O. Reg. 563/22: GREENHOUSE GAS EMISSIONS: QUANTIFICATION, REPORTING AND VERIFICATION
filed December 13, 2022 under Environmental Protection Act, R.S.O. 1990, c. E.19
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made under the
Environmental Protection Act
Made: December 8, 2022
Filed: December 13, 2022
Published on e-Laws: December 13, 2022
Printed in The Ontario Gazette: December 31, 2022
Amending O. Reg. 390/18
(GREENHOUSE GAS EMISSIONS: QUANTIFICATION, REPORTING AND VERIFICATION)
1. Ontario Regulation 390/18 is amended by striking out “Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act” wherever it appears and substituting in each case “the EPS Regulation”.
2. (1) Subsection 1 (1) of the Regulation is amended by adding the following definitions:
“EPS Regulation” means Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act; (“règlement sur le programme NRE”)
“production parameter” has the same meaning as in the Guideline; (“paramètre de production”)
“registration period” has the same meaning as in the EPS Regulation; (“période d’enregistrement”)
(2) The definition of “covered facility” in subsection 1 (1) of the Regulation is revoked and the following substituted:
“covered facility” means an EPS facility, within the meaning of the EPS Regulation, that is registered or required to be registered under that Regulation; (“installation assujettie”)
(3) Subsection 1 (3) of the Regulation is amended by striking out “November 30, 2023” and substituting “June 30, 2024”.
3. (1) The definition of variable “GWPi” in the formula set out in subsection 4 (1) of the Regulation is revoked and the following substituted:
GWPi = the applicable global warming potential for greenhouse gas i, being the number set out in Column 5 of Schedule 1 opposite the greenhouse gas set out in Column 1,
(2) Subsection 4 (2) of the Regulation is revoked.
4. Subsections 6 (4), 7 (8.1), 9 (3) and 10 (7) of the Regulation are revoked.
5. Section 12 of the Regulation is revoked and the following substituted:
Duty to verify, covered facilities
12. (1) The owner or operator of a covered facility shall determine the verification amount in respect of the covered facility in accordance with the formula set out in subsection (2) for each of the following years:
1. Each compliance period to which Part III of the EPS regulation applies to the owner or operator in respect of the covered facility.
2. If the covered facility is registered under paragraph 3 of subsection 4 (1) of the EPS Regulation, each year in the registration period before the covered facility’s first compliance period.
(2) The following is the formula mentioned in subsection (1):
VA = A – B – C – D + E
where,
VA = the verification amount, expressed as tonnes of CO2e,
A = the amount of greenhouse gas emitted from the covered facility during the year in respect of 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 at the covered facility,
C = the portion of A, expressed as tonnes of CO2e, that is emitted from the covered facility in respect of,
(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 (3),
D = the amount of carbon dioxide identified by the owner or operator, in accordance with the eligibility rules in subsection (4), representing a portion of the carbon dioxide that has been permanently stored in long-term geological storage during the year, and
E = the amount of greenhouse gas emitted from the covered facility during the year, expressed as tonnes of CO2e, in respect of,
(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.
(3) For the purposes of clause (e) of “C” in the formula in subsection (2), the other emissions are emissions,
(a) that result from engaging in an activity that is part of engaging in the specified GHG activities at a covered facility but for which no corresponding standard quantification method is set out in the Guideline; and
(b) that are quantified, as provided for in the Guideline, by using a method that is consistent with one or more methods specified in the Guideline.
(4) Carbon dioxide that satisfies the following criteria is eligible to be identified for the purposes of “D” in the formula in subsection (2):
1. The carbon dioxide has been permanently stored in long-term geological storage during the year.
2. The carbon dioxide was generated in respect of one or more specified GHG activities engaged in at the covered facility during the year or, subject to paragraph 4, during any previous year.
3. The carbon dioxide was captured, transported and stored in accordance with any applicable provincial or federal law and, at each stage, the amount of carbon dioxide being captured, transported and stored was quantified in accordance with the Guideline.
4. The carbon dioxide has not been previously identified for the purposes of “D” in respect of the covered facility or any other facility.
(5) For greater certainty, for the purposes of “D” in the formula in subsection (2), an owner or operator may identify any amount of carbon dioxide that satisfies the eligibility criteria in subsection (4), including no amount.
(6) If the verification amount determined under subsection (1) is a negative number, it is deemed to be zero.
(7) If an owner or operator of a covered facility mentioned in subsection (1) has received a notice of registration under subsection 64 (2) of the Greenhouse Gas Pollution Pricing Act (Canada) from the Minister of National Revenue dated after January 1 in the covered facility’s first compliance period in respect of a registration period setting out the effective date of registration of the owner or operator as a registered emitter in respect of the covered facility, the determination of the verification amount under subsection (1) of this section for the covered facility’s first compliance period in respect of the registration period shall not include any amount for the portion of the year prior to the effective date contained in the notice.
