Management and Reduction of Greenhouse Gases (General and Electricity Producer) Regulations, M-2.01 Reg 1

1 MANAGEMENT AND REDUCTION OF GREENHOUSE GASES (GENERAL AND ELECTRICITY PRODUCER) M-2.01 REG 1 The Management and Reduction of Greenhouse Gases (General and Electricity Producer) Regulations being Chapter M-2.01 Reg 1 (effective January 1, 2018) as amended by Saskatchewan Regulations 79/2024. NOTE: This consolidation is not official. Amendments have been incorporated for convenience of reference and the original statutes and regulations should be consulted for all purposes of interpretation and application of the law. In order to preserve the integrity of the original statutes and regulations, errors that may have appeared are reproduced in this consolidation. 2 MANAGEMENT AND REDUCTION OF GREENHOUSE M-2.01 REG 1 GASES (GENERAL AND ELECTRICITY PRODUCER) Table of Contents PART 1 15 Manner of establishing baseline emissions – Preliminary Matters based on fleet 1 Title 16 Emission reduction obligations 2 Definitions 16.1 Performance credits 3 Application of regulations to IPPs 17 Repealed 3.1 Standard 18 Allowed deductions 19 IPP required to provide information when requested PART 2 General Provisions respecting 19.1 Audits and inspections Greenhouse Gases and Emissions PART 4 4 Emissions to be measured in tonnes, etc., of COe 2 Coming into force 5 Certain other greenhouse gases prescribed 20 Coming into force 6 Global warming potential and COe of 2 greenhouse gases Appendix 7 When annual returns must be submitted PART 1 8 Administrative penalties Hydrofluorocarbons 8.1 Confidentiality requests PART 2 Perfluorocarbons PART 3 Matters respecting Gas and Coal-Fired Generators PART 3 9 Definitions for Part Provisions for which Administrative Penalty May be Imposed 10 Qualified person PART 4 11 Determining emissions by regulated emitter Emission Reduction Obligations 12 Repealed Table 1 13 Repealed 14 Baseline emissions based on fleet 3 MANAGEMENT AND REDUCTION OF GREENHOUSE GASES (GENERAL AND ELECTRICITY PRODUCER) M-2.01 REG 1 CHAPTER M-2.01 REG 1 The Management and Reduction of Greenhouse Gases Act PART 1 Preliminary Matters Title 1 These regulations may be cited as The Management and Reduction of Greenhouse Gases (General and Electricity Producer) Regulations. Definitions 2(1) In these regulations: “Act” means The Management and Reduction of Greenhouse Gases Act; “facility” means the physically connected equipment within a gas or coal-fired generator that operates together to produce electricity by thermal means, including boilers and other combustion devices, gasifiers, reactors, turbines and generators; “IPP” or “independent power producer” means, subject to section 3, a person who: (a) produces greenhouse gases in excess of 10 000 tonnes per year by generating electricity from a generator, other than by means of biomass or the burning of: (i) flare gas; (ii) vented gas; or (iii) any other collected or captured gas that would otherwise have been released into the atmosphere; and (b) sells or otherwise delivers the electricity mentioned in clause (a) to a regulated emitter. “regulated facility” means a facility owned or operated by a regulated emitter. (2) For the purposes of the Act and in these regulations, “regulated emitter” means a person who produces greenhouse gases in excess of 1 500 000 tonnes per year by generating electricity from a gas or coal-fired generator. 15 Dec 2017 c M-2.01 Reg 1 s2; 29 Nov 2024 SR 79/2024 s3. Application of regulations to IPPs 3(1) In this section, “cogeneration facility” means a facility that simultaneously generates electric energy and produces thermal energy for industrial purposes from the same fuel source. (2) These regulations do not apply to an IPP with respect to emissions from a facility that becomes a cogeneration facility after the date on which these regulations come into force. 15 Dec 2017 c M-2.01 Reg 1 s3; 29 Nov 2024 SR 79/2024 s4. 4 MANAGEMENT AND REDUCTION OF GREENHOUSE M-2.01 REG 1 GASES (GENERAL AND ELECTRICITY PRODUCER) Standard 3.1(1) The minister may develop or adopt one or more standards respecting any matters dealt with by these regulations, including the following: (a) establishing and calculating baseline emissions levels; (b) annual returns; (c) global warming potentials for greenhouse gases; (d) performance credits and allowed deductions; (e) verification of annual returns and opinions of qualified persons; (f) quantification methodologies for greenhouse gases; (g) audits and inspections. (2) In accordance with subsection 7(4) of the Act, the minister shall cause every standard to be made public in any manner the minister considers appropriate, including publishing it on the ministry’s website. (3) The minister shall undertake any consultations with regulated emitters that the minister considers appropriate before amending an applicable standard. (4) No regulated emitter shall fail to comply with an applicable standard. 