Search Results | Clear Search | Previous (in doc) | Next (in doc) | Prev Doc | Next Doc
This Act is current to April 16, 2024
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Greenhouse Gas Industrial Reporting and Control Act

[SBC 2014] CHAPTER 29

Assented to November 27, 2014

Contents
Part 1 — Interpretation
1Definitions
Part 2 — Emission Reporting
2Non-reporting operations
3Emission reports
Part 3 — Emission Control
Division 1 — Compliance Obligation
4Repealed
5Excess greenhouse gas emissions
6Compliance obligation
6.1Greenhouse gas emission correction
7Compliance reports
7.1Determination by director
Division 2 — Emission Offsets
8Offset units
9Emission offset projects
10Director's protocols
Division 3 — Repealed
11Repealed
Division 4 — Earned Credits
12Earned credits
Division 5 — Registry
13Registry
14Registry administrator
15-19Repealed
Division 6 — Compliance Unit Suspension and Cancellation
20Suspension or cancellation of compliance units
Division 7 — Opted-in Operations and New Entrants
20.1Opting in and out
20.2New entrant
Part 4 — Compliance and Enforcement
Division 1 — Inspections
21Inspectors
22Inspection and seizure powers
Division 2 — Administrative Penalties
23Automatic administrative penalties: failure to meet compliance obligation
24Repealed
25Imposed administrative penalties in relation to other matters
26When administrative penalty is imposed and must be satisfied
27Administrative penalties do not relieve from compliance obligation
28Liability for administrative penalty
29Recovery of penalties and other debts due
Division 3 — Offences and Penalties
30Offences
31Offences of providing false or misleading information
32Continuing offences
33Liability of directors and officers
34Relationship between administrative penalties and offences
35Other provisions relating to offences
Division 4
36-39Not in force
Part 5 — Appeals to Environmental Appeal Board
40What decisions may be appealed, who may appeal and the appeal process
Part 6 — General
40.1Director's power to delegate
40.2No indemnification in relation to compliance units
41Notice and service under this Act
42Confidentiality
43Information-sharing agreements
44Agreements
45Operator responsibility
46General regulation-making powers
47Regulations in relation to industrial, reporting and regulated operations
48 Regulations in relation to compliance units
49Regulations in relation to validation and verification
50Regulations in relation to registry
51Regulations in relation to administrative penalties
52Regulations in relation to appeals
53Regulations in relation to other matters
Part 7 — Transitional Provision, Repeal and Consequential Amendments
54Transition — Climate Change Accountability Act
55 Repeal
56-64 Consequential Amendments
65Commencement
Schedule

Part 1 — Interpretation

Definitions

1   (1) In this Act:

"accepted emission offset project" means an emission offset project accepted by the director under section 9 [emission offset projects];

"account" means an account in the registry;

"administrative agreement" means an agreement referred to in section 14 (1) (b) [registry administrator];

"appeal board" means the Environmental Appeal Board under the Environmental Management Act;

"attributable", in relation to greenhouse gas emissions, means attributable under the regulations to an industrial operation;

"carbon dioxide equivalent" means the mass of carbon dioxide that would produce the same global warming impact as a given mass of another greenhouse gas, as determined in accordance with the regulations;

"compliance account" means an account described in section 13 (2) (d) [registry];

"compliance obligation" means the requirement imposed under section 6 (1) on regulated operations;

"compliance obligation deadline", in relation to a compliance period, means the compliance obligation deadline prescribed for the compliance period;

"compliance period" means a period set out in column 2 of the Schedule;

"compliance report" means a report under section 7 (1) [compliance reports], a supplementary report under section 7 (3) or a corrected report under section 7 (5.1);

"compliance unit" means an offset unit, an earned credit or a recognized unit;

"conservation officer" has the same meaning as in the Environmental Management Act;

"contingency account" means the account described in section 13 (2) (f) [registry];

"director" means an employee appointed under the Public Service Act who is designated as the director for the purposes of this Act;

"earned credit" means a compliance unit described in section 12 [earned credits];

"emission limit", in relation to a regulated operation for a compliance period, means the emission limit for the regulated operation as determined in accordance with the regulations for the compliance period;

"emission report" means a report under section 3 (1) [emission reports], a supplementary report under section 3 (3) or a corrected report under section 3 (5.1);

"facility", subject to subsection (3), has the prescribed meaning;

"foreign jurisdiction" means a jurisdiction outside Canada;

"greenhouse gas" has the same meaning as in the Climate Change Accountability Act;

"holding account" means

(a) an account described in section 13 (2) (a), (b) or (c) [registry], or

(b) a prescribed account in the registry;

"industrial operation", subject to subsection (3), means one or more facilities, or a prescribed activity, to which greenhouse gas emissions are attributable;

"inspector" means a person, or a person in a class, designated under section 21 [inspectors];

"issue", in relation to an offset unit or an earned credit, means issue by the director or issue by the registry administrator on the direction of the director;

"new entrant" means an industrial operation or a part of an industrial operation

(a) that has been designated under section 20.2 (2) [new entrant] as a new entrant,

(b) that is a regulated operation, or a part of a regulated operation, and

(c) in relation to which the new entrant period has begun and not ended;

"new entrant period", in relation to a new entrant, has the prescribed meaning;

"offset unit" means a compliance unit described in section 8 (1) [offset units];

"operator", in relation to an industrial operation, means a person considered under the regulations to be the operator of the industrial operation;

"opted-in operation" means an industrial operation that is designated under section 20.1 [opting in and out] as a reporting operation or as a reporting operation and a regulated operation;

"project proponent" means a person who

(a) meets the prescribed criteria, if any, and

(b) submits to the director, directly or through a validation body, a plan for an emission offset project that the person proposes to or does carry out;

"project report" means a report described in section 8 (1) [offset units] that meets the prescribed requirements;

"protocol" means a protocol established under section 10 [protocols];

"recognized unit" means a unit of another jurisdiction that under the regulations is, or is deemed to be, the equivalent of an offset unit for the purpose of meeting compliance obligations;

"registry" means the registry established under section 13 (1) [registry];

"registry administrator" means a person appointed under section 14 (1) [registry administrator];

"regulated operation", subject to subsection (3), means

(a) a reporting operation that is in a class designated by regulation, or

(b) an opted-in operation that is designated as a reporting operation and a regulated operation;

"reporting operation", subject to subsection (3), means

(a) an industrial operation that is prescribed as a reporting operation, or

(b) an opted-in operation that is designated as a reporting operation;

"reporting period" means the period prescribed for the purposes of section 3 (1) [emission reports];

"retire" means,

(a) in relation to an offset unit or an earned credit, the transfer of the unit into the retirement account by the director or by the registry administrator on the direction of the director, or

(b) in relation to a recognized unit, retirement of the unit in accordance with the regulations;

"retirement account" means the account described in section 13 (2) (e) [registry];

"validation body" means a person that meets the prescribed requirements;

"validation statement" means a statement, in accordance with section 9 (1) [emission offset projects], of a validation body respecting the plan for an emission offset project, which statement includes the prescribed information, statements and signatures;

"verification body" means a person that meets the prescribed requirements;

"verification statement" means a statement of a verification body respecting information included in an emission report, a compliance report or an accepted emission offset project report, or information provided to the director under section 3 (7) [emission reports] or 7 (7) [compliance reports], which statement includes the prescribed information, statements and signatures.

(2) [Not in force. Repealed 2023-23-47.]

(3) The director may determine, taking into account any criteria prescribed by regulation, whether any specific buildings, structures, fixtures, equipment or activities constitute a facility, an industrial operation, a reporting operation or a regulated operation, or a part of an industrial operation, reporting operation or regulated operation.

Part 2 — Emission Reporting

Non-reporting operations

2   (1) If required by the regulations, for each reporting period, the operator of an industrial operation that was not a reporting operation in the previous reporting period, and would be a reporting operation but for the level of its greenhouse gas emissions, must calculate, in accordance with the regulations, the greenhouse gas emissions of the industrial operation to determine whether it is a reporting operation for the reporting period.

(2) An industrial operation that is not a reporting operation for a reporting period must, if required by the regulations,

(a) maintain the prescribed records of the determination under subsection (1) for the prescribed period and produce those records on request of an inspector, and

(b) provide information to the director as required by the regulations.

