The new Hydrogen Facility Regulation (BC Reg 27/2025) (the “Regulation”) went into effect on April 1, 2025. The Regulation, enacted under the Energy Resource Activities Act, (SBC 2008, c 36) (the “Act”), streamlines the requirements for hydrogen manufacturing in British Columbia, including with respect to the permitting, construction, operation, safety, emergency management, and decommissioning of hydrogen facilities.
The British Columbia Energy Regulator (“BCER”) will oversee hydrogen facilities under the Regulation.
Key provisions of the Regulation include:
- Application: it applies to facilities that manufacture less than 100,000 tonnes of hydrogen per year and are not co-located with a facility that manufactures ammonia or methanol from petroleum, natural gas, water or another substance.
Facilities capable of manufacturing more than 100,000 tonnes of hydrogen per year, or those co-located with a facility that manufactures ammonia or methanol from petroleum, natural gas, water or another substance, will be regulated under the Oil and Gas Processing Facility Regulation, BC Reg 48/2021. This regulation will be amended to apply to certain hydrogen facilities and will be renamed the Processing Facility Regulation, effective April 1, 2025.
- Classification: hydrogen facilities are divided into two classes:
- Class 1 hydrogen facilities, which must have an aggregate weight of less than 4.5 tonnes of hydrogen located at the operating area of the facility (“Class 1 Facilities”); and
- Class 2 hydrogen facilities, which must have an aggregate weight equal to or greater than 4.5 tonnes of hydrogen located at the operating area of the facility and a maximum manufacturing capacity of less than 100,000 tonnes of hydrogen per year (“Class 2 Facilities”).
- Permitting: the Regulation specifies the required information that must be included in permit applications for both Class 1 Facilities and Class 2 Facilities. Class 2 Facility permit applicants must comply with additional consultation and notification requirements set out in the Act and the Regulation.
These requirements generally align with the BCER’s position on permitting, which essentially includes a simplified process for smaller facilities that have less potential impacts on public safety and the environment and a more robust process for more complex projects.
- Operations: there are operational requirements for Class 1 Facilities and Class 2 Facilities, including with respect to testing, safety, monitoring, electricity use, emissions management, emergency response, security measures, record keeping and design changes.
- Suspension and Decommissioning: there are specific requirements for suspension of operations and decommissioning activities, with a role for qualified professionals to prepare plans.
The Regulation marks an important milestone in the regulation of hydrogen in BC. In February 2023, the BC Oil and Gas Commission’s name was changed to the BCER and its jurisdiction expanded to include hydrogen. However, hydrogen facilities were required to fit within a regulatory scheme designed for oil and gas projects that did not always align well with the nature of hydrogen projects. The Regulation puts in place a regulatory structure that is tailored to hydrogen projects, which should be a welcome development for the hydrogen industry in BC.
