Duty to verify, covered facilities
 12. (1) The owner or operator of a covered facility shall determine the verification amount in respect of the covered facility in accordance with the formula set out in subsection (2) for each of the following years: 1.  Each compliance period to which Part III of the EPS regulation applies to the owner or operator in respect of the covered facility. 2.  If the covered facility is registered under paragraph 3 of subsection 4 (1) of the EPS Regulation, each year in the registration period before the covered facility’s first compliance period. O. Reg. 563/22, s. 5. (2) The following is the formula mentioned in subsection (1): VA = A – B – C – D + E where, VA =  the verification amount, expressed as tonnes of CO2e, A =  the amount of greenhouse gas emitted from the covered facility during the year in respect of all specified GHG activities engaged in at the covered facility, quantified in accordance with section 5 and expressed as tonnes of CO2e, B =  the portion of A, expressed as tonnes of CO2e, that is carbon dioxide emitted from the combustion of biomass at the covered facility, C =  the portion of A, expressed as tonnes of CO2e, that is emitted from the covered facility in respect of, (a)  coal storage, (b)  the operation of a natural gas pipeline system, (c)  the operation of equipment for an electricity transmission or distribution system, (d)  HCFC-22 production and HFC-23 destruction, and (e)  other emissions, as described in subsection (3), D =  the amount of carbon dioxide identified by the owner or operator, in accordance with the eligibility rules in subsection (4), representing a portion of the carbon dioxide that has been permanently stored in long-term geological storage during the year, and E =  the amount of greenhouse gas emitted from the covered facility during the year, expressed as tonnes of CO2e, in respect of, (a)  CO2 recovered and consumed in urea production, (b)  CO2
recovered or captured from hydrogen production, (c)  flares in the operation of a natural gas pipeline system, (d)  basic oxygen furnace gas transferred off-site, (e)  coke oven gas transferred off-site, and (f)  blast furnace gas transferred off-site. O. Reg. 563/22, s. 5. (3) For the purposes of clause (e) of “C” in the formula in subsection (2), the other emissions are emissions, (a)  that result from engaging in an activity that is part of engaging in the specified GHG activities at a covered facility but for which no corresponding standard quantification method is set out in the Guideline; and (b)  that are quantified, as provided for in the Guideline, by using a method that is consistent with one or more methods specified in the Guideline. O. Reg. 563/22, s. 5. (4) Carbon dioxide that satisfies the following criteria is eligible to be identified for the purposes of “D” in the formula in subsection (2): 1.  The carbon dioxide has been permanently stored in long-term geological storage during the year. 2.  The carbon dioxide was generated in respect of one or more specified GHG activities engaged in at the covered facility during the year or, subject to paragraph 4, during any previous year. 3.  The carbon dioxide was captured, transported and stored in accordance with any applicable provincial or federal law and, at each stage, the amount of carbon dioxide being captured, transported and stored was quantified in accordance with the Guideline. 4.  The carbon dioxide has not been previously identified for the purposes of “D” in respect of the covered facility or any other facility. O. Reg. 563/22, s. 5. (5) For greater certainty, for the purposes of “D” in the formula in subsection (2), an owner or operator may identify any amount of carbon dioxide that satisfies the eligibility criteria in subsection (4), including no amount. O. Reg. 563/22, s. 5. (6) If the verification amount determined under subsection (1) is a negative number, it is deemed to be zero. O. Reg. 563/22, s. 5. (7) If an owner or operator of a covered facility mentioned in subsection (1) has received a notice of registration under subsection 64 (2) of the
Greenhouse Gas Pollution Pricing Act (Canada) from the Minister of National Revenue dated after January 1 in the covered facility’s first compliance period in respect of a registration period setting out the effective date of registration of the owner or operator as a registered emitter in respect of the covered facility, the determination of the verification amount under subsection (1) of this section for the covered facility’s first compliance period in respect of the registration period shall not include any amount for the portion of the year prior to the effective date contained in the notice. O. Reg. 563/22, s. 5. (8) If an owner or operator of a covered facility mentioned in subsection (1) receives a notice under subsection 8 (3) of the EPS Regulation dated on or after January 1 in the year that is the subject of the determination under subsection (1) of this section setting out an effective date of a change in respect of the composition of sites that constitute the covered facility, the following rules apply for the purposes of determining the verification amount under subsection (1) of this section for that year: 1.  If a site that, before the effective date, constituted part of another covered facility is added to the covered facility, the site is deemed to have constituted part of the covered facility mentioned in subsection (1) for the entire year. 2.  If a site that, before the effective date, did not constitute part of another covered facility is added to the covered facility, no amount in respect of the site shall be included in the determination under subsection (1) for the portion of the year that occurs before the effective date. 3.  If a site is removed from the covered facility and added to another covered facility, the site is deemed not to have constituted part of the covered facility mentioned in subsection (1) for the entire year. 4.  If a site is removed from the covered facility and is not added to another covered facility, no amount in respect of the site shall be included in the determination under subsection (1) for the portion the year that occurs after the effective date. O. Reg. 563/22, s. 5. (9) The owner or operator mentioned in subsection (1) shall, (a)  set out the verification amount in the report and have the report verified by an accredited verification body in accordance with this Regulation; and (b)  submit a verification statement prepared in accordance with section 18 and a verification report prepared in accordance with section 21 to the Director on or before September 1 in the year in which the report to be verified is required to be submitted to the Director. O. Reg. 563/22, s. 5. (10) Despite anything else in this section, the owner or operator of a covered facility that first became a covered facility in 2021 is not required to determine the verification amount or submit a verification statement or verification report with regard to emissions in that year. O. Reg. 563/22, s. 5. 13. Revoked: O. Reg. 77/19, s. 8. General Rules