Applications for sulphur dioxide emission allowances
 29. (1) The owner of a facility listed in Table 9 may apply to the Director for sulphur dioxide emission allowances in respect of the facility for any year after 2005.  O. Reg. 194/05, s. 29 (1). (2) If the owner of a facility has previously acquired sulphur dioxide emission allowances under section 30 or 34 in respect of the facility in the base metal smelting sector, the cement sector, the carbon black sector, the iron and steel sector or the pulp and paper sector, the owner may apply to the Director for sulphur dioxide emission allowances in respect of the facility in any year after 2006.  O. Reg. 194/05, s. 29 (2). (3) The owner of a replacement facility may apply to the Director for sulphur dioxide emission allowances in respect of the facility for any year after 2006 if, (a) the facility that was located at the replacement facility’s site was in the petroleum sector and is listed in Table 9 or the base metal smelting sector, the cement sector, the carbon black sector, the iron and steel sector or the pulp and paper sector; and (b) an owner of the facility that was located at the replacement facility’s site had acquired sulphur dioxide emission allowances in respect of that facility under this section.  O. Reg. 194/05, s. 29 (3). (4) An application made under subsection (1), (2) or (3) shall not include an application for sulphur dioxide emission allowances in respect of a modification or increased production of a facility, if the owner of the facility has also made an application under section 31 with respect to the modification or increased production of the facility for sulphur dioxide emission allowances for the same year.  O. Reg. 194/05, s. 29 (4). (5) If subsection (4) applies, the deemed production of the facility for the purposes of subsection (7) shall be, (a) the lesser of the amounts determined by the Director under subsections 4 (2) and (3), if the facility is in the cement sector, the iron and steel sector or the pulp and paper sector; or (b) the amount determined by the Director under subsection 4 (2), if the facility is in the petroleum sector and is listed in Table 9 or is a replacement facility located where a petroleum sector facility listed in Table 9 was located, the base metal smelting sector or the carbon black sector.  O. Reg. 194/05, s. 29 (5). (6) An application under this section must be made not later than June 1 in the year preceding the year for which the emission allowances are applied for.  O. Reg. 194/05, s. 29 (6). (7) For each facility for which an application for a sulphur dioxide emission allowances is made in accordance with this section, the Director shall determine the following amount: A × B – C where, A = the intensity rate for the facility determined in accordance with subsection (8), B = the deemed production of the facility determined in accordance with section 4, C = one-third of the total of the amounts of any sulphur dioxide reported under paragraph 2 of subsection 6 (4) in respect of the facility or the facility that was located at the replacement site, as the case may be. O. Reg. 194/05, s. 29 (7). (8) For the purpose of subsection (7), the intensity rate for the facility shall be determined in accordance with the following rules: 1. If the facility is listed in Table 9 and the Director has not determined an intensity rate for the facility pursuant to section 32 or the intensity rate has not been applied, the intensity rate is the intensity rate for the facility for the year for which the emission allowances are applied for, as determined in accordance with Table 9. 2. Subject to paragraph 5, if the Director has determined an intensity rate for the facility pursuant to section 32, the intensity rate is the most recently determined intensity rate for the facility determined under section 32 that has been applied in a previous application for sulphur dioxide emission allowances made in respect of the facility. 3. If the facility is a replacement facility and paragraph 2 does not apply and the Director has not determined an intensity rate for the facility that was previously located at the replacement facility’s site pursuant to section 32 or the intensity rate has not been applied, the intensity rate is the intensity rate for 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 9. 4. Subject to paragraph 5, if the facility is a replacement facility and paragraph 2 does not apply and the Director has determined an intensity rate for the facility that was located at the replacement facility’s site pursuant to section 32, the intensity rate is the most recently determined intensity rate for the facility that was located at the replacement facility’s site determined under section 32 that has been applied in a previous application for sulphur dioxide emission allowances made in respect of the facility. 5. If the most recently determined intensity rate for the facility or the facility that was located at the replacement facility’s site is greater than the intensity rate set out in Table 9 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, the intensity rate is the intensity rate for the facility or the facility that was located at the replacement facility’s site as determined in accordance with Table 9.  