O. Reg. 171/24: GREENHOUSE GAS EMISSIONS: QUANTIFICATION, REPORTING AND VERIFICATION, Filed April 16, 2024 under Environmental Protection Act, R.S.O. 1990, c. E.19

ontario regulation 171/24

made under the

Environmental Protection Act

Made: March 21, 2024
Filed: April 16, 2024
Published on e-Laws: April 16, 2024
Published in The Ontario Gazette: May 4, 2024

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:

“activity component” means a component of an industrial activity and may include inputs such as raw materials or energy inputs and outputs such as intermediate products, finished products or energy outputs; (“composante d’activité”)

“EPS parameter” means a measurable property in respect of an activity component such as mass, volume or area; (“paramètre NRE”)

“temporary shutdown period” means the period set out in a notice given under subsection 4.1 (1); (“période de fermeture temporaire”)

(2) The definition of “production parameter” in subsection 1 (1) of the Regulation is revoked.

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

“renewable natural gas” means gas that has been produced from biomass and that has been added into a natural gas pipeline system in Ontario; (“gaz naturel renouvelable”)

(4) The definition of “reporting amount” in subsection 1 (1) of the Regulation is revoked and the following substituted:

“reporting amount” means the amount of greenhouse gas emitted from a facility during a year minus the portion of that amount that is carbon dioxide emitted from the combustion of biomass;

2. The Regulation is amended by adding the following section:

Temporary shutdown

4.1 (1) No later than March 31 in a year, the Director may, on request, give a written notice to an owner or operator of a covered facility setting out the first and last day of a temporary shutdown period in respect of the facility if there was a period of at least 180 consecutive days in the previous year during which the amount of every EPS parameter in respect of the facility was zero.

(2) Despite subsection (1), no notice may be given to an owner or operator of a covered facility if,

(a)  more than two notices have been given under this section to the owner or operator in respect of the facility in the previous five-year period; or

(b)  more than one notice has been given under this section to the owner or operator in respect of the facility in the previous two-year period.

(3) A request mentioned in subsection (1) must be made in writing by an owner or operator of a covered facility no later than January 31 in the year and must include,

(a)  the first and last day of the period described in subsection (1);

(b)  confirmation that industrial activities engaged in at the facility are not permanently ceased; and

(c)  any other information requested by the Director.

3. Sections 5 to 7 of the Regulation are revoked and the following is substituted:

Duty to quantify, initial

5. (1) If an owner or operator of a facility at which a specified GHG activity is engaged in is not required to submit a report under section 7 in respect of a year, and if it could be reasonably expected that the reporting amount in respect of the facility for the year is 10,000 tonnes of CO2e or more, the owner or operator of the facility shall quantify the total amount of greenhouse gas, expressed as tonnes of CO2e, emitted at the facility during the year in accordance with,

(a)  for greenhouse gas emitted during a specified GHG activity, the standard quantification method set out in the Guideline in respect of the specified GHG activity; or

(b)  for greenhouse gas emitted during an activity other than a specified GHG activity, a method that is consistent with an applicable quantification method set out in the Guideline.

(2) Despite clause (1) (a), a method other than a standard quantification method may be used to quantify an amount of a greenhouse gas emitted during a specified GHG activity if the amount is less than the smaller of,

(a)  20,000 tonnes; and

(b)  3 per cent of the final quantification required under subsection (1).

(3) A facility that is a covered facility is required to quantify, in accordance with subsections (1) and (2), the total amount of greenhouse gas emitted at the covered facility during the first year in the registration period, even if it could be reasonably expected that the reporting amount in respect of the facility for the year is less than 10,000 tonnes of CO2e.

(4) If, under this section, a facility that is a covered facility is required to quantify the total amount of greenhouse gas emitted at the covered facility during a year, the owner or operator of the covered facility shall also quantify, for each activity component set out in the Guideline that is part of an industrial activity engaged in at the covered facility during the year, the amount of the EPS parameter set out opposite the activity component in the Guideline.

