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Environmental Protection Act
Loi sur la protection de l'environnement

ONTARIO REGULATION 390/18

GREENHOUSE GAS EMISSIONS: QUANTIFICATION, REPORTING AND VERIFICATION

Historical version for the period August 1, 2018 to January 31, 2019.

No amendments.

This Regulation is made in English only.

CONTENTS

Interpretation and Application

1.

Interpretation

2.

Application

3.

Greenhouse gas

4.

Calculation of amount of greenhouse gas

Facilities at which Specified GHG Activities Are Engaged In

5.

Duty to quantify, calculate

6.

Duty to report

7.

Continuing duty to report

8.

Duty to verify

9.

Continuing duty to verify

10.

Mid-year 2018 report and verification, specified GHG activities

Electricity Importation, Natural Gas Distribution and Petroleum Product Supply

11.

Duty to calculate, report and verify

12.

Continuing duty to report, verify

13.

Mid-year 2018 report and verification, electricity importation, etc

General Rules

14.

Reporting, general

15.

Revised reports

16.

Accredited verification bodies, general duties

17.

Accredited verification bodies, duties re impartiality

18.

Verification statements

19.

Types of verification statements

20.

Production parameter verification conclusions

21.

Verification reports

22.

Compromise to impartiality

23.

Requests for information

24.

Retention of records

25.

Change in information

26.

Giving or submitting records, form and manner

Schedule 1

Greenhouse gases and global warming potentials

Schedule 2

Specified ghg activities (subsection 1 (1))

Schedule 3

Records to be retained (subsection 24 (1))

Schedule 4

Biomass criteria (subsection 1 (1))

Schedule 5

Contents of report

Schedule 6

Contents of mid-year 2018 report (sections 10 and 13)

Interpretation and Application

Interpretation

1. (1) In this Regulation,

“accredited verification body” means a verification body that is accredited to ISO 14065 by a member of the International Accreditation Forum;

“associated gas” means gas found in association with crude oil, either dissolved in crude oil or as a cap of free gas above the crude oil;

“biogas” means a gas made from the anaerobic digestion of organic matter in wastewater or wastewater treatment systems;

“biomass” means organic matter, other than source separated organics and peat or peat derivatives, that meets the criteria set out in Schedule 4;

“Cap and Trade Program Regulation” means Ontario Regulation 144/16 (The Cap and Trade Program) made under the Climate Change Mitigation and Low-carbon Economy Act, 2016, as that Regulation read on July 2, 2018;

“capped participant” means a mandatory participant or a voluntary participant;

“CO2e” means, when used in reference to a quantity of greenhouse gas, the equivalent quantity of carbon dioxide, calculated in accordance with section 4;

“Director” means the Director appointed under section 5 of the Act in respect of the section of this Regulation in which the reference appears;

“distribution system” has the same meaning as in subsection 2 (1) of the Electricity Act, 1998;

“facility” means all buildings, equipment, structures and stationary items, such as surfaces and storage piles that,

(a) are owned or operated by the same person, and

(b) are located,

(i) on a single site,

(ii) on two or more adjacent sites that function as a single integrated site, or

(iii) in the case of a pipeline transportation system, a transmission system or a distribution system, on two or more sites that are not adjacent;

“fractionation facility” means a facility at which liquefied natural gas is fractionated into its constituent liquid products, including ethane, propane, normal butane, isobutene or pentanes plus;

“general stationary combustion equipment” includes any stationary combustion devices, including boilers, simple and combined cycle combustion turbines, engines, incinerators (including units that combust hazardous waste or gaseous waste) and process heaters but does not include,

(a) portable equipment,

(b) stationary emergency generators that have a nameplate generating capacity of less than 10 megawatts, and

(c) any auxiliary fossil fuel powered equipment, other than stationary emergency generators, that is intended for use only in emergency situations, including fire pumps and flares;

“Guideline” means the guideline published by the Ministry and available from the Ministry, entitled “Guideline for Quantification, Reporting and Verification of Greenhouse Gas Emissions”, as amended from time to time;

“IESO” has the same meaning as in subsection 2 (1) of the Electricity Act, 1998;

“indirect useful thermal energy” means thermal energy that is generated at one facility and transferred to another facility;

“ISO 14064-3” means standard ISO 14064-3, published by the International Organization for Standardization (ISO) and entitled “Greenhouse gases — Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions”, as amended from time to time;

“ISO 14065” means standard ISO 14065, published by the International Organization for Standardization (ISO) and entitled “Greenhouse gases — Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition”, as amended from time to time;

“liquefied natural gas” means natural gas that has been liquefied by reducing its temperature to minus 162 degrees Celsius at atmospheric pressure;

“mandatory participant” means a person who was registered on July 2, 2018 as a mandatory participant under the Climate Change Mitigation and Low-carbon Economy Act, 2016;

“NAICS” means the North American Industry Classification System maintained for Canada by Statistics Canada, as amended or revised from time to time;

“natural gas” includes liquefied natural gas;

“Ontario Regulation 143/16” means Ontario Regulation 143/16 (Quantification, Reporting and Verification of Greenhouse Gas Emissions) made under the Climate Change Mitigation and Low-carbon Economy Act, 2016 as that Regulation read the day before Ontario Regulation 389/18 made under that Act comes into force;

“Ontario Regulation 452/09” means Ontario Regulation 452/09 (Greenhouse Gas Emissions Reporting) made under the Act as that Regulation read immediately before Ontario Regulation 390/18 made under the Act comes into force;

“petroleum product” means a petroleum product that is listed in the Guideline as a petroleum product;

“pipeline transportation system” means a facility consisting of a system of pipelines in Ontario, or a part of such a system, that transports natural gas and its associated installations, including storage installations but excluding straddle plants or other processing installations;

“portable” means, when used in reference to a piece of equipment, equipment that is designed to be and can be moved from one location to another, subject to subsection (2);

“process gas” means blast furnace gas or coke oven gas from a blast furnace or coke oven located at a facility at which iron and steel production is engaged in;

“refinery fuel gas” means gas generated at a petroleum refinery process unit, including still gas and flexigas, or associated gas;

“report” means a report required to be given to the Director under this Regulation or under Ontario Regulation 143/16;

“reporting amount” means the reporting amount determined under section 6;

“source separated organics” has the same meaning as in Ontario Regulation 160/99 (Definitions and Exemptions) made under the Electricity Act, 1998;

“specified GHG activity” means an activity set out in Column 1 of Schedule 2, as described in Column 2 of that Schedule;

“transmission system” has the same meaning as in subsection 2 (1) of the Electricity Act, 1998;

“verification amount” means the verification amount determined under section 8;

“voluntary participant” means a person who was registered on July 2, 2018 as a voluntary participant under the Climate Change Mitigation and Low-carbon Economy Act, 2016;

“year” means a calendar year.

(2) For the purposes of this Regulation, a piece of equipment is not portable if any of the following circumstances apply:

1. It is attached to a foundation.

2. It is at the same location at a facility for more than 12 consecutive months.

3. It has been located at a seasonal facility for two or more years and is used on a regular basis during at least three months of the year.

4. It is moved from one location to another in an attempt to circumvent the requirements of this Regulation.

(3) For the purposes of the definition of “facility”, two sites are adjacent if the boundary of one site touches or, were it not for an intervening highway, road allowance, railway line, railway allowance or utility corridor, would touch the boundary of the other site.

(4) Where this Regulation incorporates by reference a provision of ISO 14064-3 or ISO 14065, the definitions set out in the standard are incorporated by reference for the purposes of interpreting the provision, except if the term has been defined in this Regulation, in which case the definition in this Regulation applies for the purposes of interpreting the provision.

Application

2. (1) This Regulation applies in respect of activities engaged in by persons on or after January 1, 2017.

(2) The requirements in this Regulation relating to a greenhouse gas apply only in respect of a greenhouse gas listed in Column 1 of Schedule 1.

(3) This Regulation does not apply to the IESO.

Greenhouse gas

3. For the purposes of clause (g) of the definition of “greenhouse gas” in subsection 1 (1) of the Act, nitrogen trifluoride is prescribed as a greenhouse gas.

