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Newfoundland and Labrador NEWFOUNDLAND Management
of Greenhouse Gas Regulations (Amendment) (Filed March 30, 2023) Under the authority of section 30 of the Management of Greenhouse Gas Act, the Lieutenant-Governor in Council makes the following regulations. Dated at St. John’s, March 28, 2023. Krista Quinlan REGULATIONS Analysis 1.
S.2 Amdt. 2.
S.3 Amdt. 3. S.4 Amdt. Baseline emissions intensity 4. S.4.1 Added Baseline industrial process emissions intensity 5. S.5 Amdt. Per product baseline emissions intensity or baseline industrial process intensity 6. S.5.1 Added 7. S.6 Amdt. Baseline emissions level 8. S.6.1 R&S New baseline emissions level 9. S.8 Amdt. Greenhouse gas reduction target 10.
S.10 Amdt. 11.
S.12 Amdt. 12. S.12.01 Added Where exemption granted 13.
S.17 Amdt. 14.
S.18 Amdt. 15. Sch. A R&S 16. Commencement NLR 116/18 1. (1) Subsection 2(1) of the Management of Greenhouse Gas Regulations is amended by adding immediately after paragraph (c) the following: (c.1) "baseline industrial process emissions intensity" means baseline industrial process emissions intensity as calculated in accordance with section 4.1; (2) Subsection 2(1) of the regulations is amended by adding immediately after paragraph (i) the following: (i.1) "industrial process emissions" means any emissions generated from the following source categories: (i) hydrogen production, (ii) iron and steel
manufacturing, (iii) nickel and copper
metal production, and (iv) lime manufacturing; 2. Subsection 3(3) of the regulations is repealed and the following substituted: (3) Notwithstanding
paragraph (1)(a), (a) where
an industrial facility, other than an mobile offshore
industrial facility, commences production after these regulations come into
force, Parts I to III do not apply to the industrial facility until its fourth
year of production; and (b) where a mobile offshore industrial facility commences production after these regulations come into force, Parts I to III do not apply to the mobile offshore industrial facility until its second year of production. 3. (1)
Subsection 4(1) of the regulations is amended by deleting the words "The baseline emissions intensity of an industrial facility,
other than an offshore industrial facility or a mobile offshore industrial
facility, for the year 2019" and substituting the words "For the year
2019, the baseline emissions intensity of an industrial facility, other than an
offshore industrial facility or a mobile offshore industrial facility that
commenced production in or before the year 2016". (2) Subsection
4(2) of the regulations is amended by deleting the words "The baseline emissions intensity of an industrial facility,
other than an offshore industrial facility or a mobile offshore industrial
facility, for the year 2020 and subsequent years" and substituting the
words "For the year 2020 and subsequent years, the baseline emissions
intensity of an industrial facility, other than an offshore industrial facility
or a mobile offshore industrial facility that commenced production in or before
the year 2016". (3) Subsection
4(5) of the regulations is amended by deleting the words "The baseline emissions intensity of a mobile offshore
industrial facility, for the year 2019" and substituting the words
"For the year 2019, the baseline emissions intensity of a mobile offshore
industrial facility that commenced production in or before the year 2016". (4) Subsection
4(6) of the regulations is amended by deleting the words "The baseline emissions intensity of a mobile offshore
industrial facility, for the year 2020 and subsequent years" and
substituting the words "For the years 2020, 2021 and 2022, the baseline
emissions intensity of a mobile offshore industrial facility that commenced
production in or before the year 2016". (5) Section 4 of the regulations is amended by adding immediately after subsection (6) the following: (6.1) For
the year 2023 and subsequent years, the baseline
emissions intensity of a mobile offshore industrial facility that commenced
production in or before the year 2016 shall be determined in accordance with
the following formula: BEI = AE2016
+ AE2017 + AE2018 where BEI = baseline emissions intensity for the mobile offshore industrial facility; AE = the mobile offshore industrial facility’s actual emissions of carbon dioxide equivalent of greenhouse gases in a year expressed in tonnes rounded up to the nearest tonne, excluding biomass emissions and any emissions generated from a source category referred to in paragraph 5(1)(j) of the Management of Greenhouse Gas Reporting Regulations; and HO
= the mobile
offshore industrial facility’s hours of operation rounded up to the nearest
