SOR-2018-261 Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity

The following definitions apply in these Regulations.

For the purposes of interpreting documents that are incorporated by reference into these Regulations, “should” must be read to mean “must” and any recommendation or suggestion must be read as an obligation.

Any standard of the ASTM, Gas Processors Association or the API that is incorporated by reference into these Regulations is incorporated as amended from time to time.

These Regulations apply to any boiler unit that has a capacity of 25 MW or more, that begins generating electricity on or after January 1, 2019, beginning on January 1 of the calendar year during which it meets the following conditions:

These Regulations apply to any combustion engine unit that has a capacity of 25 MW or more, that begins generating electricity on or after January 1, 2021, beginning on January 1 of the calendar year during which it meets the following conditions:

These Regulations also apply to any unit referred to in subsection (1) or (2) that generated electricity at a facility before January 1, 2019 in the case of a boiler unit and before January 1, 2021 in the case of a combustion engine unit and

These Regulations also apply to any boiler unit referred to in subsection (1) that was registered under subsection 4(1) of the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, and that generated electricity before January 1, 2019, beginning on January 1 of the calendar year following that in which the unit ceases to combust coal.

If a combustion engine unit and a boiler unit share the same steam turbine, the provisions of these Regulations apply as follows:

These Regulations do not apply to units with respect to a calendar year in which they generate electricity and, if applicable, produce useful thermal energy from the combustion of coal as defined in subsection 2(1) of the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations.

A responsible person for a unit must not emit from the unit an amount of CO 2 from the combustion of fossil fuels in the unit, that is, during a calendar year, on average, greater than any of the following intensity limits, as applicable:

It is prohibited for a responsible person for a boiler unit referred to in subsection 3(4) to emit from the boiler unit an amount of CO 2, from the combustion of fossil fuels in the unit, that is, during a calendar year, on average, greater than 420 tonnes of CO 2 emissions/GWh of energy produced, as applicable, beginning in

For the purposes of subsections (1) and (2),

For the purposes of subsection (3), if, in the calendar year, one of the combustion engines of the unit is repaired or maintained and one or more replacement combustion engines are temporarily installed, the quantity of energy and CO 2 emissions produced during the replacement period, to a maximum of 90 days per calendar year, are excluded from the calculation referred to in that paragraph.

Despite subsection (1), a boiler unit that, in a calendar year, does not meet one of the conditions set out in subsection 3(1), is not subject to the emission intensity limit for that calendar year.

Despite subsection (1), a combustion engine unit that, in a calendar year, does not meet one of the conditions set out in subsection 3(2), is not subject to the emission intensity limit for that calendar year.

An initial performance test must be conducted in the presence of the performance test verifier and in accordance with subsection (3) to determine the CO 2 emission intensity for a boiler unit referred to in subsection 3(4) within 12 months following

Performance tests are to be subsequently conducted annually to determine the CO 2 emission intensity for the boiler unit in question, in accordance with subsection (3), for as long as the responsible person for that boiler unit does not have to meet the emission limit referred to in subsection 4(2).

The initial and annual performance test must consist of a continuous test that lasts at least two hours and does not exceed 100% of the unit’s capacity.

For the purposes of subsections (1) and (2),

For the performance test, the reference to “calendar year” in sections 11, 12, 15, 17 and 18 and in the Reference Method is replaced with a reference to “performance test period”.

A responsible person for a unit may, under an emergency circumstance described in subsection (2), apply to the Minister for an exemption from the application of subsection 4(1) or (2) in respect of the unit if, as a result of the emergency, the operator of the electricity grid in the province in which the unit is located or an official of that province responsible for ensuring and supervising the electricity supply orders the responsible person to produce electricity to avoid a threat to the supply or to restore that supply.

An emergency circumstance is a circumstance

The application for the exemption must be provided to the Minister within 15 days after the day on which the emergency circumstance arises. The application must include the information referred to in section 1 and paragraphs 2(a), (b) and (d) of Schedule 1 or the unit’s registration number, if any, the date on which the emergency circumstance arose and information, along with supporting documents, to demonstrate that the conditions set out in subsection (1) are met.