29 Nov 2024 SR 79/2024 s5. PART 2 General Provisions respecting Greenhouse Gases and Emissions Emissions to be measured in tonnes, etc., of COe 2 4 For the purposes of the Act and these regulations, greenhouse gas emissions must be measured, calculated and expressed in tonnes (t), kilotonnes (kt) or megatonnes (Mt) of CO e. 2 15 Dec 2017 c M-2.01 Reg 1 s4. Certain other greenhouse gases prescribed 5(1) For the purposes of subclause 2(j)(iv) of the Act, the prescribed hydrofluorocarbons are those listed in Part 1 of the Appendix. (2) For the purposes of subclause 2(j)(v) of the Act, the prescribed perfluorocarbons are those listed in Part 2 of the Appendix. 15 Dec 2017 c M-2.01 Reg 1 s5. Global warming potential and COe of greenhouse gases 2 6(1) The global warming potential for a greenhouse gas is the 100-year time horizon global warming potential value as established: (a) in the Fifth Assessment Report (AR5) issued by the Intergovernmental Panel on Climate Change; or (b) by order of the minister. (2) The CO e for a greenhouse gas must be quantified in accordance with the 2 following formula: CO e = GHG × GWP 2 5 MANAGEMENT AND REDUCTION OF GREENHOUSE GASES (GENERAL AND ELECTRICITY PRODUCER) M-2.01 REG 1 where: GHG is the mass of the greenhouse gas; and GWP is the 100-year time horizon global warming potential value for the greenhouse gas. 15 Dec 2017 c M-2.01 Reg 1 s6; 29 Nov 2024 SR 79/2024 s6. When annual returns must be submitted 7 A regulated emitter shall submit its annual return required by section 19 of the Act on or before: (a) July 31 of the year following the year to which the annual return relates; (b) another date that is requested by the regulated emitter; or (c) another date that the minister may direct in writing. 29 Nov 2024 SR 79/2024 s7. Administrative penalties 8(1) For the purposes of section 78 of the Act, the minister may assess a penalty for a contravention of a provision of the Act or these regulations set out in Part 3 of the Appendix. (2) An administrative penalty may be imposed only on: (a) a regulated emitter; or (b) an IPP. (3) The maximum penalty the minister may assess with respect to each contravention is $10,000. 15 Dec 2017 c M-2.01 Reg 1 s8. Confidentiality requests 8.1(1) For the purposes of subsections 61(3) and (4) of the Act, requests to the minister to keep confidential all or any part of an annual return must be made in writing in conjunction with submission of the annual return. (2) After receiving a request for confidentiality pursuant to subsection (1), the minister shall, as soon as is practicable, provide a written response to the regulated emitter indicating if the request has or has not been accepted, together with reasons for the minister’s decision. (3) Subject to subsection (4), during the period in which the minister is considering a request for confidentiality made pursuant to subsection (1), the information contained in the annual return to which the request relates shall be kept confidential until the minister provides a written response to the regulated emitter pursuant to subsection (2). (4) For the purposes of subsection (3), the following information contained in an annual return will not be kept confidential while the minister is considering a request for confidentiality: (a) the name of the regulated facility; (b) the ownership of the regulated facility; 6 MANAGEMENT AND REDUCTION OF GREENHOUSE M-2.01 REG 1 GASES (GENERAL AND ELECTRICITY PRODUCER) (c) the location of the regulated facility; (d) the annual emissions for the regulated facility; (e) any other information specified in an applicable standard that the minister is satisfied should not be kept confidential. (5) If the minister proposes to not accept the request for confidentiality pursuant to subsection (2), the minister shall give the regulated emitter 7 business days after the date of receipt of the written response mentioned in that subsection to make written representations to the minister. (6) After reviewing any written representations made pursuant to subsection (5) or, if no written representations are made, after the expiry of the 7-day period mentioned in that subsection, the minister: (a) may make a final decision to accept or not accept the request for confidentiality; and (b) shall provide written notice to the person of the minister’s decision. 