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CHANGES IN PROVINCIAL LEGISLATION NEEDED TO ADDRESS GAS UTILITIES IN BRITISH COLUMBIA

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1) Bring forward legislation implementing the 2030 GHG cap on the gas sector without further delay as committed to in the Province's CleanBC plan and recently reaffirmed by the Premier on March 14, 2023 with the launch of a new energy action framework; 2) Launch an independent gas utility planning exercise that plots a course for addressing an expected decline in throughput of gas grids and the transition of gas grids towards transporting RNG and hydrogen to sectors and/or locations that are hard to decarbonize, leading to the increased role of electrification in building heating and transport; 3) Reject the use of RNG and hydrogen in new construction to meet GHG limits in the Step Code, so that the limited and costly supply of these alternative fuels can be put to highest and best uses; 4) Develop policies to assess, certify and track the GHG intensity ofRNG, hydrogen and other alternative gases; 5) Reform the BCUC in the context of a changing climate to consider, quantify and minimize the potential costs oflock-in and stranded investments when evaluating capital plans, rate setting and extension policies for gas utilities. This direction should also include greater consideration of non-pipe alternatives to marginal investments in gas grids as well as consideration of strategic opportunities to prnne gas grids in conjunction with targeted electrification strategies. Finally, proceedings should be guided by a framework or set of guidelines that do not impact or limit the jurisdiction and authority of local governments without provincial direction; 6) Bring forward legislation and other regulatory changes specific to the heat transition that, among other issues, establishes a distinct BCUC regulatory framework for public district energy systems more aligned with their small scale and localized nature; and, 7) Require that a minimum percentage of low-carbon methane-based fuels (i.e. up to 100%) be produced within BC.

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