GREENHOUSE GAS POLLUTION PRICING ACTENVIRONMENTAL VIOLATIONS ADMINISTRATIVE MONETARY PENALTIES ACTOutput-Based Pricing System RegulationsP.C.2019-97420196
27
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 tosections 192, 193, 198 and 256 of the Greenhouse Gas Pollution Pricing Acta; andsection 5b of the Environmental Violations Administrative Monetary Penalties Actc.S.C. 2018, c. 12, s. 186S.C. 2018, c. 12, s. 196S.C. 2009, c. 14, s. 126InterpretationDefinition of facilitySubject to subsection (6), for the purposes of the Act and these Regulations, facility meansall of the following elements that are operated in an integrated way to carry out a specified industrial activity: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, andany other sites used in conjunction with the specified industrial activity, including a quarry, tailings pond, wastewater lagoon or pond and landfill; orthe 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.More than one person responsible — paragraph 1(a)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.More than one person responsible — paragraph 1(b)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.Single facilityIf 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.InterpretationSubject to subsection (6), with respect to a facilityany 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;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;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); andif 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.Special caseIn 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.SOR/2023-240, s. 1DefinitionsThe 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 meansin 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;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; andin 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, thatoperates according to the Brayton thermodynamic cycle and combusts fossil fuels to produce a net amount of motive power; orcombusts 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, eitherthe 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, orif 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)Incorporation by referenceUnless 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.AccreditationDespite 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.Quantification MethodsDespite 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.SOR/2021-197, s. 1SOR/2023-240, s. 2SOR/2025-108, s. 1PurposePurposeThese Regulations implement an output-based pricing system for industrial GHG emissions with respect to covered facilities where industrial activities are engaged in.OverviewSystem componentsThese Regulations set outthe 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;the methods to quantify the GHGs from a covered facility and the production from each specified industrial activity engaged in at the covered facility;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; andthe manner in which compensation is provided for excess emissions and surplus credits are issued.ApplicationQuantification of GHGsSubject to section 22, GHGs must be quantified for the following emission types:stationary fuel combustion emissions;industrial process emissions;industrial product use emissions;venting emissions;flaring emissions;leakage emissions;on-site transportation emissions;waste emissions; andwastewater emissions.Specified industrial activitiesOutput-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.SOR/2023-240, s. 3End of designationCondition not metIf 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.NoticeThe 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.SOR/2021-197, s. 2Cancellation following requestIf 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.SOR/2023-240, s. 4Ceasing to be a covered facilityA facility ceases to be a covered facility under the following circumstances:it has ceased production from all specified industrial activities for five consecutive compliance periods; orthe 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.Date of cessationA covered facility ceases to be a covered facility on the following date: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; andfor the purposes of paragraph (1)(b), on the later ofthe 30th day following the date the Minister receives the request from the person responsible for the covered facility, orthe date the covered facility ceases production.[Repealed, SOR/2021-197, s. 3]SOR/2021-197, s. 3Requirement for partial compliance periodSubject 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.SOR/2021-197, s. 4SOR/2025-108, s. 2ExceptionSection 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.SOR/2025-108, s. 2Covered FacilityCriteria — definition section 169 of ActFor 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 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; andthe primary activity engaged in at the facility is any of the industrial activities set out in column 1 of Schedule 1.SOR/2023-240, s. 5Remote communityUnless 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 facilitygenerates 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,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, andis not connected to a distribution system.SOR/2023-240, s. 6Compliance PeriodCompliance periodSubject 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.First compliance periodIf 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 followingthe 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, orthe calendar year during which the facility was designated as a covered facility under subsection 172(1) of the Act.Compliance period — 2025For 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.SOR/2021-197, s. 5SOR/2023-240, s. 7SOR/2025-108, s. 3Person ResponsiblePerson responsibleFor 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.Conclusive presumptionIf 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 tothe requirements set out in section 173 of the Act;the requirements set out in section 174 of the Act with respect to providing compensation;the requirement under subsection 176(1) of the Act to notify the Minister of any errors or omissions;the requirement under subsection 176(2) or 177(2) of the Act to submit any corrected report under section 62 or 63, respectively;the requirement under paragraph 178(1)(a) of the Act to provide any compensation;the requirements set out in section 181 of the Act;the requirement to maintain the OBPS account referred to in section 14;the requirement under subsection 187(5) of the Act to retain the information set out in section 47; andthe requirement to notify the Minister if there is a change in the person responsible, in accordance with section 48.Period of requirementsThe 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.Surplus creditsIf 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.SOR/2021-197, s. 6SOR/2023-240, s. 8Annual ReportContent of annual reportSubject 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:in respect of a covered facility, other than one referred to in paragraph (b) or (c),the total quantity of GHGs from the covered facility during the compliance period, expressed in CO2e tonnes, as determined in accordance with section 17, andthe covered facility’s production during the compliance period, from each specified industrial activity, quantified in accordance with section 31;in respect of an electricity generation facility,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,the sum of the total quantities of GHGs determined under subparagraph (i) for all units within the facility, expressed in CO2e tonnes,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, andthe 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;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,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,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, andwith respect to the generation of electricity,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, andthe 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;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);the GHG emissions limit applicable to the covered facility for the compliance period, calculatedin respect of a facility referred to in paragraph (a), in accordance with section 36, 36.1 or 36.2,in respect of a facility referred to in paragraph (b), in accordance with section 41, 41.1 or 41.2, andin respect of a facility referred to in paragraph (c), in accordance with section 42; andthe 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.Increased electricity generation capacityFor 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).Increased electricity generation capacityFor 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,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; andthe 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.Exception — new covered facilitiesParagraphs (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.New additional industrial activityFor 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.SOR/2021-197, s. 7SOR/2023-240, s. 9Additional content – thermal energyIf 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 reportthe quantity of thermal energy, expressed in gigajoules, as well as the thermal energy’s temperature and pressure,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, orbought from another covered facility during the compliance period, as determined by the quantity of thermal energy on sales receipts or by another objective method; andthe ratio of heat from the combustion of fossil fuel to produce that thermal energy, calculated in accordance with section 34.Additional content – gypsum productsThe 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.Additional content – hydrogen gasIf 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.Submission of annual reportThe 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.Correction of errors or omissionsThe 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.SOR/2020-114, s. 1SOR/2023-240, s. 10Account openingThe 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 ConfidentialityContent of requestA request for confidentiality submitted for the purposes of section 254 of the Act must provide the following information:the information to which the request pertains, clearly identified;the reason for the request from among those specified in paragraphs 254(a) to (c) of the Act; andthe 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.QuantificationVariation of General RulesProduction of petrochemical products as a by-productThe 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.Additional production of natural gas liquidsIf 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: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; andfor 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.Additional production of hydrogen gasIf 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: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; andfor 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.Additional production of metal tubesIf 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: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; andfor 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.Additional production of limeIf 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: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; andfor 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.Additional production of electricityIf 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: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; andfor 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.Additional production of evaporated saltIf 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: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; andfor 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.Pyrometallurgical smelting of zinc and leadIf 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: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; andfor 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.Pyrometallurgical smelting and refining of leadIf 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: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; andfor 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.Additional production of precious metalsIf 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: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; andfor 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.Additional production of petrochemicalsSubject 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: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; andfor 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.Parallel productionIf 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.Additional production of precious metalsIf 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: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(f), column 1, of Schedule 1; andfor 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.SOR/2021-197, s. 8SOR/2023-240, s. 11Quantification of GHGsTotal GHGsSubject 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 formulaThe summation of the products of Ej and GWPj for each greenhouse gas type “j”, summed for all specified emissions types “i”whereEjis the quantity of each GHG type “j” from the covered facility during a compliance period, for each specified emission type, determined in accordance with subsections (2) to (4);GWPjis the global warming potential of the GHG type “j” applicable to the compliance period and, if it is used to determine the quantities referred to in the descriptions of A, C and F in subsection 37(1), for the reference year “i”, the global warming potential applicable to the compliance period in respect of which the output-based standard is being calculated;iis the ith specified emission type, where “i” goes from 1 to n and where n is the number of the facility’s specified emission types; andjis the jth GHG type, where “j” goes from 1 to m and where m is the number of greenhouse gases.Quantity of each GHGThe 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: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;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; andany quantity of that GHG that is not referred to in paragraph (a) or (b).Sampling, analysis and measurement requirementsIf 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.Missing dataFor 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.