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LEHDER News

Ontario Government - Red Tape Challenge for Chemical Manufacturing

     Posted by LEHDER News on

Chemical Manufacturing Comments for Red Tape ChallengeThe Government of Ontario is soliciting feedback regarding regulations affecting the chemical manufacturing industry, based upon the Red Tape Challenge.  Comments are currently being received on 148 different regulations which affect this industry until September 30, 2017.  A report with the consultation findings will be issued on March 30, 2018.

This government initiative is intended to provide an avenue for stakeholders to provide input on existing regulations to assist with updating, improving or eliminating the regulations pertaining to the chemical manufacturing industry.

Consultation on the following regulatory categories is currently available:

Comments can be provided by selecting the category above; more information regarding this consultation is available at:

https://talks.ontario.ca/redtapechallenge/

If you do not work within this industry, the Ontario Government is still interested in comments you may have pertaining to any of the regulations listed so please feel free to participate.

For more information, please contact Marnie Freer.

Comment Period Open for Proposed Amendments to Cap and Trade Regulations

     Posted by LEHDER News on

Spring 2017 Proposed Amendments to Cap and TradeOn April 5, 2017, the proposed amendments to the Cap and Trade and Reporting Regulations was posted to the Environmental Registry.  The full post for this EBR post, Registry #013-0104 can be viewed here but an excerpt of the proposed amendments is provided below.

Proposed Amendments to the Cap and Trade Regulation

Changes being considered to the Cap and Trade regulation along with the incorporated Methodology include:

  • Changes to the methods for determining the number of allowances to be distributed free of charge to particular facilities in the pulp and paper, mineral wool insulation, used oil processing, and fuel ethanol sectors. The proposal is to move the particular facilities to emissions intensity/ product output benchmark approaches from distributions based on energy use or fixed historical emissions.

  • Updates to selected benchmarks or facility intensity in beer and industrial ethanol sectors to address emissions from additional sources (i.e., cogeneration);

  • Refinement of the method for determining the distribution of allowances free of charge to capped participants based on the amount used where that use differs from the indirect useful thermal energy (e.g., steam) imported;

  • Administrative amendments to improve administration and implementation of the program (e.g., address a situation where a facility becomes a mandatory participant after registering as a voluntary participant in a previous year).

Proposed Regulatory Amendments to the Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation (O. Reg. 143/16)

Changes being considered to the reporting regulation along with the incorporated Guideline include:

  • Requiring the reporting of emissions from the use of all the process fuels by the iron and steel producer, including emissions from the process fuel that is transferred off-site

  • Requiring capped participants, for whom the cost of carbon is not included in the price of fuels, to report all emissions from the combustion of fuels they receive. Natural gas distributors do not pass on the cost of carbon to capped participants because they are expected to bear the compliance obligation for those emissions. This would require capped participants to report emissions from both:
      • natural gas used at the capped facility; and
      • natural gas transferred offsite to a non-capped facility.

  • Clarifying the requirements for the reporting and verification of production data by capped participants, to support any application for free allowances. Clarification will apply only to the data that are the basis for the allocation of allowances.

Capped participants will also have an associated compliance obligation under the cap and trade program as a result of these changes under items 1 and 2 to the reporting regulation.

The proposed changes are included in the Proposed Amendments to the Cap and Trade and Reporting Regulations - Spring 2017 document provided below.

Proposed Amendments to the Cap and Trade and Reporting Regulations - Spring 2017 Proposed Amendments to the Cap and Trade and Reporting Regulations - Spring 2017 (261 KB)


Comment Period on Proposed Amendments

The 45 day comment period for these amendments is open until May 20, 2017.  Comments can be submitted directly to:

Eric Loi
Senior Engineer
Ministry of the Environment and Climate Change
Climate Change and Environmental Policy Division
Air Policy Instruments and Programs Design Branch
77 Wellesley Street West
Floor 10
Ferguson Block
Toronto Ontario M7A2T5

Phone: (416) 314-1700

Comments can also be submitted online at:

https://www.ebr.gov.on.ca/ERS-WEB-External/searchComment.do?actionType=add¬iceId=MTMyMTEz&statusId=MjAwNTIz¬iceHeaderIdString=MTMyMTM5

For additional information on Ontario's Cap and Trade Program, please contact Marnie Freer.

