Q-2, r. 46.1 - Regulation respecting a cap-and-trade system for greenhouse gas emission allowances

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Full text
chapter Q-2, r. 46.1
Regulation respecting a cap-and-trade system for greenhouse gas emission allowances
ENVIRONMENT QUALITY — CAP-AND-TRADE SYSTEM — GAS EMISSION
Environment Quality Act
(chapter Q-2, s. 31, 1st par., subpars. b, c, d, e.1, h and h.1, ss. 46.1, 46.5, 46.6, 46.8 to 46.16, 115.27 and 115.34.).
Q-2
September 1 2012
TITLE I
GENERAL
CHAPTER I
SCOPE, APPLICATION AND INTERPRETATION
1. The purpose of this Regulation is to set rules for the operation of the cap-and-trade system for greenhouse gas emission allowances established pursuant to section 46.5 of the Environment Quality Act (chapter Q-2). For that purpose, it determines which emitters are required to cover their emissions, the terms and conditions for registering for the system, the emission allowances that can be validly used, the terms and conditions for the issue, use and trading of emission allowances, and the information that must be provided by emitters and other persons or municipalities that may register for in the system.
O.C. 1297-2011, s. 1; O.C. 1184-2012, s. 1.
2. For the purposes of this Regulation, an emitter is any person or municipality operating an enterprise in a sector of activity listed in Appendix A and reporting for an establishment or, if applicable, for the enterprise, in accordance with the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), annual greenhouse gas emissions in a quantity equal to or greater than 25,000 metric tonnes CO2 equivalent, excluding the emissions referred to in the second paragraph of section 6.6 of that Regulation.
(1)  (subparagraph replaced);
(2)  (subparagraph replaced);
(3)  (subparagraph replaced);
(4)  (subparagraph replaced);
(5)  (subparagraph replaced);
(6)  (subparagraph replaced).
A person or municipality operating an enterprise is also considered to be an emitter if the person or municipality
(1)  acquires electricity generated outside Québec, except electricity produced in the territory of a partner entity, for its own consumption or for sale in Québec, if the greenhouse gas emissions attributable to the generation of the quantity of electricity acquired, calculated in accordance with the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere, are equal to or exceed 25,000 metric tonnes CO2 equivalent;
(2)  distributes 200 litres or more of fuel within the meaning of protocol QC.30 of Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere.
For the purposes of subparagraph 2 of the second paragraph, “fuel” means automotive gasoline, diesel fuels, propane, natural gas and heating fuel, except
(1)  fuel used in air or water navigation;
(2)  hydrocarbons used as raw material by industries that transform hydrocarbon molecules through chemical or petrochemical processes;
(3)  the biomass and biomass fuel component of such fuel;
(4)  fuel for which an emitter referred to in the first paragraph of section 2 or in section 2.1, including the emitter itself, as the case may be, is required to cover its emissions pursuant to section 19 for the emitter referred to in section 2 and under section 19.0.1 for the emitter referred to in section 2.1.
O.C. 1297-2011, s. 2; O.C. 1184-2012, s. 2; O.C. 1138-2013, s. 1; O.C. 902-2014, s. 1; O.C. 1089-2015, s. 1; 1125-2017O.C. 1125-2017, s. 1.
2.1. For the purposes of this Regulation, a person or municipality operating an enterprise in a sector of activity referred to in Appendix A that is not an emitter within the meaning of section 2, reporting for an establishment, in accordance with paragraph 1 of section 6.1 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), annual greenhouse gas emissions in a quantity equal to or greater than 10,000 metric tonnes CO2 equivalent and that registers for the system for one of its establishments covered by the reporting without being required to do so, is also an emitter.
1125-2017O.C. 1125-2017, s. 2.
3. For the purposes of this Regulation,
(1)  biomass fuel means any fuel whose entire energy generating capacity is derived from biomass;
(2)  biomass means a non-fossilized plant or part of a plant, an animal carcass or part of an animal, manure, liquid manure, a micro-organism and any other product derived from such matters;
(3)  emissions report means a greenhouse gas emissions report made in accordance with Division II.1 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15);
(4)  compliance deadline means the deadline referred to in the first paragraph of section 21 for covering greenhouse gas emissions in a compliance period;
(4.1)  officer means the president, chief executive officer, chief operating officer, chief financial officer or secretary of a legal person or partnership or any person having similar functions, and any person designated as such by a resolution of the board of directors;
(5)  emission allowance means any emission allowance referred to in the second paragraph of section 46.6 of the Environment Quality Act (chapter Q-2), namely a greenhouse gas emission unit, offset credit or early reduction credit, and any emission allowance issued by a partner entity, each allowance having a value corresponding to one metric ton of greenhouse gas CO2 equivalent;
(6)  reported emissions means greenhouse gas emissions that are
(a)  reported in accordance with the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere but that do not need to be verified pursuant to that Regulation; or
(b)  calculated using data provided by the emitter when the emitter was not required, prior to 1 January 2011, to report emissions pursuant to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere;
(7)  verified emissions means the greenhouse gas emissions mentioned in a verification report and, where applicable, a notice of correction in accordance with the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), in metric tonnes CO2 equivalent;
(8)  partner entity means a government other than the Government of Québec, a department of such a government, an international organization, or an agency of such a government or organization, with which an agreement has been entered into in accordance with section 46.14 of the Environment Quality Act and that is referred to in Appendix B.1 to this Regulation;
(9)  covered establishment means an establishment referred to in the first paragraph of section 2 or in section 2.1 or an enterprise referred to in the second paragraph of section 2, for which the emitter is required to cover greenhouse gas emissions in accordance with Chapter III of Title II;
(10)  
greenhouse gas or GHG means one or more of the gases listed in the second paragraph of section 46.1 of the Environment Quality Act, namely carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoruride (SF6), as well as nitrogen trifluoride (NF3);
(10.1)  working day means any day other than a Saturday, Sunday or statutory holiday, including statutory holidays in the territory of a partner entity;
(11)  new facility means either
(a)  a combination of apparatus and equipment intended for a specific purpose, installed and commissioned on or after 1 January 2012 on the site of a covered establishment to pursue the same type of activity, to which GHS emissions in one of the following quantities are attributable:
i.  a quantity equal to or exceeding 10,000 metric tonnes CO2 equivalent per year;
ii.  a quantity representing over 15% of the average annual emissions of the establishment for the period 2007-2010; or
(b)  part of all of the combination of apparatus and equipment intended for a specific purpose at a covered establishment that is modified and commissioned on or after 1 January 2012 with the result that the establishment pursues a type of activity referred to in Table B of Part I of Schedule C or any other type of activity that it did not previously pursue;
(12)  compliance periods means any period for which an emitter is required to cover its greenhouse gas emissions, the first period starting on 1 January 2013 and ending on 31 December 2014, and the following periods are of 3 calendar years as of 1 January 2015;
(12.1)  promoter means a person who implements an offset credit project;
(12.1.1)  total quantity of reference units means the quantity of reference units produced or used during a year by an emitter
(a)  for the years 2007 to 2011, calculated using the information provided by the emitter; and
(b)  for the years 2012 and following, mentioned in the verification report in accordance with section 6.9 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere;
(13)  emissions threshold means the level of greenhouse gas emissions or, by assimilation, the quantity of fuel determined in the first and second paragraphs of section 2;
(14)  system means the cap-and-trade system for greenhouse gas emission allowances;
(15)  “”
reference unit means a standard unit of measurement for a raw material used to pursue an activity or for a product resulting from an activity of an emitter, referred to in Table B of Part I of Schedule C.
O.C. 1297-2011, s. 3; O.C. 1184-2012, s. 3; O.C. 1089-2015, s. 2; I.N. 2016-01-01 (NCCP); 1125-2017O.C. 1125-2017, s. 3.
CHAPTER II
INFORMATION AND DOCUMENTS
4. Every person or municipality to which the provisions of this Regulation apply must keep a copy of all the information and documents that must be filed under this Regulation or relating to any transaction within the system for a minimum period of 7 years starting on the date on which they are produced.
Documents and information relating to a project involving early reduction credits referred to in Chapter III of Title III must be kept for a minimum period of 7 years starting on the date on which the application for credits was forwarded to the Minister.
Documents and information relating to an offset credit project referred to in Chapter IV of Title III must be kept for the duration of the project and for a minimum period of 7 years starting on the date on which the project ended.
Documents and information relating to an application for access to the electronic system pursuant to section 10 must be kept for the entire period during which a natural person has access to the electronic system and for a minimum period of 7 years following the date on which that person no longer has access to the system.
In addition, in the case of a designation or authorization made in accordance with section 11, 12 or 18.2, a copy of the information and documents relating to the designation or authorization must be kept for the entire period of the designation or authorization of the person concerned and for a minimum period of 7 years following the end of that period.
Documents and information referred to in this section must also be provided to the Minister on request.
Documents and information provided pursuant to this Regulation are dealt with confidentially, subject to the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1).
O.C. 1297-2011, s. 4; O.C. 1184-2012, s. 4; O.C. 1089-2015, s. 3; 1125-2017O.C. 1125-2017, s. 4.
5. Any information or document required to be provided under this Regulation must be sent to the Minister using the forms or templates available on the website of the Ministère du Développement durable, de l’Environnement, de la Faune et des Parcs.
Despite the first paragraph, where all or part of the system is delegated to a person or a body pursuant to the second paragraph of section 46.13 of the Environment Quality Act (chapter Q-2), the information and documents indicated in the notice published in accordance with the third paragraph of that section must be sent to the delegatee.
O.C. 1297-2011, s. 5; O.C. 1184-2012, s. 5; O.C. 902-2014, s. 2; 1125-2017O.C. 1125-2017, s. 5.
TITLE II
CAP-AND-TRADE SYSTEM FOR GREENHOUSE GAS EMISSION ALLOWANCES
CHAPTER I
ADMINISTRATIVE ACCOUNTS
6. For system administration purposes, the Minister keeps the following accounts:
(1)  an issuance account, containing the emission units created on the basis of the caps established in accordance with section 46.7 of the Environment Quality Act (chapter Q-2);
(1.1)  an allocation account, containing the emission units available for allocation without charge, calculated in accordance with Part II of Appendix C of this Regulation;
(2)  an auction account, containing the emission units to be sold at auction;
(3)  a reserve account, containing emission units intended for sale by mutual agreement by the Minister or to be used to adjust the quantity of emission units allocated without charge;
(4)  a retirement account, in which emission allowances retired from the system are recorded in accordance with this Regulation;
(5)  an environmental integrity account, containing the offset credits that may be extinguished to replace the illegitimate offset credits not surrendered by a promoter;
(6)  an invalidation account, containing offset credits issued and cancelled by a partner entity and emission allowances withdrawn from the environmental integrity account to replace illegitimate offset credits in accordance with the fourth paragraph of section 70.21;
(7)  a cancellation account in which cancelled emission allowances are recorded when created by error.
O.C. 1297-2011, s. 6; O.C. 1184-2012, s. 6; O.C. 902-2014, s. 3; O.C. 1089-2015, s. 4; 1125-2017O.C. 1125-2017, s. 6.
CHAPTER II
REGISTRATION OF EMITTERS AND PARTICIPANTS
7. Every emitter referred to in section 2 must register for the system by providing the Minister with the following information and documents:
(1)  the name and contact information for the enterprise, any other name used by the enterprise in Québec to identify itself in the pursuit of its activities, its legal status, the date and place of its constitution and the business number assigned under the Act respecting the legal publicity of enterprises (chapter P-44.1);
(2)  a list of its directors and officers, with their position within the enterprise and, at the Minister’s request, their work addresses;
(3)  the name and contact information for each establishment covered, the type of operation, the activities pursued, the processes and equipment used and, if applicable, the 6-digit code under the North American Industry Classification System (NAICS Canada) and establishment number assigned under the Inventaire québécois des émissions atmosphériques kept by the Ministère du Développement durable, de l’Environnement, de la Faune et des Parcs;
(4)  except for the emitter referred to in subparagraph 1 of the second paragraph of section 2, for each of the 3 years preceding the application for registration and for each establishment covered that exercises an activity listed in Table A in Part I of Appendix C,
(a)  the total quantity of GHG emissions, either reported or verified, by category of GHG emissions referred to in Division B of Part II of Schedule C, in metric tonnes CO2 equivalent;
(b)  the total quantity of each reference unit;
(c)  the total quantity of GHG emissions, by category of GHG emissions referred to in Division B of Part II of Schedule C, for each reference unit, in metric tonnes CO2 equivalent;
(d)  the total quantity of fuel used, by type of fuel and by reference unit; and
(e)  the calculation methods used;
(5)  (paragraph revoked);
(6)  a list of the subsidiaries, parent legal persons and persons having control of the emitter within the meaning of the second paragraph of section 9, with the control percentage between each entity, which information may also be provided in the form of a diagram;
(7)  in the case of a business corporation, the names and contact information of the persons controlling over 10% of the voting rights attached to all the outstanding voting securities of the emitter;
(8)  in the case of a partnership, the name and contact information of each partner or, in the case of a limited partnership, the name and contact information of each general partner and the name and contact information of each special partner having provided over 10% of the common stock;
(9)  a declaration signed by a director or any other officer, or a resolution of the board of directors including an undertaking to comply with the conditions of this Regulation and attesting that the information and documents provided are valid and that consent has been given as to their communication when necessary for the purposes of this Regulation and of the corresponding rules and regulations of a partner entity.
An application for registration for the system must be sent to the Minister
(1)  on or after 1 May 2012 but not later than 1 September 2012, in the case of an emitter other than an emitter referred to in subparagraph 2 of this paragraph whose reported emissions for 2009, 2010 or 2011 for an establishment are equal to or exceed the emissions threshold;
(2)  not later than 1 September 2014, in the case of an emitter pursuing fuel distribution activities whose reported emissions for 2013 are equal to or exceed the emissions threshold;
(3)  not later than 1 September following the submission of the first emissions report reporting emissions equal to or exceeding the threshold, in the case of an emitter referred to in subparagraph 1 of this paragraph whose verified emissions for an establishment are equal to or exceed the emissions threshold during a year following the year mentioned in that subparagraph;
(4)  not later than 1 September 2015, in the case of an emitter pursuing fuel distribution activities whose verified emissions for 2014 for those activities are equal to or exceed 25,000 metric tonnes CO2 equivalent;
(5)  on or after 1 January 2016 but not later than 1 September 2016, in the case of an emitter pursuing fuel distribution activities who can prove that the verified emissions for 2015 for those activities will be equal to or exceed 25,000 metric tonnes CO2 equivalent;
(6)  on or after 1 January of the year concerned, but not later than 1 September following the submission of the first emissions report reporting emissions equal to or exceeding the threshold, in the case of an emitter pursuing fuel distribution activities who can demonstrate that the verified emissions for 2016 or a subsequent year will be equal to or exceed the emissions threshold.
O.C. 1297-2011, s. 7; O.C. 1184-2012, s. 7; O.C. 1138-2013, s. 2; O.C. 902-2014, s. 4; O.C. 1089-2015, s. 5; 1125-2017O.C. 1125-2017, s. 7.
7.1. Before a person or municipality referred to in section 2.1 registers for the system, a written notice must be sent to the Minister, not later than May 1 of the year during which the person or municipality intends to register, stating its intention.
1125-2017O.C. 1125-2017, s. 8.
7.2. Any person or municipality referred to in section 2.1 must, at the time of registering for the system, provide the Minister with the information and documents referred to in subparagraphs 1 to 3, subparagraphs b and c of subparagraph 4 and subparagraphs 6 to 9 of the first paragraph of section 7.
The person or municipality must also, at the same time, provide to the Minister, for each covered establishment carrying on an activity referred to in Table A of Part I of Appendix C, the emissions reports for the 3 consecutive years immediately preceding the year during which it registers, if available, as well as a verification report of its emissions report of the year preceding the year in which the person or municipality registers. If not all the reports are available, the person or municipality must at least send the report for the year preceding the year during which the person or municipality registers.
1125-2017O.C. 1125-2017, s. 8.
8. Only a natural person domiciled in Canada or another person or municipality having an establishment in Canada may register with the Minister as a participant in the system in order to acquire emission allowances. The applicant must provide the Minister with the following information and documents:
(1)  the applicant’s name and contact information;
(2)  in the case of an applicant other than a natural person or a municipality, the information and documents referred to in subparagraphs 1 to 3 and 6 to 9 of the first paragraph of section 7, with the necessary modifications;
(2.1)  in the case of a natural person, a list of the entities the person owns or controls with the control percentage between each entity, the name and contact information for the business corporations in which the person controls over 10% of the voting rights attached to all the outstanding voting securities of the business corporation, and the name and contact information of all partnerships in which the person is a partner, general partner or special partner, and in which the person provided over 10% of the common stock;
(3)  if the application is made by a mandatary who is not domiciled in Québec, the name and contact information of a natural person domiciled in Québec who is designated to represent the applicant;
(4)  if the application is made by a natural person, a declaration signed by the person or, in other cases, a declaration signed by a director or any other officer, or a resolution of the board of directors including an undertaking to comply with the conditions of this Regulation.
However, a natural person employed by an emitter or a participant may not be registered as a participant in the system.
Despite the second paragraph, in the case of a natural person employed by an emitter or a participant who registered as a participant before 22 October 2014, the person’s registration will be authorized until 22 October 2016, after that it will be terminated. Until that date, the person may not participate in an auction sale of emission units.
O.C. 1297-2011, s. 8; O.C. 1184-2012, s. 8; O.C. 902-2014, s. 5; O.C. 1089-2015, s. 6; 1125-2017O.C. 1125-2017, s. 9.
8.1. Every person or municipality that is already registered as an emitter or clearing house pursuant to this Regulation or as an emitter or clearing house in the cap-and-trade system for GHG emission allowances of a partner entity is considered to be registered for the system and cannot register again as a participant or clearing house with the Minister.
O.C. 1184-2012, s. 8; O.C. 1138-2013, s. 3; O.C. 1089-2015, s. 7; 1125-2017O.C. 1125-2017, s. 10.
9. Every person or municipality referred to in section 7, 7.2 or 8 must also, when registering for the system, disclose to the Minister any business relationship with an emitter or participant registered for or subject to the system, including those registered with a partner entity, by providing the following information in particular:
(1)  the name of any other emitter or participant with which the applicant is related, and of any other parent legal person, subsidiary or group concerned by the relationship and, upon request, their contact information;
(2)  the type of business relationship between the emitters or participants with which it has a business relationship and their respective status, such as parent legal person, subsidiary, group, partner or other, along with any explanation allowing the business relationship to be understood and the control percentage between each entity, which information may also be provided in the form of a diagram;
(2.1)  where applicable, the general account number of the emitter or participant with which it has a business relationship and, if the emitter or participant is not a natural person, its legal status;
(3)  where applicable, the percentage share of the overall holding limit and of the overall purchasing limit at an auction that is attributed to each related entity in the distributions made, respectively, in accordance with section 33 and the fifth paragraph of section 50.
For the purposes of this section,
(1)  “business relationship” means any direct or indirect relationship between several different emitters or participants when one of them
(a)  holds more than 20% of the securities of another emitter or participant or holds a call provision or call option for such securities;
(b)  shares more than 20% of its officers or directors with another emitter or participant, or may appoint more than 20% of its officers or directors;
(c)  holds more than 20% of the voting rights in another emitter or participant;
(d)  controls over 20% of the business of another emitter or participant by any means; or
(e)  belongs to the same group as another emitter or participant;
(2)  “subsidiary” means a person controlled by another person or by persons controlled by that other person; the subsidiary of a person that is, itself, the subsidiary of another person is deemed to be a subsidiary of that other person;
(3)  “group” means 2 or more persons when
(a)  one is a subsidiary of the other;
(b)  all the persons are subsidiaries of the same person; or
(c)  they are all controlled by the same person;
(4)  “control” means a person that, with regard to another person,
(a)  owns or has control or direction, whether direct or indirect, over securities of the other person or company carrying votes which, if exercised, would entitle the person to elect a majority of the directors of the other person, unless the person holds the voting securities only to secure an obligation;
(b)  in the case of a partnership other than a limited partnership, holds more than 50% of the interests of the partnership; or
(c)  in the case of a limited partnership, is the general partner;
(5)  “related entity” means any emitter or participant with which the business relationship as defined in subparagraph 1 involves a percentage of over 50%, a subsidiary, or an emitter or participant belonging to the same group, as well as any emitter or participant who share an account representative who also works for one of them.
O.C. 1297-2011, s. 9; O.C. 1184-2012, s. 9; O.C. 902-2014, s. 7; O.C. 1089-2015, s. 8; 1125-2017O.C. 1125-2017, s. 11.
9.1. A person referred to in section 9 that retains the services of an advisor for the application of this Regulation must send to the Minister the name and professional contact information of the advisor, and, where applicable, the name of the advisor’s employer.
A person referred to in section 9 who advises another person for the application of this Regulation must send to the Minister a list of all the persons provided with advisory services for the same purpose.
1125-2017O.C. 1125-2017, s. 12.
10. To register for the system, an emitter, participant or clearing house or, if they are not natural persons, their account representatives, must first obtain access to the electronic system by providing the Minister with the following information and documents:
(1)  the person’s name and contact information at the person’s home address;
(2)  the person’s date of birth;
(3)  copies of at least 2 identity documents, including one with a photograph, issued by a government or one of its departments or agencies, bearing the person’s name and date of birth, along with an attestation from a notary or advocate, completed less than 3 months prior to the application for registration, stating that the notary or advocate has established the identity of the person and certifying the authenticity of the copies of the identity documents;
(4)  the name and contact information of the person’s employer;
(5)  confirmation from a financial institution located in Canada that the person has a deposit account with the institution;
(6)  any conviction for a criminal offence or an offence referred to in section 13 from the 5 years prior to the submission of the information and documents;
(7)  a declaration, signed by the person and attesting
(a)  that the information and document provided are valid and that the person consents to their communication when necessary for the purposes of this Regulation and the corresponding rules and regulations of a partner entity;
(a.1)  that the person consents to a judicial record verification by the Minister or a person mandated for that purpose; and
(b)  that the person undertakes to comply with the conditions of this Regulation.
A natural person authorized to act as an account viewing agent pursuant to section 12 must also obtain access to the electronic system in accordance with the first paragraph if the person has not already obtained access to the electronic system of a partner entity.
The account viewing agent designated by the emitter or the participant, under section 11, after they register for the system, must also obtain access to the electronic system in accordance with the first paragraph.
The emitter referred to in section 2.1, the participant, the clearing house or the account viewing agent or, if they are not natural persons, their account representatives, that requests access to the electronic system under this section must, in order for the request to be admissible, send the documents listed in the first paragraph in the 12 months following the date of the request.
A person who, under this section, must obtain access to the electronic system but already has one, obtained from a partner entity, is considered to have met the obligation under this Regulation and may not obtain new access from the Minister. The person must provide the Minister with the information referred to in subparagraphs 1, 2, 4, 6 and 7 of the first paragraph. If the access has not been obtained in accordance with sections 95834(a)(b) and (d) of the California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms or in accordance with paragraph 2 of section 45 of O.Reg. 144/16: The Cap and Trade Program, the person must also provide the information referred to in subparagraph 3 of the first paragraph.
O.C. 1297-2011, s. 10; O.C. 1184-2012, s. 10; O.C. 902-2014, s. 8; 1125-2017O.C. 1125-2017, s. 13.
11. When registering for the system, an emitter or participant that is not a natural person must also designate at least 2 and at most 5 natural persons to act as account representatives and perform any operation within the system on its behalf.
The emitter or participant must also identify a primary account representative who is the resource person to be contacted for any information concerning the emitter or participant.
For the purposes of the designation, the emitter or participant must provide the Minister with the following information and documents:
(1)  the name and contact information of the emitter or participant;
(1.1)  in the case of an emitter or participant that is not a natural person and is not constituted in Québec, the name and contact information of its attorney designated under section 26 of the Act respecting the legal publicity of enterprises (chapter P-44.1);
(2)  the name and contact information of the designated account representatives;
(3)  a declaration signed by a director or by any other officer, or a resolution of the board of directors of the emitter or participant attesting that the account representatives have been duly designated to act on behalf of the emitter or participant for the purposes of this Regulation;
(4)  an attestation from a notary or advocate confirming the link between an account representative and the emitter or participant who designated the representative;
(5)  a declaration, signed by each of the account representatives, attesting that they have been duly designated for that purpose by the authorized representatives of the emitter or participant, that they accept the duties they have been assigned and that they undertake to comply with the conditions of this Regulation. The declaration must also indicate the name and contact information of any other emitter or participant on whose behalf the account representative acts for that purpose.
The attestation referred to in subparagraph 4 of the third paragraph must be sent to the Minister within 3 months after the date of the attestation.
An emitter or participant that is not a natural person must have at least 2 account representatives at all times, including a primary account representative.
All representations, acts, errors or omissions made by the account representatives in the performance of their duties are deemed to be made by the emitter or participant.
The duties of the account representatives terminate when a request for revocation is received from the emitter or participant and, when an emitter or a participant has only 2 representatives, only after a new representative has been designated. The duties of the account representatives also terminate when all the accounts of the emitter or participant are closed.
If the participant is a natural person, any act that must be performed by an account representative pursuant to this Regulation must be performed by the participant.
At the written request of an emitter or participant, the Minister may, before a request for revocation of mandate is sent to the Minister by the emitter or participant under the seventh paragraph, where the urgency of the situation warrants it, withdraw access to the electronic system from one of its account representatives.
O.C. 1297-2011, s. 11; O.C. 1184-2012, s. 10; O.C. 902-2014, s. 9; 1125-2017O.C. 1125-2017, s. 14.
12. An emitter or participant that is not a natural person may authorize up to 5 natural persons to act as account viewing agent to observe, within the electronic system, the operations involving the accounts of the emitter or participant.
For the purposes of the authorization, the emitter or participant must provide the following information and documents:
(1)  the name, contact information and account numbers of the emitter or participant;
(2)  the name and contact information of the authorized account viewing agents;
(3)  a declaration signed by a director or any other officer, or a resolution of the board of directors of the emitter or participant attesting that the account viewing agents are duly authorized to observe the account operations;
(4)  an attestation from a notary or advocate confirming the link between the account viewing agent and the emitter or participant that authorized the account viewing agent.
The authorization of an account viewing agent ends when a request for revocation is received from the emitter or participant or when all the accounts of the emitter or participant are closed.
O.C. 1297-2011, s. 12; O.C. 1184-2012, s. 10; O.C. 902-2014, s. 10; 1125-2017O.C. 1125-2017, s. 15.
13. No natural person applying for registration as a participant, and no person designated as an account representative or authorized as an account viewing agent, may have been found guilty, in the 5 years prior to the application for registration or the sending of the notice of designation or authorization, of fraud or any other criminal offence connected with the activities for which registration is requested or a notice is sent, or may have been found guilty on an offence under sections 28 to 31 of this Regulation or under a fiscal Act, the Derivatives Act (chapter I-14.01), the Securities Act (chapter V-1.1) or their regulations, unless a pardon has been obtained.
Every participant who is a natural person, every account representative and every account viewing agent who is found guilty of a criminal offence or an offence referred to in the first paragraph must inform the Minister of the conviction without delay, and the registration, designation or authorization of that natural person, account representative or account viewing agent will be terminated or revoked.
The emission allowances recorded in the account of a participant whose registration is terminated pursuant to the second paragraph are recovered by the Minister who allocates them as follows:
(1)  the emission units are paid into the auction account to be sold at a later date;
(2)  the early reduction credits are paid into the retirement account to be extinguished;
(3)  the offset credits are paid into the environmental integrity account.
This section applies to any conviction in any foreign court for a criminal offence or offence referred to in the first paragraph that, had it been committed in Canada, could have led to criminal or penal proceedings.
O.C. 1297-2011, s. 13; O.C. 1184-2012, s. 10; 1125-2017O.C. 1125-2017, s. 16.
14. When an application for registration meets the requirements of sections 7 to 13 that apply to it, the Minister opens, in the electronic system,
(1)  for each emitter or participant, a general account in which the emission allowances that may be traded are recorded; and
(2)  for each emitter, a compliance account in which the emission allowances used to cover the GHG emissions of its covered establishments at the end of a compliance period must be recorded.
O.C. 1297-2011, s. 14; O.C. 1184-2012, s. 10; O.C. 902-2014, s. 11; 1125-2017O.C. 1125-2017, s. 17.
