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Output-Based Pricing System Regulations (SOR/2019-266)

Regulations are current to 2020-11-02 and last amended on 2020-05-31. Previous Versions

Verification Report (continued)

Marginal note:Content of verification report

 A verification report is prepared by a verification body in relation to the annual report and corrected report, if applicable, and any related data and information, and includes the information contained in Schedule 5.

Compensation and Compliance Units

Minister’s Intervention

Marginal note:Determination

  •  (1) Despite what is set out in a covered facility’s annual report or corrected report for a compliance period, the Minister may establish the emissions limit or determine the quantity of GHGs emitted from the covered facility for the compliance period if

    • (a) there is a material discrepancy with respect to the total GHGs from the covered facility or the production from one or more specified industrial activity used in the calculation of the emissions limit reported in the annual report or the corrected report; or

    • (b) the verification statement referred to in paragraph 3(n) of Schedule 5 indicates that it is impossible to determine that a material discrepancy does not exist, or that the annual report or corrected report was prepared in accordance with these Regulations.

  • Marginal note:Criteria

    (2) The Minister is to establish the emissions limit or determine the quantity of GHGs emitted from the covered facility for the compliance period, as the case may be, based on the following:

    • (a) the annual report and verification report for the compliance period and, if necessary, any previous reports;

    • (b) any report made in accordance with the Notice with respect to reporting of greenhouse gases (GHGs) published under the Canadian Environmental Protection Act, 1999;

    • (c) information in respect of industrial activities, in Canada or in other jurisdictions, similar to those of the covered facility, that allows for the determination of production amounts for the covered facility;

    • (d) accepted quantification methods used to calculate the GHGs from facilities engaged in the same industrial activity or in the same type of industrial activity as the covered facility; and

    • (e) any other information provided, on the Minister’s request, by the person responsible for the covered facility or the verifier.

  • Marginal note:Notice

    (3) The Minister must notify the person responsible for the covered facility, in writing, of their determination with respect to the emissions limit or the quantity of GHGs emitted from the covered facility established for the compliance period.

Compensation and Issuance of Surplus Credits

Marginal note:Excess emissions

 For the purposes of subsection 174(1) of the Act, if, during a compliance period, a covered facility emits GHGs in a quantity that exceeds the applicable emissions limit, the compensation to be provided by the person responsible for that facility is to be established based on the quantity of GHGs, expressed in CO2e tonnes, that was emitted in excess of the emissions limit as reported in the annual report submitted for the compliance period or the Minister’s determination under section 53, as the case may be.

Marginal note:Excess emissions charge payment

  •  (1) Any compensation that is provided by means of an excess emissions charge payment must be made electronically to the Receiver General for Canada.

  • Marginal note:Surplus credits

    (2) Any compensation that is provided by means of a remittance of surplus credits must be made in the manner set out in section 70.

  • Marginal note:Other compliance units

    (3) Any compensation that is provided by means of a remittance of compliance units other than surplus credits must be made in the manner set out in section 71.

The following provision is not in force.

Marginal note:Minimum percentage — charge

 A minimum of 25% of the compensation that is required under section 174 of the Act must be provided by means of an excess emissions charge payment.

Marginal note:Regular-rate compensation deadline

  •  (1) For the purposes of subsection 174(3) of the Act, the regular-rate compensation deadline is December 15 of the calendar year in which the related annual report must be submitted.

  • Marginal note:Exception

    (1.1) Despite subsection (1), for the compliance period that ends on December 31, 2019, the regular-rate compensation deadline is April 15, 2021.

  • Marginal note:Increased-rate compensation deadline

    (2) For the purposes of subsection 174(4) of the Act, the increased-rate compensation deadline is February 15 of the calendar year following the deadline under subsection (1).

  • Marginal note:Exception

    (2.1) Despite subsection (2), for the compliance period that ends on December 31, 2019, the increased-rate compensation deadline is June 15, 2021.

  • Marginal note:Notice referred to in subsection 53(3)

    (3) However, if a notice of determination under subsection 53(3) is issued after October 31 of the year in which the related annual report is due

    • (a) the regular-rate compensation deadline is 45 days after the day on which the notice is issued; and

    • (b) the increased-rate compensation deadline is 60 days after the day on which the regular-rate compensation deadline under paragraph (a) expires.

  • SOR/2020-114, s. 2

Marginal note:Compensation information

 A person that is responsible for a covered facility must, at the time compensation is provided, submit to the Minister the following information:

  • (a) the covered facility certificate number;

  • (b) the provision of the Act under which the compensation is being provided;

  • (c) the compliance period for which compensation is being provided;

  • (d) the quantity of GHGs emitted in excess of the emissions limit in respect of which the compensation is provided, expressed in CO2e tonnes;

  • (e) the details of any excess emissions charge payment, including

    • (i) the amount in dollars paid to the Receiver General for Canada,

    • (ii) the applicable rate, and

    • (iii) the date of payment;

  • (f) the details of any surplus credits or offset credits remitted, including, for each type of credit,

    • (i) the number remitted,

    • (ii) the date of the remittance transaction,

    • (iii) the remittance transaction number,

    • (iv) the serial numbers, and

    • (v) the date or dates on which they were issued; and

  • (g) the details of any units or credits, recognized as compliance units, remitted, including

    • (i) the number remitted,

    • (ii) the province or territory or program authority referred to in subsection 78(1) that issued the units or credits,

    • (iii) the date of their retirement,

    • (iv) the serial numbers assigned to them by the province or territory or program authority referred to in subsection 78(1),

    • (v) the start date of the offset project for which the unit or credit was issued,

    • (vi) the year in which the GHG reduction or removal occurred for which the unit or credit was issued,

    • (vii) the offset protocol applicable to the project for which the unit or credit was issued, including the version number and publication date, and

    • (viii) the name of the accredited verification body that verified the units or credits.

Marginal note:Surplus credits

 For the purposes of section 175 of the Act, the number of surplus credits, equivalent to the difference between the emissions limit and the quantity of GHGs emitted from the covered facility, that the Minister issues is based on what is reported in the annual report submitted for the compliance period, provided that no material discrepancy, within the meaning of subsection 49(2), exists with respect to the total quantity of GHGs and the production from each specified industrial activity that is used in the calculation of the emissions limit.

Errors and Omissions

Marginal note:Identification by person responsible

 The notice submitted under subsection 176(1) of the Act by a person responsible for a covered facility who has become aware of an error or omission in an annual report must indicate whether

  • (a) the error or omission would have constituted a material discrepancy under subsection 49(2) if it had been identified during the verification of the annual report; and

  • (b) the aggregate of all errors and omissions would have constituted a material discrepancy under subsection 49(2) if it had been identified during the verification of the annual report.

 
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