Order Amending the Greenhouse Gas Emissions Information Production Order: SOR/2018-277

Canada Gazette, Part II, EXTRA Volume 152, Number 2

Registration
SOR/2018-277 December 11, 2018

GREENHOUSE GAS POLLUTION PRICING ACT

The Minister of the Environment, pursuant to subsections 197(2) and (3) of the Greenhouse Gas Pollution Pricing Act ^{footnote a}, makes the annexed Order Amending the Greenhouse Gas Emissions Information Production Order.

Gatineau, December 10, 2018

Catherine McKenna
Minister of the Environment

Order Amending the Greenhouse Gas Emissions Information Production Order

Amendments

1 Subsection 1(1) of the Greenhouse Gas Emissions Information Production Order ^{footnote 1} is amended by adding the following in alphabetical order:

thermal energy means useful thermal energy in the form of steam or hot water that is intended to be used for an industrial purpose. (énergie thermique)

2 Paragraph 7(1)(a) of the Order is replaced by the following:

(a) quantify the GHGs emitted by each unit within the regulated facility and any other GHGs emitted by the regulated facility, in a calendar year, for the specified emission types in accordance with the requirements set out in Part 8; and

3 (1) Subsection 9(1) of the Order is replaced by the following:

Regulated facilities referred to in Parts 2 to 7 or 9 to 20

9 (1) Subject to subsections (2) and (3), the person responsible for a regulated facility referred to in any of Parts 2 to 7 or 9 to 20 must quantify the facility’s production, for the calendar year, in accordance with the requirements set out in the Part that is applicable to the facility based on the industrial activity of the regulated facility, with a margin of error of ±5%.

(2) Subsection 9(2) of the English version of the Order is replaced by the following:

Additional generation of electricity

(2) If a regulated facility generates electricity in addition to engaging in any other industrial activity, the person responsible for the regulated facility must quantify the amount of fossil fuel-fired electricity generated in accordance with the requirements set out in section 103, with a margin of error of ±5%.

(3) Section 9 of the Order is amended by adding the following after subsection (2):

Additional production of thermal energy

(3) If a regulated facility produces thermal energy and sells it to regulated facilities, in addition to engaging in other industrial activities, the person responsible for the regulated facility must

(a) quantify the thermal energy sold to regulated facilities during the calendar year using the quantity of thermal energy on sales invoices or another objective method, expressed in gigajoules; and
(b) determine the ratio of heat from the combustion of fossil fuels to produce the thermal energy in accordance with subsection (4).

Ratio of heat

(4) The ratio of heat from the combustion of fossil fuels is

(a) equal to 1 when the thermal energy is produced from the combustion of only fossil fuels; and
(b) determined by the following formula when the thermal energy is produced from the combustion of both fossil fuels and biomass

HF/(HF + B)

where

HF is determined by the formula

Formula-Detailed information can be found in the surrounding text.

where

QF_i	is the quantity of fossil fuel of type “i” combusted in the facility for the generation of thermal energy during the calendar year, as determined under subsection 56(3) or 103(3),
HHV_i	is the higher heating value of the fossil fuel of type “i” combusted in the facility for the generation of thermal energy in accordance with GHGRP 2.C.1 and 2.C.3 or subsection 24(1) of the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, and
i	is the i^th fossil fuel type combusted in the facility during the calendar year, where “i” goes from 1 to n and where n is the number of types of fossil fuel combusted, and

B is determined by the formula

Formula-Detailed information can be found in the surrounding text.

where

QBB_k	is the quantity of biomass fuel type “k” combusted in the facility for the generation of thermal energy during the calendar year, determined in accordance with either subsection 56(3) or subsection 103(3) and WCI method WCI.214,
HHV_k	is the higher heating value for biomass fuel type “k” combusted in the facility for the generation of thermal energy in accordance with either sections 2.C.1 and 2.C.3 of the GHGRP and WCI Method WCI.214 or subsection 24(1) of the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations, and
k	is the k^th biomass fuel type combusted in the facility during the calendar year, where “k” goes from 1 to m and where m is the number of types of biomass fuels combusted.

Default ratio of heat

(5) Despite paragraph (3)(b), if, for any reason beyond the control of the person responsible for a regulated facility, the data required to quantify the ratio of heat from the combustion of fossil fuel are missing for a given period during the 2019 calendar year, 1 can be used as the ratio of heat from the combustion of fossil fuel.

4 Section 10 of the Order is replaced by the following:

Regulated facility referred to in Part 8 — electricity

10 (1) The person responsible for a regulated facility referred to in Part 8 must quantify the production of electricity from fossil fuels for each unit within the regulated facility, for the calendar year, in accordance with the requirements set out in that Part, with a margin of error of ±5%.

Regulated facility referred to in Part 8 — thermal energy

(2) If a regulated facility referred to in Part 8 also produces thermal energy and sells that thermal energy to regulated facilities, the person responsible for the regulated facility must

(a) quantify the thermal energy sold to regulated facilities during the calendar year using the quantity of thermal energy on sales invoices or another objective method, expressed in gigajoules; and
(b) determine the ratio of heat from the combustion of fossil fuels to produce the thermal energy in accordance with subsection 9(4) or (5).

5 Section 11 of the Order is amended by striking out “and” at the end of paragraph (h) and by replacing paragraph (i) with the following:

(i) if the person responsible for a regulated facility produces and sells thermal energy to other regulated facilities or buys thermal energy from other regulated facilities,
- (i) the sales invoices or receipts for the thermal energy bought or sold, and
- (ii) the name of any regulated facility from which thermal energy is bought or to which it is sold and the covered facility certificate number that was issued to the regulated facility; and
(j) if the person responsible for a regulated facility produces and sells thermal energy to regulated facilities or buys thermal energy from regulated facilities, all methods and data used to quantify the quantity of thermal energy bought or sold, as the case may be, and the data in relation to the ratio of heat from the combustion of fossil fuel.

6 Paragraph 12(c) of the Order is replaced by the following:

(c) the amount of each type of product produced by the regulated facility in the calendar year quantified in accordance with subsections 9(1) and (2).