14.1. Any change to the information and documents provided pursuant to subparagraph 6 of section 10 or to section 11 must be communicated to the Minister without delay and, in the case of those provided pursuant to sections 7, 7.2, 8, 9 and 9.1, subparagraphs 1 to 5 and subparagraph 7 of section 10 or section 12, within 30 days from this amendment.
O.C. 1184-2012, s. 10; O.C. 902-2014, s. 12; 1125-2017O.C. 1125-2017, s. 18.
14.2. A participant whose account no longer contains any emission allowances may request that the Minister close the participant’s general account and cancel the participant’s registration by providing the following information:
(1)  the participant’s name and contact information;
(2)  the participant’s account number;
(3)  the participant’s signature or, if the participant is not a natural person, the signature of one of the participant’s account representatives, of a director or any other officer, or a resolution of its board of directors, with the date of the request.
When the Minister notes, in the enterprise register, that a participant’s registration has been cancelled for at least 3 years, the Minister notifies the participant that, after 30 days, the Minister may close the participant’s account and terminate the participant’s registration if the participant provides no valid reason for maintaining the account. When the account is closed, if it still contains emission allowances, the Minister may, as the case may be, recover them
(1)  by transferring the emission units in the account to the auction account;
(2)  by transferring the offset credits and early reduction credits to the retirement account; and
(3)  by transferring the reserve units to the reserve account.
O.C. 1184-2012, s. 10; 1125-2017O.C. 1125-2017, s. 19.
15. The Minister may close an emitter’s compliance account and transfer the emission allowances recorded in it to the emitter’s general account
(1)  if the emitter has not been required to cover the GHG emissions of any of its establishments pursuant to section 19 or, as the case may be, section 19.1, the emitter has met all the requirements of Chapter III, and the offset credits placed in the account by a partner entity and used by the emitter to cover its GHG emissions can no longer be cancelled;
(2)  if the covered establishment is no longer operated by the emitter, the emitter operates no other covered establishments, and the emitter meets the conditions of section 17; or
(3)  if the emitter is closing a covered establishment, operates no other covered establishments, meets the conditions of section 18, has met all the requirements of Chapter III, and the offset credits placed in the account by a partner entity and used by the emitter to cover its GHG emissions can no longer be cancelled.
The emitter then becomes a participant for the purposes of this Regulation.
O.C. 1297-2011, s. 15; 1125-2017O.C. 1125-2017, s. 20.
16. When a participant’s general account has been inactive for at least 6 years, the Minister notifies the participant of the situation and of the fact that the Minister may, after 30 days, close the account and terminate the participant’s registration if no emission allowance is placed in the account during that period or if the participant provides no valid reason for maintaining the account.
When the participant’s general account still contains emission allowances, the Minister may, when closing the account, as the case may be, recover the allowances
(1)  by transferring the emission units in the account to the auction account;
(2)  by transferring the offset credits and early reduction credits to the retirement account; and
(3)  by transferring the reserve units to the reserve account.
O.C. 1297-2011, s. 16; 1125-2017O.C. 1125-2017, s. 21.
17. When the operator of a covered establishment changes during a year, the emitter who previously operated the establishment must so notify the Minister as soon as possible.
The new operator becomes an emitter to which this Regulation applies and must, within 30 days of the change of operator, register for the system in accordance with this Chapter.
The new operator is required, in place of the former operator, to meet all the requirements that applied to the former operator pursuant to this Regulation.
O.C. 1297-2011, s. 17; 1125-2017O.C. 1125-2017, s. 22.
18. An emitter that is permanently closing a covered establishment must, within 45 days of the date of the last emissions report filed in accordance with the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), surrender to the Minister,
(1)  in accordance with section 46.10 of the Environment Quality Act (chapter Q-2), the same number of emission units as the number allocated without charge pursuant to Division II of Chapter II of Title III and issued on the basis of the estimated GHG emissions of the covered establishment, for the period after the operation of the covered establishment ceased, the surrendered units, if they have a vintage, must be of the year on which they were allocated or from previous years; and
(2)  any emission allowance needed to cover the GHG emissions of the covered establishment for the period during which it was operated.
For that purpose, the emitter must transfer into the emitter’s compliance account the emission units referred to in subparagraph 1 of the first paragraph to allow them to be paid into the Minister’s auction account and the emission allowances referred to in subparagraph 2 of the first paragraph to allow them to be deducted by the Minister and paid into the retirement account to be extinguished.
If the emitter fails to surrender emission allowances in accordance with this section,
(1)  if they are emission units referred to in subparagraph 1 of the first paragraph, the Minister deducts them from the emitter’s accounts; and
(2)  if they are emission allowances referred to in subparagraph 2 of the first paragraph, the Minister recovers them in accordance with section 22 and applies the administrative sanction provided for in that section.
O.C. 1297-2011, s. 18; O.C. 1184-2012, s. 11; O.C. 902-2014, s. 13.
CHAPTER II.1
REGISTRATION OF CLEARING HOUSES
O.C. 1089-2015, s. 9.
18.1. A clearing house for derivatives having an establishment in Canada, recognized by a regulatory authority responsible for supervising financial markets in Canada, may register for the system in order to clear transactions involving emission allowances. For that purpose, it must provide the Minister with the following information and documents:
(1)  its name and contact information, and the date and place of its constitution;
(2)  a list of its directors and officers and their work contact information;
(3)  a list of its subsidiaries or parent legal persons with a diagram representing the relations between those entities, including the control percentage between each entity;
(4)  a document issued by the regulatory authority supervising the clearing house confirming that fact and giving the date on which supervision started and the rules to be followed by the clearing house;
(5)  a declaration signed by a director or any other officer, or a resolution of the board of directors of the clearing house including an undertaking to comply with the conditions of this Regulation and attesting that the information and documents provided are valid and that consent has been given to their communication when necessary for the purposes of this Regulation or the corresponding regulations of a partner entity.
O.C. 1089-2015, s. 9; 1125-2017O.C. 1125-2017, s. 23.
18.2. When registering for the system, the clearing house must also designate account representatives in accordance with section 11 that applies, with the necessary modifications.
It may also designate account viewing agents in accordance with section 12 that applies, with the necessary modifications.
Section 8.1 and subparagraphs 1, 2 and 2.1 of the first paragraph of section 9 also apply to the clearing house and sections 10 and 13 apply to its account representatives and account viewing agents, with the necessary modifications.
O.C. 1089-2015, s. 9.
18.3. When an application for registration meets the requirements of sections 18.1 and 18.2, the Minister opens a clearing house account for the clearing house in the electronic system.
O.C. 1089-2015, s. 9.
18.4. Any change to the information and documents provided under section 18.1 must be communicated to the Minister within 30 days and, if provided under section 18.2, immediately.
In addition, the clearing house must notify the Minister immediately if its activities are suspended by the regulatory authority that supervises it, or if supervision ceases. No transaction may be carried out in the account of the clearing house until the suspension has been lifted by the regulatory authority or until new supervision is established by the regulatory authority. If emission allowances are recorded in its account when supervision is suspended or ceases, they are returned to the emitter or participant who transfered them into the account.
O.C. 1089-2015, s. 9.
18.5. A clearing house may request the closure of its clearing house account in accordance with section 14.2, with the necessary modifications.
Section 16 also applies to an inactive clearing house account, with the necessary modifications.
O.C. 1089-2015, s. 9.
CHAPTER III
COVERAGE OF GREENHOUSE GAS EMISSIONS
19. Every emitter referred to in section 2 is required, in accordance with the terms and conditions of this Chapter, to cover each metric tonne CO2 equivalent of the verified emissions from an establishment or, if applicable, an enterprise referred to in the same section when its GHG emissions are equal to or exceed the emissions threshold, until 31 December following the third consecutive emissions report for which the emissions from the establishment or enterprise are below the emissions threshold or, where applicable, following the permanent closure of the establishment or the permanent stop in production of a reference unit if the emissions attributable to the other activities of the establishment have been below the emissions threshold for the last 3 years.
As for emitters referred to in subparagraph 2 of the second paragraph of section 2, they are bound by the obligation provided for in the first paragraph until 31 December of the first year covered by an enterprise’s verified emissions report, sent to the Minister, in which the enterprise’s GHG emissions are equal to zero.
The emitter is required to comply with the first paragraph
(1)  beginning with the compliance period starting on 1 January 2013, in the case of an emitter that on 1 January 2012 operates an establishment or, if applicable, an enterprise for which the reported emissions for 2009, 2010 or 2011, attributable to activities other than those referred to in subparagraph 2 of this paragraph, are equal to or exceed the emissions threshold;
(2)  beginning with the compliance period starting on 1 January 2015, in the case of the activities of an emitter referred to in subparagraph 2 of the second paragraph of section 2 whose verified emissions in connection with the fuel distributed for 2013 are equal to or exceed the emissions threshold;
(2.1)  beginning on 1 January 2016, in the case of an emitter for whom emissions attributable to fuel distribution activities in 2014 are equal to or exceed 25,000 metric tonnes CO2 equivalent;
(2.2)  beginning on 1 January 2016, in the case of an emitter for whom emissions attributable to fuel distribution activities in 2015 are equal to or exceed 25,000 metric tonnes CO2 equivalent;
(2.3)  beginning on 1 January 2016, in the case of an emitter who distributed 200 litres or more of fuel in 2015 but whose corresponding declared emissions are lower than 25,000 metric tonnes CO2 equivalent;
(3)  in the case where an emitter’s verified emissions are equal to or greater than the emissions threshold during a year after the year mentioned in subparagraph 1, beginning on 1 January of the year following the year in which the first report for emissions equal to or greater than the threshold, and for the years that follow 2020, beginning on 1 January of the year in which an emitter’s verified emissions are equal to or exceed the threshold;
(3.1)  beginning on 1 January of the year concerned, in the case where fuel distribution activities of an emitter are equal to or exceed the emissions threshold for 2016 or a subsequent year;
(4)  beginning in the year in which it becomes operational, in the case of a new facility referred to in subparagraph a of paragraph 11 of section 3.
When the operator of a covered establishment changes, the new operator is required, in place of the former operator, to cover all the GHG emissions from the establishment that have not been covered in accordance with this Chapter.
Notwithstanding subparagraphs 1 and 2 of the second paragraph, an emitter that ceases its activities permanently in the year preceding the year in which the compliance period referred to in those subparagraphs begins is not required to cover the emitter’s GHG emissions, provided it notifies the Minister in writing not later than 6 months following the start date of the period.
O.C. 1297-2011, s. 19; O.C. 1184-2012, s. 12; O.C. 1138-2013, s. 4; O.C. 902-2014, s. 14; O.C. 1089-2015, s. 10; 1125-2017O.C. 1125-2017, s. 24.
19.0.1. An emitter referred to in section 2.1 is bound, in accordance with the terms and conditions in this Chapter, to cover each tonne CO2 equivalent of the verified emissions of an establishment referred to in that section, as the case may be,
(1)  until 31 December of the last year of the compliance period during which the emitter informs the Minister, not later than 1 September of that last year, of its intent to request that the Minister cancel its registration in the system;
(2)  until 31 December of the year following the year during which GHG emissions are equal to or exceed the emissions threshold;
(3)  until 31 December following the third consecutive emissions reporting for which the emissions of that establishment are below the reporting threshold referred to in section 6.1 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15).
The emitter is bound by the obligation provided for in the first paragraph as of the following dates:
(1)  where the emitter’s registration in the system is done on or before 1 September of a given year, as of 1 January following that date;
(2)  where the emitter’s registration in the system is done after 1 September of a given year, as of 1 January of the second year following the year of registration in the system.
1125-2017O.C. 1125-2017, s. 25.
19.1. Where, on 1 August following the end of a compliance period, the verification report on the emissions report for 1 or more years of that compliance period does not allow to confirm in whole or in part the quantities of GHG emissions reported in accordance with the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15) and the relative importance threshold referred to in subparagraph 1 of the first paragraph of section 6.7 of that Regulation is reached, the emitter is required for those years to cover the increased quantity of GHG emissions as follows:
Total increased quantity of GHG emissions = total GHG emissions reported × (1+ RUGHG)
Where
RUGHG = Relative uncertainty of GHG emissions reported, calculated in accordance with paragraph 7.5 of section 6.9 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere.
Even if the emitter submits a verification report confirming compliance of the emissions report with the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere after the date provided for in the first paragraph, the emission allowances corresponding to the difference between the total increased quantity of GHG emissions and the total quantity of GHG emissions verified once again may not be recovered.
O.C. 1089-2015, s. 11.
20. To be valid for the purpose of covering GHG emissions, the emission allowances used to cover GHG emissions must meet the requirements of section 37 and must not have been issued for a year after the compliance period, except for offset credits, which may be used if they were issued in the first year following the year of expiry of the compliance period.
In addition, the total quantity of offset credits that the emitter may use to cover the GHG emissions of its covered establishment cannot exceed 8% of the GHG emissions to be covered for the compliance period.
O.C. 1297-2011, s. 20; O.C. 1184-2012, s. 13; O.C. 902-2014, s. 15.
21. On 1 November following expiry of a compliance period or, if that day is not a business day, on the first following business day, at 8:00 p.m., every emitter must have at least as many emission allowances in its compliance account as its verified emissions and, where applicable, as the emissions increased in accordance with the first paragraph of section 19.1 for every covered establishment during the compliance period or, where applicable, during the years following the last compliance period for which emissions coverage was required.
The Minister deducts the required emission allowances in chronological order, from the least recent to the most recent according to their year of issue and vintage, in the following order:
(1)  offset credits, up to the limit provided for in the second paragraph of section 20;
(1.1)  emissions units from the Minister’s reserve account, using units from categories C, B and A, in that order;
(2)  early reduction credits;
(3)  emission units other than units referred to in subparagraph 1.1.
The emission allowances deducted by the Minister in accordance with this section are placed in the Minister’s retirement account and are extinguished.
O.C. 1297-2011, s. 21; O.C. 1184-2012, s. 14; O.C. 1138-2013, s. 5; O.C. 902-2014, s. 16; O.C. 1089-2015, s. 12.
22. A failure by an emitter to cover the GHG emissions of a covered establishment on the expiry of the compliance deadline leads to the suspension of its general account and the application of an administrative sanction equal to 3 emission units or early reduction credits for each missing emission allowance needed to complete the coverage.
The Minister recovers the missing emission allowances by deducting an equivalent number of valid emission allowances from the emitter’s general account in the manner provided for in the second paragraph of section 21.
The Minister also recovers the emission units and early reduction credits required for the administrative sanctions referred to in the first paragraph in the following manner and order, until all the units have been recovered:
(1)  the Minister deducts 3 valid emission units or early reduction credits from the emitter’s general account for each missing emission allowance using reserve units from categories C, B and A, early reduction credits and units identified by vintage from the least recent to the most recent, in that order;
(2)  the Minister deducts 3 emission units issued for a year following the compliance period, from the most recent to the least recent, from the emitter’s compliance account for each missing emission allowance;
(3)  the Minister deducts 3 emission units issued for a year following the compliance period, from the most recent to the least recent, from the emitter’s general account for each missing emission allowance.
When the emitter’s accounts do not contain enough emission allowances to recover all or part of the missing emission allowances as well as emission units and early reduction credits required for the application of the administrative sanction, the Minister notifies the emitter, who must surrender them within 30 days from the failure to provide coverage.
Upon a failure to comply, if the emitter is eligible for the allocation without charge of emission units, the Minister removes a quantity equivalent to the emission allowances, emission units and early reduction credits referred to in the fourth paragraph from the quantity that would normally have been allocated to the emitter without charge for the following compliance period pursuant to Division II of Chapter II of Title III.
O.C. 1297-2011, s. 22; O.C. 1184-2012, s. 15; O.C. 902-2014, s. 17.
23. Every missing emission allowance, recovered and deducted in accordance with section 22, is placed in the Minister’s retirement account to be extinguished.
The emission units deducted following the application of the administrative sanction provided for in that section are placed in the Minister’s auction account to be auctioned at a later date, and early reduction credits deducted are placed in the Minister’s retirement account to be extinguished.
Once these actions have been taken, the suspension of the emitter’s general account is lifted.
O.C. 1297-2011, s. 23; O.C. 902-2014, s. 18; O.C. 1089-2015, s. 13.
23.1. An emitter who, in accordance with section 6.5 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), communicates a notice of correction to raise the quantity of GHG emissions reported in an emissions report filed in the previous 7 years must, for every compliance period that includes one of those years and for which the compliance deadline has expired, cover the GHG emissions that have not been covered by an equivalent number of additional emission allowances if the situation corresponds to one of the following criteria:
Criterion 1
[(GHGcorr - Allowancessurrendered)/ Allowancessurrendered] ≥ 0.05
Criterion 2
(GHGcorr - Allowancessurrendered) ≥ 5 000 metric tonnes CO2 equivalent
Where:
GHGcorr = Corrected GHG emissions, in metric tonnes CO2 equivalent;
Allowancessurrendered = Quantity of emission allowances surrendered for the compliance period to which the correction applies, expressed in metric tonnes CO2 equivalent.
Not later than 8:00 p.m. on the 180th day following the notice of correction or, if that day is not a business day, on the first following business day, the emitter must transfer into its compliance account the additional emission allowances, which must meet the following conditions:
(1)  emission allowances identified by vintage must be from the current year or a previous year;
(2)  the offset credits used, along with the offset credits already deducted for the compliance period during which the correction is recorded, must not exceed 8% of the GHG emissions to be covered for that period.
The Minister deducts the additional emission allowances required in the manner provided for in the second paragraph of section 21 and places them in the Minister’s retirement account to be extinguished.
If the additional emission allowances are not surrendered by the emitter in the time prescribed in the second paragraph, the provisions of sections 22 and 23 apply, with the necessary modifications.
No emission allowances will be reimbursed in the case of a notice of correction whose purpose is to reduce the emissions referred to in the first paragraph.
O.C. 902-2014, s. 19.
CHAPTER IV
TRANSACTIONS OF EMISSION ALLOWANCES
O.C. 1297-2011, c. IV; O.C. 1184-2012, s. 16.
24. An emission allowance may be traded only between emitters, participants and clearing houses registered with the Minister or a partner entity.
An emitter or a participant may only hold emission allowances for their own use and not on behalf of another person having an interest in or control the emission allowances.
In addition, only emission allowances recorded in a general account may be traded. Subject to section 15, once recorded in a compliance account, emission allowances may only be used to cover GHG emissions.
O.C. 1297-2011, s. 24; O.C. 1184-2012, s. 17; O.C. 1089-2015, s. 14.
25. Every emitter or participant who wishes to trade emission allowances with another emitter or participant must follow the procedure established in section 26 and send the Minister a transaction request containing the following information:
(1)  the general account number of the seller;
(2)  the general account number of the buyer;
(3)  the quantity, type and, where applicable, vintage of the emission allowances to be traded;
(4)  the settlement price of each type and, where applicable, each vintage of emission allowances, as well as the method used to determine the settlement price;
(5)  the type of emissions trading agreement, the date of signing of the agreement and the agreed upon trading date;
(6)  where applicable, all other transactions or products covered by the agreement, a description of those transactions or products, and the name and contact information of the other parties involved.
Despite subparagraph 4 of the first paragraph, an emitter or participant is not required to disclose the settlement price of the emission allowances when the transaction is between related entities or is a bundled transfer.
O.C. 1297-2011, s. 25; O.C. 1184-2012, s. 18; O.C. 1138-2013, s. 6; O.C. 902-2014, s. 20; 1125-2017O.C. 1125-2017, s. 26.
26. A transaction request for emission allowances must be proposed by one of the seller’s account representatives.
The transaction request is then submitted to all the seller’s other account representatives, for confirmation by one of them within 2 days of being submitted.
When the transaction request is confirmed, a notice is sent to all the seller’s account representatives and the request is submitted to the buyer’s account representatives, for acceptance by one of them within 3 days of the proposal of the transaction request.
Unless otherwise indicated by one of the account representatives or if the Minister has serious grounds to believe that an offence under this Regulation has been committed, once the transaction request has been accepted the emission allowances concerned by the request are transferred from the seller’s to the buyer’s general account.
At each step in the transaction request, the account representative concerned must attest to holding due authorization to complete the transaction for the emitter or participant, and that the information contained in the transaction request is true, accurate and complete.
The account representatives involved in the transaction of emission allowances must provide the Minister, on request and as soon as possible, with any additional information concerning the transaction.
O.C. 1297-2011, s. 26; O.C. 1184-2012, s. 18; O.C. 902-2014, s. 21.
26.1. Every emitter or participant who wishes to transfer emission allowances to a clearing house must, in accordance with the second paragraph, send the Minister a transaction request for the clearing house containing the following information:
(1)  the general account number of the seller;
(2)  the account number of the clearing house;
(3)  the quantity, type and, where applicable, vintage of the emission allowances to be traded;
(4)  the settlement price of each type and, where applicable, each vintage of emission allowances;
(5)  the type of emission allowances trading agreement and the transaction date scheduled;
(6)  where applicable, the codes of the exchange and of the contract.
The transaction request must be sent in accordance with the procedure established in section 26, with the necessary modifications, subject to the acceptance provided for in the third paragraph of that section which does not apply to that type of transaction.
O.C. 1089-2015, s. 15.
26.2. A clearing house that wishes to use emission allowances to compensate for a transaction must, in accordance with the procedure established in section 26.3, send the Minister an application for compensation containing the following information:
(1)  the account number of the clearing house;
(2)  the general account number of the emitter or participant who is compensated;
(3)  the quantity, type and, where applicable, vintage of the emission allowances used for compensation;
(4)  the settlement price of each type and, where applicable, each vintage of emission allowances;
(5)  the type of emission allowances trading agreement and the transaction date scheduled;
(6)  where applicable, the codes of the exchange and of the contract.
O.C. 1089-2015, s. 15.
26.3. An application for compensation must be proposed by one of the clearing house’s account representatives.
The application for compensation is then submitted to all the other account representatives at the clearing house for confirmation by one of them.
Once the application is confirmed, a notice to that effect is sent to all the account representatives and the emission allowances are transferred to the general account of the emitter or participant who is compensated.
The account representatives involved in an application for compensation of emission allowances must provide the Minister, on request and as soon as possible, with any additional information concerning the compensation.
O.C. 1089-2015, s. 15.
26.4. Emission allowances transferred to a clearing house account that are not used within 5 days for a transaction by an emitter or participant are returned to the seller.
O.C. 1089-2015, s. 15.
27. Every emitter who wishes to transfer emission allowances from the emitter’s general account to the emitter’s compliance account, or every emitter or participant who wishes to retire from the system emission allowances recorded in the emitter’s general account must send to the Minister a request including
(1)  the emitter’s or participant’s general, and where applicable, compliance account number;
(2)  the quantity, type and, where applicable, vintage of the emission allowances to be transferred or retired.
An emitter or a participant may retire no more than 10,000 emission units per year.
O.C. 1297-2011, s. 27; O.C. 1184-2012, s. 18; O.C. 1138-2013, s. 7; 1125-2017O.C. 1125-2017, s. 27.
27.1. A transfer or retirement request for emission allowances must be proposed by an account representative.
The transfer or retirement request is then submitted to all the other account representatives, for confirmation by one of them within 2 days of being submitted.
When the transfer or retirement request is confirmed, a notice is sent to all the emitter’s or participant’s account representatives.
Unless otherwise indicated by one of the account representatives or if the Minister has serious grounds to believe that an offence under this Regulation has been committed, once the transfer or retirement request has been confirmed the emission allowances concerned by the request are transferred from the emitter’s general account to the emitter’s compliance account, or from the emitter’s or participant’s general account to the Minister’s retirement account, where they are extinguished.
Account representatives who have sent a transfer or retirement request for emission allowances must provide the Minister, on request and as soon as possible, with any additional information concerning transfer or the retirement.
O.C. 1184-2012, s. 18; O.C. 1138-2013, s. 8; O.C. 902-2014, s. 22.
27.2. When a transaction cannot be completed because of an error or omission in connection with the information included in the request, because the request does not meet the requirements of one of sections 25 to 27.1, because an account does not contain enough emission allowances or because of any other reason, a notice is sent to the parties concerned within 5 working days following the failure to complete the transaction.
O.C. 1184-2012, s. 18; O.C. 1138-2013, s. 9; I.N. 2016-01-01 (NCCP).
28. No person holding privileged information on an emission allowance may trade that emission allowance, disclose the information or recommend that another person trade the emission allowance, except if the person has reason to believe that the information is known to the public or to the other party in the transaction.
However, the person may disclose the information or recommend that another person trade the emission allowance, if the person is required to disclose the information in the course of business, and if nothing leads the person to believe that the information will be used or disclosed in contravention of this section or section 29.
O.C. 1297-2011, s. 28.
29. No person prevented from trading an emission allowance pursuant to section 28 may use the privileged information in any other way, unless the person has reason to believe that the information is known to the public. In particular, the person may not carry out operations on futures contracts or other derivatives within the meaning of the Derivatives Act (chapter I-14.01) involving an emission allowance.
O.C. 1297-2011, s. 29.
30. A person with knowledge of material order information may not carry out or recommend that another person carry out a transaction involving an emission allowance, or disclose the information to any other person, except if
(1)  the person has reason to believe that the other person is already aware of the information;
(2)  the person must disclose the information in the course of business, and nothing leads the person to believe that it will be used or disclosed in contravention of this section;
(3)  the person carries out a transaction involving the emission allowances concerned by the information in order to perform a written obligation that the person contracted before becoming aware of the information.
For the purposes of this section, material order information is any information concerning an order to buy or an order to sell an emission allowance that could have a major impact on the price of an emission allowance.
O.C. 1297-2011, s. 30.
31. No person may disclose false or misleading information or information that must be filed pursuant to this Regulation, before it is filed, in order to carry out a transaction, in particular when it could influence the price of an emission allowance.
For the purposes of this section, false or misleading information is any information likely to mislead on an important fact, as well as the simple omission of an important fact; an important fact is any fact that may reasonably be believed to have a significant impact on the price or value of an emission allowance.
O.C. 1297-2011, s. 31.
32. The total number of emission units of the current or prior vintage, of emission units from the reserve account and of early reduction credits that an emitter or a participant may hold in its general account and, where applicable, its compliance account is subject to the holding limit calculated using equation 32-1:
Equation 32-1
HLi = 0.1 × Baseline + 0.025 × (Ci - Baseline)
Where:
HLi = Holding limit for year i;
0.1 = Maximum proportion of the number of emission units constituting the Baseline that an emitter or a participant may hold;
Baseline = 25,000,000;
0.025 = Maximum proportion of the number of emission units in excess of the Baseline that an emitter or a participant may hold;
Ci = Sum of the annual cap of emission units for year i set by order in accordance with section 46.7 of the Environment Quality Act (chapter Q-2) and the cap set by a partner entity;
i = Current year.
The total number of emission units of a vintage subsequent to the current year that an emitter or participant may hold in its general account and, where applicable, its compliance account is subject to the holding limit calculated using equation 32-2:
Equation 32-2
HLj = 0.1 × Baseline + 0.025 × (Cj - Baseline)
Where:
HLj = Holding limit for an emission unit of vintage j;
0.1 = Maximum proportion of the number of emission units constituting the Baseline that an emitter or participant may hold;
Baseline = 25,000,000;
0.025 = Maximum proportion of the number of emission units in excess of the Baseline that an emitter or participant may hold;
Cj = Sum of the annual cap of emission units for year j set by order in accordance with section 46.7 of the Environment Quality Act and of the cap set by a partner entity;
j = Year subsequent to the current year.
Despite the first paragraph, the emission units and early reduction credits recorded in the compliance account of an emitter and needed to cover estimated GHG emissions for the current year or emissions for preceding years are not subject to the holding limit.
Furthermore, an emitter or a participant that reaches or exceeds one-half of its holding limit must, at the Minister’s request, explain its strategy and the reason for holding the emission units concerned.
Every transaction request for emission units that would cause the buyer’s holding limit to be exceeded will be refused by the Minister.
When the holding limited is exceeded, the emitter or participant must, within 5 business days after the limit is exceeded, divest itself of the excess emission allowances, pay into its compliance account the emissions units or early reduction credits needed to cover its emissions for the current year or preceding years or, in the case of related entities, amend the distribution of the overall holding limit determined in accordance with section 33 in order to become compliant. Upon a failure to comply, the Minister takes back a quantity of emission units equivalent to the excess emission allowances in the following order:
(1)  the emission units from the Minister’s reserve account;
(2)  the early reduction credits;
(3)  the other emission units, chronologically, from the least recent to the most recent, according to their vintage.
