Application to retire sulphur dioxide emission allowances and credits
 38. (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) sulphur dioxide 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 sulphur dioxide in the previous year, (ii) in the base metal smelting sector and has the capacity to produce more than 1,000 tonnes of nickel and copper contained in matte per year and emitted more than 5,000 tonnes of sulphur dioxide 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 sulphur dioxide in the previous year, (iv) in the petroleum sector and has the capacity to refine more than 50,000 barrels of oil per day or process more that 20,000 barrels of petroleum feedstock per day to produce lubricating oils and greases and emitted more than 100 tonnes of sulphur dioxide in the previous year, (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 that emitted more than 100 tonnes of sulphur dioxide in the previous year, or (vi) in the carbon black sector and has the capacity to produce more than 25,000 tonnes of carbon black per year and emitted more than 100 tonnes of sulphur dioxide in the previous year.  O. Reg. 194/05, s. 38 (1). (2) A facility to which clause 28 (2) (a) applies shall be deemed not to have produced regulated product on or before January 1, 2005.  O. Reg. 194/05, s. 38 (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 sulphur dioxide emission allowances for the purpose of subsection (5).  O. Reg. 194/05, s. 38 (3). (4) An application under subsection (3) may also include an application for approval to retire sulphur dioxide emission reduction credits for the purpose of subsection (5).  O. Reg. 194/05, s. 38 (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 sulphur dioxide emission allowances that are retired for the purpose of this subsection with the approval of the Director, B = the total amount of sulphur dioxide emission reduction credits that are retired for the purpose of this subsection with the approval of the Director, C = the amount of sulphur dioxide that the owner of the facility reported under subsection 46 (5) were emitted from the facility in the previous year. O. Reg. 194/05, s. 38 (5).