29 Nov 2024 SR 79/2024 s8. PART 3 Matters respecting Gas and Coal-Fired Generators Definitions for Part 9(1) In this Part: “accredited verification body” means a corporation, organization, association, institution or other body that has a certificate of accreditation that: (a) is issued by the Standards Council of Canada, the American National Standards Institute or any other member of the International Accreditation Forum; (b) states that the corporation, organization, association, institution or other body, as the case may be, meets the requirements set out in ISO 14065; (c) is accompanied by a scope of accreditation that states that the corporation, organization, association, institution or other body, as the case may be: (i) is accredited to verify greenhouse gas emissions from power generation; and (ii) shall carry out any verification of greenhouse gas emissions in accordance with the requirements set out in ISO 14064-3; and (d) is valid and not under suspension or cancellation; “fleet” means all facilities owned or operated by a regulated emitter and all its IPPs; “ISO”means the International Organization for Standardization; “ISO 14064-3” means: (a) the ISO 14064-3 standard entitled Greenhouse Gases – Part 3: Specification with guidance for the verification and validation of greenhouse gas statements, Edition 2, published by the ISO in 2019; or 7 MANAGEMENT AND REDUCTION OF GREENHOUSE GASES (GENERAL AND ELECTRICITY PRODUCER) M-2.01 REG 1 (b) a newer version of the standard mentioned in clause (a) that the minister may direct in writing be used; “ISO 14065” means: (a) the ISO 14065 standard entitled General principles and requirements for bodies validating and verifying environmental information, Edition 3, published by the ISO in 2020; or (b) a new version of the standard mentioned in clause (a) that the minister may direct in writing be used. 29 Nov 2024 SR 79/2024 s9. Qualified person 10(1) For the purposes of the Act and this Part, a qualified person is a person employed by an accredited verification body. (2) Notwithstanding subsection (1), the minister may designate a person as a qualified person pursuant to clause 7(2)(p) of the Act. (3) In providing an opinion on an annual return, a qualified person shall comply with the requirements established in an applicable standard. (4) The minister may request that a qualified person produce evidence to the minister of the person’s qualification and eligibility to be a qualified person. (5) For the purposes of subsection 19(3) of the Act, an opinion from a qualified person within the meaning of The Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations, 2023 that is prepared for the purposes of those regulations satisfies the requirement to include an opinion with an annual return for the purposes of these regulations, if that opinion is with respect to: (a) the same facility for which an annual return is being prepared for the purposes of these regulations; and (b) the same year for which the annual return is being prepared for the purposes of these regulations. 29 Nov 2024 SR 79/2024 s9. Determining emissions by regulated emitter 11(1) In this section, “OBPS QM” means the document entitled Quantification Methods for the Output-Based Pricing System Regulations published by the Government of Canada in 2022, as amended from time to time. (2) A regulated emitter shall, in accordance with Part 38: Electricity Generation of section 4 of OBPS QM, determine the quantity of CO e emissions from the following 2 sources: (a) coal and natural gas burned at a facility; (b) other fossil fuels burned at the facility. 29 Nov 2024 SR 79/2024 s9. 8 MANAGEMENT AND REDUCTION OF GREENHOUSE M-2.01 REG 1 GASES (GENERAL AND ELECTRICITY PRODUCER) 12 Repealed. 29 Nov 2024 SR 79/2024 s10. 13 Repealed. 29 Nov 2024 SR 79/2024 s10. Baseline emissions based on fleet 14 A regulated emitter shall establish its baseline emission level for its fleet. 15 Dec 2017 c M-2.01 Reg 1 s14. Manner of establishing baseline emissions – based on fleet 15(1) A regulated emitter shall establish its baseline emission level based on the greenhouse gas emissions from its fleet for the 2010 year. (2) A regulated emitter shall, within 60 days after the coming into force of these regulations, apply to the minister to have its baseline emission level approved. 15 Dec 2017 c M-2.01 Reg 1 s15. Emission reduction obligations 16(1) In this section, “Table” means a Table in Part 4 of the Appendix. (2) A regulated emitter shall reduce its greenhouse gas emissions within a compliance period as set out in Column 2 of Table 1 so that the emissions from its fleet do not exceed the cumulative emissions cap set out in Column 3 of Table 1 for that compliance period. 