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

Regulations are current to 2020-11-02 and last amended on 2020-05-31. Previous Versions

Output-Based Pricing System Regulations

SOR/2019-266

ENVIRONMENTAL VIOLATIONS ADMINISTRATIVE MONETARY PENALTIES ACT

GREENHOUSE GAS POLLUTION PRICING ACT

Registration 2019-06-28

Output-Based Pricing System Regulations

P.C. 2019-974 2019-06-27

Her Excellency the Governor General in Council, on the recommendation of the Minister of the Environment, makes the annexed Output-Based Pricing System Regulations pursuant to

Interpretation

Marginal note:Definition of facility

  •  (1) 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 an industrial activity:

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

      • (ii) any other sites used in conjunction with the 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) 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 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 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 an industrial activity is carried out are not included for the purposes of the definition of facility; 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:Definitions

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

    Act

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

    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 means the directive entitled Directive 017: Measurement Requirements for Oil and Gas Operations, published by the Alberta Energy Regulator on December 13, 2018. (directive 017)

    Directive PNG017

    Directive PNG017 means the directive entitled Directive PNG017: Measurement Requirements for Oil and Gas Operations, published by the Government of Saskatchewan on August 1, 2017. (directive PNG017)

    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 referred to in paragraph 5(2)(c), that generates electricity as its primary industrial activity, that is used to generate electricity from fossil fuels and that is 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 means the document entitled Greenhouse Gas Reporting Program, Canada’s Greenhouse Gas Quantification Requirements, published by the Department of the Environment in 2017. (méthode d’ECCC)

    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 means the guidelines entitled 2006 IPCC Guidelines for National Greenhouse Gas Inventories, published by the Institute for Global Environmental Strategies in 2006. (lignes directrices du GIEC)

    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)

    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 specified in paragraph 5(2)(a), subparagraphs 5(2)(b)(i) or (ii), or paragraph 5(c), as the case may be. (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)

    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 means the document entitled Final Essential Requirements of Mandatory Reporting, published on December 17, 2010 by the Western Climate Initiative. (méthode de la WCI)

    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, except the ISO Standard 14065 and the GHGRP, is incorporated as amended from time to time.

 
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