F2Where an application for free allocation is made under Article 5, the regulator shall determine historical activity levels of each new entrant and its sub-installations as follows:

1. (a)

   the product-related historical activity level shall be, for each product for which a product benchmark has been determined as referred to in Annex I to this Regulation F3..., the activity level of the first calendar year after the start of normal operation for the production of this product of the sub-installation concerned;

2. (b)

   the heat-related historical activity level shall be the activity level of the first calendar year after the start of normal operation for the import from an installation covered by the EU ETS F4or UK ETS, production, or both, of measurable heat consumed within the installation's boundaries for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling with the exception of the consumption for the production of electricity, or exported to an installation or other entity not covered by the EU ETS F4or UK ETS with the exception of the export for the production of electricity;

3. (c)

   the district heating-related historical activity level shall be the activity level of the first calendar year after the start of normal operation for the import from an installation covered by the EU ETS F5or UK ETS, production, or both, of measurable heat which is exported for the purposes of district heating;

4. (d)

   the fuel-related historical activity level shall be the activity level of the first calendar year after the start of normal operation for the consumption of fuels used for the production of non-measurable heat consumed for the production of products, for the production of mechanical energy other than used for the production of electricity, for heating or cooling with the exception of the consumption for the production of electricity, including safety flaring, of the installation concerned;

5. (e)

   the process emissions-related activity level shall be the activity level of the first calendar year after the start of normal operation for the production of process emissions of the process unit F6other than emissions from upstream GHG removal vented without a combustion process;

6. (f)

   By way of derogation from point (a), the product-related historical activity level for products to which the product benchmarks referred to in Annex III apply shall be the activity level of the first calendar year after the start of normal operation for the production of this product of the sub-installation concerned, determined according to the formulas set out in that Annex.

But if a sub-installation has not been operating for a full calendar year after the start of normal operation, the historical activity level must be determined when the activity level report after the first full calendar year of operation is submitted (see Article 3a of the Activity Level Changes Regulation).