Unlocking Financial Savings: Leveraging TIER for Federal Fuel Tax Break - A Case Study
Case Study:The cost benefit of being enrolled in TIER could save up to 84.48% by enrolling in TIER.
Client: A privately owned Canadian energy company
Overview
Under the Greenhouse Gas Pollution Pricing Act (GGPPA), facilities regulated under the Technology Innovation and Emissions Reduction (TIER) system can obtain an exemption from the federal fuel charge. This case study delves into the strategic utilization of TIER to achieve cost savings and regulatory compliance in Alberta’s industrial sector.
Challenge
Solution
Enrollment in TIER provides a robust solution to mitigate the burden of federal fuel charges. By adhering to TIER regulations and submitting comprehensive annual reports comprising of fuel, flare, and production data, companies can demonstrate compliance with GGPPA mandates and access tailored emissions reduction strategies.
Outcome
- **2023:** Without TIER enrollment, the projected federal fuel tax would have amounted to $877,397.38. However, TIER participation significantly reduced the company’s financial liability to $136,110.00.
- **April 2022 – December 2022:** Prior to TIER enrollment, the company incurred a federal fuel charge of $328,047.03.
Conclusion
This case study underscores the pivotal role of TIER in achieving cost efficiency and regulatory compliance in Alberta’s industrial landscape. By embracing TIER and diligently adhering to its reporting requirements, companies can not only alleviate the financial burden of federal fuel tax but also pave the way for sustainable emissions reduction strategies tailored to their specific industry needs.
At Blue Chip MRC and Green Chip ENV, our team of GHG specialists is dedicated to assisting you in developing, managing, and supporting your environmental compliance and TIER reporting. By leveraging our expertise, you too can unlock significant savings and achieve regulatory adherence effortlessly! To learn more or get started today, email info@bluechipmrc.com
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