HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Part 1 – Introductory Provisions

Definitions

1  In this Act:

"address for service", in relation to a supplier, means an address in British Columbia provided under section 17 (3) (d) [model year report] as an address at which notices and other communications will be accepted as served on or otherwise delivered to the supplier, and must include an email address;

"administrative penalty" means an administrative penalty under Division 2 [Administrative Penalties] of Part 4 [Compliance and Enforcement];

"appeal board" means the Environmental Appeal Board under the Environmental Management Act;

"balance", in relation to a supplier, means the credits or debits held by the supplier;

"compliance date", in relation to a model year, means the prescribed date of the calendar year that follows the calendar year indicated in the name of the model year;

"consumer sale", in relation to a motor vehicle, means a retail sale or retail lease in British Columbia of the motor vehicle that is the first retail sale or retail lease, as the case may be, of that motor vehicle in British Columbia or another jurisdiction in or outside Canada;

"credit" means a positive number of ZEV units;

"debit" means a negative number of ZEV units;

"director" means the government employee designated in writing by the minister as the director for the purposes of this Act;

"greenhouse gas" has the same meaning as in the Climate Change Accountability Act;

"initiative agreement" means an agreement under section 14 [issuance of credits – initiative agreements];

"inspector" means a government employee who is designated in writing by the director as an inspector, or a person in a class of government employees that is designated in writing by the director as inspectors;

"model year",

(a) in relation to a motor vehicle, has the prescribed meaning, and

(b) in relation to a ZEV unit, has the meaning given to it in section 4 [classification of ZEV units];

"model year report" means a report under section 17;

"motor vehicle" means a motor vehicle within the meaning of the Motor Vehicle Act but does not include a vehicle in a prescribed class of vehicles;

"notice of assessment" means a notice under section 19 [assessment by director];

"notice of reassessment" means a notice under section 20 [reassessment by director];

"reported model year", in relation to a model year report, means the model year that is the subject of the model year report;

"supplementary report" means a report under section 18 [supplementary report];

"supplier", in relation to a motor vehicle, has the meaning given to it in section 2;

"vehicle class",

(a) in relation to a motor vehicle, means a prescribed class of motor vehicles, and

(b) in relation to a ZEV unit, has the meaning given to it in section 4;

"vehicle make" means the name of a motor vehicle marketed by one or more related corporations or other persons who

(a) are engaged in the business of manufacturing motor vehicles, and

(b) use a common corporate name and vehicle marque;

"zero-emission vehicle" or "ZEV" means the following:

(a) a motor vehicle that

(i) is propelled by electricity or hydrogen from an external source, and

(ii) emits no greenhouse gases at least some of the time while the motor vehicle is being operated;

(b) a prescribed type of motor vehicle;

"ZEV class",

(a) in relation to a zero-emission vehicle, means a prescribed class of zero-emission vehicles, and

(b) in relation to a ZEV unit, has the meaning given to it in section 4;

"ZEV unit" has the meaning given to it in section 4.

Definition of "supplier"

2  For the purposes of this Act, the following person is the supplier of a vehicle make:

(a) subject to paragraph (b), the person who supplies motor vehicles of the vehicle make for consumer sale by the person or another person;

(b) the person who is deemed under the regulations to be the supplier.

Classification of motor vehicles

3  For the purposes of this Act, motor vehicles are classified by

(a) model year,

(b) vehicle class, and

(c) in the case of a zero-emission vehicle, ZEV class.

Classification of ZEV units

4  For the purposes of this Act, ZEV units are classified as follows:

(a) if the ZEV unit is a credit issued in relation to a consumer sale of a zero-emission vehicle, the ZEV unit has the model year, vehicle class and ZEV class of the zero-emission vehicle;

(b) if the ZEV unit is a credit issued in relation to an agreement under section 14 [issuance of credits – initiative agreements] or section 15 [issuance of credits – purchase agreements], the ZEV unit has the model year, vehicle class and ZEV class specified in the agreement;

(c) if the ZEV unit is a credit or debit that results from an increase or reduction, as the case may be, under any of the following provisions, the ZEV unit has the model year, vehicle class and ZEV class specified by the provision:

(i) section 10 (3) (b) [supply of ZEVs – penalty credits];

(ii) section 11 (1) [compliance ratio reduction – ratio does not specify ZEV class];

(iii) section 11 (2) [compliance ratio reduction – ratio specifies ZEV class];

(d) if the ZEV unit is a credit or debit that results from an adjustment under section 21 [adjustments on assessment or reassessment], the ZEV unit has the model year, vehicle class and ZEV class specified by the director in the applicable notice of assessment or notice of reassessment.

Application – prescribed class of suppliers

5  (1) Subject to subsection (2), this Act, other than the following provisions, does not apply in relation to a supplier in a prescribed class of suppliers:

(a) Part 2 [Provincial Targets];

(b) section 22 (1) [information requests] and Parts 4 [Compliance and Enforcement], 5 [Appeals to Environmental Appeal Board] and 6 [General] as they relate to section 22 (1).

