Definitions and application
 1. (1) In this Regulation, “air dried tonne of pulp” means an air dried tonne of pulp where the weight of the pulp is corrected to reflect the weight that the pulp would be if the pulp were composed of 10 per cent water and 90 per cent fibre; “average annual production” means the amount of regulated product produced by a facility in a typical production year; “barrel” means 42 standard U.S. gallons; “carbon black” means carbon pellets or fine powder produced by pyrolysis of hydrocarbon feedstock; “clinker” means the product of a Portland cement kiln from which finished cement is manufactured by milling and grinding; “copper products” means copper products that are produced by refining smelted copper; “emission reduction credits” means nitric oxide emission reduction credits, nitrogen oxides emission reduction credits or sulphur dioxide emission reduction credits; “facility” includes all buildings, equipment, structure and stationary items, such as surfaces and storage piles that are located on a single site; “flat glass” means commercial glass that is produced from silica, soda and lime and that is formed using a float process; “matte” means an impure metallic sulphide mixture produced by smelting copper or nickel concentrate; “name plate capacity” means, with respect to a facility, the total of the design electricity generating capacities of all the generation units in the facility; “nickel products” means nickel products that are produced by refining smelted nickel; “nitric oxide emission allowances” means nitric oxide emission allowances acquired under Ontario Regulation 397/01 (Emissions Trading) made under the Act; “nitric oxide emission reduction credits” means nitric oxide emission reduction credits created in accordance with the Ontario Emission Trading Code; “nitrogen oxides” means the sum, calculated in accordance with subsection (2), of nitric oxide and nitrogen dioxide; “nitrogen oxides budget” means, for a regulated sector and year, the amount recorded in the Registry for that sector and that year in accordance with section 10; “nitrogen oxides emission reduction credits” means nitrogen oxides emission reduction credits created in accordance with the Ontario Emission Trading Code; “nitrogen oxides new source set aside” means, for a year, the amount recorded in the Registry for that year in accordance with section 11; “non-smog season” means the period from October 1 to April 30 in each year; “Ontario Emissions Trading Code” means the Ministry of the Environment publication of that name, dated May 2005; “operator of the Registry” has the same meaning as in Ontario Regulation 397/01 (Emissions Trading) made under the Act; “petroleum feedstock” means feedstock processed in catalytic crackers or hydrotreater units to produce lubricating oils and greases; “produced” in connection with a regulated product means, (a) with respect to carbon black, the producing of carbon pellets or fine powder by pyrolysis of hydrocarbon feedstock, (b) with respect to clinker, the producing of clinker in Portland cement kilns, (c) with respect to copper products, the producing of copper products by refining smelted copper, (d) with respect to ethylene, the producing of ethylene by the processing of natural gas liquid or feedstock from the refining of crude oil and its derivatives, (e) with respect to flat glass, the producing of commercial glass from silica, soda and lime and that is formed using a float process, (f) with respect to copper or nickel matte, the producing of matte by smelting copper or nickel concentrates, (g) with respect to nickel products, the producing of nickel products by refining smelted nickel, (h) with respect to oil, the refining of crude oil, (i) with respect to petroleum feedstock, the processing of petroleum feedstock in catalytic crackers or hydrotreater units to produce lubricating oils and greases, (j) with respect to pulp, the producing of pulp by the kraft process, and (k) with respect to shipped steel, the shipping of steel manufactured or processed at the facility; “Registry” has the same meaning as in Ontario Regulation 397/01 (Emissions Trading) made under the Act; “regulated sector” means, (a) the base metal smelting sector, (b) the carbon black sector, (c) the cement sector, (d) the flat glass sector, (e) the iron and steel sector, (f) the petroleum sector, or (g) the pulp and paper sector; “Report EPS 1/PG/7” means the Environment Canada publication entitled “Protocols and Performance Specifications for Continuous Monitoring of Gaseous Emissions from Thermal Power Generation – Report EPS1/PG/7”, dated September 1993; “site” means a property and includes nearby properties owned or leased by the same person where passage from one property to another involves crossing, but not travelling along, a public highway; “smog season” means the period from May 1 to September 30 in each year; “steel” means steel that is produced by smelting iron ore into pig iron and converting the pig iron to steel by removing carbon through combustion in furnaces; “sulphur dioxide budget” means, for a facility and year or for a regulated sector and year, the amount recorded in the Registry for that facility or sector, as the case may be, and that year in accordance with section 22, 23, 24 or 25, as the case may be; “sulphur dioxide new source set aside” means, for a year, the amount recorded in the Registry for that year in accordance with section 26.  O. Reg. 194/05, s. 1 (1). (2) The amount of nitrogen oxides are calculated for the purpose of this Regulation according to the following formula: A = (B × 1.53) + C where, A = the total amount of nitrogen oxides expressed as nitrogen dioxide, B = the relevant amount of nitric oxide, C = the relevant amount of nitrogen dioxide. O. Reg. 194/05, s. 1 (2). (3) For the purpose of this Regulation, (a) the base metal smelting sector is composed of facilities at which matte is produced by smelting copper or nickel concentrates; (b) the carbon black sector is composed of facilities at which carbon black is produced; (c) the cement sector is composed of facilities at which clinker is produced in Portland cement kilns; (d) the flat glass sector is composed of facilities at which flat glass is produced; (e) the iron and steel sector is composed of facilities from which steel manufactured or processed at the facility is shipped; (f) the petroleum sector is composed of facilities at which crude oil is refined or petroleum feedstock is processed in catalytic crackers or hydrotreater units to produce lubricating oils and greases; and (g) the pulp and paper sector is composed of facilities at which pulp is produced by the kraft process.  O. Reg. 194/05, s. 1 (3). (4) For the purpose of this Regulation, (a) except as provided in clause (b), the regulated product of a facility in the base metal smelting sector is copper and nickel contained in matte produced at the facility; (b) the regulated products of the base metal smelting facility listed as Inco, Sudbury in the tables to this Regulation are copper products and nickel products; (c) the regulated product of a facility in the carbon black sector is carbon black; (d) the regulated product of a facility in the cement sector is clinker; (e) the regulated product of a facility in the flat glass sector is flat glass; (f) the regulated product of a facility in the iron and steel sector is shipped steel; (g) except as provided in clause (h), the regulated product of a facility in the petroleum sector that refines crude oil is oil; (h) the regulated product of a facility in the petroleum sector listed in Table 9 or a replacement facility located at the site of a facility in the petroleum sector listed in Table 9 is ethylene; (i) the regulated product of a facility in the petroleum sector that processes petroleum feedstock in catalytic crackers or hydrotreaters units to produce lubricating oils and greases, but that does not refine crude oil, is petroleum feedstock; and (j) the regulated product of a facility in the pulp and paper sector is pulp produced by the kraft process.  O. Reg. 194/05, s. 1 (4). (5) For the purpose of this Regulation, a facility is a replacement facility if, (a) the facility is located at a site where another facility that produced a regulated product was previously located; (b) the facility commences production of a regulated product within five years after the facility that was located at the site ceased production; (c) the facility produces the same type of regulated product that was produced by the facility that was previously located at the site; and (d) the owner of the facility that was previously located at the site had acquired emission allowances in respect of the facility under this Regulation.  O. Reg. 194/05, s. 1 (5). General