The Nova Scotia Regulation 24/2024, titled “Output-Based Pricing System Reporting and Compliance Regulations,” was enacted by the Governor in Council on January 30, 2024. These regulations are designed to regulate the reporting and compliance of emissions from regulated facilities within an output-based pricing system.

Key terms used in the regulation include “baseline emissions intensity,” which refers to the average emissions associated with producing a product at a regulated facility, calculated based on the facility’s emissions and production levels during its baseline years. “Baseline years” are specific years approved by the Minister of Environment and Climate Change to calculate baseline emissions. “Compliance period” refers to any year in which a facility must adhere to the regulations and reduce emissions. “Emissions intensity” is a measure of emissions per unit of output that facilities must work to decrease under the law.

Section 3 of the regulation states that a compliance period is any year during which a facility must reduce its emissions intensity. The first compliance period begins in the year the facility becomes subject to the regulations. Section 4 requires that facility owners or operators define a reduction period in accordance with the standards, during which performance standards reduction factors and emissions limits are adjusted.

Section 5 mandates that facilities must reduce their emissions intensity as specified by the regulation and its related standards. Under Section 6, owners and operators must calculate their emissions limits based on performance standards reduction factors. The methods for calculating limits vary for electricity generation and other products.

Section 7 outlines the process for establishing baseline emission levels and production levels for each product at a regulated facility. These baselines are used as benchmarks for measuring improvements or reductions in emissions intensity. Facilities must report their baseline data to the Minister, and an independent verification report must confirm its accuracy. If discrepancies are found, corrective actions are required. The Minister also has the authority to review and adjust baseline emissions intensity if conditions at a facility change, such as the introduction of new products or production changes. Facilities must notify the Minister within 30 days if significant changes occur, such as a 10% or greater reduction in emissions intensity.

N.S. Reg. 24/2024 is a regulatory mechanism aimed at reducing industrial greenhouse gas emissions in Nova Scotia. It requires regulated facilities to manage and report their emissions and outlines stringent compliance and reporting procedures to ensure these facilities contribute to the province’s broader climate goals.

Nova Scotia (24/2024) February 23, 2024