Natural Resources Ressources naturslles

Canada Canada

CanmetENERGY
Leadership in ecolnnovation

Technical Guide
to Class 43.1 and 43.2

2019 Edition

Canada
Aussi disponible en français sous le titre : Information contained in this publication or product may be reproduced in part
Catégories 43.1 et 43.2 — Guide Technique, édition 2019 or in whole, and by any means, for personal or public non-commercial purposes,
without charge or further permission, unless otherwise specified.
DISCLAIMER
You are asked to:
This Guide applies conclusively with respect to engineering and scientific
• Exercise due diligence in ensuring the accuracy of the materials reproduced;
matters only. In this Guide, only the information contained in Section 2.0 refers
to engineering and scientific matters. Any information in this Guide that relates to • Indicate the complete title of the materials reproduced, the author organization;
income tax issues is provided for information purposes only. Since the Canada and
Revenue Agency is responsible for the interpretation and administration of
• Indicate that the reproduction is a copy of an official work that is published by
the Income Tax Act and the Income Tax Regulations, anyone wishing further
the Government of Canada and that the reproduction has not been produced
information concerning the income tax matters described in this Guide
in affiliation with, or with the endorsement of the Government of Canada.
should contact the Canada Revenue Agency as described in Section 1.3.

Cat. No. M154-75/2020E-PDF Commercial reproduction and distribution is prohibited except with written
ISBN 978-0-660-36647-0 permission from the Government of Canada’s copyright administrator, Public
Works and Government Services Canada (PWGSC). For more information
© Her Majesty the Queen in Right of Canada, as represented by the Minister contact PWGSC at: copyright.droitdauteur@pwgsc.gc.ca.
of Natural Resources Canada, 2019
TABLE OF CONTENTS
1.0 OVERVIEW 6
2.16 District Energy Systems/Equipment ...................................................... 162
1.1 About This Guide .......................................................................................7
2.17 Producer Gas Generating Equipment .................................................... 169
1.2 Terms Used in This Guide ..........................................................................8
2.18 Electric Vehicle Charging Equipment ..................................................... 176
1.3 Services Provided by Finance Canada, the Class 43.1 and 43.2
Secretariat and the CRA ............................................................................8 2.19 Electrical Energy Storage Equipment ..................................................... 183
1.4 Background ...............................................................................................9
3.0 GLOSSARY OF TERMS 192
1.5 Capital Cost of Properties Included in Class 43.1 and 43.2 ..................... 11

4.0 KEY TO SYMBOLS USED IN SCHEMATICS 197

2.0 QUALIFYING SYSTEMS AND EQUIPMENT 16

2.1 Cogeneration, Enhanced Combined Cycle and Specified-Waste 5.0 LIST OF FORMS 200
Fuelled Electrical Generation Systems .................................................... 18
2.2 Thermal Waste Electrical Generation Equipment ....................................48 6.0 LIST OF SCHEDULES 202
2.3 Active Solar Heating Equipment and Ground-Source
Heat Pump Systems ...............................................................................58
7.0 LIST OF PROJECT COST TABLES 204
2.4 Small-Scale Hydro-Electric Installations ..................................................72
2.5 Heat Recovery Equipment ......................................................................79 8.0 LIST OF SCHEMATICS 206
2.6 Wind Energy Conversion Systems ..........................................................86
2.7 Photovoltaic Electrical Generation Equipment .........................................93 APPENDICES
2.8 Geothermal Energy Equipment ...............................................................99
2.9 Landfill Gas and Digester Gas Collection Equipment ............................ 108
APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1
AND CLASS 43.2 209
2.10 Specified-Waste Fuelled Heat Production Equipment ........................... 116
2.11 Expansion Engine Systems ................................................................... 124
2.12 Systems to Convert Biomass into Bio-Oil ............................................. 130
2.13 Fixed Location Fuel Cell Equipment ...................................................... 137
2.14 Systems to Produce Biogas by Anaerobic Digestion ........................... 147
2.15 Water-Current, Tidal or Wave Energy Equipment ................................... 153

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 3
 TABLE OF CONTENTS

TABLES KEYS TO SCHEMATICS

Table 1.4.1 Enhanced First-Year Allowance for Property Included Key 4.1 Key to Mechanical Symbols Used in Schematics .......................... 198

in Class 43.1 or 43.2........................................................................10 Key 4.2 Key to Mechanical Symbols (Cont’d), Electrical Symbols,
Line Types and Hatch Patterns Used in Schematics ..................... 199
Table 1.5.1 Example of CCA for Property Included in Class 43.1
and Available for Use in 2020 ..........................................................13
Table 1.5.2 Example of CCA for Property Included in Class 43.2 and
Available for Use in 2022 .................................................................13
Table 1.5.3 Example of CCA for Property Included in Class 43.1 and
Available for Use in 2024 .................................................................13
Table 2.1.1 Designated Heat Rates for Class 43.1 and 43.2 ..............................22

FIGURES
Figure 1.4.1 Eligibility Under Class 43.1 and Class 43.2 and
Enhanced First Year Allowance ....................................................... 10
Figure 2.1.1 Cogeneration System Inputs and Outputs.......................................23
Figure 2.1.2 Natural Gas-Fired Combined Cycle in Cogeneration Mode.............25
Figure 2.1.3 Enhanced Combined Cycle System Energy Balance ......................25
Figure 2.1.4 Enhanced Combined Cycle System at a Natural Gas
Compressor Station ........................................................................27

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 4
 TABLE OF CONTENTS

ABBREVIATIONS

AC Alternating Current kW kilowatt

AFC Alkaline Fuel Cell kWh kilowatt hour
ASE Active Solar Equipment lb pound
BGS Bio Gas System LDE Landfill and Digester Gas Equipment
BOS Bio-Oil System LHV Lower Heating Value
BTU British Thermal Unit MCC Motor Control Centre
CCA Capital Cost Allowance MCFC Molten Carbonate Fuel Cell
CFCs Chlorofuorocarbons MW megawatt
CRA Canada Revenue Agency MWh megawatt hour
CRCE Canadian Renewable and Conservation Expenses NRCan Natural Resources Canada
CSA Canadian Standards Association ºC degrees Celsius
DC Direct Current ºF degrees Fahrenheit
DES District Energy System P.C. Privy Council
ECG Electrical Cogeneration PAFC Phosphoric Acid Fuel Cell
EES Expansion Engine System PEMFC Proton Exchange Membrane Fuel Cell
EESE Electrical Energy Storage Equipment PGE Producer Gas Generating Equipment
EV Electric Vehicle PLC Programmable Logic Controller
EVCE Electric Vehicle Charging Equipment psi pounds per square inch
FCE Fuel Cell Equipment PVE Photovoltaic Equipment
GEE Geothermal Energy Equipment S.C. Statutes of Canada
GEG Geothermal Electrical Generation SCADA Supervisory Control and Data Acquisition
HCFCs Hydrochlorofuorocarbons SHI Small-Scale Hydro-Electric Installation
HHV Higher Heating Value SI International System
HPE Heat Production Equipment SOFC Solid Oxide Fuel Cell
HRE Heat Recovery Equipment SOR Statutory Orders and Regulations
HRSG Heat Recovery Steam Generator TWE Thermal Waste Equipment
HVAC Heating Ventilating and Air Conditioning UCC Undepreciated Capital Cost
kg kilogram WES Wind Energy Conversion System
kJ kilojoule WTE Water-Current, Tidal or Wave Energy Equipment
kPa kilopascal yr year

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 5
1.0 Overview

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 6
 1.0 OVERVIEW

Natural Resources Canada (NRCan) is responsible for advising Finance Canada,

the Canada Revenue Agency (CRA) and taxpayers on engineering and scientific
1.1 About This Guide
issues relating to: This edition of the Guide
• accelerated Capital Cost Allowance (CCA) for specified clean energy generation • provides information concerning the CCA classes in the Regulations for clean
and energy conservation equipment that meet the requirements of Classes 43.1 energy generation and energy conservation equipment;
and 43.2 of Schedule II to the Income Tax Regulations (the “Regulations”),
• lists the types of property that are eligible and ineligible for inclusion in Class 43.1
and or Class 43.2;
• certain eligible start-up expenses that qualify as Canadian renewable and • provides schematic diagrams of the common types of qualifying systems;
conservation expenses (CRCE) under section 1219 of the Regulations.
• provides tables that list the types of costs that may be incurred for qualifying
Within NRCan, the responsibility for providing engineering and scientific advice for Class 43.1 or Class 43.2 property;
these tax incentives rests with the Class 43.1 and 43.2 Secretariat of the Innovation
Branch in the Strategic Policy and Innovation Sector (SPI). The Class 43.1 and and
43.2 Secretariat draws upon the expertise of the engineering and scientific • provides the application forms to be completed by taxpayers to request a
professionals at CanmetENERGY to provide expert advice in many different technical opinion from NRCan as to which assets in a planned or completed
energy technology areas. As stated in subsection 13(18.1) of the Income Tax Act, project may qualify for inclusion in Class 43.1 or Class 43.2.
the Technical Guide to Class 43.1 and 43.2 published by NRCan applies with
respect to engineering and scientific matters associated with the determination of This edition of the Guide supersedes the 2013 edition of the Technical Guide to
whether a property meets the criteria set out in Class 43.1 or 43.2 of Schedule II Class 43.1 and 43.2 and refects changes to the Regulations that were enacted as
to the Regulations. of June 22, 2019.

NRCan has prepared this document in co-operation with the CRA and Finance The Class 43.1 and 43.2 Secretariat also maintains the Technical Guide to
Canada. We welcome your comments. Canadian Renewable and Conservation Expenses (CRCE) under separate cover.
Taxpayers are advised to consult that guide for specific information on CRCE.

This Guide may be amended from time to time to refect amendments to the
Income Tax Act and Regulations with respect to Class 43.1 and 43.2. Taxpayers
should consult the latest versions of the Income Tax Act and Regulations
whenever they are considering a project to ensure that decisions are based on
the legislation in force at the time. Proposed changes to Class 43.1 and 43.2 and
CRCE are usually announced by the Minister of Finance when legislation is tabled
in the House of Commons. For information on proposed changes to the Income
Tax Act and Regulations, taxpayers are encouraged to visit Finance Canada’s
website at: https://fin.canada.ca/drleg-apl/index-en.html

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 7
 1.0 OVERVIEW

1.2 Terms Used in This Guide 1.3.2 THE CLASS 43.1 AND 43.2 SECRETARIAT
The Class 43.1 and 43.2 Secretariat is staffed with knowledgeable engineering
Certain terms used in this Guide, including the terms that are defined in sub-
professionals who are responsible for advising Finance Canada, the CRA and
section 1104(13) of the Regulations, are summarized in the Glossary of Terms,
taxpayers on engineering and scientific issues relating to investments in clean
found in Section 3.0 of this Guide. Throughout this Guide, terms that are defined
energy generation and energy conservation projects. To discuss the engineering
in the Income Tax Act and the Regulations are italicized in bold the first time they
and scientific aspects of a project, taxpayers or their authorized representatives are
appear and excerpts from the Regulations are shown in italics. Class 43.1 or
encouraged to contact the Class 43.1 and 43.2 Secretariat at the following address:
Class 43.2 of Schedule II to the Regulations is referred to as Class 43.1 or 43.2.

Class 43.1 and 43.2 Secretariat

1.3 Services Provided by Finance Natural Resources Canada
Canada, the Class 43.1 and 43.2 580 Booth Street, 13th Floor
Ottawa, Ontario K1A 0E4
Secretariat and the CRA
Phone: (833) 983-1381
1.3.1 FINANCE CANADA E-mail: nrcan.class43-1-categorie43-1.rncan@canada.ca

The legislated conditions for eligibility for Class 43.1 and 43.2 and CRCE are set
out in provisions of the Regulations. Those provisions are either adopted by the
Governor-in-Council on the recommendation of the Minister of Finance after In response to written applications for technical opinions, the Class 43.1 and 43.2
having been approved by the Treasury Board or implemented through a bill Secretariat may provide written technical opinions—based on information provided
tabled in Parliament. Finance Canada is responsible for developing tax policy, by applicants—as to whether the equipment in a proposed or completed project
providing advice to the Minister of Finance and for the drafting of tax legislation meets the engineering and scientific requirements of one or more of the qualifying
and regulations. Tax policy concerns that may necessitate amendments to the systems or categories of equipment described in Class 43.1 or 43.2. Whereas
legislation may be directed to the following address: such opinions are optional and are not binding on the CRA, they do provide
technical guidance to taxpayers and the CRA as to whether:

Director General, Business Income Tax Division • equipment in a project meets the engineering and scientific requirements of
Finance Canada one or more of the qualifying systems or categories of equipment described in
90 Elgin Street, 12th Floor, Class 43.1 or 43.2;
Ottawa, Ontario K1A 0G5
and

E-mail: fn.cleanenergy-energiepropre.fn@canada.ca • properties in the project are eligible for inclusion in Class 43.1 or 43.2.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 8
 1.0 OVERVIEW

To request a technical opinion, a taxpayer must complete the applicable Depending on the nature of the advance income tax ruling request, taxpayers may
Class 43.1 or 43.2 forms in Section 2.0 of this Guide and mail them to the be required to complete the applicable forms and schedules in Section 2.0 of this
above address. Guide as discussed above and submit a copy to each of the following offices:

• the Class 43.1 and 43.2 Secretariat at the above address;

1.3.3 CANADA REVENUE AGENCY
and
The Income Tax Rulings Directorate (the “Directorate”) is part of the Legislative • the CRA at the address indicated below, along with the request for an advance
Policy and Regulatory Affairs Branch of the CRA. income tax ruling.
The Directorate’s role is to interpret Canada’s income tax law and publish advance For more information concerning this procedure or for general information
income tax rulings and technical interpretations. In this context, the Directorate regarding Class 43.1 or 43.2, taxpayers may contact the Directorate at the
provides the following services and publications: following address:

• advance income tax rulings relating to the tax consequences of proposed

transactions to taxpayers for a fee; Income Tax Rulings Directorate
Canada Revenue Agency
• technical interpretations (free of charge) of general income tax questions 112 Kent Street, 9th Floor, Tower A
provided to taxpayers, either directly or by assisting other areas of the CRA Ottawa, Ontario K1A 0L5
that deal with taxpayers;
Phone: (416) 973-3066
and
E-Mail: itrulingsdirectorate@cra-arc.gc.ca
• technical publications and newsletters that clarify the CRA’s interpretation
of income tax law.
The Compliance Programs Branch of the CRA, in conjunction with the audit
The CRA also publishes a folio titled S3-F8-C2, Tax Incentives for Clean Energy programs administered by the Tax Services Offices, is responsible for ensuring
Equipment that is available on the CRA website at: https://www.canada.ca/en/ compliance with the provisions of the Income Tax Act and the Regulations. For
revenue-agency/services/tax/technical-information/income-tax/income-tax-folios- further information relating to the income tax consequences of completed
index/series-3-property-investments-savings-plans/series-3-property- transactions, please contact your local tax services office.
investments-savings-plan-folio-8-resource-properties/income-tax-folio-s3-f8-c2-
tax-incentives-clean-energy-equipment.html.
1.4 Background
Taxpayers wishing to obtain a binding advance income tax ruling (for which a
fee is charged) as to whether certain property to be acquired will be eligible for
inclusion in Class 43.1 or 43.2 should refer to the current version of Information 1.4.1 CLASS 43.1 AND 43.2
Circular IC 70-6, Advance Income Tax Rulings, issued by the CRA for the
The Government of Canada provides an accelerated CCA rate for Class 43.1 and
procedure to request an advance income tax ruling. The Circular is available
43.2 properties as an incentive to encourage businesses to invest in specified
on the CRA website.
clean energy generation and energy conservation equipment. Both classes
include a variety of stationary equipment that generates or conserves energy by

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 9
 1.0 OVERVIEW

• using a renewable energy source (e.g., wind, solar, small-scale hydro); The enhanced allowance initially provides a 100 percent deduction, with a phase
out for property that becomes available for use after 2023, as described in the
• using fuels from waste (e.g., landfll gas, wood waste, manure);
table below:
or
• making efficient use of fossil fuels (e.g., high efficiency cogeneration systems).
Table 1.4.1 Enhanced First-Year Allowance for Property Included
As illustrated in Figure 1.4.1, Class 43.1 was introduced in 1994 and provides an In Class 43.1 or 43.2
accelerated CCA rate of 30 percent per year on a declining balance basis for
properties acquired after February 21, 1994. Class 43.2, which provides an Current First-Year Allowance First-Year
accelerated CCA rate of 50 percent per year on a declining balance basis, was (half-year rule) Enhanced
Allowance
introduced in 2005 and is available for properties acquired after February 22, 2005 Class 43.1 Class 43.2
and before 2025. Implementation -2023 15 25 100

Most systems that are described in Class 43.1 qualify for Class 43.2 when the 2024 15 25 75
property is acquired before 2025. The eligibility criteria for these two CCA classes 2025 15 _ 75
are generally the same, except that the following equipment qualifies for Class 2026 15 _ 55
43.1, but not Class 43.2:
2027 15 _ 55
• mid-efficiency, cogeneration systems that are fully or partially fuelled with 2028 onward 15 _ _
fossil fuels;
• electric vehicle charging stations set up to supply more than 10 kW but less PROPERTY ACQUISITION DATE

1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
than 90 kW of continuous power; and
• electrical energy storage equipment connected to one of the above systems CLASS 43.1 (30% CCA)
ACQUIRED AFTER FEBRUARY 21, 1994 ONWARDS
and stand-alone electrical energy storage systems meeting particular efficiency
CLASS 43.2 (50% CCA)
requirements. ACQUIRED AFTER FEBRUARY 22, 2005 AND BEFORE 2025

ENHANCED FIRST
YEAR ALLOWANCE
1.4.2 ENHANCED FIRST-YEAR ALLOWANCE FOR ACQUIRED AFTER NOVEMBER
20, 2018 AND BEFORE 2028
PROPERTY INCLUDED IN CLASS 43.1 OR 43.2 (SEE SECTION 1.5.3)

As laid out in the previous section, classes 43.1 and 43.2 provide accelerated CCA
rates of 30 percent and 50 percent respectively, on a declining-balance basis. In Figure 1.4.1 Eligibility Under Class 43.1 and Class 43.2 and
addition, property included in Class 43.1 or 43.2 is generally eligible for an Enhanced First Year Allowance
enhanced first-year allowance if it is acquired after November 20, 2018 and
More information on the enhanced first-year allowance is available at CRA’s
becomes available for use before 2028, as illustrated in Figure 1.4.1.
“Accelerated Investment Incentive” website at: https://www.canada.ca/en/
revenue-agency/services/tax/businesses/topics/sole-proprietorships-
partnerships/report-business-income-expenses/claiming-capital-cost-allowance/
accelerated-investment-incentive.html#FullExpMP.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 10
 1.0 OVERVIEW

1.4.3 NON-CAPITAL COSTS INCURRED IN RELATION Renewable Conservation Expenses (CRCE) for further information);
TO CLASS 43.1 OR 43.2 PROPERTY • the cost of certain modifications made to the property after it was acquired;

In addition to the capital cost of Class 43.1 or 43.2 properties discussed below, • legal, accounting or other expenses related to the acquisition of the property;
the following types of expenditures would generally be incurred in respect of
and
Class 43.1 or 43.2 properties:
• costs of other services required to make the property operational.
• pre-feasibility expenses;
• feasibility study expenses; 1.5.2 CAPITAL COST ALLOWANCE
• process engineering expenses; Generally, taxpayers may deduct CCA in respect of the capital cost of depreciable
and property (less government assistance, see CRA interpretation bulletin IT-273R2 for
more information) when computing their business or property income. The CCA
• certain financing and administrative expenses. claim for a class of depreciable property is based on a prescribed rate that is
generally based on the useful life of the property.
Generally, the first three types of expenditures—which are discussed in the
Technical Guide to Canadian Renewable and Conservation Expenses (CRCE) Class 43.1 and 43.2 provide a higher CCA rate than would otherwise be available as
published by NRCan—may be treated as CRCE. an incentive to encourage businesses to invest in specified clean energy generation
and energy conservation equipment. CCA is a “permissive deduction” in that a
Certain financing and administrative expenses may be deductible when computing
taxpayer may choose to claim a smaller amount of CCA in any year than the
income under the Income Tax Act.
maximum CCA allowable for the year.

1.5 Capital Cost of Properties Included

in Class 43.1 and 43.2
1.5.1 DETERMINATION OF CAPITAL COST
Class 43.1 and 43.2 generally include the capital cost of eligible energy
conservation property and clean energy generation property, as well as all
costs associated with the acquisition and installation of the property such as

• the purchase price of the property;

• costs related to the design, engineering and commissioning of the property that
would not otherwise qualify as CRCE (see the Technical Guide to Canadian

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 11
 1.0 OVERVIEW

In order for a taxpayer to claim CCA on a Class 43.1 or 43.2 property: 1.5.3 EXAMPLES OF CCA CALCULATION FOR PROPERTY
INCLUDED IN CLASS 43.1 OR 43.2
• the taxpayer must own the property;
• the taxpayer must have acquired the property for the purpose of gaining Under the enhanced first-year allowance, the allowable first-year CCA for both
or producing income; Class 43.1 and Class 43.2 property is 100%.

• the property must be “available-for-use” (see below); For Class 43.1 and 43.2 property available for use in 2024 and future years, the
enhanced first-year allowance is reduced. The remaining undepreciated capital
and
cost (UCC) available is claimed using the declining-balance method. This method
• the property must meet certain specifications prescribed by regulation involves applying the prescribed CCA rate to the UCC of an asset, or group of
(outlined in this Guide). assets from the same class, at the end of each year. The UCC generally
Property (other than a building) usually becomes available for use on whichever represents the capital cost of property plus additions and less dispositions made
of the following occurs the earliest: in the year, minus all CCA claimed in previous years, if any. In addition, UCC
generally excludes the amount of any assistance such as grants, subsidies,
• the date the property is first used to earn income; forgivable loans, deductions from tax, received or receivable by the taxpayer. The
UCC balance continues to decline each year CCA is claimed over the property’s
• the second tax year after the year the property is acquired;
useful life.
• the time that is just before the disposition of the property;
Example 1: CCA Calculation for Property Included in Class 43.1 and
or
Available for Use in 2020
• the time the property is delivered or made available and is capable of producing
a saleable product or service. The example in Table 1.5.1 below shows the maximum CCA that may be deducted
each year from the taxpayer’s business or property income and the UCC balance
The first year property is deemed to be available for use, the amount of CCA that each year under Class 43.1. In this example, it is assumed that the taxpayer
may be claimed is limited to one half of the CCA deductions otherwise available acquires the equipment in 2020 for $100,000, begins to use the equipment
pursuant to the “half-year rule” (see Section 1.5.3 for an example of how the immediately and meets Class 43.1 eligibility requirements each year. The
half-year rule is applied). However, special rules apply for properties that are prescribed CCA rate for Class 43.1 is 30 percent, however, since the property is
acquired after November 2018 as discussed in paragraph 1.4.2 above. available for use in 2020, the full capital cost of the property can be deducted in
2020 under the enhanced first-year allowance.
In addition, as discussed further in Section 1.5.4, the CCA deductions may be
further restricted in certain circumstances pursuant to the “specified energy
property rules”.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 12
 1.0 OVERVIEW

Table 1.5.1 Example of CCA for Property Included in Class 43.1 Example 3: CCA Calculation for Property Included in Class 43.1 and
and Available for Use in 2020 Available for Use in 2024

Year UCC ($) Maximum CCA ($) Table 1.5.3 below illustrates the maximum CCA that may be deducted each year
from the taxpayer’s business or property income and the UCC balance each year
2020 100,000 100,000
if the equipment were included in Class 43.1 and acquired and became available for
2021 0 0 use in 2024. The prescribed CCA rate for Class 43.1 is 30 percent, however, since
the property is available for use in 2024, 75 percent of the capital cost of the property
2022 0 0 can be deducted in 2024 under the enhanced first-year allowance. In the years
2023 0 0 following 2024, the undepreciated capital cost of the property can be deducted
at 30 percent annually.
etc.
Table 1.5.3 Example of CCA for Property Included in
Example 2: CCA Calculation for Property Included in Class 43.2 and Available Class 43.1 and Available for Use in 2024
for Use in 2022
Year UCC ($) Maximum CCA ($)
Using the same assumptions as in the example above, the example in Table 1.5.2
below illustrates the maximum CCA that may be deducted each year from the 2024 100,000 75,000
taxpayer’s business or property income and the UCC balance each year if the 2025 25,000 7,500
equipment were included in Class 43.2 and was acquired and became available for
2026 17,500 5,250
use in 2022. The prescribed CCA rate for Class 43.2 is 50 percent, however, since the
property is available for use in 2022, the full capital cost of the property can be 2027 12,250 3,675
deducted in 2022 under the enhanced first-year allowance.
etc. – –
Table 1.5.2 Example of CCA for Property Included in
For further information on calculating CCA, see “Claiming capital cost allowance (CCA)”
Class 43.2 and Available for Use in 2022
on the CRA’s website at: https://www.canada.ca/en/revenue-agency/services/tax/
businesses/topics/sole-proprietorships-partnerships/report-business-income-
Year UCC ($) Maximum CCA ($) expenses/claiming-capital-cost-allowance.html.
2022 100,000 100,000
2023 0 0 1.5.4 SPECIFIED ENERGY PROPERTY RULES
2024 0 0 In certain circumstances, the deduction for CCA on Class 43.1 or 43.2 property,
2025 0 0 as computed in the examples above, may be restricted pursuant to the specified energy
property rules contained in subsections 1100(24) to 1100(29) of the Regulations. These
etc. – – rules limit the amount of CCA that may be claimed by passive investors in respect
of “specified energy property” (such as Class 43.1 and 43.2 properties) to the income
from such property. In other words, CCA cannot be used to create or increase a
loss from the specified energy property that can be used to offset other sources
of income.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 13
 1.0 OVERVIEW

For more information on the application of the Specified Energy Property Rules, 1.5.7 ENVIRONMENTAL COMPLIANCE
refer to the Income Tax Folio S3-F8-C2, Tax Incentives for Clean Energy
Equipment that is available on the CRA website at: https://www.canada.ca/en/ Subsection 1104(17) of the Regulations provides that certain property that would
revenue-agency/services/tax/technical-information/income-tax/income-tax-folios- otherwise be eligible for inclusion in Class 43.1 or 43.2 will not be eligible under
index/series-3-property-investments-savings-plans/series-3-property- Class 43.1 or 43.2 if the property fails to comply with the applicable environmental
investments-savings-plan-folio-8-resource-properties/income-tax-folio-s3-f8-c2- laws, by-laws and regulations of Canada or of a province, territory, municipality, or
tax-incentives-clean-energy-equipment.html. a public or regulatory body performing a function of government in Canada at the
time the property becomes available for use. This subsection applies to:

1.5.5 ELIGIBLE PROPERTIES • Cogeneration assets described in section 2.1 acquired after February 10, 2014;

To be eligible for inclusion in Class 43.1 or 43.2, property must be acquired by a • assets described in sections 2.9, 2.10, 2.12 and 2.14 acquired after March 28,
taxpayer for the purpose of earning income from a business carried on in Canada 2012;
or from property situated in Canada. The property must be operational and in • assets described in sections 2.15 and 2.17 acquired after February 10, 2014;
compliance with the eligibility requirements on an annual basis.
• assets described in section 2.18 after March 22, 2016;
In addition, the property must generally be new when it is acquired by a taxpayer. and
• assets described in section 2.8 acquired after March 22, 2017.
1.5.6 INELIGIBLE PROPERTIES
Property that is not eligible for inclusion in Class 43.1 or 43.2 generally includes 1.5.8 MODIFICATIONS AND IMPROVEMENTS
the following:
The capital cost of modifications or improvements to existing qualifying systems
• operating parts, spare parts and components that are used in support of a or to existing equipment may be eligible for inclusion in Class 43.1 or 43.2.
qualifying system but which do not form an integral part of eligible equipment;
• foundations and support structures, except those specifically described in
this Guide;
• buildings or part of a building, except those specifically described in this Guide;
• electrical distribution systems;
and
• electrical transmission systems, except those specifically described in this Guide.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 14
 1.0 OVERVIEW

1.5.9 SYSTEMS AND ANCILLARY EQUIPMENT

Property described in Class 43.1 or 43.2 may refer to equipment that is part of
a system. The term “system” generally means an integrated whole composed
of diverse, yet interacting specialized structures that performs a function not
possible with any of the individual parts. Generally, where a system does not
meet the conditions in Class 43.1 or 43.2, the equipment that is included in
the system will not qualify for Class 43.1 or 43.2. The determination of what
constitutes a qualifying system for Class 43.1 or 43.2 purposes is generally an
engineering and scientific matter. In this regard, please refer to the schematics
of typical qualifying systems contained in Section 2.0 of this Guide or contact
the Class 43.1 and 43.2 Secretariat.

In addition, property described in Class 43.1 or 43.2 may refer to certain listed
equipment and ancillary equipment. “Ancillary” equipment is generally considered
to be equipment that would be subordinate or auxiliary to the listed equipment.