7 The description of E_j in paragraph 13(b) of the Order is replaced by the following:

E_j is the total emissions of each GHG type “j” for a calendar year from the unit in accordance with section 7,

8 Section 14 of the Order is replaced by the following:

Excluded emissions

14 CO₂ emissions from biomass are not included in the total quantity of emissions in a calendar year that are determined in accordance with paragraph 12(b) or 13(b).

9 Section 16 of the Order is replaced by the following:

Rounding

16 For the purpose of sections 12 and 13, any result that arises from a calculation required by paragraph 12(b) or 13(b) is to be rounded to the nearest whole number and, if the number is equidistant between two whole consecutive numbers, to the higher number.

10 The Order is amended by adding the following after section 17:

Thermal energy bought

17.1 The person responsible for a regulated facility that buys thermal energy from other regulated facilities in a calendar year must quantify the thermal energy bought during the calendar year, expressed in gigajoules, using the quantity of thermal energy on sales receipts or another objective method and calculate the ratio of heat from the combustion of fossil fuel to produce that thermal energy in accordance with subsections 9(4) or (5).

11 Subparagraph 19(1)(a)(i) of the Order is replaced by the following:

(i) it is accredited as a verification body to the ISO Standard 14065:2013 by the Standards Council of Canada, the American National Standards Institute or any other accreditation organization that is a member of the International Accreditation Forum, and

12 Subsection 20(2) of the Order is replaced by the following:

Material discrepancy

(2) For the purpose of the verification of a regulated facility’s annual report, a material discrepancy exists when,

(a) with respect to GHG emissions from regulated facilities that have an annual quantity of emissions of GHG of less than 500 kt of CO₂e,

(i) in the case of each error or omission respecting GHG emissions, that is identified during the verification and that may be quantified, the result, determined in accordance with the following formula, is equal to or greater than 5%:

A/B × 100

where

A	is the overstatement or understatement resulting from the error or omission, as an absolute value, expressed in tonnes of CO₂e, and
B	is the total quantity of GHG emissions, expressed in tonnes of CO₂e, and

(ii) in the case of the aggregate of all errors and omissions respecting GHG emissions, that are identified during the verification and that may be quantified, the result, determined in accordance with the following formula, is equal to or greater than 5%:

A/B × 100

where

A	is the absolute value of the net result of all overstatements and understatements resulting from all errors and omissions, expressed in tonnes of CO₂e, and
B	is the total quantity of GHG emissions, expressed in tonnes of CO₂e;

(b) with respect to GHG emissions from regulated facilities that have an annual quantity of emissions of GHG that is equal to or greater than 500 kt of CO₂e,

(i) in the case each single error or omission respecting GHG emissions, that is identified during the verification and that may be quantified, the result, determined in accordance with the following formula, is equal to or greater than 2%:

A/B × 100

where

A	is the overstatement or understatement resulting from an error or omission, as an absolute value, expressed in tonnes of CO₂e, and
B	is the total quantity of GHG emissions, expressed in tonnes of CO₂e, and

A/B × 100

where

A	is the absolute value of the net result of all overstatements and understatements resulting from all errors and omissions, expressed in tonnes of CO₂e, and
B	is the total quantity of GHG emissions, expressed in tonnes of CO₂e; and

(c) with respect to each product that must be quantified under this Order, in the case an error or omission that is identified during the verification and that may be quantified respecting the quantification of the product, the result, determined in accordance with the following formula is equal to or greater than 0.1%:

A/B × 100

where

A	is the overstatement or understatement resulting from an error or omission, as an absolute value, expressed in the applicable unit of measure, and
B	is the amount of the product produced, expressed in the applicable unit of measure.

13 Section 36 of the Order is replaced by the following:

Production

36 Production by the regulated facility must be quantified in

(a) tonnes of grey cement, as well as the tonnes of clinker, gypsum and limestone that the grey cement contains, separately;
(b) tonnes of white cement, as well as the tonnes of clinker, gypsum and limestone that the white cement contains, separately; and
(c) tonnes of clinker that is not mixed with gypsum and limestone to produce the grey or white cement referred to in paragraphs (a) or (b).

14 The Order is amended by adding the following after section 41:

PART 5.1

Activated Carbon Facility

General

Covered industrial activities

41.1 This Part applies to regulated facilities that produce activated carbon from coal.

Quantification of Emissions and Production

Emissions from certain specified emission types

41.2 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

(2) Replacement data for the GHGs set out in column 2 of the table to this subsection must be calculated for the specified emission type set out in column 1 using the method for estimating missing analytical data set out in column 3.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

41.3 (1) All GHGs, other than those set out in column 2 of the table to subsection 41.2(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

41.4 Production by the regulated facility must be quantified in kilograms of activated carbon.

PART 5.2

Char Facility

General

Covered industrial activities

41.5 This Part applies to regulated facilities engaged in the calcining of coal to produce char.

Quantification of Emissions and Production

Emissions from certain specified emission types

41.6 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

41.7 (1) All GHGs, other than those set out in column 2 of the table to subsection 41.6(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

41.8 Production by the regulated facility must be quantified in tonnes of char.

15 Subsection 42(2) of the Order is replaced by the following:

Non-application

(2) This Part does not apply to a regulated facility that produces metal ingots or uses moulds to produce metal products of a specific shape or design the intended use of which when in that form is dependent in whole or in part on its shape or design or to a regulated facility that produces iron or steel from smelted iron ore or that produces metallurgical coke.

Metal tubes

(3) For greater certainty, a scrap based steelmaking facility that produces metal tubes must quantify the GHGs emitted for the production of the metal tubes in accordance with the requirements set out in this Part.

16 The Order is amended by adding the following after section 45:

PART 6.1

Integrated Steel Facility

General

Covered industrial activities

45.1 (1) This Part applies to regulated facilities that produce iron or steel from smelted iron ore, or that produce metallurgical coke.

Metal tubes

(2) For greater certainty, an integrated steel facility that produces metal tubes must quantify the GHGs emitted for the production of the metal tubes in accordance with the requirements set out in this part.

