Resilient LLP (formerly DeMarco Allan LLP)
Tag

Ontario

Browsing

Ontario Court of Appeal Allows Appeal in Youth Climate Change Case

No Comments By

The Court of Appeal for Ontario (ONCA) today released its unanimous decision (the Decision) on an appeal of the dismissal of a youth-led constitutional challenge of Ontario’s emissions target (see our earlier bulletin here). The ONCA allowed the appeal, determining that the Ontario Superior Court (ONSC) application judge erred in characterizing the case as a positive rights case and remitted it to the ONSC for reconsideration. The case is the first in Canada to consider whether a government’s approach to climate change can violate the Canadian Charter of Rights and Freedoms (the Charter). This bulletin briefly provides key background details of the case and the main findings of the Decision.   Background. The appellants, seven Ontario youths, some of whom are Indigenous, brought an application for (i) a declaration that Ontario’s 30% reduction of greenhouse gas (GHG) emissions target (the Target) under section 3(1) of the Cap and Trade Cancellation Act, 2018 (the CTCA) – implemented through Ontario’s “A Made-in-Ontario Environmental Plan” (the Plan) – and section 16 of the CTCA, repealing Ontario’s Cap-and-Trade system, were unconstitutional as they violated their rights under sections 7 and 15 of the Charter, and (ii) an order declaring their Charter rights have been violated and requiring Ontario to set a science-based emissions reduction target and to revise the Plan in accordance with international standards. The application judge dismissed the application. While the judge found the issue of the appellants’ sections 7 and 15 Charter rights justiciable, she characterized it as a positive rights claim and concluded that any deprivation of life or security of the person under section 7 was not contrary to fundamental justice, and that section 15 did not impose a positive duty on Ontario to act against climate change.   The Decision. The following is a brief overview of the ONCA’s main findings: The application judge erred in her analysis of the case as…

Read More
By

Ontario Launches Emissions Performance Program

No Comments By

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…

Read More
By

Ontario Publishes New Draft Regulations on Corporate Power Purchase Agreements

No Comments By

Ontario’s Ministry of Energy and Natural Resources (the Ministry) has announced new draft amendments (the Proposed Amendments) to O. Reg. 429/04, Adjustments Under Section 25.33 of the Act (the Regulations). The Regulations establish the global adjustment (GA) fees Ontario’s large commercial electricity consumers must pay to fund the cost of non-wholesale market electricity contracts pursuant to section 25.33 of the Electricity Act, 1998 (the Act). The Proposed Amendments are based on feedback received from stakeholders during the consultation held in late 2023. The anticipated effective date for the Proposed Amendments is May 1, 2025.   This bulletin briefly summarizes the Proposed Amendments and key information.   Background. The Independent Electricity System Operator (IESO) began procuring new clean electricity resources in 2023 as directed by the province’s Powering Ontario’s Growth plan. The IESO initiated electricity capacity resource procurement in 2023 and plans to start electricity energy resource procurement in 2024. Key objectives. The Proposed Amendments seek to support the growth in procurement of new clean generation in the province. This is done by allowing Industrial Conservation Initiative (ICI) Class A market participants to offset their facility’s demand in the top five peak hours of a base period for settlement purposes by entering into power purchase agreements (PPAs) with non-emitting generation facilities that are not connected behind the facility’s meter.   Eligible technologies. The types of eligible technologies under the Proposed Amendments are wind, solar, hydroelectric, and biofuel. In making the announcement, the Ministry stated that it recognizes the interest in pairing these technologies with energy storage and small modular reactors (SMRs), but deferred inclusion of these additional technologies due to implementation complexities. Energy storage resources are critical to a cost-effective, safe, clean, and reliable electricity grid, and the Ministry may wish to consider expediting the eligibility of energy storage (particularly battery electric storage) under the Proposed Amendments.   Stakeholder feedback. Interested stakeholders are encouraged to submit feedback on the Proposed Amendments by June…

Read More
By

Ontario to Introduce Legislation Requiring a Referendum on New Carbon Pricing

No Comments By

Ontario Premier Doug Ford yesterday announced that the government intends to introduce legislation next week that would require a referendum before any new provincial carbon pricing system could be implemented in the province. The measure is expected to be part of new legislation, the “Get It Done Act” (the Act), which is set to be tabled in the upcoming legislative session starting February 20, 2024. A carbon pricing referendum would only apply to proposed provincial measures and not the federal backstop carbon pricing system under the Greenhouse Gas Pollution Pricing Act (GGPPA) that went into effect in Ontario after the provincial government cancelled Ontario’s cap-and-trade system. Premier Ford noted that the aim of the Act is to give voters a direct say over any new provincial carbon tax, cap-and-trade system, or other carbon pricing program, and emphasized the importance of keeping costs low for residents and businesses. The Act is expected to include a host of measures that build on the government’s commitments to streamline approvals for major infrastructure projects and housing, lower costs for people and businesses, and support economic growth. Ontario’s Finance Minister Peter Bethlenfalvy (the Minister) stated that the government made a promise to fight the federal fuel charge (see our bulletin on the Supreme Court of Canada’s decision upholding the constitutionality of the GGPPA here) and that it would continue to lead by example by “giving Ontarians certainty that carbon pricing on the backs of taxpayers is not the way forward.” The Minister suggested that “[a]ny new provincial carbon tax is unacceptable for Ontario residents who are seeing their hard-earned dollars stretched further than ever.”  The provincial government also called on the federal government to expand the temporary pause on the application of the federal fuel charge for home heating or to eliminate the federal carbon fuel charge entirely.   For further information or to discuss the contents…

Read More
By

Ontario’s Electrification and Energy Transition Panel Releases Final Report

No Comments By

Ontario’s Electrification and Energy Transition Panel (the Panel) has released its final report entitled Ontario’s Clean Energy Opportunity: Report of the Electrification and Energy Transition Panel (the Report). The Panel was established by the Government of Ontario to advise on opportunities for Ontario’s energy sector and identify strategic opportunities and planning reforms to help Ontario’s economy prepare for electrification and the energy transition. The Report provides a comprehensive roadmap for Ontario’s transition to a clean energy economy, emphasizing strategic planning, collaboration, innovation, and the crucial role of Indigenous partnerships.  This bulletin briefly highlights the key findings of the report and outlines the Panel’s key recommendations. Planning for electrification and the energy transition. The Report underscores the urgent and transformative shift in the global energy landscape, emphasizing the need to address climate change and support technological advancements. For example, the Report notes that Ontario faces a significant challenge regarding the future of natural gas, including increasing uncertainty about the feasibility of decarbonizing the natural gas grid and growing doubt about replacing large quantities of natural gas in a cost-effective way with cleaner alternatives such as renewable natural gas (RNG) or hydrogen. Key recommendations include: Recommendation 1 suggests that the provincial government should develop and communicate a commitment and associated policy principles for achieving a clean energy economy for Ontario by 2050 in order to provide clear direction for Ontario’s energy and economic future. Recommendation 3 provides that the provincial government should continue to seek alignment and coordination of clean energy economy objectives, standards, and policies with other governments (within and outside Canada) whenever practical and consistent with the province’s economic and policy interests. Recommendation 6 provides that in order to provide clarity to utilities, investors, and customers, the Ministry of Energy (the Ministry) should provide policy direction on the role of natural gas in Ontario’s future energy system as…

Read More
By
Load More