Clean Electricity Regulations (SOR/2024-263)

Marginal note:Emissions during deduction period (E_ec)

• The following provision is not in force.

  27 (1) The quantity referred to in the description of E_ec in subsection 12(1) is determined by the formula

  

  where

  i

  is the i^th deduction period, where “i” goes from 1 to n and where n is the number of deduction periods in the calendar year;

  E_u

  is the quantity of CO₂ emissions, expressed in tonnes, from the combustion of fossil fuel in the unit during the i^th deduction period during the calendar year, determined in accordance with subsection 12(3);

  E_th

  is the quantity of CO₂ emissions, expressed in tonnes, attributed to the production of useful thermal energy by the unit during the i^th deduction period during the calendar year, determined in accordance with section 21;

  E_int

  is the quantity of CO₂ emissions, expressed in tonnes, attributed to electricity generated by the unit, during the i^th deduction period during the calendar year, that is used internally at the facility where the unit is located and is

  • (a) equal to zero, in the case of

    • (i) any deduction period in which the unit did not produce useful thermal energy,

    • (ii) any unit, other than a planned unit, that has a commissioning date after December 31, 2024, and

    • (iii) every deduction period after 2049, and

  • (b) determined in accordance with section 22 in any other case;

  E_ccs

  is the quantity of CO₂, expressed in tonnes, captured from the unit during the i^th deduction period during the calendar year and stored in a storage project, determined in accordance with section 23; and

  E_ext

  is the quantity of CO₂ emissions, expressed in tonnes, from the production of the hydrogen, ammonia and the purchased or transferred steam used by the unit to generate electricity during the i^th deduction period during the calendar year, determined in accordance with section 24.

• The following provision is not in force.

  Marginal note:Adaptation

  (2) For the purposes of subsection (1), any reference to a calendar year in a calculation required under section 15 or 16 or any of sections 19 to 24 is to be read as a reference to the applicable deduction period.

• The following provision is not in force.

  Marginal note:Multiple calendar years

  (3) If a deduction period begins in one calendar year and ends in another calendar year, the deduction period for the purposes of subsection (1) is the portion of that deduction period that occurred during the calendar year for which CO₂ emissions are being determined.

• The following provision is not in force.

  Marginal note:Overlapping deduction periods

  (4) A quantity of CO₂ emissions must not be included in more than one deduction period for the purposes of subsection (1).

Marginal note:Remittance — December 15

• The following provision is not in force.

  28 (1) The quantity of CO₂ assigned to C_off in subsection 12(1) corresponds to the number of Canadian offset credits that the responsible person remits to the Minister for the unit on or before the December 15 that follows the calendar year for which the remittance is made.

• The following provision is not in force.

  Marginal note:Maximum

  (2) The maximum number of Canadian offset credits that may be remitted for a unit for a calendar year corresponds to the quantity of CO₂, expressed in tonnes, determined by the formula

  C × I_off × 8760 × 0.001

  where

  C

  is the unit’s electricity generation capacity for the calendar year; and

  I_off

  is the emission intensity applicable to the calendar year and is

  • (a) 35 tonnes of CO₂ emissions per GWh for the 2035 to 2049 calendar years, and

  • (b) 42 tonnes of CO₂ emissions per GWh for the 2050 and subsequent calendar years.

• The following provision is not in force.

  Marginal note:Rounding

  (3) The quantity determined under subsection (2) is to be rounded to the nearest whole number or, if equidistant between two consecutive whole numbers, to the higher number.

• The following provision is not in force.

  Marginal note:Condition

  (4) Any Canadian offset credit remitted for a calendar year must have been issued for greenhouse gas reductions or removals that occurred no more than eight calendar years before the calendar year in which the Canadian offset credit is remitted.

• The following provision is not in force.

  Marginal note:Cross-recognition

  (5) A responsible person may remit the same Canadian offset credit for the purposes of both subsection 12(1) and an eligible system referred to in subsection (6) if, under that eligible system, the Canadian offset credit is remitted

  • The following provision is not in force.

    (a) for the same calendar year as the year for which the Canadian offset credit is remitted under this section;

  • The following provision is not in force.

    (b) in relation to the same unit for which the Canadian offset credit is remitted under this section; and

  • The following provision is not in force.

    (c) in fulfillment of a remittance requirement other than a requirement that relates to an extraordinary situation, such as to replace a cancelled credit or as compensation for non-compliance with a requirement.

• The following provision is not in force.

  Marginal note:Eligible systems

  (6) The eligible systems are

  • The following provision is not in force.

    (a) a system for pricing greenhouse gas emissions established under Division 1 of Part 2 of the Greenhouse Gas Pollution Pricing Act; and

  • The following provision is not in force.

    (b) a provincial carbon pricing system that is subject to an agreement between the Minister and a province regarding the cross-recognition of Canadian offset credits and that is on the list published on the Department of the Environment’s website for the purposes of this section.

• The following provision is not in force.

  Marginal note:Timing of remittance

  (7) A Canadian offset credit is considered to be remitted on the day on which a reconciliation report that contains all of the information set out in sections 1 and 2 of Schedule 6 in respect of the Canadian offset credit is submitted to the Minister in accordance with section 41.

Marginal note:Cancelled Canadian offset credit

• The following provision is not in force.