Emission reports

3   (1) For each reporting period, in accordance with the regulations, the operator of a reporting operation must ensure that the reports required by the regulations respecting the following are submitted to the director:

(a) the amount of greenhouse gas emissions, determined in accordance with the regulations, that is attributable to the reporting operation for the purposes of this section for the reporting period;

(b) the prescribed information or matters.

(2) [Repealed 2023-23-17.]

(3) The operator of a reporting operation must ensure that a supplementary report is submitted to the director within the prescribed period after the operator becomes aware that

(a) information in a previous report under this section did not completely and accurately disclose the information required to be included in the report, or

(b) information required to be reported in a previous report has changed.

(4) [Repealed 2023-23-17.]

(5) Subsection (3) does not apply in relation to inaccuracies, omissions or changes that are considered under the regulations to be immaterial.

(5.1) If, within 7 years after an emission report is submitted, the director has reasonable grounds to suspect that there is an error or omission in the report, the director may require that the operator of the reporting operation have a corrected report prepared in accordance with the regulations and submitted to the director by the date specified by the director.

(5.2) The operator of a reporting operation must comply with a requirement of the director under subsection (5.1) in relation to an emission report unless the operator establishes to the satisfaction of the director that

(a) the emission report is accurate and complete, or

(b) data is not available to correct the emission report.

(6) A supplementary report or a corrected report under this section must be in accordance with the regulations or, if no specific direction is prescribed, in accordance with the regulations applicable to the report under subsection (1).

(7) If required by the director, the operator of a reporting operation must provide, by the date specified by the director,

(a) any additional information specified by the director in support of an emission report,

(b) information that the director reasonably requires for the purposes of administering or ensuring compliance with this Act or the regulations, and

(c) any prescribed information.

(8) If required by the regulations or by the director, the operator of a reporting operation must ensure that a verification statement in relation to an emission report, or in relation to information provided under subsection (7), is prepared at the expense of the operator and submitted to the director

(a) in accordance with the regulations, or

(b) if no specific direction is prescribed, in accordance with the directions of the director.

(9) The director may

(a) require that an emission report or information provided under subsection (7) be audited at the expense of the operator in accordance with the directions of the director, or

(b) conduct the audit, or authorize a person to conduct the audit, at the expense of the operator.

Part 3 — Emission Control

Division 1 — Compliance Obligation

Repealed

4   [Repealed 2023-23-18.]

Excess greenhouse gas emissions

5   (1) For the purposes of this Act, a regulated operation has excess greenhouse gas emissions in a compliance period if the amount of greenhouse gas emissions, determined in accordance with the regulations on a carbon dioxide equivalent basis, attributable to the regulated operation for the compliance period exceeds the emission limit applicable to the regulated operation for the compliance period.

(2) The amount of excess greenhouse gas emissions of a regulated operation for a compliance period is the following:

(a) subject to paragraph (b), the amount reported in the compliance report under section 7 (1) submitted to the director for the compliance period;

(b) if one or more supplementary reports under section 7 (3), or corrected reports under section 7 (5.1), are submitted to the director in relation to the amount of excess greenhouse gas emissions for the compliance period, the amount reported in the most recent report.

(3) Despite subsection (2), if the director determines the amount of excess greenhouse gas emissions for the compliance period under section 7.1 (1), the amount of excess greenhouse gas emissions is one of the following amounts, as determined by the director:

(a) the amount determined by the director under section 7.1 (1);

(b) if the director accepts a supplementary report or corrected report referred to in subsection (2) (b), the amount reported in the report.

Compliance obligation

6   (1) Subject to subsection (2), for each compliance period, the operator of a regulated operation must ensure that the amount of greenhouse gas emissions, determined in accordance with the regulations on a carbon dioxide equivalent basis, that is attributable to the regulated operation is less than or equal to the emission limit applicable to the regulated operation for the compliance period.

(2) Subject to the regulations, the operator of a regulated operation in a prescribed class of regulated operations that has excess greenhouse gas emissions in a compliance period may meet its compliance obligation by doing one or both of the following by the compliance obligation deadline:

(a) ensuring that compliance units are available in a compliance account of the regulated operation for retirement;

(b) making a monetary payment to the government.

(3) Subject to the regulations, the amount required to meet the compliance obligation under subsection (2) of a regulated operation for a compliance period is calculated at the following rates:

(a) one compliance unit for each tonne of excess greenhouse gas emissions in the compliance period;

(b) the dollar amount set out in column 1 of the Schedule for each tonne of excess greenhouse gas emissions in the compliance period set out opposite in column 2 of the Schedule.

Greenhouse gas emission correction

6.1   (1) This section applies if, as a result of a supplementary report under section 7 (3), a corrected report under section 7 (5.1) or a determination by the director under section 7.1, either of the following is corrected after the operator of a regulated operation has, under section 6 (2), met a compliance obligation, or the director has, under section 12 (1) [earned credits], issued earned credits to the operator of a regulated operation in relation to a compliance period:

(a) the emission limit for the regulated operation for the compliance period;

(b) the amount of greenhouse gas emissions, determined in accordance with the regulations on a carbon dioxide equivalent basis, attributable to the regulated operation for the compliance period.

(2) In the circumstances described in subsection (1), the operator of the regulated operation or the director, as applicable, must do the following, in accordance with the regulations:

(a) if the correction results in an increased amount required under section 6 (3), the operator must, within the prescribed period, meet the additional compliance obligation;

(b) if the correction results in a reduced amount required under section 6 (3), the director may do one or a combination of the following:

(i) issue, by crediting to a holding account of the operator of the regulated operation, compliance units equivalent to the amount of any overpayment made by the regulated operation;

(ii) issue a monetary refund equivalent to the amount of any overpayment made by the regulated operation;

(c) if the correction results in additional credits to be issued to the regulated operation under section 12, the director may issue, by crediting to a holding account of the operator, earned credits calculated in accordance with section 12 (1);

(d) if the correction results in fewer credits to be issued to the regulated operation under section 12, the operator must, within the prescribed period,

(i) ensure that the number of compliance units equal to the number of excess credits issued are available in a compliance account for the regulated operation for retirement or cancellation, or

(ii) make a monetary payment to the government equal to the number of excess credits issued, multiplied by the dollar amount set out in column 1 of the Schedule for the compliance period in which the correction is made as set out opposite in column 2 of the Schedule.

Compliance reports

7   (1) For each compliance period, in accordance with the regulations, the operator of a regulated operation must ensure that the reports required by the regulations respecting the following are submitted to the director:

(a) the amount of greenhouse gas emissions, determined in accordance with the regulations on a carbon dioxide equivalent basis, that is attributable to the regulated operation for the purposes of the operator's compliance obligation for the compliance period;

(b) [Repealed 2023-23-21.]

(c) the applicable emission limit or, if the emission limit for the regulated operation is determined using a formula set out in the regulations, the elements of the calculation and the calculation of the emission limit;

(d) if the amount of greenhouse gas emissions under paragraph (a) exceeds the limit under paragraph (c), a calculation of greenhouse gas emissions, expressed in carbon dioxide equivalent emissions, by which the emissions described in paragraph (a) exceed that limit;

(e) if applicable, the number of compliance units that have been placed in a compliance account of the operator or the monetary amount paid, or both, to meet the operator's compliance obligation for the compliance period;

(f) the prescribed information or matters.

(2) The operator of a regulated operation must ensure that a verification statement in relation to a compliance report under subsection (1) is prepared, and submitted to the director, in accordance with the regulations.

(3) An operator of a regulated operation must ensure that a supplementary report is submitted to the director within the prescribed period after the operator becomes aware that

(a) information in a previous report under this section did not completely and accurately disclose the information required to be included in the report, or

(b) information required to be reported in a previous report has changed.

(4) [Repealed 2023-23-21.]

(5) Subsection (3) does not apply in relation to inaccuracies, omissions or changes that are considered under the regulations to be immaterial.

(5.1) If, within 7 years after a compliance report is submitted, the director has reasonable grounds to suspect that there is an error or omission in the report, the director may require that the operator of the reporting operation have a corrected report prepared in accordance with the regulations and submitted to the director by the date specified by the director.

(5.2) The operator of a reporting operation must comply with a requirement of the director under subsection (5.1) in relation to a compliance report unless the operator establishes to the satisfaction of the director that

(a) the compliance report is accurate and complete, or

(b) data is not available to correct the compliance report.