The units referred to in subparagraphs 1 and 3 of the sixth paragraph are transferred to the Minister’s auction account and the early reduction credits are transferred to the Minister’s retirement account.
O.C. 1297-2011, s. 32; O.C. 1184-2012, s. 19; O.C. 1138-2013, s. 10; O.C. 902-2014, s. 23; 1125-2017O.C. 1125-2017, s. 28.
33. For the purposes of the holding limit referred to in section 32, related entities are considered to be a single entity with an overall holding limit that they must distribute among themselves by allotting percentage shares.
The distribution must be disclosed to the Minister when the related entities register for the system in accordance with subparagraph 3 of the first paragraph of section 9 or, in the case of a new business relationship within the meaning of subparagraph 1 of the second paragraph of that section, within 30 days from the creation of that relationship. The information must, however, be sent to the Minister not more than 40 days before an auction when one of the related entities wishes to be registered as a bidder.
O.C. 1297-2011, s. 33; O.C. 1184-2012, s. 20.
34. The Minister may, on the Minister’s own initiative, correct any material error that occurs in an account in the system. The Minister must inform the parties concerned as soon as possible, stating the reasons for the correction.
O.C. 1297-2011, s. 34; O.C. 1089-2015, s. 16.
35. The Minister posts, at least once every year, on the website of the department, a list of all emitters, participants and clearing houses registered for the system as well as a summary of transactions conducted the previous year.
O.C. 1297-2011, s. 35; O.C. 1184-2012, s. 21; O.C. 902-2014, s. 24; O.C. 1089-2015, s. 17.
TITLE III
EMISSION ALLOWANCES
CHAPTER I
GENERAL
36. Emission allowances are issued in electronic form and identified in a way that allows them to be differentiated, in particular by type.
Reserve emission units are also identified according to the categories provided for in the first paragraph of section 58, whereas other emission units as well as offset credits are also identified by vintage.
O.C. 1297-2011, s. 36; O.C. 1184-2012, s. 22; O.C. 902-2014, s. 25.
37. The following emission allowances may be traded through the system and used for compliance purposes:
(1)  every emission unit and early reduction credit referred to in this Title;
(2)  every offset credit issued by the Minister pursuant to subparagraph 2 of the first paragraph of section 46.8 of the Environment Quality Act (chapter Q-2);
(3)  every emission allowance issued by a partner entity, according to the rules for the equivalent types of emission allowances issued under this Regulation, as indicated in Appendix B.1
Despite the first paragraph, the following emission allowances may not be traded or used for compliance purposes:
(1)  any emission allowance that has been suspended, cancelled or extinguished by the Minister or by a partner entity;
(2)  any emission allowance that has been used for compliance purposes under another cap-and-trade system for GHG emission allowances or GHG emissions reduction program.
O.C. 1297-2011, s. 37; O.C. 1184-2012, s. 23.
CHAPTER II
GREENHOUSE GAS EMISSION UNITS
DIVISION I
GENERAL
38. Based on the cap on emission units set by order in accordance with section 46.7 of the Environment Quality Act (chapter Q-2), the Minister places in the Minister’s reserve account a quantity of emission units that may be used in adjusting the allocation made without charge in accordance with Division II or may be sold by mutual agreement in accordance with Division IV of this Chapter.
The quantity of emission units represents
(1)  1% of the emission units available under the cap set for the years 2013 and 2014;
(2)  4% of the emission units available under the cap set for the years 2015 to 2017;
(3)  7% of the emission units available under the cap set for the years 2018 to 2020; and
(4)  4% of the emission units available under the cap set for the years 2021 and following.
The Minister places the unreserved emission units in the Minister’s allocation account. The units may be allocated without charge in accordance with Division II of this Chapter.
The emission units in excess of the total estimated quantities that may be allocated without charge for a given year are placed in the Minister’s auction account to be sold in accordance with Division III of this Chapter.
O.C. 1297-2011, s. 38.
DIVISION II
ALLOCATION
39. An emitter operating a covered establishment and pursuing an activity referred to in Table A of Part I of Appendix C is eligible for the allocation of emission units without charge.
O.C. 1297-2011, s. 39.
40. The Minister estimates annually the total quantity of emission units that may be allocated without charge to an eligible emitter.
The estimated total quantity is calculated in accordance with Part II of Appendix C using, depending on the year concerned, equation 1-1 or 7-1, and replacing
(1)  the factors “PRi j”, “PRi”, “PR cu I”, “PR RSM i and “PR cath I” in equations 2-1, 2-9, 3-1, 3-10, 4-1, 4-8, 4-9, 4-15, 4-25, 4-31, 5-1, 5-2, 5-3, 6-2, 6-7, 6-8, 6-9, 6-10.1, 6-10.2, 6-10.5, 6-10.9, 6-12 to 6-16, 8-1, 9-1, 10-1, 11-1, 13-1 and 14-1 by the factors “PRi j -2”, “PRi-2”, “PR cu i-2”, “PR RSM i-2” and “PR cath i-2” which correspond to the total quantity of reference units produced or used in the year 2 years before the allocation year;
(2)  the factors “ECTOTAL I”, “GHGFP I” and “GHGO I” in equations 4-21, 4-37, 5-3, 6-10.1, 6-14, 6-15, 11-5 and 14-5 by the factors “ECTOTAL i-2”, “GHGFP i-2”, “GHGFP cu i-2” and “GHGO i-2”, which correspond respectively to the energy consumption, fixed process emissions and other emissions in the year 2 years before the allocation year;
(3)  the factors “ECNF TOTAL I”, “GHGNF FP I” and “GHGNF O I” in equations 6-10.3 and 6-10.4 by the factors “ECNF TOTAL i-2”, “GHGNF FP i-2” and “GHGNF O i-2”, which correspond respectively to the energy consumption, fixed process emissions and other emissions at the new facility in the year 2 years before the allocation year;
(4)  the factor “H2, I” of equation 6-10.2 by factor “H2,i-2”, which corresponds to the hydrogen consumption in the year 2 years before the allocation year;
(5)  the factor “Arecycl,i” in equations 6-12, 6-13 and 6-14 by the factor “Arecycl,i-2”, which corresponds to GHG emissions attributable to the carbon content of recycled secondary materials introduced into the process materials in the year 2 years before the allocation year.
Despite equations 4-1 to 4-8 in Part II of Appendix C, if the only data available are data on emissions for the year in which an establishment became operational, the Minister uses those data to estimate the emission units allocated without charge for the first year.
On 1 May 2013 and on 14 January of every following year, or, if that day is not a working day, on the first following working day, the Minister issues the emission units corresponding to 75% of the total estimated quantity of emission units that may be allocated without charge, calculated in accordance with this section.
When the operator of a covered establishment changes before 14 January of a given year, the emission units referred to in the fourth paragraph are allocated to the new operator if, not later than the business day immediately before that date, the former operator notified the Minister of the change pursuant to the first paragraph of section 17.
O.C. 1297-2011, s. 40; O.C. 1184-2012, s. 24; O.C. 1138-2013, s. 11; I.N. 2016-01-01 (NCCP); 1125-2017O.C. 1125-2017, s. 29.
41. After the filing of the emissions report for the year during which the issue referred to in the fourth paragraph of section 40 is made, an adjustment is made to the remaining 25% of the total estimated quantity of emission units that may be allocated without charge.
The Minister calculates the adjustment by subtracting the quantity of emission units issued from the actual total quantity of emission units that may be allocated without charge to an eligible emitter for the year covered by the emissions report, determined in accordance with Part II of Appendix C.
On 14 September of each year beginning in 2014 or, if that day is not a working day, on the first following working day, the Minister places, in the emitter’s general account, the quantity of emission units corresponding to any positive result of the adjustment calculation.
When the result of the adjustment calculation is negative, the Minister notifies the emitter who must, within 30 working days, place in its compliance account a quantity of emission units, of the vintage of the year for which the allocation referred to in the fourth paragraph of section 40 was made or of a prior vintage, equal to the excess quantity issued following the estimate made in accordance with that section; upon a failure to comply, the emission units are taken from the emitter’s general account. The emission units are then transferred to the Minister’s reserve account when units are required to be surrendered in accordance with the third paragraph of section 42, or transferred to the Minister’s auction account.
Upon a failure by the emitter to place the emission units in its compliance account within the time provided for in the fourth paragraph or to have enough emission units in the emitter’s general account, the Minister reduces the following allocation free of charge by an equivalent quantity of emission units.
When the operator of a covered establishment changes before 14 September of a given year, the new operator receives the allocation provided for in the third paragraph or, where applicable, meets the requirements of the fourth paragraph, if, not later than the business day immediately preceding that date, the former operator has notified the Minister of the change pursuant to the first paragraph of section 17.
O.C. 1297-2011, s. 41; O.C. 1184-2012, s. 25; O.C. 1089-2015, s. 18; I.N. 2016-01-01 (NCCP); 1125-2017O.C. 1125-2017, s. 30.
41.1. An emitter who, in accordance with section 6.5 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), communicates a notice of correction to raise the number of reference units reported in an emissions report filed for a year in the current compliance period is allocated, during the next allocation of emission units, additional units equal to the difference between the quantity calculated for the first emissions report and the quantity calculated for the corrected emissions report in accordance with Part II of Appendix C.
No additional emission units are allocated for a notice of correction to an emissions report for a year in a compliance period for which the compliance deadline has expired.
O.C. 902-2014, s. 26.
41.2. Where, on 1 August following the end of a compliance period, the verification report on the emissions report for 1 or more years of that compliance period does not allow to confirm in whole or in part the quantity of reference units reported in accordance with the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15) and the relative importance threshold referred to in subparagraph 2 of the first paragraph of section 6.7 of that Regulation is reached, the total allowance free of charge for those years is based on the adjusted value of the reported quantity of reference units, calculated as follows:
Total adjusted quantity of reference units = Total reported reference units × (1- RURU)
Where
RURU = Relative uncertainty of reported reference units, calculated in accordance with paragraph 7.5 of section 6.9 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere.
Even if the emitter submits a verification report confirming compliance of the quantity of reported reference units with the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere after the date provided for in the first paragraph, no emission unit will be allocated for a difference between the total adjusted quantity of reference units and the total quantity of reference units verified once again.
O.C. 1089-2015, s. 19.
42. The emission units allocated without charge in accordance with this Division are placed in the general account of the emitter.
The units come from the allocation account of the Minister or, if that account does not contain enough units, from the Minister’s reserve account using, in order, the Class C, B and A emission units as determined in section 58.
In the case of emission units from the reserve account referred to in the second paragraph, the category of emission unit is replaced by the same vintage of the allocation year. In addition, the reserve account is replenished using the emission units in excess of the total estimated quantity that may be allocated free of charge for a year that may be sold in accordance with Division III of this Chapter. The emission units paid into the reserve account in this way are identified as belonging to the category replenished.
O.C. 1297-2011, s. 42; O.C. 1184-2012, s. 26; O.C. 902-2014, s. 27.
43. The Minister may suspend the allocation of emission units without charge to any emitter that fails to comply with the provisions of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15) or with the provisions of this Regulation.
O.C. 1297-2011, s. 43.
44. (Revoked).
O.C. 1297-2011, s. 44; O.C. 1184-2012, s. 27; 1125-2017O.C. 1125-2017, s. 31.
DIVISION III
AUCTION
45. The Minister auctions emission units in a specific place or online, at most 4 times per year.
At least 60 days before an auction, the Minister publishes a notice of auction on the website of the Ministère du Développement durable, de l’Environnement et des Parcs and, if the Minister considers it appropriate, in a newspaper or other publication, stating the rules set out in this Regulation and including, in particular, the following information:
(1)  the place or Internet address, the date and the time of the auction;
(2)  the terms and conditions for registering as a bidder;
(3)  the form of a bid, and the procedure for submitting a bid;
(4)  the procedure for the auction;
(5)  the number and vintage of the emission units to be auctioned and the composition of each lot;
(6)  the minimum settlement price for the units, set in accordance with the third paragraph of section 49 and, in the case of a joint auction with a partner entity, the minimum price set by that entity and the procedure used to set a joint minimum price set out in subparagraph 2 of the fourth paragraph of section 49.
O.C. 1297-2011, s. 45; O.C. 1184-2012, s. 28.
46. Every emitter or participant registered in the system, except an emitter or a participant whose accounts have been suspended or revoked for a reason other than a failure to cover the GHG emissions of a covered establishment, may take part in an auction of emission units.
For that purpose, the emitter or participant must, at least 30 days before the date of the auction in which the emitter or participant wishes to take part, register with the Minister as a bidder by submitting the following information and documents:
(1)  the emitter or participant’s name, contact information and general account number;
(2)  if the emitter or participant is not a natural person, the names of its account representatives;
(3)  if the participant is a natural person, the person’s social insurance number;
(4)  the form of the financial guarantee that will be submitted pursuant to section 48.
In all cases, an emitter or a participant must, at least 40 days before the date of each auction, send the Minister an update of the following information:
(1)  all information or documents required under section 7 or 7.2 concerning the identity, ownership, administration and structure of the emitter’s or participant’s establishment or enterprise;
(2)  the existence of any business relationship referred to in section 9;
(3)  the allocation of the purchasing limit among the related entities;
(4)  the allocation of the holding limit among the related entities.
Any change made to the information referred to in subparagraphs 3 and 4 of the fourth paragraph less than 30 days before the date of the auction, results in the the emitter or participant being refused participation in the auction.
O.C. 1297-2011, s. 46; O.C. 1184-2012, s. 29; O.C. 902-2014, s. 28; O.C. 1089-2015, s. 20; 1125-2017O.C. 1125-2017, s. 32; I.N. 2017-12-31.
47. The Minister may refuse to register an emitter or a participant for any auction if, when applying for registration for the system or for a previous auction or sale by mutual agreement, the emitter or participant provided false or misleading information, omitted to disclose information required by this Regulation, or contravened a rule of procedure for the auction or sale by mutual agreement.
O.C. 1297-2011, s. 47.
48. Every bidder must, at least 12 days before the date of the auction, submit a financial guarantee to the Minister.
The guarantee must be valid for a period of at least 26 days following the date of the auction and must be provided in the form of
(1)  bank transfer;
(1.1)  an irrevocable letter of credit issued by a bank constituted under the Bank Act or by a financial services cooperative constituted under the Act respecting financial services cooperatives;
(2)  a letter of guarantee issued by a bank constituted under the Bank Act or by a financial services cooperative constituted under the Act respecting financial services cooperatives;
(3)  (subparagraph revoked);
(4)  (subparagraph revoked).
The guarantee must be submitted in Canadian dollars. However, in the case of an auction for which the required guarantee is held jointly with a partner entity in the United States, the guarantee may also be submitted in US dollars.
If the Minister has delegated the administration of the financial services for the system in accordance with section 46.13 of the Environment Quality Act (chapitre Q-2), the financial guarantee must be made out to the delegatee and or, where applicable, the delagatee’s financial institution, and deposited with the delagatee or the financial institution.
O.C. 1297-2011, s. 48; O.C. 1184-2012, s. 30; O.C. 1138-2013, s. 12; O.C. 902-2014, s. 29; O.C. 1089-2015, s. 21; 488-2017O.C. 488-2017, s. 26.
49. The auction of emission units consists of a single round of bidding, using sealed bids.
Except for the last lot of emission units, which may consist of a lesser quantity, the emission units are auctioned in lots of 1,000 emission units of the same vintage when the units belong to the vintage for a subsequent year, and in lots of 1,000 emission units of various vintages when the units belong to the vintage for the current or a previous year and are sold in accordance with section 54.
The minimum price of the emission units is set
(1)  at $10 per emission unit, for auctions conducted in 2012;
(2)  for auctions conducted in any year after 2012, the price is set annually using the minimum price set for the previous year increased by 5% and adjusted in the manner provided for in section 83.3 of the Financial Administration Act (chapter A-6.001), as per the equation below:
MPt = MP(t-1) × (1 + 0.05 + Ir)
Where:
MPt = Minimum price set for a year;
MP(t-1) = Minimum price set for the previous year;
Ir = Indexation rate.
If the auction is conducted jointly with a partner entity,
(1)  the lots may contain emission units from each of the partner entities;
(2)  the joint minimum price of the emission units is the higher, on the day of the auction, of the price set under the third paragraph and the price set by the partner entity, at the daily average exchange rate published on the website of the Bank of Canada on the day prior to the sale.
A bid submitted at less than the minimum price set in accordance with the third and fourth paragraphs will be refused.
O.C. 1297-2011, s. 49; O.C. 1184-2012, s. 31; O.C. 1138-2013, s. 13; O.C. 902-2014, s. 30; 1125-2017O.C. 1125-2017, s. 33.
50. During an auction, the account representative of a bidder may submit more than one bid, subject to the terms and conditions specified in the notice published in accordance with the second paragraph of section 45, stating the quantity of lots requested and the price offered per emission unit in dollars and whole cents, provided the maximum amount of all the bidder’s bids does not exceed the amount of the guarantee submitted in accordance with section 48.
For the purposes of the first paragraph, the maximum amount of all a bidder’s bids is calculated as follows:
(1)  by determining, for each bid submitted by the bidder, the value of a lot by multiplying the price offered for the lot by the total quantity of bids submitted at that price or at a higher price;
(2)  the maximum amount of a bidder’s bids corresponds to the maximum value of the lots calculated under subparagraph 1.
The total quantity of emission units of the current or a prior vintage or of a vintage subsequent to the current year that may be purchased by the same bidder at each auction is, however, limited to:
(1)  25% of the units to be auctioned in the case of an emitter; and
(2)  4% of the units to be auctioned in the case of a participant.
Bidders that are related entities have an overall purchasing limit. However, the purchasing limit for a group of participants related to an emitter may not exceed 4%.
In accordance with subparagraph 3 of the first paragraph of section 9, the related entities must indicate to the Minister the allocation of the overall purchasing limit among the related entities, by percentage.
If the auction is conducted jointly with a partner entity, the bids must be submitted in the same currency as the financial guarantee submitted in accordance with section 48.
O.C. 1297-2011, s. 50; O.C. 1184-2012, s. 32; O.C. 1138-2013, s. 14; O.C. 902-2014, s. 31.
51. A bidder or participant must not disclose whether or not it is taking part in an auction, or any other confidential information relating to its participation in an auction, including:
(1)  its identity;
(2)  its bidding strategy;
(3)  the amount of its bids and the quantity of emission units concerned;
(4)  the financial information submitted to the Minister.
In addition, a bidder that retains the services of an advisor to develop its bidding strategy must ensure that the advisor does not disclose any of the information listed in the first paragraph and does not coordinate the bidding strategy of any other bidder.
O.C. 1297-2011, s. 51; O.C. 902-2014, s. 32; 1125-2017O.C. 1125-2017, s. 34.
52. At the close of the auction, when the total bids submitted by a bidder exceed that bidder’s holding limit determined in accordance with sections 32 and 33 or its purchase limit determined in accordance with section 50, the Minister removes from the bidder’s bids the quantity of excess lots, beginning with the lots awarded at the lowest price.
Notwithstanding the first paragraph, when an emitter’s total bid exceeds its holding limit but the number of emission units and early reduction credits in its compliance account is below the quantity referred to in the third paragraph of section 32, the emitter’s bids are accepted up to that quantity.
When a bid submitted by a bidder takes the maximum value of the bidder’s bids to beyond the amount of its financial guarantee submitted in accordance with section 48, the Minister removes the excess lots from the bid.
The lots removed pursuant to the third paragraph are then re-evaluated based on the prices offered in the bids submitted by all the bidders, by descending value, beginning with the price immediately below the price in the bid that exceeded the bidder’s guarantee. The lots are considered by the Minister to be new bids submitted by the bidder when, at a given price, the re-evaluation means that their maximum value does not exceed the amount of the financial guarantee submitted.
The Minister then awards emission units, beginning with the bidders that submitted the highest bids, until all available units have been awarded.
The final sale price per emission unit is, for all the emission units put up for auction, the lowest price bid for which the Minister awards units.
When more than 1 bid has been submitted at that price, and the total quantity of the bids is greater than the quantity of emission units available, the Minister divides the emission units between the bidders at that price
(1)  by establishing the share of each bidder by dividing the quantity of emission units requested by each bidder by the total quantity of units bid at that price;
(2)  by determining the number of emission units to be awarded to each bidder by multiplying the bidder’s share by the quantity of emission units available, rounding down to the nearest whole number;
(3)  when emission units remain to be awarded, by assigning a random number to each bidder and by awarding 1 emission unit per bidder, in ascending order of the numbers assigned, until all the emission units have been awarded.
When the auction is a joint auction, the final sale price is rounded off to the nearest cent of the reference currency used by the partner entities, using the application conversion rate.
O.C. 1297-2011, s. 52; O.C. 1184-2012, s. 33; O.C. 1138-2013, s. 15; O.C. 902-2014, s. 33.
53. Within 7 days after the results of the auction are sent to the bidders, every winning bidder must pay in full, by transfer, for the emission units awarded in accordance with section 52. If the financial guarantee has been submitted in the form provided for in subparagraph 1 of the second paragraph of section 48, the payment is withheld from the guarantee.
If the emission units are not paid for in full in the time prescribed under the first paragraph, the Minister withholds the amount owed from the financial guarantee provided in accordance with section 48. When more than one type of guarantee has been provided, the Minister uses the guarantees in the order set out in the second paragraph of that section.
Upon receiving payment from a winning bidder, made out to the Minister of Finance, or after applying all or part of a winning bidder’s guarantee used, the Minister records the emission units awarded in the bidder’s general account and, in the case referred to in the second paragraph of section 52, in the winning bidder’s compliance account.
All or part of a guarantee provided in accordance with section 48 that has not been used for the purposes of an auction is returned to the bidder.
The amounts collected during the auction are paid into the Green Fund established under the Act respecting the Ministère du Développement durable, de l’Environnement et des Parcs (chapter M‑30.001).
O.C. 1297-2011, s. 53; O.C. 1184-2012, s. 34; O.C. 1138-2013, s. 16; O.C. 902-2014, s. 34; S.Q. 2017, c. 4, s. 265.
54. Emission units of the vintage of the current or a previous year that remain unsold after an auction may be put up for sale as soon as the final sale price of the emission units has been above the minimum price for 2 auctions.
Emission units of the vintage of a year subsequent to the year of the auction are put up for sale again when their vintage becomes the vintage of the current year.
However, the quantity of emission units put up for sale again in accordance with the first paragraph cannot exceed 25% of the quantity of emission units initially planned for the auction.
O.C. 1297-2011, s. 54; O.C. 1184-2012, s. 34; O.C. 902-2014, s. 35.
55. The Minister publishes a summary of the auction within 45 days on the website of the Ministère du Développement durable, de l’Environnement et des Parcs, including the following information:
(1)  the names of the persons registered as bidders;
(2)  the settlement price of the emission units;
(3)  the total quantity and distribution of the units sold, in non-nominative form.
O.C. 1297-2011, s. 55.
DIVISION IV
SALE BY MUTUAL AGREEMENT
56. Only emitters registered in the system in accordance with this Regulation, having a covered establishment in Québec and not holding emission units in their general account that can be used to cover GHG emissions for the current compliance period are eligible for a sale of emission units by mutual agreement in accordance with this Division.
O.C. 1297-2011, s. 56; O.C. 1184-2012, s. 35.
57. The Minister organizes a sale of emission units by mutual agreement in a determined place or online, at most 4 times per year.
At least 60 days before a sale by mutual agreement, the Minister publishes a notice of sale by mutual agreement on the website of the Ministère du Développement durable, de l’Environnement et des Parcs and, if the Minister considers it appropriate, in a newspaper or other publication, including the following information:
(1)  the place or Internet address, the date and the time of the sale by mutual agreement;
(2)  the terms and conditions for registering as a purchaser;
(3)  the form of an offer, and the procedure for submitting an offer;
(4)  the procedure for the sale by mutual agreement;
(5)  the number of emission units available for sale for each category;
(6)  the settlement price for the units.
O.C. 1297-2011, s. 57; O.C. 1184-2012, s. 36.
58. Until 31 December 2020, the emission units placed in the reserve account are divided equally into 3 categories and are sold at the following prices, increased annually by 5% since 2014 and adjusted from that date in the manner provided for in section 83.3 of the Financial Administration Act (chapter A-6.001):
(1)  for reserve emission units in Category A, $40 per emission unit;
(2)  for reserve emission units in Category B, $45 per emission unit;
(3)  for reserve emission units in Category C, $50 per emission unit.
As of 1 January 2021, the emission units referred to in the first paragraph form a single category and for the year 2021, their price is calculated as per the equation below:

PR2021 = PM2021 + M2021

Where:
PR2021 = Price of the emission units of the reserve for 2021;
PM2021 = Minimum price of the emission units that are auctioned for the year 2021;
M2021 = Fixed amount for the year 2021, calculated according to the equation in the third paragraph.
The fixed amount referred to in the equation in the second paragraph is calculated according to the following equation:

M2021 = (PRc, 2020 – PM2020) x (1 + Ti2021)

Where:
M2021 = Fixed amount for the year 2021;
PR c, 2020 = Price of the emission units in the category C reserve, for the year 2020;
PM2020 = Minimum price of the emission units auctioned for the year 2020;
Ti2021 = Annual adjustment rate for the year 2021, calculated in the manner set out in section 83.3 of the Financial Administration Act (chapter A-6.001).
As of 1 January of the year 2022, the price of emission units in the reserve is calculated according to the following equation:

PRt = PMt + Mt-1 x (1+Ti)

Where:
PRt = Price of the emission units in the reserve for the year t;
t = Current year;
PMt = Minimum price of the emission units auctioned for the year t;
Mt-1 = Fixed amount of the year preceding year t, calculated using the equation provided for in the fifth paragraph;
Ti = Annual adjustment rate for the current year, calculated in the manner set out in section 83.3 of the Financial Administration Act (chapter A-6.001).
The fixed amount referred to in the equation provided for in the fourth paragraph is calculated using the following equation:

Mt-1 = (PRt-1 – PMt-1) x (1 + Ti)

Where:
Mt-1 = Fixed amount for the year preceding year t;
T = Current year;
PRt-1 = Price of the emission units in the reserve for the year t-1;
PMt-1 = Price of the emission units auctioned for the year t-1;
Ti = Annual adjustment rate for the current year, calculated in the manner set out in section 83.3 of the Financial Administration Act (chapter A-6.001).
Despite the second and fourth paragraphs, beginning on 1 January 2021, the emission units are not necessarily sold at the price calculated pursuant to those paragraphs, but at the higher of the price set by partner entities and the price calculated pursuant to those paragraphs, according to the daily average exchange rate of the Bank of Canada published on its website, in force on the fifth business day preceding the date of publication of that price on the Department’s website. That publication is done yearly on the first business day of December.
O.C. 1297-2011, s. 58; O.C. 902-2014, s. 36; 1125-2017O.C. 1125-2017, s. 35.
59. Every emitter that wishes to purchase emission units at a sale by mutual agreement must, at least 30 days before the sale, register with the Minister as a purchaser by submitting the following information and documents:
(1)  the emitter’s name, contact information and compliance account number;
(2)  the names of the emitter’s account representatives;
(3)  a financial guarantee in Canadian dollars, valid for a period of at least 26 days following the date of the sale, in one of the forms referred to in the second paragraph of section 48.
In all cases, an emitter must, at least 40 days before the date of each sale by mutual agreement, send the Minister an update of the following information:
(1)  all information or documents required under section 7 or 7.2 concerning the identity, ownership, administration and structure of the emitter’s establishment or enterprise;
(2)  the existence of any business relationship referred to in section 9;
(3)  the allocation of the holding limit among the related entities.
Any change is made to the information referred to in subparagraph 3 of the third paragraph less than 30 days before the date of the sale by mutual agreement, results in the the emitter being refused participation in the sale.
O.C. 1297-2011, s. 59; O.C. 1184-2012, s. 37; O.C. 1138-2013, s. 17; O.C. 902-2014, s. 37; O.C. 1089-2015, s. 22; 1125-2017O.C. 1125-2017, s. 36.
60. The Minister may refuse to register an emitter for a sale by mutual agreement if, when applying for registration for the system or for a previous sale by mutual agreement or auction, the emitter provided false or misleading information, omitted to disclose information required by this Regulation, or contravened a rule of procedure for the sale by mutual agreement or auction.
O.C. 1297-2011, s. 60.
