On April 5, 2016, the Ministry of the Environment and Climate
Change (MOECC) released proposed changes to two regulations
that form the backbone of the cap and trade program and two
additional documents under Ontario's Cap and Trade Program. The
proposed amendments will affect the methods for determining the
number of free allowances to be distributed to particular
facilities and other administrative requirements of Ontario's
Cap and Trade Program.
The changes being considered include will affect the:
Cap and Trade Program Regulation (O
Reg. 144/16: Effective July 1 2016)
Methodology for Distribution of
Ontario Emission Allowances Free of Charge dated December 12,
Quantification, Reporting and
Verification of Greenhouse Gas Emissions Regulation (O Reg. 143/16:
Effective January 1, 2017)
Guideline for Greenhouse Gas
Emissions Reporting (Effective January 1, 2017)
Amendments to the Methodology for the
Distribution of Ontario Emission Allowances Free of Charge
Making it clear that facilities that
receive indirect useful thermal energy (e.g., imported steam) and
pass some of it on to other facilities will be eligible for
distribution of Ontario emission allowances free of charge (free
allowances) only for the portion they use.
Changing the Methodology applicable
to particular facilities, from the energy use-based and historical
absolute emissions methods to the product output benchmark or
historical emissions intensity methods.
Modifying existing product output
benchmarks and historical emissions intensities to better align
with facility and sector emissions.
Proposed technical amendments to the
Guideline for the Reporting Regulation include:
Ensuring the compliance obligation
for emissions from process fuels from iron and steel production is
imposed on the iron and steel producer even in situations where the
process fuels have been transferred from one facility to another
facility prior to combustion and resulting emission of greenhouse
Ensuring all emissions from the
combustion of natural gas delivered to a participant with a
compliance obligation (capped emitter) bear a compliance
obligation. This addresses a unique situation in which no entity
has a compliance obligation in respect of greenhouse gas emissions
where natural gas that is delivered to a capped participant is
subsequently transferred to an entity that is not subject to a
The proposal has been posted for a 45-day public review period
starting April 5, 2017. The MOECC has posted a summary of the
proposed amendments on the Environmental Registry. The deadline to
provide written comments that will be considered as part of the
decision-making process by the MOECC is May 20, 2017.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
IN ALBERTA, DIRECTORS AND OFFICERS OF COMPANIES MAY FACE PERSONAL LIAB ILITY UNDER ENVIRONMENTAL AND REGULATORY STATUTES, particularly under the Environmental Protection and Enhancement Act1, and the Oil and Gas...
In January 2017, in ABAER 001 - Bonavista Energy Corporation A Regulatory Appeal of Two Well Licences and an Application for a Pipeline Gilby Field (Bonavista case), the Alberta Energy Regulator (AER) issued the first of its decisions for 2017 ...
March 29, 2017 – Cenovus Energy Inc. ("Cenovus") agreed to acquire ConocoPhillips's 50% interest in the FCCL Partnership, which is the companies' jointly owned oilsands venture operated by Cenovus. Cenovus is also purchasing the majority of ConocoPhillips's Deep Basin conventional assets in Alberta and British Columbia.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).