British Columbia Order in Council — Order under Greenhouse Gas Industrial Reporting and Control, ss (O.C. 71/2024)

O.C. 71/2024

British Columbia — Orders in Council

PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. , Approved and Ordered Lieutenant Governor Executive Council Chambers, Victoria page 1 of 11 On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that the attached BC Carbon Registry Regulation is made. Minister of Environment and Climate Change Strategy Presiding Member of the Executive Council (This

part is for administrative purposes only and is not part of the Order.) Authority under which Order is made: Act and section: Greenhouse Gas Industrial Reporting and Control Act, S.B.C. 2014, c. 29, ss. 46, 48 and 50 Other: R10734819 71 February 16, 2024

page 2 of 11 BC CARBON REGISTRY REGULATION

Definitions 1

(1) In this regulation: “Act” means the Greenhouse Gas Industrial Reporting and Control Act; “designated operator” has the same meaning as in

section 1 (2) [definitions and

interpretation] of the Greenhouse Gas Emission Reporting Regulation; “general account” means a holding account other than an account referred to in

section 13 (2) (

a) to (c) [registry] of the Act; “operator” has the same meaning as in

section 1 (2) of the Greenhouse Gas Emission Reporting Regulation; “primary account representative”, in relation to an account, means the individual identified by the proposed account holder under

section 7 (1) (i) [account appli- cation] or by the account holder under

section 8 (a) [conditions applicable to account holders]; “project reduction” has the same meaning as in

section 11 (1) [definitions and

interpretation] of the Emission Offset Project Regulation; “registry” means the BC Carbon Registry continued under

section 2 (1); “secondary account representative”, in relation to an account, means an individual identified by the proposed account holder under

section 7 (1) (

j) or by the account holder under

section 8 (a).

(2) For the purposes of the definition of “holding account” in

section 1 (1) [defini- tions] of the Act, an account referred to in

section 5 or 6 [general accounts] is prescribed as a holding account. BC Carbon Registry 2

(1) The BC Carbon Registry is conti nued and is operated by the minister.

(2) The minister may establish terms and conditions on which persons may hold accounts in the registry and use the registry, including, without limitation, terms and conditions respecting the following: (

a) confidentiality of information; (

b) indemnification as between the account holder and the government; (

c) consent to the collection or disclosu re of personal information, as defined in the Freedom of Information and Protection of Privacy Act; (

d) maintenance of the security of the registry system. Regulated operation 3

(1) An operator of a regulate d operation may establish a compliance account for the regulated operation for the purposes of: (

a) meeting a compliance obligation fo r a compliance period in the manner described in

section 6 (2) (a) [compliance obligation] of the Act, or

page 3 of 11 (

b) making compliance units available under

section 6.1 (2) (d) [greenhouse gas emission correction] of the Act after a correction referred to in that section.

(2) An operator of a regulated operation ma y establish one or more holding accounts in the registry.

(3) An operator of a regulated operation who wishes to establish an account referred to in subsection (1) or (2) must apply to the registry administrator in accordance with

section 7 (1) [account application]. Project proponent 4

(1) The project proponent of an accepted emission offset project must, within 30 days after the emission offset project is accepted by the director, hold or establish a holding account referred to in

section 13 (2) (b) [registry] of the Act.

(2) A person who is required under subsec tion (1) to establish a holding account in the registry must apply to the registry administrator in accordance with

section 7 (1) [account application]. General accounts – government 5

(1) In addition to the accounts required under

section 13 (2) (c), (

e) and (f) [registry] of the Act, the government may hold general accounts in the registry.

(2) The registry administra tor must establish one or more general accounts for the government on the direction of the director. General account – other person 6 The director may authorize a person other th an a person referred to in

section 13 (2) (

a) to (

c) of the Act to establish a general account in the registry to which the director may credit compliance units if (

a) the person applies to the registry ad ministrator in accordance with

section 7 (1), and (

b) the director is satisfied that the pers on’s participation in the registry will not pose an unacceptable risk to the security of the registry. Account application 7

(1) An application for an account in the registry must be submitted in the form and manner specified by the director and must include the following: (

a) the legal name of th e proposed account holder; (

b) the type of account to be established; (

c) whether the proposed account holder is an individual, a corporation or a partnership; (

d) the trade name or operating na me of the proposed account holder; (

e) if the proposed account holder is an individual, (

i) the individual’s mailing address, and (ii) if the application relates to a business, the primary address from which the individual carries on business;

page 4 of 11 (

f) if the proposed account holder is a corporation, (

i) the legal name of the individua l submitting the application on behalf of the corporation and the indi vidual’s position in or with the corporation, (ii) the primary address from which the corporation carries on business, and (iii) except in the case of a corpor ation established or continued by an enactment, (

