Output-Based Pricing System Regulations

Marginal note:Calculation

• 35 (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 Quantification Methods, expressed in CO₂e tonnes.

• Marginal note:CO₂ — quantity that may be subtracted

  (2) For the purposes of the description of B in subsection (1), the quantity of CO₂ may only be included in that description if it has been included in the description of A and 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 included in the description of A in subsection (1).