Calculation of amount of greenhouse gas

4. The amount of greenhouse gas in tonnes of CO2e shall be calculated for the purposes of this Regulation by applying the following formula:

where,

E = the amount of greenhouse gas, expressed in tonnes of CO2e,

GHGi = the total amount of greenhouse gas i, expressed in tonnes,

GWPi = the global warming potential for greenhouse gas i, being the number set out in Column 5 of Schedule 1 opposite the greenhouse gas,

n = the number of greenhouse gases, and

i = the greenhouse gas.

Facilities at which Specified GHG Activities Are Engaged In

Duty to quantify, calculate

5. (1) This section applies to a person who is the owner or operator of a facility at which a specified GHG activity is engaged in during a year.

(2) The person is required to quantify the amount of greenhouse gas emitted during all specified GHG activities at the facility during a year.

(3) If the facility meets the criteria set out in Column 1 of the following Table, the person is required to calculate the amount of greenhouse gas set out opposite the criteria in Column 2 of the Table:

TABLE
Calculations

Item

Column 1

Criteria

Column 2

Amount to be calculated

1.

Indirect useful thermal energy use is engaged in at the facility.

The amount of greenhouse gas emitted during the generation of the indirect useful thermal energy at another facility.

2.

1. Iron and steel production is engaged in at the facility.

2. Process gas is transferred from the facility to another facility and used at the other facility.

The amount of greenhouse gas emitted during the use of the transferred process gas at the other facility.

3.

1. The owner or operator of the facility was a capped participant within the meaning of the Cap and Trade Program Regulation.

2. Natural gas is distributed to the facility by a capped participant that engages in natural gas distribution.

3. Some or all of the natural gas mentioned in paragraph 2 that is recorded by the natural gas billing meter that is used to bill the owner or operator for the natural gas is used at another facility that is owned or operated by a person that,

i. is not required to report and verify the amount of greenhouse gas emitted during all specified GHG activities at that facility, or

ii. is required to report and verify the amount mentioned in subparagraph i but meets the criteria set out in paragraphs 1 to 5 of subsection 21 (1) of the Cap and Trade Program Regulation.

The amount of greenhouse gas emitted during the use of the natural gas at the other facility.

4.

The facility is located at one of the following addresses and the owner or operator of the facility pays a natural gas distributor in the year for some or all of the natural gas that is distributed to the facility located at 1741 River Road, Sarnia, at which the specified GHG activity of electricity generation is engaged in:

1.  785 Petrolia Line, Corunna.

2.  872 Tashmoo Avenue, Sarnia.

3.  1900 River Road, Sarnia.

4.  1265 Vidal Street, Sarnia.

5.  510 Moore Line, Mooretown.

6.  285 Albert Street, Corunna.

The amount of greenhouse gas emitted at the facility located at 1741 River Road, Sarnia during the use of the natural gas that is paid for by the person.

 

(4) Amounts calculated under subsection (3) are deemed to be quantifications of greenhouse gas emitted during specified GHG activities at the facility during a year and shall be included in the final quantification required under subsection (2).

(5) The person shall, subject to subsection (6), use the standard quantification methods set out in the Guideline to quantify the amount in respect of each specified GHG activity and any amount calculated under subsection (3).

(6) The person may use methods other than the standard quantification methods in quantifying a maximum of the lesser of 20,000 tonnes and 3 per cent of the final quantification required under subsection (2).

(7) The following rules apply where the standard quantification methods in respect of an activity or an amount to be calculated under subsection (3) include a choice of calculation methodologies:

1. The person shall select one of the calculation methodologies and use it for all subsequent quantifications in respect of the activity or all subsequent calculations of the amount under subsection (3), as the case may be, unless the Director consents in writing to the use of another methodology.

2. If the Director consents to the use of another methodology, the person shall use the methodology consented to for all subsequent quantifications in respect of the activity or all subsequent calculations of the amount under subsection (3), as the case may be, unless the Director consents in writing to the use of another methodology.

(8) All amounts of greenhouse gas quantified or calculated shall be expressed as tonnes of CO2e.

(9) If the reporting amount or the verification amount is a number that is not a whole number when expressed in tonnes, the number shall be rounded up to the nearest tonne.

(10) For the purposes of this section, if there is a change during a year in the owner or operator of a facility, the owner or operator at the end of the year is deemed to have been the owner or operator for the entire year.

(11) For greater certainty, quantifications and calculations carried out in accordance with Ontario Regulation 143/16 before the day Ontario Regulation 389/18 made under the Climate Change Mitigation and Low-carbon Economy Act, 2016 came into force are deemed to have been carried out in accordance with this section.

Duty to report

6. (1) This section applies to a person who is required under section 5 to quantify the amount of greenhouse gas emitted during all specified GHG activities at a facility during a year.

(2) The person is required to give a report to the Director with respect to the specified GHG activities engaged in at the facility for the year if the reporting amount in respect of the facility for the year, determined in accordance with the following formula, is 10,000 tonnes of CO2e or more:

R = (A – B – C)

where,

R = the reporting amount,

A = the amount of greenhouse gas emitted during all specified GHG activities engaged in at the facility, quantified in accordance with section 5,

B = the portion of A that is carbon dioxide emitted from the combustion of biomass, and

C = the amount of greenhouse gas emitted during the generation of indirect useful thermal energy at another facility in respect of which a calculation is required under subsection 5 (3).

(3) A report with respect to activities engaged in during a year shall be given to the Director on or before June 1 in the following year.

(4) A person who was required under Ontario Regulation 143/16 to give a report with respect to specified GHG activities engaged in during 2017 to the Director shall, if the report was not given to the Director before the day this section comes into force, give the report to the Director as soon as possible.

(5) For greater certainty, a report with respect to 2017 that was given in accordance with Ontario Regulation 143/16 before the day Ontario Regulation 389/18 made under the Climate Change Mitigation and Low-carbon Economy Act, 2016 came into force is deemed to be a report given in accordance with this section.

(6) The report shall contain all applicable information set out in Schedule 5.

Continuing duty to report

7. (1) A person who is required to give the Director a report with respect to specified GHG activities engaged in at a facility for a year shall give the Director a report with respect to the specified GHG activities engaged in at the facility for each subsequent year.

(2) A person who was required under subsections 6 (2) to (4) of Ontario Regulation 143/16 to give the Director a report with respect to the activities for 2017 and for each subsequent year is required to give the Director those reports in accordance with those provisions as if they had not been revoked, subject to subsection (3).

(3) For the purpose of applying subsections 6 (2) to (4) of Ontario Regulation 143/16, those provisions are not subject to section 7, 8, 8.1 or 9 of that Regulation.

(4) Subject to subsection (5), the requirement in subsections (1) and (2) to give reports with respect to specified GHG activities engaged in at a facility for subsequent years ceases to apply in a year to a person if,

(a) the person has complied with this Regulation or Ontario Regulation 143/16 for the three consecutive years preceding the year; and

(b) the reporting amount in respect of the facility has been less than 10,000 tonnes of CO2e for each of those years.

(5) Subsection (4) ceases to apply to a person if, for any year following its application, the reporting amount in respect of the facility is 10,000 tonnes of CO2e or more.

(6) Subject to subsection (7), the requirements in subsections (1) and (2) cease to apply to a person if the specified GHG activities permanently cease to be engaged in at the facility and the person complies with the following requirements:

1. The person shall provide notice to the Director that the activities have ceased permanently.

2. The person shall give the Director a report in respect of the final year in which the activities were engaged in at the facility.

3. If the person was a capped participant, the person shall have the report mentioned in paragraph 2 verified by an accredited verification body in accordance with this Regulation and shall submit a verification statement prepared in accordance with section 18 and a verification report prepared in accordance with section 21 to the Director.