Quantification of Emissions and Production

Emissions from certain specified emission types

45.2 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Calculating GHG Emissions	Column 4 Sampling, Analysis and Measurement Requirements
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.A and 2.B, except, for diesel, instead of the emission factors in table 2-6 of 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O	GHGRP 2.C
2	Industrial process emissions from
	(a) basic oxygen furnace	CO₂	GHGRP 6.A.2	GHGRP 6.C.1
	(b) coke oven battery	CO₂	GHGRP 6.A.3	GHGRP 6.C.1
	(c) direct reduction furnace	CO₂	GHGRP 6.A.7	GHGRP 6.C.1
	(d) electric arc furnace	CO₂	GHGRP 6.A.5	GHGRP 6.C.1
	(e) blast furnace	CO₂	GHGRP 6.A.8	GHGRP 6.C.1
	(f) ladle furnace	CO₂	GHGRP 6.A.9	GHGRP 6.C.1
	(g) argon-oxygen decarburization vessel or vacuum degassing	CO₂	GHGRP 6.A.6	GHGRP 6.C.1
3	Wastewater emissions	CH₄ and N₂O	WCI Method WCI.203(g)	WCI Method WCI.204(g)
4	Industrial product use emissions	SF₆ and PFCs	WCI Method WCI.233	WCI Method WCI.234
5	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B	GHGRP 2.C

Replacement data

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Estimating Missing Analytical Data
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.D
2	Industrial process emissions from
	(a) basic oxygen furnace	CO₂	GHGRP 6.D
	(b) coke oven battery	CO₂	GHGRP 6.D
	(c) direct reduction furnace	CO₂	GHGRP 6.D
	(d) electric arc furnace	CO₂	GHGRP 6.D
	(e) blast furnace	CO₂	GHGRP 6.D
	(f) ladle furnace	CO₂	GHGRP 6.D
	(g) argon-oxygen decarburization vessel or vacuum degassing	CO₂	GHGRP 6.D
3	Wastewater emissions	CH₄ and N₂O	WCI Method WCI. 205
4	Industrial product use emissions	SF₆ and PFCs	WCI Method WCI. 235
5	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.D

Other emissions

45.3 (1) All GHGs, other than those set out in column 2 of the table to subsection 45.2(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

45.4 Production by the regulated facility must be quantified separately, in tonnes of

(a) iron,
(b) steel produced in a basic oxygen furnace,
(c) steel produced in an electric arc furnace, and
(d) metallurgical coke.

PART 6.2

Metal Tube Manufacturing Facility

General

Covered industrial activities

45.5 (1) Subject to subsection (2), this Part applies to regulated facilities that produce metal tubes.

Non-application

(2) This Part does not apply to a regulated facility that is referred to in Part 6 or 6.1 and that produces tubes from metal.

Quantification of Emissions and Production

Emissions from certain specified emission types

45.6 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of the emission factors in table 2-6 of 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

45.7 (1) All GHGs, other than those set out in column 2 of the table to subsection 45.6(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

45.8 Production by the regulated facility must be quantified in tonnes of metal tubes.

17 Section 46 of the Order is replaced by the following:

Covered industrial activities

46 (1) This Part applies to regulated facilities that produce grain ethanol for use in industrial applications or as fuel.

Non-application

(2) This Part does not apply to regulated facilities that are referred to in Part 19.13.

18 Section 49 of the Order is replaced by the following:

Production

49 Production by the regulated facility must be quantified in kilolitres of absolute ethanol for industrial ethanol and fuel ethanol, separately.

19 The portion of item 2 of the table to subsection 54(1) of the French version of the Order in column 1 is replaced by the following:

Article	Colonne 1 Type d’émissions visé
2	Émissions liées aux procédés industriels provenant des épurateurs de gaz acide et des réactifs de gaz acide

20 (1) The portion of item 2 of the table to subsection 59(1) of the Order in column 2 is replaced by the following:

Item	Column 2 GHGs
2	CH₄ and N₂O

(2) The portion of item 2 of the table to subsection 59(2) of the Order in column 2 is replaced by the following:

Item	Column 2 GHGs
2	CH₄ and N₂O

21 The definition dolomitic lime in section 70 of the Order is replaced by the following:

dolomitic lime means lime derived from limestone that contains equal to or more than 5% magnesium carbonate. (chaux dolomitique)

22 Section 71 of the Order is replaced by the following:

Covered industrial activities

71 This Part applies to regulated facilities that produce dolomitic lime or high-calcium lime using a kiln or that produce speciality lime by passing dolomitic lime through a kiln more than once or by adding materials to dolomitic lime to change its properties.

23 Section 74 of the Order is replaced by the following:

Production

74 Production by the regulated facility must be quantified in tonnes of high-calcium lime produced, dolomitic lime, other than speciality lime, produced, speciality lime produced and lime kiln dust sold, separately.

24 Section 79 of the Order is renumbered as subsection 79(1) and is amended by adding the following:

Hydrogen gas

(2) For greater certainty, a nitrogen-based fertilizer facility that produces hydrogen gas must quantify the GHGs emitted for the production of that hydrogen gas in accordance with the requirements set out in this Part.

25 Section 82 of the Order is replaced by the following:

Production

82 Production by the regulated facility must be quantified in tonnes of nitric acid, ammonia, urea liquor and ammonium phosphate and its isomers, separately and tonnes of hydrogen gas produced and tonnes of hydrogen gas sold, separately.

26 Section 83 of the Order is replaced by the following:

Covered industrial activities

83 This Part applies to regulated facilities that process natural gas and produce transmission pipeline quality natural gas.

27 Section 91 of the Order is renumbered as subsection 91(1) and is amended by adding the following:

Hydrogen gas

(2) For greater certainty, a petroleum refinery that produces hydrogen gas must quantify the GHGs emitted for the production of that hydrogen gas in accordance with the requirements set out in this Part.

28 The portion of item 5 of the table to subsection 92(1) of the Order in column 4 is replaced by the following:

Item	Column 4 Sampling, Analysis and Measurement Requirements
5	WCI Method WCI.203(i)

29 Section 94 of the Order is replaced by the following:

Production

94 (1) Production by the regulated facility must be quantified

(a) in kilolitres of lubricant basestock; and
(b) for all other petroleum products, in direct-only complexity weighted barrels (direct-only CWB), in accordance with the method outlined in the directive entitled CAN-CWB Methodology for Regulatory Support: Public Report, published by Solomon Associates in January 2014.

