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

Regulations are current to 2022-07-25 and last amended on 2022-05-20. Previous Versions

Quantification (continued)

Quantification of GHGs (continued)

Marginal note:Hybrid configuration

 For the purposes of section 20, if a combustion engine unit and a boiler unit share the same steam turbine, the GHGs from those units are quantified as follows:

  • (a) with respect to a combustion engine unit, the quantification provisions apply to the assembly comprised of combustion engines and any other equipment connected to them, including the steam turbine that it shares with the boiler unit; and

  • (b) with respect to a boiler unit, the quantification provisions apply to the assembly comprised of boilers and any other equipment connected to them, including the steam turbine that it shares with the combustion engine unit.

Marginal note:Biomass — exclusion of CO2

  •  (1) CO2 from biomass is not included in the quantity of CO2 calculated in accordance with subsections 17(2) to (4) or 20(2) to (5).

  • Marginal note:Methane

    (2) CH4 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 CH4 calculated in accordance with subsections 17(2) to (4).

Marginal note:De minimis

  •  (1) 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 CO2e tonnes, does not exceed 0.5% of the total quantity of GHGs determined under subsection 17(1) or 20(1).

  • Marginal note:Limit

    (2) 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).

 [Repealed, SOR/2021-197, s. 10]

Marginal note:Continuous Emissions Monitoring System

 For the purposes of the GHGRP, if a CEMS is used to quantify GHGs, the person responsible for the covered facility must ensure that the system complies with the requirements of the Reference Method for Source Testing: Quantification of Carbon Dioxide Releases by Continuous Emission Monitoring Systems from Thermal Power Generation, published by the Department of the Environment in June 2012.

Permit To Use an Alternative Method

Marginal note:Alternative method

 Despite sections 17 and 20, the person responsible for a covered facility may use a method other than a method or guideline required under those sections if they have a permit issued in accordance with section 28.

Marginal note:Application for permit

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

  • Marginal note:Certification

    (2) 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.

Marginal note:Conditions of issuance

  •  (1) The Minister must issue the permit to use a quantification method other than one prescribed in these Regulations if

    • (a) the person responsible for the covered facility establishes that, at the time of the application, it is not technically or economically feasible to use the prescribed method or guideline;

    • (b) the person responsible for the covered facility demonstrates that the quantification method being proposed is at least as rigorous as the prescribed method or guideline and provides equivalent results to those that would have been obtained from the prescribed method or guideline;

    • (c) the person responsible for the covered facility provides a plan describing measures that will be taken to enable the use of the prescribed method or guideline and the implementation period for that plan, up to a maximum of two years; and

    • (d) the requested term of the permit does not exceed the period for which the permit is necessary.

  • Marginal note:Period of validity

    (2) The term of the permit must not exceed 24 months.

  • Marginal note:Grounds for refusing permit

    (3) 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.

  • Marginal note:Renewal

    (4) The permit can only be renewed once.

Marginal note:Application for renewal

  •  (1) 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.

  • Marginal note:Conditions for renewal

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

Marginal note:Grounds for revocation

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

  • Marginal note:Notice of revocation

    (2) Before revoking a permit, the Minister must provide the permit holder with

    • (a) written reasons for the revocation; and

    • (b) an opportunity to make written representations in respect of the revocation.

  • Marginal note:Date of revocation

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

Quantification of Production for Specified Industrial Activities

Marginal note:General rule

  •  (1) 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

    • (a) in the case of production from a specified industrial activity set out in items 1 to 37, column 1, of Schedule 1, in the units of measurement set out in column 2 of Schedule 1 for that industrial activity, and in accordance with any requirements set out in the applicable part of Schedule 3;

    • (b) in the case of production from a specified industrial activity set out in paragraphs 38(a) to (c), column 1, of Schedule 1, the production is

      • (i) quantified in whole for the compliance period in accordance with the requirements set out in sections 6 and 7 of Part 38 of Schedule 3, or

      • (ii) not quantified, in whole or in part, for the compliance period; and

    • (c) in the case of production from a specified industrial activity not set out in column 1 of Schedule 1, in the units of measurement provided in the request under subsection 172(1) of the Act.

  • Marginal note:Measuring device

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

    • (a) installed, operated, maintained and calibrated in accordance with the manufacturer’s specifications or any applicable generally recognized national or international industry standard; and

    • (b) maintained to be accurate within ± 5%.

  • Marginal note:Engineering estimates or mass balance

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

  • Marginal note:Transitional provision

    (4) For the 2019 calendar year

    • (a) the production quantified in accordance with paragraphs (1)(a) and (c), must be accurate within ± 5%; and

    • (b) the production referred to in paragraph (1)(b) may be quantified by the person responsible for the regulated facility in accordance with subsection 9(2) and section 103 of the Greenhouse Gas Emissions Information Production Order, as it read before August 1, 2019.