full hour. (6) Subsection 4(7) of the regulations is amended by deleting the words "or was designated as an opted-in facility after the coming into force of these regulations" and substituting the words "but before the year 2023 or was designated as an opted-in facility after the coming into force of these regulations but before the year 2023". (7) Section 4 of the regulations is amended by adding immediately after subsection (7) the following: (7.1) The baseline emissions intensity of a mobile offshore industrial facility, that commenced production in the year 2023 or a subsequent year or was designated as an opted-in facility in the year 2023 or a subsequent year, shall be determined in accordance with the following formulas: BEIyr2 = AEyr1 BEIyr3 = AEyr1 + AEyr2 BEI = AEy1
+ AEyr2 + AEyr3 where BEIyr2 = baseline emissions intensity for the mobile offshore industrial facility for second year of production; BEIyr3 = baseline emissions intensity for the mobile offshore industrial facility for third year of production; BEI = baseline emissions intensity for the mobile offshore industrial facility; AE = the mobile offshore industrial facility’s actual emissions of carbon dioxide equivalent of greenhouse gases in a year expressed in tonnes rounded up to the nearest tonne, excluding biomass emissions and any emissions generated from a source category referred to in paragraph 5(1)(j) of the Management of Greenhouse Gas Reporting Regulations; and HO = the mobile offshore industrial facility’s hours of
operation rounded up to the nearest full hour. (8) Subsection 4(8) of the regulations is amended by deleting the reference "subsections (5) to (7)" wherever it appears and substituting the reference "subsections (5) to (7.1). (9) Subsection 4(9) of the regulations is amended by deleting the reference "subsection (5), (6) or (7)" and substituting the reference "subsection (5), (6), (6.1), (7) or (7.1)". (10) Paragraph 4(11)(a) of the regulations is amended by deleting the reference "subparagraphs 6.1(1)(c)(i) to (iii)" and substituting the reference "subparagraphs 5.1(1)(c)(i) to (iii)". (11) Subsection 4(12) of the regulations is amended by deleting the reference "subsection (7)" and substituting the reference "subsection (7) or (7.1)". (12) Subsection 4(13) of the regulations is amended by deleting the reference "subsection (7)" and substituting the reference "subsection (7) and (7.1)". 4. The regulations are amended by adding immediately after section 4 the following: Baseline industrial process emissions intensity 4.1 (1) For the year 2023 and subsequent years, the baseline industrial process emissions intensity of an industrial facility, other than an offshore industrial facility, that commenced production in or before the year 2016 shall be determined in accordance with the following formula: BIPEI = AIPE2016
+ AIPE2017 + AIPE2018 where BIPEI = baseline industrial process emissions intensity for the industrial facility; AIPE = the industrial facility’s actual industrial processes emissions of carbon dioxide equivalent of greenhouse gases in a year expressed in tonne rounded up to the nearest tonne; and AP = the industrial facility’s actual production in a year rounded up to the nearest tonne. (2) The baseline industrial process emissions intensity of an industrial facility, other than an offshore industrial facility, that commenced production after the year 2016 or was designated as an opted-in facility after the coming into force of this section shall be determined in accordance with the following formulas: BIPEIyr 4 = AIPEyr3 BIPEIyr5 = AIPEyr3 + AIPEyr4 BIPEI = AIPEyr3
+ AIPEyr4 + AIPEyr5 where BIPEIyr4 = baseline industrial process emissions intensity for the industrial facility for fourth year of production; BIPEIyr5 = baseline industrial process emissions intensity for the industrial facility for fifth year of production; BIPEI = baseline industrial process emissions intensity for the industrial facility; AIPE = the industrial facility’s actual industrial processes emissions of carbon dioxide equivalent of greenhouse gases in a year expressed in tonnes rounded up to the nearest tonne; and AP = the industrial facility’s actual production in a year rounded up to the nearest tonne. (3) Notwithstanding subsections (1) and (2), where the industrial facility has an unexpected interruption of production that has a material impact on its production in a year that is to be used to establish the industrial facility's baseline industrial process emissions intensity, the Lieutenant-Governor in Council may (a) exclude that year from the calculation of the baseline industrial process emissions intensity and calculate the baseline industrial process emissions intensity on fewer years; or (b) adjust the AP and AIPE in subsections (1) and (2) on a time denominated basis in a manner that attributes the period of production in a year as if it were a full year. 5. Subsection 5(1) of the regulations is repealed and the following substituted: Per product baseline emissions intensity or baseline industrial process emissions intensity 5. (1) Notwithstanding sections 4 and 4.1, an operator may request the approval of the Lieutenant-Governor in Council for the baseline emissions intensity or the baseline industrial process emissions intensity or both to be calculated for each product produced at an industrial facility. 