(7) The requirement under subsection (2) for a person that became a voluntary participant pursuant to section 31.1 of the Cap and Trade Program Regulation to give reports for subsequent years ceases to apply to the person if the use of indirect useful thermal energy at the facility permanently ceases and the person,

(a) provides notice to the Director that the activity has ceased permanently;

(b) gives the Director a report in respect of the final year in which the activity was engaged; and

(c) has the report mentioned in clause (b) verified and submits a verification statement and a verification report to the Director, as required by this Regulation.

(8) A report for a subsequent year under this section shall be given on or before June 1 in the year following the year for which the report is prepared.

(9) The report shall contain all applicable information set out in Schedule 5 with respect to the subsequent year.

Duty to verify

8. (1) A person who is required to give the Director a report with respect to specified GHG activities engaged in at a facility is required to have the report verified by an accredited verification body in accordance with this Regulation if the verification amount in respect of the facility for the year, determined in accordance with the following formula, is 25,000 tonnes of CO2e or more:

V = (A – B − C) − (D − E)

where,

V = the verification amount,

A = the amount of greenhouse gas emitted during all specified GHG activities engaged in at the facility, quantified in accordance with section 5,

B = the portion of A that is carbon dioxide emitted from the combustion of biomass,

C = the amount of greenhouse gas emitted during the generation of indirect useful thermal energy at another facility in respect of which a calculation is required under subsection 5 (3),

D = the portion of A that is emitted,

(a) from coal storage,

(b) during the operation of equipment related to the transmission, storage and transportation of natural gas,

(c) as fugitive HFC emissions during the operation of cooling units at electricity generators, and

(d) as fugitive emissions during the operation of geothermal electricity generating facilities, and

E = the portion of D that is carbon dioxide emitted from the combustion of biomass.

(2) The person shall submit a verification statement prepared in accordance with section 18 and a verification report prepared in accordance with section 21 to the Director on or before September 1 in the same year in which the report was required to be given to the Director.

Continuing duty to verify

9. (1) This section applies to the following persons:

1. A person who is required under section 8 to have a report with respect to specified GHG activities engaged in at a facility verified.

2. A person described in paragraph 1, 2 or 3 of subsection 11 (1) of Ontario Regulation 143/16.

(2) Subject to subsection (4), the person shall have each subsequent report with respect to specified GHG activities engaged in at the facility verified by an accredited verification body in accordance with this Regulation.

(3) The person shall submit a verification statement prepared in accordance with section 18 and a verification report prepared in accordance with section 21 to the Director on or before September 1 in the same year in which the verified report was required to be given to the Director.

(4) Subject to subsection (5), the requirement in subsection (2) to have subsequent reports verified ceases to apply to a person if,

(a) the person has complied with this Regulation or Ontario Regulation 143/16, as the case may be, for the three consecutive years preceding the year; and

(b) the verification amount in respect of the facility is less than 25,000 tonnes of CO2e for each of those years.

(5) Subsection (4) ceases to apply to a person if, for any year following its application, the verification amount in respect of the facility is 25,000 tonnes of CO2e or more.

Mid-year 2018 report and verification, specified GHG activities

10. (1) Subject to subsection (2), this section applies to a person who was,

(a) required under section 4 of Ontario Regulation 143/16 to quantify the amount of greenhouse gas emitted during all specified GHG activities at a facility; and

(b) a capped participant who was required, immediately before Ontario Regulation 389/18 made under the Climate Change Mitigation and Low-carbon Economy Act, 2016 came into force, to have a report verified in 2018 under Ontario Regulation 143/16.

(2) This section does not apply in respect of a capped participant for whom the applicable requirements in section 6 of Ontario Regulation 143/16 ceased to apply in 2018 under section 9 of Ontario Regulation 143/16.

(3) A person to whom this section applies shall, no later than October 1, 2018, give a report containing all applicable information set out in Schedule 6 to the Director with respect to the specified GHG activities engaged in at the facility for the period beginning on January 1, 2018 and ending on July 3, 2018.

(4) The person shall have the report verified by an accredited verification body in accordance with this Regulation and shall submit a verification statement in accordance with section 18 and a verification report in accordance with section 21 to the Director on or before December 1, 2018.

(5) Except where otherwise specified, sections 14, 16, 17, 18, 19, 21 and 22 apply in respect of the report and verification required under this section.

(6) For the purposes of this section, if there is a change during the period beginning on January 1, 2018 and ending on July 3, 2018 in the owner or operator of a facility, the owner or operator at the end of the period is deemed to have been the owner or operator for the entire period.

Electricity Importation, Natural Gas Distribution and Petroleum Product Supply

Duty to calculate, report and verify

11. (1) If a person described in Column 1 of the Table to this section satisfies the criteria set out opposite the person in Column 2 of the Table, the person shall,

(a) calculate, in each year, the amount of the greenhouse gas emissions set out opposite the person in Column 3 of the Table;

(b) give the Director a report with respect to the applicable activity (electricity importation, natural gas distribution or petroleum product supply) during the year if the criteria set out opposite the person in Column 4 of the Table are met; and

(c) have the report verified by an accredited verification body in accordance with this Regulation if the criteria set out opposite the person in Column 5 of the Table are met.

(2) The person shall, subject to subsection (3), use the standard quantification method or methods set out in the Guideline to calculate the amount of greenhouse gas emissions.

(3) With respect to calculations in respect of natural gas distribution, the person may use a method other than the standard quantification methods in quantifying a maximum of the lesser of 20,000 tonnes and 3 per cent of the greenhouse gas emissions.

(4) The following rules apply where the standard quantification methods in respect of the applicable activity include a choice of calculation methodologies:

1. The person shall select one of the calculation methodologies and use it for all subsequent quantifications in respect of the activity, unless the Director consents in writing to the use of another methodology.

2. If the Director consents to the use of another methodology, the person shall use the methodology consented to for all subsequent quantifications in respect of the activity, unless the Director consents in writing to the use of another methodology.

(5) All amounts of greenhouse gas emissions calculated shall be expressed as tonnes of CO2e.

(6) If the amount of greenhouse gas emissions in respect of an activity is a number that is not a whole number when expressed in tonnes, the number shall be rounded up to the nearest tonne.

(7) The activity in Column 3 of Item 3 of the Table to this section includes the supply of a petroleum product only if the supply meets the following criteria:

1. The product must be supplied for use as a fuel in an application other than aviation or marine applications.

2. If the product is supplied by first placing it on the Ontario market through its use in Ontario, the use must not be at a petroleum refinery or at a fractionation facility.

(8) For the purposes of this Regulation, a transfer or sale of a petroleum product to the owner or operator of a petroleum refinery or fractionation facility in Canada is not first placing the petroleum product on the Ontario market.

(9) If there is a change during a year in the owner or operator of a pipeline transportation system used for natural gas distribution, the owner or operator at the end of the year is deemed to have been the owner or operator for the entire year.

(10) A person who was required under Ontario Regulation 143/16 to give a report with respect to electricity importation, natural gas distribution or petroleum product supply during 2017 to the Director shall, if the report was not given to the Director before the day this section comes into force, give the report to the Director as soon as possible.

(11) For greater certainty, a report with respect to 2017 that was given in accordance with Ontario Regulation 143/16 before the day Ontario Regulation 389/18 made under the Climate Change Mitigation and Low-carbon Economy Act, 2016 came into force is deemed to be a report given in accordance with this section.

(12) The report shall contain all applicable information set out in Schedule 5.

(13) A report with respect to an activity engaged in during a year shall be given to the Director on or before June 1 in the following year.

(14) The person shall submit a verification statement prepared in accordance with section 18 and a verification report prepared in accordance with section 21 to the Director on or before September 1 in the same year in which the verified report was required to be given to the Director.

TABLE

Item

Column 1

Person

Column 2

Criteria

Column 3

Amount to be calculated

Column 4

Threshold for reporting

Column 5

Threshold for verification

1.

A person who imports electricity into Ontario.

The person must be a market participant within the meaning of subsection 2 (1) of the Electricity Act, 1998.

The amount of greenhouse gas emitted from the generation of the electricity imported into Ontario for consumption in Ontario.

The amount calculated for the year is greater than zero tonnes of CO2e.

The amount calculated for the year is greater than zero tonnes of CO2e.

2.

