SOR-2019-266 Output-Based Pricing System Regulations

Subject to subsection (6), for the purposes of the Act and these Regulations, facility means

If more than one person is responsible for the elements referred to in subparagraph (1)(a)(i) or (ii) as an owner or otherwise, including having the charge, management or control of, or as the true decision maker with respect to their operations, those elements are only included in the definition of facility if there is at least one person who is responsible for, owns, has the charge management or control of, or is the true decision maker in common.

If more than one person is responsible for the pipelines and associated installations or equipment referred to in paragraph (1)(b) as an owner or otherwise, including having the charge, management or control of, or as the true decision maker with respect to the pipelines and associated installations or equipment, those pipelines and associated installations or equipment are only included in the definition of facility if there is at least one person who is responsible for, owns, has the charge management or control of, or is the true decision maker in common.

If two or more facilities referred to in paragraph (b) of the definition facility in subsection (1) within the same province have the same person responsible, or, if they have more than one person responsible, they have at least one person responsible in common, and are operated in an integrated way, they are deemed to be a single facility.

Subject to subsection (6), with respect to a facility

In the case of a facility that is not a covered facility, the specified industrial activities referred to in subsections (1) and (5) are those that would be specified industrial activities if the facility was a covered facility.

The following definitions apply in these Regulations.

Unless otherwise indicated, a reference to any document incorporated by reference into these Regulations is a reference to the document as amended from time to time.

Despite subsection (2), if ISO Standard 14065 is amended, the previous version of the document may be complied with for a period of four years beginning on the day on which the amended version is published.

Despite subsection (2), the version of Quantification Methods to be complied with for a compliance period is the version that was most recently published prior to the day on which that compliance period begins.

Subject to section 22, GHGs must be quantified for the following emission types:

Output-based standards are established under these Regulations for the industrial activities set out in column 1 of Schedule 1 and for additional industrial activities engaged in at the covered facility.

If a covered facility was designated on the condition that it would emit a quantity of GHGs of at least 10 kt of CO 2 e in any of the three calendar years following the date of first production, the Minister may cancel the designation under subsection 172(3) of the Act if the facility has not met that condition as of December 31 of the third calendar year following that date.

The Minister must provide notice of their intention to cancel the covered facility’s designation to the person responsible for the covered facility at least 30 days before cancelling the designation.

A facility ceases to be a covered facility under the following circumstances:

A covered facility ceases to be a covered facility on the following date:

Subject to subsections (2) and (3), the specified period, for the purposes of the definition compliance period in section 169 of the Act, begins on January 1 and ends on December 31 for each calendar year, starting in 2019.

If a facility becomes a covered facility under the Act after January 1 of a given calendar year, its specified period, for the purposes of the definition compliance period in section 169 of the Act, begins on January 1 of the calendar year following

For the 2025 calendar year, if a facility ceases to be a covered facility because the Minister cancels its designation in 2025 under subsection 172(3) of the Act, the specified period in respect of that facility, for the purposes of the definition compliance period in section 169 of the Act, begins on January 1, 2025 and ends on March 31, 2025.

If a facility ceases to be a covered facility, the person responsible for that facility is deemed to be responsible for a covered facility with respect to

The requirements set out in paragraphs (1)(a) to (g) apply during the period necessary under the Act and the requirements set out in paragraphs (1)(h) and (i) apply during a period of seven years after the end of the year in which the facility ceased to be a covered facility.

If a facility ceases to be a covered facility, the person responsible for that facility is deemed to be responsible for a covered facility for the purpose of obtaining surplus credits under section 175 of the Act and paragraph 178(1)(b) of the Act.

Subject to subsection (2) and section 16, the report that must be submitted by the person responsible for a covered facility for a compliance period under section 173 of the Act is prepared annually for each covered facility for which they are responsible and includes the information listed in Schedule 2 and the following information:

For the purposes of subparagraph (1)(a)(ii), if section 36.2 applies with respect to a covered facility, the annual report must include the gross quantity of electricity generated that is attributed the capacity added to the equipment and gross quantity of electricity generated that is attributed to the capacity of the equipment before the additional capacity was added, separately, quantified in accordance with section 31 and subsection 36.2(3).

For the purposes of subparagraphs 1(b)(iii) and (iv) and (c)(iii), if section 41.2 applies with respect to an electricity generation facility, the annual report must include,

Paragraphs (1)(e) and (f) do not apply with respect to a report that must be submitted by the person responsible for a covered facility for which sections 36 to 42 do not apply under section 43.

For the purposes of subparagraph (1)(a)(ii), an additional industrial activity that was recognized by the Minister during a calendar year is not taken into account for the annual report for the compliance period that corresponds to that calendar year.

If the person responsible for a covered facility sells thermal energy that is produced at the covered facility to other covered facilities or buys thermal energy from any other covered facility, they must include in their annual report

The person responsible for a covered facility where the specified industrial activity set out in item 10, column 1, of Schedule 1 is engaged in, must include in their annual report, the quantity, in tonnes, of each gypsum product that contains at least 70 weight percent of calcium sulphate dihydrate produced during the compliance period.

If a covered facility where a specified industrial activity set out in items 2, 3, 15 or 29, column 1, of Schedule 1 is engaged in produces hydrogen gas, the person responsible for the covered facility must include in their annual report the quantity of hydrogen gas produced during the compliance period, in tonnes, and the quantity of hydrogen gas sold during the compliance period, in tonnes.

The person responsible for a covered facility must submit their annual report to the Minister, on or before June 1 of the calendar year following the end of the compliance period for which the annual report is prepared, along with a verification report prepared in accordance with section 52.

The person responsible for a covered facility must correct the errors or omissions, identified by a verification body during the verification of the annual report, prior to submitting the annual report to the Minister, if possible.

The production of a petrochemical product set out in item 17, column 1, of Schedule 1 as a by-product, at a covered facility where an industrial activity, other than one set out in that item is engaged in, is not an industrial activity covered by item 17, column 1, of Schedule 1.

