40. The Minister estimates annually the total quantity of emission units that may be allocated without charge to an eligible emitter.
Until the year 2023, 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.
Beginning in the year 2024, the total quantity of emission units that may be allocated without charge to an eligible emitter is calculated in accordance with Part II of Appendix C using, depending on the year concerned, equation 18-1, and replacing(1) the factor “PRi, j” in equations 19-1, 20-1, 21-1, 21-3, 23-1 and 24-1 by the factor “PRi – 2, j”, which corresponds to the total quantity of reference units produced or used in the year 2 years before the allocation year;
(2) the factors “EC TOTAL i, j”, “GHG FP i j”, “GHGO i, j” and “GHG i, j” in equations 21-2, 22-1 and 24-7 by the factors “EC TOTAL i-2, j”, “GHG FP i-2, j”, “GHGO i-2, j” and “GHG i-2, j”, which correspond respectively to energy consumption, fixed process emissions, other emissions and total emissions in the year 2 years before the allocation year;
(3) where the data needed to use the factors “GHGFP 2023, j”, “GHGFP cu, 2023”, “GHGC, 2023 RSM”, “FH 2023”, “PR 2023, j”, “PR cu, 2023”, “PR RSM, 2023” and “Arecycl, 2023” in equations 19-13, 19-14, 19-15, 19-16 and 19-18 are not available, by the factors “GHGFP 2022, j”, “GHGFP cu, 2022”, “GHGC, 2022 RSM”, “FH 2022”, “PR 2022, j”, “PR cu, 2022”, “PR RSM, 2022” and “Arecycl, 2022”, which correspond respectively to fixed process emissions, hydrogen consumption, the total quantity of reference units produced or used and the carbon content of recycled secondary materials introduced into the process during year 2022.
Beginning in the year 2024, the Minister estimates annually the part of the emission units allocated without charge to be paid to an emitter.
The part is calculated in accordance with Part II of Appendix C using, depending on the year concerned, equation 18-2, and replacing(1) the factor “PRi, j” in equations 19-5, 20-4, 21-3, 23-3 and 24-4 by the factor “PRi-2, j”, which corresponds to the total quantity of reference units produced or used in the year 2 years before the allocation year;
(2) the factors “ECTOTAL i, j”, “GHG FP i j”, “GHGO i, j” and “FFP i, j” in equations 19-7, 22-3, 22-5, 24-6 and 24-8 by the factors “ECTOTAL i-2, j”, “GHGFP i-2, j”, “GHGO i-2, j” and “FFP, i-2, j”, which correspond respectively to the energy consumption, fixed process emissions, other emissions and proportion factor of fixed process emissions in the year 2 years before the allocation year.
Beginning in the year 2024, the Minister also estimates annually the part of the emission units allocated without charge to an emitter that is to be auctioned.
That part is calculated in accordance with Part II of Appendix C using, depending on the year concerned, equation 18-3, and replacing(1) the factor “PRi, j” in equations 19-1, 19-5, 20-1, 20-4, 21-1, 21-3, 23-1, 23-3, 24-1 and 24-4 by the factor “PRi – 2, j”, which corresponds to the total quantity of reference units produced or used in the year 2 years before the allocation year;
(2) the factors “ECTOTAL i, j”, “GHG FP i j” and “GHGO i, j” in equations 22-1, 22-3, 24-7 and 24-8 by the factors “ECTOTAL i-2, j”, “GHGFP i-2, j” and “GHGO i-2, j”, which correspond respectively to the energy consumption, fixed process emissions and other emissions in the year 2 years before the allocation 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, from which, beginning in 2024, 75% of the part of the units to be auctioned has been subtracted.
Beginning in the year 2024, on 14 January of each year or, if that day is not a working day, on the first following working day, provided that an agreement on the implementation by the emitter of a project referred to in Part III of Appendix C has been signed by the emitter and the Minister in accordance with section 46.8.1 of the Environment Quality Act (chapter Q-2) before the previous 1 September, the Minister pays into the Minister’s auction account 75% of the quantity of emission units calculated in accordance with the seventh paragraph. When the operator of a covered establishment changes before 14 January of a given year, the emission units referred to in the ninth 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. 2911; 1462-2022O.C. 1462-2022, s. 2811.