August 2022 – Resilient LLP (formerly DeMarco Allan LLP)

Ontario Proposes Changes to Emissions Performance Standards Program

29 August 2022 No Comments By DT Vollmer

Ontario’s Ministry of the Environment, Conservation and Parks (the Ministry) has launched public consultations on proposed regulatory amendments for the Emissions Performance Standards (EPS) program. The proposed changes are meant to ensure that the EPS program meets the updated benchmark under the Greenhouse Gas Pollution Pricing Act (the Act) set by the federal government for 2023-2030 (see our earlier bulletin on the Ministry’s prior EPS consultation here) as the current EPS program only applies to 2022. This bulletin briefly summarizes key proposed changes and provides important information on stakeholder participation in the consultation. Carbon Price. The Ministry is proposing to align the EPS program and the price of excess emissions units (EEUs) with the minimum carbon price set out in the updated federal benchmark ($65 for the 2023 compliance period rising to $170 for the 2030 compliance period). Program Scope. The Ministry is proposing to add the following sectors represented by the North American Industrial Classification System (NAICS) to the list of covered industrial activities based on a preliminary assessment of carbon leakage and competitiveness: Fruit and vegetable preserving and specialty food manufacturing; Meat product manufacturing; Beverage manufacturing; Converted paper product manufacturing; Plastic product manufacturing; Rubber product manufacturing; Forging and stamping; Spring and wire product manufacturing; Machine shops, turned product, and screw, nut, and bolt manufacturing; Engine, turbine and power transmission equipment manufacturing; Other general-purpose machinery manufacturing; Aerospace product and parts manufacturing; Office furniture (including fixtures) manufacturing; Other miscellaneous manufacturing; and Dairy product manufacturing. Registration and Cessation of Coverage. The Ministry is proposing to allow EPS facilities that expect to emit at least 10,000 tCO2e/year within three years following a major retrofit or expansion to apply to register in the EPS program as soon as production has started to increase. The Ministry is also proposing to facilitate a pathway for…

Natural Resources Canada Launches Public Engagement on Canada Green Buildings Strategy

18 August 2022 No Comments By DT Vollmer

The Minister of Natural Resources (the Minister) yesterday announced the launching of a public engagement process for the proposed Canada Green Buildings Strategy (the Strategy). The Strategy will aim to mobilize national action to reduce emissions by 37 percent from 2005 by 2030 and create a net-zero-emissions buildings sector by 2050. Natural Resources Canada (NRCan) has also published a companion discussion paper outlining the scope and key themes of the proposed Strategy (the Discussion Paper). This bulletin briefly summarizes the Discussion Paper and provides important details regarding the public engagement process. The Minister’s announcement noted that the Strategy will focus on (i) increasing the rate of building retrofits, (ii) ensuring buildings are resilient and net-zero-ready from the start, and (iii) transforming space and water heating. In addition, the Strategy will be backed by a $150 million commitment made in Canada’s Emissions Reduction Plan (read our earlier bulletin here). The Discussion Paper provides the following three potential outcomes for the Strategy to reach the net-zero target for Canada’s building sector: Build net-zero carbon and climate-resilient from the start. The Discussion Paper provides that Canada must ensure that new buildings achieve the highest levels of energy, carbon performance, and climate resiliency. To achieve this, all new buildings must (i) be net-zero carbon-ready no later than 2032 and (ii) conform to the latest applicable codes, standards, and guidelines for climate resilience no later than 2030. Increase the rate of deep, climate-resilient building retrofits. The Discussion Paper provides that the majority of buildings will still be in use in 30 years and that this will require retrofitting all existing buildings and taking advantage of joint opportunities for resiliency upgrades. The Strategy is likely to promote the deep retrofit rate reaching 3-5 percent of buildings annually by 2025, with applicable codes, standards, and guidelines for climate-resilient retrofits to be referenced in building…

President Biden Signs Inflation Reduction Act

16 August 2022 No Comments By DT Vollmer

The United States has just passed arguably its most significant and meaningful legislative instrument on climate change and clean energy. It is intended to have positive implications for climate and clean energy markets around the globe. On Sunday, August 8, 2022, the US Senate passed the Inflation Reduction Act of 2022 (the Act). The Act was then passed by the House of Representatives on Friday, August 12, 2022, and President Biden signed it into law today (Tuesday, August 16, 2022). The Act represents a central pillar of President Biden’s policy agenda and is extremely ambitious in scope, with significant implications for healthcare, taxes, and climate change. It authorizes approximately US$430 billion in spending, with approximately US$369 billion of that sum directed to clean energy and addressing climate change. This bulletin highlights the central climate and energy provisions of the Act. It is noteworthy that Senate Democrats estimate that the Act will raise US$739 billion in new revenue through measures such as increasing the IRS’s enforcement of tax evasion, and a new 15% minimum tax rate applicable to corporations with profits of $1 billion or more. These new revenues are intended to more than offset the expenses resulting from new programs, resulting in a projected reduction in the federal government’s deficit. The Senate was the critical hurdle for the Act, with approval remaining in doubt until its final passing by a vote of 51-50 (along strict party lines with Vice President Harris casting the 51st and tie-breaking vote). Senate Democrats indicate that the climate change provisions of the Act will result in a 40 percent reduction in carbon emissions by 2030 compared to 2005 levels when fully implemented. While this falls short of America’s updated Paris Target of a 50-52% reduction from 2005 GHG emissions by 2030, it constitutes meaningful progress toward that goal. The climate and energy portions…