60.1. The sale by mutual agreement takes place in a single round, using sealed offers.
The emission units are put on sale in lots of 1,000 units of the same category.
During a sale by mutual agreement, an emitter’s account representative may submit more than 1 offer, in Canadian dollars and in the form and using the procedure set out in the notice published in accordance with the second paragraph of section 57, indicating the number of lots requested in each category.
When the total offers submitted by a purchaser exceed the quantity of emission units put on sale or the purchaser’s holding limit determined in accordance with sections 32 and 33 or exceed the value of the financial guarantee submitted in accordance with subparagraph 3 of the first paragraph of section 59, the Minister removes from the purchaser’s offers the quantity of excess lots, beginning with the offers made at the lowest price.
O.C. 1184-2012, s. 38; O.C. 1138-2013, s. 18.
61. At the close of the sale by mutual agreement, the Minister sells the reserve emission units by allocating the units from categories A, B and C, in that order.
When the total number of offers to purchase for a category of reserve emission units is equal to or below the quantity of emission units available, the Minister allocates the emission units among the purchasers based on the offers received.
However, when the total of the offers to purchase for a given category is in excess of the quantity of emission units available, the Minister allocates the emission units
(1)  by establishing the share of each purchaser by dividing the quantity of emission units requested in their offer to purchase by the total of the offers to purchase for that category; and
(2)  by determining the number of emission units to be assigned to each purchaser by multiplying each purchaser’s share by the quantity of emission units available, rounding down to the nearest whole number;
(3)  when emission units remain to be awarded, by assigning a random number to each purchaser and by awarding 1 emission unit per purchaser, in ascending order of the numbers assigned, until all the emission units have been awarded.
O.C. 1297-2011, s. 61; O.C. 1184-2012, s. 39; O.C. 902-2014, s. 38.
62. Within 7 days after the results of the sale are sent to the purchasers, every purchaser must pay in full, by transfer, for the emission units awarded in accordance with section 61. If the financial guarantee submitted in accordance with subparagraph 3 of the first paragraph of section 59 was in the form provided for in subparagraph 1 of the second paragraph of section 48, the payment is withheld from the guarantee.
If the emission units are not paid for in full in the time prescribed under the first paragraph, the Minister withholds the amount owed from the financial guarantee provided in accordance with subparagraph 3 of the first paragraph of section 59. When more than one type of guarantee has been provided, the Minister uses the guarantees in the order set out in the second paragraph of section 48.
Upon receiving payment from a purchaser, made out to the Minister of Finance, or after applying all or part of a purchaser’s guarantee, the Minister records the emission units sold in the purchaser’s compliance account.
The amounts collected during a sale by mutual agreement are paid into the Green Fund established under the Act respecting the Ministère du Développement durable, de l’Environnement et des Parcs (chapter M‑30.001).
O.C. 1297-2011, s. 62; O.C. 1184-2012, s. 40; O.C. 1138-2013, s. 19; S.Q. 2017, c. 4, s. 266.
63. All or part of a guarantee provided in accordance with subparagraph 3 of the first paragraph of section 59 that has not been used for the purposes of a sale by mutual agreement is returned to the purchaser.
O.C. 1297-2011, s. 63; O.C. 1184-2012, s. 41.
64. Emission units that remain unsold after a sale by mutual agreement are retained for a sale at a later date.
O.C. 1297-2011, s. 64.
64.1. The Minister publishes a summary of the sale by mutual agreement within 45 days on the website of the Ministère du Développement durable, de l’Environnement, de la Faune et des Parcs, including the following information:
(1)  the names of the persons registered as purchasers;
(2)  the settlement price of the emission units;
(3)  the total quantity and distribution of the units sold, in non-nominative form.
O.C. 1138-2013, s. 20.
CHAPTER III
EARLY REDUCTION CREDITS
65. Reductions in GHG emissions made during the eligibility period starting on 1 January 2008 and ending on 31 December 2011 are eligible for early reduction credits.
The period during which the reductions are recorded, hereafter referred to as the reduction period, must correspond to the 4 full calendar years of the eligibility period or must have started on 1 January 2009, 2010 or 2011 and ended without interruption on 31 December 2011.
The reference period used to determine reductions in GHG emissions runs from 1 January 2005 to 31 December 2007, inclusively.
O.C. 1297-2011, s. 65.
66. Every emitter referred to in the first paragraph of section 2 that is required to cover its GHG emissions starting with the compliance period starting on 1 January 2013 is eligible for early reduction credits if the reductions
(1)  result directly from an action or decision of the emitter and began during the eligibility period determined in the first paragraph of section 65;
(2)  are made in one of the emitter’s covered establishments;
(3)  reduce the GHG emissions that the emitter is required to cover pursuant to section 19;
(4)  belong to and can be demonstrated by the emitter;
(5)  are calculated using the same calculation method and the same factors for each of the years 2005 to 2011;
(6)  represent at least 1 metric tonne CO2 equivalent;
(7)  do not result from a decrease in production or the closure of an establishment, or from an increase in GHG emissions at another establishment located in Québec or elsewhere;
(8)  are voluntary, meaning that they were not made in response to a legislative or regulatory provision, a permit or another type of authorization;
(9)  are permanent and irreversible;
(10)  are additional, meaning that they meet the following conditions:
(a)  the average annual GHG emissions of the establishment during the reduction period are below those of the reference period;
(b)  the average intensity compared to at least 1 reference unit referred to in Table B of Part I of Appendix C during the reduction period, calculated using equation 66-1 below, is below the average intensity for the reference period, calculated using equation 66-2:
Equation 66-1
Equation 66-2
Where:
I Reduction j = Average intensity of GHG emissions for reference unit j during the reduction period;
I Reference j = Average intensity of GHG emissions for reference unit j during the reference period;
j = Reference unit for the establishment referred to in Table B of Part I of Appendix C;
GHGij = GHG emissions of the establishment, relating to the production or use of reference unit j for year i, in metric tonnes CO2 equivalent;
i = Year;
n = First year of the reduction period;
Pij = Annual quantity of reference units j produced or used by the establishment for year i;
(11)  are verifiable; and
(12)  have not been credited or financed, in whole or in part, under another cap-and-trade system for GHG emission allowances or a reduction program for GHG emissions.
However, reductions in GHG emissions resulting from on-site transportation activities and the sequestration of GHG emissions are not eligible for early reduction credits.
O.C. 1297-2011, s. 66; O.C. 1184-2012, s. 42.
67. In addition to the conditions set out in sections 65 and 66, to be eligible for early reduction credits, a reduction resulting from a project to substitute a low-GHG fuel for a fuel must also meet one of the following conditions:
(1)  the average purchase cost of the substitute fuel or combustible paid by the emitter during the reduction period must be higher than the average cost of the fuel substituted during the reduction period;
(2)  the emitter must have made an investment, other than an equipment maintenance investment, to modify or replace equipment in order to substitute the fuel during the eligibility period.
O.C. 1297-2011, s. 67.
68. An emitter that wishes to be issued early reduction credits must send the Minister, not later than 31 May 2013, an application containing the following information and documents:
(1)  the emitter’s name, contact information and account numbers;
(2)  a description of the activities pursued at the emitter’s establishment where the reductions have occurred;
(3)  a description of the reduction project and proof that it meets the conditions set out in sections 65 to 67;
(4)  the dates of the reduction period during which the reductions in GHG emissions occurred;
(5)  the quantity of the GHG emission reduction, in metric tonnes CO2 equivalent, calculated using one of the following methods:
(a)  one of the calculation methods provided for in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15);
(b)  a mass balance calculation method, or a method recognized by the industry and meeting the requirements of the ISO 14064-2 standard;
(6)  all the information and documents used to calculate GHG emissions in accordance with paragraph 5;
(7)  a verification report on the project and the reductions, carried out by an organization accredited to ISO 14065 by a member of the International Accreditation Forum under an ISO 17011 program, confirming a reasonable level of assurance under the ISO 14064-3 standard that the reduction meets the conditions of this Chapter;
(8)  the information needed to calculate the maximum quantity of early reduction credits provided for in section 69;
(9)  the signature of the chief officer of the emitter and the date of the application.
O.C. 1297-2011, s. 68; O.C. 1184-2012, s. 43.
69. The maximum quantity of early reduction credits that may be issued to an emitter that meets the requirements of this Chapter is calculated using equations 69-1 to 69-5:
Equation 69-1
Where:
ERC max = Maximum quantity of early reduction credits that may be issued;
NY = Number of calendar years included in the reduction period;
k = Total number of reference units of the establishment referred to in Table B of Part I of Appendix C;
j = Reference unit;
E Reference (j) = Average annual GHG emissions resulting from the production or use of reference unit j during the reference period, calculated using equation 69-2, in metric tonnes CO2 equivalent;
E Reduction (j) = Average annual GHG emissions resulting from the production or use of reference unit j during the reduction period, calculated using equation 69-3, in metric tonnes CO2 equivalent;
P j = - 1 if P Reference (j) ≤ P Reduction (j);
- (P Reduction (j) /P Reference (j) if P Reference (j) > P Reduction (j);
Where: P Reference (j) = Average annual quantity of reference units j produced or used during the reference period, calculated using equation 69-4;
P Reduction (j) = Average annual quantity of reference units j produced or used during the reduction period, calculated using equation 69-5.
Equation 69-2
Where:
E Reference (j) = Average annual GHG emissions resulting from the production or use of reference unit j during the reference period, in metric tonnes CO2 equivalent;
E i j = GHG emissions resulting from the production or use of reference unit j for year i, in metric tonnes CO2 equivalent;
j = Reference unit;
i = Each year included in the reference period, namely 2005, 2006 or 2007;
Equation 69-3
Where:
E Reduction (j) = Average annual GHG emissions resulting from the production or use of reference unit j during the reduction period, in metric tonnes CO2 equivalent;
E i j = GHG emissions resulting from the production or use of reference unit j for year i, in metric tonnes CO2 equivalent;
i = Each year included in the reduction period, namely 2008, 2009, 2010 and 2011;
j = Reference unit;
m = Year in which the reduction period begins;
n = Number of consecutive years in the reduction period;
Equation 69-4
Where:
P Reference (j) = Average annual quantity of reference units produced or used during the reference period;
P i j = Quantity of reference units produced or used during year i;
i = Each year included in the reference period, namely 2005, 2006 or 2007;
j = Reference unit;
Equation 69-5
Where:
P Reduction (j) = Average annual quantity of reference units produced or used during the reduction period;
P i j = Quantity of reference units produced or used during year i;
i = Each year included in the reduction period, namely 2008, 2009, 2010 or 2011;
j = Reference unit;
m = Year in which the reduction period begins;
n = Number of consecutive years in the reduction period.
O.C. 1297-2011, s. 69.
70. The Minister issues, to every emitter that meets the conditions of this Chapter, a quantity of early reduction credits corresponding to the lesser of
(1)  the quantity calculated in accordance with section 69; and
(2)  the quantity corresponding to the reductions that meet the conditions of this Chapter.
The credits are issued to the emitter’s general account by the Minister not later than 14 January 2014.
O.C. 1297-2011, s. 70; O.C. 1184-2012, s. 44.
CHAPTER IV
OFFSET CREDITS
O.C. 1184-2012, s. 45.
70.1. The Minister keeps and publishes, on the website of the Ministère du Développement durable, de l’Environnement, de la Faune et des Parcs, a public register of registered offset credit projects that contains the names and professional contact information of promoters, the name of the promoter’s enterprise, information related to the project submitted with the application for registration, project reports and verification reports submitted in accordance with this Chapter, and information on project status.
O.C. 1138-2013, s. 21; O.C. 902-2014, s. 39.
70.2. GHG emission reduction projects referred to in a protocol appearing in Appendix D, that began on or after 1 January 2007, are eligible for the issue of offset credits.
Only projects implemented in Québec are eligible for the issue of offset credits under the first paragraph, except if otherwise provided for in a protocol.
Subject to any specific period provided for in a protocol, an offset credit project must be conducted during a period of not more than 10 consecutive years. The period constitutes, for the purposes of this Chapter, a crediting period for the issue of offset credits, also called a crediting period , during which the project remains eligible until the expiry of the period.
At the expiry of that period, the promoter may, in accordance with this Chapter, request the renewal of the offset credit project, for the period applicable to this type of project, when the project still meets the conditions of section 70.3.
For the purposes of this Chapter, an offset credit project is considered to begin on the date of the first reductions in GHG emissions resulting from the project.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 40; 1125-2017O.C. 1125-2017, s. 37.
70.3. An offset credit project must meet the following conditions:
(1)  it must be carried out by a promoter registered for the system in accordance with section 70.4, and the reductions in GHG emissions must result directly from an action or decision by the promoter;
(2)  it must be carried out in accordance with the applicable protocol appearing in Appendix D and meet the specified conditions;
(3)  the reductions in GHG emissions resulting from the project must belong to the promoter, and the promoter must be able to demonstrate that fact;
(4)  the reductions in GHG emissions must occur only within the boundaries of the project site and with regard to the GHG sources, sinks and reservoirs targeted by the project;
(5)  the reductions in GHG emissions must be permanent and irreversible;
(6)  the reductions in GHG emissions must be additional, that is that they meet the following conditions:
(a)  they must result from a project that is voluntary, that is that it is not being carried out, at the time or registration of renewal, in response to a legislative or regulatory provision, a permit or other type of authorization, an order made under an Act or regulation, or a court decision;
(b)  they must result from a project that goes beyond the current practices described in the applicable protocol for the project;
(7)  the reductions in GHG emissions for which offset credits are requested have not already received credit under this Regulation or another GHG emission reduction program;
(8)  the project must take place in a territory and geographic zone covered by the applicable protocol;
(9)  the GHG emission reductions must amount to at least 1 metric tonne CO2 equivalent;
(10)  the GHG emission reductions must be calculated in accordance with the methods prescribed in the applicable protocol listed in Appendix D, taking into account all adjacent GHG sources, sinks and reservoirs;
(11)  the GHG reductions resulting from the project must not be wholly or partly compensated by increases in GHG emissions occurring outside the boundaries of the project;
(12)  the reduced GHG emissions must be verifiable, that is that they can be objectively assessed by a verifier in accordance with this Chapter;
(13)  the activities carried out under the project must meet all the applicable requirements for the type of project and the place where it is carried out.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 41.
70.4. Only an emitter or participant person domiciled in Québec, in the case of a natural person, or having an establishment in Québec, in other cases, may act as the promoter of an offset credit project.
O.C. 1184-2012, s. 45.
70.5. A promoter wishing to be issued offset credits for a project must, not later than 18 months after the project begins but not exceeding the date of submission of the first report for the project referred to in the third paragraph, apply to the Minister for the project to be registered in the register of offset credit projects by submitting the promoter’s name and professional contact information, the name of the promoter’s enterprise, the promoter’s account numbers and the following project information:
(1)  where applicable, the name and contact information of the person responsible for the promoter’s activities;
(2)  the title and a summary description of the project;
(3)  the protocol applicable to the project, referred to in Appendix D;
(4)  if the application is for a new project or is an application for renewal;
(5)  if the application is for a single project and, if so, the location of the project site;
(6)  if the application is for an aggregation of projects and, if so, the number of projects involved;
(7)  an estimate of the annual and total GHG emissions to be reduced in accordance with this Regulation and the applicable protocol, in metric tonnes CO2 equivalent;
(8)  the duration of the project and the estimated project commencement date;
(9)  the signature of the promoter and the date of the application for registration as well as a declaration attesting that the information provided is accurate.
In the case of a project to reduce GHG emissions that began before a protocol applicable to that type of project was included in Appendix D, the promoter must send an application for registration to the Minister in the 3 years following the date of coming into force of such a protocol.
Not later than 18 months after the project begins, the promoter must submit a first project report to the Minister covering the first project year, complying with sections 70.14 to 70.19 and including, in addition to those stipulated in section 70.14, the following information and documents:
(1)  (subparagraph revoked);
(2)  the title and a detailed description of the project;
(3)  the protocol applicable to the project, listed in Appendix D;
(4)  (subparagraph revoked);
(5)  a description of the places where the project is carried out, including the geographic boundaries and the latitude and longitude of each project site;
(6)  for each site, the GHG sources, sinks and reservoirs targeted by the project;
(7)  when the environmental impacts have been assessed, a copy of the assessment and its conclusions;
(8)  (subparagraph revoked);
(9)  a copy of any authorization required for the project;
(10)  a demonstration that the project meets the conditions of section 70.3, including a copy of any relevant document;
(11)  (subparagraph revoked);
(12)  a data surveillance and management plan meeting the requirements of the protocol applicable to the project;
(13)  a description of the measures taken to ensure compliance with the requirements of this Regulation;
(14)  (subparagraph revoked);
(15)  (subparagraph revoked).
In the case of a promoter referred to in the second paragraph, the first project report under the third paragraph must be sent to the Minister within 6 months from the date of registration and must cover the whole period that began on or after 1 January 2007 and ended on the date of registration.
O.C. 1184-2012, s. 45; O.C. 1138-2013, s. 22; O.C. 902-2014, s. 42; 1125-2017O.C. 1125-2017, s. 38.
70.6. (Revoked).
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 43; 1125-2017O.C. 1125-2017, s. 39.
70.7. A promoter may carry out an aggregation of the projects of the same type on several sites for various members of the aggregation when each project meets the conditions of sections 70.2 and 70.3 and of the protocol applicable to the project.
The application for registration referred to in the first paragraph of section 70.5 must, in such a case, also include the list of members of the aggregation for which the project is carried out and their contact information, and the first project report for the aggregation of offset credit projects must include
(1)  for each project, the information and documents referred to in the third paragraph of section 70.5;
(2)  (subparagraph revoked); and
(3)  a declaration signed by each member party to the aggregation attesting that the promoter is duly designated to carry out the project and authorizing the issue of the offset credits to the promoter for the aggregation.
The project commencing first is considered to be the reference project for the application, to the aggregation of projects, of the time limits for renewal set out in section 70.10 and for the project report referred to in section 70.14.
The provisions of this Regulation concerning offset credit projects apply, with the necessary modifications, to an aggregation of projects.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 44; 1125-2017O.C. 1125-2017, s. 40.
70.8. A promoter may add a project to an aggregation of projects after it has been registered if the project meets the conditions set out in the first paragraph of section 70.7. The promoter must, in such as case, submit to the Minister the information and documents referred to in the second paragraph of that section that relate to the additional project, and the project report submitted immediately after the project is added must include, for the added project, the information and documents referred to in the third paragraph of section 70.5.
Every project added to an aggregation of projects is subject to the same time limits as those determined for the aggregation in accordance with the third paragraph of section 70.7 with respect to renewal and the project report.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 45; 1125-2017O.C. 1125-2017, s. 41.
70.9. (Revoked).
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 46.
70.10. Every promoter wishing to renew an offset credit project must, not more than 18 months prior to the end date for the current project but not less than 9 months prior to that date, send to the Minister an application for renewal including the information and documents referred to in sections 70.3 to 70.8.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 47.
70.11. Where an application for registration is submitted for a project in accordance with the first paragraph of section 70.5, the Minister registers the project in the register of offset credit projects.
O.C. 1184-2012, s. 45; O.C. 1138-2013, s. 23; O.C. 902-2014, s. 48.
70.12. Subject to any specific period prescribed in a protocol appearing in Appendix D, the reductions in GHG emissions resulting from an offset credit project must begin not later than 2 years after the project is registered, on pain of removal from the register.
The promoter must implement the offset credit project in accordance with this Regulation, the applicable protocol listed in Appendix D and the first project report submitted in accordance with the third paragraph of section 70.5.
The promoter must also use any device, system or other equipment required under the protocol applicable to the project, and ensure that they are maintained in good working order, work reliably for the duration of the project, and are calibrated in the manner and at the frequency specified by the equipment manufacturer or, where applicable, by the protocol applicable to the project.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 49; 1125-2017O.C. 1125-2017, s. 42.
70.13. Every promoter must also, for each project, record the following information annually in a register:
(1)  the information referred to in the first paragraph of section 70.14;
(2)  any information concerning the geographic boundaries of the project and any GHG source, sink or reservoir concerned by the project;
(3)  a calculation of emissions under the baseline scenario for the project, emissions during project implementation and emission reductions, along with the related documentation;
(4)  the quantity and type of fuels used and any data measured, sampled or used to calculate emissions under the baseline scenario for the project, emissions during project implementation and emission reductions, for each emission source, and the type of process and equipment used;
(5)  where applicable, the point of origin and chain of traceability of the documents required by the protocol applicable to the project;
(6)  information concerning any chemical analysis conducted, any results, and any documentation relating to the testing of any equipment and sources used to calculate emissions under the baseline scenario, emissions during project implementation and emission reductions from the project;
(7)  any data or documentation that must be recorded under the protocol applicable to the project.
O.C. 1184-2012, s. 45; 1125-2017O.C. 1125-2017, s. 43.
70.13.1. Every promoter must, when forwarding the first project report provided for in the third paragraph of section 70.5, send the first issuance request for offset credits to the Minister.
The promoter may then ask the Minister to issue offset credits at any time during the crediting period. The promoter must, however, send the application not later than 6 months following the end of the issuance period concerned.
Every issuance request for offset credits must include all the information and documents required by the protocol applicable to the project. In addition, it must include a declaration from the promoter attesting
(1)  that the promoter is the sole owner of the GHG emission reductions resulting from the project; if several parties are involved in the project, a copy of an agreement indicating that the parties have transferred their rights with respect to the reductions to the promoter must be included; and
(2)  that the promoter has not applied for credits for the GHG emission reductions targeted by the project under another GHG emission reduction program, and will not make such an application once the project is registered.
The term issuance period means the period of time during a crediting period when the promoter may apply for the issue of offset credits for which such an application has not yet been made.
1125-2017O.C. 1125-2017, s. 44.
70.14. Every issuance request for offset credits must be submitted with a project report covering the most recent issuance period and include the following information and documents:
(1)  the promoter’s name and contact information and, where applicable, the names and contact information of the members party to the aggregation;
(2)  the start and end dates for the issuance period covered by the report;
(3)  the quantity of GHG emission reductions during the issuance period, calculated using the methods set out in the applicable protocol, in metric tonnes CO2 equivalent, and all the information and documents used for the calculation;
(4)  the calculation, surveillance and monitoring methods for the data used, and the data monitored;
(5)  the quantity of GHG emission reductions eligible for the issue of offset credits according to the conditions of this Regulation and the protocol applicable to the project, in metric tonnes CO2 equivalent;
(6)  information or document required by the protocol applicable to the project;
(7)  a demonstration that the project has been carried out in accordance with this Regulation;
(8)  a declaration signed by the promoter attesting that
(a)  the project is still being carried out in conformity with the rules applicable to the type of project and the place where it is carried out;
(b)  the promoter still owns the GHG emission reductions for which the offset credits are requested;
(c)  the GHG emission reductions have not been used to apply for credits under another program; and
(d)  the information and documents provided are complete and accurate;
(8.1)  any information relating to financial assistance received for the project under a GHG emission reduction program;
(9)  a comparison with the previous project report and, where applicable, a description of any changes made;
(10)  the date of the report.
In the case of an aggregation of offset credit projects, a single project report may be submitted by the promoter, but the report must contain the information and documents referred to in the second paragraph for each project.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 50; O.C. 1125-2017, ss. 45 and 65; I.N. 2017-12-31.
70.15. Every project report referred to in section 70.14 must be accompanied by a verification report conducted by a verification organization accredited under ISO 14065 by a member of the International Accreditation Forum in Canada or the United States and according to an ISO 17011 program, with respect to the sector of activity for the project.
In addition, the promoter must entrust the verification of the project report to a verification organization and a verifier designated by that organization that, in addition,
(1)  has not acted, in the 3 preceding years, as a consultant for the purpose of developing the project or calculating the reductions in GHG emissions attributable to the project for the promoter or, as applicable, for one of the member parties to the aggregation;
(2)  (subparagraph revoked);
(3)  has not verified more than 6 consecutive project reports for the project on behalf of the promoter; and
(4)  when the promoter wishes to have the project report verified by a verification organization or a verifier other than one that verified the report for the preceding year, the organization or verifier must not have verified the report for the project during the 3 previous years.
For the verification, the promoter and, as applicable, the members party to the aggregation must give the verifier access to all the information needed and to the places where the project is carried out.
Despite the first paragraph, until 31 December 2017, a verification report of a project report may be conducted by a verification organization in the process of being accredited, on the condition that the organization receives accreditation in the year following the verification of the project.
If the organization fails to receive accreditation within the time prescribed in the fourth paragraph, the promoter must, not later than 6 months after the end of the prescribed time, send the Minister a new verification report on its project report, conducted by an accredited organization in accordance with the first paragraph.
No offset credits may be issued for the year covered by a verification report of a project report until the organization has been accredited.
O.C. 1184-2012, s. 45; O.C. 1138-2013, s. 24; O.C. 902-2014, s. 51.
70.15.1. In addition to the requirements of the standards ISO 14064- 3 and ISO 14065 concerning conflicts of interest, the promoter must ensure that none of the following situations exists between the promoter, its officers, the verification organization and the members of the verification team:
(1)  during the 3 years preceding the year of issue, one of the members of the verification team was employed by the promoter;
(2)  a member of the verification team or a close relative of that member has personal ties with the promoter or one of its officers;
(3)  during the 3 years preceding the year of issue, one of the members of the verification team or one of the subcontractors who took part in the verification provided the promoter with one of the following services:
(a)  the design, development, commissioning or maintenance of a data inventory or data management system for GHG emissions from the establishment or facility of the promoter or, where applicable, for data on electricity or fuel transactions;
(b)  the development of GHG emission factors or other data that were used for quantification or for the issuance request for offset credits under this Regulation;
(c)  consultation concerning GHG emissions reductions, and in particular the design of an energy efficiency or renewable energy project and the assessment of assets relating to greenhouse gas sources;
(d)  the preparation of manuals, guides or procedures connected with the promoter's GHG emissions reports under the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15);
(e)  consultation in connection with a greenhouse gas emission allowances market, including
i.  brokerage, with or without registration, while acting as a promoter or subscriber on behalf of the promoter;
ii.  advice concerning the suitability of a GHG emissions transaction;
iii.  the holding, purchase, sale, negotiation or withdrawal of emission allowances referred to in the second paragraph of section 46.6 of the Environment Quality Act (chapter Q-2);
(f)  a consultation in the field of health and safety and environmental management, including the consultation leading to ISO 14001 certification;
(g)  actuarial consulting, bookkeeping or other consulting services relating to accounting documents or financial statements;
(h)  a service connected with the management systems of data related to an offset credit project covered by the GHG emissions verification process used in an offset credit project;
(i)  an internal audit of GHG emissions;
(j)  a service provided in connection with litigation or an inquiry into GHG emissions;
(k)  a consultation for a GHG emissions reduction project in accordance with this Regulation, including any notice concerning the project's regulatory compliance;
(4)  the person at the verification organization responsible for carrying out an internal review of the verification process, in accordance with the standards ISO 14065 and ISO 14064-3, has previously provided a verification or other service referred to in subparagraph 3 to the promoter during the issue year or the current year.
The existence of one of the situations described in the first paragraph is considered to be a conflict of interest that invalidates the verification report.
For the purposes of this section, a close relative of a member of the verification team is that person’s spouse, child, spouse’s child, mother or father, mother’s or father’s spouse, child’s spouse or spouse’s child’s spouse.
1125-2017O.C. 1125-2017, s. 46.
70.16. The verification of the project report must
(1)  be conducted in accordance with ISO 14064-3 and according to procedures that allow a reasonable assurance level within the meaning of that standard to be obtained; and
(2)  include at least one project site visit, confirming the implementation of the project and the proper operation of the measurement and monitoring instruments, by the verifier designated by the verification organization and accompanied by the promoter and, where applicable, the member party to the aggregation concerned, during each verification for each place concerned by the project.
O.C. 1184-2012, s. 45; 1125-2017O.C. 1125-2017, s. 47.