(2) If a supplier referred to in subsection (1) gives written notice to the director before the compliance date for a model year or submits a model year report under section 17 [model year report] for a model year, this Act, other than the following provisions, applies to the supplier in relation to the model year:

(a) section 10 [supply of ZEVs];

(b) section 11 [compliance ratio reductions];

(c) section 14 [issuance of credits – initiative agreements];

(d) section 15 [issuance of credits – purchase agreements];

(e) any other prescribed provision.

Part 2 – Provincial Targets

Definition

6  In this Part, "light-duty motor vehicle" has the prescribed meaning.

Provincial targets

7  The following targets are established for the purpose of reducing greenhouse gas emissions in British Columbia:

(a) in 2025 and in each subsequent year, at least 10% of all new light-duty motor vehicles sold or leased in British Columbia must be zero-emission vehicles;

(b) in 2030 and in each subsequent year, at least 30% of all new light-duty motor vehicles sold or leased in British Columbia must be zero-emission vehicles;

(c) in 2040 and in each subsequent year, 100% of all new light-duty motor vehicles sold or leased in British Columbia must be zero-emission vehicles.

Provincial targets report

8  (1) On or before March 31 in each year, the director must publish a report respecting the zero-emission vehicle targets described in section 7 that meets the requirements set out in subsection (2).

(2) A report under subsection (1) must

(a) cover the immediately preceding calendar year,

(b) set out the following:

(i) the number of consumer sales of light-duty motor vehicles;

(ii) the number of consumer sales of light-duty motor vehicles that are zero-emission vehicles, and

(c) include any other prescribed information.

Prohibition in 2040 and subsequent years

9  On or after January 1, 2040, a person must not make a consumer sale of a light-duty motor vehicle that is not a zero-emission vehicle.

Part 3 – Supply of ZEVs

Division 1 – Supply of ZEVs and ZEV Units

Supply of ZEVs

10  (1) This section applies on assessment under section 19 [assessment by director] or reassessment under section 20 [reassessment by director].

(2) At the end of the compliance date for a model year, a supplier must have a balance that contains the following numbers of ZEV units:

(a) for each vehicle class, zero or more ZEV units;

(b) for each prescribed vehicle class, if applicable, zero or more ZEV units of each prescribed ZEV class.

(3) If a supplier has a balance on the compliance date for a model year that contains less than zero ZEV units of a vehicle class and ZEV class,

(a) the supplier is subject to an administrative penalty in an amount determined under section 26 [automatic administrative penalties], and

(b) on payment of the administrative penalty, the balance of ZEV units of the vehicle class and ZEV class is increased by a number of credits of the model year, vehicle class and ZEV class, which may be the unspecified ZEV class, that is equal to the amount below zero.

(4) An increase under subsection (3) (b) takes effect on the day after the compliance date to which the administrative penalty relates.

Compliance ratio reductions

11  (1) On the compliance date for a model year, the balance of a supplier of a vehicle make is reduced, for each vehicle class, by a number of ZEV units of the unspecified ZEV class that is determined in accordance with the following formula:

where

(2) On the compliance date for a model year, the balance of a supplier of a vehicle make is reduced, for each vehicle class and ZEV class prescribed for the purposes of section 10 (2) (b), if applicable, by a number of ZEV units that is determined in accordance with the following formula:

where

Offsetting credits and debits

12  (1) In this section, "special ZEV class", in relation to a vehicle class, means a ZEV class that is prescribed for the purposes of section 10 (2) (b) in relation to the vehicle class.

(2) Subject to subsection (3), a debit and a credit in the balance of a supplier offset one another as follows:

(a) debits of a vehicle class and a special ZEV class for the vehicle class are offset by credits of the same vehicle class and ZEV class;

(b) debits of a vehicle class and the unspecified ZEV class are offset by the following credits in the following order of priority:

(i) credits of the same vehicle class and ZEV class;

(ii) credits of the same vehicle class and any other ZEV class in accordance with the regulations, if applicable;

(iii) credits of the same vehicle class and any other ZEV class in an order of priority determined by the supplier;

(c) debits of a vehicle class and a ZEV class, other than the unspecified ZEV class and a special ZEV class for the vehicle class, are offset by the following credits in the following order of priority:

(i) credits of the same vehicle class and the unspecified ZEV class;

(ii) credits of the same vehicle class and ZEV class.

(3) An offset under subsection (2) occurs regardless of the model year of the debit and credit but debits and credits of the earliest model year are offset first.

Issuance of credits – consumer sales

13  (1) Subject to the regulations, the director may issue credits to a supplier of a vehicle make in relation to consumer sales of zero-emission vehicles of the vehicle make in any of the following circumstances:

(a) on application in accordance with subsection (2);

(b) on assessment under section 19 [assessment by director];

(c) on reassessment under section 20 [reassessment by director].