A) the mailing address of the co rporation’s registered or head office, and (

B) the registration number or inco rporation number assigned to the corporation by the Registrar of Companies; (

g) if the proposed account holder is a partnership, (

i) the legal name of the part ner submitting the application, (ii) the legal name of the partnership, (iii) if the partner is a corporation, the legal name of the individual submitting the application on beha lf of the corporation and the individual's position in or with the corporation, (iv) the primary address from which the partnership carries on business, (

v) the legal names of the partners authorized to carry on business on behalf of the partnership, and (vi) the registration number, if any, assigned to the partnership by the Registrar of Companies; (

h) if the proposed account holder is to hold the account for the benefit of another person or entity, the legal name of the other person or entity and the information under paragraph (e), (

f) or (g), as applicable, in relation to the other person or entity; (

i) the legal name of the individual w ho, as the primary account representative of the proposed account holder, is to have electronic access to and manage the proposed account holder’s account s and conduct transactions in the registry on behalf of the proposed account holder; (

j) the legal name of any individual who, as a secondary account representative of the proposed account holder, is to exercise the powers of the primary account representative on behalf of the proposed account holder; (

k) proof satisfactory to the director of (

i) if the proposed account holder is an individual, the identity of the proposed account holder, (ii) if the proposed account holder is a corporation, (

A) the identity of the individual refe rred to in paragraph (f) (i), and (

B) incorporation or registration in British Columbia, except in the case of a corporation established or continued by an enactment, (iii) if the proposed account holder is a partnership,

page 5 of 11 (

A) the identity of the partner referr ed to in paragraph (g) (i), and if the partner is a corporation, the identity of the individual referred to in paragraph (g) (ii), and (

B) registration in British Columbia, (iv) the identities of the primar y account representative and each secondary account representative, if any, (

v) the authority of the primary account representative to have electronic access to and manage the propos ed account holder’s accounts and conduct transactions in the registry on behalf of the proposed account holder, (vi) the authority of any secondary acc ount representatives to exercise the powers of the primary account re presentative on behalf of the proposed account holder, and (vii) the proposed account holder’s agreement to the terms and conditions established under sections 2 (2) [BC Carbon Registry] and 8; (

l) any other information approved by the director and specified by the registry administrator.

(2) A person applying under subsection (1) on behalf of the designated operator of a regulated operation must provide the following information: (

a) the legal name and contact info rmation of the designated operator; (

b) the information required under subsecti on (1) (

c) to (h), as applicable, in relation to each other operator of th e regulated operation, and for that purpose a reference in subsection (1 ) (

c) to (

h) to the proposed account holder is to be read as a reference to the other operator.

(3) In addition to the information require d under subsection (1), a person other than the operator of a regulated operation who applies under this

section must provide proof satisfactory to the director that (

a) the proposed account holder holds an account in good standing in a financial institution that provides the services of a savings institution in Canada or the United States of America, and (

b) in the case of an individual appl ying on behalf of another person, the individual is authorized by the other person to apply on the other person’s behalf. Conditions applicable to account holders 8 The following are conditions of holding an account and using the registry: (

a) the account holder must advise the re gistry administrator within 30 days after any change is made to the information provided under

section 7 (1) (

a) to (

j) or (

l) or (2) or the matters for which proof was provided under

section 7 (1) (

k) or (3); (

b) the primary account representa tive for the account holder must be authorized by the account holder to, by electronic means, conduct transac- tions in the registry and manage the accounts on behalf of the account holder until the registry administrato r receives written notice from the

page 6 of 11 account holder cancelling the authority of the primary account represen- tative; (

c) a secondary account representative for the account holder, if any, must be authorized by the account holder to, by electronic means, conduct transac- tions in the registry and manage the accounts on behalf of the account holder until the registry administrato r receives written notice from the account holder or the primary account representative of the account holder cancelling the authority of the secondary account representative; (

d) the account holder agrees that neit her the registry administrator nor the government is liable for any loss or damage caused to the account holder because of anything done or not done by a primary account representative, a secondary account representative or a person purporting to act as a primary account representative or secondary account representative, acting or purporting to act under the authority referred to in paragraph (

b) or (c), as applicable, except if unauthorized access to the registry results solely from a breach of a registry or government security system; (

e) the account holder agrees that neit her the registry administrator nor the government is liable for any loss or damage caused to the account holder through the registry because of a br each of the account holder's security system. Emission offset projects – public documents 9 The director must ensure that the docum ents posted on a publicly available website under

section 9 (2) [emission offset projects] of the Act in relation to an accepted emission offset proj ect remain posted until all offset units issued in respect of the project have been retired or cancelled. Registry – public information 10

(1) The director must ensure that the re gistry administrator publishes the following information in a portion of the registry that is made available to the public: (

a) the legal name of each account holder; (

b) the types of accounts held; (

c) in relation to each operator of a regulated operation, the number of compliance units retired for each compliance period from the compliance account of the regulated operation.