29 Nov 2024 SR 79/2024 s11. Performance credits 16.1 If the greenhouse gas emissions within a compliance period from a regulated emitter’s fleet are below the cumulative emissions cap set out for that compliance period in Column 2 of Table 1, the regulated emitter shall be awarded one performance credit for each tonne of CO e that the greenhouse gas emissions 2 from the regulated emitter’s fleet are below the cumulative emissions cap for the compliance period. 29 Nov 2024 SR 79/2024 s11. 17 Repealed. 29 Nov 2024 SR 79/2024 s12. Allowed deductions 18(1) Subject to subsections (2) and (3), when completing its annual return for a year, a regulated emitter: (a) may deduct performance credits awarded pursuant to section 16.1 from the quantity of greenhouse gas emissions reported for its fleet; and (b) shall indicate in the annual return the number of performance credits it wishes to deduct from the quantity of greenhouse gas emissions reported for its fleet in the return. (2) If a regulated emitter has any remaining performance credits after completing its annual return, it may carry forward the remaining performance credits to be deducted in a subsequent year. (3) A regulated emitter shall not include in its annual return greenhouse gas emissions that are captured and sequestered in accordance with the laws of Saskatchewan. 29 Nov 2024 SR 79/2024 s13. 9 MANAGEMENT AND REDUCTION OF GREENHOUSE GASES (GENERAL AND ELECTRICITY PRODUCER) M-2.01 REG 1 IPP required to provide information when requested 19 If requested to do so by the minister, an IPP shall provide information respecting its emissions in the form and format and within the period specified by the minister in the request. 15 Dec 2017 c M-2.01 Reg 1 s19. Audits and inspections 19.1 For the purposes of section 67 of the Act, an audit or inspection on a regulated facility shall be undertaken in accordance with the Act and any requirements established in an applicable standard. 29 Nov 2024 SR 79/2024 s14. PART 4 Coming into force 15 Dec 2017 c M-2.01 Reg 1 s19. Coming into force 20(1) Subject to subsection (2), these regulations come into force on the day on which section 1 of The Management and Reduction of Greenhouse Gases Act comes into force. (2) If these regulations are filed with the Registrar of Regulations after the day on which section 1 of The Management and Reduction of Greenhouse Gases comes into force, these regulations come into force on the day on which they are filed with the Registrar of Regulations. 15 Dec 2017 c M-2.01 Reg 1 s20. Appendix PART 1 Hydrofluorocarbons [Subsection 5(1)] Greenhouse Gas Chemical Formula HFC-23 CHF 3 HFC-32 CHF 2 2 HFC-41 CHF 3 HFC-43-10mee CHF 5 2 10 HFC-125 CHF 2 5 HFC-134 CHF 2 2 4 10 MANAGEMENT AND REDUCTION OF GREENHOUSE M-2.01 REG 1 GASES (GENERAL AND ELECTRICITY PRODUCER) Greenhouse Gas Chemical Formula HFC-134a CHFCF 2 3 HFC-152a CHF 2 4 2 HFC-143 CHF 2 3 3 HFC-143a CHF 2 3 3 HFC-227ea CHF 3 7 HFC-236fa CHF 3 2 6 HFC-245ca CHF 3 3 5 ________________________ PART 2 Perfluorocarbons [Subsection 5(2)] Greenhouse Gas Chemical Formula Perfluoromethane CF 4 Perfluoroethane CF 2 6 Perfluoroproprane CF 3 8 Perfluorobutane CF 4 10 Perfluorocyclobutane c-CF 4 8 Perfluoropentane CF 5 12 Perfluorohexane CF 6 14 ________________________ PART 3 Provisions for which Administrative Penalty May be Imposed [Subsection 8(1)] Column 1 Column 2 Column 3 Item Description of Contravention Provision of Act or regulations 1 Failure to apply to the minister by prescribed date 17(3) of the Act to have baseline emission level approved by the minister 2 Failure to include an opinion from a qualified person 17(4) of the Act verifying the accuracy of the calculation of the baseline emission level 3 Failure to submit an annual return on or before the 19(2) of the Act prescribed date 4 Failure to submit an opinion from a qualified person 19(3) of the Act with the first annual return 5 Failure to submit an opinion from a qualified person 19(4), (5) and (6) of the Act when required by the minister 6 Failure to comply with an applicable standard 3.1(4) of the regulations 7 Failure to provide information when requested by 19 of the regulations the minister 11 MANAGEMENT AND REDUCTION OF GREENHOUSE GASES (GENERAL AND ELECTRICITY PRODUCER) M-2.01 REG 1 PART 4 Emission Reduction Obligations TABLE 1 [Subsection 16(2)] Column 1 Column 2 Column 3 Compliance Period Compliance Period - Years COe Cumulative Emissions Cap for All 2 Facilities in Saskatchewan 1 2018-2019 33 500 000 tonnes 2 2020-2024 77 000 000 tonnes 3 2025-2026 29 400 000 tonnes 4 2027-2029 35 100 000 tonnes 15 Dec 2017 c M-2.01 Reg 1; 29 Nov 2024 SR 79/2024 s15. 12 MANAGEMENT AND REDUCTION OF GREENHOUSE M-2.01 REG 1 GASES (GENERAL AND ELECTRICITY PRODUCER) REGINA, SASKATCHEWAN Printed by the authority of THE KING’S PRINTER Copyright©2024