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

Marginal note:Exception — steel

• 38 (1) For the purposes of the description of C in subsection 37(1), if the specified industrial activity for which the output-based standard is being calculated is the industrial activity set out in paragraph 20(d), column 1, of Schedule 1 and the covered facility is also engaged in the generation of electricity, the quantity of GHGs from the generation of electricity attributable to the industrial activity set out in that item are not included in the total quantity of GHGs determined for C.

• Marginal note:For greater certainty

  (2) For greater certainty, the quantity of GHGs from the generation of electricity attributable to the specified industrial activities set out in paragraphs 20(a) to (c), column 1, of Schedule 1 are included in the total quantity of emissions determined for C.

Marginal note:Recalculation of output-based standard

39 If an output-based standard applicable to a specified industrial activity was calculated in accordance with subsection 37(2.1) for a compliance period, it must be recalculated in accordance with subsection 37(1) for the third compliance period following the compliance period for which the original calculation was done. The reference years that must be used for the recalculation are the three calendar years that precede that third compliance period.

40 [Repealed, SOR/2023-240, s. 27]

Marginal note:Electricity

• 41 (1) Subject to subsection (2) and sections 41.1 and 41.2, the person responsible for an electricity generation facility must determine the GHG emissions limit that applies to the electricity generation facility for each compliance period, expressed in CO₂e tonnes, in accordance with the formula

  

  where

  A_j

  is the gross amount of electricity generated during the compliance period quantified in accordance with section 32, for each unit “i” within the electricity generation facility, from each of the industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that is engaged in at the electricity generation facility;

  B_j

  is the output-based standard applicable to each specified industrial activity set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at each unit “i” and that is set out in column 3;

  i

  is the i^th unit, where “i” goes from 1 to n and where n is the total number of units within the electricity generation facility generating electricity using fossil fuels; and

  j

  is the j^th activity, where “j” goes from 1 to m and where m is the total number of industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at the facility.

• Marginal note:Output-based standard — exception

  (2) The output-based standard applicable to the industrial activity set out in paragraph 38(a), column 1, of Schedule 1 applies to a boiler unit if it generates electricity using liquid or gaseous fuel and it

  • (a) is registered under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, or it was at any given time in 2018; and

  • (b) used solid fuel to generate electricity in 2018.

Marginal note:New electricity production facility — gaseous fuel

• 41.1 (1) If an electricity generation facility begins generating electricity on or after January 1, 2021 and meets the following criteria, the person responsible for the covered facility must determine the GHG emissions limit that applies to the facility for each compliance period as of the compliance period during which the electricity generation began, in accordance with subsection (2):

  • (a) at least one unit within the facility generates electricity from gaseous fuels; and

  • (b) at least one of the units that generates electricity from gaseous fuels within the facility has an electricity generation capacity equal to or greater than 50 MW and is designed to operate at a thermal energy to electricity ratio of less than 0.9.

• Marginal note:Different output-based standard

  (2) The GHG emissions limit that applies to the electricity generation facility, expressed in CO₂e tonnes, is determined for each compliance period in accordance with the formula

  

  where

  A_j

  is, for each unit “i” within the electricity generation facility that generates electricity from solid fuel or liquid fuel, the gross amount of electricity generated during the compliance period, quantified in accordance with section 32, from the specified industrial activities set out in paragraph 38(a) and (b), column 1, of Schedule 1 that are engaged in at the unit;

  B_j

  the output-based standard applicable to each specified industrial activity set out in paragraphs 38(a) and (b), column 1, of Schedule 1 that the are engaged in at each unit “i” and that is set out in column 3;

  C

  is, for each unit “k” within the electricity generation facility that generates electricity from gaseous fuels, that has an electricity generation capacity equal to or greater than 50 MW and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit quantified in accordance with section 32;

  D

  is the output-based standard applicable and is

  • (a) 370 CO₂e tonnes per unit of measurement, for compliance period 2021,

  • (b) 329 CO₂e tonnes per unit of measurement, for compliance period 2022,

  • (c) 288 CO₂e tonnes per unit of measurement, for compliance period 2023,

  • (d) 247 CO₂e tonnes per unit of measurement, for compliance period 2024,

  • (e) 206 CO₂e tonnes per unit of measurement, for compliance period 2025,

  • (f) 164 CO₂e tonnes per unit of measurement, for compliance period 2026,

  • (g) 123 CO₂e tonnes per unit of measurement, for compliance period 2027,

  • (h) 82 CO₂e tonnes per unit of measurement, for compliance period 2028,

  • (i) 41 CO₂e tonnes per unit of measurement, for compliance period 2029, and

  • (j) 0 CO₂e tonnes per unit of measurement, for compliance period 2030 and subsequent compliance periods; and

  E

  is, for each unit “l” within the electricity generation facility generating electricity from gaseous fuels, that has an electricity generation capacity of less than 50 MW or is designed to operate at a thermal energy to electricity ratio of 0.9 or greater, the gross amount of electricity generated during the compliance period from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, that is engaged in at the unit quantified in accordance with section 32;

  F

  the output-based standard applicable to each specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that are engaged in at each unit “i” and that is set out in column 3;

  i

  is the i^th unit, where “i” goes from 1 to n and where n is the total number of units within the electricity generation facility generating electricity using solid fuel or liquid fuel;

  j

  is the j^th activity, where “j” goes from 1 to m and where m is the total number of industrial activities set out in paragraphs 38(a) to (b), column 1, of Schedule 1 that is engaged in at the electricity generation facility;

  k

  is the k^th unit, where “k” goes from 1 to r and where r is the total number of units within the electricity generation facility, generating electricity using gaseous fuel, that have an electricity generation capacity equal to or greater than 50 MW and are designed to operate at a thermal energy to electricity ratio of less than 0.9;

  l

  is the l^th unit, where “l” goes from 1 to s and where s is the total number of units within the electricity generation facility, generating electricity using gaseous fuel, that have an electricity generation capacity of less than 50 MW or are designed to operate at a thermal energy to electricity ratio of 0.9 or greater.

