O. Reg. 730/21: GREENHOUSE GAS EMISSIONS: QUANTIFICATION, REPORTING AND VERIFICATION
filed October 22, 2021 under Environmental Protection Act, R.S.O. 1990, c. E.19
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made under the
Environmental Protection Act
Made: October 21, 2021
Filed: October 22, 2021
Published on e-Laws: October 22, 2021
Printed in The Ontario Gazette: November 6, 2021
Amending O. Reg. 390/18
(GREENHOUSE GAS EMISSIONS: QUANTIFICATION, REPORTING AND VERIFICATION)
1. (1) Subsection 1 (1) of Ontario Regulation 390/18 is amended by adding the following definitions:
“compliance period” has the same meaning as in Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act; (“période de conformité”)
“first compliance period” has the same meaning as in Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act; (“première période de conformité”)
(2) The definition of “ISO 14065” in subsection 1 (1) of is revoked and the following substituted:
“ISO 14065” means, subject to subsection (3), ISO Standard 14065:2020, published by the International Organization for Standardization (ISO); (“ISO 14065”)
(3) Subsection 1 (1) of the Regulation is amended by adding the following definition:
“natural gas transmission” means the movement of natural gas in a natural gas pipeline system upstream of gate station inlet valves where pressure reduction or measuring occurs for the delivery of natural gas to consumers; (“transport de gaz naturel”)
(4) The definition of “on-site transportation emissions” in subsection 1 (1) of the Regulation is revoked.
(5) Section 1 of the Regulation is amended by adding the following subsection:
(3) Despite the definition of “ISO 14065”, an accredited verification body that completes a verification for the purposes of this Regulation on or before November 30, 2023 may elect to comply with ISO Standard 14065:2013 published by the International Organization for Standardization instead of ISO 14065:2020, and any reference in this Regulation to “ISO 14065” shall be read as a reference to ISO Standard 14065:2013 for the purposes of a verification in respect of which such an election has been made.
2. (1) Paragraphs 2 and 3 of subsection 1.1 (1) of the Regulation are revoked and the following substituted:
2. The portion of a natural gas pipeline system within Ontario, including associated installations and equipment that is used in natural gas transmission.
3. The portion of a natural gas pipeline system within Ontario, including associated installations and equipment that is used in natural gas distribution.
(2) Subsection 1.1 (6) of the Regulation is amended by striking out “or portions of separate sites” in the portion before paragraph 1.
3. Subsection 5 (1) of the Regulation is revoked and the following substituted:
Duty to quantify, calculate
(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, where it could be reasonably expected that the reporting amount in respect of the facility for the year, determined in accordance with the formula in subsection 6 (2), is 10,000 tonnes of CO2e or more.
4. Subsection 7 (3) of the Regulation is revoked.
5. (1) Subsection 12 (1) of the Regulation is revoked and the following substituted:
Duty to verify, covered facilities
(1) The owner or operator of a covered facility shall determine the verification amount in respect of the covered facility for each year in which the covered facility is a covered facility, in accordance with the following formula:
V = (A – B − C + D)
where,
V = the verification amount, expressed as tonnes of CO2e,
A = the amount of greenhouse gas emitted during all specified GHG activities engaged in at the covered facility, quantified in accordance with section 5 and expressed as tonnes of CO2e,
B = the portion of A, expressed as tonnes of CO2e, that is carbon dioxide emitted from the combustion of biomass,
C = the portion of A, expressed as tonnes of CO2e, that is emitted from,
(a) coal storage,
(b) the operation of a natural gas pipeline system,
(c) the operation of equipment for an electricity transmission or distribution system,
(d) HCFC-22 production and HFC-23 destruction, and
(e) other emissions, as described in subsection (1.1), and
D = the amount of greenhouse gas, expressed as tonnes of CO2e, that is from,
(a) CO2 recovered and consumed in urea production,
(b) CO2 recovered or captured from hydrogen production,
(c) flares in the operation of a natural gas pipeline system,
(d) basic oxygen furnace gas transferred off-site,
(e) coke oven gas transferred off-site, and
(f) blast furnace gas transferred off-site.