6. The regulations are amended by adding immediately after section 5 the following: New baseline emissions intensity and baseline industrial process emissions intensity 5.1 (1) The
Lieutenant-Governor in Council may establish a new baseline emissions intensity
or a new baseline industrial process emissions intensity or both for an
industrial facility where (a) the industrial
facility installs new machinery or equipment; (b) either (i) the operator
requests a new baseline emissions intensity or a new baseline industrial
process emissions intensity or both; or (ii) the minister
recommends that a new baseline emissions intensity or a new baseline industrial
process emissions intensity or both be established; and (c) the
Lieutenant-Governor in Council is satisfied based on the information provided
by the operator or the minister that as a result of the installation of the
machinery or equipment one or more of the following criteria are met: (i) there was a change
in the NAICS code for the industrial facility at the 3 digit level and the
reasons for the change are valid and reasonable, (ii) either or both of the following apply: (A) the emissions intensity of the industrial
facility differs from the baseline emissions intensity of the industrial
facility by at least 25%, or (B) the industrial process emissions intensity of
the industrial facility differs from the baseline industrial process emissions
intensity of the industrial facility by at least 25%, and the change in the emissions intensity or industrial process emissions intensity is permanent, (iii) either or both of the following apply: (A) the emissions intensity of the industrial
facility differs from the baseline emissions intensity of the industrial
facility by less than 25%, or (B) the industrial process emissions intensity of
the industrial facility differs from the baseline industrial process emissions
intensity of the industrial facility by less than 25%, and the change in the emissions intensity or industrial process
emissions intensity is permanent and does not result from (C) routine maintenance,
repair or replacement of machinery or equipment, including the installation of
machinery or equipment that is installed primarily to increase energy
efficiency, (D) an increase in
production rate, or (E) the relocation of
activities within the industrial facility. (2) Where the Lieutenant-Governor in Council requests
information or documentation, the information or documentation shall be
provided to the Lieutenant-Governor in Council within 45 days of the request or
a longer period as determined by the Lieutenant-Governor in Council. (3) Where the Lieutenant-Governor in Council determines that a
new baseline emissions intensity or a new baseline industrial process emissions
intensity or both should be established (a) the existing baseline emissions intensity or existing
baseline industrial process emissions intensity or both shall continue to apply
except in relation to the new machinery and equipment; and (b) a new baseline emissions intensity or a new baseline
industrial process emissions intensity or both shall be established in
accordance with subsection 4(3) and 4.1(2), as applicable, in relation to the
new machinery and equipment. 7. (1) Subsection 6(1) of the regulations is amended by deleting the words "The baseline emissions level for an offshore industrial facility for the year 2019" and substituting the words "For the year 2019, the baseline emissions level for an offshore industrial facility that commenced production in or before the year 2016". (2) Subsection 6(2) of the regulations is amended by deleting the words "The baseline emissions level for an offshore industrial facility for the year 2020 and subsequent years" and substituting the words "For the year 2020 and subsequent years, the baseline emissions level for an offshore industrial facility that commenced production in or before the year 2016". 8. Section 6.1 of the regulations is repealed and the following substituted: New baseline emissions level 6.1 (1) The Lieutenant-Governor in Council may establish a new
