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O. Reg. 241/19: GREENHOUSE GAS EMISSIONS PERFORMANCE STANDARDS

under Environmental Protection Act, R.S.O. 1990, c. E.19

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current July 4, 2019 (e-Laws currency date)

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Environmental Protection Act

ONTARIO REGULATION 241/19

GREENHOUSE GAS EMISSIONS PERFORMANCE STANDARDS

Consolidation Period:  From July 4, 2019 to the e-Laws currency date.

No amendments.

This is the English version of a bilingual regulation.

CONTENTS

PART I
INTERPRETATION

1.

Interpretation

PART II
REGISTRATION OF FACILITY

2.

Facilities for which registration is required

3.

Procedure for registering a facility under s. 2

4.

Facilities for which registration is optional

5.

Procedure for applying to register a facility under s. 4

6.

Re-registration of facility

7.

Account representatives

8.

Duty to update information

PART III
COMPLIANCE

9.

Application of Part

10.

Prohibition

11.

Compliance instruments

12.

Determination of total annual emissions limit

13.

Compliance obligation

14.

Application of s. 13, adverse or no verification amount conclusion

15.

Application of s. 13, adverse or no production parameter verification conclusion

16.

Emissions performance units

17.

Removal, retirement of compliance instruments

18.

Change in owner or operator

19.

Authorized transfers between facility accounts

PART IV
MISCELLANEOUS

20.

Retention of records

21.

Giving or submitting records, form and manner

22.

Notice by Director

Schedule 1

Registration information

Schedule 2

Industrial activities

Part I
Interpretation

Interpretation

1. (1) In this Regulation,

“account representative” means, when used in respect of a facility, an individual who has been identified in respect of the facility in accordance with section 7; (“représentant de comptes”)

“compliance instrument” means an emissions performance unit or excess emissions unit; (“instrument de conformité”)

“compliance obligation” means an obligation described in subsection 13 (2); (“obligation en matière de conformité”)

“compliance obligation shortfall” means the portion of a compliance obligation that is not satisfied as of the applicable date specified in subsection 13 (3); (“déficit relatif à l’obligation en matière de conformité”)

“covered facility” means a facility that is registered under this Regulation or in respect of which registration is required under this Regulation; (“installation assujettie”)

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

“facility” has the same meaning as in the Reporting Regulation; (“installation”)

“first compliance period” means the period beginning on January 1 in the year in which notice is published in the Canada Gazette of an order of the Governor General in Council under section 189 of the Greenhouse Gas Pollution Pricing Act (Canada) deleting Ontario from the list of provinces and areas set out in Part 2 of Schedule 1 to that Act and ending on December 31 in that year; (“première période de conformité”)

“industrial activity” means an activity set out in Schedule 2; (“activité industrielle”)

“Methodology” means the document entitled “GHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit”, published by the Ministry and available on a website of the Government of Ontario, as amended from time to time; (“guide de méthodologie”)

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

“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; (“Règlement de l’Ontario 143/16”)

“Ontario Regulation 452/09” means Ontario Regulation 452/09 (Greenhouse Gas Emissions Reporting) made under the Act; (“Règlement de l’Ontario 452/09”)

“Reporting Regulation” means Ontario Regulation 390/18 (Greenhouse Gas Emissions: Quantification, Reporting and Verification) made under the Act; (“règlement sur la déclaration”)

“total annual emissions limit” means the total annual emissions limit determined under section 12; (“limite des émissions annuelles totales”)

“verification amount” has the same meaning as in the Reporting Regulation, except where otherwise specified; (“quantité de vérification”)

“verification statement” means, when used in reference to a report, the verification statement submitted in respect of the report by an accredited verification body under the Reporting Regulation; (“déclaration de vérification”)

“verified” means verified by an accredited verification body under the Reporting Regulation; (“vérifié”)

“year” means a calendar year. (“année”)

(2) Each compliance period is one year.

(3) In this Regulation, unless otherwise specified, a reference to Ontario Regulation 452/09 or Ontario Regulation 143/16 is a reference to the regulation as it read at any time before it was revoked.

