Cancellation of credits
 20. (1) Subject to subsection (2), if the Minister issues a notice under subsection 19 (3) and the sponsor submits a reversal report and a verification report that includes a positive verification statement, the process for cancellation of offset credits shall be as follows: 1. If the reversal is a type of reversal listed in the applicable protocol, the Minister shall cancel offset credits retained under subsection 16 (3) equal to the greater of, i. the amount of the reversal as set out in the reversal report under subparagraph 10 i of subsection 21 (1), and ii. the amount of the reversal as set out in the verification report under paragraph 2 of subsection 24 (3). 2. For all other types of reversals, i. the Minister shall cancel offset credits as described in paragraph 1, ii. the Minister shall remove from the sponsor’s holding account or compliance account the same number of offset credits as were cancelled under subparagraph i and retain them, and iii. if the sponsor’s holding account or compliance account does not have sufficient offset credits for the purposes of subparagraph ii, the Minister may issue a notice to the sponsor requiring the sponsor to submit Ontario offset credits equal to the difference. (2) If the Minister issues a notice under subsection 19 (3) and, (a) the sponsor does not submit a reversal report, verification report or positive verification statement; or (b) the sponsor submits a reversal report and a verification report that includes a positive verification statement but the Minister is of the opinion that a report or statement includes an error, omission or misstatement, or that the requirements of this Regulation or the applicable protocol were not complied with in the preparation of the report or statement, the process for cancellation of offset credits shall be as described in subsection (3). (3) For the purposes of subsection (2), the process is as follows: 1. If the reversal is a type of reversal listed in the applicable protocol, the Minister shall cancel the number of offset credits retained under subsection 16 (3) that were created for the offset initiative or initiatives in the group. 2. For all other types of reversals, i. the Minister shall cancel the number of offset credits retained under subsection 16 (3) that were created for the initiative or initiatives in the group, ii. the Minister shall remove from the sponsor’s holding account or compliance account the same number of offset credits as were cancelled under subparagraph i and retain them, and iii. if the sponsor’s holding account or compliance account does not have sufficient offset credits for the purposes of subparagraph ii, the Minister may issue a notice to the sponsor requiring the sponsor to submit Ontario offset credits equal to the difference. (4) If the Minister is of the opinion that a reversal may have occurred and there is no sponsor for an offset initiative, the process for cancellation of offset credits shall be as follows: 1. If the reversal is a type of reversal listed in the applicable protocol, the Minister shall cancel the number of offset credits retained under subsection 16 (3) that were created for the initiative or initiatives in the group. 2. For all other types of reversals, i. the Minister shall cancel the number of offset credits retained under subsection 16 (3) that were created for the initiative or initiatives in the group, ii. the Minister shall remove from the holding account or compliance account of any registered participant that was a sponsor of the initiative or initiatives the same number of offset credits as were cancelled under subparagraph i and retain them, and iii. if the registered participant’s holding account or compliance account does not have sufficient offset credits for the purposes of subparagraph ii, the Minister may issue a notice to the registered participant requiring the participant to submit Ontario offset credits equal to the difference. (5) A sponsor or registered participant who was a sponsor who receives a notice to submit credits described in subparagraph 2 iii of subsection (1), subparagraph 2 iii of subsection (3) or subparagraph 2 iii of subsection (4) shall submit the credits to the Minister within 30 days after the date of the notice or such longer time as the Minister may provide. Part V   Reporting and Verification