1.5.10 INDUSTRIAL PROCESS

Certain clean energy generation properties described in Class 43.1 and 43.2 refer to
energy generated from or used in an “industrial process.” The determination of what
constitutes an industrial process is generally a question of fact. In general, for these
purposes, an industrial process can include activities such as the manufacture of
goods or the processing of materials, the generating and processing of electrical
energy and the extraction and processing of natural gas and petroleum. The
processing of electrical energy includes processes such as phase synchronization
and filtering, in addition to the transformation of electricity which involves changing
voltage levels. An industrial process does not include space or domestic water
heating or agricultural activities.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 15
2.0 Qualifying Systems
and Equipment

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 16
 2.0 QUALIFYING SYSTEMS AND EQUIPMENT

This section describes in detail the 19 categories of systems and equipment The categories of properties that are included in subsections 2.1 and 2.2 are
described in Class 43.1 and 43.2. Subsections are included for each of these described in paragraphs (a) to (c) of Class 43.1. The categories of properties that
19 categories as follows: are included in subsections 2.3 to 2.19 are described in paragraph (d) of Class
43.1.
2.1 Cogeneration, Enhanced Combined Cycle and Specified-Waste Fuelled
Electrical Generation Systems With the exception of cogeneration and specified-waste fuelled electrical
2.2 Thermal Waste Electrical Generation Equipment generation systems, electric vehicle charging equipment and electrical energy
storage equipment, all properties described in the subsections below will generally
2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems
be included in Class 43.2 provided that they are acquired after February 22, 2005
2.4 Small-Scale Hydro-Electric Installations and before 2025.
2.5 Heat Recovery Equipment
Class 43.2 has a higher efficiency standard for cogeneration and specified-waste
2.6 Wind Energy Conversion Systems
fuelled electrical generation systems that use fossil fuels than Class 43.1.
2.7 Photovoltaic Electrical Generation Equipment Cogeneration and specified-waste fuelled electrical generation systems that only
2.8 Geothermal Energy Equipment meet the lower efficiency standard of Class 43.1 are eligible for inclusion in Class
43.1.
2.9 Landfill Gas and Digester Gas Collection Equipment
2.10 Specified-Waste Fuelled Heat Production Equipment Class 43.2 has a higher power rating requirement for electric vehicle charging
2.11 Expansion Engine Systems stations. Electric vehicle charging stations that only meet the lower power rating
requirement of Class 43.1 are eligible for inclusion in Class 43.1.
2.12 Systems to Convert Biomass into Bio-Oil
2.13 Fixed Location Fuel Cell Equipment To be eligible for inclusion in Class 43.2, electrical energy storage equipment must
be used to store electrical energy generated by other equipment described in
2.14 Systems to Produce Biogas by Anaerobic Digestion
Class 43.2. To be eligible for inclusion in Class 43.1, electrical energy storage
2.15 Water-Current, Tidal or Wave Energy Equipment equipment must be used to store electrical energy generated by other equipment
2.16 District Energy Systems/Equipment described in Class 43.1 or meet a minimum round-trip efficiency standard.
2.17 Producer Gas Generating Equipment
For each category of systems or equipment, the subsections that follow provide
2.18 Electric Vehicle Charging Equipment guidance with respect to certain property or capital costs that may be eligible
2.19 Electrical Energy Storage Equipment or ineligible for inclusion in Class 43.1 or 43.2 from an engineering and scientific
perspective. The examples provided are for information purposes only. The
determination as to whether a particular expenditure will be eligible for inclusion
in Class 43.1 or 43.2 requires an examination of the facts of each particular
project. Since the CRA is responsible for the interpretation and administration
of the Income Tax Act and the Income Tax Regulations, anyone wishing further
information concerning the income tax matters described in this Guide should
contact the CRA as described in Section 1.3 of this Guide.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 17
 2.1 Cogeneration, Enhanced Combined Cycle and Specifed-Waste Fuelled
Electrical Generation Systems

CONTENTS

2.1.1 Cogeneration, Enhanced Combined Cycle 2.1.6 Calculating Heat Rates and the Defning Ratio ................................... 23
and Specifed-Waste Fuelled Generation Systems............................. 20
2.1.7 Application for Technical Opinion with Respect to Class 43.1 or
2.1.2 Eligible Properties ................................................................................ 20 43.2 Eligibility of a Cogeneration, Enhanced Combined Cycle or
2.1.3 Ineligible Properties ............................................................................. 20 Specifed-Waste Fuelled Electrical Generation System...................... 28

2.1.4 Eligible Fuels and Thermal Waste ....................................................... 21 2.1.8 Capital Costs Typically Included in Class 43.1 or 43.2 ....................... 30

2.1.5 Designated Heat Rate.......................................................................... 21 2.1.9 Schematics of Qualifying Systems...................................................... 31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 18
 TABLES AND FIGURES SCHEMATICS

Table 2.1.1 Designated Heat Rates for Class 43.1 and 43.2...........................22 ECG 2.1.1 Natural Gas-Fired Turbine System—Cogeneration Mode ............... 32
Figure 2.1.1 Cogeneration System Inputs and Outputs ...................................23 ECG 2.1.2 Petroleum-Fired Gas Turbine System—Cogeneration Mode .......... 33
Figure 2.1.2 Natural Gas-Fired Combined Cycle in Cogeneration Mode ........25 ECG 2.1.3 Natural Gas-Fired Steam Turbine System—Cogeneration Mode ... 34
Figure 2.1.3 Enhanced Combined Cycle System Energy Balance ..................25 ECG 2.1.4 Petroleum-Fired Steam Turbine System—Cogeneration Mode ...... 35
Figure 2.1.4 Enhanced Combined Cycle System at a Natural Gas ECG 2.1.5 Coal-Fired Steam Turbine System—Cogeneration Mode ............... 36
Compressor Station ......................................................................27
ECG 2.1.6 Wood Waste-Fired Steam Turbine System—
Cogeneration Mode ........................................................................37
ECG 2.1.7 Combination of Wood Waste and Natural Gas-Fired
Systems.............................................................................................. 38
ECG 2.1.8 Municipal Waste-Fired Steam Turbine System—
Cogeneration Mode........................................................................... 39
ECG 2.1.9 Landfll Gas or Digester Gas-Fired Steam Turbine System—
Cogeneration Mode........................................................................... 40
ECG 2.1.10 Natural Gas-Fired Combined Cycle—Cogeneration Mode ..............41
ECG 2.1.11 Petroleum-Fired Combined Cycle—Cogeneration Mode................ 42
ECG 2.1.12 Integrated Coal Gasifcation Combined Cycle—
Cogeneration Mode........................................................................... 43
ECG 2.1.13 Natural Gas-Fired Reciprocating Engine System—
Cogeneration Mode........................................................................... 44
ECG 2.1.14 Petroleum-Fired Reciprocating Engine System—
Cogeneration Mode........................................................................... 45
ECG 2.1.15 Landfll or Digester Gas-Fired Reciprocating Engine System—
Cogeneration Mode ........................................................................46
ECG 2.1.16 Enhanced Combined Cycle for Electrical Generation....................47

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 19
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

2.1.1 COGENERATION, ENHANCED COMBINED • district energy equipment that uses thermal energy that is primarily supplied
CYCLE AND SPECIFIED-WASTE FUELLED by eligible electrical cogeneration equipment3;
GENERATION SYSTEMS • ancillary equipment (e.g., control, feedwater and condensate return equipment
and equipment to contain and circulate working fuids);
Cogeneration, enhanced combined cycle and specified-waste fuelled electrical
generation systems (described in paragraphs (a) to (c) of Class 43.1 and and
paragraph (a) of Class 43.2) include certain property where: • an addition to eligible equipment mentioned above (e.g., working platforms,
equipment used to upgrade the combustible portion of the fuel such as
• the property is part of a system that is used to generate electricity only or
shredders, dryers or gasifiers).
electricity and useful heat (cogeneration);
To clarify, “heat-generating equipment used primarily for the purpose of
• the systems use only eligible fuels or thermal waste (see Section 2.1.4);
producing heat energy to operate the electrical generating equipment”, means
and heat generating equipment is eligible only if more than 50 percent of the heat
output of such equipment is used to operate electrical generating equipment.
• the systems meet the designated heat rate for Class 43.1 or 43.2
(see Section 2.1.5).
Note: Cogeneration, enhanced combined cycle and specified-waste fuelled
electrical generation systems included in Class 43.1 or 43.2 are an eligible
source of electrical energy for electrical energy storage equipment (see
2.1.2 ELIGIBLE PROPERTIES section 2.19) and cogeneration systems are an eligible source of thermal
energy for district energy systems/equipment (see section 2.16).
Eligible properties for cogeneration, enhanced combined cycle and specified-
waste fuelled electrical generation systems include the following:
2.1.3 INELIGIBLE PROPERTIES
• electrical generating equipment (e.g., steam turbine generators and expander
generators), including any heat-generating equipment used primarily for the Ineligible properties for cogeneration, enhanced combined cycle and specified-
purpose of producing heat energy to operate the electrical generating equipment waste fuelled electrical generation systems include the following:
(e.g., steam boilers and duct burners used to produce steam to operate steam
turbine generators); • buildings or other structures (except working platforms that primarily serve
generation or heat production systems);
• equipment that generates both electrical and heat energy (e.g., gas turbine
generators and reciprocating engine generator sets); • permanent brick or concrete stacks;
• fixed location fuel cell equipment1; • heat rejection equipment (e.g., cooling towers, condensers and cooling water
systems);
• heat recovery equipment (e.g., Heat Recovery Steam Generators [HRSGs],
heat recovery boilers [other than those used in pulp and paper processing],
heat exchangers, evaporators and recuperators)2;

1 See Section 2.13 for more information about eligible fuel cell equipment.
2 See Section 2.5 for more information about eligible heat recovery equipment. 3 See Section 2.16 for more information about eligible district energy equipment.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 20
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

• electrical transmission equipment and distribution equipment; 2.1.5 DESIGNATED HEAT RATE
• fuel-handling equipment that does not upgrade the combustible portion of
Heat rate is a common measure in the electrical generation industry of how
the fuel (e.g., conveyors, wheeled loaders and classifiers);
efficient an electrical generation system is at converting the energy in fuel
and into electrical energy. In general, heat rate is calculated by dividing the energy
content of the fuel consumed for electrical energy generation by the gross
• fuel storage facilities.
electrical energy generated in a given period of time. It is common to express
heat rate in kJ/kWh or BTU/kWh. A lower heat rate indicates a higher efficiency
Furthermore, auxiliary boilers and backup generators are generally not considered
of conversion of the energy in fuel into electrical energy and vice versa.
eligible components of any of the systems or equipment in Class 43.1 or 43.2.
The heat rate calculated for the purposes of Class 43.1 and 43.2 has the same
2.1.4 ELIGIBLE FUELS AND THERMAL WASTE units as the ratio used in industry, however, the quantities used in the numerator
and denominator are calculated differently.
The eligible fuels or feedstocks for the systems or equipment described in
Class 43.1 and 43.2 are defined in subsection 1104(13) of the Regulations. The numerator of the Class 43.1 and 43.2 heat rate is based on the Higher Heating
These definitions are included in the Glossary of Terms found in Section 3.0 Value (HHV) of the fuel as opposed to the Lower Heating Value (LHV) used in heat
of this Guide. For an eligible cogeneration, enhanced combined cycle or specified- rate calculations in industry. Unlike LHV, HHV includes the energy that is required
waste fuelled electrical generation system, eligible fuels include the following: to evaporate the water that is formed when a fuel is burned. The numerator of the
Class 43.1 and 43.2 heat rate includes only energy derived from fossil fuels other
• fossil fuels—including petroleum, natural gas or related hydrocarbons, than solution gas. If a system is co-fired with fossil fuels and specified-waste fuels,
basic oxygen furnace gas, blast furnace gas, coal, coal gas, coke, only the energy content of the fossil fuels consumed (other than solution gas) is
coke oven gas, lignite, peat, or solution gas; considered when calculating the heat rate. If a generation system is fuelled only by
a specified-waste fuel or solution gas, the numerator would be zero and as a
• specified-waste fuels—including biogas, bio-oil, digester gas, landfill
result, the system will generally meet the designated heat rate. The energy content
gas, municipal waste, plant residue, pulp and paper waste, wood
of the fossil fuels consumed is calculated by multiplying the volume of fuel
waste (collectively defined in the Regulations as eligible waste fuel),
consumed by the HHV of the fossil fuels.
producer gas or spent pulping liquor;
or Unlike the heat rate ratio used in industry, the denominator of the Class 43.1
and 43.2 heat rate ratio includes the net heat exported from the system (net heat
• any combination of the above.
exported is divided by a conversion factor to convert heat energy to equivalent
electrical energy units) in addition to the gross electrical energy generated. Gross
Thermal waste is also an eligible input for certain Class 43.1 and 43.2
electrical energy is the electrical energy output by the generator or generators in
properties and is defined in subsection 1104(13) of the Regulations.
a system without any allowance made for electrical energy that may be required
to operate the system. With the inclusion of net heat exported in the denominator,
an electrical energy generation system that exports heat for useful purposes
can achieve a lower heat rate (i.e., a higher efficiency rating) than a system that
generates only electrical energy.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 21
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

Heat rates can be converted into an efficiency of electrical energy generation in Table 2.1.1 Designated Heat Rates for Class 43.1 and 43.2
percent by converting the quantity in the denominator of the ratio into the same
units as the quantity in the numerator, inverting the ratio, dividing and multiplying Class 43.1 Class 43.2
by 100. For example, a heat rate of 6000 BTU/kWh corresponds to a ratio of
Heat Rate* Effciency Heat Rate* Effciency
6000 BTU/3413 BTU given that 1 kWh is equivalent to 3413 BTU. This ratio Type of
converts to an efficiency of 57 percent after inverting, dividing and multiplying System kJ/kWh BTU/kWh % kJ/kWh BTU/kWh %
by 100.
Systems
Certain types of systems must meet a designated heat rate to qualify under that burn
Class 43.1 or 43.2 (see Table 2.1.1). Once a system has qualified for inclusion a fuel to
in Class 43.1 or 43.2, it must continue to satisfy the heat rate requirement as well produce ≤6330 ≤6000 ≥57 ≤5010 ≤4750 ≥72
as all other eligibility requirements on an annual basis. If these requirements are electricity
not satisfied on an annual basis, the UCC balance of the property in that year will or electricity
need to be transferred to the CCA class in which the asset would otherwise be and heat
included. An exception to this rule exists where failure to comply with the annual Enhanced
requirements is beyond the taxpayer’s control and the taxpayer makes all combined
≤7060 ≤6700 ≥51 ≤7060 ≤6700 ≥51
reasonable efforts to rectify the problem within a reasonable time.4 cycle
systems

* Based on HHV of fuel consumed.

4 Details of the exception to meeting the heat rate may be found in subsection 1104(14) of
the Regulations.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 22
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

2.1.6 CALCULATING HEAT RATES AND and combustion air is brought to 25 ºC (77 ºF) prior to combustion and the
THE DEFINING RATIO products of combustion are cooled to 25 ºC (77 ºF) after combustion.

The subsections below explain how to determine the energy inputs and outputs FWASTE is the energy content of the eligible waste fuel or solution gas consumed
and the heat rate of each of the types of systems listed in Table 2.1.1. by the system in a year in kJ or BTU. FWASTE is not considered in the calculation
of the Class 43.1 or 43.2 heat rate, therefore it is not necessary to determine
its value.
2.1.6.1 Systems that burn a fuel to generate electricity or electricity
and heat H is the net useful energy in the form of heat exported from the system to a
thermal host in a year in kJ or BTU. In general, exported heat is considered to
The energy inputs and outputs of a system that burns fuel to produce electrical be useful if it displaces heat that would otherwise be generated from fossil fuels
energy and useful heat (i.e., a cogeneration system) are shown in Figure 2.1.1. or electricity. Heat purposely rejected to the environment (e.g., heat rejected in
condensers or cooling towers) is not generally considered to be useful heat. The
Regulations do not require that exported heat be used in an industrial process
or in a greenhouse, nor is it required that heat be exported in the form of steam.
For systems involving only electricity generation, H = 0 and all thermal waste
produced would be viewed as losses (see L below). H is calculated from
outputs and inputs that are metered in cogeneration systems (see below).

E is the gross electrical energy produced by the system in a year in kWh.

This quantity is metered in cogeneration systems. Note that a conversion
factor of 3600 kJ/kWh is used in the version of the above equation in SI units
to convert electrical energy output in kWh to kJ. Similarly, a conversion factor
of 3413 BTU/kWh is applied in the version of the equation in Imperial units to
Figure 2.1.1 Cogeneration System Inputs and Outputs convert electrical energy output—which is usually metered in kWh—to BTU.

L is the total loss of energy from the system in a year in the generation of
In such systems, electricity and the production of heat in kJ or BTU. This includes energy lost
in combustion exhaust gases, boiler shell losses, blow-down losses and heat
FFOSSIL + FWASTE = H + L + (E × 3600) International System (SI) Units [kJ]
discharged to the environment in condensers.
= H + L + (E × 3413) Imperial Units [BTU]
where

FFOSSIL is the energy content of the fossil fuel consumed by the system in a year
in kJ or BTU. FFOSSIL is calculated by multiplying the fossil fuel consumption
in a year by the HHV of the fossil fuel consumed. The calculation of FFOSSIL is
based on HHV data from standard tests where the temperature of the fuel

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 23
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

The net useful heat (H) exported from a system is calculated from the heat To summarize, heat rate for systems that burn an eligible fuel to generate
content of the working fuid stream exported from a cogeneration system and electricity or electricity and heat is calculated as follows:
the heat content of the working fuid stream after the point in the thermal host’s
process where useful heat has been extracted as follows: FFOSSIL
Heat Rate = SI Units[kJ / kWh]
H = Qout - Qex E + (H ÷ 3600)
FFOSSIL
where = Imperial Units[BTU / kWh]
E + (H ÷ 3413)
Qout is the gross heat exported from a cogeneration system in working fuid
in a year in kJ or BTU,
Note: Annual totals of energy inputs and outputs may be used to calculate annual
and average heat rates for the purpose of Class 43.1 or 43.2. Annual average
heat rates can account for seasonal variations in heat and electricity
Qex is the heat content of the working fuid exported in a year after the point in demand that result in a range in operating heat rates over the year.
the thermal host’s process where useful heat has been extracted in kJ or BTU.

Qex may or may not be the heat content of the working fuid stream returned 2.1.6.2 Sample heat rate calculation—systems that burn a fuel to
to a cogeneration system by a thermal host. In the case where heat is exported generate electricity or electricity and heat
from a cogeneration system in a stream of vaporized working fuid (e.g., steam),
The heat rate calculation may be applied to systems composed of many different
the working fuid is used to power an expansion turbine, the working fuid leaves
configurations of components, including gas turbine generators, reciprocating
the turbine as a low pressure vapour and the vapour is condensed in a condenser
engine generators, steam boilers, steam turbines, HRSGs and fuel cells that would
before returning to the cogeneration system, Qex would be evaluated after the
qualify as systems that generate electrical energy or electrical energy and useful
expansion turbine and before the condenser. If, on the other hand, the vaporized
heat under Class 43.1 or 43.2.
working fuid were fully condensed in a heating process by the thermal host, Qex
would be evaluated after the heating process. For example, an electrical energy and heat generation system—known as a
combined cycle system—that uses a gas turbine generator, a heat recovery
In the case where heat is exported and a working fuid stream is returned to a
boiler and a steam turbine generator to generate electrical energy and export
cogeneration system, some make-up fuid is usually required to replace fuid lost
useful heat is shown in Figure 2.1.2. Natural gas is burned in the gas turbine
by the thermal host in the heat export process. The heat that is introduced to
generator to generate electrical energy E1. Exhaust gases from the gas turbine
the system to heat make-up fuid to the same state as the return fuid stream is
generator are ducted through a heat recovery boiler (also known as a HRSG)
generally negligible and therefore can be ignored. However, in the case where
to generate steam. The steam is piped to a steam turbine generator to generate
no working fuid is returned to a cogeneration system, the calculation of H should
additional electrical energy E 2. Low pressure steam is extracted from an extraction
account for the heat required to heat the supply or “make-up” stream of working
point on the steam turbine to supply heat Qout , in the form of steam to a thermal
fuid to the same state at which the thermal host discharges working fuid after
host. The thermal host condenses the steam and returns the condensate with a
extracting useful heat.
heat content of Qex to the heat recovery boiler. It is assumed the heat required to
heat make-up water to the same temperature as that of the condensate returned
is negligible.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 24
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

2.1.6.3 Enhanced combined cycle systems

The energy inputs and outputs of an enhanced combined cycle system that
recovers thermal waste from a natural gas compressor station to enhance the
electrical energy generation of a combined cycle system is shown in Figure 2.1.3.

Figure 2.1.2 Natural Gas-Fired Combined Cycle in Cogeneration Mode

In this example the annual values of FFOSSIL, E and H are determined to be

FFOSSIL = Q 3 = 4740 × 10 9 BTU

Figure 2.1.3 Enhanced Combined Cycle System Energy Balance
E = E1 + E2 = 433 × 10 6 + 110 × 10 6 = 543 × 10 6 kWh
For these systems,
H = Qout - Qex = Q 4 - Q 5 = 974 × 109 - 68 × 109 = 906 × 109 BTU
FCP + TW = E × 3600 + L SI Units [kJ]
Substituting these values into the Class 43.1 or 43.2 heat rate equation in Imperial
units yields the following:
= E × 3413 + L Imperial Units [BTU]
where
FFOSSIL 4740 × 10 9
Heat Rate = = = 5863 BTU/kWh FCP is the heat content of the fuel (i.e., natural gas) burned in a year that is
E + (H ÷ 3413) 543 × 10 6 + (906×10 9 ÷3413)
chargeable to electric power generation in kJ or BTU. FCP is calculated by
multiplying the volume of natural gas consumed in a year for electric power
A heat rate of 5863 BTU/kWh is less than the 6000 BTU/kWh upper limit for generation by the HHV of natural gas. This natural gas consumption is in
Class 43.1 but greater than the 4750 BTU/kWh upper limit for Class 43.2, therefore addition to the volume of natural gas that is burned in a year at a natural
this system would meet the heat rate requirement for Class 43.1 but not that of gas compressor station to compress natural gas fowing through a pipeline.
Class 43.2.
Tw is the thermal waste recovered in a year from the natural gas pipeline
compressor turbine or engine exhaust and supplied to the electrical
generating system in kJ or BTU.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 25
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

E is the electrical energy generated in a year by the enhanced combined texh is the average temperature of the exhaust gases leaving the natural gas
cycle system in kWh. This quantity is multiplied by 3600 to convert it to kJ compressor turbine or engine over a year in °C or °F.
or 3413 to convert it to BTU.
tair is the average temperature of the ambient air over a year in °C or °F.
L is the loss of heat in a year from the enhanced combined cycle system in
kJ or BTU. This includes energy lost in combustion exhaust gases, HRSG The total electrical energy generated by an enhanced combined cycle system
shell losses, blow-down losses and heat discharged to the environment in ( E ) is given by
condensers.
E = EGT + EST
Also, for these systems,
where
FCP = FGT + FDB
EGT is the electrical energy produced in a year by the gas turbine generator
where in kWh.

FGT is the heat content of the natural gas burned in a year by the gas turbine EST is the electrical energy produced in a year by the steam turbine generator
generator in the system in kJ or BTU. FGT is calculated by multiplying the in kWh.
volume of natural gas consumed in a year by the gas turbine generator by
To meet the definition of an enhanced combined cycle system, at least 20 percent
the HHV of natural gas.
of the energy input of a combined cycle process must be thermal waste that is
FDB is the heat content of the natural gas burned in a year by the duct burners recovered from one or more natural gas compressor systems. In terms of the
that may be installed at the inlet of HRSGs to augment power generation. FDB variables defined above, a combined cycle system meets the defining ratio of
is calculated by multiplying the volume of natural gas consumed in a year by all an enhanced combined cycle system if
duct burners in the system by the HHV of natural gas.
Tw
The thermal waste recovered from the natural gas pipeline compressor (Tw) in a Defining Ratio Enhanced Combined Cycle = × 100 20%
year can be calculated from the average temperature difference between the air at (FCP + Tw )
the air intake of the natural gas compressor turbine and the exhaust gases leaving
The heat rate of enhanced combined cycle systems can be calculated using
the natural gas compressor turbine as follows:
the equations for systems that burn a fuel to generate electricity or electricity and
Tw = mexh × Cp exh × (texh - tair ) heat with FCP substituted for FFOSSIL. However, since enhanced combined cycle
systems do not usually export useful heat, these equations reduce to the following:
where

mexh is the mass of exhaust gases recovered in a year from the natural gas FCP
Heat Rate Enhanced Combined Cycle =
compressor turbine or engine exhaust in kg or lb. E
Cp exh is the specific heat at constant pressure of the exhaust gases recovered
in a year from the natural gas compressor or engine in kJ/kg °C or BTU/lb °F.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 26
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

2.1.6.4 Sample heat rate calculation—enhanced combined cycle systems FCP = FGT + FDB = Q 4 + Q 3 = 2120 × 10 9 + 0 = 2120 × 10 9 BTU
An enhanced combined cycle system with a gas turbine powering a natural gas
compressor at a natural gas compressor station, a gas turbine generator, two heat
E = EGT + EST = E1 + E2 = 192 × 10 6 + 130 × 10 6 = 322 × 10 6 kWh
recovery boilers and a steam turbine generator is shown in Figure 2.1.4. The duct
burners shown in the heat recovery boilers are not used. Substituting Tw and FCP into the defining ratio equation for enhanced combined
cycle systems as follows:

Tw 1050 × 10 9
Defining Ratio = × 100 = × 100 = 33%
(FCP + Tw ) (2120 × 10 9 + 1050 × 10 9 )

A ratio of 33 percent is greater than 20 percent; therefore this system meets

the defining ratio requirement of an enhanced combined cycle system.

Substituting FCP and E into the heat rate equation for enhanced combined
cycle systems yields the following:

FCP 2120 × 10 9
Heat Rate = = = 6584 BTU/kWh
E 322 × 10 6

A heat rate of 6584 BTU/kWh is less than 6700 BTU/kWh; therefore this
system meets the heat rate requirement for enhanced combined cycle systems
in Class 43.1 and 43.2.

Figure 2.1.4 Enhanced Combined Cycle System at a Natural Gas

Compressor Station

In this example, the values for, Tw, FCP and E for a year are determined to be

Tw = Q 5 = 1050 × 10 9 BTU

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 27
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

2.1.7 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY OF A
COGENERATION, ENHANCED COMBINED CYCLE OR SPECIFIED-WASTE FUELLED ELECTRICAL GENERATION SYSTEM

FORM 2.1 Details of Cogeneration, Enhanced Combined Cycle or Specifed-Waste Fuelled Electrical Generation Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer, 4) date

Company Address of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 28
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems
PROTECTED-B
(when completed)
SCHEDULE 2.1–A Confguration and Heat Rate of Proposed Cogeneration, Enhanced Combined Cycle or
Specifed-Waste Fuelled Electrical Generation System

Type of Cogeneration, Enhanced Combined Cycle or (iii) Type and quantity of fossil fuel consumed in a year (specify units):
Specifed-Waste Fuelled Electrical Generation System
Energy Content
■ Gas Turbine System Type of Fuel Annual Consumption (HHV basis)

■ Steam Turbine System

■ Combined Cycle System

■ Cheng Cycle System

■ Reciprocating Engine System

■ Turbo Expander System

(iv) Type and quantity of thermal waste or specifed-waste fuel used in a year
(specify units):
■ Enhanced Combined Cycle System
Energy Content
■ Fuel Cell Equipment
Type of Fuel Annual Consumption (HHV basis)
■ Other Specify:

System or Equipment Output, Input and Heat Rate

(i) Rated output

Electrical (kW) Useful Heat (kJ/h or BTU/h)

(ii) Indicate boiler confguration (if applicable): (v) Show your calculations and indicate the basis for attaining the heat rate required
in Class 43.1 or 43.2—see sections 2.1.5 and 2.1.6 of the 2019 edition of the
■ Direct Fired Technical Guide to Class 43.1 and 43.2 for details of the heat rate requirements
and the procedure for calculating heat rates (attach a spreadsheet with
■ Heat Exchanger
calculations if available):
■ Other (specify)

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 29
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

2.1.8 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.1 Cogeneration, Enhanced Combined Cycle or Specifed-Waste Fuelled Electrical Generation Systems

Number Typical Capital Cost

1 Construction of working platforms that are not an integral part of a building or other structure.

2 Purchase and installation of compressed air system for equipment controls and instrumentation including compressor, dryer,
controls and instrumentation.

3 Purchase and installation of combustion turbine(s) or engine(s) and ancillary equipment such as combustion air supply, fuel compression,
control, instrumentation, cooling and lubrication equipment.

4 Purchase and installation of steam boiler(s) and ancillary equipment such as combustion air supply, fuel-handling equipment that
upgrades the combustible portion of the fuel, boiler controls, ash elimination equipment, instrumentation and safety equipment.

5 Purchase and installation of steam turbine(s) or expander generator(s) and ancillary equipment such as gland, control, instrumentation
and lubrication equipment.

6 Purchase and installation of electrical generator(s) and ancillary equipment such as controls and instrumentation and equipment for
the following: electric power control (i.e., phase synchronization, voltage regulation and frequency control), cooling, lubrication, fire
protection and acoustic protection.

7 Purchase and installation of power transformer(s).

8 Purchase and installation of HRSG or thermal waste recovery equipment and ancillary equipment such as duct work, controls
and instrumentation.

9 Purchase and installation of duct burners and ancillary equipment such as controls and instrumentation.

10 Purchase and installation of boiler feedwater or working fuid systems including chemical treatment, storage tanks and
de-aeration facilities.

11 Purchase and installation of steam condensate or working fuid return system.

12 Purchase and installation of eligible fuel or thermal waste piping including meters, instrumentation and controls from utility or thermal
waste source to boiler, turbine, engine, duct burners, heat recovery equipment or expander.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 30
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

2.1.9 SCHEMATICS OF QUALIFYING SYSTEMS ECG-4 Eligible electrical energy generation property includes generators and
equipment used at the first level of power transformation. The first level of
Some of the common types of qualifying systems that can be used to generate transformation includes equipment used for phase synchronization and
electrical energy or electrical energy and heat with fossil fuels or eligible waste voltage regulation. After the first level of transformation, generation stops,
fuels are shown in the schematics below. and the electricity is ready for use (e.g., ready to be put on transmission
lines). Typically, the eligible system boundary for electrical energy
When determining heat rates, a taxpayer should choose the schematic that generation equipment is located after the first level of transformation
best depicts the entire system in which their property is installed. Components at isolation switches that allow a utility to lock out a generating plant’s
of a recognized system cannot be considered in isolation when determining the power production.
heat rate because, depending on the treatment of energy inputs and outputs, a
component of a system can have a much lower heat rate than the overall system. ECG-5 The eligible portion of a heat distribution pipeline system includes piping
For example, where a taxpayer owns components of a combined cycle system from the eligible heat generating equipment to the main shut-off valve,
that is shown in schematic ECG 2.1.10, the taxpayer must use that schematic interface with the end-use system or change in ownership of the pipeline,
when determining the heat rate. The taxpayer cannot, for heat rate calculation whichever is first.
purposes, subdivide the combined cycle system into its component parts, such as
a gas turbine generator as shown in schematic ECG 2.1.1 and a thermal waste to ECG-6 Eligible components of boiler feedwater systems include components that
electricity system as shown in schematic TWE 2.2.2. are necessary to treat condensate, return water, or make-up water to the
water quality standards required by the boiler as well as components that
are necessary to supply feedwater to the boiler at the boiler inlet pressure.
2.1.9.1 Key to Notes on Schematics of Cogeneration, Enhanced The system boundary for the condensate, return water or make-up water
Combined Cycle or Specifed-Waste Fuelled Electrical piping is located at the main shut-off valves, boiler room walls, or change
Generation Systems in ownership of the piping, whichever is first.
ECG-1 For eligible properties, see Section 2.1.2 of this Guide. ECG-7 Equipment used primarily to reject heat, such as condensers, cooling
towers and similar equipment is ineligible.
ECG-2 For ineligible properties, see Section 2.1.3 of this Guide.
ECG-8 In systems that use specified-waste fuels to generate electrical energy or
ECG-3 The fossil fuel supply line downstream of a main utility shut-off valve of
electrical energy and useful heat, the equipment used to pre-process the
electrical energy or steam generating equipment is eligible property if
waste fuel is eligible if the purpose of the equipment is to upgrade the
the supply line is dedicated to a qualifying system. Otherwise, the eligible
combustible portion of the fuel through processes such as shredding,
system boundary for a fossil fuel supply line is considered to be at the
hogging, compacting, drying or gasifying.
point at which fuel enters the energy conversion unit.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 31
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.1 Natural Gas-Fired Turbine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE NATURAL GAS-FIRED TURBINE

SYSTEM-COGENERATION MODE

DWG. No. ECG 2.1.1 2013-11-28

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 32
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.2 Petroleum-Fired Gas Turbine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE PETROLEUM-FIRED GAS TURBINE

SYSTEM-COGENERATION MODE

DWG. No. ECG 2.1.2 2013-11-28

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 33
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.3 Natural Gas-Fired Steam Turbine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE NATURAL gas -fired steam tur bine

SYSTEM-COGENERATION MODE

DWG No. ECG 2.1.3 2013-11-28

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 34
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.4 Petroleum-Fired Steam Turbine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE petroleum -fire d STEAM TURBINE

SYSTEM-COGENERATION MODE

dwg No. ECG 2.1.4 2013-11-28

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 35
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.5 Coal-Fired Steam Turbine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE COAL-FIRED STEAM TURBINE

SYSTEM-COGENERATION MODE

dwg No. ECG 2.1.5 2013-11-28

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 36
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.6 Wood Waste-Fired Steam Turbine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

title woo d wast e -fire d steam tur bine

SYSTEM-COGENERATION MODE

DWG No. ECG 2.1.6 2013-11-28

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 37
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.7 Combination of Wood Waste and Natural Gas-Fired Systems

SCHEMATIC FOR CLASS 43.1 AND 43.2

title COMBINATION OF WOOD WASTE AND

NATURAL GAS-FIRED SYSTEMS

dwg No. ECG 2.1.7 2013-11-28

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 38
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.8 Municipal Waste-Fired Steam Turbine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

title municip al wast e -fir ed stea m tur bine

SYSTEM-COGENERATION MODE

DWG No. ECG 2.1.8 2013-11-28

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 39
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.9 Landfll Gas or Digester Gas-Fired Steam Turbine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

title LANDFILL GAS OR DIGESTER-GAS FIRED STEAM

TURBINE SYSTEM-COGENERATION MODE

dwg No. ECG 2.1.9 2013-11-28

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 40
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.10 Natural Gas-Fired Combined Cycle—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

title NATURAL GAS-FIRED COMBINED

CYCLE-COGENERATION MODE

DWG. No. ECG 2.1.10 2013-11-28

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 41
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.11 Petroleum-Fired Combined Cycle—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

title PETROLEUM-FIRED COMBINED

CYCLE-COGENERATION MODE

DWG. No. ECG 2.1.11 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 42
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.12 Integrated Coal Gasifcation Combined Cycle—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

title int egra ted coal gasif icat ion

COMBINED CYCLE-COGENERATION MODE

DWG. No. ECG 2.1.12 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 43
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.13 Natural Gas-Fired Reciprocating Engine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

title natu ral gas -fire d rec iproc atin g

ENGINE SYSTEM-COGENERATION MODE

dwg . No. ECG 2.1.13 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 44
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.14 Petroleum-Fired Reciprocating Engine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

title petroleu m-fire d recip roca ting

ENGINE SYSTEM-COGENERATION MODE

DWG. No. ECG 2.1.14 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 45
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.15 Landfll or Digester Gas-Fired Reciprocating Engine System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

title LANDFILL OR DIGESTER GAS-FIRED

RECIPROCATING ENGINE SYSTEM-COGENERATION MODE

DWG. No. ECG 2.1.15 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 46
 2.1 Cogeneration and Specified-Waste Fuelled Electrical Generation Systems

ECG 2.1.16 Enhanced Combined Cycle for Electrical Generation

SCHEMATIC FOR CLASS 43.1 AND 43.2

title enha nced comb ined cyc le for

ELECTRICAL GENERATION

dwg . No. ECG 2.1.16 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 47
 2.2 Thermal Waste Electrical Generation Equipment

CONTENTS SCHEMATICS

2.2.1 Thermal Waste Electrical Generation Equipment ............................... 49 TWE 2.2.1 Electrical Energy Generation from Thermal Waste—
Engine Heat Recovery...................................................................54
2.2.2 Eligible Properties ................................................................................ 49
TWE 2.2.2 Electrical Energy Generation from Thermal Waste—
2.2.3 Ineligible Properties ............................................................................. 49
Gas Turbine Heat Recovery ..........................................................55
2.2.4 Application for Technical Opinion with Respect to Class 43.1
TWE 2.2.3 Electrical Energy Generation from Thermal Waste—
or 43.2 Eligibility of Thermal Waste Electrical Generation
Kalina Cycle...................................................................................56
Equipment ............................................................................................ 50
TWE 2.2.4 Electrical Energy Generation from Thermal Waste—
2.2.5 Capital Costs Typically Included in Class 43.1 or 43.2 ....................... 52
Stirling Engine Generator ..............................................................57
2.2.6 Schematics of Qualifying Equipment .................................................. 53

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 48
 2.2 Thermal Waste Electrical Generation Equipment

2.2.1 THERMAL WASTE ELECTRICAL 2.2.3 INELIGIBLE PROPERTIES

GENERATION EQUIPMENT
Ineligible properties for thermal waste electrical generation equipment include
Thermal waste electrical generation equipment (described in paragraphs (a), the following:
(b) and subparagraph (c)(iii) of Class 43.1) includes equipment that is used to
generate electrical energy in a process all or substantially all of the energy
• buildings or other structures;
input of which is thermal waste, other than: • heat rejection equipment;

• equipment that uses heat from a gas turbine in the first stage of a combined • transmission and distribution equipment;
cycle system; and
and • equipment that uses CFCs or HCFCs.
• equipment that, on the date of its acquisition, uses chlorofuorocarbons
(CFCs) or hydrochlorofuorocarbons (HCFCs). Equipment in the second stage of a combined cycle process that generates
electrical energy from heat recovered from the exhaust gases of a gas turbine
in the first stage of a combined cycle process is not eligible as thermal waste
2.2.2 ELIGIBLE PROPERTIES electrical generation equipment. However, combined cycle systems that use the
heat in the gases exhausted by a gas turbine in the first stage of a combined cycle
Eligible properties for thermal waste electrical generation equipment include system or a gas turbine in a natural gas compressor system to generate electrical
the following: energy can qualify for inclusion in Class 43.1 or 43.2 provided they meet the
designated heat rate for such systems as discussed in Section 2.1 of this Guide.
• heat recovery equipment (see Section 2.5);
• electrical generating equipment (e.g., steam turbine generators, expander Equipment that on the date of its acquisition uses working fuids that are CFCs
generators, Stirling engine generators); or HCFCs (within the meaning assigned by the Ozone-Depleting Substances
Regulations, 1998, made under the Canadian Environmental Protection
• control, working fuid, feedwater and condensate equipment;
Act, 1999) is not eligible.
and
• other ancillary equipment.
Note: Thermal waste electrical generation equipment included in Class 43.1 or
43.2 is an eligible source of electrical energy for electrical energy storage
equipment (see section 2.19).

