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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.


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.

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.


Ontario's Cap and Trade Program - Upcoming Deadlines and Training Sessions

     Posted by LEHDER News on

Ontario's Cap and Trade ProgramOn May 26, 2016, the Province of Ontario finalized the rules for its new Cap and Trade program with the posting of the final Cap and Trade Program Regulation (O. Reg. 144) and the Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation O. Reg. 143).  More information on these Regulations can be viewed via an earlier blog post here.

There are several approaching deadlines in addition to the Ministry’s scheduled information and training sessions for stakeholders.

  • September 1, 2016 – Free Allowance Application Deadline.  Free Allowances must be calculated in accordance with the MOECC guidance document Methodology for the Distribution of Ontario Emission Allowances Free of Charge (attached).  The allowance application form is available via email request from CTApplications@ontario.ca.  The MOECC is offering training sessions related to the application process (see below).
  • Training Sessions – Emission Allowances Applications – This session will provide an overview of the application form for free of charge emission allowances.
    • Webinars will be held between 10:00AM and 12:00PM (EDT) on the following dates:
      • Tuesday, July 19
      • Wednesday, July 27
      • Monday, August 15
    • Register by submitting the following information ASAP by email to Stephanie.Liu@ontario.ca
      • First & last name
      • Company name & position
      • Contact info – email & phone number
      • Preferred session date
  • November 30, 2016 – Deadline for registration for the Compliance Instruments Tracking System Service (CITSS), the online system the MOECC will be utilizing for the Cap and Trade Program; registration opens in early August.  A facility is required to register under O. Reg. 144/16 as a mandatory participant if the O. Reg. 452 reporting threshold of  >25,000 tonnes CO2 equivalent (CO2e) was met for the 2015 reporting year.  O. Reg. 143/16 allows facilities emitting between 10,000 – 25,000 CO2e to opt-in to the program as voluntary participants.  Training on the CITSS system will be available (see below). 
  • Training Sessions – CITSS – The MOECC is offering a 3-module webinar training program and recommends at least 2 personnel from your company attend.  However, the registration deadline for the sessions was July 12. LEHDER anticipates registrations will still be accepted however there were limited session spaces available.
    • Module 1 – CITSS user registration, system navigation, recognition as an Account Agent.
      • Session dates (13:00-15:00 EDT) – July 19, July 26, August 9
    • Module 2 – CITSS participant registration, account application, managing information within the system.
      • Session dates (13:00-15:00 EDT) – July 20, July 27, August 10
    • Module 3 – Corporate Associations – how to disclose your business relationships with other entities (ongoing requirement for CITSS) and complete the disclosure form.
      • Session dates (13:00-15:00 EDT) – July 21, July 28, August 11
    • Register by submitting the following information ASAP by email to tyler.hunt@ontario.ca
      • First & last name
      • Company name & position
      • Contact info – email & phone number (work)
      • Preferred session dates for each module

LEHDER is pleased to provide support to our clients and assist with your application process through the implementation of Ontario’s Cap and Trade Program. For more information, please contact Marnie Freer.

Ontario's Cap and Trade Program - Regulatory Overview of O. Reg. 144/16 and O. Reg 143/16

     Posted by LEHDER News on

ON Cap and Trade RegulationsOn May 19th the MOECC passed two new regulations which introduced the cap and trade program in Ontario. These two regulations, which were passed under the Climate Change Mitigation and Low-carbon Economy Act, are O. Reg. 143/16 and O. Reg. 144/16.

The Cap and Trade Program comes into effect on July 1, 2016 and acts as the framework for execution of the Cap and Trade Program in Ontario. Its purpose is to outline aspects such as registration of activities, the Program’s distribution of free allowances, and the rules that govern the auction process.  O. Reg. 144/16 The Cap and Trade Program Regulation also addresses:

  • Strategic reserve of allowances;

  • Allocation methodology;

  • Holding limits;

  • Buying credits; and

  • Market rules.

A methodology document, Methodology for the Distribution of Ontario Emission Allowances Free of Charge, dated May 16, 2016 was also released to support this Regulation. A copy of this document is provided below. 

O. Reg. 144/16 Guidance Document O. Reg. 144/16 Guidance Document (308 KB)

The cap covers approximately 82% of province-wide GHG emissions.  The majority of the GHG emissions not covered under this Program are from fugitive, agriculture, and waste management GHG sources. 

The second Regulation introduced is O. Reg. 143/16 - Quantification, Reporting and Verification of Greenhouse Gas Emissions.   This Regulation replaces the current O. Reg. 452/09 for the reporting of greenhouse gas emissions in Ontario and comes into effect on January 1, 2017.

This new regulation does not introduce any substantial policy changes from the existing reporting requirements under O. Reg. 452 however, some refinements have been made.  The newest guideline providing the reporting details to support this Regulation, titled Guideline for Quantification, Reporting and Verification of Greenhouse Gas Emissions Effective January 2017 was issued on May 17, 2016.  A copy of this document is provided below.

O. Reg. 143/16 Guidance Document O. Reg. 143/16 Guidance Document (1481 KB)

A facility is required to register under O. Reg. 144/16 as a mandatory participant if the O. Reg. 452 reporting threshold of >25,000 tonnes CO2 equivalent (CO2e) was met for the 2015 reporting year.  O. Reg. 143/16 allows facilities emitting between 10,000 – 25,000 CO2e to opt-in to the program as voluntary participants.  If required to register as a mandatory participant, the registration deadline is November 30, 2016. In subsequent years, the deadline for registration varies dependent upon several factors.  Please refer to Part IV, sections 21-24 of the Regulation for further information. The first compliance period of the Program is 2017-2020.

The application for allowances under O. Reg. 144/16 is due September 1 of each year. The MOECC will provide training in regards to registering for the Program and how to apply for allowances before this date.  Information regarding the allowances allotted and what can be offered for auction is expected to be provided by the end of 2016.

The process of applying for free allowances will occur each year however, the available free allowances will be on a sliding cap, which for combustion emission sources (without biomass adjustment) will decrease at a rate of 4.57% yearly. The purpose of this cap decline is to require facilities to gradually reduce GHG emissions, purchase allowances from the government or seek allowances or credits on the carbon market.

Free allowances provided to emitters will be distributed in different ways based upon the processes involved.  The current guidance provides five methodologies for determining allocations of free allowances.  A facility may employ more than one methodology. The preferred method employs product output benchmarks which will be used for industries/activities listed in Tables 1a/b/c of the O. Reg. 143/16 Guidance document. Energy use-based methods, historical data and allowances based upon previous annual emissions are other methods which can be used to calculate allowances. There will also be allowances for those that buy steam as a method of offsetting the upstream costs that cap and trade will introduce.

Quick Links

For additional information please refer to the Regulations and guidance materials provided below:

O. Reg. 144/16 The Cap and Trade Regulation

O. Reg. 143/16 - Quantification, Reporting and Verification of Greenhouse Gas Emissions

O. Reg. 143/16 Guidance Document O. Reg. 143/16 Guidance Document (1481 KB)

O. Reg. 144/16 Guidance Document O. Reg. 144/16 Guidance Document (308 KB)

For more information in regards to the Cap and Trade Program Regulations and Guidance documents, please contact Marnie Freer.