Marginal note:Increased capacity of electricity generation

• 41.2 (1) If, on or after January 1, 2021, an electricity generation facility’s electricity generation capacity from gaseous fuels increases by 50 MW or more and that increased capacity is from a unit designed to operate at a thermal energy to electricity ratio of less than 0.9, the person responsible for the covered facility must determine the GHG emissions limit that applies to the facility for each compliance period, as of the compliance period during which the increase occurred, in accordance with subsection (2).

• Marginal note:Different output-based standard

  (2) The GHG emissions limit that applies to the electricity generation facility, expressed in CO₂e tonnes, is determined for each compliance period in accordance with the formula

  

  where

  A_j

  is the gross amount of electricity generated during the compliance period, quantified in accordance with section 32, for each of the following units:

  • (a) for each unit “i” within the electricity generation facility, from each of the specified industrial activities set out in paragraphs 38(a) and (b), column 1, of Schedule 1 that are engaged in at the electricity generation facility,

  • (b) from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit, for each unit “i” within an electricity generation facility that

    • (i) was generating electricity prior to the facility’s increase in electricity generation capacity, except units referred to in the description of E or F, and

    • (ii) that began generating electricity on or after January 1, 2021, if the unit has an electricity generation capacity of less than 50 MW or designed to operate at a thermal energy to electricity ratio equal to or greater than 0.9;

  B_j

  the output-based standard applicable to each of the specified industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at each unit “i” and that is set out in column 3;

  C

  is, for each unit “k” within the electricity generation facility that started generating electricity from gaseous fuels on or after January 1, 2021, that has an electricity generation capacity equal to or greater than 50 MW and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit quantified in accordance with section 32;

  D

  is the output-based standard set out in the description of D in subsection 41.1(2) that is applicable to the compliance period in question;

  E

  is, for each unit “l” that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity was increased by 50 MW or more and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period that is attributed to the capacity added to a unit, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit, quantified in accordance with section 32 and subsection (3);

  F

  is, for each unit “l” that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity was increased by 50 MW or more and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period that is attributed to the capacity of the unit before the additional capacity was added, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, that is engaged in at the unit, quantified in accordance with section 32 and subsection (3);

  G

  is the output-based standard applicable to the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 and set out in column 3;

  i

  is the i^th unit, where “i” goes from 1 to n and where n is the total number of units within the electricity generation facility generating electricity using fossil fuels, except units referred to in the description of k and l;

  j

  is the j^th activity, where “j” goes from 1 to m and where m is the total number of industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at the electricity generation facility;

  k

  is the k^th unit, where “k” goes from 1 to r and where r is the total number of units within the electricity generation facility that started generating electricity from gaseous fuels on or after January 1, 2021, that have an electricity generation capacity equal to or greater than 50 MW and that are designed to operate at a thermal energy to electricity ratio of less than 0.9; and

  l

  is the l^th unit, where “l” goes from 1 to s and where s is the total number of units that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity was increased by 50 MW or more and that are designed to operate at a thermal energy to electricity ratio of less than 0.9.

• Marginal note:Apportionment of electricity generation

  (3) For the purposes of the descriptions of E and F in subsection (2), the gross amount of electricity generated by a unit referred to those descriptions is apportioned, using engineering estimates, to the capacity added to the unit and to the capacity of the unit before the additional capacity was added, based on the ratio of its increased capacity to its total capacity, taking into account the increased capacity.

• Marginal note:Increased capacity — rule

  (4) For the purposes of subsection (1), the electricity generation capacity, from gaseous fuels, of an electricity generation facility increases by 50 MW or more for a calendar year as of the day on which its electricity generation capacity is 50 MW greater than its electricity generation capacity on December 31, 2020. For greater certainty, any increase in a unit’s capacity is cumulative.

Marginal note:Presumption

41.3 For the purposes of sections 41.1 and 41.2, if the output-based standard set out in subsection 41.1(2) applies to a unit or group of units for a compliance period for the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, that output-based standard will continue to apply to the unit or group of units even if the unit or group of units is not producing electricity from gaseous fuel or has a thermal energy to electricity ratio that is equal to or greater than 0.9.

Marginal note:Coal and electricity

42 The person responsible for a covered facility where the specified industrial activities engaged in are both the production of coal by mining coal deposits and the generation of electricity and that is comprised of a unit or a group of units that are registered under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations must calculate the GHG emissions limit that applies to the covered facility for each compliance period by adding the emissions limit obtained in subsection 36(1) for that compliance period for the specified industrial activity set out in item 25, column 1, of Schedule 1 and the emissions limit determined under section 41 or 41.2 for that compliance period for the specified industrial activities set out in paragraphs 38(a) to (c), column 1, of that Schedule, expressed in CO₂e tonnes.

Marginal note:New covered facilities

• 43 (1) If, on January 1 of a compliance period, a covered facility has not completed two calendar years of production following the date of first production, sections 36 to 42 do not apply to the covered facility for that compliance period.

• Marginal note:Primary activity

  (2) Subsection (1) only applies to a covered facility whose primary activity is a specified industrial activity.

• Marginal note:New electricity generation facility

  (3) Subsection (1) does not apply to an electricity generation facility that begins generating electricity on or after January 1, 2021.

• Marginal note:Date of production

  (4) For the purposes of subsection (1), to determine the date of first production for a covered facility all industrial activities that the facility has previously been or is currently engaged in must be taken into account.