Greenhouse Gas Pollution Pricing Act (S.C. 2018, c. 12, s. 186)
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Act current to 2023-05-17 and last amended on 2023-04-01. Previous Versions
PART 2Industrial Greenhouse Gas Emissions (continued)
DIVISION 1Pricing Mechanism for Greenhouse Gas Emissions (continued)
Reporting, Compensation and Compliance Units (continued)
Marginal note:Retirement of compliance units
179 A compliance unit that is remitted under section 174, paragraph 178(1)(a) or subsection 181(2) or that is withdrawn under section 182 must not be used in any subsequent transaction and the Minister must ensure, in accordance with the regulations, that it is retired from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
180 (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
181 (1) If the Minister determines that compliance units were issued in error or are no longer valid, the Minister may, in accordance with the regulations, require a person to remit the number of compliance units in question to the Minister or a person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.
(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
182 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
183 (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.
184 (1) The Minister may issue a certificate certifying the unpaid amount of any debt referred to in subsection 183(1).
(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.
Marginal note:Establishment and maintenance
185 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.
186 (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.
Marginal note:Keeping records
187 (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.
Marginal note:Distribution — charge payments
188 (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.
(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
189 (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.
(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.
189.1 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
190 (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.
(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
191 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.
192 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
193 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.
194 (1) An order made under section 189, 190 or 191 and a regulation made under section 192 or 193 may have effect earlier than the day on which it is made if it so provides and it gives effect to measures referred to in a notice published by the Minister. However, the order or regulation must not have effect before the day on which the notice is published.
Marginal note:Statutory Instruments Act
(2) For greater certainty, a notice referred to subsection (1) is a regulation as defined in subsection 2(1) of the Statutory Instruments Act if, for the purpose of ensuring the early registration under section 171 of facilities as covered facilities, the notice sets out criteria respecting facilities and persons.
Marginal note:Regulations — offset credit system
195 The Governor in Council may make regulations establishing an offset credit system for projects that prevent greenhouse gases from being emitted or that remove greenhouse gases from the atmosphere, including regulations
(a) respecting the issuance by the Minister of offset credits to persons that are responsible for the projects;
(b) imposing requirements on those persons;
(c) respecting the registration and monitoring of the projects;
(d) respecting the keeping and retention of records; and
(e) providing for user fees.
196 The Minister may delegate his or her powers, duties and functions under this Division, with the exception of the one set out in subsection 194(1), to any person.
DIVISION 2Information and Samples
197 (1) The Minister may exercise a power under this section for one or more of the following purposes:
(a) to assess the emission levels in Canada of greenhouse gases or other gases that contribute or could contribute to climate change;
(b) to determine whether measures to control those emissions are required and, if so, what measures are to be taken; and
(c) to ensure that information that is necessary for the purposes of Division 1 is gathered or provided to the Minister.
(2) The Minister may, by order, require any person that is described in the order
(a) to notify the Minister if, during a period specified in the order, the person is or was engaged in any activity related to gases specified in the order;
(b) to gather information on those gases, including
(i) information on a substance or product, including a fuel, that is related to those gases, and
(ii) plans, specifications, studies and information in respect of any equipment, facility or activity that is related to those gases;
(c) to gather samples of those gases or any substance or product, including a fuel, that is related to those gases;
(d) to use specified methods and equipment to gather the information and samples or to quantify gas emissions; and
(e) to provide any information on those gases or to provide any samples referred to in paragraph (c) to the Minister.
Marginal note:Other requirements
(3) The order may also
(a) require numbers to be rounded in accordance with a method specified in the order;
(b) require any information that must be provided to be verified by a third party in accordance with the order;
(c) require copies of any information that is provided — and any documents, calculations, measurements and other data on which the information is based — to be retained in a location specified in the order for a period specified in the order;
(d) require the updating, within a period specified in the order, of contact information for a person described in the order and any other information of an administrative nature that is specified in the order; and
(e) specify the form and manner in which information and samples are to be provided.
Marginal note:Compliance with order
(4) A person that is described in the order must comply with the order within the time specified in the order.
Marginal note:Extension of time
(5) On request in writing from a person that is described in the order, the Minister may extend the time within which the person is required to comply with it.
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