal — Bituminous tonne 0.06794 Coal — Sub‑bituminous tonne 0.01173 Electricity megawatt hour 0.3478 Ethyl Alcohol litres of absolute alcohol 0.001318 Ethylene Glycol tonne 0.4879 High‑value Chemicals tonne 0.4529 Hydrogen tonne 8.844 Industrial Heat gigajoule 0.05921 Natural Gas Processing Alberta Gas Processing Index 0.6251 Pulp — Kraft Air‑dried metric tonnes of bleached kraft pulp (10% moisture by mass) 0.43 Refined Petroleum Products Alberta complexity weighted barrel (in thousand barrels per year) 1.92 Upgrading Alberta complexity weighted barrel (in thousand barrels per year) 2.697 Urea — Granular tonne 0.2343 AR 133/2019 Sched 2;132/2020;251/2022;270/2025