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

Regulations are current to 2020-11-17 and last amended on 2020-05-31. Previous Versions

Quantification (continued)

Quantification of Production for Specified Industrial Activities (continued)

Marginal note:Rounding

 Any result from a calculation under subsection 31(1) or section 32 is rounded to three significant figures.

Ratio of Heat

Marginal note:Ratio of heat

  •  (1) The ratio of heat from the combustion of fossil fuels during a compliance period is

    • (a) equal to 1 when the thermal energy is produced from the combustion of only fossil fuels;

    • (b) for a covered facility not specified in paragraph (c), determined by the following formula when the thermal energy is produced from the combustion of both fossil fuels and biomass:

      HF/(HF + B)

      where

      HF
      is determined by the formula
      The summation of the products of QFi and HHVi for each fossil fuel type “i”

      where

      QFi
      is the quantity of fossil fuel of type “i” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 7(2) of Part 38 of Schedule 3,
      HHVi
      is the higher heating value of the fossil fuel of type “i” combusted in the facility during the compliance period for the generation of thermal energy in accordance with sections 2.C.1 and 2.C.3 of the GHGRP, and
      i
      is the ith fossil fuel type combusted in the facility during the compliance period, where “i” goes from 1 to n and where n is the number of types of fossil fuels combusted, and
      B
      is determined by the formula
      The summation of the products of QBBk and HHVk for each biomass fuel type “k”

      where

      QBBk
      is the quantity of biomass fuel type “k” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 7(2) of Part 38 of Schedule 3 and the WCI Method WCI.214,
      HHVk
      is the higher heating value for biomass fuel type “k” combusted in the facility during the compliance period for the generation of thermal energy in accordance with sections 2.C.1 and 2.C.3 of the GHGRP and the WCI Method WCI.214, and
      k
      is the kth biomass fuel type combusted in the facility during the compliance period, where “k” goes from 1 to m and where m is the number of types of biomass fuels combusted; and
    • (c) for an electricity generation facility, determined by the following formula when the thermal energy is produced from the combustion of both fossil fuels and biomass:

      HF/(HF + B)

      where

      HF
      is determined by the formula
      The summation of the products of QFi and HHVi for each fossil fuel type “i”

      where

      QFi
      is the quantity of fossil fuel of type “i” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 4(3) of Part 38 of Schedule 3,
      HHVi
      is the higher heating value of the fossil fuel of type “i” combusted in the facility during the compliance period for the generation of thermal energy determined in accordance with subsection 24(1) of the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, and
      i
      is the ith fossil fuel type combusted in the facility during the compliance period, where “i” goes from 1 to n and where n is the number of types of fossil fuel combusted, and
      B
      is determined by the formula
      The summation of the products of QBBk and HHVk for each biomass fuel type “k”

      where

      QBBk
      is the quantity of biomass fuel type “k” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 4(3) of Part 38 of Schedule 3,
      HHVk
      is the higher heating value for biomass fuel type “k” combusted in the facility during the compliance period for the generation of thermal energy determined in accordance with subsection 24(1) of the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, and
      k
      is the kth biomass fuel type combusted in the facility during the compliance period, where “k” goes from 1 to m and where m is the number of types of biomass fuels combusted.
  • Marginal note:Default ratio of heat

    (2) Despite paragraph (1)(b) or (c), if, for any reason beyond the control of the person responsible for a covered facility, the data required to quantify the ratio of heat from the combustion of fossil fuels are missing for a given period during the 2019 calendar year, 1 can be used as the ratio of heat from the combustion of fossil fuels.