(2) An application under subsection (1) (a) must be made in accordance with the regulations and relate to consumer sales made during a prescribed period of time.

Issuance of credits – initiative agreements

14  (1) If the director enters into an agreement under this section with a supplier, the director must issue credits to the supplier in accordance with the agreement.

(2) Subject to this section and the regulations, the director may, with the approval of the minister, enter into an agreement with a supplier that provides for the issuance of credits to the supplier in relation to an action that the supplier proposes to take, if the director is satisfied that the action has a reasonable possibility of

(a) reducing greenhouse gas emissions in British Columbia from motor vehicles, and

(b) increasing use or consumer sales of zero-emission vehicles in British Columbia.

(3) An agreement under this section must, in accordance with the regulations,

(a) describe the action that the supplier proposes to take,

(b) specify the dates by which the action, or a stage of the action, will be completed,

(c) specify the number of credits to be issued to the supplier on the completion of the action, or a stage of the action, and the model year, vehicle class and ZEV class of those credits,

(d) specify what evidence must be provided to the director to demonstrate that the action, or a stage of the action, has been completed, and

(e) include any other prescribed terms and conditions.

Issuance of credits – purchase agreements

15  (1) If the director enters into an agreement under this section with a supplier, the director must issue credits to the supplier in accordance with the agreement.

(2) Subject to this section and the regulations, the director may, with the approval of the minister, enter into an agreement with a supplier that provides for the issuance of credits to the supplier on payment of the prescribed price per credit.

(3) An agreement under this section must, in accordance with the regulations,

(a) specify the maximum number of credits, by model year, vehicle class and ZEV class, that may be issued under the agreement,

(b) specify the period of time during which credits may be issued under the agreement, and

(c) include any other prescribed terms and conditions.

Transfer of credits

16  (1) Subject to the regulations, the director may record a transfer of credits from one supplier to another if the suppliers both submit, in the form and manner required by the director, a notice of the proposed transfer.

(2) A transfer under this section takes effect on the date that the transfer is recorded under subsection (1).

(3) A notice under subsection (1) of a proposed transfer must

(a) identify the supplier who proposes to transfer the credits,

(b) identify the supplier who proposes to receive the credits,

(c) specify, by model year, vehicle class and ZEV class,

(i) the number of credits to be transferred, and

(ii) the value of the consideration, if any, that the supplier submitting the notice provided or received, as the case may be, expressed as an amount in dollars per credit of the model year, vehicle class and ZEV class,

(d) include a statement, signed by or on behalf of the supplier submitting the notice, that

(i) the information in the notice is accurate and complete, and

(ii) that supplier consents to the transfer, and

(e) include any other prescribed information.

Division 2 – Reporting

Model year report

17  (1) In this section, "adjustment period", in relation to a model year report, means the period that

(a) begins on the day after the compliance date for the previous model year, and

(b) ends on the compliance date to which the model year report relates.

(2) Within a prescribed number of days after the compliance date for a model year, a supplier must submit to the director, in the form and manner required by the director, a model year report in accordance with this section and any applicable regulations.

(3) The model year report must include the following information about the supplier:

(a) the legal name of the supplier;

(b) the vehicle makes for which the supplier is the supplier;

(c) if the regulations classify suppliers, the classification of the supplier;

(d) the address for service of the supplier;

(e) the address where the supplier keeps records required to be kept and maintained under this Act;

(f) any other prescribed information.

(4) The model year report must include the following information about consumer sales of zero-emission vehicles made on or before the compliance date for the reported model year, for each vehicle make referred to in subsection (3) (b) and each vehicle class and, if applicable, ZEV class:

(a) the number of consumer sales;

(b) the vehicle model and vehicle identification number of each zero-emission vehicle sold or leased;

(c) any other prescribed information.

(5) The model year report must include the following information:

(a) the balance of the supplier at the end of the compliance date for the previous model year;

(b) if applicable, the number of debits that the supplier calculates as a reduction, by vehicle class and ZEV class, under each of the following provisions:

(i) section 11 (1) [compliance ratio reduction – ratio does not specify ZEV class];

(ii) section 11 (2) [compliance ratio reduction – ratio specifies ZEV class];

(c) if applicable, the number of credits, by model year, vehicle class and ZEV class, that expire under the regulations or are offset or transferred away under each of the following provisions in the adjustment period:

(i) section 12 [offsetting credits and debits];

(ii) section 16 [transfer of credits];

(d) if applicable, the number of credits, by model year, vehicle class and ZEV class, issued or transferred to the supplier or added to the balance of the supplier under each of the following provisions in the adjustment period:

(i) section 10 (3) (b) [supply of ZEVs – penalty credits];

(ii) section 13 (1) (a) [early issuance of credits – consumer sales];

(iii) section 14 [issuance of credits – initiative agreement];

(iv) section 15 [issuance of credits – purchase agreements];

(v) section 16 [transfer of credits];

(e) the number of credits, by vehicle class and ZEV class, claimed by the supplier in relation to consumer sales of zero-emission vehicles of the vehicle makes referred to in subsection (3) (b) and the reported model year for which credits have not been issued under section 13 (1) (a);

(f) any other prescribed information.

