Canada Gazette, Part I, Volume 155, Number 23: Regulations Amending the Output-Based Pricing System Regulations
June 5, 2021
Statutory authority
Greenhouse Gas Pollution Pricing Act
Sponsoring department
Department of the Environment
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
The Greenhouse Gas Pollution Pricing Act (GGPPA or the Act) received royal assent on June 21, 2018.footnote 1 The Act provides the legal framework and enabling authorities for the federal carbon pollution pricing backstop system in Canada. This system consists of two parts: a regulatory charge on fossil fuels (the fuel charge), and an output-based pricing system (OBPS) for industrial facilities that is enabled by means of the Output-Based Pricing System Regulations (OBPSR or the Regulations).footnote 2
The objective of the Regulations is to ensure there is a price incentive for emissions-intensive and trade-exposed facilities to reduce greenhouse gas (GHG) emissions per unit of output, while mitigating the risks of domestic competitiveness and of carbon leakage to other jurisdictions due to carbon pollution pricing. The Regulations define the facilities to which the federal OBPS applies (“covered facilities”) and specify output-based or emissions per unit of output (emissions intensity) standards for certain industrial activities. Covered facilities generally do not pay the fuel charge on fuels that they purchase but instead are required to provide compensation on an annual basis for any GHG emissions exceeding their respective emissions limit during a compliance period. A covered facility's emissions limit, which is measured in tonnes of carbon dioxide equivalent (CO2e), is determined by multiplying the facility's production by the applicable output-based standard. A covered facility with GHG emissions below its limit receives surplus credits issued by the Minister of the Environment (the Minister) for the difference between its GHG emissions and its limit.
The OBPSR were published in the Canada Gazette, Part II, on July 10, 2019. Through the administration of the Regulations, the Department of the Environment (the Department) has since identified the need to clarify and strengthen existing regulatory requirements to address the following issues:
- (1) Provinces and territories may implement a carbon pollution pricing system that makes sense for their circumstances, either an explicit price-based system or a cap-and-trade system, as long as the system meets the federal benchmark, which establishes minimum stringency criteria. This flexibility makes it possible for a province or territory to transition from the federal carbon pollution pricing backstop system, in whole or in part, by establishing its own system. Currently, the Regulations do not prevent surplus credits issued to facilities in a jurisdiction where the federal OBPS no longer applies from being used as compensation for excess emissions. However, in the absence of long-term certainty with respect to where the OBPS applies, and in a situation where the OBPS no longer applies in a province or territory because it has implemented its own carbon pollution pricing system that aligns with the federal benchmark, there could be a sudden decrease in the demand relative to the supply of surplus credits. This could cause the price of surplus credits to fall considerably and thereby diminish the incentive to reduce GHG emissions in the OBPS to a large extent.
- (2) The OBPSR contain a rounding rule for the quantification of production that leads to unnecessary inaccuracies in the calculation of the emissions limits of covered facilities. Changes are also required to update emission factors used in the quantification of GHG emissions from fuel combustion in order to improve calculation accuracy. The readability of the current quantification method for on-site transportation emissions could be improved as well.
- (3) The output-based standard specified in Schedule 1 to the Regulations for the industrial processing of potatoes for human or animal consumption needs to be revised to account for inconsistencies in the historical data used to develop this standard.
- (4) In addition, several administrative changes are required to improve the clarity of the Regulations and help ensure that compliance with the OBPSR is consistent with the Department's policy intent.
Background
The Government of Canada has committed to taking action on climate change and is working in partnership with the international community. At the United Nations Framework Convention on Climate Change (UNFCCC) conference in December 2015, the international community, including Canada, adopted the Paris Agreement, an accord intended to reduce global GHG emissions to limit the rise in global average temperature to less than two degrees Celsius (2 °C) and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels. As part of its commitments made under the Paris Agreement, Canada pledged to reduce national GHG emissions by 30% below 2005 levels by 2030. The Government of Canada is implementing a series of measures to meet and exceed this objective, including continuing to put a price on carbon pollution, and in December 2020, it published a plan called A Healthy Environment and a Healthy Economy for Canada to achieve net-zero GHG emissions by 2050.footnote 3
Federal carbon pollution pricing backstop system
The Government of Canada has implemented a federal carbon pollution pricing system, by means of the GGPPA, as a backstop in any province or territory that requests it or that does not implement a carbon pollution pricing system that meets the federal benchmark. Part 1 of the GGPPA establishes the fuel charge, which is generally paid by fuel producers or distributors and generally applies to fossil fuels produced, delivered or used in a backstop jurisdiction, brought into a backstop jurisdiction from another place in Canada, or imported into Canada at a location in a backstop jurisdiction. The fuel charge is administered by the Canada Revenue Agency (CRA).
Part 2 of the GGPPA provides the legal framework and authorities to establish the federal OBPS, a regulatory trading system for industrial facilities that is administered by the Department. Facilities subject to the OBPS generally do not pay the carbon pollution price (the fuel charge) on the fuel they purchase for use at their facilities but instead pay the carbon pollution price (the excess emissions charge) on their GHG emissions that exceed their respective facility emissions limit. When the GHG emissions of a covered facility are under its emissions limit, the facility is issued surplus credits by the Minister that it can either sell or use to meet a future compliance obligation.
The GGPPA provides the Governor in Council with the authority to determine where the Act applies by amending Schedule 1 to the Act to list or delist provinces and territories. The federal OBPS applies in the “backstop” jurisdictions listed in Part 2 of Schedule 1 to the GGPPA. The OBPSR took effect on January 1, 2019, in Ontario, New Brunswick, Manitoba and Prince Edward Island, and partially in Saskatchewan, and on July 1, 2019, in Yukon and Nunavut. The OBPS covers facilities carrying out certain industrial activities in these jurisdictions that emit 50 kilotonnes (kt) or more of GHG emissions per year. Any other facility located in a backstop jurisdiction emitting 10 kt or more of GHG emissions per year, and either undertaking an industrial activity identified by the Regulations or operating in an industrial sector considered to be at significant risk of decreased competitiveness and of carbon leakage as a result of carbon pollution pricing, may apply to opt into the OBPS.