  29 (1) If, within five years after the day on which a responsible person remits to the Minister one or more Canadian offset credits referred to in paragraph (b) of the definition Canadian offset credit in subsection 2(1), the issuing province cancels and does not provide a mechanism to replace the credits, the Minister must notify the responsible person of the number of Canadian offset credits that were cancelled by the province and the number of Canadian offset credits that the responsible person must remit to the Minister.

• The following provision is not in force.

  Marginal note:Cross-recognition conditions not met

  (2) If the Minister determines that one or more Canadian offset credits referred to in subsection 28(5) were remitted that did not meet the conditions set out in that subsection, the Minister must notify the responsible person of the number of Canadian offset credits remitted that did not meet those conditions and the number of Canadian offset credits that the responsible person must remit to the Minister.

• The following provision is not in force.

  Marginal note:Request by Minister

  (3) The responsible person must provide to the Minister, within the time limit specified by the Minister, any information requested by the Minister to determine whether a Canadian offset credit meets the conditions set out in subsection 28(5).

• The following provision is not in force.

  Marginal note:Remittance obligation

  (4) The responsible person must remit the number of Canadian offset credits set out in a notice referred to in subsection (1) or (2) by submitting to the Minister, no later than December 15 of the calendar year that follows the calendar year in which the Minister provides the notice, a reconciliation report that contains the information set out in sections 1 and 4 of Schedule 6 in respect of the credits.

• The following provision is not in force.

  Marginal note:Eligible Canadian offset credits

  (5) The Canadian offset credits that are remitted under subsection (4) must have been issued for greenhouse gas reductions or removals that occurred no more than eight calendar years before the time limit set out in that subsection.

Marginal note:Number of compliance credits issued

• The following provision is not in force.

  30 (1) If the Minister is satisfied that, for any of the 2035 to 2049 calendar years, the quantity of CO₂ emissions attributed to a unit, as determined in accordance with the formula set out in the description of E in subsection 12(1), is below the emission limit determined for the unit in accordance with subsection 9(1), the Minister must issue to the responsible person for the unit, for that calendar year and for that unit, a number of compliance credits, each with a corresponding value of one tonne of CO₂, that is equal to the difference between that quantity and that limit.

• The following provision is not in force.

  Marginal note:Exceptions

  (2) Despite subsection (1), no compliance credits are issued for a unit for a calendar year if

  • The following provision is not in force.

    (a) the unit is not subject to an emission limit under subsection 9(1) before July 1 of that calendar year; or

  • The following provision is not in force.

    (b) the unit is subject to an exemption, under subsection 14(1), from the application of subsection 9(1) for that calendar year.

• The following provision is not in force.

  Marginal note:Request by Minister

  (3) The responsible person for a unit must provide to the Minister, within the time limit specified by the Minister, any information requested by the Minister that is necessary to determine whether

  • The following provision is not in force.

    (a) the quantity of CO₂ emissions assigned to E in subsection 12(1) that is reported in the emissions report submitted under section 39 for the unit for a calendar year was determined in accordance with that subsection; and

  • The following provision is not in force.

    (b) the emission limit that is reported in the emissions report submitted under section 39 for the unit for a calendar year was determined in accordance with subsection 9(1).

• The following provision is not in force.

  Marginal note:Notice

  (4) If, after receiving the information requested under subsection (3), the Minister is not satisfied that the quantity of CO₂ emissions attributed to a unit, as determined in accordance with the formula set out in the description of E in subsection 12(1), is below the emission limit determined for the unit in accordance with subsection 9(1), the Minister must notify the responsible person that no compliance credits will be issued for the unit for the calendar year.

Marginal note:Remittance — December 15

• The following provision is not in force.

  33 (1) The quantity of CO₂ assigned to C_c in subsection 12(1) corresponds to the number of compliance credits that the responsible person remits to the Minister for the unit on or before the December 15 that follows the calendar year for which the remittance is made.

• The following provision is not in force.

  Marginal note:Conditions

  (2) A responsible person may only remit a compliance credit for the purposes of subsection 12(1) if the following conditions are met:

  • The following provision is not in force.

    (a) the remittance is for a calendar year before 2050;

  • The following provision is not in force.

    (b) the compliance credit was issued for a calendar year that is no more than five calendar years before the calendar year in which it is remitted;

  • The following provision is not in force.

    (c) in the case of a non-transferable compliance credit, the credit is remitted for the unit for which it was issued; and

  • The following provision is not in force.

    (d) in the case of a transferable compliance credit, the credit is remitted

    • (i) for a unit that

      • (A) met, during the calendar year for which the remittance is made, the conditions to be issued transferable compliance credits that are set out in subsections 31(1) and 32(3), and

      • (B) reports to the same electricity system operator as the unit for which the transferable compliance credit was issued, or

    • (ii) for the unit for which it was issued.

• The following provision is not in force.

  Marginal note:Timing of remittance

  (3) A compliance credit is considered to be remitted on the day on which a reconciliation report that contains all of the information set out in sections 1 to 3 of Schedule 6 in respect of the compliance credit is submitted to the Minister in accordance with section 41.

• The following provision is not in force.

  Marginal note:Retirement

  (4) A compliance credit remitted under these Regulations may only be remitted once and, once remitted to the Minister, is retired and must not be used again.