Aco constructed, owned, and operated a carbon capture facility to capture carbon dioxide emissions from its industrial facilities. The captured carbon was then transported through the carbon transportation pipeline system of Bco, which delivered the captured carbon to a carbon sequestration hub of Cco. However, significant unanticipated fugitive emissions of the captured carbon occurred on the pipeline, which constituted an “ineligible use” of the captured carbon as defined in s. 127.44(1).
In this context, how was the "actual eligible use percentage" computed under s. 211.92(1) in respect of the CCUS project? CRA stated:
[I]t is our view that it is the end use of captured carbon that should be used in quantifying the amount of captured carbon in both eligible and ineligible use for the purposes of the definition of “actual eligible use percentage”.
As a result, in the situation described, Aco would be required to use measurements of the end use of its captured carbon, which occur at measurement points outside of its particular project boundaries. However, as the unanticipated fugitive emissions occur within Bco’s pipeline transportation network, Aco may be able to avail itself of the relief provided in subsections 211.92(6) and (7) … because such emissions would likely be due to extraordinary circumstances outside of the control of Aco.