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 section 2.5 of the directive entitled CAN-CWB Methodology for Regulatory Support: Public Report, published by Solomon Associates in January 2014.

  • (1.1) When quantifying the direct-only complexity weighted barrels, the emissions and energy use accounted for are those that are associated with the industrial activity set out in paragraph 3(a), column 1 of Schedule 1.

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

    • (a) the value of “Sales and Exports of Steam and Electricity” is equal to zero;

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

      • (i) the emissions associated with electricity generated at the covered facility and used for the purpose of the industrial activity set out in paragraph 3(a), column 1 of Schedule 1, prorated based on the energy used for the refinery operation, and

      • (ii) the emissions associated with steam generated at the covered facility but not used for the purpose of the industrial activity set out in paragraph 3(a), column 1 of Schedule 1;

    • (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 used for the purpose of the industrial activity set out in paragraph 3(a), column 1 of Schedule 1, prorated based on the energy used for the refinery operation, and

      • (ii) for purchased electricity, is calculated using 0.420 tonnes of CO₂e per megawatt hours of electricity bought;

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

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

PART 3.1Surface mining of oil sands and extraction of bitumen

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 megawatt hours, 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_x

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

    L_x

    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_x

    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, determined by the formula:

  The summation of the products of A and B for each tank “i”

  

  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 of tanks used to combine ingredients for that step.

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 24.1Production of Evaporated Salt

PART 25Coal Mining

PART 26Production of Metals or Diamonds

PART 27Char Production

PART 28Activated Carbon Production

PART 29Nitrogen-based Fertilizer Production

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• 1 The quantity of urea liquor does not include the urea liquor used in the production of granular urea.

PART 30Industrial Potato Processing

PART 31Industrial Oilseed Processing

PART 32Alcohol Production

PART 33Wet Corn Milling

PART 34Citric Acid Production

PART 35Sugar Refining

PART 35.1Production of Malt

PART 36Pulp and Paper Production

DIVISION 1Quantification of 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 37Main Assembly of Vehicles

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• 1 Production is the number of vehicles referred to in item 37 of column 1, of Schedule 1 that are assembled during the compliance period.

PART 38Electricity Generation

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production — Main Industrial Activity

• • 1 (1) Subject to section 2, if a unit uses only one fossil fuel to generate electricity, production of electricity must be quantified in Gigawatt hours 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 set out in subsection 31(2) of these Regulations.

  • (2) Subject to section 2, 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 Gigawatt hours:

    Gu is multiplied by a quotient where the numerator is HFFk, and the denominator is HB plus the summation of HFFk for each gaseous fuels, liquid fuels and solid fuels “k”.

    

    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 set out in subsection 31(2) of these Regulations;

    HFF_k

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

    The summation of the products of QFFj and HHVj for each fossil fuel type “j”.

    

    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 Quantification Methods, 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

    HB

    is determined in accordance with the formula

    The summation of the products of QBi and HHVi for each biomass fuel type “i”

    

    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 Quantification Methods, 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.

• 2 If a combustion engine unit and a boiler unit share the same steam turbine, the quantity of gross electricity generated by a given unit is determined by the formula

  G_ce + G_s – G_ext

  where

  G_ce

  is the gross quantity of electricity that is generated by the generators of the combustion engines in a combustion engine unit that shares a steam turbine with a boiler unit, in the calendar year, expressed in Gigawatt hours, as measured at the electrical terminals of the generators of the combustion engines using meters that comply with the requirements set out in subsection 31(2) of these Regulations, if the given unit for which the electricity is being quantified is a combustion engine unit, or equal to zero, if the given unit for which the electricity is being quantified is a boiler unit;

  G_s

  is the gross quantity of electricity that is generated by the generators of the shared steam turbine in the calendar year, expressed in Gigawatt hours, as measured at the electrical terminals of the generators of the shared steam turbine using meters that comply with the requirements set out in subsection 31(2) of these Regulations; and

  G_ext

  is the quantity of electricity that is generated by the unit other than the given unit for which the electricity is being quantified, in the calendar year, expressed in Gigawatt hours and that is determined by the formula

  Gext is equal to Gs, multiplied by the summation for all time periods “t” of a quotient where the numerator is the summation of the products of hext,j and Mext,j for each heat stream “j”, and the denominator is the summation of the products of hext,j and Mext,j for each heat stream “j” plus the summation of the products of hint,k and Mint,k for each heat stream “k”.

