Proposal for the Output-Based Pricing System Regulations: chapter 12

The regulations will require a person responsible for a covered facility to assess, for each compliance period, the quantity of net greenhouse gases that was emitted by the covered facility against the applicable emissions limit for the facility. In other words, a person responsible for a covered facility will have to determine, for each compliance period, whether they would be required to provide compensation under section 174 of the Act, or whether they would be eligible to receive surplus credits under 175 of the Act.

For the purpose of this assessment, the quantity of greenhouse gases emitted by a covered facility will be equal to its net GHG emissions (see above).

The following rules set out the requirements that relate to the assessment described above.

Assessment of emissions against limit

19. (1) A person responsible for a covered facility must assess the net greenhouse gases emitted by the covered facility during the applicable compliance period against its applicable GHG emissions limit in accordance with the formula

Emissions_{net fac} – Emissions Limit_fac

where

Emissions_{net fac} is the net GHG emitted by the covered facility during the applicable compliance period, expressed in tonnes of CO₂e, as determined in accordance with subsections 14(2) and (3) and section 15; and

Emissions Limit_fac is the GHG emissions limit applicable to the covered facility for the applicable compliance period, expressed in tonnes of CO₂e, as determined in accordance with section 16.

Emissions above GHG limit

(2) If the result of the formula in subsection (1), expressed in tonnes of CO₂e, is positive, section 174 of the Act will apply in accordance with the requirements set out in sections 20 to 23.

Emissions below GHG limit

(3) If the result of the formula in subsection (1), expressed in tonnes of CO₂e, is negative, section 175 of the Act will apply in accordance with the requirements set out in section 24.