Proposal for the Output-Based Pricing System Regulations: chapter 14

Section 175 of the Act provides that if a covered facility emits greenhouse gases in a quantity that is below the emissions limit that applies to it during a compliance period, the Minister must, in accordance with the regulations, issue to a person that is responsible for the covered facility a number of surplus credits that is equal to the difference between that limit, expressed in tonnes of CO₂e, and the number of tonnes of CO₂e emitted. The regulations will provide rules regarding the issuance of surplus credits.

Issuance of surplus credits

24. (1) For a compliance period in which a facility’s net GHG emissions are below its emissions limit, as calculated under subsection 19(1), the quantity of surplus credit issued is equal to the difference between the two values.

Conditions of issuance

(2) The Minister will issue surplus credits to a person that is responsible for the covered facility if:

1. a facility report and verification report were submitted in accordance with these regulations, and
2. the Minister is satisfied that there are no material errors or omissions in the facility report.

Conditions of use

(3) A surplus credit issued by the Minister may only be used within the OBPS to compensate for a facility’s excess emissions or for voluntary cancellation under subsection 180(2) of the Act. The surplus credit must not be used for any other purpose.