If the Minister is satisfied that the conditions set out in subsection (1) are met, the Minister must, within 30 days after the day on which the application is received,

The exemption becomes effective on the day on which the emergency circumstance arises and ceases to have effect on the earliest of

If the conditions set out in subsection 7(1) will continue to exist after the day on which the exemption granted under paragraph 7(4)(a) is to cease to have effect, the responsible person may, before that day, apply to the Minister for an extension of the exemption.

The application must include the unit’s registration number and information, along with supporting documents, to demonstrate that

If the Minister is satisfied that the elements referred to in paragraphs (2)(a) and (b) have been demonstrated, the Minister must grant the extension within 15 days after the day on which the application is received.

The extension ceases to have effect on the earliest of

A responsible person for a unit must install, maintain and calibrate a measuring device — other than a continuous emission monitoring system and a measuring device that is subject to the Electricity and Gas Inspection Act — that is used for the purposes of these Regulations in accordance with the manufacturer’s instructions or any applicable generally recognized national or international industry standard.

The responsible person must calibrate each of the measuring devices at the greater of the following frequencies:

The responsible person must use measuring devices that enable measurements to be made with a degree of accuracy of ± 5%.

The quantity of energy produced by a given unit is determined by the formula G + (0.75 × H pnet) where G is the gross quantity of electricity generated by the unit in the calendar year expressed in GWh, as measured at the electrical terminals of the generators of the unit using meters that comply with the requirements of the Electricity and Gas Inspection Act and the Electricity and Gas Inspection Regulations, or in the case of a hybrid configuration – when the unit is either a combustion engine unit that shares a steam turbine with a boiler unit or a boiler unit that shares a steam turbine with a combustion engine unit – the quantity of electricity generated by the given unit in the calendar year expressed in GWh, determined by the formula in subsection (2); and H pnet is the net quantity of useful thermal energy produced by the unit in a calendar year, expressed in GWh, determined by the formula in subsection (3).

The quantity of electricity generated by a given unit is determined by the formula G ce + G s – G ext where G ce is the gross quantity of electricity that is generated by the generators of the combustion engines in a combustion engine unit that shares a steam turbine with a boiler unit, in the calendar year, expressed in GWh, as measured at the electrical terminals of the generators of the combustion engines using meters that comply with the requirements of the Electricity and Gas Inspection Act and the Electricity and Gas Inspection Regulations, if the given unit for which the electricity is being quantified is a combustion engine unit, or equal to zero, if the given unit for which the electricity is being quantified is a boiler unit; G s is the gross quantity of electricity that is generated by the generators of the shared steam turbine in the calendar year, expressed in GWh, as measured at the electrical terminals of the generators of the shared steam turbine using meters that comply with the requirements of the Electricity and Gas Inspection Act and the Electricity and Gas Inspection Regulations; and G ext is the quantity of electricity that is generated by the unit other than the given unit for which the electricity is being quantified, in the calendar year, expressed in GWh and that is determined by the formula Gext is equal to Gs, multiplied by the summation for all time periods “t” of a quotient where the numerator is the summation of the products of hext_j and Mext_j for each heat stream “j”, and the denominator is the summation of the products of hext_j and Mext_j for each heat stream “j” plus the summation of the products of hint_k and Mint_k for each heat stream “k”. where G s is the gross quantity of electricity that is generated by the generators of the shared steam turbine in the calendar year, expressed in GWh, as measured at the electrical terminals of the generators of the shared steam turbine using meters that comply with the requirements of the Electricity and Gas Inspection Act and the Electricity and Gas Inspection Regulations, t is the t th hour, where “t” goes from the number 1 to x and where x is the total number of hours during which the generators of the shared steam turbine generated electricity in the calendar year, j is the j th external heat stream, originating from the other unit where “j” goes from the number 1 to m and where m is the total number of external heat streams that contributed to the electricity generated by the generators of the shared steam turbine of the unit, h ext_j is the average specific enthalpy of the j th external heat stream, originating from the other unit that contributed to the electricity generated by the generators of the shared steam turbine, expressed in GJ/tonne, during period “t” and must be based on the measurement of the temperature and pressure of that heat stream and determined using a continuous measuring device, M ext_j is the mass flow of the j th external heat stream originating from the other unit that contributed to the electricity generated by the generators of the shared steam turbine, expressed in tonnes, during period “t”, determined using a continuous measuring device, k is the k th internal heat stream originating from the given unit, where “k” goes from the number 1 to l and where l is the total number of heat streams that originated from the combustion of fuel in the unit and that contributed to the electricity generated by the generators of the shared steam turbine, h int_k is the average specific enthalpy of the k th internal heat stream originating from the given unit and having contributed to the electricity generated by the generators of the shared steam turbine, expressed in GJ/tonne, during period “t” and must be based on the measurement of the temperature and pressure of that heat stream and determined using a continuous measuring device, and M int_k is the mass flow of the k th internal heat stream originating from the given unit that contributed to the electricity generated by the generators of the shared steam turbine, expressed in tonnes, during period “t”, determined using a continuous measuring device.