Covered facilities have a number of options regarding how they choose to provide compensation for excess emissions. First, they may make excess emissions charge payments to the Receiver General for Canada.footnote 4 Second, they may use compliance units, each representing one tonne of CO2e, which include (i) surplus credits issued by the Minister to covered facilities or that have been acquired through trade from other covered facilities; (ii) eligible provincial or territorial offset credits formally recognized by the Minister under the Regulations as compliance units; and (iii) federal offset credits issued by the Minister.footnote 5 Covered facilities may also use a combination of excess emissions charge payments and compliance units to provide compensation.
Objective
The objective of the proposed Regulations Amending the Output-Based Pricing System Regulations (the proposed Amendments) is to help ensure that the incentive to reduce GHG emissions in the federal OBPS is maintained by adding rules respecting transitional matters related to the deletion of the name of a province or territory from Part 2 of Schedule 1 to the GGPPA and related to circumstances in which a facility ceases to be a covered facility. The proposed Amendments also aim to increase the accuracy of the values of output, GHG emissions and emissions limits calculated by covered facilities by adjusting quantification rules in the Regulations. Furthermore, the Department intends to clarify various provisions of the regulatory text in order to facilitate its administration of the OBPSR and help ensure that compliance with the Regulations is consistent with its policy intent.
Description
The proposed Amendments would apply to covered facilities and would modify the OBPSR as described below.
Rules relating to surplus credits and payments
The proposed Amendments would add circumstances under which the Minister may suspend surplus credits issued to a facility in its OBPS account if the province or territory in which the facility is located is removed from Part 2 of Schedule 1 to the Act. In addition, the proposed Amendments would limit the use of surplus credits issued by the Minister to any covered facility located in that province or territory by not allowing their use to meet a compensation obligation under the OBPSR for any compliance period during which this province or territory is not listed in Part 2 of Schedule 1. The suspension of surplus credits could be lifted by the Minister when those surplus credits are to be used to meet a compensation obligation for a compliance period during which that province or territory was listed in Part 2 of Schedule 1, provided that the surplus credits are still eligible for use.footnote 6
The OBPSR currently allow the Minister to establish the GHG emissions or the emissions limit for a covered facility when there is a material discrepancy with respect to the values of production or GHG emissions set out in the annual report of the facility for a compliance period, or when a verification body was not able to make that determination or establish whether the facility's annual report was prepared in accordance with the Regulations.footnote 7 The proposed Amendments would clarify that, when the Minister has established the GHG emissions or the emissions limit for a facility, surplus credits would not be issued. They would also clarify that, if the emissions limit set out in a facility's annual report submitted for a compliance period has been calculated in accordance with the Regulations, then the number of surplus credits that the Minister issues is based on what is reported in that annual report.
The OBPSR indicate that, starting on February 16, 2023, a minimum of 25% of the compensation for excess emissions required under the Act must be provided by means of an excess emissions charge payment. The proposed Amendments would clarify that the requirement to pay the excess emissions charge to provide compensation for a minimum of 25% of the excess emissions for each compliance period would apply to any compensation owed relating to the 2022 compliance period and subsequent compliance periods.
Rules relating to quantification and verification
The OBPSR require that the production values calculated by covered facilities be rounded to three significant figures and that the GHG emission values calculated by these facilities be rounded to the nearest tonne. The proposed Amendments would repeal these provisions to improve precision in a covered facility's assessment of its GHG emissions, as well as in a facility's calculation of its emissions limit, determined by multiplying its production by the applicable output-based standard. The proposed Amendments would instead only require that the difference between a covered facility's GHG emissions during a compliance period and its emissions limit for that period be rounded to the nearest whole number.
Emission factors used in the quantification of GHG emissions from fuel combustion would be updated to incorporate those of the 2020 version of Canada's Greenhouse Gas Quantification Requirements under the Greenhouse Gas Reporting Program (GHGRP).footnote 8 These changes would increase the precision of GHG quantification, and comparisons of GHG emissions and emissions limits, under the Regulations. The proposed Amendments would also require that on-site transportation emissions be quantified in accordance with the 2020 GHGRP quantification requirements. This change is anticipated to facilitate compliance and improve the understanding of the quantification methods for on-site transportation emissions, as the approach for quantifying these emissions has been clarified in the 2020 GHGRP requirements.
Furthermore, to improve the precision of a covered facility's assessment of its GHG emissions, the OBPSR would be modified to explain when carbon dioxide (CO2) emissions that have been captured and permanently stored may be deducted from a facility's total GHG emissions. The proposed Amendments would clarify that CO2 emissions that have been captured and permanently stored in a project meeting the storage requirements in section 35 of the Regulations must first be included in the quantification of the facility's total emissions. These emissions would then be allowed to be deducted from the facility's total emissions, thereby ensuring that GHGs removed from the atmosphere are not counted more than once.
Lastly, the OBPSR currently specify that a verification body cannot conduct the verification of an annual report if it has conducted six consecutive verifications of annual reports prepared under the Regulations with respect to the same covered facility, unless three years have elapsed since the last of those reports was verified. Another provision would be added to limit the number of verifications of annual reports by a single verification body to six annual reports prepared under the Regulations with respect to the same covered facility within any period of nine calendar years.
Registration of and ceasing to be a covered facility
The proposed Amendments would provide clarification with respect to the beginning of the first compliance period when a covered facility enters the OBPS in a compliance period that has already begun. When the person responsible for a covered facility is not already a registered emitter under Part 1 of the GGPPA (Fuel Charge), the first compliance period for the facility begins on the effective date of registration under Part 1 of the Act as an emitter with the CRA. When the person responsible for a covered facility is already a registered emitter under Part 1 of the Act, or if the facility is located in a province or territory in which there is a provincial or territorial fuel charge in place of the federal fuel charge, the first compliance period begins on the date specified in the covered facility certificate issued under Part 2 of the Act (Industrial Greenhouse Gas Emissions).
