Emission reports

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

(a) the greenhouse gas emissions attributable to the operation for the reporting period;

(b) the prescribed information or matters.

(2) If required by the regulations, the operator of a reporting operation must ensure that a verification statement in relation to the emission report is prepared, and submitted to the director, in accordance with the regulations.

(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) If required by the regulations, the operator of a reporting operation must ensure that a verification statement in relation to a supplementary report is prepared, and submitted to the director, in accordance with the regulations, and, in any other case, the director may require that the operator have a verification statement in relation to the supplementary report prepared in accordance with the regulations and submitted to the director by the date specified by the director.

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

(6) A supplementary 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) The director may

(a) require that an emission report be audited at the expense of the operator in accordance with the directions of the director, or conduct or authorize a person to conduct the audit at the expense of the operator, and

(b) require an operator to provide additional information in support of an emission report.

Capture and storage of emissions

4   Greenhouse gas emissions that

(a) would be attributable to a regulated operation, but

(b) are captured and stored in accordance with the regulations,

are deemed not to be attributable for the purpose of the compliance obligation of the regulated operation.

Regulated operations' emission limits

5   The emission limit for a regulated operation for each compliance period set out in column 3 of the schedule is the limit of greenhouse gas emissions, expressed in carbon dioxide equivalent emissions,

(a) set out, for the compliance period, in column 2 of the schedule opposite the applicable class of regulated operations set out in column 1 of the schedule, or

(b) calculated, for the compliance period, as described in column 2 of the schedule opposite the applicable class of regulated operations set out in column 1 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 a report respecting the regulated operation's compliance with the regulated operation's compliance obligation is submitted to the director, which report must include all the following:

(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) if applicable, the amount of greenhouse gas emissions that was captured from the operation, and stored, in the compliance period;

(c) the applicable emission limit or, if the emission limit for the regulated operation is determined using a formula set out in the schedule, 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 the operator's compliance account 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 its compliance report 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) If required by the regulations, a regulated operator must ensure that a verification statement in relation to a supplementary report is prepared, and submitted to the director, in accordance with the regulations, and, in any other case, the director may require that the operator have a verification statement in relation to the supplementary report prepared in accordance with the regulations and submitted to the director by the date specified by the director.

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

(6) A supplementary 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) The director may

(a) require that a compliance report be audited at the expense of the operator in accordance with the directions of the director, or conduct or authorize a person to conduct the audit at the expense of the operator, and

(b) require an operator to provide additional information in support of a compliance report.

Funded units

11   For each payment the operator of a regulated operation makes to the minister in the prescribed amount, the director may issue, by crediting to a holding account of the operator, one unit that is equivalent, for the purposes of a compliance obligation, to a credit of one tonne of carbon dioxide equivalent emissions.

Funded units

11   For each payment made to the government in the prescribed amount by the operator of a regulated operation, or by a person who holds a holding account, the director may issue, by crediting to an account of the operator or person, as applicable, one compliance unit that is deemed to be the equivalent of an offset unit.

Earned credits

12   (1) If, on receipt of a compliance report and verification statement, 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, subject to subsection (2), the director may issue, by crediting to the 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) If greenhouse gas emissions were captured and stored in order to achieve the lower emissions result described in subsection (1), the director, in the amount the director considers appropriate, may reduce the number of earned credits issued under subsection (1) to account for the risk that stored greenhouse gas emissions are released into the atmosphere over a 100-year time horizon.

Registry

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

(2) The director must ensure that

(a) offset units, funded units and earned credits issued by the director are credited to accounts,

(b) transactions in relation to compliance units are tracked through the registry, and

(c) prescribed information is published through the registry.

(3) The operator of a regulated operation that has a compliance obligation that may be met as described in section 6 (2) [compliance obligation] may hold, in accordance with the regulations,

(a) an account to which compliance units may be credited to the operator, and

(b) an account in the name of each regulated operation of that operator into which the operator may transfer compliance units for the purpose of meeting the operator's compliance obligation.

(4) The government must hold the following accounts:

(a) an account to which offset units may be credited for the purpose of meeting the obligations under section 6 (1) (c) of the Climate Change Accountability Act;

(b) an account into which compliance units may be retired

(i) from compliance accounts of regulated operations,

(ii) from the account referred to in paragraph (a), and

(iii) from the account referred to in paragraph (c);

(c) an account to which the director may credit the prescribed portion of offset units generated by prescribed classes of emission offset projects.

