Output-Based Pricing System Regulations (SOR/2019-266)

Interpretation

Marginal note:Definition of facility

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

  • (a) all of the following elements that are operated in an integrated way to carry out a specified industrial activity:

    • (i) a site, or multiple sites, at which the specified industrial activity is carried out and the buildings, equipment and other structures and stationary items located on the site or sites, and

    • (ii) any other sites used in conjunction with the specified industrial activity, including a quarry, tailings pond, wastewater lagoon or pond and landfill; or

  • (b) the portion of a natural gas transmission pipeline system within a province, used to transmit processed natural gas, of which the pipelines and associated installations or equipment — including compressor stations, storage installations and compressors — are operated in an integrated way, but excludes pipelines, installations or equipment that are used in the local distribution of natural gas and that are downstream of a metering station.

• Marginal note:More than one person responsible — paragraph 1(a)

  (2) 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.

• Marginal note:More than one person responsible — paragraph 1(b)

  (3) 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.

• Marginal note:Single facility

  (4) 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.

• Marginal note:Interpretation

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

  • (a) any part of a public road or of a railway track that is bordered on both sides by the facility and used to carry out the facility’s specified industrial activities is deemed to be part of the facility;

  • (b) for greater certainty, any part of a railway track that is used exclusively to carry out the facility’s specified industrial activities is part of the facility;

  • (c) for greater certainty, buildings that are used for legal, administrative or management purposes and that are not located where a specified industrial activity is carried out are not included for the purposes of the definition facility in subsection (1); and

  • (d) 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 a person responsible in common and are not operated in an integrated way, they each constitute a separate facility.

• Marginal note:Special case

  (6) 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.

Marginal note:Definitions

• 2 (1) The following definitions apply in these Regulations.

  Act

  Act means the Greenhouse Gas Pollution Pricing Act. (Loi)

  additional industrial activity

  additional industrial activity means an industrial activity that is not set out in column 1 of Schedule 1, that is recognized by the Minister, including for the purposes of a facility’s designation as a covered facility under subsection 172(1) of the Act, and that is engaged in in a sector that is recognized by the Minister as being at significant risk of competitiveness impacts resulting from carbon pricing and of carbon leakage resulting from carbon pricing. (activité industrielle additionnelle)

  ANSI National Accreditation Board

  ANSI National Accreditation Board means the accreditation organization that is a subsidiary of the American National Standards Institute. (ANSI National Accreditation Board)

  authorized official

  authorized official means

  • (a) in respect of a person responsible for a covered facility who is an individual, that individual or another individual who is authorized to act on their behalf;

  • (b) in respect of a person responsible for a covered facility that is a corporation, an officer of the corporation who is authorized to act on its behalf; and

  • (c) in respect of a person responsible for a covered facility that is another entity, an individual who is authorized to act on its behalf. (agent autorisé)

  biomass

  biomass means plants or plant materials, animal waste or any product made of either of these, including wood and wood products, bio-charcoal, agricultural residues, biologically derived organic matter in municipal and industrial wastes, landfill gas, bio-alcohols, pulping liquor, sludge digestion gas and fuel from animal or plant origin. (biomasse)

  boiler unit

  boiler unit has the same meaning as subsection 2(1) of the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity. (groupe chaudière)

  combustion engine

  combustion engine means an engine, other than an engine that is self-propelled or designed to be propelled while performing its function, that

  • (a) operates according to the Brayton thermodynamic cycle and combusts fossil fuels to produce a net amount of motive power; or

  • (b) combusts fossil fuels and uses reciprocating motion to convert thermal energy into mechanical work. (moteur à combustion)

  combustion engine unit

  combustion engine unit has the same meaning as subsection 2(1) of the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity. (groupe moteur à combustion)

  Directive 017

  Directive 017[Repealed, SOR/2023-240, s. 2]

  Directive PNG017

  Directive PNG017[Repealed, SOR/2023-240, s. 2]

  distribution system

  distribution system has the same meaning as section 3 of the Act. (réseau de distribution)

  dolomitic lime

  dolomitic lime means lime derived from limestone that contains equal to or more than 5% magnesium carbonate. (chaux dolomitique)

  electricity generation facility

  electricity generation facility means a covered facility, other than one whose primary activity is something other than an industrial activity, that generates electricity as its primary industrial activity, used to generate electricity from fossil fuels and composed of one unit or a group of units. (installation de production d’électricité)

  flaring emissions

  flaring emissions means controlled emissions of gases from industrial activities as a result of the combustion of a gas or liquid stream produced at a facility, the purpose of which is not to produce useful heat. It does not include emissions from the flaring of landfill gas. (émissions de torchage)

  gaseous fuel

  gaseous fuel means a fossil fuel that is gaseous at a temperature of 15°C and a pressure of 101.325kPa. (combustible gazeux)

  GHG

  GHG means greenhouse gas. (version anglaise seulement)

  GHGRP

  GHGRP[Repealed, SOR/2023-240, s. 2]

  global warming potential

  global warming potential or GWP means the global warming potential set out in column 2 of Schedule 3 to the Act for the greenhouse gas set out in column 1 of that Schedule. (PRP ou potentiel de réchauffement planétaire)

  grey cement

  grey cement means a mix composed primarily of clinker that contains more than 0.5% by weight of ferric oxide, gypsum and limestone. (ciment gris)