(6) The model year report must include any prescribed information about the following, if applicable:

(a) transfers referred to in subsection (5) (c) (ii) or (d) (v);

(b) initiative agreements referred to in subsection (5) (d) (iii).

Supplementary report

18  (1) A supplier must submit a supplementary report to the director within 30 days after the supplier becomes aware that

(a) information in a previous report under this Division did not completely and accurately disclose the information required to be included in the report, or

(b) information reported under section 17 (3) in a previous report has changed.

(2) A supplementary report under this section must be made in accordance with the regulations.

Division 3 – Assessments and Reassessments

Assessment by director

19  (1) On receipt of a model year report from a supplier, the director must serve on the supplier a notice of assessment that sets out the following for each vehicle class:

(a) a statement of whether the supplier has complied with section 10 (2) [supply of ZEVs];

(b) subject to subsection (2), the balance of the supplier at the end of the compliance date for the reported model year;

(c) if applicable, the number of credits, by model year, vehicle class and ZEV class, that the director assesses as having expired or been offset, transferred, issued or added as described under section 17 (5) (c) or (d) [model year report];

(d) if applicable, the number of credits, by model year, vehicle class and ZEV class, that the director issues in relation to consumer sales of zero-emission vehicles of the vehicle makes referred to in section 17 (3) (b) and the reported model year for which credits have not been issued under section 13 (1) (a) [early issuance of credits – consumer sales];

(e) if applicable, the number of ZEV units, by model year, vehicle class and ZEV class, that are added to or subtracted from the balance of the supplier under section 21 [adjustments on assessment or reassessment];

(f) if the supplier has not complied with section 10 (2), a statement

(i) notifying the supplier that section 10 (3) applies, and

(ii) specifying the amount of the administrative penalty determined under section 26 [automatic administrative penalties] and requiring the supplier to the pay the specified amount.

(2) An issuance or adjustment under subsection (1) (d) or (e) takes effect on the compliance date for the reported model year.

Reassessment by director

20  (1) The director may conduct a reassessment of any of the latest 5 reported model years.

(2) If a reassessment of a reported model year differs from the initial assessment under section 19 or a previous reassessment under this section, the director must serve on the supplier a notice of reassessment that sets out the information, for the reported model year and each subsequent model year, that is required to be set out in a notice of assessment.

Adjustments on assessment or reassessment

21  (1) On assessment under section 19 or reassessment under section 20, the director may adjust the balance, including adjustments to below zero, of the supplier.

(2) For certainty, an adjustment of the balance of a supplier on the basis that a credit ought not to have been issued does not affect the balance of another supplier to whom the credit has been transferred under section 16 [transfer of credits].

Division 4 – General

Information requests

22  (1) On request by the director, a supplier of a vehicle make must provide information about consumer sales of the vehicle make, by model year, vehicle class or ZEV class, within the period of time specified by the director.

(2) On request by the director, a supplier who submits a report under Division 2 [Reporting] must provide additional information in relation to the reported model year within the period of time specified by the director.

Audits

23  (1) The director may

(a) require a supplier who submits a report under Division 2 [Reporting] to have the report audited in accordance with the directions of the director, or

(b) conduct or authorize a person to conduct an audit of a report submitted under Division 2.

(2) A supplier who is required to have a report audited under subsection (1) (a) must do so within the period of time specified by the director.

(3) A supplier who is required to have a report audited under subsection (1) (b) must pay to the government the reasonable costs of the audit within 30 days after the receipt of an invoice from the director.

Record-keeping requirements

24  (1) A supplier must maintain the following records:

(a) records sufficient to verify the information required to be reported under Division 2 [Reporting];

(b) if the supplier enters into an initiative agreement, records that are sufficient to demonstrate the status of the action proposed in the agreement and whether the action, or a stage of the action, has been completed;

(c) any other prescribed records.

(2) The records required under subsection (1) must be maintained in British Columbia.

(3) The records required under subsection (1) must be retained for the following period of time, as applicable:

(a) in the case of records that relate to a reported model year, 6 years after the compliance date for the reported model year;

(b) in the case of records that relate to an initiative agreement, 6 years after the later of

(i) the date on which the agreement is entered, and

(ii) the date on which credits are last issued under section 14 [issuance of credits – initiative agreements] in relation to the agreement.

(4) The recording, maintenance and retention of records must be done in accordance with any requirements established by regulation.