A person who distributes natural gas in Ontario.

The person must physically deliver natural gas to a person in Ontario for consumption by the person to whom it was delivered.

The amount of greenhouse gas that would be emitted from the consumption of the natural gas physically delivered to a person in Ontario for consumption by the person to whom it was delivered.

The amount calculated for the year is 10,000 tonnes of CO2e or more.

The amount calculated for the year is 25,000 tonnes of CO2e or more.

3.

A person who supplies petroleum products for consumption in Ontario.

The person must be one of the following:

1.  An owner or operator of a petroleum refinery.

2.  An owner or operator of a fractionation facility.

3.  A person who imports a petroleum product into Ontario.

The amount of greenhouse gas that would be emitted from the use of the petroleum products supplied by the person by first placing it on the Ontario market through the use of it in Ontario or through the transfer or sale of it, at wholesale or retail, to a person in Ontario for use in Ontario, subject to the exceptions set out in subsections (7) and (8).

The amount of petroleum products supplied for consumption in Ontario during the year is 200 litres or more.

The amount of petroleum products supplied for consumption in Ontario during the year is 200 litres or more.

Continuing duty to report, verify

12. (1) A person who is required to give the Director a report with respect to electricity importation, natural gas distribution or petroleum product supply for a year shall give the Director a report with respect to the activity for each subsequent year, which report shall be given on or before June 1 in the year following the subsequent year.

(2) Subject to subsection (3), the requirement in subsection (1) to give reports for subsequent years ceases to apply in a year to a person in respect of electricity importation, natural gas distribution or petroleum product supply, as the case may be, if the person has complied with the applicable requirements of this Regulation or Ontario Regulation 143/16, as the case may be, for the three consecutive years preceding the year and one of the following criteria is met:

1. In the case of natural gas distribution, the amount of greenhouse gas emissions associated with the activity has been less than 10,000 tonnes of CO2e for each of those years.

2. In the case of electricity importation, the amount of greenhouse gas emissions associated with the activity has been zero tonnes of CO2e for each of those years.

3. In the case of petroleum product supply, the amount of petroleum products supplied by the person has been less than 200 litres for each of those years.

(3) Subsection (2) ceases to apply to a person if, for any year following its application,

(a) in the case of natural gas distribution, the amount of greenhouse gas emissions associated with the activity is 10,000 tonnes of CO2e or more;

(b) in the case of electricity importation, the amount of greenhouse gas emissions associated with the activity is more than zero tonnes of CO2e; or

(c) in the case of petroleum product supply, the amount of petroleum products supplied by the person is 200 litres or more.

(4) The requirement in subsection (1) to give reports for subsequent years ceases to apply to a person in respect of an activity if the person permanently ceases to engage in the activity and the person,

(a) provides notice to the Director that the activity has ceased permanently;

(b) gives the Director a report in respect of the final year in which the activity was engaged in; and

(c) has the report mentioned in clause (b) verified by an accredited verification body in accordance with this Regulation and submits a verification statement in accordance with section 18 and a verification report in accordance with section 21 to the Director.

(5) The person shall submit a verification statement prepared in accordance with section 18 and a verification report prepared in accordance with section 21 to the Director on or before September 1 in the same year in which the report was required to be given to the Director.

(6) Subject to subsection (7), a person who is required to have a report with respect to natural gas distribution verified shall have each subsequent report with respect to the activity verified by an accredited verification body in accordance with this Regulation.

(7) Subject to subsection (8), the requirement to have subsequent reports with respect to natural gas distribution verified ceases to apply to a person in a year if,

(a) the person has complied with this Regulation or Ontario Regulation 143/16 for the three consecutive years preceding the year; and

(b) the amount of greenhouse gas emissions associated with the activity has been less than 25,000 tonnes of CO2e for each of those years.

(8) Subsection (7) ceases to apply to a person if, for any year following its application, the amount of greenhouse gas emissions associated with the activity is 25,000 tonnes of CO2e or

more.

Mid-year 2018 report and verification, electricity importation, etc

13. (1) Subject to subsection (2), this section applies to a person who was,

(a) required under section 12 of Ontario Regulation 143/16 to calculate greenhouse gas emissions associated with an activity; and

(b) a capped participant who was required, immediately before Ontario Regulation 389/18 made under the Climate Change Mitigation and Low-carbon Economy Act, 2016 came into force, to have a report verified in 2018 under Ontario Regulation 143/16.

(2) This section does not apply in respect of a capped participant for whom the applicable requirements in section 14 of Ontario Regulation 143/16 ceased to apply in 2018 under section 19 of Ontario Regulation 143/16.

(3) A person to whom this section applies shall, no later than October 1, 2018, give a report containing all applicable information set out in Schedule 6 to the Director with respect to the activity mentioned in clause (1) (a) for the period beginning on January 1, 2018 and ending on July 3, 2018.

(4) The person shall have the report verified by an accredited verification body in accordance with this Regulation and shall submit a verification statement prepared in accordance with section 18 and a verification report prepared in accordance with section 21 to the Director on or before December 1, 2018.

(5) Except where otherwise specified, sections 14, 16, 17, 18, 19, 21 and 22 apply in respect of the report and verification required under this section.

(6) For the purposes of this section, if there is a change during the period beginning on January 1, 2018 and ending on July 3, 2018 in the owner or operator of a pipeline transportation system used for natural gas distribution, the owner or operator at the end of the period is deemed to have been the owner or operator for the entire period.

General Rules

Reporting, general

14. (1) This section applies in respect of reports given to the Director under this Regulation.

(2) A report with respect to specified GHG activities engaged in at a facility must be with respect to all specified GHG activities engaged in at the facility.

(3) If a person is required to give the Director a report with respect to specified GHG activities engaged in at more than one facility, a separate report must be given with respect to each facility.

(4) If a person is required to give the Director a report with respect to more than one of the following activities, the person shall give the Director a separate report with respect to each activity: electricity importation, natural gas distribution or petroleum product supply.

(5) Reports mentioned in subsection (2) shall not be combined with reports mentioned in subsection (4).

(6) A person who is required to give the Director a report shall comply with all applicable sampling, analysis, measurement and recordkeeping requirements set out in the Guideline.

(7) If the Guideline specifies that certain emissions are to be reported as emitted from a particular specified GHG activity, the emissions shall be reported as specified in the Guideline.

Revised reports

15. (1) A person who gives a report to the Director shall revise the report and give the revised report to the Director if the person has become aware of an error, omission or misstatement in the report within seven years after the date the report was given to the Director and the person has made one of the following determinations:

1. The per cent discrepancy in the amount mentioned in subsection (2) is 5 per cent or more, as determined in accordance with subsection (3).

2. It is probable that the per cent discrepancy in the amount mentioned in subsection (2) is 5 per cent or more, based on the individual or aggregate effect of one or more errors, omissions or misstatements identified.

3. The per cent discrepancy in any production parameter reported in respect of an activity is 0.1 per cent or more, as determined in accordance with subsection (4).

(2) For the purposes of subsection (1), the relevant amount is,

(a) the verification amount, if the report was given to the Director with respect to specified GHG activities;

(b) the amount of greenhouse gas emissions associated with electricity importation, natural gas distribution or petroleum product supply, as the case may be, if the report was given to the Director with respect to one of those activities; or

(c) the amount determined under paragraph 4 of section 31.1 of the Cap and Trade Program Regulation, if that amount is required to be included in a report.

(3) The per cent discrepancy in an amount mentioned in subsection (2) shall be determined by applying the following formula:

PD = (SOU / TRE × 100)

where,

PD = per cent discrepancy,

SOU = the net result of summing overstatements and understatements resulting from errors, omissions and misstatements, expressed in tonnes of CO2e, and

TRE = the amount.

(4) The per cent discrepancy for each production parameter reported in respect of an activity shall be determined by applying the following formula:

PD = (QPDv − QPDi) / QPDi × 100

where,

PD = per cent discrepancy for the production parameter,

QPDv = actual quantity of the production parameter, and

QPDi = quantity of the production parameter as set out in the report.

