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

Full text

In force date

2024-01-01 Show full text at this date

APPENDIX C

(ss. 39, 40 and 41)

Part I

Table A Activities eligible for the allocation without charge of greenhouse gas emission units

Table B Reference units1

Part II

Calculation methods for the allocation of emission units without charge

(A) Definition

For the purposes of the calculation methods,

(0.1) “old GWP values” : global warming potential values provided for in Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15) in force on 31 December 2020;

(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 to 2023 are equal to or exceed the emissions threshold;

(5.1) “covered establishment prior to 2024” means an establishment referred to in paragraph 1, 2, 3, 4 or 5, or an establishment referred to in section 2.1 prior to 2024, that is still targeted by the system in 2024;

(5.2) “covered establishment as of 2024” means an establishment the operator of which must cover the emissions under, as the case may be, section 19 or 19.0.1 as of 2024 or a subsequent year;

(6) “new GWP values” : global warming potential values provided for in Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere in force on 1 January 2021;

(7) “sampling rate” means the actual sampling rate or measurement rate, expressed as a percentage, determined in accordance with the method for the estimation of missing data applicable under section 6.3.1 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15).

(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.

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;

(5) aluminum production using inert anode cells installed in a building which, when the cells were installed, already contained prebaked anode cells;

(6) aluminum production using inert anode cells installed in a building to replace the prebaked anode cells installed in that building;

(7) aluminum production, in an establishment covered on 1 September 2022, using inert anode cells installed in a building adjacent to the building in which prebaked anode cells are installed.

(D) Calculation methods

For the application of the methods set out in this Part, the result of an intensity target of emissions calculation is rounded off to 4 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;

(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, lime, 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;

(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) (subparagraph revoked);

(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;

(17) in the case of an establishment covered prior to the year 2024, other than a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030, using equations 18-1 and 19-1;

(18) in the case of an establishment that is considered on a sectoral basis for the years 2024 to 2030, using equations 18-1 and 20-1;

(19) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and 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 equations 18-1 and 21-1;

(20) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and 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 equations 18-1 and 22-1;

(21) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis, for which the GHG emissions data for years d-2 to d, are all available and that is not a newly operational establishment, using equations 18-1 and 23-1;

(22) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis, for which the GHG emissions data for years d-2 to d are not all available and that is not a newly operational establishment, using equations 18-1 and 24-1;

(23) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis and 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 equations 18-1 and 24-7.

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;

(7) in the case of an establishment covered prior to the year 2024, other than a newly operational establishment that is not considered on a sectoral basis for the years 2024 to 2030, using equations 18-1 and 19-1;

(8) in the case of an establishment that is considered on a sectoral basis for the years 2024 to 2030, using equations 18-1 and 20-1;

(9) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and for which the GHG emissions data for years e+1 to e+3 or years e+2 to e+4, where e+1 is the year in which the establishment became operational, are all available, using equations 18-1 and 21-1;

(10) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and for which the GHG emissions data for years e+1 to e+3 or years e+2 to e+4, where e is the year in which the establishment became operational, are not all available, using equations 18-1 and 22-1;

(11) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis, for which the GHG emissions data for years e-3 to e-1 are all available and that is not a newly operational establishment, using equations 18-1 and 23-1;

(12) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis, for which the GHG emissions data for years e-3 to e-1 are not all available and that is not a newly operational establishment, using equations 18-1 and 24-1;

(13) in the case of a covered establishment as of 2024 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, using equations 18-1 and 24-7.

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;

(9) beginning in the year 2023, in the case of an establishment in the pulp and paper sector producing electricity through cogeneration, excluding the emissions data attributable to the production of electricity by cogeneration in metric tonnes CO2 equivalent calculated using equations 25-1 to 25-6.

The total quantity of GHG emission units allocated without charge and paid to an emitter is calculated in accordance with the following methods:

(1) in the case of an establishment covered prior to the year 2024, other than a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030, using equations 18-2 and 19-5;

(2) in the case of an establishment that is considered on a sectoral basis for the years 2024 to 2030, using equations 18-2 and 20-4;

(3) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and for which the GHG emissions data for years d to d+2 or e+1 to e+3 or years d+1 to d+3 or e+2 to e+4, where d or e+1 is the year in which the establishment became operational, are all available, using equations 18-2 and 21-3;

(4) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and 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, or years e+1 to e+3 or e+2 to e+4, where e+1 is the year in which the establishment became operational, are not all available, using equations 18-2 and 22-3;

(5) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d-2 to d or e-3 to e-1 are all available, using equations 18-2 and 23-3;

(6) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d-2 to d or e-3 to e-1 are not all available, using equations 18-2 and 24-4;

(7) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis and 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, or 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 18-2 and 24-8.