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 49
 2.2 Thermal Waste Electrical Generation Equipment

2.2.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF THERMAL WASTE ELECTRICAL GENERATION EQUIPMENT

FORM 2.2 Details of Thermal Waste Electrical Generation Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 50
 2.2 Thermal Waste Electrical Generation Equipment

SCHEDULE 2.2–A Confguration of Proposed Thermal Waste Electrical Generation Equipment

Type of thermal waste electrical energy generation equipment (iii) Will any fossil fuel be burned to generate heat to supplement the thermal
waste used? Yes ■ No ■
■ Rankine Cycle (Steam Turbine Cycle)
If “Yes” complete the following indicating the units:
Energy Content
■ Organic Rankine Cycle
Type of Fossil Fuel Annual Consumption (HHV basis)
■ Kalina Cycle

■ Stirling Engine

■ Other Specify:

Equipment output, thermal waste input and fuels used

(iv) Will any waste fuel be burned to generate heat to supplement the thermal
(i) Rated output of the electrical energy generator: waste used? Yes ■ No ■
If “Yes” complete the following indicating the units:
kW
Energy Content
(ii) Describe the thermal waste source and estimate the amount used in kJ or BTU on Type of Waste Fuel Annual Consumption (HHV basis)
an annual basis: 1

(v) Indicate the working fuid(s) that will be used in the electrical energy
generation equipment: 2

1 To qualify as thermal waste electrical energy generation equipment, substantially all (i.e., typically
90 percent or more) of the thermal energy input must be thermal waste, and less than 10 percent
of the energy input may be generated from the direct combustion of fossil or waste fuels. 2 Electrical energy generation equipment that on the date of its acquisition uses working fuids
Equipment that uses less than 90 percent thermal waste is subject to the heat rate requirements that are CFCs or HCFCs, within the meaning assigned by the Ozone-Depleting Substances
discussed in Section 2.1 of this Guide. Regulations, 1998, made under the Canadian Environmental Protection Act, 1999 is not eligible.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 51
 2.2 Thermal Waste Electrical Generation Equipment

2.2.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.2 Thermal Waste Electrical Generation Equipment

Number Typical Capital Cost

1 Construction of working platforms that are not an integral part of a building or other structure.

2 Purchase and installation of compressed air system for equipment controls and instrumentation including compressor, dryer, controls
and instrumentation.

3 Purchase and installation of turbine, expander, or heat engine(s) and ancillary equipment such as gland, control, instrumentation and
lubrication systems.

4 Purchase and installation of electrical generator(s) and ancillary equipment such as controls and instrumentation and equipment for the
following: electric power control (i.e., phase synchronization, voltage regulation and frequency control), cooling, lubrication, fire protection
and acoustic protection.

5 Purchase and installation of power transformer(s).

6 Purchase and installation of thermal waste recovery equipment and ancillary equipment such as duct work, working fuid piping, controls
and instrumentation.

7 Purchase and installation of feedwater or working fuid systems including chemical treatment, storage tanks and de-aeration facilities.

8 Purchase and installation of condensate or working fuid return system.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 52
 2.2 Thermal Waste Electrical Generation Equipment

2.2.6 SCHEMATICS OF QUALIFYING EQUIPMENT

Some of the common configurations of qualifying equipment that can be used to
generate electrical energy from thermal waste are illustrated in the schematics below.

2.2.6.1 Key to Notes on Schematics of Thermal Waste Electrical

Generation Equipment

TWE-1 For eligible properties, see Section 2.2.2 of this Guide.

TWE-2 For ineligible properties, see Section 2.2.3 of this Guide.

TWE-3 Eligible electrical energy generation property includes generators and

equipment used at the first level of power transformation. The first level of
transformation includes equipment used for phase synchronization and
voltage regulation. After the first level of transformation, generation stops,
and the electricity is ready for use (e.g., ready to be put on transmission
lines). Typically, the eligible system boundary for electrical energy generation
equipment is located after the first level of transformation at isolation
switches that allow a utility to lock out a generating plant’s power
production.

TWE-4 Equipment used primarily to reject heat, such as condensers, cooling

towers and similar equipment, is ineligible.

TWE-5 Equipment that, on the date of its acquisition, uses working fuids that
are CFCs or HCFCs is not eligible.

TWE-6 Equipment that generates electrical energy from the heat in the
exhaust gases of a gas turbine generator that is part of a combined
cycle system is not considered to be thermal waste electrical generation
equipment. Such equipment may however qualify as cogeneration
or specified-waste fuelled electrical generation equipment if it meets
the designated heat rates for such equipment.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 53
 2.2 Thermal Waste Electrical Generation Equipment

TWE 2.2.1 Electrical Energy Generation from Thermal Waste—Engine Heat Recovery

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE elec trica l energ y generat ion fr om

THERMAL WASTE-ENGINE HEAT RECOVERY

DWG. No. TWE 2.2.1 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 54
 2.2 Thermal Waste Electrical Generation Equipment

TWE 2.2.2 Electrical Energy Generation from Thermal Waste—Gas Turbine Heat Recovery

SCHEMATIC FOR CLASS 43.1 AND 43.2

title ELECTRICAL ENERGY GENERATION FROM

THERMAL WASTE-GAS TURBINE HEAT RECOVERY

DWG. No. TWE 2.2.2 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 55
 2.2 Thermal Waste Electrical Generation Equipment

TWE 2.2.3 Electrical Energy Generation from Thermal Waste—Kalina Cycle

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE elec trica l energ y generat ion fr om

THERMAL WASTE-KALINA CYCLE

DWG. No. TWE 2.2.3 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 56
 2.2 Thermal Waste Electrical Generation Equipment

TWE 2.2.4 Electrical Energy Generation from Thermal Waste—Stirling Engine Generator

SCHEMATIC FOR CLASS 43.1 AND 43.2

title ELECTRICAL ENERGY GENERATION FROM

THERMAL WASTE-STIRLING ENGINE GENERATOR

DWG. No. TWE 2.2.4 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 57
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

CONTENTS 2.3.6 Capital Costs Typically Included in Class 43.1 or 43.2 ....................... 64
2.3.7 Schematics of Qualifying Equipment and Systems ............................ 65
2.3.1 Active Solar Heating Equipment and Ground-Source Heat
Pump Systems ..................................................................................... 59 SCHEMATICS
2.3.2 Eligible Properties ................................................................................ 59
2.3.3 Ineligible Properties ............................................................................. 59 ASE 2.3.1 Active Solar Heating Equipment—Solar Water Heating ...............66

2.3.4 Types of Active Solar Heating Equipment and Ground-Source ASE 2.3.2 Active Solar Heating Equipment with Seasonal Storage .............67
Heat Pump Systems ............................................................................ 60 ASE 2.3.3 Active Solar Heating Equipment—Air Heating Solar Collector ....68
2.3.5 Application for a Technical Opinion with Respect to Class 43.1 ASE 2.3.4 Ground-Source Heat Pump System—Horizontal Closed-Loop ..69
or 43.2 Eligibility of Active Solar Heating Equipment or a
ASE 2.3.5 Ground-Source Heat Pump System—Vertical Closed-Loop .......70
Ground-Source Heat Pump System.................................................... 61
ASE 2.3.6 Ground-Source Heat Pump System—Open Groundwater Loop .....71

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 58
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

2.3.1 ACTIVE SOLAR HEATING EQUIPMENT AND For both:

GROUND-SOURCE HEAT PUMP SYSTEMS • energy conversion equipment;
Active solar heating equipment and ground-source heat pump systems • thermal energy storage equipment;
(described in clause (d)(i)(A) of Class 43.1) includes property that is used
primarily for the purpose of heating an actively circulated liquid or gas.
• control equipment and ancillary equipment, including valves, meters
and pumps;
This category of equipment includes:
and
• active solar heating equipment (subclause (d)(i)(A)(I) of Class 43.1); • equipment designed to interface with other heating or cooling equipment.
or Note: Active solar heating equipment and ground-source heat pump systems
included in Class 43.1 or 43.2 are eligible sources of thermal energy for
• equipment that is part of a ground-source heat pump system that transfers
district energy systems/equipment (see section 2.16).
heat to or from the ground or groundwater and that, at the time of installation,
meets the standards set by the Canadian Standards Association for the design
and installation of earth energy systems (subclause (d)(i)(A)(II) of Class 43.1). 2.3.3 INELIGIBLE PROPERTIES
Ineligible properties for active solar heating equipment and ground-source heat
2.3.2 ELIGIBLE PROPERTIES pump systems include the following:

Eligible properties for active solar heating and ground-source heat pump systems • equipment that provides back-up for the property described in Section 2.3.2 above;
include the following: • a building or part of a building (other than an active solar collector that is integrated
For qualifying active solar heating equipment: into a building);
• equipment that distributes heated or cooled air or water within a building;
• above-ground solar energy collectors;
• equipment that is part of a system that transfers heat to and from surface
and
water, such as a river, a lake or an ocean;
• solar water heaters. • equipment that is part of a ground-source heat pump that does not meet
the standards set by the Canadian Standards Association for the design
For qualifying ground-source heat pump systems:
and installation of earth-energy systems;
• heat pumps and ancillary equipment; and
and • equipment used to heat water for use in a swimming pool.
• piping (including above and below-ground piping and the costs of drilling
a well or trenching for the purpose of installing that piping).

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 59
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

2.3.4 TYPES OF ACTIVE SOLAR HEATING EQUIPMENT Ground-source heat pump systems are commonly divided into two categories
AND GROUND-SOURCE HEAT PUMP SYSTEMS known as open-loop or closed-loop systems:

Further to the description of eligible and ineligible property above, the following Open-loop ground-source heat pump systems extract heat from ground-
explains some of the terminology used in respect of solar heating equipment water that is pumped from a supply well. After the groundwater passes through
and ground-source heat pump systems. a heat exchanger in a heat pump where the heat is extracted, it is returned to a
recharge well. Open-loop systems that extract heat from surface water that is
Active solar heating equipment, as opposed to passive solar heating equipment, pumped from streams, lakes or oceans are not eligible for inclusion in Class 43.1
refers to equipment that uses a liquid or gas to transfer heat—collected from or 43.2.
solar energy in solar collectors—to solar water-heaters or solar energy conversion
equipment. The liquid or gas in active solar heating equipment is actively circulated Closed-loop ground-source heat pump systems extract heat from a mixture
in process piping or ductwork with a pump or blower. Solar energy conversion of water and antifreeze (sometimes referred to as heat transfer thermal fuid) that
equipment, where required, transfers heat from the liquid or gas circulated through is circulated through continuous loops of pipe buried in the ground. Closed-loop
solar collectors to a secondary liquid or gas that has characteristics suitable for an systems that extract heat from thermal fuid circulated through continuous loops
end-user’s process. In active solar heating equipment, where a liquid is circulated of pipe immersed in bodies of surface water are not eligible for inclusion in
through the collectors, the liquid must be a solution that will not freeze during Class 43.1 or 43.2.
winter operation.
Depending on the orientation and depth of pipes used to extract thermal energy
Solar collectors absorb solar energy, transform the solar energy into heat and from the ground, closed-loop ground-source heat pump systems are classified
transfer the heat to a liquid or gas actively circulated through or over the absorber as horizontal- or vertical-loop systems.
of the collector. For the purposes of Class 43.1 and 43.2, solar collectors include:
Horizontal-loop ground-source heat pump systems use underground
fat plate, evacuated tube and air heating (e.g., trombe wall) designs that may or
pipes that are installed predominantly in a horizontal orientation, typically
may not be glazed. Solar collectors may be free-standing, mounted on the roofs or
in trenches that are excavated and backfilled from the soil surface. See
walls of buildings, or integrated into roofs or walls of a building; however a building
drawing ASE 2.3.4 below.
itself or an addition to a building is not viewed as a solar collector.
Vertical-loop ground-source heat pump systems use underground pipes
Passive solar heating equipment (e.g., a masonry wall installed to absorb solar
that are installed predominantly in a vertical orientation. Typically the pipes are
energy) does not use any mechanical equipment to actively transfer solar energy
installed and sealed in boreholes that extend more than 10 metres below the
from where it is absorbed to where it is used. Passive solar equipment is generally
soil surface. See drawing ASE 2.3.5 below.
integrated into building components and is therefore not eligible for inclusion in
Class 43.1 or 43.2.

Ground-source heat pump systems (also known as earth energy systems) use
the ground as a solar energy collector and a heat pump to extract and convert
thermal energy from the ground into useful heat. Ground-source heat pump systems
may also be used to transfer excessive solar energy gains to the ground to provide
cooling and to store solar energy for reuse during the heating season.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 60
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

2.3.5 APPLICATION FOR A TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF ACTIVE SOLAR HEATING EQUIPMENT OR A GROUND-SOURCE HEAT PUMP SYSTEM

FORM 2.3 Details of Active Solar Heating or Ground-Source Heat Pump Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A or B as per the following pages.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 61
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

SCHEDULE 2.3-A Confguration of Proposed Active Solar Heating Equipment

Active Solar Heating Equipment (iii) Indicate how the collected solar energy will be used:

(i) Indicate type of active solar collector:

■ Flat Plate (iv) Indicate the active surface area of collectors:

■ Evacuated Tube

■ Air Heating (v) Provide details of the solar collector mounting:

■ Other (specify)

(ii) Indicate the type of transfer medium: (vi) Indicate the type of storage equipment (if applicable):

■ Air

■ Liquid (specify)

■ Other (specify)

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 62
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

SCHEDULE 2.3-B Confguration of Proposed Ground-Source Heat Pump System

Ground-Source Heat Pump System (v) If closed-loop, indicate the working fuid circulated through the loops:

(i) Check the appropriate system type:

■ Horizontal Closed-loop (vi) If open-loop, provide details of how the groundwater will be extracted and recharged:

■ Vertical Closed-loop

■ Open-loop

■ Other (specify) (vii) Indicate the type of refrigerant used in the heat pump unit:

(ii) Indicate how the system is to be used: (viii) Will the installed system meet Canadian Standards Association (CSA) standards
for the design and installation of earth-energy systems?
■ Heating
■ Yes ■ No
■ Cooling
If yes, indicate the CSA No.
■ Heating and Cooling
If no, explain why not.
(iii) If horizontal closed-loop, provide a map showing the layout of loops and indicate:

Depth of loops:
(ix) Are borehole logs available for the wells drilled for the installation?
Total length of loops:
■ Yes
(iv) If vertical closed-loop, provide a map showing the layout of boreholes and indicate:
■ No
Depth of boreholes:
■ Not Applicable
Total length of boreholes:

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 63
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

2.3.6 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

Active Solar Heating Equipment Ground-source Heat Pump Systems

Number Typical Capital Cost Number Typical Capital Cost

1 Fabrication or purchase and installation of solar collector 1 Excavation for installation of horizontal collector lines
support structures (e.g., foundations, anchors, mounting and headers.
supports and other structures).
2 Purchase and installation of horizontal collector lines
2 Purchase and installation of solar wall(s) or collectors and headers.
(e.g., panels, modules and related equipment).
3 Drilling of vertical borehole(s) and excavation for installation
3 Purchase and installation of working fuid ducting or circulation of headers.
system(s) (e.g., ducts or pipes from solar wall or collector to
Heating Ventilating and Air Conditioning [HVAC] equipment 4 Purchase and installation of borehole heat exchanger(s) and
or water heating equipment). header lines.

4 Purchase and installation of fans, blowers or pumps complete 5 Drilling of supply and recharge wells for open-loop systems.
with drives and controls.
6 Purchase and installation of well points and supply and
5 Purchase and installation of heat exchangers and heat recharge piping for open-loop systems.
storage system(s).
7 Purchase and installation of heat pumps and thermal working
6 Purchase and installation of controls, safety and freeze fuid pumps complete with controls and drives.
protection equipment.
8 Pressure testing and fushing of closed-loop systems.
7 Pressure testing of piping and fushing of system.
9 Purchase and installation of working fuid piping, charging and
circulation systems.

10 Purchase and installation of heat exchangers and heat storage

systems to interface with other heating or cooling equipment.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 64
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

2.3.7 SCHEMATICS OF QUALIFYING EQUIPMENT

AND SYSTEMS
Typical configurations of qualifying active solar heating equipment or
ground-source heat pump systems are shown in the schematics below.

2.3.7.1 Key to Notes on Schematics for Active Solar Heating Equipment

and Ground-Source Heat Pump Systems

ASE-1 For eligible properties, see Section 2.3.2 of this Guide.

ASE-2 For ineligible properties, see Section 2.3.3 of this Guide.

ASE-3 Solar storage tanks may include provision for addition of auxiliary heat
in the top part of highly stratified tanks.

ASE-4 Double-walled heat exchangers may be included if they are required for
potable water service by local authorities.

ASE-5 Equipment that distributes heated or cooled air or water in a building is

not eligible.

ASE-6 Buildings or parts of buildings (other than a solar collector that is not a
window and that is integrated into a building) are not eligible.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 65
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

ASE 2.3.1 Active Solar Heating Equipment—Solar Water Heating

SCHEMATIC FOR CLASS 43.1 AND 43.2

title act ive sola r heati ng

EQUIPMENT-SOLAR WATER HEATING

DWG. No. ASE 2.3.1 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 66
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

ASE 2.3.2 Active Solar Heating Equipment with Seasonal Storage

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE ACTIVE SOLAR HEATING EQUIPMENT

WITH SEASONAL STORAGE

DWG. No. ASE 2.3.2 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 67
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

ASE 2.3.3 Active Solar Heating Equipment—Air Heating Solar Collector

SCHEMATIC FOR CLASS 43.1 AND 43.2

title ACTIVE SOLAR HEATING

EQUIPMENT-AIR HEATING SOLAR COLLECTOR

DWG. No. ASE 2.3.3 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 68
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

ASE 2.3.4 Ground-Source Heat Pump System—Horizontal Closed-Loop

SCHEMATIC FOR CLASS 43.1 AND 43.2

title ground -sou rce heat pum p

SYSTEM-HORIZONTAL CLOSED-LOOP

DWG. No. ASE 2.3.4 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 69
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

ASE 2.3.5 Ground-Source Heat Pump System—Vertical Closed-Loop

SCHEMATIC FOR CLASS 43.1 AND 43.2

title ground -sou rce heat pum p

SYSTEM-VERTICAL CLOSED-LOOP

DWG. No. ASE 2.3.5 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 70
 2.3 Active Solar Heating Equipment and Ground-Source Heat Pump Systems

ASE 2.3.6 Ground-Source Heat Pump System—Open Groundwater Loop

SCHEMATIC FOR CLASS 43.1 AND 43.2

title groun d -sou rce heat pum p

SYSTEM-OPEN GROUNDWATER LOOP

DWG. No. ASE 2.3.6 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 71
 2.4 Small-Scale Hydro-Electric Installations

CONTENTS SCHEMATICS

2.4.1 Small-Scale Hydro-Electric Installations............................................. 73 SHI 2.4.1 Small-Scale Hydro-Electric Installation........................................78

2.4.2 Eligible Properties ................................................................................ 73
2.4.3 Ineligible Properties ............................................................................. 73
2.4.4 Application for a Technical Opinion with Respect to Class 43.1
or 43.2 Eligibility of a Small-Scale Hydro-Electric Installation............ 74
2.4.5 Capital Costs Typically Included in Class 43.1 or 43.2 ....................... 76
2.4.6 Schematic of Qualifying Installations .................................................. 77

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 72
 2.4 Small-Scale Hydro-Electric Installations

2.4.1 SMALL-SCALE HYDRO-ELECTRIC 2.4.2 ELIGIBLE PROPERTIES

INSTALLATIONS Eligible properties for qualifying small-scale hydro-electric installations
Small-scale hydro-electric installations (described in subparagraphs (d)(ii) include the following:
and d(iii.1) of Class 43.1) include installations with a rated capacity at the
• the electrical energy generating equipment and plant, including
installation site not exceeding 50 megawatts (MW).
generators, water turbines, step-up transformers and structures;
The capital cost of additions or alterations to an existing small-scale • the related canal, dam, dyke, overfow spillway and penstock;
hydro-electric installation may be included in Class 43.1 or 43.2 provided
the additions or alterations increase the generating capacity of the
• fishways and fish bypasses;
installation, the additions or alterations involve eligible property for this • a powerhouse complete with electrical generating equipment and
category (see Section 2.4.2 below) and the resulting rated capacity of related ancillary equipment;
the electrical generator or generators at the installation site does not
• control equipment, including devices for phase synchronization and
exceed 50 MW.
voltage regulation;
Note: and

Where the capacity of a site is developed in stages, the individual • transmission lines and related equipment from the electrical energy generating
stages may be eligible provided that the total capacity of the completed equipment up to the interface with the electrical grid or the isolation switch of
installation does not exceed a rated capacity of 50 MW. the local electrical utility, or up to the point where, on an annual basis, more than
75 percent of the electrical energy transmitted by the transmission equipment
Hydro-electric generation is generally considered to be generation from is electrical energy generated by the small-scale hydro-electric generating
falling water. For equipment that generates electrical energy from water- equipment.
current, tidal, or wave energy see Section 2.15 of this Guide.
Note: Small-scale hydroelectric installations included in Class 43.1 or 43.2 are
an eligible source of electrical energy for electrical energy storage
equipment (see section 2.19).

2.4.3 INELIGIBLE PROPERTIES

Properties that may be part of a qualifying small-scale hydro-electric system,
but are ineligible under this category include the following:

• electrical distribution systems;

• vehicles;
• telephone and related equipment;
and
• access roads, sidewalks, parking areas and other similar surface construction.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 73
 2.4 Small-Scale Hydro-Electric Installations

2.4.4 APPLICATION FOR A TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF A SMALL-SCALE HYDRO-ELECTRIC INSTALLATION

FORM 2.4 Details of Small-Scale Hydro-Electric Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 74
 2.4 Small-Scale Hydro-Electric Installations
PROTECTED-B
(when completed)
SCHEDULE 2.4-A Confguration of Proposed Small-Scale Hydro-Electric Installation

(i) Check appropriate description of the project. (vi) Describe the point of grid interconnection for the project including the voltage
and any special grid connection requirements that must be met.
■ New installation

■ Expansion of existing installation

Annual output of existing site: MWh

■ Upgrade of existing installation

Annual output of existing site: MWh (vii) Describe briefy the confguration of equipment from the generator(s) to the point
of grid interconnection and state the capacity of the equipment to transmit the
power to the point of interconnection2.
(ii) Date construction is to begin/began:

(iii) Planned maximum generating capacity upon completion of site development:

MWh
(viii) For projects where an existing small-scale hydro-electric installation will
(iv) Rated output in MW of all electrical energy generators at the site1: be upgraded, provide a narrative on separate pages describing the existing
(Include those presently in place, if any, as well as those planned. small-scale hydro-electric installation and the components to be upgraded.
Use an additional sheet if necessary.) Also provide data and calculations to estimate the increase in generation
capacity that can be expected from each upgrade.
Generator 1:

Generator 2:

Generator 3:

(v) Annual electrical energy generation expected from the site: MWh

2 To be eligible, on an annual basis, more than 75 percent of the electrical energy transmitted by
the transmission equipment must be electrical energy generated by the small-scale hydro-electric
1 Rated generating capacity of all generators at the installation site must not exceed 50 MW. generating equipment.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 75
 2.4 Small-Scale Hydro-Electric Installations

2.4.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.4 Small-Scale Hydro-Electric Installations

Number Typical Capital Cost

1 Construction of a dam with the following: level control facilities, overfow spillway, facilities for maintaining minimum river fow
requirements and mitigating environmental impact (e.g., fishways), trash racks, penstock and discharge canal.

2 Construction of a powerhouse with working platforms and installation of water fow control facilities (e.g., main control valve).

3 Purchase and installation of turbine(s) and ancillary equipment such as vane control system, controls and instrumentation, cooling
and lubrication systems.

4 Purchase and installation of equipment for instrumentation and control of the small-scale hydro-electric installation including hydraulic
power unit, governor, Programmable Logic Controller (PLC) and Supervisory Control and Data Acquisition (SCADA) systems.

5 Purchase and installation of electrical generating equipment and ancillary equipment such as controls and instrumentation and, systems
for the following: electric power control (i.e., phase synchronization, voltage regulation and frequency control), cooling, lubrication, over
or reverse current protection, over and under voltage protection, over and under frequency protection, lightning protection, fire protection
and acoustic protection.

6 Purchase and installation of power transformer(s).

7 Purchase and installation of electrical transmission line including switches and meters.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 76
 2.4 Small-Scale Hydro-Electric Installations

2.4.6 SCHEMATIC OF QUALIFYING INSTALLATIONS

Typical equipment in a qualifying small-scale hydro-electric installation is shown
in the schematic below.

2.4.6.1 Key to Notes on Schematic of Small-Scale Hydro-Electric

Installations

SHI-1 For eligible properties, see Section 2.4.2 of this Guide.

SHI-2 For ineligible properties, see Section 2.4.3 of this Guide.

SHI-3 Eligible electrical energy generation property includes generators and

equipment used at the first level of power transformation. The first level
of transformation includes equipment used for phase synchronization and
voltage regulation. After the first level of transformation, generation stops,
and the electricity is ready for use (e.g., ready to be put on transmission
lines). Typically, the eligible system boundary for electrical energy generation
equipment is located after the first level of transformation at isolation
switches that allow a utility to lock out a generating plant’s power
production.

SHI-4 Eligible small-scale hydro-electric installations are installations with

a rated generation capacity of the electrical energy generator or
generators at the site not exceeding 50 MW if the installation is
acquired after December 10, 2001.

SHI-5 Eligible transmission equipment is site specific and is dependent on

the electrical grid configuration near the site. In general, it includes
transmission lines (and related equipment) from the electrical energy
generating equipment up to the interface with the electrical grid or
the isolation switch of the local electrical utility, or up to the point
where, on an annual basis, more than 75 percent of the electrical
energy transmitted by the transmission equipment is electrical
energy generated by the small-scale hydro-electric generating
equipment, whichever point comes first.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 77
 2.4 Small-Scale Hydro-Electric Installations

SHI 2.4.1 Small-Scale Hydro-Electric Installation

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE SMALL-SCALE HYDRO-ELECTRIC INSTALLATION

DWG. No. SHI 2.4.1 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 78
 2.5 Heat Recovery Equipment

CONTENTS SCHEMATICS

2.5.1 Heat Recovery Equipment................................................................... 80 HRE 2.5.1 Heat Recovery Equipment ............................................................85
2.5.2 Eligible Properties ................................................................................ 80
2.5.3 Ineligible Properties ............................................................................. 80
2.5.4 Application for a Technical Opinion with Respect to Class 43.1
or 43.2 Eligibility of Heat Recovery Equipment................................... 81
2.5.5 Capital Costs Typically Included in Class 43.1 or 43.2 ....................... 83
2.5.6 Schematics of Qualifying Equipment .................................................. 84

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 79
 2.5 Heat Recovery Equipment

2.5.1 HEAT RECOVERY EQUIPMENT 2.5.2 ELIGIBLE PROPERTIES

Heat recovery equipment includes equipment that is used primarily for the Eligible properties for heat recovery equipment include the following:
purpose of conserving energy or reducing the requirement to acquire energy,
and, that recovers thermal waste generated by: • heat exchangers and other heat extraction devices;
• the portion of the heat transfer system (including piping, ducting and other
• an electrical generation or cogeneration system (subparagraph (a)(iii)
equipment) between the point of heat extraction and the interface with the
of Class 43.1);
end-use system, the first shut-off valve, or the boundary of ownership,
or whichever occurs first;
• an industrial process, other than an industrial process that generates • compressors used to upgrade low pressure steam, vapour or gas;
or processes electrical energy (subparagraph (d)(iv) of Class 43.1).
• waste heat boilers (sometimes referred to as HRSGs);
Note: and

Thermal waste is defined in subsection 1104(13) of the Regulations and in • ancillary equipment such as pumps, valves, fans, instruments and control panels.
the Glossary of Terms found in Section 3.0 of this Guide. Note: Heat recovery equipment included in Class 43.1 or 43.2 is an eligible
source of thermal energy for district energy systems/equipment (see
Heat recovery equipment described under this category may be part of
section 2.16).
a cogeneration and specified-waste fuelled electrical generation system
(see Section 2.1), part of thermal waste electrical generation equipment
(see Section 2.2) or equipment on its own. 2.5.3 INELIGIBLE PROPERTIES

The thermal waste recovered by heat recovery equipment must be reused Ineligible properties for heat recovery equipment include the following:
for productive purposes such as heating or cooling a plant or nearby buildings,
• property employed in reusing the recovered heat such as property that is part
or for electrical energy generation.
of the internal heating or cooling system of a building or electrical generating
Equipment for standard heat recycling and heat recovery in industrial equipment1;
processes such as boiler economizers, combustion air pre-heaters and • buildings;
steam turbine condensers is ineligible under this category.
and
Heat lost from building heating, ventilation or air conditioning processes
• equipment that recovers heat primarily to heat water for use in a swimming pool.
is not considered to be eligible thermal waste.