Part 4 – Compliance and Enforcement

Division 1 – Inspections

Inspections

25  (1) For the purposes of ensuring compliance with this Act or the regulations,

(a) the director may designate persons or classes of persons as inspectors and issue identification to those inspectors, and

(b) an inspector designated under paragraph (a) may do all of the following for the purposes of an inspection:

(i) at any reasonable time enter land or premises, other than premises or a part of premises used solely as a private residence;

(ii) inspect, analyze, measure, sample or test anything;

(iii) use or operate anything or require the use or operation of anything, under conditions specified by the inspector;

(iv) take away samples, including motor vehicles;

(v) make or take away copies of records, photographs or audio or video records.

(2) An inspector who enters land or premises in accordance with this section

(a) may take along the persons and equipment that the inspector considers may be necessary for the purposes of the inspection, and

(b) on request, must provide proof of identity to a person present on the land or premises entered.

(3) A person who is the subject of an inspection under this section, or who is or was a director, receiver, receiver manager, officer, employee, banker, auditor or agent of a person who is the subject of an inspection under this section, on request of an inspector, must, without charge or unreasonable delay,

(a) produce for examination by the inspector any record relating to requirements under this Act, and

(b) provide the inspector with information relevant to the purposes of the inspection.

(4) Section 112 [seizures and prevention orders], other than subsection (4), of the Environmental Management Act applies for the purposes of this Act, and for that application

(a) a reference in that section to the Environmental Management Act is to be read as a reference to this Act,

(b) a reference in that section to the regulations under the Environmental Management Act is to be read as a reference to the regulations under this Act,

(c) a reference in that section to a director is to be read as a reference to the director under this Act,

(d) a reference in that section to an officer is to be read as a reference to an inspector under this Act, and

(e) a reference in that section to an inspection is to be read as a reference to an inspection under this Act.

Division 2 – Administrative Penalties

Automatic administrative penalties

26  The amount of an administrative penalty in relation to a balance that contains less than zero ZEV units under section 10 (3) (a) [supply of ZEVs] is the amount determined in accordance with the following formula:

where

Discretionary administrative penalties

27  (1) The director may take action under this section, in accordance with the regulations, if the director is satisfied on a balance of probabilities that a person

(a) has contravened a prescribed provision of this Act or the regulations, or

(b) has provided information that is incomplete or inaccurate in a model year report, in a supplementary report or in response to a request under section 22 [information requests].

(2) In the circumstances referred to in subsection (1), the director may serve the person with an administrative penalty notice

(a) identifying the person's non-compliance as determined by the director, and

(b) requiring the person to pay an administrative penalty in the amount specified in the notice.

Requirement to pay administrative penalties

28  (1) A person served with a notice of assessment or notice of reassessment that requires the payment of an administrative penalty under section 10 (3) [supply of ZEVs – shortfall of ZEV units] or an administrative penalty notice under section 27 [discretionary administrative penalties] is subject to an administrative penalty as follows:

(a) if the person admits, in writing, the non-compliance and its extent as determined by the director, the penalty indicated in the notice is imposed at the time of that admission;

(b) if the time for appealing the determination of non-compliance or its extent under Part 5 [Appeals to Environmental Appeal Board] has elapsed and no appeal has been commenced, the penalty indicated in the notice is imposed at the end of the time for appealing;

(c) if the non-compliance or its extent as determined by the director is appealed and, under the final determination of the appeal, the person is subject to an administrative penalty, the penalty specified in the final determination is imposed at the time of that final determination.

(2) An administrative penalty under this section must be paid to the government within 30 days after the penalty is imposed and in accordance with any other prescribed requirements.

Recovery of administrative penalties

29  (1) An administrative penalty may be recovered as a debt due to the government.

(2) If a person fails to pay an administrative penalty as required under this Act, the director may file a certificate in a court that has jurisdiction and, on filing, the certificate has the same force and effect, and all proceedings may be taken on it, as if it were a judgment of the court with which it is filed.

(3) A certificate under subsection (2) must

(a) be signed by the director, and

(b) contain the following information:

(i) the name of the person who is liable for the penalty;

(ii) particulars of the administrative penalty;

(iii) the amount of the penalty under subsection (1).

Division 3 – Offences

Offences and penalties

30  (1) A person who contravenes any of the following provisions commits an offence:

(a) section 9 [prohibition in 2040 and subsequent years];

(b) section 17 (2) [model year report];

(c) section 18 (1) [supplementary report];

(d) section 22 [information requests];

(e) section 23 (2) [audits];

(f) section 38 [confidentiality];

(g) a provision of the regulations the contravention of which is prescribed to be an offence.

(2) A person who does either of the following commits an offence:

(a) obstructs or resists the director or an inspector exercising powers or performing duties under this Act;

(b) fails to comply with a direction given or requirement imposed under this Act by the director or an inspector.

(3) A person convicted of an offence under subsection (1) (b), (c), (d) or (e) or (2) is liable to a fine of not more than $1 000 000 or imprisonment for a term of not more than 6 months, or both.