70.17. In addition to the information prescribed by ISO 14064-3 and ISO 14065, the verification report referred to in section 70.15 must include the following information and documents:
(1)  the name and contact information of the verification organization and of the verifier designated by the organization to conduct the verification and, where applicable, of the members of the verifier’s team;
(2)  the name and contact information of the member of the International Accreditation Forum that accredited the verification organization, and the date of the accreditation;
(2.1)  a description of the activities executed by the verifier to ensure the project complies with this Regulation, along with the verification plan and all the exchanges of information between the promoter and the verifier for project verification purposes;
(3)  the dates of the periods during which the verification was conducted, and the date of any project site visits;
(4)  an assessment of the accuracy, completeness and conformity of the project report;
(5)  a list of any errors, omissions or inaccuracies noted by the verifier at the time of the project verification or project report or relating to the data, information or methods used, including the following elements:
(a)  the date on which the promoter was informed of the errors, omissions or inaccuracies;
(b)  a description of any errors, omissions or inaccuracies;
(c)  where applicable, a description of the action taken by the promoter to correct any errors, omissions or inaccuracies and the date on which the action was taken;
(d)  for errors, omissions or inaccuracies that cannot be corrected, an assessment of the impact of each of them on the quantity of GHG emission reductions eligible for the issue of offset credits;
(6)  (paragraph revoked);
(7)  where applicable, any correction made to the project report following the verification;
(8)  the total quantity of CO2 equivalent GHG emission reductions over the period of the project report and the quantity of GHG emission reductions eligible for the issue of offset credits under the conditions of this Regulation and the protocol applicable to the project, in metric tonnes CO2 equivalent;
(9)  the conclusions of the verification concerning the accuracy and reliability of the project report and its conformity with the conditions of this Regulation;
(10)  a declaration by the verification organization and the verifier that the verification was conducted in accordance with this Regulation.
In the case of an aggregation of offset credit projects, a single verification report may be submitted by the promoter, but the report must contain the information and documents referred to in the first paragraph for each project, and the verification of each project.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 52; 1125-2017O.C. 1125-2017, s. 48.
70.18. The promoter must, before submitting a project report to the Minister in accordance with section 70.14, correct any error, omission or inaccuracy identified during the verification, if correction is possible.
O.C. 1184-2012, s. 45; 1125-2017O.C. 1125-2017, s. 49.
70.19. A verification report of a project report is deemed positive if the verifier can attest with reasonable assurance that the project has been implemented in accordance with this Regulation.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 53; 1125-2017O.C. 1125-2017, s. 50.
70.20. Subject to any specific provision set out in a protocol appearing in Appendix D, following the receipt of an issuance request along with of a project report that has a positive verification result and meets the conditions of this Regulation, the Minister places in the general account of the promoter of the project an offset credit for each metric tonne CO2 equivalent of 97% of the eligible GHG emission reductions reported in accordance with subparagraph 5 of the first paragraph of section 70.14 for the issuance period, rounded down to the nearest whole number.
The offset credits corresponding to the remainder of the GHG emission reductions for the issuance period are placed in the Minister’s environmental integrity account.
If the verification report is negative or the project is not in conformity with the conditions of this Regulation, no offset credit is issued to the promoter by the Minister for the issuance period.
O.C. 1184-2012, s. 45; O.C. 1138-2013, s. 25; O.C. 902-2014, s. 54; O.C. 1125-2017, ss. 51 and 65; I.N. 2017-12-31.
70.21. The Minister may require the promoter to replace any offset credit issued for a project under the first paragraph of section 70.20 in the following cases:
(1)  where, because of omissions, inaccuracies or false information in the information and documents provided by the promoter, the GHG emission reductions for which the offset credits were issued were not eligible;
(2)  where offset credits were applied for under another program for the same reductions as those covered by the application for credits under this Regulation;
(3)  where the project was not carried out in accordance with the provisions of this Regulation.
The Minister notifies the promoter who must, within 30 days of receiving the notice, place in its general account an emission allowance for each illegitimate offset credit that must be replaced.
The Minister, after being notified that the promoter has placed the credits in the general account, deducts the replacement emission allowances designated by the promoter and places them in the invalidation account to be extinguished. The Minister also transfers the number of offset credits paid into the environmental integrity account for the project under the second paragraph of section 70.20, in proportion to the number of offset credits replaced by the promoter, into the invalidation account to be extinguished.
Without prejudice to the Minister’s other recourses against the promoter, if the promoter has failed to surrender the replacement emission allowances on the expiry of the 30-day period, the Minister replaces the illegitimate offset credits by withdrawing an equivalent number of credits from the environmental integrity account and placing them in the invalidation account to be extinguished.
When the promoter fails to replace illegitimate offset credits, the project is removed from the register of offset credit projects.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 55; O.C. 1089-2015, s. 23; 1125-2017O.C. 1125-2017, s. 52.
70.21.1. If a partner entity cancels offset credits held in the account of an emitter or a participant registered pursuant to this Regulation, the Minister notifies the emitter or participant of his intention to cancel the offset credits, in accordance with the second paragraph of section 46.12 of the Environment Quality Act (chapter Q-2). After the offset credits concerned have been cancelled, they are transferred into the Minister’s invalidation account to be surrendered to the partner entity.
If a partner entity cancels offset credits that were used for emitter compliance purposes, the Minister notifies the emitter, who must, within 6 months after receiving the notice, replace the cancelled offset credits by placing an equivalent number of emission allowances in its compliance account. The emission allowances are deducted in the order prescribed in section 21 and placed in the Minister’s retirement account to be extinguished. The cancelled offset credits recorded in the Minister’s retirement account are transferred into the Minister’s invalidation account and surrendered to the partner entity.
If the emission allowances required under the second paragraph are not surrendered by the emitter within the prescribed time, the provisions of sections 22 and 23 apply, with the necessary modifications, and the year of issue of the emission allowances is not taken into account.
O.C. 902-2014, s. 56.
70.22. Any change to the information and documents provided in accordance with this Chapter must be communicated to the Minister within 10 days.
O.C. 1184-2012, s. 45.
TITLE IV
ADMINISTRATIVE PROVISIONS, OFFENCES AND FINAL PROVISIONS
O.C. 1297-2011, title IV; O.C. 1184-2012, s. 46.
CHAPTER I
MONETARY ADMINISTRATIVE SANCTIONS
O.C. 1297-2011, c. I; O.C. 1184-2012, s. 47.
71. A monetary administrative sanction of $500 in the case of a natural person and $2,500 in all other cases may be imposed on any person who
(1)  contravenes section 4, 8, 9, 11 or 12, the second paragraph of section 13, section 14.1, the second paragraph of section 18, section 18.1, 18.2 or 18.4, the second paragraph of section 19, the second paragraph of section 19.0.1, the sixth paragraph of section 26, the fourth paragraph of section 26.3, the fifth paragraph of section 27.1, the second paragraph of section 33 or 51, section 53, 62, 70.5 or 70.13, the first and second paragraphs of section 70.13.1, section 70.14, the first, third or fifth paragraph of section 70.15 or section 70.22;
(2)  in contravention of this Regulation, refuses or neglects to send notification or provide any other information, study, research or expertise, information, report, summary, plan or other document, or who fails to comply with the time limits for providing such documents, in cases where no monetary administrative sanction is otherwise provided for.
O.C. 1297-2011, s. 71; O.C. 1184-2012, s. 47; O.C. 1138-2013, s. 26; O.C. 902-2014, s. 57; O.C. 1089-2015, s. 24; 1125-2017O.C. 1125-2017, s. 53.
72. A monetary administrative sanction of $1,000 in the case of a natural person and $5,000 in all other cases may be imposed on any person who contravenes subparagraph 1 of the first paragraph of section 18, section 32, the second or third paragraph of section 50 or 70.12, or the second paragraph of section 70.15.
O.C. 1297-2011, s. 72; O.C. 1184-2012, s. 47; O.C. 902-2014, s. 58.
73. A monetary administrative sanction of $2,500 in the case of a natural person and $10,000 in all other cases may be imposed on any person who
(1)  contravenes section 7 or 17, the first or third paragraph of section 19, the first paragraph of section 19.0.1, section 19.1 or 20, the first paragraph of section 21, the first or second paragraph of section 23.1 or section 24, section 28, 29, 30 or 31, the second paragraph of section 37, the first paragraph of section 51 or the second paragraph of section 70.21 or 70.21.1;
(2)  fails to place emission allowances or emission units pursuant to subparagraph 2 of the first paragraph of section 18, or the fourth paragraph of section 22 or 41, in cases where no other administrative sanction may be applied.
O.C. 1184-2012, s. 47; O.C. 902-2014, s. 59; O.C. 1089-2015, s. 25; O.C. 1125-2017, s. 54.
CHAPTER I.1
OFFENCES
O.C. 1184-2012, s. 47.
74. A person who contravenes section 4, 8, 9, 11 or 12, the second paragraph of section 13, section 14.1, the second paragraph of section 18, section 18.1, 18.2 or 18.4, the second paragraph of section 19, the second paragraph of section 19.0.1, the sixth paragraph of section 26, the fourth paragraph of section 26.3, the fifth paragraph of section 27.1, the second paragraph of section 33 or 51, section 53, 62, 70.5, 70.13 or 70.14, the first, third or fifth paragraph of section 70.15 or section 70.22 is guilty of an offence and is liable,
(1)  in the case of a natural person, to a fine of $3,000 to $100,000; and
(2)  in other cases, to a fine of $10,000 to $600,000.
A person who contravenes any other requirement of this Regulation is guilty of an offence and liable, in cases where no penalty is otherwise provided for in this Chapter or in the Environment Quality Act (chapter Q-2), in the case of a natural person, to a fine of $3,000 to $100,000 and, in other cases, to a fine of $10,000 to $600,000.
O.C. 1297-2011, s. 74; O.C. 1184-2012, s. 47; O.C. 1138-2013, s. 27; O.C. 902-2014, s. 60; O.C. 1089-2015, s. 26; 1125-2017O.C. 1125-2017, s. 55.
75. A person who contravenes subparagraph 1 of the first paragraph of section 18, section 32, the second or third paragraph of section 50 or 70.12 or the second paragraph of section 70.15 is guilty of an offence and is liable,
(1)  in the case of a natural person, to a fine of $6,000 to $250,000; and
(2)  in other cases, to a fine of $25,000 to $1,500,000.
O.C. 1297-2011, s. 75; O.C. 1184-2012, s. 47; O.C. 902-2014, s. 61.
75.1. A person who contravenes section 7 or 17, the first or second paragraph of section 24, the second paragraph of section 37, the fourth paragraph of section 41, the first paragraph of section 51 or the second paragraph of section 70.21 is guilty of an offence and is liable,
(1)  in the case of a natural person, to a fine of $10,000 to $500,000 or, despite article 231 of the Code of Penal Procedure (chapter C-25.1), to imprisonment for a maximum term of 18 months; and
(2)  in other cases, to a fine of $40,000 to $3,000,000.
O.C. 1184-2012, s. 47; O.C. 902-2014, s. 62; O.C. 1089-2015, s. 27.
75.2. A person who communicates false or misleading information to the Minister for the purposes of this Regulation is guilty of an offence and is liable,
(1)  in the case of a natural person, to a fine of $5,000 to $500,000 or, notwithstanding article 231 of the Code of Penal Procedure (chapter C-25.1), to imprisonment for a maximum term of 18 months; and
(2)  in other cases, to a fine of $15,000 to $3,000,000.
O.C. 1184-2012, s. 47.
75.3. A person who contravenes section 28, 29, 30 or 31 or who directly or indirectly engages or participates in any transaction, series of transactions or trading method relating to an emission allowance, or in any act, practice or course of conduct is guilty of an offence if the person knows, or ought reasonably to know, that the transaction, series of transactions, trading method, act, practice or course of conduct
(1)  creates or contributes to create a misleading appearance of trading activity in, or an artificial price for, an emission allowance; or
(2)  perpetrates a fraud on any person.
A person referred to in the first paragraph is liable,
(1)  in the case of a natural person, to a fine of $10,000 to 500,000 or, despite article 231 of the Code of Penal Procedure (chapter C-25.1), to imprisonment for a maximum term of 18 months; and
(2)  in other cases, to a fine of $40,000 to $3,000,000.
O.C. 1184-2012, s. 47; O.C. 902-2014, s. 63.
75.4. An emitter who fails to cover GHG emissions in accordance with subparagraph 2 of the first paragraph of section 18, the first or third paragraph of section 19, the first paragraph of section 19.0.1, section 19.1 or 20, the first paragraph of section 21, the fourth paragraph of section 22, the first or second paragraph of section 23.1 or the second paragraph of section 70.21.1 is guilty of an offence for each metric tonne of GHG not covered and is liable, for each metric tonne, to a fine of $3,000 to $600,000.
O.C. 1184-2012, s. 47; O.C. 902-2014, s. 64; O.C. 1089-2015, s. 28; 1125-2017O.C. 1125-2017, s. 56.
CHAPTER I.2
OTHER SANCTIONS
1125-2017O.C. 1125-2017, s. 57.
75.5. The Minister may suspend or cancel the registration for the system of a person other than an emitter referred to in section 2, when the Minister has reasonable grounds to believe that the integrity of the system is threatened.
1125-2017O.C. 1125-2017, s. 57.
CHAPTER II
FINAL
76. (Omitted).
O.C. 1297-2011, s. 76.
Sectors of activity targeted by the cap-and-trade system for greenhouse gas emission allowances
_________________________________________________________________________________
| | | |
| Sector | Type of activity | 6-digit NAICS* |
| | | code beginning |
| | | with: |
|______________________|_______________________________________|__________________|
| | | |
| Mining, quarrying and| Extraction of naturally occurring | 21 |
| oil and natural gas | minerals | |
| extraction | | |
| | | |
|______________________|_______________________________________|__________________|
| | | |
| Electric power | Generation of bulk electric power, | 2211 |
| generation, | transmission from generating | |
| transmission and | facilities to distribution centres, | |
| distribution | and/or distribution to end users | |
| | | |
|______________________|_______________________________________|__________________|
| | | |
| Natural gas | Distribution, through a system of | 2212 |
| distribution | mains, of natural or synthetic gas | 488990 |
| | to consumers, also including the | (natural gas |
| | trade of the sale of natural gas by | regasification |
| | marketers and brokers, that arrange | or liquefaction) |
| | the sale of natural gas over | |
| | distribution systems operated by | |
| | others | |
|______________________|_______________________________________|__________________|
| | | |
| Steam and | Production and distribution of steam | 22133 |
| airconditioning | and heated or cooled air for | |
| production for | industrial purposes | |
| industrial purposes | | |
|______________________|_______________________________________|__________________|
| | | |
| Manufacturing | Mechanical or physical transformation | 31, 32 or 33 |
| | of materials or substances into new | |
| | products | |
|______________________|_______________________________________|__________________|
| | | |
| Pipeline | Transportation of crude oil, refined | 486 |
| transportation | products and natural gas, gas fields, | 488990 |
| | processing plants and local | (natural gas |
| | distribution systems | regasification |
| | | or liquefaction) |
|______________________|_______________________________________|__________________|
* The numbers indicated for each category of industrial or commercial activity mentioned in Appendices A and C correspond to the codes assigned by the North American Industry Classification System (NAICS). The description of each category of activity found in the document “North American Industry Classification System, Canada 2007” published by Statistics Canada (Catalogue no. 12-501-XIE2007001, 2007, ISBN 0-662-44519-8) applies for the purposes of this Regulation.
O.C. 1297-2011, Sch. A; O.C. 1184-2012, s. 48; O.C. 1089-2015, s. 29; 1125-2017O.C. 1125-2017, s. 58.
(Revoked)
O.C. 1297-2011, Sch. B; O.C. 1184-2012, s. 49.
Partner entities
(1) State of California
The emission allowances issued by the State of California pursuant to the document California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms, Title 17, California Code of Regulations, Sections 95800 and seq. are deemed to be equivalent to the emission allowances issued pursuant to this Regulation, based on the correspondence indicated in the following table for each type of emission allowance:
_________________________________________________________________________________
| | | |
| | Québec | California |
|___________________________|__________________________|__________________________|
| | | |
| Types of emission | Emission unit | California Greenhouse |
| allowance (each having |__________________________| Gas Emissions |
| a value corresponding | | Allowance (CA GHG |
| to 1 metric tonne | Early reduction credot | Allowance) |
| CO2 equivalent) |__________________________|__________________________|
| | | |
| | Offset credit | - ARB Offset Credit |
| | | |
| | | - Early Action Offset |
| | | Credit |
|___________________________|__________________________|__________________________|
(2) Province of Ontario
The emission allowances issued by the Province of Ontario pursuant to the document O. Reg. 144/16: The Cap and Trade Program, are deemed to be equivalent to the emission allowances issued pursuant to this Regulation, based on the correspondence indicated in the following table for each type of emission allowance:
 QuébecOntario
Types of emission allowance (each having a value corresponding to 1 metric tonne CO2 equivalent)Emission unitOntario emission allowance
Early reduction creditOntario early reduction credit
Offset creditOntario offset credit
D. 1184-2012, a. 50; D. 1137-2013, a. 1; D. 1181-2013; 1125-2017O.C. 1125-2017, s. 59.
APPENDIX C
(ss. 39, 40 and 41)
Part I
Table A Activities eligible for the allocation without charge of greenhouse gas emission units

_________________________________________________________________________________
| | |
| Activity | 6-digit NAICS* code beginning |
| | with |
|________________________________________|________________________________________|
| | |
| Mining and quarrying (except oil | 212 |
| and gas) | |
|________________________________________|________________________________________|
| | |
| Electric power generation sold under a | 2211 |
| contract signed prior to 1 January | |
| 2008, that has not been renewed or | |
| extended after that date, in which the | |
| sale price is fixed for the duration | |
| of the contract, with no possibility | |
| of adjusting the price to take into | |
| account the costs relating to the | |
| implementation of a cap-and-trade | |
| system for greenhouse gas emission | |
| allowances | |
| | |
| Acquisition, for the consumption of | |
| the enterprise or for sale in Québec, | |
| of power generated in another Canadian | |
| province or territory or in a state in | |
| which the government has established a | |
| cap-and-trade system for greenhouse | |
| gas emission allowances targeting | |
| power generation, but has not signed | |
| an agreement referred to in section | |
| 46.14 of the Environment Quality Act | |
| (chapter Q-2) | |
|________________________________________|________________________________________|
| | |
| Steam and air-conditioning supply | 22133 |
| for industrial purposes | |
|________________________________________|________________________________________|
| | |
| Manufacturing | 31, 32 or 33 |
|________________________________________|________________________________________|
Table B Reference units1
_________________________________________________________________________________
| | | |
| Sector of | Type of activity | Reference unit |
| activity | | |
| of the | | |
| establishment| | |
|______________|___________________________________|______________________________|
| | | |
| Aluminum | Baked cathode production | Metric tonne of baked |
| | | cathodes removed from furnace|
|______________|___________________________________|______________________________|
| | | |
| Aluminum | Aluminum production | Metric tonne of liquid |
| | | aluminum (leaving potroom) |
|______________|___________________________________|______________________________|
| | | |
| Aluminum | Baked anode production | Metric tonne of baked anodes |
| | | removed from furnace |
|______________|___________________________________|______________________________|
| | | |
| Aluminum | Aluminum hydroxide production | Metric tonne of aluminum |
| | and secondary activities | hydroxide hydrate expressed |
| | | as AI2O3 equivalent |
| | | calculated at the |
| | | precipitation stage |
|______________|___________________________________|______________________________|
| | | |
| Aluminum | Calcinated coke production | Metric tonne of calcinated |
| | | coke |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Dismembering | Metric tonne of treated |
| | | matter |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Beer production | Hectolitre of beer |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Alcohol production | Kilolitre of alcohol |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Graphite electrode manufacturing | Metric tonne of graphite |
| | | electrodes |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Gypsum panel manufacturing | Cubic metre of gypsum panel |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Sugar production | Metric tonne of sugar |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Glass container manufacturing | Metric tonne of glass |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Steam production (for sale to a | Metric tonne of steam |
| | third person) | |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Production of semi-conductors and | Square metre of silicon |
| | other electronic components | substrate associated with |
| | | deep reactive ion etching |
| | | |
| | | Square metre of silicon |
| | | substrate associated with an |
| | | etching process other than |
| | | deep reactive ion etching |
| | | |
| | | Square metre of silicon |
| | | substrate associated with |
| | | plasma enhanced chemical |
| | | vapor deposition |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Carbone dioxide production | Metric tonne of carbon |
| | | dioxide |
|______________|___________________________________|______________________________|
| | | |
| Other2 | Oilseed processing | Metric tonne of processed |
| | | oilseeds |
|______________|___________________________________|______________________________|
| | | |
| Lime | Lime production | Metric tonne of calcic lime |
| | | and metric tonne of calcic |
| | | lime kiln dust sold |
| | | |
| | | Metric tonne of dolomitic |
| | | lime and metric tonne of |
| | | dolomitic lime kiln dust sold|
|______________|___________________________________|______________________________|
| | | |
| Chemical | Ethanol production | Kilolitre of ethanol |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Tire production | Metric tonne of tires |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Fabrication of rigid foamed | Board foot of rigid |
| | insulation | insulation |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Production of titanium dioxide | Metric tonne of titanium |
| | (Ti O2) | pigment equivalent (raw |
| | | material) |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Production of linear alkylbenzene | Metric tonne of LAB |
| | (LAB) | |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Production of catalyzer | Metric tonne of catalyzer |
| | | (including additives) |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Production of hydrogen | Metric tonne of hydrogen |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Production of purified | Metric tonne of PTA |
| | terephtalic acid (PTA) | |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Production of paraxylene | Metric tonne of xylene and |
| | | toluene |
| | | |
| | | Metric tonne of steam sold |
| | | to a third person |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Production of sodium silicate | Metric tonne of sodium |
| | | silicate |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Production of sulphur (refinery | Metric tonne of sulphur |
| | gas) | |
|______________|___________________________________|______________________________|
| | | |
| Chemical | Polyethylene terephthalate (PET) | Metric tonne of polyethylene |
| | production | therephthalate (PET) |
|______________|___________________________________|______________________________|
| | | |
| Cement | Cement production | Metric tonne of clinker and |
| | | metric tonne of mineral |
| | | additives (gypsum and |
| | | limestone) added to the |
| | | clinker produced |
|______________|___________________________________|______________________________|
| | | |
| Electricity | Electricity production | Megawatt-hour (MWH) |
|______________|___________________________________|______________________________|
| | | |
| Electricity | Acquisition of electricity | Megawatt-hour (MWH) |
| | produced outside Québec for the | |
| | consumption of the enterprise or | |
| | for sale in Québec | |
|______________|___________________________________|______________________________|
| | | |
| Electricity | Steam production (except steam | Metric tonne of steam |
| | produced by cogeneration) | |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Steel production (steelworks) | Metric tonne of steel |
| | | (slabs, pellets or ingots) |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Wrought steel production | Metric tonne of wrought steel|
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Steel pellet or slab rolling | Metric tonne of rolled steel |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Copper anode production | Metric tonne of copper anodes|
| | | |
| | | Metric tonne of recycled |
| | | secondary materials |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Copper cathode production | Metric tonne of recycled |
| | | secondary materials |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Iron ore concentrate pellet | Metric tonne of reduced |
| | reduction | iron pellets |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Copper cathode production | Metric tonne of copper |
| | | cathodes |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Ferrosilicon production | Metric tonne of ferrosilicon |
| | | (50% and 75% concentration) |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Lead production | Metric tonne of lead |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Metal powder manufacturing | Metric tonne of saleable |
| | | iron powder and steel powder |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Titanium dioxide (Ti O2) slag | Metric tonne of Ti O2 slag |
| | manufacturing | cast at the reduction |
| | | furnaces |
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Silicon metal production | Metric tonne of silicon metal|
|______________|___________________________________|______________________________|
| | | |
| Metallurgy | Zinc production | Metric tonne of iron load |
| | | |
| | | Metric tonne of cathodic zinc|
|______________|___________________________________|______________________________|
| | | |
| Mining and | Pellet production | Metric tonne of flux pellets |
| pelletization| | |
| | | Metric tonne of standard |
| | | pellets |
| | | |
| | | Metric tonne of low silica |
| | | flux pellets |
| | | |
| | | Metric tonne of direct |
| | | reduction pellets |
| | | |
| | | Metric tonne of blast |
| | | furnace pellets |
| | | |
| | | Metric ton of intermediate |
| | | pellets |
|______________|___________________________________|______________________________|
| | | |
| Mining and | Iron concentrate production | Metric tonne of iron |
| pelletization| | concentrate |
|______________|___________________________________|______________________________|
| | | |
| Mining and | Nickel concentrate production | Metric tonne of nickel |
| pelletization| | produced |
|______________|___________________________________|______________________________|
| | | |
| Mining and | Nickel concentrate and copper | Metric tonne of nickel |
| pelletization| concentrate production | and copper produced |
|______________|___________________________________|______________________________|
| | | |
| Pulp and | Pulp and paper production | Metric tonne of various |
| paper | | air-dried saleable products |
|______________|___________________________________|______________________________|
| | | |
| Pulp and | Production of wood-fibre based | Metric tonne of various |
| paper | products | air-dried saleable products |
|______________|___________________________________|______________________________|
| | | |
| Pulp and | Production of pulp and paper and | Metric tonne of various |
| paper | wood-fibre based products | air-dried saleable products |
|______________|___________________________________|______________________________|
| | | |
| Pulp and | Steam production | Metric tonne of saleable |
| paper | | various air-dried products of|
| | | each of the establishments |
| | | common to a steam network |
|______________|___________________________________|______________________________|
| | | |
| Refining | Oil refining | Kilolitre of total crude oil |
| | | refinery load |
|______________|___________________________________|______________________________|
1 An establishment pursuing a type of activity that is not listed in this table must use the reference unit declared in its emissions report under the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15).
2 These reference units must be used when the type of activity is not exercised in another sector of activity specifically referred to in this Table.
Part II
Calculation methods for the allocation of emission units without charge
(A) Definition
For the purposes of the calculation methods,
(1) covered establishment as of 2013 means an establishment for which the GHG reported emissions for 2009, 2010 or 2011 are equal to or exceed the emissions threshold;
(2) covered establishment after 2013 means an establishment for which the verified GHG emissions for 2012, 2013, 2014 or 2015 are equal to or exceed the emissions threshold;
(3) covered establishment as of 2018 means an establishment for which the verified GHG emissions for 2016, 2017 or 2018 are equal to or exceed the emissions threshold;
(4) establishment covered prior to 2021 means an establishment referred to in paragraph 1, 2 or 3, or an establishment referred to in section 2.1 before 2021 that is still targeted by the system in 2021;
(5) covered establishment as of 2021 means an establishment for which the verified GHG emissions for 2019 or for any of the subsequent years are equal to or exceed the emissions threshold.
(B) Categories of GHG emissions by origin
GHG emissions are divided into 3 categories on the basis of their origin: fixed process emissions, combustion emissions and other emissions.
Fixed process emissions are the CO2 emissions resulting from a fixed chemical reaction process for production purposes that generates CO2, from chemically-bonded carbon in the raw material, or from the carbon used to remove an undesirable component from the raw material where there is no substitutable raw material.
Combustion emissions are the emissions resulting from the exothermic reaction of any fuel, except CO2 emissions attributable to the combustion of biomass or biomass fuels.
Other emissions are the emissions that do not meet the criteria for fixed process emissions or combustion emissions.
(C) Establishments and new facilities considered on a sectoral basis for the allocation of emission units without charge
For the purpose of calculating the number of emission units that may be allocated without charge to an emitter, establishments and new facilities pursuing the following activities are considered on a sectoral basis:
(1) lime production;
(2) cement production;
(3) prebaked anode production and aluminum production using prebaked anode technologies until 2020;
(4) prebaked anode production and aluminum production using prebaked anode technologies except a side-worked prebaked anode technology as of 2021.
(D) Calculation methods
For the application of the methods set out in this Part, the result of an emission intensity calculation is rounded off to four significant figures and the result of an emission unit allocation calculation is rounded up to the nearest whole number.
For the application of the calculation methods set out in this Part, the GHG emissions data used are
(1) for the years 2007 to 2011, the data for reported emissions, minus the emissions referred to in the second paragraph of section 6.6 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15)
(2) for the years 2012 and following, the verified emissions.