(6) A supplementary report or a corrected report under this section must be made in accordance with the regulations or, if no specific direction is prescribed, in accordance with the regulations applicable to the report under subsection (1).

(7) If required by the director, the operator of a regulated operation must provide, by the date specified by the director,

(a) any additional information specified by the director in support of a compliance report,

(b) information that the director reasonably requires for the purposes of administering or ensuring compliance with this Act or the regulations, and

(c) any prescribed information.

(8) If required by the regulations or by the director, the operator of a regulated operation must ensure that a verification statement in relation to a supplementary report under subsection (3), a corrected report under subsection (5.1) or information provided under subsection (7) is prepared at the expense of the operator and submitted to the director

(a) in accordance with the regulations, or

(b) if no specific direction is prescribed, in accordance with the directions of the director.

(9) The director may

(a) require that a compliance report or information provided under subsection (7) be audited at the expense of the operator in accordance with the directions of the director, or

(b) conduct the audit, or authorize a person to conduct the audit, at the expense of the operator.

Determination by director

7.1   (1) The director may, in the circumstances set out in subsection (2), determine any of the following:

(a) the emission limit for a regulated operation for a compliance period;

(b) the amount of greenhouse gas emissions, in accordance with the regulations on a carbon dioxide equivalent basis, that is attributable to a regulated operation for a compliance period;

(c) the amount of excess greenhouse gas emissions of a regulated operation for a compliance period.

(2) The director may act under subsection (1) in relation to a regulated operation for a compliance period in any of the following circumstances:

(a) the most recent compliance report submitted to the director for the regulated operation for the compliance period does not completely and accurately disclose the information required to be included in the report;

(b) a compliance report required for the regulated operation for the compliance period was not submitted within the period required by the regulations or by the date specified by the director, as applicable;

(c) additional information required by the director in support of a compliance report for the regulated operation for the compliance period was not submitted by the date specified by the director;

(d) prescribed circumstances.

(3) Subsection (2) (a) does not apply in relation to inaccuracies, omissions or changes that are considered under the regulations to be immaterial.

Division 2 — Emission Offsets

Offset units

8   (1) On application in accordance with the process established by regulation, the director may issue, by crediting to an account, one unit for

(a) each verified reduction of one tonne of carbon dioxide equivalent emissions into the atmosphere, or

(b) each verified removal of one tonne of carbon dioxide equivalent emissions from the atmosphere

achieved as part of and in accordance with an accepted emission offset project in respect of which the director has received a report of the outcome of the project and a verification statement in relation to the report.

(2) An offset unit described in subsection (1) may be credited, as directed by the director, only to

(a) a holding account of the project proponent, or

(b) a contingency account.

Emission offset projects

9   (1) Subject to section 10 (6) and the regulations, the director may accept an emission offset project if the director receives from a validation body a copy of the plan in respect of the project and a validation statement respecting that plan, which statement is in accordance with the regulations and affirms that the validation body is satisfied that

(a) the plan for the emission offset project

(i) meets the prescribed criteria, if any, and

(ii) is in accordance with the applicable protocol,

(b) the proponent of the emission offset project meets the prescribed criteria, if any,

(c) the plan for the emission offset project and the assertions in the plan are fair and reasonable,

(d) the reduction of greenhouse gas emissions into, or removal of greenhouse gas from, the atmosphere, estimated in the plan to be achieved through the emission offset project, are conservatively estimated, and

(e) if the emission offset project is implemented in accordance with the plan, the estimated reduction of greenhouse gas emissions into, or removal of greenhouse gas from, the atmosphere will be achieved.

(2) The director must publish the following by posting them on a publicly available website:

(a) the plan for an accepted emission offset project;

(b) the validation statement in respect of the plan;

(c) project reports in relation to the accepted emission offset project;

(d) verification statements in respect of the project reports.

(3) [Repealed 2023-23-24.]

(4) If, at any time after the director accepts a plan for an emission offset project, the director has reasonable grounds to suspect that subsection (1) (a) does not apply, the director may require that the project proponent have a corrected plan prepared in the form and manner required by the regulations and submitted to the director by the date specified by the director.

(5) The director may require that a project proponent have a validation statement in relation to a corrected plan under subsection (4) prepared in accordance with the regulations and submitted to the director by the date specified by the director.

(6) A project proponent must comply with a requirement of the director under subsection (4) or (5).

Director's protocols

10   (1) In accordance with the prescribed procedures, if any, the director may establish protocols, consistent with the regulations, for any aspect of carrying out a class of emission offset projects, including, without limitation,

(a) describing the class of emission offset projects to which a protocol is applicable,

(b) describing the phases of emission offset projects in the class, including, without limitation, describing how the start and end dates of the projects will be determined,

(c) for determining the standards for planning, managing and conducting projects and for monitoring, measuring, quantifying and documenting in relation to projects in the class,

(d) for determining the baseline greenhouse gas emission level to be used to measure the reductions and removals of greenhouse gas achieved by projects in the class,

(e) describing requirements to be met before offset units may be issued in relation to the class of projects, which may include, but are not limited to the following, in accordance with the regulations:

(i) requiring the project proponent to provide evidence that a covenant under section 219 of the Land Title Act, a statutory right of way under section 218 of that Act or another charge under that Act has been registered in the land title office in favour of the Crown and specifying the terms and conditions of the charge;

(ii) requiring the project proponent to provide security for the performance of the proponent's obligations under this Act in relation to the project, and

(f) insuring against the risk of reversal of greenhouse gas reductions or removals achieved by an emission offset project, which may include

(i) requiring that offset units generated by the project be credited to the contingency account, or

(ii) discounting the number of offset units to be credited to a holding account of the project proponent.

(2) Unless the regulations provide otherwise, the director may specify in a protocol how a prescribed standard applies to, or may make different provisions for, different subclasses of emission offset projects in the class to which the protocol applies.

(3) The director must provide public notice, in any manner the director considers appropriate, of the establishment or amendment of a protocol.

(4) A protocol established under subsection (1) does not apply to an emission offset project for which a plan is validated before notice of the protocol is provided under subsection (3).

(4.1) The director must give notice to the project proponent of an accepted emission offset project of any amendment to a protocol that applies to the project.

(5) A validation body must not provide a validation statement unless the plan for an emission offset project is in accordance with the applicable protocol.

(6) The director must not accept a plan for an emission offset project that has a start date, determined in accordance with the applicable protocol, that occurred before public notice of that protocol, or before public notice of an amendment to that protocol that makes that protocol applicable to the emission offset project, is given under subsection (3), if

(a) more than one year has elapsed since that public notice was given, or

(b) more than 5 years have elapsed since the project was started.

Division 3 — Repealed

Repealed

11   [Repealed 2023-23-26.]

Division 4 — Earned Credits

Earned credits

12   (1) If the director is satisfied that the greenhouse gas emissions of the regulated operation for the compliance period were less than the emission limit applicable to that regulated operation for that compliance period, the director may issue, by crediting to a holding account of the operator of the regulated operation, one credit for each tonne of carbon dioxide equivalent emissions by which the greenhouse gas emissions of that regulated operation were less than that emission limit.

(2) [Repealed 2023-23-27.]

Division 5 — Registry

Registry

13   (1) The Lieutenant Governor in Council must, by regulation, establish a registry for the purposes of this Act.

(2) The registry must include the following accounts:

(a) holding accounts for regulated operations, and operators of regulated operations, to which the director may credit compliance units;

(b) holding accounts for accepted emission offset projects, and project proponents of accepted emission offset projects, to which the director may credit compliance units;

(c) a holding account for the government to which the director may credit offset units for the purpose of meeting the obligations under section 6 [requirements for achieving carbon neutral status] of the Climate Change Accountability Act;

(d) compliance accounts for regulated operations, and operators of regulated operations,

(i) to which operators may transfer compliance units for the purpose of meeting compliance obligations, and

(ii) from which the director may retire compliance units;

(e) a retirement account for the government to which the director may transfer compliance units;

(f) one or more contingency accounts for the government to which the director may transfer compliance units

(i) to compensate for reversals of greenhouse gas reductions or removals achieved by emission offset projects, or

(ii) for prescribed purposes.