1 Whereas electrical generating equipment that uses heat recovered by the heat recovery
equipment described in subparagraph (d)(iv) of Class 43.1 is ineligible under subparagraph (d)(iv)
of Class 43.1, such equipment may be eligible under paragraphs (a) to (c) of Class 43.1.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 80
 2.5 Heat Recovery Equipment

2.5.4 APPLICATION FOR A TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF HEAT RECOVERY EQUIPMENT

FORM 2.5 Details of Heat Recovery Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 81
 2.5 Heat Recovery Equipment

SCHEDULE 2.5-A Confguration of Proposed Heat Recovery Equipment

(i) Describe the process or system involved and the present method of rejection (v) Describe the method of recovering thermal waste and the equipment used:
of thermal waste:

(vi) Indicate the process in which the recovered heat will be used:
(ii) Indicate if the thermal waste is available:

■ Continuously

■ Intermittently
(vii) Estimate the quantity of energy that will be input per year to recover the thermal
(iii) Estimate the quantity of thermal waste available per year and indicate the base waste and indicate the form of the energy input:
used for estimation (e.g., ambient temperature of 20°C):
Quantity of Energy
Quantity:
Form of Energy
Base:
(viii) Estimate the quantity of useful heat that will be output by the system per year:
(iv) Estimate the proportion of (iii) that can be recovered by the
equipment and that will be used for the purpose described in (vi): %

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 82
 2.5 Heat Recovery Equipment

2.5.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.5 Heat Recovery Equipment

Number Typical Capital Cost

1 Construction of working platforms that are not an integral part of a building or other structure.

2 Purchase and installation of equipment to extract thermal waste (e.g., heat exchangers, waste heat recovery boilers and ancillary
equipment such as controls and instrumentation) from an industrial process other than an industrial process that generates or
processes electrical energy.

3 Purchase and installation of equipment to upgrade thermal waste extracted from an industrial process (e.g., steam or vapour
compressors and heat pumps).

4 Purchase and installation of equipment to deliver recovered thermal waste ( e.g., steam, hot water, air, chilled water and thermal fuid)
to an end-user, including piping, pumps or blowers, drives, controls and instrumentation.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 83
 2.5 Heat Recovery Equipment

2.5.6 SCHEMATICS OF QUALIFYING EQUIPMENT

Typical configurations of equipment that would qualify as heat recovery equipment
are shown in the schematics below.

2.5.6.1 Key to Notes on Schematics of Heat Recovery Equipment

HRE-1 For eligible properties, see Section 2.5.2 of this Guide.

HRE-2 For ineligible properties, see Section 2.5.3 of this Guide.

HRE-3 Qualifying heat recovery equipment must be designed primarily to

conserve energy or reduce the requirement to acquire energy by
extracting thermal waste from an industrial process and upgrading
the thermal waste or transforming it such that it can be reused.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 84
 2.5 Heat Recovery Equipment

HRE 2.5.1 Heat Recovery Equipment

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE
HEAT RECOVERY EQUIPMENT

DWG. No. HRE 2.5.1 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 85
 2.6 Wind Energy Conversion Systems

CONTENTS SCHEMATICS

2.6.1 Wind Energy Conversion Systems ...................................................... 87 WES 2.6.1 Wind Energy Conversion System .................................................92
2.6.2 Eligible Properties ................................................................................ 87
2.6.3 Ineligible Properties ............................................................................. 87
2.6.4 Application for a Technical Opinion with Respect to Class 43.1
or 43.2 Eligibility of a Wind Energy Conversion System ..................... 88
2.6.5 Capital Costs Typically Included in Class 43.1 or 43.2 .......................90
2.6.6 Schematics of Qualifying Systems...................................................... 91

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 86
 2.6 Wind Energy Conversion Systems

2.6.1 WIND ENERGY CONVERSION SYSTEMS 2.6.3 INELIGIBLE PROPERTIES

Wind energy conversion systems (described in subparagraph (d)(v) of Ineligible properties for wind energy conversion systems include the following:
Class 43.1) include a fixed location device that is used primarily for the
purpose of converting wind energy into electrical energy. • distribution equipment;
• auxiliary electrical generating equipment (e.g., diesel engine-powered generator
Note:
sets, main electrical transfer switches or power bars);
Under subsection 1219(1) of the Regulations, expenses incurred for a “test • vehicles;
wind turbine” that is a wind energy conversion system may qualify as CRCE
• telephone and related equipment;
if the test wind turbine meets the criteria set out in subsection 1219(3). For
further information on test wind turbines, refer to the Technical Guide to and
Canadian Renewable and Conservation Expenses (CRCE).
• access roads, sidewalks, parking areas and other similar surface construction.

2.6.2 ELIGIBLE PROPERTIES

Eligible properties for wind energy conversion systems include the following:

• wind-driven turbines;
• electrical generating and related equipment, including control and power
conditioning equipment;
• support structures (e.g., foundations and towers);
• powerhouse (e.g., tower-mounted nacelle of wind turbine generators and
collector substation enclosures), complete with related ancillary equipment;
and
• transmission equipment.
Note: Wind energy conversion systems included in Class 43.1 or 43.2 are an
eligible source of electrical energy for electrical energy storage equipment
(see section 2.19).

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 87
 2.6 Wind Energy Conversion Systems

2.6.4 APPLICATION FOR A TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY OF
A WIND ENERGY CONVERSION SYSTEM

FORM 2.6 Details of Wind Energy Conversion Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 88
 2.6 Wind Energy Conversion Systems

SCHEDULE 2.6-A Confguration of Proposed Wind Energy Conversion System

(i) Date construction is to begin/began: (v) Describe briefy the confguration of the system, the ancillary equipment and
the power transmission to the local grid.
(ii) Planned maximum generating capacity upon completion of site development:

MWh

(iii) Rated output in MW of all wind-powered electrical generators at the site:

Turbine 1

Turbine 2
(vi) If battery storage equipment is to be used, explain the charging and AC/DC
Turbine 3 conversion systems that will be used and indicate the capacity of the batteries.

Turbine 4

Turbine 5

(Use additional sheet if necessary.)

(iv) Annual electrical energy output expected from the site: MWh

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 89
 2.6 Wind Energy Conversion Systems

2.6.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.6 Wind Energy Conversion Systems

Number Typical Capital Cost

1 Excavation for foundations and underground electrical collector and control wiring.

2 Installation of support structures (e.g., concrete foundations, guy wire supports, anchors and concrete platforms).

3 Purchase and installation of wind-driven turbine generator(s) with tower and nacelle and ancillary equipment, including the following:
blade pitch and yaw control system, lubrication system, cooling system, icing control system, power regulation equipment, transformer
to step up voltage to collector voltage levels, controls and instrumentation.

4 Purchase and installation of powerhouse (i.e., electrical collector substation) complete with fencing, equipment enclosures, switches,
central Supervisory Control and Data Acquisition (SCADA) system and ancillary equipment.

5 Purchase and installation of underground collector and control wiring.

6 Purchase and installation of power transformer(s) and central power control system for phase synchronization, voltage regulation and
frequency control.

7 Purchase and installation of electrical transmission line including switches and meters.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 90
 2.6 Wind Energy Conversion Systems

2.6.6 SCHEMATICS OF QUALIFYING SYSTEMS

A typical configuration of wind turbine generators and related equipment that would
qualify as a wind energy conversion system is shown in the schematic below.

2.6.6.1 Key to Notes on Schematic for a Wind Energy Conversion System

WES-1 For eligible properties, see Section 2.6.2 of this Guide.

WES-2 For ineligible properties, see Section 2.6.3 of this Guide.

WES-3 Eligible electrical energy generation property for a wind energy

conversion system includes one or more wind turbine generators
complete with turbine support structures and equipment to collect,
condition and transform the electrical energy produced by all wind
turbine generators in the system such that it may be placed on the
electrical grid through a single point of connection. Typically, the
eligible system boundary for a wind energy conversion system is
located at the isolation switch that allows a utility to lock out a wind
energy conversion system’s electrical energy production.

WES-4 Eligible transmission equipment is site specific and is dependent on

the electrical grid configuration near the site. In general it includes
transmission lines (and related equipment) from the electrical energy
generating equipment up to the interface with the electrical grid or
the isolation switch of the local electrical utility, or up to the point
where, on an annual basis, more than 75 percent of the electrical
energy transmitted by the transmission equipment is electrical energy
generated by the wind energy conversion system, whichever point
comes first.

WES-5 The cost of certain wind turbine generators installed at the site of a
planned wind energy conversion system project for the purpose of
testing the wind regime prior to the full build-out of the project may
qualify as CRCE. See the Technical Guide to Canadian Renewable
and Conservation Expenses (CRCE) for additional information.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 91
 2.6 Wind Energy Conversion Systems

WES 2.6.1 Wind Energy Conversion System

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE WIND ENERGY CONVERSION SYSTEM

DWG. No. WES 2.6.1 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 92
 2.7 Photovoltaic Electrical Generation Equipment

CONTENTS SCHEMATICS

2.7.1 Photovoltaic Electrical Generation Equipment.................................... 94 PVE 2.7.1 Photovoltaic Electrical Generation Equipment ..................98
2.7.2 Eligible Properties ................................................................................ 94
2.7.3 Ineligible Properties ............................................................................. 94
2.7.4 Application for a Technical Opinion with Respect to Class 43.1 or
43.2 Eligibility of Photovoltaic Electrical Generation Equipment ........ 95
2.7.5 Capital Costs Typically Included in Class 43.1 or 43.2 ....................... 97
2.7.6 Schematics of Qualifying Equipment .................................................. 97

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 93
 2.7 Photovoltaic Electrical Generation Equipment

2.7.1 PHOTOVOLTAIC ELECTRICAL GENERATION 2.7.3 INELIGIBLE PROPERTIES

EQUIPMENT
Ineligible properties for photovoltaic electrical generation equipment include
Photovoltaic electrical generation equipment (described in subparagraph (d)(vi) the following:
of Class 43.1) includes fixed location photovoltaic equipment that is used primarily
for the purpose of generating electrical energy from solar energy.
• distribution equipment;
• a building or part of a building other than a solar cell or module that is integrated
into a building;
2.7.2 ELIGIBLE PROPERTIES
• auxiliary electrical generating equipment (e.g., diesel engine-powered generator
Eligible properties for photovoltaic electrical generation equipment include sets, main electrical transfer switches or power bars);
the following: • vehicles;
• solar cells or modules, including a solar cell or module that is integrated • telephone and related equipment;
into a building;
and
• related equipment, including inverters, control and power conditioning • access roads, sidewalks, parking areas and other similar surface construction.
equipment;
• support structures for the solar array;
and
• transmission equipment.
Note: Photovoltaic electrical generation equipment included in Class 43.1 or
43.2 is an eligible source of electrical energy for electrical energy storage
equipment (see section 2.19).

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 94
 2.7 Photovoltaic Electrical Generation Equipment

2.7.4 APPLICATION FOR A TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF PHOTOVOLTAIC ELECTRICAL GENERATION EQUIPMENT

FORM 2.7 Details of Photovoltaic Electrical Generation Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 95
 2.7 Photovoltaic Electrical Generation Equipment

SCHEDULE 2.7-A Confguration of Proposed Photovoltaic Electrical Generation Equipment

(i) Indicate peak capacity of the equipment: kW (v) Indicate where appropriate:

Type of fuel displaced

(ii) Indicate active surface area of solar cells or modules:
Unit value of fuel displaced

Amount of fuel displaced per year

(iii) Describe the cell or module mounting arrangements:
Estimated annual savings

Percentage of annual energy requirements supplied by solar system

(vi) Include any other relevant data:

(iv) Indicate the type of storage equipment used (if applicable):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 96
 2.7 Photovoltaic Electrical Generation Equipment

2.7.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2.2

Project Cost Table 2.7 Photovoltaic Electrical Generation Equipment

Number Typical Capital Cost

1 Construction of working platforms that are not an integral part of a building or other structure.

2 Installation of support structures for photovoltaic modules (e.g., foundations, anchors, mounting frames for systems mounted on
the ground or mounting brackets and rails for systems mounted on a roof or wall).

3 Purchase and installation of solar photovoltaic array (e.g., cells, modules, panels and related equipment).

4 Purchase and installation of controls, power inverters, and power-conditioning equipment.

5 Purchase and installation of power transformer(s).

6 Purchase and installation of electrical transmission line, including switches and meters.

2.7.6 SCHEMATICS OF QUALIFYING EQUIPMENT PVE-4 Eligible transmission equipment is site specific and is dependent on
the electrical grid configuration near the site. In general, it includes
A typical configuration of solar cells or modules and related equipment that transmission lines (and related equipment) from the electrical energy
would qualify as photovoltaic equipment is shown in the schematic below. generating equipment up to the interface with the electrical grid or the
isolation switch of the local electrical utility, or up to the point where,
on an annual basis, more than 75 percent of the electrical energy
2.7.6.1 Key to Notes on Photovoltaic Electrical Generation
transmitted by the transmission equipment is electrical energy
Equipment Schematic
generated by the photovoltaic electrical generation equipment,
PVE-1 For eligible properties, see Section 2.7.2 of this Guide. whichever point comes first.

PVE-2 For ineligible properties, see Section 2.7.3 of this Guide.

PVE-3 Support structures and equipment to automatically orient photo-

voltaic panels toward the sun are eligible. Structures to mount and
orient photovoltaic panels on buildings are eligible but buildings
and modifications to buildings to support photovoltaic panels
are ineligible.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 97
 2.7 Photovoltaic Electrical Generation Equipment

PVE 2.7.1 Photovoltaic Electrical Generation Equipment

SCHEMATIC FOR CLASS 43.1 AND 43.2

title PHOTOVOLTAIC ELECTRICAL

GENERATION EQUIPMENT

DWG. No. PVE 2.7.1 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 98
 2.8 Geothermal Energy Equipment

CONTENTS SCHEMATICS

2.8.1 Geothermal Energy Equipment ......................................................... 100 GEE 2.8.1 Geothermal Energy System – Flash Steam
Electrical Generation ........................................................105
2.8.2 Eligible Properties .............................................................................. 100
GEE 2.8.2 Geothermal Energy System – Flash Steam
2.8.3 Ineligible Properties ........................................................................... 100
Cogeneration ....................................................................106
2.8.4 Application for Technical Opinion with Respect to Class 43.1 or
GEE 2.8.3 Geothermal Energy System – Binary Cycle
43.2 Eligibility of Geothermal Energy Equipment.............................. 101
Electrical Generation ........................................................107
2.8.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 103
2.8.6 Schematics of Qualifying Systems.................................................... 104

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 99
 2.8 Geothermal Electrical Generation Equipment

2.8.1 GEOTHERMAL ENERGY EQUIPMENT 2.8.3 INELIGIBLE PROPERTIES

Ineligible properties for geothermal electrical generation equipment include
Geothermal energy equipment (described in subparagraph (d)(vii) of the following:
Class 43.1) includes equipment used primarily for the purpose of generating
• buildings and structures or portions thereof, with the exception of working
electrical energy or heat energy, or both electrical and heat energy, solely from
platforms that primarily serve the eligible equipment;
geothermal energy.
• distribution equipment;
Note:
• back-up generating equipment (e.g., diesel engine-powered generator sets,
Under subsection 1219(1) of the Regulations, expenses incurred for the drilling main electrical transfer switches or power bars);
of a geothermal well or solely for the purpose of determining the extent and
• vehicles;
quality of a geothermal well may qualify as CRCE if at least 50% of the
depreciable property to be used in the project, determined by reference to its • telephone and related equipment;
capital cost, is eligible geothermal energy equipment. • equipment used to heat water for use in a swimming pool;
and
• access roads, sidewalks, parking areas and other similar surface construction.
2.8.2 ELIGIBLE PROPERTIES
Eligible properties for geothermal energy equipment include the following:

• piping (including above- or below-ground piping and the cost of completing a

production well (including wellhead and production string), or trenching, for the
purpose of installing that piping);
• pumps, heat exchangers, steam separators and ancillary equipment used to
collect geothermal energy;
• electrical generating equipment;
• transmission equipment;
and
• working platforms that primarily serve eligible equipment.
Note: Geothermal energy equipment included in Class 43.1 or 43.2 is an eligible
source of thermal energy for district energy systems/equipment (see
section 2.16) and an eligible source of electrical energy for electrical
energy storage equipment (see section 2.19).

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 100
 2.8 Geothermal Electrical Generation Equipment

2.8.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF GEOTHERMAL ENERGY EQUIPMENT

FORM 2.8 Details of Geothermal Energy Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 101
 2.8 Geothermal Electrical Generation Equipment

SCHEDULE 2.8-A Confguration of Proposed Geothermal Energy Equipment

(i) Indicate the depth of the geothermal aquifer, the temperature and pressure of the (vii) For a binary system, indicate the annual fow and energy content of the
aquifer, the number of wells for production and reinjection, the diameter of wells expansion fuid:
and the quality of the steam or water in the aquifer:
Working Fluid

Fluid Flow kg/yr or lb/yr

Enthalpy of Fluid kJ/kg or BTU/lb

(ii) Indicate the total geothermal energy resource capacity: MW
Heat Energy Generation
Electrical Energy Generation
(viii) Indicate heat energy generation equipment confguration:

(iii) Indicate electrical energy generation equipment confguration:

■ Flash Steam with Steam Turbine Generator

■ Binary with Expander Generator (ix) Rated heat output of the equipment: MW

■ Other (specify) (x) Planned annual heat energy generation: MWh

(xi) Indicate how the heat will be used:

(iv) Rated electrical output of the equipment: MW

(v) Planned annual electrical energy generation: MWh

(vi) For a fash steam system, indicate the annual steam fow and energy content
of steam delivered to the turbine(s):

Steam Flow kg/yr or lb/yr

Enthalpy of Steam kJ/kg or BTU/lb

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 102
 2.8 Geothermal Electrical Generation Equipment

2.8.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.8 Geothermal Energy Equipment

Number Typical Capital Cost

1 Installation of production string in completion of geothermal energy wells (the cost of drilling geothermal wells is eligible as CRCE).

2 Purchase and installation of wellhead equipment including separators, piping, silencers and controls.

3 Purchase and installation of geothermal energy gathering system including steam and water piping and controls.

4 Purchase and installation of heat cascading equipment including heat exchangers, binary unit and ancillary equipment used to collect
geothermal heat.

5 Construction of an emergency water pond.

6 Construction of working platforms that are not an integral part of a building or other structure.

7 Purchase and installation of compressed air system for equipment controls and instrumentation including compressor, dryer, controls
and instrumentation.

8 Purchase and installation of turbine(s) and ancillary controls and instrumentation, and cooling and lubrication equipment.

9 Purchase and installation of a heat exchanger for the transfer of geothermal energy to a secondary heating medium used to deliver
heat to end users.

10 Purchase and installation of steam treatment and condensate return system including ejector and vacuum system for non-condensable
gas ejection, hot well pumps, piping and associated controls.

11 Purchase and installation of generator(s) and ancillary equipment such as controls and instrumentation, systems for the following:
electric power control (e.g., phase synchronization, voltage regulation and frequency control), cooling, lubrication, fire protection and
acoustic protection.

12 Purchase and installation of power transformer(s).

13 Purchase and installation of electrical transmission line including switches and meters.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 103
 2.8 Geothermal Electrical Generation Equipment

2.8.6 SCHEMATICS OF QUALIFYING SYSTEMS

Typical components of geothermal systems that would qualify as geothermal
electrical generation equipment are shown in the schematics below.

2.8.6.1 Key to Notes on Schematics of Geothermal Energy Equipment

GEE-1 For eligible properties, see Section 2.8.2 of this Guide.

GEE-2 For ineligible properties, see Section 2.8.3 of this Guide.

GEE-3 Equipment used primarily to reject heat, such as condensers,

cooling towers and similar equipment, is ineligible.

GEE-4 Eligible transmission equipment is site specific and is dependent on the

electrical grid configuration near the site. In general, it includes
transmission lines (and related equipment) from the electrical energy
generating equipment up to the interface with the electrical grid or the
isolation switch of the local electrical utility, or up to the point where, on
an annual basis, more than 75 percent of the electrical energy
transmitted by the transmission equipment is electrical energy generated
by the geothermal electrical generation equipment, whichever point
comes first.

GEE-5 The cost of drilling geothermal wells is eligible as CRCE but the cost of
completing geothermal production wells (production string and wellhead
equipment) is included in Class 43.1 or 43.2.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 104
 2.8 Geothermal Electrical Generation Equipment

GEE 2.8.1 Geothermal Energy System —Flash Steam Electrical Generation

SCHEMATIC FOR CLASS 43.1 AND 43.2

title geot herma l energ y equip men t

FLASH STEAM ELECTRICAL ENERGY GENERATION

DWG No. GEE 2.8.1 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 105
 2.8 Geothermal Electrical Generation Equipment

GEE 2.8.2 Geothermal Energy System—Flash Steam Cogeneration

SCHEMATIC FOR CLASS 43.1 AND 43.2

title geother mal ene rgy equip men t

FLASH STEAM COGENERATION

dwg No. GEE 2.8.2 2019-11-25

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 106
 2.8 Geothermal Electrical Generation Equipment

GEE 2.8.3 Geothermal Energy System—Binary Cycle Electrical Generation

SCHEMATIC FOR CLASS 43.1 AND 43.2

title GEOTHERMAL ENERGY EQUIPMENT

BINARY CYCLE ELECTRICAL GENERATION

dwg No. GEE 2.8.3 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 107
 2.9 Landfll Gas and Digester Gas Collection Equipment

CONTENTS SCHEMATICS

2.9.1 Landfll Gas and Digester Gas Collection Equipment....................... 109 LDE 2.9.1 Landfll Gas Collection and Cleaning Equipment ....................... 114
2.9.2 Eligible Properties .............................................................................. 109 LDE 2.9.2 Digester Gas Collection and Cleaning Equipment ..................... 115
2.9.3 Ineligible Properties ........................................................................... 109
2.9.4 Application for Technical Opinion with Respect to Class 43.1 or 43.2
Eligibility of Landfll Gas or Digester Gas Collection Equipment ........110
2.9.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 112
2.9.6 Schematics of Qualifying Equipment ................................................ 113

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 108
 2.9 Landfill Gas and Digester Gas Collection Equipment

2.9.1 LANDFILL GAS AND DIGESTER GAS 2.9.2 ELIGIBLE PROPERTIES

COLLECTION EQUIPMENT
Eligible properties for landfill gas and digester gas collection equipment include
Landfill gas and digester gas collection equipment (described in subparagraph the following:
(d)(viii) of Class 43.1), includes equipment used primarily for the purpose of
collecting landfill gas or digester gas.
• piping (including above or below ground piping and the cost of drilling a well
or trenching, for the purpose of installing that piping);
Note: • fans, compressors, storage tanks, heat exchangers;
Landfill gas must be extracted from an eligible landfll site. • related equipment used to:

Digester gas must be extracted from an eligible sewage treatment facility. • collect the gas;
• remove non-combustibles and contaminants from the gas;
Landfill gas, digester gas, eligible landfill site and eligible sewage treatment
or
facility are defined in subsection 1104(13) of the Regulations and in the
Glossary of Terms found in Section 3.0 of this Guide.
• store the gas;
and
Budget 2013 expanded eligibility under Class 43.1 and 43.2 by including all
types of cleaning and upgrading equipment that can be used to treat eligible • working platforms that primarily serve the eligible equipment.
gases from waste.
2.9.3 INELIGIBLE PROPERTIES
Ineligible properties for landfill gas and digester gas collection equipment include
the following:

• buildings and structures or portions thereof, with the exception of working

platforms that primarily serve the eligible equipment;
• vehicles;
• telephone and related equipment;
and
• access roads, sidewalks, parking areas and other similar surface construction.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 109
 2.9 Landfill Gas and Digester Gas Collection Equipment

2.9.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY OF
LANDFILL GAS OR DIGESTER GAS COLLECTION EQUIPMENT

FORM 2.9 Details of Landfll Gas and Digester Gas Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 110
 2.9 Landfill Gas and Digester Gas Collection Equipment

SCHEDULE 2.9-A Confguration of Proposed Landfll Gas or Digester Gas Collection Equipment

(i) Indicate the source of the gas: (iv) If the gas cannot be used as it is produced it will be:

■ Eligible landfill ■ Flared

■ Digester at an eligible sewage treatment facility ■ Stored (indicate storage method and capacity)

■ Other (specify) (v) Describe how the gas will be used:

(ii) Describe the gas collection system employed:

(iii) Describe the process used to treat the gas and remove contaminants and
non-combustibles.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 111
 2.9 Landfill Gas and Digester Gas Collection Equipment

2.9.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.9 Landfll Gas and Digester Gas Collection Equipment

Landfll Gas Collection Equipment Digester Gas Equipment

Number Typical Capital Cost Number Typical Capital Cost

1 Drilling of landfill gas collection wells in an eligible landfill site and 1 Purchase and installation of piping and gas blower(s) to extract
installation of casings and well heads. digester gas from anaerobic digesters at an eligible sewage
treatment facility.
2 Purchase and installation of underground collector piping.
2 Purchase and installation of primary moisture and particulate
3 Purchase and installation of gas blowers to extract landfill gas removal equipment (e.g., knockout pot).
from landfill gas collection wells.
3 Construction of working platforms that are not an integral part
4 Purchase and installation of primary moisture and particulate of a building or other structure.
removal equipment (e.g., knockout pot).
4 Purchase and installation of compressed air system for
5 Construction of working platforms that are not an integral part of equipment controls and instrumentation including compressor,
a building or other structure. dryer, controls and instrumentation.

6 Purchase and installation of compressed air system for 5 Purchase and installation of equipment to remove non-
equipment controls and instrumentation including compressor, combustibles and contaminants (e.g., heat exchangers,
dryer, controls and instrumentation. scrubbing, stripping, pressure swing absorption, gas
compression, gas cooling, moisture separation and
7 Purchase and installation of equipment to remove non-
particulate filtration equipment).
combustibles and contaminants (e.g., heat exchangers,
scrubbing, stripping, pressure swing absorption, gas 6 Purchase and installation of clean gas compression equipment.
compression, gas cooling, moisture separation and
particulate filtration equipment). 7 Purchase and installation of gas storage equipment.

8 Purchase and installation of clean gas compression equipment.

9 Purchase and installation of gas storage equipment.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 112
 2.9 Landfill Gas and Digester Gas Collection Equipment

2.9.6 SCHEMATICS OF QUALIFYING EQUIPMENT

Typical configurations of components that would qualify as landfill gas or digester
gas equipment are shown in the schematics below.

2.9.6.1 Key to Notes on Schematics of Landfll Gas and Digester Gas

Collection Equipment

LDE-1 For eligible properties, see Section 2.9.2 of this Guide.

LDE-2 For ineligible properties, see Section 2.9.3 of this Guide.

LDE-3 Landfill or digester gas cleaned such that it may be burned in an engine
or gas turbine qualifies as an eligible waste fuel.

LDE-4 Underground landfill gas wells and piping to collect and deliver the gas
to landfill gas cleaning equipment are eligible.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 113
 2.9 Landfill Gas and Digester Gas Collection Equipment

LDE 2.9.1 Landfll Gas Collection and Cleaning Equipment

SCHEMATIC FOR CLASS 43.1 AND 43.2

title landf ill gas coll ect ion and

CLEANING EQUIPMENT

DWG No. LDE 2.9.1 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 114
 2.9 Landfill Gas and Digester Gas Collection Equipment

LDE 2.9.2 Digester Gas Collection and Cleaning Equipment

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE DIGESTER GAS COLLECTION AND

CLEANING EQUIPMENT

DWG No. LDE 2.9.2 2013-11-29

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 115
 2.10 Specifed-Waste Fuelled Heat Production Equipment

CONTENTS SCHEMATICS

2.10.1 Specifed-Waste Fuelled Heat Production Equipment.......................117 HPE 2.10.1 Municipal Waste-Fuelled Heat Production Equipment ..............121
2.10.2 Eligible Properties ...............................................................................117 HPE 2.10.2 Wood Waste-Fuelled Heat Production Equipment ....................122
2.10.3 Ineligible Properties ............................................................................117 HPE 2.10.3 Eligible Waste Gas-Fuelled Heat Production Equipment........... 123
2.10.4 Application for Technical Opinion with Respect to
Class 43.1 or 43.2 Eligibility of Specifed-Waste Fuelled
Heat Production Equipment .............................................................. 118
2.10.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 120
2.10.6 Schematics of Qualifying Equipment ................................................ 120

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 116
 2.10 Specified-Waste Fuelled Heat Production Equipment

2.10.1 SPECIFIED-WASTE FUELLED HEAT • working platforms, including catwalks, access ladders and walkways that
PRODUCTION EQUIPMENT are an integral part of the heat production equipment (platforms that serve
the surrounding structure are ineligible);
and
Specified-waste fuelled heat production equipment (described in • metal exhaust stacks that are an integral part of the heat production equipment.
subparagraph (d)(ix) of Class 43.1) includes equipment used for the sole
purpose of generating heat energy from the consumption of eligible Note: Specified-waste fuelled heat production equipment included in Class 43.1
waste fuel or producer gas. or 43.2 is an eligible source of thermal energy for district energy systems/
equipment (see section 2.16).
Note:
2.10.3 INELIGIBLE PROPERTIES
Although fossil fuel can be combined with eligible waste fuel and producer gas
for use as a fuel source, the heat energy must be generated primarily from the Ineligible properties for specified-waste fuelled heat production equipment
use of eligible waste fuel or producer gas. include the following:

Eligible waste fuel means biogas, bio-oil, digester gas, landfill gas, municipal
• buildings and structures (with the exception of working platforms that primarily
waste, plant residue, pulp and paper waste and wood waste. These terms are serve the heat-producing equipment);
defined in subsection 1104(13) of the Regulations and in the Glossary of Terms • permanent brick or concrete stacks;
in Section 3.0 of this Guide.
• fuel storage facilities and components of the fuel-handling equipment that do
not upgrade the combustible portion of the fuel (e.g., front-end loaders and
conveyor belts);
2.10.2 ELIGIBLE PROPERTIES • heat rejection equipment (e.g., condensers and cooling water equipment);

Eligible properties for specified-waste fuelled heat production equipment include • effuent treatment and emission abatement (e.g., pollution control) equipment;
the following: • electrical generating equipment;
• heat energy generating equipment including waste-fuelled burners and boilers, • vehicles;
combustion air-handling equipment, boiler feedwater and condensate systems,
• telephone and related equipment;
controls and instrumentation and other ancillary equipment;
and
• components of the fuel-handling equipment whose primary purpose is
to upgrade the combustible portion of the fuel by grinding, shredding, • access roads, sidewalks, parking areas and other similar surface construction.
compacting, gasifying or drying;

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 117
 2.10 Specified-Waste Fuelled Heat Production Equipment

2.10.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF SPECIFIED-WASTE FUELLED HEAT PRODUCTION EQUIPMENT

FORM 2.10 Details of Specifed-Waste Fuelled Heat Production Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 118
 2.10 Specified-Waste Fuelled Heat Production Equipment

SCHEDULE 2.10–A Confguration of Proposed Specifed-Waste Fuelled Heat Production Equipment

(i) Check appropriate description of project. (iv) Quantity of heat to be generated annually (on average):
(v) State the type of furnace, boiler, etc., which is to be used for converting fuel
■ New installation or equipment
to heat energy:
■ Retrofit of existing installation or equipment

■ Expansion of existing installation or equipment

(ii) For a retroft or expansion, please indicate:

(vi) Indicate how the heat will be used:
Output of existing installation per year:

Type(s) of fuel used by existing installation:

Quantity of fuel(s) used by existing installation per year:

(vii) Indicate what fuel-handling equipment is used to upgrade the combustible
(iii) Heat will be produced from consumption of (please indicate units): portion of the fuel:

Annual Energy Content

Source % of Total Consumption (HHV basis)

■ Wood Waste

■ Municipal Waste

■ Landfill Gas

■ Digester Gas

■ Bio-Oil

■ Biogas

■ Plant Residue

■ Pulp and Paper Waste

■ Producer Gas
■ Other (specify)

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 119
 2.10 Specified-Waste Fuelled Heat Production Equipment

2.10.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.10 Specifed-Waste Fuelled Heat Production Equipment

Number Typical Capital Cost

1 Construction of working platforms that are not an integral part of a building or other structure.

2 Purchase and installation of compressed air system for equipment controls and instrumentation including compressor, dryer, controls
and instrumentation.