In the case of a unit that simultaneously generates electricity and produces useful thermal energy from the fuel combusted by a combustion engine or boiler, as the case may be, the net quantity of useful thermal energy produced by the unit in a calendar year, expressed in GWh, is determined by the formula The summation of the products of hout_i and Mout_i for each heat stream “i” minus the summation of the products of hin_j and Min_j for each heat stream “j”, summed for all time periods and then multiplied by the quotient of 1 over 3600 GJ per GWh. where t is the t th hour, where “t” goes from the number 1 to x and where x is the total number of hours during which the unit produced useful thermal energy in the calendar year; i is the i th heat stream exiting the unit, where “i” goes from the number 1 to n and where n is the total number of heat streams exiting the unit; h out_i is the average specific enthalpy of the i th heat stream exiting the unit, expressed in GJ/tonne, during period “t” and must be based on the measurement of the temperature and pressure of that heat stream and determined using a continuous measuring device; M out_i is the mass flow of the i th heat stream exiting the unit, expressed in tonnes, during period “t”, determined using a continuous measuring device; j is the j th heat stream — other than condensate return — entering the unit, where “j” goes from the number 1 to m and where m is the total number of heat streams entering the unit; h in_j is the average specific enthalpy of the j th heat stream — other than condensate return — entering the unit, expressed in GJ/tonne, during period “t” and must be based on the measurement of the temperature and pressure of that heat stream and determined using a continuous measuring device; and M in_j is the mass flow of the j th heat stream — other than condensate return — entering the unit, expressed in tonnes, during period “t”, determined using a continuous measuring device.