[Repealed, SOR/2023-240, s. 12]Biomass — exclusion of CH4 and N2OFor 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.SOR/2021-197, s. 9SOR/2023-240, s. 12Additional generation of electricityFor 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.SOR/2023-240, s. 13[Repealed, SOR/2023-240, s. 13]Total emissions per unit — electricitySubject 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 formulaThe summation of the products of Ej and GWPj for each greenhouse gas type “j”, summed for all specified emissions types “i”whereEjis the quantity of each GHG type “j” from the unit during a compliance period for each specified emission type determined in accordance with subsections (2) to (5);GWPjis the global warming potential of the GHG type “j” applicable to the compliance period;iis the ith specified emission type, where “i” goes from 1 to n and where n is the unit’s number of specified emission types;jis the jth GHG type, where “j” goes from 1 to m and where m is the number of greenhouse gases.Quantity of each GHGThe 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: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; andany quantity of the GHG that is not referred to in paragraph (a).Apportioning GHGsFor 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.Sampling, analysis and measurement requirementsIf 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.Missing dataFor 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.Biomass — exclusion of CH4 and N2OFor 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.SOR/2023-240, s. 14Hybrid configurationFor 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: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; andwith 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.Biomass — exclusion of CO2CO2 from biomass is not included in the quantity of CO2 calculated in accordance with subsections 17(2) to (4) or 20(2) to (5).MethaneCH4 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).Measuring deviceUnless 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 mustbe 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; andmaintain accuracy within plus or minus 5%.SOR/2023-240, s. 15De minimisSubject 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).LimitThe sum of the quantities of GHGs not included under subsection (1) cannot exceed 0.5% of the total quantity of GHGs determined under subsection 17(1) or 20(1).[Repealed, SOR/2021-197, s. 10]Continuous Emissions Monitoring SystemIf 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.SOR/2023-240, s. 16Permit To Use an Alternative MethodAlternative methodDespite 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.SOR/2023-240, s. 17Application for permitAn application for a permit must be submitted to the Minister and must contain the information referred to in Schedule 4.CertificationThe 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.Conditions of issuanceThe Minister must issue the permit to use a method of quantification other than the method set out in Quantification Methods ifthe 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;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;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; andthe requested term of the permit does not exceed the period for which the permit is necessary.Period of validityThe term of the permit must not exceed 24 months.Grounds for refusing permitThe 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.RenewalThe permit can only be renewed once.SOR/2023-240, s. 18Application for renewalThe 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.Conditions for renewalThe Minister must renew the permit if the conditions set out in subsection 28(1) are met.Grounds for revocationThe Minister must revoke the permit if the Minister has reasonable grounds to believe that the permit holder has provided false or misleading information.Notice of revocationBefore revoking a permit, the Minister must provide the permit holder withwritten reasons for the revocation; andan opportunity to make written representations in respect of the revocation.Date of revocationThe 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 ActivitiesGeneral ruleSubject 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 quantifiedin 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;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 isquantified in whole for the compliance period in accordance with the requirements set out in sections 3 and 4 of Part 38 of Schedule 3, ornot quantified, in whole or in part, for the compliance period; andin the case of production from an additional industrial activity, in the units of measurement specified by the Minister for that activity.Measuring deviceAny measuring device that is used to determine a quantity for the purposes of these Regulations mustbe 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; andmaintain accuracy within plus or minus 5%.Engineering estimates or mass balanceIf it is not possible to directly measure production using a measuring device, it may be quantified using engineering estimates or mass balance.Transitional provisionFor the 2019 calendar yearthe production quantified in accordance with paragraphs (1)(a) and (c), must be accurate within ± 5%; andthe 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.SOR/2023-240, s. 19Electricity generation facilitySubject 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: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; andif 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.Choose not to quantifyThe 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.SOR/2023-240, s. 20[Repealed, SOR/2021-197, s. 11]Ratio of HeatRatio of heatThe ratio of heat from the combustion of fossil fuels during a compliance period isequal to 1 when the thermal energy is produced from the combustion of only fossil fuels;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)whereHFis determined by the formulaThe summation of the products of QFi and HHVi for each fossil fuel type “i”whereQFiis 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,HHViis 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, andiis the ith fossil fuel type combusted in the facility during the compliance period, where “i” goes from 1 to n and where n is the number of types of fossil fuels combusted, andBis determined by the formulaThe summation of the products of QBBk and HHVk for each biomass fuel type “k”whereQBBkis 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,HHVkis 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, andkis the kth biomass fuel type combusted in the facility during the compliance period, where “k” goes from 1 to m and where m is the number of types of biomass fuels combusted; andfor 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)whereHFis determined by the formulaThe summation of the products of QFi and HHVi for each fossil fuel type “i”whereQFiis 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,HHViis 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, andiis the ith fossil fuel type combusted in the facility during the compliance period, where “i” goes from 1 to n and where n is the number of types of fossil fuel combusted, andBis determined by the formulaThe summation of the products of QBBk and HHVk for each biomass fuel type “k”whereQBBkis 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,HHVkis 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, andkis the kth biomass fuel type combusted in the facility during the compliance period, where “k” goes from 1 to m and where m is the number of types of biomass fuels combusted.Default ratio of heatDespite 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.SOR/2023-240, s. 21Emission of GHGsCalculationThe 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 formulaA – BwhereAis the total quantity of GHGs from the covered facility, expressed in CO2e tonnes, during the compliance period,in the case of a facility referred to in paragraph 11(1)(a), determined in accordance with section 17,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), andin the case of a facility referred to in paragraph 11(1)(c), corresponding to the sum referred to in subparagraph 11(1)(c)(i); andBis 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.CO2 — quantity that may be subtractedFor 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:the geological site into which the CO2 is injected isa deep saline aquifer for the sole purpose of storage of CO2, ora depleted oil reservoir for the purpose of enhanced oil recovery; andthe 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.BiomassThe quantity of CO2 from biomass is not included in the amount determined for B in subsection (1).Deemed emission of CO2For 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).SOR/2021-197, s. 12SOR/2023-240, s. 22Emissions LimitGeneral ruleSubject 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 formulaThe summation of the products of Ai and the result of Bi minus the product of Bi, C and D minus 2022 for each specified industrial activity “i”.whereAiis the covered facility’s production from each specified industrial activity “i” during the compliance period, quantified in accordance with section 31;Biis the following output-based standard applicable to the specified industrial activity “i”, as the case may be:for a specified industrial activity set out in column 1 of Schedule 1 and for which an output-based standard is set out in column 3 of that Schedule, that standard,for a specified industrial activity set out in column 1 of Schedule 1 and for which column 3 of that Schedule sets out that an output-based standard must be calculated in accordance with section 37, the output-based standard calculated in accordance with that section, andfor an additional industrial activity, the output-based standard calculated in accordance with section 37;Cis the following tightening rate applicable to the specified industrial activity “i”, as the case may be:0% for the specified industrial activity set out in item 38, column 1, of Schedule 1,1% for the specified industrial activities set out in paragraph 3(c) and items 7, 8, 13, 17, 19, 20, 34, 40, 41 and 43, column 1, of Schedule 1, and2% for all other specified industrial activities;Dis the calendar year that corresponds to the compliance period; andiis the ith specified industrial activity where “i” goes from 1 to n and where n is the total number of specified industrial activities engaged in at the covered facility.Ethanol productionFor 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.OilseedsFor 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.Clarification — fertilizerFor 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.New additional industrial activityFor 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.Output-based standardFor 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.SOR/2023-240, s. 23New electricity production — gaseous fuelDespite 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: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; andthe covered facility has an electricity generation capacity equal to or greater than 50 MW from that equipment.Decreasing output-based standardThe 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 be370 CO2e tonnes per unit of measurement, for the 2021 compliance period,329 CO2e tonnes per unit of measurement, for the 2022 compliance period,288 CO2e tonnes per unit of measurement, for the 2023 compliance period,247 CO2e tonnes per unit of measurement, for the 2024 compliance period,206 CO2e tonnes per unit of measurement, for the 2025 compliance period,164 CO2e tonnes per unit of measurement, for the 2026 compliance period,123 CO2e tonnes per unit of measurement, for the 2027 compliance period,82 CO2e tonnes per unit of measurement, for the 2028 compliance period,41 CO2e tonnes per unit of measurement, for the 2029 compliance period, and0 CO2e tonnes per unit of measurement, for the 2030 compliance period and subsequent compliance periods.Increased capacity of electricity generationSubject 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).Different output-based standardThe GHG emissions limit that applies to the covered facility for a compliance period, expressed in CO2e tonnes, is determined in accordance with the formulaThe summation of the products of Ai and the result of Bi minus the product of Bi, C and D minus 2022 for each specified industrial activity “i”, plus the summation of the products of E and F and the products of G and F and the products of H and I.whereAiis the covered facility’s production during the compliance period, quantified in accordance with section 31,from each specified industrial activity “i”, except the industrial activity set out in paragraph 38(c), column 1, of Schedule 1, andfrom the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, other than from equipment referred to in the descriptions of E, G and H;Biis the following output-based standard applicable to the specified industrial activity “i”, as the case may be:for a specified industrial activity set out in column 1 of Schedule 1 and for which an output-based standard is set out in column 3 of that Schedule, that standard,for a specified industrial activity set out in column 1 of Schedule 1 and for which column 3 of that Schedule sets out that an output-based standard must be calculated in accordance with section 37, the output-based standard calculated in accordance with that section, andfor an additional industrial activity, the output based standard calculated in accordance with section 37;Cis the following tightening rate applicable to the specified industrial activity “i”, as the case may be:0% for the specified industrial activity set out in item 38, column 1, of Schedule 1,1% for the specified industrial activities set out in paragraph 3(c) and items 7, 8, 13, 17, 19, 20, 34, 40, 41 and 