Output-Based Pricing System Regulations — 49
Verification body 49 (1) To be authorized to verify an annual report or a corrected report, a third party must (a) meet the following accreditation requirements: (i) it is accredited as a verification body to the ISO Standard 14065 by the Standards Council of Canada, the ANSI National Accreditation Board or any other accreditation organization that is a member of the International Accreditation Forum, (ii) it has a scope of accreditation that is sufficient to verify the annual report or the corrected report, and (iii) it is not suspended by an accreditation organization that issued an accreditation; and (b) conduct the verification in accordance with the version of ISO Standard 14064-3 published by the International Organization for Standardization in 2006 and entitled Greenhouse gases — Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions , the version of that Standard, published in 2019 and entitled Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements , or the subsequent published version, set out in their accreditation, by applying methods that allow it to make a determination to a reasonable level of assurance, as defined in that standard, on whether (i) a material discrepancy exists with respect to the total quantity of GHGs and production reported in the annual report from each specified industrial activity that is used in the calculation of the emissions limit, and (ii) in the verification body’s opinion, the annual report or corrected report was prepared in accordance with these Regulations. Material discrepancy (2) For the purpose of the verification of a covered facility’s annual report or corrected report, a material discrepancy exists when (a) with respect to GHGs from covered facilities that have emitted a quantity of GHGs of less than 500 kt of CO 2 e during the compliance period, (i) in the case of an error or omission respecting GHGs that is identified during the verification and that may be quantified, the result, expressed as a percent, determined by the formula, is equal to or greater than 5%: A ÷ B × 100 where A is the absolute value of the overstatement or understatement resulting from the error or omission, expressed in CO 2 e tonnes, and B is the total quantity of GHGs reported in the annual report or corrected report, expressed in CO 2 e tonnes, and (ii) in the case of the aggregate of all errors and omissions respecting GHGs that are identified during the verification and that may be quantified, the result, expressed as a percent, determined by the formula, is equal to or greater than 5%: A ÷ B × 100 where A is the absolute value of the net result of all overstatements and understatements resulting from all errors and omissions, expressed in CO 2 e tonnes, and B is the total quantity of GHGs reported in the annual report or corrected report, expressed in CO 2 e tonnes; (b) with respect to GHGs from covered facilities that emitted a quantity of GHGs that is equal to or greater than 500 kt of CO 2 e during the compliance period, (i) in the case of an error or omission respecting GHGs that is identified during the verification and that may be quantified, the result, expressed as a percent, determined by the formula, is equal to or greater than 2%: A ÷ B × 100 where A is the absolute value of the overstatement or understatement resulting from an error or omission, expressed in CO 2 e tonnes, and B is the total quantity of GHGs reported in the annual report or corrected report, expressed in CO 2 e tonnes, and (ii) in the case of the aggregate of all errors and omissions respecting GHGs that are identified during the verification and that may be quantified, the result, expressed as a percent, determined by the formula, is equal to or greater than 2%: A ÷ B × 100 where A is the absolute value of the net result of all overstatements and understatements resulting from all errors and omissions, expr