70.21. The Minister may require the promoter to replace any offset credit issued for a project under the first paragraph of section 70.20 in the following cases:
(1) where, because of omissions, inaccuracies or false information in the information and documents provided by the promoter, the GHG emission reductions for which the offset credits were issued were not eligible;
(2) where offset credits were applied for under another program for the same reductions as those covered by the application for credits under this Regulation;
(3) where the project was not carried out in accordance with the provisions of this Regulation.
The Minister notifies the promoter who must, within 30 days of receiving the notice, place in its general account an emission allowance for each illegitimate offset credit that must be replaced.
The Minister, after being notified that the promoter has placed the credits in the general account, deducts the replacement emission allowances designated by the promoter and places them in the invalidation account to be extinguished. The Minister also transfers the number of offset credits paid into the environmental integrity account for the project under the second paragraph of section 70.20, in proportion to the number of offset credits replaced by the promoter, into the invalidation account to be extinguished.
Without prejudice to the Minister’s other recourses against the promoter, if the promoter has failed to surrender the replacement emission allowances on the expiry of the 30-day period, the Minister replaces the illegitimate offset credits by withdrawing an equivalent number of credits from the environmental integrity account and placing them in the invalidation account to be extinguished.
When the promoter fails to replace illegitimate offset credits, the project is removed from the register of offset credit projects.
O.C. 1184-2012, s. 45; O.C. 902-2014, s. 55; O.C. 1089-2015, s. 23; O.C. 1125-2017, s. 5212.