Emissions Performance Standards program
ON, Canada
Ontario EPS program reduces industrial greenhouse gas emissions
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateJanuary 01, 2023
- grant_single|closingDateJune 01, 2024
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Government of Ontario
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Emissions Performance Standards program provides funding to reduce greenhouse gas emissions at eligible industrial facilities in Ontario, supporting competitiveness and economic growth while adhering to stricter emissions standards. The maximum funding amount is not explicitly stated, but it reinvests compliance payments collected under the program.
grant_single_labels|projects
The Emissions Performance Standards program in Ontario offers funding to industrial facilities for projects aimed at reducing greenhouse gas emissions. This funding is reinvested from compliance payments collected through the regulation to aid in maintaining competitiveness and fostering economic growth.
- Projects that reduce greenhouse gas emissions at eligible industrial facilities.
grant_single_labels|admissibility
Eligibility for registration in the Emissions Performance Standards (EPS) program is determined by specific criteria related to emission reporting and industrial activities.
- The facility must meet the definition of an "EPS facility" as per O. Reg. 241/19.
- Owners or operators are required to report greenhouse gas emissions for 2014 or any subsequent year.
- The facility must have reported emissions of at least 50,000 tonnes of CO2 equivalent in one or more reporting years from 2014 onward.
- The primary activity at the facility must be an industrial activity listed in paragraphs 1 to 38 of Schedule 2 of O. Reg. 241/19.
- If opting in voluntarily, a facility must either:
- Have reported emissions of at least 10,000 tonnes of CO2 equivalent from 2014 onward and engage in an activity listed in Schedule 2.
- Expect to emit at least 10,000 tonnes of CO2 equivalent within three years following substantial completion of an eligible modification.
- For a brand-new facility, be expected to emit at least 10,000 tonnes of CO2 equivalent within three years following the first production.
- Facilities not currently included can request to be assessed and added to Schedule 2 under certain conditions.
grant_eligibility_criteria|who_can_apply
The Emissions Performance Standards (EPS) program requires registration from facilities in Ontario within certain industrial sectors that meet specific criteria outlined by the Environmental Protection Act. Entities who are required or may opt-in include those in the manufacturing, resource, and electricity generation industries that:1. Have reported greenhouse gas emissions of 50,000 tonnes or more in any given year since 2014, if they meet the primary industrial activities listed.2. May choose to opt-in if they reported at least 10,000 tonnes of emissions since 2014, have completed an eligible modification leading to significant emissions or are new facilities expecting to meet the emissions threshold within three years.3. Engage in an industrial activity assigned medium or high risk of carbon leakage and competitiveness impacts.Any such facilities must follow the steps outlined to register properly with the Ontario government and apply for federal exemptions where applicable.
grant_eligibility_criteria|who_cannot_apply
This grant program specifically targets large polluting facilities in certain industries and excludes others based on the defined criteria. The restrictions ensure the program supports facilities engaged in recognized industrial activities with significant emissions.
- Facilities not engaged in industrial activities listed in Schedule 2 of O. Reg. 241/19.
- Companies whose industrial activities are assessed as low risk for carbon leakage and competitiveness impacts.
- Facilities with emissions below 10,000 tonnes of CO2 equivalent without eligibility under the opt-in scenarios.
grant_eligibility_criteria|zone
The Emissions Performance Standards program is specific to Ontario, Canada, as it is administered by the Ministry of the Environment, Conservation and Parks of Ontario. Eligible companies are those operating within the geographical confines of Ontario.
- Businesses located in Ontario, Canada.
grant_single_labels|register
Here are the steps to apply for the Emissions Performance Standards program:
- Step 1: Submit a Notice of Intention (NOI)
- Email the Ministry of the Environment, Conservation and Parks at EPSApplications@Ontario.ca.
- Include your company legal name, facility name, all Greenhouse Gas (GHG) ID(s) assigned, and a facility boundaries map in PDF format.
- Step 2: Complete and submit a registration package
- After submitting your NOI, receive a registration package via email from the EPS registration team.
- Complete the EPS Facility Registration form and a Letter of Authorization template designating facility account and authorized representatives.
- Send the completed and signed registration package to EPSApplications@ontario.ca.
- Step 3: Receive registration confirmation
- Receive a Director’s notice confirming your registration along with an EPS facility registration certificate.
- Follow next steps provided by the ministry for compliance and exemption processes.
