Proposal for the Output-Based Pricing System Regulations: chapter 11

The regulations will set out specific time-limited rules that would apply to new facilities that first started producing a product in or after 2017. The rules will cover up to two full compliance periods following the compliance period in which a facility first started producing a product. The regulations will also provide that the Minister would not issue surplus credits in respect of those years.

For example, a facility that first produced a product in 2020 and that was designated as a covered facility in 2020, the regulations will provide that the facility would not have to compensate for excess emissions for the compliance periods 2021 and 2022 and the partial year of 2020. The regulations will also provide that the Minister would not issue surplus credits in respect of those years and that other obligations, including the obligation to provide a report and have it verified by a third party would remain.

Limited non-application for new facilities

18. If a facility’s date of first production was in 2017 or later, sections 16 to 18 and 20 to 25 do not apply to the facility from its date of first production to the end of the calendar year during which the facility has been producing for 24 months.