(5) The person may revise a report and give the revised report to the Director within seven years after the date the report was given to the Director if,

(a) the per cent discrepancy in an amount mentioned in subsection (2) is less than 5 per cent; or

(b) the per cent discrepancy in the production parameter under subsection (4) is less than 0.1 per cent.

(6) Subject to subsection (7), the revised report must be given to the Director as soon as possible.

(7) If the revised report is required to be verified under subsection (8), the person shall give the revised report to the Director within 90 days after the day the person became aware of the error, omission or misstatement.

(8) A person who gives the Director a revised report shall have the revised report verified by an accredited verification body in accordance with this Regulation and submit to the Director a new verification statement prepared in accordance with section 18 and a new verification report prepared in accordance with section 21 if either of the following circumstances applies:

1. The revised report would have been required to be verified if it had been the original report given to the Director.

2. The revised report would not have been required to be verified if it had been the original report given to the Director, but the original report was required to be verified.

(9) A verification statement and verification report required under subsection (8) shall be submitted to the Director within 120 days after the day the person became aware of the error, omission or misstatement that led the person to prepare the revised report.

(10) This section does not apply with respect to a report required under section 10 or 13.

Accredited verification bodies, general duties

16. (1) In verifying reports under this Regulation, an accredited verification body shall comply with,

(a) clause 6.3 of ISO 14065, as it relates to verification teams; and

(b) clauses 4.2 to 4.10 of ISO 14064-3, as they relate to verification, except for clauses 4.3.1 and 4.3.5.

(2) In verifying reports under this Regulation, an accredited verification body shall ensure that,

(a) any person selected to form part of a verification team meets the requirements for a verifier set out in clause 4.1 of ISO 14064-3;

(b) no person selected to form part of a verification team subcontracts the conduct of verifications to another person;

(c) each verification is reviewed by a peer reviewer in accordance with clause 8.5 of ISO 14065, as it relates to verification activities; and

(d) before a positive, qualified positive or adverse verification statement is prepared, the determination that forms the basis of the statement is reviewed by the peer reviewer.

(3) For the purposes of clause 4.6 of ISO 14064-3, if the report is with respect to a specified GHG activity engaged in at a facility, the accredited verification body shall visit the facility if,

(a) the report is the first report with respect to the facility;

(b) no accredited verification body has visited the facility for the purposes of conducting a verification of the two most recent reports with respect to the facility;

(c) the most recent verification of a report with respect to the facility resulted in an adverse verification statement being submitted to the Director;

(d) the verification is the first by the accredited verification body in respect of a report prepared with respect to the facility; or

(e) the accredited verification body is of the opinion that a visit to the facility is necessary for the purposes of determining whether the report contains a material discrepancy.

(4) For the purposes of clause 4.6 of ISO 14064-3, in the case of a report given to the Director by a person with respect to electricity importation, natural gas distribution or petroleum product supply, the accredited verification body shall visit the headquarters or other location of central data management of the person if,

(a) the report is the first report by the person with respect to the activity;

(b) no accredited verification body has visited the headquarters or other location for the purposes of conducting a verification of the two most recent reports by the person with respect to the activity;

(c) the most recent verification of a report by the person with respect to the activity resulted in an adverse verification statement being submitted to the Director;

(d) the verification is the first by the accredited verification body in respect of a report prepared by the person with respect to the activity; or

(e) the accredited verification body is of the opinion that a visit to the headquarters or other location is necessary for the purposes of determining whether the report contains a material discrepancy.

(5) For the purposes of determining under clauses (3) (b) and (4) (b) whether a visit has occurred in respect of the two most recent reports, a visit in respect of a report under section 10 or 13 shall not be included in the determination.

(6) For the purposes of subsections (3) and (4), references to a report include a report under this Regulation, Ontario Regulation 143/16 or Ontario Regulation 452/09.

(7) For the purposes of verifying a report, an accredited verification body is not required to verify amounts identified as B and D in section 8 that are set out in the report.

Accredited verification bodies, duties re impartiality

17. (1) An accredited verification body shall comply with clause 5.4 of ISO 14065.

(2) An accredited verification body shall not conduct a verification of a report if any of the following circumstances apply:

1. The accredited verification body has a potential conflict of interest that is a threat to the body’s impartiality or there is another threat to the body’s impartiality and the threat cannot be effectively managed with a mitigation plan that the Director has consented to in writing.

2. If the report was given to the Director with respect to specified GHG activities engaged in at a facility,

i. the accredited verification body has provided greenhouse gas consultancy services to the owner or operator of the facility within the previous three years and the resulting threat to the body’s impartiality cannot be effectively managed with a mitigation plan that the Director has consented to in writing, or

ii. the accredited verification body has verified six consecutive reports prepared with respect to the facility, unless at least three years have passed since the last verification.

3. If the report was given to the Director with respect to electricity importation, natural gas distribution or petroleum product supply,

i. the accredited verification body has provided greenhouse gas consultancy services to the person within the previous three years and the resulting threat to the body’s impartiality cannot be effectively managed with a mitigation plan that the Director has consented to in writing, or

ii. the accredited verification body has verified six consecutive reports prepared by the person, unless at least three years have passed since the last verification.

(3) For the purposes of subparagraph 2 i or 3 i of subsection (2), an accredited verification body provides greenhouse gas consultancy services if it provides any of the following services:

1. Greenhouse gas quantification.

2. Greenhouse gas data monitoring or recording.

3. Greenhouse gas information system or internal auditing services.

4. Training that supports greenhouse gas emissions reporting under this Regulation or any other greenhouse gas reporting program.

(4) If an accredited verification body ceases to verify reports under this Regulation with respect to a facility or with respect to activities engaged in by a person, after having verified such reports for two or more consecutive years, the accredited verification body shall not verify a report under this Regulation with respect to the facility or with respect to the person’s activities until at least three years have passed.

(5) For the purposes of determining under subparagraphs 2 ii and 3 ii of subsection (2) and under subsection (4) a number of reports that have been verified or a number of years in which reports have been verified, the verification of a report under section 10 or 13 shall not be included in the determination.

(6) For the purposes of subsection (4), references to a report include a report prepared under Ontario Regulation 143/16 or Ontario Regulation 452/09.

(7) Before completing a verification of a report under this Regulation, an accredited verification body shall assess the potential for any compromised impartiality in conducting the verification and provide to the Director a written assessment report that,

(a) identifies any potential compromised impartiality; and

(b) if any potential compromised impartiality is identified under clause (a), proposes a mitigation plan in respect of it.

(8) After verification of a report has begun, the accredited verification body shall, if any potential compromise of its impartiality arises, immediately undertake the assessment mentioned in subsection (7) and submit a written assessment report in accordance with that subsection to the Director.

Verification statements

18. (1) When verifying a report under this Regulation, an accredited verification body shall determine, in accordance with sections 19 and 20, whether there is a reasonable level of assurance that the report contains no material discrepancy and whether the report was prepared in accordance with this Regulation.

(2) The accredited verification body shall submit a verification statement in respect of a report to the person who gave the report to the Director and shall ensure that the verification statement meets the requirements set out in clause 4.9 of ISO 14064-3.

(3) If an adverse verification statement is prepared by the accredited verification body in respect of a report for 2017 or a report required under section 10 or 13, the accredited verification body shall include in the verification statement the accredited verification body’s estimate of the correct determination for each amount in respect of which a material discrepancy was found to exist.

Types of verification statements

19. (1) The accredited verification body shall, at the end of a verification, prepare a type of verification statement described in Column 1 of the following Table if the determination set out opposite the type in Column 2 of the Table has been made.

TABLE
TYPES OF VERIFICATION STATEMENTS

Item

Column 1

Type of verification statement

Column 2

Determination of accredited verification body

1.

Positive.

Both of the following circumstances apply:

1.  There is a reasonable level of assurance that the report contains no material discrepancy in emissions.

2.  The report was prepared in accordance with this Regulation or, if it was given to the Director before the day this section comes into force, it was prepared in accordance with Ontario Regulation 143/16.

2.

Qualified positive.

