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Contents

1.0 Introduction ...................................................................................................................................... 3

1.1 Before You Use this Guide ............................................................................................................ 3

1.2 Purpose of this Guide .................................................................................................................... 3

2.0 Required Baselines and Submission Overview ................................................................................. 4

3.0 Selecting Baseline Years .................................................................................................................... 6

3.1 Baseline Years for an Existing Facility ........................................................................................... 6

3.2 Baseline Years for a New Facility .................................................................................................. 7

4.0 Measuring Greenhouse Gas Emissions ............................................................................................. 8

4.1 Greenhouse Gas Quantification Methods .................................................................................... 9

4.2 Emissions from the Combustion, Decomposition or Fermentation of Biomass ........................... 9

4.3 Emissions from Cogeneration ....................................................................................................... 9

5.0 Direct Emissions .............................................................................................................................. 10

6.0 Baseline Emissions .......................................................................................................................... 11

7.0 Baseline Emission Level................................................................................................................... 12

8.0 Baseline Production Level ............................................................................................................... 12

9.0 Baseline Emission Intensity ............................................................................................................. 13

10.0 Making a Baseline Submission ........................................................................................................ 13

11.0 Additional Questions ....................................................................................................................... 16

Appendix 1: Numerical Example ............................................................................................................. 17

Appendix 2: Greenhouse Gases and Gas Species Subject to Mandatory Reporting1 ............................. 20

Appendix 3: Regulated Source Categories and Corresponding GHG Emissions ..................................... 21

Appendix 4: Baseline Submission Form Guidance .................................................................................. 22

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1.0 Introduction The Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations (the Regulations) and The Management and Reduction of Greenhouse Gases (Baselines, Returns and Verification) Standard (the Standard) came into effect January 1, 2019. The Regulations and the Standard establish emission intensity targets for large emitters, and are a fulfillment of the commitment made in Saskatchewan’s climate change strategy, Prairie Resilience, to reduce industrial greenhouse gas emissions in a manner that respects impacts to competitiveness and keeps Saskatchewan’s economy strong. The Regulations require all regulated emitters to establish a baseline emissions intensity for each regulated facility. This baseline emissions intensity will be used to determine the permitted emissions for each facility, allowing for required performance under the regulations to be assessed. 1.1 Before You Use this Guide This guide is intended for owners or operators of regulated facilities under the Regulations. Regulated facilities include:

• Existing facilities: any facility that has been in commercial production for at least three calendar years with annual total regulated emissions of 25,000 tonnes CO2e or more;

• New facilities: any facility that has been in commercial production for fewer than three calendar years with annual total regulated emissions of 25,000 tonnes CO2e or more; and

• Voluntary facilities, with annual total regulated emissions between 10,000 and 25,000 tonnes of CO2e. A voluntary facility may be an existing or a new facility.

Prior to establishing a baseline emissions intensity, you must have registered your facility with the Ministry of Environment. For more information on how to register your facility, please visit https://www.saskatchewan.ca/business/environmental-protection-and-sustainability/a-made-in-saskatchewan-climate-change-strategy/emitter-registration.This guide is not intended for aggregated regulated facilities who have registered with the Ministry of Environment on a fleet basis. 1.2 Purpose of this Guide The purpose of this guide is to provide regulated emitters with the necessary information to successfully establish a baseline emissions intensity and to complete a baseline submission. This document includes criteria and guidance on: Who is required to submit a baseline submission; What information must be included in the baseline submission; When to submit a baseline submission; and The regulated facility’s baseline emission intensity.

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2.0 Required Baselines and Submission Overview A baseline emissions intensity must be established for each product at a regulated facility. This baseline should be representative of operating conditions, and will be used to determine the prescribed emissions that the regulated facility is allowed to emit. Flexibility is provided for selection of the product(s) that accurately represent the operations at the regulated facility. However, keep in mind that the selected product(s) must account for all regulated emissions at the facility. A schematic diagram of the baseline submission process representing the requirements of the Regulations and Standard is presented in Figure 1.

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Figure 1: Baseline Submission Process

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3.0 Selecting Baseline Years The baseline emissions intensity is designed to reflect representative operating conditions at a regulated facility. Flexibility is provided in the selection of baseline years so that the most reflective years of typical operations be used. It is important to note that the selected baseline years must be consistently applied to each stage of the baseline emission intensity calculation, and the same years must apply to each product produced at the regulated facility. 3.1 Baseline Years for an Existing Facility

For existing facilities, two criteria must be satisfied during selection of baseline years:

1) The selected baseline years must be three consecutive calendar years; and, 2) The selected baseline years must be selected from the five years preceding the first compliance

year for the facility.

For example, suppose an existing regulated facility began commercial production in 2005, and that the first compliance year for the facility is 2019. The regulated emitter may select any three consecutive years from the 2014 through 2018 period as baseline years. This mean, the emitter could select baseline years of:

1) 2014, 2015, and 2016; 2) 2015, 2016, and 2017; or 3) 2016, 2017, and 2018.

This is described further in Table 1 below. Table 1: Example Baseline Submission Process for an Existing Facility

Year 2014 2015 2016 2017 2018 2019

(Compliance Year 1)

Emissions and

Production Information

Total regulated emissions

exceed 25,000 tonnes CO2e threshold.

Total regulated emissions

exceed 25,000 tonnes CO2e threshold.

Total regulated emissions

exceed 25,000 tonnes CO2e threshold.

Total regulated emissions

exceed 25,000 tonnes CO2e threshold.