(2) The director must ensure that th e terms and conditions established under

section 2 (2) [BC Carbon Registry] are published in a portion of the registry that is made available to the public. Compliance unit identifier 11 The registry administrator must, for the pur poses of tracking compliance units in the registry, assign a unique identifier that identifies the following: (

a) for each offset unit issued, the calendar year in which the relevant emission reduction or removal occurred; (

b) for each earned credit issued, the compliance period in which the earned credit was earned;

page 7 of 11 (

c) for each recognized unit credited to an account, the calendar year in which the relevant project reduction occurred. Compliance unit information 12 The following information in relation to each compliance unit issued into the registry must be published in a portion of the registry that is made available to the public: (

a) the unique identifier assigned to the compliance unit by the registry admin- istrator under

section 11; (

b) the type of compliance unit; (

c) in the case of an offset unit, (

i) the name of the project th at generated the offset unit, (ii) the type of project that generated the offset unit, (iii) the name of the project proponent, (iv) the calendar year in which the offset unit was issued, (

v) the calendar year in which the relevant project reduction occurred, and (vi) an electronic link to the documen ts posted on a publicly available website under

section 9 (2) of the Act in relation to the project; (

d) in the case of an earned credit, (

i) the name of the operator of the regulated operation that earned the earned credit, (ii) the name and business email a ddress of the operator’s primary account representative, (iii) the calendar year in which the earned credit was issued, and (iv) the compliance period in whic h the earned credit was earned; (

e) in the case of a recognized unit, (

i) the jurisdiction in which the recognized unit was issued, (ii) the calendar year in which th e recognized unit was issued, and (iii) the calendar year in which the relevant project reduction occurred; (

f) in the case of a compliance unit that has been retired, (

i) the name of the holder of the account from which the unit was retired, and (ii) the date of retirement. Compliance unit transactions 13

(1) In this section, “impaired project reduction” has the same meaning as in

section 11 (1) [definitions and

interpretation] of the Emission Offset Project Regulation.

(2) The account holder of a holding account may transfer compliance units from the holding account (

a) to another holding account of the account holder,

page 8 of 11 (

b) to a holding account of another account holder, with the consent of the other account holder, or (

c) to a compliance account of the account holder.

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

(4) Subject to subsection (6), compliance units may not be retired except by the director.

(5) The director may retire compliance units as follows: (

a) from the compliance account of a re gulated operation, the compliance units identified in a compliance report of the operation under

section 23 (5) (b) [content of compliance reports] of the Greenhouse Gas Emission Reporting Regulation; (

b) from the government’s holding account under

section 13 (2) (c) [registry] of the Act, the number of offset uni ts required for public sector organiza- tions, as defined in

section 1 [definitions] of the Climate Change Account- ability Act, to meet their obligations under

section 5 (1) [carbon neutral public sector] of that Act; (

c) from the contingency a ccount if there is a re versal of greenhouse gas reductions or removals achieved by an emission offset project, the number of offset units required to compen sate for the amount of the impaired project reduction; (

d) from a project proponent’s holding account, the number of compliance units sufficient to compensate for an impa ired project reduction under

section 26.1 [reversal events – retire ment of compliance units] of the Emission Offset Project Regulation.

(6) The registry administrator or the dir ector may, on the direction of the account holder, other than for the purposes of meeting a compliance obligation or other obligation of the account holder under the Act, retire compliance units from a holding account referred to in

section 13 (2) (

a) or (b) [registry] of the Act, or from a general account.

(7) Compliance units may not be transferre d out of the retirement account except by the director.

(8) The director may transfer compliance uni ts out of the retirement account only if (

a) there was an error in a compliance report, an error by the director or registry administrator or an electronic system error and the compliance units are transferred into the account from which they were transferred in error, or (

b) the compliance units were retired under

section 26.1 (1) (

b) or (2) (b) [reversal events - retirement of compliance units] of the Emission Offset Project Regulation and the transfer is necessary to comply with a decision of the appeal board following an appe al of the director’s determination under

section 26.1 (1) (

b) of that regulation.

page 9 of 11 Suspension or cancellation of participation in registry 14

(1) The director may suspend an account holde r's participation in the registry for the period specified by the director if the director is of the opinion that (

a) the account holder's application to the registry contained a material omission or misstatement, (

b) the account holder failed to comply with the Act, a regulation under the Act or the terms and conditions on which the account is held, (

c) it is in the interest of the account holder to suspend the account holder's participation in the registry, or (

d) the suspension is necessary or advisable in the public interest.

