Table A-1

2019 – 2022 Federal Carbon Charge Rates for Marketable Natural Gas9

Year	$/tCO2e	¢/m3
2019	$20	3.91
2020	$30	5.87
2021	$40	7.83
2022	$50	9.79

• ii) Entities that are covered under Part 2 of the GGPPA, "Industrial Greenhouse Gas Emissions", are exempt from coverage under Part 1 of the GGPPA, "Fuel Charge". Part 2 entities are instead covered under an Output-Based Pricing System ("OBPS"), with mandatory and voluntary participation thresholds, established for prescribed industrial facilities that emit specified volumes of greenhouse gas ("GHG") emissions, measured in tCO2e, annually.10 This component of the GGPPA became effective January 1, 2019.

The OBPS creates a pricing incentive to reduce GHG emissions from Energy Intensive and Trade Exposed (“EITE”) industrial facilities while limiting the impacts of carbon pricing on their respective competitiveness. Entities included in the OBPS will be required to apply to Environment and Climate Change Canada (“ECCC”), and to the Canada Revenue Agency (“CRA”) for exemption from the Federal Carbon Charge. The exemption certificate issued by the CRA must then be submitted to Enbridge Gas to ensure that the entity is not charged the Federal Carbon Charge on its natural gas bill. Participants in the OBPS will be required to report and manage their own compliance obligations and have the

• 9 The GGPPA, Schedule 2 and Schedule 4.

• 10 The mandatory emissions threshold for entities identified as being in an Energy Intensive and Trade

Exposed sector has been established as 50 ktCO2e or more per year by Environment and Climate Change Canada. Voluntary participants may opt-in to the OBPS if the entity emits between 10 - 50 ktCO2e per year. In both cases, facilities must carry out an activity for which an Output-Based Standard is prescribed to be eligible; https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how-it-will-work/output-based-pricing-system.html