Emissions Performance Standards program

Overview

Emissions performance standards are used to determine an emissions limit that industrial facilities must meet each year. The standards become stricter every year, requiring emitters to either:

• reduce their emissions
• pay for exceeding the limits

The Emissions Performance Standards Regulation (O. Reg. 241/19) under the Environmental Protection Act, regulates greenhouse gas emissions from large industrial facilities.

The program came into full effect on January 1, 2022, and is intended to:

• encourage the industrial sector to reduce greenhouse gas emissions
• minimize competitiveness impacts and carbon leakage – the risk of production leaving the province for other jurisdictions with less stringent climate policies

Starting January 1, 2022, only facilities that are registered in the EPS program will be eligible for exemption from the federal fuel charge. For Ontario facilities that were subject to the federal output-based pricing system (OPBS) prior to 2022, must comply with the OPBS regulation for the 2019, to 2021.

Learn more about our commitments to address climate change and reduce greenhouse gas emissions.

EPS facilities that must register

You are required by law to register your EPS facility in the Emissions Performance Standards program if it meets the definition of “EPS facility” and the following criteria under section 2 of O. Reg. 241/19:

• the owner or operator of the EPS facility was required to report the facility’s greenhouse gas emissions for 2014 or for any subsequent year
• the facility reported emissions of at least 50,000 tonnes or more of CO₂ equivalent in one or more reporting year from 2014 onward
• the primary activity at the facility is an industrial activity listed in paragraphs 1 to 38 of Schedule 2 of O. Reg. 241/19

If you meet the eligibility criteria listed, you are required to register in the year that you meet the requirements.

EPS facilities that may opt-in

You may choose to apply to register your EPS facility in the EPS program under section 4 of O. Reg. 241/19 if it meets the definition of “EPS facility” and fits one of the following criteria outlined in the following scenarios:

Reported a certain amount of emissions

The facility:

• reported emissions of at least 10,000 tonnes of CO₂ equivalent in one or more reporting year from 2014 onward
• is engaged in an industrial activity listed in Schedule 2 of O. Reg. 241/19

Substantially completed an eligible modification

The facility:

• is engaged in an industrial activity listed in Schedule 2 of O. Reg. 241/19
• is expected to emit at least 10,000 tonnes of CO₂ equivalent within three years following the substantial completion of an eligible modification

Brand new facility

The facility:

• was not engaged in an industrial activity listed in Schedule 2 of O. Reg. 241/19 before the date of first production
• is expected to emit at least 10,000 tonnes of CO₂ equivalent within three years following the year in which the date of first production occurs

Other facilities

Under the federal benchmark, the only facilities that may be covered under the EPS program are facilities whose industrial activities are assessed as a medium or high risk for:

• carbon leakage
• competitiveness impacts

The industrial activities currently covered by the EPS program, set out in Schedule 2 of O. Reg. 241/19, were previously determined to be at either a medium or high risk of carbon leakage and competitiveness impacts from carbon pollution pricing, based on our assessment approach.

If your facility’s industrial activity is not included in Schedule 2 of O. Reg. 241/19, it has not been assessed by the ministry for carbon leakage and competitiveness impacts. This means that your facility cannot be registered in the EPS program until we complete an assessment of its industrial activity.

Facilities eligible to have their industrial activity assessed for addition to Schedule 2 of O. Reg. 241/19

If your facility is engaged in an industrial activity that is not listed in Schedule 2 of O. Reg. 241/19, you may request that your facility’s industrial activity be added provided that the facility:

• meets the definition of “EPS facility”
• reported emissions of at least 10,000 tonnes of CO₂ equivalent in one or more reporting year from 2014 onward (or is expected to emit at least 10,000 tonnes of CO₂ equivalent within three years following the substantial completion of an eligible modification)
• engages in an industrial activity that may have either a medium or high risk of carbon leakage and competitiveness impacts from carbon pollution pricing, following assessment by the ministry

Request an assessment of your facility’s industrial activity

1. Email EPSApplications@ontario.ca to request an application template.
2. Complete the application and include:
   1. a statement that the application is complete, accurate and true to the best of the person’s knowledge
   2. additional details, if requested by the director
   3. a report prepared and signed by an independent third-party, where non-public information is being provided for the purpose of assessment
3. Submit the application and all documents to EPSApplications@ontario.ca with the subject line “GHGID XXXX –”

How we assess applications

Read the July 7, 2023 Environmental Registry of Ontario 019-7064 posting to learn how we will assess your facility’s industrial activity.

How to register your EPS facility

To register in Ontario’s Emissions Performance Standards program, as the owner or operator of an EPS facility, you must complete the following steps:

1. Submit a Notice of Intention (NOI) to register your facility
2. Complete and submit a registration package

Step 1: submit a Notice of Intention (NOI)

If you meet the required or optional registration criteria, you must submit a Notice of Intention to the Ministry of the Environment, Conservation and Parks.

To submit your Notice of Intention, please email EPSApplications@Ontario.ca with the following information:

• company legal name
• all Greenhouse Gas (GHG) ID(s) assigned to the facility, including those assigned to any sites that form part of the facility
• facility boundaries map in pdf format

Step 2: complete and submit a registration package

After you submit a Notice of Intention, a member of the Emissions Performance Standards registration team will provide you with a registration package and further instructions via email.