(2) Section 12 of the Regulation is amended by adding the following subsection:
(1.2) Where the owner or operator has received a notice of registration under subsection 64 (2) of the Greenhouse Gas Pollution Pricing Act (Canada) from the Minister of National Revenue setting out the effective date of registration of the owner or operator as a registered emitter in respect of the covered facility, the verification amount shall not include any amount for the portion of the year prior to the effective date contained in the notice.
(3) Subsection 12 (3) of the Regulation is revoked and the following substituted:
(3) This section ceases to apply in respect of the owner or operator of a facility if the facility was a covered facility but has ceased to be a covered facility.
(4) Despite anything else in this section, the owner or operator of a covered facility that first became a covered facility in 2021 is not required to determine the verification amount or submit a verification statement or verification report with regard to emissions in that year.
6. (1) Subsection 15 (1) of the Regulation is revoked and the following substituted:
Revised reports
(1) The owner or operator of a covered facility in respect of which a report has been given to the Director under this Regulation, Ontario Regulation 143/16 or Ontario Regulation 452/09 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 verification amount, as determined in accordance with subsection (3) or (3.1), is,
i. 8 per cent or more when emissions are less than 50,000 tonnes of CO2e,
ii. 5 per cent or more, when emissions are greater than or equal to 50,000 but less than 500,000 tonnes of CO2e, or
iii. 2 per cent when emissions are 500,000 tonnes of CO2e or greater.
2. It is probable that the per cent discrepancy in the verification amount, based on the individual or aggregate effect of one or more errors, omissions or misstatements that have been identified, is,
i. 8 per cent or more when emissions are less than 50,000 tonnes of CO2e,
ii. 5 per cent or more, when emissions are greater than or equal to 50,000 but less than 500,000 tonnes of CO2e, or
iii. 2 per cent when emissions are 500,000 tonnes of CO2e or greater.
3. If the report is given to the Director with respect to emissions in the first compliance period or any subsequent compliance period,
i. the per cent discrepancy in any production parameter reported in respect of an activity is 5 per cent or more, as determined in accordance with subsection (4), or
ii. the per cent discrepancy in the total annual emissions limit reported in respect of the covered facility is 5 per cent or more, as determined in accordance with subsection (4.1).
(2) Subsection 15 (3) of the Regulation is amended by adding “of the aggregation of all errors, omissions and misstatements” after “per cent discrepancy” in the portion before the formula.
(3) Section 15 of the Regulation is amended by adding the following subsection:
(3.1) The per cent discrepancy of each individual error, omission and misstatement in a verification amount shall be determined by applying the following formula:
PD = (IEOM / VA × 100)
where,
PD = per cent discrepancy,
IEOM = the absolute value of the maximum individual error, omission or misstatement, expressed in tonnes of CO2e, and
VA = the amount.
(4) Subsection 15 (4.1) of the Regulation is revoked and the following substituted:
(4.1) For the purposes of paragraph 3 of subsection (1), the per cent discrepancy in the total annual emissions limit reported in respect of the covered facility that is the subject of the report shall be determined by applying the following formula:
PD = (QAELv − QAELi) / QAELi × 100
where,
PD =per cent discrepancy for the total annual emissions limit for the covered facility,
QAELv = actual total annual emissions limit for the covered facility, and
QAELi = total annual emissions limit for the covered facility as set out in the report.
(5) Subsection 15 (8) of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:
(8) A person who gives the Director a revised report pursuant to subsection (1) 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:
. . . . .
7. Subsections 16 (3), (4) and (5) of the Regulation are revoked and the following substituted:
(3) If the report is with respect to a specified GHG activity engaged in at a covered facility, the accredited verification body shall visit the covered facility if,
(a) the report is the first report with respect to the covered facility;
(b) the accredited verification body has not visited the covered facility in the previous two years for the purposes of conducting a verification with respect to the covered facility;
(c) the most recent verification of a report with respect to the covered facility resulted in an adverse verification statement or an adverse verification conclusion 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 covered facility; or
(e) the accredited verification body is of the opinion that a visit to the covered facility is necessary for the purposes of determining whether the report contains a material discrepancy.