Total regulated emissions

exceed 25,000 tonnes CO2e threshold.

Total regulated emissions

exceed 25,000 tonnes CO2e threshold.

Provincial Regulatory

Actions N/A N/A N/A N/A N/A

Facility must be registered by

June 1. Submit verified baseline

submission by September 1, using 2014-2016, 2015-

2017, or 2016-2018 as baseline

years.

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Regulated emitters should select the baseline years that best reflect representative operating conditions at the facility. Regulated emitters responsible for regulated facilities that were in standby for any part of this five-year period are encouraged to contact the Ministry of Environment to discuss establishing alternative baseline years. 3.2 Baseline Years for a New Facility Under the Regulation, new facilities are granted exemption until the third year after the year the facility commences production and has 25,000 tonnes of CO2e. This allows enough time for sufficient data to be collected that can be used to establish a baseline emissions intensity. Since new facilities do not have historical data to establish baselines, the same rules for existing facilities do not apply. Baselines for new facilities are based on the first compliance year for that facility, and follow these rules:

1) For the first compliance year, the baseline years are the two years immediately preceding the first compliance year; and

2) For the second and subsequent compliance year, the baseline years are the three years immediately preceding the second compliance year. Note that this will include the first compliance year.

For example, suppose a facility begins commercial production in 2017 and annually emits 25,000 tonnes of CO2e or more in total regulated emissions. The facility must be registered by June 1, 2019. The regulated emitter must submit a verified baseline submission by September 1, 2020, the first compliance year for the new facility. This baseline submission would use 2018 and 2019 as baseline years. Subsequently, the regulated emitter must submit a second verified baseline submission by September 1, 2021 using 2018-2020 as baseline years. Table 2 illustrates this example. Table 2: Example Baseline Submission Process for a New Facility

Year 2017 2018

2019

2020 (Compliance

Year 1)

2021 (Compliance

Year 2)

Emissions and

Production Information

Facility begins commercial

production. Total regulated emissions exceed 25,000 tonne

CO2e threshold

Total regulated emissions exceed

25,000 tonne CO2e threshold.

Total regulated emissions exceed

25,000 tonne CO2e threshold.

Total regulated emissions exceed

25,000 tonne CO2e threshold.

Total regulated emissions exceed

25,000 tonne CO2e threshold.

Provincial Regulatory

Actions N/A N/A Facility is registered

by June 1.

Submit verified baseline submission

by September 1, using 2018 and 2019

as baseline years.

Submit verified baseline submission

by September 1, using 2018-2020 as

baseline years.

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4.0 Measuring Greenhouse Gas Emissions The following sections will help you to understand what information is required to make a baseline submission, and how some aspects of your baseline information will be calculated. When making a baseline submission, only the emissions for each source category, production information, and imported and exported CO2 will need to be manually entered. The remaining information will be automatically calculated. Included under the regulations are the following greenhouse gases (called greenhouse gas “species”):

• carbon dioxide (CO2); • methane (CH4); • nitrous oxide (N2O); • hydrofluorocarbons (HFCs); • perfluorocarbons (PFCs); • sulphur hexafluoride (SF6); and • any other gas as prescribed by the minister.

Provided in Appendix 2 is a detailed list of these regulated greenhouse gases, their chemical formula, and their 100-year global warming potential. To help make measuring these greenhouse gas emissions easier, the different gases can be allocated to several different categories, depending on the source of the emissions. How the different greenhouse gases relate to these source categories is provided in Appendix 3. When determining your baseline emissions, you must include the total quantity of each prescribed GHG species subject to each regulated source category in units of tonnes of the prescribed gas species. Once completed, the total emissions associated with a regulated source category will then be calculated using the following formula:

𝑬𝑬𝑬𝑬𝒊𝒊˗𝒂𝒂˗𝒚𝒚 = �𝑬𝑬𝒊𝒊˗𝒂𝒂˗𝒚𝒚˗𝒑𝒑 × 𝑮𝑮𝑮𝑮𝑷𝑷𝒑𝒑𝒑𝒑

where:

𝑬𝑬𝑬𝑬𝒊𝒊˗𝒂𝒂˗𝒚𝒚 is the total emissions expressed in tonnes of CO2e for regulated source category 𝑦𝑦 for product 𝑎𝑎 in baseline year 𝑖𝑖;

𝑬𝑬𝒊𝒊˗𝒂𝒂˗𝒚𝒚˗𝒑𝒑 is the total emissions of a particular prescribed GHG species 𝑝𝑝 from regulated source

category 𝑦𝑦 for product 𝑎𝑎 in the baseline year 𝑖𝑖, expressed in tonnes of the prescribed GHG species 𝑝𝑝;

𝑮𝑮𝑮𝑮𝑷𝑷𝒑𝒑 is the global warming potential for the particular prescribed GHG species 𝑝𝑝 as listed in

Appendix 2;

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𝒂𝒂 is the product produced at the regulated facility; 𝒊𝒊 is the baseline year; 𝒑𝒑 is the prescribed GHG; and 𝒚𝒚 is the regulated source category.

Appendix 1 provides a numerical example on determining emissions associated with each regulated source category. 4.1 Greenhouse Gas Quantification Methods When quantifying greenhouse gas emissions, the most accurate quantification methodology for each emission source should be used. It is important that the emission quantification methodology used when determining the baseline emissions also be used when calculating emissions for forthcoming emissions returns. This includes:

• emission factors; • energy equivalence factors; and • unit conversions.