Part II
Registration of facility

Facilities for which registration is required

2. (1) Subject to subsection (2), the owner or operator of a facility shall register the facility with the Director no later than December 1 in the first year in which all of the following criteria are met in respect of the facility:

1. As a result of greenhouse gas emissions related to the facility in 2014 or any subsequent year, the owner or operator of the facility is or was required, or a previous owner or operator of the facility was required, to report under any of the following:

i. The Reporting Regulation.

ii. Ontario Regulation 452/09.

iii. Ontario Regulation 143/16.

iv. Section 46 of the Canadian Environmental Protection Act, 1999.

2. The following amount in respect of the facility in a year, as set out in one of the reports mentioned in paragraph 1, was at least 50,000 tonnes of CO2e:

i. In a report under the Reporting Regulation, the reporting amount within the meaning of that Regulation.

ii. In a report under Ontario Regulation 452/09, the result of the calculation under clause 7.3 (1) (c) of that Regulation as it read on July 31, 2018.

iii. In a report under Ontario Regulation 452/09, the amount required to be set out in a report under paragraph 9 of section 6 of that Regulation as it read on December 9, 2015.

iv. In a report under Ontario Regulation 143/16, the reporting amount within the meaning of that Regulation.

v. In a report under section 46 of the Canadian Environmental Protection Act, 1999, the total emissions.

3. The primary activity engaged in at the facility is an industrial activity listed in paragraphs 1 to 38 of Schedule 2.

(2) The criterion set out in paragraph 3 of subsection (1) does not apply in respect of a facility if the owner or operator of the facility has registered the facility under Part II of the Greenhouse Gas Pollution Pricing Act (Canada).

(3) For the purposes of subsection (2), registration under Part II of the Greenhouse Gas Pollution Pricing Act (Canada) of a facility within the meaning of that Act that consists, in part, of the facility within the meaning of this Regulation is deemed to be registration under Part II of that Act of a facility within the meaning of this Regulation.

(4) An owner or operator of more than one facility that meets the criteria set out in subsection (1) or (2) shall register each facility that meets the criteria.

Procedure for registering a facility under s. 2

3. (1) For the purposes of registering a facility under section 2, the owner or operator of the facility shall take the following steps:

1. Give written notice to the Director of the intention to register the facility.

2. Upon receiving a request from the Director, as described in subsection (2), comply with the request in writing.

3. Complete the registration form approved by the Director and give the completed form to the Director.

(2) Upon receipt of a notice under paragraph 1 of subsection (1) from an owner or operator, the Director shall, by written notice to the owner or operator, request that the owner or operator confirm that the information set out in Schedule 1 that is held by the Director in respect of the registration is accurate and may also request, as part of the notice, that the owner or operator provide any information set out in Schedule 1 that is not already held by the Director.

(3) If the Director is satisfied that the facility meets the criteria set out in section 2 and that the steps set out in subsection (1) have been taken, the Director shall,

(a) establish a facility account, assigning a unique number to the facility account; and

(b) give the person who registered the facility written confirmation that the facility has been registered.

Facilities for which registration is optional

4. (1) The owner or operator of a facility that meets all of the following criteria may apply to register the facility with the Director:

1. As a result of greenhouse gas emissions related to the facility in 2014 or any subsequent year, the owner or operator of the facility or a previous owner or operator of the facility prepared a report under any of the following:

i. The Reporting Regulation.

ii. Ontario Regulation 452/09.

iii. Ontario Regulation 143/16.

iv. Section 46 of the Canadian Environmental Protection Act, 1999.

2. The following amount in respect of the facility in a year, as set out in one of the reports mentioned in paragraph 1, was at least 10,000 and less than 50,000 tonnes of CO2e:

i. In a report under the Reporting Regulation, the reporting amount within the meaning of that Regulation.

ii. In a report under Ontario Regulation 452/09, the result of the calculation under clause 7.3 (1) (c) of that Regulation as it read on July 31, 2018.

iii. In a report under Ontario Regulation 452/09, the amount required to be set out in a report under paragraph 9 of section 6 of that Regulation as it read on December 9, 2015.

iv. In a report under Ontario Regulation 143/16, the reporting amount within the meaning of that Regulation.

v. In a report under section 46 of the Canadian Environmental Protection Act, 1999, the total emissions.

3. An industrial activity is engaged in at the facility.

4. The owner or operator of the facility has registered the facility under Part II of the Greenhouse Gas Pollution Pricing Act (Canada).

