Proposal for the Output-Based Pricing System Regulations: chapter 4

In certain circumstances, a facility could cease to be subject to Part 2 of the Act—and therefore the regulations. To address these circumstances, it is proposed that the regulations set out rules respecting when a facility will cease to be a covered facility. As per the Act, the Minister will cancel the registration and covered facility certificate of a facility that ceases to be a covered facility.

Circumstances

6. A covered facility will cease to be a covered facility on the date any one of the following events occurs:

1. the province, territory or area in which the facility is located is deleted from Part 2 of Schedule 1 of the Act;
2. the facility ceases to carry out all covered or eligible activities for a period of more than one full compliance period and a person responsible for the facility notifies the Minister that the facility ceases to be a covered facility;
3. the facility permanently closes; or
4. the Minister advises a person responsible for a covered facility that the person has submitted five consecutive facility reports that include a value for production of zero for all covered industrial activities and eligible activities at the facility, calculated in accordance with subsection 14(4).

Notification of ceasing activity

7. For the purpose of paragraphs 6(b) and (c), a person responsible for the facility must notify the Minister no later than 30 days prior to the effective date of the facility ceasing to be a covered facility or of the permanent closure—or if that is not possible, as soon as practical.