Output-Based Pricing System Regulations

PART 1Bitumen and Other Crude Oil Production

PART 2Bitumen and Heavy Oil Upgrading

PART 3Petroleum Refining

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• • 1 (1) Direct-only complexity weighted barrels (direct-only CWB) is quantified in accordance with the method outlined in the directive entitled CAN-CWB Methodology for Regulatory Support: Public Report, published by Solomon Associates in January 2014.

  • (2) In the method referred to in subsection (1),

    • (a) the value of “Sales and Exports of Steam and Electricity” must be set to zero;

    • (b) the value of “EC Reported CO₂e Site Emissions” excludes

      • (i) the emissions associated with electricity generated at the covered facility, and

      • (ii) the emissions associated with steam generated but not used by the covered facility;

    • (c) the value of “Deemed Indirect CO₂e Emissions from imported electricity”

      • (i) includes emissions associated with electricity that is generated and used at the covered facility, and

      • (ii) is calculated using 0.420 tonnes of CO₂e per MWh of electricity bought;

    • (d) the value of “Deemed Indirect CO₂e Emissions from imported steam” is equal to 0; and

    • (e) the value of the “CWB factor” used to calculate hydrogen generation, in all cases, is 5.7.

PART 4Natural Gas Processing

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• 1 The combined quantity, in cubic metres, of propane and butane set out in paragraph 4(b), column 2, of the table to Schedule 1 is the sum of the quantity of propane, in cubic metres, at a temperature of 15°C and at an equilibrium pressure and the quantity of butane at a temperature of 15°C and at an equilibrium pressure, in cubic metres.

PART 5Natural Gas Transmission

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• • 1 (1) Production by the covered facility, expressed in MWh, is the sum of the amounts determined by the following formula for each of the drivers operated by the covered facility:

    P_x × L_x× H_x

    where

    P

    is the rated brake power of driver “x”, expressed in megawatts;

    L

    is the actual annual average percent load of driver “x”, or, if the actual annual average percent load is unavailable, the percentage determined by the formula:

    rpm_avg /rpm_max

    where

    rpm_avg

    is the actual annual average speed during operation of driver “x”, expressed in revolutions per minute, and

    rpm_max

    is the maximum rated speed of driver “x”, expressed in revolutions per minute;

    H

    is the number of hours during the compliance period that driver “x” was operated; and

  • (2) The following definitions apply in this section.

    driver

    driver means an electric motor, reciprocating engine or turbine used to drive a compressor. (conducteur)

    rated brake power

    rated brake power means the maximum brake power of a driver as specified by its manufacturer either on its nameplate or otherwise. (puissance au frein nominale)

PART 6Hydrogen Gas Production

PART 7Cement and Clinker Production

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• 1 The quantity of clinker set out in paragraph 7(a), column 2, of Schedule 1 refers only to clinker that is transported out of the facility.

• 2 The quantity of grey cement and white cement set out in paragraphs 7(b) and (c), column 2, of Schedule 1 refers only to cement produced from clinker that was produced at that facility and that has not been transported out of the facility.

PART 8Lime Manufacturing

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• 1 The quantity of dolomitic lime does not include the dolomitic lime used in the production of speciality lime.

PART 9Glass Manufacturing

PART 10Gypsum Product Manufacturing

PART 11Mineral Wool Insulation Manufacturing

PART 12Brick Production

PART 13Ethanol Production

PART 14Furnace Black Production

PART 152–methylpentamethylenediamine (MPMD) Production

PART 16Nylon Production

PART 17Petrochemicals Production

PART 18Vaccine Production

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• 1 Production is quantified at the end of the formulation step of the manufacturing process, in litres of vaccine, as follows:

  

  where:

  A

  is the capacity of each tank “i” that is used to combine ingredients at that step, expressed in litres;

  B

  is the number of batches produced in tank “i”; and

  i

  is the i^th tank where “i” goes from 1 to n where n is the total number tanks used to combine ingredients.

PART 19Scrap-based Steel Production

PART 20Integrated Steel Production

PART 21Iron Ore Pelletizing

PART 22Metal Tube Manufacturing

PART 23Base Metal Production

PART 24Potash Production

PART 25Coal Mining

• 1 For the purpose of item 2 of Table 1 to this Part, the CH₄ leakage emissions from surface coal mining are quantified by multiplying the quantity of coal extracted by the applicable emission factor set out in column 3 of Table 2 to this Part according to the province of extraction set out in column 1 and the coal type set out in column 2 of Table 2.

