Proposal for the Output-Based Pricing System Regulations: chapter 9

The regulations will prescribe that the calculation of the limit for GHG emissions from a covered facility is to be based on the sum of the production for each covered industrial activity or sub-activity multiplied by the output-based standard for each of those activities or sub-activities. Output-based standards, determined on an emission-intensity basis, will be prescribed in the regulations.

GHG emissions limit for facilities undertaking a covered industrial activity

16.(1) Subject to subsection (2), a person responsible for a covered facility must determine the GHG emissions limit applicable, Emissions Limit_fac, to the covered facility for the applicable compliance period, expressed in tonnes of CO₂e, in accordance with the formula:

${\displaystyle \sum _{i=0}^n[{\text{OBS}}_i\times {\text{Production}}_i]}$

where

n is the total number of sub-activities, as listed in column 4 of Schedule 1 of the activities carried out by the facility;

OBS_i is the output-based standard listed in column 6 of Schedule 1 for the sub-activity i, as listed in column 4 of that schedule, or calculated in accordance with section 17, as applicable; and

Production_i is units of products produced for the sub-activity i, as listed in column 4 of Schedule 1, and with units described in column 5 of that schedule, or in the case of an eligible activity, the production for the eligible activity quantified in accordance with the method used to quantify the production of the eligible activity in the Application to be Designated as a Voluntary OBPS Participant.

(2) A person responsible for a covered facility that only carries out the covered activity of generating electricity using fossil fuel must calculate the GHG emissions limit applicable, Emissions Limit_fac, to the covered facility for the applicable compliance period, expressed in tonnes of CO₂e, in accordance with the formula:

${\displaystyle \sum _{i=0}^n\sum _{j=0}^m[{\text{OBS}}_j\times {\text{Production}}_j{]}_i}$

where,

n is the total number of units generating electricity using fossil fuels in the covered facility;

m is the total number of fossil fuel types combusted in each unit for the generation of electricity;

OBS_j is the applicable output-based standard applicable to the fossil fuel type j listed in column 6 of item 38 in Schedule 1; and

Production_j is the gross amount of electricity generated using each fossil fuel type j quantified in accordance with subsection 14(2) of these regulations.