OBPS 2019 Deadline Extensions

Summary#

These are final amendments to the Output‑Based Pricing System Regulations that push back several deadlines tied to the 2019 reporting year because of COVID‑19 disruptions. The deadlines for the annual report and verification, and for two compensation payment deadlines, were each moved by four months. The amendments took effect (or are treated as taking effect) on May 31, 2020.

What it does#

• Delays the deadline to submit the annual report and the third‑party verification report for the compliance period ending December 31, 2019, from June 1, 2020 to October 1, 2020.
• Delays the regular‑rate compensation deadline for that same period from December 15, 2020 to April 15, 2021.
• Delays the increased‑rate compensation deadline for that period from February 15, 2021 to June 15, 2021.
• Clarifies that if a corrected report is sent before the (new) regular‑rate deadline, the compensation deadline will be the later of the relevant deadlines above.
• Applies only to the 2019 compliance period. The rest of the Rules remain unchanged. The changes came into force as of May 31, 2020.

Who's affected#

• The people responsible for “covered facilities” under the Output‑Based Pricing System Regulations. These are the facility owners or operators who must report emissions and provide compensation when emissions exceed limits.
• Verification bodies that do third‑party checks of facility reports. They may have needed more time to arrange site visits because of COVID‑19 rules.
• Facilities in provinces where the federal backstop applies, including Ontario, New Brunswick, Manitoba, Prince Edward Island, Yukon, Nunavut, and parts of Saskatchewan.
• Small businesses that voluntarily joined the system may notice the extra time more than larger firms, since they typically have fewer resources.

Why it matters#

• It gives regulated facilities extra time to complete third‑party verifications and file accurate annual reports without forcing in‑person site visits during the pandemic.
• The delay also postpones when companies must pay for excess emissions or provide compliance units, helping with short‑term cash flow during COVID‑19.
• The amendments aim to protect the integrity of the system by allowing proper verification before surplus credits are issued or compensation is accepted.
• The increased‑rate penalty for late compensation remains 4 times the regular rate. For context in the rules, the excess emissions charge was $20 per tonne for 2019 (rising in later years), so timing can affect substantial payments or credit transactions.