Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations

Marginal note:Exemption

• 14 (1) A responsible person for an old unit may, on application made to the Minister, be exempted from the application of subsection 3(1) in respect of the old unit for a period of 24 consecutive months that begins on January 1 of the calendar year that follows the calendar year in which the application is made if the following conditions are satisfied:

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

  • (b) the production capacity of the existing 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 old unit during that preceding calendar year;

  • (c) the existing unit and the old unit are located in the same province;

  • (d) the quantity of CO₂ emissions from the combustion of fossil fuels in the existing unit is determined in accordance with a system or method referred to in subsection 20(1);

  • (e) the quantity of CO₂ emissions from the combustion of fossil fuels in the existing unit that are captured, transported and stored is determined using a direct measure of the flow of, and the concentration of CO₂ in, the emissions from that combustion of fuel;

  • (f) the emissions referred to in paragraph (e) are captured in accordance with the laws of Canada or a province that regulate that capture and 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;

  • (g) the emissions referred to in paragraph (e) are captured, transported and stored for a period of seven consecutive calendar years;

  • (h) the emissions referred to in paragraph (e) comprise at least 30% of the quantity of CO₂ emissions produced from the combustion of fossil fuels in the existing unit for each calendar year during that seven-year period; and

  • (i) the existing unit does not reach the end of its useful life during that seven-year period.

• Marginal note:Application

  (2) A responsible person for an old unit must apply for the exemption before September 1 of the calendar year preceding the calendar year for which the exemption is sought.

• Marginal note:Contents

  (3) The application must include the registration number of the old unit and of the existing unit and information, with supporting documentation, to demonstrate that

  • (a) the conditions of paragraphs (1)(a) to (f), (h) and (i) are satisfied; and

  • (b) at least 30 consecutive months of the period referred to in paragraph (1)(g) have occurred before the day on which the application is made.

• Marginal note:Granting of exemption

  (4) The Minister must, within 30 days after receiving the application, grant the exemption if

  • (a) no exemption referred to in subsection (1) has been previously granted in respect of the old unit;

  • (b) no exemption referred to in subsection (1) that involved the existing unit has been previously granted;

  • (c) the existing unit referred to in subsection (1) is not a substituted unit referred to in subsection 5(5); and

  • (d) the Minister is satisfied that the requirements set out in subsection (3) are satisfied.

• Marginal note:Obligation to capture 30% of CO₂ emissions

  (5) A responsible person who has been exempted under subsection (4) in respect of an existing unit must ensure that the conditions of paragraphs (1)(a) to (f), (h) and (i) are satisfied for the portion of the period referred to in paragraph (1)(g) that remains after the occurrence of the period of consecutive months described in paragraph (3)(b).