The proposed Amendments would provide clarity with respect to the transitional measures related to circumstances where a facility ceases to be a covered facility and the obligations that remain for the person responsible for that facility. In particular, a clarification to the regulatory text would be made specifying that the person responsible for a facility must meet the requirements of the OBPSR, such as submitting a verified annual report and providing compensation for excess emissions, for any compliance period (whole or partial) during which the facility was subject to the Regulations.
The proposed Amendments would also add a provision requiring that, if a person anticipates they will no longer be the person responsible for a covered facility, they must inform the Minister in writing, at least 30 days before the day the person ceases to be responsible for the facility.
Other modifications
The output-based standard set out in item 30 of Schedule 1 for the industrial processing of potatoes for human or animal consumption would be revised to account for revised historical data.
The proposed Amendments would clarify that the output-based standard for solid fuel only applies to a boiler unit of an electricity generation facility, even if the boiler unit generates electricity using liquid or gaseous fuel,
- provided that the unit was registered under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations in 2018 or is still registered under these Regulations; and
- provided that the unit used solid fuel to generate electricity in 2018.
Minor modifications would also be made to the OBPSR to clarify and improve the regulatory text, including
- changing the name of the American National Standards Institute to “ANSI National Accreditation Board”;
- correcting errors in a formula applicable to industrial activities for which an output-based standard must be calculated;
- making a clarification to subsection 6(1) of the Regulations, which specifies when the Minister may cancel the designation of a covered facility; and
- ensuring that the English and French versions of the regulatory text align with each other.
Regulatory development
Consultation
Most of the proposed changes would be made to facilitate the implementation and administration of the OBPSR. Some of the proposed Amendments are the result of issues raised by stakeholders, such as the inaccuracies created by the rounding requirements for production. Moreover, following the publication of the final Regulations in 2019, the Department received a request from a covered facility in the potato processing sector to revise the output-based standard applicable to this sector to account for revised historical data, and stakeholders have asked for better harmonization of quantification requirements between the OBPSR and the GHGRP.
On December 23, 2020, a notice was published on the Government of Canada's webpage announcing the Minister's intent to develop the proposed Amendments and remove the names of certain provinces from Part 2 of Schedule 1 to the GGPPA, in order to improve the implementation of the Regulations and act upon the Government of Canada's stated intention of standing down the federal OBPS in Ontario and New Brunswick.footnote 9 Pursuant to section 194 of the GGPPA, this notice of intent also indicated that some of the provisions of the proposed Amendments might take effect as early as the date of publication of the notice, subject to Governor in Council approval.
On February 12, 2021, the Department launched a formal review of the OBPSR in response to a commitment made when the Regulations were published in the Canada Gazette, Part II.footnote 10 The goal of this review is to identify any essential changes to the Regulations that are necessary
- in order for the OBPS to continue to contribute to Canada's GHG emissions reduction goals, while minimizing risks to domestic competitiveness and of carbon leakage to other jurisdictions resulting from carbon pollution pricing; and
- in order for the OBPS to effectively function as a backstop system in any jurisdiction in Canada, if applicable.
On March 11, 2021, the Department hosted consultation sessions (webinars) in English and French. The goal of these sessions was to provide the regulated community with an update on the formal review of the OBPSR, as well as with an overview of the proposed Amendments. The Department plans to take all comments received from interested parties into account as part of the finalization of the proposed Amendments, following their publication in the Canada Gazette, Part I.
Modern treaty obligations and Indigenous engagement and consultation
The proposed Amendments are not expected to have any modern treaty implications. They would respect the Government of Canada's obligations in relation to rights protected by section 35 of the Constitution Act, 1982 and modern treaties, and international human rights obligations. The federal government continues to work with Indigenous organizations to ensure that the federal approach to pricing carbon pollution considers the unique circumstances and priorities of Indigenous peoples.
Instrument choice
The Department considers the proposed Amendments to be necessary since the rules in the OBPSR concerning surplus credits need to be strengthened. Currently, there is a risk that the incentive to reduce GHG emissions in the federal OBPS could diminish considerably, in the event that surplus credits issued to facilities in a jurisdiction where the OBPS no longer applies are not prevented from being used for compensation for compliance periods during which this jurisdiction is not subject to the OBPS. The Department also considers the proposed Amendments to be necessary given that the calculations of the emissions limits of covered facilities could be more precise by adjusting the rules in the Regulations concerning the quantification of production and GHG emissions. Finally, the clarifications to various provisions of the regulatory text, by means of the proposed Amendments, would facilitate the Department's administration of the OBPSR and help ensure that compliance with the OBPSR is consistent with the Department's policy intent.
Regulatory analysis
Benefits and costs
This analysis assesses the impacts (benefits and costs) of a regulatory scenario in which the Governor in Council makes the proposed Amendments relative to a baseline scenario in which this has not occurred. The proposed Amendments would introduce changes to rules in the OBPSR related to surplus credits, payments and quantification, and they would clarify a number of provisions of the regulatory text. The magnitude of the impacts that are attributable to the proposed Amendments is expected to be low; therefore, these impacts have been assessed qualitatively. Specifically, it is assumed the proposed Amendments would have no impact on the projected GHG emission reductions that are associated with the Regulations.
Impacts related to surplus credit and payment rules
The proposed Amendments would serve to maintain the incentive to reduce GHG emissions in the federal OBPS by suspending and limiting the use of surplus credits issued to facilities in a jurisdiction that is no longer in the OBPS. The addition of these rules to the Regulations would help prevent a significant decrease in the price of surplus credits, relative to the federal carbon pollution pricing signal, that could arise from a sudden decrease in the demand relative to the supply of surplus credits. It is important to note that these rules would only limit the period of time during which certain surplus credits may be used. Covered facilities would be able to use surplus credits generated in a province or territory that is no longer in the OBPS to meet compensation obligations for the compliance periods during which that province or territory was listed in Part 2 of Schedule 1 to the GGPPA.