PART 26Production of Metals or Diamonds

PART 27Char Production

PART 28Activated Carbon Production

PART 29Nitrogen-based Fertilizer Production

PART 30Industrial Potato Processing

PART 31Industrial Oilseed Processing

PART 32Alcohol Production

PART 33Wet Corn Milling

PART 34Citric Acid Production

PART 35Sugar Refining

PART 36Pulp and Paper Production

DIVISION 1Quantification of Emissions

• 1 For the purposes of the table to this Division, GHGs from stationary fuel combustion emissions from biomass fuels may be quantified using equations 2-1, 2-2, 2-3, 2-7, 2-8, 2-9, 2-13, 2-14 or 2-18 of the GHGRP, if applicable.

• Return to footnote ^(a)For the combustion of biomass fuels where CH₄ and N₂O emission factors are not prescribed, the IPCC Guidelines must be used to estimate those emissions.

DIVISION 2Quantification of Production

• • 1 (1) Production by the covered facility is quantified in tonnes of finished product or tonnes of specialty product, as follows:

    • (a) in the case of pulp, including dissolving pulp for viscose,

      • (i) if the moisture content exceeds 10%, the weight of the pulp is adjusted so that its moisture content does not exceed 10%, and

      • (ii) if the moisture content is equal to or less than 10%, the weight of the pulp without adjustment; and

    • (b) in the case of a finished product or specialty product referred to in subsection (3) derived directly from pulp or the pulping process, the weight of the product or, if it has been machine dried, its weight after it has been dried.

  • (2) A finished product referred to in paragraph (1)(b) does not include pulping liquor, wood waste, non-condensable gases, sludge, tall oil, turpentine, biogas, steam, water or products that are used in the production process.

  • (3) For the purposes of paragraph (1)(b), a specialty product means abrasive paper base, food grade grease resistant paper, packaging waxed paper base, paper for medical applications, napkin paper for commercial use, towel paper for commercial or domestic use, bath paper for domestic use and facial paper for domestic use.

PART 37Automotive Production

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• 1 Production is the number of four-wheeled self-propelled vehicles that are designed for use on a highway and that have a gross vehicle weight rating of less than 4 536 kg (10,000 pounds) assembled during a compliance period.

PART 38Electricity Generation

DIVISION 1Quantification of Emissions

Stationary Fuel Combustion Emissions

• • 1 (1) CO₂, CH₄ and N₂O from stationary fuel combustion emissions must be quantified by unit in accordance with the following:

    • (a) for CO₂,

      • (i) in the case of any unit that has obtained a registration number under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, sections 20 to 26 of those Regulations,

      • (ii) in the case of any unit that has not obtained a registration number under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations and that generates electricity from the combustion of natural gas, sections 12 to 18 of the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity, and

      • (iii) in the case of any other unit, GHGRP 2.A; and

    • (b) for CH₄ and N₂O, in the case of all units, GHGRP 2.B.

  • (2) For the purposes of paragraph (1)(b), for the stationary combustion of diesel, the following emission factors must be used instead of those set out in Table 2-6 to section 2.B of the GHGRP:

    • (a) for CH₄, 0.133 kg/kL; and

    • (b) for N₂O, 0.4 kg/kL.

• 2 The following sampling, analysis and measurement requirements apply to stationary fuel combustion emissions for each unit:

  • (a) for CO_2,

    • (i) in the case of any unit that has obtained a registration number under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, section 27 of those Regulations,

    • (ii) in the case of any unit that has not obtained a registration number under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations and that generates electricity from the combustion of natural gas, section 19 of the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity, and

    • (iii) in the case of any other unit, GHGRP 2.C; and

  • (b) for CH₄ and N₂O, in the case of all units, GHGRP 2.C.

• 3 Replacement data for stationary fuel combustion emissions must be calculated for each unit in accordance with the following:

  • (a) for CO_2,

    • (i) in the case of any unit that has obtained a registration number under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, section 28 of those Regulations,

    • (ii) in the case of any unit that has not obtained a registration number under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations and that generates electricity from the combustion of natural gas, section 20 of the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity, and

    • (iii) in the case of any other unit, GHGRP 2.D; and

  • (b) for CH₄ and N₂O, in the case of all units, GHGRP 2.D.

Emissions from Other Specified Emission Types

DIVISION 2Quantification of Production — Main Industrial Activity

• • 4 (1) Subject to section 5, if a unit uses only one fossil fuel to generate electricity, production of electricity must be quantified in GWh of gross electricity generated by the unit, measured at the electrical terminals of the generators of each unit using meters that comply with the requirements of the Electricity and Gas Inspection Act and the Electricity and Gas Inspection Regulations.

