21. On the expiry of the compliance deadline, every emitter must have at least as many emission allowances in its compliance account as its verified emissions for every covered establishment during the compliance period or, where applicable, during the years following the last compliance period for which emissions coverage was required.
The Minister deducts from the emitter’s compliance account, in the order indicated in the coverage report, the required number of emission allowances.
If the coverage report does not indicate an order for deduction, or if the number of emission allowances to be deducted in order is insufficient to cover the GHG emissions, the Minister deducts the required emission allowances in chronological order, from the least recent to the most recent according to their year of issue and serial number, in the following order:
(1) offset credits, up to the limit provided for in the fourth paragraph of section 20;
(2) early reduction credits;
(3) emission units.
The emission allowances deducted by the Minister in accordance with this section are placed in the Minister’s retirement account and are extinguished.