Output-Based Pricing System Regulations

Contents

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(a) sections 192, 193, 198 and 256 of the Greenhouse Gas Pollution Pricing Act; and(b) section 5 of the Environmental Violations Administrative Monetary Penalties Act.^note^note^note

Interpretation

1Definition of facility#

(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.

(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.

(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.

(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.

(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.

(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.

^note

2Definitions#

(1)The following definitions apply in these Regulations.

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

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

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 [Repealed, SOR/2023-240, s. 2]

Directive PNG017 [Repealed, SOR/2023-240, s. 2]

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

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

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

GHG means greenhouse gas. (version anglaise seulement)

GHGRP [Repealed, SOR/2023-240, s. 2]

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

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

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

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 [Repealed, SOR/2023-240, s. 2]

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

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 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 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 individuals. (émissions liées au transport sur le site)

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

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

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

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

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

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

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)

(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.

(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.

(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.

Purpose

3Purpose#

These Regulations implement an output-based pricing system for industrial GHG emissions with respect to covered facilities where industrial activities are engaged in.

Overview

4System components#

These Regulations set out

(a)the manner in which a person responsible for a covered facility must, under Part 2 of the Act, provide a report that sets out the information with respect to the GHG emissions limit and cause the report to be verified;

(b)the methods to quantify the GHGs from a covered facility and the production from each specified industrial activity engaged in at the covered facility;

(c)the manner of determining the covered facility’s GHG emissions limit based on the facility’s production from each specified industrial activity and the applicable output-based standard; and

(d)the manner in which compensation is provided for excess emissions and surplus credits are issued.

Application

5Quantification of GHGs#

(1)Subject to section 22, GHGs must be quantified for the following emission types:

(a)stationary fuel combustion emissions;

(b)industrial process emissions;

(c)industrial product use emissions;

(d)venting emissions;

(e)flaring emissions;

(f)leakage emissions;

(g)on-site transportation emissions;

(h)waste emissions; and

(i)wastewater emissions.

(2)Output-based standards are established under these Regulations for the industrial activities set out in column 1 of Schedule 1 and for additional industrial activities engaged in at the covered facility.

^note

End of designation

6Condition not met#

(1)If a covered facility was designated on the condition that it would emit a quantity of GHGs of at least 10 kt of CO₂e in any of the three calendar years following the date of first production, the Minister may cancel the designation under subsection 172(3) of the Act if the facility has not met that condition as of December 31 of the third calendar year following that date.

(2)The Minister must provide notice of their intention to cancel the covered facility’s designation to the person responsible for the covered facility at least 30 days before cancelling the designation.

^note

6.1Cancellation following request#

If the Minister receives a request to cancel a designation of a covered facility during a calendar year and the Minister decides, under subsection 172(3) of the Act, to cancel the designation, that cancellation is effective as of December 31 of the calendar year in which the decision is made.^note

7Ceasing to be a covered facility#

(1)A facility ceases to be a covered facility under the following circumstances:

(a)it has ceased production from all specified industrial activities for five consecutive compliance periods; or

(b)the person responsible for the covered facility makes a request to that effect because it is expected that the specified industrial activities engaged in at the covered facility will cease for at least 12 consecutive months.

(2)A covered facility ceases to be a covered facility on the following date:

(a)for the purposes of paragraph (1)(a), on December 31 of the fifth consecutive calendar year for which no production is reported in an annual report; and

(b)for the purposes of paragraph (1)(b), on the later of

(i)the 30th day following the date the Minister receives the request from the person responsible for the covered facility, or

(ii)the date the covered facility ceases production.

(3)[Repealed, SOR/2021-197, s. 3] (repealed)

^note

7.1Requirement for partial compliance period#

Subject to section 7.2, if a facility ceases to be a covered facility during a compliance period, the person who is responsible for that facility must comply with these Regulations and the requirements of Division 1 of Part 2 of the Act in respect of the portion of that compliance period during which it was a covered facility.^note

7.2Exception#

Section 7.1 does not apply in respect of a facility that ceases to be a covered facility because the Minister cancelled its designation in 2025 under subsection 172(3) of the Act.^note

Covered Facility

8Criteria — definition section 169 of Act#

For the purposes of paragraph (a) of the definition covered facility in section 169 of the Act, the following criteria must be met by a facility that is located in a province or area that is set out in Part 2 of Schedule 1 to the Act:

(a)a report was made, in accordance with a Notice with respect to reporting of greenhouse gases (GHGs) published under section 46 of the Canadian Environmental Protection Act, 1999, in respect of that facility indicating that that facility emitted a quantity of GHGs equal to 50kt or more of CO₂e, as one or more facilities as defined in such a notice, for the 2014 calendar year or any subsequent calendar year; and

(b)the primary activity engaged in at the facility is any of the industrial activities set out in column 1 of Schedule 1.

^note

8.1Remote community#

Unless designated by the Minister as a covered facility under subsection 172(1) of the Act, an electricity generation facility is not included in the definition covered facility in section 169 of the Act if the industrial activity set out in paragraph 38(b) or (c), column 1, of Schedule 1 is engaged in at that facility and that facility

(a)generates electricity for general distribution to the public in a geographic area that is neither serviced by an electrical network that distributes electricity and is subject to the standards of the North American Electric Reliability Corporation nor by a distribution system,

(b)is not connected to an electrical network, for the distribution of electricity, that is subject to the standards of the North American Electric Reliability Corporation, and

(c)is not connected to a distribution system.

^note

Compliance Period

9Compliance period#

(1)Subject to subsections (2) and (3), the specified period, for the purposes of the definition compliance period in section 169 of the Act, begins on January 1 and ends on December 31 for each calendar year, starting in 2019.

(2)If a facility becomes a covered facility under the Act after January 1 of a given calendar year, its specified period, for the purposes of the definition compliance period in section 169 of the Act, begins on January 1 of the calendar year following

(a)the calendar year during which the facility is registered under subsection 171(2) of the Act, if the facility meets the criteria set out in section 8, or

(b)the calendar year during which the facility was designated as a covered facility under subsection 172(1) of the Act.

(3)For the 2025 calendar year, if a facility ceases to be a covered facility because the Minister cancels its designation in 2025 under subsection 172(3) of the Act, the specified period in respect of that facility, for the purposes of the definition compliance period in section 169 of the Act, begins on January 1, 2025 and ends on March 31, 2025.

^note

Person Responsible

10Person responsible#

For the purposes of these Regulations, the person responsible for a facility or a covered facility is the person who owns or is otherwise responsible for the facility or covered facility, including the person who has the charge, management or control of the facility or covered facility, or who is the true decision maker with respect to the operations of the facility or covered facility.

10.1Conclusive presumption#

(1)If a facility ceases to be a covered facility, the person responsible for that facility is deemed to be responsible for a covered facility with respect to

(a)the requirements set out in section 173 of the Act;

(b)the requirements set out in section 174 of the Act with respect to providing compensation;

(c)the requirement under subsection 176(1) of the Act to notify the Minister of any errors or omissions;

(d)the requirement under subsection 176(2) or 177(2) of the Act to submit any corrected report under section 62 or 63, respectively;

(e)the requirement under paragraph 178(1)(a) of the Act to provide any compensation;

(f)the requirements set out in section 181 of the Act;

(g)the requirement to maintain the OBPS account referred to in section 14;

(h)the requirement under subsection 187(5) of the Act to retain the information set out in section 47; and

(i)the requirement to notify the Minister if there is a change in the person responsible, in accordance with section 48.

(2)The requirements set out in paragraphs (1)(a) to (g) apply during the period necessary under the Act and the requirements set out in paragraphs (1)(h) and (i) apply during a period of seven years after the end of the year in which the facility ceased to be a covered facility.

(3)If a facility ceases to be a covered facility, the person responsible for that facility is deemed to be responsible for a covered facility for the purpose of obtaining surplus credits under section 175 of the Act and paragraph 178(1)(b) of the Act.

^note

Annual Report

11Content of annual report#

(1)Subject to subsection (2) and section 16, the report that must be submitted by the person responsible for a covered facility for a compliance period under section 173 of the Act is prepared annually for each covered facility for which they are responsible and includes the information listed in Schedule 2 and the following information:

(a)in respect of a covered facility, other than one referred to in paragraph (b) or (c),

(i)the total quantity of GHGs from the covered facility during the compliance period, expressed in CO₂e tonnes, as determined in accordance with section 17, and

(ii)the covered facility’s production during the compliance period, from each specified industrial activity, quantified in accordance with section 31;

(b)in respect of an electricity generation facility,

(i)the total quantity of GHGs from each unit within the covered facility during the compliance period, expressed in CO₂e tonnes, as determined in accordance with section 20,

(ii)the sum of the total quantities of GHGs determined under subparagraph (i) for all units within the facility, expressed in CO₂e tonnes,

(iii)the production during the compliance period by each unit within the covered facility from each of the industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at the unit, separately for each industrial activity, quantified in accordance with section 32, and

(iv)the sum of the production from all of the units within the covered facility during the compliance period, from all of the industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1;

(c)in respect of a covered facility, where the specified industrial activities are both the production of coal by mining coal deposits and, if composed of a unit or a group of units that are registered under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, the generation of electricity,

(i)the total quantity of GHGs from the covered facility during the compliance period, which is the sum of the total quantity of GHGs from the mining of coal deposits, determined in accordance with section 17, and the total quantities of GHGs from the generation of electricity, determined in accordance with section 20, expressed in CO₂e tonnes,

(ii)with respect to the production of coal by mining coal deposits, the production during the compliance period from each specified industrial activity, in accordance with section 31, and

(iii)with respect to the generation of electricity,

(A)the production during the compliance period by each unit within the covered facility from each of the industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at the unit, separately for each industrial activity, in accordance with section 32, and

(B)the sum of the production from all of the units within the covered facility during the compliance period, from all of the industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1;

(d)the quantity of GHGs emitted from the covered facility during the compliance period as determined in accordance with section 35, and, if captured and stored CO₂ is being subtracted under that section, the total quantity of CO₂ captured and stored in a storage project that meets the criteria in subsection 35(2);

(e)the GHG emissions limit applicable to the covered facility for the compliance period, calculated

(i)in respect of a facility referred to in paragraph (a), in accordance with section 36, 36.1 or 36.2,

(ii)in respect of a facility referred to in paragraph (b), in accordance with section 41, 41.1 or 41.2, and

(iii)in respect of a facility referred to in paragraph (c), in accordance with section 42; and

(f)the positive result (corresponding to the quantity of GHGs emitted in excess of the emissions limit) or negative result (corresponding to the difference between the quantity of GHGs emitted and the emissions limit and indicating emissions below the emissions limit) obtained under section 44 for the compliance period, expressed in CO₂e tonnes.