Ontario's Cap and Trade Auction Summary Results

     Posted by LEHDER News on

March 2017 Cap and Trade Auction ResultsOn March 22, 2017, the Ontario Ministry of the Environment and Climate Change (MOECC) conducted the first greenhouse gas (GHG) allowances auction. The auction included both current 2017 vintage allowances in addition to an advance auction of 2020 vintage allowances.

All of the current vintage allowances and 26% of the 2020 vintage allowances were purchased during the auction. The March 2017 Ontario Auction #1 Summary Results Report, including the list of participants and additional auction details, has been posted to the Government of Ontario’s site at:

https://www.ontario.ca/page/cap-and-trade-auction-allowances#section-0

The PDF documents have also been provided for you below.

March 2017 Cap and Trade Auction Summary Results (English) March 2017 Cap and Trade Auction Summary Results (English) (91 KB)


March 2017 Cap and Trade Auction Summary Results (French) March 2017 Cap and Trade Auction Summary Results (French) (92 KB)

For additional information on Ontario’s Cap and Trade Program, please contact Marnie Freer.

Ontario's First Cap and Trade Auction Scheduled for March 22, 2017

     Posted by LEHDER News on

Aird & Berlis article on Ontario Cap and Trade Auction, March 22, 2017On February 6, 2017, the Mondaq Business Briefing posted an article written by David Stevens, Partner with Aird & Berlis LLP, in regards to the forthcoming Ontario Cap and Trade Auction of GHG Allowances.  The full post can be viewed here; the article content is also provided for you below.

The Ontario Ministry of the Environment and Climate Change has released an Auction Notice for the Ontario Cap and Trade Program Auction of Greenhouse Gas Allowances to be held on March 22, 2017. This is the first public auction to be held. It follows a "practice auction" that was held earlier in January 2017 to help registered participants in the Cap and Trade program prepare for the official auctions.

As required by the Cap and Trade Program Regulation, the Auction Notice includes details about the upcoming auction, including:

  • Timing: The March 2017 Ontario Auction #1 is scheduled to take place on March 22, 2017 from 1:00 p.m. Eastern Time (ET) until 4:00 p.m. ET (the auction bidding window). Registered participants in the Cap and Trade program can access the online Auction Platform at that time.

  • Allowances Offered for Sale: Allowances offered during an auction are created under the Ontario Cap and Trade program. Allowances offered are for the current vintage budget year (2017) or future vintage budget year (2020), where 'vintage' refers to the year for which they are created. There will be approximately 25 million current vintage allowances offered (Current Auction), along with approximately 3 million 2020 vintage allowances (Advance Auction).

  • Auction Reserve Prices: The Auction Reserve Price is the minimum price at which allowances offered in the Current Auction and Advance Auction will be sold. Bids submitted with a bid price below the Auction Reserve Price will not be accepted. The Ontario Auction Reserve Price will be determined as the higher of the most-recently published California and Québec Annual Auction Reserve Price after applying the exchange rate established for the auction. Presently, the California Reserve Price is higher, at a value of US $13.57 (applicable to both Current and Advance Allowances). The actual Auction Reserve Prices that will apply will be displayed on the Auction Platform prior to the opening of the auction bidding window.

  • Auction Application Requirements and Instructions and Schedule: There are detailed requirements for parties to apply to participate in the auction process, and to establish the required accounts (see here). The deadline to apply to participate in the first auction is February 21, 2017.

  • Auction Procedures: Participants will be able to submit bids manually and upload bid schedules in a pre-defined Excel template in the Auction Platform during the scheduled 3-hour auction bidding window. Bidders submit bids in a single-round, sealed-bid auction format. Bid quantities can only be submitted in multiples of 1,000 allowances.

The Auction Summary Results Report will be released to the public on April 3, 2017. At the same time, the auction results will be available to qualified bidders. It will be interesting to compare the results in Ontario with the auction results seen for California and Quebec (discussed in earlier posts, here and here).

For more information in regards to Ontario's Cap and Trade Program, please contact Marnie Freer.

LEHDER 2017 Regulatory Reporting and Traning Calendars Available

     Posted by LEHDER News on

LEHDER 2016 CalendarsLEHDER is pleased to provide our clients with a Regulatory Reporting Calendar for important dates to remember for Ontario Reporting requirements.