baseline emissions level for an offshore industrial facility where (a) the industrial
facility installs new machinery or equipment; (b) either (i) the operator
requests a new baseline emissions level, or (ii) the minister
recommends that a new baseline emissions level be established; and (c) the
Lieutenant-Governor in Council is satisfied based on the information provided
by the operator or the minister that as a result of the installation of the
machinery or equipment one or more of the following criteria are met: (i) there was a change
in the NAICS code for the industrial facility at the 3 digit level and the
reasons for the change are valid and reasonable, (ii) the emissions level
of the offshore industrial facility differs from the baseline emissions level
of the offshore industrial facility by at least 25% and the change in the
emissions level is permanent, or (iii) the emissions level
of the offshore industrial facility differs from the baseline emissions level
of the offshore industrial facility by less than 25% and the change in the
emissions level is permanent and does not result from (A) routine maintenance,
repair or replacement of machinery or equipment, including the installation of
machinery or equipment that is installed primarily to increase energy
efficiency, (B) an increase in
production rate, or (C) the relocation of
activities within the industrial facility. (2) Where the Lieutenant-Governor in Council requests information or documentation, the information or documentation shall be provided to the Lieutenant-Governor in Council within 45 days of the request or a longer period as determined by the Lieutenant-Governor in Council. (3) Where the
Lieutenant-Governor in Council determines that a new baseline emissions level
should be established (a) the existing baseline
emissions level shall continue to apply except in relation to the new machinery
and equipment; and (b) a new baseline emissions level shall be established in accordance with subsection 6(3) in relation to the new machinery and equipment. 9. (1) Subsection 8(1) of the regulations is repealed and the following substituted: Greenhouse gas reduction target 8. (1) The greenhouse gas reduction target for an industrial facility to which these regulations apply shall be as follows: (a) for the year 2019 the greenhouse gas reduction
target is 6% below the industrial facility's baseline
emissions intensity or baseline emissions level; (b) for the year 2020 the greenhouse gas reduction
target is 8% below the industrial facility's baseline
emissions intensity or baseline emissions level; (c) for the year 2021 the greenhouse gas reduction
target is 10% below the industrial facility's
baseline emissions intensity or baseline emissions level; (d) for the year 2022 the greenhouse gas reduction
target is 12% below the industrial facility's
baseline emissions intensity or baseline emissions level; (e) for the year 2023 the greenhouse gas reduction
target is 14% below the industrial facility's
baseline emissions intensity or baseline emissions level and 0% below the
baseline industrial process emissions intensity; (f) for
the year 2024 the greenhouse gas reduction target is 16%
below the industrial facility's baseline emissions intensity or baseline
emissions level and 0% below the baseline industrial process emissions
intensity; (g) for
the year 2025 the greenhouse gas reduction target is 18%
below the industrial facility's baseline emissions intensity or baseline
emissions level and 0% below the baseline industrial process emissions
intensity; (h) for
the year 2026 the greenhouse gas reduction target is 20%
below the industrial facility's baseline emissions intensity or baseline
emissions level and 0% below the baseline industrial process emissions
intensity; (i) for the year 2027 the greenhouse gas reduction
target is 22% below the industrial facility's
baseline emissions intensity or baseline emissions level and 0% below the
baseline industrial process emissions intensity; (j) for the year 2028 the greenhouse gas reduction target is 24% below the industrial facility's baseline emissions
intensity or baseline emissions level and 0% below the baseline industrial
process emissions intensity; (k) for
the year 2029 the greenhouse gas reduction target is 26%
below the industrial facility's baseline emissions intensity or baseline
emissions level and 0% below the baseline industrial process emissions
intensity; and (l) for the year 2030 and subsequent years the greenhouse gas reduction
target is 28% below the industrial facility's
baseline emissions intensity or baseline emissions level and 0% below the
baseline industrial process emissions intensity. (2) Subsections 8(2.1) to (4) of the regulations are repealed and the following substituted: (2.1) Notwithstanding subsection (1), the greenhouse gas
