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

Errors and Omissions

Marginal note:Identification by person responsible

61 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.

Marginal note:Corrected report

• 62 (1) If the notice indicated that the error or omission, or the aggregate of all errors and omissions, would have constituted a material discrepancy under subsection 49(2), a corrected report, along with a verification report prepared in accordance with section 52, must be submitted to the Minister by the person responsible within 120 days after the day on which the notice is submitted.

• Marginal note:Content

  (2) The corrected report must include the information referred to in sections 11 and 12 and, under a heading, the following information:

  • (a) the information provided in the annual report that required correction and a description of the corrections made;

  • (b) a description of the circumstances that led to the errors or omissions and an indication of the reasons why the error or omission was not previously detected; and

  • (c) a description of the measures that have been and will be implemented to avoid future errors or omissions of the same type.

Marginal note:Identification by the Minister

• 63 (1) Subsection 62(2) applies to a report that is required by the Minister under subsection 177(2) of the Act and the report must be submitted to the Minister within the following period:

  • (a) in the case of a corrected report, 60 days after the day on which the Minister required it; and

  • (b) in the case of a verified corrected report, 120 days after the day on which the Minister required it.

• Marginal note:Verification report

  (2) The corrected report submitted under paragraph (1)(b) must be submitted with a verification report prepared in accordance with section 52.

Marginal note:Change in obligations

• 64 (1) For the purposes of section 178 of the Act, the revised compensation to be paid or remitted or the number of surplus credits to be issued, as the case may be, is equal to the difference between the result of the assessment made in accordance with section 44, and reported in the annual report, and the result that is reported in the corrected report.

• Marginal note:Revised compensation

  (2) For the purposes of paragraph 178(1)(a) of the Act, any revised compensation is to be provided by means of an excess emissions charge payment or a remittance of compliance units. Revised compensation is to be provided if the difference referred to in subsection (1) is greater than or equal to 500 CO₂e tonnes.

• Marginal note:Issuance of surplus credits

  (3) For the purposes of paragraph 178(1)(b) of the Act and subject to subsection (4), the Minister may issue a number of surplus credits that is equivalent to the difference between, as the case may be,

  • (a) the number of surplus credits that corresponds to the result obtained under section 44 based on the corrected report and the number of surplus credits issued under section 175 of the Act based on the annual report; or

  • (b) the applicable emissions limit and the quantity of GHGs emitted from the covered facility that are reported in the corrected report, if the emissions limit that was set out in the corrected report was calculated in accordance with these Regulations.

• Marginal note:Exception

  (4) The Minister will not issue surplus credits if

  • (a) a material discrepancy within the meaning of subsection 49(2) exists with respect to the total quantity of GHGs reported in the corrected report or the production from one of the specified industrial activities that is used in the calculation of the emissions limit reported in the corrected report for the compliance period; or

  • (b) the emissions limit or quantity of GHGs emitted from the covered facility is determined by the Minister for the compliance period under section 53.

65 [Repealed, SOR/2023-240, s. 36]

Marginal note:Excess Surplus credits issued

• 66 (1) If a corrected report shows that an excess number of surplus credits was issued to the person responsible for a covered facility and the credits in question remain in an account in the tracking system that is linked to the covered facility, the Minister must revoke the excess credits without notice. The revocation is effective as of the date on which the corrected report is submitted.

• Marginal note:Insufficient surplus credits in account

  (2) If any of the excess surplus credits are no longer in an account in the tracking system that is linked to the covered facility, the person responsible for the facility must, within the compensation deadlines set out in subsections 69(1) and (2), make up the amount owed by

  • (a) remitting to the Minister other surplus credits in accordance with section 70;

  • (b) remitting to the Minister other compliance units in accordance with section 71; or

  • (c) making an excess emissions charge payment in accordance with section 55.

Marginal note:Charge

67 An excess emissions charge payment made for the purposes of subsection 64(2) must be made in the manner set out in section 55.

Marginal note:Surplus credits

• 68 (1) Any revised compensation that is provided by the remittance of surplus credits must be made in the manner set out in section 70.

• Marginal note:Other compliance units

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

Marginal note:Regular-rate compensation deadline

• 69 (1) With respect to revised compensation, the regular rate referred to in subsection 174(3) of the Act applies for a period of 45 days after the day on which the corrected report must be submitted.

• Marginal note:Increased-rate compensation deadline

  (2) If compensation is not provided in full by the deadline set out in subsection (1), the increased rate referred to in subsection 174(4) of the Act applies for a period of 60 days after that deadline.