Modification

(2) However, in the method referred to in paragraph (1)(b),

(a) the value of “Sales and Exports of Steam and Electricity” must be set to zero;
(b) the value of “EC Reported CO₂e Site Emissions” excludes
- (i) the emissions associated with electricity generated at the regulated facility, and
- (ii) the emissions associated with steam generated but not used by the regulated facility;
(c) the value of “Deemed Indirect CO₂e Emissions from imported electricity”
- (i) includes emissions associated with electricity that is generated and used at the regulated facility, and
- (ii) is calculated using 0.420 tonnes of CO₂e per MWh bought; and
(d) the value of “Deemed Indirect CO₂e Emissions from imported steam” is calculated using 0.062 tonnes of CO₂e per gigajoules bought.

30 (1) Subsection 103(1) of the Order is replaced by the following:

Electricity production

103 (1) Subject to subsection (1.1), if a regulated facility uses only one fossil fuel to generate electricity, production of electricity must be quantified in gigawatt hours of gross electricity generated through the use of fossil fuels

(a) measured with meters that comply with the requirements of the Electricity and Gas Inspection Act and the Electricity Gas Inspection Regulations; and
(b) using data recorded in an operations log, if the facility produces electricity using equipment or stationary items that do not have a meter that complies with those requirements and the quantity of electricity generated by that equipment does not exceed 5% of the total electricity generated by the facility during the calendar year.

Non-compliant meters

(1.1) For the 2019 calendar year, if the facility produces electricity using equipment or stationary items that do not have a meter that complies with the requirements specified in paragraph 1(a), production of gross electricity must be quantified using data recorded in an operations log and expressed in gigawatt hours.

(2) The description of G_U in subsection 103(2) of the Order is replaced by the following:

G_U

is the gross quantity of electricity generated by the regulated facility in the calendar year

(a) as measured using meters that comply with the requirements of the Electricity and Gas Inspection Act and the Electricity and Gas Inspection Regulations, expressed in gigawatt hours, or
(b) for the 2019 calendar year, if the facility produces electricity using equipment or stationary items that do not have a meter that complies with the requirements specified in paragraph (a), as determined using data recorded in an operations log, expressed in gigawatt hours;

(3) The description of QB_i in the description of H_B in subsection 103(2) of the French version of the Order is replaced by the following:

QB_i

représente la quantité du combustible de biomasse de type « i » brûlée dans l’installation pour la production de l’électricité pendant l’année civile, déterminée de la façon prévue au paragraphe (3) et en conformité avec la section 2.C.2 de la Méthode de ECCC et la disposition WCI.214 de la Méthode de la WCI,

31 The Order is amended by adding the following after section 103:

PART 19.01

Automotive Facility

General

Covered industrial activities

103.01 This Part applies to regulated facilities engaged in the main assembly of four-wheeled self-propelled vehicles that are designed for use on a highway and that have a gross vehicle weight rating of less than 4 536 kg (10,000 lb).

Quantification of Emissions and Production

Emissions from certain specified emission types

103.02 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

Industrial product use emissions

HFCs

WCI Method WCI.43(d)

WCI Method WCI.44

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Industrial product use emissions

HFCs

WCI Method WCI. 45

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.03 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.02(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.04 Production by the regulated facility must be quantified by the number of four-wheeled self-propelled vehicles.

PART 19.02

Brick Facility

General

Covered industrial activities

103.05 This Part applies to regulated facilities that produce brick or other products from clay or shale using a kiln.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.06 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

Industrial process emissions

CO₂

WCI Method WCI.183

WCI Method WCI.184

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Industrial process emissions

CO₂

WCI Method WCI.185

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.07 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.06(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.08 Production by the regulated facility must be quantified in tonnes of brick or other products made from clay or shale using a kiln.

PART 19.03

Carbon Black Facility

General

Covered industrial activities

103.09 This Part applies to regulated facilities that produce carbon black in any form, including pellets and powders, using thermal oxidation or thermal decomposition of hydrocarbon feedstock.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.1 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Calculating GHG Emissions	Column 4 Sampling, Analysis and Measurement Requirements
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O	GHGRP 2.C
2	Industrial process emissions	CO₂	WCI Method WCI.303(b)	WCI Method WCI.304(b)
3	Venting emissions	CO₂, CH₄ and N₂O	WCI Method WCI.303(a)(3)	WCI Method WCI.304(a)
4	Leakage emissions	CH₄	WCI Method WCI.303(a)(4)	WCI Method WCI.304(a)
5	Industrial product use emissions	SF₆ and PFCs	WCI Method WCI.233	WCI Method WCI.234
6	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B	GHGRP 2.C

Replacement data

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Estimating Missing Analytical Data
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.D
2	Industrial process emissions	CO₂	WCI Method WCI.305
3	Venting emissions	CO₂, CH₄ and N₂O	WCI Method WCI.305
4	Leakage emissions	CH₄	WCI Method WCI.305
5	Industrial product use emissions	SF₆ and PFCs	WCI Method WCI.235
6	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.D

Other emissions

103.11 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.1(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.12 Production by the regulated facility must be quantified in tonnes of furnace black.

PART 19.04

Citric Acid Facility

General

Covered industrial activities

103.13 This Part applies to regulated facilities that produce citric acid.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.14 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Calculating GHG Emissions	Column 4 Sampling, Analysis and Measurement Requirements
1	Stationary fuel combustion emissions	CO₂, CH₄and N₂O	GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O	GHGRP 2.C
2	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B	GHGRP 2.C

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.15 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.14(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.16 Production by the regulated facility must be quantified in tonnes of citric acid.

PART 19.05

Glass Manufacturing Facility

General

Covered industrial activities

103.17 This Part applies to regulated facilities that produce glass using a furnace.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.18 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

Industrial process emissions

CO₂

WCI Method WCI.143

WCI Method WCI.144

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Industrial process emissions

CO₂

WCI Method WCI.145

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.19 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.18(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.2 Production by the regulated facility must be quantified in tonnes of glass.

PART 19.06

Mineral Wool Insulation Manufacturing Facility

General

Covered industrial activities

103.21 (1) Subject to subsection (2), this Part applies to regulated facilities that produce mineral wool insulation.