If changes are made to measurement or quantification methodology, or if any changes are made at the facility that require updates to methodology, you must contact the Ministry of Environment. 4.2 Emissions from the Combustion, Decomposition or Fermentation of Biomass CO2 emissions resulting from the combustion, decomposition or fermentation of biomass do not need to be included as facility emissions. These processes can be found in ethanol and canola manufacturing. Examples of biomass include: wood and wood processing wastes; agricultural crops and waste materials; the portion of biologically derived organic matter in municipal and industrial wastes; landfill gas; bio-alcohols; black liquor; and sludge digestion gas. The total quantity of CH4 and N2O emissions resulting from the combustion, decomposition, or fermentation of biomass at a regulated facility should be included in the most appropriate emission source category. 4.3 Emissions from Cogeneration Cogeneration refers to:

(i) the integrated operation of one or more combustion turbines and steam generators that recover any heat from combustion turbine exhaust gases to supply steam for useful purposes other than electricity generation; or

(ii) The production of electricity using waste heat or recovered from a process that occurs on-site at a regulated facility for the purpose of producing one or more products at a regulated facility.

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Cogeneration offers improved efficiency and lower emissions compared to standalone heat and power generation. All emissions resulting from cogeneration are included within stationary fuel combustion emissions. In order to recognize the environmental benefit of cogeneration, regulated facilities will be granted 100 per cent allocation from the portion of cogeneration emissions used to generate power in the determination of their compliance obligation.

5.0 Direct Emissions Direct emissions are the sum of all emissions associated with the production of a product. Table 4 shows the sources categories that are included in direct emissions. Table 4: Regulated Source Categories Included in Direct Emissions

Source Category Included in direct emissions for

regulated sectors (excluding upstream oil and gas)

Included in direct emissions for upstream oil and gas facilities

Stationary fuel combustion Industrial process X Industrial product use X Venting X Flaring X Leakage X On-site transportation X Waste X Wastewater X

Facilities in the upstream oil and gas sector represent a special case, to avoid double regulation of these facilities, the upstream oil and gas sector only includes stationary fuel combustion emissions in the calculation of direct emissions. Direct emissions for each product produced at a regulated facility is determined by the following formula:

𝑫𝑫𝑬𝑬𝒊𝒊˗𝒂𝒂 = �𝑬𝑬𝑬𝑬𝒊𝒊˗𝒂𝒂˗𝒚𝒚𝒚𝒚

where:

𝑫𝑫𝑬𝑬𝒊𝒊˗𝒂𝒂 is the direct emissions released by the regulated facility for the purpose of producing product 𝑎𝑎 in baseline year 𝑖𝑖, expressed in tonnes of CO2e;

𝑬𝑬𝑬𝑬𝒊𝒊˗𝒂𝒂˗𝒚𝒚 is the total emissions expressed in tonnes of CO2e for regulated source category 𝑦𝑦 for

product 𝑎𝑎 in baseline year 𝑖𝑖; 𝒂𝒂 is the product produced at the regulated facility;

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𝒊𝒊 is the baseline year; and 𝒚𝒚 is the regulated source category as detailed in Table 4.

Appendix 1 provides a numerical example of how direct emissions are calculated.

6.0 Baseline Emissions Baseline emissions are all regulated emissions associated with the production of a product at a regulated facility in a single baseline year. Imported and exported CO2 are included to avoid double counting of emissions between regulated facilities. CO2 received on-site which has previously been reported as exported by another regulated facility (“imported CO2”) is subtracted from the facility’s baseline emissions. All CO2 sent off-site is included in a facility’s baseline emissions (“exported CO2”). This includes CO2 that has not been emitted to the atmosphere and has been sent from the facility to an off-site location, including CO2 sent off-site as waste, for storage or sold as a product. The baseline emissions are determined by the following formula:

𝑩𝑩𝑬𝑬𝒊𝒊−𝒂𝒂 = 𝑫𝑫𝑬𝑬𝒊𝒊−𝒂𝒂 − 𝑰𝑰𝒊𝒊−𝒂𝒂 + 𝑬𝑬𝒊𝒊−𝒂𝒂 where:

𝑩𝑩𝑬𝑬𝒊𝒊˗𝒂𝒂 are the baseline emissions for the purposes of producing product 𝑎𝑎 in baseline year 𝑖𝑖, expressed in tonnes of CO2e;

𝑫𝑫𝑬𝑬𝒊𝒊˗𝒂𝒂 is the direct emissions released by the regulated facility for the purpose of producing

product 𝑎𝑎 in baseline year 𝑖𝑖, expressed in tonnes of CO2e; 𝑰𝑰𝒊𝒊˗𝒂𝒂 is the total amount of CO2 imported to the regulated facility from another regulated

facility subject to the Regulations and Standard for the purpose of producing product 𝑎𝑎 in baseline year 𝑖𝑖, expressed in tonnes of CO2e;

𝑬𝑬𝒊𝒊˗𝒂𝒂 is the total amount of CO2 exported from the regulated facility that was created during

the production of product 𝑎𝑎 in the baseline year 𝑖𝑖, expressed in tonnes of CO2e; 𝒂𝒂 is the product produced at the regulated facility; and 𝒊𝒊 is the baseline year.

Appendix 1 provides a numerical example on how baseline emissions are calculated.