Registry administrator

14   (1) The minister may appoint a registry administrator as follows:

(a) if the registry is to be operated by the minister, the minister may appoint an employee under the Public Service Act as the registry administrator;

(b) if the registry is to be operated outside of government, the minister may appoint a person as the registry administrator subject to the minister entering into an administrative agreement with the person.

(2) The registry administrator must administer the registry in accordance with this Act, the regulations, the directions of the director and, if an administrative agreement is required, the administrative agreement.

(3) A registry administrator appointed under an administrative agreement is not an agent of the government for the purposes of the administration of the registry.

Repealed

15-19   [Repealed 2023-23-28.]

Division 6 — Compliance Unit Suspension and Cancellation

Suspension or cancellation of compliance units

20   The director may, in accordance with the regulations, suspend or cancel compliance units.

Division 7 — Opted-in Operations and New Entrants

Opting in and out

20.1   (1) The operator of an industrial operation that is not a reporting operation may, in accordance with the regulations, apply to the director for designation of the industrial operation as

(a) a reporting operation, or

(b) a reporting operation and a regulated operation.

(2) On application under subsection (1), the director may, if satisfied that the prescribed criteria are met, designate the industrial operation as a reporting operation, or as a reporting operation and a regulated operation, as applicable.

(3) The operator of an opted-in operation may, in accordance with the regulations, apply to the director for a designation under this section to be revoked.

(4) On application under subsection (3), the director may, if satisfied that the prescribed criteria are met, revoke the designation.

(5) A revocation of a designation is effective at the end of the reporting period during which the revocation is made.

New entrant

20.2   (1) The operator of an industrial operation or a proposed industrial operation that is, or is expected to become, a regulated operation or a part of a regulated operation, may apply to the director, in accordance with the regulations, for designation of all or part of the industrial operation, or proposed industrial operation, as a new entrant.

(2) On application under subsection (1), the director may, if satisfied that the prescribed criteria are met, designate all or part of the industrial operation or proposed industrial operation as a new entrant.

(3) The director may, if the regulations so provide, do the following:

(a) if the new entrant is a regulated operation, exempt the new entrant from a compliance obligation;

(b) if the new entrant is a part of a regulated operation,

(i) exclude greenhouse gas emissions of the new entrant for the purposes of determining the greenhouse gas emissions that are attributable to the regulated operation, and

(ii) determine the emission limit for the regulated operation in accordance with the regulations.

Part 4 — Compliance and Enforcement

Division 1 — Inspections

Inspectors

21   The director may

(a) designate a person as an inspector or a class of persons as inspectors, and

(b) issue identification to a person, or a person in a class, designated under paragraph (a), identifying the person as an inspector.

Inspection and seizure powers

22   (1) An inspector may, on the inspector's own initiative or on information provided by any person, conduct an inspection for the purposes of administering or ensuring compliance with this Act or the regulations.

(1.1) For the purposes of an inspection, an inspector, at any reasonable time, may enter land or premises, other than premises or a part of premises used solely as a private residence, and inspect any place, process, thing or activity that is

(a) part of the business premises or operations of an industrial operation, or

(b) part of the business premises of the project proponent of an accepted emission offset project or the site of the project.

(2) An inspector who enters land or premises under this section may do any or all of the following for the purposes referred to in subsection (1):

(a) inspect, analyze, measure, sample or test anything;

(b) use or operate anything or require the use or operation of anything, under conditions specified by the inspector;

(c) take away samples;

(d) make or take away copies of records.

(3) An inspector who enters land or premises in accordance with this section

(a) may take along the persons and equipment that the inspector considers may be necessary for the purposes of the inspection, and

(b) on request, must provide proof of identity to a person present on the land or premises entered.

(4) Section 112 [seizures and prevention orders] of the Environmental Management Act applies for the purposes of this Act, and for that application

(a) a reference in that section to this Act or to this Act or the regulations is to be read as a reference to this Act or this Act and the regulations under this Act, as applicable,

(b) a reference in that section to a director is to be read as a reference to the director under this Act,

(c) a reference in that section to an officer is to be read as a reference to an inspector, and

(d) a reference in that section to an inspection is to be read as a reference to an inspection under this Act.

(5) A person who is the subject of an inspection under this section, or who is or was a director, receiver, receiver manager, officer, employee, banker, auditor or agent of a person who is the subject of an inspection under this section, on request of an inspector, must, without charge or unreasonable delay,

(a) produce for examination by the inspector any record relating to requirements under this Act, and

(b) provide the inspector with information relevant to the purposes of the inspection.

Division 2 — Administrative Penalties

Automatic administrative penalties: failure to meet compliance obligation

23   (1) The operator of a regulated operation is subject to the administrative penalty established by the regulations if a compliance report, or a determination made by the director under section 7.1, indicates that the operator has failed to meet the operator's compliance obligation by the compliance obligation deadline.

(2) Subsection (1) applies whether the compliance report is submitted, or the determination made, before or after the compliance obligation deadline.

Repealed

24   [Repealed 2023-23-33.]

Imposed administrative penalties in relation to other matters

25   (1) The director may take action under this section, in accordance with the regulations, if the director is satisfied on a balance of probabilities that a person has contravened a prescribed provision of this Act or the regulations.

(2) In the circumstances referred to in subsection (1), the director, in accordance with the regulations, may serve the person with an administrative penalty notice

(a) identifying the person's non-compliance as determined by the director, and

(b) requiring the person to satisfy the administrative penalty specified in the notice.

When administrative penalty is imposed and must be satisfied

26   (1) A person served with an administrative penalty notice under section 25 (2) is subject to an administrative penalty as follows:

(a) if the person admits, in writing, to the non-compliance and, if applicable, to its extent as determined by the director, the penalty indicated in the notice is imposed at the time of that admission;

(b) if the time for appealing the determination of non-compliance or its extent under Part 5 [Appeals to Environmental Appeal Board] has elapsed and no appeal has been commenced, the penalty indicated in the notice is imposed at the end of the time for appealing;

(c) if the non-compliance or its extent as determined by the director is appealed and, under the final determination of the appeal, the person is subject to an administrative penalty, the penalty specified in the final determination is imposed at the time of that final determination.

(2) In the case of an administrative penalty under section 23 or 25 that is a monetary amount, the amount must be paid to the government within the prescribed time and in accordance with any other prescribed requirements.

(3) In the case of an administrative penalty under section 23 or 25 that is an obligation to make compliance units available for retirement, the compliance units must be deposited into a compliance account of the operator within the prescribed time and in accordance with any other prescribed requirements.

Administrative penalties do not relieve from compliance obligation

27   Compliance units required as an administrative penalty to be made available for retirement are in addition to the compliance units the operator is required to make available under section 6 (2) [compliance obligation] or the regulations in order to meet the compliance obligation in relation to which the administrative penalty was imposed.

Liability for administrative penalty

28   (1) If a corporation fails to do something or does something for which the corporation is liable to an administrative penalty, a director or officer of the corporation who authorized, permitted or acquiesced in the failure or action is also liable to an administrative penalty.

(2) This section applies whether or not an administrative penalty is imposed on the corporation.

Recovery of penalties and other debts due

29   (1) An administrative penalty that is a monetary amount may be recovered in accordance with subsection (3) as a debt due to the government from the person on whom the administrative penalty was imposed.

(2) If a person does not satisfy, within the prescribed time, an administrative penalty that is an obligation to make compliance units available for retirement,

(a) the government may acquire and retire compliance units equal to the amount needed to satisfy the obligation, and

(b) the costs of acquiring and retiring the compliance units may be recovered in accordance with subsection (3) as a debt due to the government from the person.

(3) If a person fails to pay

(a) an administrative penalty as required under this Act, or

(b) an amount owing under subsection (2) (b) within 30 days' notice of the debt being served on the person,

the director may file a certificate in a court that has jurisdiction and, on filing, the certificate has the same force and effect, and all proceedings may be taken on it, as if it were a judgment of the court with which it is filed.

(4) A certificate under subsection (3) may be in the prescribed form, must be signed by the director and must contain

(a) the name of the person who is liable for the administrative penalty or debt,

(b) particulars of the administrative penalty or debt, and

(c) a statement of the amount of the monetary penalty under subsection (1) or the government's costs under subsection (2) (b).

Division 3 — Offences and Penalties

Offences

30   (1) An operator of a regulated operation who contravenes section 6 (1) [compliance obligation] commits an offence.