  • (2) Subject to section 5, if a unit uses a mixture of fossil fuels or a mixture of biomass and fossil fuels to generate electricity, the gross electricity generated by the unit is to be determined separately for the gaseous fuels, liquid fuels and solid fuels in accordance with the following formula and expressed in GWh:

    

    where

    G_U

    is the gross quantity of electricity generated by the unit during a compliance period, as measured at the electrical terminals of the generators of the unit using meters that comply with the requirements of the Electricity and Gas Inspection Act and the Electricity and Gas Inspection Regulations, expressed in GWh;

    HFF_k

    is determined in accordance with the following formula, calculated separately for gaseous fuels, liquid fuels and solid fuels type “k”:

    

    where

    QFF_j

    is the quantity of gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the unit to generate electricity during the compliance period, determined in accordance with subsection (3),

    HHV_j

    is the higher heating value of the gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the unit, determined in accordance with subsection 24(1) of the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, and

    j

    is the j^th fossil fuel type combusted in the unit, where “j” goes from 1 to m and where m is the number of types of gaseous, liquid or solid fuel combusted, as the case may be, combusted; and

    H_B

    is determined in accordance with the formula

    

    where:

    QB_i

    is the quantity of biomass fuel type “i” combusted in the unit to generate electricity during the compliance period, determined in accordance with the subsection (3),

    HHV_i

    is the higher heating value for the biomass fuel type “i” combusted in the unit, is 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 i^th biomass fuel type combusted in the unit, where “i” goes from 1 to n and where n is the number of types of biomass fuels combusted.

  • (3) The quantity of fuel for QFF_j or QB_i is determined on the following basis:

    • (a) for a solid fuel, the mass of the fuel combusted, on a wet or dry basis, expressed in tonnes and measured by a measuring device;

    • (b) for a liquid fuel, the volume of the fuel combusted, expressed in kL and measured using a flow meter; and

    • (c) for a gaseous fuel, the volume of the fuel combusted, expressed in standard cubic metres and measured using a flow meter.

• 5 If a combustion engine unit and a boiler unit share the same steam turbine, the quantity of electricity generated by a given unit is determined in accordance with subsection 11(2) of the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity.

DIVISION 3Additional Industrial Activity – Quantification of Production

• 6 If a covered facility uses only one fossil fuel to generate electricity, production of electricity is quantified in GWh of gross electricity generated through the use of fossil fuels.

• • 7 (1) If a covered facility uses a mixture of fossil fuels or a mixture of biomass and fossil fuels to generate electricity, the gross electricity generated by the facility is to be determined separately for the gaseous fuels, liquid fuels and solid fuels in accordance with the following formula and expressed in GWh:

    

    where

    G_U

    is the gross quantity of electricity generated by the covered facility during the compliance period, expressed in GWh;

    HFF_k

    is determined in accordance with the following formula, calculated separately for gaseous fuels, liquid fuels and solid fuels type “k”:

    

    where

    QFF_j

    is the quantity of gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the facility for electricity generation during the compliance period, determined under subsection (2) and in accordance with section 2.C.2 of the GHGRP 2.C.2,

    HHV_j

    is the higher heating value of the gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the facility for electricity generation determined in accordance with sections 2.C.1 and 2.C.3 of the GHGRP, and

    j

    is the j^th fossil fuel type combusted in the facility, where “j” goes from 1 to m and where m is the number of types of gaseous, liquid or solid fuels combusted, as the case may be; and

    H_B

    is determined in accordance with the formula

    

    where

    QB_i

    is the quantity of biomass fuel type “i” combusted in the facility for electricity generation during the compliance period, determined in accordance with subsection (2) and with section 2.C.2 of the GHGRP and the WCI Method WCI.214,

    HHV_i

    is the higher heating value for each biomass fuel type “i” combusted in the facility for electricity generation in accordance with sections 2.C.1 and 2.C.3. of the GHGRP and the WCI Method WCI.214, and

    i

    is the i^th biomass fuel type combusted in the facility, where “i” goes from 1 to n and where n is the number of types of biomass fuels combusted.

  • (2) The quantity of fuel for QFF_j and QB_i is determined on the following basis:

    • (a) for a solid fuel, the mass of the fuel combusted, on a wet or dry basis, expressed in tonnes and measured in accordance with section 2.C.2 of the GHGRP;

    • (b) for a liquid fuel, the volume of the fuel combusted, expressed in kL and measured in accordance with section 2.C.2. of the GHGRP; and

    • (c) for a gaseous fuel, the volume of the fuel combusted, expressed in standard cubic metres and measured in accordance with section 2.C.2 of the GHGRP 2.C.2.