Subject to section 15, the quantity of CO 2 emissions resulting from the combustion of fossil fuels in a unit combusting biomass in a calendar year that is measured using a CEMS must be determined in accordance with the following formula: E u × (V ff / V T) – E s where E u is the quantity of CO 2 emissions, expressed in tonnes, from the unit, “u”, during the calendar year from the combustion of fuel, as measured by the CEMS, and calculated in accordance with sections 7.1 to 7.7 of the Reference Method; V ff is the volume of CO 2 emissions released from combustion of fossil fuel in the unit during the calendar year, expressed in standard m 3 and determined in accordance with the following formula: The formula is the sum of the products resulting from the multiplication of Qi, Fc,i and HHVi for each fossil fuel type “i”. where Q i is the quantity of fossil fuel type “i” combusted in the unit during the calendar year, determined for a gaseous fuel, in the same manner used in the determination of V f in the formula set out in paragraph 18(1)(a) and expressed in standard m 3, for a liquid fuel, in the same manner used in the determination of V f in the formula set out in paragraph 18(1)(b) and expressed in kL, and for a solid fuel, in the same manner used in the determination of M f in the formula set out in paragraph 18(1)(c) and expressed in tonnes, i is the i th fossil fuel type combusted in the unit during the calendar year, where “i” goes from the number 1 to n and where n is the number of fossil fuels so combusted, F c,i is the fuel-specific carbon-based F-factor for each fossil fuel type “i” — being the factor set out in Appendix A of the Reference Method, or for fuels not listed, the one determined in accordance with that Appendix — corrected to be expressed in standard m 3 of CO 2/GJ, and HHV i is the higher heating value for each fossil fuel type “i” that is measured in accordance with subsection (2), or in the absence of a measured higher heating value, the default higher heating value, set out in column 2 of Schedule 2, for the fuel type, as set out in column 1; V T is the volume of CO 2 emissions released from combustion of fuel — fossil fuel and biomass — in the unit during the calendar year determined in accordance with the following formula: The summation of the products of 0.01, CO2w,t and Qw,t for each hour “t”. where t is the t th hour, where “t” goes from the number 1 to n and where n is the total number of hours during which the unit generated electricity in the calendar year, CO 2w,t is the average concentration of CO 2 in relation to all gases in the stack emitted from the combustion of fuel in the unit during each hour “t”, during which the unit generated electricity in the calendar year — or, if applicable, a calculation made in accordance with section 7.4 of the Reference Method of that average concentration of CO 2 based on a measurement of the concentration of oxygen (O 2) in those gases in the stack — expressed as a percentage on a wet basis, and Q w,t is the average volumetric flow during that hour, measured on a wet basis by the stack gas volumetric flow monitor, expressed in standard m 3; and E s is the quantity of CO 2 emissions, expressed in tonnes, that is released from the use of sorbent to control the emission of sulphur dioxide from the unit during the calendar year, determined in accordance with the following formula: S × R × (44/MM s) where S is the quantity of sorbent material, such as calcium carbonate (CaCO 3), expressed in tonnes, R is the stoichiometric ratio, on a mole fraction basis, of CO 2 released on usage of one mole of sorbent material, which is equal to 1 if the sorbent material is CaCO 3, and MM s is the molecular mass of the sorbent material, which is equal to 100 if the sorbent material is CaCO 3.

The higher heating value of a fuel is to be measured

For the purposes of sections 13 and 14, the total quantity of CO 2 emissions from a unit equipped with multiple CEMS is determined by adding together the quantity of emissions measured for each CEMS.

If a unit is located at a facility where there is one or more other units and a CEMS measures emissions from that unit and other units at a common stack rather than at the exhaust duct of that unit and of each of those other units that brings those emissions to the common stack, then the quantity of emissions attributable to that unit is determined based on the ratio of the heat input of that unit to the total of the heat input of that unit and of all of those other units sharing the common stack in accordance with the following formula: The formula for determining the quantity of emissions attributable to a unit that shares a common emissions stack is the product of the multiplication of E and the quotient of the following two sums: the sum of the product resulting from the multiplication of Quj and HHVuj for each fuel type “j” combusted in that unit “u” during the calendar year and the sum, for each unit “i” that shares a common stack, of the sum of the product resulting from the multiplication of Qij and HHVij for each fuel type “j” combusted during the calendar year. where Q u,j is the quantity of fuel type “j” combusted in that unit “u” during the calendar year, determined for a gaseous fuel, in the same manner as the one used in the determination of V f in the formula set out in paragraph 18(1)(a) and expressed in standard m 3, for a liquid fuel, in the same manner as the one used in the determination of V f in the formula set out in paragraph 18(1)(b) and expressed in kL, and for a solid fuel, in the same manner as the one used in the determination of M f in the formula set out in paragraph 18(1)(c) and expressed in tonnes; HHV u,j is the higher heating value for each fossil fuel type “j” that is combusted in that unit “u” that is measured in accordance with subsection 14(2), or in the absence of a measured higher heating value, the default higher heating value, set out in column 2 of Schedule 2, for the fuel type, as set out in column 1; j is the j th fuel type combusted during the calendar year in a unit where “j” goes from the number 1 to y and where y is the number of those fuel types; Q i,j the quantity of fuel type “j” combusted in each unit “i” during the calendar year, determined for a gaseous fuel, a liquid fuel and a solid fuel, respectively, in the manner set out in the description of Q uj; HHV i,j is the higher heating value for each fossil fuel type “j” that is combusted in that unit “i” that is measured in accordance with subsection 14(2), or in the absence of a measured higher heating value, the default higher heating value, set out in column 2 of Schedule 2, for the fuel type, as set out in column 1; i is the i th unit, where “i” goes from the number 1 to x, and where x is the number of units that share a common stack; and E is the quantity of CO 2 emissions, expressed in tonnes, from the combustion of all fuels in all the units that share a common stack during the calendar year, measured by a CEMS at the common stack, and calculated in accordance with sections 7.1 to 7.7 of the Reference Method.