43, column 1, of Schedule 1, and2% for all other specified industrial activities;Dis the calendar year that corresponds to the compliance period;Eis the gross amount of electricity generated during the compliance period by the equipment that started generating electricity from gaseous fuels on or after January 1, 2021, and is designed to operate at a thermal energy to electricity ratio of less than 0.9, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 31;Fis the output-based standard set out in subsection 36.1(2) that is applicable for the compliance period;Gis, for equipment with increased electricity generation capacity and a thermal energy to electricity ratio of less than 0.9, other than equipment referred to in the description of E, the gross amount of electricity generated during the compliance period attributed to the capacity added to the equipment, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 31 and subsection (3);His, for equipment with increased electricity generation capacity and a thermal energy to electricity ratio of less than 0.9, other than equipment referred to in the description of E, the gross amount of electricity generated during the compliance period attributed to the capacity of the equipment before the additional capacity was added, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 31 and subsection (3);Iis the output-based standard set out in item 38, column 3, of Schedule 1 that is applicable to the specified industrial activity set out in paragraph 38(c), column 1 of that Schedule; andiis the ith specified industrial activity where “i” goes from 1 to n and where n is the total number specified industrial activities engaged in at the covered facility.Apportionment of electricity generationFor 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.Increased capacity — ruleFor 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.SOR/2023-240, s. 24PresumptionIf 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 iffor 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; orfor 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.Calculated output-based standardSubject 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 formulaThe quotient where the numerator is the summation of A minus the result of the summation of B, C and F minus G for each reference year “i”, and the denominator is the summation of D for each reference year “i”, and then the quotient is multiplied by E.whereAis the quantity of GHGs that are emitted from the covered facility for reference year “i”, determined in accordance with section 35, expressed in CO2e tonnes;Bis the allocation for net thermal energy for reference year “i” and isdetermined by the formula0.062 CO2e tonnes/gigajoules × (M − N) × Owhere Mis the quantity of thermal energy produced by the covered facility that was sold to another covered facility in reference year “i”, as indicated by the quantity of thermal energy on sales receipts or determined by another objective method, expressed in gigajoules,Nis the quantity of thermal energy that was bought from other covered facilities and not subsequently sold in reference year “i”, as indicated by the quantity of thermal energy on sales receipts or by another objective method, expressed in gigajoules, andOis the ratio of heat from the combustion of fossil fuels to produce thermal energy and is,if M is greater than N, the ratio of heat determined under section 34 for reference year “i” for the covered facility, orif M is less than N, the ratio of heat determined under section 34 for reference year “i” for the covered facility from which the thermal energy was purchased, and0 for all reference years if the absolute value of the quotient obtained by dividing the sum of the results determined under paragraph (a) for each reference year “i” by the number of reference years is less than the quotient determined by the formulaThe product of 0.015 by the quotient where the numerator is the sum of A for each reference year “i” and the denominator is n.Cis the total quantity of GHGs from all specified industrial activities engaged in at the facility for reference year “i” other than the industrial activity for which the output-based standard is being calculated, determined in accordance with sections 17 and 18;Dis the production from a covered facility from the specified industrial activity for which the output-based standard is being calculated for reference year “i” quantified in accordance with section 31;Eis the GHG emissions reduction factor applicable to the specified industrial activity for which the output-based standard is being calculated and is95% for a specified industrial activity set out in paragraph 7(c), 8(b) or (c) or 20(d), column 1, of Schedule 1,90% for a specified industrial activity set out in item 22 or paragraph 23(a) or 29(d), column 1, of Schedule 1, and80% for all other specified industrial activities;Fis the total quantity of GHGs from an activity engaged in at the facility, for reference year “i”, that is not a specified industrial activity, determined in accordance with sections 17 and 18, ifwith respect to a covered facility whose primary activity is an industrial activity,that quantity accounts for 20% or more of the total quantity of GHGs from a covered facility for that reference year, determined in accordance with sections 17 and 18, orthe revenue, in dollars, attributable to the sale of the product produced by the facility from that industrial activity accounts for 20% or more of the revenue, in dollars, attributable to the sale of all products produced by the facility from all of the facility’s industrial activities for that reference year, orwith respect to a covered facility whose primary activity is not an industrial activity,the activity is not an industrial activity, orthe quantity of GHGs from an industrial activity accounts for 20% or more of the total quantity of GHGs from a covered facility, for that reference year, determined in accordance with sections 17 and 18; andGis the quantity of CO2 determined for the purposes of the description B in section 35, from all activities engaged in at the facility for reference year “i” other than the industrial activity for which the output-based standard is being calculated; andiis the ith reference year, where “i” goes from 1 to n and where n is the number of reference years, determined in accordance with subsection (2).Reference yearsSubject 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 areexcept for a covered facility referred to in paragraph (b),the 2017, 2018 and 2019 calendar years, if the data are available for those years,the three calendar years preceding the compliance period, if the data are not available for the 2017, 2018, and 2019 calendar years, orthe compliance period, if the data are not available for the years specified in subparagraphs (i) and (ii); andfor 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), eitherthe two calendar years preceding the compliance period for which the emissions limit is calculated, if the data are available for those years,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), orthe compliance period for which the emissions limit is being calculated, if that data are not available for those preceding calendar years.New activityFor 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 sectionthe applicable reference years with respect to that specified industrial activity are that compliance period and the two calendar years following it; andthe 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.Attributing of emissionsFor 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.Thermal energy allocationFor 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.RoundingThe result from the calculation under subsection (1) is rounded to three significant figures.SOR/2021-197, s. 13SOR/2023-240, s. 25Exception — steelFor 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.For greater certaintyFor 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.Recalculation of output-based standardIf 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.SOR/2023-240, s. 26[Repealed, SOR/2023-240, s. 27]ElectricitySubject 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 formulaThe summation of the products of Aj and Bj for each industrial activity referred to in paragraphs 38(a) to (c) of Schedule 1 “j”, summed for each unit “i” within the facilitywhereAjis the gross amount of electricity generated during the compliance period quantified in accordance with section 32, for each unit “i” 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 electricity generation facility;Bjis the output-based standard applicable to each specified industrial activity set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at each unit “i” and that is set out in column 3;iis the ith unit, where “i” goes from 1 to n and where n is the total number of units within the electricity generation facility generating electricity using fossil fuels; andjis the jth activity, where “j” goes from 1 to m and where m is the total number of industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at the facility.Output-based standard — exceptionThe 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 itis registered under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, or it was at any given time in 2018; andused solid fuel to generate electricity in 2018.SOR/2021-197, s. 14New electricity production facility — gaseous fuelIf 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):at least one unit within the facility generates electricity from gaseous fuels; andat 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.Different output-based standardThe GHG emissions limit that applies to the electricity generation facility, expressed in CO2e tonnes, is determined for each compliance period in accordance with the formulaThe summation of the products of Aj and Bj for each industrial activity referred to in paragraphs 38(a) to (c) of Schedule 1 “j”, summed for each unit “i” within the facility, plus the summation of the products of C and D, summed for each unit “k” within the facility, plus the summation of the products of E and F, summed for each unit “l” within the facilitywhereAjis, for each unit “i” within the electricity generation facility that generates electricity from solid fuel or liquid fuel, the gross amount of electricity generated during the compliance period, quantified in accordance with section 32, from the specified industrial activities set out in paragraph 38(a) and (b), column 1, of Schedule 1 that are engaged in at the unit;Bjthe output-based standard applicable to each specified industrial activity set out in paragraphs 38(a) and (b), column 1, of Schedule 1 that the are engaged in at each unit “i” and that is set out in column 3;Cis, for each unit “k” within the electricity generation facility that generates electricity from gaseous fuels, that has an electricity generation capacity equal to or greater than 50 MW 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 from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit quantified in accordance with section 32;Dis the output-based standard applicable and is370 CO2e tonnes per unit of measurement, for compliance period 2021,329 CO2e tonnes per unit of measurement, for compliance period 2022,288 CO2e tonnes per unit of measurement, for compliance period 2023,247 CO2e tonnes per unit of measurement, for compliance period 2024,206 CO2e tonnes per unit of measurement, for compliance period 2025,164 CO2e tonnes per unit of measurement, for compliance period 2026,123 CO2e tonnes per unit of measurement, for compliance period 2027,82 CO2e tonnes per unit of measurement, for compliance period 2028,41 CO2e tonnes per unit of measurement, for compliance period 2029, and0 CO2e tonnes per unit of measurement, for compliance period 2030 and subsequent compliance periods; andEis, for each unit “l” within the electricity generation facility generating electricity from gaseous fuels, that has an electricity generation capacity of less than 50 MW or is designed to operate at a thermal energy to electricity ratio of 0.9 or greater, the gross amount of electricity generated during the compliance period from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, that is engaged in at the unit quantified in accordance with section 32;Fthe output-based standard applicable to each specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that are engaged in at each unit “i” and that is set out in column 3;iis the ith unit, where “i” goes from 1 to n and where n is the total number of units within the electricity generation facility generating electricity using solid fuel or liquid fuel;jis the jth activity, where “j” goes from 1 to m and where m is the total number of industrial activities set out in paragraphs 38(a) to (b), column 1, of Schedule 1 that is engaged in at the electricity generation facility;kis the kth unit, where “k” goes from 1 to r and where r is the total number of units within the electricity generation facility, generating electricity using gaseous fuel, that have an electricity generation capacity equal to or greater than 50 MW and are designed to operate at a thermal energy to electricity ratio of less than 0.9;lis the lth unit, where “l” goes from 1 to s and where s is the total number of units within the electricity generation facility, generating electricity using gaseous fuel, that have an electricity generation capacity of less than 50 MW or are designed to operate at a thermal energy to electricity ratio of 0.9 or greater.SOR/2021-197, s. 15Increased capacity of electricity generationIf, 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).Different output-based standardThe GHG emissions limit that applies to the electricity generation facility, expressed in CO2e tonnes, is determined for each compliance period in accordance with the formulaThe summation of the products of Aj and Bj for each industrial activity referred to in paragraphs 38(a) to (c) of Schedule 1 “j”, summed for each unit “i” within the facility, plus the summation of the products of C and D, summed for each unit “k” within the facility, plus the summation of the products of E and D plus the