Streamlining and Updating of Greenhouse Gas Reporting Requirements
Regulation - LGIC
Bill or Act:
Environmental Protection Act
Summary of Decision:
We are amending the Greenhouse Gas Emissions: Quantification, Reporting and Verification regulation (O. Reg. 390/18) and the incorporated Guideline.
The amendments will:
1. remove mandatory reporting and verification requirements for petroleum product supply and natural gas distribution for the emissions from fuel they sell effective immediately
2. remove third party verification of annual emissions reports for some reporters (i.e., voluntary participants as defined in O. Reg. 390/18) effective immediately*
3. update the Global Warming Potentials (GWP) to the most recent international standards by adopting the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report (AR4) GWPs for all emissions reporting methods starting with the 2019 annual emissions report due in 2020.
* It is intended that voluntary participants that opt in to the proposed Emissions Performance Standards (EPS) program would need to undertake third party verification of annual emissions reports.
Analysis of Regulatory Impact:
The proposed regulatory amendments, including removing the GHG emission reporting and the third-party verification requirement for natural gas distributors and petroleum product suppliers as well as removing the verification requirement for voluntary participants as defined in O. Reg. 390/18, are not expected to cause additional costs to the affected entities. Instead, the proposed changes are anticipated to reduce the costs and administrative burden for the affected entities.
February 6, 2019
Summary of Proposal:
Proposed GHG Reporting Amendments
We are proposing to streamline reporting requirements for petroleum product suppliers, natural gas distributors and other large emitters to reduce unnecessary costs and regulatory burden.
Changes for Fuel Suppliers/Distributors
We are proposing to:
1. Remove mandatory reporting and verification for petroleum product supply and natural gas distribution for the emissions from fuel they sell.
• These proposed changes would have no impact on how the government tracks emissions from these sources. The provincial emissions inventory has always used data from the federal National Inventory Report for these emission sources and this data will continue to be used for tracking progress to Ontario's 2030 emission target.
• These reporters will still have to report on direct emissions (refining facilities and pipeline emissions) but would not have to continue reporting on emissions resulting from the consumption of the fuels they supply or distribute.
Changes for Other Large Emitters
We are proposing to:
1. Require third party verification of emissions reports to those reporters that may have compliance obligations under the Emissions Performance Standards program. This would include removing verification for some reporters, i.e, voluntary participants as defined in O. Reg. 390/18 for annual emissions reports.
2. Update the global warming potentials to the most recent international standards by adopting the IPCC AR4 Global Warming Potentials (GWP) for all emissions reporting methods.
Questions for Discussion
1. Should Ontario harmonize with the federal reporting requirements under the Greenhouse Gas Reporting Program (GHGRP) (e.g., mandatory methods, Global Warming)?
2. Should Ontario continue to require reporting of fuel distribution/supply reporting?
3. Should third party verification of emissions requirement be maintained for the voluntary participants as defined in O. Reg. 390/18?
Ontario is also considering adopting federal quantification methods to reduce reporting burden, i.e., not requiring reporting of duplicate or unnecessary data. In some cases, Ontario may still need to collect supplemental information in order to support a proposed Emissions Performance Standard program.
Actual proposed changes to quantification methods will be proposed later this fall for consultation.
April 30, 2019