Regulation - Minister
Interim Direction of Proceeds from Clean Energy Credit Sales
Regulation Number(s):
Instrument Type:
Regulation - Minister
Bill or Act:
Electricity Act, 1998
Summary of Decision:
Ontario Regulation 39/23 has been amended to direct the Independent Electricity System Operator (IESO) and Ontario Power Generation (OPG) to hold net proceeds from the sale of clean energy credits (CECs) and is required for these organizations to meet their accounting requirements for the 2023 calendar year. This is an interim measure until the Future Clean Electricity Fund (FCEF) is established.
Analysis of Regulatory Impact:
No new administrative costs are expected for business under the regulation. The regulation affects only the Independent Electricity System Operator and Ontario Power Generation.
Further Information:
Ontario’s Clean Energy Credit program
Electricity Act, 1998, S.O. 1998, c. 15, Sched. A., PART II.1
O. Reg. 39/23: CLEAN ENERGY CREDITS
Proposal Number:
24-ENDM001
Posting Date:
Summary of Proposal:
In March 2023 Ontario launched a Clean Energy Credit (CEC) registry to leverage its world-class clean electricity grid to boost competitiveness and attract jobs by helping businesses meet their environmental and sustainability goals.
A CEC registry provides businesses with a tool to meet these goals by demonstrating that their electricity has been sourced from clean resources, such as nuclear power, hydroelectric, wind, solar, and bioenergy.
The registry was enabled through amendment to the Electricity Act, 1998 (the Act). Under the current statutory framework, to facilitate a valid transfer and retirement of CECs, buyers must register on the CEC registry and sellers are required to submit information about environmental attributes.
The amendments to the Electricity Act, 1998 also state that the Independent Electricity System Operator (IESO) and Ontario Power Generation (OPG) shall apply proceeds from transfer of clean energy credits in a manner specified by regulation.
Proceeds from the sale of CECs will be directed to the government's Future Clean Electricity Fund (FCEF) but until the FCEF is established, this regulatory amendment will require IESO to OPG to hold onto net proceeds from their sale of CECs.
The FCEF will help keep costs down for electricity ratepayers by supporting the development of new clean electricity projects as the province strengthens our grid to meet the demands of a growing population and economy, as well as the electrification of transportation and industry.
The Future Clean Electricity Fund will help to preserve and grow the province's clean energy advantage and help attract new investments in electric vehicle and battery manufacturing, clean steel and other sectors.
A CEC registry provides businesses with a tool to meet these goals by demonstrating that their electricity has been sourced from clean resources, such as nuclear power, hydroelectric, wind, solar, and bioenergy.
The registry was enabled through amendment to the Electricity Act, 1998 (the Act). Under the current statutory framework, to facilitate a valid transfer and retirement of CECs, buyers must register on the CEC registry and sellers are required to submit information about environmental attributes.
The amendments to the Electricity Act, 1998 also state that the Independent Electricity System Operator (IESO) and Ontario Power Generation (OPG) shall apply proceeds from transfer of clean energy credits in a manner specified by regulation.
Proceeds from the sale of CECs will be directed to the government's Future Clean Electricity Fund (FCEF) but until the FCEF is established, this regulatory amendment will require IESO to OPG to hold onto net proceeds from their sale of CECs.
The FCEF will help keep costs down for electricity ratepayers by supporting the development of new clean electricity projects as the province strengthens our grid to meet the demands of a growing population and economy, as well as the electrification of transportation and industry.
The Future Clean Electricity Fund will help to preserve and grow the province's clean energy advantage and help attract new investments in electric vehicle and battery manufacturing, clean steel and other sectors.
Contact Address:
5th Floor, 77 Grenville St., Toronto, ON M7A 2C1
Effective Date:
December 27, 2023
Decision:
Approved