(2) For the purposes of paragraph 4 of subsection (1), registration under Part II of the Greenhouse Gas Pollution Pricing Act (Canada) of a facility within the meaning of that Act that consists, in part, of the facility within the meaning of this Regulation is deemed to be registration under Part II of that Act of a facility within the meaning of this Regulation.

(3) An owner or operator of more than one facility that meets the criteria set out in subsection (1) may apply in respect of each facility that meets the criteria.

Procedure for applying to register a facility under s. 4

5. (1) For the purposes of applying to register a facility under section 4, the owner or operator of the facility shall take the following steps:

1. Give written notice to the Director of the intention to apply to register the facility.

2. Upon receiving a request from the Director, as described in subsection (2), comply with the request in writing.

3. Complete the application form approved by the Director and give the completed form to the Director.

(2) Upon receipt of a notice under paragraph 1 of subsection (1) from an owner or operator, the Director shall, by written notice to the owner or operator, request that the owner or operator confirm that the information set out in Schedule 1 that is held by the Director in respect of the application is accurate and may also request that the owner or operator provide any information set out in Schedule 1 that is not already held by the Director.

(3) If the Director is satisfied that the facility meets the criteria set out in section 4 and that the steps set out in subsection (1) have been taken, the Director shall,

(a) establish a facility account, assigning a unique number to the facility account; and

(b) give the person who applied for the registration written confirmation that the facility has been registered.

(4) If the Director proposes to refuse an application for registration, the Director shall give written notice to the applicant, setting out the following:

1. The reasons for the proposed refusal.

2. A statement that the applicant may, no later than five days following the day on which the notice was given, submit comments in writing to the Director in respect of the proposed refusal.

(5) After considering any comments received from the applicant within the time period specified in the notice under subsection (4), the Director shall,

(a) give the applicant written confirmation that the facility has been registered; or

(b) give the applicant written notice of the Director’s refusal to register the facility.

Re-registration of facility

6. (1) If the person who received the most recent confirmation of registration or re-registration in respect of a covered facility ceases to be the owner or operator of the facility and an industrial activity continues to be engaged in at the facility, the new owner or operator of the covered facility shall continue the registration of the facility by re-registering it no later than 30 days after the person who received the most recent confirmation of registration or re-registration ceased to be the owner or operator of the facility.

(2) The person re-registering the facility shall submit to the Director a form approved by the Director and shall provide all information set out in Schedule 1.

(3) Upon receipt of the form and information required under subsection (2), if the Director is satisfied that an industrial activity continues to be engaged in at the facility, the Director shall,

(a) establish a new facility account, assigning a unique number to the new facility account; and

(b) give written confirmation of the re-registration to the person who submitted the form and information.

(4) Sections 7 and 8 apply, with necessary modifications, in respect of a re-registration.

Account representatives

7. (1) A person registering or applying to register a facility shall identify at least two and no more than five account representatives who are authorized by the person to act on their behalf in respect of the facility for the purposes of this Regulation.

(2) The person registering the facility or applying to register the facility shall not identify an individual as an account representative and an identified individual shall not act as an account representative unless the individual meets the following criteria:

1. The individual has not been found guilty of an offence under the Act.

2. The individual has not been found guilty of an offence under the Commodity Futures Act or the Securities Act.

(3) Subject to subsection (4), the person who registered or applied to register a covered facility may, at any time after the facility is registered, remove an identified account representative or identify a new account representative who meets the criteria set out in subsection (2), by giving notice to the Director of the change and providing any updates to information set out in Schedule 1 in respect of any new account representative.

(4) The person who registered or applied to register a covered facility shall ensure that at all times, a minimum of two and a maximum of five account representatives are identified in respect of the facility.

(5) The same account representative may be identified in respect of more than one facility.

(6) If a notice identifying a new account representative in respect of a facility is given to the Director under subsection (3), the new account representative shall not act as an account representative in respect of the facility until such time as the Director provides to the person who registered or applied to register the facility written confirmation that the notice has been received by the Director.

Duty to update information

8. The person who registered a facility or applied to register a facility shall, while an application is pending or after a registration has been made, notify the Director of any change to the information set out in Schedule 1 no later than 30 days following the change.

