Regulation - LGIC
Regulatory amendments to clarify program requirements and improve program efficiency for Emissions Performance Standards (EPS) and GHG Reporting programs
Regulation Number(s):
O. Reg. 241/19
O. Reg. 390/18
O. Reg. 390/18
Instrument Type:
Regulation - LGIC
Bill or Act:
Environmental Protection Act
Summary of Decision:
The Emissions Performance Standards (EPS) program is Ontario's alternative to the federal Output-Based Pricing System for industrial emissions. On January 1, 2022, the EPS program took effect to regulate GHG emissions from large facilities in manufacturing, resource and electricity generation industries.
The EPS program is tailored to Ontario's environment and economy. It encourages industries to reduce their emissions, without driving away business and job creators.
Now that the first compliance period under the EPS program has been completed, the ministry has identified opportunities for improvement.
Ontario has made amendments to the EPS and GHG Reporting programs to:
• clarify program requirements.
• improve program implementation and administration.
• address fundamental changes in some Ontario industries.
Key amendments include:
1) Adding industrial activities
2) Changing the terminology for production parameters
3) Changing the Total Annual Emissions Limit determination
4) Assigning and revoking Baseline Emissions Intensities
5) Recognizing significant transformation in the steel sector
6) Clarifying applicability of some Methods
7) Expanding eligibility for Renewable Natural Gas
8) Addressing Temporary shutdowns
9) Clarifying GHG emissions to be reported
10) Other clarifying, technical or administrative changes
When these changes apply:
• The amended EPS regulation and amended EPS Methodology will apply immediately and be applicable for the 2023 compliance period.
• Most of the amended GHG Reporting Regulation and amended Guideline will apply immediately, and be applicable for the 2023 compliance period with the following exception:
o amendments related to removing a barrier to the use of renewable natural gas (RNG) in the EPS program will be applicable starting with the 2024 compliance period.
• For greater clarity, only the March 2024 versions of the EPS Methodology and the Guideline apply to the 2023 emissions year.
The EPS program is tailored to Ontario's environment and economy. It encourages industries to reduce their emissions, without driving away business and job creators.
Now that the first compliance period under the EPS program has been completed, the ministry has identified opportunities for improvement.
Ontario has made amendments to the EPS and GHG Reporting programs to:
• clarify program requirements.
• improve program implementation and administration.
• address fundamental changes in some Ontario industries.
Key amendments include:
1) Adding industrial activities
2) Changing the terminology for production parameters
3) Changing the Total Annual Emissions Limit determination
4) Assigning and revoking Baseline Emissions Intensities
5) Recognizing significant transformation in the steel sector
6) Clarifying applicability of some Methods
7) Expanding eligibility for Renewable Natural Gas
8) Addressing Temporary shutdowns
9) Clarifying GHG emissions to be reported
10) Other clarifying, technical or administrative changes
When these changes apply:
• The amended EPS regulation and amended EPS Methodology will apply immediately and be applicable for the 2023 compliance period.
• Most of the amended GHG Reporting Regulation and amended Guideline will apply immediately, and be applicable for the 2023 compliance period with the following exception:
o amendments related to removing a barrier to the use of renewable natural gas (RNG) in the EPS program will be applicable starting with the 2024 compliance period.
• For greater clarity, only the March 2024 versions of the EPS Methodology and the Guideline apply to the 2023 emissions year.
Analysis of Regulatory Impact:
The proposed amendments are not expected to cause additional compliance costs for affected facilities.
Several of the proposed amendments to the EPS and GHG reporting programs (for example, adding industries, removing a barrier to RNG) are expected to reduce regulatory burden for facilities that participate in the program.
Several of the proposed amendments to the EPS and GHG reporting programs (for example, adding industries, removing a barrier to RNG) are expected to reduce regulatory burden for facilities that participate in the program.
Further Information:
Link to Environmental Registry
O. Reg. 170/24: AMENDING O. REG. 241/19: GREENHOUSE GAS EMISSIONS PERFORMANCE STANDARDS
O. Reg. 171/24: AMENDING O. REG. 390/18: GREENHOUSE GAS EMISSIONS: QRV
GHG EPS and Methodology for Determination of TAEL March 2024
(Download Adobe Reader)
Guideline for QRV of GHG Emissions March 2024
(Download Adobe Reader)
Proposal Number:
23-MECP029
Posting Date:
November 22, 2023
Summary of Proposal:
N/A
Contact Address:
Melissa Ollevier
Phone number
647-248-1459
Email address
Melissa.Ollevier@ontario.ca
Phone number
647-248-1459
Email address
Melissa.Ollevier@ontario.ca
Effective Date:
April 16, 2024
Decision:
Approved