3 Purchase and installation of equipment to upgrade the combustible portion of eligible waste fuels (e.g., dryers, shredders, hoggers
and gasifiers) and ancillary equipment such as controls and instrumentation.

4 Purchase and installation of eligible waste fuelled heat generating equipment and ancillary equipment (e.g., burner, boiler, fuel feeder,
combustion air supply, duct work, integrated metal exhaust stacks, ash eliminator, controls and instrumentation).

5 Purchase and installation of boiler feedwater or working fuid systems, including chemical treatment, storage tanks, de-aeration
facilities and ancillary equipment.

6 Purchase and installation of steam condensate or working fuid return system.

2.10.6 SCHEMATICS OF QUALIFYING EQUIPMENT HPE-3 In specified-waste fuelled heat production equipment, equipment used
to upgrade the combustible portion of the fuel by processes such as
Typical configurations of equipment used to produce heat from waste fuels that shredding, drying, hogging, compacting, gasifying or compressing is
would qualify as specified-waste fuelled heat production equipment are shown in eligible.
the schematics below.
HPE-4 The eligible portion of the heat distribution pipeline extends to whichever
is first among the main shut-off valve, the interface with the end-use
2.10.6.1 Key to Notes on Schematics of Specifed-Waste Fuelled Heat system or a change in ownership of components.
Production Equipment
HPE-5 Boiler feedwater treatment systems that are necessary to protect and
HPE-1 For eligible properties, see Section 2.10.2 of this Guide. prevent fouling of high-temperature and pressure steam generation
systems are eligible.
HPE-2 For ineligible properties, see Section 2.10.3 of this Guide.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 120
 2.10 Specified-Waste Fuelled Heat Production Equipment

HPE 2.10.1 Municipal Waste-Fuelled Heat Production Equipment

SCHEMATIC FOR CLASS 43.1 AND 43.2

title mun icip al wast e -fu elled

HEAT PRODUCT ON EQUIPMENT

DWG No. HPE 2.10.1 2013-12-02

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 121
 2.10 Specified-Waste Fuelled Heat Production Equipment

HPE 2.10.2 Wood Waste-Fuelled Heat Production Equipment

SCHEMATIC FOR CLASS 43.1 AND 43.2

title wood wast e fuel led

HEAT PRODUCT ON EQUIPMENT

DWG No. HPE 2.10.2 2013-12-02

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 122
 2.10 Specified-Waste Fuelled Heat Production Equipment

HPE 2.10.3 Eligible Waste Gas-Fuelled Heat Production Equipment

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE ELIGIBLE WASTE GAS-FUELLED

HEAT PRODUCTION EQUIPMENT

dwg No. HPE 2.10.3 2013-12-02

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 123
 2.11 Expansion Engine Systems

CONTENTS SCHEMATICS

2.11.1 Expansion Engine Systems ............................................................... 125 EES 2.11.1 Expansion Engine System for Electrical Generation
from Expansion of Natural Gas...................................................129
2.11.2 Eligible Properties .............................................................................. 125
2.11.3 Ineligible Properties ........................................................................... 125
2.11.4 Application for Technical Opinion with Respect to Class 43.1
or 43.2 Eligibility of an Expansion Engine System ............................ 126
2.11.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 128
2.11.6 Schematics of Qualifying Systems.................................................... 128

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 124
 2.11 Expansion Engine Systems

2.11.1 EXPANSION ENGINE SYSTEMS 2.11.2 ELIGIBLE PROPERTIES

Expansion engine systems (described in subparagraph (d)(x) of Class 43.1) Eligible properties for expansion engine systems include the following:
include certain expansion engines, with one or more turbines, or cylinders,
that are used to convert the compression energy in pressurized natural gas • an expansion engine with one or more turbines or cylinders;
into shaft power that generates electricity. and

To qualify, the expansion engine: • related electrical generating equipment such as generators, transformers
and electric power control equipment (e.g., phase synchronization, voltage
• must be used instead of a pressure-reducing valve; regulation and frequency control equipment) and ancillary controls.
and Note: Expansion engine systems included in Class 43.1 or 43.2 are an eligible
• must be part of a system installed on: source of electrical energy for electrical energy storage equipment (see
section 2.19).
• a distribution line of a natural gas distributor,
or 2.11.3 INELIGIBLE PROPERTIES
• a branch distribution line of a taxpayer that is primarily engaged in the
Ineligible properties for expansion engine systems include the following:
manufacturing or processing of goods for sale or lease if the branch line
is used to deliver natural gas directly to the taxpayer’s manufacturing • distribution equipment and facilities;
or processing facility.
• buildings and structures;
and
• auxiliary electrical generating equipment (e.g., diesel engine powered
generator sets, main electrical transfer switches or power bars).

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 125
 2.11 Expansion Engine Systems

2.11.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF AN EXPANSION ENGINE SYSTEM

FORM 2.11 Details of Expansion Engine Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 126
 2.11 Expansion Engine Systems

SCHEDULE 2.11-A Confguration of Proposed Expansion Engine System

(i) Indicate the planned electrical energy generating capacity: MW (v) Describe briefy the confguration of the system, the related electrical generating
equipment and ancillary controls.
(ii) Indicate the type of expansion engine:

■ Expander Turbine

Number of Units:

■ Cylinder
(vi) Indicate how the electrical energy generated will be used and how it will be
Number of Units: transmitted to the end-user.

(iii) Indicate how the expansion engine is installed/used:

■ On a distribution line of a distributor of natural gas.

■ On a branch distribution line of a taxpayer that delivers natural gas directly

to the taxpayer’s manufacturing or processing facility.

■ Other (specify):

(iv) Indicate the pressure let down available for the expansion engine:

kPa or psi

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 127
 2.11 Expansion Engine Systems

2.11.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.11 Expansion Engine Systems

Number Typical Capital Cost

1 Purchase and installation of expansion engine or expander turbine, gas pre-heater at a natural gas pressure-reducing station and
ancillary controls and instrumentation.

2 Purchase and installation of related electrical generating equipment and controls (e.g., phase synchronization, voltage regulation
and frequency control equipment) and equipment for cooling, lubrication, fire protection and acoustic protection.

3 Purchase and installation of power transformer(s).

2.11.6 SCHEMATICS OF QUALIFYING SYSTEMS EES-4 Eligible electrical equipment includes equipment used at the first level
of power transformation. The first level of transformation includes phase
A typical system to generate electricity from the let-down of pressure in a natural synchronization and voltage regulation. At this boundary generation
gas pipeline that would qualify as an expansion engine system is shown in the stops, and the electricity is ready for use or to be put on transmission
schematic below. lines. Typically this boundary is at the isolation switches that allow the
utility to lock out the plant’s power production.
2.11.6.1 Key to Notes on Schematic of an Expansion Engine System

EES-1 For eligible properties, see Section 2.11.2 of this Guide.

EES-2 For ineligible properties, see Section 2.11.3 of this Guide.

EES-3 The gaseous fuel supply line downstream of the main utility shut-off
valve is eligible if the supply line is dedicated to the eligible system.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 128
 2.11 Expansion Engine Systems

EES 2.11.1 Expansion Engine System for Electrical Generation from Expansion of Natural Gas

SCHEMATIC FOR CLASS 43.1 AND 43.2

title exp ans ion engi ne syst em for elect ric al

GENERATION FROM EXPANSION OF NATURAL GAS

DWG. No. EES 2.11.1 2013-12-02

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 129
 2.12 Systems to Convert Biomass into Bio-Oil

CONTENTS SCHEMATICS

2.12.1 Systems to Convert Biomass into Bio- Oil......................................... 131 BOS 2.12.1 System to Convert Wood Waste to Bio- Oil ................................136
2.12.2 Eligible Properties .............................................................................. 131
2.12.3 Ineligible Properties ........................................................................... 131
2.12.4 Application for Technical Opinion with Respect to Class 43.1
or 43.2 Eligibility of a System to Convert Biomass into Bio- Oil........ 132
2.12.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 134
2.12.6 Schematics of Qualifying Systems.................................................... 135

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 130
 2.12 Systems to Convert Biomass into Bio-Oil

2.12.1 SYSTEMS TO CONVERT BIOMASS INTO BIO-OIL 2.12.2 ELIGIBLE PROPERTIES

Systems to convert biomass into bio-oil (described in subparagraph (d)(xi) Eligible properties for systems that convert biomass into bio-oil include
of Class 43.1) includes equipment that converts wood waste or plant residue the following:
into bio-oil by a thermo-chemical conversion process that takes place in
the absence of oxygen. The equipment is eligible only if the bio-oil is used • feedstock pre-processing equipment (e.g., shredders, hoggers);
primarily for the following purposes: • pyrolysis reactor;

• generating heat that is used directly in an industrial process or a greenhouse; • recycled gas or char burners to provide heat to a pyrolysis reactor or
a fuidizing medium;
• generating electricity;
• pyrolysis gas cleaning equipment (e.g., cyclones, char collectors);
or
• pyrolysis gas quench system;
• generating electricity and heat.
• bio-oil storage tank;
Note:
and
The thermo-chemical conversion process to produce bio-oil that takes place
in the absence of oxygen is generally referred to as pyrolysis. • related equipment (e.g., controls, instrumentation, pumps, blowers,
process piping, ash removal piping and metal exhaust stacks).
Equipment that produces bio-oil remains eligible if the bio-oil is sold to another
person who uses it for the designated purposes.
2.12.3 INELIGIBLE PROPERTIES
The terms bio-oil, wood waste and plant residue are defined in subsection
Ineligible properties for systems that convert biomass into bio-oil include
1104(13) of the Regulations and in the Glossary of Terms found in Section 3.0
the following:
of this Guide.
• buildings and other structures;
• equipment used for the collection, storage or transportation of wood waste
or plant residue;
• vehicles;
• telephone and related equipment;
• condensers or heat rejection equipment;
and
• access roads, sidewalks, parking areas and similar surface construction.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 131
 2.12 Systems to Convert Biomass into Bio-Oil

PROTECTED-B
(when completed)
2.12.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF A SYSTEM TO CONVERT BIOMASS INTO BIO-OIL

FORM 2.12 Details of Project to Convert Biomass to Bio-Oil

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 132
 2.12 Systems to Convert Biomass into Bio-Oil

SCHEDULE 2.12–A Confguration of Proposed System to Convert Biomass to Bio-Oil

(i) Material (biomass) used for the production of bio-oil: (vi) Indicate if the bio-oil will be used by the producer of the bio-oil or if it will be sold
to a third party:
Material % of Total Annual Consumption

■ Wood Waste

■ Plant Residue
(vii) Indicate which of the following the bio-oil will be used to produce:
(ii) Indicate the source of the biomass used for bio-oil production:
■ Heat

■ Electricity

■ Electricity and heat

(iii) Indicate how the biomass will be received, stored and handled:
(viii) Indicate the planned electrical generating capacity (if applicable): MW

(ix) Indicate how the heat (if applicable) will be produced and whether it will be used
in a greenhouse or in an industrial process. If it will be used in an industrial
process, indicate the nature of the process:
(iv) Indicate how the feedstock will be prepared for bio-oil production:

(v) Estimate the annual production of bio-oil:

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 133
 2.12 Systems to Convert Biomass into Bio-Oil

2.12.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.12 Systems to Convert Biomass into Bio-Oil

Number Typical Capital Cost

1 Construction of working platforms that are not an integral part of a building or other structure.

2 Purchase and installation of compressed air system for equipment controls and instrumentation including compressor, dryer, controls
and instrumentation.

3 Purchase and installation of biomass (i.e., wood waste or plant residue) feedstock pre-processing equipment (e.g., shredders and hoggers).

4 Purchase and installation of bio-oil reactor vessel (e.g., fuidized bed reactor for pyrolysis) with wood waste or plant residue feed system.

5 Purchase and installation of recycle gas or char burner to supply heat to bio-oil reactor or a fuidizing medium.

6 Purchase and installation of pyrolysis gas cleaning equipment (e.g., cyclones and char collectors)

7 Purchase and installation of pyrolysis gas quenching system.

8 Purchase and installation of bio-oil storage equipment.

9 Purchase and installation of related equipment (e.g., controls, instrumentation, pumps, blowers, heat exchangers and process piping).

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 134
 2.12 Systems to Convert Biomass into Bio-Oil

2.12.6 SCHEMATICS OF QUALIFYING SYSTEMS

A typical configuration of components to produce bio-oil that would qualify
as a system to convert biomass into bio-oil is shown in the schematic below.

2.12.6.1 Key to Notes on Schematic of Systems to Convert Biomass

into Bio-Oil

BOS-1 For eligible properties, see Section 2.12.2 of this Guide.

BOS-2 For ineligible properties, see Section 2.12.3 of this Guide.

BOS-3 Equipment used in a system to convert biomass to bio-oil is eligible only if

the bio-oil produced is used primarily for the purpose of generating heat
that is used directly in an industrial process or a greenhouse, generating
electricity or generating electricity and heat.

BOS-4 The equipment used in a system to produce bio-oil is eligible only if

it converts wood waste or plant residues, both of which are defined
in subsection 1104(13) of the Regulations, into bio-oil in a thermo-
chemical conversion process that takes place in the absence of
oxygen. Equipment used for the collection, storage or transportation
of wood waste or plant residue is not an eligible component of
such systems.

BOS-5 Equipment (e.g., shredders or hoggers) used in a system to produce

bio-oil that pre-processes the feedstock (wood waste or plant residue)
by reducing particle size is eligible.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 135
 2.12 Systems to Convert Biomass into Bio-Oil

BOS 2.12.1 System to Convert Wood Waste to Bio-Oil

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE SYSTEM TO CONVERT

WOOD WASTE TO BIO-OIL

DWG No. BOS 2.12.1 2013-12-02

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 136
 2.13 Fixed Location Fuel Cell Equipment

CONTENTS SCHEMATICS

2.13.1 Fixed Location Fuel Cell Equipment .................................................. 138 FCE 2.13.1 Fixed Location Fuel Cell System—Cogeneration Mode.144
2.13.2 Eligible Properties .............................................................................. 138 FCE 2.13.2 Fixed Location Fuel Cell System and Steam Turbine
Electrical Energy Generation System .............................145
2.13.3 Ineligible Properties ........................................................................... 138
FCE 2.13.3 Fixed Location Fuel Cell and Electrolysis Equipment.....146
2.13.4 Application for Technical Opinion with Respect to Class 43.1
or 43.2 Eligibility of Fixed Location Fuel Cell Equipment.................. 139
2.13.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 142
2.13.6 Schematics of Qualifying Equipment ................................................ 143

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 137
 2.13 Fixed Location Fuel Cell Equipment

2.13.1 FIXED LOCATION FUEL CELL EQUIPMENT • ancillary controls and instrumentation, water treatment equipment, water
conditioning equipment and equipment used to supply air to the fuel cell.
Fixed location fuel cell equipment includes property used to generate electrical
Note: Fixed location fuel cell equipment included in Class 43.1 or 43.2 is an
energy or electrical energy and heat from hydrogen by the electrochemical
eligible source of electrical energy for electrical energy storage equipment
reaction of hydrogen and oxygen. Eligible fuel cell equipment uses oxygen in
(see section 2.19).
air and hydrogen generated from

• fossil fuels or eligible waste fuels by internal or ancillary fuel reformation 2.13.3 INELIGIBLE PROPERTIES
equipment that is part of an electrical energy generation or cogeneration
system (subparagraph (a)(ii.1) of Class 43.1); Ineligible properties for fixed location fuel cell equipment include the following:

or • buildings or other structures (e.g., platforms that do not primarily serve eligible
• water by ancillary electrolysis equipment (or the fuel cell itself if the fuel cell properties and are not an integral part of a qualifying system);
is reversible) that uses electrical energy, all or substantially all of which is • transmission and distribution equipment;
generated from photovoltaic, wind energy conversion, geothermal or hydro-
and
electric equipment (subparagraph (d)(xii) of Class 43.1).
• in the case of fuel cell systems fuelled by fossil fuels or eligible waste fuels;
Note:
• heat rejection equipment (e.g. condensers and cooling water systems);
Fixed location fuel cell equipment that uses hydrogen generated from fossil
fuels must meet the heat rate requirements of Class 43.1 or 43.2 as explained
• fuel storage facilities;
in Section 2.1.5 of this Guide. and
• fuel-handling equipment that does not upgrade the combustible portion of fuel;
2.13.2 ELIGIBLE PROPERTIES or

Eligible properties for fixed location fuel cell equipment include the following: • in the case of fuel cell systems that use hydrogen generated from renewable
electricity sources (e.g., electrical energy generated by photovoltaic, wind energy
• fuel cells; conversion, geothermal or hydro-electric equipment),
• fuel reformation equipment (internal or ancillary) or ancillary electrolysis • auxiliary electrical generating equipment;
equipment, as the case may be;
• vehicles;
• hydrogen storage equipment for hydrogen generated by electrolysis using
• telephone and related equipment;
electrical energy generated by photovoltaic, wind energy conversion,
geothermal or hydro-electric equipment; and
• inverters and electric power conditioning equipment; • access roads, sidewalks, parking areas and other similar surface construction.

and

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 138
 2.13 Fixed Location Fuel Cell Equipment

2.13.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF FIXED LOCATION FUEL CELL EQUIPMENT

FORM 2.13 Details of Fixed Location Fuel Cell Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 139
 2.13 Fixed Location Fuel Cell Equipment

SCHEDULE 2.13-A Confguration of Proposed Fixed Location Fuel Cell Equipment

(i) Indicate the peak electrical generation capacity of the system: kW b) Type of reforming used:

(ii) Indicate type of fuel cell: ■ Steam Reforming

■ Molten Carbonate (MCFC) ■ Partial Oxidation Reforming

■ Proton Exchange Membrane (PEMFC) ■ Auto-Thermal Reforming

■ Alkaline (AFC) ■ Other (specify)

■ Phosphoric Acid (PAFC) (v) If ancillary electrolysis equipment is used, indicate the following:

■ Solid Oxide (SOFC) a) Type of electrolysis equipment:

■ Other (specify) ■ Conventional electrolysis

(iii) If the fuel cell uses hydrogen, indicate how the hydrogen is generated: ■ Pressurized electrolysis

■ Fuel reformation equipment ■ High-temperature electrolysis

■ Electrolysis equipment ■ Other (specify)

■ Fuel cell itself (i.e., Reversible fuel cell) b) Type of equipment used to generate electrical energy for electrolysis:

■ Other (specify) ■ Photovoltaic

(iv) If a reformer is used, indicate the following: ■ Wind energy conversion

a) Location of reformer relative to the fuel cell: ■ Geothermal

■ Internal ■ Hydro-electric

■ External and connected (ancillary) ■ Other (specify)

■ Remote (explain) c) Is the electrical generation equipment indicated in paragraph (v)(b) above owned
by the applicant or a lessee of the applicant?

■ Yes

■ No

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 140
 2.13 Fixed Location Fuel Cell Equipment

(vi) If the fuel cell system consumes fossil fuel, indicate the following: (vii) Show your calculations and explain the basis for meeting the heat rate1 required
in Class 43.1 or Class 43.2 (the total fossil energy consumed for the generation
a) Type and quantity of fossil fuel consumed per year (specify units): of electricity on an annual basis must not exceed 6330 kJ/kWh [6,000 BTU/kWh]
for Class 43.1 or 5010 kJ/kWh [4,750 BTU/kWh] for Class 43.2):
Energy Content
Type of Fossil Fuel Annual Consumption (HHV basis)

(Attach additional pages if necessary.)

b) Type and quantity of other fuel used per year (specify units);

Energy Content
Type of Other Fuel Annual Consumption (HHV basis)

1 The heat rate requirements for cogeneration systems in the Class 43.1 and 43.2 do not apply to
fuel cell systems that use only hydrogen produced by ancillary electrolysis equipment (or the fuel
cell itself, if the fuel cell is reversible) if the electrolysis equipment is powered by electricity that is
generated from photovoltaic, wind energy conversion or hydro-electric equipment owned by the
applicant or a lessee of the applicant.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 141
 2.13 Fixed Location Fuel Cell Equipment

2.13.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.13 Fixed Location Fuel Cell Equipment

Fuel Cell Equipment that Consumes Fossil Fuel or Eligible Waste Fuel Fuel Cell Equipment that Consumes only Hydrogen Produced by
Electrolysis of Water with Electricity Generated by Wind Energy
Number Typical Capital Cost Conversion, Photovoltaic or Hydro-Electric Equipment

1 Purchase and installation of fuel gasification equipment if required. Number Typical Capital Cost
2 Purchase and installation of equipment to upgrade the combustible 1 Purchase and installation of electrolysis equipment to produce
portion of the fuel (i.e., to remove contaminants and components hydrogen from water using only electricity generated by wind
that cannot be reformed to hydrogen and carbon dioxide). energy conversion, photovoltaic or hydro-electric equipment.
3 Purchase and installation of fuel compression equipment. 2 Purchase and installation of related water treatment and water
conditioning equipment.
4 Purchase and installation of fuel reformation equipment.
3 Purchase and installation of hydrogen compression equipment.
5 Purchase and installation of related water treatment and water
conditioning equipment. 4 Purchase and installation of pressurized hydrogen storage
equipment.
6 Purchase and installation of fuel cell equipment (with or without
internal fuel reformation equipment) and ancillary equipment such 5 Purchase and installation of air compression equipment to supply
as controls and instrumentation. air to the fuel cell.
7 Purchase and installation of air compression equipment to supply 6 Purchase and installation of a hydrogen decompressor if required.
air to the fuel cell.
7 Purchase and installation of fuel cell module or reversible fuel
8 Purchase and installation of pre-heaters to preheat fuel and air cell module and ancillary equipment such as controls and
entering the fuel cell with heat in the fuel cell exhaust. instrumentation.
9 Purchase and installation of inverters and electric power 8 Purchase and installation of inverters and electric power
conditioning equipment. conditioning equipment.
10 Purchase and installation of electric power transformer(s). 9 Purchase and installation of electric power transformer(s).

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 142
 2.13 Fixed Location Fuel Cell Equipment

2.13.6 SCHEMATICS OF QUALIFYING EQUIPMENT FCE-5 The eligible portion of a heat distribution pipeline system includes piping
from the eligible heat generating equipment to the main shut-off valve,
Typical configurations of fuel cell systems that would qualify as fixed location fuel interface with the end-use system or change in ownership of the pipeline,
cell equipment are shown in the schematics below. whichever is first.

FCE-6 Fixed location fuel cell equipment that uses hydrogen generated only
2.13.6.1 Key to Notes on Schematics of Fixed Location Fuel Cell Equipment by ancillary electrolysis equipment using electricity that is generated by
photovoltaic, wind energy conversion, geothermal or hydro-electric
FCE-1 For eligible properties, see Section 2.13.2 of this Guide.
equipment does not have to meet the heat rate requirements as explained
FCE-2 For ineligible properties, see Section 2.13.3 of this Guide. in Section 2.1.5 of this Guide for the cost of the equipment to be eligible
for inclusion in Class 43.1 or 43.2.
FCE-3 Eligible fuels for fuel cell systems include fossil fuels and eligible waste
fuels as defined in subsection 1104(13) in the Regulations (see Section
3.0 of this Guide). Fuel cell systems that consume hydrogen derived from
eligible fuels are considered to be cogeneration systems. The equipment
in a cogeneration system must meet the heat rate requirements of Class
43.1 or 43.2 for the cost of the equipment to be included in Class 43.1
or 43.2. See Section 2.1.5 of this Guide for information on the heat rate
requirements for Class 43.1 or 43.2 and the method for calculating
heat rate.

FCE-4 Eligible electrical energy generation property includes generators

and equipment used at the first level of power transformation. The
first level of transformation includes equipment used for phase
synchronization and voltage regulation. After the first level of
transformation, generation stops, and the electricity is ready for use
(e.g., ready to be put on transmission lines). Typically, the eligible
system boundary for electrical energy generation equipment is
located after the first level of transformation at isolation switches
that allow a utility to lock out a generating plant’s power production.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 143
 2.13 Fixed Location Fuel Cell Equipment

FCE 2.13.1 Fixed Location Fuel Cell System—Cogeneration Mode

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE FIXED LOCATION FUEL CELL

SYSTEM-COGENERATION MODE
FCE 2.13.1 | 2013-12-02
DWG. No.
NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 144
 2.13 Fixed Location Fuel Cell Equipment

FCE 2.13.2 Fixed Location Fuel Cell System and Steam Turbine Electrical Energy Generation System

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE FIXED LOCATION FUEL CELL AND STEAM

TURBINE ELECTRICAL ENERGY GENERATION SYSTEM

DWG. No. FCE 2.13.2 2013-12-02

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 145
 2.13 Fixed Location Fuel Cell Equipment

FCE 2.13.3 Fixed Location Fuel Cell and Electrolysis Equipment

SCHEMATIC FOR CLASS 43.1 AND 43.2

title FIXED LOCATION FUEL CELL

AND ELECTROLYSIS EQUIPMENT

dwg . No. FCE 2.13.3 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 146
 2.14 Systems to Produce Biogas by Anaerobic Digestion

CONTENTS SCHEMATICS

2.14.1 Systems to Produce Biogas by Anaerobic Digestion ....................... 148 BGS 2.14.1 System to Produce Biogas by Anaerobic Digestion
of Organic Waste.........................................................................152
2.14.2 Eligible Properties .............................................................................. 148
2.14.3 Ineligible Properties ........................................................................... 148
2.14.4 Application for Technical Opinion with Respect to
Class 43.1 or 43.2 Eligibility of a System to Produce
Biogas by Anaerobic Digestion ......................................................... 149
2.14.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 151
2.14.6 Schematics of Qualifying Systems.................................................... 151

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 147
 2.14 Systems to Produce Biogas by Anaerobic Digestion

2.14.1 SYSTEMS TO PRODUCE BIOGAS BY 2.14.3 INELIGIBLE PROPERTIES

ANAEROBIC DIGESTION
Ineligible properties for a system that produces biogas by anaerobic digestion
include the following:
Systems that produce biogas by anaerobic digestion (described in
subparagraph (d)(xiii) of Class 43.1) include equipment that is part of • buildings or other structures;
a system that is used primarily to produce and store biogas.
• property (other than a buffer tank) used to collect, store or move organic waste
Note: to the system;
Eligible substrates for biogas production include organic waste that is food and • equipment used to process the residue after digestion or to treat recovered
animal waste, manure, plant residue, pulp and paper by-product, separated liquids;
organics, wood waste or sludge from an eligible sewage treatment facility.
• biogas fares;
Biogas and what constitutes the eligible substrates for biogas production • equipment for odour management;
are defined in subsection 1104(13) of the Regulations and in the Glossary
of Terms found in Section 3.0 of this Guide.
• vehicles;
• telephone and related equipment;
and
2.14.2 ELIGIBLE PROPERTIES • access roads, sidewalks, parking areas and other similar surface construction.
Eligible properties for a system that produces biogas by anaerobic digestion
include the following:

• anaerobic digester reactors;

• buffer tanks;
• pre-treatment tanks and equipment;
• biogas piping;
• fans, compressors and heat exchangers;
• biogas storage tanks;
and
• equipment used to remove contaminants and non-combustibles from the gas

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 148
 2.14 Systems to Produce Biogas by Anaerobic Digestion

2.14.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF A SYSTEM TO PRODUCE BIOGAS BY ANAEROBIC DIGESTION

FORM 2.14 Details of Project to Produce Biogas by Anaerobic Digestion

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 149
 2.14 Systems to Produce Biogas by Anaerobic Digestion

SCHEDULE 2.14–A Confguration of Proposed System to Produce Biogas by Anaerobic Digestion

(i) Indicate the type of anaerobic digestion system: (v) Describe the type of biogas scrubbing equipment that will be used to clean
the biogas:
■ Completely Mixed

■ Plug Flow

■ Other (specify)
(vi) Describe the equipment that will be used to process the residue after digestion
(ii) Indicate the temperature range for the anaerobic digestion system: or to treat the recovered liquids:

■ Thermophylic (50 to 60 ºC [122 to 140 ºF])

■ Mesophylic (30 to 38 ºC [86 to 100 ºF])

■ Psychrophylic (15 to 25 ºC [59 to 77 ºF])

(vii) Describe the equipment that will be used to control odours:
(iii) Indicate the type and quantity (specify units) of each substrate processed per
year and the days of storage capacity of the buffer tank(s) for each substrate:

Buffer Tank
Type of Substrate Annual Consumption Capacity (days)
(viii) Indicate how the biogas will be used:

(iv) Indicate what pre-treatment will be done prior to adding the substrates to
the anaerobic digester reactor:

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 150
 2.14 Systems to Produce Biogas by Anaerobic Digestion

2.14.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.14 Systems to Produce Biogas by Anaerobic Digestion

Number Typical Capital Cost

1 Purchase and installation of buffer tank(s) for short-term storage of substrates prior to anaerobic digestion.

2 Purchase and installation of tanks for mixing and pre-treatment (e.g., thermal, chemical, mechanical, ultrasonic, electron beam
or biological pre-treatment) of substrates prior to anaerobic digestion.

3 Purchase and installation of an anaerobic digester reactor.

4 Purchase and installation of equipment to remove non-combustibles and contaminants (e.g., heat exchangers, scrubbing, stripping,
pressure swing absorption, gas compression, gas cooling, moisture separation and particulate filtration equipment).

5 Purchase and installation of clean gas compression equipment.

6 Purchase and installation of biogas storage equipment.

7 Purchase and installation of biogas piping.

2.14.6 SCHEMATICS OF QUALIFYING SYSTEMS BGS-3 Biogas production systems are eligible only if they use the organic waste
materials that are set out in the definition of biogas in subsection 1104(13)
A typical configuration of components to produce biogas that would qualify as a of the Regulations (see Section 3.0 of this Guide).
system to produce biogas by anaerobic digestion is shown in the schematic below.
BGS-4 Organic waste holding tanks qualify as buffer tanks if they are designed
and used for short-term storage (e.g., less than two weeks) of organic
2.14.6.1 Key to Notes on Schematic for Systems to Produce Biogas waste prior to digestion. Storage tanks designed and used to store
by Anaerobic Digestion organic waste for more than two weeks (e.g., liquid manure storage tanks
on farms) are not considered to be buffer tanks.
BGS-1 For eligible properties, see Section 2.14.2 of this Guide.