Both of the following circumstances apply:

1.  There is a reasonable level of assurance that the report contains no material discrepancy in emissions.

2.  The report was prepared substantially in accordance with this Regulation or, if it was given to the Director before the day this section comes into force, it was prepared substantially in accordance with Ontario Regulation 143/16.

3.

Adverse.

One or both of the following circumstances apply:

1.  There is a reasonable level of assurance that the report contains a material discrepancy in emissions.

2.  The report was not prepared substantially in accordance with this Regulation or, if it was given to the Director before the day this section comes into force, it was not prepared substantially in accordance with Ontario Regulation 143/16.

(2) A material discrepancy in emissions exists if the per cent discrepancy in one of the following amounts, as determined under subsection (3), is 5 per cent or more:

1. The verification amount, if the report was with respect to specified GHG activities engaged in at a facility.

2. The amount of greenhouse gas emissions associated with electricity importation, natural gas distribution or petroleum product supply, if the report was with respect to one of those activities.

3. The amount determined under paragraph 4 of section 31.1 of the Cap and Trade Program Regulation, if that amount is required to be included in a report.

(3) The per cent discrepancy in an amount mentioned in subsection (2) shall be determined by applying the following formula:

PD = (SOU / TRE × 100)

where,

PD = per cent discrepancy,

SOU = the net result of summing overstatements and understatements resulting from errors, omissions and misstatements, expressed in tonnes of CO2e, and

TRE = the amount.

(4) A material discrepancy in emissions exists if the individual or aggregate effect of one or more errors, omissions or misstatements identified in the course of verification makes it probable that there is a discrepancy of 5 per cent or more in one of the amounts mentioned in subsection (2).

Production parameter verification conclusions

20. (1) Subject to subsection (3), the accredited verification body shall include in the verification statement and report a production parameter verification conclusion as described in Column 1 of the following Table for each production parameter listed in the Guideline for the activities addressed by the report, if the determination set out opposite the type in Column 2 of the Table has been made in respect of the production parameter:

TABLE
TYPES OF Production parameter verification conclusions

Item

Column 1

Type of verification conclusion

Column 2

Determination of accredited verification body

1.

Positive.

Both of the following circumstances apply:

1.  There is a reasonable level of assurance that the report contains no material discrepancy in the production parameter.

2.  The production parameter in the report was prepared in accordance with this Regulation or, if it was given to the Director before the day this section comes into force, it was prepared in accordance with Ontario Regulation 143/16.

2.

Qualified positive.

Both of the following circumstances apply:

1.  There is a reasonable level of assurance that the report contains no material discrepancy in the production parameter.

2.  The production parameter in the report was prepared substantially in accordance with this Regulation or, if it was given to the Director before the day this section comes into force, it was prepared substantially in accordance with Ontario Regulation 143/16.

3.

Adverse.

One or both of the following circumstances apply:

1.  There is a reasonable level of assurance that the report contains a material discrepancy in the production parameter.

2.  The production parameter in the report was not prepared substantially in accordance with this Regulation or, if it was given to the Director before the day this section comes into force, it was not prepared substantially in accordance with Ontario Regulation 143/16.

(2) A material discrepancy in a production parameter exists if the per cent discrepancy for the production parameter reported in respect of an activity is 0.1 per cent or more, based on the following formula:

PD = (QPDv − QPDi) / QPDi × 100

where,

PD = per cent discrepancy for the production parameter,

QPDv = quantity of the production parameter determined and verified by the accredited verification body, and

QPDi = quantity of the production parameter as set out in the report.

(3) This section does not apply with respect to a report required under section 10 or 13.

Verification reports

21. (1) If an accredited verification body verifies a report, it shall prepare a verification report that sets out, at a minimum, the following:

1. The verification statement.

2. If the report is with respect to specified GHG activities engaged in at a facility the verification amount.

3. If the report is in respect of electricity importation, natural gas distribution or petroleum product supply, the amount of the greenhouse gas emissions associated with the activity.

4. A description of the objectives and scope of the verification and the criteria applied in conducting the verification.

5. A description of the data and information supporting the verification report.

6. Details of the independent quantifications and checking of the data and information supporting the verification report.

7. A record of any error, omission, misstatement or non-compliance identified during the verification.

8. A record of any corrections made to the report as a result of the identification of anything mentioned in paragraph 7.

9. An assessment of the data management systems.

10. A summary of conclusions.

11. The peer reviewer’s approval of the verification report and the proposed verification statement.

12. The proposed production parameter verification conclusions, if applicable.

13. In the case of a report for 2017 or a report required under section 10 or 13, the estimate included in the verification statement under subsection 18 (3), if applicable.

(2) An accredited verification body shall provide a copy of a verification report prepared under subsection (1) to the person whose report was verified on or before the date that the verification statement is submitted to the person.

Compromise to impartiality

22. (1) If the Director determines, after receiving a written assessment report under section 17, that there is a compromise to an accredited verification body’s impartiality, the Director shall do one of the following by providing written notice to the accredited verification body:

1. Consent to the proposed mitigation plan, if any.

2. Require the accredited verification body to cease conducting the verification and refuse to consent to any proposed mitigation plan.

(2) The accredited verification body shall comply with the requirement of a notice under paragraph 2 of subsection (1).

Requests for information

23. (1) The Director may ask a person to provide the following information:

1. Information, including biomass quantifications, demonstrating that the person was not required to give reports to the Director.

2. Copies of any submissions that the person was required to make to the Federal government under section 46 or 71 of the Canadian Environmental Protection Act, 1999 (Canada).

(2) A person who receives a request under this section shall provide the information to the Director by the date specified in the request.

Retention of records

24. (1) A person who is required to give a report to the Director under this Regulation shall, in addition to complying with clause 4.10 of ISO 14064-3, keep the records set out in Schedule 3 of this Regulation in a paper or electronic format for at least seven years after the year to which the information relates.

(2) An accredited verification body shall keep each of the following records in a paper or electronic format for a period of at least seven years after they have been created or submitted:

1. Documents and records generated during a verification.

2. Verification statements.

3. Verification reports.

4. All documents upon which the conclusions in a verification statement or a verification report were based.

Change in information

25. If, during a year with respect to which a report is required to be given to the Director with respect to specified GHG activities engaged in at a facility or with respect to natural gas distribution, there is a change in the owner or operator of the relevant facility, the new owner or operator shall notify the Director in writing of the change within 30 days after the change.

Giving or submitting records, form and manner

26. (1) In this Regulation, if a record is required to be given or submitted, other than a record required to be given or submitted by the Director, the record shall be submitted in a form provided by or approved by the Director and in a manner approved by the Director.

(2) The Director may require that a record that is given to the Director under this Regulation be given in an electronic format specified by the Director.

27. Omitted (revokes other Regulations).

28. Omitted (provides for coming into force of provisions of this Regulation).

Schedule 1
GreenhousE Gases and GLOBAL WARMING POTENTIALS

Item

Column 1

Common Name of Greenhouse Gas

Column 2

Chemical Formula

Column 3

Chemical Name

Column 4

Chemical Abstract Service Registry No.

Column 5

Global Warming Potential

1.

Carbon dioxide

CO2

Carbon dioxide

124-38-9

1

2.

Methane

CH4

Methane

74-82-8

21

3.

Nitrous oxide

N2O

Nitrous oxide

10024-97-2

310

4.

Sulfur hexafluoride

SF6

Sulfur hexafluoride

2551-62-4

23,900

5.

Nitrogen trifluoride

NF3

Nitrogen trifluoride

7783-54-2

17,200

6.

HFC-23

CHF3

Trifluoromethane

75-46-7

11,700

7.

HFC-32

CH2F2

Difluoromethane

75-10-5

650

8.

HFC-41

CH3F

Fluoromethane

593-53-3

150

9.

HFC-43-10mee

C5H2F10

1,1,1,2,3,4,4,5,5,5- Decafluoropentane

138495-42-8

1,300

10.

HFC-125

C2HF5

Pentafluoroethane

354-33-6

2,800

11.