products of F and G, summed for each unit “l” within the facilitywhereAjis the gross amount of electricity generated during the compliance period, quantified in accordance with section 32, for each of the following units:for each unit “i” within the electricity generation facility, from each of the specified industrial activities set out in paragraphs 38(a) and (b), column 1, of Schedule 1 that are engaged in at the electricity generation facility,from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit, for each unit “i” within an electricity generation facility thatwas generating electricity prior to the facility’s increase in electricity generation capacity, except units referred to in the description of E or F, andthat began generating electricity on or after January 1, 2021, if the unit has an electricity generation capacity of less than 50 MW or designed to operate at a thermal energy to electricity ratio equal to or greater than 0.9;Bjthe output-based standard applicable to each of the specified industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at each unit “i” and that is set out in column 3;Cis, for each unit “k” within the electricity generation facility that started generating electricity from gaseous fuels on or after January 1, 2021, that has an electricity generation capacity equal to or greater than 50 MW 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 from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit quantified in accordance with section 32;Dis the output-based standard set out in the description of D in subsection 41.1(2) that is applicable to the compliance period in question;Eis, for each unit “l” that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity 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 that is attributed to the capacity added to a unit, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit, quantified in accordance with section 32 and subsection (3);Fis, for each unit “l” that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity 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 that is attributed to the capacity of the unit before the additional capacity was added, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, that is engaged in at the unit, quantified in accordance with section 32 and subsection (3);Gis the output-based standard applicable to the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 and set out in column 3;iis the ith unit, where “i” goes from 1 to n and where n is the total number of units within the electricity generation facility generating electricity using fossil fuels, except units referred to in the description of k and l;jis the jth activity, where “j” goes from 1 to m and where m is the total number of industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at the electricity generation facility;kis the kth unit, where “k” goes from 1 to r and where r is the total number of units within the electricity generation facility that started generating electricity from gaseous fuels on or after January 1, 2021, that have an electricity generation capacity equal to or greater than 50 MW and that are designed to operate at a thermal energy to electricity ratio of less than 0.9; andlis the lth unit, where “l” goes from 1 to s and where s is the total number of units that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity was increased by 50 MW or more and that are designed to operate at a thermal energy to electricity ratio of less than 0.9.Apportionment of electricity generationFor 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.Increased capacity — ruleFor 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.SOR/2021-197, s. 16PresumptionFor 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.Coal and electricityThe 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.New covered facilitiesIf, 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.Primary activitySubsection (1) only applies to a covered facility whose primary activity is a specified industrial activity.New electricity generation facilitySubsection (1) does not apply to an electricity generation facility that begins generating electricity on or after January 1, 2021.Date of productionFor 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.AssessmentAssessment of emissions against emissions limitThe 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 formulaA – BwhereAis the quantity of GHGs that are emitted from the covered facility during the compliance period, expressed in CO2e tonnes, determined in accordance with subsection 35; andBis the applicable GHG emissions limit for the covered facility for the compliance period, expressed in CO2e tonnes, determined in accordance with sections 36, 36.1, 36.2, 41, 41.1, 41.2 or 42.RoundingThe 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.New covered facilitiesIf, 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.Primary activitySubsection (2) only applies to a covered facility whose primary activity is a specified industrial activity.New electricity generation facilitySubsection (2) does not apply to an electricity production facility that begins generating electricity on or after January 1, 2021.Date of productionFor 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.SOR/2021-197, s. 17RecordsContentThe 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 periodthe total quantity of GHGs from each specified emission type;the quantity of each GHG from each specified emission type;all data used for a calculation made under these Regulations, for each specified emission type and GHG, including data used to estimate missing data;all sampling, analysis and measurement data for each specified emission type and GHG;the methods used to quantify, sample, analyze and measure each specified emission type;the methods and data used to quantify production;the procedural changes made in data collection and calculations and changes to measuring devices used to quantify GHGs or production;the quantity of each GHG not included in the total quantity of GHGs under section 23 and the relevant specified emission type;the quantities of CO2 captured, transported or stored expressed in tonnes and the data used to quantify that CO2;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;documents that demonstrate the maintenance, calibration and operation of measuring devices was done in accordance with these Regulations;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,the sales invoices or receipts for the thermal energy bought or sold,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, andthe 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;any errors or omissions identified and the measures taken to correct them, with all supporting data and documentation;a copy of all permits issue pursuant to section 28; anddocumentation 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.Continuous Emissions Monitoring SystemFor 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.Availability of informationThe record must be kept within 30 days after the information becomes available.Provision of recordsA 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.SOR/2023-240, s. 28Electronic submissionAny 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.Provision on paperIf 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.Retention of informationThe 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.Location of recordsThe 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.Relocation of recordsIf 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.SOR/2021-197, s. 18Obligation to notifyThe person responsible for the covered facility must notify the Minister, in writing, within 30 days after a change to any of the following:the administrative information set out in sections 1 and 2 of Schedules 2 and 5 and provided to the Minister under these Regulations;the facility’s perimeter;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; orthe information provided in an application for a permit under section 27, if the permit is still valid.Verification ReportVerification bodyTo be authorized to verify an annual report or a corrected report, a third party mustmeet the following accreditation requirements: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,it has a scope of accreditation that is sufficient to verify the annual report or the corrected report, andit is not suspended by an accreditation organization that issued an accreditation; andconduct 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 whethera 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, andin the verification body’s opinion, the annual report or corrected report was prepared in accordance with these Regulations.Material discrepancyFor the purpose of the verification of a covered facility’s annual report or corrected report, a material discrepancy exists whenwith respect to GHGs from covered facilities that have emitted a quantity of GHGs of less than 500 kt of CO2e during the compliance period,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%:A ÷ B × 100whereAis the absolute value of the overstatement or understatement resulting from the error or omission, expressed in CO2e tonnes, andBis the total quantity of GHGs reported in the annual report or corrected report, expressed in CO2e tonnes, andin 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%:A ÷ B × 100whereAis the absolute value of the net result of all overstatements and understatements resulting from all errors and omissions, expressed in CO2e tonnes, andBis the total quantity of GHGs reported in the annual report or corrected report, expressed in CO2e tonnes;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,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 2%:A ÷ B × 100whereAis the absolute value of the overstatement or understatement resulting from an error or omission, expressed in CO2e tonnes, andBis the total quantity of GHGs reported in the annual report or corrected report, expressed in CO2e tonnes, andin 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 2%:A ÷ B × 100whereAis the absolute value of the net result of all overstatements and understatements resulting from all errors and omissions, expressed in CO2e tonnes, andBis the total quantity of GHGs reported in the annual report or corrected report, expressed in CO2e tonnes; andwith 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%:A ÷ B × 100whereAis the absolute value of the overstatement or understatement resulting from an error or omission expressed in the applicable unit of measure, andBis the production from the specified industrial activity in question that is reported in the annual report or corrected report, expressed in the applicable unit of measure.SOR/2021-197, s. 19SOR/2023-240, s. 29Conflict of interestThe 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.Consecutive verificationsThe 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.Maximum number of verificationsThe 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.SOR/2021-197, s. 20Facility visitSubject 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:it is the initial verification of the covered facility under these Regulations or by the verification body;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;in the last annual report for the covered facility prepared under these Regulations, the verification body made a determinationthat 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, orthat the annual report was not prepared in accordance with these Regulations; orthe verification body is of the opinion a site visit is required.Other visitsIf 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.SOR/2023-240, s. 30Content of verification reportA 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 UnitsMinister’s InterventionDeterminationThe Minister may establish the emissions limit or determine the quantity of GHGs emitted from the covered facility for the compliance period ifthere 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;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;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%; orthe annual report for the compliance period was not submitted to the Minister.CriteriaThe 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:the annual report and verification report for the compliance period and, if necessary, any previous reports;any report made in accordance with the Notice with respect to reporting of greenhouse gases (GHGs) published under the Canadian Environmental Protection Act, 1999;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;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; andany other information provided, on the Minister’s request, by the person responsible for the covered facility or the verifier.NoticeThe 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.SOR/2023-240, s. 31Compensation and Issuance of Surplus CreditsExcess emissionsFor 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.Excess emissions charge paymentAny compensation that is provided by means of an excess emissions charge payment must be made electronically to the Receiver General for Canada.Surplus creditsAny compensation that is provided by means of a remittance of surplus credits must be made in the manner set out in section 70.Other compliance unitsAny 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.Minimum percentage — chargeA 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.SOR/2021-197, s. 21Regular-rate compensation deadlineFor 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.ExceptionDespite subsection (1), for the compliance period that ends on December 31, 2019, the regular-rate compensation deadline is April 15, 2021.Increased-rate compensation deadlineFor 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).ExceptionDespite subsection (2), for the compliance period that ends on December 31, 2019, the increased-rate compensation deadline is June 15, 2021.Notice referred to in subsection 53(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 duethe regular-rate compensation deadline is 45 days after the day on which the notice is issued; andthe increased-rate compensation deadline is 60 days after the day on