(1.1)For the purposes of subparagraph (1)(a)(ii), if section 36.2 applies with respect to a covered facility, the annual report must include the gross quantity of electricity generated that is attributed the capacity added to the equipment and gross quantity of electricity generated that is attributed to the capacity of the equipment before the additional capacity was added, separately, quantified in accordance with section 31 and subsection 36.2(3).

(1.2)For the purposes of subparagraphs 1(b)(iii) and (iv) and (c)(iii), if section 41.2 applies with respect to an electricity generation facility, the annual report must include,

(a)for each unit whose electricity generation capacity from gaseous fuels was increased by 50 MW or more and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period by each unit that is attributed to the capacity added to the unit and the gross amount of electricity generated that is attributed to the capacity of the unit before the additional capacity was added, in accordance with section 32 and subsection 41.2(3), separately; and

(b)the sum, from all of the units referred to in paragraph (a), of the gross amount of electricity generated that is attributed to the capacity added to the units and of the gross amount of electricity generated that is attributed to the capacity of the units before the additional capacity was added, separately.

(2)Paragraphs (1)(e) and (f) do not apply with respect to a report that must be submitted by the person responsible for a covered facility for which sections 36 to 42 do not apply under section 43.

(3)For the purposes of subparagraph (1)(a)(ii), an additional industrial activity that was recognized by the Minister during a calendar year is not taken into account for the annual report for the compliance period that corresponds to that calendar year.

^note

12Additional content – thermal energy#

(1)If the person responsible for a covered facility sells thermal energy that is produced at the covered facility to other covered facilities or buys thermal energy from any other covered facility, they must include in their annual report

(a)the quantity of thermal energy, expressed in gigajoules, as well as the thermal energy’s temperature and pressure,

(i)sold to another covered facility during the compliance period, as determined by the quantity of thermal energy on sales receipts or by another objective method, or

(ii)bought from another covered facility during the compliance period, as determined by the quantity of thermal energy on sales receipts or by another objective method; and

(b)the ratio of heat from the combustion of fossil fuel to produce that thermal energy, calculated in accordance with section 34.

(2)The person responsible for a covered facility where the specified industrial activity set out in item 10, column 1, of Schedule 1 is engaged in, must include in their annual report, the quantity, in tonnes, of each gypsum product that contains at least 70 weight percent of calcium sulphate dihydrate produced during the compliance period.

(3)If a covered facility where a specified industrial activity set out in items 2, 3, 15 or 29, column 1, of Schedule 1 is engaged in produces hydrogen gas, the person responsible for the covered facility must include in their annual report the quantity of hydrogen gas produced during the compliance period, in tonnes, and the quantity of hydrogen gas sold during the compliance period, in tonnes.

13Submission of annual report#

(1)The person responsible for a covered facility must submit their annual report to the Minister, on or before June 1 of the calendar year following the end of the compliance period for which the annual report is prepared, along with a verification report prepared in accordance with section 52.

(2)The person responsible for a covered facility must correct the errors or omissions, identified by a verification body during the verification of the annual report, prior to submitting the annual report to the Minister, if possible.

^note

14Account opening#

The account that the person responsible for the covered facility opens in accordance with subsection 186(1) of the Act is an Output-Based Pricing System account (OBPS account).

Request for Confidentiality

15Content of request#

A request for confidentiality submitted for the purposes of section 254 of the Act must provide the following information:

(a)the information to which the request pertains, clearly identified;

(b)the reason for the request from among those specified in paragraphs 254(a) to (c) of the Act; and

(c)the supporting justification that the information referred to in paragraph (a) has been treated as confidential by the person making the request and is not, and has never been, available to the public.

Quantification

Variation of General Rules

16Production of petrochemical products as a by-product#

(1)The production of a petrochemical product set out in item 17, column 1, of Schedule 1 as a by-product, at a covered facility where an industrial activity, other than one set out in that item is engaged in, is not an industrial activity covered by item 17, column 1, of Schedule 1.

(2)If natural gas liquids are produced at a covered facility where a specified industrial activity set out in item 3 or 17, column 1, of Schedule 1 is engaged in, the following rules apply:

(a)for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of natural gas liquids in accordance with the methods applicable to the industrial activity set out in item 3 or 17, as the case may be, column 1, of Schedule 1; and

(b)for the purposes of sections 31, 36 and 36.2, the industrial activity set out in item 4, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

(3)If hydrogen gas is produced at a covered facility where a specified industrial activity set out in item 2, 3, 15 or 29, column 1, of Schedule 1 is engaged in, the following rules apply:

(a)for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of hydrogen gas in accordance with the method applicable to the industrial activity set out in item 2, 3, 15 or 29, as the case may be, column 1, of Schedule 1; and

(b)for the purposes of sections 31, 36 and 36.2, the industrial activities set out in items 6 and 17, column 1, of Schedule 1 are deemed not to be engaged in at the covered facility.

(4)If metal tubes are produced at a covered facility where a specified industrial activity set out in item 19 or 20, column 1, of Schedule 1 is engaged in, the following rules apply:

(a)for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of metal tubes in accordance with the method applicable to the industrial activity set out in item 19 or 20, as the case may be, column 1, of Schedule 1; and

(b)for the purposes of sections 31, 36 and 36.2, the industrial activity set out in item 22, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

(5)If lime is produced at a covered facility where a specified industrial activity set out in item 20, column 1, of Schedule 1 is engaged in, the following rules apply:

(a)for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of lime in accordance with the method applicable to the industrial activity set out in item 20, column 1, of Schedule 1; and

(b)for the purposes of sections 36 and 36.2, the industrial activity set out in item 8, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

(6)If electricity is produced at a covered facility where a specified industrial activity set out in item 20, column 1, of Schedule 1 is engaged in, the following rules apply:

(a)for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the generation of electricity in accordance with the method applicable to the industrial activity set out in item 20, column 1, of Schedule 1; and

(b)for the purposes of section 36, the industrial activity set out in item 38, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

(6.1)If evaporated salt is produced through solution mining at a covered facility where a specified industrial activity set out in item 24, column 1, of Schedule 1 is engaged in, the following rules apply:

(a)for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of evaporated salt in accordance with the method applicable to the industrial activity set out in item 24, column 1, of Schedule 1; and

(b)for the purposes of sections 31, 36 and 36.2, the industrial activity set out in item 24.1, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

(7)If zinc and lead are pyrometallurgically smelted at a covered facility where a specified industrial activity set out in paragraph 23(b), column 1, of Schedule 1 is engaged in, the following rules apply:

(a)for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the pyrometallurgical smelting of zinc and lead in accordance with the method applicable to the industrial activity set out in paragraph 23(b), column 1, of Schedule 1; and

(b)for the purposes of sections 31, 36 and 36.2, the industrial activity set out in paragraph 23(c), column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

(7.1)If lead is pyrometallurgically smelted and refined at a covered facility where a specified industrial activity set out in paragraph 23(c), column 1, of Schedule 1 is engaged in, the following rules apply:

(a)for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the pyrometallurgical smelting and refining of lead in accordance with the method applicable to the industrial activity set out in paragraph 23(c), column 1, of Schedule 1; and

(b)for the purposes of sections 31, 36 and 36.2, the industrial activity set out in paragraph 23(b), column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

(8)If gold, silver, platinum or palladium is produced at a covered facility where a specified industrial activity set out in paragraph 26(d), column 1, of Schedule 1 is engaged in, the following rules apply:

(a)for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of those metals in accordance with the method applicable to the industrial activity set out in paragraph 26(d), column 1, of Schedule 1; and

(b)for the purposes of sections 31, 36 and 36.2, the industrial activity set out in paragraph 26(c) or (f), column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

(9)Subject to subsection (9.1), if a petrochemical product referred to in item 17, column 1, of Schedule 1 is produced at a covered facility where a specified industrial activity set out in item 3 or 4, column 1, of that Schedule is engaged in, the following rules apply:

(a)for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the production of that petrochemical in accordance with the method applicable to the industrial activity set out in item 3 or 4, as the case may be, column 1, of Schedule 1; and

(b)for the purposes of sections 31, 36 and 36.2, the industrial activity set out in item 17, column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

(9.1)If a covered facility has at least one refinery that is engaged in a specified industrial activity set out in item 3, column 1, of Schedule 1, and one petrochemical plant, that is engaged in a specified industrial activity referred to in item 17, column 1, of Schedule 1, subsection (9) only applies to the refinery.

(10)If silver, platinum or palladium is produced at a covered facility where a specified industrial activity set out in paragraph 26(f), column 1, of Schedule 1 is engaged in, the following rules apply:

(b)for the purposes of sections 31, 36 and 36.2, the industrial activity set out in paragraph 26(c), column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.

^note

Quantification of GHGs

17Total GHGs#

(1)Subject to subsection (5) and section 18, the total quantity of GHGs from a covered facility other than an electricity generation facility, during a compliance period, expressed in CO₂e tonnes, is determined by the formula

(2)The quantity of a GHG type “j” from a covered facility 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 that GHG from industrial activities set out in column 1 of Schedule 1 and set out in column 2 of the table to the Part of Schedule 3 that is applicable to those industrial activities, for a specified emission type set out in column 1 of that table;

(b)the quantities of that GHG from those industrial activities, but not set out in column 2 of the table to the Part of Schedule 3 that applies to those activities or for a specified emission type not set out in column 1 of that table; and

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

(3)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.

(4)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 the GHGs from a covered facility are missing for a given period of a compliance period, replacement data for the given period must be calculated in accordance with Quantification Methods.

(4.1)[Repealed, SOR/2023-240, s. 12] (repealed)

(5)For the purposes of the determination made under subsection (1), the quantities of CH₄ and N₂O generated from stationary devices that combust biomass for the purpose of producing useful heat are subtracted from the quantities of CH₄ and N₂O calculated in accordance with subsections (2) to (4) for stationary fuel combustion emissions.

^note

18Additional generation of electricity#

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.^note

19 #

[Repealed, SOR/2023-240, s. 13] (repealed)

20Total emissions per unit — electricity#

(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

(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).

(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.

(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.

(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.

(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.

^note

21Hybrid 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.

22Biomass — 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).

(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).

22.1Measuring device#

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%.

^note

23De 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).

(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] (repealed)

25Continuous Emissions Monitoring System#

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.^note

Permit To Use an Alternative Method

26Alternative method#

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.^note

27Application for permit#

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

(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.

28Conditions of issuance#

(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.

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

(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.

(4)The permit can only be renewed once.

^note

29Application 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.

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

30Grounds 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.

(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.

(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

31General 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 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.

(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%.

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

(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.

^note

32Electricity 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 1(1) and section 2 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 1(2) and (3) and section 2 of Part 38 of Schedule 3.

(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.

^note

33 #

[Repealed, SOR/2021-197, s. 11] (repealed)

Ratio of Heat

34Ratio 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 referred to in paragraph (c), determined by the following formula if the thermal energy is produced from the combustion of both fossil fuels and biomass:

(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:

(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.

^note

Emission of GHGs

35Calculation#

(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

(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.

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

(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).