If natural gas liquids are produced at a covered facility where a specified industrial activity set out in item 3 or 17, column 1, of Schedule 1 is engaged in, the following rules apply:

If hydrogen gas is produced at a covered facility where a specified industrial activity set out in item 2, 3, 15 or 29, column 1, of Schedule 1 is engaged in, the following rules apply:

If metal tubes are produced at a covered facility where a specified industrial activity set out in item 19 or 20, column 1, of Schedule 1 is engaged in, the following rules apply:

If lime is produced at a covered facility where a specified industrial activity set out in item 20, column 1, of Schedule 1 is engaged in, the following rules apply:

If electricity is produced at a covered facility where a specified industrial activity set out in item 20, column 1, of Schedule 1 is engaged in, the following rules apply:

If evaporated salt is produced through solution mining at a covered facility where a specified industrial activity set out in item 24, column 1, of Schedule 1 is engaged in, the following rules apply:

If zinc and lead are pyrometallurgically smelted at a covered facility where a specified industrial activity set out in paragraph 23(b), column 1, of Schedule 1 is engaged in, the following rules apply:

If lead is pyrometallurgically smelted and refined at a covered facility where a specified industrial activity set out in paragraph 23(c), column 1, of Schedule 1 is engaged in, the following rules apply:

If gold, silver, platinum or palladium is produced at a covered facility where a specified industrial activity set out in paragraph 26(d), column 1, of Schedule 1 is engaged in, the following rules apply:

Subject to subsection (9.1), if a petrochemical product referred to in item 17, column 1, of Schedule 1 is produced at a covered facility where a specified industrial activity set out in item 3 or 4, column 1, of that Schedule is engaged in, the following rules apply:

If a covered facility has at least one refinery that is engaged in a specified industrial activity set out in item 3, column 1, of Schedule 1, and one petrochemical plant, that is engaged in a specified industrial activity referred to in item 17, column 1, of Schedule 1, subsection (9) only applies to the refinery.

If silver, platinum or palladium is produced at a covered facility where a specified industrial activity set out in paragraph 26(f), column 1, of Schedule 1 is engaged in, the following rules apply:

Subject to subsection (5) and section 18, the total quantity of GHGs from a covered facility other than an electricity generation facility, during a compliance period, expressed in CO 2 e tonnes, is determined by the formula The summation of the products of Ej and GWPj for each greenhouse gas type “j”, summed for all specified emissions types “i”where E j is the quantity of each GHG type “j” from the covered facility during a compliance period, for each specified emission type, determined in accordance with subsections (2) to (4); GWP j is the global warming potential of the GHG type “j” applicable to the compliance period and, if it is used to determine the quantities referred to in the descriptions of A, C and F in subsection 37(1), for the reference year “i”, the global warming potential applicable to the compliance period in respect of which the output-based standard is being calculated; i is the i th specified emission type, where “i” goes from 1 to n and where n is the number of the facility’s specified emission types; and j is the j th GHG type, where “j” goes from 1 to m and where m is the number of greenhouse gases.

The quantity of a GHG type “j” from a covered facility during a compliance period for a specified emission type “i” is the sum of the following quantities, determined in accordance with the applicable requirements set out in Quantification Methods:

If the quantity of a GHG is determined in accordance with subsection (2), the sampling, analysis and measurement requirements that apply are those set out in Quantification Methods.

For the purposes of subsection (2), if, for any reason beyond the control of the person responsible for a covered facility, the data required to quantify the GHGs from a covered facility are missing for a given period of a compliance period, replacement data for the given period must be calculated in accordance with Quantification Methods.

For the purposes of the determination made under subsection (1), the quantities of CH 4 and N 2 O generated from stationary devices that combust biomass for the purpose of producing useful heat are subtracted from the quantities of CH 4 and N 2 O calculated in accordance with subsections (2) to (4) for stationary fuel combustion emissions.

Subject to subsection (6), with respect to an electricity generation facility, the total quantity of GHGs from each unit within a facility, during a compliance period, expressed in CO 2 e tonnes, is determined by the formula The summation of the products of Ej and GWPj for each greenhouse gas type “j”, summed for all specified emissions types “i”where E j is the quantity of each GHG type “j” from the unit during a compliance period for each specified emission type determined in accordance with subsections (2) to (5); GWP j is the global warming potential of the GHG type “j” applicable to the compliance period; i is the i th specified emission type, where “i” goes from 1 to n and where n is the unit’s number of specified emission types; j is the j th GHG type, where “j” goes from 1 to m and where m is the number of greenhouse gases.

The quantity of a GHG type “j” generated by a unit during a compliance period for a specified emission type “i” is the sum of the following quantities, determined in accordance with the applicable requirements set out in Quantification Methods:

For the purposes of paragraph (2)(b) or (c), if the GHGs for a specified emission type referred to in subsection (2) can only be quantified for the facility as a whole, the quantity of those GHGs must be apportioned to the facility’s units on the basis of each unit’s total generation of electricity relative to the facility’s total generation of electricity.

If the quantity of a GHG is determined in accordance with subsection (2), the sampling, analysis and measurement requirements that apply are those set out in Quantification Methods.

For the purposes of subsection (2), if, for any reason beyond the control of the person responsible for a covered facility, the data required to quantify GHGs generated by a unit are missing for a given period of a compliance period, replacement data for the given period must be calculated in accordance with Quantification Methods.

For the purposes of the determination made under subsection (1), the quantity of CH 4 and N 2 O generated from stationary devices that combust biomass for the purpose of producing useful heat are subtracted from the quantity of CH 4 and N 2 O calculated in accordance with subsections (2) to (5) for stationary fuel combustion emissions.

CO 2 from biomass is not included in the quantity of CO 2 calculated in accordance with subsections 17(2) to (4) or 20(2) to (5).

CH 4 from venting or leakage emissions from an industrial activity set out in item 1, 2, 4 or 5, column 1, of Schedule 1 is not included in the quantity of CH 4 calculated in accordance with subsections 17(2) to (4).

Subject to subsection (2), the quantity of a GHG for any specified emission type does not need to be included in the determination made under subsections 17(2) to (4) or 20(2) to (5) if the quantity of the GHG, expressed in CO 2 e tonnes, does not exceed 0.5% of the total quantity of GHGs determined under subsection 17(1) or 20(1).

The sum of the quantities of GHGs not included under subsection (1) cannot exceed 0.5% of the total quantity of GHGs determined under subsection 17(1) or 20(1).

An application for a permit must be submitted to the Minister and must contain the information referred to in Schedule 4.

The application must be accompanied by a certification, dated and signed by the person responsible for the covered facility or by their authorized official, stating that the information contained in the application is accurate and complete.

The Minister must issue the permit to use a method of quantification other than the method set out in Quantification Methods if

The term of the permit must not exceed 24 months.

The Minister must refuse to issue a permit if the Minister has reasonable grounds to believe that the applicant has provided false or misleading information in support of their application.

The permit can only be renewed once.

The application for the renewal of a permit must include the information referred to in Schedule 4 and an explanation of the reasons why the plan that was submitted in the initial permit application was not implemented within the period identified in the initial application. The application for renewal must be submitted to the Minister at least 90 days before the expiration of the permit.

The Minister must renew the permit if the conditions set out in subsection 28(1) are met.

The Minister must revoke the permit if the Minister has reasonable grounds to believe that the permit holder has provided false or misleading information.

Before revoking a permit, the Minister must provide the permit holder with

The revocation of a permit is effective 30 days after the day on which the Minister notifies the permit holder.

Subject to subsection (4) and section 16, the production from a covered facility, other than an electricity generation facility, from each specified industrial activity during a compliance period is quantified

Any measuring device that is used to determine a quantity for the purposes of these Regulations must

If it is not possible to directly measure production using a measuring device, it may be quantified using engineering estimates or mass balance.

