January 15th, 2021 deadline for submitting comments regarding proposed changes to Ontario’s Emissions Performance Standards program approaching.

The Ontario Ministry of Environment, Conservation and Parks (MECP) is proposing amendments to the Ontario Performance Standards (EPS) program to transition away from the current federal Output-Based Pricing system (OBPS) for Greenhouse Gas (GHG) emissions.  Interested parties have until January 15, 2021 to submit comment to the MECP regarding these proposed changes.  Details of the proposal and submission of comments can be accessed via the following link:  https://ero.ontario.ca/notice/019-2813

A brief summary of the proposal and changes include:

• Ontario is proceeding upon the basis that compliance obligations under the EPS system will commence January 1, 2021. (No changes to reporting or obligations related to emissions released during calendar year 2020)

• Provisions to allow for partial year coverage of emissions instead of the full calendar year to align with the date of exemption from the federal fuel charge.

• Allow additional sectors to voluntarily opt-in to the EPS program. Facilities currently covered by the OBPS would be allowed to participate in the EPS program.

• Clarification of reporting methods for the steel sector using blast furnace gas or coke oven gas in electricity generation or cogeneration and fertilizer sector (for CO2captured and used in urea)

• Streamlining of emissions reporting in the steel sector (e.g. consolidate reporting for various furnaces)

• Assignment of a biomass adjustment factor of two percent of biomass CO2 emission to the emission performance standard for the pulp and paper sector

• The ability for a covered facility that uses the energy use standard to apply for a facility-based emissions intensity standard

In adopting the EPS system over the current federal OBPS the province anticipates that compliance costs for facilities associated with these proposed amendments will be lower. 

How can ORTECH help?

Our team includes professional engineers and climate science experts who can assist regulated facilities determine their compliance obligations under various carbon pricing systems including the current OBPS or federal fuel charge systems and the proposed EPS pricing system.  For facilities considering the voluntary opt-in provisions of the regulation ORTECH can provide assistance to ensure proper emission estimation techniques, documentation and reporting metrics are established.

By: Scott Manser