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

Marginal note:Hybrid configuration

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

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

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

Marginal note:Biomass — exclusion of CO₂

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

• Marginal note:Methane

  (2) CH₄ from venting or leakage emissions from an industrial activity set out in item 1, 2, 4 or 5, column 1, of Schedule 1 is not included in the quantity of CH₄ calculated in accordance with subsections 17(2) to (4).

Marginal note:Measuring device

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

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

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

Marginal note:De minimis

• 23 (1) Subject to subsection (2), the quantity of a GHG for any specified emission type does not need to be included in the determination made under subsections 17(2) to (4) or 20(2) to (5) if the quantity of the GHG, expressed in CO₂e tonnes, does not exceed 0.5% of the total quantity of GHGs determined under subsection 17(1) or 20(1).

• Marginal note:Limit

  (2) The sum of the quantities of GHGs not included under subsection (1) cannot exceed 0.5% of the total quantity of GHGs determined under subsection 17(1) or 20(1).

24 [Repealed, SOR/2021-197, s. 10]

Marginal note:Continuous Emissions Monitoring System

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

Permit To Use an Alternative Method

Marginal note:Alternative method

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

Marginal note:Application for permit

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

• Marginal note:Certification

  (2) The application must be accompanied by a certification, dated and signed by the person responsible for the covered facility or by their authorized official, stating that the information contained in the application is accurate and complete.

Marginal note:Conditions of issuance

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

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

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

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

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

• Marginal note:Period of validity

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

• Marginal note:Grounds for refusing permit

  (3) The Minister must refuse to issue a permit if the Minister has reasonable grounds to believe that the applicant has provided false or misleading information in support of their application.

• Marginal note:Renewal

  (4) The permit can only be renewed once.

Marginal note:Application for renewal

• 29 (1) The application for the renewal of a permit must include the information referred to in Schedule 4 and an explanation of the reasons why the plan that was submitted in the initial permit application was not implemented within the period identified in the initial application. The application for renewal must be submitted to the Minister at least 90 days before the expiration of the permit.

• Marginal note:Conditions for renewal

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

Marginal note:Grounds for revocation

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

• Marginal note:Notice of revocation

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

  • (a) written reasons for the revocation; and

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

• Marginal note:Date of revocation

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

Quantification of Production for Specified Industrial Activities

Marginal note:General rule

• 31 (1) Subject to subsection (4) and section 16, the production from a covered facility, other than an electricity generation facility, from each specified industrial activity during a compliance period is quantified

  • (a) in the case of production from a specified industrial activity set out in items 1 to 37 and 39 to 44, column 1, of Schedule 1, in the units of measurement set out in column 2 of Schedule 1 for that industrial activity, and in accordance with any requirements set out in the applicable part of Schedule 3;

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

    • (i) quantified in whole for the compliance period in accordance with the requirements set out in sections 3 and 4 of Part 38 of Schedule 3, or

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

  • (c) in the case of production from an additional industrial activity, in the units of measurement specified by the Minister for that activity.

• Marginal note:Measuring device

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

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

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

• Marginal note:Engineering estimates or mass balance

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

• Marginal note:Transitional provision

  (4) For the 2019 calendar year

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

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

Marginal note:Electricity generation facility

• 32 (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.

• Marginal note:Choose not to quantify

  (2) The person responsible for the electricity generation facility may choose not to quantify part or all of the quantity of electricity generated from one unit or a group of units.

33 [Repealed, SOR/2021-197, s. 11]

Ratio of Heat

Marginal note:Ratio of heat

• 34 (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:

    HF ÷ (HF + B)

    where

    HF

    is determined by the formula

    The summation of the products of QFi and HHVi for each fossil fuel type “i”

    

    where

    QF_i

    is the quantity of fossil fuel of type “i” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 4(2) of Part 38 of Schedule 3,

    HHV_i

    is the higher heating value of the fossil fuel of type “i” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with Quantification Methods, and

    i

    is the i^th fossil fuel type combusted in the facility during the compliance period, where “i” goes from 1 to n and where n is the number of types of fossil fuels combusted, and

    B

    is determined by the formula

    The summation of the products of QBBk and HHVk for each biomass fuel type “k”

    

    where

    QBB_k

    is the quantity of biomass fuel type “k” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 4(2) of Part 38 of Schedule 3 and Quantification Methods,

    HHV_k

    is the higher heating value for biomass fuel type “k” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with Quantification Methods, and

    k

    is the k^th biomass fuel type combusted in the facility during the compliance period, where “k” goes from 1 to m and where m is the number of types of biomass fuels combusted; and

  • (c) for an electricity generation facility, determined by the following formula when the thermal energy is produced from the combustion of both fossil fuels and biomass:

    HF ÷ (HF + B)

    where

    HF

    is determined by the formula

    The summation of the products of QFi and HHVi for each fossil fuel type “i”

    

    where

    QF_i

    is the quantity of fossil fuel of type “i” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 1(3) of Part 38 of Schedule 3,

    HHV_i

    is the higher heating value of the fossil fuel of type “i” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with Quantification Methods, and

    i

    is the i^th fossil fuel type combusted in the facility during the compliance period, where “i” goes from 1 to n and where n is the number of types of fossil fuel combusted, and

    B

    is determined by the formula

    The summation of the products of QBBk and HHVk for each biomass fuel type “k”

    

    where

    QBB_k

    is the quantity of biomass fuel type “k” combusted in the facility for the generation of thermal energy during the compliance period, determined in accordance with subsection 1(3) of Part 38 of Schedule 3,

    HHV_k

    is the higher heating value for biomass fuel type “k” combusted in the facility for the generation of thermal energy, during the compliance period determined in accordance with Quantification Methods, and

    k

    is the k^th biomass fuel type combusted in the facility during the compliance period, where “k” goes from 1 to m and where m is the number of types of biomass fuels combusted.

• Marginal note:Default ratio of heat

  (2) Despite paragraph (1)(b) or (c), if, for any reason beyond the control of the person responsible for a covered facility, the data required to quantify the ratio of heat from the combustion of fossil fuels are missing for a given period during the 2019 calendar year, 1 can be used as the ratio of heat from the combustion of fossil fuels.

Emission of GHGs

Marginal note:Calculation

• 35 (1) The person responsible for a covered facility must determine the quantity of GHGs that are emitted from the covered facility during a compliance period in accordance with the formula

  A – B

  where

  A

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

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

  • (b) in the case of a facility referred to in paragraph 11(1)(b), corresponding to the sum referred to in subparagraph 11(1)(b)(ii), and

  • (c) in the case of a facility referred to in paragraph 11(1)(c), corresponding to the sum referred to in subparagraph 11(1)(c)(i); and

  B

  is the quantity of CO₂ captured at the covered facility that is stored during the compliance period in a storage project, determined using Quantification Methods, expressed in CO₂e tonnes.

• Marginal note:CO₂ — quantity that may be subtracted

  (2) For the purposes of the description of B in subsection (1), the quantity of CO₂ may only be included in that description if it has been included in the description of A and has been permanently stored in a storage project that meets the following criteria:

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

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

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

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

• Marginal note:Biomass

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

• Marginal note:Deemed emission of CO₂

  (4) For greater certainty, the quantity of CO₂ from a covered facility that has been captured but has not been permanently stored in a storage project that meets the requirements of subsection (2) is deemed to have been emitted by the covered facility and is included in the quantity of GHGs that are included in the description of A in subsection (1).