reduction target for an industrial facility for which a new baseline emissions
intensity or a new baseline industrial process emissions intensity or both was
established under paragraph 5.1(3)(b) or a new baseline emissions level was
established under paragraph 6.1(3)(b) is set out in Schedule A and for the purposes
of this subsection the commencement year in Schedule A shall be considered to
be the year in which (a) the new baseline
emissions intensity or the new baseline industrial process emissions intensity or
both was established; or (b) the new baseline
emissions level was established. (3) Where an industrial
facility's baseline emissions intensity or baseline industrial process
emissions intensity or both is calculated on a per product basis, a greenhouse
gas reduction target shall be calculated per product in accordance with this
section and the industrial facility's greenhouse gas reduction target shall be
the sum of the per product greenhouse gas reduction targets weighted according
to the share of total production for each product. (4) Notwithstanding subsections (1) to (3), an industrial facility, other than a mobile offshore industrial facility, may request the approval of the Lieutenant-Governor in Council for a greenhouse gas reduction target based on a performance benchmark rather than baseline emissions intensity and baseline industrial process emissions intensity. 10. (1) Section 10 of the regulations is amended by adding immediately after subsection (2) the following: (2.01) Where an industrial facility has a greenhouse gas reduction target based on baseline emissions intensity and baseline industrial process emissions intensity, the number of performance credits that the minister may issue to the industrial facility for a year shall be calculated in accordance with the following formula: PC = [(RTbei x AP) – AE] + [(RTbipei x AP) – AIPE] where PC = the number of performance credits, expressed in tonnes on a carbon dioxide equivalent basis rounded up to the nearest tonne; RTbei = the portion of the industrial facility's greenhouse gas reduction target based on baseline emissions intensity calculated in accordance with section 8; AP = the industrial facility's actual production in a year rounded up to the nearest tonne; AE = the industrial facility’s actual greenhouse gas emissions expressed in tonnes on a carbon dioxide equivalent basis rounded up to the nearest tonne, excluding biomass emissions and any industrial process emissions; RTbipei = the portion of the industrial facility's greenhouse gas reduction target based on the baseline industrial process emissions intensity calculated in accordance with section 8; and AIPE = the industrial facility's actual industrial process emissions expressed in tonnes on a carbon dioxide equivalent basis rounded up to the nearest tonne. (2) Section 10 of the regulations is amended by adding immediately after subsection (6) the following: (6.1) Notwithstanding subsection (6), where an offshore industrial facility is ordered by the board to stop production during any period during a year or an offshore industrial facility voluntarily stops production for a period of 31 consecutive days or more during a year, performance credits shall not be issued to the offshore industrial facility for that year. (6.2) Notwithstanding subsection (6.1), where the offshore industrial facility provides to the minister verified data regarding the offshore industrial facility's actual greenhouse gas emissions during the period in the year that production was not stopped, the minister may (a) adjust AE in the calculation in subsection (6) on a time denominated basis in a manner that attributes the period of emissions in a year as if it were a full year; (b) use the adjusted AE in the formula in subsection (6) to determine the number of performance credits to be issued to the offshore industrial facility for the year; and (c) issue the performance credits to the offshore industrial facility for the year. (3) Section 10 of the regulations is amended by adding immediately after subsection (9) the following: (10) Where an industrial facility that was issued performance credits in respect of a year submits a revised emissions report within 7 years of submitting the original emissions report and based on the revised emissions report it is determined that the industrial facility was entitled to more performance credits than the industrial facility received, the minister may issue the additional performance credits to the industrial facility. (11) Where an industrial facility that was issued performance credits in respect of a year submits a revised emissions report within 7 years of submitting the original