Output-Based Pricing System Regulations (SOR/2019-266)

Marginal note:Additional content – thermal energy

• 12 (1) If the person responsible for a covered facility sells thermal energy that is produced at the covered facility to other covered facilities or buys thermal energy from any other covered facility, they must include in their annual report

  • (a) the quantity of thermal energy, expressed in gigajoules, as well as the thermal energy’s temperature and pressure,

    • (i) sold to another covered facility during the compliance period, as determined by the quantity of thermal energy on sales receipts or by another objective method, or

    • (ii) bought from another covered facility during the compliance period, as determined by the quantity of thermal energy on sales receipts or by another objective method; and

  • (b) the ratio of heat from the combustion of fossil fuel to produce that thermal energy, calculated in accordance with section 34.

• Marginal note:Additional content – gypsum products

  (2) The person responsible for a covered facility where the specified industrial activity set out in item 10, column 1, of Schedule 1 is engaged in, must include in their annual report, the quantity, in tonnes, of each gypsum product that contains at least 70 weight percent of calcium sulphate dihydrate produced during the compliance period.

• Marginal note:Additional content – hydrogen gas

  (3) If a covered facility where a specified industrial activity set out in items 2, 3, 15 or 29, column 1, of Schedule 1 is engaged in produces hydrogen gas, the person responsible for the covered facility must include in their annual report the quantity of hydrogen gas produced during the compliance period, in tonnes, and the quantity of hydrogen gas sold during the compliance period, in tonnes.

Marginal note:Submission of annual report

• 13 (1) The person responsible for a covered facility must submit their annual report to the Minister, on or before June 1 of the calendar year following the end of the compliance period for which the annual report is prepared, along with a verification report prepared in accordance with section 52.

• Marginal note:Exception

  (2) Despite subsection (1), for the compliance period that ends on December 31, 2019, the annual report and the verification report must be submitted to the Minister on or before October 1, 2020.

Marginal note:Account opening

14 The account that the person responsible for the covered facility opens in accordance with subsection 186(1) of the Act is an Output-Based Pricing System account (OBPS account).

Request for Confidentiality

Marginal note:Content of request

15 A request for confidentiality submitted for the purposes of section 254 of the Act must provide the following information:

• (a) the information to which the request pertains, clearly identified;

• (b) the reason for the request from among those specified in paragraphs 254(a) to (c) of the Act; and

• (c) the supporting justification that the information referred to in paragraph (a) has been treated as confidential by the person making the request and is not, and has never been, available to the public.

Quantification

Variation of General Rules

Marginal note:Production of petrochemical products as a by-product

• 16 (1) The production of a petrochemical product set out in item 17, column 1, of Schedule 1 as a by-product, at a covered facility where an industrial activity, other than one set out in that item is engaged in, is not an industrial activity covered by item 17, column 1, of Schedule 1.

• Marginal note:Additional production of natural gas liquids

  (2) If natural gas liquids are produced at a covered facility where a specified industrial activity set out in item 3 or 17, column 1, of Schedule 1 is engaged in, the following rules apply:

  • (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of natural gas liquids in accordance with the methods applicable to the industrial activity set out in item 3 or 17, as the case may be, column 1, of Schedule 1; and

  • (b) for the purposes of sections 31, 36 and 36.2, the industrial activity set out in item 4, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

• Marginal note:Additional production of hydrogen gas

  (3) If hydrogen gas is produced at a covered facility where a specified industrial activity set out in item 2, 3, 15 or 29, column 1, of Schedule 1 is engaged in, the following rules apply:

  • (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of hydrogen gas in accordance with the method applicable to the industrial activity set out in item 2, 3, 15 or 29, as the case may be, column 1, of Schedule 1; and

  • (b) for the purposes of sections 31, 36 and 36.2, the industrial activities set out in items 6 and 17, column 1, of Schedule 1 are deemed not to be engaged in at the covered facility.