which the regular-rate compensation deadline under paragraph (a) expires.SOR/2020-114, s. 2Compensation informationA person that is responsible for a covered facility must, at the time compensation is provided, submit to the Minister the following information:the covered facility certificate number;the provision of the Act under which the compensation is being provided;the compliance period for which compensation is being provided;the quantity of GHGs emitted in excess of the emissions limit in respect of which the compensation is provided, expressed in CO2e tonnes;the details of any excess emissions charge payment, includingthe amount in dollars paid to the Receiver General for Canada,the applicable rate, andthe date of payment;the details of any surplus credits or offset credits remitted, including, for each type of credit,the number remitted,the date of the remittance transaction,the remittance transaction number,the serial numbers, andthe date or dates on which they were issued; andthe details of any units or credits, recognized as compliance units, remitted, includingthe number remitted,the province or program authority referred to in subsection 78(1) that issued the units or credits,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,the serial numbers assigned to them by the province or program authority referred to in subsection 78(1),the start date of the offset project for which the unit or credit was issued,the year in which the GHG reduction or removal occurred for which the unit or credit was issued,the offset protocol applicable to the project for which the unit or credit was issued, including the version number and publication date, andthe name of the accredited verification body that verified the units or credits.SOR/2023-240, s. 32Surplus creditsFor 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.ExceptionThe 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.SOR/2021-197, s. 22SOR/2023-240, s. 33Errors and OmissionsIdentification by person responsibleThe 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 whetherthe 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; andthe 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.Corrected reportIf 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.ContentThe corrected report must include the information referred to in sections 11 and 12 and, under a heading, the following information:the information provided in the annual report that required correction and a description of the corrections made;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; anda description of the measures that have been and will be implemented to avoid future errors or omissions of the same type.SOR/2023-240, s. 34Identification by the MinisterSubsection 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:in the case of a corrected report, 60 days after the day on which the Minister required it; andin the case of a verified corrected report, 120 days after the day on which the Minister required it.Verification reportThe corrected report submitted under paragraph (1)(b) must be submitted with a verification report prepared in accordance with section 52.SOR/2023-240, s. 35Change in obligationsFor 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.Revised compensationFor 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.Issuance of surplus creditsFor 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,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; orthe 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.ExceptionThe Minister will not issue surplus credits ifa 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; orthe emissions limit or quantity of GHGs emitted from the covered facility is determined by the Minister for the compliance period under section 53.SOR/2023-240, s. 36[Repealed, SOR/2023-240, s. 36]Excess Surplus credits issuedIf 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.Insufficient surplus credits in accountIf 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 byremitting to the Minister other surplus credits in accordance with section 70;remitting to the Minister other compliance units in accordance with section 71; ormaking an excess emissions charge payment in accordance with section 55.ChargeAn excess emissions charge payment made for the purposes of subsection 64(2) must be made in the manner set out in section 55.SOR/2023-240, s. 37Surplus creditsAny revised compensation that is provided by the remittance of surplus credits must be made in the manner set out in section 70.Other compliance unitsAny 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.Regular-rate compensation deadlineWith 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.Increased-rate compensation deadlineIf 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.Other compensation deadlinesIf 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 ofthe compensation deadlines set out in subsection 57(1), (1.1), (2) or (2.1), as the case may be, andthe compensation deadlines under subsection (1) or (2), as the case may be.SOR/2020-114, s. 3SOR/2023-240, s. 38Remittance of Compliance UnitsSurplus creditsSubject 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.Details — removal of provinceThe 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.SOR/2021-197, s. 23Other compliance unitsAny 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 RevocationSuspension — reasonable groundsFor 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 creditwas already used;was issued on the basis of false or misleading information; oris no longer valid.Suspension — removal of provinceFor the purposes of subsection 180(1) of the Act, the Minister may suspend all surplus creditsthat 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; andthat 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.NoticeThe 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.ResponseIf 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.Conditional removal of suspensionThe 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.SOR/2021-197, s. 24RevocationThe 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 thatif the Minister determines that the reasons for the suspension are well-founded, the surplus credit is revoked; orthe suspension of the credit is lifted.SOR/2021-197, s. 25Request for cancellationA 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 InvalidityApplication of subsection 181(1) of the ActIf 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.Manner of remittanceThe compliance units remitted to the Minister under subsection 181(2) of the Act mustin 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; andin 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).SOR/2021-197, s. 26Tracking SystemAccounts for participantsFor 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.SOR/2022-111, s. 47Notice of closureIf 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.Closing of accountIf 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.SOR/2022-111, s. 48Recognized Units or CreditsCompliance unitA unit or credit is to be recognized as a compliance unit ifit is issued by a province or by a program authority on behalf of a province;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;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; andit corresponds to a GHG reduction or removal of one CO2e tonne.Offset programsIn establishing the list of offset programs, the Minister must ensure that each one includes the following elements:rules regarding governance, oversight and enforcement;rules regarding registration and renewal of projects;rules regarding the establishment of periods within which units or credits may be issued;rules regarding who is entitled to the credit or unit for the GHG reductions or removals;measures to ensure that GHG reductions and removals are additional and permanent and that reversal risks have been mitigated;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;publicly available information on projects, protocols and units or credits; anda 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.Offset protocolsIn establishing the list of offset protocols recognized under a program referred to in subsection (2), the Minister must verify that each protocol ensures thatthe reduction or removal is with respect to a GHG;the reduction or removal is not subject to carbon pollution pricing;the GHG reduction or removal is quantified using scientifically-established methods that allow forthe calculation of the quantity of GHG emissions or removals for each GHG source, sink and reservoir,the quantification of reversals,the assessment of leakage risks,the calculation of the quantity of GHG reductions or removals that would not have occurred in comparison with the baseline scenario, andthe use of conservative quantification assumptions and approaches;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;best practices are used fordata gathering and management,record keeping,the ongoing monitoring of offset projects, including permanence, andquality assurance and quality control; andthe 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.Recognized unit or creditA recognized unit or credit must, at the time of its remittance to the Minister,be valid;have been issued in respect of a project that uses a protocol referred to in subsection (3);have been issued in respect of a project located in Canada that began in 2017 or later;have been verified by a verification body thatis 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, andis 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; andbe 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.SOR/2021-197, s. 27SOR/2023-240, s. 39Transitional ProvisionsSubsection 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.ApplicationSection 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.RecordsAny 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.Alternative methodFor 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.ClinkerFor 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.Glass containersFor 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.High value chemicalsFor 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.Isopropyl alcoholFor 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.Pulp and PaperFor 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 are0.203 CO2e tonnes per unit of measurement, in the case of a facility equipped with a recovery boiler, lime kiln or pulping digester, and0.184 CO2e tonnes per unit of measurement, in the case of a facility not equipped with a recovery boiler, lime kiln or pulping digester.ReportingFor 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[Amendments][Amendments][Amendments][Amendments][Amendments][Amendments][Amendments]Coming into ForceJanuary 1, 2019Subject to subsections (2) to (6), these Regulations are deemed to have come into force on January 1, 2019.July 1, 2019These Regulations apply in Yukon and Nunavut on July 1, 2019.January 1, 2020Sections 26 to 30 and subsections 31(2) and (3) come into force on January 1, 2020.August 1, 2019Subsection 45(2) of these Regulations comes into force on August 1, 2019.January 1, 2022Section 56 comes into force on January 1, 2022.February 16, 2021Section 76 comes into force on February 16, 2021.SOR/2021-197, s. 28(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)Industrial Activities and Output-based Standards
TABLE
ItemColumn 1Column 2Column 3Column 4Industrial ActivityUnits of MeasurementOutput-based standard (CO2e tonnes/unit of measurement)Applicable Part of Schedule 3Oil and Gas Production1Bitumen and other crude oil production — other than bitumen extracted from surface mining — by a covered facility other than a covered facility referred to in item 3extraction, processing and production of light crude oil (having a density of less than 940 kg/m3 at 15°C)barrels of light crude oil0.0159Part 1extraction, processing and production of bitumen or other heavy crude oil (having a density greater than or equal to 940 kg/m3 at 15°C)barrels of bitumen and heavy crude oil0.0544Part 12Upgrading of bitumen or heavy oil to produce synthetic crude oilbarrels of synthetic crude oil0.0408Part 23Processing of crude oil or secondary petroleum products at a covered facility that has a combined annual volume of gasoline, diesel fuel and lubricant basestock produced that is greater than 40% of its annual volume of liquid petroleum products producedrefining of crude oil, including bitumen, heavy crude oil, light crude oil or synthetic crude oilcomplexity-weighted barrels0.00420Part 3production of lubricant basestockkilolitres of lubricant basestock0.295Part 3production of isopropyl alcoholtonnes of isopropyl alcoholcalculated in accordance with section 37 of these RegulationsPart 33.1Surface mining of oil sands and extraction of bitumenbarrels of bitumen0.0266Part 3.14Processing of natural gas and production ofpipeline-transmission-quality natural gas100 000 cubic metres of pipeline-transmission- quality natural gas at a temperature of 15°C and a pressure of 101.325 kPa10.6Part 4natural gas liquidscubic metres of propane and butane combined at a temperature of 15°C and at an equilibrium pressure0.0301Part 45Transmission of processed natural gas by a facility referred to in paragraph (b) of the definition facility in subsection 1(1) of these RegulationsMegawatt hours (MWh)0.393Part 56Production of hydrogen gas using steam hydrocarbon reforming or partial oxidation of hydrocarbonsTonnes of hydrogen gas9.84Part 6Mineral Processing7Production of clinker and cementclinkertonnes of clinker0.799Part 7grey cementtonnes of grey cement0.733Part 7white cementtonnes of white cementcalculated in accordance with section 37 of these RegulationsPart 78Production of lime from limestone using a kilnhigh-calcium limetonnes of high- calcium lime produced and lime kiln dust sold1.20Part 8dolomitic limetonnes of dolomitic lime produced and lime kiln dust soldcalculated in accordance with section 37 of these RegulationsPart 8speciality limetonnes of speciality lime producedcalculated in accordance with section 37 of these RegulationsPart 89Production of glass, including glass wool insulation, using a furnace,glass containerstonnes