An innovative Clean Infrastructure Royalty Credit Program (CIRCP), announced today as part of British Columbia’s Climate Leadership Plan, is now accepting applications from industry.

The program is the first of its kind in Canada, built to attract new private-sector funding for clean technologies which will reduce greenhouse-gas emissions linked to the exploration and production of B.C.’s oil and gas resources.

The CIRCP is similar to B.C.’s long-running Infrastructure Royalty Credit Program (IRCP), where royalty deductions are awarded to companies who invest in new or upgraded roads and pipelines.

For the CIRCP, oil and gas companies in British Columbia are now eligible to submit a request for credits that will support projects aimed at reducing methane emissions from their current operations. For example, equipment that uses pressurized natural gas could be converted to a solar-charged device and reduce its vented emissions.

The new program will award royalty credits of up to $20 million this year. Companies will be required to fund the entire cost of the project, and complete it, before they are eligible to recover up to 50% of their costs through royalty deductions.

British Columbia’s royalty programs prompt year-round activity and create jobs by providing companies with an incentive to invest and help the sector grow. The CIRCP complements British Columbia’s work to develop a liquefied natural gas industry (LNG) and export clean energy to Asia.

As part of the Climate Leadership Plan, B.C. is reducing fugitive and methane emissions from the oil and natural gas sector using a combination of targets, incentives, and new standards. The CIRCP is a major aspect of the incentives component of the new plan.

Quote:

Rich Coleman, Minister of Natural Gas Development –

“This program expedites clean technology use in British Columbia’s natural gas sector. It will effectively reduce greenhouse gas emissions while supporting economic growth, complementing our work to remain a global climate leader.”

Quick Facts:

• The natural gas sector has been active in British Columbia since the 1950’s.
• Natural gas is universally known as the world’s cleanest burning fossil fuel and is often used with other forms of energy to lower greenhouse-gas emissions.
• The natural gas industry supports thousands of jobs across British Columbia and sustains economic activity in the province’s northern communities. Revenues collected from the industry are used by the provincial government to support vital programs and services, including health care, education, and infrastructure development.
• In July, the Province awarded $120 million in royalty deductions that will create jobs and support the construction of 15 infrastructure projects through British Columbia’s IRCP. That program is expected to result in approximately $185 million reaching sector companies, creating more than 1,640 new jobs.

Learn More:

For more information about the CIRCP: http://www2.gov.bc.ca/gov/content/industry/natural-gas-oil/oil-gas-royalties/clean-infrastructure-royalty-credit-program

For more information on B.C.’s royalties and royalty programs: http://www2.gov.bc.ca/gov/content/industry/natural-gas-oil/oil-gas-royalties/royalties-royalty-programs

For more about British Columbia’s climate-action legislation and approach to reducing greenhouse gas emissions: http://www2.gov.bc.ca/gov/topic.page?id=60E1E7810BC145C6B6FC00EE31F41EC5