BGS-2 For ineligible properties, see Section 2.14.3 of this Guide.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 151
 2.14 Systems to Produce Biogas by Anaerobic Digestion

BGS 2.14.1 System to Produce Biogas by Anaerobic Digestion of Organic Waste

SCHEMATIC FOR CLASS 43.1 AND 43.2

title : SYSTEM TO PRODUCE BIOGAS BY

ANAEROBIC DIGESTION OF ORGANIC WASTE

DWG. No. BGS 2.14.1 2013-12-02

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 152
 2.15 Water-Current, Tidal or Wave Energy Equipment

CONTENTS SCHEMATICS

2.15.1 Water- Current, Tidal or Wave Energy Equipment ............................. 154 WTE 2.15.1 Equipment to Generate Electrical Energy from
Water-Current or Tidal Energy.......................................... 160
2.15.2 Eligible Properties .............................................................................. 154
WTE 2.15.2 Equipment to Generate Electrical Energy from
2.15.3 Ineligible Properties ........................................................................... 154
Wave Energy.......................................................................161
2.15.4 Application for Technical Opinion with Respect to
Class 43.1 or 43.2 Eligibility of Water- Current, Tidal or
Wave Energy Equipment.................................................................... 155
2.15.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 158
2.15.6 Schematics of Qualifying Equipment ................................................ 159

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 153
 2.15 Wave or Tidal Energy Equipment 1.0 OVERVIEW

2.15.1 WATER-CURRENT, TIDAL OR WAVE 2.15.3 INELIGIBLE PROPERTIES

ENERGY EQUIPMENT
Ineligible properties for water-current, tidal or wave energy equipment include
Water-current, tidal or wave energy equipment (described in subparagraph (d) the following:
(xiv) of Class 43.1) includes equipment that is used primarily for the purpose of
generating electrical energy from the kinetic energy of fowing water, tidal
• equipment that generates electrical energy by diverting or impeding the natural
currents or wave energy (otherwise than by diverting or impeding the natural fow of the water or using physical barriers (e.g., barrages) or dam-like structures;
fow of the water or using physical barriers or dam-like structures). • buildings;
• distribution equipment;
2.15.2 ELIGIBLE PROPERTIES • auxiliary electricity generating equipment;
Eligible properties for water-current, tidal or wave energy equipment include the • vehicles;
following:
• telephone and related equipment;
• support structures (e.g., mooring equipment, anchors, foundations and and
cable supports);
• access roads, sidewalks, parking areas and other similar surface construction.
• water-current, tidal or wave energy conversion equipment;
• electrical energy generation equipment;
• electric power conditioning equipment (e.g., AC/DC converters, DC/DC
step-up and step-down converters and inverters);
• control equipment (e.g., conversion equipment control, power control
and SCADA equipment);
• submerged cables and undersea collector hubs;
and
• transmission equipment.
Note: Water-current, tidal or wave energy equipment included in Class 43.1 or
43.2 is an eligible source of electrical energy for electrical energy storage
equipment (see section 2.19).

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 154
15 4
 2.15 Wave or Tidal Energy Equipment 1.0 OVERVIEW

2.15.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF WATER-CURRENT, TIDAL OR WAVE ENERGY EQUIPMENT

FORM 2.15 Details of Water-Current, Tidal or Wave Energy Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A or B as per the following pages as appropriate.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 155
15 5
 2.15 Wave or Tidal Energy Equipment 1.0 OVERVIEW

SCHEDULE 2.15–A Confguration of Proposed Water-Current or Tidal Energy Equipment

(i) Indicate type of water-current or tidal energy conversion equipment and describe (iv) Indicate type of electrical energy generator that is used by the water-current
where it is situated and how it is supported (e.g., foating, submerged, anchored or tidal energy conversion device(s):
to bottom, anchored to shore, on foundations, etc.)

■ Horizontal axis turbine

■ Vertical axis turbine

■ Other (specify)
(v) Indicate how the electrical energy is transmitted to shore (if applicable):
(ii) Indicate the number of water-current or tidal energy conversion devices
in the project and the sum of the rated generation capacity of all devices in
the project:

Number of Devices:

Sum of Rated Capacity of all Devices in Project:

(vi) Indicate the confguration of power conditioning and battery storage equipment
(iii) Indicate the coordinates of each water-current or tidal energy conversion device (if applicable) used on shore:
in the project (add sheets if necessary):

No. Name of Device Latitude Longitude

(vii) Indicate how the project is interconnected to an electrical grid or an end-user

of the electricity:

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 156
15 6
 2.15 Wave or Tidal Energy Equipment 1.0 OVERVIEW

SCHEDULE 2.15–B Confguration of Proposed Wave Energy Equipment

(i) Indicate type of tidal energy conversion equipment and describe where it is (iv) Indicate type of electrical energy generator that is used by the tidal energy
situated and how it is supported (e.g., onshore, offshore, foating, submerged, conversion device(s):
anchored to bottom, anchored to shore, on foundations, etc.)

■ Oscillating Water Column

■ Oscillating Body

■ Overtopping Device
(v) Indicate how the electrical energy is transmitted to shore (if applicable):
■ Other (specify)

(ii) Indicate the number of tidal energy conversion devices in the project and the sum
of the rated generation capacity of all devices in the project:

Number of Devices

Sum of Rated Capacity of all Devices in Project kW (vi) Indicate the confguration of power conditioning and battery storage equipment
(if applicable) used on shore:
(iii) Indicate the coordinates of each tidal energy conversion device in the project
(add sheets if necessary):

No. Name of Device Latitude Longitude

(vii) Indicate how the project is interconnected to an electrical grid or an end-user of

the electrical energy:

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 157
15 7
 2.15 Wave or Tidal Energy Equipment 1.0 OVERVIEW

2.15.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.15 Water-Current, Wave or Tidal Energy Equipment

Number Typical Capital Cost

Water-Current, Tidal or Wave Energy Equipment

1 Purchase and installation of water-current, tidal or wave energy conversion equipment including support structures or mooring
as required.

2 Purchase and installation of electrical energy generation and conversion equipment.

3 Purchase and installation of underwater collector hubs and step-up converters.

4 Purchase and installation of submerged cables.

5 Purchase and installation of onshore power conditioning equipment.

6 Purchase and installation of control equipment (e.g., water-current, tidal or wave energy conversion equipment controls, electric power controls and
Supervisory Control and Data Acquisition [SCADA] equipment).

7 Purchase and installation of electrical transmission equipment to transmit electrical energy generated by water-current, tidal or wave energy equipment to a
branch of a local electrical grid.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 158
15 8
 2.15 Wave or Tidal Energy Equipment 1.0 OVERVIEW

2.15.6 SCHEMATICS OF QUALIFYING EQUIPMENT

Typical configurations of water-current, tidal or wave electrical energy generation
equipment that would qualify as water-current, tidal or wave energy equipment are
shown in the schematics below.

2.15.6.1 Key to Notes on Schematics for Water-Current, Tidal or Wave

Energy Equipment

WTE-1 For eligible properties, see Section 2.15.2 of this Guide.

WTE-2 For ineligible properties, see Section 2.15.3 of this Guide.

WTE-3 Eligible electrical energy generation property includes generators and

equipment used at the first level of power transformation. The first level of
transformation includes equipment used for phase synchronization and
voltage regulation. After the first level of transformation, generation stops,
and the electricity is ready for use (e.g., ready to be put on transmission
lines). Typically, the eligible system boundary for electrical energy
generation equipment is located after the first level of transformation
at isolation switches that allow a utility to lock out a generating plant’s
power production.

WTE-4 Equipment that generates electricity from water-current, tidal or wave

energy by diverting or impeding the natural fow of the water or by using
physical barriers or dam-like structures is not eligible.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 159
15 9
 2.15 Wave or Tidal Energy Equipment

WTE 2.15.1 Equipment to Generate Electrical Energy from Water-Current or Tidal Energy

SCHEMATIC FOR CLASS 43.1 AND 43.2

title EQUIPMENT TO GENERATE ELECTRICAL

ENERGY FROM WATER-CURRENT OR TIDAL ENERGY

DWG. No. WTE 2.15.1 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 160
 2.15 Wave or Tidal Energy Equipment

WTE 2.15.2 Equipment to Generate Electrical Energy from Wave Energy

SCHEMATIC FOR CLASS 43.1 AND 43.2

title EQUIPMENT TO GENERATE ELECTRICAL

ENERGY FROM WAVE ENERGY

DWG. No. WTE 2.15.2 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 161
 2.16 District Energy Systems/Equipment

CONTENTS SCHEMATICS

2.16.1 District Energy Systems/Equipment.................................................. 163 DES 2.16.1 District Energy System.............................................................. 168
2.16.2 Eligible Properties .............................................................................. 163
2.16.3 Ineligible Properties ........................................................................... 163
2.16.4 Application for Technical Opinion with Respect to Class 43.1
or 43.2 Eligibility of District Energy Systems/Equipment.................. 164
2.16.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 166
2.16.6 Schematics of Qualifying Systems.................................................... 167

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2013 EDITION 162
 2.16 Cliff Street District Heating Plant

2.16.1 DISTRICT ENERGY SYSTEMS/EQUIPMENT 2.16.2 ELIGIBLE PROPERTIES

District energy equipment (described in subparagraphs (a)(iii.1) and (d)(xv) of Eligible properties of a qualifying district energy system include the following:
Class 43.1) includes equipment that is part of a district energy system that
is used primarily to provide heating or cooling from a central thermal energy • pipes and pumps used to collect and distribute an energy transfer medium;
generation unit to one or more buildings where the thermal energy is primarily • meters;
generated by the following:
• control equipment;
• an eligible cogeneration system (described in subparagraph (c)(i) of • chillers;
Class 43.1);
and
• active solar heating equipment (described in subclause (d)(i)(A)(I)
of Class 43.1); • heat exchangers (i.e., as part of energy transfer stations) that are attached to
the main distribution lines of a qualifying district energy system.
• a ground-source heat pump system (described in subclause (d)(i)(A)(II)
of Class 43.1);
2.16.3 INELIGIBLE PROPERTIES
• heat recovery equipment (described in subparagraph (d)(iv) of Class 43.1);
Properties that may be part of a district energy system but are ineligible under this
• geothermal energy equipment (described in subparagraph (d)(vii) of
category include the following:
Class 43.1);
or • buildings or other structures;

• specified-waste fuelled heat production equipment (described in • property used to distribute water that is for consumption, disposal or treatment
subparagraph (d)(ix) of Class 43.1). (i.e., wastewater treatment);
and
Note:
• property that is part of the internal heating or cooling system of a building.
A district energy system provides heating or cooling to one or more buildings
by continuously circulating, through a system of interconnected pipes, a
thermal medium (e.g., water or steam) that is heated or cooled by thermal
energy generated at a central generation unit.

District energy system and district energy equipment are defined in

subsection 1104(13) of the Regulations and in the Glossary of Terms
found in Section 3.0 of this Guide.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 163
 2.16 Cliff Street District Heating Plant

2.16.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY
OF DISTRICT ENERGY SYSTEMS/EQUIPMENT

FORM 2.16 Details of District Energy Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 164
 2.16 Cliff Street District Heating Plant

SCHEDULE 2.16–A Confguration of Proposed District Energy System

(i) Indicate the type of District Energy System: (iv) Indicate the type of technology used to recover or generate cool energy
(if applicable) for distribution:
■ Direct (connection to customer heating loop)
■ Absorption chillers (use waste heat as an input energy)
■ Indirect (connection to customer through an energy transfer heat exchanger)
■ Electrically driven chillers
■ Other (specify)
■ Ground-source heat pumps operated in reverse
(ii) Indicate the source of energy for the District Energy System:
■ Other (specify)
■ Cogeneration and specified-waste fuelled electrical generation system
(v) Describe the end-use of the distributed energy (for example: space heating and
■ Active solar heating equipment domestic hot water for large offce buildings or steam supply for process heat
used in industrial process) including heat loads:
■ Ground-source heat pump system

■ Heat recovery equipment

■ Geothermal energy equipment

■ Specified-waste fuelled heat production equipment

■ Other (specify)

(iii) Indicate the form of thermal energy distributed:

■ Steam
Pressure (leaving central generation unit)
Temperature (leaving central generation unit)

■ Hot Water
Supply temperature (at design conditions)
Return temperature (at design conditions)

■ Chilled Water
Supply temperature (at design conditions)
Return temperature (at design conditions)

■ Other (specify)

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 165
 2.16 Cliff Street District Heating Plant

2.16.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.16 District Energy Systems/Equipment

Number Typical Capital Cost

1 Purchase and installation of a piping connection with a central energy supply unit for a district energy system.

2 Purchase and installation of a central heat exchanger or water chiller if required to supply a heating or cooling medium to a district
energy system.

3 Excavation or trenching for the installation of insulated underground supply and return header piping to distribute an energy transfer
medium from the main energy supply connection to one or more buildings.

4 Purchase and installation of insulated underground supply and return header piping including supply and return pumps, chemical
injection system, expansion tank, central energy metering and control equipment as well as header connections and shut-off valves
for each building connected to the district energy system.

5 Purchase and installation of a heat exchanger for the energy transfer station at each building to transfer heating or cooling energy
from the district energy heating medium to the building or industrial process heating or cooling medium.

6 Purchase and installation of piping, energy metering equipment, pressure and temperature indicators, freeze protection equipment
and controls at each building or industrial process heat exchanger to connect it to the district energy system and the building or
industrial process heating and cooling equipment.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 166
 2.16 Cliff Street District Heating Plant

2.16.6 SCHEMATICS OF QUALIFYING SYSTEMS

A typical arrangement of district energy equipment that would qualify as a district
energy system is shown in the schematic below.

2.16.6.1 Key to Notes on Schematics for District Energy Systems/Equipment

DES-1 For eligible properties, see Section 2.16.2 of this Guide.

DES-2 For ineligible properties, see Section 2.16.3 of this Guide.

DES-3 Property that is part of the internal heating or cooling systems of

a building is not considered to be part of a district energy system.
Buildings or parts of buildings are not eligible.

DES-4 The energy transfer medium must be heated or cooled using thermal
energy that is primarily produced by an electrical cogeneration system,
active solar heating equipment, a ground-source heat pump system,
heat recovery equipment, geothermal energy equipment
or specified-waste fuelled heat production equipment. See
Sections 2.1, 2.3, 2.5, 2.8 and 2.10 of this Guide.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 167
 2.16 Cliff Street District Heating Plant

DES 2.16.1 District Energy System

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE
DISTRICT ENERGY SYSTEM

dwg . No. DES 2.16.1 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 168
 2.17 Producer Gas Generating Equipment

CONTENTS SCHEMATICS

2.17.1 Producer Gas Generating Equipment ............................................... 170 PGE 2.17.1 Producer Gas Generating Equipment
with Methanization .......................................................... 174
2.17.2 Eligible Properties .............................................................................. 170
PGE 2.17.2 Producer Gas Generating Equipment with
2.17.3 Ineligible Properties ........................................................................... 170
Feedstock Pre-Treatment ...............................................175
2.17.4 Application for Technical Opinion with Respect to
Class 43.1 or 43.2 Eligibility of Producer
Gas Generating Equipment ............................................................... 171
2.17.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 173
2.17.6 Schematics of Qualifying Systems.................................................... 173

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 169
 2.17 Producer Gas Generating Equipment

2.17.1 PRODUCER GAS GENERATING EQUIPMENT 2.17.2 ELIGIBLE PROPERTIES

Eligible properties for producer gas generating equipment include the following:
Producer gas generating equipment (described in subparagraph (d)(xvi) of
Class 43.1) includes equipment that is part of a system that generates • related piping (including fans and compressors);
producer gas (other than producer gas that is to be converted into liquid
• air separation equipment;
biofuels or chemicals) primarily from eligible waste fuel using a thermo-
chemical conversion process. • storage equipment;
• equipment used for drying or shredding eligible waste fuel;
Note:
• ash-handling equipment;
The thermo-chemical conversion process to generate producer gas is
generally referred to as gasification. • equipment used to upgrade the producer gas into biomethane
and
Eligible feedstocks for producer gas generating equipment include biogas,
bio-oil, digester gas, landfill gas, municipal waste, plant residue, pulp and • equipment used to remove non-combustibles and contaminants from the
paper waste, wood waste and fossil fuel. producer gas

Producer gas and what constitutes eligible feedstock for its production are
2.17.3 INELIGIBLE PROPERTIES
defined in subsection 1104(13) of the Regulations and in the Glossary of
Terms found in Section 3.0 of the Guide. Ineligible properties for producer gas generating equipment include the following:

• buildings or other structures;

• heat rejection equipment (such as condensers and cooling water systems);
and
• equipment used to convert producer gas into liquid biofuels or chemicals.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 170
 2.17 Producer Gas Generating Equipment

2.17.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY OF PRODUCER GAS
GENERATING EQUIPMENT

FORM 2.17 Details of Producer Gas Generating Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $ Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 171
 2.17 Producer Gas Generating Equipment

SCHEDULE 2.17–A Confguration of Proposed Producer Gas Generating Equipment

(i) Indicate the type of Producer Gas Generating Equipment: (iii) Describe the equipment and/or processes employed to refne or upgrade the
producer gas:
■ Counter-current fixed bed (“up draft”) gasifier

■ Co-current fixed bed (“down draft”) gasifier

■ Fluidized bed reactor

■ Entrained fow gasifier

(iv) Describe the end-use of the producer gas (for example: electrical energy
■ Heat pipe reformer
generation or natural gas pipeline injection):
■ Other (specify)

(ii) The producer gas will be generated from (please indicate units):

Annual Energy Content

Source % of Total Consumption (HHV basis)

■ Wood Waste

■ Municipal Waste

■ Landfill Gas

■ Digester Gas

■ Bio-Oil

■ Biogas

■ Plant Residue

■ Pulp and Paper Waste

■ Coal

■ Coke

■ Petroleum

■ Natural Gas
■ Other (specify)

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 172
 2.17 Producer Gas Generating Equipment

2.17.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.17 Producer Gas Generating Equipment

Typical Capital Cost

1 Construction of working platforms that are not an integral part of a building or other structure.

2 Purchase and installation of feedstock-handling components used to shred or dry the material (e.g., hoggers, drum or belt dryers).

3 Purchase and installation of thermo-chemical reactor vessels and related equipment (e.g. material infeed and ash-handling equipment).

4 Purchase and installation of recycle gas or char burner to supply heat to reactor or a fuidizing medium.

5 Purchase and installation of equipment used primarily to supply oxidant to the reactor (e.g. dedicated air separation or steam generation equipment).

6 Purchase and installation of HRSG or thermal waste recovery equipment and ancillary equipment such as duct work, piping, controls and instrumentation.

7 Purchase and installation of equipment to remove non-combustibles and contaminants from the producer gas (e.g., heat exchangers, scrubbing, stripping,
pressure swing absorption, gas compression, gas cooling, moisture separation and particulate filtration equipment).

8 Purchase and installation of catalytic methanization reactors and related equipment.

9 Purchase and installation of producer gas or biomethane storage equipment.

10 Purchase and installation of related equipment (e.g., controls, instrumentation, pumps, blowers, heat exchangers and process piping).

2.17.6 SCHEMATICS OF QUALIFYING SYSTEMS PGE-2 For ineligible properties, see Section 2.17.3 of this Guide.

PGE-3 Producer gas generating equipment used to generate producer gas that
Typical configurations of components that would qualify as producer gas
is to be converted into liquid biofuels or chemicals is ineligible.
generating equipment are shown in the schematics below.
PGE-4 In systems to generate producer gas, equipment used for drying or
2.17.6.1 Key to Notes on Schematics for Gasifcation Equipment shredding eligible waste fuel is eligible.

PGE-1 For eligible properties, see Section 2.17.2 of this Guide.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 173
 2.17 Producer Gas Generating Equipment

PGE 2.17.1 Producer Gas Generating Equipment with Methanization

SCHEMATIC FOR CLASS 43.1 AND 43.2

title PRODUCER GAS GENERATING EQUIPMENT

WITH METHANATION

DWG. No. PGE 2.17.1 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 174
 2.17 Producer Gas Generating Equipment

PGE 2.17.2 Producer Gas Generating Equipment with Feedstock Pre-Treatment

SCHEMATIC FOR CLASS 43.1 AND 43.2

title PRODUCER GAS GENERATING EQUIPMENT

WITH FEEDSTOCK PRE-TREATMENT

dwg . No. PGE 2.17.2 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 175
2.18 Electric Vehicle Charging Equipment

CONTENTS SCHEMATICS

2.18.1 Electric Vehicle Charging Equipment ................................................ 177 EVCE 2.18.1 Electric Vehicle Charging Equipment Included
in Class 43.1 ....................................................................181
2.18.2 Eligible Properties .............................................................................. 177
EVCE 2.18.2 Electric Vehicle Charging Equipment Included
2.18.3 Ineligible Properties ........................................................................... 177
in Class 43.2....................................................................182
2.18.4 Electrical Capacity ............................................................................. 177
2.18.5 Application for Technical Opinion with Respect to Class 43.1
or 43.2 Eligibility of Electric Vehicle Charging Equipment ................ 178
2.18.6 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 180
2.18.7 Schematics of Qualifying Systems.................................................... 180

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 176
 2.18 Electric Vehicle Charging Equipment

2.18.1 ELECTRIC VEHICLE CHARGING EQUIPMENT • distribution and control panels;

• circuit breakers;
Electric vehicle (EV) charging equipment (described in subparagraph (d) and
(xvii) of Class 43.1) includes EV charging stations that meet certain power
capacity thresholds and other electrical equipment used to supply power to • conduits and related wiring.
those EV charging stations provided that:

• more than 75% of the equipment’s electrical capacity is dedicated to

2.18.3 INELIGIBLE PROPERTIES
charging electric vehicles;
Properties that may be part of an electric vehicle charging system but are ineligible
and under this category include the following:
• the equipment is located on the load side of an electricity meter used for • buildings or other structures;
billing purposes by a power utility or on the generator side of an electricity
meter used to measure electricity generated by the owner of the EV and
charging equipment. • access roads, sidewalks, parking areas and other similar surface construction.
EV Charging Stations: EV charging stations that supply more than
10 kilowatts of power are eligible for inclusion in Class 43.1. EV charging 2.18.4 ELECTRICAL CAPACITY
stations that supply at least 90 kilowatts of power are eligible for inclusion
in Class 43.2.
For the purpose of determining eligibility, the electrical capacity of other electrical
Other Electrical Equipment: Other electrical equipment used in connection equipment used in connection with EV charging stations is generally measured in
with EV charging stations that supply more than 10 kilowatts of power is terms of its current-carrying capacity (or ampacity).
eligible for inclusion in Class 43.1. Other electrical equipment used in
For example, an 11.5 kW EV charging station might draw up to 48 amps from a
connection with EV charging stations that supply at least 90 kilowatts of
single-phase 240 V circuit protected by a 60 amp over-current protection device.
power is eligible for inclusion in Class 43.2 even if that other electrical
The circuit itself (the associated cabling, circuit breaker, local disconnect etc.)
equipment also supplies power to other EV charging stations that supply
would meet the capacity test since 100% of its capacity is dedicated to charging
more than 10 kilowatts of power.
electric vehicles.

However, if the distribution panel housing that 60 amp over-current protection

2.18.2 ELIGIBLE PROPERTIES device also houses other dedicated circuits (that are not necessary for EV
charging equipment), and those circuits have a collective current carrying capacity
Eligible properties of an EV charging system include the following: of 20 amps or more, then the distribution panel and any ‘upstream’ equipment
supplying power to that panel would not meet the capacity test since not more
• electric vehicle charging stations; than 75% of its total current-carrying capacity would be dedicated to charging
• transformers; electric vehicles.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 177
 2.18 Electric Vehicle Charging Equipment

2.18.5 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY OF ELECTRIC
VEHICLE CHARGING EQUIPMENT

FORM 2.18 Details of Electric Vehicle Charging Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer
Estimated Portion of Total Capitalized Cost
Eligible Under Class 43.1 or 43.2: $
Corporate
Name and title in block letters Seal of Applicant
Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 178
 2.18 Electric Vehicle Charging Equipment

SCHEDULE 2.18 A Confguration of Electric Vehicle Charging Equipment

(i) Indicate the quantity model number and type of EV charger(s) to be installed: (ii) Provide manufacturer’s specification sheet for the EV charging station(s)

Quantity Manufacturer Model Number Rating (kW) (iii) Provide a site plan indicating the layout of existing parking space(s) and
proposed location of EV parking space(s) with respect to existing buildings and
structures.

(iv) Provide single line diagram of the distribution system showing all proposed
components clearly differentiated from existing components and which
identifies:

a) Conductor types and ratings

b) Overcurrent device types and ratings

c) Distribution equipment types and ratings (transformer, panel board, etc.)

d) Calculated fault current levels at all distribution points

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 179
 2.18 Electric Vehicle Charging Equipment

2.18.6 CAPITAL COSTS TYPICALLY INCLUDED IN 2.18.7 SCHEMATICS OF QUALIFYING SYSTEMS

CLASS 43.1 OR 43.2
Typical configurations of components that would qualify as electric vehicle
charging equipment are shown in the schematics below.
Project Cost Table 2.18 Electric Vehicle Charging Equipment
2.18.7.1 Key to Notes on Schematics for Electric Vehicle Charging Stations
Typical Capital Cost
EVCE-1 For eligible properties, see Section 2.18.2 of this Guide.
1 Purchase and installation of EV charging stations.
EVCE-2 For ineligible properties, see Section 2.18.3 of this Guide.
2 Purchase and installation of electrical equipment used to deliver
EVCE-3 Other electrical equipment used to supply power to EV charging stations
power to EV charging stations (power distribution panels, fuses,
is eligible provided that more than 75% of the equipment’s electrical
transformers, disconnects, cabling and related conduit or cable
capacity is dedicated to charging electric vehicles.
troughs).
EVCE-4 Other electrical equipment used to supply power to EV charging stations
3 Trenching and concrete repair for buried cable dedicated to EV
that supply more than 10 kilowatts and less than 90 kilowatts of power is
charging equipment.
eligible for inclusion in Class 43.1.
4 Concrete pads or posts required for mounting the EV charging
EVCE-5 Other electrical equipment used to supply power to EV charging stations
equipment.
that supply at least 90 kilowatts of power is eligible for inclusion in Class
5 Purchase and installation of data network infrastructure equipment 43.2 even if that other electrical equipment also supplies power to EV
and systems software used to control and direct data on EV station charging stations that supply more than 10 kilowatts of power.
usage, availability and billing information.
EVCE-6 Buildings or other structures are ineligible.
6 Barriers required to prevent vehicles from damaging EV charging
EVCE-7 Barriers required to prevent vehicles from damaging EV charging
equipment (e.g. bollards).
equipment are eligible.
7 Dedicated signage and lighting.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 180
 2.18 Electric Vehicle Charging Equipment

EVCE 2.18.1 Electric Vehicle Charging Equipment Included in Class 43.1

SCHEMATIC FOR CLASS 43.1 AND 43.2

title ELECTRIC VEHICLE CHARGING EQUIPMENT

INCLUDED IN CLASS 43.1

dwg . No. EVCE 2.18.1 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 181
 2.18 Electric Vehicle Charging Equipment

EVCE 2.18.2 Electric Vehicle Charging Equipment Included in Class 43.2

SCHEMATIC FOR CLASS 43.1 AND 43.2

title ELECTRIC VEHICLE CHARGING EQUIPMENT

INCLUDED IN CLASS 43.2

DWG. No. EVCE 2.18.2 2020-01 -31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 182
2.19 Electrical Energy Storage Equipment

CONTENTS SCHEMATICS

2.19.1 Electrical Energy Storage Equipment................................................ 184 EESE 2.19.1 Sources of Electrical Energy that are Equipment
Included in Class 43.1 or 43.2 ........................................188
2.19.2 Eligible Properties .............................................................................. 184
EESE 2.19.2 Battery Electrical Energy Storage Equipment
2.19.3 Ineligible Properties ........................................................................... 184
used for Peak/Load Shifting ...........................................189
2.19.4 Application for Technical Opinion with Respect to
EESE 2.19.3 Compressed Air Energy Storage Equipment .................190
Class 43.1 or 43.2 Eligibility of Electrical Energy
Storage Equipment ............................................................................ 185 EESE 2.19.4 Flywheel Energy Storage Equipment .............................191
2.19.5 Capital Costs Typically Included in Class 43.1 or 43.2 ..................... 187
2.19.6 Schematics of Qualifying Systems.................................................... 187

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 183
 2.19 Electrical Energy Storage Equipment

2.19.1 ELECTRICAL ENERGY STORAGE EQUIPMENT 2.19.3 INELIGIBLE PROPERTIES

Ineligible properties for electrical energy storage equipment include the following:
Electrical energy storage equipment (described in subparagraph (d)(xviii) of
Class 43.1) includes equipment that is used primarily for the purpose of • buildings;
storing and discharging electrical energy.
• pumped hydroelectric storage;
If the electrical energy to be stored is generated by equipment included in • hydro electric dams and reservoirs;
Class 43.2 the electrical energy storage equipment is eligible for inclusion in
• property used solely for backup electrical energy;
Class 43.2.
• batteries used in motor vehicles;
If the electrical energy to be stored is generated by equipment included in
and
Class 43.1, the electrical energy storage equipment is eligible for inclusion in
Class 43.1. • fuel cell systems where the hydrogen is produced via steam reformation
of methane.
Stand-alone electrical energy storage equipment is eligible for inclusion in
Class 43.1 provided it has a roundtrip efficiency greater than 50%.

Roundtrip efficiency is the useful energy output of an electrical energy

storage system divided by the energy input into the system, expressed as a
percentage, and inclusive of all system losses and electrical inefficiencies
involved in the storage of the energy under normal conditions.

2.19.2 ELIGIBLE PROPERTIES

Eligible properties for electrical energy storage equipment include the following:

• batteries;
• compressed air energy storage;
• fywheels;
• ancillary equipment (including control and conditioning equipment);
and

• related structures.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 184
 2.19 Electrical Energy Storage Equipment

2.19.4 APPLICATION FOR TECHNICAL OPINION WITH RESPECT TO CLASS 43.1 OR 43.2 ELIGIBILITY OF ELECTRICAL
ENERGY STORAGE EQUIPMENT

FORM 2.19 Details of Electrical Energy Storage Project

Company Information Eligible Property Description

For property that is proposed for inclusion in Class 43.1 or 43.2, attach the following
Company Name information:

• A list including: 1) reference no., 2) item description, 3) name of manufacturer,

Company Address 4) date of acquisition and 5) notes.

• A simple sketch or process fow diagram of the system or equipment and

Class 43.1 or 43.2 Property Address Activity at this Location a process narrative.

• A completed Schedule A as per the following page.

Company Liaison for this Request Title Telephone Number
Were any components used previously? Yes ■ No ■

Company Technical Contact Title Telephone Number If “Yes”, provide details on a separate sheet.

Status of Project Certifcation

■ Installed Equipment or Completed Project ■ Potential Project I certify that the information provided in this application is true.

Dated at on
Project Cost and Completion Date

Estimated Total Capitalized Cost of Project: $

Signature of owner, partner or authorized officer

Estimated Portion of Total Capitalized Cost Corporate
Eligible Under Class 43.1 or 43.2: $ Seal of Applicant

Name and title in block letters

Estimated Project Completion Date (yyyy/mm/dd):

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 185
 2.19 Electrical Energy Storage Equipment

SCHEDULE 2.19 A Confguration of Proposed Electrical Energy Storage Equipment

(i) Indicate the type of Electrical Energy Storage System: ■ Water-Current, Tidal or Wave Energy Equipment (complete Form 2.15)

■ Lithium-Ion Battery ■ Other (specify)

■ Flow Battery
(iii) Indicate how the Electrical Energy Storage Equipment will be used for
■ Compressed Air Energy Storage the purpose of gaining or producing income (e.g. peak shaving, ancillary
services etc.).
■ Flywheel

■ Other (specify)

(ii) Indicate the source of electrical energy for the Electrical Energy Storage
Equipment:

■ Utility Grid (provide details on roundtrip efficiency of the Electrical Energy Storage
Equipment)

■ Cogeneration, Enhanced Combined Cycle or Specified-Waste Fuelled Electrical

Generation Equipment (complete Form 2.1)

■ Thermal Waste Electrical Generation Equipment (complete Form 2.2)

(iv) Provide an electrical single line diagram indicating how the Electrical Energy
■ Small-Scale Hydroelectric Installation (complete Form 2.4)
Storage Equipment is connected to a utility grid and/or in relation to electrical
■ Wind Energy Conversion Systems (complete Form 2.6) energy generation equipment included in Class 43.1 or 43.2.