Although the proposed Amendments would establish these surplus credit rules, they could not be implemented until an amendment is made to delist a province or territory from Part 2 of Schedule 1 to the Act. The impacts associated with the rules would be attributable to a decision that the OBPS no longer applies in a province or territory because it has implemented its own carbon pollution pricing system that aligns with the federal benchmark. Therefore, these impacts would be considered in the Regulatory Impact Analysis Statement (RIAS) accompanying an order removing a province or territory from Part 2 of Schedule 1 to the Act, which would be published in the Canada Gazette.
The OBPSR require that a minimum of 25% of the compensation for a covered facility's excess emissions must be provided by means of an excess emissions charge payment. This provision comes into force on February 16, 2023. The proposed Amendments would further clarify the Department's policy intent in regard to this provision, as stated in the RIAS that accompanied the Regulations when they were published in 2019.footnote 2 In particular, the proposed Amendments would clarify that a covered facility must pay the excess emissions charge to provide compensation for a minimum of 25% of its excess emissions beginning with the 2022 compliance period.
Impacts related to changes to quantification rules
The OBPSR currently mandate covered facilities to round production values to three significant figures. This provision may lead to unnecessary inaccuracies in the calculation of the emissions limits of covered facilities. The following example is provided for illustrative purposes:
- Facility A undertakes an industrial activity and reports 67 500 tonnes of output using the current production rounding rule for a given compliance period, but it actually produced 67 460 tonnes of output. Assuming that the applicable output-based standard is 1.25 tonnes of CO2e per tonne of output, then the emissions limit of the facility is greater than it would have been, had it been based on the unrounded production value, by an amount of 50 tonnes of CO2e.footnote 11
- On the other hand, Facility B undertakes the same industrial activity and reports 67 500 tonnes of output as well using the current production rounding rule for the same compliance period, but it actually produced 67 532 tonnes of output. Assuming again that the applicable output-based standard is 1.25 tonnes of CO2e per tonne of output, then the emissions limit of the facility is smaller than it would have been, had it been based on the unrounded production value, by an amount of 40 tonnes of CO2e.footnote 12
The proposed Amendments would remove the requirement for covered facilities to round production values to three significant figures. This removal would increase accuracy in the measurement of output values, which would render the calculation of the emissions limits of covered facilities under the OBPSR more precise and fairer. It is assumed the removal of the production rounding rule would not affect business decisions related to production or emissions intensity, so this change is not expected to lead to any GHG emission impacts. Nonetheless, it could lead to small distributional effects on the emissions limits of covered facilities within industrial sectors, with the limits of some facilities increasing slightly, and the limits of other facilities decreasing slightly, during a given compliance period. It is anticipated that these positive and negative changes in emissions limits would be minor and tend to offset each other in general.
The quantification requirements established by the Department's GHGRP that were published in 2017 are one of the main methods specified in the Regulations to calculate GHG emissions. Subsection 2(2) of the Regulations indicates that a reference to any document incorporated by reference is incorporated as amended from time to time, with two exceptions: (1) the standard ISO 14065 published by the International Organization for Standardization in 2013; and (2) the GHGRP. The incorporation of the 2017 GHGRP quantification requirements in the OBPSR is thus static in nature. Regulatory amendments are necessary to incorporate emission factors from the 2020 GHGRP requirements for the quantification of emissions from fuel combustion. In addition, the proposed Amendments would incorporate the 2020 GHGRP requirements for the quantification of on-site transportation emissions. These changes would be a first step towards additional harmonization of the GHG quantification requirements of the Regulations with those of the GHGRP. The formal review of the OBPSR launched in February 2021 will explore further opportunities for harmonization in this regard.
Impacts related to other modifications
The proposed Amendments would revise the output-based standard for the industrial processing of potatoes for human or animal consumption to account for inconsistencies in the historical data used to set the standard. The change would result in an increase in the numerical value of the output-based standard. This change would also align the GHG quantification requirements used in the development of the output-based standard for potato processing with those used in the development of all other output-based standards under the Regulations. Holding the GHG emissions and production of a covered facility in the potato processing sector constant, this revision would benefit the facility by increasing its emissions limit, which would either decrease its compensation obligation or increase the number of surplus credits to which it could be entitled. The increase in the emissions limits of facilities in the potato processing sector in backstop jurisdictions is not expected to affect the total reductions in GHG emissions that are incentivized by the OBPS.
The proposed Amendments would make clarifications to various provisions of the regulatory text. The details of these modifications are provided in the “Description” section. Overall, these clarifications would improve the Department's administration of the Regulations and help ensure that compliance with the OBPSR is consistent with the Department's policy intent. They are not expected to result in any incremental impacts for covered facilities.
Small business lens
To extend participation in the OBPS to smaller facilities, the Department developed a policy regarding voluntary participation in the OBPS for facilities located in backstop jurisdictions. A key component of this policy is that facilities voluntarily participating in the OBPS (voluntary participants) should have, or expect to have, annual emissions of 10 kt or more of CO2e.footnote 13
No mandatory participants in the OBPS are considered small businesses. However, it is possible that some voluntary participants opting into the OBPS in backstop jurisdictions are small businesses. Voluntary participants are already required to report to the GHGRP and have the discretion to choose between paying the fuel charge and participation in the OBPS.
The removal of the production rounding rule could lead to minor distributional impacts for all covered facilities, including voluntary participants, but it would improve accuracy and fairness in the calculation of emissions limits under the OBPSR, as mentioned above. In terms of the revision to the output-based standard for potato processing, this would decrease the stringency of the standard, which would benefit any small business in the industrial potato processing sector participating in the federal OBPS.
One-for-one rule
The one-for-one rule applies as the proposed Amendments would result in a small incremental increase in administrative burden on business. They would modify the Regulations, leading to no net increase or decrease in regulatory titles.