(2) An operator of a reporting operation or regulated operation who does any of the following commits an offence:

(a) contravenes section 3 (1), (3), (5.2), (6), (7) or (8) [emission reports];

(b) contravenes section 7 (1), (2), (3), (5.2), (6), (7) or (8) [compliance reports];

(c) contravenes section 9 (6) [emission offset projects].

(3) An operator of an industrial operation to which section 2 [non-reporting operations] applies who contravenes section 2 (1) or (2) commits an offence.

(4) A person who does either of the following commits an offence:

(a) obstructs or resists the director or an inspector exercising powers or performing duties under this Act;

(b) fails to comply with a direction given or requirement imposed under this Act by the director or an inspector.

(5) A person convicted of an offence under subsection (1), (2), (3) or (4) is liable to a fine of not more than $1 500 000 or imprisonment for a term of not more than 2 years, or both.

(6) A person who contravenes section 42 (2) [confidentiality] commits an offence.

(7) A person convicted of an offence under subsection (6) is liable to a fine of not more than $200 000 or imprisonment for a term of not more than 2 years, or both.

Offences of providing false or misleading information

31   (1) A person must not include false or misleading information in a report required to be provided to the director under this Act nor provide false or misleading information to a person acting under this Act.

(2) A person who knowingly contravenes subsection (1) commits an offence and is liable on conviction to a fine of not more than $1 500 000 or imprisonment for a term of not more than 2 years, or both.

(3) A person who contravenes subsection (1), other than a person described in subsection (2), commits an offence and is liable on conviction to a fine of not more than $500 000 or imprisonment for a term of not more than 6 months, or both.

(4) A person is not guilty of an offence under subsection (3) if the person establishes that, at the time the information was provided, the person did not know that it was false or misleading and exercised reasonable care and diligence in providing the information.

Continuing offences

32   If an offence under section 30 continues for more than one day, separate fines, each not exceeding the maximum fine for the offence, may be imposed for each day the offence continues.

Liability of directors and officers

33   (1) If a corporation commits an offence under this Act, a director or officer of the corporation who authorized, permitted or acquiesced in the offence commits the offence.

(2) Subsection (1) applies whether or not the corporation is prosecuted for or convicted of the offence.

Relationship between administrative penalties and offences

34   (1) A person may be prosecuted under this Act for a contravention or failure in relation to which an administrative penalty has been imposed.

(2) In imposing a sentence for an offence under this Act, the court may consider an administrative penalty imposed in relation to the same matter.

(3) An administrative penalty may not be imposed on a person for a contravention or failure in relation to which the person has been convicted of an offence under this Act.

Other provisions relating to offences

35   (1) Section 5 of the Offence Act does not apply to this Act or the regulations.

(2) The time limit for laying an information for an offence under this Act

(a) is 3 years after the date that the facts on which the information is based arose, or

(b) if the minister completes a certificate described in subsection (3), is 18 months after the date that the facts on which the information is based first came to the knowledge of the minister.

(3) A document purporting to have been issued by the minister, certifying the date on which the minister became aware of the facts on which the information is based, is proof of the certified facts.

Division 4

Not in force

36-39   [Not in force.]

Part 5 — Appeals to Environmental Appeal Board

What decisions may be appealed, who may appeal and the appeal process

40   (1) For the purposes of this Part, "decision" means any of the following:

(a) [Repealed 2023-23-37.]

(b) a determination of non-compliance under section 25 [imposed administrative penalties in relation to other matters], of the extent of that non-compliance or of the amount of the administrative penalty, as set out in an administrative penalty notice;

(c) a prescribed decision or a decision in a prescribed class.

(2) A person who is served with

(a) an administrative penalty notice referred to in subsection (1) (b), or

(b) a document evidencing a decision referred to in subsection (1) (c)

may appeal the applicable decision to the appeal board.

(3) Subject to this Act, Division 1 of Part 8 [Appeals] of the Environmental Management Act applies in relation to appeals under this Act.

Part 6 — General

Director's power to delegate

40.1   (1) The director may delegate to any person any of the director's powers and duties under this Act, except the power to establish protocols and the power to delegate under this section.

(2) A delegation may be made subject to the terms and conditions that the director considers necessary or advisable.

(3) If the director has delegated a power or duty under subsection (1), a reference to the director in relation to that power or duty includes the delegate.

No indemnification in relation to compliance units

40.2   A person is not entitled to be indemnified for the retirement, suspension, cancellation or expiry of a compliance unit.

Notice and service under this Act

41   (1) A notice or other document that, under this Act, must be given to, delivered to or served on a person may be given, delivered or served as follows:

(a) in any case,

(i) by leaving a copy with the person,

(ii) by sending a copy by registered mail to the address on file with the director for the person or provided to the director by that person,

(iii) by faxing to a number, or by emailing to an email address, provided to the director by the person, or

(iv) in a prescribed manner, subject to any prescribed conditions;

(b) if the person is a corporation,

(i) by leaving a copy at the corporation's business address, on file with the director or provided to the director by that corporation, with a person apparently employed in the business,

(ii) by leaving a copy in a mailbox or mail slot at that business address,

(iii) by attaching a copy to a door or other conspicuous place at that business address, or

(iv) if applicable, by sending a copy by registered mail to the mailing address shown for the registered office of the company in the corporate register under the Business Corporations Act;

(c) if the person is an individual,

(i) by leaving a copy at that person's residence, at the address on file with the director or provided to the director by the individual, with an adult who apparently resides with that person,

(ii) by leaving a copy in a mailbox or mail slot for that address, or

(iii) by attaching a copy to a door or other conspicuous place at that address.

(2) A notice or other document is deemed to have been, as applicable, given to, delivered to or served on a person,

(a) if sent by registered mail, on the earlier of

(i) the 14th day after the notice or document was mailed, and

(ii) the date on which the notice or document was actually received by the person,

(b) if left or attached in a manner described in subsection (1) (b) or (c), on the earlier of

(i) the 3rd day after the notice or document is left or attached, as applicable, and

(ii) the date on which the notice or document was actually received by the person,

(c) if faxed or emailed, on the earlier of

(i) the 3rd day after the notice or document is faxed or emailed, as applicable, and

(ii) the date on which the notice or document was actually received by the person, and

(d) if given by a prescribed means of delivery, at the prescribed time.

Confidentiality

42   (1) In this section:

"protected information" means information that would reveal

(a) trade secrets of a third party, or

(b) commercial, financial, labour relations, scientific or technical information of or about a third party,

but does not include information in respect of which the third party has consented to its disclosure or information that is publicly available;

"public body" has the same meaning as in the Freedom of Information and Protection of Privacy Act;

"third party", in relation to the disclosure of information, means any person, group of persons or organization, other than

(a) the person to whom the disclosure is made or is to be made, or

(b) a public body;

"trade secret" has the same meaning as in the Freedom of Information and Protection of Privacy Act.

(2) Subject to Part 2 of the Freedom of Information and Protection of Privacy Act, a person who has access to protected information that is in the custody or under the control of the government through

(a) information that is collected under this Act respecting a reporting operation or regulated operation, whether collected from the operator of the operation or from a verification body,

(b) the exercise of powers under section 22 [inspection and seizure powers] in relation to an industrial operation, or

(c) an information-sharing agreement under section 43 that provides that the information is to be kept confidential

must not disclose the protected information to any other person.

(3) The prohibition in subsection (2) does not apply to disclosure of the following information:

(a) determinations of greenhouse gas emissions, or emissions of a particular greenhouse gas, attributable to

(i) a reporting operation or regulated operation,

(ii) one or more facilities of a reporting operation or regulated operation, and

(iii) prescribed categories of sources;

(b) the application of compliance units for the purpose of section 6 (2) [compliance obligation];

(c) information required or authorized to be in the public portion of the registry;

(d) information required or authorized to be made public under this Act or section 6.1 of the Ministry of Environment Act.

(4) The prohibition in subsection (2) does not apply to disclosure in the following circumstances:

(a) in the course of administering or enforcing this Act or a prescribed enactment;

(b) for the purpose of court proceedings;

(c) to a verification body for the purpose of verifying a verification statement in relation to an emission report or a compliance report;

(d) in accordance with an information-sharing agreement under section 43.

