Ontario’s Ministry of the Environment, Conservation and Parks (the Ministry) recently launched the Emissions Performance Program (EPP). The EPP takes proceeds collected from the Emissions Performance Standards (EPS) Program (see our earlier bulletin here) and allows large emitters to apply for funding to support greenhouse gas (GHG) reduction projects at eligible industrial facilities. The EPP aims to support covered industrial facilities to remain competitive and contribute to economic growth in Ontario.
This bulletin briefly summarizes key details of the EPP.
Overview. The EPP is a non-competitive program funded by compliance payments collected through the EPS. The EPP will fund capital and study-based projects. The available funds are derived from revenue collected through the purchase of compliance instruments, known as Excess Emissions Units (EEUs) under the EPS, by EPS participants to meet their compliance obligations. EPS participants eligible for the EPP can apply for a funding amount notionally equivalent to the amount they paid for EEUs. Eligible industrial facilities have been sent notification emails from the Ministry outlining their ‘notional allocation amount’ which is the maximum amount of funding they are eligible to receive.
Eligibility and eligible projects. Facilities eligible for the EPP: (i) are registered in the EPS Program; (ii) have purchased EEUs; and (iii) do not generate electricity as their primary industrial activity. Examples of project activities eligible for funding include, among others:
- stationary equipment retrofits for energy efficiency and fuel switching;
- mobile equipment retrofits for energy efficiency and fuel switching;
- building envelope upgrades (insulation, windows, doors);
- heat recovery;
- industrial process changes;
- carbon capture and storage; and
- clean electricity and low-carbon fuel production for own use.
Application for funds. Eligible applicants may apply for funding by submitting a project proposal through the Transfer Payment Ontario (TPON) portal, where EPP materials are available to organizations with a TPON account. Eligible applicants may then enter into a Transfer Payment Agreement (TPA) with the provincial government to access EPP funds. The Ministry noted that there are no funding deadlines for the EPP.
Stakeholder information sessions. The Ministry will hold webinars on July 9 and 16 with key stakeholders to provide more information on the EPP, including applications, process, and timelines. Interested stakeholders are encouraged to contact the EPP administrator for more information on the EPP and participation in the upcoming webinars.
For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.
*Special thanks to Anuja Purohit for her assistance in preparing this bulletin.