of packed glass0.370Part 9glass, other than glass containerstonnes of glasscalculated in accordance with section 37 of these RegulationsPart 910Production of gypsum products that contain at least 70 weight percent of calcium sulphate dihydratetonnes of gypsum products that contain at least 70 weight percent calcium sulphate dihydratecalculated in accordance with section 37 of these RegulationsPart 1011Production of mineral wool insulation, excluding glass wool insulationtonnes of mineral wool insulationcalculated in accordance with section 37 of these RegulationsPart 1112Production of brick or other products made from clay or shale using a kilntonnes of brick and other products made from clay or shale using a kiln0.223Part 12Chemicals13Production of grain ethanol for use as fuel and secondary production of ethanol for industrial useethanol to be used as fuelkilolitres of absolute ethanol0.321Part 13ethanol to be used in industrial applicationskilolitres of absolute ethanol0.728Part 1314Production of furnace black in any form, including pellets and powders, using thermal oxidation or thermal decomposition of hydrocarbonstonnes of furnace black2.08Part 1415Production of 2-methylpenta-methylenediamine (MPMD)tonnes of MPMD4.65Part 1516Production of nylon 6 or nylon 6,6, as the case may beresins of nylon 6 or nylon 6,6tonnes of nylon resins0.480Part 16fibres of nylon 6 or nylon 6,6tonnes of nylon fibres0.711Part 1617Production of the following petrochemical products from petroleum and liquefied natural gas or from feedstocks derived from petroleum:high-value chemicals that are produced from steam cracking, including hydrogen gas, ethylene, propylene, butadiene and benzene produced from pyrolysis gastonnes of high-value chemicals from steam cracking0.652Part 17aromatic cyclic hydrocarbons, including benzene produced from catalytic reformingtonnes of aromatic cyclic hydrocarbons0.694Part 17higher olefinstonnes of higher olefins0.954Part 17hydrocarbon solventstonnes of hydrocarbon solvents1.14Part 17styrenetonnes of styrene0.925Part 17polyethylenetonnes of polyethylene0.164Part 17ethylene glycol with six or fewer monomer unitstonnes of ethylene glycol with six or fewer monomer units0.326Part 17Pharmaceuticals18Production of vaccines for human or animal uselitres of vaccineCalculated in accordance with section 37 of these RegulationsPart 18Iron, Steel and Metal Tubes19Production of steel from feedstock that comes primarily from scrap iron or steel, except the production of metal ingots or the production, using a mould, of metal products of a specific shape or design to produce the intended use of which when in that form is dependent in whole or in part on its shape or design, ofcast steeltonnes of cast steel0.124Part 19rolled steeltonnes of rolled steel0.0937Part 1920Production of iron or steel from smelted iron ore or production of metallurgical cokeproduction of metallurgical coke in a coke oven batterytonnes of coke0.597Part 20production of iron from smelted iron oretonnes of iron1.46Part 20production of steel in a basic oxygen furnacetonnes of steel0.164Part 20production of steel in an electric arc furnacetonnes of steelCalculated in accordance with section 37 of these RegulationsPart 2021Production of iron ore pellets from iron ore concentrate, offlux pelletstonnes of flux pellets0.0990Part 21pellets other than flux pelletstonnes of pellets other than flux pellets0.0560Part 2122Production of metal tubestonnes of metal tubesCalculated in accordance with section 37 of these RegulationsPart 22Mining and Ore Processing23Smelting or refining, from feedstock that comes primarily from ore, of at least one of the following base metals:pyrometallurgical smelting of coppertonnes of copper anodescalculated in accordance with section 37 of these RegulationsPart 23pyrometallurgical smelting and refining of leadtonnes of lead and lead alloys2.45Part 23pyrometallurgical smelting of zinc and leadtonnes of zinc and lead0.856Part 23pyrometallurgical smelting of nickeltonnes of nickel matte0.843Part 23hydrometallurgical refining of base metals, including nickel, copper, zinc, lead and cobalttonnes of base metal produced1.70Part 23hydrometallurgical electrorefining of copper anodestonnes of copper cathodescalculated in accordance with section 37 of these RegulationsPart 2324Production of potash from the mining and refining of potash ore usinga solution mining processtonnes of potash containing at least 90% potassium chloride0.232Part 24a conventional underground mining processtonnes of potash containing at least 90% potassium chloride0.0382Part 2424.1Production of evaporated salt through solution miningtonnes of evaporated salt at a concentration of at least 99% of NaCl0.153Part 24.125Production by mining coal depositsof thermal coaltonnes of thermal coalcalculated in accordance with section 37 of these RegulationsPart 25of metallurgical coaltonnes of metallurgical coal0.0499Part 2526Production of metal or diamonds from the mining and milling of ore or kimberliteproduction of iron oretonnes of iron in ore0.0169Part 26production of uranium ore concentratetonnes of uranium in ore concentrate9.26Part 26production of silver, platinum or palladiumkilograms of silver, platinum and palladiumCalculated in accordance with section 37 of these RegulationsPart 26production of base metal ore concentratetonnes of base metals in ore concentrate0.643Part 26production of diamondscarats of diamond0.0172Part 26production of goldkilograms of gold7.71Part 2627Calcining of coal to produce charTonnes of charCalculated in accordance with section 37 of these RegulationsPart 2728Production of activated carbon from coalKilograms of activated carbonCalculated in accordance with section 37 of these RegulationsPart 28Nitrogen Fertilizers29Production of nitrogen-based fertilizer, includingnitric acid by the catalytic oxidation of ammoniatonnes of nitric acid0.310Part 29anhydrous or aqueous ammonia by the steam reforming of hydrocarbonstonnes of ammonia1.82Part 29urea liquor in addition to producing anhydrous ammonia or aqueous ammonia by the steam reforming of hydrocarbonstonnes of urea liquor0.132Part 29ammonium phosphate in addition to producing anhydrous ammonia or aqueous ammonia by the steam reforming of hydrocarbonstonnes of ammonium phosphateCalculated in accordance with section 37 of these RegulationsPart 29granular urea in addition to producing anhydrous ammonia or aqueous ammonia by the steam reforming of hydrocarbonsTonnes of granular urea0.159Part 29Food Processing30Industrial processing of potatoes for human or animal consumptionTonnes of potatoes used as raw material0.102Part 3031Industrial processing of oilseeds for human or animal consumptionTonnes of oilseed used as raw material0.0481Part 3132Production of ethanol from distillation for use in the production of alcoholic beveragesKilolitres of absolute alcohol1.11Part 3233Processing of corn through wet millingTonnes of corn used as raw material0.0991Part 3334Production of citric acidTonnes of anhydrous citric acid0.479Part 3435Production of refined sugar from raw cane sugarTonnes of refined sugar0.102Part 3535.1Production of maltTonnes of malt0.117Part 35.1Pulp and Paper36Production of pulp and other productspulp from wood, other plant material or paper or any product derived directly from pulp or a pulping process — excluding specialty products — at a facility equipped with a recovery boiler, lime kiln or pulping digestertonnes of finished product0.203Part 36pulp from wood, other plant material or paper or any product derived directly from pulp or a pulping process — excluding specialty products and products referred to in subitem 39(3) — at a facility not equipped with a recovery boiler, lime kiln or pulping digestertonnes of finished product0.184Part 36production of specialty products from wood, other plant material or paper or any product derived directly from pulp or a pulping process, namely abrasive paper base, food grade grease resistant paper, packaging waxed paper base, paper for medical applications, napkin paper for commercial use, towel papers for commercial or domestic use, bath paper for domestic use, facial paper for domestic use or dissolving pulp for viscosetonnes of specialty productCalculated in accordance with section 37 of these RegulationsPart 36Automotive37Main assembly of four-wheeled self-propelled vehicles that are designed for use on highways and that have a gross vehicle weight rating of less than 4 536 kg (10,000 pounds), except vehicles capable of operating with no tailpipe emissions and equipped with a battery with a capacity of at least 15 kWhNumber of vehicles0.216Part 37Electricity Generation38Generation of electricityusing solid fuelsgigawatt hours (GWh)800 in 2019650 in 2020622 in 2021594 in 2022566 in 2023538 in 2024510 in 2025482 in 2026454 in 2027426 in 2028398 in 2029370 in 2030 and afterPart 38using liquid fuelsgigawatt hours (GWh)550Part 38using gaseous fuelsgigawatt hours (GWh)370Part 38Wood Products39Production of wood veneer or plywoodCubic metres of wood veneer and plywood0.0701Part 39Production of lumberCubic metres of lumber0.0229Part 39Production of the following products:particle board, excluding oriented strand boardlow, medium or high density composite panels, composed primarily of cellulosic fibers and a bonding system, cured under heat and pressure, including hardboardCubic metres of particle board and of panels composed primarily of cellulosic fibers and a bonding system cured under heat and pressure, including hardboard0.0889Part 39Aluminium40Aluminium production from aluminaTonnes of liquid aluminium1.58Part 4041Production of baked anodes for use in aluminium production from aluminaTonnes of baked anodes0.328Part 4142Production of calcined petroleum coke for use in aluminium production from aluminaTonnes of calcined petroleum coke0.486Part 4243Production of alumina from bauxiteTonnes of alumina (Al2O3) equivalentCalculated in accordance with section 37 of these RegulationsPart 43Rubber Products44Production of pneumatic tires, not including retreading and other forms of reconditioningTonnes of pneumatic tires0.225Part 44
SOR/2021-197, s. 29SOR/2023-240, s. 40SOR/2023-240, s. 41SOR/2023-240, s. 42SOR/2023-240, s. 43SOR/2023-240, s. 44SOR/2023-240, s. 45SOR/2023-240, s. 46SOR/2023-240, s. 47SOR/2023-240, s. 48SOR/2023-240, s. 49SOR/2023-240, s. 50(Subsection 11(1))Content of Annual Report on Emissions and ProductionInformation with respect to the person responsible for the covered facility: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;their name (including any trade name or other name used by them) and civic address;the name, title, civic and postal addresses, telephone number and, if any, email address of their authorized official;the name, title, civic and postal addresses, telephone number and, if any, email address of a contact person, if different from the authorized official; andthe federal Business Number assigned to them by the Canada Revenue Agency, if any.Information with respect to the covered facility:its name and the civic address of its physical location, if any;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;its six-digit North American Industry Classification System (NAICS) Canada code;the covered facility certificate number that was issued to it;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; andin 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,the unique name for each unit,the unit’s registration number under the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity, if any, andthe unit’s registration number under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, if any.The quantity of each GHG for the compliance period, expressed in tonnes, for each of the following emission types:stationary fuel combustion emissions;industrial process emissions;industrial product use emissions;venting emissions;flaring emissions;leakage emissions;on-site transportation emissions;waste emissions; andwastewater emissions.The global warming potential applicable for each GHG for the compliance period.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.A list of the methods used to calculate, sample, measure and analyze each specified emission type and GHG for the compliance period.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.If CO2 was captured, stored and deducted from the total quantity of GHGs under section 35 of these Regulations, the following information,a statement that indicates whether the CO2 was stored in accordance with the requirements set out in subsection 35(2) of these Regulations;the type of geological storage site used, among those set out in paragraph 35(2)(a) of these Regulations;the latitude and longitude coordinates in decimal degrees or degrees, minutes and seconds, of the storage site; andthe 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.The output-based standard for each of the specified industrial activities engaged in at the covered facility.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,the quantification, sampling, analysis and measurement methods and the data used to calculate that standard;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; andthe method used to attribute the quantity of GHGs to each specified industrial activity or to activities that are not specified industrial activities.The method used to determine the covered facility’s production from each of the specified industrial activities engaged in at the facility.With respect to thermal energy that is sold or bought, in addition to the information required in section 12 of these Regulations:the name of each covered facility from which thermal energy was bought and the covered facility certificate number that was issued to it; andthe name of each covered facility to which thermal energy was sold and the covered facility certificate number that was issued to it.With respect to a facility that produces cement,in addition to the tonnes of grey cement, the tonnes of clinker, gypsum and limestone that the grey cement contains, separately; andin addition to the tonnes of white cement, the tonnes of clinker, gypsum and limestone that the white cement contains, separately.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.With respect to a facility that produces metal from the mining of orein addition to the total quantity of silver, platinum and palladium, in kilograms, combined, each of those metals separately, and;in addition to the combined total of base metals, in tonnes combined, each of those base metals in ore concentrate, in tonnes, separately.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.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.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,the total capacity and thermal energy to electricity ratio of the unit or equipment prior to its capacity being increased;the total capacity and thermal energy to electricity ratio of the unit or equipment subsequent to its capacity being increased; andthe date of completion of any modifications made to the unit or equipment to increase its capacity.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.SOR/2023-240, s. 51SOR/2023-240, s. 52(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)Quantification RequirementsBitumen and Other Crude Oil Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Flaring emissionsCO2, CH4 and N2O3Wastewater emissions fromanaerobic and aerobic wastewater treatmentCO2, CH4 and N2Ooil-water separatorsCH44On-site transportation emissionsCO2, CH4 and N2O