Information-sharing agreements

43   (1) For the purposes of this section, "information-sharing agreement" means a data-matching or other agreement to provide or exchange information for the purposes of the administration of this Act.

(2) With the prior approval of the Lieutenant Governor in Council, the minister may enter into an information-sharing agreement with

(a) the registry administrator,

(b) an entity, whether or not in British Columbia, that

(i) performs a function similar to the registry's function, or

(ii) carries out research or establishes standards in relation to greenhouse gas emissions,

(c) Canada, another province, a territory or a foreign jurisdiction, or an agent of any of them, or

(d) an organization responsible for accrediting persons qualified to conduct validations or verifications under this Act.

Agreements

44   With the prior approval of the Lieutenant Governor in Council, the minister may enter into agreements

(a) for the purposes of this Act, with Canada, another province, a territory or a foreign jurisdiction, or with an agent of any of them, respecting

(i) recognition, as compliance units, of units that are comparable to a class of compliance units and are issued by the other party,

(ii) inspection and enforcement, and

(iii) accounting for reductions of greenhouse gas emissions into, or removals of greenhouse gas from, the atmosphere, or

(b) for the purposes of the requirements of this Act or the regulations relating to validations and verifications, with any of the following:

(i) Canada, another province, a territory or a foreign jurisdiction, or an agent of any of them;

(ii) an organization responsible for accrediting persons qualified to conduct validations or verifications under this Act.

Operator responsibility

45   If the regulations describing who is considered to be an operator of an industrial operation are applicable to more than one person in relation to an industrial operation, each operator of the industrial operation is jointly and separately responsible for meeting that industrial operation's obligations under this Act.

General regulation-making powers

46   (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) The authority under another provision of this Act to make regulations does not limit subsection (1).

(3) The Lieutenant Governor in Council may make regulations as follows:

(a) prescribing information that must or may be made public under this Act, other than information referred to in paragraph (a) of the definition of "protected information" in section 42 [confidentiality];

(b) establishing criteria that must be applied by the director in making decisions under this Act;

(c) defining words or expressions used but not defined in this Act;

(d) respecting any matter for which regulations are contemplated by this Act.

(4) A regulation under this Act may do any or all of the following:

(a) delegate a matter to a person;

(b) confer a discretion on a person;

(c) make different regulations in relation to

(i) reporting operations, regulated operations, opted-in operations, new entrants and industrial operations that are not reporting operations,

(ii) different reporting operations, regulated operations, opted-in operations, new entrants and industrial operations that are not reporting operations,

(ii.1) different classes of reporting operations, regulated operations, opted-in operations, new entrants and industrial operations that are not reporting operations,

(ii.2) different facilities and classes of facilities,

(ii.3) different parts of an industrial operation,

(ii.4) different phases of a regulated operation,

(ii.5) different reporting periods and compliance periods,

(iii) different classes or types of emission offset projects,

(iv) different classes or types of compliance units,

(v) different classes of account holders,

(vi) different types of reports or statements and different classes of types of reports or statements, and

(vii) different types of accounts;

(d) establish classes or types for the purposes of paragraph (c) (ii) to (vii).

(5) A regulation under this Act may adopt by reference, in whole, in part or with any changes considered appropriate, a regulation, code, standard or rule

(a) enacted as or under a law of another jurisdiction, including a foreign jurisdiction, or

(b) set by a provincial, national or international body or any other code, standard or rule making body,

as the regulation, code, standard or rule stands at a specific date, as it stands at the time of adoption or as amended from time to time.

Regulations in relation to industrial, reporting and regulated operations

47   (1) The Lieutenant Governor in Council may make regulations as follows:

(a) establishing reporting operations for the purposes of this Act by

(i) prescribing as reporting operations

(A) classes of activities,

(B) classes of activities that meet a prescribed level of activity, or

(C) facilities where activities referred to in clause (A) or (B) occur, including facilities that are not limited to a single location,

(ii) designating as a reporting operation a particular set of activities or a particular facility, including a facility that is not limited to a single location, or

(iii) prescribing reporting operations by reference to a prescribed level of

(A) attributable greenhouse gas emissions from one or more facilities, or

(B) attributable greenhouse gas emissions from prescribed categories of sources;

(a.1) requiring the operator of a reporting operation, for the purposes of providing information required under section 3 (7) (c) [emission reports] or 7 (7) (c) [compliance reports], to undertake or allow to be undertaken investigations, tests, surveys or other work in relation to the operations and emissions of the reporting operation;

(b) respecting the determination of emission limits for compliance periods for regulated operations;

(b.1) designating classes of reporting operations as regulated operations;

(b.2) amending the Schedule

(i) to amend a dollar amount set out in column 1,

(ii) to amend a compliance period set out in column 2, and

(iii) to specify additional dollar amounts and compliance periods, in columns 1 and 2, respectively;

(b.3) respecting new entrants, including, without limitation,

(i) respecting applications to the director for designation as a new entrant, including respecting the time by which and the manner in which an application must be made and the information that an applicant must provide to the director,

(ii) establishing the criteria that an applicant must meet in order to be designated as a new entrant,

(iii) prescribing the matters that the director must take into account in considering an application, and

(iv) respecting the start and end dates, and duration, of new entrant periods;

(c) respecting industrial operations referred to in section 2 (1) [non-reporting operations], including, without limitation, requiring operators of those industrial operations to comply with section 2 (1) [non-reporting operations];

(d) respecting who is to be considered the operator of an industrial operation, a regulated operation or a reporting operation;

(e) establishing the greenhouse gas emissions that, for the purposes of this Act, are attributable to an industrial operation, a reporting operation or a regulated operation, or a part of an industrial operation, reporting operation or regulated operation, which emissions may include, but are not limited to,

(i) greenhouse gas emissions whether they occur inside or outside British Columbia,

(ii) in relation to electricity, greenhouse gas emissions associated with the generation and transmission of the electricity until the point at which the electricity is consumed by an industrial operation,

(iii) greenhouse gas emissions associated with activities that occur at, or with facilities that are part of, a regulated operation but are ancillary to the primary activity or purpose of the industrial operation,

(iv) greenhouse gas emissions associated with the generation and transmission of energy products that are purchased and used by the industrial operation, and

(v) greenhouse gas emissions that are captured for the purpose of sequestering them from the atmosphere and are not emitted to the atmosphere;

(f) respecting the methodology by which attributable greenhouse gas emissions are to be determined on a carbon dioxide equivalent basis;

(f.1) authorizing the director, in specified circumstances and in the specified manner, to prorate the following:

(i) the amount required to meet the compliance obligation of a regulated operation for a compliance period;

(ii) the amount of earned credits issued under section 12 [earned credits];

(g) respecting industrial operations, whether or not reporting or regulated, including, without limitation,

(i) requiring operators of industrial operations to register with or submit information to the director,

(ii) providing for the timing, form, content and manner of registration or submission of information,

(ii.1) requiring industrial operations to report to the director in relation to processes of the industrial operation and the energy, physical and service inputs, and energy, physical, service and product outputs, of the operation, and

(iii) requiring the preparation, submission and approval of plans for monitoring and quantifying an industrial operation's attributable greenhouse gas emissions;

(h) for the purpose of defining classes of regulated operations, including as part of a regulated operation activities that occur at or facilities that are part of the regulated operation but are ancillary to the primary activity or purpose of the industrial operation;

(i) authorizing the director to determine whether a facility is a part of a regulated operation;

(j) respecting opted-in operations, including, without limitation,

(i) respecting applications to the director for designation of an industrial operation as an opted-in operation, including respecting the time by which and the manner in which an application must be made and the information that an applicant must provide to the director,

(ii) establishing the criteria that an applicant must meet in order to be designated as a reporting operation, or as a reporting operation and a regulated operation,

(iii) prescribing the matters that the director must take into account in considering an application, and

(iv) exempting an opted-in operation from a reporting or verification requirement under this Act and establishing reporting and verification requirements for an opted-in operation that has been exempted.

(2) A regulation under subsection (1) (b) respecting the determination of the emission limit for a compliance period for a regulated operation may be made applicable whether the regulation is made before or after the beginning, or the end, of the compliance period.