Also available are LEHDER's 2017 in-class training calendars for both Alberta and Ontario. Additional information in regards to LEHDER's regulatory training capabilities are provided on the Regulatory Training page.

 Please feel free to download the documents from the links below.

LEHDER's regulatory training sessions occur in the spring and fall.  Additionally, LEHDER hosts webinars to provide updates to regulatory changes and updates.  To view the courses available in your region, please select the applicable category below.

For more information on LEHDER's regulatory training services, please contact Mark Roehler.

Recent EBR Postings - EASR & Cap and Trade Regulatory Decisions and the Air Contaminants Benchmarks (ACB) List

     Posted by LEHDER News on

Environmental RegistrySeveral important postings have been made to the Ontario Government's Environmental Registry (EBR) recently, including regulatory decisions on the Environmental Activity and Sector Registry (EASR) and Cap and Trade Program, in addition to the release of the Air Contaminants Benchmarks (ACB) List.

Environmental Activity and Sector Registry (EASR)

On September 26, 2016, the ministry posted a proposal for a regulation on the Environmental and Regulatory Registries that would require all but high risk and more complex activities with air and noise emissions to register in the Environmental Activity and Sector Registry (EASR).

On January 4, 2017, the regulatory decision was posted to the EBR (Registry # 012-8646) to prescribe the activities noted above for the purposes of subsection 20.21 (1) of the Environmental Protection Act (EPA). The new EASR regulation made under EPA is: O. Reg. 1/17: Registrations Under Part II.2 of the Act –Activities Requiring Assessment of Air Emissions.

It is anticipated that a French version of the regulation will be available to the public in 2017. In the interim for all inquiries in French please contact Doris Dumais at (416) 327-9466 or doris.dumais@ontario.ca.

Key elements of O. Reg. 1/17 include:

  • A list of sectors, defined by the North American Industry Classification System (NAICS) codes and activities that have been deemed higher-risk or more complex and therefore are not prescribed by this EASR regulation. These higher risk sectors and activities include, for example: chemical manufacturing, cement manufacturing, mining, land disposal of waste, processing of metals outdoors etc.The requirement that assessments of discharges of contaminants from a facility to air, including noise and odour emissions, be prepared prior to registration and prior to making any modifications to confirm compliance with environmental standards and regulation requirements. These reports must be signed and sealed by a licensed engineering practitioner.
  • Operation and maintenance procedures, complaints reporting/recording requirements and record-keeping requirements.
  • The requirement for prescribed activities currently operating under an Environmental Compliance Approval (ECA) to register under the Air Emissions EASR by January 31, 2027 or before making modifications to the facility or operation of the facility.The EASR publication incorporated by reference into the regulation that outlines limits and other mandatory requirements for facilities governed by the Air Emissions EASR regulation.

In general, the requirements set out in the Air Emissions EASR regulation are similar to the current environmental standards that have, to date, been implemented through the ECA process. The new EASR regulation will help provide more certainty for businesses and encourage growth, while protecting the environment and human health.

The ministry is also currently consulting on proposed amendments to O. Reg. 524/98 that would expand the current list of exemptions from section 9 of the EPA for low-risk activities/facilities (EBR # 012-8764). 

All supporting documents and additional information can be found on the EBR post for Registry #012-8646.

Cap and Trade Program

On December 28, 2016, the regulatory decision to proceed with amendments to the greenhouse gas cap and trade program was posted to the EBR (Registry # 012-8953).  The amendments include changes to the:

  • Cap and Trade Program Regulation (O. Reg. 144/16)
  • Methodology for Distribution of Ontario Emission Allowances Free of Charge
  • Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation (O. Reg. 143/16)
  • Guideline for Greenhouse Gas Emissions Reporting


To review the full list of amendments and associated documentation, please refer to the full EBR post for Registry #012-8953.