The registration package includes:

• an EPS Facility Registration form
• a Letter of Authorization template

You must complete and sign the registration package, then send a scanned copy to EPSApplications@ontario.ca.

Step 3: registration in Emissions Performance Standards program

If your registration package is approved, you will receive a Director’s notice confirming your registration, accompanying EPS facility registration certificate and next steps.

Registered facilities can then apply to the federal government for exemption from the federal fuel charge on the fuel used at the EPS facility. Email Environment and Climate Change Canada (ECCC) for more information on this process.

After registering your EPS facility

Submit additional information

Once you have received your exemption from the federal fuel charge from the federal government (see Step 3 above), all registered facilities are required under section 21.2 of O. Reg. 241/19 to provide copies of the following to the ministry within 30 days of receipt:

1. The statement provided by Environment and Climate Change Canada in respect of the facility that indicates that the facility is subject to a provincial output-based performance standards system relating to a provincial pricing mechanism for greenhouse gas emissions.
2. The notice of registration under subsection 64 (2) of the Greenhouse Gas Pollution Pricing Act (Canada) from the Minister of National Revenue setting out the effective date of registration of the owner or operator as a registered emitter in respect of the facility.

You must send the copies to us no later than 30 days after you receive them.

Email your copies of these documents to EPSApplications@ontario.ca with subject line: GHGID XXXX-ECCC statement & CRA notice.

Verification of GHG annual reports

Registered facilities, and those required to register, must have their annual greenhouse gas emissions reports verified. This includes the Total Annual Emissions Limit (TAEL) which is calculated using the applicable method(s) in the GHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit (the Methodology) listed in the table below.

Changes to registration information

You are required under section 8 of O. Reg. 241/19 to provide notification of any changes to your registration information no later than 30 days following the change.

To provide notification of changes to your registration, you may use your previous EPS Facility Registration Form and change only the applicable fields.  The revised form should be:

• completed on your computer
• printed
• signed by the account representatives (if applicable) and the authorized representative
• scanned

Once completed, the authorized representative must email a signed copy to EPSApplications@ontario.ca.

You may contact EPSApplications@ontario.ca for a copy of the EPS Facility Registration Form and a Tip Sheet on how to submit changes to registration information.

Notifying the federal government

You are also required to provide notification to the federal government when there is a change in EPS registration information pertaining to changes in the facility’s:

• ownership
• boundaries, including changes in sites
• name

Email ECCC for more information on this process.

If you are changing the account representative(s)

If you are changing the authorized representative or adding or removing an account representative(s), in addition to revising the EPS Facility Registration Form, you must also provide an updated Letter of Authorization confirming that the new individual has the authority to act on behalf of the owner or operator. Once completed, the authorized representative must email a signed copy of the Letter of Authorization with the revised form to EPSApplications@ontario.ca.

Email EPSApplications@ontario.ca for a copy of the Letter of Authorization template or for more information.

Continuation of registration when there is a change in owner or operator

If there has been a change in ownership of a registered EPS facility, both the previous owner and the new owner have to comply with section 6 of O. Reg. 241/19 by taking the following actions within 30 days of the change in ownership: 

• previous owner must notify the Director of the change in ownership via EPSApplications@ontario.ca
• new owner must apply to continue the registration of the facility if:
  • they continue to engage in an in industrial activity listed under Schedule 2
  • the acquisition of the facility does not constitute a change to the composition of sites that form another registered EPS facility they own

If you are the new owner or operator of an EPS facility that must continue the -registration of an EPS facility, email EPSApplications@ontario.ca to request a continuation of registration package.

A member of the Emissions Performance Standards registration team will provide you with the package, a tip sheet and further instructions via email.

The package includes:

• an EPS Continuation of Registration form
• a Letter of Authorization template

The EPS Facility Continuation of Registration Form should be:

• completed on your computer
• printed
• signed by the new account representatives (if applicable) and the authorized representative
• scanned

Once completed, the authorized representative must email a signed copy to EPSApplications@ontario.ca.

To register or apply to register a facility that is not already registered in the Emissions Performance Standards program, you must follow the process outlined above under “How to register your EPS facility”.

Cancellation of registration

You may request your facility’s registration in the EPS program to be cancelled if one of the following circumstances applies:

• all industrial activities engaged in at the facility have permanently ceased
• you notified us that no industrial activities will be engaged in at the facility for at least one year
• the reporting amount in respect of the facility was less than 10,000 tonnes of CO₂e for three consecutive years
• each production parameter in respect of the facility was zero for five consecutive years

Note: A facility whose registration was cancelled as a result of a request described above will only be able to apply to register again if there is a change in ownership.
In addition, the Director will cancel an EPS facility registration if one of the following circumstances applies:

• the facility fails to meet registration requirements
• the verified TAEL is zero for two consecutive years
• the registration was not continued after a change in ownership

For more information on cancellation, refer to Section 8 of O. Reg. 241/19 or email EPSApplications@ontario.ca.

For more information

If you have questions about Ontario’s Emissions Performance Standards program, contact the EPS Program Help Desk:

• Toll-free: 1-888-217-3326
• Email: EPShelp@ontario.ca