■ Photovoltaic Electrical Generation Equipment (complete Form 2.7)

■ Geothermal Energy Equipment (complete Form 2.8)

■ Expansion Engine Systems (complete Form 2.11)

■ Fixed Location Fuel Cell Equipment (complete Form 2.13)

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 186
 2.19 Electrical Energy Storage Equipment

2.19.5 CAPITAL COSTS TYPICALLY INCLUDED IN CLASS 43.1 OR 43.2

Project Cost Table 2.19 Electrical Energy Storage Equipment

Typical Capital Cost

1 Construction of working platforms that are not an integral part of a building or other structure.

2 Purchase and installation of battery storage equipment including battery modules, inverters, cooling systems and housings or enclosures that are not
buildings.

3 Purchase and installation of compressed air energy storage equipment including motors, compressors, expanders, generators, cooling and lubrication
equipment, thermal storage equipment, heat exchangers, air filters, piping and compressed air storage vessels or the cost of drilling air injection/extraction
wells, related well casings and well head equipment used in connection with geological compressed air energy storage systems.

4 Purchase and installation of fywheel equipment including rotors, motor/generators, bearings, vacuum pumps, cooling systems and housings and the cost
of vaults, structures or other civil works other than buildings that are required for the safe anchoring and containment of the fywheel equipment.

5 Purchase and installation of ancillary power electronics, controls, instrumentation and safety equipment required to operate the electrical energy storage
equipment.

6 Purchase and installation of power transformers and switchgear equipment required for grid interconnection or integration with electrical generation
equipment included in Class 43.1 or 43.2.

2.19.6 SCHEMATICS OF QUALIFYING SYSTEMS equipment used in connection with other equipment included in Class
43.1 or 43.2.
Typical configurations of components that would qualify as electrical energy
EESE-4 Eligible electrical energy storage property includes equipment used to
storage equipment are shown in the schematics below.
discharge electrical energy and equipment used at the first level of power
transformation. The first level of transformation includes equipment used
2.19.6.1 Key to Notes on Schematics for Electric Vehicle Charging Stations
for phase synchronization and voltage regulation. After the first level of
transformation, the storage and subsequent discharge of electrical energy
EESE-1 For eligible properties, see Section 2.19.2 of this Guide. stops, and the electricity is ready for use (e.g., ready to be put on
transmission lines). Typically, the eligible system boundary for electrical
EESE-2 For ineligible properties, see Section 2.19.3 of this Guide. energy storage equipment is located after the first level of transformation
at isolation switches that allow a utility to lock out a generating plant’s
EESE-3 Stand-alone electrical energy storage equipment is eligible for inclusion in power production.
Class 43.1 provided it has a roundtrip efficiency greater than 50%. There
is no roundtrip efficiency threshold for electrical energy storage

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 187
 2.19 Electrical Energy Storage Equipment

EESE 2.19.1 Sources of Electrical Energy that are Equipment Included in Class 43.1 or 43.2

SCHEMATIC FOR CLASS 43.1 AND 43.2

title sour ces OF ELECTRICAL ENERGY THAT ARE EQUIPMENT

INCLUDED IN CLASS 43.1 OR 43.2

DWG. No. EESE 2.19.1 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 188
 2.19 Electrical Energy Storage Equipment

EESE 2.19.2 Battery Electrical Energy Storage Equipment used for Peak/Load Shifting

SCHEMATIC FOR CLASS 43.1 AND 43.2

TITLE BATTERY ELECTRICAL ENERGY STORAGE EQUIPMENT

USED FOR PEAK SHAVING / LOAD SHIFTING

DWG. No. EESE 2.19.2 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 189
 2.19 Electrical Energy Storage Equipment

EESE 2.19.3 Compressed Air Energy Storage Equipment

SCHEMATIC FOR CLASS 43.1 AND 43.2

title ELECTRICAL ENERGY STORAGE EQUIPMENT

COMPRESSED AIR ENERGY STORAGE
DWG. No. EESE 2.19.3 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 190
 2.19 Electrical Energy Storage Equipment

EESE 2.19.4 Flywheel Energy Storage Equipment

SCHEMATIC FOR CLASS 43.1 AND 43.2

title ELECTRICAL ENERGY STORAGE EQUIPMENT

FLYWHEEL ENERGY STORAGE
DWG. No. EESE 2.19.4 2020-01-31

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 191
3.0 Glossary of Terms

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 192
 3.0 GLOSSARY OF TERMS

Certain terms used in this guide are explained below. Terms bolded in italics are Cogeneration System: A system that simultaneously produces electricity and
defined in subsection 1104(13) of the Regulations. Text in italics is excerpted from useful thermal energy from eligible fuel or fuels in an integrated process. For
the Regulations. example, a natural gas-fired boiler producing steam used by a steam turbine
generator would be considered to be a cogeneration system if the heat in the low
Basic oxygen furnace gas: The gas that is produced intermittently in a basic pressure steam exhausted (extracted) from the steam turbine were used in an
oxygen furnace of a steel mill by the chemical reaction of carbon in molten steel industrial process. If, however, the heat in the steam turbine exhaust (or extraction)
and pure oxygen. were not used, and the steam requirements of the industrial process were supplied
directly from the boiler, the electricity generation and thermal energy supply
Biogas: The gas produced by the anaerobic digestion of organic waste that
processes would not be considered to be integrated and therefore the boiler
is food and animal waste, manure, plant residue, pulp and paper by-product,
and steam turbine would not be considered to be a cogeneration system.
separated organics, wood waste or sludge from an eligible sewage
treatment facility. Combined Cycle Cogeneration System: A cogeneration system consisting
of a gas turbine generator, a HRSG and a steam turbine generator. Hot exhaust
Bio-oil: Liquid fuel that is created from wood waste or plant residues using a
gases from the gas turbine generator are used to produce steam in the HRSG,
thermo-chemical conversion process that takes place in the absence of oxygen.
the steam from which is used to drive the steam turbine generator. Useful heat
Blast furnace gas: The gas produced in a blast furnace of a steel mill, by may be extracted from the steam turbine exhaust, an extraction point on the
the chemical reaction of carbon (in the form of coke, coal or natural gas), steam turbine, or from the HRSG.
the oxygen in air and iron ore.
Digester gas: A mixture of gases that are produced by the decomposition
Cheng Cycle: A cogeneration system in which high-pressure steam produced in of organic waste in a digester and that are extracted from an eligible sewage
a topping cycle is returned to the gas turbine just in front of the combustor section. treatment facility for that organic waste.
This increases the mass fow through the gas turbine section (thereby increasing the
Distribution equipment: Equipment (other than transmission equipment) used
electrical output) without increasing fuel consumption. In this system configuration,
to distribute electrical energy generated by electrical generating equipment.
which is a variation of a combined cycle cogeneration system, the gas turbine also
serves as a non-condensing steam turbine. District energy equipment: Property that is part of a district energy system
and that consists of pipes or pumps used to collect and distribute an energy
Classifer: An industrial machine for sorting or mechanical screening of materials
transfer medium, meters, control equipment, chillers and heat exchangers that
by size, shape, or density.
are attached to the main distribution line of a district energy system, but does
not include

(a) property used to distribute water that is for consumption, disposal or

treatment; or

(b) property that is part of the internal heating or cooling system of a building.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 193
 3.0 GLOSSARY OF TERMS

District energy system: A system that is used primarily to provide heating or Fossil fuel: A fuel that is petroleum, natural gas or related hydrocarbons, basic
cooling by continuously circulating, from a central generation unit to one or more oxygen furnace gas, blast furnace gas, coal, coal gas, coke, coke oven gas,
buildings through a system of interconnected pipes, an energy transfer medium lignite or peat.
that is heated or cooled using thermal energy.
Gas Turbine Cogeneration System: A cogeneration system that uses a gas
Eligible landfll site: A landfll site that is situated in Canada, or a former landfll or combustion turbine (Brayton cycle) to produce electrical power. The exhaust
site that is situated in Canada, and, if a permit or licence in respect of the site is gas from the turbine is the source of useful heat energy and is most often used
or was required under any law of Canada or of a province, for which the permit to generate steam in a heat recovery steam generator.
or licence has been issued.
Generation of Electricity: The provisions of Class 43.1 and Class 43.2 differentiate
Eligible sewage treatment facility: A sewage treatment facility situated in between equipment used principally for electrical generation, for transmission and
Canada for which a permit or license is issued, pursuant to any law in Canada for distribution. The generation system ends at the point where the electricity is
or of a province. ready for use. Typically, this is after voltage regulation, frequency adjustment and
phase synchronization.
Eligible waste fuel: Biogas, bio-oil, digester gas, landfll gas, municipal waste,
plant residue, pulp and paper waste and wood waste. Knockout Pot: A device used in industrial processes to separate a vapour-
liquid mixture.
Eligible waste management facility: A waste management facility that is
situated in Canada and for which a permit or license is issued under any law Landfll gas: A mixture of gases that are produced from the decomposition
of Canada or of a province. of organic waste and that are extracted from an eligible landfll site.

Enhanced combined cycle system: An electrical generating system in which Motor Control Centre: A central panel with motor starters, circuit breakers and
thermal waste from one or more natural gas compressor systems is recovered disconnect switches for control and operation of several electric motors in a plant.
and used to contribute at least 20 percent of the energy input of a combined
cycle process in order to enhance the generation of electricity, but does not Municipal waste: The combustible portion of waste material (other than waste
include the natural gas compressor systems. material that is considered to be toxic or hazardous waste pursuant to any law
of Canada or of a province) that is generated in Canada and that is accepted at
Food and animal waste: Organic waste that is disposed of in accordance an eligible landfll site or an eligible waste management facility and that, when
with the applicable laws of Canada or a province and that is burned to generate energy emits only those fuids or other emissions that are
in compliance with the law of Canada or of a province.
(a) generated during the preparation or processing of food or beverage for
human or animal consumption; Nacelle: The enclosure covering the gearbox, electrical energy generator and
control systems that are mounted on top of the tower of a wind turbine generator.
(b) food or beverage that is no longer ft for human or animal consumption; or
(c) animal remains. Photovoltaic: Pertains to the direct conversion of light into electricity.

Photovoltaic Array: An interconnected system of photovoltaic panels that

function as a single electricity-producing unit. The panels are assembled as
a discrete structure, with common support or mounting.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 194
 3.0 GLOSSARY OF TERMS

Photovoltaic Cell: A device that converts light directly into electricity. Photovoltaic Pulp and paper waste: Pulp and paper waste means:
cells are the building blocks of a photovoltaic module.
(a) tall oil soaps, crude tall oil and turpentine that are produced as by-products
Photovoltaic Module: A number of photovoltaic cells electrically interconnected in of the processing of wood into pulp or paper; and
either series or parallel and mounted together, usually in a sealed unit of convenient
size for shipping, handling and assembling into panels or arrays. (b) the by-product of a pulp or paper plant’s effuent treatment, or its de-inking
processes, if that by-product has a solid content of at least 40 per cent
Photovoltaic Panel: A group of modules fastened together and wired in series or before combustion.
parallel. The term “panel” is often used interchangeably with the term “module”.
Primarily/Principally: These terms generally refer to more than 50 percent for
Plant residue: The residue of plants (not including wood waste and waste that no a given purpose.
longer has the chemical properties of the plants of which it is a residue) that would
otherwise be waste material and that is used Reciprocating Engine Cogeneration System: A cogeneration system in which
stationary, industrial, piston engines (based on either the Diesel or Otto cycle) drive
(a) in a system that converts biomass into bio-oil or biogas, or an electric generator while useful heat is recovered from the engine’s hot exhaust
gases, cooling water and lubricating oil.
(b) as an eligible waste fuel.
Roundtrip Effciency: The useful energy output from an electrical energy storage
Producer Gas: Fuel the composition of which, excluding its water content, is all system divided by the energy input into the system, expressed as a percentage,
or substantially all non-condensable gases that is generated primarily from eligible and inclusive of all system losses and electrical inefficiencies involved in the
waste fuel using a thermo-chemical conversion process and that is not generated storage of the energy under normal conditions.
using any fuels other than eligible waste fuel or fossil fuel.
Separated organics: Organic waste (other than waste that is considered to be
Programmable Logic Controller: A programmable digital computer that is toxic or hazardous waste under any law of Canada or a province) that could, but
programmed to automate the control of an electromechanical process in a for its use in a system that converts biomass into biogas, be disposed of in an
plant according to established operating logic. eligible waste management facility or eligible landfll site.

Pulp and paper by-product: Pulp and paper by-product means tall oil soaps Supervisory Control and Data Acquisition (SCADA): Computer control
and crude tall oil that are produced as by-products of the processing of wood into systems that monitor and control entire industrial processes or complexes
pulp or paper and the by-product of a pulp or paper plant’s effuent treatment or of systems spread over large areas.
its de-inking processes.
Solution gas: A fossil fuel that is a gas that would otherwise be fared and has
been extracted from a solution of gas and produced oil.

Spent pulping liquor: The by-product of a chemical process of transforming

wood into pulp, consisting of wood residue and pulping agents.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 195
 3.0 GLOSSARY OF TERMS

Steam Turbine Cogeneration System: A cogeneration system in which a boiler

produces steam to drive a turbine generator (Rankine cycle) and to provide useful
heat. Steam turbines are either extraction-condensing or non-condensing. In
the former, useful thermal energy is taken from an intermediate extraction port
of a condensing turbine. In the latter, the useful heat is discharged from a non-
condensing or back-pressure turbine, which drives a generator. Depending on
the process, the condensate may or may not be returned to the boiler.

Substantially: Generally means greater than or equal to 90 percent.

Thermal waste: Waste heat energy extracted from a distinct point of rejection
in an industrial process that would otherwise

(a) be vented to the atmosphere or transferred to a liquid; and

(b) not be used for a useful purpose.

Transmission equipment: Equipment used to transmit more than 75 percent

of the annual electrical energy generated by electrical generating equipment,
but does not include a building.

Wood waste: Includes scrap wood, sawdust, wood chips, bark, limbs, saw-ends
and hog fuel, but does not include spent pulping liquor and any waste that no
longer has the physical or chemical properties of wood.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 196
4.0 Key to Symbols Used
in Schematics

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 197
 4.0 KEY TO SYMBOLS USED IN SCHEMATICS

Key 4.1 Key to Mechanical Symbols Used in Schematics

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 198
 4.0 KEY TO SYMBOLS USED IN SCHEMATICS

Key 4.2 Key to Mechanical Symbols (Cont’d), Electrical Symbols, Line Types and Hatch Patterns Used in Schematics

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 199
5.0 List of Forms

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 200
 5.0 LIST OF FORMS

FORM 2.1 Details of Cogeneration, Enhanced Combined Cycle or FORM 2.11 Details of Expansion Engine Project...................................... 126
Specified-Waste Fuelled Electrical Generation Project ............ 28
FORM 2.12 Details of Project to Convert Biomass to Bio-Oil ................... 132
FORM 2.2 Details of Thermal Waste Electrical Generation Project ........... 50
FORM 2.13 Details of Fixed Location Fuel Cell Project............................. 139
FORM 2.3 Details of Active Solar Heating or Ground-Source Heat
Pump Project ......................................................................... 61 FORM 2.14 Details of Project to Produce Biogas by Anaerobic Digestion 149

FORM 2.4 Details of Small-Scale Hydro-Electric Project .......................... 74 FORM 2.15 Details of Water-Current, Tidal or Wave Energy Project ........ 155

FORM 2.5 Details of Heat Recovery Project ............................................ 81 FORM 2.16 Details of District Energy Project........................................... 164

FORM 2.6 Details of Wind Energy Conversion Project ............................. 88 FORM 2.17 Details of Producer Gas Generating Project...........................172

FORM 2.7 Details of Photovoltaic Electrical Generation Project ............... 95 FORM 2.18 Details of Electric Vehicle Charging Project ............................179

FORM 2.8 Details of Geothermal Energy Project ................................... 101 FORM 2.19 Details of Electrical Energy Storage Project........................... 186

FORM 2.9 Details of Landfill Gas or Digester Gas Project ...................... 110

FORM 2.10 Details of Specified-Waste Fuelled Heat

Production Project................................................................ 118

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 201
6.0 List of Schedules

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 202
 6.0 LIST OF SCHEDULES

SCHEDULE 2.1–A Configuration and Heat Rate of Proposed Cogeneration, SCHEDULE 2.12–A Configuration of Proposed System to Convert
Enhanced Combined Cycle or Specified-Waste Fuelled Biomass to Bio-Oil ............................................................ 133
Electrical Generation System .............................................. 29
SCHEDULE 2.13–A Configuration of Proposed Fixed Location Fuel
SCHEDULE 2.2–A Configuration of Proposed Thermal Waste Cell Equipment.................................................................. 140
Electrical Generation Equipment ......................................... 51
SCHEDULE 2.14–A Configuration of Proposed System to
SCHEDULE 2.3–A Configuration of Proposed Active Solar Heating Equipment 62 Produce Biogas by Anaerobic Digestion........................... 150

SCHEDULE 2.3–B Configuration of Proposed Ground-Source Heat SCHEDULE 2.15–A Configuration of Proposed Water-Current or
Pump System ..................................................................... 63 Tidal Energy Equipment .................................................... 156

SCHEDULE 2.4–A Configuration of Proposed Small-Scale Hydro-Electric SCHEDULE 2.15–B Configuration of Proposed Wave Energy Equipment......... 157
Installation........................................................................... 75
SCHEDULE 2.16–A Configuration of Proposed District Energy System............ 165
SCHEDULE 2.5–A Configuration of Proposed Heat Recovery Equipment ........ 82
SCHEDULE 2.17 A Configuration of Proposed Producer Gas
SCHEDULE 2.6–A Configuration of Proposed Wind Energy Generating Equipment .......................................................172
Conversion System ............................................................. 89
SCHEDULE 2.18 A Configuration of Electric Vehicle Charging Equipment........179
SCHEDULE 2.7–A Configuration of Proposed Photovoltaic Electrical
Generation Equipment ........................................................ 96 SCHEDULE 2.19 A Configuration of Proposed Electrical Energy
Storage Equipment ........................................................... 186
SCHEDULE 2.8–A Configuration of Proposed Geothermal
Energy Equipment............................................................. 102

SCHEDULE 2.9–A Configuration of Proposed Landfill Gas or Digester

Gas Collection Equipment.................................................. 111

SCHEDULE 2.10–A Configuration of Proposed Specified-Waste Fuelled Heat

Production Equipment .......................................................119

SCHEDULE 2.11–A Configuration of Proposed Expansion Engine System .......127

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 203
7.0 List of Project Cost Tables

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 204
 7.0 LIST OF PROJECT COST TABLES

Project Cost Table 2.1 Cogeneration, Enhanced Combined Cycle or Project Cost Table 2.10 Specified-Waste Fuelled Heat
Specified-Waste Fuelled Electrical Production Equipment .............................................. 120
Generation Systems.................................................... 30
Project Cost Table 2.11 Expansion Engine Systems ........................................128
Project Cost Table 2.2 Thermal Waste Electrical Generation Equipment......... 52
Project Cost Table 2.12 Systems to Convert Biomass into Bio-Oil.................. 134
Project Cost Table 2.3 Active Solar Heating Equipment and Ground-
Source Heat Pump Systems ....................................... 64 Project Cost Table 2.13 Fixed Location Fuel Cell Equipment ...........................142

Project Cost Table 2.4 Small-Scale Hydro-Electric Installations ...................... 76 Project Cost Table 2.14 Systems to Produce Biogas by Anaerobic Digestion..151

Project Cost Table 2.5 Heat Recovery Equipment .......................................... 83 Project Cost Table 2.15 Water-Current, Wave or Tidal Energy Equipment ...... 158

Project Cost Table 2.6 Wind Energy Conversion Systems .............................. 90 Project Cost Table 2.16 District Energy Systems/Equipment .......................... 166

Project Cost Table 2.7 Photovoltaic Electrical Generation Equipment ............. 96 Project Cost Table 2.17 Producer Gas Generating Equipment ........................173

Project Cost Table 2.8 Geothermal Energy Equipment ................................. 103 Project Cost Table 2.18 Electric Vehicle Charging Equipment......................... 180

Project Cost Table 2.9 Landfill Gas and Digester Gas Collection Equipment .112 Project Cost Table 2.19 Electrical Energy Storage Equipment ........................ 187

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 205
8.0 List of Schematics

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 206
 8.0 LIST OF SCHEMATICS

ECG 2.1.1 Natural Gas-Fired Turbine System—Cogeneration Mode............... 32 TWE 2.2.1 Electrical Energy Generation from Thermal Waste—
Engine Heat Recovery.................................................................... 54
ECG 2.1.2 Petroleum-Fired Gas Turbine System—Cogeneration Mode .......... 33
TWE 2.2.2 Electrical Energy Generation from Thermal Waste—
ECG 2.1.3 Natural Gas-Fired Steam Turbine System—Cogeneration Mode ......34 Gas Turbine Heat Recovery ........................................................... 55

ECG 2.1.4 Petroleum-Fired Steam Turbine System—Cogeneration Mode ...... 35 TWE 2.2.3 Electrical Energy Generation from Thermal Waste—
Kalina Cycle ................................................................................... 56
ECG 2.1.5 Coal-Fired Steam Turbine System—Cogeneration Mode ............... 36
TWE 2.2.4 Electrical Energy Generation from Thermal Waste—
ECG 2.1.6 Wood Waste-Fired Steam Turbine System—
Stirling Engine Generator ............................................................... 57
Cogeneration Mode ....................................................................... 37
ASE 2.3.1 Active Solar Heating Equipment—Solar Water Heating .................. 66
ECG 2.1.7 Combination of Wood Waste and Natural Gas-Fired
Systems ......................................................................................... 38 ASE 2.3.2 Active Solar Heating Equipment with Seasonal Storage................. 67

ECG 2.1.8 Municipal Waste-Fired Steam Turbine System— ASE 2.3.3 Active Solar Heating Equipment—Air Heating
Cogeneration Mode ....................................................................... 39 Solar Collector ............................................................................... 68

ECG 2.1.9 Landfill Gas or Digester Gas-Fired Steam Turbine System— ASE 2.3.4 Ground-Source Heat Pump System—Horizontal
Cogeneration Mode ....................................................................... 40 Closed-Loop .................................................................................. 69

ECG 2.1.10 Natural Gas-Fired Combined Cycle—Cogeneration Mode............. 41 ASE 2.3.5 Ground-Source Heat Pump System—Vertical
Closed-Loop .................................................................................. 70
ECG 2.1.11 Petroleum-Fired Combined Cycle—Cogeneration Mode ............... 42
ASE 2.3.6 Ground-Source Heat Pump System—Open
ECG 2.1.12 Integrated Coal Gasification Combined Cycle—
Groundwater Loop ......................................................................... 71
Cogeneration Mode ....................................................................... 43
SHI 2.4.1 Small-Scale Hydro-Electric Installation........................................... 78
ECG 2.1.13 Natural Gas-Fired Reciprocating Engine System—
Cogeneration Mode ....................................................................... 44 HRE 2.5.1 Heat Recovery Equipment ............................................................. 85

ECG 2.1.14 Petroleum-Fired Reciprocating Engine System— WES 2.6.1 Wind Energy Conversion System ................................................... 92
Cogeneration Mode ....................................................................... 45
PVE 2.7.1 Photovoltaic Electrical Generation Equipment................................ 98
ECG 2.1.15 Landfill or Digester Gas-Fired Reciprocating Engine System—
Cogeneration Mode ....................................................................... 46 GEE 2.8.1 Geothermal Energy System – Flash Steam Electrical Generation. 105

ECG 2.1.16 Enhanced Combined Cycle for Electrical Generation..................... 47 GEE 2.8.2 Geothermal Energy System – Flash Steam Cogeneration ............ 106

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 207
 8.0 LIST OF SCHEMATICS

GEE 2.8.3 Geothermal Energy System – Binary Cycle WTE 2.15.2 Equipment to Generate Electrical Energy from
Electrical Generation .................................................................... 107 Wave Energy ................................................................................ 161

LDE 2.9.1 Landfill Gas Collection and Cleaning Equipment...........................114 DES 2.16.1 District Energy System ................................................................. 168

LDE 2.9.2 Digester Gas Collection and Cleaning Equipment.........................115 PGE 2.17.1 Producer Gas Generating Equipment with Methanization .............174

HPE 2.10.1 Municipal Waste-Fuelled Heat Production Equipment...................121 PGE 2.17.2 Producer Gas Generating Equipment with Feedstock
Pre-Treatment ...............................................................................175
HPE 2.10.2 Wood Waste-Fuelled Heat Production Equipment ....................... 122
EVCE 2.18.1 Electric Vehicle Charging Equipment Included in Class 43.1 .........181
HPE 2.10.3 Eligible Waste Gas-Fuelled Heat Production Equipment .............. 123
EVCE 2.18.2 Electric Vehicle Charging Equipment Included in Class 43.2........ 182
EES 2.11.1 Expansion Engine System for Electrical Generation
from Expansion of Natural Gas .................................................... 129 EESE 2.19.1 Sources of Electrical Energy that are Equipment Included
in Class 43.1 or 43.2 .................................................................... 188
BOS 2.12.1 System to Convert Wood Waste to Bio-Oil................................... 136
EESE 2.19.2 Battery Electrical Energy Storage Equipment used for
FCE 2.13.1 Fixed Location Fuel Cell System—Cogeneration Mode................ 144 Peak/Load Shifting....................................................................... 189

FCE 2.13.2 Fixed Location Fuel Cell System and Steam Turbine EESE 2.19.3 Compressed Air Energy Storage Equipment................................ 190
Electrical Energy Generation System ........................................... 145
EESE 2.19.4 Flywheel Energy Storage Equipment.............................................191
FCE 2.13.3 Fixed Location Fuel Cell and Electrolysis Equipment.................... 146

BGS 2.14.1 System to Produce Biogas by Anaerobic Digestion of

Organic Waste ............................................................................. 152

WTE 2.15.1 Equipment to Generate Electrical Energy from

Water-Current or Tidal Energy...................................................... 160

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 208
Appendix I Legislative History:
Class 43.1 and Class 43.2

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 209
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

This Appendix summarizes the legislative history of Class 43.1 and Class 43.2 and is provided for information purposes only. It is not a complete history of Class 43.1 and
Class 43.2 or other legislation that may have a bearing on Class 43.1 and 43.2. For additional information regarding the income tax legislation, taxpayers are invited to consult
Statutory Orders and Regulations (SOR) published by the Privy Council (P.C.) in the Canada Gazette, the Statutes of Canada (S.C.) or other income tax information sources.

Contents

A.0 General Amendments .............................................................................211 A.10 Specified-Waste Fuelled Heat Production Equipment .............................218

A.1 Cogeneration, Enhanced Combined Cycle and Specified- A.11 Expansion Engine Systems.....................................................................219
Waste Fuelled Electrical Generation Systems .........................................212
A.12 Systems to Convert Biomass into Bio-Oil ...............................................219
A.2 Thermal Waste Electrical Generation Equipment ....................................214
A.13 Fixed Location Fuel Cell Equipment ........................................................219
A.3 Active Solar Heating Equipment and Ground-Source Heat
Pump Systems........................................................................................214 A.14 Systems to Produce Biogas by Anaerobic Digestion ..............................219

A.4 Small-Scale Hydro-Electric Installations ..................................................215 A.15 Water-Current, Tidal or Wave Energy Equipment ................................... 220

A.5 Heat Recovery Equipment ......................................................................215 A.16 District Energy Systems/Equipment....................................................... 220

A.6 Wind Energy Conversion Systems ..........................................................215 A.17 Producer Gas Generating Equipment .................................................... 221

A.7 Photovoltaic Electrical Generation Equipment.........................................216 A.18 Electric Vehicle Charging Equipment ..................................................... 221

A.8 Geothermal Energy Equipment ...............................................................216 A.19 Electrical Energy Storage Equipment ..................................................... 222

A.9 Landfill Gas and Digester Gas Collection Equipment ..............................217

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 210
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

A.0 GENERAL AMENDMENTS Enacted in 2005

Enacted in 1997 The opening words of Class 43.1, were amended by P.C. 2005-2186, sub-
section 12(1), November 22, 2005, applicable to property acquired after
Class 43.1 was added by P.C. 1997-1033, section 13, July 25, 1997, applicable February 27, 2000, to include a reference to electrical generating equipment
to certain new clean energy and energy conservation property acquired by described in subparagraph (a.1)(i) of Class 17. The amendment is consequential
a taxpayer after February 21, 1994. This amendment implements measures to a measure introduced in Budget 2000, to increase the CCA rate for certain
announced in Budget 1994 as well as certain transitional measures that electrical generating equipment from 4 percent (Class 1) to 8 percent (Class 17).
permitted the following to be eligible for Class 43.1 treatment:
The portion of Class 43.1 between paragraphs (c) and (d) was amended by
• certain reconditioned or re-manufactured equipment acquired after P.C. 2005-2186, subsection 12(2), November 22, 2005, applicable to property
February 21, 1994 and before June 27, 1996 acquired by a taxpayer on or after September 3, 2005, other than property
and acquired by a taxpayer on or after that day pursuant to a written agreement made
before that day by the taxpayer and a person with whom the taxpayer deals at
• certain property, acquired after February 21, 1994 and before September 27, arm’s length. This amendment ensures that property described in paragraph (d)
1994, that is part of an enhanced combined cycle system that has an incremental of Class 43.1 excludes reconditioned or remanufactured equipment, to better
heat rate not exceeding 7,000 BTU per kWh of electricity generated by the system. refect proposals originally announced on June 27, 1996.

Enacted in 2000
Enacted in 2006
Paragraphs (b) and (e) of Class 43.1 were amended by P.C. 2000-1331, section 7,
Class 43.2 was added by P.C. 2006-439, section 13, June 1, 2006, deemed
August 23, 2000, applicable to property acquired after June 26, 1996, with certain
to have come in force on February 23, 2005. This amendment implements a
transitional measures applicable in respect of property acquired before 1998
measure announced in Budget 2005 to include certain highly efficient fossil fuel
pursuant to an agreement in writing made by the taxpayer before June 27, 1996.
and clean energy generation equipment—which was previously eligible for the
The Budget 1997 measure relaxed restrictions that were previously announced
30 percent CCA rate under Class 43.1—in a new class eligible for a 50 percent
on June 27, 1996 (with certain transitional measures) that made used, reconditioned
CCA rate. The increased rate applies to such equipment acquired after
or remanufactured equipment ineligible for inclusion in Class 43.1.
February 22, 2005 and before 2012.
Paragraphs (c) and (d) of Class 43.1 were also amended by P.C. 2000-1331,
The opening words of Class 43.1 and subclauses (b)(iii)(A)(I) and (II) and (e)(iii)(A)(I)
section 7, August 23, 2000. Subsection 7(2) applies to property acquired after
and (II) of Class 43.1 were amended by said P.C. 2006-439, subsections 12(1), (3)
February 16, 1999, and subsection 7(3) applies to property acquired after
and (5), June 1, 2006, deemed to have come in force on February 23, 2005. These
February 18, 1997. These amendments implement measures announced in
amendments include, in part, references consequential to the introduction of new
Budgets 1997 and 1999 concerning photovoltaic systems and electrical
Class 43.2 in Budget 2005.
generating equipment using solution gas.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 211
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

Enacted in 2009 Enacted in 2019

The opening words of Class 43.2 were amended by P.C. 2009-581, section 8, Subsection 1100(2) of the Regulations was amended by S.C. 2019, chapter 29,
April 23, 2009, deemed to have come in force on March 19, 2007, to implement subsection 52(6) on June 21, 2019, to provide an enhanced first-year allowance for
a measure announced in Budget 2007 to extend the eligibility for Class 43.2 to property included in Class 43.1 or 43.2 that is acquired after November 21, 2018
assets acquired before 2020. and becomes available for use before 2028.