The proposed Amendments add a provision that would require any person anticipating they will no longer be the person responsible for a covered facility to inform the Minister in writing, at least 30 days before the anticipated change, of the date by which the change will occur and the name of the new responsible person. Advance notification of a change in the person responsible for a covered facility is integral to allow the Department to provide support to the regulated community in complying with the OBPSR, and to complete the registration process for the new responsible person and properly attribute any remaining obligation.
Based on the first few years of the Department's administration of the Regulations, it is projected that the person responsible for a covered facility could change at a rate of up to 7% per year. At this rate, the new requirement would introduce additional administrative impacts for approximately 8 out of the 122 facilities that are obligated to participate in the OBPS. Overall, the new administrative burden is estimated to be around $320 in annualized average costs.footnote 14 Net administrative impacts for 8 covered facilities are anticipated to be 1.5 hours per facility per year, on average, which corresponds to about $40 in annualized average costs per facility when allocated over a 10-year period to assess administrative cost impacts (2021–2030).footnote 15
Regulatory cooperation and alignment
Canada is working in partnership with the international community to implement the Paris Agreement, in support of the goal of limiting the rise in global average temperature to less than 2 °C and pursuing efforts to limit the temperature increase to 1.5 °C. As part of its commitments made under the Paris Agreement, Canada pledged to reduce national GHG emissions by 30% below 2005 levels by 2030. The Government of Canada has also committed to achieving net-zero GHG emissions by 2050.footnote 3 To meet these commitments, the federal government is implementing a series of measures, including continuing to put a price on carbon pollution. The proposed Amendments would support implementation of the federal OBPS, which is a component of Canada's carbon pollution pricing approach.
Strategic environmental assessment
The OBPSR support the implementation of the Pan-Canadian Framework on Clean Growth and Climate Change (the Pan-Canadian Framework) and the Pan-Canadian Approach to Pricing Carbon Pollution. The objective of the Regulations is to retain a price on carbon pollution that creates an incentive for emissions-intensive and trade-exposed facilities to reduce emissions per unit of output, while mitigating risks to domestic competitiveness and of carbon leakage to other jurisdictions. The proposed Amendments do not change the environmental objective of the OBPSR, and thus a preliminary scan concluded that a strategic environmental assessment is not required, in accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified in association with the proposed Amendments.
Implementation, compliance and enforcement, and service standards
Implementation
The proposed Amendments would come into force on January 1, 2022, with several exceptions. The following changes to the Regulations, which are referred to in the Minister's notice of intent published on December 23, 2020,footnote 9 and explained in the “Description” section, would take effect on January 1, 2021:
- the proposed repeal of the rounding requirements for production and GHG emissions calculated by covered facilities;
- the proposed incorporation of the emission factors for fuel combustion and the method to quantify on-site transportation emissions from the 2020 GHGRP requirements;
- the proposed clarifications of the obligations of the person responsible for a facility that ceases to be covered by the Regulations;
- the proposed revision to the value of the output-based standard for the industrial processing of potatoes for human or animal consumption; and
- the proposed corrections to the formula applicable to industrial activities for which an output-based standard must be calculated.
In determining if a change to the Regulations should come into force retroactively, the Department considered (i) whether the change is necessary prior to the transition of a province or territory from the federal OBPS to a provincial or territorial carbon pollution pricing system; and (ii) whether the change is projected to result in a considerable improvement in the implementation of the OBPSR or a reduction in regulatory costs for covered facilities.
Compliance and enforcement
Departmental officials would undertake actions to implement and enforce the proposed Amendments, as necessary, in accordance with the Department's compliance and enforcement policies.footnote 16 Enforcement officers would apply the principles found in the compliance and enforcement policies when verifying compliance. These policies set out the range of possible enforcement responses to alleged violations. If an enforcement officer discovers an alleged violation following an inspection or investigation, the officer would choose the appropriate enforcement action based on the policies.
Contacts
Katherine Teeple
Director
Industrial Greenhouse Gas Emissions Management Division
Carbon Markets Bureau
Environmental Protection Branch
Department of the Environment
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: ec.tarificationducarbonecarbonpricing.ec@canada.ca
Matthew Watkinson
Director
Regulatory Analysis and Valuation Division
Economic Analysis Directorate
Strategic Policy Branch
Department of the Environment
200 Sacré-Cœur Boulevard
Gatineau, Quebec
K1A 0H3
Email: ec.darv-ravd.ec@canada.ca
PROPOSED REGULATORY TEXT
Notice is given that the Administrator in Council, pursuant to sections 192 and 193 of the Greenhouse Gas Pollution Pricing Actfootnote a, proposes to make the annexed Regulations Amending the Output-Based Pricing System Regulations.
Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to: Katherine Teeple, Director, Industrial Greenhouse Gas Emissions Management Division, Carbon Markets Bureau, Environmental Protection Branch, Environment and Climate Change Canada, 351 Saint-Joseph Boulevard, Gatineau, Quebec, K1A 0H3 (email: ec.tarificationducarbonecarbonpricing.ec@canada.ca).
Ottawa, May 27, 2021
Julie Adair
Assistant Clerk of the Privy Council
Regulations Amending the Output-Based Pricing System Regulations
Amendments
1 (1) Subsection 2(1) of the Output-Based Pricing System Regulationsfootnote 17 is amended by adding the following in alphabetical order:
- 2020 GHGRP
- means the document entitled Greenhouse Gas Reporting Program, Canada's Greenhouse Gas Quantification Requirements, the December 2020 version, published by the Department of the Environment. (méthode d'ECCC 2020)
- ANSI National Accreditation Board
- means the accreditation organization that is a subsidiary of the American National Standards Institute. (ANSI National Accreditation Board)
(2) Subsection 2(2) of the Regulations is replaced by the following:
Incorporation by reference
(2) Unless otherwise indicated, a reference to any document incorporated by reference into these Regulations, except the ISO Standard 14065, the GHGRP and the 2020 GHGRP, is incorporated as amended from time to time.