emissions report and based on the revised emissions report it is determined that the industrial facility was entitled to less performance credits than the industrial facility received, the minister may (a) retire the number of performance credits that the industrial facility received in excess of the number to which the industrial facility was entitled based on the revised emissions report; or (b) where the industrial facility does not have the number of performance credits referred to in paragraph (a), either (i) withhold that number of performance credits from performance credits to be issued to the industrial facility in a future year, or (ii) require that the industrial facility purchase fund credits at the price of the fund credits in the year in which the performance credits were issued to the industrial facility. 11. (1) Paragraph 12(3)(c) of the regulations is amended by deleting the word "and" at the end of the paragraph. (2) Paragraph 12(3)(d) of the regulations is repealed and the following substituted: (d) $50 per one tonne of
greenhouse gas emissions on a carbon dioxide equivalent basis for reporting
year 2022; (3) Subsection 12(3) of the regulations is amended by adding immediately after paragraph (d) the following: (e) $65 per one tonne of
greenhouse gas emissions on a carbon dioxide equivalent basis for reporting
year 2023; (f) $80 per one tonne of
greenhouse gas emissions on a carbon dioxide equivalent basis for reporting
year 2024; (g) $95 per one tonne of
greenhouse gas emissions on a carbon dioxide equivalent basis for reporting
year 2025; (h) $110 per one tonne
of greenhouse gas emissions on a carbon dioxide equivalent basis for reporting
year 2026; (i) $125 per one tonne
of greenhouse gas emissions on a carbon dioxide equivalent basis for reporting
year 2027; (j) $140 per one tonne
of greenhouse gas emissions on a carbon dioxide equivalent basis for reporting
year 2028; (k) $155 per one tonne
of greenhouse gas emissions on a carbon dioxide equivalent basis for reporting
year 2029; and (l) $170 per one tonne
of greenhouse gas emissions on a carbon dioxide equivalent basis for reporting
year 2030 and subsequent years. (4) Section 12 of the regulations is amended by adding immediately after subsection (8) the following: (9) Where an industrial facility that purchased fund credits to achieve all or a portion of the industrial facility's greenhouse gas reduction target in respect of a year submits a revised emissions report and based on the revised emissions report it is determined that the industrial facility did not need some or all of the fund credits it purchased, the minister may issue (a) one performance credit for each excess fund credit that the industrial facility purchased at the price prescribed in subsection (3); and (b) 4 performance credits for each excess fund credit that the industrial facility purchased at the price prescribed in subsection 9(7). (10) For the purposes of subsection 9(5), performance credits issued under subsection (9) are considered to have been earned at the industrial facility. 12. The regulations are amended by adding immediately after section 12 the following: Where exemption granted 12.01 Where an industrial facility was granted an exemption from
the Act under subsection 4(2) of the Act or an exemption from achieving its
annual greenhouse gas emissions reduction target under subsection 5(4) of the
Act, the operator may (a) sell any performance
credits owned by the industrial facility as of the date of the exemption; and (b) purchase greenhouse
gas reduction credits to achieve its greenhouse gas reduction target for the
last year that the industrial facility was not exempted. 13. Subsection 17(2) of the regulations is amended by deleting the words "his or her" and substituting the words "the minister's". 14. Subsection 18(4) of the regulations is amended by deleting the words "his or her" and substituting the words "the minister's". 15. Schedule A of the regulations is repealed and the following substituted: Schedule A Industrial Facility Commenced Production in 2015
Industrial Facility Commenced Production in 2016
Industrial Facility Commenced Production in 2018
Industrial Facility Commenced Production in 2019
Industrial Facility Commenced Production in 2020
Industrial Facility Commenced Production in 2021
Industrial Facility Commenced Production in 2022
Industrial Facility Commenced Production in 2023
Industrial Facility Commenced Production in 2024
Industrial Facility
Commenced Production in 2025
Industrial Facility Commenced Production in 2026
Industrial Facility Commenced Production in 2027 or
subsequent years
Commencement 16. These regulations are considered to have come into force on January 1, 2023. ©King's Printer |