For the 2019 calendar year

Subject to subsection (2), the gross electricity generated during a compliance period by each unit within the electricity generation facility, from each of the industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that is engaged in at the unit, is determined as follows:

The person responsible for the electricity generation facility may choose not to quantify part or all of the quantity of electricity generated from one unit or a group of units.

The ratio of heat from the combustion of fossil fuels during a compliance period is

Despite paragraph (1)(b) or (c), if, for any reason beyond the control of the person responsible for a covered facility, the data required to quantify the ratio of heat from the combustion of fossil fuels are missing for a given period during the 2019 calendar year, 1 can be used as the ratio of heat from the combustion of fossil fuels.

The person responsible for a covered facility must determine the quantity of GHGs that are emitted from the covered facility during a compliance period in accordance with the formula A – B where A is the total quantity of GHGs from the covered facility, expressed in CO 2 e tonnes, during the compliance period, in the case of a facility referred to in paragraph 11(1)(a), determined in accordance with section 17, in the case of a facility referred to in paragraph 11(1)(b), corresponding to the sum referred to in subparagraph 11(1)(b)(ii), and in the case of a facility referred to in paragraph 11(1)(c), corresponding to the sum referred to in subparagraph 11(1)(c)(i); and B is the quantity of CO 2 captured at the covered facility that is stored during the compliance period in a storage project, determined using Quantification Methods, expressed in CO 2 e tonnes.

For the purposes of the description of B in subsection (1), the quantity of CO 2 may only be included in that description if it has been included in the description of A and has been permanently stored in a storage project that meets the following criteria:

The quantity of CO 2 from biomass is not included in the amount determined for B in subsection (1).

For greater certainty, the quantity of CO 2 from a covered facility that has been captured but has not been permanently stored in a storage project that meets the requirements of subsection (2) is deemed to have been emitted by the covered facility and is included in the quantity of GHGs that are included in the description of A in subsection (1).

Subject to subsection (2) and sections 16, 36.1, 36.2 and 42, the person responsible for a covered facility, other than an electricity generation facility, must determine the GHG emissions limit that applies to that covered facility for each compliance period, expressed in CO 2 e tonnes, in accordance with the formula The summation of the products of Ai and the result of Bi minus the product of Bi, C and D minus 2022 for each specified industrial activity “i”. where A i is the covered facility’s production from each specified industrial activity “i” during the compliance period, quantified in accordance with section 31; B i is the following output-based standard applicable to the specified industrial activity “i”, as the case may be: for a specified industrial activity set out in column 1 of Schedule 1 and for which an output-based standard is set out in column 3 of that Schedule, that standard, for a specified industrial activity set out in column 1 of Schedule 1 and for which column 3 of that Schedule sets out that an output-based standard must be calculated in accordance with section 37, the output-based standard calculated in accordance with that section, and for an additional industrial activity, the output-based standard calculated in accordance with section 37; C is the following tightening rate applicable to the specified industrial activity “i”, as the case may be: 0% for the specified industrial activity set out in item 38, column 1, of Schedule 1, 1% for the specified industrial activities set out in paragraph 3(c) and items 7, 8, 13, 17, 19, 20, 34, 40, 41 and 43, column 1, of Schedule 1, and 2% for all other specified industrial activities; D is the calendar year that corresponds to the compliance period; and i is the i th specified industrial activity where “i” goes from 1 to n and where n is the total number of specified industrial activities engaged in at the covered facility.

For the purposes of subsection (1), the person responsible for a covered facility must not include the specified industrial activity set out in paragraph 13(b), column 1, of Schedule 1 unless the covered facility also includes the specified industrial activity set out in paragraph 13(a), column 1. The covered facility is deemed to not be engaged in the specified industrial activity set out in item 32, column 1, of that Schedule.

For the purposes of subsection (1), the person responsible for a covered facility where the specified industrial activity set out in item 31, column 1, of Schedule 1 is engaged in may, for the 2019 calendar year, quantify their production in finished oilseed products and use an output-based standard of 0.0431 CO 2 e tonnes per unit of measurement of production, instead of the production metric set out in column 2 and the output-based standard set out in column 3.

For greater certainty, if the industrial activity set out in paragraph 29(b), column 1, of Schedule 1 and also any of the industrial activities set out in paragraph 29(c), (d) or (e), column 1, of Schedule 1 are engaged in at the covered facility, the output-based standard applicable to the industrial activity set out in that paragraph 29(b) applies and the output-based standard applicable to the industrial activity set out in that paragraph 29(c), (d) or (e) applies, as the case may be.

For the purposes of subsection (1), an additional industrial activity that was recognized by the Minister during a calendar year is not included in the determination of the GHG emissions limit for the compliance period that corresponds to that calendar year.

For the purposes of subsection (1), if an output-based standard must be calculated, it is calculated once, except in the situation referred to in subsection 39.

Despite subsection 36(1), if a covered facility — other than one referred to in subsection 16(6) — begins generating electricity on or after January 1, 2021 and meets the following criteria, the person responsible for the covered facility must apply, for the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, the applicable output-based standard, in accordance with subsection (2), for each compliance period, as of the compliance period during which the covered facility began generating electricity:

The output-based standard that applies to the industrial activity referred to in paragraph 38(c), column 1, of Schedule 1 is, as the case may be 370 CO 2 e tonnes per unit of measurement, for the 2021 compliance period, 329 CO 2 e tonnes per unit of measurement, for the 2022 compliance period, 288 CO 2 e tonnes per unit of measurement, for the 2023 compliance period, 247 CO 2 e tonnes per unit of measurement, for the 2024 compliance period, 206 CO 2 e tonnes per unit of measurement, for the 2025 compliance period, 164 CO 2 e tonnes per unit of measurement, for the 2026 compliance period, 123 CO 2 e tonnes per unit of measurement, for the 2027 compliance period, 82 CO 2 e tonnes per unit of measurement, for the 2028 compliance period, 41 CO 2 e tonnes per unit of measurement, for the 2029 compliance period, and 0 CO 2 e tonnes per unit of measurement, for the 2030 compliance period and subsequent compliance periods.

Subject to subsections 16(1) to (5) and (7) to (10), if, on or after January 1, 2021, a covered facility — other than a covered facility referred to in subsection 16(6) — increases its electricity generation capacity from gaseous fuels by 50 MW or more and that increased capacity is from equipment that has a thermal energy to electricity ratio of less than 0.9 and that was added after that date or has had its capacity increased and, the person responsible for the covered facility must determine the covered facility’s GHG emissions limit for each compliance period, as of the compliance period during which the increase occurred, in accordance with subsection (2).