2 Subsection 6(1) of the Regulations is replaced by the following:
Condition not met
6 (1) If a covered facility was designated on the condition that it would emit a quantity of GHGs of at least 10 kt of CO2e in any of the three calendar years following the date of first production, the Minister may cancel the designation under subsection 172(3) of the Act if the facility has not met that condition as of December 31 of the third calendar year following that date.
3 Subsection 7(3) of the Regulations is repealed.
4 The Regulations are amended by adding the following after section 7:
Requirements for partial compliance period
7.1 If a facility ceases to be a covered facility during a compliance period, the person who is responsible for that facility must comply with the requirements in Division 1 of Part 2 of the Act and these Regulations in respect of the portion of that compliance period during which it was a covered facility.
5 Subsection 9(2) of the Regulations is replaced by the following:
Partial compliance period
(2) If a facility becomes a covered facility under the Act after January 1 of a given calendar year, its specified period, for the purposes of the definition compliance period in section 169 of the Act, for that year begins
- (a) if the person responsible for the covered facility was not already a registered emitter under section 57 of the Act at the date of registration that is specified in the covered facility certificate issued under subsection 171(2) of the Act, on the effective date of registration that is indicated in the Minister of National Revenue's notice under subsection 64(2) of the Act; or
- (b) in all other cases, on the date of registration that is specified in the covered facility certificate issued under subsection 171(2) of the Act.
6 The Regulations are amended by adding the following after section 10:
Conclusive presumption
10.1 (1) If a facility ceases to be a covered facility, the person responsible for that facility is deemed to be responsible for a covered facility with respect to
- (a) the requirements set out in section 173 of the Act;
- (b) the requirements set out in section 174 of the Act with respect to providing compensation;
- (c) the requirement under subsection 176(1) of the Act to notify the Minister of any errors or omissions;
- (d) the requirement under subsection 176(2) or 177(2) of the Act to submit any corrected report under section 62 or 63, respectively;
- (e) the requirement under paragraph 178(1)(a) of the Act to provide any compensation;
- (f) the requirements set out in section 181 of the Act;
- (g) the requirement to maintain the OBPS account referred to in section 14;
- (h) the requirement under subsection 187(5) of the Act to retain the information set out in section 47; and
- (i) the requirement to notify the Minister if there is a change in the person responsible, in accordance with subsection 48(1).
Period of requirements
(2) The requirements set out in paragraphs (1)(a) to (g) apply during the period necessary under the Act and the requirements set out in paragraphs (1)(h) and (i) apply during a period of seven years after the end of the year in which the facility ceased to be a covered facility.
Surplus credits
(3) If a facility ceases to be a covered facility, the person responsible for that facility is deemed to be responsible for a covered facility for the purpose of obtaining surplus credits under section 175 of the Act and paragraph 178(1)(b) of the Act.
7 (1) The portion of paragraph 11(1)(c) of the French version of the Regulations before subparagraph (i) is replaced by the following:
- c) s'agissant d'une installation assujettie où sont exercées d'une part l'activité industrielle visée de production de charbon à partir de l'exploitation de gisement de charbon et d'autre part, si elle est constituée d'un groupe ou d'un ensemble de groupes enregistrés en vertu du Règlement sur la réduction des émissions de dioxyde de carbone – secteur de l'électricité thermique au charbon, celle de production d'électricité :
(2) Paragraph 11(1.2)(a) of the Regulations is replaced by the following:
- (a) for each unit whose electricity generation capacity from gaseous fuels was increased by 50 MW or more and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period by each unit that is attributed to the capacity added to the unit and the gross amount of electricity generated that is attributed to the capacity of the unit before the additional capacity was added, in accordance with section 32 and subsection 41.2(3), separately; and
8 Section 16 of the Regulations is amended by adding the following after subsection (7):
Pyrometallurgical smelting and refining of lead
(7.1) If lead is pyrometallurgically smelted and refined at a covered facility where a specified industrial activity set out in paragraph 23(c), column 1, of Schedule 1 is engaged in, the following rules apply:
- (a) for the purposes of section 17, the person responsible for the covered facility must quantify the GHGs from the pyrometallurgical smelting and refining of lead in accordance with the method applicable to the industrial activity set out in paragraph 23(c), column 1, of Schedule 1; and
- (b) for the purposes of sections 31, 36 and 36.2, the industrial activity set out in paragraph 23(b), column 1, of Schedule 1 is deemed not to be engaged in at the covered facility.
9 Section 17 of the Regulations is amended by adding the following after subsection (4):
Emission factors — details
(4.1) For the purposes of subsection (2), if the quantities of the GHGs are calculated in accordance with the GHGRP 2.A or 2.B, the emission factor tables set out in that method are replaced by those set out in the 2020 GHGRP.
10 Section 24 of the Regulations is repealed.
11 Section 33 of the Regulations is repealed.
12 (1) The portion of subsection 35(2) of the Regulations before paragraph (a) is replaced by the following:
CO2 — quantity that may be subtracted
(2) For the purposes of the description of B in subsection (1), the quantity of CO2 may only be included in that description if it has been included in the description of A and has been permanently stored in a storage project that meets the following criteria:
(2) Subsection 35(4) of the Regulations is replaced by the following:
Deemed emission of CO2
(4) For greater certainty, the quantity of CO2 from a covered facility that has been captured but has not been permanently stored in a storage project that meets the requirements of subsection (2) is deemed to have been emitted by the covered facility and is included in the quantity of GHGs that are included in the description of A in subsection (1).
13 (1) The description of O in paragraph (a) of the description of B in subsection 37(1) of the English version of the Regulations is replaced by the following:
- O is the ratio of heat from the combustion of fossil fuels to produce thermal energy for reference year “i” and is
- (i) if M is greater than N, the ratio of heat determined under section 34 for reference year “i” for the covered facility, or
- (ii) if 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, or
(2) Paragraph (b) of the description of B in subsection 37(1) of the Regulations is replaced by the following:
(b) 0 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 formula:
(3) Subsection 37(1) of the Regulations is amended by striking out “and” after the description of E, by adding “and” at the end of the description of i and adding the following after the description of i:
- n the number of reference years.
