Proposal for the Output-Based Pricing System Regulations: chapter 5

Section 169 of the Act states that the compliance period means a period specified in the regulations. The key obligations under the OBPS, such as those respecting the submission and verification of the report for each compliance period and the provision of compensation, are all linked to a given compliance period. The regulations will set out rules respecting compliance periods, such as rules in relation to compliance periods for facilities that are located in certain provinces or territories and to, facilities that start or cease operating after the beginning of a compliance period.

General rule

8. (1) Subject to subsections (2) to (4), the compliance period is a period that begins on January 1 and ends on December 31 of each year for the purpose of section 169 of the Act.

First compliance period

(2) Unless subsections (3) or (4) apply, the first compliance period for a covered facility begins January 1, 2019 and ends on December 31, 2019.

First compliance period for Yukon and Nunavut

(3) For a covered facility that is located in Yukon and Nunavut prior to January 1, 2019, the first compliance period applicable to this facility begins on July 1, 2019 and ends on December 31, 2019.

Compliance period – facilities after January 1, 2019

(4) If a facility becomes a covered facility at a particular time after January 1, 2019, the first compliance period applicable to this facility begins on the date of registration pursuant to subsection 171(2) of the Act and ends on December 31 of that same calendar year.

Partial compliance period – ceasing to be a covered facility

9. (1) If a facility ceases to be a covered facility during a calendar year, the last compliance period applicable to that facility begins on January 1 of that calendar year and ends on the date that the facility ceases to be a covered facility.

Obligations regarding a partial compliance period

(2) A person responsible for a covered facility to which an applicable compliance period is shorter than a calendar year must comply with the obligations set out under the Act and those set out in the regulations for the period during which it was a covered facility, including any compensation due and any reports required for that compliance period.