Principal Issues: (a) Whether the proposed cogeneration facility will comprise a system (other than an enhanced combined cycle system) used to generate both electrical and heat energy using only fuel that is fossil fuel for the purposes of subparagraph (c)(i) of Class 43.1. (b) Whether the heat rate requirement under clause (c)(i)(B) of Class 43.1 in Schedule II of the Regulations would be met.
Position: (a) Yes.(b) Yes, however the heat rate requirement must also be met every year the facility is in operation unless subsection 1104(14) of the Regulations apply.
Reasons: (a) From the information provided, and provided the conditions of class 43.1(c)(i) are met, the facility (b) Based upon the opinion of Natural Resources Canada dated XXXXXXXXXX , the heat rate of the facility would be less than 6,000 BTU/kWh and therefore, the heat rate requirement under clause (c)(i)(B) of Class 43.1 in Schedule II of the Regulations would be considered as being met.