(2) The registry administrator may suspend the participation of an account holder, a primary account representa tive or a secondary account representative in the registry if the registry administrator considers it necessary (

a) because of a security breach or a suspected security breach, or (

b) in the case of a suspension of the pa rticipation of a primary account repre- sentative or secondary account repres entative, in order to determine the representative’s authority to have electronic access to and manage an account holder’s accounts and conduct transactions in the registry on behalf of the account holder.

(3) The registry administrator must no tify the director of a suspension under subsection (2) as soon as is practicable.

(4) On receiving notice of a su spension, the director may (

a) cancel the suspension, or (

b) continue the suspension, for the period specified by the director, if the director is of the opinion that a ny of the circumstances described in subsection (1) exist.

(5) The director may cancel an account holde r's participation in the registry if the director is of the opinion that (

a) the account holder knowingly made a material omission or misstatement in the account holder's application to the registry, (

b) the account holder knowingly failed to comply with the Act, a regulation under the Act or the terms and conditions on which the account is held, (

c) the account holder, afte r receiving reasonable notice of any changes to the terms and conditions established under

section 2 (2) [BC Carbon Registry], failed to agree to the terms and conditions, or (

d) the cancellation is nece ssary or advisable in the public interest due to the actions of the account holder. Notice of intent to suspend or cancel 15

(1) Before issuing a suspension under sect ion 14 (1), continuing a suspension under

section 14 (4) (

b) or issuing a cancellation under

section 14 (5), the director must serve the account holder with a notice of the director’s intent.

(2) The notice of intent must set out the following:

page 10 of 11 (

a) the name of the account holder; (

b) a

summary description of the reasons for the suspension or cancellation; (

c) the account holder’s right to be pr ovided with an opportunity to be heard; (

d) in the case of a suspension, the period of the suspension.

(3) Despite this section, the director may, if the director consid ers a matter urgent, immediately suspend an account holder's participation in the registry.

(4) The director must, promptly after issuing a suspension under subsection (3), provide the notice referred to in subsection (2) respecting the director’s intention to continue the suspension or cancel th e account holder’s participation in the registry. Opportunity to be heard 16

(1) If an account holder who is served with notice under

section 15 (1) or (4) requests in writing, within 30 days after the date of service of the notice, an opportunity to be heard, the director must provide the account holder with an opportunity to be heard.

(2) If an account holder requests an opportunity to be heard in accordance with subsection (1), the director, subject to subsection (3), (

a) must conduct a written, electronic or oral hearing, or any combination of them, as the director considers appropriate, and (

b) may (

i) determine the circumstances and place in which, and the process by which, the hearing is to be conducted, and (ii) specify the form and content of materials to be provided for the hearing and when the materials must be provided.

(3) If an account holder fails to appear or provide materials to the director in accordance with subsection (2) (b), th e director may proceed without further notice to suspend, continue the suspen sion of or cancel the account holder’s participation in the registry.

(4) After serving notice under

section 15 (1) or (4), the director may, if no request for an opportunity to be heard is made within the 30-day period referred to in subsection (1) of this section, suspend, continue the suspension of, or cancel, as applicable, the account holder’s participation in the registry. Account closure 17

(1) A person who holds an account in the registry may close the account by providing written notice to the registry administrator.

(2) The registry administrator must close th e account within 30 days after receipt of the notice.

(3) This

section does not apply to the pr oject proponent of an accepted emission offset project who is required to hold or establish an account under

section 4 [project proponent].

page 11 of 11 Compliance units – account closure or suspension or cancellation of participation in registry 18 The registry administrator may, (

a) on the written request of an account holder who closes an account, or whose participation in the registry is suspe nded or cancelled, credit, on behalf of the account holder, compliance units to an account, and (

b) on the written request of an account holder who closes an account, or whose participation in the registry is cance lled, transfer, on be half of the account holder, compliance units from the acc ount holder's holding account to the holding account of another account holder. Transitional – project proponent 19 Despite

section 8 [conditions applicable to account holders] of this regulation and the repeal of

section 6.2 [conditions applicable to account holders] of the Greenhouse Gas Emission Control Regul ation,

section 6.2 of the Greenhouse Gas Emission Control Regulation, as it read immediately before its repeal, c ontinues to apply with respect to a person who was a project pr oponent immediately before the date this

section comes into force until the earlier of (

a) August 1, 2024, and (

b) the date the project proponent notifie s the minister in writing of the project proponent’s election to have

section 8 of this regulation apply.

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 71/2024
Type	order_in_council
Volume / chapter	arc oic 0071 2024
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	b3ce2ac34052d717c7701070cd3f44de7ab963f7

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