Application to retire nitrogen oxides emission allowances and credits
 37. (1) This section applies to a facility for a year if the facility is listed in a table to this Regulation or the facility did not produce a regulated product before January 1, 2005 and, (a) nitrogen oxide emission allowances were acquired by any person in respect of the facility on January 1 of the previous year under this Regulation; (b) the facility produced a regulated product in the previous year and the facility is listed in a table to this Regulation; or (c) the facility produced a regulated product in the previous year and the facility did not produce a regulated product before January 1, 2005 and the facility is, (i) in the cement sector and has the capacity to produce more than 100,000 tonnes of clinker per year and emitted more than 100 tonnes of nitrogen oxides in the previous year, (ii) in the flat glass sector and has the capacity to produce more than 50,000 tonnes of flat glass per year and emitted more than 100 tonnes of nitrogen oxides in the previous year, (iii) in the iron and steel sector and has the capacity to ship more than 100,000 tonnes of steel per year and emitted more than 100 tonnes of nitrogen oxides in the previous year, (iv) in the petroleum sector and has the capacity to refine more than 50,000 barrels of crude oil per day or process more than 20,000 barrels of petroleum feedstock per day to produce lubricating oils and greases and emitted more than 100 tonnes of nitrogen oxides in the previous year, or (v) in the pulp and paper sector and has the capacity to produce more than 100,000 air dried tonnes of pulp per year and emitted more than 100 tonnes of nitrogen oxides in the previous year.  O. Reg. 194/05, s. 37 (1). (2) A facility to which clause 13 (2) (a) applies shall be deemed not to have produced regulated product on or before January 1, 2005.  O. Reg. 194/05, s. 37 (2). (3) Not later than March 31 in each year after 2006, the owner of a facility to which this section applies for the year shall apply to the Director for approval to retire nitrogen oxides emission allowances for the purpose of subsection (5).  O. Reg. 194/05, s. 37 (3). (4) An application under subsection (3) may also include an application for approval to retire nitric oxide emission allowances, nitric oxide emission reduction credits and nitrogen oxides emission reduction credits for the purpose of subsection (5).  O. Reg. 194/05, s. 37 (4). (5) For each year after 2006, the owner of a facility to which this section applies shall, not later than June 1 of the year, ensure that the following statement is true: A + (B × 0.9) ≥  C where, A = the total amount of nitrogen oxides emission allowances and nitric oxide emission allowances that are retired for the purpose of this subsection with the approval of the Director, B = the total amount of nitrogen oxides emission reduction credits and nitric oxide emission reduction credits that are retired for the purpose of this subsection with the approval of the Director, C = the amount of nitrogen oxides that the owner of the facility reported in accordance with subsection 45 (5) were emitted from the facility in the previous year. O. Reg. 194/05, s. 37 (5). (6) For the purpose of subsection (5), (a) a nitric oxide emission allowance acquired under Ontario Regulation 397/01 (Emissions Trading) made under the Act is equivalent to 1.53 of a nitrogen oxides emission allowance; and (b) a nitric oxide emission reduction credit created in accordance with the Ontario Emissions Trading Code is equivalent to 1.53 of a nitrogen oxides emission reduction credit.  O. Reg. 194/05, s. 37 (6).