Deemed production
 4. (1) Except as provided in this section, a facility’s deemed production shall be the lesser of the amounts determined by the Director under subsections (2) and (3).  O. Reg. 194/05, s. 4 (1). (2) For the purpose of determining a facility’s deemed production, the Director shall determine the results of the following formula: (A + B) ÷ 2 where, A = the largest amount of the regulated product that was produced by the facility or the facility that was located at the replacement facility’s site, as the case may be, in any one year
of the three years immediately preceding the year in which the application is made, B = the second largest amount of the regulated product that was produced by the facility or the facility that was located at the replacement facility’s site, as the case may be, in any one year of the three years immediately preceding the year in which the application is made. O. Reg. 194/05, s. 4 (2). (3) For the purpose of determining a facility’s deemed production, the Director shall determine the results of the following formula: C × 1.2 where, C = the historical facility production of the facility. O. Reg. 194/05, s. 4 (3). (4) Despite subsection (1) and subject to subsection (5), the deemed production 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, in the base metal smelting sector or in the carbon black sector is the amount determined by the Director in accordance with subsection (2).  O. Reg. 194/05, s. 4 (4). (5) Despite subsection (1) and subject to subsection 14 (5) and 29 (5), a facility’s deemed production shall be the amount of regulated product that the owner of the facility estimates will be produced by the facility during the following year, (a) if an application in respect of the facility has been made under section 15 or 30 and the determination of the facility’s deemed production is being made in respect of the first, second, third or fourth application made in respect of the facility for emission allowances and the facility, (i) is not a replacement facility, and (ii) is not listed in a table to this Regulation; (b) if an increase in production or a modification of a process or equipment has or will occur and an application in respect of an increase in the amount of a regulated product produced by the replacement facility has been made under section 16 or 31 and the determination of the facility’s deemed production is being made in respect of the first, second, third or fourth application made in which emission allowances are sought in respect of the increased production or modification of the facility; or (c) if the facility is a replacement facility and an application in respect of an increase in the amount of a regulated product produced by the replacement facility has been made under section 16 or 31 and the determination of the facility’s deemed production is being made in respect of the first, second, third or fourth application made in which emission allowances are sought in respect of the increased amount of regulated product produced by the replacement facility.  O. Reg. 194/05, s. 4 (5). (6) Subsections (7), (8) and (9) apply to the determination of a facility’s deemed production if, (a) there was a previous determination of the facility’s deemed production under subsection (5); and (b) the determination is being made in the second year after the previous determination.  O. Reg. 194/05, s. 4 (6). (7) If subsection (6) applies, the Director shall calculate the following as part of his or her determination of the facility’s deemed production under subsection (2), (3) or (5): X – Y where, X = the amount of regulated product produced by the facility during the completed production year, Y = the amount of regulated product that the owner of the facility estimated, or was deemed to have estimated, would be produced by the facility for the purpose of subsection (5) when the previous determination was made. O. Reg. 194/05, s. 4 (7). (8) If the amount calculated under subsection (7) is greater than zero, the facility’s deemed production under subsection (2), (3) or (5) is increased by that amount.  O. Reg. 194/05, s. 4 (8). (9) If the amount calculated under subsection (7) is zero or less than zero, the facility’s deemed production under subsection (2), (3) or (5) is reduced by the following amount: –1.1 × A where, A = the amount determined under subsection (7). O. Reg. 194/05, s. 4 (9). (10) For the purpose of this section, if no application has been determined under section 16 or 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. 4 (10). (11) For the purpose of this section, and subject to subsection (13), the historical facility production of a facility that is listed in a table to this Regulation 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. 4 (11). (12) For the purpose of this section and subject to subsection (13), the historical facility production of a facility that is not listed in a table to this Regulation is equal to the value assigned to “B” in subsection 15 (6) or 30 (6) in an application made in respect of the facility in accordance with section 15 or 30.  O. Reg. 194/05, s. 4 (12). (13) For the purpose of this section, if an application in respect of a facility has been determined under section 16 or 31, the historical facility production of the facility is equal to the value assigned to “B” in subsection 16 (4) or 31 (4) in the most recently determined application made in respect of the facility under section 16 or 31.  O. Reg. 194/05, s. 4 (13). (14) In this section, “completed production year” means the year following the year in which the previous determination referred to in subsection (6) was made; “following year” means, with respect to a determination of a facility’s deemed production, the year following the year in which the determination is made.  O. Reg. 194/05, s. 4 (14).