Ontario Regulation 170/24 introduces amendments to Ontario Regulation 241/19 (Greenhouse Gas Emissions Performance Standards) under the Environmental Protection Act. The amendments aim to strengthen the regulatory framework for controlling greenhouse gas (GHG) emissions from facilities operating under the Emissions Performance Standards (EPS) program. Key changes include updates to definitions, compliance timelines, emissions calculations, trading restrictions, and new rules for determining annual emissions limits and baselines.

The regulation revises several definitions to align with Ontario’s GHG emissions reporting framework, ensuring consistency across terms like “activity component” and “EPS parameter.” A new term, “GHG ID,” is introduced to help track compliance at specific EPS facilities. Amendments to Section 4 provide flexibility for facilities undergoing modifications or entering new production phases, allowing them to meet emissions performance requirements in the year of modification or within the three subsequent years.

A notable addition is the prohibition in Part II.1, Section 8.3, which restricts trading, selling, and transferring compliance instruments to authorized entities, preventing exploitation and ensuring market integrity. Sections 12 and 12.1 detail the methods facilities must use to calculate their annual emissions limits, considering factors like industrial activities, baseline emissions intensity, and facility modifications. For facilities using specific methods like D, E, or G, baseline emissions intensity is determined based on notices from the Director, with default values applied if no baseline is established.

Enforcement mechanisms have also been strengthened, requiring facilities to submit verification statements confirming emissions data. Failure to submit accurate or timely verifications results in the Ministry of Environment substituting default emissions figures, potentially penalizing non-compliance. Subsections 14 (1) and 15 (1) specify the consequences of missing or incomplete verification statements, with October 15 of the year following the compliance period as the final submission deadline.

New provisions address ownership changes, stipulating that previous owners remain responsible for compliance obligations until facility registration is transferred or canceled. If ownership is transferred, any unresolved compliance obligations are passed to the new owner.

The regulation also expands the list of industrial sectors subject to the EPS program, adding sectors like cement and concrete product manufacturing, coating and engraving, and battery manufacturing. This extension demonstrates the government’s broader effort to regulate key emission-intensive industries.

Overall, Ontario Regulation 170/24 makes significant updates to the Greenhouse Gas Emissions Performance Standards, tightening rules around emissions baselines, verification, and trading of compliance instruments to ensure stricter oversight of GHG emissions and promote long-term reductions.

Ontario (170/24) May 4, 2024