O. Reg. 242/19: GREENHOUSE GAS EMISSIONS: QUANTIFICATION, REPORTING AND VERIFICATION
filed July 4, 2019 under Environmental Protection Act, R.S.O. 1990, c. E.19
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made under the
Environmental Protection Act
Made: June 27, 2019
Filed: July 4, 2019
Published on e-Laws: July 4, 2019
Printed in The Ontario Gazette: July 20, 2019
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:
“covered facility” has the same meaning as in Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act; (“installation assujettie”)
“industrial activity” has the same meaning as in Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act; (“activité industrielle”)
“total annual emissions limit” has the same meaning as in Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act; (“limite des émissions annuelles totales”)
(2) The French version of the definition of “Ontario Regulation 143/16” in subsection 1 (1) of the Regulation is amended by striking out “tel que ce règlement existait le” and substituting “dans la version de ce règlement au”.
(3) The French version of the definition of “Ontario Regulation 452/09” in subsection 1 (1) of the Regulation is amended by striking out “tel que ce règlement existait le” and substituting “dans la version de ce règlement au”.
(4) The definition of “verification amount” in subsection 1 (1) of the Regulation is revoked and the following substituted:
“verification amount” means,
(a) in the case of a report in respect of 2018 or a previous year, the verification amount determined under section 8 as it read immediately before the day section 4 of Ontario Regulation 242/19 made under the Act came into force, and
(b) in the case of a report in respect of 2019 or a later year, the verification amount determined under section 12; (“quantité de vérification”)
2. The heading before section 5 of the Regulation is revoked and the following substituted:
Quantification and Reporting
3. (1) Subsection 7 (4) of the Regulation is amended by striking out “Subject to subsection (5)” at the beginning and substituting “Subject to subsections (5) and (5.1)”.
(2) Section 7 of the Regulation is amended by adding the following subsection:
(5.1) Subsection (4) does not apply in respect of a person who is the owner or operator of a covered facility.
4. Sections 8, 9, 10 and 11 of the Regulation are revoked and the following substituted:
Electricity importation, duty to quantify
8. (1) A person who engages in electricity importation during 2019 or any subsequent year and who is a market participant within the meaning of subsection 2 (1) of the Electricity Act, 1998 shall quantify the total electricity, expressed in megawatt hours, imported by the person during the year.
(2) The person shall use the standard quantification method or methods set out in the Guideline to quantify the amount of electricity imported.
(3) The following rules apply where the standard quantification methods in respect of electricity importation include a choice of calculation methodologies:
1. The person shall select one of the calculation methodologies and use it for all subsequent quantifications, unless the Director consents in writing to the use of another methodology.
2. If the Director consents to the use of another methodology, the person shall use the methodology consented to for all subsequent quantifications, unless the Director consents in writing to the use of another methodology.
(4) If the amount of electricity imported is a number that is not a whole number when expressed in megawatt hours, the number shall be rounded up to the nearest megawatt hour.
Electricity importation, duty to report
9. (1) If the total electricity imported for a year is greater than zero megawatt hours, as quantified by a person under section 8, the person shall give the Director a report with respect to the electricity importation during the year, containing all applicable information set out in Schedule 5.
(2) A report with respect to electricity importation engaged in during a year shall be given to the Director on or before June 1 in the following year.
Electricity importation, continuing duty to report
10. (1) A person who is required to give the Director a report with respect to electricity importation for a year under section 9 shall give the Director a report with respect to the activity for each subsequent year.
(2) Subject to subsection (3), the requirement in subsection (1) to give reports for subsequent years ceases to apply in a year to a person in respect of electricity importation if the person has complied with the applicable requirements of this Regulation or Ontario Regulation 143/16, as the case may be, for the three consecutive years preceding the year and the total electricity imported by the person has been zero megawatt hours for each of those years.
(3) Subsection (2) ceases to apply to a person if, for any year following its application, the total electricity imported by the person has been more than zero megawatt hours.
