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Greenhouse Gas Pollution Pricing Act (S.C. 2018, c. 12, s. 186)

Act current to 2022-05-02 and last amended on 2022-01-01. Previous Versions

PART 2Industrial Greenhouse Gas Emissions (continued)

DIVISION 1Pricing Mechanism for Greenhouse Gas Emissions (continued)

Reporting, Compensation and Compliance Units (continued)

Marginal note:Issuance of surplus credits

 If a covered facility emits greenhouse gases in a quantity that is below the emissions limit that applies to it during a compliance period, the Minister must, in accordance with the regulations, issue to a person that is responsible for the covered facility a number of surplus credits that is equal to the difference between that limit, expressed in CO2e tonnes, and the number of CO2e tonnes emitted.

Marginal note:Errors and omissions

  •  (1) If, within five years after submitting a report under section 173, a person that is responsible for a covered facility becomes aware of an error or omission in the report, the person must notify the Minister in writing as soon as possible.

  • Marginal note:Corrected report

    (2) If required by the regulations, the person must, in accordance with the regulations,

    • (a) submit a corrected report to the Minister; or

    • (b) submit a corrected report to the Minister and cause it to be verified by a third party.

Marginal note:Errors and omissions

  •  (1) If, within five years after a report has been submitted under section 173 in respect of a covered facility, the Minister is of the opinion that there is an error or omission in the report, the Minister may require a person responsible for the covered facility to submit a corrected report and may require the person to cause it to be verified by a third party.

  • Marginal note:Compliance

    (2) If the Minister requires a person to submit a corrected report or to submit a corrected report and cause it to be verified by a third party, the person must do so in accordance with the regulations.

Marginal note:Change in obligations

  •  (1) If, as a result of a corrected report referred to in section 176 or 177, the difference between the quantity of the greenhouse gases emitted by a covered facility during a compliance period and the emissions limit that applied to the covered facility during that compliance period changes,

    • (a) a person that is responsible for the covered facility must, in accordance with the regulations, provide any compensation that is determined in accordance with the regulations; or

    • (b) the Minister may, in accordance with the regulations, issue to a person that is responsible for the covered facility a number of surplus credits that is determined in accordance with the regulations.

  • Marginal note:Compensation

    (2) For the purposes of paragraph (1)(a), the rate for each CO2e tonne must not exceed four compliance units or four times the excess emissions charge set out in column 2 of Schedule 4, for the calendar year in which the compliance period falls.

Marginal note:Retirement of compliance units

 A compliance unit that is remitted under section 174, paragraph 178(1)(a) or subsection 181(2) or that is withdrawn under section 182 must not be used in any subsequent transaction and the Minister must ensure, in accordance with the regulations, that it is retired from circulation.

Marginal note:Suspension or revocation of compliance units

  •  (1) The Minister may, in accordance with the regulations, suspend or revoke compliance units.

  • Marginal note:Voluntary cancellation of compliance units

    (2) If the holder of an account in the tracking system referred to in section 185 requests, in accordance with the regulations, that a compliance unit in the account be cancelled, the Minister must cancel it.

  • Marginal note:No indemnification

    (3) A person is not entitled to be indemnified for a suspended, revoked or cancelled compliance unit.

Marginal note:Issuance error or invalidity

  •  (1) If the Minister determines that compliance units were issued in error or are no longer valid, the Minister may, in accordance with the regulations, require a person to remit the number of compliance units in question to the Minister or a person specified in the regulations in lieu of the Minister.

  • Marginal note:Compliance

    (2) If the Minister requires a person to remit compliance units, the person must do so by a deadline specified by the Minister.

  • Marginal note:Payment in lieu

    (3) In lieu of remitting compliance units, the person may make a payment to Her Majesty in right of Canada that is equal to the number of compliance units multiplied by the excess emissions charge set out in column 2 of Schedule 4, for the calendar year in which the Minister requires the person to remit the compliance units.

