Harmonizing greenhouse gas reporting requirements to reduce burden
Regulation - LGIC
Bill or Act:
Environmental Protection Act
Summary of Decision:
Through our Made-In-Ontario Environment plan, we are working to address climate change and reduce our greenhouse gas emissions to 30 per cent below 2005 levels by 2030, a target that aligns with international commitments.
Our finalized Ontario emission performance standards for large, industrial emitters will make polluters accountable for their greenhouse gas emissions.
We have made changes to the Greenhouse Gas Emissions: Quantification, Reporting and Verification regulation (O. Reg. 390/18 or the Reporting Regulation) and the incorporated Guideline to harmonize with the federal government and reduce unnecessary costs and regulatory burden.
The amendments will:
1. Align the definition of "facility" under the Reporting Regulation with the facility definition under the federal Greenhouse Gas Reporting Program (GHGRP).
2. Align Ontario methods and requirements with the federal quantification methods and other requirements for facilities, where feasible. In some cases, Ontario requires certain parameters to be reported by covered facilities to support the Emissions Performance Standard (EPS) program that are in addition to what is required under the federal program.
3. Provide the ability for the director to require a revised GHG report from a covered facility under certain circumstances.
4. Delay verification of production parameters until Ontario's EPS is accepted by the federal government and the application of the federal Output-based Pricing System (OBPS) is removed from Ontario.
These amendments apply to the report for the 2019 emissions year, due in June 2020.
Analysis of Regulatory Impact:
The proposed regulatory amendments are not expected to result in added administrative costs to business. Instead, the proposed changes, such as harmonizing GHG reporting requirements with the federal government's requirements, are anticipated to reduce costs and administrative burden.
It is expected that there is a net decrease in administrative costs associated with the proposed changes.
November 20, 2019
Summary of Proposal:
We are proposing regulatory changes to Ontario's Greenhouse Gas (GHG) emissions reporting program to harmonize with the federal regulatory requirements. The amendments will reduce unnecessary costs and regulatory burden for reporters.
Proposed changes to greenhouse gas reporting
We are proposing changes to
the Greenhouse Gas Emissions: Quantification, Reporting and Verification regulation (O. Reg. 390/18 or Reporting Regulation)
the incorporated Guideline
We are proposing the following changes:
1. Aligning definition of facility with federal definition
We are proposing to align the definition of "facility" under the Reporting Regulation with the facility definition under the federal Greenhouse Gas Reporting Program (GHGRP).
2. Aligning with federal quantification methods
The quantification methods and other requirements for reporting GHG emissions under the Federal Output-Based Pricing System (OBPS) program and federal GHGRP program are different than those under the Ontario Reporting Regulation and Guideline.
We are proposing to align Ontario methods and requirements with the federal quantification methods and other requirements for facilities, where feasible. In some cases, Ontario is proposing to require certain parameters to be reported by covered facilities to support the Emissions Performance Standard (EPS) program that are additional to what is required under the federal program.
Overall, we expect harmonization with federal reporting requirements to reduce unnecessary costs and regulatory burden for covered facilities, while maintaining the quality of data reported to Ontario.
3. Ability for director to require a revised GHG report and verification
The Reporting Regulation includes circumstances under which a facility is required to submit a revised GHG report to the director. We are proposing the following circumstances under which the director may request a revised GHG report from a covered facility:
- The director feels that the Accredited Verification Body (AVB) that has verified the GHG report has a potential threat to the AVB's impartiality.
- Based on the emissions, production and other data submitted by the facility and verified by the AVB, the director has come to a different calculation of the Total Annual Emissions Limit (TAEL) or the verification amount in the GHG report.
The revised GHG report, verified by an AVB with no conflict of interest, will be required to be submitted to the director within 90 days of receiving the director's request being sent.
We propose to apply these amendments to the 2019 emissions year report due in June 2020.
Purpose of regulation
We are proposing these amendments to the GHG Reporting Regulation to:
reduce unnecessary costs
reduce regulatory burden
Financial Instruments Branch
40 St. Clair Avenue West
February 11, 2020