HFC-134

C2H2F4

1,1,2,2-Tetrafluoroethane

359-35-3

1,000

12.

HFC-134a

C2H2F4

1,1,1,2-Tetrafluoroethane

811-97-2

1,300

13.

HFC-143

C2H3F3

1,1,2-Trifluoroethane

430-66-0

300

14.

HFC-143a

C2H3F3

1,1,1-Trifluoroethane

420-46-2

3,800

15.

HFC-152

C2H4F2

1,2-Difluoroethane

624-72-6

43

16.

HFC-152a

C2H4F2

1,1-Difluoroethane

75-37-6

140

17.

HFC-161

C2H5F

Fluoroethane

353-36-6

12

18.

HFC-227ea

C3HF7

1,1,1,2,3,3,3- Heptafluoropropane

431-89-0

2,900

19.

HFC-236cb

C3H2F6

1,1,1,2,2,3-Hexafluoropropane

677-565

1,300

20.

HFC-236ea

C3H2F6

1,1,1,2,3,3-Hexafluoropropane

431-63-0

1,200

21.

HFC-236fa

C3H2F6

1,1,1,3,3,3-Hexafluoropropane

690-39-1

6,300

22.

HFC-245ca

C3H3F5

1,1,2,2,3-Pentafluoropropane

679-86-7

560

23.

HFC-245fa

C3H3F5

1,1,1,3,3-Pentafluoropropane

460-73-1

950

24.

HFC-365mfc

C4H5F5

1,1,1,3,3-Pentafluorobutane

406-58-6

890

25.

Perfluoromethane

CF4

Tetrafluoromethane

75-73-0

6,500

26.

Perfluoroethane

C2F6

Hexafluoroethane

76-16-4

9,200

27.

Perfluoropropane

C3F8

Octafluoropropane

76-19-7

7,000

28.

Perfluorobutane

C4F10

Decafluorobutane

355-25-9

7,000

29.

Perfluorocyclobutane

c-C4F8

Octafluorocyclobutane

115-25-3

8,700

30.

Perfluoropentane

C5F12

Dodecafluoropentane

678-26-2

7,500

31.

Perfluorohexane

C6F14

Tetradecafluorohexane

355-42-0

7,400

SCHEDULE 2
specified GHG activities (Subsection 1 (1))

Item

Column 1

Activity

Column 2

Description of activity

1.

Adipic acid production.

The production of adipic acid using oxidation.

2.

Ammonia production.

The production of ammonia through the reaction of nitrogen with hydrogen that has been produced by one of the following:

1.  Steam hydrocarbon reforming.

2.  Gasification of solid or liquid raw material.

3.

Carbonate use.

The use of one or more carbonates in a production process, excluding the following:

1.  The use of carbonates or minerals that contain carbonate for producing cement, copper, nickel, ferroalloys, glass, iron, steel, lead, lime, phosphoric acid, pulp and paper, soda ash, sodium bicarbonate, sodium hydroxide or zinc.

2.  The use of carbonates in sorbent technology used to control emissions from general stationary combustion equipment and electricity generation equipment.

4.

Cement production.

The production of Portland, masonry, pozzolanic or any other hydraulic cement.

5.

Coal storage.

The storage of coal at a facility that combusts coal.

6.

Copper and nickel production.

The production of one or both of copper and nickel through smelting, refining and solvent extraction-electrowinning, using one or more of the following processes:

1.  Removal of impurities from nickel or copper ore concentrate using carbonate flux reagents.

2.  The use of reducing agents, including metallurgical coke, coal or natural gas, to extract metals from their oxides.

3.  The use of material, including coke, for slag cleaning.

4.  The release of carbon from metal ores.

5.  The consumption of graphite or carbon electrodes in electric arc furnaces.

7.

Electricity generation.

The operation of any combustion device, including a cogeneration (combined heat and power) device, that combusts solid, liquid or gaseous fuel for the purpose of producing electricity, excluding the following:

1.  The operation of stationary emergency generators with a nameplate generating capacity of less than 10 MW.

2.  The operation of portable emergency generators.

8.

Ferroalloy production.

The production of ferrochromium, ferromanganese, ferromolybdenum, ferronickel, ferrosilicon, ferrotitanium, ferrotungsten, ferrovanadium, silicomanganese or silicon metal using pyrometallurgical techniques.

9.

General stationary combustion.

The combustion of solid, liquid, or gaseous fuel or combustible material using general stationary combustion equipment for one or more of the following purposes:

1.  Producing electricity.

2.  Generating steam or providing useful heat or energy for industrial, commercial or institutional use.

3.  Pollution control.

4.  Reduction of waste volume.

10.

Glass production.

The production of flat glass, container glass, pressed and blown glass or wool fiberglass using one or more glass melting furnaces to melt a mixture of raw materials, excluding production in an experimental furnace or a research and development process unit.

11.

HCFC-22 production and HFC-23 destruction.

The production of HCFC-22 from chloroform and hydrogen fluoride and any process in which HFC-23 is destroyed.

12.

Hydrogen production.

The production of hydrogen gas using steam hydrocarbon reforming, partial oxidation of hydrocarbons or other transformation of hydrocarbon feedstock.

13.

Indirect useful thermal energy use.

The use of thermal energy at one facility that was generated at another facility.

14.

Iron and steel production.

The production of iron or steel, which may include the processing of taconite iron ore and the production of metallurgical coke.

15.

Lead production.

One of the following:

1.  The production of lead by sintering, smelting or direct smelting of lead concentrates.

2.  The secondary production or recycling of lead.

16.

Lime production.

The production of a lime product using calcination of limestone or other highly calcareous materials, including dolomite, aragonite, chalk, coral, marble or shell, but excluding production at a kraft pulp mill, soda pulp mill, sulfite pulp mill or a facility that only processes sludge containing calcium carbonate from water softening processes.

17.

Magnesium production.

The production of magnesium metal or products containing magnesium through one of the following:

1.  Smelting.

2.  Refining.

3.  Re-melting.

4.  Use of molten magnesium to produce alloys or products containing magnesium through casting, drawing, extruding, forming or rolling operations.

18.

Nitric acid production.

The production of nitric acid that is 30 to 70 per cent in strength using the catalytic oxidation of ammonia.

19.

Operation of equipment for a transmission system or a distribution system (electricity).

The operation of equipment for the purposes of a transmission system or a distribution system.

20.

Operation of equipment related to the transmission, storage and transportation of natural gas.

The operation of equipment related to any of the following:

1.  Onshore natural gas transmission compression.

2.  Natural gas storage.

3.  Liquefied natural gas import and export.

4.  Transport of natural gas in a pipeline transportation system.

21.

Petrochemical production.

The production of petrochemicals, including acrylonitrile, carbon black, propylene, ethylene, ethylene dichloride, ethylene oxide and methanol, from feedstocks derived from petroleum or from petroleum and liquefied natural gas, excluding the following:

1.  The production of petrochemicals where petrochemicals are produced as a by-product.

2.  The production of ethylene dichloride through a direct chlorination process that is operated independently of an oxychlorination process.

3.  The production of a petrochemical from biomass feedstock.

22.

Petroleum refining.

The production of any product through the distillation of crude oil or the redistillation, cracking, rearrangement or reforming of unfinished petroleum derivatives.

23.

Phosphoric acid production.

The production of phosphoric acid from phosphate rock and acid.

24.

Primary aluminum production.

The production of aluminum using the Hall-Héroult process, electrolysis in prebake and Søderberg cells or anode baking in prebake cells, excluding production using experimental cells or research and development process units.

25.

Pulp and paper production.

The production of market pulp or pulp and paper at a facility that has chemical recovery, semi-chemical recovery and lime kilns.

26.

Refinery fuel gas use.

The use of any combustion device that combusts refinery fuel gas separately or in combination with any type of gas or uses refinery fuel gas as a chemical feedstock.

27.

Soda ash production.

The production of soda ash using a production line to carry out calcining of trona or sodium sesquicarbonate or to directly produce carbon dioxide through the use of a liquid alkaline feedstock process.

28.

Zinc production.