(5) For greater certainty, quantifications and calculations carried out in accordance with Ontario Regulation 143/16 before August 1, 2018 are deemed to have been carried out in accordance with this section.

Duty to report, initial

6. If, using the amounts quantified under subsection 5 (1) in respect of a year, the reporting amount for the year is 10,000 tonnes of CO2e or more or if subsection 5 (3) applies to the facility, the owner or operator of the facility shall, on or before June 1 of the following year, give to the Director a report containing all applicable information set out in Schedule 5 in respect of the year, including, if applicable, the verification amount determined under section 12 and the total annual emission limit determined under the EPS regulation.

Continuing duty to quantify and report

7. (1) An owner or operator of a facility who is required to give the Director a report under section 6 in respect of a year shall, in each subsequent year,

(a)  quantify the total amount of greenhouse gas, expressed as tonnes of CO2e, emitted at the facility during the year in accordance with the methods set out in subsections 5 (1) and (2);

(b)  if the facility is a covered facility, quantify the amount of each EPS parameter in accordance with subsection 5 (4); and

(c)  on or before June 1 of the following year, give to the Director a report described in section 6 for the year in respect of the facility.

(2) A person who was required under subsections 6 (2) to (4) of Ontario Regulation 143/16 to give the Director a report with respect to the activities engaged in at a facility for 2017 and for each subsequent year shall give the Director those reports in accordance with those provisions as if they had not been revoked.

(3) The requirements in subsections (1) and (2) cease to apply in a year in respect of a facility in the following circumstances:

1.  The owner or operator of the facility has complied with this Regulation for the three consecutive years preceding the year and, for each of those years, the reporting amount in respect of the facility has been less than 10,000 tonnes of CO2e.

2.  The specified GHG activities permanently cease to be engaged in at the facility and the owner or operator of the facility has, in the preceding year or at any time before that year,

i.  provided notice to the Director that the activities have ceased permanently,

ii.  given the Director a report under this section in respect of the final year in which the activities were engaged in at the facility, and

iii.  if a report mentioned in subparagraph ii was required to be verified under this Regulation,

A.  had the report verified by an accredited verification body in accordance with this Regulation, and

B.  submitted to the Director a verification statement prepared in accordance with section 18 and a verification report prepared in accordance with section 21.

(4) Despite paragraph 1 of subsection (3), the requirements set out in subsection (1) and (2) continue to apply to the owner or operator of a covered facility even if the reporting amount in respect of the covered facility has been less than 10,000 tonnes of CO2e for three consecutive years.

(5) If, before February 11, 2020, a person was required to give the Director separate reports with respect to more than one site and those sites constitute a single facility on and after that day, the person shall, for the purposes of this section, give the Director a single report in respect of the sites that constitute a single facility.

4. (1) The formula in subsection 12 (2) of the Regulation is revoked and the following substituted:

VA = A – B – C – D + E – F

(2) Term “A” in the formula set out in subsection 12 (2) of the Regulation is amended by,

(a)  striking out “in respect of all specified GHG activities engaged in at the covered facility”; and

(b)  striking out “section 5” and substituting “section 5 or 7, as applicable”.

(3) Clause (e) of term “C” in the formula set out in subsection 12 (2) of the Regulation is revoked and the following substituted:

(e)  the emissions quantified in accordance with clause 5 (1) (b),

(4) Clauses (a) and (b) of term “E” in the formula set out in the English version of subsection 12 (2) of the Regulation are amended by striking out “CO2” and substituting “carbon dioxide”.

(5) Subsection 12 (2) of the Regulation is amended by striking out “and” at the end of term “D”, by adding “and” at the end of term “E” and by adding the following term:

F=  the amount of carbon dioxide emitted from the combustion of renewable natural gas purchased by the owner or operator of the covered facility during the year.

(6) Subsection 12 (3) of the Regulation is revoked.

(7) Subsections 12 (9) and (10) of the Regulation are revoked and the following substituted:

(9) The determination under subsection (1) shall not include any amounts in respect of a temporary shutdown period.