Part III
COMPLIANCe

Application of Part

9. (1) This Part applies beginning in the first compliance period.

(2) The owner and operator of a covered facility shall comply with this Part in respect of the facility as follows:

1. Subject to paragraph 2, if the facility is a covered facility during the first compliance period, the owner and operator shall comply with this Part in the first compliance period and in every subsequent compliance period.

2. If the first compliance period is 2019 and the owner or operator applies to register the facility under section 4 on or before December 1, 2019, the owner or operator may elect, as part of the application, to have the requirement to comply with this Part apply starting in the 2020 compliance period.

3. If the facility is not a covered facility during the first compliance period but is required to be registered under section 2 during a subsequent compliance period, the owner and operator shall comply with this Part in the next compliance period after the compliance period in which the requirement to register first applies and in every subsequent compliance period.

4. If the facility is not a covered facility during the first compliance period but the owner or operator applies to register it under section 4 on or before December 1 in a subsequent compliance period, the owner and operator shall comply with this Part beginning in the next compliance period after the compliance period in which the application is submitted and in every subsequent compliance period.

5. If the owner or operator applies to register the facility under section 4 on or after December 2 and on or before December 31 in any year, the owner and operator shall comply with this Part beginning in the second compliance period after the compliance period in which the application is submitted and in every subsequent compliance period.

Prohibition

10. No person shall sell, trade or otherwise deal with compliance instruments, other than a person who is authorized to do so under this Regulation and who is doing so in accordance with this Regulation.

Compliance instruments

11. (1) Subject to subsection (2), for the purposes of this Part, a compliance instrument is eligible for use to meet a compliance obligation in respect of a compliance period if,

(a) in the case of an excess emissions unit, the excess emissions unit was distributed in any subsequent year; and

(b) in the case of an emissions performance unit, the expiry date assigned to it by the Director is not earlier than the applicable date specified in subsection 13 (3) for the compliance period.

(2) In the case of a compliance obligation shortfall in respect of a compliance period, the following rules apply:

1. An excess emissions unit distributed in the year of the applicable date specified in subsection 13 (3) for the compliance period is not eligible for use to satisfy the compliance obligation shortfall.

2.   If the expiry date assigned by the Director to an emissions performance unit is earlier than December 15 in the year in which it would be used to satisfy the compliance obligation shortfall, it is not eligible for use to satisfy the compliance obligation shortfall in that year.

(3) In the case of an obligation under subsection 13 (4) that arises as a result of a failure to meet the compliance obligation in respect of a compliance period, the following rules apply:

1. Subject to paragraphs 2 and 3, a compliance instrument that is eligible for use to meet the compliance obligation in respect of the compliance period is also eligible for use to meet the obligation under subsection 13 (4).

2. An excess emissions unit distributed in the year of the applicable date specified in subsection 13 (3) for the compliance period is not eligible for use to meet the obligation under subsection 13 (4).

3. If the expiry date assigned by the Director to an emissions performance unit is earlier than December 15 in the year in which it would be used to meet the obligation under subsection 13 (4), it is not eligible for use to meet the obligation under subsection 13 (4) in that year.

(4) The Director shall, in distributing an excess emissions unit, record the year in which it is distributed.

(5) The Director shall, in distributing an emissions performance unit,

(a) record the compliance period in respect of which it is distributed; and

(b) assign it an expiry date, which shall be December 15 in the year that is five years after the compliance period in respect of which it is distributed.

(6) On or before December 1 in any year other than the first compliance period, an owner or operator of a covered facility may request that excess emissions units be distributed into the facility account by December 15 in that year.

(7) The owner or operator may make a request under subsection (6) by,

(a) submitting the request to the Director in the form approved by the Director; and

(b) making the applicable payment in accordance with subsection (9) to the Minister of Finance.

(8) If the Director receives a request and payment in accordance with subsection (7) on or before December 1 in a year, the Director shall distribute excess emissions units into the facility account no later than December 15 in that year.

