Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations (SOR/2012-167)

Regulations are current to 2019-07-01 and last amended on 2018-11-30. Previous Versions

PART 1Regulated Units and Emission Limit

Emission-intensity Limit

Marginal note:Limit — 420t/GWh

  •  (1) A responsible person for a new unit or an old unit must not, on average, emit with an intensity of more than 420 tonnes CO2 emissions from the combustion of fossil fuels in the unit for each GWh of electricity produced by the unit during a calendar year.

  • Marginal note:Quantification of electricity and emissions

    (2) The quantity of

    • (a) electricity referred to in subsection (1) is to be determined in accordance with section 19; and

    • (b) emissions referred to in subsection (1) are to be determined in accordance with the applicable provisions of sections 20 to 24.

  • Marginal note:CO2 released from sorbent

    (3) The CO2 emissions released from the use of sorbent to control the emission of sulphur dioxide from a unit are to be included as CO2 emissions from the combustion of fossil fuels in that unit for the purpose of subsection (1).

  • Marginal note:Coal gasification systems

    (4) Emissions from a gasification system that produces synthetic gas derived from coal or petroleum coke that is used as a fuel to produce electricity from a unit referred to in subsection (1) are to be included as emissions from that unit, for the purpose of subsection (1), if that coal gasification system has at least one responsible person in common with that unit.

  • Marginal note:CCS excluded

    (5) The CO2 emissions from a unit referred to in subsection (1) do not include emissions that

    • (a) are captured in accordance with the laws of Canada or a province that regulate that capture;

    • (b) are transported and stored in accordance with the laws of Canada or a province, or of the United States or one of its states, that regulate that transportation or storage, as the case may be; and

    • (c) are not subsequently released into the atmosphere.

  • Marginal note:Partial year application

    (6) For greater certainty, if subsection (1) applies in respect of a unit only for a period during a calendar year, that period is considered to be the calendar year for the purpose of that subsection.

  • SOR/2018-263, s. 2

Registration

Marginal note:Registration

  •  (1) A responsible person for a new unit must register the new unit by sending to the Minister, on or before 30 days after its commissioning date, a registration report that contains the information set out in Schedule 1.

  • Marginal note:Registration number

    (2) On receipt of the registration report, the Minister must assign a registration number to the unit and inform the responsible person of that registration number.

  • Marginal note:Change of information

    (3) If the information provided in the registration report changes or if the unit is decommissioned, the responsible person must, not later than 30 days after the change or decommissioning, send to the Minister a notice that provides the updated information or that indicates the unit has been decommissioned, as the case may be, along with the date of the decommissioning.

  • SOR/2018-263, s. 3

Substitution of Units and Deferred Application

Marginal note:Application of subsection 3(1) — substituted units

  •  (1) For the purpose of subsection 3(1), a responsible person for a unit (referred to in this section as the “original unit”) that reaches the end of its useful life during a calendar year may apply to the Minister to have another unit (referred to in this section as the “substituted unit”) substituted for the original unit if the following conditions are satisfied:

    • (a) the substituted unit is an existing unit;

    • (b) the original unit and the substituted unit have a common owner who has an ownership interest of 50% or more in each of those two units;

    • (c) those two units are located in the same province; and

    • (d) the production capacity of the substituted unit, during the calendar year preceding the calendar year in which the application is made, was equal to or greater than the production capacity of the original unit during that preceding calendar year.

  • Marginal note:Period of application

    (2) The application must be made in the period that begins on January 1 and that ends on May 31 of the calendar year during which the unit reaches its end of life.

  • Marginal note:Content of application

    (3) The application must include the registration number of the original unit and of the substituted unit and information, with supporting documentation, to demonstrate that the conditions of paragraphs (1)(b) to (d) are satisfied.

  • Marginal note:Granting of substitution

    (4) The Minister must, within 30 days after receiving the application, grant the substitution if the following conditions are satisfied:

    • (a) the substituted unit is not a shut-down unit referred to in subsection 6(4);

    • (b) the substituted unit is not involved in an exemption granted under subsection 14(4); and

    • (c) the Minister is satisfied that the conditions of paragraphs (1)(a) to (d) are satisfied.

  • Marginal note:Effect

    (5) On the granting of the substitution, subsection 3(1) applies in respect of the substituted unit rather than the original unit as of the later of

    • (a) July 1, 2015, and

    • (b) the beginning of the calendar year that follows the calendar year in which the application is made.

  • Marginal note:Cessation of effect

    (6) The substitution referred to in subsection (5) ceases to have effect, and subsection 3(1) applies in respect of the original unit, as of the earliest of

    • (a) the calendar year that follows the day on which the responsible person for that unit and the substituted unit sends the Minister a notice indicating that they wish the substitution to no longer have an effect,

    • (b) the calendar year that follows the day on which the condition of paragraph (1)(b) is no longer satisfied,

    • (c) the calendar year that follows a calendar year during which the production capacity of the original unit was more than the production capacity of the substituted unit referred to in paragraph (1)(d),

    • (d) the calendar year that follows the end of the useful life of the substituted unit, and

    • (e) a calendar year during which electricity is produced by the substituted unit by means of thermal energy using fossil fuel other than coal, and not in conjunction with coal.