(8) If an owner or operator of a covered facility mentioned in subsection (1) receives a notice under subsection 8 (3) of the EPS Regulation dated on or after January 1 in the year that is the subject of the determination under subsection (1) of this section setting out an effective date of a change in respect of the composition of sites that constitute the covered facility, the following rules apply for the purposes of determining the verification amount under subsection (1) of this section for that year:
1. If a site that, before the effective date, constituted part of another covered facility is added to the covered facility, the site is deemed to have constituted part of the covered facility mentioned in subsection (1) for the entire year.
2. If a site that, before the effective date, did not constitute part of another covered facility is added to the covered facility, no amount in respect of the site shall be included in the determination under subsection (1) for the portion of the year that occurs before the effective date.
3. If a site is removed from the covered facility and added to another covered facility, the site is deemed not to have constituted part of the covered facility mentioned in subsection (1) for the entire year.
4. If a site is removed from the covered facility and is not added to another covered facility, no amount in respect of the site shall be included in the determination under subsection (1) for the portion the year that occurs after the effective date.
(9) The owner or operator mentioned in subsection (1) shall,
(a) set out the verification amount in the report and have the report verified by an accredited verification body in accordance with this Regulation; and
(b) 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 year in which the report to be verified is required to be submitted to the Director.
(10) 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 amended by revoking the portion before paragraph 1 and substituting the following:
Revised reports
(1) If, within seven years after a report has been given to the Director under this Regulation, Ontario Regulation 143/16 or Ontario Regulation 452/09, a person described in subsection (2) becomes aware of an error, omission or misstatement in the report and makes one of the following determinations, the person shall revise the report in accordance with the requirements set out in this Regulation with respect to the initial report given to the Director:
. . . . .
(2) Paragraph 3 of subsection 15 (1) of the Regulation is amended by striking out “the first compliance period or any subsequent compliance period” at the end of the portion before subparagraph i and substituting “a compliance period”.
(3) Subsection 15 (2) of the Regulation is revoked and the following substituted:
(2) The requirement to revise a report under subsection (1) applies to a person if,
(a) the person becomes aware of an error, omission or misstatement in the report after the first compliance period in the registration period that includes the year to which the report relates and Part III of the EPS Regulation applies to the person in respect of the covered facility for the compliance period that, as of the date the person becomes aware, is the most recent compliance period in that registration period; or
(b) the person becomes aware of an error, omission or misstatement in the report before or during the first compliance period in the registration period that includes the year to which the report relates and, as of the date the person becomes aware, the person is in receipt of the most recent confirmation of the covered facility’s registration or continuation of registration under the EPS Regulation in respect of that registration period.
(4) Subsections 15 (3) and (3.1) of the Regulation are revoked and the following substituted:
(3) The per cent discrepancy in a verification amount based on the aggregate effect of all errors, omissions and misstatements in a report shall be determined by applying the following formula:
PD = (SOU / VA × 100)
where,
PD = per cent discrepancy,
SOU = the net result of summing overstatements and understatements resulting from all errors, omissions and misstatements in the report, expressed in tonnes of CO2e, and
VA = the verification amount set out in the report.
(3.1) The per cent discrepancy in a verification amount based on the effect of all overstatements or all understatements, whichever is greater, resulting from all errors, omissions and misstatements in a report shall be determined by applying the following formula:
PD = (GV/ VA × 100)
where,
PD = per cent discrepancy,
GV = the greater of,
(a) the absolute value of the sum of overstatements resulting from all errors, omissions and misstatements in the report, expressed in tonnes of CO2e, and
(b) the absolute value of the sum of understatements resulting from all errors, omissions and misstatements in the report, expressed in tonnes of CO2e, and
VA = the verification amount set out in the report.
(5) Subsection 15 (4.1) of the Regulation is amended by striking out “For the purposes of paragraph 3 of subsection (1)” at the beginning.
7. Subsection 18 (1) of the Regulation is revoked and the following substituted:
Verification statements
(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 for a compliance period in respect of a covered facility, whether the total annual emissions limit for the covered facility was determined in accordance with the EPS Regulation.
8. Subsections 19 (3) and (3.1) of the Regulation are revoked and the following substituted:
(3) The per cent discrepancy in a verification amount based on the aggregate effect of all errors, omissions and misstatements in a report shall be determined by applying the following formula:
PD = (SOU / VA × 100)
where,
PD = per cent discrepancy,
SOU = the net result of summing overstatements and understatements resulting from all errors, omissions and misstatements in the report, expressed in tonnes of CO2e, and
VA = the verification amount set out in the report.