(4) For the purposes of subsection (3),
(a) the verification of a revised report does not count for the purpose of counting visits; and
(b) a visit is not required in the case of a revised report.
8. (1) Paragraphs 2, 3 and 4 of subsection 17 (2) of the Regulation are revoked and the following substituted:
2. 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, except that a revised report may be verified by the verification body within those three years if it is in relation to an annual report verified by that verification body.
(2) Subsections 17 (4), (4.1) and (5) of the Regulation are revoked and the following substituted:
(4) An accredited verification body shall not verify more than a total of six reports for the same covered facility within a period of nine years.
(5) For the purposes of subsection (4) the verification of a revised report or a report under section 10 or 13 as those provisions read immediately before the day section 8 of Ontario Regulation 77/19 made under the Act came into force does not count for the purposes of counting the number of total reports.
9. Subsection 18 (1) of the Regulation is revoked and the following substituted:
(1) When verifying a report under this Regulation, an accredited verification body shall determine, in accordance with sections 19, 20 and 20.1, whether there is a reasonable level of assurance that the report contains no material discrepancy, whether the report was prepared in accordance with this Regulation and, in the case of a report given to the Director in respect of the first compliance period that applies to the covered facility or a subsequent compliance period, whether the total annual emissions limit for the covered facility was determined in accordance with Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act.
10. (1) Subsection 19 (2) of the Regulation is revoked and the following substituted:
(2) A material discrepancy in emissions exists if the per cent discrepancy in the verification amount, as determined under subsection (3) or (3.1), is,
(a) 8 per cent or more when emissions are less than 50,000 tonnes of CO2e;
(b) 5 per cent or more, when emissions are greater than or equal to 50,000 but less than 500,000 tonnes of CO2e; or
(c) 2 per cent when emissions are 500,000 tonnes of CO2e or greater.
(2) Subsection 19 (3) of the Regulation is amended by striking out the portion before the formula and substituting the following:
(3) The per cent discrepancy of the aggregation of all errors, omissions and misstatements in a verification amount shall be determined by applying the following formula:
. . . . .
(3) Section 19 of the Regulation is amended by adding the following subsection:
(3.1) The per cent discrepancy of each individual error, omission and misstatement in a verification amount shall be determined by applying the following formula:
PD = (IEOM / VA × 100)
where,
PD = per cent discrepancy,
IEOM = the absolute value of the maximum individual error, omission or misstatement, expressed in tonnes of CO2e, and
VA = the amount.
(4) Subsection 19 (4) of the Regulation is revoked and the following substituted:
(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 in the verification amount of,
(a) 8 per cent or more when emissions are less than 50,000 tonnes of CO2e,
(b) 5 per cent or more, when emissions are greater than or equal to 50,000 but less than 500,000 tonnes of CO2e, or
(c) 2 per cent when emissions are 500,000 tonnes of CO2e or greater.
11. (1) Subsection 20 (2) of the Regulation is amended by striking out “0.1 per cent” in the portion before the formula and substituting “5 per cent”.
(2) Subsection 20 (3) of the Regulation is revoked and the following substituted:
(3) This section applies only if the report is in respect of a covered facility and is given to the Director in respect of the first compliance period that applies to the covered facility or a subsequent compliance period.
12. Section 20.1 of the Regulation is revoked and the following substituted:
Total annual emissions limit verification conclusion
20.1 (1) This section applies only if the report is in respect of a covered facility and is given to the Director in respect of the first compliance period that applies to the covered facility or a subsequent compliance period.
(2) The accredited verification body shall include in the verification statement and report a total annual emissions limit verification conclusion for the covered facility that is the subject of the report as 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 in respect of the total annual emissions limit for the covered facility:
TABLE
TYPES OF total annual emissions limit verification conclusions
|
Item |
Column 1 |
Column 2 |
|
1. |
Positive. |
Both of the following circumstances apply: |
|
2. |
Qualified positive. |
Both of the following circumstances apply: |
|
3. |
Adverse. |
One or both of the following circumstances apply: |
(3) A material discrepancy in the total annual emissions limit for the facility exists if the per cent discrepancy for the total annual emissions limit for the covered facility is 5 per cent or more, based on the following formula:
PD = (QAELv − QAELi) / QAELi × 100
where,
PD = per cent discrepancy for the total annual emissions limit for the covered facility,
QAELv = actual total annual emissions limit for the covered facility, and
QAELi = total annual emissions limit for the covered facility as set out in the report.