The total quantity of GHG emission units allocated without charge to be auctioned for an establishment is calculated in accordance with equation 18-3.

Despite the third and fourth paragraphs,

(1) the quantity of GHG emission units allocated without charge to a covered emitter beginning in the year 2023 is calculated using the methods applicable to the emitter during the last year of its first registration for the system;

(2) the quantity of GHG emission units allocated without charge to an emitter whose registration was interrupted for a period of less than 3 years is calculated using the methods applicable to the last year during which the emitter was eligible for an allocation free of charge.

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:

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:

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;

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:

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;

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:

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

- Calculation of the intensity of fixed process emissions by type of activity, for years 2021 to 2023, at a covered establishment as of 2013, that does not possess data for years 2007-2010 and does not possess data for at least 3 of years d-2 to d+1, or at a covered establishment after year 2013 that does not possess data for at least 3 of years d-2 to d+1

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;

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

Where:

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 = 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

- Calculation of the intensity of combustion emissions by type of activity, for years 2021 to 2023, at a covered establishment as of 2013, that does not possess data for years 2007-2010 and does not possess data for at least 3 of years d-2 to d+1, or at a covered establishment after year 2013 that does not possess data for at least 3 of years d-2 to d+1

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

Calculation of the intensity of other emissions by type of activity, for years 2021 to 2023, at a covered establishment as of 2013, that does not possess data for years 2007-2010 and does not possess data for at least 3 of years d-2 to d+1, or at a covered establishment after year 2013 that does not possess data for at least 3 of years d-2 to d+1

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 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 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;

GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k, excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k, including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

Fuelk = Mass or volume of fuel burned:

(a) in dry metric tonnes, when 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;

HHVk = High heat value for measurement period i, expressed

(a) in GJ per dry metric ton, 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;

(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:

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, at a covered establishment as of 2018 that possesses all the GHG emissions data for those years

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;

GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k, excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k, including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

Fuelk = Mass or volume of fuel burned:

(a) in dry metric tonnes, when 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;

HHVk = High heat value for measurement period i, expressed

(a) in GJ per dry metric ton, 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;

(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;

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:

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

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

Where:

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 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

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

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

Where:

ECTOTAL i = Energy consumption for year i, in GJ;

i = Each year of the 2018-2020 period for which the emitter is required to cover GHG emissions;

n = Total number of types of fuel used;

k = Type of fuel;

GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k, excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k, including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

Fuelk = Mass or volume of fuel burned:

(a) in dry metric tonnes, when 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;

HHVk = High heat value for measurement period i, expressed

(a) in GJ per dry metric ton, 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;

(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:

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

Where:

ECTOTAL,av = Average energy consumption for years e-1 to e+1 or for years 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;

GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

n = Total number of types of fuel used;

Fuelk = Mass or volume of fuel burned:

(a) in dry metric tonnes, when 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;

HHVk = High heat value for measurement period i, expressed

(a) in GJ per dry metric ton, 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;

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+1 to d+3 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+1 to d+3 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 6-4.1 Average intensity of GHG fixed process emissions at an establishment producing rigid foamed insulation for years 2010 to 2012

Where:

IFP = Average intensity of GHG fixed process emissions at the establishment for years 2010 to 2012, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;

i = Each year included in the period 2010-2012;

GHG FPi = GHG fixed process emissions at the establishment for year i, in metric tonnes CO2 equivalent;

PR i = Total quantity of rigid foamed insulation produced at the establishment in year i, 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 6-5.1 Average intensity of GHG combustion emissions at an establishment producing rigid foamed insulation for years 2010 to 2012

Where:

IC = Average intensity of GHG combustion emissions at the establishment for years 2010 to 2012, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;

i = Each year included in the period 2010-2012;

GHG Ci = GHG combustion emissions at the establishment in year i, in metric tonnes CO2 equivalent;

PR i = Total quantity of rigid foamed insulation produced at the establishment in year i, 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 6-6.1 Average intensity of other GHG emissions at an establishment producing rigid foamed insulation for years 2010 to 2012

Where:

IO = Average intensity of other GHG emissions at the establishment for years 2010 to 2012, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;

i = Each year included in the period 2010-2012;

GHG Oi = Other GHG emissions at the establishment for year i, in metric tonnes CO2 equivalent;

PR i = Total quantity of rigid foamed insulation produced at the establishment in year i, 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 = Average intensity of GHG fixed process emissions at the establishment for years 2010 to 2012, calculated using equation 6-4.1, 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 = Average intensity of GHG combustion emissions at the establishment for years 2010 to 2012, calculated using equation 6-5.1, 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 = Average intensity of other GHG emissions at the establishment for years 2010 to 2012, calculated using equation 6-6.1 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;

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

Where:

ECNF TOTAL i = Energy consumption of the new facility in year i, in GJ;

i = Each year of the period for which the emitter is required to cover GHG emissions;

n = Total number of types of fuel used;

k = Type of fuel;

GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

Fuelk = Mass or volume of fuel burned, expressed

(a) in dry metric tonnes, when 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;

HHVk = High heat value for measurement period i, expressed

(a) in GJ per dry metric ton, 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;

(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

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

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

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;

(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 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 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;

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 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 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 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 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 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;

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 8-4, 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 8-2, 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 8-4, 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 8-4, 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 cathodes;

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 cathodes;

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 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 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;

j = Type of activity.