(4) A person convicted of an offence under subsection (1) (a) is liable to a fine of not more than $500 000 or imprisonment for a term of not more than 6 months, or both.

(5) A person convicted of an offence under subsection (1) (f) or (g) is liable to a fine of not more than $200 000 or imprisonment for a term of not more than 6 months, or both.

Offences of providing false or misleading
information and penalties

31  (1) This section applies in relation to information that is required to be provided in a model year report, in a supplementary report or in response to a request under section 22 [information requests].

(2) A person who knowingly provides false or misleading information when required under this Act to provide information commits an offence and is liable on conviction to a fine of not more than $1 000 000 or imprisonment for a term of not more than 6 months, or both.

(3) A person who provides false or misleading information when required under this Act to provide information, other than a person described in subsection (2), commits an offence and is liable on conviction to a fine of not more than $500 000 or imprisonment for a term of not more than 6 months, or both.

(4) A person does not commit an offence under subsection (3) if, at the time the information was provided, the person, with the exercise of reasonable diligence, could not have known that the information was false or misleading.

Continuing offences

32  If an offence under section 30 continues for more than one day, separate fines, each not exceeding the maximum fine for the offence, may be imposed for each day the offence continues.

Corporate liability

33  (1) If a corporation commits an offence under this Act, an officer, director or agent of the corporation who authorized, permitted or acquiesced in the offence commits the offence, whether or not the corporation is prosecuted or convicted.

(2) If an employee, officer, director or agent of a corporation commits an offence under this Act while acting on behalf of the corporation, the corporation also commits the offence, whether or not the officer, director or agent is identified, prosecuted or convicted.

(3) For the purposes of subsection (2), a corporation has the burden of proving that an employee, officer, director or agent of the corporation was not acting on behalf of the corporation at the time the employee, officer, director or agent committed an offence referred to in that subsection.

Relationship between administrative penalties and offences

34  (1) A person may be prosecuted under this Act for a contravention in relation to which an administrative penalty has been imposed.

(2) In imposing a sentence for an offence under this Act, the court may consider an administrative penalty imposed in relation to the same matter.

(3) An administrative penalty may not be imposed on a person for a contravention in relation to which the person has been convicted of an offence under this Act.

Other provisions relating to offences

35  (1) Section 5 of the Offence Act does not apply to this Act or the regulations.

(2) The time limit for laying an information for an offence under this Act is

(a) 3 years after the date that the facts on which the information is based arose, or

(b) if the minister completes a certificate described in subsection (3), 18 months after the date that the facts on which the information is based first came to the knowledge of the minister.

(3) A document purporting to have been issued by the minister, certifying the date on which the minister became aware of the facts on which the information is based, is proof of the certified facts.

Part 5 – Appeals to Environmental Appeal Board

Appeals to Environmental Appeal Board

36  (1) In this section, "decision" means any of the following:

(a) an assessment under section 19 [assessment by director];

(b) a reassessment under section 20 [reassessment by director];

(c) the determination of non-compliance under section 27 [discretionary administrative penalties], or the extent of that non-compliance or of the amount of the administrative penalty, as set out in an administrative penalty notice;

(d) a prescribed decision.

(2) A person who is served with any of the following may appeal the applicable decision to the appeal board:

(a) a notice of assessment;

(b) a notice of reassessment;

(c) an administrative penalty notice referred to in subsection (1) (c);

(d) a document evidencing a decision referred to in subsection (1) (d).

(3) The following provisions of the Environmental Management Act apply in relation to an appeal under this section of a decision:

(a) Division 1 [Environmental Appeal Board] of Part 8 [Appeals];

(b) section 101 [time limit for commencing appeal];

(c) section 102 (2) [procedure on appeals – new hearing];

(d) section 103 [powers of appeal board in deciding appeal].

Part 6 – General

Division 1 – General

Notice and service under this Act

37  (1) A notice that is required to be served on a supplier under this Act is deemed to have been served if it is

(a) sent by ordinary mail or registered mail to the supplier's address for service,

(b) transmitted by email to the supplier at the email address provided as part of the supplier's address for service, or

(c) sent, transmitted or delivered by any prescribed method of service.

(2) If service is by ordinary mail or registered mail, the notice is deemed to have been served 8 days after it is mailed.

(3) If service is by email, the notice is deemed to have been served 3 days after it is transmitted.

(4) If service is by a prescribed method of service, the notice is deemed to have been served the prescribed number of days after it is sent, transmitted or delivered, as the case may be.

Confidentiality

38  (1) In this section:

"protected information" means information that would reveal

(a) trade secrets of a third party, or

(b) commercial, financial, labour relations, scientific or technical information of or about a third party;

"third party" has the same meaning as in the Freedom of Information and Protection of Privacy Act;

"trade secret" has the same meaning as in the Freedom of Information and Protection of Privacy Act.