(5) The project proponent of an accepted emission offset project must hold an account to which offset units earned by the accepted emission offset project may be credited.

(6) On application in accordance with the regulations, the director may 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 to the person.

Registry administrator

14   (1) The registry administrator is responsible for administering the registry in accordance with this Act, the regulations, the directions of the director and, if required, the administrative agreement.

(2) The registry administrator must assign a unique identifier to

(a) each offset unit, funded unit and earned credit the director issues, and

(b) each recognized unit that is credited to an account,

by which the unit may be tracked in the registry.

Registry operated by minister

15   If the Lieutenant Governor in Council establishes a registry under section 13 that is to be operated by the minister, the minister may appoint an employee under the Public Service Act as the registry administrator to exercise the powers and perform the duties of the registry administrator under this Act.

Registry operated outside government

16   (1) If the Lieutenant Governor in Council establishes a registry under section 13 that is to be operated outside of government, the minister may appoint a person as the registry administrator subject to an administrative agreement being entered into under subsection (2) of this section.

(2) The minister may enter into an administrative agreement appointing a person as the registry administrator under which agreement the person is to

(a) operate the registry for the purposes of this Act, and

(b) exercise the powers and perform the duties of the registry administrator under this Act.

(3) An administrative agreement referred to in subsection (2) must include provisions that specify all the following:

(a) the acceptance by the registry administrator of the responsibility to provide the services required to be provided by the registry under this Act as set out in the agreement;

(b) the terms for financial arrangements between the registry administrator and the government, including the collection and payment of fees due to the registry administrator or the government and any other financial matters;

(c) the terms and conditions on which the registry administrator will provide account services to regulated operators, the government and the project proponents of accepted emission offset projects;

(d) the requirements for records management by the registry administrator;

(e) matters in respect of which the registry administrator is required to report to the director;

(f) a requirement that the registry administrator ensure that there is adequate insurance;

(g) indemnification between the registry administrator and the government;

(h) the obligations of the parties if the agreement is terminated;

(i) the time period of the agreement or the procedure for review of the agreement by the registry administrator and the government;

(j) procedures for the settlement of disputes between the parties.

(4) The registry administrator must comply with the terms of the administrative agreement, and may not administer the registry under this Act except in accordance with that agreement.

(5) Information obtained by the registry administrator in the course of administering the registry may be used by the registry administrator only for the purposes of administering the registry for British Columbia.

Administrative agreement does not make registry administrator an agent of the government

17   The registry administrator appointed under an administrative agreement is not an agent of the government for purposes of the administration of the registry.

Power of registry administrator to set fees

18   A registry administrator referred to in section 16 (2) may set, in accordance with the administrative agreement, the fees and other charges that must be paid by a person having an account or using the registry.

Compliance units issued into registry

19   If the director issues an offset unit, a funded unit or an earned credit, the registry administrator must credit the offset unit, funded unit or earned credit to the account specified by the director.

Compliance unit transactions

20   (1) The holder of a holding account may transfer, in accordance with the regulations, compliance units from the holding account

(a) to another holding account,

(b) to a compliance account, or

(c) if authorized by the regulations, to another registry.

(2) Compliance units in a compliance account may not be transferred out of the account except by the director.

(3) The director may retire compliance units

(a) from the compliance account of a regulated operation,

(b) from the government's holding account,

(b.1) from a person's holding account on the direction of the person, if the person is not a regulated operation, and

(c) from the contingency account if there is a reversal of greenhouse gas reductions or removals achieved by an emission offset project.

(4) Only the director may retire compliance units.

(5) Under subsection (3), the director may retire,

(a) from the compliance account of a regulated operation, the number of compliance units required

(i) for the operation to meet its compliance obligation in relation to the regulated operation for a compliance period, or

(ii) for the operator of the regulated operation to satisfy an administrative penalty that is imposed in relation to the operation and is an obligation to make compliance units available for retirement,

(b) from the government's holding account, the number of offset units required for public sector organizations, as defined in the Climate Change Accountability Act, to meet their obligation under section 5 (1) of that Act,

(b.1) from the holding account of a person described in subsection (3) (b.1), the number and type of compliance units the person directs the director to retire, and

(c) from the contingency account, the number of offset units required to compensate for a reversal of greenhouse gas reductions or removals achieved by an emission offset project.