^note

Emissions Limit

36General rule#

(1)Subject to subsection (2) and sections 16, 36.1, 36.2 and 42, the person responsible for a covered facility, other than an electricity generation facility, must determine the GHG emissions limit that applies to that covered facility for each compliance period, expressed in CO₂e tonnes, in accordance with the formula

(2)For the purposes of subsection (1), the person responsible for a covered facility must not include the specified industrial activity set out in paragraph 13(b), column 1, of Schedule 1 unless the covered facility also includes the specified industrial activity set out in paragraph 13(a), column 1. The covered facility is deemed to not be engaged in the specified industrial activity set out in item 32, column 1, of that Schedule.

(3)For the purposes of subsection (1), the person responsible for a covered facility where the specified industrial activity set out in item 31, column 1, of Schedule 1 is engaged in may, for the 2019 calendar year, quantify their production in finished oilseed products and use an output-based standard of 0.0431 CO₂e tonnes per unit of measurement of production, instead of the production metric set out in column 2 and the output-based standard set out in column 3.

(4)For greater certainty, if the industrial activity set out in paragraph 29(b), column 1, of Schedule 1 and also any of the industrial activities set out in paragraph 29(c), (d) or (e), column 1, of Schedule 1 are engaged in at the covered facility, the output-based standard applicable to the industrial activity set out in that paragraph 29(b) applies and the output-based standard applicable to the industrial activity set out in that paragraph 29(c), (d) or (e) applies, as the case may be.

(4.1)For the purposes of subsection (1), an additional industrial activity that was recognized by the Minister during a calendar year is not included in the determination of the GHG emissions limit for the compliance period that corresponds to that calendar year.

(5)For the purposes of subsection (1), if an output-based standard must be calculated, it is calculated once, except in the situation referred to in subsection 39.

^note

36.1New electricity production — gaseous fuel#

(1)Despite subsection 36(1), if a covered facility — other than one referred to in subsection 16(6) — begins generating electricity on or after January 1, 2021 and meets the following criteria, the person responsible for the covered facility must apply, for the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, the applicable output-based standard, in accordance with subsection (2), for each compliance period, as of the compliance period during which the covered facility began generating electricity:

(a)the electricity is generated from gaseous fuel by equipment that is designed to operate at a thermal energy to electricity ratio of less than 0.9; and

(b)the covered facility has an electricity generation capacity equal to or greater than 50 MW from that equipment.

(2)The output-based standard that applies to the industrial activity referred to in paragraph 38(c), column 1, of Schedule 1 is, as the case may be

36.2Increased capacity of electricity generation#

(1)Subject to subsections 16(1) to (5) and (7) to (10), if, on or after January 1, 2021, a covered facility — other than a covered facility referred to in subsection 16(6) — increases its electricity generation capacity from gaseous fuels by 50 MW or more and that increased capacity is from equipment that has a thermal energy to electricity ratio of less than 0.9 and that was added after that date or has had its capacity increased and, the person responsible for the covered facility must determine the covered facility’s GHG emissions limit for each compliance period, as of the compliance period during which the increase occurred, in accordance with subsection (2).

(2)The GHG emissions limit that applies to the covered facility for a compliance period, expressed in CO₂e tonnes, is determined in accordance with the formula

(3)For the purposes of the descriptions of G and H in subsection (2), the gross amount of electricity generated by the equipment referred to in those descriptions is apportioned, using engineering estimates, to the equipment’s capacity added to the equipment and to the capacity of the equipment before the additional capacity was added, based on the ratio of the amount of its increased capacity to its total capacity, taking into account the increased capacity.

(4)For the purposes of subsection (1), the electricity generation capacity of a facility increases by 50 MW or more for a calendar year as of the day on which its electricity generation capacity is 50 MW greater than its electricity generation capacity on December 31, 2020. For greater certainty, any increase in capacity is cumulative.

^note

36.3Presumption#

If the output-based standard set out in subsection 36.1(2) applies to a covered facility’s generation of electricity for a given compliance period, it continues to apply for all subsequent compliance periods even if

(a)for the purposes of section 36.1, the covered facility is not generating electricity from gaseous fuel or the equipment in question has a thermal energy to electricity ratio that is equal to or greater than 0.9; or

(b)for the purposes of section 36.2, the equipment in question is not generating electricity from gaseous fuel or has a thermal energy to electricity ratio that is equal to or greater than 0.9.

37Calculated output-based standard#

(1)Subject to subsection (3) and sections 38 and 39, the output-based standard that is applicable to a specified industrial activity of a covered facility, for which an output-based standard must be calculated in accordance with this section, is calculated in accordance with the formula

(2)Subject to paragraph (2.1)(a), the reference years applicable to the specified industrial activities that are engaged in at a covered facility for which an emissions limit is calculated for a compliance period are

(a)except for a covered facility referred to in paragraph (b),

(i)the 2017, 2018 and 2019 calendar years, if the data are available for those years,

(ii)the three calendar years preceding the compliance period, if the data are not available for the 2017, 2018, and 2019 calendar years, or

(iii)the compliance period, if the data are not available for the years specified in subparagraphs (i) and (ii); and

(b)for a covered facility for which an emissions limit is being calculated for the first time but for which the person responsible has submitted an annual report under these Regulations for a previous compliance period without including the information referred to in paragraphs 11(1)(e) and (f) in accordance with subsection 11(2), either

(i)the two calendar years preceding the compliance period for which the emissions limit is calculated, if the data are available for those years,

(ii)the calendar year preceding the compliance period for which the emissions limit is calculated, if the data are not available for the two calendar years referred to in (i), or

(iii)the compliance period for which the emissions limit is being calculated, if that data are not available for those preceding calendar years.

(2.1)For the purposes of subsection (1), if the calculation of the emissions limit for a compliance period takes into account a specified industrial activity that began to be engaged in at the covered facility during that compliance period and for which an output-based standard has not previously been calculated under this section

(a)the applicable reference years with respect to that specified industrial activity are that compliance period and the two calendar years following it; and

(b)the determination of the output-based standard for that specified industrial activity is to be made based on projections, made using engineering estimates, for the applicable reference years.

(2.2)For the purposes of the descriptions of C, F and G in subsection (1), the method used to attribute the quantity of GHGs to an activity must be rigourous, objective and based on sound engineering principles. The same method must be used for each reference year and no quantity of GHGs may be attributed to more than one activity.

(3)For the purposes of subsection (1), if an output-based standard must be calculated with respect to a covered facility for more than one specified industrial activity, the allocation for net thermal energy can only be deducted from one of those calculations.

(4)The result from the calculation under subsection (1) is rounded to three significant figures.

^note

38Exception — steel#

(1)For the purposes of the description of C in subsection 37(1), if the specified industrial activity for which the output-based standard is being calculated is the industrial activity set out in paragraph 20(d), column 1, of Schedule 1 and the covered facility is also engaged in the generation of electricity, the quantity of GHGs from the generation of electricity attributable to the industrial activity set out in that item are not included in the total quantity of GHGs determined for C.

(2)For greater certainty, the quantity of GHGs from the generation of electricity attributable to the specified industrial activities set out in paragraphs 20(a) to (c), column 1, of Schedule 1 are included in the total quantity of emissions determined for C.

39Recalculation of output-based standard#

If an output-based standard applicable to a specified industrial activity was calculated in accordance with subsection 37(2.1) for a compliance period, it must be recalculated in accordance with subsection 37(1) for the third compliance period following the compliance period for which the original calculation was done. The reference years that must be used for the recalculation are the three calendar years that precede that third compliance period.^note

40 #

[Repealed, SOR/2023-240, s. 27] (repealed)

41Electricity#

(1)Subject to subsection (2) and sections 41.1 and 41.2, the person responsible for an electricity generation facility must determine the GHG emissions limit that applies to the electricity generation facility for each compliance period, expressed in CO₂e tonnes, in accordance with the formula

(2)The output-based standard applicable to the industrial activity set out in paragraph 38(a), column 1, of Schedule 1 applies to a boiler unit if it generates electricity using liquid or gaseous fuel and it

(a)is registered under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, or it was at any given time in 2018; and

(b)used solid fuel to generate electricity in 2018.

^note

41.1New electricity production facility — gaseous fuel#

(1)If an electricity generation facility begins generating electricity on or after January 1, 2021 and meets the following criteria, the person responsible for the covered facility must determine the GHG emissions limit that applies to the facility for each compliance period as of the compliance period during which the electricity generation began, in accordance with subsection (2):

(a)at least one unit within the facility generates electricity from gaseous fuels; and

(b)at least one of the units that generates electricity from gaseous fuels within the facility has an electricity generation capacity equal to or greater than 50 MW and is designed to operate at a thermal energy to electricity ratio of less than 0.9.

(2)The GHG emissions limit that applies to the electricity generation facility, expressed in CO₂e tonnes, is determined for each compliance period in accordance with the formula

^note

41.2Increased capacity of electricity generation#

(1)If, on or after January 1, 2021, an electricity generation facility’s electricity generation capacity from gaseous fuels increases by 50 MW or more and that increased capacity is from a unit designed to operate at a thermal energy to electricity ratio of less than 0.9, the person responsible for the covered facility must determine the GHG emissions limit that applies to the facility for each compliance period, as of the compliance period during which the increase occurred, in accordance with subsection (2).

(2)The GHG emissions limit that applies to the electricity generation facility, expressed in CO₂e tonnes, is determined for each compliance period in accordance with the formula

(3)For the purposes of the descriptions of E and F in subsection (2), the gross amount of electricity generated by a unit referred to those descriptions is apportioned, using engineering estimates, to the capacity added to the unit and to the capacity of the unit before the additional capacity was added, based on the ratio of its increased capacity to its total capacity, taking into account the increased capacity.

(4)For the purposes of subsection (1), the electricity generation capacity, from gaseous fuels, of an electricity generation facility increases by 50 MW or more for a calendar year as of the day on which its electricity generation capacity is 50 MW greater than its electricity generation capacity on December 31, 2020. For greater certainty, any increase in a unit’s capacity is cumulative.

^note

41.3Presumption#

For the purposes of sections 41.1 and 41.2, if the output-based standard set out in subsection 41.1(2) applies to a unit or group of units for a compliance period for the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, that output-based standard will continue to apply to the unit or group of units even if the unit or group of units is not producing electricity from gaseous fuel or has a thermal energy to electricity ratio that is equal to or greater than 0.9.

42Coal and electricity#

The person responsible for a covered facility where the specified industrial activities engaged in are both the production of coal by mining coal deposits and the generation of electricity and that is comprised of a unit or a group of units that are registered under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations must calculate the GHG emissions limit that applies to the covered facility for each compliance period by adding the emissions limit obtained in subsection 36(1) for that compliance period for the specified industrial activity set out in item 25, column 1, of Schedule 1 and the emissions limit determined under section 41 or 41.2 for that compliance period for the specified industrial activities set out in paragraphs 38(a) to (c), column 1, of that Schedule, expressed in CO₂e tonnes.

