Phased out facilities — sulphur dioxide
 28. (1) For the purpose of determining the value of “D” under subsection 27 (8), the Director shall make a determination using the following rules: 1. If the deemed production of the facility determined in accordance with section 4 is greater than 50 per cent of the facility’s historical facility production, in at least one of the two years preceding the year in which the application is made, the value of “D” is zero. 2. If the deemed production of the facility determined in accordance with section 4 is less than or equal to 50 per cent of the facility’s historical facility production in each of the two years preceding the year in which the application is made, but is greater than zero in at least one in one of those years, the value of “D” is, (A + B) × .5 where, A = the amount of sulphur dioxide emission allowances set out in Table 8 in respect of the facility or the facility that was located at the replacement facility’s site, as the case may be, for the year for which emission allowances are applied for, B = the total amount of any sulphur dioxide emission allowances that the owner of the facility or the facility that was located at the replacement facility’s site acquired in respect of the facility or the facility that was located at the replacement facility’s site under section 35. 3. If the deemed production of the facility determined in accordance with section 4 is zero in each of the two years preceding the year in which the application is made, the value of “D” is, A + B where, A = the amount of sulphur dioxide emission allowances set out in Table 8 in respect of the facility or the facility that was located at the replacement facility’s site, as the case may be, for the year for which the emission allowances are applied for, B = the total amount of any sulphur dioxide emission allowances that the owner of the facility or the facility that was located at the replacement facility’s site acquired in respect of the facility or the facility that was located at the replacement facility’s site under section 35. O. Reg. 194/05, s. 28 (1). (2) If the facility does not produce any regulated product in any period of five consecutive years, (a) the facility, shall be deemed not to be listed for the purposes of any subsequent application made under this Regulation, including an application made under section 30 or 31; (b) no further applications shall be made under subsection 27 (1) in respect of the facility; (c) the owner of the facility may in subsequent years make an application under section 30 in respect of the facility, if the facility meets the criteria set out in section 30; (d) the owner of the facility may in subsequent years make an application under subsection 27 (3) or section 31 in respect of the facility, if sulphur dioxide emission allowances have been acquired by the owner of the facility as the result of an application under section 30; and (e) the amount of the sulphur dioxide emission allowances set out in respect of the facility or the facility that was located at the replacement facility’s site in Table 8 for the fifth year of the five-year period, if any, and the amount of sulphur dioxide emission allowances that the owner of the facility or the facility that was located at the replacement facility’s site acquired in respect of the facility or the facility that was located at the replacement facility’s site under section 35 in any previous year shall be added to the nitrogen oxides new source set aside in accordance with subsection 26 (4).  O. Reg. 194/05, s. 28 (2). (3) If clause (2) (a) applies with respect to a facility, the Director shall send written notice, (a) to the owner of the facility advising that the facility is deemed not to be listed; and (b) to the operator of the Registry advising that the facility is deemed not to be listed and setting out the amount of sulphur dioxide allowances to be added to the sulphur dioxide allowances new source set aside as of January 1 of the year following the year in which notice is given.  O. Reg. 194/05, s. 28 (3). (4) For the purposes of subsections (1) and (2) if no application is made under section 26 in respect of a facility listed in Table 8 or a facility described in subsection 27 (2) or (3) in a year, the deemed production of the facility shall be zero.  O. Reg. 194/05, s. 28 (4). (5) For the purpose of this section, if no application has been determined under section 31 in respect of a replacement facility, 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. 28 (5). (6) For the purpose of this section and subject to subsection (8), the historical facility production of a facility that is listed in Table 8 is the largest amount of regulated product that was produced in 2002, 2003 or 2004 by the facility as reported by the owner of the facility under paragraph 3 of subsection 6 (4).  O. Reg. 194/05, s. 28 (6). (7) For the purpose of this section and subject to subsection (8), the historical facility production of a facility that is not listed in Table 8 is equal to the value assigned to “B” in subsection 30 (6) in the application made respect of the facility in accordance with section 30.  O. Reg. 194/05, s. 28 (7). (8) If a previous application made in respect of the facility under section 31 has been determined, for the purpose of this section the historical facility production of the facility is the value assigned to “B” in subsection 31 (4) in the most recently determined application made under section 31 in respect of the facility.  O. Reg. 194/05, s. 28 (8).