Regulations in relation to compliance units

48   (1) The Lieutenant Governor in Council may make regulations respecting emission offset projects and offset units, including, without limitation, the following regulations:

(a) respecting the criteria

(i) for qualifying as the proponent of an emission offset project, including, without limitation, criteria in relation to

(A) ownership of the proponent, and

(B) financial matters, and

(ii) for qualifying as an emission offset project, including, without limitation, criteria in relation to

(A) location of projects,

(B) timing of projects, and

(C) public consultation;

(b) respecting the form and content of a plan for an emission offset project;

(b.1) providing for the removal of a document referred to in section 9 (2) [emission offset projects] from the website on which it is posted;

(c) respecting periods in relation to emission offset projects, including, without limitation,

(i) requiring that a plan for an emission offset project and validation statement in respect of the plan be provided to the director for acceptance of the emission offset project within a specified period after the completion of the validation statement,

(ii) limiting the period in which reductions and removals of greenhouse gas must be achieved for a class of emission offset projects,

(iii) limiting the period within which the application for the issue of offset units in relation to a verified project report must be made and the consequence of failing to apply within that period,

(iv) limiting the period, after the completion of an emission offset project, by which the final project report and verification of that final project report must be provided to the director,

(v) establishing the period during which a class of emission offset projects must be monitored, managed or maintained after the completion of the project, and

(vi) authorizing the director to extend or limit a period in relation to emission offset projects either generally or in specified circumstances;

(d) establishing standards for planning, managing and conducting emission offset projects and for monitoring, measuring, quantifying and documenting in relation to the projects, including, without limitation,

(i) for any aspect of the project, and

(ii) for certainty, for determining the baseline greenhouse gas emission level to be used to measure the reductions and removals of greenhouse gas achieved by the emission offset project;

(e) establishing the processes

(i) for submitting to the director plans for emission offset projects, validations of such plans, project reports and verifications of project reports,

(ii) by which the director accepts an emission offset project,

(iii) for applying for the issue of offset units, and

(iv) by which offset units are issued;

(e.1) respecting protocols;

(f) respecting the conditions under which offset units may be issued in relation to classes of emission offset projects, including, without limitation, regulations

(i) requiring a project proponent to give security, for the performance of the obligations imposed under this Act on the project proponent in relation to the project, to the director in the amount, in the form and subject to the conditions specified in the regulation, or authorizing the director to require the owner or operator of an emission offset project to give security for that purpose to the director in the amount, in the form and subject to the conditions the director may specify,

(ii) respecting

(A) the circumstances in which security described in subparagraph (i) may be realized, and

(B) the payment of interest on security,

(iii) requiring a project proponent to provide evidence that a covenant under section 219 of the Land Title Act, a statutory right of way under section 218 of that Act or another charge under that Act has been registered in the land title office in favour of the government and specifying the terms and conditions of the charge,

(iv) authorizing the director to impose a requirement that a project proponent provide evidence that a covenant under section 219 of the Land Title Act, a statutory right of way under section 218 of that Act or another charge under that Act has been registered in the land title office in favour of the government and specifying the terms and conditions of the charge,

(v) respecting contingency accounts, including, without limitation,

(A) prescribing the classes of emission offset projects for which a portion of offset units must be issued into a contingency account,

(A.1) respecting the portion of offset units that must be issued into a contingency account for a project that is in a class prescribed under clause (A), and

(B) respecting the retirement of compliance units from a contingency account, and

(vi) respecting the determination of the risk of reversal of greenhouse gas reductions or removals in relation to emission offset projects;

(g) requiring a project proponent to provide information in addition to the information in the plan for an emission offset project, validation statement or verification statement;

(h) imposing requirements on project proponents in respect of monitoring, maintaining and reporting in relation to an emission offset project, whether before or after completion of the emission offset project;

(i) requiring a project proponent who has applied for and received offset units in relation to an emission offset project to complete implementation of the project;

(j) requiring a project proponent to ensure that compliance units are available in a holding account of the project proponent for the purposes of

(i) transfer of the compliance units from the holding account to a contingency account to compensate for the retirement of compliance units from the contingency account in connection with the emission offset project, or

(ii) retirement of the compliance units from the holding account to compensate for a reversal of greenhouse gas reductions or removals achieved by the emission offset project;

(k) authorizing the director to revoke the acceptance of an emission offset project and respecting the circumstances in which an acceptance may be revoked.

(2) [Repealed 2023-23-41.]

(3) If the minister has entered into an agreement under section 44 [agreements], with Canada, another province, a territory or a foreign jurisdiction, that provides for the mutual recognition of the equivalence of units from each jurisdiction, the Lieutenant Governor in Council may make regulations

(a) recognizing a unit of Canada, another province, a territory or a foreign jurisdiction, including by deeming it to be the equivalent of an offset unit, for the purpose of meeting a compliance obligation of a regulated operation,

(b) providing that an offset unit transferred by an operator or a project proponent to a person who does not hold an account in the registry is cancelled, and

(c) providing for the crediting to accounts of units referred to in paragraph (a).

(4) The Lieutenant Governor in Council may make regulations respecting compliance units, including, without limitation, the following regulations:

(a) respecting the issuance, transfer, retirement, suspension, cancellation and expiry of compliance units and the reissuance of compliance units retired or cancelled in error;

(b) respecting the use of compliance units, including, without limitation,

(i) establishing restrictions on the use of compliance units to meet an obligation under the Act or regulations or to satisfy an administrative penalty, and

(ii) authorizing the director to establish restrictions on the use of compliance units to meet an obligation under the Act or regulations or to satisfy an administrative penalty;

(c) authorizing the director to require a person to transfer compliance units to the director, or make a monetary payment to the government, if the director determines that compliance units were issued in error.

(5) [Repealed 2023-23-41.]

Regulations in relation to validation and verification

49   The Lieutenant Governor in Council may make regulations respecting validation bodies, validation statements, verification bodies and verification statements, including, without limitation, regulations

(a) establishing requirements and standards respecting qualifications, accreditation, conflict of interest and other matters relating to persons who perform validations or verifications under this Act,

(b) respecting the conduct of validations of emission offset projects and the form and content of validation statements,

(c) authorizing the director to refuse to accept validation statements from a validation body and verification statements from a verification body

(i) while the validation body or verification body is under investigation by the organization that accredited it, or

(ii) if the director believes on reasonable grounds that the validations performed by the validation body or the verifications performed by the verification body do not comply with the regulations or with the standards of the organization that accredited the validation body or verification body,

(d) respecting the conduct of verifications of emission reports, compliance reports, emission offset project reports and information provided to the director and the form and content of verification statements, and

(e) prescribing circumstances in which the operator of a reporting operation or a regulated operation must have a verification statement referred to in section 3 (8) [emission reports] or 7 (8) [compliance reports] prepared and submitted to the director.

Regulations in relation to registry

50   The Lieutenant Governor in Council may make regulations as follows:

(a) respecting the establishment of a registry for the purposes of section 13 (1) [registry], including by establishing a registry to be operated by

(i) the minister, or

(ii) another person, including, without limitation, a person who operates a similar registry whether inside or outside Canada;

(b) respecting the registry, including, without limitation,

(i) respecting accounts that may or must be included in the registry in addition to the accounts required under section 13 (2) [registry], including, without limitation, the circumstances in which a regulated operation, an operator of a regulated operation, an accepted emission offset project, a project proponent of an accepted emission offset project or other person may or must hold a type of account,

(i.1) authorizing the director to authorize a person, other than the operator of a regulated operation or a project proponent, to hold a holding account to which compliance units may be credited, and establishing restrictions on the person's participation in the registry,

(i.2) respecting the information that must be provided, and the requirements that must be met, by a person referred to in subparagraph (i.1) in order to hold a holding account,

(i.3) respecting transactions through the registry, including, without limitation, respecting

(A) the tracking of transactions, and

(B) the assignment of identifiers to compliance units,

(i.4) respecting the tracking of monetary payments made by operators of regulated operations,

(i.5) respecting the closing of registry accounts,

(ii) respecting the fees and other charges that may be established and collected by the registry administrator in relation to registry services if the registry is operated by the minister,

(ii.1) if the registry is operated outside of government, authorizing the registry administrator, in accordance with the administrative agreement, to establish and collect fees and other charges in relation to registry services,

(iii) respecting the terms and conditions on which persons may hold accounts and use the registry, and

(iv) conferring powers on the director to suspend or cancel an account holder's participation in the registry other than participation for the purpose of transferring compliance units into a compliance account;

(c) requiring account holders to report information relating to compliance units and their activities in the registry, including, without limitation, information respecting the price associated with, and purpose of, registry transactions;

(c.1) respecting to whom reports under paragraph (c) are to be submitted and the timing, form, content and manner of submission of the reports;

(d) prescribing information that the director must ensure is published in the registry and the portions of the registry that may be made, or must not be made, available to the public;

(d.1) respecting the removal of information from the registry;

(e) providing that the registry is linked to or forms part of another registry that is used for registering, tracking and retiring units that are comparable to offset units or earned credits;

(f) if the registry administrator is changed, or if the registry is linked to or forms part of another registry, making any provisions the Lieutenant Governor in Council considers necessary or advisable to effect or facilitate the transition, including, without limitation, deeming transfers and retirements of units through the other registry to be transfers and retirements of compliance units under this Act.