43New covered facilities#

(1)If, on January 1 of a compliance period, a covered facility has not completed two calendar years of production following the date of first production, sections 36 to 42 do not apply to the covered facility for that compliance period.

(2)Subsection (1) only applies to a covered facility whose primary activity is a specified industrial activity.

(3)Subsection (1) does not apply to an electricity generation facility that begins generating electricity on or after January 1, 2021.

(4)For the purposes of subsection (1), to determine the date of first production for a covered facility all industrial activities that the facility has previously been or is currently engaged in must be taken into account.

Assessment

44Assessment of emissions against emissions limit#

(1)The person responsible for a covered facility must assess for each compliance period the quantity of GHGs that are emitted from the covered facility during the applicable compliance period against its applicable GHG emissions limit in accordance with the formula

(1.1)The result of the assessment in subsection (1) is to be rounded to the nearest whole number or, if the number is equidistant between two whole consecutive numbers, to the higher number.

(2)If, on January 1 during a compliance period, the covered facility has not completed two calendar years of production following the date of first production, subsection (1) does not apply to the covered facility for that compliance period.

(3)Subsection (2) only applies to a covered facility whose primary activity is a specified industrial activity.

(4)Subsection (2) does not apply to an electricity production facility that begins generating electricity on or after January 1, 2021.

(5)For the purposes of subsection (2), to determine the date of first production for a covered facility all industrial activities that the facility has previously been or is currently engaged in must be taken into account.

^note

Records

45Content#

(1)The person responsible for a covered facility must keep a record of the following information with respect to the covered facility and each unit within it, if applicable, for each compliance period

(a)the total quantity of GHGs from each specified emission type;

(b)the quantity of each GHG from each specified emission type;

(c)all data used for a calculation made under these Regulations, for each specified emission type and GHG, including data used to estimate missing data;

(d)all sampling, analysis and measurement data for each specified emission type and GHG;

(e)the methods used to quantify, sample, analyze and measure each specified emission type;

(f)the methods and data used to quantify production;

(g)the procedural changes made in data collection and calculations and changes to measuring devices used to quantify GHGs or production;

(h)the quantity of each GHG not included in the total quantity of GHGs under section 23 and the relevant specified emission type;

(i)the quantities of CO₂ captured, transported or stored expressed in tonnes and the data used to quantify that CO₂;

(j)the output-based standard calculated under section 37 for each specified industrial activity and all methods and data used to calculate that output-based standard;

(k)documents that demonstrate the maintenance, calibration and operation of measuring devices was done in accordance with these Regulations;

(l)if the person responsible for a covered facility sells thermal energy that was produced at the covered facility to other covered facilities or buys thermal energy from other covered facilities,

(i)the sales invoices or receipts for the thermal energy bought or sold,

(ii)the name of any covered facility from which thermal energy is bought or to which it is sold and the covered facility certificate number that was issued to the covered facility, and

(iii)the methods and data used to quantify the quantity of thermal energy bought or sold and the data in relation to the ratio of heat from the combustion of fossil fuel;

(m)any errors or omissions identified and the measures taken to correct them, with all supporting data and documentation;

(n)a copy of all permits issue pursuant to section 28; and

(o)documentation that demonstrates that the CO₂ was captured, transported and stored in accordance with the laws of Canada or a province or of the United States or one of its States.

(2)For each compliance period during which a person responsible for the covered facility uses a continuous emissions monitoring system, they must comply with the record keeping requirements set out in Quantification Methods.

(3)The record must be kept within 30 days after the information becomes available.

(4)A person who is required to keep a record of information under subsection (1), must, on the Minister’s request, provide a copy of that record to the Minister without delay.

^note

46Electronic submission#

(1)Any information that is required to be provided to the Minister under these Regulations with respect to a covered facility must be submitted electronically in the form and format specified by the Minister and must bear the electronic signature of the person responsible for the covered facility or of their authorized official.

(2)If the Minister has not specified an electronic form and format or if it is not feasible to submit the information in accordance with subsection (1) because of circumstances beyond the control of the person responsible for the covered facility or their authorized official, the information must be submitted on paper, signed by the person responsible for the covered facility or their authorized official, in the form and format specified by the Minister. However, if no form and format has been so specified, it may be in any form and format.

47Retention of information#

(1)The person responsible for a covered facility must retain a record that contains the information set out in section 45, any information that the Minister specifies under subsection 187(2) of the Act and a copy of information submitted to the Minister under these Regulations, including any calculations, measurements and other data on which the information is based.

(2)The records, copies and documents must be retained at the principal place of business in Canada of the person responsible for the covered facility or, on notification to the Minister, at any other place in Canada where they can be inspected.

(3)If the records, copies or supporting documents are moved, the person responsible for the covered facility must notify the Minister, in writing, of the civic address of the new location within 30 days after the day of the move.

^note

48Obligation to notify#

The person responsible for the covered facility must notify the Minister, in writing, within 30 days after a change to any of the following:

(a)the administrative information set out in sections 1 and 2 of Schedules 2 and 5 and provided to the Minister under these Regulations;

(b)the facility’s perimeter;

(c)the information provided in an application for registration under subsection 171(1) of the Act or in a request for designation under subsection 172(1) of the Act; or

(d)the information provided in an application for a permit under section 27, if the permit is still valid.

Verification Report

49Verification body#

(1)To be authorized to verify an annual report or a corrected report, a third party must

(a)meet the following accreditation requirements:

(i)it is accredited as a verification body to the ISO Standard 14065 by the Standards Council of Canada, the ANSI National Accreditation Board or any other accreditation organization that is a member of the International Accreditation Forum,

(ii)it has a scope of accreditation that is sufficient to verify the annual report or the corrected report, and

(iii)it is not suspended by an accreditation organization that issued an accreditation; and

(b)conduct the verification in accordance with the version of ISO Standard 14064-3 published by the International Organization for Standardization in 2006 and entitled Greenhouse gases — Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions, the version of that Standard, published in 2019 and entitled Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements, or the subsequent published version, set out in their accreditation, by applying methods that allow it to make a determination to a reasonable level of assurance, as defined in that standard, on whether

(i)a material discrepancy exists with respect to the total quantity of GHGs and production reported in the annual report from each specified industrial activity that is used in the calculation of the emissions limit, and

(ii)in the verification body’s opinion, the annual report or corrected report was prepared in accordance with these Regulations.

(2)For the purpose of the verification of a covered facility’s annual report or corrected report, a material discrepancy exists when

(a)with respect to GHGs from covered facilities that have emitted a quantity of GHGs of less than 500 kt of CO₂e during the compliance period,

(i)in the case of an error or omission respecting GHGs that is identified during the verification and that may be quantified, the result, expressed as a percent, determined by the formula, is equal to or greater than 5%:

(ii)in the case of the aggregate of all errors and omissions respecting GHGs that are identified during the verification and that may be quantified, the result, expressed as a percent, determined by the formula, is equal to or greater than 5%:

(b)with respect to GHGs from covered facilities that emitted a quantity of GHGs that is equal to or greater than 500 kt of CO₂e during the compliance period,

(c)with respect to the production from a specified industrial activity that is used in the calculation of the emissions limit, in the case of an error or omission respecting the quantification of the production that is identified during the verification and may be quantified, the result, expressed as a percent, determined by the formula, is equal to or greater than 5%:

^note

50Conflict of interest#

(1)The person responsible for a covered facility must ensure that no real or potential conflict of interest exists between the person and the accredited verification body, including members of the verification team and any individual or corporate entity associated with the verification body, that is a threat to or compromises the verification body’s impartiality that cannot be effectively managed.

(2)The person responsible must not have their annual report verified by a verification body that has verified six consecutive annual reports prepared under these Regulations with respect to the same covered facility, unless three years have elapsed since the last of those reports was verified. However, a corrected report may be verified by the verification body within those three years if it is in relation to an annual report verified by that verification body.

(3)The person responsible for a covered facility must not have more than a total of six of its annual reports prepared under these Regulations for the same covered facility verified by the same verification body within a period of nine years.

^note

51Facility visit#

(1)Subject to subsection (2), the person responsible for a covered facility must ensure that their covered facility is visited by an accredited verification body in the following situations:

(a)it is the initial verification of the covered facility under these Regulations or by the verification body;

(b)two calendar years have passed since a verification body has visited the covered facility for the purposes of verifying an annual report or corrected report;

(c)in the last annual report for the covered facility prepared under these Regulations, the verification body made a determination

(i)that a material discrepancy exists with respect to the total quantity of GHGs or production reported in the annual report from a specified industrial activity that is used in the calculation of the emissions limit, or

(ii)that the annual report was not prepared in accordance with these Regulations; or

(d)the verification body is of the opinion a site visit is required.

(2)If buildings that are used for legal, administrative or management purposes are not located where an industrial activity is carried out, the person responsible for a covered facility must ensure that the verification body visits those buildings if data or information necessary for verifying an annual report or a corrected report is kept in those buildings.

^note

52Content of verification report#

A verification report is prepared by a verification body in relation to the annual report and corrected report, if applicable, and any related data and information, and includes the information contained in Schedule 5.

Compensation and Compliance Units

Minister’s Intervention

53Determination#

(1)The Minister may establish the emissions limit or determine the quantity of GHGs emitted from the covered facility for the compliance period if

(a)there is a material discrepancy with respect to the total quantity of GHGs from the covered facility or the production from one or more specified industrial activities used in the calculation of the emissions limit reported in the annual report or the corrected report for the compliance period;

(b)the verification opinion referred to in paragraph 3(n) of Schedule 5 that is included in the verification report that accompanies an annual report or corrected report for the compliance period indicates that it is impossible to determine that a material discrepancy does not exist or that the annual report or corrected report was prepared in accordance with these Regulations;

(c)the emissions limit for the covered facility that is indicated in the annual report or corrected report for the compliance period was not calculated in accordance with these Regulations and any resulting error was equal to or greater than 2%; or

(d)the annual report for the compliance period was not submitted to the Minister.

(2)The Minister is to establish the emissions limit or determine the quantity of GHGs emitted from the covered facility for the compliance period, as the case may be, based on the following:

(a)the annual report and verification report for the compliance period and, if necessary, any previous reports;

(b)any report made in accordance with the Notice with respect to reporting of greenhouse gases (GHGs) published under the Canadian Environmental Protection Act, 1999;

(c)information in respect of industrial activities, in Canada or in other jurisdictions, similar to those of the covered facility, that allows for the determination of production amounts for the covered facility;

(d)accepted quantification methods used to calculate the GHGs from facilities engaged in the same industrial activity or in the same type of industrial activity as the covered facility; and

(e)any other information provided, on the Minister’s request, by the person responsible for the covered facility or the verifier.

(3)The Minister must notify the person responsible for the covered facility, in writing, of their determination with respect to the emissions limit or the quantity of GHGs emitted from the covered facility established for the compliance period.