Non-application

(2) This Part does not apply to the production of glass wool insulation.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.22 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel
combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

Industrial process emissions

CO₂

WCI Method WCI.183

WCI Method WCI.184

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Industrial process emissions

CO₂

WCI Method WCI.185

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.23 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.22(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.24 Production by the regulated facility must be quantified in tonnes of mineral wool insulation.

PART 19.07

2–methylpentamethylenediamine (MPMD) Facility

General

Covered industrial activities

103.25 This Part applies to regulated facilities that produce 2–methylpentamethylenediamine (MPMD) and hydrogen gas.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.26 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Calculating GHG Emissions	Column 4 Sampling, Analysis and Measurement Requirements
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O	GHGRP 2.C
2	Industrial process emissions	CO₂	WCI Method WCI.133	WCI Method WCI.134
3	Industrial product use emissions	SF₆ and PFCs	WCI Method WCI.233	WCI Method WCI.234
4	Flaring emissions	CO₂, CH₄ and N₂O	WCI Method WCI.203(e)	WCI Method WCI.204(e)
5	Leakage emissions	CH₄	WCI Method WCI.203(i)	WCI Method WCI.203(i)
6	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B	GHGRP 2.C

Replacement data

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Estimating Missing Analytical Data
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.D
2	Industrial process emissions	CO₂	WCI Method WCI.135
3	Industrial product use emissions	SF₆ and PFCs	WCI Method WCI.235
4	Flaring emissions	CO₂, CH₄ and N₂O	WCI Method WCI.205
5	Leakage emissions	CH₄	WCI Method WCI.205
6	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.D

Other emissions

103.27 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.26(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.28 Production by the regulated facility must be quantified in tonnes of MPMD produced, tonnes of hydrogen gas produced and tonnes of hydrogen gas sold, separately.

PART 19.08

Nylon Facility

General

Covered industrial activities

103.29 This Part applies to regulated facilities that produce resins or fibres of Nylon 6 or Nylon 6,6.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.3 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.31 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.3(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.32 Production by the regulated facility must be quantified in tonnes of resins and tonnes of fibres of Nylon 6 or Nylon 6,6, separately.

PART 19.09

Petrochemicals Facility

General

Covered industrial activities

103.33 (1) This Part applies to regulated facilities that produce the following petrochemicals from petroleum and liquefied natural gas or from feedstocks derived from petroleum:

(a) hydrogen gas, ethylene, propylene, butadiene and pyrolysis gas that are produced from steam cracking;
(b) aromatic cyclic hydrocarbons, including benzene from catalytic reforming;
(c) higher olefins;
(d) hydrocarbon solvents;
(e) styrene; and
(f) polyethylene.

Non-application

(2) This Part does not apply to a regulated facility referred to in another Part that produces any of the petrochemicals specified in subsection (1) as a by-product.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.34 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Calculating GHG Emissions	Column 4 Sampling, Analysis and Measurement Requirements
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O	GHGRP 2.C
2	Industrial process emissions	CO₂	WCI Method WCI.303(b)	WCI Method WCI.304(b)
3	Venting emissions	CO₂, CH₄ and N₂O	WCI Method WCI.303(a)(3)	WCI Method WCI.304(a)
4	Flaring emissions	CO₂, CH₄ and N₂O	WCI Methods WCI.303(a)(1), (a)(2) and (c)	WCI Method WCI.304(a)
5	Leakage emissions	CH₄	WCI Method WCI.303(a)(4)	WCI Method WCI.304(a)
6	Wastewater emissions	CH₄ and N₂O	WCI Method WCI.203(g)	WCI Method WCI.204(g)
7	Industrial product use emissions	SF₆ and PFCs	WCI Method WCI.233	WCI Method WCI.234
8	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B	GHGRP 2.C

Replacement data

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Estimating Missing Analytical Data
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.D
2	Industrial process emissions	CO₂	WCI Method WCI.305
3	Venting emissions	CO₂, CH₄ and N₂O	WCI Method WCI.305
4	Flaring emissions	CO₂, CH₄ and N₂O	WCI Method WCI.305
5	Leakage emissions	CH₄	WCI Method WCI.305
6	Wastewater emissions	CH₄ and N₂O	WCI Method WCI.205
7	Industrial product use emissions	SF₆ and PFCs	WCI Method WCI.235
8	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.D

Other emissions

103.35 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.34(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.36 Production by the regulated facility must be quantified in

(a) tonnes of ethylene, propylene and butadiene that are produced from steam cracking and tonnes of benzene extracted from pyrolysis gas that was produced from steam cracking, combined;
(b) tonnes of aromatic cyclic hydrocarbons, including benzene produced from catalytic reforming, combined;
(c) tonnes of higher olefins, combined;
(d) tonnes of hydrocarbon solvents, combined;
(e) tonnes of styrene;
(f) tonnes of polyethylene; and
(g) tonnes of hydrogen gas produced and sold, separately.

PART 19.1

Vaccine Production Facility

General

Covered industrial activities

103.37 This Part applies to regulated facilities engaged in the production of vaccines for human or animal use.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.38 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

Leakage emissions

SF₆

WCI Method WCI.233

WCI Method WCI.234

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Leakage emissions

SF₆

WCI Method WCI.235

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.39 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.38(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.4 Production by the regulated facility must be quantified in litres of vaccines.

PART 19.11

Gypsum Product Manufacturing Facility

General

Covered industrial activities

103.41 This Part applies to regulated facilities that produce products that contain at least 70 weight percent of calcium sulphate dihydrate.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.42 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.43 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.42(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.44 Production by the regulated facility must be quantified in tonnes of each gypsum product that contain at least 70 weight percent of calcium sulphate dihydrate, separately.

PART 19.12

Hydrogen Gas Facility

General

Covered industrial activities

103.45 (1) Subject to subsection (2), this Part applies to regulated facilities that produce hydrogen gas using steam hydrocarbon reforming or partial oxidation of hydrocarbons.