(2) Subject to this section, a person who has access to protected information that is in the custody or under the control of the government through

(a) reports to be provided by a supplier under this Act,

(b) information requested under section 22 [information requests],

(c) information in an audit under section 23 [audits],

(d) the exercise of powers under section 25 [inspections] in relation to a supplier, or

(e) an information-sharing agreement under section 39 [information-sharing agreements] that provides that the information is to be kept confidential

must not disclose the protected information to any other person.

(3) The prohibition in subsection (2) does not apply to disclosure of the following information:

(a) information that is publicly available;

(b) if the regulations classify suppliers, the classification of a supplier;

(c) the number or proportion of consumer sales, by supplier, model year or vehicle class, that are zero-emission vehicles and the ZEV class of those vehicles;

(d) the director's assessment, for a model year, vehicle class and, if applicable, ZEV class, of whether a supplier is in compliance with section 10 (2) [supply of ZEVs];

(e) information about a supplier's balance, including the ZEV units, by model year, vehicle class and ZEV class, that are in the supplier's balance;

(f) information about transfers between suppliers, including who transferred or received credits and the model year, vehicle class and ZEV class of the transferred credits;

(g) information about initiative agreements entered into by a supplier, including information about the actions and the status of the actions;

(h) information about agreements under section 15 [issuance of credits – purchase agreements] entered into by a supplier, including the number, model year, vehicle class and ZEV class of any credits purchased;

(i) information that is required or authorized to be made public under this Act.

(4) The prohibition in subsection (2) does not apply to disclosure in the following circumstances:

(a) if required under Part 2 [Freedom of Information] of the Freedom of Information and Protection of Privacy Act;

(b) in the course of administering or enforcing this Act or a prescribed enactment;

(c) for the purpose of court proceedings;

(d) in accordance with an information-sharing agreement under section 39 of this Act;

(e) with the consent of the person, group of persons or organization that is the third party in relation to the protected information.

Information-sharing agreements

39  (1) For the purposes of this section, "information-sharing agreement" means a data-matching or other agreement to provide or exchange information related to any of the following:

(a) the administration of this Act;

(b) the reduction of greenhouse gas emissions from motor vehicles in British Columbia;

(c) consumer sales of zero-emission vehicles;

(d) the registration of motor vehicles.

(2) With the prior approval of the Lieutenant Governor in Council, the minister may enter into an information-sharing agreement with any of the following:

(a) the government of another jurisdiction in or outside Canada or an agent of that government;

(b) a public body as defined in the Freedom of Information and Protection of Privacy Act.

Division 2 – Regulations

General regulation powers

40  (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations respecting any matter for which regulations are contemplated by this Act.

(3) A regulation under this Act may do any or all of the following:

(a) delegate a matter to a person;

(b) confer a discretion on a person;

(c) make different regulations in relation to different classes of persons, things, circumstances or other matters;

(d) adopt by reference, in whole, in part or with any changes considered appropriate, a regulation, code, standard or rule

(i) enacted as or under a law of another jurisdiction in or outside Canada, or

(ii) set by a provincial, national or international body or any other code, standard or rule-making body

as the regulation, code, standard or rule stands at a specific date, as it stands at the time of adoption or as amended from time to time.

Regulations in relation to vehicles and suppliers

41  (1) In this section, "affiliate", in relation to a supplier, means any of the following:

(a) an affiliate within the meaning of the Business Corporations Act;

(b) a person in a prescribed relationship with the supplier.

(2) Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations as follows:

(a) for the purposes of the definition of "vehicle class" in section 1, establishing classes of motor vehicles;

(b) for the purposes of the definition of "ZEV class" in section 1, establishing classes of zero-emission vehicles;

(c) establishing classes of suppliers for the purposes of this Act, including, without limitation, classes based on

(i) the volume of motor vehicles supplied in British Columbia or elsewhere by the supplier or affiliates or agents of the supplier, and

(ii) other characteristics of the supplier or affiliates or agents of the supplier;

(d) respecting when a person is deemed to be the supplier of a vehicle make for the purposes of section 2 (b) [definition of "supplier"].

Regulations in relation to supply of ZEVs

42  Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing vehicle classes and ZEV classes for the purposes of section 10 (2) (b) [supply of ZEVs – special targets];

(b) prescribing compliance ratios for the purposes of section 11 (1) or (2) [compliance ratio reductions].

