Output-Based Pricing System Regulations

Marginal note:Increased capacity of electricity generation

• 36.2 (1) Subject to subsections 16(1) to (5) and (7) to (10), if, on or after January 1, 2021, a covered facility — other than a covered facility referred to in subsection 16(6) — increases its electricity generation capacity from gaseous fuels by 50 MW or more and that increased capacity is from equipment that has a thermal energy to electricity ratio of less than 0.9 and that was added after that date or has had its capacity increased and, the person responsible for the covered facility must determine the covered facility’s GHG emissions limit 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 covered facility for a compliance period, expressed in CO₂e tonnes, is determined 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”, plus the summation of the products of E and F and the products of G and F and the products of H and I.

  

  where

  A_i

  is the covered facility’s production during the compliance period, quantified in accordance with section 31,

  • (a) from each specified industrial activity “i”, except the industrial activity set out in paragraph 38(c), column 1, of Schedule 1, and

  • (b) from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, other than from equipment referred to in the descriptions of E, G and H;

  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;

  E

  is the gross amount of electricity generated during the compliance period by the equipment that started generating electricity from gaseous fuels on or after January 1, 2021, and is designed to operate at a thermal energy to electricity ratio of less than 0.9, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 31;

  F

  is the output-based standard set out in subsection 36.1(2) that is applicable for the compliance period;

  G

  is, for equipment with increased electricity generation capacity and a thermal energy to electricity ratio of less than 0.9, other than equipment referred to in the description of E, the gross amount of electricity generated during the compliance period attributed to the capacity added to the equipment, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 31 and subsection (3);

  H

  is, for equipment with increased electricity generation capacity and a thermal energy to electricity ratio of less than 0.9, other than equipment referred to in the description of E, the gross amount of electricity generated during the compliance period attributed to the capacity of the equipment before the additional capacity was added, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 31 and subsection (3);

  I

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

  i

  is the i^th specified industrial activity where “i” goes from 1 to n and where n is the total number specified industrial activities engaged in at the covered facility.

• Marginal note:Apportionment of electricity generation

  (3) For the purposes of the descriptions of G and H in subsection (2), the gross amount of electricity generated by the equipment referred to in those descriptions is apportioned, using engineering estimates, to the equipment’s capacity added to the equipment and to the capacity of the equipment before the additional capacity was added, based on the ratio of the amount 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 of a 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 capacity is cumulative.