Compensation and Issuance of Surplus Credits

54Excess emissions#

For the purposes of subsection 174(1) of the Act, if, during a compliance period, a covered facility emits GHGs in a quantity that exceeds the applicable emissions limit, the compensation to be provided by the person responsible for that facility is to be established based on the quantity of GHGs, expressed in CO₂e tonnes, that was emitted in excess of the emissions limit as reported in the annual report submitted for the compliance period or the Minister’s determination under section 53, as the case may be.

55Excess emissions charge payment#

(1)Any compensation that is provided by means of an excess emissions charge payment must be made electronically to the Receiver General for Canada.

(2)Any compensation that is provided by means of a remittance of surplus credits must be made in the manner set out in section 70.

(3)Any compensation that is provided by means of a remittance of compliance units other than surplus credits must be made in the manner set out in section 71.

56Minimum percentage — charge#

A minimum of 25% of the compensation that is required under section 174 of the Act must be provided by means of an excess emissions charge payment for each compliance period beginning with the 2022 compliance period.^note

57Regular-rate compensation deadline#

(1)For the purposes of subsection 174(3) of the Act, the regular-rate compensation deadline is December 15 of the calendar year in which the related annual report must be submitted.

(1.1)Despite subsection (1), for the compliance period that ends on December 31, 2019, the regular-rate compensation deadline is April 15, 2021.

(2)For the purposes of subsection 174(4) of the Act, the increased-rate compensation deadline is February 15 of the calendar year following the deadline under subsection (1).

(2.1)Despite subsection (2), for the compliance period that ends on December 31, 2019, the increased-rate compensation deadline is June 15, 2021.

(3)However, if a notice of determination under subsection 53(3) is issued after October 31 of the year in which the related annual report is due

(a)the regular-rate compensation deadline is 45 days after the day on which the notice is issued; and

(b)the increased-rate compensation deadline is 60 days after the day on which the regular-rate compensation deadline under paragraph (a) expires.

^note

58Compensation information#

A person that is responsible for a covered facility must, at the time compensation is provided, submit to the Minister the following information:

(a)the covered facility certificate number;

(b)the provision of the Act under which the compensation is being provided;

(c)the compliance period for which compensation is being provided;

(d)the quantity of GHGs emitted in excess of the emissions limit in respect of which the compensation is provided, expressed in CO₂e tonnes;

(e)the details of any excess emissions charge payment, including

(i)the amount in dollars paid to the Receiver General for Canada,

(ii)the applicable rate, and

(iii)the date of payment;

(f)the details of any surplus credits or offset credits remitted, including, for each type of credit,

(i)the number remitted,

(ii)the date of the remittance transaction,

(iii)the remittance transaction number,

(iv)the serial numbers, and

(v)the date or dates on which they were issued; and

(g)the details of any units or credits, recognized as compliance units, remitted, including

(i)the number remitted,

(ii)the province or program authority referred to in subsection 78(1) that issued the units or credits,

(iii)the date of their retirement or the date they are designated for use exclusively as a compliance unit for the purposes of remittance to the Minister under section 174, paragraph 178(1)(a) or subsection 181(2) of the Act, as the case may be,

(iv)the serial numbers assigned to them by the province or program authority referred to in subsection 78(1),

(v)the start date of the offset project for which the unit or credit was issued,

(vi)the year in which the GHG reduction or removal occurred for which the unit or credit was issued,

(vii)the offset protocol applicable to the project for which the unit or credit was issued, including the version number and publication date, and

(viii)the name of the accredited verification body that verified the units or credits.

^note

59Surplus credits#

(1)For the purposes of section 175 of the Act and subject to subsection (2), the number of surplus credits, equivalent to the difference between the emissions limit and the quantity of GHGs emitted from the covered facility, that the Minister issues is based on what is reported in the annual report submitted for the compliance period if the emissions limit that was set out in the report was calculated in accordance with these Regulations, unless a material discrepancy within the meaning of subsection 49(2) exists with respect to the total quantity of GHGs or the production from one of the specified industrial activities that is used in the calculation of the emissions limit for the compliance period.

(2)The Minister will not issue surplus credits if the Minister has established the emissions limit or determined the quantity of GHGs emitted from the covered facility for the compliance period under section 53.

^note

Errors and Omissions

61Identification by person responsible#

The notice submitted under subsection 176(1) of the Act by a person responsible for a covered facility who has become aware of an error or omission in an annual report must indicate whether

(a)the error or omission would have constituted a material discrepancy under subsection 49(2) if it had been identified during the verification of the annual report; and

(b)the aggregate of all errors and omissions would have constituted a material discrepancy under subsection 49(2) if it had been identified during the verification of the annual report.

62Corrected report#

(1)If the notice indicated that the error or omission, or the aggregate of all errors and omissions, would have constituted a material discrepancy under subsection 49(2), a corrected report, along with a verification report prepared in accordance with section 52, must be submitted to the Minister by the person responsible within 120 days after the day on which the notice is submitted.

(2)The corrected report must include the information referred to in sections 11 and 12 and, under a heading, the following information:

(a)the information provided in the annual report that required correction and a description of the corrections made;

(b)a description of the circumstances that led to the errors or omissions and an indication of the reasons why the error or omission was not previously detected; and

(c)a description of the measures that have been and will be implemented to avoid future errors or omissions of the same type.

^note

63Identification by the Minister#

(1)Subsection 62(2) applies to a report that is required by the Minister under subsection 177(2) of the Act and the report must be submitted to the Minister within the following period:

(a)in the case of a corrected report, 60 days after the day on which the Minister required it; and

(b)in the case of a verified corrected report, 120 days after the day on which the Minister required it.

(2)The corrected report submitted under paragraph (1)(b) must be submitted with a verification report prepared in accordance with section 52.

^note

64Change in obligations#

(1)For the purposes of section 178 of the Act, the revised compensation to be paid or remitted or the number of surplus credits to be issued, as the case may be, is equal to the difference between the result of the assessment made in accordance with section 44, and reported in the annual report, and the result that is reported in the corrected report.

(2)For the purposes of paragraph 178(1)(a) of the Act, any revised compensation is to be provided by means of an excess emissions charge payment or a remittance of compliance units. Revised compensation is to be provided if the difference referred to in subsection (1) is greater than or equal to 500 CO₂e tonnes.

(3)For the purposes of paragraph 178(1)(b) of the Act and subject to subsection (4), the Minister may issue a number of surplus credits that is equivalent to the difference between, as the case may be,

(a)the number of surplus credits that corresponds to the result obtained under section 44 based on the corrected report and the number of surplus credits issued under section 175 of the Act based on the annual report; or

(b)the applicable emissions limit and the quantity of GHGs emitted from the covered facility that are reported in the corrected report, if the emissions limit that was set out in the corrected report was calculated in accordance with these Regulations.

(4)The Minister will not issue surplus credits if

(a)a material discrepancy within the meaning of subsection 49(2) exists with respect to the total quantity of GHGs reported in the corrected report or the production from one of the specified industrial activities that is used in the calculation of the emissions limit reported in the corrected report for the compliance period; or

(b)the emissions limit or quantity of GHGs emitted from the covered facility is determined by the Minister for the compliance period under section 53.

^note

65 #

[Repealed, SOR/2023-240, s. 36] (repealed)

66Excess Surplus credits issued#

(1)If a corrected report shows that an excess number of surplus credits was issued to the person responsible for a covered facility and the credits in question remain in an account in the tracking system that is linked to the covered facility, the Minister must revoke the excess credits without notice. The revocation is effective as of the date on which the corrected report is submitted.

(2)If any of the excess surplus credits are no longer in an account in the tracking system that is linked to the covered facility, the person responsible for the facility must, within the compensation deadlines set out in subsections 69(1) and (2), make up the amount owed by

(a)remitting to the Minister other surplus credits in accordance with section 70;

(b)remitting to the Minister other compliance units in accordance with section 71; or

(c)making an excess emissions charge payment in accordance with section 55.

67Charge#

An excess emissions charge payment made for the purposes of subsection 64(2) must be made in the manner set out in section 55.^note

68Surplus credits#

(1)Any revised compensation that is provided by the remittance of surplus credits must be made in the manner set out in section 70.

(2)Any revised compensation that is provided by the remittance of compliance units other than surplus credits must be made in the manner set out in section 71.

69Regular-rate compensation deadline#

(1)With respect to revised compensation, the regular rate referred to in subsection 174(3) of the Act applies for a period of 45 days after the day on which the corrected report must be submitted.

(2)If compensation is not provided in full by the deadline set out in subsection (1), the increased rate referred to in subsection 174(4) of the Act applies for a period of 60 days after that deadline.

(3)If a corrected report is submitted to the Minister in respect of a compliance period for which the regular-rate compensation deadline set out in subsection 57(1) or (1.1) has not expired, the compensation deadline in respect of that compliance period is the later of

(a)the compensation deadlines set out in subsection 57(1), (1.1), (2) or (2.1), as the case may be, and

(b)the compensation deadlines under subsection (1) or (2), as the case may be.

^note

Remittance of Compliance Units

70Surplus credits#

(1)Subject to subsection (2), any surplus credit may be remitted to the Minister for the purposes of subsection 174(1) or paragraph 178(1)(a) of the Act if the credit was issued no more than five calendar years before the remittance.

(2)The surplus credit must have been issued in respect of a facility that is located in a province that was listed in Part 2 of Schedule 1 to the Act for at least one day during the compliance period for which the credit is being remitted.

^note

71Other compliance units#

Any recognized unit or credit or offset credit may be remitted to the Minister for the purposes of subsection 174(1) or paragraph 178(1)(a) of the Act if the unit or credit, as the case may be, was issued for GHG reductions or removals that occurred no more than eight calendar years before the remittance.

Suspension and Revocation

72Suspension — reasonable grounds#

(1)For the purposes of subsection 180(1) of the Act, the Minister may suspend a surplus credit in an account if the Minister has reasonable grounds to believe that the credit

(a)was already used;

(b)was issued on the basis of false or misleading information; or

(c)is no longer valid.

(1.1)For the purposes of subsection 180(1) of the Act, the Minister may suspend all surplus credits

(a)that were issued in respect of a covered facility that is located in a province that was listed in Part 2 of Schedule 1 to the Act but is no longer listed in that Part; and

(b)that are in an account in the tracking system that is linked to a facility that is located in a province that is no longer listed in Part 2 of Schedule 1 to the Act and ceased being a covered facility at the time when the name of the province in which it is located was removed from Part 2 of Schedule 1 to the Act.

(2)The Minister must, without delay, notify the holder of the account of the suspension of the credit, the reasons for the suspension and the date on which it takes effect.

(3)If a credit was suspended on any of the grounds listed in subsection (1), the holder of the account may, within 30 days after the day on which the Minister’s notice under subsection (2) is issued, submit to the Minister their reasons why the credit should not be suspended.

