20Emissions-producing equipment may be specified as partly unaffected

20  Emissions-producing equipment may be specified as partly unaffected

 (1) A project proponent may, in the section 22 application or the section 128 application in relation to the project or in the first offsets report that relates to a reporting period in which an implementation has been completed, specify emissions-producing equipment within the boundary for an implementation as partly unaffected.

 (2) Emissions-producing equipment within the boundary for an implementation may be specified as partly unaffected only if:

 (a) the equipment provides, as an output, steam, heated fluid, cooled fluid, or compressed air; and

 (b) part of the output is used by other equipment within the boundary for the implementation and part is not (the internal output and the external output of the equipment respectively); and

 (c) the equipment does not supply energy to other equipment in the boundary for the implementation, other than in the form of its output; and

 (d) the energy content of the internal and external outputs can be monitored in accordance with section 53; and

 (e) the efficiency of the equipment is not affected by the implementation activities that constitute the implementation; and

 (f) the equipment does not consume energy from other equipment within the boundary for the implementation other than lower-grade energy returned to the emissions-producing equipment that originally created it.

Example: The implementation site generates steam from a large central plant that is used for a number of processes. Some of these processes are already efficient, but others are not. The implementation will upgrade machinery used in the less efficient processes. To make use of existing metering, the project proponent may choose to include the steam generation plant within the boundary for the implementation. However, much of the steam output from the generation plant is used in ways that do not interact with the equipment subject to the upgrade.

If the project proponent is able to specify the steam generation plant as partly unaffected emissions-producing equipment under this section, the proportion of the fuel input that is attributable to the steam used by emissions-producing equipment that does not interact with the upgrade can be deducted. This means that the abatement calculations focus on those processes that are affected.

 (3) If equipment is specified as partly unaffected, the fuel or electricity consumed by the equipment and attributable to the external output is taken not to be fuel or electricity consumed by equipment within the boundary for the implementation for the purposes of the abatement calculations under Part 4.

Note:  If the boundary for an implementation includes emissions-producing equipment that provides steam, heat, cooling or compressed air partly to other equipment in the boundary and partly to external equipment, the project proponent will be able to deduct the fuel of electricity attributable to the output provided to the external equipment from the abatement calculations.