(9) The Director shall distribute excess emissions units beginning in the first year after the first compliance period, and the cost of each excess emissions unit shall be as follows:

1. For a unit distributed in 2020, $20.

2. For a unit distributed in 2021, $30.

3. For a unit distributed in 2022, $40.

4. For a unit distributed in 2023, $50.

Determination of total annual emissions limit

12. The owner or operator of a covered facility shall determine the total annual emissions limit in respect of the facility for each compliance period in accordance with the Methodology.

Compliance obligation

13. (1) A compliance obligation described in subsection (2) applies to the owner and operator of a covered facility in respect of a compliance period if, subject to sections 14 and 15, the verified verification amount, as set out in the verification statement for a report in respect of the covered facility for the compliance period is greater than the verified total annual emissions limit, as set out in that verification statement.

(2) The owner or operator of the facility shall ensure that, as of the applicable date specified in subsection (3), the facility account includes a number of compliance instruments that are eligible for use to meet the compliance obligation in respect of the compliance period that is equal to or greater than the following: the amount by which the verified verification amount, as set out in the verification statement for the report in respect of the facility for the compliance period, is greater than the verified total annual emissions limit, as set out in the verification statement for the report in respect of the facility for the compliance period.

(3) For the purposes of subsection (2),

(a) if the first compliance period is 2019, the specified date in respect of the 2019 and 2020 compliance periods is December 15, 2021; and

(b) in any other case, the specified date in respect of a compliance period is December 15 in the following year.

(4) If a compliance obligation in respect of a compliance period is not met by the applicable date specified in subsection (3), the owner or operator of the facility in respect of which the compliance obligation applies shall comply with the following rules no later than February 15 in the following year:

1. Additional compliance instruments that are eligible for use under this subsection, as described in subsection 11 (3), must be in the facility account.

2. The additional compliance instruments must be in an amount equal to three times the amount of the compliance obligation shortfall.

Application of s. 13, adverse or no verification amount conclusion

14. (1) This section applies in respect of a covered facility for a compliance period if the verification statement in respect of the most recently prepared report under the Reporting Regulation in respect of the facility includes an adverse verification amount conclusion or no verification amount conclusion.

(2) For the purposes of applying section 13, the number that is equal to 120 per cent of the highest of the following shall be substituted for the verified verification amount in respect of the facility for the compliance period:

1. Any verification amount set out in a report prepared under the Reporting Regulation in respect of the facility.

2. Any verification amount set out in a report prepared under Ontario Regulation 143/16 in respect of the facility.

3. Any result of a calculation under paragraph 4 of subsection 7.3 (2) of Ontario Regulation 452/09 as it read on July 31, 2018 for the purposes of a report prepared under that Regulation in respect of the facility.

4. Any amount required to be set out in a report under paragraph 9 of section 6 of Ontario Regulation 452/09 as it read on December 9, 2015 in respect of the facility.

(3) If the number substituted is a number that is not a whole number, the number shall be rounded up to the nearest whole number.

Application of s. 13, adverse or no production parameter verification conclusion

15. (1) This section applies in respect of a covered facility for a compliance period if the verification statement in respect of the report most recently prepared under the Reporting Regulation in respect of the facility includes an adverse production parameter verification conclusion or no production parameter verification conclusion.

(2) For the purposes of applying section 13, the number that is equal to 80 per cent of the lowest of the following shall be substituted for the verified total annual emissions limit in respect of the facility for the compliance period:

1. Any verification amount set out in a report prepared under the Reporting Regulation in respect of the facility.

2. Any verification amount set out in a report prepared under Ontario Regulation 143/16 in respect of the facility.

3. Any result of the calculation under paragraph 4 of subsection 7.3 (2) of Ontario Regulation 452/09 as it read on July 31, 2018 for the purposes of a report prepared under that Regulation in respect of the facility.

4. Any amount required to be set out in a report under paragraph 9 of section 6 of Ontario Regulation 452/09 as it read on December 9, 2015 in respect of the facility.

(3) If the number substituted is a number that is not a whole number, the number shall be rounded down to the nearest whole number.

Emissions performance units

16. (1) Subject to subsections (2) and (3), the Director shall, on or before November 15 in the year after a compliance period, distribute into the facility account for a covered facility the number of emissions performance units equivalent to the amount, if any, by which the verified total annual emissions limit in respect of the facility for the compliance period is more than the verified verification amount in respect of the facility for the compliance period.