(4)The person responsible for a facility who holds an account that is linked to the facility in the tracking system in which there remain surplus credits that were suspended as a result of the name of a province being removed from Part 2 of Schedule 1 to the Act may make a request to the Minister to lift the suspension of those surplus credits if the surplus credits are to be provided as compensation for the facility’s excess emissions under subsection 174(1) of the Act or paragraph 178(1)(a) of the Act, in respect of a compliance period during which the facility was a covered facility.

^note

73Revocation#

The Minister must, after the period set out in subsection 72(3), thoroughly review the reasons for the suspension that are set out in subsection 72(1) and notify the holder of the account that

(a)if the Minister determines that the reasons for the suspension are well-founded, the surplus credit is revoked; or

(b)the suspension of the credit is lifted.

^note

74Request for cancellation#

A request under subsection 180(2) of the Act to cancel a surplus credit or offset credit must be made to the Minister in writing and include the serial number of the credit to be cancelled.

Issuance Error or Invalidity

75Application of subsection 181(1) of the Act#

(1)If the Minister requires a person, under subsection 181(1) of the Act, to remit a compliance unit, the Minister must provide the person a notice indicating the reason for the remittance, the number of compliance units to be remitted and the deadline by which the remittance is to be made.

(2)The compliance units remitted to the Minister under subsection 181(2) of the Act must

(a)in the case of surplus credits, have been issued within five calendar years before the deadline indicated in the notice provided under subsection (1) and have been issued in respect of a covered facility located in a province that was listed in Part 2 of Schedule 1 to the Act for at least one day during the compliance period for which the credit is being remitted; and

(b)in the case of recognized units or credits or offset credits, have been issued for GHG reductions or removals that occurred within the eight calendar years before the deadline indicated in the notice provided under subsection (1).

^note

Tracking System

76Accounts for participants#

For the purposes of subsection 186(1) of the Act, any person, other than a person responsible for a covered facility or a proponent within the meaning of subsection 1(1) of the Canadian Greenhouse Gas Offset Credit System Regulations, who wishes to open an account in the tracking system must notify the Minister in writing.^note

77Notice of closure#

(1)If an account, other than a GHG Offset Credit System account as defined in the Canadian Greenhouse Gas Offset Credit System Regulations, has been inactive for more than seven years, the Minister may give 60 days’ notice to the holder of the account of the Minister’s intent to close the account.

(2)If the holder of the account fails to request that the account remain open before the expiry of the 60 days, the Minister may close the account under subsection 186(3) of the Act.

^note

Recognized Units or Credits

78Compliance unit#

(1)A unit or credit is to be recognized as a compliance unit if

(a)it is issued by a province or by a program authority on behalf of a province;

(b)it is issued under an offset protocol and offset program that is set out on the list published on the Department of the Environment’s website;

(c)it is eligible for use as a method of compensation or compliance with respect to a pricing mechanism for GHG emissions in the province in which it was issued; and

(d)it corresponds to a GHG reduction or removal of one CO₂e tonne.

(2)In establishing the list of offset programs, the Minister must ensure that each one includes the following elements:

(a)rules regarding governance, oversight and enforcement;

(b)rules regarding registration and renewal of projects;

(c)rules regarding the establishment of periods within which units or credits may be issued;

(d)rules regarding who is entitled to the credit or unit for the GHG reductions or removals;

(e)measures to ensure that GHG reductions and removals are additional and permanent and that reversal risks have been mitigated;

(f)measures to ensure that, for a GHG reduction or removal of one CO₂e tonne, one credit or unit is issued and the unit or credit is not used more than once;

(g)publicly available information on projects, protocols and units or credits; and

(h)a requirement that, prior to the issuance of a unit or credit, there be a verification by a third party in accordance with procedures that allow them to determine with a reasonable level of assurance that the associated project meets the requirements of the protocol and program.

(3)In establishing the list of offset protocols recognized under a program referred to in subsection (2), the Minister must verify that each protocol ensures that

(a)the reduction or removal is with respect to a GHG;

(b)the reduction or removal is not subject to carbon pollution pricing;

(c)the GHG reduction or removal is quantified using scientifically-established methods that allow for

(i)the calculation of the quantity of GHG emissions or removals for each GHG source, sink and reservoir,

(ii)the quantification of reversals,

(ii.1)the assessment of leakage risks,

(iii)the calculation of the quantity of GHG reductions or removals that would not have occurred in comparison with the baseline scenario, and

(iv)the use of conservative quantification assumptions and approaches;

(c.1)the baseline scenario used reflects the most recent data available, any legal requirements and current practices with respect to the activity that is the subject of the protocol;

(d)best practices are used for

(i)data gathering and management,

(ii)record keeping,

(iii)the ongoing monitoring of offset projects, including permanence, and

(iv)quality assurance and quality control; and

(e)the GHG global warming potentials used in calculations are less than or equal to those set out in column 2 of Schedule 3 to the Act.

(4)A recognized unit or credit must, at the time of its remittance to the Minister,

(a)be valid;

(b)have been issued in respect of a project that uses a protocol referred to in subsection (3);

(c)have been issued in respect of a project located in Canada that began in 2017 or later;

(d)have been verified by a verification body that

(i)is accredited as a verification body to the ISO Standard 14065 by the Standards Council of Canada, the ANSI National Accreditation Board or any other accreditation organization that is a member of the International Accreditation Forum, and

(ii)is not suspended by the accreditation organization that issued its accreditation nor suspended at the time the verification relative to the issuance of the unit or credit occurred or at the time the verification report related to the issuance of the unit or credit was signed; and

(e)be designated for use exclusively as a compliance unit for the purposes of remittance to the Minister under section 174, paragraph 178(1)(a) or subsection 181(2) of the Act.

^note

Transitional Provisions

79Subsection 12(3)#

For the 2019 calendar year, despite subsection 12(3), if a covered facility where a specified industrial activity set out in items 2 or 3, column 1, of Schedule 1 is engaged in produces hydrogen gas, the person responsible for the covered facility must include in their annual report the information referred to in that subsection if it is available.

80Application#

Section 8 of the Greenhouse Gas Emissions Information Production Order, as it read immediately before August 1, 2019, continues to apply, with any necessary modifications, with respect to a person responsible for a covered facility where an industrial activity set out in Schedule 1 to these Regulations is engaged in until January 1, 2020.

81Records#

(1)Any records kept in accordance with section 11 of the Greenhouse Gas Emissions Information Production Order, as it read immediately before August 1, 2019, during the period beginning on January 1, 2019 and ending on August 1, 2019, are deemed to be records kept for the purposes of subsection 45(1) of these Regulations.

(2)For the 2019 calendar year, if a person responsible for a covered facility used an alternative sampling, measurement or analysis method for a specified emission type in accordance with section 8 of the Greenhouse Gas Emissions Information Production Order, as it read before August 1, 2019, they must keep a record of a description of that method.

82Clinker#

For the 2019 calendar year, despite paragraph 31(1)(a) of these Regulations, the production from a covered facility with respect to the specified industrial activity set out in paragraph 7(a), column 1, of Schedule 1 of these Regulations may be quantified under paragraph 36(c) of the Greenhouse Gas Emissions Information Production Order, as it read immediately before August 1, 2019. If the production is quantified under the Order, it cannot be used in the calculation of the emissions limit under subsection 36(1) of these Regulations.

83Glass containers#

For the 2019 calendar year, despite paragraph 31(1)(a) and subsection 36(1) of these Regulations, the production from a covered facility with respect to the specified industrial activity set out in paragraph 9(a), column 1, of Schedule 1 to these Regulations may be quantified in accordance with section 103.2 of the Greenhouse Gas Emissions Information Production Order, as it read before August 1, 2019.

84High value chemicals#

For the 2019 calendar year, despite paragraph 31(1)(a) of these Regulations, the production from a facility with respect to the specified industrial activity set out in paragraph 17(a), column 1, of Schedule 1 to these Regulations may be quantified in accordance with section 103.36 of the Greenhouse Gas Emissions Information Production Order, as it read before August 1, 2019.

85Isopropyl alcohol#

For the 2019 calendar year, despite subparagraph 11(1)(a)(ii) of these Regulations, the person responsible for the covered facility is not required to quantify the production from the specified industrial activity set out in paragraph 3(c), column 1, of Schedule 1.

85.1Pulp and Paper#

(1)For the 2019 calendar year, despite paragraph 31(1)(a) and subsection 36(1) of these Regulations, the production from a covered facility with respect to the specified industrial activity set out in paragraph 36(c), column 1, of Schedule 1 to these Regulations may be quantified in accordance with section 102 of the Greenhouse Gas Emissions Information Production Order, as it read before August 1, 2019. In that case, the output-based standards that apply are

(a)0.203 CO₂e tonnes per unit of measurement, in the case of a facility equipped with a recovery boiler, lime kiln or pulping digester, and

(b)0.184 CO₂e tonnes per unit of measurement, in the case of a facility not equipped with a recovery boiler, lime kiln or pulping digester.

(2)For the 2019 calendar year, if a covered facility where the specified industrial activity set out in paragraph 36(c), column 1, of Schedule 1 to these Regulations is engaged in quantifies production in accordance with subsection (1), the annual report must include the quantity of specialty products produced, in tonnes, if that information is available.

Amendments to the Environmental Administrative Monetary Penalties Regulations

86 #

[Amendments]

87 #

[Amendments]

88 #

[Amendments]

89 #

[Amendments]

90 #

[Amendments]

91 #

[Amendments]

92 #

[Amendments]

Coming into Force

93January 1, 2019#

(1)Subject to subsections (2) to (6), these Regulations are deemed to have come into force on January 1, 2019.

(2)These Regulations apply in Yukon and Nunavut on July 1, 2019.

(3)Sections 26 to 30 and subsections 31(2) and (3) come into force on January 1, 2020.

(4)Subsection 45(2) of these Regulations comes into force on August 1, 2019.

(5)Section 56 comes into force on January 1, 2022.

(6)Section 76 comes into force on February 16, 2021.

^note

Schedule 1 · Industrial Activities and Output-based Standards (Subsections 2(1) and 5(2), paragraph 8(b), section 8.1, subparagraphs 11(1)(b)(iii) and (iv), clauses 11(1)(c)(iii)(A) and (B), subsections 12(2) and (3), section 16, paragraph 17(2)(a), subsections 22(2), 31(1), 32(1) and 36(1) to (4), section 36.1, subsections 36.2(2) and 37(1), sections 38 and 41, subsections 41.1(2) and 41.2(2), sections 41.3 and 42, subsection 1(1.1) of Part 3 of Schedule 3, subparagraphs 1(2)(b)(i) and (ii) and (c)(i) of Part 3 of Schedule 3, section 1 of Part 4 of Schedule 3, sections 1 and 2 of Part 7 of Schedule 3, section 1 of Part 37 of Schedule 3 and subparagraphs 3(g)(ii) and 3(h)(iii) of Schedule 5)

Schedule 2 · Content of Annual Report on Emissions and Production (Subsection 11(1))

1 #

Information with respect to the person responsible for the covered facility:

(a)an indication as to whether they own or are otherwise responsible for the covered facility, including having the charge, management or control of the facility, or are the true decision maker with respect to the facility’s operations;

(b)their name (including any trade name or other name used by them) and civic address;

(c)the name, title, civic and postal addresses, telephone number and, if any, email address of their authorized official;

(d)the name, title, civic and postal addresses, telephone number and, if any, email address of a contact person, if different from the authorized official; and

(e)the federal Business Number assigned to them by the Canada Revenue Agency, if any.