Non-application

(2) This Part does not apply to a regulated facility that is referred to in Part 14, 17 or 19.07.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.46 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Calculating GHG Emissions	Column 4 Sampling, Analysis and Measurement Requirements
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O	GHGRP 2.C
2	Industrial process emissions	CO₂	WCI Method WCI.133	WCI Method WCI.134
3	Flaring emissions	CO₂, CH₄ and N₂O	WCI Method WCI.203(e)	WCI Method WCI.204(e)
4	Leakage emissions	CH₄	WCI Method WCI.203(i)	WCI Method WCI.203(i)
5	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B	GHGRP 2.C

Replacement data

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Estimating Missing Analytical Data
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.D
2	Industrial process emissions	CO₂	WCI Method WCI.135
3	Flaring emissions	CO₂, CH₄ and N₂O	WCI Method WCI.205
4	Leakage emissions	CH₄	WCI Method WCI.205
5	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.D

Other emissions

103.47 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.46(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.48 Production by the regulated facility must be quantified in tonnes of hydrogen gas produced.

PART 19.13

Alcohol Production Facility

General

Covered industrial activities

103.49 This Part applies to regulated facilities that produce ethanol by distillation for use in the production of alcoholic beverages.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.5 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

Wastewater emissions

CH₄ and N₂O

WCI Method WCI.203(g)

WCI Method WCI.204(g)

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Wastewater emissions

CH₄ and N₂O

WCI Method WCI.205

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.51 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.5(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.52 Production by the regulated facility must be quantified in kilolitres of absolute alcohol.

PART 19.14

Sugar Refining Facility

General

Covered industrial activities

103.53 This Part applies to regulated facilities that produce refined sugar from raw cane sugar.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.54 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emissions types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

On-site transportation emissions

CO_2, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

On-site transportation emissions

CO_2, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.55 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.54(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.56 Production by the regulated facility must be quantified in tonnes of refined sugar.

PART 19.15

Wet Corn Milling Facility

General

Covered industrial activities

103.57 This Part applies to regulated facilities that process corn through wet milling.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.58 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Calculating GHG Emissions

Column 4

Sampling, Analysis and Measurement Requirements

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O

GHGRP 2.C

Wastewater emissions

CH₄ and N₂O

WCI Method WCI.203(g)

WCI Method WCI.204(g)

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B

GHGRP 2.C

Replacement data

TABLE

Item

Column 1

Specified Emission Types

Column 2

GHGs

Column 3

Method for Estimating Missing Analytical Data

Stationary fuel combustion emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Wastewater emissions

CH₄ and N₂O

WCI Method WCI.205

On-site transportation emissions

CO₂, CH₄ and N₂O

GHGRP 2.D

Other emissions

103.59 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.58(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.6 Production by the regulated facility must be quantified in tonnes of corn used as raw material.

PART 19.16

Natural Gas Liquid Production Facility

General

Covered industrial activities

103.61 (1) Subject to subsection (2), this Part applies to regulated facilities that produce natural gas liquids, including propane or butane.

Non-application

(2) This Part does not apply to regulated facilities that are referred to in Parts 17 or 19.09.

Quantification of Emissions and Production

Emissions from certain specified emission types

103.62 (1) The GHGs set out in column 2 of the table to this subsection must be quantified for the specified emission types set out in column 1 in accordance with the method for calculating GHG emissions set out in column 3. The sampling, analysis and measurement requirements that apply to those GHGs and specified emission types are set out in column 4.

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Calculating GHG Emissions	Column 4 Sampling, Analysis and Measurement Requirements
1	Stationary fuel combustion emissions	CO₂, CH₄ and N₂O	GHGRP 2.A and 2.B, except, for diesel, instead of emission factors in table 2-6 of section 2.B, use 0.133 kg/kL for CH₄ and 0.4 kg/kL for N₂O	GHGRP 2.C
2	Industrial process emissions from acid gas removal	CO₂	WCI Method WCI.363(c)	WCI Method WCI.364
3	Flaring emissions	CO₂, CH₄ and N₂O	WCI Method WCI.363(k)	Directive 017, Directive PNG017
4	On-site transportation emissions	CO₂, CH₄ and N₂O	GHGRP 2.A.1.c, 2.A.1.d, 2.A.2.e and 2.B	GHGRP 2.C

Replacement data

TABLE

Item	Column 1 Specified Emission Types	Column 2 GHGs	Column 3 Method for Estimating Missing Analytical Data
1	Stationary fuel combustion emissions	CO_2, CH₄ and N₂O	GHGRP 2.D
2	Industrial process emissions from acid gas removal	CO_2,	WCI Method WCI.365
3	Flaring emissions	CO_2, CH₄ and N₂O	WCI Method WCI.365
4	On-site transportation emissions	CO_2, CH₄ and N₂O	GHGRP 2.D

Other emissions

103.63 (1) All GHGs, other than those set out in column 2 of the table to subsection 103.62(1), for any specified emission type set out in column 1 and all GHGs for all other specified emission types not set out in column 1 must be quantified in accordance with

(a) the GHGRP or the WCI Method, if those methods are applicable to the industrial activity of the facility; or
(b) the IPCC Guidelines, if the methods referred to in paragraph (a) are not applicable.

Sampling, analysis and measurement

(2) The sampling, analysis and measurement requirements set out in the methods used under subsection (1) apply to the GHGs and specified emission types.

Production

103.64 Production by the regulated facility must be quantified in cubic metres of propane and butane combined at a temperature of 15°C and at an equilibrium pressure.

32 Section 1 of Schedule 1 to the Order is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

(d) the federal business number assigned to it by the Canada Revenue Agency, if any.

33 (1) Paragraph 2(a) of Schedule 1 to the Order is replaced by the following:

(a) its facility name and the civic address of its physical location, if any;

(2) Section 2 of Schedule 1 to the Order is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f):

(g) in the case of an automotive facility, the combined floor area of all buildings in the facility as of December 31st of the calendar year, measured between the exterior walls of each of the buildings, expressed in square meters, and all methods and data used to calculate the combined floor area.

34 Section 7 of Schedule 1 to the Order is replaced by the following:

7 If thermal energy is sold, the following information for each regulated facility to which the thermal energy was sold:

(a) the name of the regulated facility and the covered facility certificate number that was issued to it; and
(b) the quantity of thermal energy sold in the calendar year, expressed in gigajoules, as well as the thermal energy’s temperature, pressure and ratio of heat from the combustion of fossil fuel.