Air Contaminants Benchmarks (ACB) List 

On January 4, 2017, a notice  was posted (Registry #012-9165) that the Ministry of the Environment and Climate Change (MOECC) has prepared a document that compiles standards, guideline values and screening levels used to assess contaminants released to air. It serves as a single reference window and replaces the following documents:

  • Summary of Standards and Guidelines sorted by Chemical Abstracts Service (PIBS # 6569e01)
  • Summary of Standards and Guidelines sorted by Chemical Name (PIBS # 6569e01)
  • Jurisdictional Screening Level (JSL) List - A Screening Tool for Ontario Regulation 419 (PIBS #: 6547e)

The ACB List is intended for use primarily by an emitter who is required to prepare an Emission Summary and Dispersion Modelling (ESDM) report in accordance with Ontario’s Regulation 419/05 Air Pollution – Local Air Quality (“the Local Air Quality Regulation” or “the Regulation”) made under the Environmental Protection Act (EPA).

The ACB List includes the following benchmarks:

  • Benchmark 1 (B1) Values: Standards and guideline values
  • Benchmark 2 (B2) Values: Screening levels

Exceedence of a B1 value triggers specific actions under the Regulation. Exceedence of a B2 value triggers a toxicological assessment to determine the potential for an adverse effect.

The introduction of the ACB List is not a new policy
. The ACB List consolidates existing standards, guidelines and JSLs into one location.  Guidance on how to use the ACB List and the list itself are available through the ministry website at the link provided here
 

Gowlings WLG Article on Ontario Cap and Trade Program

     Posted by LEHDER News on

Gowlings WLG has posted a great article to provide some information in regards to Ontario's Cap and Trade Program, including training on the Cap and Trade Auction (webinars on December 6 and 8), and information regarding the regulatory amendments, carbon offsets and key dates for the Program.  The full article can be viewed by clicking on the link below.

EBR Proposal Notice and Comment Period for Amendments to the Ontario Cap and Trade Program

     Posted by LEHDER News on

ON Cap & Trade Regulatory Amendment Comment PeriodOn May 19, 2016, two regulations that form the backbone of the cap and trade program became law – the Cap and Trade Program Regulation (O. Reg. 144/16) which took effect July 1, 2016 and the Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation (O. Reg. 143/16) which takes effect January 1, 2017.

The Ministry is now proposing amendments to clarify policy, technical and administrative requirements of the Program. The amendments include changes to the:

  • Cap and Trade Program Regulation
  • Methodology for Distribution of Ontario Emission Allowances Free of Charge
  • Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation
  • Guideline for Greenhouse Gas Emissions Reporting

The full list of proposed regulatory changes can be viewed through the EBR Regulation Proposal Notice for EBR Registry #012-8953, available here.

Some of the key points to note include:

  • Addition of new reporting requirements for indirect emissions from imported Indirect Useful Thermal Energy (IUTE).
  • Provides opportunity for facilities with IUTE emissions to join the Cap and Trade Program as a voluntary participant.

The comment period for this Proposal Notice is only available until December 4, 2016.   

Comments can be submitted to:

Sheri Beaton
Project Manager
Ministry of the Environment and Climate Change
Climate Change and Environmental Policy Division
Air Policy Instruments and Programs Design Branch
77 Wellesley Street West
Floor 10
Ferguson Block
Toronto, Ontario
M7A 2T5
Phone: (416) 314-4826

Online via http://www.ebr.gov.on.ca/ERS-WEB-External/searchComment.do?actionType=add&noticeId=MTMwODQ5&statusId=MTk4MjEw&noticeHeaderIdString=MTMwODQ2

For more information in regards to Ontario’s Cap and Trade Program, please contact Marnie Freer.

TargetGHG Program Provides Funding Support For Large Final Emitters in Ontario

     Posted by LEHDER News on

Ontario Centres of Excellence TargetGHG ProgramThe Ontario Centres of Excellence has implemented the TargetGHG program to assist Large Final Emitters with reduction in greenhouse gases.

TargetGHG is helping Ontario meet its greenhouse gas emission reduction targets by encouraging large industrial plants adopt leading-edge technology and by supporting Ontario’s entrepreneurs in developing creative new solutions.

The program is supported by the Ontario government with $74 million in funding from its Ontario Green Investment Fund, which is dedicated to projects that reduce greenhouse gas emissions, increase energy efficiency, support cleantech innovation and drive job creation and economic development.

OCE’s TargetGHG for industrial emitters addresses two key issues:

  • the need to support the adoption of innovative technologies for emitters to meet upcoming greenhouse gas reduction targets, and

  • the need for solutions that will help industry meet more aggressive future GHG targets.