Recovery of Compensation

Marginal note:Ministerial power

 If a covered facility emits greenhouse gases in excess of its emissions limit during a compliance period and compensation is not provided in full by the applicable deadline under section 174 or paragraph 178(1)(a), the Minister may, in accordance with the regulations, withdraw the balance owing in compliance units from any account in the tracking system referred to in section 185 that is linked to the covered facility.

Marginal note:Debts to Her Majesty

  •  (1) The monetary value of the compensation owed for each CO2e tonne emitted by a covered facility in excess of its emissions limit during a compliance period for which no compensation was provided by the applicable deadline under section 174 or paragraph 178(1)(a) and for which no withdrawals were made under section 182 constitutes a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction.

  • Marginal note:Limitation period

    (2) No proceedings to recover the debt may be instituted more than five years after the day on which the debt becomes payable.

Marginal note:Certificate

  •  (1) The Minister may issue a certificate certifying the unpaid amount of any debt referred to in subsection 183(1).

  • Marginal note:Registration

    (2) Registration in a court of competent jurisdiction of a certificate issued under subsection (1) has the same effect as a judgment of that court for a debt of the amount specified in the certificate and all related registration costs.

Tracking System

Marginal note:Establishment and maintenance

 If at least one province or area is set out in Part 2 of Schedule 1, the Minister must establish and maintain a system that tracks

  • (a) the issuance by the Minister of compliance units;

  • (b) the transfer, retirement, suspension, revocation and cancellation of those compliance units;

  • (c) excess emissions charge payments made under section 174 or 178 and payments made under subsection 181(3); and

  • (d) any other transaction specified in the regulations.

Marginal note:Accounts

  •  (1) A person that is responsible for a covered facility must open and maintain in the tracking system any accounts required by the regulations. Any other person may open and maintain accounts in the system in accordance with the regulations.

  • Marginal note:Ministerial powers

    (2) The Minister may specify the time and manner for opening or closing an account, the information to be provided for those purposes and the conditions of use for accounts.

  • Marginal note:Closing of accounts

    (3) The Minister may, in accordance with the regulations, close an account.

Records

Marginal note:Keeping records

  •  (1) A person that is responsible for a covered facility or any other person that opens and maintains an account in the tracking system must keep and retain all records that are necessary to determine whether the person has complied with this Division.

  • Marginal note:Minister may specify information

    (2) The Minister may specify the form a record is to take and any information that the record is to contain.

  • Marginal note:Language and location of record

    (3) A record must be kept and retained in Canada in accordance with the regulations and, unless otherwise authorized by the Minister, must be kept in English or in French.

  • Marginal note:Electronic records

    (4) If a record is kept or retained in electronic form, the person that keeps the record must ensure that information in it is readable or perceivable so as to be usable for subsequent reference during the retention period required for the record.

  • Marginal note:General period for retention

    (5) Records must be retained for a period of seven years after the end of the year to which they relate or for any other period specified in the regulations.

  • Marginal note:Demand by Minister

    (6) If the Minister is of the opinion that it is necessary to do so, the Minister may, by registered letter or by a demand served personally, require a person referred to in subsection (1) to retain any records for a period that is specified by the Minister and the person must do so as required.

  • Marginal note:Permission for earlier disposal

    (7) The Minister may, in writing, authorize a person referred to in subsection (1) to dispose of any records before the end of the period during which they are required to be retained.

Revenues

Marginal note:Distribution — charge payments

  •  (1) The Minister of National Revenue must distribute revenues from excess emissions charge payments that are made under section 174 or 178 in relation to covered facilities that are located in a province or area. The Minister of National Revenue may distribute the revenues to

    • (a) that province;

    • (b) persons that are specified in the regulations or that meet criteria set out in the regulations; or

    • (c) a combination of both.

  • Marginal note:Distribution — subsection 181(3) payments

    (2) The Minister of National Revenue may distribute revenues from payments that are made under subsection 181(3) to persons that are specified in the regulations or that meet criteria set out in the regulations.

  • Marginal note:Amount

    (3) The amount of any revenues to be distributed under subsection (1) or (2) is to be calculated in the manner determined by the Minister of National Revenue.