- Step 4: Submit required documents post-registration
- After receiving exemption from the federal fuel charge, provide copies of the ECCC statement and the CRA Endorsement Notice to EPSApplications@ontario.ca within 30 days.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- Facilities registered in the EPS program can apply for exemption from the federal fuel charge.
- Assigned GHG IDs must be included when submitting a Notice of Intention to register.
- Any change in ownership or operator requires specific notifications and actions from both the previous and new owners.
- Registrants must provide copies of the ECCC statement and CRA endorsement notice within 30 days of receipt.
- Compliance with annual requirements includes having the correct number of compliance instruments by December 15 to avoid additional obligations.
- Facilities can request the Ministry to assess their industrial activity for potential inclusion in Schedule 2 of the regulation.
- Facilities have the option to use emissions performance units (EPUs) and excess emissions units (EEUs) to meet compliance obligations, with detailed steps and deadlines outlined for transactions.
- Failure to meet compliance obligations could result in the cancellation of registration.
- Ontario is reinvesting compliance payments collected to further reduce greenhouse gas emissions at eligible industrial facilities.
- Facilities engaging in covered industrial activities are assessed for medium or high carbon leakage and competitiveness risks.
grant_single_labels|contact
1-888-217-3326
Apply to this program
Understanding Ontario's Emissions Performance Standards Program
The Emissions Performance Standards (EPS) program in Ontario is designed to regulate and reduce greenhouse gas emissions from large industrial polluters. It sets annual emissions limits for facilities, encouraging them to either lower their emissions or face financial penalties for exceeding the limits.
In-Depth Overview of Ontario's EPS Program and Its Significance
Ontario's Emissions Performance Standards (EPS) program is a crucial regulatory tool aimed at addressing industrial greenhouse gas emissions within the province. Established under O. Reg. 241/19 of the Environmental Protection Act, the program specifically targets large facilities in sectors such as manufacturing, resource extraction, and electricity generation. The EPS program was fully implemented as of January 1, 2022, marking a significant step in Ontario's commitment to combating climate change and promoting industrial accountability.
The primary goal of the EPS program is to encourage industries to adopt more sustainable practices by mandating strict emissions limits. These limits are progressively tightened each year, compelling companies to innovate or invest in cleaner technologies to stay within their prescribed emissions budgets. Facilities exceeding their emissions caps are required to compensate by purchasing excess emissions units (EEUs) or by leveraging emissions performance units (EPUs), which can be earned if their emissions fall below set thresholds. The system is designed not only to incentivize emissions reductions but also to deter 'carbon leakage,' a scenario where businesses might relocate to regions with less stringent environmental regulations.
The program's compliance cycle is meticulously structured, with key dates throughout the year. Facilities must submit their greenhouse gas (GHG) reports to the Ministry by June 1, followed by verification reports by September 1. By November 15, the Ministry allocates EPUs to eligible facilities, which must then ensure sufficient compliance instruments are present in their accounts by December 15 to avoid additional obligations or penalties. This rigorous schedule underscores the program's emphasis on accountability and transparency in emissions reporting.
For industries, participation in the EPS program entails registering as an EPS facility if they meet certain criteria, such as an emissions threshold of over 50,000 tonnes of CO2 equivalent. Facilities can also voluntarily opt into the program under specific conditions, such as after a significant modification that influences emissions. The registration process involves submitting a Notice of Intention and a comprehensive registration package, after which facilities that qualify can apply for exemption from the federal fuel charge for their operations, providing an added financial incentive.
An integral element of the EPS framework is the Total Annual Emissions Limit (TAEL), which facilities must calculate and report each year. This not only determines compliance obligations but also the qualification for emissions performance units. Ensuring accurate and verified reporting is critical, as it forms the basis for assessing whether a facility has met its emissions targets or needs to purchase additional compliance instruments. For new or modified facilities, or those undergoing ownership changes, the program outlines specific protocols to maintain continuity and compliance.
The financial mechanics of the EPS program are equally significant. Funds collected from compliance payments are reinvested back into industrial facilities to further encourage emissions reduction projects. This reinvestment aids facilities in staying competitive, thus aligning economic growth with environmental stewardship. The cost structure for purchasing EEUs also escalates annually, reinforcing the urgency and importance of reducing emissions within the stipulated guidelines.
Overall, Ontario's EPS program serves as a strategic measure to mitigate environmental impacts while fostering economic resilience. It provides a framework for industries to not only meet their immediate emissions reduction goals but also to plan long-term sustainability strategies. By balancing regulatory rigor with incentives, the EPS program positions Ontario as a leader in industrial emissions management.