(3.1) The per cent discrepancy in a verification amount based on the effect of all overstatements or all understatements, whichever is greater, resulting from all errors, omissions and misstatements in a report shall be determined by applying the following formula:
PD = (GV/ VA × 100)
where,
PD = per cent discrepancy,
GV = the greater of,
(a) the absolute value of the sum of overstatements resulting from all errors, omissions and misstatements in the report, expressed in tonnes of CO2e, and
(b) the absolute value of the sum of understatements resulting from all errors, omissions and misstatements in the report, expressed in tonnes of CO2e, and
VA = the verification amount set out in the report.
9. (1) Subsection 20 (1) of the Regulation is amended by striking out “listed in the Guideline”.
(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 for a compliance period in respect of the covered facility.
10. Subsection 20.1 (1) of the Regulation is revoked and the following substituted:
Total annual emissions limit verification conclusion
(1) This section applies only if the report is in respect of a covered facility and is given to the Director for a compliance period in respect of the covered facility.
11. (1) Paragraph 2.1 of subsection 21 (1) of the Regulation is 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 for a compliance period in respect of the covered facility.
(2) Paragraph 3 of subsection 21 (1) of the Regulation is revoked and the following substituted:
3. The verified total annual emissions limit and the proposed total annual emissions limit verification conclusion, if the report is given to the Director for a compliance period in respect of the covered facility.
12. Section 23.1 of the Regulation is revoked and the following substituted:
Request for revised report, etc.
23.1 (1) Within seven years after a report in respect of a facility is given to the Director under this Regulation, the Director may request, in writing, that the report be revised if one or more of the following circumstances exist:
1. The Director is of the opinion that the accredited verification body that verified the report has a potential compromise to its impartiality.
2. Based on production parameters and other data submitted by the owner or operator of the facility and verified by the accredited verification body, the Director has obtained a different result in calculating the total annual emissions limit.
3. Based on emissions data, production parameters and other data submitted by the owner or operator of the facility and verified by the accredited verification body, the Director has obtained a different result in calculating the verification amount.
4. In the five-year period before the date on which the report is given to the Director, one or more verification statements set out in verification reports given to the Director in respect of the facility have contained an adverse verification conclusion for,
i. a verification amount,
ii. a production parameter, or
iii. the total annual emissions limit.
5. The Director has reason to believe that one or more requirements in this Regulation or the calculation methods set out in the Guideline have not been complied with in respect of the facility.
(2) If a report mentioned in subsection (1) is in respect of a facility that is not a covered facility, a request under that subsection shall be made to the person who is the owner or operator of the facility at the time of the request.
(3) If a report mentioned in subsection (1) is in respect of a covered facility, a request under that subsection made after the first compliance period in the registration period that includes the year to which the report relates shall be made to the person to whom Part III of the EPS Regulation applied in respect of the covered facility for the compliance period that, as of the date of the request, is the most recent compliance period in that registration period.
(4) If a report mentioned in subsection (1) is in respect of a covered facility, a request under that subsection made before or during the first compliance period in the registration period mentioned in subsection (3) shall be made to the person who, as of the date of the request, is in receipt of the most recent confirmation of the covered facility’s registration or continuation of registration under the EPS Regulation in respect of that registration period.
(5) A person to whom the Director makes a request under this section shall give the revised report and, if applicable, the verification report and verification statement in respect of the revised report, all prepared in accordance with this Regulation, to the Director within 90 days after receiving the Director’s request.
13. Section 27 of the Regulation is revoked and the following substituted:
Extension of deadlines by Director
27. (1) The Director may extend any deadline set out in this Regulation for the giving of reports or extend any deadline for any component of reports, if,
(a) a deadline established for submitting information or reports concerning greenhouse gases or submitting verification of that information or those reports under the Canadian Environmental Protection Act, 1999, the Greenhouse Gas Pollution Pricing Act (Canada) or any regulations or notices under those Acts has been extended or an extension has been proposed;
(b) a technical problem exists with the electronic reporting system or the compliance instrument tracking system that would make electronic submission by the deadline not reasonably practicable; or
(c) an emergency has been declared under the Emergency Management and Civil Protection Act or there is a public welfare emergency under the Emergencies Act (Canada).
(2) The Director shall give public notice in writing of an extension of a deadline made under subsection (1) in a manner the Director considers appropriate.
(3) For greater certainty, if the Director extends a deadline under subsection (1), the deadline is extended for all persons.