(2) Subsection (1) applies only if the verification statement in respect of the report most recently prepared in respect of the facility for the purposes of the Reporting Regulation includes a positive or qualified positive verification amount conclusion and a positive or qualified positive total annual emissions limit verification conclusion.

(3) If the verified total annual emissions limit was calculated using the Historical Facility Emissions Limit Standard method under the Methodology and the number of emissions performance units that would be distributed under subsection (2) is greater than five per cent of the verified verification amount, then the number of emissions performance units to be distributed shall be reduced to the number that is five per cent of the verified verification amount.

(4) If the result after the reduction described in subsection (3) is a number that is not a whole number, the number shall be rounded down to the nearest whole number.

Removal, retirement of compliance instruments

17. (1) The Director shall ensure that compliance instruments in a facility account that are eligible for use to meet a compliance obligation in respect of a compliance period and required for that purpose are removed from the facility account.

(2) The compliance instruments mentioned in subsection (1) shall be removed on or before December 31 in the year of the applicable date specified in subsection 13 (3) and retired.

(3) If a facility account includes both emissions performance units and excess emissions units, the Director shall remove the compliance instruments as follows:

1. Subject to subsection (5), before removing any emissions performance units, remove all excess emissions units that are eligible for use to meet the compliance obligation in respect of the compliance period and required for that purpose.

2. When removing emissions performance units that are eligible for use to meet the compliance obligation in respect of the compliance period and required for that purpose, begin by removing those distributed in respect of the earliest compliance period and end with those distributed in respect of the most recent compliance period.

(4) The Director shall ensure that compliance instruments in a facility account that are no longer eligible for use under this Regulation are removed from the facility account and retired.

(5) If the first compliance period is 2019 and the Director is removing from a facility account compliance instruments in respect of both the 2019 and 2020 compliance periods, the Director shall take the following steps for the purpose of meeting the compliance obligation in respect of the 2019 compliance period before removing any compliance instruments for the purpose of meeting the compliance obligation in respect of the 2020 compliance period:

1. Remove any excess emissions units that were distributed in 2020.

2. Remove any emissions performance units in accordance with paragraph 2 of subsection (3).

3. Remove any excess emissions units that were distributed in 2021.

(6) If there is a compliance obligation shortfall, the Director shall remove compliance instruments as follows, beginning in the year following the compliance period and ending when the compliance obligation shortfall and the obligation under subsection 13 (4) in respect of the compliance period have been satisfied:

1. As compliance instruments are transferred into the facility account at any time after the applicable date specified in subsection 13 (3), the Director shall remove compliance instruments that are eligible for use to satisfy the compliance obligation shortfall and to meet the obligation under subsection 13 (4).

2. Subject to subsection (7), the Director shall comply with subsection (3).

(7) For the purposes of applying subsection (3) when there is a compliance obligation shortfall, a reference to the compliance obligation in that subsection shall be read as a reference to the compliance obligation shortfall or the obligation under subsection 13 (4).

Change in owner or operator

18. (1) If the owner or operator of a covered facility ceases to be the owner or operator of the facility during a compliance period and a new person becomes the owner or operator during the compliance period and an industrial activity continues to be engaged in at the facility,

(a) subsections 13 (1), (2), (3) and (4) cease to apply to the previous owner or operator in respect of the compliance period; and

(b) Parts III and IV apply to the new owner or operator as if the new owner or operator had been the owner or operator of the facility during the entire compliance period.

(2) If the previous owner or operator was required during the compliance period to satisfy a compliance obligation shortfall or meet an obligation under subsection 13 (4) that arose as a result of a failure to meet the compliance obligation in respect of the previous compliance period, the obligation under subsection 13 (4) applies to the new owner or operator.

Authorized transfers between facility accounts

19. (1) If a covered facility is re-registered under section 6, an account representative in respect of the facility under the previous registration may, by giving a written notice to the Director, request that the Director transfer compliance instruments from the previous facility account to the new facility account.

(2) If two covered facilities are owned by the same person, an account representative in respect of one of the facilities may, by giving a written notice to the Director, request that the Director transfer excess emissions units from the facility account for that facility to the facility account of the other facility.