14 The portion of subsection 41(2) of the Regulations before paragraph (b) is replaced by the following:
Output-based standard — exception
(2) The output-based standard applicable to the industrial activity set out in paragraph 38(a), column 1, of Schedule 1 applies to a boiler unit if it generates electricity using liquid or gaseous fuel and it
- (a) is registered under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, or it was at any given time in 2018; and
15 (1) The description of C in subsection 41.1(2) of the Regulations is replaced by the following:
- C is, 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;
(2) The description of E in subsection 41.1(2) of the Regulations is replaced by the following:
- E is, 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;
(3) The descriptions of k and l in subsection 41.1(2) of the Regulations are replaced by the following:
- k is 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;
- l is 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.
16 (1) Subsection 41.2(1) of the French version of the Regulations is replaced by the following:
Augmentation de la capacité de production d'électricité
41.2 (1) Si, le 1er janvier 2021 ou après cette date, la capacité de production d'électricité d'une installation de production d'électricité, à partir de combustibles gazeux, augmente de 50 MW ou plus et si cette capacité provient d'un groupe qui est conçu pour fonctionner à un rapport énergie thermique-électricité inférieur à 0,9, la personne responsable de l'installation est tenue de calculer, pour chaque période de conformité à partir de laquelle la capacité est augmentée, la limite d'émissions de gaz à effet de serre applicable à l'installation conformément au paragraphe (2).
(2) The description of C in subsection 41.2(2) of the Regulations is replaced by the following :
- C is, 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;
(3) The descriptions of E and F in subsection 41.2(2) of the Regulations are replaced by the following :
- E is, 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);
- F is, 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);
(4) The descriptions of k and l in subsection 41.2(2) of the Regulations are replaced by the following :
- k is 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; and
- l is 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.
17 Section 44 of the Regulations is amended by adding the following after subsection (1):
Rounding
(1.1) The result of the assessment in subsection (1) is to be rounded to the nearest whole number or, if the number is equidistant between two whole consecutive numbers, to the higher number.
18 Subsection 47(1) of the Regulations is replaced by the following:
Retention of information
47 (1) The person responsible for a covered facility must retain a record that contains the information set out in section 45, any information that the Minister specifies under subsection 187(2) of the Act and a copy of information submitted to the Minister under these Regulations, including any calculations, measurements and other data on which the information is based.
19 Section 48 of the Regulations is renumbered as subsection 48(1) and is amended by adding the following:
Change of responsible person
(2) If a person anticipates that they will no longer be the responsible person for a covered facility, they must inform the Minister in writing, at least 30 days before the anticipated change, of the anticipated date of the change and the name of the new responsible person.
20 Subparagraph 49(1)(a)(i) of the Regulations is replaced by the following:
- (i) it is accredited as a verification body to the ISO Standard 14065 by the Standards Council of Canada, the ANSI National Accreditation Board or any other accreditation organization that is a member of the International Accreditation Forum,
21 Section 50 of the Regulations is amended by adding the following after subsection (2):
Maximum number of verifications
(3) The person responsible for a covered facility must not have more than a total of six of its annual reports prepared under these Regulations for the same covered facility verified by the same verification body within a period of nine years.
22 Section 56 of the Regulations is replaced by the following:
Minimum percentage — charge
56 A minimum of 25% of the compensation that is required under section 174 of the Act must be provided by means of an excess emissions charge payment for each compliance period beginning with the 2022 compliance period.
23 Section 59 of the Regulations is replaced by the following:
Surplus credits
59 For the purposes of section 175 of the Act, 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) 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; or
- (b) the emissions limit or the quantity of GHGs emitted from the covered facility is determined by the Minister for the compliance period under section 53.
24 Section 70 of the Regulations is replaced by the following:
Surplus credits
70 (1) Subject to subsection (2), any surplus credit may be remitted to the Minister for the purposes of subsection 174(1) or paragraph 178(1)(a) of the Act if the credit was issued no more than five calendar years before the remittance.
Details — removal of province
(2) The surplus credit must have been issued in respect of a facility that is located in a province that was listed in Part 2 of Schedule 1 to the Act for at least one day during the compliance period for which the credit is being remitted.
25 (1) The portion of subsection 72(1) of the Regulations before paragraph (a) is replaced by the following:
Suspension — reasonable grounds
72 (1) For the purposes of subsection 180(1) of the Act, the Minister may suspend a surplus credit in an account if the Minister has reasonable grounds to believe that the credit
(2) Section 72 of the Regulations is amended by adding the following after subsection (1):
Suspension — removal of province
(1.1) For the purposes of subsection 180(1) of the Act, the Minister may suspend all surplus credits
- (a) that were issued in respect of a covered facility that is located in a province that was listed in Part 2 of Schedule 1 to the Act but is no longer listed in that Part; and
- (b) that are in an account in the tracking system that is linked to a facility that is located in a province that is no longer listed in Part 2 of Schedule 1 to the Act and ceased being a covered facility at the time when the name of the province in which it is located was removed from Part 2 of Schedule 1 to the Act.
(3) Subsection 72(3) of the Regulations is replaced by the following:
Response
(3) If a credit was suspended on any of the grounds listed in subsection (1), the holder of the account may, within 30 days after the day on which the Minister's notice under subsection (2) is issued, submit to the Minister their reasons why the credit should not be suspended.
Conditional removal of suspension
(4) The person responsible for a facility who holds an account that is linked to the facility in the tracking system in which there remain surplus credits that were suspended as a result of the name of a province being removed from Part 2 of Schedule 1 to the Act may make a request to the Minister to lift the suspension of those surplus credits if the surplus credits are to be provided as compensation for the facility's excess emissions under subsection 174(1) of the Act or paragraph 178(1)(a) of the Act, in respect of a compliance period during which the facility was a covered facility.