13. (1) Paragraphs 2.1, 3, 4 and 5 of subsection 21 (1) of the Regulation are revoked and the following substituted:
2.1 The verified production parameter and proposed production parameter verification conclusion, if the report is given to the Director in respect of the first compliance period that applies to the covered facility or a subsequent compliance period.
2.2 The name and address of the person required to give the report to the Director, the address of every facility and site included in the covered facility in respect of which the report is prepared and a description of the facility or site.
2.3 The business number assigned by the Canada Revenue Agency to the person described in paragraph 2.2.
2.4 Every GHG ID number assigned by the Ministry to the person described in paragraph 2.2, and to every facility and site included in the covered facility.
2.5 A list of the industrial activities engaged in at the covered facility and every site included in the covered facility.
2.6 An indication as to whether the person who produced the report is the owner or operator of the covered facility.
3. The verified total annual emissions limit and the proposed total annual emissions limit verification conclusion, if the report is given to the Director in respect of the first compliance period that applies to the covered facility or a subsequent compliance period.
4. A description of the objectives and scope of the verification and the criteria applied in conducting the verification including which version of ISO 14064-3 and 14065 were applied in conducting the verification.
5. A description of the data and information supporting the verification report including a record of any visits made to the covered facility.
(2) Paragraph 7 of subsection 21 (1) of the Regulation is revoked and the following substituted:
7. A record of any error, omission, misstatement or non-compliance identified during the verification including, but not limited to, the number of tonnes of CO2e related to emissions, the amount of the production parameter and the number of tonnes of CO2e related to the total annual emissions limit to which the error, omission, misstatement or non-compliance corresponds if it may be quantified, the related per cent discrepancy calculated in accordance with sections 19, 20 and 20.1 and a statement indicating whether the error, omission, misstatement or non-compliance results in an understatement or overstatement.
14. Subsection 23.1 (1) of the Regulation is revoked and the following substituted:
Request for revised report, etc.
(1) If any of the circumstances described in subsection (2) apply, the Director may in writing request that the owner or operator of a facility in respect of which a report has been given with respect to specified GHG activities engaged in at the facility do either or both of the following:
1. Revise the report and give the revised report to the Director.
2. Ensure that a revised verification statement is prepared in respect of the revised report and given to the Director.
15. Paragraphs 17 and 18 of Schedule 3 to the Regulation are revoked and the following substituted:
17. If the report is in respect of a covered facility, all records and documents used to quantify or calculate the total annual emissions limit and the annual activity emissions limits that were used as inputs.
18. If the report is in respect of a covered facility, a record showing the calculation of the total annual emissions limit and of the annual activity emissions limits that were used as inputs, and the methods used.
16. (1) Schedule 5 to the Regulation is amended by adding the following paragraph:
3.1 A description of which sites are included in the facility for the purposes of the report, where applicable.
(2) Paragraphs 6 and 6.1 of Schedule 5 to the Regulation are revoked and the following substituted:
6. Production, material usage and process data required to be included in the report under the Guideline.
(3) Paragraph 8.1 of Schedule 5 to the Regulation is revoked.
(4) Subparagraph 9 i.1 of Schedule 5 to the Regulation is revoked.
(5) Subparagraph 9 iii of Schedule 5 to the Regulation is revoked.
(6) Schedule 5 to the Regulation is amended by adding the following paragraphs:
11. If the report is with respect to a covered facility, the following information:
i. A list of the industrial activities engaged in at the facility.
ii. The sites that are part of the covered facility.
iii. The verification amount.
iv. The production parameters.
11.1 In the case of a report in respect of the first compliance period that applies to the covered facility or a subsequent compliance period, the following:
i. The total annual emissions limit.
ii. The calculation of the total annual emissions limit and of each annual activity emissions limit that was used as an input.
Commencement
17. This Regulation comes into force on the day it is filed.