(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;

j = Type of activity;

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 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;

j = Type of activity;

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

Ccj = av	[	GHGcj2013 (new GWP)	;	GHGcj2014 (new GWP)	;	GHGcj2015 (new GWP)	]
		GHGcj2013 (old GWP)		GHGcj2014 (old GWP)		GHGcj2015 (old GWP)

Where:

Ccj = 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;

GHGcj = Combustion emissions for type of activity j at the establishment for the years 2013, 2014 and 2015, calculated using the 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 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 equation 4-3 where the establishment possesses emissions data for at least 3 of years d-2 to d+1, or using equation 4-10, 4-16, 4-26 or 4-32, in metric tonnes CO2 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) or n = i - (e+1), as the case may be;

d = First year for which the GHG emissions at the establishment are equal to or exceed the emissions threshold;

e = Year of application for registration for the system;

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 equation 4-4 where the establishment possesses emissions data for at least 3 of years d-2 to d+1, or using equation 4-13, 4-19, 4-29 or 4-35, in metric tonnes CO2 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) or n = i - (e+1), as the case may be;

d = First year for which GHG emissions of the establishment are equal to or exceed emissions threshold;

e = Year of application for registration for the system;

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 using equation 4-5 where the establishment possesses emissions data for at least 3 of years d-2 to d+1, or using equation 4-14, 4-20, 4-30 or 4-36, in metric tonnes CO2 per reference unit, using the new GWP values.

(8.3) (Revoked).

(9) Establishment producing cement, lime, prebaked anodes or aluminum by using a prebaked anode technology other than the side-worked technology, covered prior to 2021 that is considered on a sectoral basis for the years 2021 to 2023

Equation 9-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment producing cement, lime, prebaked anodes or aluminum using a prebaked anode technology other than the side-worked technology, covered prior to 2021 that is considered on a sectoral basis for the years 2021 to 2023

Ai j = I(S)i,j × 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;

j = Type of activity;

I(S) i,j = Intensity of GHG emissions attributable to type of activity j in the sector for year i, determined in accordance with Tables 1 and 2 of this Appendix, in metric tonnes CO2 equivalent per reference unit;

PR i,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.

(9.1) Sectoral intensities in the aluminum sector

Table 1: Sectoral intensities in the aluminum sector

Year	Intensity of GHG emissions for liquid aluminum production using a prebaked anode technology other than the side-worked technology (leaving the potroom) and for the aluminum production referred to in paragraphs 5 to 7 of Division C of this Part	Intensity of GHG emissions for the production of baked anodes removed from furnace
2021	1.813	0.3129
2022	1.796	0.3102
2023	1.779	0.3074

(9.2) Sectoral intensities in the cement sector

Table 2: Sectoral intensities in the cement sector

Year	Intensity of GHG emissions for the production of clinker and the mineral additives added to the clinker produced
2021	0.7814
2022	0.7767
2023	0.7721

(9.3) Sectoral intensities in the lime sector

Table 3: Sectoral intensities in the lime sector

Year	Intensity of GHG emissions for calcic lime production	Intensity of GHG emissions for dolomitic lime production
2021	1.100	1.376
2022	1.091	1.364
2023	1.082	1.352

(10) 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

Equation 10-1 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis for the years 2021 to 2023 and that possesses GHG emissions data for years d-2 to d

Aij = [IFP dep j × aFP,i + IC dep j × aC,i + IO dep j × aO,i] × PRi 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 in the period 2021-2023 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 10-2, in metric tonnes CO2 equivalent per reference unit;

d = Year in which the coverage requirement begins;

aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

IC dep j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 10-3, 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 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

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 10-4, 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 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

PRi 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 10-2 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis

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 = Year in which the coverage requirement begins;

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 10-3 Calculation of the intensity of combustion emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis

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 = Year in which the coverage requirement begins;

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 10-4 Calculation of the intensity of other emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis

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 = Year in which the coverage requirement begins;

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.

