Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations

Marginal note:Application of subsection 3(1) — substituted units

• 5 (1) For the purpose of subsection 3(1), a responsible person for a unit (referred to in this section as the “original unit”) that reaches the end of its useful life during a calendar year may apply to the Minister to have another unit (referred to in this section as the “substituted unit”) substituted for the original unit if the following conditions are satisfied:

  • (a) the substituted unit is an existing unit;

  • (b) the original unit and the substituted unit have a common owner who has an ownership interest of 50% or more in each of those two units;

  • (c) those two units are located in the same province; and

  • (d) the production capacity of the substituted unit, during the calendar year preceding the calendar year in which the application is made, was equal to or greater than the production capacity of the original unit during that preceding calendar year.

• Marginal note:Period of application

  (2) The application must be made

  • (a) if the original unit reaches the end of its useful life during a calendar year before 2015, in the period that begins on January 1, 2014 and that ends on May 31, 2014; and

  • (b) if the original unit reaches the end of its useful life during a calendar year after 2014, in the period that begins on January 1 and that ends on May 31 of that calendar year.

• Marginal note:Content of application

  (3) The application must include the registration number of the original unit and of the substituted unit and information, with supporting documentation, to demonstrate that the conditions of paragraphs (1)(b) to (d) are satisfied.

• Marginal note:Granting of substitution

  (4) The Minister must, within 30 days after receiving the application, grant the substitution if the following conditions are satisfied:

  • (a) the substituted unit is not a shut-down unit referred to in subsection 6(4);

  • (b) the substituted unit is not involved in an exemption granted under subsection 14(4); and

  • (c) the Minister is satisfied that the conditions of paragraphs (1)(a) to (d) are satisfied.

• Marginal note:Effect

  (5) On the granting of the substitution, subsection 3(1) applies in respect of the substituted unit rather than the original unit as of the later of

  • (a) July 1, 2015, and

  • (b) the beginning of the calendar year that follows the calendar year in which the application is made.

• Marginal note:Cessation of effect

  (6) The substitution referred to in subsection (5) ceases to have effect, and subsection 3(1) applies in respect of the original unit, as of the earliest of

  • (a) the calendar year that follows the day on which the responsible person for that unit and the substituted unit sends the Minister a notice indicating that they wish the substitution to no longer have an effect,

  • (b) the calendar year that follows the day on which the condition of paragraph (1)(b) is no longer satisfied,

  • (c) the calendar year that follows a calendar year during which the production capacity of the original unit was more than the production capacity of the substituted unit referred to in paragraph (1)(d),

  • (d) the calendar year that follows the end of the useful life of the substituted unit, and

  • (e) a calendar year during which electricity is produced by the substituted unit by means of thermal energy using fossil fuel other than coal, and not in conjunction with coal.