Regulations in relation to ZEV units

43  Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations as follows:

(a) respecting the issuance of credits, including, without limitation,

(i) respecting applications under section 13 (1) (a) [early issuance of credits – consumer sales], and

(ii) specifying the number of credits to be issued in relation to each consumer sale of a zero-emission vehicle or providing a method for determining that number;

(b) respecting initiative agreements, including, without limitation,

(i) specifying matters the director may or must consider in deciding whether to enter into an agreement,

(ii) limiting the agreements into which the director may enter, including, without limitation, by reference to classes of suppliers or actions or classes of actions or on any other grounds, and

(iii) limiting the number of credits, generally or by model year, vehicle class or ZEV class, that may be issued under agreements to a supplier or class of suppliers or generally;

(c) respecting agreements under section 15 [issuance of credits – purchase agreements], including, without limitation,

(i) specifying matters the director may or must consider in deciding whether to enter into an agreement,

(ii) limiting the agreements into which the director may enter, including, without limitation, by reference to classes of suppliers, and

(iii) limiting the number of credits, generally or by model year, vehicle class or ZEV class, that may be issued under agreements to a supplier or class of suppliers or generally;

(d) respecting transfers under section 16 [transfer of credits], including, without limitation,

(i) respecting the manner in which the director is to record transfers,

(ii) requiring the director to publish information in relation to transfers and respecting the manner in which the information may or must be published, and

(iii) limiting the number of credits, generally or by model year, vehicle class or ZEV class, that may be transferred;

(e) for the purposes of sections 17 (5) (c) [model year report] and 19 (1) (c) [assessment by director], providing for the expiration of ZEV units, including, without limitation, by reference to model year, vehicle class or ZEV class.

Regulations in relation to reports

44  Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations respecting reports under Part 3 [Supply of ZEVs], including, without limitation, respecting the timing, form, content and manner of submission of the reports.

Regulations in relation to administrative penalties

45  Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations

(a) prescribing a penalty rate for the purposes of section 26 [automatic administrative penalties], generally or by model year, vehicle class or ZEV class, and

(b) in relation to administrative penalties under section 27 [discretionary administrative penalties], as follows:

(i) prescribing provisions of this Act and the regulations in relation to which an administrative penalty may be imposed;

(ii) prescribing a limitation period for imposing an administrative penalty and evidentiary matters in relation to that period;

(iii) prescribing procedures to be applied by the director in making a determination of non-compliance;

(iv) prescribing matters that must be considered by the director in imposing an administrative penalty in a particular case;

(v) requiring the director to serve a person with a notice of intent to impose an administrative penalty and provide the person with an opportunity to be heard before sending an administrative penalty notice;

(vi) establishing procedures for providing a person on whom a notice of intent to impose an administrative penalty has been served with an opportunity to be heard, which may include opportunities that do not involve an oral hearing;

(vii) prohibiting the director from serving an administrative penalty notice on a person who has demonstrated to the satisfaction of the director that the person exercised due diligence to prevent the specified contravention or failure;

(viii) establishing the required content of administrative penalty notices;

(ix) prescribing a maximum or minimum amount of an administrative penalty that may be imposed generally or for specified contraventions, or the manner of calculating those amounts;

(x) authorizing administrative penalties to be imposed on a daily basis for continuing contraventions;

(xi) respecting the manner and process for paying an administrative penalty;

(xii) prescribing the consequences of failing to pay an administrative penalty, which may include, but are not limited to, imposing additional administrative penalties under section 27;

(xiii) providing for the publication of information respecting the imposition of an administrative penalty.

Part 7 – Transitional Provision and Repeals

Division 1 – Transitional Provision

Transition – early action credits

46  (1) Subject to the regulations, the director may issue credits to a supplier of a vehicle make in relation to consumer sales of zero-emission vehicles of the vehicle make and the 2019 model year and any later model year if the compliance date for the model year is before the date this section comes into force.

(2) Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations for the purposes of subsection (1), including, without limitation,

(a) respecting applications for issuance of credits,

(b) respecting the eligibility of suppliers and consumer sales for the issuance of credits, and

(c) specifying the number of credits to be issued in relation to each consumer sale of a zero-emission vehicle or providing a method for determining that number.

(3) This section is repealed 2 years after the date it comes into force.

(4) Unless earlier repealed, a regulation made under subsection (2) is repealed when this section is repealed.

Division 2 – Repeals

Repeals

47  The following provisions of the Greenhouse Gas Reduction (Vehicle Emissions Standards) Act, S.B.C. 2008, c. 21, are repealed:

(a) paragraph (b) in the definition of "compliance deadline" in section 1 [definitions];

(b) paragraph (b) in the definition of "credit" in section 1;

(c) Part 3 [Zero Emission Vehicles];

(d) section 10 [automatic administrative penalties: failure to meet ZEV requirements];

(e) section 11 (3) and (4) [imposed administrative penalties: failure in relation to Part 3];

(f) section 15 (1) (c) and (d) [offences against Act and corresponding penalties];

(g) section 23 (3) (c) [confidentiality];

(h) section 27 [regulations in relation to Part 3];

(i) section 28 (a) (ii) [regulations in relation to Part 4].

Commencement

48  The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table:

 
Explanatory Note

This Bill sets provincial targets for the sale and lease of light-duty zero-emission vehicles and sets out a scheme for increasing the supply of zero-emission vehicles in British Columbia.