On December 1, Ontario issued O. Reg. 452/09 (the “Regulation”) under the Ontario Environmental Protection Act, which requires large emitters to report their greenhouse gas (GHG) emissions to the Ministry of Environment (MOE). The purpose of the regulation is to provide MOE with better data about the province’s emissions levels, while supporting the implementation of a cap-and-trade program in Ontario that will eventually link to other North American trading systems. The Regulation, which applies to 26 types of facilities, requires the following:
reporting of specified GHG data by all facilities that emit 25,000 tonnes of carbon dioxide equivalent (CO2e) or more per year;
annual reporting of GHG emissions, starting with 2010 emissions;
mandatory use of identified standard quantification methods to quantify emissions starting with 2011 emissions;
flexibility to use the best alternative quantification methods for 2010 emissions;
annual third-party verification of emissions, beginning with 2011 emissions;
emission reports to be submitted on June 1 starting with 2010 emissions in 2011; and
verification to be completed by September 1 starting with 2011 emissions in 2012.
The delay of third party verification until the 2011 reporting year is intended to allow the required professional services capacity to grow in order to meet demand in the province. The flexibility to use best alternative verification methods in 2010 is also intended to smooth the transition to standardized reporting requirements in 2011.
The Regulation was based significantly on the approach set out by the Western Climate Initiative and the September 22, 2009 EPA ruling on GHG reporting. With respect to biomass, the Regulation allows regulated emitters to deduct up to 15,000 tonnes of carbon dioxide generated from a facility through the combustion of biomass based on the theory that the combustion of biomass, which draws CO2 from the atmosphere as it grows, is carbon neutral. In contrast, BC’s new reporting regulation provides that all carbon dioxide from wood biomass, or the wood biomass component of mixed fuels, is not to be included in the calculation of GHG inventories.
The MOE has also issued a technical Guideline for Greenhouse Gas Emissions Reporting, which details standard quantification methods and best alternative quantification methods.
A copy of the Regulation is available in the Links on this site.