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

Marginal note:Additional generation of electricity

18 For the purposes of section 17, the quantities of the GHGs for specified emission types from the generation of electricity using fossil fuels by a covered facility — other than a covered facility referred to in paragraph 11(1)(c) — are determined in accordance with the methods that are applicable to any of the industrial activities engaged in at the covered facility.

19 [Repealed, SOR/2023-240, s. 13]

Marginal note:Total emissions per unit — electricity

• 20 (1) Subject to subsection (6), with respect to an electricity generation facility, the total quantity of GHGs from each unit within a facility, during a compliance period, expressed in CO₂e tonnes, is determined by the formula

  

  where

  E_j

  is the quantity of each GHG type “j” from the unit during a compliance period for each specified emission type determined in accordance with subsections (2) to (5);

  GWP_j

  is the global warming potential of the GHG type “j” applicable to the compliance period;

  i

  is the i^th specified emission type, where “i” goes from 1 to n and where n is the unit’s number of specified emission types;

  j

  is the j^th GHG type, where “j” goes from 1 to m and where m is the number of greenhouse gases.

• Marginal note:Quantity of each GHG

  (2) The quantity of a GHG type “j” generated by a unit during a compliance period for a specified emission type “i” is the sum of the following quantities, determined in accordance with the applicable requirements set out in Quantification Methods:

  • (a) the quantities of the GHG that is set out in column 2 of the table to Part 38 of Schedule 3 for a specified emission type set out in column 1; and

  • (b) any quantity of the GHG that is not referred to in paragraph (a).

• Marginal note:Apportioning GHGs

  (3) For the purposes of paragraph (2)(b) or (c), if the GHGs for a specified emission type referred to in subsection (2) can only be quantified for the facility as a whole, the quantity of those GHGs must be apportioned to the facility’s units on the basis of each unit’s total generation of electricity relative to the facility’s total generation of electricity.

• Marginal note:Sampling, analysis and measurement requirements

  (4) If the quantity of a GHG is determined in accordance with subsection (2), the sampling, analysis and measurement requirements that apply are those set out in Quantification Methods.

• Marginal note:Missing data

  (5) For the purposes of subsection (2), if, for any reason beyond the control of the person responsible for a covered facility, the data required to quantify GHGs generated by a unit are missing for a given period of a compliance period, replacement data for the given period must be calculated in accordance with Quantification Methods.

• Marginal note:Biomass — exclusion of CH₄ and N₂O

  (6) For the purposes of the determination made under subsection (1), the quantity of CH₄ and N₂O generated from stationary devices that combust biomass for the purpose of producing useful heat are subtracted from the quantity of CH₄ and N₂O calculated in accordance with subsections (2) to (5) for stationary fuel combustion emissions.

Marginal note:Hybrid configuration

21 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

• 22 (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:Measuring device

22.1 Unless otherwise provided for in a method set out in Quantification Methods, any measuring device that is used to determine a quantity for the purposes of these Regulations must

• (a) be installed, operated, maintained and calibrated in accordance with the manufacturer’s specifications, or, if those specifications are not available, with any applicable generally recognized national or international industry standard; and

• (b) maintain accuracy within plus or minus 5%.

Marginal note:De minimis

• 23 (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).

24 [Repealed, SOR/2021-197, s. 10]

Marginal note:Continuous Emissions Monitoring System

25 If a continuous emissions monitoring system is used to quantify GHGs under these Regulations, the person responsible for the covered facility must ensure that the system complies with the requirements set out in Quantification Methods.

Permit To Use an Alternative Method

Marginal note:Alternative method

26 Despite sections 17 and 20, the person responsible for a covered facility may use a method other than a method set out in Quantification Methods if they have a permit issued in accordance with section 28.

Marginal note:Application for permit

• 27 (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

• 28 (1) The Minister must issue the permit to use a method of quantification other than the method set out in Quantification Methods 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 method set out in Quantification Methods;

  • (b) the person responsible for the covered facility demonstrates that the method being proposed is at least as rigorous as the requirements set out in Quantification Methods and provides equivalent results to those that would have been obtained from those requirements;

  • (c) the person responsible for the covered facility provides a plan describing measures that will be taken to enable the use of the method set out in Quantification Methods 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

• 29 (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

• 30 (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

• 31 (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 and 39 to 44, 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 3 and 4 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 an additional industrial activity, in the units of measurement specified by the Minister for that activity.

• Marginal note:Measuring device

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

  • (a) be installed, operated, maintained and calibrated in accordance with the manufacturer’s specifications or, if those specifications are not available, any applicable generally recognized national or international industry standard; and

  • (b) maintain accuracy within plus or minus 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.