2 #

Information with respect to the covered facility:

(a)its name and the civic address of its physical location, if any;

(b)its latitude and longitude coordinates in decimal degrees or degrees, minutes and seconds, except for a covered facility referred to in paragraph (b) of the definition of facility in subsection 1(1) of these Regulations;

(c)its six-digit North American Industry Classification System (NAICS) Canada code;

(d)the covered facility certificate number that was issued to it;

(e)if applicable, the National Pollutant Release Inventory (NPRI) identification number assigned to it for the purposes of the Canadian Environmental Protection Act, 1999 and its Greenhouse Gas Reporting Program identification number; and

(f)in the case of an electricity generation facility or a covered facility referred to in paragraph 11(1)(c) that is composed, in part, of a unit or a group of units,

(i)the unique name for each unit,

(ii)the unit’s registration number under the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity, if any, and

(iii)the unit’s registration number under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, if any.

3 #

The quantity of each GHG for the compliance period, expressed in tonnes, for each of the following emission types:

(a)stationary fuel combustion emissions;

(b)industrial process emissions;

(c)industrial product use emissions;

(d)venting emissions;

(e)flaring emissions;

(f)leakage emissions;

(g)on-site transportation emissions;

(h)waste emissions; and

(i)wastewater emissions.

3.1 #

The global warming potential applicable for each GHG for the compliance period.

4 #

The quantities of CH₄ and N₂O that are subtracted under subsection 17(5) or 20(6) of these Regulations from the total CH₄and N₂O, expressed in tonnes, separately.

5 #

A list of the methods used to calculate, sample, measure and analyze each specified emission type and GHG for the compliance period.

6 #

If a covered facility uses a continuous emissions monitoring system and has captured or stored CO₂, the quantity of CO₂ captured during the compliance period.

7 #

If CO₂ was captured, stored and deducted from the total quantity of GHGs under section 35 of these Regulations, the following information,

(a)a statement that indicates whether the CO₂ was stored in accordance with the requirements set out in subsection 35(2) of these Regulations;

(b)the type of geological storage site used, among those set out in paragraph 35(2)(a) of these Regulations;

(c)the latitude and longitude coordinates in decimal degrees or degrees, minutes and seconds, of the storage site; and

(d)the name and address of the owner or the operator of the storage site, if they are different than those of the person responsible for the covered facility.

8 #

The output-based standard for each of the specified industrial activities engaged in at the covered facility.

8.1 #

If an output-based standard must be calculated for a specified industrial activity engaged in at the covered facility or recalculated under to section 39 of these Regulations, the following information in the annual report for the compliance period for which the standard is calculated,

(a)the quantification, sampling, analysis and measurement methods and the data used to calculate that standard;

(b)if a determination is made under subsection 37(2.1) of these Regulations, the methods for the projections and the projections bearing the stamp and signature of an engineer; and

(c)the method used to attribute the quantity of GHGs to each specified industrial activity or to activities that are not specified industrial activities.

9 #

The method used to determine the covered facility’s production from each of the specified industrial activities engaged in at the facility.

10 #

With respect to thermal energy that is sold or bought, in addition to the information required in section 12 of these Regulations:

(a)the name of each covered facility from which thermal energy was bought and the covered facility certificate number that was issued to it; and

(b)the name of each covered facility to which thermal energy was sold and the covered facility certificate number that was issued to it.

11 #

With respect to a facility that produces cement,

(a)in addition to the tonnes of grey cement, the tonnes of clinker, gypsum and limestone that the grey cement contains, separately; and

(b)in addition to the tonnes of white cement, the tonnes of clinker, gypsum and limestone that the white cement contains, separately.

12 #

With respect to a facility that produces petrochemicals, the quantity of hydrogen gas produced during the compliance period, in tonnes, the quantity of hydrogen gas sold, in tonnes, and the concentration of the hydrogen gas sold, expressed in weight percentage.

13 #

With respect to a facility that produces metal from the mining of ore

(a)in addition to the total quantity of silver, platinum and palladium, in kilograms, combined, each of those metals separately, and;

(b)in addition to the combined total of base metals, in tonnes combined, each of those base metals in ore concentrate, in tonnes, separately.

14 #

With respect to an electricity generation facility composed of a unit referred to in subsection 41(2) of these Regulations, a statement indicating whether solid fuel was used by the unit to generate electricity in 2018 and whether additional liquid or gaseous fuel was used in that same year, if that information is available.

15 #

With respect to a covered facility for which part or all of the electricity generated from fossil fuels is not quantified, a list of the units or equipment from which the electricity is generated but not quantified.

16 #

With respect to a covered facility referred to in section 36.2 or 41.2 of these Regulations, with respect to the units or equipment whose electricity generation capacity has been increased during a compliance period,

(a)the total capacity and thermal energy to electricity ratio of the unit or equipment prior to its capacity being increased;

(b)the total capacity and thermal energy to electricity ratio of the unit or equipment subsequent to its capacity being increased; and

(c)the date of completion of any modifications made to the unit or equipment to increase its capacity.

17 #

With respect to an electricity generation facility referred to in section 41.1 of these Regulations, the total capacity and thermal energy to electricity ratio of each unit within the facility that generates electricity from gaseous fuels.

Schedule 3 · Quantification Requirements (Paragraphs 17(2)(a) and (b), 20(2)(a), and 31(1)(a), subparagraph 31(1)(b)(i), subsection 32(1), paragraphs 34(1)(b) and (c) and Schedule 1)

1 #

(1)Direct-only complexity weighted barrels (direct-only CWB) is quantified in accordance with the method outlined in section 2.5 of the directive entitled CAN-CWB Methodology for Regulatory Support: Public Report, published by Solomon Associates in January 2014.

(1.1)When quantifying the direct-only complexity weighted barrels, the emissions and energy use accounted for are those that are associated with the industrial activity set out in paragraph 3(a), column 1 of Schedule 1.

(2)In the method referred to in subsection (1),

(a)the value of “Sales and Exports of Steam and Electricity” is equal to zero;

(b)the value of “EC Reported CO₂e Site Emissions” excludes

(i)the emissions associated with electricity generated at the covered facility and used for the purpose of the industrial activity set out in paragraph 3(a), column 1 of Schedule 1, prorated based on the energy used for the refinery operation, and

(ii)the emissions associated with steam generated at the covered facility but not used for the purpose of the industrial activity set out in paragraph 3(a), column 1 of Schedule 1;

(c)the value of “Deemed Indirect CO₂e Emissions from imported electricity”

(i)includes emissions associated with electricity that is generated and used at the covered facility and used for the purpose of the industrial activity set out in paragraph 3(a), column 1 of Schedule 1, prorated based on the energy used for the refinery operation, and

(ii)for purchased electricity, is calculated using 0.420 tonnes of CO₂e per megawatt hours of electricity bought;

(d)the value of “Deemed Indirect CO₂e Emissions from imported steam” is equal to zero; and

(e)the value of the “CWB factor” used to calculate hydrogen generation, in all cases, is 5.7.

1 #

The combined quantity, in cubic metres, of propane and butane set out in paragraph 4(b), column 2, of the table to Schedule 1 is the sum of the quantity of propane, in cubic metres, at a temperature of 15°C and at an equilibrium pressure and the quantity of butane at a temperature of 15°C and at an equilibrium pressure, in cubic metres.

1 #

(1)Production by the covered facility, expressed in megawatt hours, is the sum of the amounts determined by the following formula for each of the drivers operated by the covered facility:

(2)The following definitions apply in this section.

driver means an electric motor, reciprocating engine or turbine used to drive a compressor. (conducteur)

rated brake power means the maximum brake power of a driver as specified by its manufacturer either on its nameplate or otherwise. (puissance au frein nominale)

1 #

The quantity of clinker set out in paragraph 7(a), column 2, of Schedule 1 refers only to clinker that is transported out of the facility.

2 #

The quantity of grey cement and white cement set out in paragraphs 7(b) and (c), column 2, of Schedule 1 refers only to cement produced from clinker that was produced at that facility and that has not been transported out of the facility.

1 #

The quantity of dolomitic lime does not include the dolomitic lime used in the production of speciality lime.

1 #

Production is quantified at the end of the formulation step of the manufacturing process, in litres of vaccine, determined by the formula:

1 #

The quantity of urea liquor does not include the urea liquor used in the production of granular urea.

1 #

(1)Production by the covered facility is quantified in tonnes of finished product or tonnes of specialty product, as follows:

(a)in the case of pulp, including dissolving pulp for viscose,

(i)if the moisture content exceeds 10%, the weight of the pulp is adjusted so that its moisture content does not exceed 10%, and

(ii)if the moisture content is equal to or less than 10%, the weight of the pulp without adjustment; and

(b)in the case of a finished product or specialty product referred to in subsection (3) derived directly from pulp or the pulping process, the weight of the product or, if it has been machine dried, its weight after it has been dried.

(2)A finished product referred to in paragraph (1)(b) does not include pulping liquor, wood waste, non-condensable gases, sludge, tall oil, turpentine, biogas, steam, water or products that are used in the production process.

(3)For the purposes of paragraph (1)(b), a specialty product means abrasive paper base, food grade grease resistant paper, packaging waxed paper base, paper for medical applications, napkin paper for commercial use, towel paper for commercial or domestic use, bath paper for domestic use and facial paper for domestic use.

1 #

Production is the number of vehicles referred to in item 37 of column 1, of Schedule 1 that are assembled during the compliance period.

1 #

(1)Subject to section 2, if a unit uses only one fossil fuel to generate electricity, production of electricity must be quantified in Gigawatt hours of gross electricity generated by the unit, measured at the electrical terminals of the generators of each unit using meters that comply with the requirements set out in subsection 31(2) of these Regulations.

(2)Subject to section 2, if a unit uses a mixture of fossil fuels or a mixture of biomass and fossil fuels to generate electricity, the gross electricity generated by the unit is to be determined separately for the gaseous fuels, liquid fuels and solid fuels in accordance with the following formula and expressed in Gigawatt hours:

(3)The quantity of fuel for QFF_j or QB_i is determined on the following basis:

(a)for a solid fuel, the mass of the fuel combusted, on a wet or dry basis, expressed in tonnes and measured by a measuring device;

(b)for a liquid fuel, the volume of the fuel combusted, expressed in kL and measured using a flow meter; and

(c)for a gaseous fuel, the volume of the fuel combusted, expressed in standard cubic metres and measured using a flow meter.