The GHG emissions limit that applies to the covered facility for a compliance period, expressed in CO 2 e tonnes, is determined in accordance with the formula The summation of the products of Ai and the result of Bi minus the product of Bi, C and D minus 2022 for each specified industrial activity “i”, plus the summation of the products of E and F and the products of G and F and the products of H and I. where A i is the covered facility’s production during the compliance period, quantified in accordance with section 31, from each specified industrial activity “i”, except the industrial activity set out in paragraph 38(c), column 1, of Schedule 1, and from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, other than from equipment referred to in the descriptions of E, G and H; B i is the following output-based standard applicable to the specified industrial activity “i”, as the case may be: for a specified industrial activity set out in column 1 of Schedule 1 and for which an output-based standard is set out in column 3 of that Schedule, that standard, for a specified industrial activity set out in column 1 of Schedule 1 and for which column 3 of that Schedule sets out that an output-based standard must be calculated in accordance with section 37, the output-based standard calculated in accordance with that section, and for an additional industrial activity, the output based standard calculated in accordance with section 37; C is the following tightening rate applicable to the specified industrial activity “i”, as the case may be: 0% for the specified industrial activity set out in item 38, column 1, of Schedule 1, 1% for the specified industrial activities set out in paragraph 3(c) and items 7, 8, 13, 17, 19, 20, 34, 40, 41 and 43, column 1, of Schedule 1, and 2% for all other specified industrial activities; D is the calendar year that corresponds to the compliance period; E is the gross amount of electricity generated during the compliance period by the equipment that started generating electricity from gaseous fuels on or after January 1, 2021, and is designed to operate at a thermal energy to electricity ratio of less than 0.9, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 31; F is the output-based standard set out in subsection 36.1(2) that is applicable for the compliance period; G is, for equipment with increased electricity generation capacity and a thermal energy to electricity ratio of less than 0.9, other than equipment referred to in the description of E, the gross amount of electricity generated during the compliance period attributed to the capacity added to the equipment, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 31 and subsection (3); H is, for equipment with increased electricity generation capacity and a thermal energy to electricity ratio of less than 0.9, other than equipment referred to in the description of E, the gross amount of electricity generated during the compliance period attributed to the capacity of the equipment before the additional capacity was added, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 31 and subsection (3); I is the output-based standard set out in item 38, column 3, of Schedule 1 that is applicable to the specified industrial activity set out in paragraph 38(c), column 1 of that Schedule; and i is the i th specified industrial activity where “i” goes from 1 to n and where n is the total number specified industrial activities engaged in at the covered facility.

For the purposes of the descriptions of G and H in subsection (2), the gross amount of electricity generated by the equipment referred to in those descriptions is apportioned, using engineering estimates, to the equipment’s capacity added to the equipment and to the capacity of the equipment before the additional capacity was added, based on the ratio of the amount of its increased capacity to its total capacity, taking into account the increased capacity.

For the purposes of subsection (1), the electricity generation capacity of a facility increases by 50 MW or more for a calendar year as of the day on which its electricity generation capacity is 50 MW greater than its electricity generation capacity on December 31, 2020. For greater certainty, any increase in capacity is cumulative.

Subject to subsection (3) and sections 38 and 39, the output-based standard that is applicable to a specified industrial activity of a covered facility, for which an output-based standard must be calculated in accordance with this section, is calculated in accordance with the formula The quotient where the numerator is the summation of A minus the result of the summation of B, C and F minus G for each reference year “i”, and the denominator is the summation of D for each reference year “i”, and then the quotient is multiplied by E. where A is the quantity of GHGs that are emitted from the covered facility for reference year “i”, determined in accordance with section 35, expressed in CO 2 e tonnes; B is the allocation for net thermal energy for reference year “i” and is determined by the formula 0.062 CO 2 e tonnes/gigajoules × (M − N) × O where M is the quantity of thermal energy produced by the covered facility that was sold to another covered facility in reference year “i”, as indicated by the quantity of thermal energy on sales receipts or determined by another objective method, expressed in gigajoules, N is the quantity of thermal energy that was bought from other covered facilities and not subsequently sold in reference year “i”, as indicated by the quantity of thermal energy on sales receipts or by another objective method, expressed in gigajoules, and O is the ratio of heat from the combustion of fossil fuels to produce thermal energy and is, if M is greater than N, the ratio of heat determined under section 34 for reference year “i” for the covered facility, or if M is less than N, the ratio of heat determined under section 34 for reference year “i” for the covered facility from which the thermal energy was purchased, and 0 for all reference years if the absolute value of the quotient obtained by dividing the sum of the results determined under paragraph (a) for each reference year “i” by the number of reference years is less than the quotient determined by the formula The product of 0.015 by the quotient where the numerator is the sum of A for each reference year “i” and the denominator is n. C is the total quantity of GHGs from all specified industrial activities engaged in at the facility for reference year “i” other than the industrial activity for which the output-based standard is being calculated, determined in accordance with sections 17 and 18; D is the production from a covered facility from the specified industrial activity for which the output-based standard is being calculated for reference year “i” quantified in accordance with section 31; E is the GHG emissions reduction factor applicable to the specified industrial activity for which the output-based standard is being calculated and is 95% for a specified industrial activity set out in paragraph 7(c), 8(b) or (c) or 20(d), column 1, of Schedule 1, 90% for a specified industrial activity set out in item 22 or paragraph 23(a) or 29(d), column 1, of Schedule 1, and 80% for all other specified industrial activities; F is the total quantity of GHGs from an activity engaged in at the facility, for reference year “i”, that is not a specified industrial activity, determined in accordance with sections 17 and 18, if with respect to a covered facility whose primary activity is an industrial activity, that quantity accounts for 20% or more of the total quantity of GHGs from a covered facility for that reference year, determined in accordance with sections 17 and 18, or the revenue, in dollars, attributable to the sale of the product produced by the facility from that industrial activity accounts for 20% or more of the revenue, in dollars, attributable to the sale of all products produced by the facility from all of the facility’s industrial activities for that reference year, or with respect to a covered facility whose primary activity is not an industrial activity, the activity is not an industrial activity, or the quantity of GHGs from an industrial activity accounts for 20% or more of the total quantity of GHGs from a covered facility, for that reference year, determined in accordance with sections 17 and 18; and G is the quantity of CO 2 determined for the purposes of the description B in section 35, from all activities engaged in at the facility for reference year “i” other than the industrial activity for which the output-based standard is being calculated; and i is the i th reference year, where “i” goes from 1 to n and where n is the number of reference years, determined in accordance with subsection (2).

Subject to paragraph (2.1)(a), the reference years applicable to the specified industrial activities that are engaged in at a covered facility for which an emissions limit is calculated for a compliance period are

For the purposes of subsection (1), if the calculation of the emissions limit for a compliance period takes into account a specified industrial activity that began to be engaged in at the covered facility during that compliance period and for which an output-based standard has not previously been calculated under this section

For the purposes of the descriptions of C, F and G in subsection (1), the method used to attribute the quantity of GHGs to an activity must be rigourous, objective and based on sound engineering principles. The same method must be used for each reference year and no quantity of GHGs may be attributed to more than one activity.