  

  where

  G_s

  is the gross quantity of electricity that is generated by the generators of the shared steam turbine in the calendar year, expressed in Gigawatt hours, as measured at the electrical terminals of the generators of the shared steam turbine using meters that comply with the requirements set out in subsection 31(2) of these Regulations,

  t

  is the t^th hour, where “t” goes from the number 1 to x and where x is the total number of hours during which the generators of the shared steam turbine generated electricity in the calendar year,

  j

  is the j^th external heat stream, originating from the other unit where “j” goes from the number 1 to m and where m is the total number of external heat streams that contributed to the electricity generated by the generators of the shared steam turbine of the unit,

  h_ext,j

  is the average specific enthalpy of the j^th external heat stream, originating from the other unit that contributed to the electricity generated by the generators of the shared steam turbine, expressed in gigajoules/tonne, during period “t” and must be based on the measurement of the temperature and pressure of that heat stream and determined using a continuous measuring device,

  M_ext,j

  is the mass flow of the j^th external heat stream originating from the other unit that contributed to the electricity generated by the generators of the shared steam turbine, expressed in tonnes, during period “t”, determined using a continuous measuring device,

  k

  is the k^th internal heat stream originating from the given unit, where “k” goes from the number 1 to l and where l is the total number of heat streams that originated from the combustion of fuel in the unit and that contributed to the electricity generated by the generators of the shared steam turbine,

  h_int,k

  is the average specific enthalpy of the k^th internal heat stream originating from the given unit and having contributed to the electricity generated by the generators of the shared steam turbine, expressed in GJ/tonne, during period “t” and must be based on the measurement of the temperature and pressure of that heat stream and determined using a continuous measuring device, and

  M_int,k

  is the mass flow of the k^th internal heat stream originating from the given unit that contributed to the electricity generated by the generators of the shared steam turbine, expressed in tonnes, during period “t”, determined using a continuous measuring device.

DIVISION 3Secondary Industrial Activity – Quantification of Production

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

• • 4 (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 Gigawatt hours:

    Gu is multiplied by a quotient where the numerator is HFFk, and the denominator is HB plus the summation of HFFk for each gaseous fuels, liquid fuels and solid fuels “k”

    

    where

    G_U

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

    HFF_k

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

    The summation of the products of QFFj and HHVj for each fossil fuel type “j”

    

    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 Quantification Methods,

    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 Quantification Methods, 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

    HB

    is determined in accordance with the formula

    The summation of the products of QBi and HHVi for each biomass fuel type “i”

    

    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 Quantification Methods,

    HHV_i

    is the higher heating value for each biomass fuel type “i” combusted in the facility for electricity generation in accordance with Quantification Methods, 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 Quantification Methods;

    • (b) for a liquid fuel, the volume of the fuel combusted, expressed in kL and measured in accordance with Quantification Methods; and

    • (c) for a gaseous fuel, the volume of the fuel combusted, expressed in standard cubic metres and measured in accordance with Quantification Methods.

PART 39Production of wood products

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• • 1 (1) The quantity of wood veneer does not include wood veneer used in the production of plywood.

  • (2) The quantity of wood veneer and plywood refers only to wood veneer and plywood that will not undergo an additional transformation at the facility.

• 2 The quantity of lumber produced refers only to lumber that will not undergo an additional transformation at the facility.

• 3 The quantity of particle board and of panels composed primarily of cellulosic fibers and a bonding system cured under heat and pressure, including hardboard, is quantified after they are cured under heat and pressure.

PART 40Aluminium production from alumina

PART 41Production of baked anodes — Aluminium

PART 42Production of calcined petroleum coke — Aluminium

PART 43Production of alumina from bauxite

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• 1 The production is quantified, in tonnes of alumina (Al₂O₃) equivalent determined by the following formula:

  A x 0.6536

  where

  A

  is the quantity of alumina hydrate produced at the precipitation step, expressed in tonnes.

PART 44Production of pneumatic tires

DIVISION 1Quantification of Emissions

DIVISION 2Quantification of Production

• 1 The quantity of pneumatic tires does not include solid tires.