O. Reg. 194/05, s. 29 (8). (9) If the total of all the amounts determined under subsection (7) in respect of applications for sulphur dioxide emission allowances for a year for facilities in a regulated sector is less than or equal to the sulphur dioxide budget, calculated in accordance with section 23, for the regulated sector for the year for which emission are applied for, (a) the Director shall send written notice of the amount determined in respect of each facility in the regulated sector under subsection (7) to the owner of the facility and to the operator of the Registry not later than October 1 in the year preceding the year for which emission allowances are applied for; and (b) on January 1 of the year for which the emission allowances are applied for, the owner of a facility in the regulated sector shall be deemed to have acquired a sulphur dioxide emission allowances in respect of the facility in the amount determined for the facility under subsection (7).  O. Reg. 194/05, s. 29 (9). (10) If the total of all the amounts determined under subsection (7) in respect of applications for sulphur dioxide emission allowances for a year in respect of facilities in a regulated sector is more than the sulphur dioxide budget for that sector for that year, (a) the Director shall determine adjusted amounts under subsection (11) in respect of each facility in the regulated sector for which an amount was determined under subsection (7); (b) the Director shall send written notice of the adjusted amount determined in respect of a facility under subsection (11) to the owner of the facility and to the operator of the Registry not later than October 1 in the year preceding the year for which emission allowances are applied for; and (c) on January 1 of the year for which emission allowances are applied for, the owner of a facility shall be deemed to have acquired sulphur dioxide emission allowances in respect of the facility in the adjusted amount determined for the facility under subsection (11).  O. Reg. 194/05, s. 29 (10). (11) For the purpose of subsection (10), the adjusted amount in respect of a facility in a regulated sector in respect of an application for sulphur dioxide emission allowances for a year shall be determined in accordance with the following formula: A × B ÷ C where, A = the amount determined in respect of the facility under subsection (7), B = the sulphur dioxide budget, calculated in accordance with section 23, for the regulated sector for the year for which emission allowances are applied for, C = the total of all the amounts determined under subsection (7) in respect of all the facilities in the regulated sector. O. Reg. 194/05, s. 29 (11). (12) If the amount determined under subsection (7) in respect of an application for sulphur dioxide emission allowances for a year in respect of a facility in the petroleum sector listed in Table 9 or a replacement facility located on a site where a facility in the petroleum sector listed in Table 9 was located, the base metal smelting sector or the carbon black sector is less than or equal to the amount of the facility’s sulphur dioxide budget for that year, (a) the Director shall send written notice of the amount determined in respect of the facility under subsection (7) to the owner of the facility and to the operator of the Registry not later than October 1 in the year preceding the year for which emission allowances are applied for; and (b) on January 1 of the year for which emission allowances are applied for, the owner of the facility shall be deemed to have acquired sulphur dioxide emission allowances in respect of the facility in the amount determined in respect of the facility under subsection (7).  O. Reg. 194/05, s. 29 (12). (13) If the amount determined under subsection (7) in respect of an application for sulphur dioxide emission allowances for a year in respect of a facility in the petroleum sector listed in Table 9 or a replacement facility located on a site where a facility in the petroleum sector listed in Table 9 was located, the base metal smelting sector or the carbon black sector is more than the amount of the facility’s sulphur dioxide budget for that year, (a) the amount determined under subsection (7) in respect of the facility shall be reduced to an amount equal to the facility’s sulphur dioxide budget calculated in accordance with section 22, 24 or 25, as the case may be, for that year; (b) the Director shall send written notice of the adjusted amount determined in respect of the facility under clause (a) to the owner of the facility and the operator of the Registry not later than October 1 in the year preceding the year for which the emission allowances are applied for; and (c) on January 1 of the year for which emission allowances are applied for, the owner of a facility shall be deemed to have acquired sulphur dioxide emission allowances in respect of the facility in the adjusted amount determined for the facility under clause (a).  O. Reg. 194/05, s. 29 (13).