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7.0 Baseline Emission Level The baseline emission level represents the averaging of baseline emissions over the chosen baseline years. The baseline emission level for a product at a regulated facility is determined by the following formula:

𝑩𝑩𝑬𝑬𝑩𝑩𝒂𝒂 = 𝟏𝟏𝒏𝒏�𝑩𝑩𝑬𝑬𝒊𝒊−𝒂𝒂

𝒏𝒏

𝒊𝒊=𝟏𝟏

where:

𝑩𝑩𝑬𝑬𝑩𝑩𝒂𝒂 are the baseline emissions level for a regulated facility for the purposes of producing product 𝑎𝑎 during the baseline years, expressed in tonnes of CO2e;

𝑩𝑩𝑬𝑬𝒊𝒊˗𝒂𝒂 is the baseline emissions associated with producing product 𝑎𝑎 in baseline year 𝑖𝑖,

expressed in tonnes of CO2e; 𝒂𝒂 is the product produced at the regulated facility; 𝒊𝒊 is the baseline year; and

𝒏𝒏 is the number of baseline years.

Appendix 1 provides a numerical example on how the baseline emissions level is calculated.

8.0 Baseline Production Level The baseline production level represents the averaging of the amount of product produced over the chosen baseline years. Flexibility is provided in the selection of the products that are made at a facility. However, the products selected must account for all emissions released at the facility. When measuring production information, it is important to choose the most appropriate production quantification methodologies that transparently reflect the commercial production at the facility. The baseline production level for a product at a regulated facility is determined by the following formula:

𝑩𝑩𝑷𝑷𝑩𝑩𝒂𝒂 = 𝟏𝟏𝒏𝒏�𝑷𝑷𝒊𝒊−𝒂𝒂

𝒏𝒏

𝒊𝒊=𝟏𝟏

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where:

𝑩𝑩𝑷𝑷𝑩𝑩𝒂𝒂 is the baseline production level for product 𝑎𝑎 in the baseline years; 𝑷𝑷𝒊𝒊˗𝒂𝒂 is the amount of product 𝑎𝑎 produced at the regulated facility in baseline year 𝑖𝑖; 𝒂𝒂 is the product produced at the regulated facility; and 𝒊𝒊 is the baseline year; and 𝒏𝒏 is the number of baseline years.

Appendix 1 provides a numerical example on how the baseline production level is calculated.

9.0 Baseline Emission Intensity The baseline emission intensity is the result obtained by dividing the baseline emission level for a product by the baseline production level for that product. It is this baseline emissions intensity that will be used to determine the prescribed emissions for a facility in a compliance year. The baseline emission intensity for a product produced at a regulated facility is determined by the following formula:

𝑩𝑩𝑬𝑬𝑰𝑰𝒂𝒂 =𝑩𝑩𝑬𝑬𝑩𝑩𝒂𝒂𝑩𝑩𝑷𝑷𝑩𝑩𝒂𝒂

where:

𝑩𝑩𝑬𝑬𝑰𝑰𝒂𝒂 is the baseline emission intensity for product 𝑎𝑎; 𝑩𝑩𝑬𝑬𝑩𝑩𝒂𝒂 is the baseline emissions level for product 𝑎𝑎 as calculated in section 25; 𝑩𝑩𝑷𝑷𝑩𝑩𝒂𝒂 is the baseline production level for product 𝑎𝑎 as calculated in section 26; and 𝒂𝒂 is the product produced at the regulated facility.

Appendix 1 provides a numerical example on how the baseline emissions intensity is calculated.

10.0 Making a Baseline Submission Baseline submission are required for each regulated facility. When completing the submission, all numerical entries in the baseline submission form must be entered to four decimal digits. This is to prevent rounding errors in the baseline emission intensity calculation.

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The following information must be included with every submission:

• A completed copy of The Management and Reduction of Greenhouse Gases Baseline Submission Form, signed by the authorized signing officer;

• A simplified process flow diagram(s), in PDF format, which provides an overview of all processes that produce quantified sources of greenhouse gas emissions at the facility;

• A verification report and signed statement of verification from a third party verifier; and • A simplified process flow diagram(s), in PDF format, of the layout of cogeneration facilities (if

applicable). The Baseline Submission Form must be signed by the authorized signing officer. This may be done electronically or alternatively, the authorized signing officer may print and sign the declaration sheet, and include a scanned copy in PDF format in the baseline submission. All submissions must be made through the Ministry of Environment’s online business portal. All information provided in the baseline submission is deemed to be public information. Regulated emitters may submit a written request for confidentiality to keep any information provided in the baseline submission confidential. This written request (e.g. Word) should be submitted through the Business Services Portal as part of the baseline submission. 10.1 Included Information in Baseline Submissions

By completing the Baseline Submission Form, the following information will be provided to the Ministry of Environment:

(a) The chosen baseline years from which data will be used; (b) All emissions, reported by regulated source category, included in the baseline emissions for each

product produced at the regulated facility for each baseline year; (c) All emissions associated with imported and exported CO2 for each product produced at the

regulated facility for each baseline year; (d) Total units of production for each proposed product (in accordance with section 8.0 of this

document) produced at the regulated facility for each baseline year; (e) The references for the quantification methods used for calculating each source of emissions for

the regulated facility; and (f) The references for the production quantification methodologies used.