  • SOR/2012-167, s. 5
  • SOR/2018-263, s. 4

Marginal note:Deferral of application of subsection 3(1)

  •  (1) A responsible person for an existing unit that ceases to produce electricity after June 30, 2015 (referred to in this section as the “shut-down unit”) may apply to the Minister to have the application of subsection 3(1) deferred in respect of another unit or units (referred to in this section as the “deferred units”) for the number of years in the period that begins on January 1 of the calendar year that follows that cessation and that ends on December 31 of the calendar year in which the useful life of the shut-down unit ends. If the application is granted, the application of subsection 3(1) is, in respect of each calendar year in that period, deferred for the deferred unit and the calendar year that begins after the end of that deferred unit’s useful life that the responsible person specifies in their application.

  • Marginal note:Conditions of application for deferral

    (2) The application may be made only if the following conditions are satisfied:

    • (a) the shut-down unit and each of the specified deferred units have a common owner who has an ownership interest of 50% or more in the shut-down unit and in each of those specified deferred units;

    • (b) the shut-down unit and each of those specified deferred units are located in the same province; and

    • (c) the production capacity of the shut-down unit, during the calendar year preceding the day on which it ceased production, was greater than or equal to the production capacity of each of those specified deferred units during the calendar year preceding the day on which the application was made.

  • Marginal note:Content of application

    (3) The application must be made on or before May 31 of the calendar year preceding the earliest of the specified calendar years referred to in subsection (1) and must

    • (a) indicate the calendar years included in the period referred to in subsection (1);

    • (b) specify the deferred unit referred to in subsection (1) in respect of each of the calendar years referred to in paragraph (a);

    • (c) for each of those specified deferred units in respect of each of those calendar years, specify the calendar year that begins after the end of the useful life of the unit for which the application of subsection 3(1) is to be deferred;

    • (d) indicate the registration number of the shut-down unit and of each of the specified deferred units; and

    • (e) include information, with supporting documentation, to demonstrate that the conditions of paragraphs (2)(a) to (c) are satisfied.

  • Marginal note:Granting of deferral

    (4) The Minister must, within 30 days after receiving the application, grant the deferral if the following conditions are satisfied:

    • (a) the shut-down unit is not a substituted unit referred to in subsection 5(5);

    • (b) no deferred unit is a unit that is involved in a temporary exemption granted under subsection 9(3); and

    • (c) the Minister is satisfied that the conditions of paragraphs (2)(a) to (c) are satisfied;

  • Marginal note:No recommencement of shut-down unit

    (5) It is prohibited for any person to cause the shut-down unit to recommence producing electricity after the application of subsection 3(1) is deferred in respect of a specified deferred unit.

  • Marginal note:Changes to deferred units

    (6) The responsible person referred to in subsection (1) may change the specified deferred unit in respect of a specified calendar year referred to in paragraph (3)(c) by sending a notice to the Minister if that specified calendar year is not one for which the application of subsection 3(1) has been deferred. The notice must include

    • (a) the registration number of the proposed new specified deferred unit;

    • (b) the calendar year that begins after the end of the useful life of the proposed new specified deferred unit for which the application of subsection 3(1) is to be deferred; and

    • (c) information, with supporting documentation, to demonstrate that the conditions of paragraphs (2)(a) and (b) are satisfied in respect of the proposed new specified deferred unit and the condition of paragraph (2)(c) is satisfied in respect of each specified deferred unit, including the proposed new specified deferred unit, during the calendar year preceding the day on which the notification is sent.

  • Marginal note:Allowance of changes

    (7) The Minister must, within 30 days after receiving the notification, allow the change if the Minister is satisfied that the demonstration referred to in subsection (6) has been made.

  • Marginal note:Cessation of effect

    (8) Despite subsection (1), the deferral ceases to have effect and subsection 3(1) applies in respect of the specified deferred units as of the earliest of

    • (a) the calendar year that follows the calendar year in which the application is made, if a shut-down unit referred to in subsection (1) has not ceased to produce electricity by January 1 of that following calendar year,

    • (b) any calendar year in which a shut-down unit referred to in subsection (1) recommences to produce electricity,

    • (c) the calendar year that follows the day on which the Minister receives a notice from the responsible person for the shut-down unit and the deferred units indicating that they wish the deferral to no longer have an effect,

    • (d) the calendar year that follows the day on which the condition of paragraph (2)(a) is no longer satisfied, and

    • (e) the calendar year that follows a specified calendar year referred to in paragraph (3)(c) in which the specified deferred unit referred to in that paragraph had a production capacity greater than the production capacity of the shut-down unit during the calendar year preceding the day on which it ceased production.

 
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