8 If thermal energy is bought, the following information for each regulated facility from which the thermal energy was bought:

(a) the name of the regulated facility and the covered facility certificate number that was issued to it; and
(b) the quantity of thermal energy bought in the calendar year, expressed in gigajoules, as well as the thermal energy’s temperature and pressure, if applicable, and ratio of heat from the combustion of fossil fuel.

35 (1) Subparagraph 3(f)(i) of Schedule 2 to the Order is replaced by the following:

(i) a summary, including the results, of the assessments, data sampling, tests and reviews that were conducted during the verification, and

(2) Paragraph 3(i) of Schedule 2 to the Order is replaced by the following:

(i) a record of errors or omissions, identified during the verification, in the data, information or method used in the preparation of the annual report that specifies,
- (i) with respect to each error and omission, if it may be quantified,
  - (A) in relation to GHG emissions, the number of tonnes of CO₂e to which the error or omission corresponds, the related percentage calculated in accordance with subparagraph 20(2)(a)(i) or (b)(i) of the Order and a statement indicating whether the error or omission is an understatement or an overstatement, and
  - (B) in relation to the production of a given type of product, the quantification of that error or omission, expressed in the applicable unit of measure, the related percentage calculated in accordance with paragraph 20(2)(c) of the Order and a statement indicating whether the error or omission is an understatement or an overstatement, and
- (ii) with respect to the aggregate of the errors or omissions in relation to GHG emissions, if it may be quantified, the net sum of the errors and omission expressed in tonnes of CO₂e, the related percentage calculated in accordance with subparagraph 20(2)(a)(ii) or (b)(ii) of the Order and a statement indicating whether the error or omission is an understatement or an overstatement;

Coming into Force

36 This Order comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

The Greenhouse Gas Pollution Pricing Act (GGPPA or the Act) received royal assent on June 21, 2018.^{footnote 2} Part 2 of the GGPPA sets out the legal framework and enabling authorities for the performance-based system for emissions-intensive and trade-exposed facilities — known as the Output-Based Pricing System (OBPS). This system will apply in the provinces, territories and areas listed in Part 2 of Schedule 1 to the Act (referred to herein as “backstop jurisdictions”). In backstop jurisdictions, facilities participating in the OBPS will be able to purchase charge-free fuel and will instead face a compliance obligation on the portion of their greenhouse gas (GHG) emissions that exceed prescribed limits. The OBPS regulations will establish the emissions-intensity standards for participating facilities and will be finalized in spring 2019.

On October 31, 2018, the Department of the Environment (the Department) published the Regulatory Impact Analysis Statement (RIAS) for the Greenhouse Gas Emissions Information Production Order (Information Order) and the Notice Establishing Criteria Respecting Facilities and Persons and Publishing Measures (Registration Notice) in the Canada Gazette, Part II. The Information Order requires the OBPS facilities to monitor, gather data and report on emissions and production beginning on January 1, 2019 (July 1, 2019, for facilities in Nunavut and Yukon). While all facilities are covered under the Information Order, methods for certain sectors were not specifically identified. An amendment to the Information Order is required in order to provide more details describing what specific emissions quantification methods must be used and what data must be gathered with respect to production for these sectors. There is also a need to clarify certain issues identified following the publication of the Information Order.

Background

At the United Nations Framework Convention on Climate Change (UNFCCC) conference in December 2015, the international community, including Canada, concluded the Paris Agreement, which is intended to reduce GHG emissions to limit the rise in global average temperature to less than two degrees Celsius (2°C) and to pursue efforts to limit it to 1.5°C above pre-industrial levels. It is widely recognized that economy-wide carbon pollution pricing is the most efficient way to reduce GHG emissions. Pricing carbon pollution drives innovative solutions to provide low-carbon choices for consumers and businesses. As part of its commitments made under the Paris Agreement, Canada pledged to reduce national GHG emissions by 30% below 2005 levels by 2030.

In October 2016, the Government of Canada published the Pan-Canadian Approach to Pricing Carbon Pollution, which outlines the principles on which the pricing of carbon pollution in Canada will be based. This publication also states that a federal carbon pollution pricing backstop system (a federal backstop system) will apply in all Canadian jurisdictions that do not have a carbon pollution pricing system in place that aligns with the benchmark elements of the Pan-Canadian Approach to Pricing Carbon Pollution (the Benchmark) by 2018. The Government of Canada followed up with the publication of guidance on the Benchmark in August 2017 and supplemental guidance in December 2017. The Benchmark is intended to ensure that carbon pollution pricing applies to a broad set of emission sources across Canada, with increasing stringency over time.

The Government of Canada requested that provinces and territories that intended to choose the federal backstop, in whole or in part, confirm their choice by March 30, 2018. Those opting to establish or maintain a provincial or territorial pricing system meeting the benchmark needed to outline their approach by September 1, 2018. The Department focussed its efforts to develop output-based standards on the sectors operating in jurisdictions where the federal backstop was most likely to apply: oil and gas, pulp and paper, chemicals (ethanol), nitrogen fertilizers, lime, cement, base metal smelting and refining, potash, iron ore pelletizing, mining, iron and steel, and food processing (“batch 1”).

In July 2018, the Government of Ontario repealed the province’s cap and trade program, resulting in the need to develop output-based standards for additional sectors (“batch 2”). Thus, the Department created a set of more detailed reporting requirements for batch 2 sectors to be added to the existing Information Order requirements. Batch 2 regulatees were required under the October 31, 2018, Information Order to collect data according to the prescribed methods beginning on January 1, 2019 (July 1, 2019, for facilities in Nunavut and Yukon). Following the publication of the Order Amending the Greenhouse Gas Emissions Information Production Order (the Amendment), they will be required to follow the quantification, sampling, reporting and verification requirements that are specified for their sector, in place of the more general requirements in the October 31, 2018, Information Order.

Objectives

The objective of the Amendment is to specify the information related to GHG emissions and production that must be quantified, reported and verified by the persons responsible for facilities in the sectors identified in the Amendment. The Amendment also aims to clarify certain issues identified following the publication of the Information Order.

Description

The Amendment specifies the information related to GHG emissions and production that must be quantified, reported and verified for batch 2 facilities starting January 1, 2019 (July 1, 2019, for facilities in Nunavut and Yukon), and describes the persons required under the Information Order who must gather and report this information.