Once the above information is entered in the appropriate fields, the direct emissions for each baseline year, baseline emissions for each baseline year, baseline emission level, baseline production level, and baseline emission intensity will be automatically calculated as described above for each product produced at the regulated facility. In addition, the following information must be entered in the baseline submission form if the regulated facility has a cogeneration unit on-site:

(a) The type of fuel used by the cogeneration unit; (b) The total amount of fuel used by the cogeneration unit in each baseline year;

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(c) Mass/volume of fuel used to produce heat in each baseline year; (d) Mass/volume of fuel used to produce electricity in each baseline year; (e) Total emissions from cogeneration in each baseline year; (f) Heat production emissions from cogeneration in each baseline year; (g) Electricity production emissions from cogeneration in each baseline year; (h) Total net heat produced by cogeneration in each baseline year; (i) Total electricity production from cogeneration in each baseline year; and (j) The operating time of the cogeneration unit in each baseline year.

If there are multiple products produced at the regulated facility, it must be indicated on the Baseline Submission Form how the electricity production emissions from cogeneration were allocated between products. Appendix 4 provides additional guidance on using the Baseline Submission Form. 10.2 Verification Prior to submission, all baseline submissions must be verified by a verification team. The verification report and a signed statement of verification must be included as part of the baseline submission. In order to qualify as a verifier, each member of the selected verification team must meet the requirements outlined in ISO 14065 and must be employed by an accredited verification body. The verification team must verify that the provided emissions and production data is completed to a reasonable level of assurance. In addition, the verification team must also confirm that the baseline submission is compliant with the requirements of the Regulation and the Standard, with ISO 14064-3, and with any other relevant documents or requirements developed by the Ministry. In order for verifiers to produce an accurate verification report, access must be provided as needed to the regulated facility, along with any personnel, records and other requested information or resources. The verification report should be prepared in accordance with the Standard and ISO 14064-3 and must be reviewed by an independent reviewer. Verification teams cannot perform a verification of a regulated facility if there is a known current or potential threat that may compromise the impartiality of any member of the verification team or the accredited verification body for which the verification team is employed. 10.3 Schedule for Submission

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The following deadlines apply for the submission of baseline information:

Facility Date of Submission

Existing facility September 1 of the first compliance year

New facility

First Baseline Submission: September 1 of the third year after the year the facility enters commercial production (first compliance year) Second Baseline Submission: September 1 of the fourth year after the year the facility enters commercial production (second compliance year)

10.4 Following Submission Upon receipt of the verified baseline submission, the application will be reviewed for completeness. The Ministry of Environment will respond, indicating:

• The information provided in the baseline submissions for the regulated facility is sufficient and the baseline submission has been approved; or

• The baseline submission for the regulated facility is incomplete or has errors. Details of the problem(s) or issue(s), along with any actions required, will be provided.

11.0 Additional Questions If you have any further questions on how to calculate baseline information or how to submit a baseline application, please contact the Ministry of Environment Climate Change Branch at prairie.resilience@gov.sk.ca.

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Appendix 1: Numerical Example The following example is intended to provide regulated emitters with the guidance necessary to determine the baseline emission intensity of a regulated facility. This example follows a bottom-up approach, beginning with the source category calculation and ending with the baseline emission intensity calculation. This example makes the following assumptions:

(i) The facility is an existing facility; (ii) The regulated emitter is using the baseline years 2014, 2015 and 2016 to determine the baseline

emission intensity of the regulated facility; (iii) The regulated facility produces one product, which will be referred to as “widgets”; (iv) The regulated facility has industrial process emissions in the form of sulfur hexafluoride (SF6);

and (v) The facility imports CO2, but does not export CO2.

1. Regulated Source Category Calculations

The GHG emissions associated with production of widgets must first be aggregated into the appropriate regulated source categories. For brevity, a step-by-step approach will only be provided for the 2014 stationary fuel combustion emissions calculation. In this example, the regulated facility has five stationary fuel combustion sources: a boiler; cogeneration unit; combustion turbine; engine; and a process heater. The regulated emitter employed the most appropriate emission quantification methodologies and determined that 55,000 tonnes CO2, 8 tonnes CH4, and 100 tonnes N2O were generated by these stationary fuel combustion sources in 2014. The total emissions of these prescribed GHG species where then multiplied by their respective global warming potential and the results were summed to determine the total CO2e emissions from stationary fuel combustion in 2014.

𝐸𝐸𝑆𝑆2014−𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤−𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = �𝐸𝐸2014−𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤−𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝑤𝑤𝑤𝑤𝐶𝐶𝐶𝐶−𝑝𝑝 × 𝐺𝐺𝐺𝐺𝑃𝑃𝑝𝑝𝑝𝑝

= �55,000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2 ×

1 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2

� + �8 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝐻𝐻4 ×25 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝐻𝐻4

�

+ �100 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝑁𝑁2𝑂𝑂 ×298 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝑁𝑁2𝑂𝑂

�

= 55,000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 + 200 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 + 29,800 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 = 85,000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡

Using the same emission quantification methodologies for the five stationary fuel combustion sources and the same approach as previously outlined, the total emissions from the stationary fuel combustion source category for the remaining baseline years was calculated. The same approach was applied for the remaining source categories. The results are summarized below in Table A1.