(6) The retirement of compliance units from an operator's compliance account may occur

(a) not earlier than one year after the date the compliance report and verification statement in respect of which the compliance units are to be retired are due, and

(b) if a supplementary report is received in relation to the same regulated operation and the same compliance period after the expiry of the year referred to in paragraph (a), upon receipt of the verification statement relating to the supplementary report.

(7) When the director has retired from the compliance account of a regulated operation the number of compliance units required to meet the operator's compliance obligation for a compliance period, the director must transfer to a holding account of that operator any compliance units that were deposited into the compliance account for the relevant compliance period and were not required to meet the operator's compliance obligation for that compliance period.

(8) Compliance units must not be transferred from the retirement account except that the director may transfer compliance units from the retirement account only

(a) in the case of director, registry administrator or electronic system error, and

(b) into the account from which they were transferred in error.

Automatic administrative penalties: failure to meet compliance obligation

23   (1) If a report under section 7 (1) or (3) [compliance reports], or the verification statement submitted in respect of the report, indicates that the operator of the regulated operation has failed to meet the operator's compliance obligation, the operator is subject to the administrative penalty established by the regulations

(a) in the case of a report under section 7 (1), on the applicable date under section 6 (2) [compliance obligation], and

(b) in the case of a report under section 7 (3), on the date the supplementary report and verification statement are due.

(2) In the case of an administrative penalty that is a monetary amount, the amount must be paid to the government

(a) in the case of a report under section 7 (1), on the applicable date under section 6 (2), and

(b) in the case of a report under section 7 (3), on the date the supplementary report and verification statement are due.

Imposed administrative penalties: inaccurate report or failure to report

24   (1) The director must take action under this section, in accordance with the regulations,

(a) if the director is satisfied on a balance of probabilities that

(i) the greenhouse gas emissions attributable to a regulated operation for a compliance period differed from those reported under section 7 (1) or (3) [compliance reports], whether or not those reported emissions are verified by the verification statement that accompanies the report, and

(ii) as a consequence, the operator has failed to meet the operator's compliance obligation by the applicable date under section 6 (2) [compliance obligation], or

(b) if

(i) the operator of a regulated operation fails to submit a compliance report in accordance with section 7 (1) or (3) or submits a report that is not accompanied by a verification statement, and

(ii) the director is satisfied on a balance of probabilities that the operator failed to meet the operator's compliance obligation by the applicable date under section 6 (2),

unless the director is satisfied on a balance of probabilities that the operator has a reasonable excuse for the inaccuracy or failure.

(2) In the circumstances referred to in subsection (1) (a) or (b), the director, in accordance with the regulations, must serve the operator with an administrative penalty notice

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

(b) requiring the person to satisfy the administrative penalty established by the regulations and specified in the notice.

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] in order to meet the compliance obligation in relation to which the administrative penalty was imposed.

Regulations in relation to industrial, reporting and regulated operations

47   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;

(b) amending the schedule

(i) to designate as regulated operations a class of reporting operations,

(ii) to establish the emission limit or a formula to determine the emission limit for each regulated operation, and

(iii) to specify the compliance period or periods to which an emission limit applies;

(c) respecting industrial operations referred to in section 2 (1) [non-reporting operations], including, without limitation, requiring classes 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, 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, and

(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;

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

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

(i) requiring 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, 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.

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;

(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;

(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 the contingency account, including, without limitation,

(A) prescribing the classes of emission offset projects for which a portion of offset units must be issued into the 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 the 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) The Lieutenant Governor in Council may make regulations respecting funded units, including, without limitation, prescribing the amount that must be paid to the minister to receive one funded unit, which amount may be different for different compliance periods.

(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) The Lieutenant Governor in Council may make regulations

(a) authorizing the minister, subject to there being an appropriation under the Financial Administration Act, to enter into an agreement with a technology fund that

(i) accepts and evaluates proposals for funding to assist in the commercialization of new clean technologies, and

(ii) provides funding for proposals described in subparagraph (i),

(b) specifying the matters the parties must reach agreement on and include in the agreement,

(c) prescribing required terms and conditions of the agreement, and

(d) prescribing other criteria for the purpose of paragraph (f) of the definition of "technology fund" in section 1.