• Marginal note:Additional production of metal tubes

  (4) If metal tubes are produced at a covered facility where a specified industrial activity set out in item 19 or 20, column 1, of Schedule 1 is engaged in, the following rules apply:

  • (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of metal tubes in accordance with the method applicable to the industrial activity set out in item 19 or 20, as the case may be, column 1, of Schedule 1; and

  • (b) for the purposes of sections 31, 36 and 36.2, the industrial activity set out in item 22, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

• Marginal note:Additional production of lime

  (5) If lime is produced at a covered facility where a specified industrial activity set out in item 20, column 1, of Schedule 1 is engaged in, the following rules apply:

  • (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of lime in accordance with the method applicable to the industrial activity set out in item 20, column 1, of Schedule 1; and

  • (b) for the purposes of sections 36 and 36.2, the industrial activity set out in item 8, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

• Marginal note:Additional production of electricity

  (6) If electricity is produced at a covered facility where a specified industrial activity set out in item 20, column 1, of Schedule 1 is engaged in, the following rules apply:

  • (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the generation of electricity in accordance with the method applicable to the industrial activity set out in item 20, column 1, of Schedule 1; and

  • (b) for the purposes of section 36, the industrial activity set out in item 38, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

• Marginal note:Pyrometallurgical smelting of zinc and lead

  (7) If zinc and lead are pyrometallurgically smelted at a covered facility where a specified industrial activity set out in paragraph 23(b), column 1, of Schedule 1 is engaged in, the following rules apply:

  • (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the pyrometallurgical smelting of zinc and lead in accordance with the method applicable to the industrial activity set out in paragraph 23(b), column 1, of Schedule 1; and

  • (b) for the purposes of sections 31, 36 and 36.2, the industrial activity set out in paragraph 23(c), column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

• Marginal note:Pyrometallurgical smelting and refining of lead

  (7.1) If lead is pyrometallurgically smelted and refined at a covered facility where a specified industrial activity set out in paragraph 23(c), column 1, of Schedule 1 is engaged in, the following rules apply:

  • (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the pyrometallurgical smelting and refining of lead in accordance with the method applicable to the industrial activity set out in paragraph 23(c), column 1, of Schedule 1; and

  • (b) for the purposes of sections 31, 36 and 36.2, the industrial activity set out in paragraph 23(b), column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

• Marginal note:Additional production of precious metals

  (8) If gold, silver, platinum or palladium is produced at a covered facility where a specified industrial activity set out in paragraph 26(d), column 1, of Schedule 1 is engaged in, the following rules apply:

  • (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of those metals in accordance with the method applicable to the industrial activity set out in paragraph 26(d), column 1, of Schedule 1; and

  • (b) for the purposes of sections 31, 36 and 36.2, the industrial activity set out in paragraph 26(c) or (f), column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

• Marginal note:Additional production of petrochemicals

  (9) If a petrochemical product referred to in item 17, column 1, of Schedule 1 is produced at a covered facility where a specified industrial activity set out in item 3 or 4, column 1, of Schedule 1 is engaged in, the following rules apply:

  • (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of that petrochemical in accordance with the method applicable to the industrial activity set out in item 3 or 4, as the case may be, column 1, of Schedule 1; and

  • (b) for the purposes of sections 31, 36 and 36.2, the industrial activity set out in item 17, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

• Marginal note:Additional production of precious metals

  (10) If silver, platinum or palladium is produced at a covered facility where a specified industrial activity set out in paragraph 26(f), column 1, of Schedule 1 is engaged in, the following rules apply:

  • (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of those metals in accordance with the method applicable to the industrial activity set out in paragraph 26(f), column 1, of Schedule 1; and

  • (b) for the purposes of sections 31, 36 and 36.2, the industrial activity set out in paragraph 26(c), column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

Quantification of GHGs

Marginal note:Total GHGs

• 17 (1) Subject to subsection (5) and section 18, the total quantity of GHGs from a covered facility other than an electricity generation facility, during a compliance period, expressed in CO₂e tonnes, is determined by the formula

  The summation of the products of Ej and GWPj for each greenhouse gas type “j”, summed for all specified emissions types “i”

  

  where

  E_j

  is the quantity of each GHG type “j” from the covered facility during a compliance period, for each specified emission type, determined in accordance with subsections (2) to (4) or section 19;

  GWP_j

  is the global warming potential of the GHG type “j”;

  i

  is the i^th specified emission type, where “i” goes from 1 to n and where n is the number of the facility’s specified emission types; and

  j

  is the j^th GHG type, where “j” goes from 1 to m and where m is the number of greenhouse gases.