Bitumen and Heavy Oil Upgrading
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissions fromhydrogen productionCO2sulphur recoveryCO2catalyst regenerationCO2, CH4 and N2O3Flaring emissionsCO2, CH4 and N2O4Venting emissions fromprocess ventsCO2 and N2Ouncontrolled blowdownCO2 and N2O5Wastewater emissions fromanaerobic and aerobic wastewater treatmentCO2, CH4 and N2Ooil-water separatorsCH46On-site transportation emissionsCO2, CH4 and N2O
Petroleum RefiningQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Venting emissions fromprocess ventCO2, CH4 and N2Oasphalt productionCO2, and CH4delayed coking unitCH43Industrial process emissions fromhydrogen productionCO2catalyst regenerationCO2, CH4 and N2Osulphur recoveryCO2coke calciningCO2, CH4 and N2O4Flaring emissionsCO2, CH4 and N2O5Leakage emissionsCH46Wastewater emissions fromanaerobic and aerobic wastewater treatmentCO2, CH4 and N2Ooil-water separatorsCH47On-site transportation emissionsCO2, CH4 and N2O
Quantification of ProductionDirect-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.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.In the method referred to in subsection (1),the value of “Sales and Exports of Steam and Electricity” is equal to zero;the value of “EC Reported CO2e Site Emissions” excludesthe 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, andthe 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;the value of “Deemed Indirect CO2e Emissions from imported electricity”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, andfor purchased electricity, is calculated using 0.420 tonnes of CO2e per megawatt hours of electricity bought;the value of “Deemed Indirect CO2e Emissions from imported steam” is equal to zero; andthe value of the “CWB factor” used to calculate hydrogen generation, in all cases, is 5.7.Surface mining of oil sands and extraction of bitumen
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Flaring emissionsCO2, CH4 and N2O3Leakage emissionsCO2 and CH43Wastewater emissions fromanaerobic and aerobic wastewater treatmentCO2, CH4 and N2Ooil-water separatorsCH45On-site transportation emissionsCO2, CH4 and N2O
Natural Gas ProcessingQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissions from acid gas removalCO23Flaring emissionsCO2, CH4 and N2O4On-site transportation emissionsCO2, CH4 and N2O
Quantification of ProductionThe 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.Natural Gas TransmissionQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Flaring emissionsCO2, CH4 and N2O
Quantification of ProductionProduction 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:Px × Lx× HxwherePxis the rated brake power of driver “x”, expressed in megawatts;Lxis the actual annual average percent load of driver “x”, or, if the actual annual average percent load is unavailable, the percentage determined by the formula:rpmavg /rpmmaxwhererpmavgis the actual annual average speed during operation of driver “x”, expressed in revolutions per minute, andrpmmaxis the maximum rated speed of driver “x”, expressed in revolutions per minute;Hxis the number of hours during the compliance period that driver “x” was operated; andThe 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)Hydrogen Gas Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23Flaring emissionsCO2, CH4 and N2O4Leakage emissionsCH45On-site transportation emissionsCO2, CH4 and N2O
Cement and Clinker ProductionQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23On-site transportation emissionsCO2, CH4 and N2O
Quantification of ProductionThe 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.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.Lime ManufacturingQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23On-site transportation emissionsCO2, CH4 and N2O
Quantification of ProductionThe quantity of dolomitic lime does not include the dolomitic lime used in the production of speciality lime.Glass Manufacturing
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23On-site transportation emissionsCO2, CH4 and N2O
Gypsum Product Manufacturing
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Mineral Wool Insulation Manufacturing
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23On-site transportation emissionsCO2, CH4 and N2O
Brick Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23On-site transportation emissionsCO2, CH4 and N2O
Ethanol Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Furnace Black Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23Venting emissionsCO2, CH4 and N2O4Leakage emissionsCH45Industrial product use emissionsSF6 and PFC6On-site transportation emissionsCO2, CH4 and N2O
2–methylpentamethylenediamine (MPMD) Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23Industrial product use emissionsSF6 and PFC4Flaring emissionsCO2, CH4 and N2O5Leakage emissionsCH46On-site transportation emissionsCO2, CH4 and N2O
Nylon Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Petrochemicals Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23Venting emissionsCO2, CH4 and N2O4Flaring emissionsCO2, CH4 and N2O5Leakage emissionsCH46Wastewater emissionsCO2, CH4 and N2O7Industrial product use emissionsSF6 and PFC8On-site transportation emissionsCO2, CH4 and N2O
Vaccine ProductionQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial product use emissionsSF63On-site transportation emissionsCO2, CH4 and N2O
Quantification of ProductionProduction is quantified at the end of the formulation step of the manufacturing process, in litres of vaccine, determined by the formula:The summation of the products of A and B for each tank “i”where:Ais the capacity of each tank “i” that is used to combine ingredients at that step, expressed in litres;Bis the number of batches produced in tank “i”; andiis the ith tank where “i” goes from 1 to n where n is the total number of tanks used to combine ingredients for that step.Scrap-based steel production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissions fromelectric arc furnaceCO2argon-oxygen decarburization vesselCO2ladle furnaceCO23On-site transportation emissionsCO2, CH4 and N2O
Integrated Steel Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissions frombasic oxygen furnaceCO2coke oven batteryCO2direct reduction furnaceCO2electric arc furnaceCO2blast furnaceCO2ladle furnaceCO2argon-oxygen decarburization vesselCO23Wastewater emissionsCO2, CH4 and N2O4Industrial product use emissionsSF6 and PFC5On-site transportation emissionsCO2, CH4 and N2O6Leakage emissions from coal storageCH4
Iron Ore Pelletizing
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissions (induration furnace)CO23On-site transportation emissionsCO2, CH4 and N2O
Metal Tube Manufacturing
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Base Metal Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4, and N2O2Industrial process emissions fromlead productionCO2zinc productionCO2copper and nickel productionCO23On-site transportation emissionsCO2, CH4 and N2O
Potash Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Production of Evaporated Salt
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Coal Mining
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Leakage emissions fromcoal storageCH4underground coal miningCH43On-site transportation emissionsCO2, CH4 and N2O
Production of Metals or Diamonds
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Char Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Activated Carbon Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Nitrogen-based Fertilizer ProductionQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissions fromnitric acidN2Oammonia steam reformingCO23On-site transportation emissionsCO2, CH4 and N2O
Quantification of ProductionThe quantity of urea liquor does not include the urea liquor used in the production of granular urea.Industrial Potato Processing
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Wastewater emissionsCO2, CH4 and N2O3On-site transportation emissionsCO2, CH4 and N2O
Industrial Oilseed Processing
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Wastewater emissionsCO2, CH4 and N2O3On-site transportation emissionsCO2, CH4 and N2O
Alcohol Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Wastewater emissionsCO2, CH4 and N2O3On-site transportation emissionsCO2, CH4 and N2O
Wet Corn Milling
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Wastewater emissionsCO2, CH4 and N2O3On-site transportation emissionsCO2, CH4 and N2O
Citric Acid Production
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Sugar Refining
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionsCO2, CH4 and N2O
Production of Malt
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Wastewater emissionsCO2, CH4 and N2O3On-site transportation emissionsCO2, CH4 and N2O
Pulp and Paper ProductionQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissions fromboiler, thermal oxidizer, direct-fired turbine, engine, gasifier or any other combustion device that generates heat, steam or energyCO2, CH4 and N2Orecovery boilerCO2, CH4 and N2Olime kilnCO2lime kilnCH4 and N2O2Industrial process emissions: addition of carbonate compound into a lime kilnCO23Wastewater emissionsCO2, CH4 and N2O4On-site transportation emissionsCO2, CH4 and N2O
Quantification of ProductionProduction by the covered facility is quantified in tonnes of finished product or tonnes of specialty product, as follows:in the case of pulp, including dissolving pulp for viscose,if the moisture content exceeds 10%, the weight of the pulp is adjusted so that its moisture content does not exceed 10%, andif the moisture content is equal to or less than 10%, the weight of the pulp without adjustment; andin 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.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.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.Main Assembly of VehiclesQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial product use emissionsHFC3On-site transportation emissionsCO2, CH4 and N2O
Quantification of ProductionProduction is the number of vehicles referred to in item 37 of column 1, of Schedule 1 that are assembled during the compliance period.Electricity GenerationQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustionCO2, CH4, N2O2Leakage emissions from coal storageCH43Industrial process emissions from acid gas scrubbers and acid gas reagentCO24Industrial product use emissions fromelectrical equipmentSF6 and PFCcooling unitsHFC5On-site transportation emissionsCO2, CH4 and N2O
Quantification of Production — Main Industrial ActivitySubject 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.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:Gu is multiplied by a quotient where the numerator is HFFk, and the denominator is HB plus the summation of HFFk for each gaseous fuels, liquid fuels and solid fuels “k”.whereGUis the gross quantity of electricity generated by the unit during a compliance period, as measured at the electrical terminals of the generators of the unit using meters that comply with the requirements set out in subsection 31(2) of these Regulations;HFFkis determined in accordance with the following formula, calculated separately for gaseous fuels, liquid fuels and solid fuels type “k”:The summation of the products of QFFj and HHVj for each fossil fuel type “j”.whereQFFjis the quantity of gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the unit to generate electricity during the compliance period, determined in accordance with subsection (3),HHVjis the higher heating value of the gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the unit, determined in accordance with Quantification Methods, andjis the jth fossil fuel type combusted in the unit, where “j” goes from 1 to m and where m is the number of types of gaseous, liquid or solid fuel combusted, as the case may be, combusted; andHBis determined in accordance with the formulaThe summation of the products of QBi and HHVi for each biomass fuel type “i”where:QBiis the quantity of biomass fuel type “i” combusted in the unit to generate electricity during the compliance period, determined in accordance with the subsection (3),HHViis the higher heating value for the biomass fuel type “i” combusted in the unit, is determined in accordance with Quantification Methods, andiis the ith biomass fuel type combusted in the unit, where “i” goes from 1 to n and where n is the number of types of biomass fuels combusted.The quantity of fuel for QFFj or QBi is determined on the following basis: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;for a liquid fuel, the volume of the fuel combusted, expressed in kL and measured using a flow meter; andfor a gaseous fuel, the volume of the fuel combusted, expressed in standard cubic metres and measured using a flow meter.