Ontario Regulation 171/24, enacted under the Environmental Protection Act, introduces amendments to Ontario Regulation 390/18 regarding greenhouse gas (GHG) emissions quantification, reporting, and verification. The regulation aims to improve transparency, accountability, and compliance concerning GHG emissions from industrial facilities in Ontario.

One of the key updates includes the introduction of several new definitions, which broaden the understanding of terms relevant to the regulation. The term “activity component” refers to various inputs and outputs in industrial activities, such as raw materials and energy. An “EPS parameter” is defined as a measurable property related to an activity component, which includes mass and volume. Additionally, a “temporary shutdown period” is now recognized, indicating a defined time frame during which a facility’s operations are halted under specific conditions. The regulation also introduces “renewable natural gas” (RNG), which refers to gas derived from biomass that has been integrated into Ontario’s natural gas pipeline. Notably, the definition of “reporting amount” has been modified to exclude carbon dioxide emissions resulting from biomass combustion.

The regulation establishes provisions allowing facility owners or operators to request written notifications for a temporary shutdown period. If a facility experiences at least 180 consecutive days of zero emissions for every EPS parameter in the previous year, the Director may grant this request. However, there are limitations; owners and operators cannot receive more than two notifications within five years or one notification within two years.

The revised regulation also clarifies the duties of facility operators regarding GHG quantification and reporting. Facilities that are not required to submit reports under previous sections must quantify their GHG emissions if they exceed 10,000 tonnes of CO2 equivalent (CO2e) per year. This requirement for quantifying emissions applies even if the expected reporting amount is less than 10,000 tonnes during the first year of the registration period. Subsequent annual reports must include emissions data and quantifications of EPS parameters.

Additionally, a new formula for calculating verification amounts has been introduced, clarifying the components and methodology for determining emissions. This formula enables a more accurate reflection of a facility’s environmental impact, incorporating a new variable concerning renewable natural gas.

New requirements also stipulate that reports containing EPS parameters and other specified data must be verified by an accredited verification body. This verification process includes the submission of a verification statement and report by September 1 of the reporting year. The regulation outlines specific verification conclusions based on the assurance level regarding material discrepancies in EPS parameters.

Ontario (171/24) May 4, 2024