(4) The requirement in subsection (1) to give reports for subsequent years ceases to apply to a person if the person,
(a) permanently ceases to engage in the activity and provides notice to the Director that the activity has ceased permanently; and
(b) gives the Director a report in respect of the final year in which the activity was engaged in.
(5) The report shall contain all applicable information set out in Schedule 5.
(6) A report with respect to electricity importation engaged in during a year shall be given to the Director on or before June 1 in the following year.
All activities, duties re 2018 reports, including verification
11. The following provisions, as they read immediately before the day section 4 of Ontario Regulation 242/19 made under the Act came into force, continue to apply in respect of reports respecting 2018, as if these provisions had not been revoked:
1. Sections 8, 9, 10 and 11.
2. Subsection 16 (4).
3. Paragraph 3 of subsection 17 (2).
4. Paragraph 2 of subsection 19 (2).
5. Subparagraph 10 ii of Schedule 5 to the Regulation.
Verification
Duty to verify, covered facilities
12. (1) The owner or operator of a covered facility shall determine the verification amount in respect of the facility for each year in which the facility is registered, in accordance with the following formula:
V = (A – B − C) − (D − E)
where,
V = the verification amount,
A = the amount of greenhouse gas emitted during all specified GHG activities engaged in at the facility, quantified in accordance with section 5,
B = the portion of A that is carbon dioxide emitted from the combustion of biomass,
C = the amount of greenhouse gas emitted during the generation of indirect useful thermal energy at another facility in respect of which a calculation is required under the Guideline,
D = the portion of A that is emitted,
(a) from coal storage,
(b) during the operation of equipment related to the transmission, storage and transportation of natural gas,
(c) as fugitive HFC emissions during the operation of cooling units at electricity generators, and
(d) as fugitive emissions during the operation of geothermal electricity generating facilities, and
E = the portion of D that is carbon dioxide emitted from the combustion of biomass.
(2) The owner or operator shall,
(a) 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.
(3) This section ceases to apply in respect of the owner or operator of a facility if the facility ceases to be a covered facility.
5. (1) Subsection 15 (1) of the Regulation is amended by striking out “gives a report to the Director” in the portion before paragraph 1 and substituting “gives a report with respect to specified GHG activities to the Director”.
(2) Paragraph 1 of subsection 15 (1) of the Regulation is amended by striking out “amount mentioned in subsection (2)” and substituting “verification amount”.
(3) Paragraph 2 of subsection 15 (1) of the Regulation is amended by striking out “amount mentioned in subsection (2)” and substituting “verification amount”.
(4) Subsection 15 (1) of the Regulation is amended by adding the following paragraph:
4. If the report is in respect of a covered facility and is given to the Director on or after the day 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, the per cent discrepancy in the total annual emissions limit reported in respect of the facility is 0.1 per cent or more, as determined in accordance with subsection (4.1) of this section.
(5) Subsection 15 (2) of the Regulation is revoked.
(6) Subsection 15 (3) of the Regulation is amended by striking out “an amount mentioned in subsection (2)” in the portion before the formula and substituting “a verification amount”.
(7) Section 15 of the Regulation is amended by adding the following subsection:
(4.1) For the purposes of paragraph 4 of subsection (1), the per cent discrepancy in the total annual emissions limit reported in respect of the 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 facility,
QAELv = actual total annual emissions limit for the facility, and
QAELi = total annual emissions limit for the facility as set out in the report.
(8) Clause 15 (5) (a) of the Regulation is amended by striking out “an amount mentioned in subsection (2)” and substituting “the verification amount”.
(9) Subsection 15 (5) of the Regulation is amended by striking out “or” at the end of clause (a), by adding “or” at the end of clause (b) and by adding the following clause:
(c) in the case of a report given to the Director on or after the day mentioned in paragraph 4 of subsection (1), the per cent discrepancy in the total annual emissions limit under subsection (4.1) is less than 0.1 per cent.