Marginal note:Electricity generation facility

  •  (1) 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:

    • (a) if a unit uses only one fossil fuel to generate electricity, in accordance with subsection 4(1) and section 5 of Part 38 of Schedule 3; and

    • (b) if a unit uses a mixture of fossil fuels or a mixture of biomass and fossil fuels to generate electricity, in accordance with subsections 4(2) and (3) and section 5 of Part 38 of Schedule 3.

  • Marginal note:Choose not to quantify

    (2) 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.

 [Repealed, SOR/2021-197, s. 11]

Ratio of Heat

Marginal note:Ratio of heat

  •  (1) The ratio of heat from the combustion of fossil fuels during a compliance period is

    • (a) equal to 1 when the thermal energy is produced from the combustion of only fossil fuels;

    • (b) for a covered facility not specified in paragraph (c), determined by the following formula when the thermal energy is produced from the combustion of both fossil fuels and biomass:

      HF/(HF + B)

      where

      HF
      is determined by the formula
      The summation of the products of QFi and HHVi for each fossil fuel type “i”

      where

      QFi
      is the quantity of fossil fuel of type “i” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 7(2) of Part 38 of Schedule 3,
      HHVi
      is the higher heating value of the fossil fuel of type “i” combusted in the facility during the compliance period for the generation of thermal energy in accordance with sections 2.C.1 and 2.C.3 of the GHGRP, and
      i
      is the ith fossil fuel type combusted in the facility during the compliance period, where “i” goes from 1 to n and where n is the number of types of fossil fuels combusted, and
      B
      is determined by the formula
      The summation of the products of QBBk and HHVk for each biomass fuel type “k”

      where

      QBBk
      is the quantity of biomass fuel type “k” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 7(2) of Part 38 of Schedule 3 and the WCI Method WCI.214,
      HHVk
      is the higher heating value for biomass fuel type “k” combusted in the facility during the compliance period for the generation of thermal energy in accordance with sections 2.C.1 and 2.C.3 of the GHGRP and the WCI Method WCI.214, and
      k
      is the kth biomass fuel type combusted in the facility during the compliance period, where “k” goes from 1 to m and where m is the number of types of biomass fuels combusted; and
    • (c) for an electricity generation facility, determined by the following formula when the thermal energy is produced from the combustion of both fossil fuels and biomass:

      HF/(HF + B)

      where

      HF
      is determined by the formula
      The summation of the products of QFi and HHVi for each fossil fuel type “i”

      where

      QFi
      is the quantity of fossil fuel of type “i” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 4(3) of Part 38 of Schedule 3,
      HHVi
      is the higher heating value of the fossil fuel of type “i” combusted in the facility during the compliance period for the generation of thermal energy determined in accordance with subsection 24(1) of the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, and
      i
      is the ith fossil fuel type combusted in the facility during the compliance period, where “i” goes from 1 to n and where n is the number of types of fossil fuel combusted, and
      B
      is determined by the formula
      The summation of the products of QBBk and HHVk for each biomass fuel type “k”

      where

      QBBk
      is the quantity of biomass fuel type “k” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 4(3) of Part 38 of Schedule 3,
      HHVk
      is the higher heating value for biomass fuel type “k” combusted in the facility during the compliance period for the generation of thermal energy determined in accordance with subsection 24(1) of the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, and
      k
      is the kth biomass fuel type combusted in the facility during the compliance period, where “k” goes from 1 to m and where m is the number of types of biomass fuels combusted.
  • Marginal note:Default ratio of heat

    (2) 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.

Emission of GHGs

Marginal note:Calculation

  •  (1) 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 CO2e tonnes, during the compliance period,
    • (a) in the case of a facility referred to in paragraph 11(1)(a), determined in accordance with section 17,

    • (b) 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

    • (c) 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 CO2 captured at the covered facility that is stored during the compliance period in a storage project, determined using the quantification method described in section 1 of the GHGRP, expressed in CO2e tonnes.
  • Marginal note:CO2 — quantity that may be subtracted

    (2) For the purposes of the description of B in subsection (1), the quantity of CO2 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:

    • (a) the geological site into which the CO2 is injected is

      • (i) a deep saline aquifer for the sole purpose of storage of CO2, or

      • (ii) a depleted oil reservoir for the purpose of enhanced oil recovery; and

    • (b) the quantity of CO2 stored for the purposes of the project is captured, transported and stored in accordance with the laws applicable to Canada or a province or applicable to the United States or one of its states.

  • Marginal note:Biomass

    (3) The quantity of CO2 from biomass is not included in the amount determined for B in subsection (1).

  • Marginal note:Deemed emission of CO2

    (4) For greater certainty, the quantity of CO2 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).

 
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