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Table A1: Greenhouse Gas Emissions from each Source Category in each Baseline Year (Tonnes CO2e)

Source Category 2014 2015 2016 Stationary Fuel Combustion 85,000 96,000 90,000 Industrial Process Emissions 32,500 35,000 31,000 Venting 2,500 1,300 1,500 Flaring 2,300 2,500 2,200 On-site Transportation 200 200 300

2. Direct Emissions The direct emissions associated with the production of widgets in the 2014 baseline year can be determined by summing the emissions from each regulated source category from that year. For the 2014 baseline year, the total direct emissions associated with production of widgets is:

𝐷𝐷𝐸𝐸2014−𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 = �𝐸𝐸𝑆𝑆2014−𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤−𝑦𝑦𝑦𝑦

= 85,000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 + 32,5000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 + 2,500 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 + 2,300 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡+ 200 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡

= 122,500 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 Using the same approach, the direct emissions for each of the remaining baseline years was calculated. The results are summarized below in Table A2. Table A2: Direct Emissions for Production of Widgets in each Baseline Year (Tonnes CO2e)

Year 2014 2015 2016 Direct Emissions 122,500 135,000 125,000

3. Baseline Emissions The baseline emissions associated with the production of widgets for a single baseline year can be determined by taking the sum of direct emissions and exported CO2 and subtracting imported CO2. In this example, the emissions profile found in Table A3 will be used. Table A3: Emissions Profile in each Baseline Year (Tonnes CO2e)

Year 2014 2015 2016 Direct Emissions (DE2016-widgets) 122,500 135,000 125,000

Imported Emissions (I2016-widgets) 4,500 2,000 4,000 Exported Emissions (E2016-widgets) 0 0 0

For the 2014 baseline year, the baseline emissions associated with the production of widgets is:

𝐵𝐵𝐸𝐸2014−𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 = 𝐷𝐷𝐸𝐸2014−𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 − 𝐼𝐼2014−𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 + 𝐸𝐸2014−𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 = 122,500 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 − 4,500 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 + 0 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 = 118,000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡

Using the same approach, the baseline emissions for the remaining baseline years was calculated. The results are summarized below in Table A4.

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Table A4: Baseline Emissions in each Baseline Year (Tonnes CO2e)

Year 2014 2015 2016 Baseline Emissions 118,000 133,000 121,000

4. Baseline Emissions Level The baseline emission level is obtained by averaging the baseline emissions associated with the production of a single product over the baseline years. The baseline emissions level associated with the production of widgets is:

𝐵𝐵𝐸𝐸𝐸𝐸𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 = 13

�𝐵𝐵𝐸𝐸𝑤𝑤−𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤

= 13 × (118,000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 + 133,000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 + 121,000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡)

= 124,000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡 5. Baseline Production Level The baseline production level represents the amount of production of a single product averaged over the baseline years. In this example, the regulated emitter employed the most appropriate production quantification methodologies for widgets. A summary of the production profile can be found in Table A5. Table A5: Production Profile in each Baseline Year (widgets)

Year 2014 2015 2016 Widgets Produced 22,000 24,000 29,000

Using the production information provided in Table A5, the baseline production level for the regulated facility is:

𝐵𝐵𝑃𝑃𝐸𝐸𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 = 13

�𝑃𝑃𝑤𝑤−𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤

= 13 × (22,000 𝑤𝑤𝑖𝑖𝑤𝑤𝑤𝑤𝑡𝑡𝑡𝑡𝑡𝑡 + 24,000 𝑤𝑤𝑖𝑖𝑤𝑤𝑤𝑤𝑡𝑡𝑡𝑡𝑡𝑡 + 29,000 𝑤𝑤𝑖𝑖𝑤𝑤𝑤𝑤𝑡𝑡𝑡𝑡𝑡𝑡)

= 25,000 𝑤𝑤𝑖𝑖𝑤𝑤𝑤𝑤𝑡𝑡𝑡𝑡𝑡𝑡 6. Baseline Emission Intensity The baseline emission intensity associated with the production of widgets is obtained by dividing the baseline emissions level by the baseline production level as shown below.

𝐵𝐵𝐸𝐸𝐼𝐼𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 = 𝐵𝐵𝐸𝐸𝐸𝐸𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝐵𝐵𝑃𝑃𝐸𝐸𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤

= 124,000 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡

25,000 𝑤𝑤𝑖𝑖𝑤𝑤𝑤𝑤𝑡𝑡𝑡𝑡𝑡𝑡

= 4.96 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝐶𝐶𝑂𝑂2𝑡𝑡/𝑤𝑤𝑖𝑖𝑤𝑤𝑤𝑤𝑡𝑡𝑡𝑡

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Appendix 2: Greenhouse Gases and Gas Species Subject to Mandatory Reporting1

Greenhouse Gas Chemical Formula 100-Year Global Warming Potential

Carbon Dioxide CO2 1 Methane CH4 25 Nitrous Oxide N2O 298 Sulphur Hexafluoride SF6 22,800 Perfluorocarbons (PFCs)

Perfluoromethane CF4 7,390 Perfluoroethane C2F6 12,200 Perfluropropane C3F8 8,830 Perfluorobutane C4F10 8,860 Perfluorocyclobutane c-C4F8 10,300 Perfluoropentane C5F12 9,160 Perfluorohexane C6F14 9,300

Hydrofluorocarbons (HFCs) HFC-23 CHF3 14,800 HFC-32 CH2F2 675 HFC-41 CH3F 92 HFC-43-10mee CF3CHFCHFCF2CF3 1,640 HFC-125 CHF2CF3 3,500 HFC-134 CHF2CHF2 1,100 HFC-134a CH2FCF3 1,430 HFC-143 CH2FCHF2 353 HFC-143a CH3CF3 4,470 HFC-152a CH3CHF2 124 HFC-227ea CF3CHFCF3 3,220 HFC-236fa CF3CH2CF3 9,810 HFC-245ca CH2FCF2CHF2 693

