Output-Based Pricing System Regulations

Marginal note:General rule

• 36 (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 the result of Bi minus the product of Bi, C and D minus 2022 for each specified industrial activity “i”.

  

  where

  A_i

  is the covered facility’s production from each specified industrial activity “i” during the compliance period, quantified in accordance with section 31;

  B_i

  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 of that Schedule, that standard,

  • (b) for a specified industrial activity set out in column 1 of Schedule 1 and for which column 3 of that Schedule 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, and

  • (c) for an additional industrial activity, the output-based standard calculated in accordance with section 37;

  C

  is the following tightening rate applicable to the specified industrial activity “i”, as the case may be:

  • (a) 0% for the specified industrial activity set out in item 38, column 1, of Schedule 1,

  • (b) 1% for the specified industrial activities set out in paragraph 3(c) and items 7, 8, 13, 17, 19, 20, 34, 40, 41 and 43, column 1, of Schedule 1, and

  • (c) 2% for all other specified industrial activities;

  D

  is the calendar year that corresponds to the compliance period; and

  i

  is the i^th specified industrial activity where “i” goes from 1 to n and 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:Clarification — fertilizer

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

• Marginal note:New additional industrial activity

  (4.1) For the purposes of subsection (1), an additional industrial activity that was recognized by the Minister during a calendar year is not included in the determination of the GHG emissions limit for the compliance period that corresponds to that calendar year.

• 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.