  HFC

  HFC means the hydrofluorocarbons set out in items 6 to 24 of Schedule 3 to the Act. (HFC)

  high-calcium lime

  high-calcium lime means lime derived from limestone that contains less than 5% magnesium carbonate. (chaux forte en calcium)

  industrial process emissions

  industrial process emissions means emissions from an industrial process that involves a chemical or physical reaction other than combustion and the purpose of which is not to produce useful heat. (émissions liées aux procédés industriels)

  industrial product use emissions

  industrial product use emissions means emissions from the use of a product in an industrial process that does not involve a chemical or physical reaction and does not react in the process, including emissions from the use of sulphur hexafluoride (SF₆), HFCs and PFCs as cover gases and the use of HFCs and PFCs in a foam-blowing process. (émissions associées à l’utilisation de produits industriels)

  IPCC Guidelines

  IPCC Guidelines[Repealed, SOR/2023-240, s. 2]

  ISO Standard 14065

  ISO Standard 14065 means the standard ISO 14065 entitled Greenhouse gases — Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition, published by the International Organization for Standardization in 2013. (norme ISO 14065)

  leakage emissions

  leakage emissions means uncontrolled emissions. It does not include industrial process emissions and industrial product use emissions. (émissions dues aux fuites)

  liquid fuel

  liquid fuel means a fossil fuel that is liquid at a temperature of 15°C and a pressure of 101.325kPa. (combustible liquide)

  natural gas

  natural gas means a mixture of hydrocarbons — such as methane, ethane or propane — that is in a gaseous state at a temperature of 15°C and a pressure of 101.325 kPa and that is composed of at least 70% methane by volume or that has a higher heating value that is not less than 35 MJ/standard m³ and not more than 41 MJ/standard m³. It excludes landfill gas, digester gas, refinery gas, blast furnace gas, coke oven gas or gas derived through industrial processes from petroleum coke or coal, including synthetic gas. (gaz naturel)

  on-site transportation emissions

  on-site transportation emissions means emissions from registered or unregistered vehicles and other machinery that are used at the facility for the transport of substances, materials, equipment or products used in a production process or for the transport of people, and that are fuelled using fuels delivered in a delivery to which an exemption certificate referred to in subparagraph 36(1)(b)(v) of the Act applies. (émissions liées au transport sur le site)

  PFC

  PFC means the perfluorocarbons set out in in items 25 to 33 of Schedule 3 to the Act. (PFC)

  Quantification Methods

  Quantification Methods means the document entitled Quantification Methods for the Output-Based Pricing System Regulations, published by the Department of the Environment in 2022. (méthodes de quantification)

  solid fuel

  solid fuel means a fossil fuel that is solid at a temperature of 15°C and a pressure of 101.325kPa. (combustible solide)

  speciality lime

  speciality lime means lime produced by passing dolomitic lime through a kiln more than once or by adding material to dolomitic lime to change its properties. (chaux spécialisée)

  specified emission type

  specified emission type means an emission type listed in subsection 5(1). (type d’émissions visé)

  specified industrial activity

  specified industrial activity means, with respect to a covered facility, an industrial activity referred to in subsection 5(2).  (activité industrielle visée)

  stationary fuel combustion emissions

  stationary fuel combustion emissions means emissions from stationary devices that combust solid fuels, liquid fuels, gaseous fuels, or tires or asphalt shingles, whether in whole or in part, for the purpose of producing useful heat. (émissions de combustion stationnaire de combustible)

  thermal energy

  thermal energy means useful thermal energy in the form of steam or hot water that is intended to be used for an industrial purpose. (énergie thermique)

  thermal energy to electricity ratio

  thermal energy to electricity ratio means, in respect of a unit or equipment that generates electricity, the ratio of the total quantity of thermal energy produced to the total quantity of gross electricity generated by the unit or equipment, not including the quantities from the use of duct burners, in a calendar year and expressed in the same units of measurement. (rapport énergie thermique-électricité)

  total capacity

  total capacity means, in respect of a unit or equipment that generates electricity, either

  • (a) the maximum continuous rating (the maximum net power that can be continuously sustained by a unit or equipment that generates electricity without the use of duct burners, at a temperature of 15˚C and a pressure of 101.325 kPa), expressed in MW of electricity, as most recently reported to a provincial authority of competent jurisdiction or to the electric system operator in the province where the unit or equipment is located, or

  • (b) if no report has been made, the most electricity that was generated by the unit or equipment during two continuous hours in a calendar year, expressed in MW of electricity. (capacité totale)

  2020 GHGRP

  2020 GHGRP[Repealed, SOR/2023-240, s. 2]

  unit

  unit means an assembly comprised of a boiler or combustion engine and any other equipment that is physically connected to either, including duct burners and other combustion devices, heat recovery systems, steam turbines, generators and emission control devices, and that generates electricity and, if applicable, produces thermal energy from the combustion of fossil fuels. (groupe)

  venting emissions

  venting emissions means controlled emissions that occur due to the design of a facility, to procedures used in the manufacture or processing of a substance or product or to pressure exceeding the capacity of the equipment at the facility. (émissions d’évacuation)

  waste emissions

  waste emissions means emissions that result from waste disposal at a facility, including the landfilling of solid waste, the biological treatment or incineration of waste and the flaring of landfill gas. Waste emissions do not include emissions from the combustion of tires or asphalt shingles, whether in whole or in part, to produce useful heat or on-site transportation emissions. (émissions des déchets)

  wastewater emissions

  wastewater emissions means emissions resulting from industrial wastewater and industrial wastewater treatment at a facility. (émissions des eaux usées)

  WCI Method

  WCI Method[Repealed, SOR/2023-240, s. 2]

  white cement

  white cement means a mix composed primarily of clinker that contains 0.5% or less by weight of ferric oxide, gypsum and limestone. (ciment blanc)

• Marginal note:Incorporation by reference

  (2) 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.

• Marginal note:Accreditation

  (3) 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.

• Marginal note:Quantification Methods

  (4) 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.