1 Global warming potentials taken from IPCC’s Fourth Assessment report (IPCC 2011242) See: http://www.ipcc.ch/publications_and_data/ar4/wg1/en/errataserrata-errata.ht12ml

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Appendix 3: Regulated Source Categories and Corresponding GHG Emissions

Regulated Source Categories Greenhouse Gas Stationary

Fuel Combustion

Emissions

Industrial Process

Emissions

Industrial Product

Use Emissions

Venting Emissions

Flaring Emissions

Leakage Emissions

On-site Transportation

Emissions

Waste Emissions

Waste-water

emissions

Carbon dioxide1

* * N/A * * * * * *

Methane

* * N/A * * * * * *

Nitrous oxide

* * N/A * * * * * *

Sulphur hexafluoride N/A * * N/A N/A N/A N/A N/A N/A

Hydrofluorocarbons (HFC) N/A By

species By

species N/A N/A N/A N/A N/A N/A

Perfluorocarbons (PFC) N/A By

species By

species N/A N/A N/A N/A N/A N/A

1 excluding CO2 emissions from biomass combustion, decomposition and fermentation

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Appendix 4: Baseline Submission Form Guidance General Process Overview

1. Download the baseline submission form from the Prairie Resilience website. Open the baseline submission form with a device capable of running Active X controls. Once the document is opened, click “Enable Editing” at the top of the screen and then click “Enable Content.”

2. Sign in to the Ministry of Environment Business Services Portal (the Business Services Portal) 3. Complete baseline submission form, and submit it along with any attachments (i.e. process flow

diagrams, verification report) through the Business Services Portal. 4. Ministry of Environment staff will review the baseline submission and verify the information

provided. 5. Regulated emitters shall receive written notice indicating whether or not the baseline

submission has been approved. READ ME Tab Please read carefully through this tab before completing the baseline submission form. Should you wish to submit a request for confidentiality to keep any information provided in your application confidential, please attach a written request (e.g. Word) in the Business Services Portal as part of your submission. General Information Tab Registration Number: Enter the registration number that was issued following the registration review for the regulated facility. Sector the facility operates in: Select the sector your facility operates in from the drop-down list provided. Product Information: Enter the number of products produced at the facility using the spinner buttons. A corresponding amount of product information and product calculation tabs will appear. Baseline Years: Regulated emitters submitting a baseline submission for an existing facility are provided flexibility in selecting baseline years. The baseline years must be three consecutive calendar years and must be chosen from the five calendar years preceding the first compliance year for the regulated facility. Regulated emitters submitting the first baseline submission for a new facility must use the previous two calendar years as baseline years. There will not be a third baseline year for these facilities. Regulated emitters must click the “N/A” checkbox beside the “Third Baseline Year” field. Please note that the form may take several minutes to load if the checkbox is clicked. Regulated emitters submitting a second baseline submission for a new facility must use the three previous calendar years as baseline years. Using the drop-down list provided, select the first baseline year for the regulated facility. The second and third baseline year (if available) will be determined automatically.

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On-site cogeneration unit: Using the radio buttons please select whether or not there is a cogeneration unit on-site at the regulated facility. Emission and Production Information Tabs General Requirement: For each product produced at a regulated facility, enter the product name, references to the production quantification methodologies, and references to the emission quantification methodologies. Select a Baseline Year Using the radio buttons, select a baseline year. This will reveal the additional fields for the corresponding baseline year. Please note, for regulated emitters submitting the first baseline submission for a new facility, all fields in the third baseline year will read “N/A” as the facility will only have two baseline years of available data. Production: Once a baseline year is selected, enter the quantity of the product produced and the appropriate units. This must be completed for each baseline year. Stationary Fuel Combustion Emissions: Once a baseline year is selected, enter the amount of carbon dioxide, methane and nitrous oxide belonging to the stationary fuel combustion emission source category. If there are no emissions from a particular GHG species, please enter zero (0). Once the amount of emissions from each GHG species has been entered, the total tonnes of CO2e from the stationary fuel combustion emission source category will be automatically calculated. This must be completed for each baseline year. Industrial Process Emissions: Once a baseline year is selected, enter the amount of carbon dioxide, methane, nitrous oxide, sulphur hexafluoride, PFCs and HFCs belonging to the industrial process emission source category. If there are no emissions from a particular GHG species, please enter zero (0). Once the amount of emissions from each GHG species has been entered, the total tonnes of CO2e from the industrial process emission source category will be automatically calculated. This must be completed for each baseline year. Please note, this is not a requirement for upstream oil and gas facilities. Industrial Product Use Emissions: Once a baseline year is selected, enter the amount of carbon dioxide, methane, nitrous oxide, sulphur hexafluoride, PFCs and HFCs belonging to the industrial product use emission source category. If there are no emissions from a particular GHG species, please enter zero (0). Once the amount of emissions from each GHG species has been entered, the total tonnes of CO2e from the industrial product use emission source category will be automatically calculated. This must be completed for each baseline year. Please note, this is not a requirement for upstream oil and gas facilities. Venting Emissions: Once a baseline year is selected, enter the amount of carbon dioxide, methane and nitrous oxide belonging to the venting emission source category. If there are no emissions from a particular GHG

