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

Act current to 2022-11-16 and last amended on 2022-10-11. Previous Versions

PART 2Industrial Greenhouse Gas Emissions

Interpretation

Marginal note:Definitions

 The following definitions apply in this Part.

analyst

analyst means an individual or a member of a class of individuals designated as an analyst under subsection 201(1). (analyste)

compliance period

compliance period means a period specified in the regulations. (période de conformité)

compliance unit

compliance unit means a surplus credit that is issued under section 175 or paragraph 178(1)(b), a unit or credit that is recognized under the regulations as a compliance unit or an offset credit that is issued under the regulations. (unité de conformité)

covered facility

covered facility means a facility, including a platform anchored at sea, that is located in a province or area that is set out in Part 2 of Schedule 1 and either

  • (a) meets the criteria set out in the regulations for that province or area; or

  • (b) is designated by the Minister under subsection 172(1). (installation assujettie)

enforcement officer

enforcement officer means an individual or a member of a class of individuals designated as an enforcement officer under subsection 201(1). (agent de l’autorité)

greenhouse gas

greenhouse gas means a gas that is set out in column 1 of Schedule 3. (gaz à effet de serre)

increased-rate compensation deadline

increased-rate compensation deadline means, in respect of a compliance period, the increased-rate compensation deadline specified for that period in the regulations. (délai de compensation à taux élevé)

Indigenous peoples of Canada

Indigenous peoples of Canada has the meaning assigned by the definition aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982. (peuples autochtones du Canada)

Minister

Minister means the Minister of the Environment. (ministre)

organization

organization has the same meaning as in section 2 of the Criminal Code. (organisation)

person

person means an individual or organization and includes Her Majesty in right of Canada or a province. (personne)

regular-rate compensation deadline

regular-rate compensation deadline means, in respect of a compliance period, the regular-rate compensation deadline specified for that period in the regulations. (délai de compensation à taux régulier)

Marginal note:Conversion into CO2e tonnes

 For the purposes of this Part, a quantity of a greenhouse gas, expressed in tonnes, is converted into carbon dioxide equivalent tonnes (in this Part referred to as “CO2e tonnes”) by multiplying that quantity by the global warming potential set out for the greenhouse gas in column 2 of Schedule 3.

DIVISION 1Pricing Mechanism for Greenhouse Gas Emissions

Registration of Covered Facilities

Marginal note:Application for registration

  •  (1) A person that is responsible for a covered facility must apply to the Minister for registration of that covered facility. The application must include the information specified by the Minister and be made in the time and manner specified by the Minister.

  • Marginal note:Registration

    (2) If the Minister is satisfied that the applicant is a person responsible for the facility named in the application, that the facility is a covered facility and that the application meets the requirements of subsection (1), the Minister must register the covered facility and issue a covered facility certificate to the applicant.

  • Marginal note:Cancellation

    (3) The Minister must cancel the registration and the covered facility certificate of a facility that ceases to be a covered facility or that was not a covered facility at the time of registration.

  • Marginal note:Notice setting out criteria

    (4) If a notice referred to in subsection 194(1) sets out criteria respecting facilities and persons, a facility that meets the criteria is, for the purposes of this section, a covered facility as defined in section 169 and a person that meets the criteria is, for the purposes of this section, a person responsible for the facility.

  • Marginal note:Notice cancelled

    (5) If a facility is registered as a result of the publication of a notice referred to in subsection 194(1) and that notice is cancelled before any regulations or orders referred to in it are made, the Minister must cancel the facility’s registration and covered facility certificate.

Marginal note:Designation of facility as covered facility

  •  (1) On request by a person that is responsible for a facility that is located in a province or area that is set out in Part 2 of Schedule 1, the Minister may, in accordance with the regulations, designate the facility as a covered facility. The request must include the information specified by the Minister and be made in the time and manner specified by the Minister.

  • Marginal note:Application for registration

    (2) If the Minister designates a facility as a covered facility, the request under subsection (1) is deemed to be an application for registration under subsection 171(1) and the Minister must register the covered facility.

  • Marginal note:Cancellation of designation

    (3) The Minister may, in accordance with the regulations, cancel the designation of a covered facility.

Reporting, Compensation and Compliance Units

Marginal note:Reporting requirement

 For each compliance period, a person that is responsible for a covered facility must, in accordance with the regulations,

  • (a) submit to the Minister a report that sets out the information that is specified in the regulations with respect to the greenhouse gas emissions limit that applies to the covered facility and any other information that is specified in the regulations; and

  • (b) cause the report to be verified by a third party.

Marginal note:Compensation for excess emissions

  •  (1) A person that is responsible for a covered facility that emits greenhouse gases in a quantity that exceeds the emissions limit that applies to the covered facility during a compliance period must, in accordance with the regulations, provide compensation for the excess emissions by the increased-rate compensation deadline.

  • Marginal note:Provision of compensation

    (2) The compensation is to be provided, at a rate set out in subsection (3) or (4), by means of

    • (a) a remittance of compliance units to the Minister or a person specified in the regulations in lieu of the Minister;

    • (b) an excess emissions charge payment to Her Majesty in right of Canada; or

    • (c) a combination of both.

  • Marginal note:Regular rate

    (3) If the compensation is provided by the regular-rate compensation deadline, the rate is

    • (a) one compliance unit for each CO2e tonne that was emitted in excess of the emissions limit; or

    • (b) the excess emissions charge set out in column 2 of Schedule 4, for the calendar year in which the compliance period falls, for each CO2e tonne that was emitted in excess of the emissions limit.

  • Marginal note:Increased rate

    (4) If the compensation is not provided in full by the regular-rate compensation deadline, the rate for each CO2e tonne that was emitted in excess of the emissions limit and for which no compensation was provided by that deadline is four times the rate set out in subsection (3).

  • Marginal note:Charge continued

    (5) If the compliance period falls in a year that is subsequent to the last calendar year set out in column 1 of Schedule 4, the excess emissions charge set out in column 2 for that last calendar year continues to apply for the purposes of paragraph (3)(b).

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.

 
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