Subject to the fifth paragraph, the total quantity of GHG emission units allocated without charge to an emitter referred to in section 2 is calculated in accordance with the following methods:
(1) in the case of an establishment covered as of 2013 that is not considered on a sectoral basis and that possesses GHG emissions data for 2007-2010, using equations 1-1 and 2-1 to 2-9;
(1.1) in the case of an establishment covered as of 2013 that is not considered on a sectoral basis and that does not possess GHG emissions data for 2007-2010, using equations 1-1 and 4-1 to 4-8;
(2) in the case of an establishment covered as of 2013 that is considered on a sectoral basis and that possesses GHG emissions data for 2007-2010, using equations 1-1 and 3-1 to 3-10;
(2.1) in the case of an establishment covered as of 2013 that is considered on a sectoral basis and that does not possess GHG emissions data for 2007-2010, using equations 1-1, 5-1 and 5-2;
(3) in the case of an establishment covered after 2013 that is not considered on a sectoral basis, using equations 1-1 and 4-1 to 4-8;
(4) in the case of an establishment covered after 2013 that is considered on a sectoral basis, using equations 1-1 and 5-1 for the years 2013 to 2014, using equation 5-2 for the years 2015 to 2017 and using equation 5-3 for the years 2018 to 2020;
(5) in the case of a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years d-2 to d, using equations 1-1 and 4-9 to 4-14;
(6) in the case of a covered establishment as of 2018 that is not considered on a sectoral basis, that does not possess all the GHG emissions data for years d-2 to d, and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 1-1 and 4-15 to 4-20;
(b) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 1-1, 4-21 and 4-22, until the data are all available;
(7) in the case of a covered establishment as of 2018 that is not considered on a sectoral basis, that does not possess a determined reference unit, and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 1-1 and 4-23 and 4-24;
(b) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 1-1, 4-21 and 4-22, until those data are all available;
(8) in the case of an establishment covered prior to the year 2021 that is not considered on a sectoral basis, using equations 7-1 and 8-1 to 8- 10 for the years 2021 to 2023;
(9) in the case of an establishment covered prior to the year 2021 that produces cement, prebaked anodes or aluminum by using a prebaked anode technology other than the side-worked prebaked anode technology, using equations 7-1 and 9-1 for the years 2021 to 2023;
(10) in the case of a covered establishment as of 2021 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years d-2 to d, using equations 7-1 and 10-1 to 10-4;
(11) in the case of a covered establishment as of 2021 that is not considered on a sectoral basis, that does not possess all the GHG emissions data for years d-2 to d, and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 7-1 and 11-1 to 11-4;
(b) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 7-1, 11-5 and 11-6, until the data are all available;
(12) in the case of a covered establishment as of 2021 that does not possess a determined reference unit and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 7-1, 12-1 and 12-2;
(b) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 7-1, 11-5 and 11-6, until the data are all available;
(13) in the case of an establishment that produces liquid aluminum by using a side-worked prebaked anode technology, using equations 7-1 and 8-1 to 8-7 for the years 2021 to 2023;
(14) in the case of an establishment in the lime sector, using equations 7-1 and 8-11 to 8-20 for the years 2021 to 2023;
(15) in the case of an establishment that produces steel (slabs, pellets or ingots), metallic silicon, ferrosilicon, reduced iron pellets or titanium dioxide (TiO2), using equations 7-1 and 6-15 for the years 2021 to 2023;
(16) in the case of a copper refinery, using equations 7-1 and 6-16 for the years 2021 to 2023.
Subject to the fifth paragraph, the total quantity of GHG emission units allocated without charge to an emitter referred to in section 2.1 is calculated in accordance with the following methods:
(1) in the case of a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years e-3 to e-1, using equations 1-1 and 4-25 to 4-30 for the years 2018 to 2020;
(2) in the case of a covered establishment referred to in section 2.1 that is not considered on a sectoral basis, that does not possess all the GHG emissions data for years e-3 to e-1 and for which, as the case may be,
(a) the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equations 1-1 and 4-31 to 4-36 for the years 2018 to 2020;
(b) the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equations 1-1 and 4-37 and 4-38 for the years 2018 to 2020, until the data are all available;
(3) in the case of a covered establishment referred to in section 2.1 that does not possess a determined reference unit, that is not considered on a sectoral basis and for which, as the case may be,
(a) the GHG emissions data, for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equations 1-1, 4-39 and 4-40 for the years 2018 to 2020;
(b) the GHG emissions data, for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equations 1-1 and 4-37 and 4-38 for the years 2018 to 2020, until the data are all available;
(4) in the case of a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years e-3 to e-1, using equations 7-1 and 13-1 to 13-4 for the years 2021 to 2023;
(5) in the case of a covered establishment referred to in section 2.1 that is not considered on a sectoral basis, that does not possess all the GHG emissions data for years e-3 to e-1 and for which, as the case may be,
(a) the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equations 7-1 and 14-1 to 14-4 for the years 2021 to 2023;
(b) the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equations 7-1, 14-5 and 14-6 for the years 2021 to 2023, until the data are all available;
(6) in the case of a covered establishment referred to in section 2.1 that does not possess a determined reference unit and for which, as the case may be,
(a) the GHG emissions data, for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equations 7-1, 15-1 and 15-2 for the years 2021 to 2023;
(b) the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equations 7-1, 14-5 and 14-6 for the years 2021 to 2023, until the data are all available;
In the special cases provided for below, the emission units allocated without charge to an emitter are calculated:
(1) in the case of an establishment producing aluminum anodes using Söderberg anode technology after 2014, using equation 2-9 but replacing the factor “I2020i” by the factor “I2020 sod” calculated using equation 6-1;
(2) in the case of an establishment producing alumina from bauxite, using equation 6-2;
(3) in the case of an establishment producing rigid foamed insulation, using equation 2-1 for 2013 and 2014, calculating the factor “I2013” using equations 6-3 to 6-6, and using equation 6-7 for 2015 to 2020;
(4) in the case of an establishment producing zinc and generally using hydrogen as a fuel to supply its furnaces, using equations 6-8 to 6-10 for the years 2013 to 2020 and using equations 6-10.1 and 6-10.2 for the years 2021 to 2023;
(5) in the case of a new facility and the production of a new reference unit, using the methods in subdivision 6.5;
(6) in the case of an establishment covered after 2013 whose production replaces all or part of the production of another establishment or facility of the same emitter in Québec that closed after 1 January 2008, using the methods in subdivision 6.6;
(7) in the case of an enterprise who acquires, for the consumption of the enterprise or for sale in Québec, power generated in another Canadian province or territory or in a state in which the government has established a cap-and-trade system for greenhouse gas emission allowances targeting power generation, but has not signed an agreement referred to in section 46.14 of the Environment Quality Act (chapter Q-2), using equation 6-11 for the years 2013 to 2020 and using equation 6-11.1 for the years 2021 to 2023;
(8) in the case of a copper foundry, using equations 6-12 and 6-13 for the years 2013 to 2020 and using equation 6-14 for the years 2021 to 2023.
To be considered in the calculation of emission units allocated without charge, any change to the information provided for in subparagraph 4 of the first paragraph of section 7 and provided by the emitter when registering for the system must be sent to the Minister, together with any supporting document, not later than 1 June following the end of the compliance period affected by the change.
Any change sent to the Minister within the time limit prescribed in the fifth paragraph applies from the beginning of the compliance period referred to in that paragraph.
1. Calculation of the total quantity of GHG emission units allocated without charge for an establishment for the years 2013 to 2020
Equation 1-1 Calculation of the total quantity of GHG emission units allocated without charge for an establishment
Where:
Aestablishment i j = Total quantity of GHG emission units allocated without charge for an establishment for year i for all types of activities j in Table B of Part I of this Schedule for that establishment;
i = Each year included in the period 2013 to 2020;
j = Each type of activity at the establishment;
m = Total number of types of activity at the establishment;
Ai j = Number of GHG emission units allocated without charge by type of activity j for year i, calculated using equations 2-1, 2-9, 3-1, 3-10, 4-1, 4-8, 4-9, 4-15, 4-21, 4-23, 4-25, 4-31, 4-37, 4-39, 5-1, 5-2, 5-3, 6-2, 6-7, 6-8, 6-9 and 6-10.3.
2. Covered establishment as of 2013 that is not considered on a sectoral basis
(2.1) Calculation method for the years 2013 and 2014
Equation 2-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment that is not considered on a sectoral basis for the years 2013 and 2014
Ai j = I2013j × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge for type of activity j at an establishment for year i;
i = Each year included in the first compliance period, namely 2013 and 2014;
j = Type of activity;
I2013j = Intensity target of GHG emissions attributable to the type of activity at the establishment for the years 2013 and 2014 calculated using equation 2-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 2-2 Calculation of the intensity target of GHG emissions by type of activity at an establishment that is not considered on a sectoral basis for the years 2013 and 2014
I2013j = IFPav j + RxICav j + IOav j
Where:
I2013j = Intensity target of GHG emissions attributable to type of activity j at the establishment for the years 2013 and 2014, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
IFPav j = Average intensity of GHG fixed process emissions attributable to type of activity j at the establishment for the period 2007-2010, calculated using equation 2-3, in metric tonnes CO2 equivalent per reference unit;
R = Multiplication factor for GHG combustion emissions intensity at the establishment calculated using equations 2-4 and 2-5 or, in the case of an establishment producing pulp and paper described by NAICS code 3221 or 321216, a value of 1;
ICav j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for the period 2007-2010, calculated using equation 2-6, in metric tonnes CO2 equivalent per reference unit;
IO av j = Average intensity of other GHG emissions attributable to type of activity j at the establishment for the period 2007-2010, calculated using equation 2-7, in metric tonnes CO2 equivalent per reference unit.
Equation 2-3 Average intensity GHG fixed process emissions by type of activity at an establishment that is not considered on a sectoral basis for the period 2007-2010
Where:
IFPav j = Average intensity of GHG fixed process emissions attributable to type of activity j at the establishment for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
i = Each year included in the period 2007-2010;
j = Type of activity;
GHG FPi j = GHG fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 2-4 Calculation of the intensity multiplication factor for combustion emissions at an establishment that is not considered on a sectoral basis
R = 0.80 × GFR + (1-GFR)
Where:
R = Multiplication factor for GHG combustion emissions intensity at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at the establishment, calculated using equation 2-5.
Equation 2-5 Calculation of the GFR ratio for an establishment that is not considered on a sectoral basis
Where:
GFR = Ratio between total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at the establishment;
i = Each year included in the period 2007-2010;
GHG GFR i = GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG C i = Total GHG combustion emissions attributable to the use of fuel at the establishment during year i, in metric tonnes CO2 equivalent.
Equation 2-6 Average intensity of GHG combustion emissions by type of activity at an establishment that is not considered on a sectoral basis for the period 2007-2010
Where:
ICav j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Each year included in the period 2007-2010;
GHG Ci j = GHG combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 2-7 Average intensity of other GHG emissions by type of activity at an establishment that is not considered on a sectoral basis for the period 2007-2010
Where:
IO av j = Average intensity of other GHG emissions attributable to type of activity j at the establishment for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
i = Each year included in the period 2007-2010;
j = Type of activity;
GHG O i j = Other GHG emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 2-8 Calculation of the intensity target of GHG emissions by type of activity at an establishment that is not considered on a sectoral basis for year 2020
I2020 j = IFP 2020 j + IC 2020 j + IO 2020 j
Where:
I2020 j = Intensity target of GHG emissions attributable to type of activity j at the establishment for year 2020, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
IFP 2020 j = Intensity of fixed process emissions calculated for year 2020 for type of activity j, using equation 2-8.1;
IC 2020 j = Intensity of combustion emissions calculated for year 2020 for type of activity j, using equation 2-8.2;
IO 2020 j = Intensity of other emissions calculated for year 2020 for type of activity j, using equation 2-8.3.
Equation 2-8.1 Calculation of the intensity target of fixed process emissions by type of activity at an establishment that is not considered on a sectoral basis for year 2020
IFP 2020 j = IFP av j
Where:
IFP 2020 j = Intensity of fixed process emissions calculated for year 2020 for type of activity j;
j = Type of activity;
IFP av j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for the period 2007-2010, calculated using equation 2-3, in metric tonnes CO2 equivalent per reference unit.
Equation 2-8.2 Calculation of the intensity target of combustion emissions by type of activity at an establishment that is not considered on a sectoral basis for year 2020
IC 2020 j = R × min[(0.95)IC min j; (0.90)IC av j]
Where:
IC 2020 j = Intensity of combustion emissions calculated for year 2020 for type of activity j;
j = Type of activity;
R = Intensity multiplication factor for combustion emissions at the establishment calculated using equations 2-4 and 2-5 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
min = Minimum value, representing the lesser of the 2 elements calculated;
0.95 = Proportion corresponding to 95% of the minimum intensity of combustion emissions;
IC min j = Minimum annual intensity of combustion emissions attributable to type of activity j at the establishment for the years 2007 to 2010 inclusively, in metric tonnes CO2 equivalent per reference unit;
0.90 = Proportion corresponding to 90% of the average intensity of combustion emissions;
IC av j = Average intensity of combustion emissions attributable to type of activity j at the establishment for the years 2007 to 2010, calculated using equation 2-6, in metric tonnes CO2 equivalent per reference unit.
Equation 2-8.3 Calculation of the intensity target of other emissions by type of activity at an establishment that is not considered on a sectoral basis for the year 2020
IO 2020 j = min[(0.95)IO min j; (0.90)IO av j]
Where:
IO 2020 j = Intensity of other emissions calculated for the year 2020 for type of activity j;
j = Type of activity;
min = Minimum value, representing the lesser of the 2 elements calculated;
0.95 = Proportion corresponding to 95% of the minimum intensity of other emissions;
IO min j = Minimum annual intensity of other emissions attributable to type of activity j at the establishment for the years 2007 to 2010 inclusively, in metric tonnes CO2 equivalent per reference unit;
0.90 = Proportion corresponding to 90% of the average intensity of other emissions;
IO av j = Average intensity of other emissions attributable to type of activity j at the establishment for the years 2007 to 2010, calculated using equation 2-7, in metric tonnes CO2 equivalent per reference unit.
(2.2) Calculation method for the years 2015-2020
Equation 2-9 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment that is not considered on a sectoral basis for the years 2015-2020

Ai j = (6 - x) I2013j + xI2020j
_________________________ × PRi j
6

Where:
Ai j= Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the second and third compliance periods, namely 2015, 2016, 2017, 2018, 2019 and 2020;
j = Type of activity;
6 = 6 years in the linear regression, namely 2015, 2016, 2017, 2018, 2019 and 2020;
x = (i – 2015) + 1;
I2013j = Intensity target of GHG emissions attributable to type of activity j at the establishment for the years 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per reference unit;
I2020j = Intensity target of GHG emissions attributable to type of activity j at the establishment for the year 2020, calculated using equation 2-8, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j for year i.
3. Covered establishment as of 2013 that is considered on a sectoral basis
(3.1) Calculation method for the years 2013 and 2014
Equation 3-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment that is considered on a sectoral basis for the years 2013 and 2014
Ai j = max(I2013j;I2020s j) × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the first compliance period, namely 2013 and 2014;
j = Type of activity;
max = Maximum value, representing the greater of the values I2013j and I2020s j;
I2013j = Intensity target of GHG emissions attributable to type of activity j at the establishment for the years 2013 and 2014 calculated using equation 2-2, in metric tonnes CO2 equivalent per reference unit;
I2020s j = Intensity target of GHG emissions attributable to type of activity j in the sector for the year 2020, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used for type of activity j at the establishment for year i.
Equation 3-2 Calculation of the intensity target of GHG emissions by type of activity at an establishment that is considered on a sectoral basis for the year 2020
I2020s j = IFPav(S) j + Rs × min[(0.95)ICmin(S) j;(0.90)ICav(S)j]+min[(0.95)IOmin(S) j;(0.90)IO av(S) j]
Where:
I2020s j = Intensity target of GHG emissions attributable to type of activity j in the sector for the year 2020, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
IFPav(S) j = Average intensity of GHG fixed process emissions attributable to type of activity j in the sector for the period 2007-2010, calculated using equation 3-3, in metric tonnes CO2 equivalent per reference unit;
Rs = Sectoral multiplication factor for the intensity of GHG combustion emissions calculated using equations 3-4 and 3-5;
min = Minimum value, representing the lesser of the 2 elements calculated;
0.95 = Proportion corresponding to 95% of the minimum intensity of combustion emissions or of the minimum intensity of other GHG emissions;
ICmin(S) j = Minimum annual average intensity of GHG combustion emissions attributable to type of activity j in the sector for the years 2007 to 2010 inclusively, calculated using equation 3-6, in metric tonnes CO2 equivalent per reference unit;
0.90 = Proportion corresponding to 90% of the average intensity of combustion emissions or the average intensity of other GHG emissions;
ICav(S)j = Average intensity of GHG combustion emissions attributable to type of activity j in the sector for the period 2007-2010, calculated using equation 3-7, in metric tonnes CO2 equivalent per reference unit;
IOmin(S) j = Minimum annual average intensity of other GHG emissions attributable to type of activity j in the sector for the years 2007 to 2010 inclusively, calculated using equation 3-8, in metric tonnes CO2 equivalent per reference unit;
IO av(S) j = Average intensity of other GHG emissions attributable to type of activity j in the sector for the period 2007-2010, calculated using equation 3-9, in metric tonnes CO2 equivalent per reference unit.
Equation 3-3 Average intensity of GHG fixed process emissions attributable to the type of activity in the sector for the period 2007-2010
Where:
IFPav(S) j = Average intensity of GHG fixed process emissions attributable to type of activity j in the sector for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Each year included in the period 2007-2010;
l = Number of covered establishments as of 2013 in the sector;
GHG FPi jk = GHG fixed process emissions attributable to type of activity j at establishment k for year i, in metric tonnes CO2 equivalent;
k = Covered establishment as of 2013 in the sector;
PRi jk = Total quantity of reference units produced or used at establishment k for type of activity j for year i.
Equation 3-4 Calculation of the combustion intensity multiplication factor at an establishment that is considered on a sectoral basis
Rs = 0.80 X GFRs + (1 - GFRs)
Where:
Rs = Sectoral multiplication factor for the intensity of GHG combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFRs ratio;
GFRs = Ratio between the total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at establishments in the sector, calculated using equation 3-5.
Equation 3-5 Calculation of the GFRs ratio for an establishment that is considered on a sectoral basis
Where:
GFRs = Ratio between the total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at establishments in the sector;
i = Each year included in the period 2007-2010;
l = Number of establishments in the sector covered as of 2013;
k = Establishment in the sector covered as of 2013 in the sector;
GHG GFRsi k = GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment k during year i, in metric tonnes CO2 equivalent;
GHG Csi k = Total GHG combustion emissions attributable to the use of fuel at establishment k for year i, in metric tonnes CO2 equivalent.
Equation 3-6 Calculation of the minimum average annual intensity of GHG combustion emissions attributable to the type of activity in the sector for 2007 to 2010
Where:
ICmin(s)j = Minimum average annual intensity of GHG combustion emissions attributable to type of activity j in the sector for the years 2007 to 2010 inclusively, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
min = Minimum value, representing the lesser of the intensity values for the years 2007, 2008, 2009 and 2010;
l = Number of establishments covered as of 2013 in the sector;
GHG Ci jk = GHG combustion emissions attributable to type of activity j at establishment k during the years i corresponding to 2007, 2008, 2009 and 2010, in metric tonnes CO2 equivalent;
k = Establishment in the sector covered as of 2013;
Pi jk = Total quantity of reference units produced or used at establishment k for type of activity j during the years i corresponding to 2007, 2008, 2009 and 2010.
Equation 3-7 Average intensity of GHG combustion emissions attributable to a type of activity in the sector for the period 2007-2010
Where:
ICav(S) j = Average intensity of GHG combustion emissions attributable to type of activity j in the sector for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Each year included in the period 2007-2010;
l = Number of covered establishments as of 2013 in the sector;
GHG Ci jk = GHG combustion emissions attributable to type of activity j at establishment k for year i, in metric tonnes CO2 equivalent;
k = Covered establishment as of 2013 in the sector;
PRi jk = Total quantity of reference units produced or used at establishment k for type of activity j for year i.
Equation 3-8 Calculation of the minimum average annual intensity of other GHG emissions attributable to a type of activity in the sector for 2007 to 2010
Where:
IOmin(s) j = Minimum average annual intensity of other GHG emissions attributable to type of activity j in the sector for 2007 to 2010 inclusively, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
min = Minimum value, representing the lesser of the intensity values for the years 2007, 2008, 2009 and 2010;
l = Number of establishments covered as of 2013 in the sector;
GHG Oi jk = Other GHG emissions attributable to type of activity j at establishment k for the years i corresponding to 2007, 2008, 2009 and 2010, in metric tonnes CO2 equivalent;
k = Establishment covered in the sector beginning in 2013;
Pi jk = Total quantity of reference units produced or used at establishment k for type of activity j during the years i corresponding to 2007, 2008, 2009 and 2010.
Equation 3-9 Average intensity of other GHG emissions attributable to a type of activity in the sector for the period 2007-2010
Where:
IO av(S) j = Average intensity of other GHG emissions attributable to type of activity j in the sector for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Each year included in the period 2007-2010;
l = Number of covered establishments as of 2013 in the sector;
GHG Oi jk = GHG other emissions attributable to type of activity j at establishment k for year i, in metric tonnes CO2 equivalent;
k = Covered establishment as of 2013 in the sector;
PRijk = Total quantity of reference units produced or used by establishment k for to type of activity j for year i.
(3.2) Calculation methods for the years 2015 to 2020
Equation 3-10 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment that is considered on a sectoral basis for the years 2015 to 2020

_ _
|(6 - x) I2013j + xI2020s j |
Ai j = max|_________________________;I2020s j| × PRi j
|_ 6 _|
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the second and third compliance periods, namely 2015, 2016, 2017, 2018,2019 and 2020;
j = Type of activity;
max = Maximum value, representing the greater of the 2 intensity values calculated;
6 = 6 years in the linear regression, namely 2015, 2016, 2017, 2018, 2019 and 2020;
x = (i – 2015) + 1;
I2013j = Intensity target of GHG emissions attributable to type of activity j at the establishment for the years 2013 and 2014 calculated using equation 2-2, in metric tonnes CO2 equivalent per reference unit;
I2020s j = Intensity target of GHG emissions attributable to type of activity j in the sector for the year 2020, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
4. Covered establishment as of 2013 that does not possess GHG emissions data for 2007-2010, covered establishment after 2013, covered establishment as of 2018 and covered establishment referred to in section 2.1 that is not considered on a sectoral basis
(4.1) Calculation method for the years 2013 and 2014
Equation 4-1 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment covered as of 2013 and without data for 2007-2010 or after 2013 that is not considered on a sectoral basis for the years 2013 and 2014
Ai j = Idepj × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the first compliance period, namely 2013 and 2014;
j = Type of activity;
Idep j = Intensity target of GHG emissions attributable to type of activity j at an establishment, calculated using equation 4-2, in metric tonnes CO2 equivalent per reference unit;
PRi j= Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-2 Calculation of the intensity target of GHG emissions for the years 2013 and 2014 by type of activity at a covered establishment covered as of 2013 and without data for 2007-2010 or after 2013
Idepj = IFPdep j + (R × ICdep j) + IOdep j
Where:
Idepj= Intensity target of GHG emissions attributable to type of activity j at an establishment, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
IFPdep j = Average intensity of GHG fixed process emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-3, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
R = Multiplication factor for GHG combustion emissions at the establishment calculated using equations 4-6 and 4-7 or, in the case of an establishment producing pulp and paper described by NAICS code 3221 or 321216, a value of 1;
ICdep j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-4, in metric tonnes CO2 equivalent per reference unit;
IOdep j= Average intensity of other GHG emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-5, in metric tonnes CO2 equivalent per reference unit.
Equation 4-3 Average intensity of GHG fixed process emissions by type of activity at a covered establishment covered as of 2013 and without data for 2007-2010 or after 2013 for the reference years d-2 to d+1
Where:
IFPdep j = Average intensity of GHG fixed process emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Years d-2, d-1, d and d+1, when available, excluding the year in which the establishment is brought into service;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
GHG FPi j = GHG fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-4 Average intensity of GHG combustion emissions by type of activity for a covered establishment covered as of 2013 and without data for 2007-2010 or after 2013 for the reference years d-2 to d+1
Where:
ICdep j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Years d-2, d-1, d and d+1, when available, excluding the year in which the establishment is brought into service;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
GHG Ci j = GHG combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-5 Average intensity of other GHG emissions by type of activity for a covered establishment covered as of 2013 and without data for 2007-2010 or after 2013 for the reference years d-2 to d+1
Where:
IOdep j = Average intensity of other GHG emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Years d-2, d-1, d and d+1, when available, excluding the year in which the establishment is brought into service;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
GHG Oi j = GHG other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-6 Calculation of the intensity multiplication factor for combustion emissions at an establishment covered as of 2013 and without data for 2007-2010 or covered after 2013 that is not considered on a sectoral basis
R = 0.80 × GFR + (1 - GFR)
Where:
R = Intensity multiplication factor for GHG combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between the total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at the establishment, calculated using equation 4-7.
Equation 4-7 Calculation of the GFR ratio for an establishment covered as of 2013 and without data for 2007-2010 or covered after 2013 that is not considered on a sectoral basis
Where:
GFR = Ratio between the total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at the establishment;
i = Years d-2, d-1, d and d+1, when available, excluding the year in which the establishment is brought into service;
GHG GFRi = GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG Ci = Total GHG combustion emissions attributable to the use of fuel at the establishment for year i, in metric tonnes CO2 equivalent.
(4.2) Calculation method for the years 2015 to 2020 for covered establishments as of 2013 and for covered establishments after 2013
Equation 4-8 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment covered as of 2013 and without data for 2007-2010 or covered after 2013 that is not considered on a sectoral basis for the years 2015 to 2020
Ai j = [IFPdep j + (R)(0.99)n ICdep j + (0.99)n IOdep j] × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j for an establishment for year i;
j = Type of activity;
i = Each year in the period 2015-2020 for which the emitter is required to cover GHG emissions;
IFPdep j = Average intensity of the GHG fixed process emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-3, in metric tonnes CO2 equivalent per reference unit;
R = Multiplication factor for GHG combustion emissions at the establishment calculated using equations 4-6 and 4-7 or, in the case of an establishment producing pulp and paper described by NAICS code 3221 or 321216, a value of 1;
0.99 = Proportion corresponding to an annual improvement of 1% in the intensity factor;
n = i - (d + 2);
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
ICdep j = Average intensity of the GHG combustion emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-4, in metric tonnes CO2 equivalent per reference unit;
IOdep j = Average intensity of the other GHG emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-5, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(4.3) Calculation method for the years 2018 to 2020 for covered establishments as of 2018
(4.3.1) Covered establishment as of 2018 that is not considered on a sectoral basis for the years 2018 to 2020 and that possesses all the GHG emissions data for years d-2 to d
Equation 4-9 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis for the years 2018 to 2020 and that possesses GHG emissions data for years d-2 to d
Aij = [IFP dep j × aFP,i + R × IC dep j × ac,i + IO dep j × aO,i] × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 4-10, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold; in the case of a dismembering establishment covered as of 2018, d corresponds to the year 2016;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
R = Intensity multiplication factor for combustion emissions at the establishment, calculated using equation 4-11 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 4-13, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year -i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 4-14, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-10 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses GHG emissions data for years d-2 to d
Where:
I FP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d-2 to d, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d-2, d-1 and d;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-11 Calculation of the intensity multiplication factor for combustion emissions at a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses GHG emissions data for years d-2 to d
R = 0.80 × GFR + (1 – GFR)
Where:
R = Intensity multiplication factor for combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment, calculated using equation 4-12.
Equation 4-12 Calculation of the GFR ratio for a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses GHG emissions data for years d-2 to d
Where:
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d-2, d-1 and d;
GHG GFRi = Combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG Ci = Total combustion emissions attributable to the use of fuel at the establishment during year i, in metric tonnes CO2 equivalent.
Equation 4-13 Calculation of the intensity of combustion emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses GHG emissions data for years d-2 to d
Where:
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d-2 to d, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d-2, d-1 and d;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-14 Calculation of the intensity of other emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses GHG emissions data for years d-2 to d
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d-2 to d, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d-2, d-1 and d;
GHG Oi j = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(4.3.2) Covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equation 4-15;
(2) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equation 4-21.
Equation 4-15 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis for the years 2018 to 2020 and that does not possess all the GHG emissions data for years d-2 to d
Aij = [IFP dep j × aFP,i + R ×IC dep j × ac,i + IO dep j × aO,i ] × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 4-16, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
R = Intensity multiplication factor for combustion emissions at the establishment calculated using equation 4-17 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 4-19, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 4-20, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-16 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
Where:
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-17 Calculation of the intensity multiplication factor for combustion emissions at a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
R = 0.80 × GFR + (1 – GFR)
Where:
R = Intensity multiplication factor for combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment, calculated using equation 4-18.
