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O. Reg. 258/17: QUANTIFICATION, REPORTING AND VERIFICATION OF GREENHOUSE GAS EMISSIONS

filed July 4, 2017 under Climate Change Mitigation and Low-carbon Economy Act, 2016, S.O. 2016, c. 7

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ontario regulation 258/17

made under the

Climate Change Mitigation and Low-carbon Economy Act, 2016

Made: June 28, 2017
Filed: July 4, 2017
Published on e-Laws: July 4, 2017
Printed in The Ontario Gazette: July 22, 2017

Amending O. Reg. 143/16

(QUANTIFICATION, REPORTING AND VERIFICATION OF GREENHOUSE GAS EMISSIONS)

1. (1) The definition of “indirect useful thermal energy” in subsection 1 (1) of Ontario Regulation 143/16 is amended by striking out “used at another facility” at the end and substituting “transferred to another facility”.

(2) Subsection 1 (1) of the Regulation is amended by adding the following definition:

“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;

2. Section 4 of the Regulation is amended by adding the following subsection:

(2.1) If indirect useful thermal energy use is engaged in at the facility,

(a) the owner or operator of the facility is prescribed for the purposes of paragraph 4 of subsection 9 (3) of the Act;

(b) the amount of greenhouse gas emitted during the generation of the useful thermal energy at another facility is associated with the indirect useful thermal energy use;

(c) the owner or operator of the facility shall use the standard quantification method set out in the Guideline to calculate the amount mentioned in clause (b); and

(d) the calculation under clause (c) is deemed to be a quantification of the greenhouse gas emitted during the indirect useful thermal energy use at the facility.

3. (1)  The formula in subsection 5 (2) of the Regulation is amended by striking out “C = the portion of A that is emitted from the use of indirect useful thermal energy, quantified in accordance with section 4” and substituting the following:

C = the result of a calculation in respect of the facility under subsection 4 (2.1).

(2) Section 5 of the Regulation is amended by adding the following subsection:

(3) An amount of greenhouse gas emissions required to be calculated under subsection 11.1 (3) or 11.2 (3) by the person is deemed, for the purposes of subsection (2), to be an amount of greenhouse gas emitted during the specified GHG activities engaged in at the facility.

4. The formula in section 10 of the Regulation is amended by striking out “C = the portion of A that is emitted from the use of indirect useful thermal energy, quantified in accordance with section 4” and substituting the following:

C = the result of a calculation in respect of the facility under subsection 4 (2.1),

5. The Regulation is amended by adding the following sections before the heading “Electricity Importation, Natural Gas Distribution and Petroleum Product Supply”:

Facilities - Associated Process Gas and Natural Gas

Duty to calculate associated emissions, process gas

11.1 (1) This section applies to the owner or operator of a facility at which a specified GHG activity is engaged in if both of the following circumstances apply:

1. Iron and steel production is engaged in at the facility in respect of which quantification is required under section 4.

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

(2) A person to whom this section applies is prescribed for the purposes of paragraph 4 of subsection 9 (3) of the Act.

(3) The person shall use the standard quantification method set out in the Guideline to calculate the amount of the greenhouse gas emissions associated with the use of the transferred process gas at the other facility.

(4) Subsections 4 (4), (5), (6), (7) and (8) apply, with necessary modifications, in respect of the calculation mentioned in subsection (3).

Duty to calculate indirect emissions, natural gas transfer

11.2 (1) This section applies to the owner or operator of a facility at which a specified GHG activity is engaged in if all of the following circumstances apply:

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

2. Natural gas is distributed by a person mentioned in paragraph 2 of subsection 9 (3) of the Act to the facility.

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.

 

(2) A person to whom this section applies is prescribed for the purposes of paragraph 4 of subsection 9 (3) of the Act.

(3) The person shall use the standard quantification method set out in the Guideline to calculate the amount of the greenhouse gas emissions associated with the use of the natural gas at the other facility.

(4) Subsections 4 (4), (5), (6), (7) and (8) apply, with necessary modifications, in respect of the calculation mentioned in subsection (3).

6. Column 3 of Item 3 of the Table to section 12 of the Regulation is amended by striking out “to a person in Ontario” and substituting “to a person in Ontario for use in Ontario”.

7. (1) Paragraph 5 of subsection 23 (2) of the Regulation is revoked and the following substituted:

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

(2) Paragraph 7 of subsection 23 (2) of the Regulation is amended by striking out “and production data given under this Regulation” at the end.

8. (1) Paragraph 3 of subsection 26 (1) of the Regulation is amended by striking out “the production data” and substituting “any production parameter”.

(2) Subsection 26 (4) of the Regulation is revoked and the following substituted:

(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.

(3) Clause 26 (5) (b) of the Regulation is amended by striking out “production data” and substituting “production parameter”.

9. (1) The Table to subsection 32 (2) of the Regulation is amended by striking out “material discrepancy” wherever it appears and substituting in each case “material discrepancy in emissions”.

(2) Section 32 of the Regulation is amended by adding the following subsection:

(2.1) 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 GHG 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 GHG report contains no material discrepancy in the production parameter.

2. The production parameter in the GHG report was prepared in accordance with this Regulation.

2.

Qualified positive.

Both of the following circumstances apply:

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

2. The production parameter in the GHG report was prepared substantially in accordance with this Regulation.

3.

Adverse.

One or both of the following circumstances apply:

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

2. The production parameter in the GHG report was not prepared substantially in accordance with this Regulation.

 

(3) Subsection 32 (3) of the Regulation is amended by striking out “material discrepancy” in the portion before paragraph 1 and substituting “material discrepancy in emissions”.

(4) Subsection 32 (5) of the Regulation is amended by striking out “material discrepancy” and substituting “material discrepancy in emissions”.

(5) Subsection 32 (6) of the Regulation is revoked and the following substituted:

(6) 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.

10. Subsection 33 (1) of the Regulation is amended by adding the following paragraph:

11. The proposed production parameter verification conclusions.

11. (1) Paragraphs 3 and 4 of Schedule 3 to the Regulation are revoked and the following substituted:

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.

(2) Paragraphs 6 and 7 of Schedule 3 to the Regulation are revoked and the following substituted:

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.

(3) Paragraphs 13 and 14 of Schedule 3 to the Regulation are revoked and the following substituted:

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.

Commencement

12. This Regulation comes into force on the day it is filed.