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 formulaGce + Gs – GextwhereGceis the gross quantity of electricity that is generated by the generators of the combustion engines in a combustion engine unit that shares a steam turbine with a boiler unit, in the calendar year, expressed in Gigawatt hours, as measured at the electrical terminals of the generators of the combustion engines using meters that comply with the requirements set out in subsection 31(2) of these Regulations, if the given unit for which the electricity is being quantified is a combustion engine unit, or equal to zero, if the given unit for which the electricity is being quantified is a boiler unit;Gsis the gross quantity of electricity that is generated by the generators of the shared steam turbine in the calendar year, expressed in Gigawatt hours, as measured at the electrical terminals of the generators of the shared steam turbine using meters that comply with the requirements set out in subsection 31(2) of these Regulations; andGextis the quantity of electricity that is generated by the unit other than the given unit for which the electricity is being quantified, in the calendar year, expressed in Gigawatt hours and that is determined by the formulaGext is equal to Gs, multiplied by the summation for all time periods “t” of a quotient where the numerator is the summation of the products of hext,j and Mext,j for each heat stream “j”, and the denominator is the summation of the products of hext,j and Mext,j for each heat stream “j” plus the summation of the products of hint,k and Mint,k for each heat stream “k”.whereGsis the gross quantity of electricity that is generated by the generators of the shared steam turbine in the calendar year, expressed in Gigawatt hours, as measured at the electrical terminals of the generators of the shared steam turbine using meters that comply with the requirements set out in subsection 31(2) of these Regulations,tis the tth hour, where “t” goes from the number 1 to x and where x is the total number of hours during which the generators of the shared steam turbine generated electricity in the calendar year,jis the jth external heat stream, originating from the other unit where “j” goes from the number 1 to m and where m is the total number of external heat streams that contributed to the electricity generated by the generators of the shared steam turbine of the unit,hext,jis the average specific enthalpy of the jth external heat stream, originating from the other unit that contributed to the electricity generated by the generators of the shared steam turbine, expressed in gigajoules/tonne, during period “t” and must be based on the measurement of the temperature and pressure of that heat stream and determined using a continuous measuring device,Mext,jis the mass flow of the jth external heat stream originating from the other unit that contributed to the electricity generated by the generators of the shared steam turbine, expressed in tonnes, during period “t”, determined using a continuous measuring device,kis the kth internal heat stream originating from the given unit, where “k” goes from the number 1 to l and where l is the total number of heat streams that originated from the combustion of fuel in the unit and that contributed to the electricity generated by the generators of the shared steam turbine,hint,kis the average specific enthalpy of the kth internal heat stream originating from the given unit and having contributed to the electricity generated by the generators of the shared steam turbine, expressed in GJ/tonne, during period “t” and must be based on the measurement of the temperature and pressure of that heat stream and determined using a continuous measuring device, andMint,kis the mass flow of the kth internal heat stream originating from the given unit that contributed to the electricity generated by the generators of the shared steam turbine, expressed in tonnes, during period “t”, determined using a continuous measuring device.Secondary Industrial Activity – Quantification of ProductionIf 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.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:Gu is multiplied by a quotient where the numerator is HFFk, and the denominator is HB plus the summation of HFFk for each gaseous fuels, liquid fuels and solid fuels “k”whereGUis the gross quantity of electricity generated by the covered facility during the compliance period, expressed in Gigawatt hours;HFFkis determined in accordance with the following formula, calculated separately for gaseous fuels, liquid fuels and solid fuels type “k”:The summation of the products of QFFj and HHVj for each fossil fuel type “j”whereQFFjis the quantity of gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the facility for electricity generation during the compliance period, determined under subsection (2) and in accordance with Quantification Methods,HHVjis the higher heating value of the gaseous, liquid or solid fuel, as the case may be, type “j” combusted in the facility for electricity generation determined in accordance with Quantification Methods, andjis the jth fossil fuel type combusted in the facility, where “j” goes from 1 to m and where m is the number of types of gaseous, liquid or solid fuels combusted, as the case may be; andHBis determined in accordance with the formulaThe summation of the products of QBi and HHVi for each biomass fuel type “i”whereQBiis the quantity of biomass fuel type “i” combusted in the facility for electricity generation during the compliance period, determined in accordance with subsection (2) and with Quantification Methods,HHViis the higher heating value for each biomass fuel type “i” combusted in the facility for electricity generation in accordance with Quantification Methods, andiis the ith biomass fuel type combusted in the facility, where “i” goes from 1 to n and where n is the number of types of biomass fuels combusted.The quantity of fuel for QFFj and QBi is determined on the following basis: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;for a liquid fuel, the volume of the fuel combusted, expressed in kL and measured in accordance with Quantification Methods; andfor a gaseous fuel, the volume of the fuel combusted, expressed in standard cubic metres and measured in accordance with Quantification Methods.Production of wood productsQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2On-site transportation emissionCO2, CH4 and N2O
Quantification of ProductionThe quantity of wood veneer does not include wood veneer used in the production of plywood.The quantity of wood veneer and plywood refers only to wood veneer and plywood that will not undergo an additional transformation at the facility.The quantity of lumber produced refers only to lumber that will not undergo an additional transformation at the facility.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.Aluminium production from alumina
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissions frompre-baked anode consumptionCO2Søderberg electrolysis cellsCO2anode effectsPFCcarbonate useCO23Industrial product use emissionsSF6 and HFC4On-site transportation emissionsCO2, CH4 and N2O
Production of baked anodes — Aluminium
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23On-site transportation emissionsCO2, CH4 and N2O
Production of calcined petroleum coke — Aluminium
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial process emissionsCO23Industrial product use emissionsHFC4On-site transportation emissionsCO2, CH4 and N2O
Production of alumina from bauxiteQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial product use emissionsHFC3On-site transportation emissionsCO2, CH4 and N2O
Quantification of ProductionThe production is quantified, in tonnes of alumina (Al2O3) equivalent determined by the following formula:A x 0.6536whereAis the quantity of alumina hydrate produced at the precipitation step, expressed in tonnes.Production of pneumatic tiresQuantification of Emissions
Quantification of GHGs from Certain Specified Emission TypesColumn 1Column 2ItemSpecified Emission TypesGHGs1Stationary fuel combustion emissionsCO2, CH4 and N2O2Industrial product use emissionsHFC3Wastewater emisssionsCO2, CH4, and N2O4On-site transportation emissionsCO2, CH4 and N2O
Quantification of ProductionThe quantity of pneumatic tires does not include solid tires.SOR/2021-197, s. 30SOR/2021-197, s. 31SOR/2021-197, s. 32SOR/2021-197, s. 33SOR/2021-197, s. 34SOR/2021-197, s. 35(F)SOR/2021-197, s. 36SOR/2021-197, s. 37(F)SOR/2021-197, s. 38SOR/2021-197, s. 39(F)SOR/2021-197, s. 40SOR/2021-197, s. 41(F)SOR/2021-197, s. 42SOR/2021-197, s. 43SOR/2021-197, s. 44SOR/2021-197, s. 45SOR/2021-197, s. 46SOR/2021-197, s. 47SOR/2021-197, s. 48SOR/2021-197, s. 49SOR/2021-197, s. 50SOR/2021-197, s. 51SOR/2021-197, s. 52SOR/2021-197, s. 53SOR/2021-197, s. 54SOR/2021-197, s. 55SOR/2021-197, s. 56SOR/2021-197, s. 57SOR/2021-197, s. 58SOR/2021-197, s. 59SOR/2021-197, s. 60SOR/2021-197, s. 61SOR/2021-197, s. 62SOR/2021-197, s. 63SOR/2021-197, s. 64SOR/2021-197, s. 65SOR/2021-197, s. 66SOR/2021-197, s. 67SOR/2021-197, s. 68SOR/2021-197, s. 69SOR/2021-197, s. 70SOR/2021-197, s. 71SOR/2021-197, s. 72SOR/2021-197, s. 73SOR/2021-197, s. 74SOR/2021-197, s. 75SOR/2021-197, s. 76SOR/2021-197, s. 77SOR/2021-197, s. 78SOR/2021-197, s. 79SOR/2021-197, s. 80SOR/2021-197, s. 81SOR/2021-197, s. 82SOR/2021-197, s. 83SOR/2021-197, s. 84SOR/2021-197, s. 85SOR/2021-197, s. 86SOR/2021-197, s. 87SOR/2021-197, s. 88SOR/2021-197, s. 89SOR/2021-197, s. 90SOR/2021-197, s. 91SOR/2021-197, s. 92SOR/2021-197, s. 93SOR/2021-197, s. 94SOR/2021-197, s. 95SOR/2021-197, s. 96SOR/2021-197, s. 97SOR/2021-197, s. 98SOR/2021-197, s. 99SOR/2021-197, s. 100SOR/2021-197, s. 101SOR/2021-197, s. 102SOR/2021-197, s. 103SOR/2021-197, s. 104SOR/2021-197, s. 105SOR/2021-197, s. 106SOR/2021-197, s. 107SOR/2021-197, s. 108SOR/2021-197, s. 109SOR/2021-197, s. 110SOR/2023-240, s. 53(Subsections 27(1) and 29(1))Information to Include in Application for PermitInformation with respect to the applicant:their name, civic and postal addresses in Canada, telephone number and, if any, email address; andthe name, title, civic and postal addresses in Canada, telephone number and, if any, email address of their authorized official.The covered facility certificate number that was issued to the covered facility for which the application is being submitted.Details with respect toeach prescribed method or guideline that cannot be used;the specified emission type and GHG; andthe requirement that cannot be met.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.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.The requested term of the permit, which must be the period for which the permit is necessary.(Section 52 and subsection 53(1)(b))Content of Verification ReportInformation with respect to the person responsible for a covered facility: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;their name (including any trade name or other name used by them) and civic address;the name, title, civic and postal addresses, telephone number and, if any, email address of their authorized official;the name, title, civic and postal addresses, telephone number and, if any, email address of a contact person, if different from the authorized official; andthe federal Business Number assigned to them by the Canada Revenue Agency, if any.Information with respect to the covered facility:its facility name and the civic address of its physical location, if any;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;its six-digit North American Industry Classification System (NAICS) Canada code;the covered facility certificate number that was issued to it;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; andin 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,the unique name for each unit,the unit’s registration number under the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity, if any, andthe unit’s registration number under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, if any.Information with respect to the verification: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;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;the names and functions of each member of the verification team;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;a summary of the verification procedures conducted on the data and information supporting an annual report or a corrected report, includingany assessments, data sampling, tests and reviews that were conducted during the verification,any tests of the GHG information system and controls, andthe date of each visit conducted, for the purpose of section 51 of these Regulations;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;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;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: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, andthe 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;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,the total quantity of GHGs from the covered facility during the compliance period, expressed in CO2e tonnes,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, andwith 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;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: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, andthe 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;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;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,with respect to each error and omission, if it may be quantified,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, andin 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, andwith 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;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;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;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; anda verification opinion by the verification body containingdeterminations 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, andany qualifications or limitations the verification body has related to those determinations.SOR/2021-197, s. 111SOR/2023-240, s. 54[Amendments](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.SOR/2025-1082025-04-01SOR/2025-1082025-03-15SOR/2023-2402024-01-01SOR/2023-2402023-11-09SOR/2022-1112022-05-20SOR/2021-1972022-01-01SOR/2021-1972021-08-12SOR/2020-1142020-05-31