Bill C-9 An Act to regulate greenhouse gas emissions in Canada

Her Majesty, by and with the advice and consent of the House of Commons of Canada, enacts as follows:

Short Title

Short Title

  1. This act may be cited as the Emissions Trading Act, September 2015.

Interpretation

Definitions

  1. In this Act,
“Environment Canada”
means the Minister of the Environment or another Minister designated by the Governor in Council as the Minister responsible for this Act;
“emitter”
means a business who produces more than 25 kilotonnes of greenhouse gases and who is registered with Environment Canada;
“secondary emitter”
means a business who produces less than 25; but more than 1, kilotonnes of greenhouse gases and is registered with Environment Canada;
“emissions credit”
means the credits sold by Environment Canada to emitters to regulate their emissions produced;
“public sale”
means the government sale of emissions credits during the first week of January;
“greenhouse gases”
means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride;
“biomass”
means any fuel produced from lignocellulosic biomass.

Part I: Use of Emission Credits

Purchasing

Public Sale

  1. (1) A public sale will be held by Environment Canada from January 1 to January 7, recurring annually, at which:
    1. any emitter or secondary emitter may purchase emission credits;
    2. emissions credits may only be used in a designated region; and
    3. each region’s price for emission credits will be determined by Environment Canada.

Private Sale

  1. (1) Any emitter or secondary emitter may sell emission credits to other emitters or secondary emitters.
    (2) emission credits may not be sold privately for less than their original price of that year.

Use and Requirements

Use and Requirements

  1. (1) Credits are required to be used by:

    1. any company who produces more than 25 kilotonnes of greenhouse gases annually,
    2. any company who produces between 1 and 25 kilotonnes of greenhouse gases annually,
    3. any company that distributes electricity in Canada that was produced outside of Canada; and
    4. any company that distributes in Canada fossil fuels whose combustion exceeds 25 kilotonnes of greenhouse gases annually.

    (2) Carbon dioxide made by the burning of biomass is exempt from the amount of total produced greenhouse gases when applying subsection (1).
    (3) Companies who are required to use credits under subsection (1) paragraph (b) may apply for an exemption.
    (4) Companies, who are required to use credits under subsection (1) paragraph (a) that reduce their consumption so that subsection (1) paragraph (a) does not apply to them, may not apply for an exemption for two years.
    (5) Credits are not required to be used by any company producing under 1 kilotonne of greenhouse gases annually.
    (6) Exemption under subsection (2) continues for that company until the next public sale if it starts to produce between 1 and 25 kilotonnes of greenhouse gases annually.
    (7) Exemption under subsection (2) does not continue for that company if it starts to produce more than 25 kilotonnes of greenhouse gases annually.

Industry Exemptions

  1. Partial or full exemptions may be made by Environment Canada to companies for emissions produced during:
    1. lime production;
    2. cement production;
    3. chemical and petrochemical production;
    4. metallurgy;
    5. mining and pelletizing;
    6. pulp and paper production;
    7. petroleum refining; or
    8. glass containers, electrodes, and gypsum production.

Part II: Enforcement

Audits

Annual Audits

  1. (1) Every company producing over 25 kilotonnes of greenhouse gases must be inspected annually by an Environment Canada inspector.
    (2) Inspectors have the authority to suspend any company who is found to produce more than the reported greenhouse gas production.

Punishment

Excessive emission

  1. An emitter producing greenhouse gases exceeding their credit limit on January 7 will be fined double the emissions credit price at the last public sale by the government.

Illegal trading

  1. (1) Any emitter trading emission credits outside of sales under sections 3 and 4 is guilty of a summary offence and will have:

    1. to pay a fined up to four time the sale price of the emission credits;
    2. their emission credits seized; and
    3. any money exchanged for the emission credits seized.

    (2) Any emitter who commits a second offence under subsection (1) may also, in addition to punishment provided for by subsection (1), be subject to,

    1. a ban from producing emissions for up to 5 years; and
    2. a ban from privately trading emission credits for up to 10 years.

PART III: Coming into Force

Coming into force

  1. This Act will come into force on November 1, 2015

Registration deadline

  1. Emitters must register with Environment Canada before December 31, 2015

This Bill was submitted by /u/Ravenguardian17 and seconded by /u/Karomne on behalf of Her Majesty’s Loyal Opposition.