Equation 4-18 Calculation of the GFR ratio for a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
Where:
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG GFRi = Combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG Ci = Total combustion emissions attributable to the use of fuel at the establishment during year i, in metric tonnes CO2 equivalent.
Equation 4-19 Calculation of the intensity of combustion emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
Where:
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-20 Calculation of the intensity of other emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG Oi j = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-21 Calculation of the number of GHG emission units allocated without charge for a covered establishment as of 2018 that is not considered on a sectoral basis for the years 2018 to 2020 and that does not possess all the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational
Ai = (ECTOTA L i × EF × ac,i) + (GHGFP i × aFP,i) + (GHGO i × aO,i)
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover GHG emissions;
ECTOTAL i = Energy consumption in year i, calculated using equation 4-22, in GJ;
EF= Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
GHGFP i = Fixed process emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
GHGO i = other emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2).
Equation 4-21.1 Calculation of the emission factor for natural gas
EF = ((EFCO2 × 1,000) + (EFCH4 × GWPCH4) + (EFN2O × GWPN2O)) × 0.000001
Where:
EFCO2 = Emission factor of CO2 for natural gas taken from Table 1-4 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), in kilograms of CO2 per GJ;
1,000 = Conversion factor, kilograms to grams;
EFCH4 = Emission factor of CH4 for natural gas, for industrial uses, taken from Table 1-7 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), in grams of CH4 per GJ;
GWPCH4 = Global warming potential of CH4 taken from Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15);
EFN2O = Global warming potential of N2O taken from Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15);
GWPN2O = Global warming potential of N2O taken from Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15);
0.000001 = Conversion factor, grams to metric tonnes;
Equation 4-22 Calculation of energy consumption for year i of a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d to d+2
Where:
ECTOTAL i = Energy consumption in year i in GJ;
i = Each year of the period 2018-2020 for which the emitter is required to cover GHG emissions;
n = Total number of types of fuel used;
k = Type of fuel;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, where the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric tonne, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(4.3.3) Covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess a determined reference unit
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equation 4-23;
(2) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equation 4-21.
Equation 4-23 Calculation of the number of GHG emission units allocated without charge for the years 2018 to 2020 for a covered establishment as of 2018 that does not possess a determined reference unit and that possesses all the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational
Ai = [(ECTOTAL,av × EF × ac,i) + (GHGFP,av × aFP,i) + (GHGO,av × aO,i)]
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover GHG emissions;
ECTOTAL,av = Average energy consumption for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 4-24, in GJ;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
GHGFPav = Average fixed process emissions at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
GHGO,av = Average other emissions at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2).
Equation 4-24 Calculation of average energy consumption for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, for a covered establishment as of 2018 that possesses all the GHG emissions data for those years
Or
Where:
ECTOTAL,av = Average energy consumption for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in GJ;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
n = Total number of types of fuel used;
k = Type of fuel;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, where the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric tonne, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(4.4) Calculation method for the years 2018 to 2020 for the covered establishments referred to in section 2.1.
(4.4.1) Covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Equation 4-25 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2018 to 2020 and for which the GHG emissions data for years e-3 to e-1 are all available
Aij = [IFPdep j × aFP,i + R × Ic dep j × ac,i + IO dep j × aO,i] × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 4-26, in metric tonnes CO2 equivalent per reference unit;
e = Year of application for registration for the system;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
R = Intensity multiplication factor for combustion emissions at the establishment calculated using equation 4-27 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 4-29, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 4-30, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-26 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-3 to e-1, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-3, e-2 and e-1;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-27 Calculation of the intensity multiplication factor for combustion emissions for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
R = 0.80 × GFR + (1 – GFR)
Where:
R = Intensity multiplication factor for GHG combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment, calculated using equation 4-28.
Equation 4-28 Calculation of the GFR ratio for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment;
e = Year of registration for the system;
i = Years e-3, e-2 and e-1;
GHG GFRi = combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG Ci = Total combustion emissions attributable to the use of fuel at the establishment during year i, in metric tonnes CO2 equivalent.
Equation 4-29 Calculation of the intensity of combustion emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-3 to e-1, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-3, e-2 and e-1;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-30 Calculation of the intensity of other emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-3 to e-1, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-3, e-2 and e-1;
GHG Oij = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(4.4.2) Covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equation 4-31;
(2) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equation 4-37.
Equation 4-31 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2018 to 2020 and for which the GHG emissions data for years e-3 to e-1 are not all available
Aij = [IFP dep j × aFP,i + R × IC dep j × aC,i + IO dep j × aO,i ] × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 4-32, in metric tonnes CO2 equivalent per reference unit;
e = Year of application for registration for the system;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
R = Intensity multiplication factor for combustion emissions at the establishment calculated using equation 4-33 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 4-35, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 4-36, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-32 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-33 Calculation of the intensity multiplication factor for combustion emissions for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
R = 0.80 × GFR + (1 – GFR)
Where:
R = Intensity multiplication factor for combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between the total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment, calculated using equation 4-34.
Equation 4-34 Calculation of the GFR ratio for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment;
e = Year of registration for the system;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG GFRi = Combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG Ci = Total combustion emissions attributable to the use of fuel at the establishment during year i, in metric tonnes CO2 equivalent.
Equation 4-35 Calculation of the intensity of combustion emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-36 Calculation of the intensity of other emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG Oi j = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-37 Calculation of the number of GHG emission units allocated without charge for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2018 to 2020 and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available
Ai = (ECTOTAL i × EF × ac,i) + (GHGFP i × aFP,i) + (GHGO i × aO,i)
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover its GHG emissions;
ECTOTAL i = Average energy consumption for year i, calculated using equation 4-38, in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
GHGFP i = Fixed process emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
GHGO i = Average other emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1).
Equation 4-38 Calculation of average energy consumption for years e and e+1 of an establishment for the years 2018 to 2020 that is not considered on a sectoral basis and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available
  n 
ECTOTAL i=Fuelk × HHVk
  k=1 
Where:
ECTOTAL i = Energy consumption for year i, in GJ;
n = Total number of types of fuel used;
k = Type of fuel;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, where the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric tonne, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(4.4.3) Covered establishment referred to in section 2.1 that is not considered on a sectoral basis and that does not possess a determined reference unit
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equation 4-39;
(2) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equation 4-37.
Equation 4-39 Calculation of the number of GHG emission units allocated without charge for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2018 to 2020, that does not possess a determined reference unit and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available
Ai = [(ECTOTAL,av × EF × ac,i) + (GHGFP,av × aFP,i) + (GHGO,av × aO,i)]
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover its GHG emissions;
ECTOTAL,av = Average energy consumption for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 4-40, in GJ;
e = Year of application for registration for the system;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
GHGFP,av = Average fixed process emissions at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
GHGO,av = Average other emissions at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1).
Equation 4-40 Calculation of average energy consumption for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis, that does not possess a determined reference unit, and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available
Or
Where:
ECTOTAL,av = Average energy consumption for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in GJ;
e = Year of application for registration for the system;
k = Type of fuel;
n = Total number of types of fuel used;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, where the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric tonne, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
5. Covered establishment as of 2013 that does not possess GHG emissions data for 2007-2010 and covered establishment after 2013 that is considered on a sectoral basis
(5.1) Calculation method for the years 2013 and 2014
Equation 5-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment covered as of 2013 and without data for 2007-2010 or covered after 2013 that is considered on a sectoral basis for the years 2013 and 2014
Ai j = max(Idep j;I2020s j) × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j for the establishment for year i;
i = Each year in the first compliance period, namely 2013 and 2014;
j = Type of activity;
max = Maximum value, representing the greater of the intensity values Idep j and I2020s j;
Idep j = Intensity target of the GHG emissions attributable to type of activity j at an establishment, calculated using equation 4-2, in metric tonnes CO2 equivalent per reference unit;
I2020s j = Intensity target of GHG emissions attributable to type of activity j in the sector for the year 2020, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(5.2) Calculation method for the years 2015 to 2020
(5.2.1) Establishment considered on a sectoral basis for the years 2015 to 2017 and establishment considered on a sectoral basis that possesses all the GHG emissions data for years d to d+2, or d to d+1 where d is the year in which the establishment became operational for the years 2018 to 2020
Equation 5-2 Calculation of the number of GHG emission units allocated without charge by type of activity for an establishment covered as of 2013 and without data for 2007-2010 or covered after 2013 that is considered on a sectoral basis for the years 2015 to 2020
_ _
|m Idep j + (n - m)I2020S j |
Ai j = max |__________________________;I2020S j| × PRi j
|_ n _|
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j for the establishment for year i;
i = Each year in the period 2015-2020 for which the emitter is required to cover GHG emissions;
j = Type of activity;
max = Maximum value, representing the greater of the intensity values calculated;
m = 2020 – i;
n = Minimum, representing the lesser of 6 and (2020 – (d+1));
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold.
Idep j = Intensity target of the GHG emissions attributable to type of activity j at an establishment, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
I2020Sj = Intensity target of GHG emissions attributable to type of activity j in the sector for the year 2020, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(5.2.2) Establishment considered on a sectoral basis that does not possess all the GHG emissions data for years d to d+2, or d to d+1 where d is the year in which the establishment became operational for the years 2018 to 2020
Equation 5-3 Calculation of the total quantity of GHG emission units allocated free of charge by type of activity at an establishment covered from 2018 that is considered on a sectoral basis for the years 2018 to 2020 and that does not possess all the GHG emissions data for the years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational
Where:
Ai = Total number of GHG emission units allocated free of charge for an establishment for year i;
i = Each year of the period 2018-2020 for which the emitter is required to cover GHG emissions;
max = Maximum value between the 2 calculated values;
j = Type of activity;
m = Total number of type of activities of the establishment;
I2020S = Target intensity for GHG emissions attributable to type of activity j of the sector for the year 2020, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used by the establishment for the type of activity j during year i;
p = 2020-i;
q = Maximum value between 1 and p;
ECTOTAL i = Energy consumption of year i, calculated using equation 4-22, in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2/GJ equivalent, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, with n=i-(d+2);
d = First year for which the establishment’s GHG emissions are equal to or exceed the emissions threshold;
GHGFP i = Fixed process emissions of the establishment for year i, in metric tonnes equivalent CO2;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishment covered between 2018 and 2020, as defined in Table 4 of this Appendix, with n=i-(d+2);
GHGO i = other emissions of the establishment for year i, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, with n=i-(d+2).
6. Special cases
(6.1) Establishment producing aluminum using Söderberg anode technology after 2014
Equation 6-1 Calculation of the intensity target of GHG emissions for year 2020 at an establishment producing aluminum using Söderberg anode technology after 2014
I2020 sod = I 2020s electrolysis + (I2020s baked anode × 0.55)
Where:
I2020 sod = Intensity target of GHG emissions for year 2020 at an establishment producing aluminum using Söderberg anode technology after 2014, in metric tonnes CO2 equivalent per metric tonne of liquid aluminum;
I2020s electrolysis = Intensity target of GHG emissions for year 2020 in the aluminum sector for the type of activity “aluminum production”, calculated using equation 3-2 based on data from establishments using prebaked anode technology, in metric tonnes CO2 equivalent per metric tonne of liquid aluminum;
I2020s baked anode = Intensity target of GHG emissions for year 2020 in the aluminum sector for the type of activity “baked anode production”, calculated using equation 3-2 based on data from establishments using prebaked anode technology, in metric tonnes CO2 equivalent per metric tonne of baked anodes;
0.55 = Ratio between consumed baked anode production and aluminum production, in metric tonnes of baked anodes per metric tonne of liquid aluminum.
(6.2) Establishment producing alumina from bauxite
Equation 6-2 Calculation of the total quantity of GHG emission units allocated without charge for an establishment producing alumina from bauxite for 2013 to 2020
Ai = 0.40 × PRi
Where:
Ai = Total quantity of GHG emission units allocated without charge for an establishment producing alumina from bauxite for year i;
i = Each year included in the period 2013-2020;
0.40 = Intensity target of GHG emissions attributable to the production of alumina from bauxite for 2013 to 2020, in metric tonnes CO2 equivalent per metric tonne of aluminum hydrate (AI2O3 × 3 H2O) expressed as alumina (AI2O3) equivalent, 1 metric tonne of aluminum hydrate in alumina equivalent corresponding to 0.6536 metric tonnes aluminum hydrate;
PRi = Total quantity of aluminum hydrate expressed as alumina (Al2O3) equivalent produced at the establishment in year i, in metric tonnes.
(6.3) Establishment producing rigid foamed insulation
The total quantity of GHG emission units allocated without charge for an establishment producing rigid foamed insulation is calculated, for 2013 and 2014, using equation 2-1, where “I2013” is calculated using equations 6-3 to 6-6 and, for 2015 to 2020, using equation 6-7:
Equation 6-3 Calculation of the intensity target of GHG emissions attributable to an establishment producing rigid foamed insulation for 2013 and 2014
I 2013 = IFP + (R × IC) + IO
Where:
I 2013 = Intensity target of GHG emissions at the establishment for 2013 and 2014, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
IFP = Intensity of GHG fixed process emissions at the establishment for year 2010, calculated using equation 6-4, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
R = Multiplication factor for GHG combustion emissions intensity at the establishment, calculated using equations 4-6 and 4-7;
IC = Intensity of GHG combustion emissions at the establishment for year 2010, calculated using equation 6-5, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
IO = Intensity of other GHG emissions at the establishment for year 2010, calculated using equation 6-6, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation.
Equation 6-4 Intensity of GHG fixed process emissions at an establishment producing rigid foamed insulation for year 2010
GHG FP2010
IFP = __________
PR2010
Where:
IFP = Intensity of GHG fixed process emissions at the establishment for year 2010, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
GHG FP2010 = GHG fixed process emissions at the establishment for year 2010, in metric tonnes CO2 equivalent;
PR2010 = Total quantity of rigid foamed insulation produced at the establishment in year 2010, in board feet of rigid foamed insulation.
Equation 6-5 Intensity of GHG combustion emissions at an establishment producing rigid foamed insulation for year 2010
GHG C 2010
IC = __________
PR 2010
Where:
IC = Intensity of GHG combustion emissions at theestablishment for year 2010, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
GHG C 2010 = GHG combustion emissions at the establishment for year 2010, in metric tonnes CO2 equivalent;
PR 2010 = Total quantity of rigid foamed insulation produced at the establishment in year 2010, in board feet of rigid foamed insulation.
Equation 6-6 Intensity of other GHG emissions at an establishment producing rigid foamed insulation for year 2010
GHG O 2010
IO = __________
PR 2010
Where:
IO = Intensity of other GHG emissions at the establishment for year 2010, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
GHG O2010 = Other GHG emissions at the establishment for year 2010, in metric tonnes CO2 equivalent;
PR 2010 = Total quantity of rigid foamed insulation produced at the establishment in year 2010, in board feet of rigid foamed insulation.
Equation 6-7 Calculation of the total quantity of GHG emission units allocated without charge for an establishment producing rigid foamed insulation for 2015 to 2020
Ai [IFP + R(0.99)n IC + (0.99)n IO] × PRi
Where:
Ai = Total quantity of GHG emission units allocated without charge for an establishment producing rigid foamed insulation for year i;
i = Each year included in the period 2015-2020 for which the emitter is required to cover its GHG emissions;
IFP = Intensity of GHG fixed process emissions at the establishment for year 2010, calculated using equation 6-4, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
R = Multiplication factor for GHG combustion emissions intensity at the establishment, calculated using equations 4-6 and 4-7;
0.99 = Proportion corresponding to an annual improvement of 1% of the intensity factor;
n = i – 2015+1;
IC = Intensity of GHG combustion emissions at the establishment for year 2010, calculated using equation 6-5, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
IO = Intensity of other GHG emissions at the establishment for year 2010, calculated using equation 6-6, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
PRi = Total quantity of rigid foamed insulation produced at the establishment in year i, in board feet of rigid foamed insulation.
Equation 6-7.1 Calculation of the intensity target of fixed process emissions at an establishment fabricating rigid foamed insulation
IFP2020j = IFP
Where:
IFP2020j = Intensity of fixed process emissions calculated for year 2020 for type of activity j;
j = Type of activity, namely the fabrication of rigid foamed insulation;
IFP = Intensity of fixed process emissions at the establishment for year 2010, calculated using equation 6-4, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation.
Equation 6-7.2 Calculation of the intensity target for combustion emissions at an establishment fabricating rigid foamed insulation
IC2020j = R × 0.9415 × I C
Where:
IC2020j = Intensity of combustion emissions calculated for year 2020 for type of activity j;
j = Type of activity, namely the fabrication of rigid foamed insulation;
R = Intensity multiplication factor for combustion emissions at the establishment, calculated using equations 4-6 and 4-7;
0.9415 = Proportion corresponding to an annual improvement of 1% in the intensity factor during years 2015 to 2020;
IC = Intensity of combustion emissions at the establishment for year 2010, calculated using equation 6-5, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation.
Equation 6-7.3 Calculation of the intensity target of other emissions at an establishment fabricating rigid foamed insulation
IO2020j = 0.9415 × IO
Where:
IO2020j = Intensity of other emissions calculated for year 2020 for type of activity j;
j = Type of activity, namely the fabrication of rigid foamed insulation;
0.9415 = Proportion corresponding to an annual improvement of 1% in the intensity factor during years 2015 to 2020;
IO = Intensity of fixed process emissions at the establishment for year 2010, calculated using equation 6-6 in metric tonnes CO2 equivalent per board foot of rigid foamed insulation.
(6.4) Establishment producing catalytic zinc and using hydrogen as a fuel to supply its furnaces
The total quantity of GHG emission units allocated without charge for an establishment producing zinc and using hydrogen as a fuel to supply its furnaces is calculated using equation 6-8 for 2013 and 2014, using Equation 6-9 for 2015 to 2020 and using equation 6-10.1 for 2021 to 2023:
Equation 6-8 Calculation of the total quantity of GHG emission units allocated without charge to an establishment producing cathodic zinc and using hydrogen as a fuel to supply its furnaces for 2013 and 2014
Ai j = (I2013j + FH i) × PRi j
Where:
Ai j = Total quantity of GHG emission units allocated without charge for cathodic zinc production at the establishment for year i;
i = Each year included in the first compliance period, namely 2013 and 2014;
j = Type of activity, namely cathodic zinc production;
I2013j = Intensity target of GHG emissions attributable to the production of cathodic zinc at the establishment for 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of cathodic zinc;
FH i = Adjustment factor for the partial or total loss of hydrogen supply for year i, calculated using equation 6-10;
PRi j = Total quantity of cathodic zinc produced at the establishment in year i, in metric tonnes of cathodic zinc.
Equation 6-9 Calculation of the total quantity of GHG emission units allocated without charge to an establishment producing cathodic zinc and using hydrogen as a fuel to supply its furnaces for 2015 to 2020
Where:
Ai j = Total quantity of GHG emission units allocated without charge for cathodic zinc production at the establishment for year i;
i = Each year included in the second and third compliance periods, namely 2015, 2016, 2017, 2018, 2019 and 2020;
j = Type of activity, namely cathodic zinc production;
6 = Six years in the linear regression, namely 2015, 2016, 2017, 2018, 2019 and 2020;
x = (i – 2015) + 1;
I2013j = Intensity target of GHG emissions attributable to the production of cathodic zinc at the establishment for 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of cathodic zinc;
I2020j = Intensity target of GHG emissions attributable to the production of cathodic zinc at the establishment for year 2020, calculated using equation 2-8, in metric tonnes CO2 equivalent per metric tonne of cathodic zinc;
FH i = Adjustment factor for the partial or total loss of hydrogen supply for year i calculated using equation 6-10;
PRi j = Total quantity of cathodic zinc produced at the establishment for year i, in metric tonnes of cathodic zinc.
Equation 6-10 Calculation of the adjustment factor for the partial or total loss of hydrogen supply
>
Where:
FHi = Adjustment factor for the partial or total loss of hydrogen supply for year i;
i = Each year included in the period 2013-2020 for which the emitter is required to cover its GHG emissions;
0.060 = Minimum ratio between the annual consumption of hydrogen and the annual production from 2007 to 2010, in cubic kilometres of hydrogen per metric tonne of cathodic zinc;
H2,i = Hydrogen consumption for year i, in cubic kilometres;
PRi j = Total quantity of cathodic zinc produced at the establishment for year i, in metric tonnes of cathodic zinc;
0.3325 = Volume equivalency factor for hydrogen and natural gas, in cubic kilometres of natural gas per cubic kilometre of hydrogen;
1.889 = Emission factor for natural gas, in metric tonnes CO2 equivalent par cubic kilometre of natural gas;
0.80 = Proportion corresponding to 80% combustion emission intensity;
0.99 = Proportion corresponding to an annual improvement of 1% of the intensity factor;
n = Value of 0 for 2013 and 2014, or (i-2015 +1) for 2015 to 2020.
Equation 6-10.1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment producing cathodic zinc and using hydrogen as a fuel to supply its furnaces for the years 2021 to 2023
Ai j = [( IC stan j × aC,i + IO stan j × aO,i + FHi) × PRi,j + max(GHGFP i,j; IFP stan j × PR i,j) × aFP,i] × AFi,j
Where:
Ai j = Total quantity of GHG emission units allocated without charge for the production of cathodic zinc at the establishment for year i;
i = Each year included in the period 2021 to 2023;
j = Type of activity, namely the production of cathodic zinc;
IC stan j = Standard intensity of combustion emissions attributable to the production of cathodic zinc at the establishment for the years 2021 to 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
IO stan j = Standard intensity of other emissions attributable to the production of cathodic zinc at the establishment for the years 2021 to 2023, calculated using equation 8-6, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 5 of this Appendix;
FH i = Adjustment factor for the partial or total loss of hydrogen supply for year i, calculated using equation 6-10.2;
max = Maximum value between GHGFP i,j and IFP stan j × PRi,j;
GHGFP I,j = Fixed process emissions attributable to the type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
IFP stan j = Standard intensity of fixed process emissions attributable to the production of cathodic zinc at the establishment for the years 2021 to 2023, calculated using equation 8-26, in metric tonnes CO2 equivalent per reference unit;
PR i j = Total quantity of cathodic zinc produced at the establishment in year i, in metric tonnes of cathodic zinc;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
AFi,j = Assistance factor for the production of cathodic zinc for year i, as defined in Table 7 of this Appendix.
Equation 6-10.2 Calculation of adjustment factor for the partial or total loss of hydrogen supply
Where:
FH i = Adjustment factor for the partial or total loss of hydrogen supply for year i;
i = Each year included in the period 2021 to 2023;
0.065 = Ratio between the annual consumption of hydrogen and the annual production during the year used to calculate the minimum annual intensity of combustion emissions, in cubic kilometres of hydrogen per metric tonne of cathodic zinc;
H2,i = Hydrogen consumption for year i, in cubic kilometres;
PRi j = Total quantity of cathodic zinc produced at the establishment in year i, in metric tonnes of cathodic zinc;
0.3325 = Volume equivalency factor for hydrogen and natural gas, in cubic kilometres of natural gas per cubic kilometre of hydrogen;
1.889 = Emission factor for natural gas, in metric tonnes CO2 equivalent per cubic kilometre of natural gas;
0.95 = Proportion corresponding to 95% of the minimum intensity of combustion emissions;
ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix.
6.5 New facility or production of a new reference unit
An emitter must, as soon as possible, notify the Minister of any new facility on the site of one of the emitter’s covered establishments or of the production of any new reference unit by submitting the following information:
(1) the name and contact information of the enterprise and of the establishment where the new facility is located or where the new reference unit is produced;
(2) the business number assigned to the emitter pursuant to the Act respecting the legal publicity of enterprises (chapter P-44.1), along with the identification number assigned under the National Pollutant Release Inventory of the Government of Canada, if any;
(3) where production at the new facility replaces all or some production at one of the emitter’s establishments or facilities in Québec that closed after 1 January 2008, the name and contact information of the establishment or facility that closed;
(4) the average annual quantity of reference units produced or used, by type of activity, at the closed establishment or facility during the 3 complete years preceding its closure.
(6.5.1) New facility at which production does not replace production at another establishment or facility
(1) Until 31 December 2017, the quantity of GHG emission units allocated without charge to an emitter to take into account a new facility located on the site of one of the emitter’s covered establishments at which production does not replace production at another establishment or facility is calculated
(a) in the case of a facility that is not considered on a sectoral basis, using equations 4-1 to 4-8;
(b) in the case of a facility that is considered on a sectoral basis, using equations 5-1 and 5-2.
(2) For the years 2018 to 2020, the quantity of GHG emission units allocated without charge to an emitter for a new facility located on the site of one of the emitter’s covered establishments at which production does not replace production at another establishment or facility must be calculated using Equation 6.10-3 for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are not all available.
Equation 6-10.3 Calculation of the number of GHG emission units allocated without charge for a new facility at a covered establishment for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are not all available
ANF i = ((ECNF TOTAL i× EF × aC,i) + (GHGNF FP i × aFP,i) + (GHGNF O i × aO,i))
Where:
ANF i = Total number of GHG emission units allocated without charge for a new facility for year i;
i = Each year in the period for which the emitter is required to cover GHG emissions;
ECNF TOTAL i = Energy consumption of the new facility in year i, calculated using equation 6-10.4, in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 4 of this Appendix, where n=i-(d+2);
d = First year for which the GHG emissions of the new facility are equal to or exceed the emissions threshold;
GHGNF FP i = Fixed process emissions of the new facility for year i, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 4 of this Appendix, where n=i-(d+2);
GHGNF O i = Other emissions of the new facility for year i, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 4 of this Appendix, where n=i-(d+2).
Equation 6-10.4 Calculation of the energy consumption for year i of a new facility at a covered establishment for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are not all available
  n 
ECNF TOTAL i=(Fuelk × HHVk)
  k=1 
Where:
ECNF TOTAL i = Energy consumption of the new facility in year i, in GJ;
i = Each year in the period for which the emitter is required to cover its GHG emissions;
n = Total number of types of fuel used;
k = Type of fuel;
Fuelk = Mass or volume of fuel burned, expressed
(a) in dry metric tonnes, where the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric tonne, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(3) For the years 2021 to 2023, the quantity of GHG emission units allocated without charge to an emitter for a new facility situated on the site of a covered establishment that is not considered on a sectoral basis must be calculated
(a) for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are not all available, using equation 6-10.3;
(b) for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available, using equations 6-10.5 and 7-1.
Equation 6-10.5 Calculation of the number of GHG emission units allocated without charge by type of activity at a new facility of a covered establishment that is not considered on a sectoral basis for the years 2021 to 2023 during the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available
ANF i j = ( IFP stan NF j × aFP,i + IC stan NF j × aC,i + IO stan NF j +× aO,i) × PR i,j × AFi,j
Where:
ANF i j = Total number of GHG emission units allocated without charge by type of activity j at a new facility for year i;
i = Each year included in the period 2021 to 2023 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP stan NF j = Standard intensity of fixed process emissions attributable to type of activity j of the new facility using equation 6-10.7, in metric tonnes CO2 equivalent per reference unit;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix for a new facility covered prior to 2021 and in Table 6 of this Appendix for a new facility covered as of 2021, where n=i-(d+2);
IC stan NF j = Standard intensity of GHG combustion emissions attributable to type of activity j at the new facility using equation 6-10.7, in metric tonnes CO2 equivalent per reference unit;
ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix for a new facility covered prior to 2021 and in Table 6 of this Appendix for a new facility covered as of 2021, where n=i-(d+2);
d = First year for which the GHG emissions of the new facility are equal to or exceed the emissions threshold;
IO stan NF j = Standard intensity of other emissions attributable to type of activity j at the new facility calculated using equation 6-10.8, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 5 of this Appendix for a new facility covered prior to 2021 and in Table 6 of this Appendix for a new facility covered as of 2021, where n=i-(d+2);
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 6-10.6 Calculation of the standard intensity of fixed process emissions by type of activity at a new facility of a covered establishment that is not considered on a sectoral basis for the period in which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available
Or
Where:
IFP stan NF j = Standard intensity of fixed process emissions attributable to the type of activity j of the new facility for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, in metric tonnes CO2 equivalent per reference unit;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational;
j = Type of activity;
d = First year for which the GHG emissions of the new facility are equal to or exceed the emissions threshold;
GHGFP NF i j = Fixed process emissions attributable to type of activity j at the new facility for year i, in metric tonnes CO2 equivalent;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i.