The Amendment describes certain sectors that were not specifically identified in the October 31 publication of the Information Order. These sectors were accounted for in Part 20 of the October 31, 2018, Information Order, as it applied to all covered facilities that perform an industrial activity for which no method was prescribed. In addition, the Amendment makes other changes to address issues identified following the publication of the October 31, 2018, Information Order.

“One-for-One” Rule

Administrative burden costs accrued due to the implementation of the Registration Notice and the Information Order for all facilities, in both batch 1 and 2, were outlined in the RIAS for the Registration Notice and the Information Order. There is no additional administration burden cost for the batch 2 facilities due to the Amendment. The administrative costs for the Information Order and the Amendment will be assessed in the RIAS accompanying the OBPS regulations.

Small business lens

The regulated community of mandatory participants is assumed to consist exclusively of emissions-intensive and trade-exposed facilities that are either independently owned and operated by medium or large businesses, or owned and operated by domestic or multinational corporations. It is possible that some non-mandatory participants opting into the system could be small businesses. However, the costs incurred by these participants do not represent compulsory regulatory costs, as the persons responsible for these facilities will have the discretion to choose between the fuel charge regime and participation in the OBPS. The small business lens does not apply to the Information Order and, for the same reasons, does not apply to the Amendment.

Consultation

Under the Greenhouse Gas Pollution Pricing Act, the federal carbon pollution pricing system has two parts: a regulatory charge on fuel (fuel charge) and a regulatory trading system for large industry (OBPS). In December 2017, the Government of Canada requested that provinces and territories provide information by September 1, 2018, describing how they intend to meet the Benchmark.

In October 2018, the federal government announced that the following provinces and territories would be subject to the federal backstop system in whole or in part: Ontario, New Brunswick, Manitoba, Prince Edward Island, Saskatchewan, Yukon and Nunavut. The assessment process considered the stringency of provincial and territorial carbon pollution pricing systems and evaluated how these systems align with the Benchmark. The Information Order outlined the quantification, reporting and verification requirements for facilities producing more than 50 kilotonnes of CO₂e or more during any calendar year in the period from 2014 to 2017. The Amendment outlines these requirements for certain sectors that were not previously specified in the Information Order. Ontario repealed its cap and trade program in July 2018, necessitating the development of new output-based standards for sectors in Ontario.

The Department plans to include quantification, reporting and verification provisions in the OBPS regulations to be made by the Governor in Council under the GGPPA. Once these provisions come into force, the Registration Notice, the Information Order and the Amendment would no longer be necessary.

Comments concerning the assumptions and estimates in this analysis may be made to the contacts listed at the end of this RIAS by February 6, 2019. Comments received will be taken into consideration by the Department in the analysis of the OBPS regulations.

Rationale

The OBPS provides emissions-intensive and trade-exposed facilities in backstop jurisdictions relief from the fuel charge, and these facilities will instead face a compliance obligation on the portion of their GHG emissions that exceeds prescribed limits. The Amendment is being made by the Minister under the GGPPA to specify the information related to GHG emissions and production that must be quantified, reported, and verified by regulated batch 2 facilities. In doing so, the Amendment helps to enable the implementation of the OBPS on January 1, 2019 (July 1, 2019, for facilities in Nunavut and Yukon), in advance of OBPS regulations to be made by the Governor in Council. From the time the fuel charge starts to apply, and upon production of a valid exemption certificate, an OBPS participant will generally be able to purchase charge-free fuel, in accordance with the rules set out under Part 1 of the GGPPA (the fuel charge).

Regarding the Amendment, it is assumed that mandatory OBPS participants have been complying with provincial GHG reporting requirements, where they exist, and with their current GHG Reporting Program obligations by complying with notices published under section 46 of the Canadian Environmental Protection Act, 1999. As a result, the Department expects that the vast majority of mandatory participants will already have the necessary equipment, processes and personnel to comply with the provisions of the Amendment.

The Amendment will not lead to incremental administrative costs for mandatory OBPS participants in backstop jurisdictions. The initial Registration Notice and Information Order included administrative costs for all backstop jurisdictions based on general assumptions about reporting obligations. The federal government will incur upfront costs to conduct compliance promotion activities and develop a secure electronic system for reporting and compliance tracking purposes. The Government of Canada will face ongoing costs for enforcement and compliance promotion activities undertaken to support the OBPS, and ongoing costs to administer the registration, reporting and compliance tracking system. These federal government costs will be assessed and reported in the RIAS accompanying the OBPS regulations.

Implementation, enforcement and service standards

The Amendment comes into force on January 1, 2019, and becomes applicable in Yukon and Nunavut on July 1, 2019. Implementation and enforcement actions will be undertaken by the Department in accordance with the Department’s compliance and enforcement policies.

In order to raise awareness and encourage the regulated community to achieve a high level of compliance as early as possible during the regulatory implementation process, the Department will undertake compliance promotion activities. The Department will email regulated facilities, industry associations and other stakeholders and publish online guidance material in conjunction with the publication of the Amendment in the Canada Gazette, Part II.

The Government of Canada is committed to continuing to work with provinces and territories to implement carbon pollution pricing as a central component of the Pan-Canadian Framework on Clean Growth and Climate Change. From 2019 onwards, there will be an annual assessment process of provincial and territorial carbon pollution pricing systems to consider their stringency and to ensure that these systems continue to meet the Benchmark. The federal government will monitor major changes to provincial and territorial systems on an ongoing basis, work with the territories to address their specific challenges, and continue to engage with Indigenous peoples with respect to pricing carbon pollution. The Pan-Canadian Approach to Pricing Carbon Pollution will be reviewed by early 2022 to confirm the overall path forward.

Contacts

Katherine Teeple
Director
Federal Carbon Pricing System Division
Carbon Pricing Bureau
Environmental Protection Branch
Department of the Environment
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: ec.tarificationducarbonecarbonpricing.ec@canada.ca

Matthew Watkinson
Director
Regulatory Analysis and Valuation Division
Economic Analysis Directorate
Strategic Policy Branch
Department of the Environment
200 Sacré-Cœur Boulevard
Gatineau, Quebec
K1A 0H3
Email: ec.darv-ravd.ec@canada.ca