• Marginal note:Other compensation deadlines

  (3) If a corrected report is submitted to the Minister in respect of a compliance period for which the regular-rate compensation deadline set out in subsection 57(1) or (1.1) has not expired, the compensation deadline in respect of that compliance period is the later of

  • (a) the compensation deadlines set out in subsection 57(1), (1.1), (2) or (2.1), as the case may be, and

  • (b) the compensation deadlines under subsection (1) or (2), as the case may be.

Remittance of Compliance Units

Marginal note:Surplus credits

• 70 (1) Subject to subsection (2), any surplus credit may be remitted to the Minister for the purposes of subsection 174(1) or paragraph 178(1)(a) of the Act if the credit was issued no more than five calendar years before the remittance.

• Marginal note:Details — removal of province

  (2) The surplus credit must have been issued in respect of a facility that is located in a province that was listed in Part 2 of Schedule 1 to the Act for at least one day during the compliance period for which the credit is being remitted.

Marginal note:Other compliance units

71 Any recognized unit or credit or offset credit may be remitted to the Minister for the purposes of subsection 174(1) or paragraph 178(1)(a) of the Act if the unit or credit, as the case may be, was issued for GHG reductions or removals that occurred no more than eight calendar years before the remittance.

Suspension and Revocation

Marginal note:Suspension — reasonable grounds

• 72 (1) For the purposes of subsection 180(1) of the Act, the Minister may suspend a surplus credit in an account if the Minister has reasonable grounds to believe that the credit

  • (a) was already used;

  • (b) was issued on the basis of false or misleading information; or

  • (c) is no longer valid.

• Marginal note:Suspension — removal of province

  (1.1) For the purposes of subsection 180(1) of the Act, the Minister may suspend all surplus credits

  • (a) that were issued in respect of a covered facility that is located in a province that was listed in Part 2 of Schedule 1 to the Act but is no longer listed in that Part; and

  • (b) that are in an account in the tracking system that is linked to a facility that is located in a province that is no longer listed in Part 2 of Schedule 1 to the Act and ceased being a covered facility at the time when the name of the province in which it is located was removed from Part 2 of Schedule 1 to the Act.

• Marginal note:Notice

  (2) The Minister must, without delay, notify the holder of the account of the suspension of the credit, the reasons for the suspension and the date on which it takes effect.

• Marginal note:Response

  (3) If a credit was suspended on any of the grounds listed in subsection (1), the holder of the account may, within 30 days after the day on which the Minister’s notice under subsection (2) is issued, submit to the Minister their reasons why the credit should not be suspended.

• Marginal note:Conditional removal of suspension

  (4) The person responsible for a facility who holds an account that is linked to the facility in the tracking system in which there remain surplus credits that were suspended as a result of the name of a province being removed from Part 2 of Schedule 1 to the Act may make a request to the Minister to lift the suspension of those surplus credits if the surplus credits are to be provided as compensation for the facility’s excess emissions under subsection 174(1) of the Act or paragraph 178(1)(a) of the Act, in respect of a compliance period during which the facility was a covered facility.

Marginal note:Revocation

73 The Minister must, after the period set out in subsection 72(3), thoroughly review the reasons for the suspension that are set out in subsection 72(1) and notify the holder of the account that

• (a) if the Minister determines that the reasons for the suspension are well-founded, the surplus credit is revoked; or

• (b) the suspension of the credit is lifted.

Marginal note:Request for cancellation

74 A request under subsection 180(2) of the Act to cancel a surplus credit or offset credit must be made to the Minister in writing and include the serial number of the credit to be cancelled.

Issuance Error or Invalidity

Marginal note:Application of subsection 181(1) of the Act

• 75 (1) If the Minister requires a person, under subsection 181(1) of the Act, to remit a compliance unit, the Minister must provide the person a notice indicating the reason for the remittance, the number of compliance units to be remitted and the deadline by which the remittance is to be made.

• Marginal note:Manner of remittance

  (2) The compliance units remitted to the Minister under subsection 181(2) of the Act must

  • (a) in the case of surplus credits, have been issued within five calendar years before the deadline indicated in the notice provided under subsection (1) and have been issued in respect of a covered facility located in a province that was listed in Part 2 of Schedule 1 to the Act for at least one day during the compliance period for which the credit is being remitted; and

  • (b) in the case of recognized units or credits or offset credits, have been issued for GHG reductions or removals that occurred within the eight calendar years before the deadline indicated in the notice provided under subsection (1).