Equation 6-10.7 Calculation of the standard intensity of combustion emissions by type of activity at a new facility of a covered establishment that is not considered on a sectoral basis for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available
Or
Where:
IC stan NF j = Standard intensity of GHG combustion emissions attributable to type of activity j at the new facility for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, in metric tonnes CO2 equivalent per reference unit;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational;
j = Type of activity;
d = First year for which the GHG emissions of the new facility are equal to or exceed the emissions threshold;
GHGC NF i j = Combustion emissions attributable to type of activity j at the new facility for year i, in metric tonnes CO2 equivalent;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i.
Equation 6-10.8 Calculation of the standard intensity of other emissions by type of activity at a new facility of a covered establishment that is not considered on a sectoral basis for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available
Or
Where:
IO stan NF j = Standard intensity of other emissions attributable to type of activity j at the new facility for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, in metric tonnes CO2 equivalent per reference unit;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational;
j = Type of activity;
d = First year for which the GHG emissions of the new facility are equal to or exceed the emissions threshold;
GHGO NF i j = Other emissions attributable to type of activity j at the new facility for year i, in metric tonnes CO2 equivalent;
PR,ij = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(4) For the years 2021 to 2023, the quantity of GHG emission units allocated without charge to an emitter for a new facility situated on the site of a covered establishment that is considered on a sectoral basis must be calculated
(a) for the period during which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are not all available, using equation 6-10.3;
(b) for the period during which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available, using equations 6-10.9 and 7.1.
Equation 6-10.9 Calculation of the number of GHG emission units allocated without charge by type of activity at a new facility at a covered establishment that is considered on a sectoral basis for the years 2021 to 2023
ANF i j = I(S NF)i,j × PR i,j × AFi,j
Where:
ANF i j = Total number of GHG emission units allocated without charge by type of activity j at a new facility for year i;
i = Each year included in the period 2021 to 2023 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
I(S NF) i,j = Intensity of GHG emissions attributable to type of activity j at new facilities in the sector for year i, determined in accordance with Tables 1 to 2 of this Appendix, in metric tonnes CO2 equivalent per reference unit;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
(6.5.2) New facility of an emitter at which production replaces all or some production at another of the emitter’s establishments or facilities in Québec that closed after 1 January 2008
The quantity of GHG emission units allocated without charge to an emitter to take into account a new facility located on the site of one of the emitter’s covered establishments at which production replaces all or some production at another of the emitter’s establishments or facilities in Québec that closed after 1 January 2008 is calculated.
(1) for any annual quantity of reference units produced or used by the new facility not exceeding the average annual quantity of reference units produced or used, by type of activity, at the closed establishment or facility during the 3 complete years preceding its closure:
(a) in the case of a facility that is not considered on a sectoral basis, using equations 1-1 and 2-1 to 2-9 and applying equations 2-2 to 2-8 based on data from the closed establishment or facility;
(b) in the case of a facility considered on a sectoral basis, using equations 1-1 and 3-1 to 3-10 and applying equations 3-2 to 3-9 based on data from the closed establishment or facility;
(2) for any annual quantity of reference units produced or used by the new facility that exceeds the average annual quantity of reference units produced or used, by type of activity, at the closed establishment or facility during the 3 complete years preceding its closure:
(a) in the case of a facility that is not considered on a sectoral basis, using equations 4-1 to 4-8;
(b) in the case of a facility considered on a sectoral basis, using equations 5-1 and 5-2.
(6.5.3) Production of a new reference unit
(1) until 2020, the quantity of GHG emission units allocated without charge to an emitter for the production of a new reference unit by one of its covered establishments must be calculated using equation 4-21 for the period during which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the first year of production of the new reference unit, are not all available;
(2) for the years 2021 to 2023, the quantity of GHG emission units allocated without charge to an emitter for the production of a new reference unit by a covered establishment must be calculated
(a) in the case of an establishment that is not considered on a sectoral basis, for the period during which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the first year of production of the new reference unit, are not all available, using equation 11-5;
(b) in the case of an establishment that is not considered on a sectoral basis, for the period during which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the first year of production of the new reference unit, are all available, using equations 11-1 to 11-4, which apply from 2018;
(c) in the case of an establishment that is considered on a sectoral basis, for the period during which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the first year of production of the new reference unit, are not all available, using equation 11-5;
(d) in the case of an establishment that is considered on a sectoral basis, for the period during which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the first year of production of the new reference unit, are all available, using equation 9-1.
(6.6) Establishment covered after 2013, but prior to 2021, at which production replaces all or some production at one of the emitter’s establishments or facilities in Québec that closed after 1 January 2008
Every emitter, at one of whose establishments covered after 2013 production replaces all or some production at another of the emitter’s establishments or facilities in Québec that closed after 1 January 2008, must, as soon as possible, notify the Minister by submitting the following information:
(1) the name and contact information of the enterprise and the establishment;
(2) the business number assigned to the emitter pursuant to the Act respecting the legal publicity of enterprises (chapter P-44.1), along with the identification number assigned under the National Pollutant Release Inventory of the Government of Canada, if any;
(3) the name and contact information of the replaced establishment or facility;
(4) the quantity, by type of activity, of reference units produced or used at the closed establishment or facility.
The quantity of GHG emission units allocated without charge to the emitter for the establishment is calculated
(1) for any annual quantity of reference units produced or used at the establishment not exceeding the average annual quantity of reference units produced or used, by type of activity, at the closed establishment or facility during the 3 complete years preceding its closure:
(a) in the case of an establishment that is not considered on a sectoral basis, using equations 1-1 and 2-1 to 2-9 and applying equations 2-2 to 2-8 based on data from the closed establishment or facility;
(b) in the case of an establishment that is considered on a sectoral basis, using equations 1-1 and 3-1 to 3-10 and applying equations 3-2 to 3-9 based on data from the closed establishment or facility;
(2) for any annual quantity of reference units produced or used at the establishment that exceeds the average annual quantity of reference units produced or used, by type of activity, at the closed establishment or facility during the 3 complete years preceding its closure:
(a) in the case of an establishment that is not considered on a sectoral basis, using equations 4-1 to 4-8;
(b) in the case of an establishment that is considered on a sectoral basis, using equations 5-1 and 5-2.
(6.7) Enterprise that acquires, for consumption of the enterprise or for sale in Québec, power generated in another Canadian province or territory or in a US state where a system covering electricity production in particular has been established by an entity that is not a partner entity
(1) Until 2020, the quantity of GHG emission units allocated without charge to an emitter for an enterprise that acquires, for consumption of the enterprise or for sale in Québec, power generated in another Canadian province or territory or in a US state where a system covering electricity production in particular has been established by an entity that is not a partner entity must be calculated using equation 6-11.
(2) For the years 2021 to 2023, the quantity of GHG emission units allocated without charge to an emitter for an enterprise that acquires, for consumption of the enterprise or for sale in Québec, power generated in another Canadian province or territory or in a US state where a system covering electricity production in particular has been established by an entity that is not a partner entity must be calculated using equation 6-11.1.
Equation 6-11 Calculation of the total GHG emission units allocated free of charge to an enterprise that acquires, for consumption of the enterprise or for sale in Québec, power generated in another Canadian province or territory or in a US state where a system covering electricity production in particular has been established by an entity that is not a partner entity

PiNon-WCI
Ai = ________ × EiNon-WCI
PiWCI
Where:
Ai = Number of emission units allocated free of charge for year i;
PiNon-WCI = Weighted average sale price of emission allowances of year i at an auction held during year i by other Canadian provinces or territories or by US states where a system covering electricity production in particular has been established by an entity that is not a partner entity, in US dollars;
PiWCI = Weighted average sale price of emission allowances of year i at an auction held during year i by Québec or other Canadian provinces or territories or by US states where a system covering electricity production in particular has been established by a partner entity, in US dollars;
EiNon-WCI = Annual GHG emissions for year i relating to the production of electricity acquired from another Canadian province or territory or from a US state where producers are subject to a system established by an entity that is not a partner entity, in metric tonnes CO2 equivalent;
i = Each year of the 2013-2020 period for which the emitter is required to cover its emissions.
For the purposes of this equation, where the sale price of the emission allowances that is used for calculation is only available in Canadian dollars, the price must be converted in US dollars at the official conversion rate of the Bank of Canada at noon on the date of the auction.
Equation 6-11.1 Calculation of the total quantity of GHG emission units allocated without charge to an enterprise that acquires, for consumption of the enterprise or for sale in Québec, power generated in another Canadian province or territory or in a US state where a system covering electricity production in particular has been established by an entity that is not a partner entity
Where:
Ai = Total quantity of GHG emission units allocated without charge for year i;
PiNon-WCI = Weighted average sale price of emission allowances of year i at an auction held during year i by other Canadian provinces or territories or by US states where a system covering electricity production has been established by an entity that is not a partner entity, in US dollars;
PiWCI = Weighted average sale price of emission allowances of year i at an auction held during year i by Québec or other Canadian provinces or territories or by US states where a system covering electricity production in particular has been established by a partner entity, in US dollars;
EiNon-WCI = Annual GHG emissions for year i relating to the production of electricity acquired from another Canadian province or territory or from a US state where producers are subject to a system established by an entity that is not a partner entity, taking into account the new GWP values determined in Addendum III to the document “Report of the Conference of the Parties on its nineteenth session, held in Warsaw from 11 to 23 November 2013”, FCCC/CP/2013/10/Add.3, (new GWP values), in metric tonnes CO2 equivalent;
i = Each year in the period 2021-2023 for which the emitter is required to cover its emissions.
(6.8) Copper foundry.
The total quantity of GHG emission units allocated free of charge to a copper foundry is calculated using equation 6-12 for years 2013 and 2014, using equation 6-13 for the years 2015 to 2020, and using equation 6-14 for the years 2021 to 2023:
Equation 6-12 Calculation of the total quantity of GHG emission units allocated free of charge to a copper foundry for years 2013 and 2014
Ai = (I2013cu × PR cu,i) + (I2013 RMS × PR RSM,i) + Arecycl ,i
Where:
Ai = Total quantity of GHG emission units allocated free of charge for the production of copper anodes at the establishment for year i;
i = Each year included in the first compliance period, namely 2013 and 2014;
I2013cu = Intensity target of GHG emissions attributable to the production of copper anodes at the establishment for years 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
PRi,cu = Total quantity of copper anodes produced by the establishment during year i, in metric tonnes of copper anodes;
I2013RSM = Intensity target for GHG emissions attributable to the treatment of gas from the recycling of secondary materials at the establishment for 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of recycled secondary materials;
PR RSM,i = Total quantity of secondary materials recycled at the establishment in year i, in metric tonnes of recycled secondary materials;
Arecycl,i = GHG emissions attributable to the carbon content of recycled secondary materials introduced into the process materials for year i, in metric tonnes CO2 equivalent;
Equation 6-13 Calculation of the total quantity of GHG emission units allocated free of charge to a copper foundry for years 2015 to 2020
Where:
Ai = Total quantity of GHG emission units allocated free of charge for the production of copper anodes at the establishment for year i;
i = Each year included in the second and third compliance periods, namely 2015, 2016, 2017, 2018, 2019 and 2020;
6 = Six years in the linear regression, namely 2015, 2016, 2017, 2018, 2019 and 2020;
x = (i – 2015) + 1;
I2013cu = Intensity target of GHG emissions attributable to the production of copper anodes at the establishment for years 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
I2020cu = Intensity target of GHG emissions attributable to the production of copper anodes, calculated using equation 2-8, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
PRi,cu, i = Total quantity of copper anodes produced by the establishment during year i, in metric tonnes of copper anodes;
I2013RSM = Intensity target for GHG emissions attributable to gas from the recycling of secondary materials at the establishment for 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of recycled secondary materials;
I2020RSM = Intensity target for GHG emissions attributable to the treatment of gas from the recycling of secondary materials, calculated using equation 2-8, in metric tonnes CO2 per metric tonne of recycled secondary materials;
PR RSM,i = Total quantity of secondary materials recycled at the establishment in year i, in metric tonnes of recycled secondary materials;
Arecycl,i = GHG emissions attributable to the carbon content of recycled secondary materials introduced in the process materials for year i, in metric tonnes CO2 equivalent.
For the application of equations 6-12 and 6-13, recycled secondary materials used in a process at a copper foundry are deemed to be all materials used in the process other than fuel, ore, reducing agents, materials used for slag purification, carbonated reactants and carbon electrodes.
Equation 6-14 Calculation of the total quantity of GHG emission units allocated free of charge for a copper foundry for the years 2021 to 2023
Ai = [( IC stan cu × aC,i × Pcu,i) + [max (GHGFP cu,i; IFP stan cu × P R cu,i)] × aFP,i] × AFcu,i + [( IC stan RSM × aC,i × PRSM,i) + Arecycl,i] × AFRSM,i
Where:
Ai = Total quantity of GHG emission units allocated free of charge for the production of copper anodes at the establishment for year i;
IC stan cu = Standard intensity of combustion emissions attributable to the production of copper anodes at the establishment for the years 2021 to 2023, calculated using equation 8-2, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
PR cu,i = Total quantity of copper anodes produced by the establishment during year i, in metric tonnes of copper anodes;
max = Maximum value between GHGFP cu,i and IFP stan cu x Pcu,i;
GHGFP CU,i = Fixed process emissions attributable to the production of copper anodes at the establishment for year I, in metric tonnes CO2 equivalent;
IFP stan cu = Standard intensity of fixed process emissions attributable to the production of copper anodes at the establishment for the years 2021 to 2023, calculated using equation 8-6, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
AFcu,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
IC stan RSM = Standard intensity of combustion emissions attributable to the treatment of gas from the recycling of secondary materials at the establishment for the years 2021 to 2023, calculated using equation 8-2, in metric tonnes CO2 equivalent per metric tonne of recycled secondary materials;
PR RSM,i = Total quantity of secondary materials recycled at the establishment in year i, in metric tonnes of recycled secondary materials;
Arecycl,i = GHG emissions attributable to the carbon content of recycled secondary materials introduced into the process for year i, in metric tonnes CO2 equivalent;
AFRSM,i = Assistance factor for the treatment of gas from the recycling of secondary materials in year i, as defined in Table 7 of this Appendix.
For the application of Equation 6-14, recycled secondary materials used in a process at a copper foundry are deemed to be all materials used in the process other than fuel, ore, reducing agents, materials used for slag purification, carbonated reactants and carbon electrodes.
Equation 6-15 Calculation of the total quantity of GHG emission units allocated free of charge for the production of steel (slabs, billets or ingots), metallic silicon, ferrosilicon, reduced iron pellets or titanium dioxide (TiO2) for the years 2021 to 2023
Ai,j = [( IC stan j × aC,i + IO stan j × aO,i) × PR i,j + max (GHGFP i,j; IFP stan j × PR i,j) × aFP,i] × AFi,j
Where:
A i,j = Total quantity of GHG emission units allocated free of charge by type of activity j for year i;
i = Each year included in the period from 2021 to 2023 for which the emitter is required to cover GHG emissions;
j = Type of activity, namely the production of steel (slabs, billets or ingots) or the production of metallic silicon or the production of ferrosilicon, reduced iron pellets or titanium dioxide (TiO2);
IC stan j = Standard intensity of combustion emissions attributable to type of activity j at the establishment for the years 2021 to 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per reference unit;
ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
IO stan j = Standard intensity of other emissions attributable to type of activity j at the establishment for the years 2021 to 2023, calculated using equation 8-6, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 5 of this Appendix;
PRi,j = Total quantity of reference units produced or used by the establishment for the type of activity j during year i;
max = Maximum value between GHGFPi,j and IFP stan j × PR i,j;
GHGFPi,j = Fixed process emissions attributable to the type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
IFP stan j = Standard intensity of fixed process emissions attributable to the type of activity j at the establishment for the years 2021 to 2023, calculated using equation 8-2, in metric tonnes CO2 equivalent per reference unit;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
AF i,j = Assistance factor for the type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 6-16 Calculation of the total quantity of GHG emission units allocated free of charge to a copper refinery for the years 2021 to 2023
Ai = [( IC stan cath × aC,i ) + ( IFP stan cath × aFP,i)] × PR cath,i × AFcath,i + [( GHGC,i RSM × aC,i)] × AFRSM,i
Where:
Ai = Total quantity of GHG emission units allocated free of charge for the production of copper cathodes at the establishment for year i;
IC stan cath = Standard intensity of combustion emissions attributable to the production of copper cathodes at the establishment for the years 2021 to 2023, calculated using equation 8-2, in metric tonnes CO2 equivalent per metric tonne of copper cathodes;
ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
IFP stan cath = Standard intensity of fixed process emissions attributable to the production of copper cathodes at the establishment for the years 2021 to 2023, calculated using equation 8-6, in metric tonnes CO2 equivalent per metric tonne of copper anode;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
PR cath,i = Total quantity of copper cathodes produced at the establishment for year i, in metric tonnes of copper anodes;
AFcath,i = Assistance factor for the production of copper cathodes for year i, as defined in Table 7 of this Appendix;
GHGC,i RSM = GHG combustion emissions attributable to the treatment of recycled secondary materials for year i, in metric tonnes CO2 equivalent;
AFRSM,i = Assistance factor for the treatment of recycled secondary materials for year i, as defined in Table 7 of this Appendix.
(7) Calculation of the total quantity of GHG emission units allocated without charge to an establishment for the years 2021 to 2023
Equation 7-1 Calculation of the total quantity of GHG emission units allocated without charge to an establishment for the years 2021 to 2023
  m 
Aestablishment i=Ai,j
  j=1 
Where:
Aestablishment i = Total quantity of GHG emission units allocated without charge to an establishment for year i for all types of activity j of the establishment listed in Table B of this Appendix;
i = Each year included in the period 2021 to 2023 for which the emitter is required to cover GHG emissions;
m = Total number of types of activity at the establishment;
j = Each type of activity at the establishment;
Ai, j = Number of GHG emission units allocated without charge by type of activity j for year i, calculated using equations 8-1, 8-1.1, 9-1, 10-1, 11-1, 11-5, 12-1, 13-1, 14-1, 14-5, 15-1, 6-10.1, 6-10.5, 6-10.9, 6-11.1, 6-14, 6-15 or 6-16.
(8) Establishment covered prior to 2021 that is not considered on a sectoral basis or establishment producing lime or liquid aluminum using a side-worked prebaked anode technology
Equation 8-1 Calculation of the number of GHG emission units allocated without charge by type of activity for the years 2021 to 2023 at an establishment covered prior to 2021 that is not considered on a sectoral basis or an establishment producing lime or liquid aluminum using a side-worked prebaked anode technology
Ai j= ( IFP stan j × aFP,i + IC stan j × aC,i + IO stan j × aO,i) × PR i,j × AFi,j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the period 2021 to 2023 for which the emitter is required to cover GHG emissions;
j = Type of activity;
IFP stan j = Standard intensity of fixed process emissions attributable to type of activity j at the establishment for the years 2021 to 2023 using equation 8-2, 8-8 or equation 8-11, in metric tonnes CO2 equivalent per reference unit;
Ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
IC stan j = Standard intensity of GHG combustion emissions attributable to type of activity j at the establishment for the years 2021 to 2023, calculated using, as the case may be, equation 8-4, 8-9 or 8-13, or, in the case of an establishment producing alumina from bauxite, having a value of 0.4, in metric tonnes CO2 equivalent per reference unit;
AFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
IO stan j = Standard intensity of other emissions attributable to type of activity j at the establishment for the years 2021 to 2023 using equation 8-6, 8-10 or 8-17, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 5 of this Appendix;
P Ri,j = Total quantity of reference units produced or used at the establishment for type of activity j during year i;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 8-1.1 Calculation of the number of GHG emission units allocated free of charge per type of activity for the years 2021 to 2023 at an establishment covered prior to 2021 that is not considered on a sectoral basis and does not possess a determined reference unit
Ai = [(ECTOTAL,av × EF × aC,i) + (GHGFP,av × aFP,i) + (GHGO,av × aA,i)] × AFi,j
Where:
Ai = Total number of GHG emission units allocated free of charge for year i;
i = Each year included in the period 2021 to 2023 for which the emitter is required to cover GHG emissions;
ECTOTAL,av = Average energy consumption for the reference years, calculated, as the case may be, using equation 4-24 or 4-40, in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2/GJ equivalent, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
GHGFP,av = Average fixed process emissions at the establishment for the reference years, in metric tonnes CO2 equivalent, calculated using the new GWP values;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
GHGO,av = Average other emissions at the establishment for the reference years, in metric tonnes CO2 equivalent, calculated using the new GWP values;
ao,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 5 of this Appendix;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
(8.1) Calculation method for standard intensities for an establishment using GHG emissions data for the years 2007 to 2010
Equation 8-2 Calculation of the standard intensity of fixed process emissions by type of activity at an establishment that is not considered on a sectoral basis or an establishment producing liquid aluminum using a side-worked prebaked anode technology for the years 2021 to 2023 and using GHG emissions data for the years 2007 to 2010
IFP stan j = CFP j × IFP2020 j
Where:
IFP stan j = Standard intensity of fixed process emissions for the period 2021-2023 for type of activity j;
CFP j = Correction factor for the intensity of fixed process emissions for type of activity j, calculated using equation 8-3;
IFP2020 j = Intensity of fixed process emissions calculated for year 2020 for type of activity j, using equation 2-8.1, or using equation 6-7.1 in the case of the fabrication of rigid foamed insulation, using the old GWP values.
Equation 8-3 Calculation of correction factor for fixed process emissions to take into account the new GWP values
CFP j = av[GHGFP j2013 (new GWP);GHGFP j2014 (new GWP);GHGFP j2015 (new GWP)]
GHGFP j2013 (old GWP)GHGFP j2014 (old GWP)GHGFP j2015 (old GWP)
Where:
CFP j = Correction factor for the intensity of fixed process emissions for type of activity j;
j = Type of activity;
av = Average fixed process emissions for the years 2013, 2014 and 2015;
GHGFP j = Fixed process emissions for type of activity j at the establishment for the years 2013, 2014 and 2015, calculated using the old GWP values, determined in Schedule A.1 to the Regulation respecting the mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15) or the new GWP values, in metric tonnes CO2 equivalent, excluding unusable years;
Equation 8-4 Calculation of the standard intensity of combustion emissions by type of activity at an establishment that is not considered on a sectoral basis or an establishment producing liquid aluminum using a side-worked prebaked anode technology and using GHG emissions data for the years 2007 to 2010
IC stan j = CC j × IC2020 j × CcR
Where:
IC stan j = Standard intensity of combustion emissions for the period 2021-2023 for type of activity j;
CC j = Correction factor for the intensity of combustion emissions for type of activity j, calculated using equation 8-5;
IC2020 j = Intensity of combustion emissions calculated for year 2020 for type of activity j, using equation 2-8.2, or using equation 6-7.2 in the case of the fabrication of rigid foamed insulation, using the old GWP values;
CcR = Correction factor of the multiplication factor of the intensity of combustion emissions at the establishment, calculated using equation 8-4.1.
Equation 8-4.1 Calculation of the correction factor of the multiplication factor of combustion emissions at the establishment
CcR = max[1; 0.85/R]
Where:
CcR = Correction factor of the multiplication factor of the intensity of combustion emissions at the establishment;
max = Maximum value between 1 and 0.85/R;
R = Intensity multiplication factor for GHG emissions, calculated using equation 2-4, 4-6, 4-11, 4-17, 4-27 or 4-33 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1.
Equation 8-5 Calculation of correction factor for combustion emissions by type of activity to take into account the new GWP values
CFP j = av[GHGFP j2013 (new GWP);GHGFP j2014 (new GWP);GHGFP j2015 (new GWP)]
GHGFP j2013 (old GWP)GHGFP j2014 (old GWP)GHGFP j2015 (old GWP)
Where:
CFP j = Correction factor for the intensity of combustion emissions for type of activity j;
j = Type of activity;
av = Average combustion emissions for the years 2013, 2014 and 2015;
GHGFP j = Combustion emissions for type of activity j at the establishment for the years 2013, 2014 and 2015, calculated using the old GWP values, determined in Schedule A.1 to the Regulation respecting the mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15) (old GWP values) or the new GWP values in metric tonnes CO2 equivalent, excluding unusable years.
Equation 8-6 Calculation of the standard intensity of other emissions by type of activity at an establishment that is not considered on a sectoral basis or an establishment producing liquid aluminum using a side-worked prebaked anode technology for the years 2021 to 2023 using GHG emissions data for the years 2007 to 2010
IO stan j = CO j × IO2020 j
Where:
IO stan j = Standard intensity of other emissions for the period 2021-2023 for type of activity j;
j = Type of activity;
CO j = Correction factor for the intensity of other emissions for type of activity j, calculated using equation 8-7;
IO2020 j = Intensity of other emissions calculated for year 2020 for type of activity j, using equation 2-8.3, or using equation 6-7.3 For the fabrication of rigid foamed insulation, using the old GWP values.
Equation 8-7 Calculation of the correction factor for other emissions by type of activity to take into account the new GWP values
CO j = av[GHGO j2013 (new GWP);GHGO j2014 (new GWP);GHGO j2015 (new GWP)]
GHGO j2013 (old GWP)GHGO j2014 (old GWP)GHGO j2015 (old GWP)
Where:
CO j = Correction factor for the intensity of other emissions for type of activity j;
j = Type of activity;
av = Average of other emissions for the years 2013, 2014 and 2015;
GHGO j = Other emissions for type of activity j at the establishment for the years 2013, 2014 and 2015, calculated using the old GWP values, determined in Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15) or the new GWP values, in metric tonnes CO2 equivalent, excluding unusable years.
(8.2) Calculation method for standard intensities for an establishment using no GHG emissions data for the years 2007 to 2010
Equation 8-8 Calculation of the standard intensity of fixed process emissions by type of activity at an establishment that is not considered on a sectoral basis for the years 2021 to 2023 and using no emissions data for the years 2007 to 2010
IFP stan j = IFP dep j
Where:
IFP stan j = Average standard intensity of fixed process emissions attributable to type of activity j at the establishment for the reference years, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for the reference years, calculated using, as the case may be, equation 4-3, 4-10, 4-16, 4-26 or 4-32, in metric tonnes CO2 equivalent per reference unit, using the new GWP values.
Equation 8-9 Calculation of the standard intensity of combustion emissions by type of activity at an establishment that is not considered on a sectoral basis and using no GHG emissions data for the years 2007 to 2010
IC stan j = R × 0.99n × IC dep j × CcR
Where:
IC stan j = Average standard intensity of combustion emissions attributable to activity j at the establishment for the reference years, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
R = Intensity multiplication factor for combustion emissions at the establishment, calculated using equation 4-6, 4-11, 4-17, 4-27 or 4-33 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
n = i – (d+2);
d = First year for which the GHG emissions at the establishment are equal to or exceed the emissions threshold;
i = Year 2020;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for the reference years, calculated using, as the case may be, equation 4-4, 4-13, 4-19, 4-29 or 4-35, in metric tonnes CO2 equivalent per reference unit, using the new GWP values;
CcR = Correction factor of the multiplication factor of the intensity of combustion emissions at the establishment, calculated using equation 8-4.1.
Equation 8-10 Calculation of standard intensity of other emissions by type of activity at an establishment that is not considered on a sectoral basis and using no emissions data for the years 2007 to 2010 for the years 2021 to 2023
IO stan j = 0.99n × IO dep j
Where:
Io stan j = Average standard intensity of other emissions attributable to type of activity j at the establishment for the reference years, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
n = i – (d+2);
d = First year for which GHG emissions of the establishment are equal to or exceed emissions threshold;
i = Year 2020;
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for the reference years, calculated, as the case may be, using equation 4-5, 4-14, 4-20, 4-30 or 4-36, in metric tonnes CO2 equivalent, using the new GWP values.
(8.3) Calculation method for standard intensities for an establishment producing lime
Equation 8-11 Calculation of the standard intensity of fixed process emissions by type of activity at an establishment in the lime sector
Where:
IFP stan j = Standard intensity of fixed process emissions in the lime sector for the period 2021-2023 for type of activity j;
j = Type of activity;
i = Each year included in the period 2007-2010;
k = Covered establishment in the lime sector;
l = Number of covered establishment from 2013 in the lime sector;
CFP jk = Correction factor for the intensity of fixed process emissions for type of activity j at establishment k, calculated using equation 8-12;
GHGFP ijk = Fixed process emissions for type of activity j at establishment k during years i, in metric tonnes CO2