  • Marginal note:Time and manner

    (4) A distribution of revenues under subsection (1) or (2) is to be made, subject to the regulations, at the times and in the manner that the Minister of National Revenue considers appropriate and may, in accordance with the regulations, be made out of the Consolidated Revenue Fund.

Orders and Regulations

Marginal note:Amendments to Part 2 of Schedule 1

  •  (1) For the purpose of ensuring that the pricing of greenhouse gas emissions is applied broadly in Canada at levels that the Governor in Council considers appropriate, the Governor in Council may, by order, amend Part 2 of Schedule 1 by adding, deleting or amending the name of a province or the description of an area.

  • Marginal note:Factors

    (2) In making an order under subsection (1), the Governor in Council shall take into account, as the primary factor, the stringency of provincial pricing mechanisms for greenhouse gas emissions.

  • Marginal note:Exclusive economic zone and continental shelf

    (3) For greater certainty, an area referred to in subsection (1) may include a part of the exclusive economic zone of Canada or the continental shelf of Canada.

Marginal note:Non-application

 Despite section 164.2 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act, if the offshore area, as defined in section 2 of that Act, is mentioned in Part 2 of Schedule 1 to this Act, section 164.2 of that Act does not apply.

Marginal note:Amendments to Schedule 3

  •  (1) The Governor in Council may, by order, amend Schedule 3 by

    • (a) adding a gas to column 1 and its global warming potential to column 2 or deleting a gas from column 1 and its global warming potential from column 2; and

    • (b) amending the global warming potential set out in column 2 for a gas set out in column 1.

  • Marginal note:Factors

    (2) In making an order under subsection (1), the Governor in Council may take into account any factor that the Governor in Council considers appropriate, including any change in the reporting requirements under the United Nations Framework Convention on Climate Change, done in New York on May 9, 1992.

Marginal note:Amendments to Schedule 4

 The Governor in Council may, by order, amend Schedule 4 by

  • (a) adding a calendar year to column 1 and an excess emissions charge to column 2 for that year; and

  • (b) amending the excess emissions charge set out in column 2 for a calendar year set out in column 1.

Marginal note:Regulations

 The Governor in Council may make regulations for the purposes of this Division, including regulations

  • (a) defining facility;

  • (b) respecting covered facilities, including the circumstances under which they cease to be covered facilities;

  • (c) allowing for the determination of the persons that are responsible for a facility or covered facility;

  • (d) respecting designations and cancellations of designations under section 172;

  • (e) respecting compliance periods and the associated regular-rate compensation deadlines and increased-rate compensation deadlines;

  • (f) respecting the reports and verifications referred to in section 173 and subsections 176(2) and 177(2);

  • (g) respecting greenhouse gas emissions limits referred to in sections 173 to 175, subsection 178(1), section 182 and subsection 183(1);

  • (h) respecting the quantification of greenhouse gases that are emitted by a facility;

  • (i) respecting the circumstances under which greenhouse gases are deemed to have been emitted by a facility;

  • (j) respecting the methods, including sampling methods, and equipment that are to be used to gather information on greenhouse gas emissions and activities related to those emissions;

  • (k) respecting the compensation referred to in sections 174 and 178;

  • (l) respecting compliance units, including transfers of compliance units, the circumstances under which transfers of compliance units are prohibited and the recognition of units or credits issued by a person other than the Minister as compliance units;

  • (m) respecting the tracking system referred to in section 185 and the accounts in that system;

  • (n) providing for user fees;

  • (o) respecting the rounding of numbers;

  • (p) respecting the retention of records referred to in section 187; and

  • (q) respecting the correction or updating of information that has been provided under this Division.

Marginal note:Transitional measures

 The Governor in Council may make regulations respecting transitional matters related to the deletion of the name of a province or the description of an area from Part 2 of Schedule 1 or to circumstances in which a facility ceases to be a covered facility, including regulations respecting the application of this Division during a portion of a compliance period.

 
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