• Marginal note:Quantity of each GHG

  (2) The quantity of a GHG type “j” from a covered facility during a compliance period for a specified emission type “i” is the sum of the following quantities:

  • (a) in the case of a GHG from industrial activities set out in items 1 to 37, column 1, of Schedule 1 and also set out in column 2 of the table to the Part of Schedule 3 that is applicable to those industrial activities, from a specified emission type set out in column 1 of that table, the quantities of that GHG calculated in accordance with the requirements of the methods set out in column 3 of that table for that emission type and GHG;

  • (b) in the case of a GHG from those industrial activities but not set out in column 2 of the table to the part of Schedule 3 that applies to those activities or from a specified emission type not set out in column 1, the quantities of that GHG calculated in accordance with

    • (i) the GHGRP or the WCI Method, if those methods are applicable to the facility’s industrial activities, or

    • (ii) the IPCC Guidelines, if the methods referred to in subparagraph (i) are not applicable; and

  • (c) in the case of a GHG from industrial activities not set out in column 1 of Schedule 1, the quantities of that GHG calculated in accordance with

    • (i) the GHGRP or the WCI Method, if those methods are applicable to the facility’s industrial activities, or

    • (ii) the IPCC Guidelines, if the methods referred to in subparagraph (i) are not applicable.

• Marginal note:Sampling, analysis and measurement requirements

  (3) The sampling, analysis and measurement requirements that apply are

  • (a) if a GHG is quantified in accordance with paragraph 2(a), the requirements set out in column 4 of the table to the applicable Part of Schedule 3 for the specified emission type set out in column 1 and the GHG set out in column 2; or

  • (b) if a GHG is quantified in accordance with paragraph 2(b) or (c), the requirements specified in the methods or guidelines used for the purposes of those paragraphs.

• Marginal note:Missing data

  (4) For the purposes of subsection (2), if, for any reason beyond the control of the person responsible for a covered facility, the data required to quantify the GHGs from a facility are missing for a given period of a compliance period, replacement data for the given period must be calculated in accordance with

  • (a) if a GHG is quantified in accordance with paragraph 2(a), the requirements set out in column 5 of the table to the applicable Part of Schedule 3 for the specified emission type in column 1 and the GHG set out in column 2; or

  • (b) if a GHG is quantified in accordance with paragraph 2(b) or (c), the requirements specified in the methods or guidelines used for the purposes of those paragraphs.

• Marginal note:Emission factors — details

  (4.1) For the purposes of subsection (2), if the quantities of the GHGs are calculated in accordance with the GHGRP 2.A or 2.B, the emission factor tables set out in that method are replaced by those set out in the 2020 GHGRP.

• Marginal note:Biomass — exclusion of CH₄ and N₂O

  (5) For the purposes of the determination made under subsection (1), the quantities of CH₄ and N₂O generated from stationary devices that combust biomass for the purpose of producing useful heat are subtracted from the quantities of CH₄ and N₂O calculated in accordance with subsections (2) to (4) for stationary fuel combustion emissions.

Marginal note:Additional generation of electricity

18 For the purposes of section 17, the quantities of the GHGs for specified emission types from the generation of electricity using fossil fuels by a covered facility — other than covered facilities referred to in paragraphs 5(2)(c) and 11(1)(c) — are calculated in accordance with the methods that are applicable to any of the industrial activities engaged in at the covered facility.

