Output-Based Pricing System Regulations — 37
Calculated output-based standard 37 (1) Subject to subsection (3) and sections 38 and 39, the output-based standard that is applicable to a specified industrial activity of a covered facility, for which an output-based standard must be calculated in accordance with this section, is calculated in accordance with the formula The quotient where the numerator is the summation of A minus the result of the summation of B, C and F minus G for each reference year “i”, and the denominator is the summation of D for each reference year “i”, and then the quotient is multiplied by E. where A is the quantity of GHGs that are emitted from the covered facility for reference year “i”, determined in accordance with section 35, expressed in CO 2 e tonnes; B is the allocation for net thermal energy for reference year “i” and is (a) determined by the formula 0.062 CO 2 e tonnes/gigajoules × (M − N) × O where M is the quantity of thermal energy produced by the covered facility that was sold to another covered facility in reference year “i”, as indicated by the quantity of thermal energy on sales receipts or determined by another objective method, expressed in gigajoules, N is the quantity of thermal energy that was bought from other covered facilities and not subsequently sold in reference year “i”, as indicated by the quantity of thermal energy on sales receipts or by another objective method, expressed in gigajoules, and O is the ratio of heat from the combustion of fossil fuels to produce thermal energy and is, (i) if M is greater than N, the ratio of heat determined under section 34 for reference year “i” for the covered facility, or (ii) if M is less than N, the ratio of heat determined under section 34 for reference year “i” for the covered facility from which the thermal energy was purchased, and (b) 0 for all reference years if the absolute value of the quotient obtained by dividing the sum of the results determined under paragraph (a) for each reference year “i” by the number of reference years is less than the quotient determined by the formula The product of 0.015 by the quotient where the numerator is the sum of A for each reference year “i” and the denominator is n. C is the total quantity of GHGs from all specified industrial activities engaged in at the facility for reference year “i” other than the industrial activity for which the output-based standard is being calculated, determined in accordance with sections 17 and 18; D is the production from a covered facility from the specified industrial activity for which the output-based standard is being calculated for reference year “i” quantified in accordance with section 31; E is the GHG emissions reduction factor applicable to the specified industrial activity for which the output-based standard is being calculated and is (a) 95% for a specified industrial activity set out in paragraph 7(c), 8(b) or (c) or 20(d), column 1, of Schedule 1, (b) 90% for a specified industrial activity set out in item 22 or paragraph 23(a) or 29(d), column 1, of Schedule 1, and (c) 80% for all other specified industrial activities; F is the total quantity of GHGs from an activity engaged in at the facility, for reference year “i”, that is not a specified industrial activity, determined in accordance with sections 17 and 18, if (a) with respect to a covered facility whose primary activity is an industrial activity, (i) that quantity accounts for 20% or more of the total quantity of GHGs from a covered facility for that reference year, determined in accordance with sections 17 and 18, or (ii) the revenue, in dollars, attributable to the sale of the product produced by the facility from that industrial activity accounts for 20% or more of the revenue, in dollars, attributable to the sale of all products produced by the facility from all of the facility’s industrial activities for that reference year, or (b) with respect to a covered facility whose primary activity is not an industrial activity, (i) the activ