The primary production of zinc using electro-thermic distillation, pyrometallurgical processing or electrolytic processing or the secondary production of zinc.

SCHEDULE 3
Records to be retained (Subsection 24 (1))

1. A report the person has given to the Director under this Regulation, Ontario Regulation 143/16 or Ontario Regulation 452/09.

2. A verification report prepared in respect of a report mentioned in paragraph 1.

3. A list of all units, processes, activities and operations that were taken into account in quantifying or estimating greenhouse gas emissions, production parameters, material usage or process data.

4. All records and documents used to quantify or estimate greenhouse gas emissions data, production parameters, fuel usage, material usage or process data from each activity.

5. If the person engages in electricity importation, NERC E-tags, power contracts, IESO settlement data and all other information needed to confirm the transactions.

6. Documentation of the process for collecting greenhouse gas data, production parameters, material usage or process data.

7. A record showing any greenhouse gas emissions, production parameters, material usage or process data quantifications and the quantification methods used.

8. A record showing all emission factors used for quantifications, including documentation for any site specific factors developed under the applicable standard quantification method.

9. All input data used for greenhouse gas estimates.

10. Documentation of biomass fractions for specific fuels.

11. All data submitted to the Director under this Regulation, Ontario Regulation 143/16 or Ontario Regulation 452/09.

12. All quantifications made to fill in missing data.

13. Names and documentation of key personnel involved in quantifying and reporting on greenhouse gas data, production parameters, material usage or process data.

14. A log relating to each year, documenting all procedural changes made in data collection and calculations and changes to instrumentation for estimations and quantifications of greenhouse gas, production parameters, material usage or process data.

15. If a measurement-based quantification method is used,

i. a list of all emission points monitored,

ii. collected monitoring data,

iii. quality assurance and quality control information,

iv. a detailed technical description of the continuous emissions monitoring system, including documentation of any findings and approvals by the Province,

v. raw and aggregated data from the continuous emissions monitoring system,

vi. a log book showing all system down-times, calibrations, servicing and maintenance of the continuous emissions monitoring system, and

vii. documentation of any changes in the continuous emissions monitoring system over time.

16. Any other information that is required for verification of a report mentioned in paragraph 1.

SCHEDULE 4
BIOMASS CRITERIA (Subsection 1 (1))

1. It must be organic matter that is available on a renewable basis.

2. It must be organic matter that is derived from a plant, animal or micro-organism or must be a product made of such organic matter.

3. It must meet one of the following criteria:

i. It is grown or harvested for the purpose of being used to generate electricity, heat or other useful energy.

ii. It is waste from harvesting or processing agricultural products or waste from processing forestry products, including spent pulping liquor.

iii. It is agricultural waste within the meaning of Regulation 347 of the Revised Regulations of Ontario, 1990 (General — Waste Management) made under the Act.

iv. It is organic waste material from a greenhouse, nursery, garden centre or flower shop.

v. It is pulp and paper biosolids, within the meaning of Ontario Regulation 267/03 (General) made under the Nutrient Management Act, 2002.

vi. It is waste from food processing, distribution and preparation operations, such as food packing, food preserving, wine making, cheese making, restaurants and grocery stores, including organic waste from the treatment of wastewater from facilities where food or feed is processed or prepared.

vii. It is sewage biosolids within the meaning of Ontario Regulation 267/03 made under the Nutrient Management Act, 2002.

viii. It is hauled sewage.

ix. It is waste from the operation of a sewage works subject to the Ontario Water Resources Act.

x. It is woodwaste within the meaning of Regulation 347 of the Revised Regulations of Ontario, 1990 made under the Act.

xi. It is a forest resource made available under a forest management plan approved under the Crown Forest Sustainability Act, 1994 or a managed forest plan approved under the Managed Forest Tax Incentive Program.

xii. It is landfill gas.

xiii. It is biodiesel.

xiv. It is biofuel.

xv. It is biogas.

xvi. It is biologically derived organic matter found in municipal and industrial waste, both within the meaning of Regulation 347 of the Revised Regulations of Ontario, 1990 made under the Act.

xvii. It is fuel whose heat generating capacity is derived entirely from one or more items described in subparagraphs i to xvi.

SCHEDULE 5
Contents of report

1. The name and address of the person required to give the report to the Director and the address of any facility in respect of which the report is prepared.

2. The business number assigned to the person by the Canada Revenue Agency.

3. The GHG ID number assigned by the Ministry to the person or facility, as the case may be.

4. The period of time to which the report relates.

5. The date on which the report is given to the Director.

6. Production parameters, material usage and process data required to be included in the report under the Guideline.

7. The total carbon dioxide emissions from the combustion of biomass during the activities with respect to which the report is prepared.

8. Such other information as may be specified in the Guideline relating to quantifications and calculations performed under this Regulation.

9. If the report is with respect to specified GHG activities engaged in at a facility, the following information:

i. The primary NAICS code and any secondary and tertiary NAICS codes associated with each specified GHG activity.

ii. The reporting amount.

iii. The verification amount.

iv. The amount of greenhouse gas emitted during each specified GHG activity during the year, expressed in tonnes of CO2e.

v. The amount of each greenhouse gas, expressed in tonnes, emitted during each specified GHG activity.

vi. The estimated amount of carbon dioxide that is captured at the facility from the specified GHG activities and an explanation of how the estimated total was determined, including an explanation of how the carbon dioxide may have been used, transferred from or stored at the facility.

10. If the report is with respect to electricity importation, natural gas distribution or petroleum product supply, the following information:

i. The primary NAICS code and any secondary and tertiary NAICS codes associated with the activity.

ii. The amount of the greenhouse gas emissions associated with the activity, calculated in accordance with section 11.

11. If the person required to give the report became a voluntary participant pursuant to section 31.1 of the Cap and Trade Program Regulation and has a reporting amount that is less than 10,000 tonnes of CO2e, the amounts used in the equation set out in paragraph 4 of section 31.1 of that Regulation.

12. A statement signed and dated by an individual who is authorized by the person mentioned in paragraph 1 to sign on behalf of the person, certifying that,

i. the individual has examined the report to ensure that it is complete and accurate, and

ii. the report has been prepared in accordance with this Regulation and the statements and information contained in the report are true and accurate to the best of the individual’s knowledge.

SCHEDULE 6
Contents of Mid-year 2018 report (sections 10 and 13)

1. The name and address of the person required to give the report to the Director and the address of any facility in respect of which the report is prepared.

2. The business number assigned to the person by the Canada Revenue Agency.

3. The GHG ID number assigned by the Ministry to the person or facility, as the case may be.

4. The period of time to which the report relates.

5. The date on which the report is given to the Director.

6. If the report is with respect to specified GHG activities engaged in at a facility, the following information:

i. The primary NAICS code and any secondary and tertiary NAICS codes associated with each specified GHG activity.

ii. The reporting amount, calculated by making necessary modifications so that the amount is determined only in respect of the period beginning on January 1, 2018 and ending on July 3, 2018.

iii. The verification amount, calculated by making necessary modifications so that the amount is determined only in respect of the period beginning on January 1, 2018 and ending on July 3, 2018.

7. If the report is with respect to electricity importation, natural gas distribution or petroleum product supply, the following information:

i. The primary NAICS code and any secondary and tertiary NAICS codes associated with the activity.

ii. The amount of the greenhouse gas emissions associated with the activity, calculated in accordance with section 11 and by making necessary modifications so that the amount is determined only in respect of the period beginning on January 1, 2018 and ending on July 3, 2018.

8. If the person required to give the report became a voluntary participant pursuant to section 31.1 of the Cap and Trade Program Regulation and has a reporting amount that is less than 10,000 tonnes of CO2e, the amounts used in the equation set out in paragraph 4 of section 31.1 of that Regulation.

9. A statement signed and dated by an individual who is authorized by the person mentioned in paragraph 1 to sign on behalf of the person, certifying that,

i. the individual has examined the report to ensure that it is complete and accurate, and

ii. the report has been prepared in accordance with this Regulation and the statements and information contained in the report are true and accurate to the best of the individual’s knowledge.