(11) Covered establishment as of 2021 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:

Equation 11-1 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis for the years 2021 to 2023 and that does not possess all the GHG emissions data for years d-2 to d

Aij = [IFP dep j × aFP,i + IC dep j × aC,i + IO dep j × aO,i] × PRi 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 in the period 2021-2023 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 11-2, in metric tonnes CO2 equivalent per reference unit;

d = Year in which the coverage requirement begins;

aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

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 11-3, 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 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

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 11-4, 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 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

PRi 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 11-2 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d

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 = Year in which the coverage requirement begins;

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 11-3 Calculation of the intensity of combustion emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d

Where:

IC dep j = Average intensity of GHG 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 = Year in which the coverage requirement begins;

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 11-4 Calculation of the intensity of other emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess all the 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 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 = Year in which the coverage requirement begins;

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 11-5 Calculation of the number of GHG emission units allocated without charge for a covered establishment as of 2021 that is not considered on a sectoral basis for the years 2021 to 2023 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

Ai = ((ECTOTAL i × EF × aC,i) + (GHGFP i × aFP,i) + (GHGO i × aO,i)) × AFi,j

Where:

Ai = Total number of GHG emission units allocated without charge for year i;

i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;

ECTOTAL i = Energy consumption in year i, calculated using equation 11-6, 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 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

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 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

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 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

d = Year in which the coverage requirement begins;

AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.

Equation 11-6 Calculation of energy consumption for a year at a covered establishment as of 2021 that is not considered on a sectoral basis 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

Where:

ECTOTAL i = Energy consumption in year i, in GJ;

i = Each year of the 2021-2023 period for which the emitter is required to cover GHG emissions;

n = Total number of types of fuel used;

k = Type of fuel;

GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

Fuelk = Mass or volume of fuel burned:

(a) in dry metric tonnes, when 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;

HHVk = High heat value for measurement period i, expressed

(a) in GJ per dry metric ton, 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;

(12) Covered establishment as of 2021 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:

Equation 12-1 Calculation of the number of GHG emission units allocated without charge for an establishment covered as of 2021 that is not considered on a sectoral basis for the years 2021 to 2023, 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)] × AFij

Where:

Ai = Total number of GHG emission units allocated without charge for year i;

i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;

d = Year in which the coverage requirement begins;

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 12-2 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 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

GHGFP,av = 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 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

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 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;

AFij = Maximum of assistance factors for each type of activity j at the establishment for year i, as defined in Table 7 of this Appendix.

Equation 12-2 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, at a covered establishment as of 2021 that is not considered on a sectoral basis and that possesses all the GHG emissions data for those years

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 = Year in which the coverage requirement begins;

k = Type of fuel;

GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;

n = Total number of types of fuel used;

Fuelk = Mass or volume of fuel burned:

(a) in dry metric tonnes, when 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;

HHVk = High heat value for measurement period i, expressed

(a) in GJ per dry metric ton, 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;

(13) Covered establishment referred to in section 2.1 that is not considered on a sectoral basis for which the GHG emissions data for years e-3 to e-1 are all available

Equation 13-1 Calculation of the number of GHG emission units allocated without charge by type of activity for year 2021 to 2023 at an establishment 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

Aij = [IFP dep j × aFP,i + IC dep j × aC,i + IO dep j × aO,i ] × PRi 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 in the period 2021-2023 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 13-2, in metric tonnes CO2 equivalent per reference unit;

e = Year preceding the year in which the coverage requirement begins;

aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+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 13-3, 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 2021 and 2023, as defined in Table 6 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 13-4, 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 2021 and 2023, as defined in Table 6 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;

AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.

Equation 13-2 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:

I FP 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 preceding the year in which the coverage requirement begins;

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 13-3 Calculation of the intensity of 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

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 preceding the year in which the coverage requirement begins;

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 13-4 Calculation of the intensity of other 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

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 preceding the year in which the coverage requirement begins;

i = Years e-3, e-2 and e-1;

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.

(14) 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:

Equation 14-1 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 2021 to 2023 and for which the GHG emissions data for years e-3 to e-1 are not all available

Aij = [IFP dep j × aFP,i + IC dep j × aC,i + IO dep j × aO,i ] × PRi 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 in the period 2021-2023 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-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 14-2, in metric tonnes CO2 equivalent per reference unit;

e = Year preceding the year in which the coverage requirement begins;

aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n =i-(e+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 14-3, 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 2021 and 2023, as defined in Table 6 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 14-4, 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 2021 and 2023, as defined in Table 6 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;

AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.

Equation 14-2 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

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 preceding the year in which the coverage requirement begins;

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 14-3 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

Where:

IC dep j = Average intensity of GHG 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 preceding the year in which the coverage requirement begins;

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 14-4 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

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 preceding the year in which the coverage requirement begins;

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 14-5 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 2021 to 2023 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) ) × AFi,j

Where:

Ai = Total number of GHG emission units allocated without charge for year i;

i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;

ECTOTAL i = Energy consumption in year i, calculated using equation 14‐6, in GJ;