26 The portion of section 73 of the Regulations before paragraph (b) is replaced by the following:
Revocation
73 The Minister must, after the period set out in subsection 72(3), thoroughly review the reasons for the suspension that are set out in subsection 72(1) and notify the holder of the account that
- (a) if the Minister determines that the reasons for the suspension are well-founded, the surplus credit is revoked; or
27 Paragraph 75(2)(a) of the Regulations is replaced by the following:
- (a) in the case of surplus credits, have been issued within five calendar years before the deadline indicated in the notice provided under subsection (1) and have been issued in respect of a covered facility located in a province that was listed in Part 2 of Schedule 1 to the Act for at least one day during the compliance period for which the credit is being remitted; and
28 Subparagraph 78(4)(d)(i) of the Regulations is replaced by the following:
- (i) is accredited as a verification body to the ISO Standard 14065 by the Standards Council of Canada, the ANSI National Accreditation Board or any other accreditation organization that is a member of the International Accreditation Forum, and
29 Subsection 93(5) of the Regulations is replaced by the following:
January 1, 2022
(5) Section 56 comes into force on January 1, 2022.
| Item | Column 3 Output-based standard (CO2e tonnes /unit of measurement) |
|---|---|
| 30 | 0.0995 |
31 Schedule 3 of the Regulations is amended by adding the following after the heading “Quantification Requirements”:
Interpretation – Emission Factors
For the purposes of this Schedule, if the method for calculating GHGs set out in column 3 of Parts 1 and 2, Division 1 of Parts 3 to 5, Part 6, Division 1 of Parts 7 and 8, Parts 9 to 17, Division 1 of Part 18, Parts 19 to 24, Table 1 of Part 25, Parts 26 to 35 and Division 1 of Parts 36 to 38 is the method referred to in the GHGRP 2.A and 2.B, the emission factor tables to be used in calculating the GHGs are those set out in the 2020 GHGRP.
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 4 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 6 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
36 The heading of column 5 of Division 1 of Part 3 of Schedule 3 to the French version of the Regulations is replaced by “Méthode d'estimation des données manquantes”.
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Article | Colonne 5 Méthode d'estimation des données manquantes |
|
|---|---|---|
| 1 | Méthode d'ECCC, section 2.D | |
| 2 | a) | Méthode de la WCI, disposition WCI.205 |
| b) | Méthode de la WCI, disposition WCI.205 | |
| c) | Méthode de la WCI, disposition WCI.205 | |
| 3 | a) | Méthode de la WCI, disposition WCI.135 |
| b) | Méthode de la WCI, disposition WCI.205 | |
| c) | Méthode de la WCI, disposition WCI.205 | |
| d) | Méthode de la WCI, disposition WCI.205 | |
| 4 | Méthode de la WCI, disposition WCI.205 | |
| 5 | Méthode de la WCI, disposition WCI.205 | |
| 6 | a) | Méthode de la WCI, disposition WCI.205 |
| b) | Méthode de la WCI, disposition WCI.205 | |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 7 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
40 The heading of column 5 of Division 1 of Part 4 of Schedule 3 to the French version of the Regulations is replaced by “Méthode d'estimation des données manquantes”.
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Article | Colonne 5 Méthode d'estimation des données manquantes |
|---|---|
| 1 | Méthode d'ECCC, section 2.D |
| 2 | Méthode de la WCI, disposition WCI.365 |
| 3 | Méthode de la WCI, disposition WCI.365 |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 4 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 5 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 2 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 2 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 6 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 6 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 2 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 8 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
71 (1) The description of A in section 1 of Division 2 of Part 18 of Schedule 3 to the French version of the Regulations is replaced by the following:
- A représente la capacité de chaque cuve « i » utilisée pour mélanger les ingrédients ensemble à cette étape, exprimée en litres;
(2) The description of “i” in section 1 of Division 2 of Part 18 of Schedule 3 to the English version of the Regulations is replaced by the following:
- i is 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.
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 5 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 2 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 2 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 2 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 2 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 2 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B |
2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 2 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B |
2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 2 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|
|---|---|---|
| 1 | (a) | GHGRP 2.A and 2.B, except for biomass fuels, other than those set out in Tables 2-3 and 2-11 of the GHGRP, use the emission factors provided in Table 20-2 of WCI Method WCI.20(a) |
| (b) | For fossil fuels, GHGRP 2.A and 2.B and for pulping liquor, WCI Method WCI.213(c)(a) | |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 (d) | GHGRP 2.B, except use the default emission factors for lime kilns set out in Table 210-1 of WCI Method WCI.213(a) |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 4 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
| Item | Column 3 Method for Calculating GHGs |
|---|---|
| 1 | GHGRP 2.A and 2.B |
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 3 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
110 Subitem 1(2) of Division 1 of Part 38 of Schedule 3 to the Regulations is repealed.
| Item | Column 3 Method for Calculating GHGs |
Column 4 Sampling, Analysis and Measurement Requirements |
Column 5 Method for Estimating Missing Analytical Data |
|---|---|---|---|
| 4 | 2020 GHGRP 2.A.1.a, 2.A.2.e and 2.B | 2020 GHGRP 2.D | 2020 GHGRP 2.E |
112 Subparagraph 3(h.1)(i) of Schedule 5 to the Regulations is replaced by the following:
- (i) for each unit whose electricity generation capacity from gaseous fuels was increased by 50 MW or more and that is designed to operate at a thermal energy to electricity ratio of less than 0.9, separately, the gross amount of electricity generated during the compliance period by each unit that is attributed to the capacity added to the unit and the gross amount of electricity generated that is attributed to capacity of the unit before the additional capacity was added, and
Coming into Force
113 (1) Subject to subsections (2) and (3), these Regulations come into force on January 1, 2022 and apply with respect to the 2022 compliance period and subsequent compliance periods.
(2) Sections 3, 4 and 6 are deemed to have come into force on January 1, 2021.
(3) Sections 1, 9 to 11, 13, 17, 30, 31 to 35, 37, 39, 41, 43 to 70 and 72 to 111 are deemed to have come into force on January 1, 2021 and apply from that date with respect to the 2021 compliance period and subsequent compliance periods.