For the purposes of subsection (1), if an output-based standard must be calculated with respect to a covered facility for more than one specified industrial activity, the allocation for net thermal energy can only be deducted from one of those calculations.

The result from the calculation under subsection (1) is rounded to three significant figures.

For the purposes of the description of C in subsection 37(1), if the specified industrial activity for which the output-based standard is being calculated is the industrial activity set out in paragraph 20(d), column 1, of Schedule 1 and the covered facility is also engaged in the generation of electricity, the quantity of GHGs from the generation of electricity attributable to the industrial activity set out in that item are not included in the total quantity of GHGs determined for C.

For greater certainty, the quantity of GHGs from the generation of electricity attributable to the specified industrial activities set out in paragraphs 20(a) to (c), column 1, of Schedule 1 are included in the total quantity of emissions determined for C.

Subject to subsection (2) and sections 41.1 and 41.2, the person responsible for an electricity generation facility must determine the GHG emissions limit that applies to the electricity generation facility for each compliance period, expressed in CO 2 e tonnes, in accordance with the formula The summation of the products of Aj and Bj for each industrial activity referred to in paragraphs 38(a) to (c) of Schedule 1 “j”, summed for each unit “i” within the facility where A j is the gross amount of electricity generated during the compliance period quantified in accordance with section 32, for each unit “i” within the electricity generation facility, from each of the industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that is engaged in at the electricity generation facility; B j is the output-based standard applicable to each specified industrial activity set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at each unit “i” and that is set out in column 3; i is the i th unit, where “i” goes from 1 to n and where n is the total number of units within the electricity generation facility generating electricity using fossil fuels; and j is the j th activity, where “j” goes from 1 to m and where m is the total number of industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at the facility.

The output-based standard applicable to the industrial activity set out in paragraph 38(a), column 1, of Schedule 1 applies to a boiler unit if it generates electricity using liquid or gaseous fuel and it

If an electricity generation facility begins generating electricity on or after January 1, 2021 and meets the following criteria, the person responsible for the covered facility must determine the GHG emissions limit that applies to the facility for each compliance period as of the compliance period during which the electricity generation began, in accordance with subsection (2):

The GHG emissions limit that applies to the electricity generation facility, expressed in CO 2 e tonnes, is determined for each compliance period in accordance with the formula The summation of the products of Aj and Bj for each industrial activity referred to in paragraphs 38(a) to (c) of Schedule 1 “j”, summed for each unit “i” within the facility, plus the summation of the products of C and D, summed for each unit “k” within the facility, plus the summation of the products of E and F, summed for each unit “l” within the facility where A j is, for each unit “i” within the electricity generation facility that generates electricity from solid fuel or liquid fuel, the gross amount of electricity generated during the compliance period, quantified in accordance with section 32, from the specified industrial activities set out in paragraph 38(a) and (b), column 1, of Schedule 1 that are engaged in at the unit; B j the output-based standard applicable to each specified industrial activity set out in paragraphs 38(a) and (b), column 1, of Schedule 1 that the are engaged in at each unit “i” and that is set out in column 3; C is, for each unit “k” within the electricity generation facility that generates electricity from gaseous fuels, that has an electricity generation capacity equal to or greater than 50 MW and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit quantified in accordance with section 32; D is the output-based standard applicable and is 370 CO 2 e tonnes per unit of measurement, for compliance period 2021, 329 CO 2 e tonnes per unit of measurement, for compliance period 2022, 288 CO 2 e tonnes per unit of measurement, for compliance period 2023, 247 CO 2 e tonnes per unit of measurement, for compliance period 2024, 206 CO 2 e tonnes per unit of measurement, for compliance period 2025, 164 CO 2 e tonnes per unit of measurement, for compliance period 2026, 123 CO 2 e tonnes per unit of measurement, for compliance period 2027, 82 CO 2 e tonnes per unit of measurement, for compliance period 2028, 41 CO 2 e tonnes per unit of measurement, for compliance period 2029, and 0 CO 2 e tonnes per unit of measurement, for compliance period 2030 and subsequent compliance periods; and E is, for each unit “l” within the electricity generation facility generating electricity from gaseous fuels, that has an electricity generation capacity of less than 50 MW or is designed to operate at a thermal energy to electricity ratio of 0.9 or greater, the gross amount of electricity generated during the compliance period from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, that is engaged in at the unit quantified in accordance with section 32; F the output-based standard applicable to each specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that are engaged in at each unit “i” and that is set out in column 3; i is the i th unit, where “i” goes from 1 to n and where n is the total number of units within the electricity generation facility generating electricity using solid fuel or liquid fuel; j is the j th activity, where “j” goes from 1 to m and where m is the total number of industrial activities set out in paragraphs 38(a) to (b), column 1, of Schedule 1 that is engaged in at the electricity generation facility; k is the k th unit, where “k” goes from 1 to r and where r is the total number of units within the electricity generation facility, generating electricity using gaseous fuel, that have an electricity generation capacity equal to or greater than 50 MW and are designed to operate at a thermal energy to electricity ratio of less than 0.9; l is the l th unit, where “l” goes from 1 to s and where s is the total number of units within the electricity generation facility, generating electricity using gaseous fuel, that have an electricity generation capacity of less than 50 MW or are designed to operate at a thermal energy to electricity ratio of 0.9 or greater.

If, on or after January 1, 2021, an electricity generation facility’s electricity generation capacity from gaseous fuels increases by 50 MW or more and that increased capacity is from a unit designed to operate at a thermal energy to electricity ratio of less than 0.9, the person responsible for the covered facility must determine the GHG emissions limit that applies to the facility for each compliance period, as of the compliance period during which the increase occurred, in accordance with subsection (2).