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species, please enter zero (0). Once the amount of emissions from each GHG species has been entered, the total tonnes of CO2e from the venting emission source category will be automatically calculated. This must be completed for each baseline year. Please note, this is not a requirement for upstream oil and gas facilities. Flaring Emissions: Once a baseline year is selected, enter the amount of carbon dioxide, methane and nitrous oxide belonging to the flaring emission source category. If there are no emissions from a particular GHG species, please enter zero (0). Once the amount of emissions from each GHG species has been entered, the total tonnes of CO2e from the flaring emission source category will be automatically calculated. This must be completed for each baseline year. Please note, this is not a requirement for upstream oil and gas facilities. Leakage Emissions: Once a baseline year is selected, enter the amount of carbon dioxide, methane and nitrous oxide belonging to the leakage emission source category. If there are no emissions from a particular GHG species, please enter zero (0). Once the amount of emissions from each GHG species has been entered, the total tonnes of CO2e from the leakage emission source category will be automatically calculated. This must be completed for each baseline year. Please note, this is not a requirement for upstream oil and gas facilities. On-site Transportation Emissions: Once a baseline year is selected, enter the amount of carbon dioxide, methane and nitrous oxide belonging to the on-site transportation emission source category. If there are no emissions from a particular GHG species, please enter zero (0). Once the amount of emissions from each GHG species has been entered, the total tonnes of CO2e from the on-site transportation emission source category will be automatically calculated. This must be completed for each baseline year. Please note, this is not a requirement for upstream oil and gas facilities. Waste Emissions: Once a baseline year is selected, enter the amount of carbon dioxide, methane and nitrous oxide belonging to the waste emission source category. If there are no emissions from a particular GHG species, please enter zero (0). Once the amount of emissions from each GHG species has been entered, the total tonnes of CO2e from the waste emission source category will be automatically calculated. This must be completed for each baseline year. Please note, this is not a requirement for upstream oil and gas facilities. Wastewater Emissions: Once a baseline year is selected, enter the amount of carbon dioxide, methane and nitrous oxide belonging to the wastewater emission source category. If there are no emissions from a particular GHG species, please enter zero (0). Once the amount of emissions from each GHG species has been entered, the total tonnes of CO2e from the wastewater emission source category will be automatically calculated. This must be completed for each baseline year.

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Please note, this is not a requirement for upstream oil and gas facilities. Import/Export CO2: Once a baseline year is selected, enter the amount of CO2 that is imported and exported to/from the regulated facility. This must be completed for each baseline year. Calculation Tabs Once all emissions and production information is entered, the direct emissions for each baseline year, baseline emissions for each baseline year, baseline emissions level, baseline production level, and baseline emission intensity will be calculated in the manner described in this document. Cogeneration Tab Please note that this tab will only appear if the On-site Cogeneration Unit found on the General Information tab was selected. Type of fuel used by the cogeneration unit: Enter the type of fuel used by the cogeneration unit (ex. diesel, natural gas, etc.). Select a Baseline Year Using the radio buttons, select a baseline year. This will reveal the additional fields for the corresponding baseline year. Please note, for regulated emitters submitting the first baseline submission for a new facility, all fields in the third baseline year will read “N/A” as the facility will only have two baseline years of available data. Total fuel used by the cogeneration unit: Once a baseline year is selected, enter the amount of fuel used by the cogeneration unit. Please also specify the appropriate units. This must be completed for each baseline year. Total emissions from the cogeneration unit: Once a baseline year is selected, enter the total emissions (in tonnes CO2e) generated by the cogeneration unit. This must be completed for each baseline year. Heat production emissions from the cogeneration unit: Once a baseline year is selected, enter the amount of emissions (in tonnes CO2e) from the cogeneration unit specifically used to generate heat. This must be completed for each baseline year. Electricity production emissions from the cogeneration unit: Once a baseline year is selected, enter the amount of emissions (in tonnes CO2e) from the cogeneration unit specifically used to generate electricity. This must be completed for each baseline year. Total net heat produced by the cogeneration unit: Once a baseline year is selected, enter the total net heat that was produced by the cogeneration unit (in units of GJ). This must be completed for each baseline year. Total electricity production from the cogeneration unit: Once a baseline year is selected, enter the total amount of electricity generated by the cogeneration unit (in units of MWh). This must be completed for each baseline year.

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Operating time of the cogeneration unit: Once a baseline year is selected, enter the operating time of the cogeneration unit. This must be completed for each baseline year. Electricity production emissions from cogeneration unit allocated to each product: The electricity generated by a cogeneration unit may be used in the production stages of multiple products produced at the regulated facility. Regulated emitters must indicate how the electricity production emissions from the cogeneration unit were allocated between the products produced at the regulated facility. This information is not used to establish a baseline emission intensity, rather it is used in the performance standard calculation. In the event that the electricity generated from the cogeneration unit are not associated with a product, please allocate zero tonnes CO2e of the electricity production emissions to this product. A warning message will appear at the bottom of the sheet if the electricity production emissions from the cogeneration unit are not completely allocated between all products produced at a regulated facility. Additional Information Tab This section provides the opportunity to offer any additional information that may be pertinent to assist in the review of the baseline submission. If further explanation is required for any information provided elsewhere in the baseline submission form, enter it here. Declaration Tab Please review the form to ensure that all required information has been entered accurately before completing this tab. After the information has been confirmed, this section is to be completed by the Authorized Signing Officer for the regulated facility. Please enter the name of the Authorized Signing Officer in the box provided. A signature from the Authorized Signing Officer is also required. To include the signature electronically, double click beside the large X and follow the on-screen instructions. The Authorized Signing Officer may alternatively print and sign the declaration sheet, and include a scanned copy in PDF format in the baseline submission.