Emission of GHGs

Marginal note:Calculation

  •  (1) The person responsible for a covered facility must determine the quantity of GHGs that are emitted from the covered facility during a compliance period in accordance with the formula

    A – B

    where

    A
    is the total quantity of GHGs from the covered facility, expressed in CO2e tonnes, during the compliance period,
    • (a) in the case of a facility referred to in paragraph 11(1)(a), determined in accordance with section 17,

    • (b) in the case of a facility referred to in paragraph 11(1)(b), corresponding to the sum referred to in subparagraph 11(1)(b)(ii), and

    • (c) in the case of a facility referred to in paragraph 11(1)(c), corresponding to the sum referred to in subparagraph 11(1)(c)(i); and

    B
    is the quantity of CO2 captured at the covered facility that is stored during the compliance period in a storage project, determined using the quantification method described in section 1 of the GHGRP, expressed in CO2e tonnes.
  • Marginal note:Storage requirements

    (2) For the purposes of the description of B in subsection (1), the quantity of CO2 may only be included if it has been permanently stored in a storage project that meets the following criteria:

    • (a) the geological site into which the CO2 is injected is

      • (i) a deep saline aquifer for the sole purpose of storage of CO2, or

      • (ii) a depleted oil reservoir for the purpose of enhanced oil recovery; and

    • (b) the quantity of CO2 stored for the purposes of the project is captured, transported and stored in accordance with the laws applicable to Canada or a province or applicable to the United States or one of its states.

  • Marginal note:Biomass

    (3) The quantity of CO2 from biomass is not included in the amount determined for B in subsection (1).

  • Marginal note:Deemed emission of CO2

    (4) For greater certainty, the quantity of CO2 from a covered facility that has been captured but has not been permanently stored in a storage project that meets the requirements of subsection (2) is deemed to have been emitted by the covered facility and is included in the quantity of GHGs that are emitted from the covered facility.

Emissions Limit

Marginal note:General rule

  •  (1) Subject to subsection (2) and sections 16, 36.1, 36.2 and 42, the person responsible for a covered facility, other than an electricity generation facility, must determine the GHG emissions limit that applies to that covered facility for each compliance period, expressed in CO2e tonnes, in accordance with the formula

    The summation of the products of Ai and Bi for each specified industrial activity “i”

    where

    Ai
    is the covered facility’s production from each specified industrial activity “i” during the compliance period, quantified in accordance with section 31;
    Bi
    is the following output-based standard applicable to the specified industrial activity “i”, as the case may be:
    • (a) for a specified industrial activity set out in column 1 of Schedule 1 and for which an output-based standard is set out in column 3, that standard,

    • (b) for a specified industrial activity set out in column 1 of Schedule 1 and for which column 3 sets out that an output-based standard must be calculated in accordance with section 37, the output-based standard calculated in accordance with that section, or

    • (c) for any specified industrial activity not set out in column 1 of Schedule 1, the output based standard calculated in accordance with section 37; and

    i
    is the ith specified industrial activity where “i” goes from 1 to n where n is the total number of specified industrial activities engaged in at the covered facility.
  • Marginal note:Ethanol production

    (2) For the purposes of subsection (1), the person responsible for a covered facility must not include the specified industrial activity set out in paragraph 13(b), column 1, of Schedule 1 unless the covered facility also includes the specified industrial activity set out in paragraph 13(a), column 1. The covered facility is deemed to not be engaged in the specified industrial activity set out in item 32, column 1, of that Schedule.

  • Marginal note:Oilseeds

    (3) For the purposes of subsection (1), the person responsible for a covered facility where the specified industrial activity set out in item 31, column 1, of Schedule 1 is engaged in may, for the 2019 calendar year, quantify their production in finished oilseed products and use an output-based standard of 0.0431 CO2e tonnes per unit of measurement of production, instead of the production metric set out in column 2 and the output-based standard set out in column 3.

  • Marginal note:Greater certainty — fertilizer

    (4) For greater certainty, if the industrial activity set out in paragraph 29(b), column 1, of Schedule 1 and also either of the industrial activities set out in paragraph 29(c) or (d), column 1, are engaged in at the covered facility, the output-based standard applicable to the industrial activity set out in paragraph 29(b), column 1, applies and the output-based standard applicable to the industrial activity set out in paragraph 29(c) or (d), applies as the case may be.

  • Marginal note:Output-based standard

    (5) For the purposes of subsection (1), if an output-based standard must be calculated, it is calculated once, except in the situation referred to in subsection 39.

 
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