The GHG emissions limit that applies to the electricity generation facility, expressed in CO 2 e tonnes, is determined for each compliance period in accordance with the formula The summation of the products of Aj and Bj for each industrial activity referred to in paragraphs 38(a) to (c) of Schedule 1 “j”, summed for each unit “i” within the facility, plus the summation of the products of C and D, summed for each unit “k” within the facility, plus the summation of the products of E and D plus the products of F and G, summed for each unit “l” within the facility where A j is the gross amount of electricity generated during the compliance period, quantified in accordance with section 32, for each of the following units: for each unit “i” within the electricity generation facility, from each of the specified industrial activities set out in paragraphs 38(a) and (b), column 1, of Schedule 1 that are engaged in at the electricity generation facility, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit, for each unit “i” within an electricity generation facility that was generating electricity prior to the facility’s increase in electricity generation capacity, except units referred to in the description of E or F, and that began generating electricity on or after January 1, 2021, if the unit has an electricity generation capacity of less than 50 MW or designed to operate at a thermal energy to electricity ratio equal to or greater than 0.9; B j the output-based standard applicable to each of the specified industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at each unit “i” and that is set out in column 3; C is, for each unit “k” within the electricity generation facility that started generating electricity from gaseous fuels on or after January 1, 2021, that has an electricity generation capacity equal to or greater than 50 MW and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit quantified in accordance with section 32; D is the output-based standard set out in the description of D in subsection 41.1(2) that is applicable to the compliance period in question; E is, for each unit “l” that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity was increased by 50 MW or more and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period that is attributed to the capacity added to a unit, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit, quantified in accordance with section 32 and subsection (3); F is, for each unit “l” that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity was increased by 50 MW or more and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period that is attributed to the capacity of the unit before the additional capacity was added, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, that is engaged in at the unit, quantified in accordance with section 32 and subsection (3); G is the output-based standard applicable to the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 and set out in column 3; i is the i th unit, where “i” goes from 1 to n and where n is the total number of units within the electricity generation facility generating electricity using fossil fuels, except units referred to in the description of k and l; j is the j th activity, where “j” goes from 1 to m and where m is the total number of industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at the electricity generation facility; k is the k th unit, where “k” goes from 1 to r and where r is the total number of units within the electricity generation facility that started generating electricity from gaseous fuels on or after January 1, 2021, that have an electricity generation capacity equal to or greater than 50 MW and that are designed to operate at a thermal energy to electricity ratio of less than 0.9; and l is the l th unit, where “l” goes from 1 to s and where s is the total number of units that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity was increased by 50 MW or more and that are designed to operate at a thermal energy to electricity ratio of less than 0.9.

For the purposes of the descriptions of E and F in subsection (2), the gross amount of electricity generated by a unit referred to those descriptions is apportioned, using engineering estimates, to the capacity added to the unit and to the capacity of the unit before the additional capacity was added, based on the ratio of its increased capacity to its total capacity, taking into account the increased capacity.

For the purposes of subsection (1), the electricity generation capacity, from gaseous fuels, of an electricity generation facility increases by 50 MW or more for a calendar year as of the day on which its electricity generation capacity is 50 MW greater than its electricity generation capacity on December 31, 2020. For greater certainty, any increase in a unit’s capacity is cumulative.

If, on January 1 of a compliance period, a covered facility has not completed two calendar years of production following the date of first production, sections 36 to 42 do not apply to the covered facility for that compliance period.

Subsection (1) only applies to a covered facility whose primary activity is a specified industrial activity.

Subsection (1) does not apply to an electricity generation facility that begins generating electricity on or after January 1, 2021.

For the purposes of subsection (1), to determine the date of first production for a covered facility all industrial activities that the facility has previously been or is currently engaged in must be taken into account.

The person responsible for a covered facility must assess for each compliance period the quantity of GHGs that are emitted from the covered facility during the applicable compliance period against its applicable GHG emissions limit in accordance with the formula A – B where A is the quantity of GHGs that are emitted from the covered facility during the compliance period, expressed in CO 2 e tonnes, determined in accordance with subsection 35; and B is the applicable GHG emissions limit for the covered facility for the compliance period, expressed in CO 2 e tonnes, determined in accordance with sections 36, 36.1, 36.2, 41, 41.1, 41.2 or 42.

The result of the assessment in subsection (1) is to be rounded to the nearest whole number or, if the number is equidistant between two whole consecutive numbers, to the higher number.

If, on January 1 during a compliance period, the covered facility has not completed two calendar years of production following the date of first production, subsection (1) does not apply to the covered facility for that compliance period.

Subsection (2) only applies to a covered facility whose primary activity is a specified industrial activity.

Subsection (2) does not apply to an electricity production facility that begins generating electricity on or after January 1, 2021.

For the purposes of subsection (2), to determine the date of first production for a covered facility all industrial activities that the facility has previously been or is currently engaged in must be taken into account.

The person responsible for a covered facility must keep a record of the following information with respect to the covered facility and each unit within it, if applicable, for each compliance period

For each compliance period during which a person responsible for the covered facility uses a continuous emissions monitoring system, they must comply with the record keeping requirements set out in Quantification Methods.

The record must be kept within 30 days after the information becomes available.

A person who is required to keep a record of information under subsection (1), must, on the Minister’s request, provide a copy of that record to the Minister without delay.

Any information that is required to be provided to the Minister under these Regulations with respect to a covered facility must be submitted electronically in the form and format specified by the Minister and must bear the electronic signature of the person responsible for the covered facility or of their authorized official.

If the Minister has not specified an electronic form and format or if it is not feasible to submit the information in accordance with subsection (1) because of circumstances beyond the control of the person responsible for the covered facility or their authorized official, the information must be submitted on paper, signed by the person responsible for the covered facility or their authorized official, in the form and format specified by the Minister. However, if no form and format has been so specified, it may be in any form and format.

The person responsible for a covered facility must retain a record that contains the information set out in section 45, any information that the Minister specifies under subsection 187(2) of the Act and a copy of information submitted to the Minister under these Regulations, including any calculations, measurements and other data on which the information is based.

The records, copies and documents must be retained at the principal place of business in Canada of the person responsible for the covered facility or, on notification to the Minister, at any other place in Canada where they can be inspected.

If the records, copies or supporting documents are moved, the person responsible for the covered facility must notify the Minister, in writing, of the civic address of the new location within 30 days after the day of the move.

To be authorized to verify an annual report or a corrected report, a third party must

For the purpose of the verification of a covered facility’s annual report or corrected report, a material discrepancy exists when

The person responsible for a covered facility must ensure that no real or potential conflict of interest exists between the person and the accredited verification body, including members of the verification team and any individual or corporate entity associated with the verification body, that is a threat to or compromises the verification body’s impartiality that cannot be effectively managed.

The person responsible must not have their annual report verified by a verification body that has verified six consecutive annual reports prepared under these Regulations with respect to the same covered facility, unless three years have elapsed since the last of those reports was verified. However, a corrected report may be verified by the verification body within those three years if it is in relation to an annual report verified by that verification body.

The person responsible for a covered facility must not have more than a total of six of its annual reports prepared under these Regulations for the same covered facility verified by the same verification body within a period of nine years.

Subject to subsection (2), the person responsible for a covered facility must ensure that their covered facility is visited by an accredited verification body in the following situations:

If buildings that are used for legal, administrative or management purposes are not located where an industrial activity is carried out, the person responsible for a covered facility must ensure that the verification body visits those buildings if data or information necessary for verifying an annual report or a corrected report is kept in those buildings.