A responsible person who uses a CEMS must ensure compliance with the Reference Method.

For each calendar year during which the responsible person used a CEMS, they must obtain a report, signed by the auditor, that contains the information required by Schedule 3 and send it to the Minister with the report referred to in section 21.

The quantity of CO 2 emissions, that is attributable to the combustion of a fossil fuel in a unit in a calendar year is determined by one of the following formulas, whichever applies:

The weighted average “CC A” referred to in paragraphs (1)(a) to (c) is determined by the formula The formula for determining the weighted average CCa is the quotient of the following two sums: the sum of the product resulting from the multiplication of Qi and CCi for each sampling period “i” and the sum of Qi for each sampling period “i”. where CC i is the carbon content of each sample or composite sample, as the case may be, of the fuel for the i th sampling period, expressed for gaseous fuels, liquid fuels and solid fuels, respectively, in the same unit of measure as that set out in CC A, as provided by the supplier of the fuel to the responsible person or, if not so provided, as determined by the responsible person in the following manner: for a gaseous fuel, in accordance with whichever of the following standards for the measurement of the carbon content of the fuel that applies: ASTM D1945-14, entitled Standard Test Method for Analysis of Natural Gas by Gas Chromatography, ASTM UOP539-12, entitled Refinery Gas Analysis by Gas Chromatography, ASTM D7833-14, entitled Standard Test Method for Determination of Hydrocarbons and Non-Hydrocarbon Gases in Gaseous Mixtures by Gas Chromatography, and API Technical Report 2572, 1st edition, published in May 2013 and entitled Carbon Content, Sampling, and Calculation, or by means of a direct measuring device that measures the carbon content of the fuel, for a liquid fuel, in accordance with whichever of the following standards or methods for the measurement of the carbon content of the fuel that applies: API Technical Report 2572, 1st edition, published in May 2013 and entitled Carbon Content, Sampling, and Calculation, ASTM D5291-16, entitled Standard Test Methods for Instrumental Determination of Carbon, Hydrogen, and Nitrogen in Petroleum Products and Lubricants, the ASTM standard that applies to the type of fuel, or if no ASTM standard applies, an applicable internationally recognized method, and for a solid fuel, on the same wet or dry basis as that used in the determination of CC A, in accordance with, for a solid fuel derived from waste, ASTM E777-08, entitled Standard Test Method for Carbon and Hydrogen in the Analysis Sample of Refuse-Derived Fuel, and for any other solid fuel, the following standard or method for the measurement of the carbon content of the fuel: the ASTM standard that applies to the type of fuel, and if no ASTM standard applies, an applicable internationally recognized method; i is the i th sampling period that is referred to in section 19, where “i” goes from the number 1 to n and where n is the number of those sampling periods; and Q i is the volume or mass, as the case may be, of the fuel combusted during the i th sampling period, expressed in standard m 3, for a gaseous fuel, in kL, for a liquid fuel, and in tonnes, for a solid fuel, on the same wet or dry basis as that used in the determination of CC A.

Subject to subsection (2), the determination of the value of the elements related to carbon content referred to in section 18 must be based on fuel samples taken in accordance with this section.