(3) If the owner or operator of a covered facility enters into an agreement with the owner or operator of another covered facility to transfer emissions performance units from the facility account for the first facility to the facility account for the second facility, an account representative in respect of the transferee’s facility may, by written notice to the Director no later than December 1 in a year, request that the Director transfer emissions performance units from the facility account of the transferor’s facility to the facility account of the transferee’s facility.

(4) For the purposes of subections (1), (2) and (3), the notice shall include the following:

1. The account number assigned by the Ministry to each facility account involved in the transfer.

2. The total number of emissions performance units to be transferred and the total number of excess emissions units to be transferred.

3. For each emissions performance unit to be transferred, the compliance period in respect of which it was distributed.

4. For each excess emissions unit to be transferred, the year in which it was distributed.

5. If the notice is under subsection (3), the price to be paid for each emissions performance unit under the agreement entered into between the transferor and the transferee.

6. A statement signed by an account representative in respect of each facility involved in the transfer, attesting that the account representative authorizes the transfer and that the information included in the notice is accurate.

7. The date on which the request is submitted.

(5) Subject to subsection (6), upon receiving a notice under this section, the Director shall transfer the compliance instruments as specified in the notice.

(6) The Director shall refuse to transfer compliance instruments if the Director is of the opinion that,

(a) the transfer would result in failure to comply with this Regulation;

(b) there are reasonable grounds to believe that an offence has been committed under the Act in relation to the request; or

(c) the request contains errors, omissions or is otherwise incomplete.

(7) If the Director refuses to transfer compliance instruments under subsection (6), the Director shall provide written reasons for the refusal to all of the account representatives who signed the statement mentioned in subsection (4).

(8) The reasons provided under subsection (7) shall identify any errors or omissions in the request and shall include a description of any manner in which the request is incomplete.

(9) If the Director asks an account representative or the owner or operator for information relating to the transfer of compliance instruments under this Regulation, the person to whom the request is made shall give the information to the Director by the date specified by the Director.

Part IV
Miscellaneous

Retention of records

20. The owner and operator of a covered facility shall ensure that all records they created and all records created by the account representatives in respect of the facility relating to the following matters are kept in a paper or electronic format for a period of at least seven years after the records were created:

1. Registration or re-registration under this Regulation.

2. Transactions under this Regulation.

3. Identification of account representatives in respect of the facility.

Giving or submitting records, form and manner

21. (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.

Notice by Director

22. For the purposes of this Regulation, the Director may give notice in an electronic format.

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

Schedule 1
Registration Information

1. The name and contact information of the owner or operator and whether the owner or operator is an individual or a corporation, partnership or sole proprietor.

2. The primary address of the owner or operator and the mailing address of the owner or operator, if the mailing address is different from the primary address.

3. The name and contact information of the individual who is the authorized representative of the owner or operator and the name and contact information of the individual who is the primary contact for the owner or operator, if the primary contact is different from the authorized representative.

4. In the case of a corporation, the business number and the name under which the corporation operates.

5. In the case of a partnership,

i. the business number and the name under which the partnership operates, and

ii. the name and contact information of each partner, or, in the case of a limited partnership, the name and contact information of each partner and general partner.

6. In the case of a sole proprietorship, the business number, if applicable, and the name under which the sole proprietorship operates.

7. A document signed by the chief officer of the owner or operator or a resolution of the board of directors of the owner or operator that sets out the following:

i. An undertaking that the chief officer or board of directors will comply with this Regulation.

ii. A statement that the information provided under this section is accurate, to the best of the chief officer’s or the board of directors’ knowledge.

8. Any unique identifiers that have been provided to the owner or operator by the Ministry or by Environment Canada in respect of each facility in respect of which a report is required under Ontario Regulation 452/09, Ontario Regulation 143/16 or the Reporting Regulation.

9. All primary NAICS codes and any secondary NAICS codes related to each facility.

10. Identification of each industrial activity engaged in at the facility.

11. In respect of at least two individuals being identified as account representatives in respect of the facility, each individual’s name, job title, address, telephone number and email address.

12. A statement signed by each individual identified as an account representative in respect of the facility, attesting that,

i. the individual meets the criteria set out in subsection 7 (2),

ii. the individual has been identified as a person authorized to act as an account representative in respect of the facility,

iii. the individual undertakes to comply with this Regulation, and

iv. the information included in the statement is true and accurate.