5. The Regulation is amended by adding the following section:

Verification of report by body

13. If, in respect of a year, an owner or operator of a covered facility is required under section 6 or clause 7 (1) (c) to include in a report the amounts of EPS parameters, the verification amount determined under section 12 or the total annual emission limit determined under the EPS regulation, 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.

6. Section 15 of the Regulation is amended by striking out “activity” wherever it appears and substituting in each case “activity component”.

7. Subsection 17 (6) of the Regulation is revoked and the following substituted:

(6) For the purposes of subsection (4), references to a report include,

(a)  a report prepared under Ontario Regulation 143/16;

(b)  a report prepared under Ontario Regulation 452/09; and

(c)  a report prepared under the Output-Based Pricing System Regulations (SOR/2019-266) made under the Greenhouse Gas Pollution Pricing Act (Canada).

8. Subsections 20 (1) and (2) of the Regulation are revoked and the following substituted:

(1) The accredited verification body shall include in the verification statement and report an EPS parameter verification conclusion as described in Column 1 of the following Table for each EPS parameter for the activity components addressed by the report, if the determination set out opposite the type in Column 2 of the Table has been made in respect of the EPS parameter:

TABLE
TYPES OF EPS PARAMETER VERIFICATION CONCLUSIONS

Item

Column 1
Type of EPS parameter 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 report contains no material discrepancy in the EPS parameter.
2. The EPS parameter in the 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 report contains no material discrepancy in the EPS parameter.
2. The EPS parameter in the 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 report contains a material discrepancy in the EPS parameter.
2. The EPS parameter in the report was not prepared substantially in accordance with this Regulation.

 

(2) A material discrepancy in an EPS parameter exists if the per cent discrepancy for the EPS parameter reported in respect of an activity component is 5 per cent or more, based on the following formula:

PD = (QPDv − QPDi) / QPDi × 100

where,

PD=  per cent discrepancy for the EPS parameter,

QPDv=  quantity of the EPS parameter determined and verified by the accredited verification body, and

QPDi= quantity of the EPS parameter as set out in the report.

9. (1) Paragraphs 5 and 6 of subsection 21 (1) of the Regulation are revoked and the following substituted:

5.  A description of the data and information supporting the verification report including, data and information obtained during or in connection with any visits made to,

i.  the covered facility,

ii.  the site where carbon dioxide identified for the purposes of “D” in the formula in subsection 12 (2) is permanently stored in long-term geological storage, or

iii.  any other location, if the visit is related to determining the amount of carbon dioxide mentioned in subparagraph ii or iii.

6.  Details of the independent quantifications and checking of the data and information supporting the verification report, including any quantifications supporting the amounts of any carbon dioxide identified for the purposes of “D” in the formula in subsection 12 (2).

(2) Paragraph 5 of subsection 21 (1) of the Regulation, as remade by subsection (1), is amended by striking out “or” at the end of subparagraph ii and by adding the following paragraph:

ii.1  the natural gas pipeline system to which gas associated with the carbon dioxide identified for the purposes of “F” in the formula in subsection 12 (2) has been added, or

(3) Paragraph 6 of subsection 21 (1) of the Regulation, as remade by subsection (1), is amended by striking out “purposes of “D” in” and substituting “purposes of “D” or “F” in”.

10. Subsection 23 (1) of the Regulation is amended by adding the following paragraph:

2.1  Copies of any reports prepared under the Output-Based Pricing System Regulations (SOR/2019-266) made under the Greenhouse Gas Pollution Pricing Act (Canada).

11. Item 23 of Schedule 1 to the Regulation is amended by striking out “4,620” in Column 5 and substituting “858”.

12. Subparagraph 23.1 (1) 4 ii of the Regulation is amended by striking out “a production parameter” and substituting “an EPS parameter”.