14. Schedule 1 to the Regulation is revoked and the following substituted:
SCHEDULE 1
GREENHOUSE GASES AND GLOBAL WARMING POTENTIALS
|
Item |
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
|
1. |
Carbon dioxide |
CO2 |
Carbon dioxide |
124-38-9 |
1 |
|
2. |
Methane |
CH4 |
Methane |
74-82-8 |
28 |
|
3. |
Nitrous oxide |
N2O |
Nitrous oxide |
10024-97-2 |
265 |
|
4. |
Sulfur hexafluoride |
SF6 |
Sulfur hexafluoride |
2551-62-4 |
23,500 |
|
5. |
Nitrogen trifluoride |
NF3 |
Nitrogen trifluoride |
7783-54-2 |
16,100 |
|
6. |
HFC-23 |
CHF3 |
Trifluoromethane |
75-46-7 |
12,400 |
|
7. |
HFC-32 |
CH2F2 |
Difluoromethane |
75-10-5 |
677 |
|
8. |
HFC-41 |
CH3F |
Fluoromethane |
593-53-3 |
116 |
|
9. |
HFC-43-10mee |
C5H2F10 |
1,1,1,2,3,4,4,5,5,5- Decafluoropentane |
138495-42-8 |
1,650 |
|
10. |
HFC-125 |
C2HF5 |
Pentafluoroethane |
354-33-6 |
3,170 |
|
11. |
HFC-134 |
C2H2F4 |
1,1,2,2-Tetrafluoroethane |
359-35-3 |
1,120 |
|
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 |
328 |
|
14. |
HFC-143a |
C2H3F3 |
1,1,1-Trifluoroethane |
420-46-2 |
4,800 |
|
15. |
HFC-152 |
C2H4F2 |
1,2-Difluoroethane |
624-72-6 |
16 |
|
16. |
HFC-152a |
C2H4F2 |
1,1-Difluoroethane |
75-37-6 |
138 |
|
17. |
HFC-161 |
C2H5F |
Fluoroethane |
353-36-6 |
4 |
|
18. |
HFC-227ea |
C3HF7 |
1,1,1,2,3,3,3- Heptafluoropropane |
431-89-0 |
3,350 |
|
19. |
HFC-236cb |
C3H2F6 |
1,1,1,2,2,3-Hexafluoropropane |
677-565 |
1,210 |
|
20. |
HFC-236ea |
C3H2F6 |
1,1,1,2,3,3-Hexafluoropropane |
431-63-0 |
1,330 |
|
21. |
HFC-236fa |
C3H2F6 |
1,1,1,3,3,3-Hexafluoropropane |
690-39-1 |
8,060 |
|
22. |
HFC-245ca |
C3H3F5 |
1,1,2,2,3-Pentafluoropropane |
679-86-7 |
716 |
|
23. |
HFC-245fa |
C3H3F5 |
1,1,1,3,3-Pentafluoropropane |
460-73-1 |
4,620 |
|
24. |
HFC-365mfc |
C4H5F5 |
1,1,1,3,3-Pentafluorobutane |
406-58-6 |
804 |
|
25. |
PFC-14 (Perfluoromethane) |
CF4 |
Tetrafluoromethane |
75-73-0 |
6,630 |
|
26. |
PFC-116 (Perfluoroethane) |
C2F6 |
Hexafluoroethane |
76-16-4 |
11,100 |
|
27. |
PFC-218 (Perfluoropropane) |
C3F8 |
Octafluoropropane |
76-19-7 |
8,900 |
|
28. |
PFC-31-10 (Perfluorobutane) |
C4F10 |
Decafluorobutane |
355-25-9 |
9,200 |
|
29. |
PFC-318 (Perfluorocyclobutane) |
c-C4F8 |
Octafluorocyclobutane |
115-25-3 |
9,540 |
|
30. |
PFC-41-12 (Perfluoropentane) |
C5F12 |
Dodecafluoropentane |
678-26-2 |
8,550 |
|
31. |
PFC-51-14 (Perfluorohexane) |
C6F14 |
Tetradecafluorohexane |
355-42-0 |
7,910 |
|
32. |
PFC-9-1-18 (Perfluorodecalin) |
C10F18 |
Octadecafluorodecalin |
306-94-5 |
7,190 |
|
33. |
c-C3F6 (Perfluorocyclopropane) |
c-C3F6 |
Hexafluorocyclopropane |
931-91-9 |
9,200 |
15. Schedule 3 to the Regulation is amended by adding the following paragraph:
4.1 All records and documents associated with the capture, transport and storage of any carbon dioxide generated at the facility.
16. (1) Sub-subparagraph 9 vi C of Schedule 5 to the Regulation is amended by striking out “or an enhanced fossil fuel recovery operation” at the end.
(2) Paragraph 11.1 of Schedule 5 to the Regulation is amended by striking out “in respect of the first compliance period that applies to the covered facility or a subsequent compliance period” in the portion before subparagraph i and substituting “for a compliance period in respect of the covered facility”.
Commencement
17. (1) Except as otherwise provided in this section, this Regulation comes into force on the day it is filed.
(2) Sections 1, 2, 4 to 13, 15 and 16 come into force on January 1, 2023.