Applications for facilities that expand or increase production — nitrogen oxides
 16. (1) The owner of a facility that is listed in Table 3 or 4, that is a replacement facility or that is a facility in respect of which nitrogen oxides emission allowances have been acquired under section 15 may apply to the Director for nitrogen oxides emission allowances in respect of the facility for any year after 2005 if, (a) the owner of the facility estimates, (i) that the deemed production of the facility in the year for which the allowances are applied for will be at least 20 per cent greater than the historical facility production of the facility or the facility that was located at the replacement facility’s site, or (ii) that the average annual production of the facility will be at least 20 per cent greater than the historical production of the facility as a result of a modification to a process or equipment at the facility; (b) the owner of the facility has applied under section 17 for a determination of the intensity rate that is to be applied to the facility; (c) the application under section 17 was made not more than three years before the date of the application under this section; and (d) nitrogen oxides emission allowances have not previously been acquired as a result of an application made under this section in respect of the modification or increased production of the facility.  O. Reg. 194/05, s. 16 (1). (2) An application under this section must be made not later than June 1 in the year preceding the year for which emission allowances are applied for.  O. Reg. 194/05, s. 16 (2). (3) An application may be made under this section by the owner of a facility that has not begun to produce a regulated product with the expanded portion of the facility.  O. Reg. 194/05, s. 16 (3). (4) For each facility for which an application for nitrogen oxides emission allowances is made in accordance with this section, the Director shall determine the following amount: A × (B – C) where, A = the lesser of the intensity rate determined by the Director in accordance with section 17 for the facility and the intensity rate, if any, for the facility or the facility that was located at the replacement facility’s site for the year for which emission allowances are applied for, as determined in accordance with Table 4, B = the average annual production that the owner of the facility estimates, or is deemed to estimate, in accordance with subsection 6 (2) will be produced by the facility, C = the facility’s historical facility production. O. Reg. 194/05, s. 16 (4). (5) For each facility in the cement sector, the flat glass sector, the iron and steel sector or the pulp and paper sector for which an application for nitrogen oxides emission allowances is made in accordance with this section, the Director shall determine the following amount: A × (D – E) where, A = the intensity rate determined by the Director in accordance with section 17 for the facility, D = the deemed production determined in respect of the facility under subsection 4 (5), E = the lesser of the amounts of deemed production determined in respect of the facility under subsections 4 (2) and (3). O. Reg. 194/05, s. 16 (5). (6) If there has been no previous application determined under this section in respect of a replacement facility, for the purpose of this section the historical facility production of the replacement facility is equal to the historical facility production of the facility that was located on the replacement facility’s site, as determined in accordance with this section.  O. Reg. 194/05, s. 16 (6). (7) For the purpose of this section and subject to subsection (9), the historical facility production of a facility that is listed in Table 3 or 4 is the largest amount of regulated product that was produced in 2002, 2003 or 2004 by the facility as reported by the owner under paragraph 3 of subsection 6 (4).  O. Reg. 194/05, s. 16 (7). (8) For the purpose of this section and subject to subsection (9), the historical facility production of a facility that is not listed in Table 3 or 4 is equal to the value assigned to “B” in subsection 15 (6) in the application previously made under section 15 in respect of the facility.  O. Reg. 194/05, s. 16 (8). (9) For the purpose of this section, if an application in respect of a facility has been previously determined under this section, the historical facility production of the facility is equal to the value assigned to “B” in subsection (4) in the most recently determined application made under this section in respect of the facility.  O. Reg. 194/05, s. 16 (9).