Nitrogen oxides allowances for renewable energy and conservation projects
 12. (1) A person may apply to the Director for nitrogen oxides emission allowances in connection with a renewable energy project or conservation project.  O. Reg. 193/05, s. 8 (1). (2) The application must be made not later than September 1 in a year.  O. Reg. 397/01, s. 12 (2). (3) The Director shall determine all applications made in a year not later than November 1 in the year.  O. Reg. 397/01, s. 12 (3). (4) Subject to subsections (5) and (6), the Director shall determine the applications in accordance with the Ontario Emissions Trading Code and shall award successful applicants with the amount of nitrogen oxides emission allowances determined in accordance with the Code.  O. Reg. 397/01, s. 12 (4); O. Reg. 193/05, s. 8 (2). (5) The total amount of nitrogen oxides emission allowances that may be awarded by the Director under subsection (4) in a year must not exceed 1.5 kilotonnes.  O. Reg. 193/05, s. 8 (3). (6) If the total amount of nitrogen oxides emission allowances that would be awarded by the Director under subsection (4) in a year, determined in accordance with the Ontario Emissions Trading Code, would exceed 1.5 kilotonnes, the Director shall instead award each successful applicant with an amount of nitrogen oxides emission allowances determined in accordance with the following formula: (A ÷ B) × 1.5 kilotonnes where, A = the amount of nitrogen oxides emission allowances that would have been awarded to the successful applicant if that amount had been determined in accordance with the Ontario Emissions Trading Code, B = the total amount of nitrogen oxides emission allowances that would have been awarded to all successful applicants if that amount had been determined in accordance with the Ontario Emissions Trading Code. O. Reg. 193/05, s. 8 (4). (7) If the Director awards a person with nitrogen oxides emission allowances under subsection (4) or (6) in a year, (a) the Director shall, not later than November 1 of the year, send written notice of the amount awarded to the person and to the operator of the Registry; and (b) on December 1 of the year, the person shall be deemed to have acquired the nitrogen oxides emission allowances awarded by the Director.  O. Reg. 397/01, s. 12 (7); O. Reg. 193/05, s. 8 (5). (8) If, in a year from 2002 to 2005, no nitric oxide emission allowances are awarded by the Director under subsection (6) and the total amount of nitric oxide emission allowances awarded by the Director under subsection (4) is less than 1.0 kilotonnes, Ontario Power Generation Inc. shall be deemed, on December 1 of the year, to have acquired nitric oxide emission allowances in respect of the combined nitric oxide facilities in an amount equal to 1.0 kilotonnes less the total amount of nitric oxide emission allowances awarded by the Director under subsection (4).  O. Reg. 397/01, s. 12 (8); O. Reg. 193/05, s. 8 (6). (8.1) If in 2006 no nitrogen oxides emission allowances are awarded by the Director under subsection (6) and the total amount of nitrogen oxides emission allowances awarded by the Director under subsection (4) is less than 1.5 kilotonnes, Ontario Power Generation Inc. shall be deemed, on December 1, 2006, to have acquired nitrogen oxides emission allowances in respect of the combined nitrogen oxides facilities in an amount equal to 1.5 kilotonnes less the total amount of nitrogen oxides emission allowances awarded by the Director under subsection (4).  O. Reg. 193/05, s. 8 (7). (9) If, in 2007, no nitrogen oxides emission allowances are awarded by the Director under subsection (6) and the total amount of nitrogen oxides emission allowances awarded by the Director under subsection (4) is less than 1.5 kilotonnes, (a) Ontario Power Generation Inc. shall be deemed, on December 1, 2007, to have acquired nitrogen oxides emission allowances in respect of the combined nitrogen oxides facilities located in the Pollution Emission Management Area in an amount equal to 1.5 kilotonnes less the total amount of nitrogen oxides emission allowances awarded by the Director under subsection (4), multiplied by 0.91; and (b) Ontario Power Generation Inc. shall be deemed, on December 1, 2007, to have acquired nitrogen oxides emission allowances in respect of the combined nitrogen oxides facilities that are not located in the Pollution Emission Management Area in an amount equal to 1.5 kilotonnes less the total amount of nitrogen oxides emission allowances awarded by the Director under subsection (4), multiplied by 0.09.  O. Reg. 193/05, s. 8 (8). (10) If, in 2008 or a later year, no nitrogen oxides emission allowances are awarded by the Director under subsection (6) and the total amount of nitrogen oxides emission allowances awarded by the Director under subsection (4) is less than 1.5 kilotonnes, each person who acquired nitrogen oxides emission allowances in respect of a generation facility on January 1 of the year under section 11 shall be deemed, on December 1 of the year, to have acquired nitrogen oxides emission allowances in respect of the facility in an amount determined in accordance with the following formula: (A ÷ 41.3 kilotonnes) × (1.5 kilotonnes – B) where, A = the amount of nitrogen oxides emission allowances acquired in respect of the facility on January 1 of the year under section 11, B = the total amount of nitrogen oxides emission allowances awarded by the Director under subsection (4). O. Reg. 193/05, s. 8 (9). Distribution of Sulphur Dioxide Emission Allowances