More information on the TargetGHG Program can be located at http://oce-ontario.org/target-ghg or contact Richard Worsfold at Richard.Worsfold@oce-ontario.org or (416) 459-1357.


MOECC Releases Reminder Notice to Ontario Cap and Trade Stakeholders - September 23, 2016

     Posted by LEHDER News on

MOECC Releases Remider Notice for Cap and Trade StakeholdersAs of today, there are only 68 days left to register in Ontario’s Cap and Trade Program.

Registration takes time to complete.

Registration is a two-part process. Part 2 cannot be completed until Part 1 is complete, submitted and approved by the Ministry. The time required to meet some of the requirements of registration, such as the notarization of documents, may be outside of your direct control. This should be taken into account when you are planning for your registration.

The Ministry highly recommends that you complete your registration as early as possible.

Ontario’s Cap and Trade Help Desk team is available to answer your registration related questions. Contact the help desk by email at CThelp@ontario.ca or toll free at 1-888-217-3326.

Please see below for more information and some useful links. 

Sincerely,

The Cap and Trade Help Desk team, on behalf of:

Tom Johnson
Project Manager – Implementation
Greenhouse Gas Emissions Reduction Office
Ministry of the Environment and Climate Change
40 St. Clair Ave W., 4th Floor
Toronto, Ontario  M4V 1M2
Tel: 416-325-8395

Who Should Register and When

You must register your facility in the Compliance Instrument Tracking System Service (CITSS) by November 30, 2016 if you:

  • Are a mandatory participant in the Cap and Trade program, or
  • Wish to participate in Ontario’s first Cap and Trade auction in March 2017.

If you have applied for emissions allowances, your registration must be complete (including submission of a voluntary participant form, if applicable) before you can receive your allowances.

In all cases, the Ministry highly recommends that you complete your registration as early as possible.

The Registration Process

CITSS is a management and tracking system for accounts and compliance instruments issued under the cap and trade program. You will require an account in CITSS in order to participate in Ontario auctions and obtain emission allowances.

Please note that registration is a two-part process and can take some time to complete.

Below is an overview of the two-part CITSS registration process.

Part 1 of the CITSS Registration Process – Recognition of Account Agent (RAA) or User Registration

The Recognition as an Account Agent process requires the applicant to electronically submit an application through CITSS and to mail in a hard copy of the application package consisting of forms and supplementary documents to support the verification of his/her identity. Once the hard copy package is received by the Director (Ontario Registrar), the application can be processed for approval.

You must complete Part 1 before you can complete Part 2.

Part 2 of the CITSS Registration Process – Participant Registration (PR) or Account Application

An approved account agent with a valid CITSS User ID must submit the Participant Registration (PR) application on behalf of a mandatory, voluntary, or market participant.  The PR process requires the applicant to electronically submit an application through CITSS and to mail in a hard copy application package with signed copies of forms and supporting documents to the Director (Ontario Registrar). 

The application requires the designation of Primary and Alternate Account Representatives, the addition of facilities when applicable and the disclosure of business relationships with other entities. Once the hard copy package is received by the Director (Ontario Registrar), the application can be processed for approval.

Additional Information

If you require more information and guidance on CITSS registration please visit the Ontario Cap and Trade website at:  https://www.ontario.ca/page/cap-and-trade-register-and-participate-citss

Alternatively you can also contact Ontario’s Cap and Trade Help Desk at:

Cap and Trade Helpdesk at CThelp@ontario.ca / 1-888-217-3326 (toll-free)

The Ontario Ministry of the Environment and Climate Change (MOECC) assumes no responsibility for errors or omissions in any of the information contained in this email. The MOECC makes no representation or warranty of any kind whatsoever with respect to this information. MOECC specifically disclaims any express or implied warranties related to the use of this information and all contents including, without limitation, warranties of non-infringement or fitness for any particular purpose.

In no event shall MOECC, the Province of Ontario and their respective officers, employees, servants or agents be liable for any failure to keep this information up to date, for errors or omissions, or for any damages (including without limitation, damages for loss of profits, business interruption, loss of information, or direct, indirect, incidental, special, consequential or punitive damages) arising out of or related.

For more information in regards to Ontario's Cap and Trade Program, please contact Marnie Freer.