13. A statement signed by a chief officer or a resolution of the board of directors of the owner or operator of the facility, confirming that each individual mentioned in paragraph 12 has been identified as an account representative in respect of the facility and is authorized to act as an account representative in respect of the facility on behalf of the owner or operator.

14. Such other information in respect of the owner or operator of a facility as may be specified by the Minister of the Environment under section 171 of the Greenhouse Gas Pollution Pricing Act (Canada).

Schedule 2
Industrial activities

1. Smelting or refining, from feedstock that comes primarily from ore, of at least one of the following metals: nickel, copper, zinc, lead, or cobalt.

2. Extracting, processing and producing bitumen or crude oil.

3. Upgrading of bitumen or heavy oil to produce synthetic crude oil.

4. Petroleum refining through,

i. the distillation of crude oil, or

ii. cracking, rearranging or reforming unfinished petroleum derivatives.

5. Processing of natural gas, including processing to produce natural gas liquids.

6. Transmitting natural gas.

7. Producing hydrogen gas using steam hydrocarbon reforming or partial oxidation of hydrocarbons.

8. Producing cement from clinker.

9. Producing grain ethanol for use in an industrial or fuel application.

10. Producing carbon black in any form, including pellets and powders, using thermal oxidation or thermal decomposition of hydrocarbon feedstock.

11. Producing 2-methylpenta-methylenediamine (MPMD).

12. Producing resins or fibres of Nylon 6 or Nylon 6,6.

13. Producing petrochemicals, other than producing them as a byproduct, from feedstocks derived from petroleum or from petroleum and liquefied natural gas, including producing the following petrochemicals:

i. Hydrogen gas, ethylene, propylene, butadiene and pyrolysis gas from steam cracking.

ii. Aromatic cyclic hydrocarbons.

iii. Higher olefins.

iv. Hydrocarbon solvents.

v. Styrene.

vi. Polyethylene.

14. Producing vaccines for human or animal use.

15. Producing iron ore pellets from iron ore concentrate.

16. Producing steel from feedstock that comes primarily from iron or scrap steel.

17. Producing iron or steel from smelted iron ore or producing metallurgical coke.

18. Producing lime from limestone using a kiln.

19. Producing coal by mining coal deposits.

20. Producing metal or diamonds from the mining or milling of ore or kimberlite.

21. Calcining coal to produce char.

22. Producing activated carbon from coal.

23. Producing nitric acid by the catalytic oxidation of ammonia.

24. Producing anhydrous ammonia or aqueous ammonia by the steam reforming of a hydrocarbon.

25. Industrial processing of potatoes or oilseeds for human or animal consumption.

26. Producing ethanol by distillation for use in the production of alcoholic beverages.

27. Processing corn through wet milling.

28. Producing citric acid.

29. Producing refined sugar from raw cane sugar.

30. Producing potash from the mining and refining of potash ore.

31. Producing pulp from wood or other plant material or producing paper or any product derived directly from pulp or a pulping process.

32. Producing brick or other products made from clay or shale using a kiln.

33. Assembling four-wheeled self-propelled vehicles that are designed for use on a highway and that have a gross vehicle weight rating of less than 4,536 kg (10,000 pounds).

34. Producing glass using a furnace.

35. Producing gypsum products.

36. Producing mineral wool insulation, other than glass wool.

37. Producing metal tubes.

38. Generating electricity using fossil fuels.

39. Engaging in an activity described under any of the following NAICS codes:

i. 2123 (Non-metallic mineral mining and quarrying).

ii. 3112, 3118, 3119 (Miscellaneous food manufacturing).

iii. 3113 (Sugar and confectionery product manufacturing).

iv. 321 (Wood product manufacturing).

v. 324 (Petroleum and coal product manufacturing).

vi. 3251, 3252, 3259 (Other chemical manufacturing).

vii. 3254 (Pharmaceutical and medicine manufacturing).

viii. 3271, 3272, 3274, 3279 (Non-metallic mineral product manufacturing, except cement and concrete products).

ix. 331 (Primary metal manufacturing).

x. 33633 (Motor vehicle steering and suspension components (except spring) manufacturing).

xi. 33639 (Other motor vehicle parts manufacturing).

 

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