The methodology is in one sense a mirror image of the concept used by the California
Air Resources Board when it grants credits for “Producing and Transporting Crudes using Innovative Methods” [see section 95489(c) of the LCFS]. In the LCFS case, ARB
grants credits when the project developer can demonstrate a reduction of CI for a
crude oil production pathway. In contrast, this methodology awards credits when a
project proponent can demonstrate that production of higher CI-crude will be avoided
by not developing the oil and ensuring that development rights are permanently cancelled.
Credits are issued only for the difference between the weighted average CI at the
destination refinery and the higher CI of production of tar sands petroleum resources.