6. (1) Clause 16 (2) (d) of the Regulation is revoked and the following substituted:
(d) before a verification statement including a positive, qualified positive or adverse verification conclusion is prepared, the determination that forms the basis of the conclusion is reviewed by the peer reviewer.
(2) Clause 16 (3) (c) of the Regulation is revoked and the following substituted:
(c) the most recent verification of a report with respect to the facility resulted in an adverse verification statement or an adverse verification conclusion being submitted to the Director;
(3) Subsection 16 (4) of the Regulation is revoked.
(4) Subsection 16 (5) of the Regulation is amended by striking out “clauses (3) (b) and (4) (b)” and substituting “clause (3) (b)”.
(5) The French version of subsection 16 (5) of the Regulation is amended by striking out “tels que ces articles existaient immédiatement avant le” and substituting “dans la version de l’article antérieure au”.
(6) Subsection 16 (6) of the Regulation is amended by striking out “subsections (3) and (4)” and substituting “subsection (3)”.
(7) Subsection 16 (7) of the Regulation is amended by striking out “section 8” and substituting “section 12”.
7. (1) Paragraphs 2 and 3 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.
3. The accredited verification body has verified six consecutive reports prepared with respect to the facility, unless at least three years have passed since the last verification.
(2) Subsection 17 (3) of the Regulation is amended by striking out “subparagraph 2 i or 3 i” in the portion before paragraph 1 and substituting “paragraph 2”.
(3) Subsection 17 (4) of the Regulation is revoked and the following substituted:
(4) If an accredited verification body ceases to verify reports under this Regulation with respect to a facility after having verified such reports for two or more consecutive years, the accredited verification body shall not verify a report under this Regulation with respect to the facility until at least three years have passed.
(4) Subsection 17 (5) of the Regulation is amended by striking out “subparagraphs 2 ii and 3 ii” and substituting “paragraph 3”.
(5) The French version of subsection 17 (5) of the Regulation is amended by striking out “tels que ces articles existaient immédiatement avant le” and substituting “dans la version de l’article antérieure au”.
8. Subsection 18 (1) of the Regulation is amended by adding “and, in the case of a report given to the Director on or after the day mentioned in paragraph 4 of subsection 15 (1), whether the total annual emissions limit for the facility was determined in accordance with Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act” at the end.
9. (1) Subsection 19 (1) of the Regulation is amended by striking out the portion before the Table and substituting the following:
Verification amount conclusion
(1) The accredited verification body shall include in the verification statement and report a verification amount conclusion described in Column 1 of the following Table if the determination set out opposite the conclusion in Column 2 of the Table has been made:
. . . . .
(2) The heading to the Table to subsection 19 (1) of the Regulation is amended by striking out “Types of Verification Statements” and substituting “Types of Verification Amount Conclusions”.
(3) The heading to Column 1 of the Table to subsection 19 (1) of the Regulation is amended by striking out “verification statement” and substituting “verification amount conclusion”.
(4) The French version of the heading to Column 2 of the Table to subsection 19 (1) of the Regulation is amended by striking out “Conclusion de l’organisme de vérification accrédité” and substituting “Détermination de l’organisme de vérification accrédité”.
(5) 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), is 5 per cent or more.
(6) Subsection 19 (3) of the Regulation is amended by striking out “an amount mentioned in subsection (2)” in the portion before the formula and substituting “a verification amount”.
(7) Subsection 19 (4) of the Regulation is amended by striking out “in one of the amounts mentioned in subsection (2)” at the end and substituting “in the verification amount”.
10. (1) The French version of subsection 20 (1) of the Regulation is amended by striking out “pourvu qu’une conclusion indiquée” and substituting “pourvu qu’une détermination indiquée” in the portion before the Table.