The Minister may establish the emissions limit or determine the quantity of GHGs emitted from the covered facility for the compliance period if

The Minister is to establish the emissions limit or determine the quantity of GHGs emitted from the covered facility for the compliance period, as the case may be, based on the following:

The Minister must notify the person responsible for the covered facility, in writing, of their determination with respect to the emissions limit or the quantity of GHGs emitted from the covered facility established for the compliance period.

Any compensation that is provided by means of an excess emissions charge payment must be made electronically to the Receiver General for Canada.

Any compensation that is provided by means of a remittance of surplus credits must be made in the manner set out in section 70.

Any compensation that is provided by means of a remittance of compliance units other than surplus credits must be made in the manner set out in section 71.

For the purposes of subsection 174(3) of the Act, the regular-rate compensation deadline is December 15 of the calendar year in which the related annual report must be submitted.

Despite subsection (1), for the compliance period that ends on December 31, 2019, the regular-rate compensation deadline is April 15, 2021.

For the purposes of subsection 174(4) of the Act, the increased-rate compensation deadline is February 15 of the calendar year following the deadline under subsection (1).

Despite subsection (2), for the compliance period that ends on December 31, 2019, the increased-rate compensation deadline is June 15, 2021.

However, if a notice of determination under subsection 53(3) is issued after October 31 of the year in which the related annual report is due

For the purposes of section 175 of the Act and subject to subsection (2), the number of surplus credits, equivalent to the difference between the emissions limit and the quantity of GHGs emitted from the covered facility, that the Minister issues is based on what is reported in the annual report submitted for the compliance period if the emissions limit that was set out in the report was calculated in accordance with these Regulations, unless a material discrepancy within the meaning of subsection 49(2) exists with respect to the total quantity of GHGs or the production from one of the specified industrial activities that is used in the calculation of the emissions limit for the compliance period.

The Minister will not issue surplus credits if the Minister has established the emissions limit or determined the quantity of GHGs emitted from the covered facility for the compliance period under section 53.

If the notice indicated that the error or omission, or the aggregate of all errors and omissions, would have constituted a material discrepancy under subsection 49(2), a corrected report, along with a verification report prepared in accordance with section 52, must be submitted to the Minister by the person responsible within 120 days after the day on which the notice is submitted.

The corrected report must include the information referred to in sections 11 and 12 and, under a heading, the following information:

Subsection 62(2) applies to a report that is required by the Minister under subsection 177(2) of the Act and the report must be submitted to the Minister within the following period:

The corrected report submitted under paragraph (1)(b) must be submitted with a verification report prepared in accordance with section 52.

For the purposes of section 178 of the Act, the revised compensation to be paid or remitted or the number of surplus credits to be issued, as the case may be, is equal to the difference between the result of the assessment made in accordance with section 44, and reported in the annual report, and the result that is reported in the corrected report.

For the purposes of paragraph 178(1)(a) of the Act, any revised compensation is to be provided by means of an excess emissions charge payment or a remittance of compliance units. Revised compensation is to be provided if the difference referred to in subsection (1) is greater than or equal to 500 CO 2 e tonnes.

For the purposes of paragraph 178(1)(b) of the Act and subject to subsection (4), the Minister may issue a number of surplus credits that is equivalent to the difference between, as the case may be,

The Minister will not issue surplus credits if

If a corrected report shows that an excess number of surplus credits was issued to the person responsible for a covered facility and the credits in question remain in an account in the tracking system that is linked to the covered facility, the Minister must revoke the excess credits without notice. The revocation is effective as of the date on which the corrected report is submitted.

If any of the excess surplus credits are no longer in an account in the tracking system that is linked to the covered facility, the person responsible for the facility must, within the compensation deadlines set out in subsections 69(1) and (2), make up the amount owed by

Any revised compensation that is provided by the remittance of surplus credits must be made in the manner set out in section 70.

Any revised compensation that is provided by the remittance of compliance units other than surplus credits must be made in the manner set out in section 71.

With respect to revised compensation, the regular rate referred to in subsection 174(3) of the Act applies for a period of 45 days after the day on which the corrected report must be submitted.

If compensation is not provided in full by the deadline set out in subsection (1), the increased rate referred to in subsection 174(4) of the Act applies for a period of 60 days after that deadline.

If a corrected report is submitted to the Minister in respect of a compliance period for which the regular-rate compensation deadline set out in subsection 57(1) or (1.1) has not expired, the compensation deadline in respect of that compliance period is the later of

Subject to subsection (2), any surplus credit may be remitted to the Minister for the purposes of subsection 174(1) or paragraph 178(1)(a) of the Act if the credit was issued no more than five calendar years before the remittance.

The surplus credit must have been issued in respect of a facility that is located in a province that was listed in Part 2 of Schedule 1 to the Act for at least one day during the compliance period for which the credit is being remitted.

For the purposes of subsection 180(1) of the Act, the Minister may suspend a surplus credit in an account if the Minister has reasonable grounds to believe that the credit

For the purposes of subsection 180(1) of the Act, the Minister may suspend all surplus credits

The Minister must, without delay, notify the holder of the account of the suspension of the credit, the reasons for the suspension and the date on which it takes effect.

If a credit was suspended on any of the grounds listed in subsection (1), the holder of the account may, within 30 days after the day on which the Minister’s notice under subsection (2) is issued, submit to the Minister their reasons why the credit should not be suspended.

The person responsible for a facility who holds an account that is linked to the facility in the tracking system in which there remain surplus credits that were suspended as a result of the name of a province being removed from Part 2 of Schedule 1 to the Act may make a request to the Minister to lift the suspension of those surplus credits if the surplus credits are to be provided as compensation for the facility’s excess emissions under subsection 174(1) of the Act or paragraph 178(1)(a) of the Act, in respect of a compliance period during which the facility was a covered facility.

If the Minister requires a person, under subsection 181(1) of the Act, to remit a compliance unit, the Minister must provide the person a notice indicating the reason for the remittance, the number of compliance units to be remitted and the deadline by which the remittance is to be made.

The compliance units remitted to the Minister under subsection 181(2) of the Act must

If an account, other than a GHG Offset Credit System account as defined in the Canadian Greenhouse Gas Offset Credit System Regulations, has been inactive for more than seven years, the Minister may give 60 days’ notice to the holder of the account of the Minister’s intent to close the account.

If the holder of the account fails to request that the account remain open before the expiry of the 60 days, the Minister may close the account under subsection 186(3) of the Act.

A unit or credit is to be recognized as a compliance unit if

In establishing the list of offset programs, the Minister must ensure that each one includes the following elements:

In establishing the list of offset protocols recognized under a program referred to in subsection (2), the Minister must verify that each protocol ensures that

A recognized unit or credit must, at the time of its remittance to the Minister,

Any records kept in accordance with section 11 of the Greenhouse Gas Emissions Information Production Order, as it read immediately before August 1, 2019, during the period beginning on January 1, 2019 and ending on August 1, 2019, are deemed to be records kept for the purposes of subsection 45(1) of these Regulations.