Enacted in 2012 A.1 COGENERATION, ENHANCED COMBINED CYCLE

AND SPECIFIED-WASTE FUELLED ELECTRICAL
Subsection 1104(17) of the Regulations was added by S.C. 2012 chapter 31,
subsection 61(3), on December 14, 2012, applicable to new property acquired
GENERATION SYSTEMS
after March 28, 2012, to ensure that certain property that would otherwise be Enacted in 1997
eligible for inclusion in Class 43.1 or 43.2 because it collects, produces or uses
eligible waste fuels, is not eligible for inclusion in Class 43.1 or 43.2 if the property Paragraphs (a) to (c) of Class 43.1 were included when Class 43.1 was originally
fails to comply with the applicable environmental laws, by-laws and regulations added by P.C. 1997-1033, section 13, July 25, 1997, applicable to property
of Canada or of a province, territory, municipality, or a public or regulatory body acquired after February 21, 1994.
performing a function of government in Canada at the time the property becomes
available for use.
Enacted in 2000

Enacted in 2013 Clause (c)(i)(B) of Class 43.1 was amended by P.C. 2000-1331, subsection 7(2),
August 23, 2000, applicable to property acquired after February 16, 1999, to
Subsection 13(18.1) of the Income Tax Act was amended by S.C. 2013, chapter allow cogeneration systems using solution gas to be eligible for Class 43.1.
40, subsection 6(2) on December 12, 2013, to refer to the Technical Guide to Class Subsection 1104(13) of the Regulations was amended to add the definition of
43.1 and 43.2. This amendment was deemed to have come into force on solution gas by said P.C. 2000-1331, section 2, applicable after February 16, 1999.
December 12, 2014, the day on which the Technical Guide to Class 43.1 and 43.2
was first published.
Enacted in 2005

Enacted in 2018 Clause (c)(i)(A) of Class 43.1 was amended by P.C. 2005-2287, subsection 2(3),
December 6, 2005, applicable to property acquired after February 18, 2003,
Class 43.2 was amended by S.C. 2018, chapter 12, section 45 on June 21, 2018, to allow cogeneration systems using bio-oil to be eligible for Class 43.1. The
by extending by five years (to 2025) eligibility for Class 43.2. definition of fossil fuel in subsection 1104(13) of the Regulations was amended
and the definitions of basic oxygen furnace gas and blast furnace gas were
added to subsection 1104(13) of the Regulations by said P.C. 2005-2287,
subsections 1(1) and (2), applicable in respect of property acquired after 2000.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 212
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

Subparagraphs (a)(ii) and (a)(iv) of Class 43.1 were amended and subparagraph (a) Enacted in 2010
(ii.1) of Class 43.1 was added, by P.C. 2005-2287, subsections 2(1), (2), December 6,
2005, applicable to property acquired after February 18, 2003, to allow fuel cell Subparagraph (a)(iii) of Class 43.1 was amended by S.C. 2010, chapter 25,
equipment that uses hydrogen and with a peak capacity of at least 3 kW to be subsection 90(1), December 15, 2010, applicable to new property acquired
eligible for Class 43.1. after March 3, 2010, to remove the restriction that requires the recovered heat
from electrical or cogeneration equipment be reused by such equipment.

Enacted in 2006 The definition of eligible waste fuel in subsection 1104(13) of the Regulations
was amended by said S.C. 2010, chapter 25, subsection 76(2), applicable to
Clause (c)(i)(A) of Class 43.1 was amended by P.C. 2006-1103, section 2, property acquired after February 25, 2008, to include biogas, thereby allowing
October 19, 2006, applicable to property acquired after November 13, 2005, cogeneration systems that use biogas to be eligible for Class 43.1 and 43.2.
to allow cogeneration systems that use spent pulping liquor to be eligible for
Class 43.1 and 43.2. Subsection 1104(13) of the Regulations was amended to
add the definition of spent pulping liquor by said P.C. 2006-1103, subsection 1(2), Enacted in 2012
applicable after November 13, 2005.
The definitions of “plant residue” and “eligible waste fuel” in subsection 1104(13)
of the Regulations were amended by S.C. 2012 chapter 31 subsection 61(2), on
Enacted in 2009 December 14, 2012, applicable to property acquired after March 28, 2012, to allow
specified-waste fuelled heat production systems and cogeneration systems that
Subparagraph (a)(ii.1), clause (c)(i)(A) and the closing words of paragraph (a) use plant residue to be eligible for Class 43.1 and 43.2.
of Class 43.1 were amended by P.C. 2009-581, subsections 7(1), (2) and (3),
April 23, 2009, applicable to property acquired after March 18, 2007, to
Enacted in 2014
• remove the requirement that fuel cells have a peak capacity of at least 3 kW;
Clause (c)(i)(A) of Class 43.1 was amended by S.C. 2014, chapter 39, subsection
• extend the types of equipment that can be included in a cogeneration system 90(1), December 16, 2014, applicable to property acquired after February 10,
to include equipment that upgrades the combustible portion of the fuel; 2014, to allow cogeneration systems that use producer gas to be eligible for Class
and 43.1 and 43.2. Subsection 1104(13) of the Regulations was amended to add the
definition of producer gas by said S.C. 2014, chapter 39, subsection 85(1).
• allow cogeneration systems that use pulp and paper waste to be eligible for
Class 43.1 and 43.2. The definition of eligible waste fuel in subsection 1104(13)
of the Regulations was amended by said P.C. 2009-581, subsection 4(5) to
include pulp and paper waste.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 213
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

A.2 THERMAL WASTE ELECTRICAL GENERATION • ensure that solar collectors (other than a window) integrated into a building
EQUIPMENT can qualify for Class 43.1 and Class 43.2.

Enacted in 2011 Enacted in 2010

Subparagraph (c)(ii) of Class 43.1 was amended and subparagraph (c)(iii) of Subparagraph (d)(i) of Class 43.1 was amended by S.C. 2010, chapter 25,
Class 43.1 was added by, S.C. 2011, chapter 24, subsections 101(2) and (3), subsection 90(2), December 15, 2010, applicable to property acquired after
applicable to eligible new assets acquired on or after March 22, 2011, to February 25, 2008, to
include equipment that is used by the taxpayer, or by a lessee of the taxpayer,
• limit eligible ground-source heat pump systems to those that meet the
to generate electrical energy in a process in which all or substantially all of the
standards set by the Canadian Standards Association for the design and
energy input is from thermal waste.
installation of earth energy systems;
• broaden the use of ground-source heat pump systems to allow the systems
A.3 ACTIVE SOLAR HEATING EQUIPMENT AND to be used in applications other than industrial processes or greenhouses,
GROUND-SOURCE HEAT PUMP SYSTEMS such as space and water heating (but excluding swimming pool heating);

Enacted in 1997 and

Subparagraph (d)(i) of Class 43.1 was included when Class 43.1 was originally
• ensure that back-up energy equipment that supplements a ground-source
added by P.C. 1997-1033, section 13, July 25, 1997, applicable to property heat pump system and equipment that distributes energy within a building
acquired by a taxpayer after February 21, 1994. will not qualify for Class 43.1 and Class 43.2.

Subparagraph (d)(i) of Class 43.1 was amended by said S.C. 2010, chapter 25,
Enacted in 2005 subsection 90(2), to include as part of the cost of an eligible ground-source heat
pump system, well drilling or trenching costs incurred after May 2, 2010, for the
Subparagraph (d)(i) of Class 43.1 was amended by P.C. 2005-2287, subsection 2(4), purpose of installing piping.
December 6, 2005, applicable to property acquired after February 18, 2003, to
extend Class 43.1 eligibility to certain active solar heating equipment that is used Enacted in 2019
for the purpose of heating a liquid or a gas used directly in a greenhouse.
Subclauses (d)(i)(A)(I) and (II) of Class 43.1 were amended by S.C. 2019, chapter
29, subsection 61(1), June 21, 2019, applicable to property acquired by a taxpayer
Enacted in 2009 after March 21, 2016 to clarify that only thermal energy storage equipment used in
connection with active solar heating equipment and ground source heat pump
Subparagraph (d)(i) of Class 43.1 was amended by P.C. 2009-581, subsection 7(4),
systems is eligible for inclusion in subparagraph (d)(i).
April 23, 2009, applicable to property acquired after March 18, 2007, to

• extend Class 43.1 and Class 43.2 eligibility for active solar heating systems
to include other commercial and residential applications such as air and water
heating, other than swimming pool heating,
and

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 214
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

A.4 SMALL-SCALE HYDRO-ELECTRIC INSTALLATIONS A.5 HEAT RECOVERY EQUIPMENT

Enacted in 1997 Enacted in 1997

Subparagraphs (d)(ii) and (iii) of Class 43.1 were included when Class 43.1 was Subparagraph (d)(iv) of Class 43.1 was included when Class 43.1 was originally
originally added by P.C. 1997-1033, section 13, July 25, 1997, applicable to added by P.C. 1997-1033, section 13, July 25, 1997, applicable to property
property acquired by a taxpayer after February 21, 1994. acquired by a taxpayer after February 21, 1994.

Enacted in 2005 Enacted in 2010

The portion of subparagraph (d)(ii) of Class 43.1 after clause (B) was amended Subparagraph (d)(iv) of Class 43.1 was amended by S.C. 2010, chapter 25,
by P.C. 2005-2186, subsection 12(4), November 22, 2005, applicable to property subsection 90(4), December 15, 2010, applicable to property acquired after
acquired after February 27, 2000. The amendment is consequential to a measure March 3, 2010, to remove the restriction that requires the recovered thermal waste
introduced in Budget 2000, to increase the CCA rate of certain electrical to be reused directly in an industrial process (other than in an industrial process
generating equipment from 4 percent (Class 1) to 8 percent (Class 17) and that generates or processes electrical energy). Also, subparagraph (d)(iv) does not
clarifies that the exclusion for property otherwise included in Class 17 does apply to property that is employed in re-using recovered heat (such as property
not apply to electrical generating equipment described in subparagraph (a.1)(i) that is part of the internal heating or cooling system of a building or electrical
of that class. generating equipment), is a building or is equipment that recovers heat primarily
for use for heating water in a swimming pool.
Clause (d)(ii)(A) of Class 43.1 was amended by P.C. 2005-2287, subsection 2(5),
December 6, 2005, applicable to property acquired after December 10, 2001, Enacted in 2017
to increase the maximum capacity of eligible systems from 15 MW average
generating capacity to 50 MW rated capacity at the installation site. Subparagraph (d)(iv) of Class 43.1 was amended by S.C. 2017, chapter 33,
subsection 104(1), December 14, 2017, applicable to property acquired after
Subparagraph (d)(iii) of Class 43.1 was amended by P.C. 2005-2287, sub- March 3, 2010, to apply where the primary purpose of the heat recovery
section 2(6), December 6, 2005, applicable to additions or alterations acquired equipment is “extracting heat for sale”.
after February 21, 1994 and before December 11, 2001, which results in an average
generating capacity not exceeding 15 MW. Additions or alterations to a qualifying
installation after February 21, 1994 are eligible for inclusion in Class 43.1 where
A.6 WIND ENERGY CONVERSION SYSTEMS
the small scale hydro-electric installation was originally acquired before that date Enacted in 1997
provided that the facility would have qualified for inclusion in Class 43.1 if it had
been acquired after February 21, 1994. Subparagraph (d)(v) of Class 43.1 was included when Class 43.1 was originally
added by P.C. 1997-1033, section 13, July 25, 1997, applicable to property
Subparagraph (d)(iii.1) of Class 43.1 was added by P.C. 2005-2287, subsection 2(6), acquired by a taxpayer after February 21, 1994.
December 6, 2005, applicable to additions or alterations acquired after December 10,
2001 which result in an increase rated capacity not exceeding 50 MW.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 215
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

Enacted in 2005 Enacted in 2005

Subparagraph (d)(v) of Class 43.1 was amended by P.C. 2005-2186, subsection Subparagraph (d)(vi) of Class 43.1 was amended by P.C. 2005-2186, subsection 12(6)
12(5), November 22, 2005, applicable to property acquired after February 27, November 22, 2005, applicable to property acquired after February 27, 2000, to clarify
2000, to clarify that the exclusion for property otherwise included in Class 17 does that the exclusion for property otherwise included in Class 17 does not apply to
not apply to electrical generating equipment described in subparagraph (a.1)(i) of electrical generating equipment described in subparagraph (a.1)(i) of that class.
that class.

Enacted in 2009
Enacted in 2019
Subparagraph (d)(vi) of Class 43.1 was amended by P.C. 2009-581, subsection
Subclause (d)(v)(B)(I) of Class 43.1 was amended by S.C. 2019, chapter 29, 7(5), April 23, 2009, applicable to property acquired after March 18, 2007, to:
subsection 61(2), June 21, 2019, applicable to property acquired by a taxpayer
after March 21, 2016 to remove a reference to battery storage equipment that is • remove the requirement that photovoltaic equipment have a peak capacity of
used in connection with a wind energy conversion system. Such battery storage at least 3 kW;
equipment and other electrical energy storage equipment are now described in and
new subparagraph (d)(xviii).
• ensure that solar cells or modules acquired after March 18, 2007 that are
integrated into a building can qualify for Class 43.1 or 43.2.
A.7 PHOTOVOLTAIC ELECTRICAL GENERATION
EQUIPMENT Enacted in 2019

Enacted in 1997 Subparagraph (d)(vi) of Class 43.1 was amended by S.C. 2019, chapter 29,
subsection 61(3), June 21, 2019, applicable to property acquired by a taxpayer
Subparagraph (d)(vi) of Class 43.1 was included when Class 43.1 was originally
after March 21, 2016 to remove a reference to battery storage equipment that is
added by P.C. 1997-1033, section 13, July 25, 1997, applicable to property
used in connection with fixed location photovoltaic equipment. Such battery
acquired by a taxpayer after February 21, 1994.
storage equipment and other electrical energy storage equipment are now
described in new subparagraph (d)(xviii).
Enacted in 2000

Clause (d)(vi)(B) of Class 43.1 was amended by P.C. 2000-1331, subsection 7(3), A.8 GEOTHERMAL ENERGY EQUIPMENT
August 23, 2000, applicable to property acquired after February 18, 1997, to
Enacted in 1997
reduce the minimum peak capacity for qualifying photovoltaic systems from 10 kW
to 3 kW of electrical output. Subparagraph (d)(vii) of Class 43.1 was included when Class 43.1 was originally
added by P.C. 1997-1033, section 13, July 25, 1997, applicable to property
acquired by a taxpayer after February 21, 1994.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 216
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

Enacted in 2005 Enacted in 2019

Subparagraph (d)(vii) of Class 43.1 was amended by P.C. 2005-2186, subsection 12(7), Subparagraph (d)(vii) of Class 43.1 was amended by S.C. 2019, chapter 29,
November 22, 2005, applicable to property acquired after February 27, 2000, to clarify subsection 61(4), June 21, 2019, applicable to property acquired by a taxpayer
that the exclusion for property otherwise included in Class 17 does not apply to after March 21, 2016 to remove a reference to electrical storage equipment from
electrical generating equipment described in subparagraph (a.1)(i) of that class. the list of equipment that is excluded for the purposes of the subparagraph.
Such electrical energy storage equipment is now described in new subparagraph
(d)(xviii).
Enacted in 2010

Subparagraph (d)(vii) of Class 43.1 was amended by S.C. 2010, chapter 25, A.9 LANDFILL GAS AND DIGESTER GAS
subsection 90(5), December 15, 2010, applicable to property acquired after
COLLECTION EQUIPMENT
May 2, 2010, to remove the requirement that eligible geothermal equipment be
above-ground. This amendment also extends eligibility for Class 43.1 or 43.2 Enacted in 1997
to equipment that consists of piping (including well drilling or trenching costs
for the purpose of installing the piping) acquired after May 2, 2010. Subparagraph (d)(viii) of Class 43.1 was included when Class 43.1 was originally
added by P.C. 1997-1033, section 13, July 25, 1997, applicable to property
acquired by a taxpayer after February 21, 1994.
Enacted in 2017

Subparagraph (d)(vii) of Class 43.1 was amended by S.C. 2017, chapter 33, Enacted in 2010
subsection 104(2), December 14, 2017, applicable to property acquired after
March 21, 2017, to extend Class 43.1 and Class 43.2 eligibility to electricity Subparagraph (d)(viii) of Class 43.1 was amended by 2010, chapter 25, sub-
transmission equipment and geothermal equipment that is used primarily for the section 90(5), December 15, 2010, applicable to property acquired after May 2,
purpose of generating heat or a combination of heat and electricity. 2010, to remove the requirement that eligible landfill gas or digester gas collection
equipment be above-ground. This amendment also extends eligibility for Class 43.1
Subsection 1104(17) was amended by S.C. 2017, chapter 33, subsection 91(1), or 43.2 to equipment that consists of piping (including well drilling or trenching
December 14, 2017, applicable to property acquired after March 21, 2017, by costs for the purpose of installing the piping) acquired after May 2, 2010.
adding geothermal energy equipment to the list of property not eligible for
inclusion in Class 43.1 or 43.2 if the property fails to comply with the applicable
environmental laws, by-laws and regulations of Canada or of a province, territory, Enacted in 2013
municipality, or a public or regulatory body performing a function of government in
Subparagraph (d)(viii) of Class 43.1 was amended by S.C. 2013, chapter 40,
Canada at the time the property becomes available for use.
subsection 119(1), December 12, 2013, applicable to property acquired after March
Subsection 1219(1) was amended by S.C. 2017, chapter 33, subsection 92(2), 20, 2013, to expand the range of cleaning and upgrading equipment that can be
December 14, 2017, applicable to property acquired after March 21, 2017, by used to treat eligible gases from waste by replacing the reference to “other ancillary
allowing expenses incurred for all geothermal drilling and expenses incurred solely equipment” with “related equipment,” as that reference applies to the equipment
for the purpose of determining the extent and quality of a geothermal resource used to collect, store, clean or upgrade landfill or digester gas.
eligible as CRCE.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 217
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

A.10 SPECIFIED-WASTE FUELLED HEAT heat production systems to include biogas. The definition of eligible waste fuel in
PRODUCTION EQUIPMENT subsection 1104(13) of the Regulations was amended by said S.C. 2010, chapter
25, subsection 76(2), applicable to property acquired after February 25, 2008, to
Enacted in 1997 include biogas.

Subparagraph (d)(ix) of Class 43.1 was included when Class 43.1 was originally
added by P.C. 1997-1033, section 13, July 25, 1997, applicable to property Enacted in 2012
acquired by a taxpayer after February 21, 1994.
Subparagraph (d)(ix) of Class 43.1 was amended by S.C. 2012, chapter 31,
subsection 70(1), on December 14, 2012, applicable to new property acquired
Enacted in 2005 after March 28, 2012, to remove the requirement that heat energy generated
from specified-waste fuelled heat production equipment be used in an industrial
Subparagraph (d)(ix) of Class 43.1 was amended by P.C. 2005-2287, subsection 2(7), process or a greenhouse. The amendment to subparagraph (d)(ix) also clarifies
December 6, 2005, applicable to property acquired after February 18, 2003, to add that specified-waste fuelled heat production equipment must be acquired for the
bio-oil as an eligible waste fuel and to permit the heat generated by an eligible system sole purpose of generating heat energy primarily from the consumption of eligible
to be used in a greenhouse of the taxpayer. waste fuel and not using any fuels other than eligible waste fuel or fossil fuel. The
definitions of plant residue and eligible waste fuel in subsection 1104(13) of the
Enacted in 2009 Regulations were amended by said S.C. 2012, chapter 31, subsection 61(2), on
December 14, 2012, applicable to property acquired after March 28, 2012, to
Subparagraph (d)(ix) of Class 43.1 was amended by P.C. 2009-581, subsection 7(6), include plant residue in eligible waste fuel.
April 23, 2009, applicable to property acquired after March 18, 2007, expanding the
types of feedstocks that may be used in specified-waste fuelled heat production
Enacted in 2014
systems to include pulp and paper waste and to ensure that only eligible waste fuels
and fossil fuels are used in such systems. Subsection 1104(13) of the Regulations Subparagraph (d)(ix) was amended by S.C. 2014, chapter 39, subsection 90(2),
was amended by said P.C. 2009-581, subsection 4(5), to include a definition of December 16, 2014, applicable to property acquired after February 10, 2014, to allow
eligible waste fuel that lists the allowable feedstocks for waste-fuelled heat specified-waste fuelled heat production equipment that uses producer gas to be
production systems. eligible for Class 43.1 and 43.2. Subsection 1104(13) of the Regulations was
amended to add the definition of producer gas by said S.C. 2014, chapter 39,
Enacted in 2010 subsection 85(1).

Subparagraph (d)(ix) of Class 43.1 was amended by S. C. 2010, chapter 25,

subsection 90(5), December 15, 2010, applicable to property acquired after
February 25, 2008, to permit the heat produced by specified-waste fuelled heat
production systems to be used in any industrial process or greenhouse and not
just those operated by the taxpayer or lessee of the taxpayer. The amendment
also expands the types of feedstocks that may be used in specified-waste fuelled

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 218
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

A.11 EXPANSION ENGINE SYSTEMS Enacted in 2009

Enacted in 1997 Subparagraphs (a)(ii.1) and (d)(xii) of Class 43.1 were amended by P.C. 2009-581
subsections 7(1) and 7(7), April 23, 2009, applicable to property acquired after
Subparagraph (d)(x) of Class 43.1 was included when Class 43.1 was originally March 18, 2007, to eliminate the minimum electrical output requirement. The
added by P.C. 1997-1033, section 13, July 25, 1997, applicable to property acquired amendment to subparagraph (d)(xii) also clarifies that, for property acquired
by a taxpayer after February 21, 1994. after February 25, 2008, eligibility of fuel cells applies only if the fuel cells use
electricity, all or substantially all of which is generated by photovoltaic, wind energy
conversion or hydro-electric equipment of the taxpayer or lessee of the taxpayer.
A.12 SYSTEMS TO CONVERT BIOMASS INTO BIO-OIL
Enacted in 2005 Enacted in 2019

Subparagraph (d)(xi) of Class 43.1 was added by P.C. 2005-2287, subsection 2(8), Subparagraph (d)(xii) of Class 43.1 was amended by S.C. 2019, chapter 29,
December 6, 2005, applicable to property acquired after February 18, 2003, subsection 61(6), June 21, 2019, applicable to property acquired by a taxpayer after
extending eligibility under Class 43.1 and 43.2 to bio-oil producing equipment if March 21, 2016 to include geothermal energy equipment and water-current, tidal or
that bio-oil is used by the taxpayer (or a lessee) primarily to generate electricity wave energy equipment to the range of equipment that can be used to produce
or electricity and heat. electricity that is to be used by ancillary electrolysis equipment.

Enacted in 2010
A.14 SYSTEMS TO PRODUCE BIOGAS BY
Subparagraph (d)(xi) of Class 43.1 was amended by S.C. 2010, chapter 25, ANAEROBIC DIGESTION
subsection 90(6), December 15, 2010, applicable to property acquired after
Enacted in 2006
February 25, 2008, to remove the requirement that an electrical generating
facility fuelled with bio-oil be operated by the same taxpayer (or lessee) that Subparagraph (d)(xiii) of Class 43.1 was added by P.C. 2006-439, subsection 12(4),
produced the bio-oil, thereby allowing taxpayers to sell the bio-oil to third parties June 1, 2006, applicable to property acquired after February 22, 2005, extending
for the designated uses. In addition, eligibility is extended to equipment that eligibility for Class 43.1 and 43.2 to biogas producing equipment used primarily by
produces bio-oil where the bio-oil is used to produce heat that is used in an the taxpayer or the lessee to produce electricity, or to produce heat that is used
industrial process or a greenhouse. directly in an industrial process or in a greenhouse.

A.13 FIXED LOCATION FUEL CELL EQUIPMENT Enacted in 2009

Enacted in 2005 Subparagraph (d)(xiii) of Class 43.1 was amended by P.C. 2009-581, subsections 7(8)
and 7(9), April 23, 2009, applicable to property after March 18, 2007, removing the
Subparagraphs (a)(ii.1) and (d)(xii) of Class 43.1 were added by P.C. 2005-2287, restriction that biogas be produced from manure, thereby expanding the types of
subsections 2(1) and 2(8), December 6, 2005, applicable to property acquired feedstock that may be used in eligible biogas production systems. Subsection
after February 18, 2003, extending eligibility for Class 43.1 to fixed location
1104(13) of the Regulations was amended by said P.C. 2009-581, subsection 4(5), to
hydrogen fuel cell equipment with a peak capacity of at least 3 kW.
include a definition of biogas that lists the allowable feedstocks for biogas production.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 219
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

Enacted in 2010 Enacted in 2014

Subparagraph (d)(xiii) of Class 43.1 was amended by S.C. 2010, chapter 25, Subparagraph (d)(xiv) of the Regulations was amended by S.C. 2014, chapter 39,
subsection 90(7), December 15, 2010, applicable to property acquired after subsection 90(3), December 16, 2014, applicable to property acquired after
February 25, 2008, to remove the following requirements: (1) that biogas February 10, 2014, by making equipment that generates electricity using the kinetic
produced by a taxpayer’s eligible anaerobic digester system be used by energy of fowing water (otherwise than by diverting the natural fow of the water or
the taxpayer and (2) that the biogas be used to produce heat for use in an by using physical barriers or dam-like structures) eligible for inclusion in Class 43.1 or
industrial process or a greenhouse or to produce electricity. 43.2.

Subsection 1104(17) was amended by said S.C. 2014, chapter 39, subsection 85(2),
Enacted in 2013 applicable to property acquired after February 10, 2014, by adding water-current,
tidal or wave energy equipment to the list of property not eligible for inclusion in
Subsection 1104(13) of the Regulations was amended by S.C. 2013, chapter 40,
Class 43.1 or 43.2 if the property fails to comply with the applicable environmental
subsections 103(6), 103(7) and 103(8) December 12, 2013, applicable to property
laws, by-laws and regulations of Canada or of a province, territory, municipality, or a
acquired after March 20, 2013, in three ways. First, the definition of biogas was
public or regulatory body performing a function of government in Canada at the time
amended to add references to pulp and paper by-product and separated organics
the property becomes available for use.
as eligible feedstocks. Second, the definition of “food and animal waste” was
amended to add references to beverages. Third, new definitions of “pulp and paper Enacted in 2019
by-product” and “separated organics” were introduced.
Subparagraph (d)(xiv) of Class 43.1 was amended by S.C. 2019, chapter 29,
Subparagraph (d)(xiii) of Class 43.1 was amended by said S.C. 2013, chapter 40, subsection 61(7), June 21, 2019, applicable to property acquired by a taxpayer after
subsection 119(2), applicable to property acquired after March 20, 2013, to expand March 21, 2016 to remove a reference to battery storage equipment that is used in
the range of cleaning and upgrading equipment that can be used to treat eligible connection with water-current, tidal or wave energy equipment. Such battery
gases from waste by replacing the reference to “biogas scrubbing equipment” with storage equipment and other electrical energy storage equipment are now
“equipment used to remove non-combustibles and contaminants from the gas”. In described in new subparagraph (d)(xviii).
addition the list of equipment that can be included in subparagraph (d)(xiii) was
expanded to include fans, compressors and heat exchangers.
A.16 DISTRICT ENERGY SYSTEMS/EQUIPMENT
A.15 WATER-CURRENT, TIDAL OR WAVE ENERGY Enacted in 2006
EQUIPMENT
Subparagraph (a)(iii.1) of Class 43.1 was added, by P.C. 2006-439, subsection 12(2),
Enacted in 2009 June 1, 2006, applicable to property acquired after February 22, 2005, extending
eligibility for Class 43.1 and 43.2 to distribution equipment used in district energy
Subparagraph (d)(xiv) of Class 43.1 was added by P.C. 2009-581, subsection 7(10), systems to distribute thermal energy that is primarily supplied by eligible cogeneration
April 23, 2009, applicable to property acquired after March 18, 2007, extending systems. The definitions “district energy equipment” and “district energy system” were
eligibility for Class 43.1 and 43.2 to wave and tidal energy equipment. added to subsection 1104(13) of the Regulations by said P.C. 2006-439, subsection
4(3), applicable to property acquired after February 22, 2005.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 220
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

Enacted in 2010 to generate producer gas. The definition “producer gas” was added to subsection
1104(13) of the Regulations by said S.C. 2014, chapter 39, subsection 85(1),
Subparagraph (a)(iii.1) of Class 43.1 was amended and subparagraph (d)(xv) of applicable to property acquired after February 10, 2014.
Class 43.1 was added by S. C. 2010, chapter 25, subsections 90(1) and 90(8),
December 15, 2010, applicable to new property acquired after March 3, 2010, Subsection 1104(17) was amended by said S.C. 2014, chapter 39, subsection 85(2)
extending eligibility for Class 43.1 and 43.2 to include specified distribution by adding equipment used to generate producer gas to the list of property not
equipment that is part of a district energy system used by the taxpayer to eligible for inclusion in Class 43.1 or 43.2 if the property fails to comply with the
provide district heating or cooling through the use of thermal energy provided applicable environmental laws, by-laws and regulations of Canada or of a province,
primarily by a ground-source heat pump system, an active solar system, heat territory, municipality, or a public or regulatory body performing a function of
recovery equipment or a combination of these sources, provided that these government in Canada at the time the property becomes available for use.
sources qualified for Class 43.1 or 43.2.

A.18 ELECTRIC VEHICLE CHARGING EQUIPMENT

Enacted in 2012
Enacted in 2019
Clause (d)(xv)(B) of Class 43.1 was amended by S.C. 2012, chapter 31, subsection
70(2), on December 14, 2012, applicable to new property acquired after March 28, Subparagraph (d)(xvii) of Class 43.1 was added, by S.C. 2019, chapter 29,
2012, to include specified distribution equipment that is part of a district energy subsection 61(8), June 21, 2019, applicable to property acquired after March 21,
system used by the taxpayer to provide district heating or cooling through the use 2016, extending eligibility for Class 43.1 and 43.2 to equipment used for the
of equipment that uses thermal energy primarily generated by specified-waste purpose of charging electric vehicles.
fuelled heat production equipment, provided that the equipment otherwise
Paragraphs (a) and (b) of Class 43.2 were amended by said S.C. 2019, chapter 29,
qualifies for Class 43.1 or 43.2.
subsection 62(1) applicable to property acquired after March 21, 2016 to specify
that only electric vehicle charging stations supplying at least 90 kilowatts of
Enacted in 2017 continuous power or equipment used in connection with electric vehicle charging
stations supplying more than 10 kilowatts of continuous power and in connection
Clause (d)(xv)(B) of Class 43.1 was amended by S.C. 2017, chapter 33, subsection with at least one electric vehicle charging station that supplies at least 90 kilowatts
104(3), December 14, 2017, applicable to property acquired after March 21, 2017, of continuous power are eligible for inclusion in Class 43.2.
to make heat primarily supplied by geothermal energy equipment eligible for Class
43.1 or 43.2 an eligible thermal energy source for use in a district energy system. Subsection 1104(17) was amended by said S.C. 2019, chapter 29, subsection 55(2)
by adding electric vehicle charging equipment to the list of property not eligible for
inclusion in Class 43.1 or 43.2 if the property fails to comply with the applicable
A.17 PRODUCER GAS GENERATING EQUIPMENT
environmental laws, by-laws and regulations of Canada or of a province, territory,
Enacted in 2014 municipality, or a public or regulatory body performing a function of government in
Canada at the time the property becomes available for use.
Subparagraph (d)(xvi) of Class 43.1 was added, by S.C. 2014, chapter 39,
subsection 90(4), December 16, 2014, applicable to property acquired after
February 10, 2014, extending eligibility for Class 43.1 and 43.2 to equipment used

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 221
 APPENDIX I — LEGISLATIVE HISTORY: CLASS 43.1 AND CLASS 43.2

A.19 ELECTRICAL ENERGY STORAGE EQUIPMENT

Enacted in 2019

Subparagraph (d)(xviii) of Class 43.1 was added, by S.C. 2019, chapter 29,
subsection 61(8), June 21, 2019, applicable to property acquired after March 21,
2016, extending eligibility for Class 43.1 and 43.2 to equipment used for the
purpose of storing electricity.

Paragraphs (a) and (b) of Class 43.2 were amended by said S.C. 2019, chapter 29,
subsection 62(1) applicable to property acquired after March 21, 2016 to specify
that electrical energy storage equipment only qualifies for Class 43.2 when used in
connection with property eligible for Class 43.2.

NATURAL RESOURCES CANADA — TECHNICAL GUIDE TO CLASS 43.1 AND 43.2, 2019 EDITION 222