Marginal note:Covered facility referred to in paragraph 5(2)(c)

19 The quantities of the GHGs for specified emission types from a covered facility referred to in paragraph 5(2)(c) are calculated in accordance with

• (a) the GHGRP or the WCI Method, if those methods are applicable; or

• (b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Marginal note:Total emissions per unit — electricity

• 20 (1) Subject to subsection (6), with respect to an electricity generation facility, the total quantity of GHGs from each unit within a facility, during a compliance period, expressed in CO₂e tonnes, is determined by the formula

  The summation of the products of Ej and GWPj for each greenhouse gas type “j”, summed for all specified emissions types “i”

  

  where

  E_j

  is the quantity of each GHG type “j” from the unit during a compliance period for each specified emission type determined in accordance with subsections (2) to (5);

  GWP_j

  is the global warming potential of the GHG type “j”;

  i

  is the i^th specified emission type, where “i” goes from 1 to n and where n is the unit’s number of specified emission types;

  j

  is the j^th GHG type, where “j” goes from 1 to m and where m is the number of greenhouse gases.

• Marginal note:Quantity of each GHG

  (2) The quantity of a GHG type “j” generated by a unit during a compliance period for a specified emission type “i” is the sum of

  • (a) for CO₂, CH₄ and N₂O from stationary fuel combustion emissions, the quantity of each of those GHGs calculated in accordance with section 1 of Part 38 of Schedule 3 for each unit;

  • (b) for a GHG set out in column 2 of the table to Part 38 of Schedule 3 for a specified emission type set out in column 1, the quantities of that GHG calculated in accordance the requirements of the methods set out in column 3 of that table for that emission type; and

  • (c) for a GHG not referred to in paragraph (a) or (b), the quantity of that GHG calculated in accordance with

    • (i) the GHGRP or the WCI Method, if those methods are applicable, or

    • (ii) the IPCC Guidelines, if the methods referred to in subparagraph (i) are not applicable.

• Marginal note:Apportioning GHGs

  (3) For the purposes of paragraph (2)(b) or (c), if the GHGs for a specified emission type referred to in subsection (2) can only be quantified for the facility as a whole, the quantity of those GHGs must be apportioned to the facility’s units on the basis of each unit’s total generation of electricity relative to the facility’s total generation of electricity.

• Marginal note:Sampling, analysis and measurement requirements

  (4) The sampling, analysis and measurement requirements that apply are

  • (a) for a GHG quantified in accordance with paragraph (2)(a), the requirements referred to in section 2 of Part 38 of Schedule 3 for each of the units;

  • (b) for a GHG quantified in accordance with paragraph (2)(b), the requirements set out in column 4 of the table to Part 38 of Schedule 3 for the specified emission type set out in column 1; and

  • (c) for a GHG quantified in accordance with paragraph (2)(c), the requirements set out in the methods or guidelines used for the purpose of that paragraph.

• Marginal note:Missing data

  (5) For the purposes of subsection (2), if, for any reason beyond the control of the person responsible for a covered facility, the data required to quantify GHGs from a unit are missing for a given period of a compliance period, replacement data for the given period must be calculated in accordance with

  • (a) if a GHG is quantified in accordance with paragraph (2)(a), the requirements set out in section 3 of Part 38 of Schedule 3;

  • (b) if the GHG is quantified in accordance with paragraph (2)(b), the requirements set out in column 5 of the table to Part 38 of Schedule 3 for the specified emission type set out in column 1; and

  • (c) if the GHGs are quantified in accordance with paragraph (2)(c), the requirements set out in the methods or guidelines used for the purpose of that paragraph.

• Marginal note:Biomass — exclusion of CH₄ and N₂O

  (6) For the purposes of the determination made under subsection (1), the quantity of CH₄ and N₂O generated from stationary devices that combust biomass for the purpose of producing useful heat are subtracted from the quantity of CH₄ and N₂O calculated in accordance with subsections (2) to (5) for stationary fuel combustion emissions.