For the 2019 calendar year, if a person responsible for a covered facility used an alternative sampling, measurement or analysis method for a specified emission type in accordance with section 8 of the Greenhouse Gas Emissions Information Production Order, as it read before August 1, 2019, they must keep a record of a description of that method.

For the 2019 calendar year, despite paragraph 31(1)(a) and subsection 36(1) of these Regulations, the production from a covered facility with respect to the specified industrial activity set out in paragraph 36(c), column 1, of Schedule 1 to these Regulations may be quantified in accordance with section 102 of the Greenhouse Gas Emissions Information Production Order, as it read before August 1, 2019. In that case, the output-based standards that apply are

For the 2019 calendar year, if a covered facility where the specified industrial activity set out in paragraph 36(c), column 1, of Schedule 1 to these Regulations is engaged in quantifies production in accordance with subsection (1), the annual report must include the quantity of specialty products produced, in tonnes, if that information is available.

Subject to subsections (2) to (6), these Regulations are deemed to have come into force on January 1, 2019.

These Regulations apply in Yukon and Nunavut on July 1, 2019.

Sections 26 to 30 and subsections 31(2) and (3) come into force on January 1, 2020.

Subsection 45(2) of these Regulations comes into force on August 1, 2019.

Section 56 comes into force on January 1, 2022.

Section 76 comes into force on February 16, 2021.

Direct-only complexity weighted barrels (direct-only CWB) is quantified in accordance with the method outlined in section 2.5 of the directive entitled CAN-CWB Methodology for Regulatory Support: Public Report, published by Solomon Associates in January 2014.

When quantifying the direct-only complexity weighted barrels, the emissions and energy use accounted for are those that are associated with the industrial activity set out in paragraph 3(a), column 1 of Schedule 1.

In the method referred to in subsection (1),

Production by the covered facility, expressed in megawatt hours, is the sum of the amounts determined by the following formula for each of the drivers operated by the covered facility: P x × L x× H x where P x is the rated brake power of driver “x”, expressed in megawatts; L x is the actual annual average percent load of driver “x”, or, if the actual annual average percent load is unavailable, the percentage determined by the formula: rpm avg /rpm max where rpm avg is the actual annual average speed during operation of driver “x”, expressed in revolutions per minute, and rpm max is the maximum rated speed of driver “x”, expressed in revolutions per minute; H x is the number of hours during the compliance period that driver “x” was operated; and

The following definitions apply in this section.

Production by the covered facility is quantified in tonnes of finished product or tonnes of specialty product, as follows:

A finished product referred to in paragraph (1)(b) does not include pulping liquor, wood waste, non-condensable gases, sludge, tall oil, turpentine, biogas, steam, water or products that are used in the production process.

For the purposes of paragraph (1)(b), a specialty product means abrasive paper base, food grade grease resistant paper, packaging waxed paper base, paper for medical applications, napkin paper for commercial use, towel paper for commercial or domestic use, bath paper for domestic use and facial paper for domestic use.

Subject to section 2, if a unit uses only one fossil fuel to generate electricity, production of electricity must be quantified in Gigawatt hours of gross electricity generated by the unit, measured at the electrical terminals of the generators of each unit using meters that comply with the requirements set out in subsection 31(2) of these Regulations.

Subject to section 2, if a unit uses a mixture of fossil fuels or a mixture of biomass and fossil fuels to generate electricity, the gross electricity generated by the unit is to be determined separately for the gaseous fuels, liquid fuels and solid fuels in accordance with the following formula and expressed in Gigawatt hours: Gu is multiplied by a quotient where the numerator is HFFk, and the denominator is HB plus the summation of HFFk for each gaseous fuels, liquid fuels and solid fuels “k”. where G U is the gross quantity of electricity generated by the unit during a compliance period, as measured at the electrical terminals of the generators of the unit using meters that comply with the requirements set out in subsection 31(2) of these Regulations; HFF k is determined in accordance with the following formula, calculated separately for gaseous fuels, liquid fuels and solid fuels type “k”: The summation of the products of QFFj and HHVj for each fossil fuel type “j”. where QFF j is the quantity of gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the unit to generate electricity during the compliance period, determined in accordance with subsection (3), HHV j is the higher heating value of the gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the unit, determined in accordance with Quantification Methods, and j is the j th fossil fuel type combusted in the unit, where “j” goes from 1 to m and where m is the number of types of gaseous, liquid or solid fuel combusted, as the case may be, combusted; and HB is determined in accordance with the formula The summation of the products of QBi and HHVi for each biomass fuel type “i”where: QB i is the quantity of biomass fuel type “i” combusted in the unit to generate electricity during the compliance period, determined in accordance with the subsection (3), HHV i is the higher heating value for the biomass fuel type “i” combusted in the unit, is determined in accordance with Quantification Methods, and i is the i th biomass fuel type combusted in the unit, where “i” goes from 1 to n and where n is the number of types of biomass fuels combusted.

The quantity of fuel for QFF j or QB i is determined on the following basis:

If a covered facility uses a mixture of fossil fuels or a mixture of biomass and fossil fuels to generate electricity, the gross electricity generated by the facility is to be determined separately for the gaseous fuels, liquid fuels and solid fuels in accordance with the following formula and expressed in Gigawatt hours: Gu is multiplied by a quotient where the numerator is HFFk, and the denominator is HB plus the summation of HFFk for each gaseous fuels, liquid fuels and solid fuels “k”where G U is the gross quantity of electricity generated by the covered facility during the compliance period, expressed in Gigawatt hours; HFF k is determined in accordance with the following formula, calculated separately for gaseous fuels, liquid fuels and solid fuels type “k”: The summation of the products of QFFj and HHVj for each fossil fuel type “j”where QFF j is the quantity of gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the facility for electricity generation during the compliance period, determined under subsection (2) and in accordance with Quantification Methods, HHV j is the higher heating value of the gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the facility for electricity generation determined in accordance with Quantification Methods, and j is the j th fossil fuel type combusted in the facility, where “j” goes from 1 to m and where m is the number of types of gaseous, liquid or solid fuels combusted, as the case may be; and HB is determined in accordance with the formula The summation of the products of QBi and HHVi for each biomass fuel type “i”where QB i is the quantity of biomass fuel type “i” combusted in the facility for electricity generation during the compliance period, determined in accordance with subsection (2) and with Quantification Methods, HHV i is the higher heating value for each biomass fuel type “i” combusted in the facility for electricity generation in accordance with Quantification Methods, and i is the i th biomass fuel type combusted in the facility, where “i” goes from 1 to n and where n is the number of types of biomass fuels combusted.

The quantity of fuel for QFF j and QB i is determined on the following basis:

The quantity of wood veneer does not include wood veneer used in the production of plywood.

The quantity of wood veneer and plywood refers only to wood veneer and plywood that will not undergo an additional transformation at the facility.