(2) The heading of Column 1 of the Table to subsection 20 (1) of the Regulation is amended by striking out “Type of verification conclusion” and substituting “Type of production parameter verification conclusion”.
(3) The French version of the heading to Column 2 of the Table to subsection 20 (1) of the Regulation is amended by striking out “Conclusion de l’organisme de vérification accrédité” and substituting “Détermination de l’organisme de vérification accrédité”.
11. The Regulation is amended by adding the following section:
Total annual emissions limit verification conclusion
20.1 (1) This section applies in respect of the verification of a report given to the Director on or after the day mentioned in paragraph 4 of subsection 15 (1).
(2) The accredited verification body shall include in the verification statement and report a total annual emissions limit verification conclusion for the 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 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 facility is 0.1 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 facility,
QAELv = actual total annual emissions limit for the facility, and
QAELi = total annual emissions limit for the facility as set out in the report.
12. (1) Paragraphs 2 and 3 of subsection 21 (1) of the Regulation are revoked and the following substituted:
2. The verified verification amount, proposed verification amount conclusion, verified production parameter and proposed production parameter verification conclusion.
3. The verified total annual emissions limit and the proposed total annual emissions limit verification conclusion, if the report is given to the Director on or after the day mentioned in paragraph 4 of subsection 15 (1).
(2) Paragraph 12 of subsection 21 (1) of the Regulation is revoked.
13. Paragraphs 1 and 2 of subsection 23 (1) of the Regulation are revoked and the following substituted:
1. Information, including calculations and quantifications carried out in accordance with the Guideline, demonstrating that the person was not required to give reports to the Director and prepared based on information that is in the custody or control of the person and to which the person has or may reasonably obtain access.
2. Copies of any submissions that the person was required to make under section 46 of the Canadian Environmental Protection Act, 1999 (Canada).
3. Copies of any submissions made under the Greenhouse Gas Emissions Information Production Order (SOR/2018-214), made under the Greenhouse Gas Pollution Pricing Act (Canada), pursuant to subsections 197 (2) and (3) of that Act.
4. Any historical information used by the person to fill in missing data, or required by the Director to assess the filling in of missing data for emissions and production parameters.
5. Any records used by the person to determine production parameters, the total annual emission limit and compliance obligations under Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act.
6. Any information other than information set out in paragraphs 4 and 5 that, in the opinion of the Director, is necessary for the purposes of the Director assessing the accuracy of the person’s report under this Regulation, including information in respect of production, energy use, material use or process parameters.
7. Copies of any records the person is required to retain under this Regulation.
14. Section 25 of the Regulation is amended by adding the following subsection:
(2) Subsection (1) does not apply if the new owner or operator has provided notice of the change to the Director under Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) made under the Act.
15. Schedule 2 to the Regulation is amended by adding the following item:
|
17.1 |
Mobile equipment operation. |
The operation of machinery, including vehicles without public road licences, for the purpose of transporting or moving substances, materials, equipment or products that are used at a facility. |
16. Schedule 3 to the Regulation is amended by adding the following paragraphs:
17. If the facility is 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 facility is 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.
17. (1) Schedule 5 to the Regulation is amended by adding the following paragraphs:
6.1 If the report is given to the Director on or after the day mentioned in paragraph 4 of subsection 15 (1) and the facility is a covered facility, the total annual emissions limit for the facility.
. . . . .
8.1 If the report is given to the Director on or after the day mentioned in paragraph 4 of subsection 15 (1) and the facility is a covered facility, the calculation of the total annual emissions limit and of each annual activity emissions limit that was used as an input.
(2) Paragraph 9 of Schedule 5 to the Regulation is amended by adding the following subparagraph:
i.1 If the facility is a covered facility, a list of the industrial activities engaged in at the facility.
(3) Subparagraph 10 ii of Schedule 5 to the Regulation is revoked and the following substituted:
ii. The total amount of electricity imported.
Commencement
18. This Regulation comes into force on the day it is filed.