2 #

If a combustion engine unit and a boiler unit share the same steam turbine, the quantity of gross electricity generated by a given unit is determined by the formula

3 #

If a covered facility uses only one fossil fuel to generate electricity, production of electricity is quantified in Gigawatt hours of gross electricity generated through the use of fossil fuels.

4 #

(1)If a covered facility uses a mixture of fossil fuels or a mixture of biomass and fossil fuels to generate electricity, the gross electricity generated by the facility is to be determined separately for the gaseous fuels, liquid fuels and solid fuels in accordance with the following formula and expressed in Gigawatt hours:

(2)The quantity of fuel for QFF_j and QB_i is determined on the following basis:

(a)for a solid fuel, the mass of the fuel combusted, on a wet or dry basis, expressed in tonnes and measured in accordance with Quantification Methods;

(b)for a liquid fuel, the volume of the fuel combusted, expressed in kL and measured in accordance with Quantification Methods; and

(c)for a gaseous fuel, the volume of the fuel combusted, expressed in standard cubic metres and measured in accordance with Quantification Methods.

1 #

(1)The quantity of wood veneer does not include wood veneer used in the production of plywood.

(2)The quantity of wood veneer and plywood refers only to wood veneer and plywood that will not undergo an additional transformation at the facility.

2 #

The quantity of lumber produced refers only to lumber that will not undergo an additional transformation at the facility.

3 #

The quantity of particle board and of panels composed primarily of cellulosic fibers and a bonding system cured under heat and pressure, including hardboard, is quantified after they are cured under heat and pressure.

1 #

The production is quantified, in tonnes of alumina (Al₂O₃) equivalent determined by the following formula:

1 #

The quantity of pneumatic tires does not include solid tires.

Schedule 4 · Information to Include in Application for Permit (Subsections 27(1) and 29(1))

1 #

Information with respect to the applicant:

(a)their name, civic and postal addresses in Canada, telephone number and, if any, email address; and

(b)the name, title, civic and postal addresses in Canada, telephone number and, if any, email address of their authorized official.

2 #

The covered facility certificate number that was issued to the covered facility for which the application is being submitted.

3 #

Details with respect to

(a)each prescribed method or guideline that cannot be used;

(b)the specified emission type and GHG; and

(c)the requirement that cannot be met.

4 #

Information establishing that, at the time of the application, it is not technically or economically feasible for the applicant to use the prescribed quantification method or guideline.

5 #

A description of the alternative method to be used for each method or guideline in respect of which a permit is sought and information that 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.

6 #

The requested term of the permit, which must be the period for which the permit is necessary.

Schedule 5 · Content of Verification Report (Section 52 and subsection 53(1)(b))

1 #

Information with respect to the person responsible for a covered facility:

(b)their name (including any trade name or other name used by them) and civic address;

(c)the name, title, civic and postal addresses, telephone number and, if any, email address of their authorized official;

(d)the name, title, civic and postal addresses, telephone number and, if any, email address of a contact person, if different from the authorized official; and

(e)the federal Business Number assigned to them by the Canada Revenue Agency, if any.

2 #

Information with respect to the covered facility:

(a)its facility name and the civic address of its physical location, if any;

(c)its six-digit North American Industry Classification System (NAICS) Canada code;

(c.1)the covered facility certificate number that was issued to it;

(d)if applicable, the National Pollutant Release Inventory (NPRI) identification number assigned to it for the purposes of the Canadian Environmental Protection Act, 1999 and its Greenhouse Gas Reporting Program identification number; and

(e)in the case of an electricity generation facility or a covered facility referred to in paragraph 11(1)(c) that is composed, in part, of a unit or a group of units,

(i)the unique name for each unit,

(ii)the unit’s registration number under the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity, if any, and

(iii)the unit’s registration number under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, if any.

3 #

Information with respect to the verification:

(a)the name and civic address of the verification body, as well as the name, telephone number and email address of the lead verifier for the team that conducted the verification;

(b)the name and contact information of the accreditation organization by which the verification body is accredited and the date of the verification body’s accreditation;

(c)the names and functions of each member of the verification team;

(d)the version of the ISO Standard 14064-3 according to which the verification was conducted and a description of the objectives and scope of the verification and the verification criteria;

(e)a summary of the verification procedures conducted on the data and information supporting an annual report or a corrected report, including

(i)any assessments, data sampling, tests and reviews that were conducted during the verification,

(ii)any tests of the GHG information system and controls, and

(iii)the date of each visit conducted, for the purpose of section 51 of these Regulations;

(f)the total quantity of GHGs from a covered facility, other than a facility referred to in paragraph (g) or (h), during the compliance period and the production from each specified industrial activity during the compliance period that is used in the calculation of the emissions limit by the covered facility, as described in the annual report or corrected report, as the case may be, for the covered facility;

(f.1)if section 36.2 of these Regulations applies to a covered facility, the electricity generation attributed to the capacity added to the equipment and the electricity generation attributed to the capacity of the equipment before the additional capacity was added, as described in the annual report or corrected report, as the case may be;

(g)in the case of a verification of an electricity generation facility, the following information as described in its annual report or corrected report, as the case may be:

(i)the total GHGs from each unit within the electricity generation facility and the sum of the total GHGs from each unit within the facility during the compliance period, and

(ii)the production during the compliance period by each unit within the electricity generation facility for each of the industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 and the sum of the production from all units within the electricity generation facility;

(h)in the case of a covered facility, where the specified industrial activities are both the production of coal by mining coal deposits and, if composed of a unit or a group of units that are registered under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, the generation of electricity, as described in its annual report or corrected report, as the case may be,

(i)the total quantity of GHGs from the covered facility during the compliance period, expressed in CO₂e tonnes,

(ii)with respect to the production of coal by mining coal deposits, the production from each specified industrial activity during the compliance period that is used in the calculation of the emissions limit, and

(iii)with respect to the generation of electricity, the production during the compliance period by each unit within the electricity generation facility for each of the industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 and the sum of the production from all units within the electricity generation facility;

(h.1)if section 41.2 of these Regulations applies to an electricity generation facility or a covered facility referred to in paragraph (h), the electricity generated that is attributed to the capacity added to each unit as described in its annual report or corrected report, as the case may be:

(i)for each unit whose electricity generation capacity from gaseous fuels was increased by 50 MW or more and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, separately, the gross amount of electricity generated during the compliance period by each unit that is attributed to the capacity added to the unit and the gross amount of electricity generated that is attributed to capacity of the unit before the additional capacity was added, and

(ii)the sum, from all of the units referred to in subparagraph (i), of gross amount of electricity generated that is attributed to the capacity added to the units and of the electricity generated attributed to the capacity of the units before the additional capacity was added, separately;

(i)in the case of a covered facility that calculated an output-based standard in accordance with section 37 of these Regulations, the calculated output-based standard and the information associated with each term in the equation;

(j)a record of errors or omissions capable of influencing the assessment of the quantity of GHGs that are emitted from a covered facility during the applicable compliance period against its applicable GHG emissions limit, identified during the verification, in the data, information or methods used in the preparation of the annual report or corrected report, as the case may be, that indicates,

(i)with respect to each error and omission, if it may be quantified,

(A)in relation to GHG emissions, the number of CO₂e tonnes to which the error or omission corresponds, the related percentage calculated in accordance with subparagraph 49(2)(a)(i), (b)(i) or (c)(i) of these Regulations and a statement indicating whether the error or omission results in an understatement or overstatement, and

(B)in relation to the production of a given type of product, the quantification of that error or omission, expressed in the applicable unit of measurement, the related percentage calculated in accordance with paragraph 49(2)(d) of these Regulations and a statement indicating whether the error or omission results in an understatement or an overstatement, and

(ii)with respect to the aggregate of the errors or omissions in relation to GHG emissions, that may be quantified, the net result of the errors and omissions expressed in CO₂e tonnes, the related percentage calculated in accordance with subparagraph 49(2)(a)(ii), (b)(ii) or (c)(ii) of these Regulations and a statement indicating whether the net result is an understatement or an overstatement;

(k)a record of any corrections made by the person responsible as a result of any errors or omissions capable of influencing the assessment of the quantity of GHGs that are emitted from a covered facility during the applicable compliance period against its applicable GHG emissions limit, identified during the verification;

(l)a declaration, signed and dated by the lead verifier, stating that the requirements of section 50 of these Regulations have been complied with and that any real or potential conflicts of interest have been effectively managed;

(m)a declaration, signed and dated by a reviewer who is not a member of the verification team, stating their approval of the verification report, including the name, civic address, telephone number and email address of that reviewer; and

(n)a verification opinion by the verification body containing

(i)determinations as to whether a material discrepancy exists with respect to the total quantity of GHGs and the total production from each specified industrial activity used in the calculation of the emissions limit in the annual report or corrected report, as the case may be, and whether the annual report or corrected report was prepared in accordance with these Regulations, and

(ii)any qualifications or limitations the verification body has related to those determinations.

Item | Column 1 | Column 2 | Column 3 | Column 4 | Column 5Violator | Violation Type | Baseline Penalty Amount ($) | History of Non-compliance Amount ($) | Economic Gains Amount ($)1 | Individual | | | | (a)D | 400 | 1,200 | 400(b)E | 1,000 | 3,000 | 1,0002 | Other person | | | | (a)D | 2,000 | 6,000 | 2,000(b)E | 5,000 | 15,000 | 5,000

Schedule 5 · (Section 5, subsection 6(1) and section 8.1)

Related provisions

— SOR/2023-240, ss. 60(2), (3)Sections 5 and 6, subsections 2(5), 12(1), 14(1), 23(1) and 24(1), sections 25 and 26, subsection 45(1) and section 46 are deemed to have come into force on January 1, 2023 and apply from that date with respect to the 2023 compliance period and subsequent compliance periods.Section 1, subsections 2(1), (4), (7) and (9), section 11, subsection 12(2), section 13, subsections 14(2) and (3), sections 15 to 18, subsections 19(1), (2), (4) and (5), sections 20 to 22, subsections 23(2) and (3), 24(2), 28(1) and 29(2), sections 41 to 44, subsections 45(2) and (3), and sections 47 to 50, 53,55 and 56 come into force on January 1, 2024 and apply with respect to the 2024 compliance period and subsequent compliance periods. — SOR/2025-108, s. 4The definition on-site transportation emissions in subsection 2(1) of the Output-Based Pricing System Regulations, as it read before the day on which section 1 comes into force, continues to apply in respect ofany compliance period before 2025;the 2025 compliance period referred to in subsection 9(3) of the Output-Based Pricing System Regulations; andthe portion of a 2025 compliance period, other than the one referred to in paragraph (b), before April 1, 2025.In this section, compliance period has the same meaning as in section 169 of the Greenhouse Gas Pollution Pricing Act.

Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.