Company: ENBSF
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000895728-25-000006
Chunk: 205

Company: ENBRIDGE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 1
Chunk 205
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 Rule establishing new emission limits for nitrogen oxides. The precise nature of these compliance obligations at each of our facilities has not been finally determined and may depend in part on future regulatory changes. In addition, compliance with new and emerging environmental regulatory programs may significantly increase our operating costs compared to historical levels.

In the US, climate change action is evolving at federal, state and regional levels. On March 8, 2024, the Environmental Protection Agency (EPA) released a final rule to minimize methane emissions for new and existing crude oil and natural gas facilities. Pursuant to federal regulations, we are currently subject to an obligation to report our GHG emissions through the Mandatory Greenhouse Gas Reporting Program at facilities that exceed the reporting threshold of 25,000 metric tons of carbon dioxide equivalent per year. This program was revised to include additional sources and new measurement and calculations methodologies for the oil and gas sector on May 14, 2024, and effective for reporting year 2025. These changes were designed to comply with the Inflation Reduction Act’s requirement to revise the program to utilize more empirical data. This data is used to calculate a fee under the Methane Emissions Reduction Program through the Methane Waste Emission Charge that was finalized and published on November 18, 2024. In addition, several states have joined regional GHG initiatives, and a number are developing their own programs that would mandate reductions in GHG emissions. Public interest groups and regulatory agencies are increasingly focusing on the emission of methane associated with natural gas development and transmission as a source of GHG emissions. Based on proposed changes to measure, report and mitigate GHG emissions the expectation is that there will be a significant increase in costs to maintain and report compliance for businesses in our industry. 

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Canada has adopted a pan-Canadian approach to pricing carbon emissions to incent GHG emission reductions across all sectors of the economy. This approach was adopted in 2016 and entails both a consumer price on carbon, and an intensity-based system for industry which addresses competitiveness and carbon leakage. Provinces and territories may implement their own system of carbon pricing provided it meets the federal benchmark (and if they fail to do so the federal system will be imposed on them). In March 2022, Canada published its 2030 Emissions Reduction Plan (ERP) which builds on the Pan-Canadian Framework, and Net-Zero Emissions Accountability Act, and details the roadmap for Canada to meet its domestic climate target of a 40-45% reduction in GHG emissions by 203