13. Section 25 of the Regulation is amended by adding the following subsection:

(3) If the person who owns or operates a facility changes during a year,

(a)  any requirement set out in this Regulation that applied to the previous owner or operator in respect of the year applies to the new owner or operator in respect of the entire year; and

(b)  any requirement set out in this Regulation that applied to the previous owner or operator in respect of any preceding year continues to apply to the previous owner or operator until December 15 of the year.

14. Schedule 5 to the Regulation is revoked and the following substituted:

SCHEDULE 5
CONTENTS OF REPORT

1.  The name and address of the person required to give the report to the Director and the address of any facility in respect of which the report is prepared.

2.  The business number assigned to the person by the Canada Revenue Agency.

3.  The GHG ID number assigned by the Ministry to the person or facility, as the case may be.

4.  A description of which sites are included in the facility for the purposes of the report, if applicable.

5.  The period of time to which the report relates.

6.  The date on which the report is given to the Director.

7.  Such other information as may be specified in the Guideline relating to quantifications and calculations performed under this Regulation.

8.  If the report is with respect to specified GHG activities engaged in at a facility, the following information:

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

ii.  The primary NAICS code and any secondary and tertiary NAICS codes associated with each specified GHG activity engaged in at the facility during the year.

iii.  The amount of each greenhouse gas, expressed in tonnes, emitted during each specified GHG activity engaged in at the facility during the year.

iv.  The total amount of greenhouse gas emitted during each specified GHG activity engaged in at the facility during the year, expressed in tonnes of CO2e.

v.  The total amount of each greenhouse gas emitted from the facility during the year.

vi.  The total amount of greenhouse gas emitted from the facility during the year, expressed in tonnes of CO2e.

vii.  The portion of the amount in subparagraph vi that is carbon dioxide emitted from the combustion of biomass.

viii.  The reporting amount in respect of the year.

ix.  The total amount of the following in respect of the year:

A.  The carbon dioxide that would otherwise have been directly released into the atmosphere but was captured at the facility.

B.  The carbon dioxide that is transferred from the facility to an injection site.

C.  The carbon dioxide that was captured and injected into a long-term geological storage site.

x.  The amount of greenhouse gas emitted during the year from sources that fall into such categories as may be specified in the Guideline.

9.  If the report is with respect to electricity importation, the following information:

i.  The primary NAICS code and any secondary and tertiary NAICS codes associated with the activity.

ii.  The total amount of electricity imported during the year.

10.  If the report is with respect to a covered facility, the following information:

i.  The sites that are part of the covered facility.

ii.  A list of the industrial activities engaged in at the facility during the year.

iii.  A list of the activity components that are part of each industrial activity engaged in at the facility during the year and each EPS parameter associated with the activity components as set out in the Guideline.

iv.  The amount of each EPS parameter quantified in respect of the year.

v.  The verification amount in respect of the year.

vi.  If the report is in respect of a year that is a compliance period for the covered facility, the total annual emissions limit determined for the year under the EPS Regulation and all information and calculations supporting the determination including the value of each annual activity emissions limit used in the determination.

11.  A statement signed and dated by an individual who is authorized by the person mentioned in paragraph 1 to sign on behalf of the person, certifying that,

i.  the individual has examined the report to ensure that it is complete and accurate, and

ii.  the report has been prepared in accordance with this Regulation and the statements and information contained in the report are true and accurate to the best of the individual’s knowledge.

15. (1) The Regulation is amended by striking out “production parameter” wherever it appears and substituting in each case “EPS parameter” with the following exceptions:

1.  Subsections 20 (1) and (2).

2.  Subparagraph 23.1 (1) 4 ii.

(2) The Regulation is amended by striking out “production parameters” wherever it appears and substituting in each case “EPS parameters”.

(3) The English version of the Regulation is amended by striking out “quantity of” wherever it appears and substituting in each case “amount of”.

Commencement

16. (1) Except as otherwise provided in this section, this Regulation comes into force on the day it is filed.

(2) Subsections 1 (3), 4 (1) and (5) and 9 (2) and (3) come into force on the later of January 1, 2025 and the day this Regulation is filed.