Regulations in relation to administrative penalties

51   The Lieutenant Governor in Council may make regulations for the purposes of Division 2 [Administrative Penalties] of Part 4 [Compliance and Enforcement] as follows:

(a) prescribing the administrative penalties, schedules of administrative penalties and manner of calculating administrative penalties to which an operator of a regulated operation is subject under section 23 [automatic administrative penalties: failure to meet compliance obligation], which may include either or both

(i) a monetary amount to be paid to the government, and

(ii) an obligation to make compliance units available in a compliance account;

(a.1) in relation to administrative penalties under section 23, providing for different administrative penalties in different circumstances;

(b) in relation to administrative penalties under section 25 [imposed administrative penalties in relation to other matters],

(i) prescribing a limitation period for imposing an administrative penalty and evidentiary matters in relation to that period,

(ii) prescribing procedures to be applied by the director in making a determination of non-compliance, and

(iii) requiring the director to serve a person with a notice of intent to impose an administrative penalty and provide the person with an opportunity to be heard before sending an administrative penalty notice to the person;

(c) in relation to administrative penalties under section 25,

(i) prescribing a maximum or minimum amount of monetary administrative penalties that may be imposed generally, or for specified contraventions, or the manner of calculating those amounts,

(ii) prescribing the maximum or minimum number of compliance units that, as an administrative penalty for specified contraventions, may be required to be made available in a compliance account, or the manner of calculating those numbers,

(iii) prescribing provisions of this Act and the regulations in relation to which an administrative penalty may be imposed,

(iv) authorizing administrative penalties to be imposed on a daily basis for continuing contraventions or failures,

(v) prescribing matters that must be considered by the director in imposing the penalty in a particular case, and

(vi) prohibiting the director from serving an administrative penalty notice on a person who has demonstrated to the satisfaction of the director that the person exercised due diligence to prevent the specified contravention or failure;

(d) establishing the required content of administrative penalty notices;

(e) establishing procedures for providing a person on whom a notice of intent to impose an administrative penalty has been served with an opportunity to be heard, which may include opportunities that do not involve an oral hearing;

(f) respecting the time limit, manner and process for satisfying an administrative penalty;

(g) prescribing the consequences of failing to satisfy an administrative penalty, which may include, but are not limited to, imposing additional administrative penalties under section 25;

(g.1) providing for refunds or compliance units to be issued in relation to an administrative penalty under section 23 that has been satisfied and respecting the circumstances in which a refund or compliance unit is to be issued;

(h) providing for the publication of information respecting the imposition of an administrative penalty.

Regulations in relation to appeals

52   (1) The Lieutenant Governor in Council may make regulations respecting appeals under Part 5 [Appeals to Environmental Appeal Board], including, without limitation, prescribing decisions or classes of decisions as being appealable under that Part.

(2) Regulations under subsection (1) may provide that specified provisions of the Environmental Management Act in relation to appeals apply in relation to appeals under this Act with the changes the Lieutenant Governor in Council considers necessary or advisable.

Regulations in relation to other matters

53   (1) The Lieutenant Governor in Council may make regulations as follows:

(a) respecting reports under this Act, including, without limitation, prescribing requirements respecting the timing, form, content, supporting evidence, validation by validation bodies, verification by verification bodies, certification by senior officers or directors of industrial operations or project proponents and manner of submission of the reports;

(b) establishing requirements and standards respecting the quality assurance of the information provided in the reports under this Act and the data that support the reports, including, without limitation, requirements and standards respecting

(i) monitoring methodologies and equipment,

(ii) sampling methodologies and equipment,

(iii) analytical methodologies and equipment, and

(iv) recording information and records management

that must be used for the purposes of reports under this Act;

(c) establishing requirements respecting the creation and retention of records supporting reports and information required to be provided to the director under this Act;

(c.1) authorizing the minister to require any person to provide to the minister the information specified by the minister for the purposes of conducting research, creating greenhouse gas emission inventories and developing policies and programs for the reduction of greenhouse gases, including, without limitation, information respecting

(i) sources of greenhouse gas emissions,

(ii) equipment that may be a source of greenhouse gas emissions, and

(iii) carbon capture, utilization, sequestration and storage;

(d) establishing fees and charges that are to be paid in respect of any matter for which the government provides a service or performs a duty under this Act;

(e) prescribing for the contravention of a regulation a fine not exceeding $200 000;

(f) [Not in force.]

(g) respecting claims of confidentiality in relation to information provided to the director in reports.

(2) Without limiting subsection (1) (a), regulations under that subsection may require that reports, verification statements and validation statements under this Act are to be submitted to

(a) the registry administrator, or

(b) a person or entity referred to in section 43 (2) [information-sharing agreements] or 44 [agreements].

Part 7 — Transitional Provision, Repeal and Consequential Amendments

Transitional Provision

Transition — Climate Change Accountability Act

54   (1) Despite the repeal of section 12 (2) (g) (ii) of the Climate Change Accountability Act, if the proponent of a project that is authorized under that section to be approved, the plan for which has been validated in accordance with the regulations under that Act, has, on or before the date this section comes into force,

(a) agreed in writing to sell to the government emission offsets generated by the project, or

(b) delivered verified emission offsets to the government for the 2012 calendar year or a later calendar year,

the director, on request of that proponent, must accept the project under section 9 (1) of this Act, for the applicable validation period prescribed under section 12 (2) (g) (ii) of the Climate Change Accountability Act, as if it were an emission offset project acceptable under section 9 (1) of this Act.

(2) The proponent of a project described in subsection (1) must make the request under that subsection within the prescribed period.

(3) This Act and the regulations under this Act apply to a project accepted under subsection (1) and to the plan for the project as if the project were an accepted emission offset project.

(4) The director may issue, by crediting to the government's holding account, an offset unit for a reduction in greenhouse gas emissions or atmospheric greenhouse gas concentrations that would have been recognized as an emission offset under the Climate Change Accountability Act had title to the reduction been transferred to the government before the date this section comes into force, if

(a) title to the reduction is transferred to the government, and

(b) the reduction is not registered in any other registry that is used for registering, tracking and retiring units that are comparable to offset units.

(5) The director may issue, by crediting to the government's holding account, an offset unit for a reduction in greenhouse gas emissions or atmospheric greenhouse gas concentrations that would have been recognized as an emission offset under the Climate Change Accountability Act immediately before January 1, 2016, if

(a) title to the reduction was transferred to the government on or before December 31, 2015, and

(b) the emission offset has not been applied to meet the obligation under section 5 of that Act of a public sector organization.

Repeal

Section(s) Affected Act
55 Greenhouse Gas Reduction (Cap and Trade) Act

Consequential Amendments

Section(s) Affected Act
56 Carbon Tax Act
57 Greenhouse Gas Reduction (Emissions Standards) Statutes Amendment Act, 2008
58-62 Greenhouse Gas Reduction Targets Act
63 Hydro and Power Authority Act
64 Miscellaneous Statutes Amendment Act (No. 3), 2010

Commencement

65   This Act comes into force by regulation of the Lieutenant Governor in Council.

Schedule

Compliance Charge Rates

ItemColumn 1
Compliance Charge Rate
(Dollars per tonne of excess greenhouse gas
emissions, on a carbon dioxide equivalent basis)
Column 2
Compliance Period
1802024 calendar year
2952025 calendar year
31102026 calendar year
41252027 calendar year
51402028 calendar year
61552029 calendar year
71702030 calendar year