In preparation for the introduction of its cap-and-trade system,
Ontario's Ministry of the Environment and Climate Change
(MOECC) is seeking comments on proposed amendments to the Greenhouse Gas Emissions Reporting
Regulation (O. Reg. 452/09) (the "Regulation").
Currently, the Regulation requires certain facilities (as
identified under the Regulation) emitting 25,000 tonnes or more of
carbon dioxide equivalent ("CO2e") per year to
report and verify their emissions data.
Under the proposed amendments, MOECC is looking to:
lower the reporting threshold to 10,000 tonnes CO2e
from the current threshold of 25,000 tonnes per year, while
maintaining the requirement to have emissions greater than 25,000
tonnes per year third party verified;
divide the emission sources into those that are reporting only
and those that require third party verification;
add petroleum product suppliers and natural gas distributors to
the Regulation starting in 2016, to support the implementation of a
cap-and-trade program; and
add other sources to the reporting regulation including:
equipment used for natural gas transmission, distribution and
storage; electricity imports; electricity transmission and
distribution; magnesium production; and mobile equipment at
Once adopted, the proposed amendments would significantly
increase the amount of emissions reported and the number of
facilities reporting under the Regulation. In calculating emissions
for the purposes of the reporting threshold, a reporting entity
would be able to deduct from its total CO2e emissions
any carbon dioxide emissions from the combustion of biomass. There
will be no emissions thresholds for electricity importers to
prevent them from sub-dividing into smaller entities to avoid
compliance obligations (similar to how California treats its
With respect to the reporting threshold for liquid petroleum
fuel distributors/suppliers, this will be set at 200 litres of fuel
to ensure consistency with the requirement in Québec. While
the verification threshold will remain at 25,000 tonnes of CO2e,
any liquid fuel distributor/suppliers (estimated by MOECC to be
over 30 companies) that exceed the 200 litre threshold will be
required to verify their emissions reports. Finally, all
electricity importers (estimated by MOECC to be in the range of
30-50 companies) will be required to verify their emissions
The amended Regulation will also categorize certain emission
sources as being subject to reporting requirements only. This means
that these emissions will need to be reported, but would not be
subject to verification or potential compliance requirements under
the cap-and-trade program. These proposed categories include:
fugitive geothermal units and hydrofluorocarbons (HFC)
emissions from cooling units at electricity generators;
In terms of compliance, the MOECC is in the process of reviewing
and comparing penalties under Ontario's Environmental Protection Act with
those available under Québec's cap-and-trade regime.
Monetary penalties for non-compliance with greenhouse gas reporting
requirements in connection with the cap-and-trade program are also
under consideration by the MOECC.
The proposed amendments have been posted for a 45 day public
review and comments may be submitted to the MOECC's designated
contact person or online by October 29, 2015.
Ontario's Ministry of the Environment and Climate Change continues to roll out its Climate Change Action Plan with its proposed GHG guide for projects that are subject to the province's Environmental Assessment Act.
The Imperial Oil refinery pled guilty to one offence for discharging a contaminant, coker stabilizer, thermocracked gas, into the natural environment causing an adverse effect and was fined $650,000...
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