If the supplier of the fuel has provided the carbon content of the fuel, the responsible person can obtain from that supplier the carbon content of the fuel for the specified sampling period and at the specified minimum sampling frequency rather than taking samples in accordance with subsection (3).

Each fuel sample must be taken at a time and location in the fuel handling system of the facility that provides the following representative samples of the fuel combusted at the applicable minimum frequency:

For greater certainty, the responsible person who, for the purposes of these Regulations, takes more samples than the minimum required under subsection (3) must make the determination referred to in subsection (1) based on each sample taken — and in the case of composite samples, each sub-sample taken — including those additional samples.

In the case of a boiler unit referred to in subsection 3(4), one fuel sample is required for the initial performance test and each subsequent performance test and it must be taken in accordance with one of the applicable standards set out in subparagraphs (3)(a)(i) to (iv).

Except in the case of an initial performance test or any subsequent performance test referred to in section 5, if, for any reason beyond the responsible person’s control, the emission intensity referred to in subsection 4(1) or 4(2) cannot be determined in accordance with a formula set out in any of sections 11, 17 and 18 because data required to determine the value of an element of that formula is missing for a given period in a calendar year, replacement data for that given period must be used to determine that value.

If a CEMS is used to determine the value of an element of a formula set out in section 17 but data is missing for a given period, the replacement data must be obtained in accordance with Section 3.5.2 of the Reference Method.

If a fuel-based method is used to determine the value of any element — related to the carbon content or molecular mass of a fuel — of a formula set out in section 17 or 18 but data is missing for a given period, the replacement data is to be the average of the available data for that element, using the fuel-based method in question, during the equivalent period prior to and, if the data is available, subsequent to that given period. However, if no data is available for that element for the equivalent period prior to that given period, the replacement data to be used is the value determined for that element, using the fuel-based method in question, during the equivalent period subsequent to the given period.

Replacement data may be used in relation to a maximum of 28 days in a calendar year.

Subject to subsection (2), a responsible person for a unit must send one of the following reports, to the Minister on or before the June 1 that follows the calendar year that is the subject of the report:

A responsible person for a boiler unit referred to in subsection 3(4) must send the reports referred to in subsection (1), beginning in the year in which it must meet the emission limit referred to in subsection 4(2).

If a unit permanently ceases to generate electricity in a calendar year, a responsible person for the unit must so notify the Minister in writing not later than 60 days after the day on which the unit ceases generating electricity. A report is not necessary in respect of the calendar years following the calendar year in which the unit ceases generating electricity.

On receipt of a first report in respect of a unit referred to in paragraph (1)(a), the Minister must assign a registration number to the unit and inform the responsible person of that number.

If there is a change to the information referred to in section 1 of Schedule 1 that was provided in the most recent report, the responsible person must notify the Minister of the change in writing not later than 30 days after the day on which the change is made.

A responsible person for a boiler unit referred to in subsection 3(4) must send, to the Minister, a report containing the information referred to in Schedule 4 in relation to the performance test identified in section 5 no later than 60 days after the performance test was conducted.

In the case of a boiler unit referred to in subsection 3(4), the responsible person must obtain a report, signed by the performance test verifier, on the initial performance test, that contains the information referred to in Schedule 5 and send it to the Minister with their report referred to in subsection (1).

A report or notice that is required, or an application that is made, under these Regulations must be sent electronically in the form specified by the Minister and must bear the electronic signature of an authorized official of the responsible person.

If the Minister has not specified an electronic form or if the person is unable to send the report, notice or application electronically in accordance with subsection (1) because of circumstances beyond the person’s control, the report, notice or application must be sent on paper, in the form specified by the Minister, if applicable, and be signed by an authorized official of the responsible person.

A responsible person for a unit must make a record containing the following documents and information:

The record referred to in subsection (1) must be made as soon as feasible but not later than 30 days after the day on which the information and documents to be included in it become available.

Subject to subsection (2), these Regulations come into force on January 1, 2019.

These Regulations become applicable to combustion engine units on January 1, 2021.