Resilient LLP (formerly DeMarco Allan LLP)
Tag

Ontario

Browsing

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

Ontario Proposes Enabling Renewable Energy Power Purchase Agreements

No Comments By

Ontario’s Ministry of Energy (the Ministry) recently proposed amendments to regulations under the Electricity Act, 1998 (the Act). The proposed amendments would amend Ontario Regulation 429/04: Adjustments Under Section 25.33 of the Act (the Regulation) to enable qualifying commercial and industrial customers to offset their facility’s demand through power purchase agreements (PPAs) with renewable generation facilities. The Regulation otherwise provides for the allocation of Global Adjustment (GA) costs to electricity customers and the rules for the Industrial Conservation Initiative (ICI). The proposed amendments follow other recent provincial support for meeting increasing corporate demand for clean and non-emitting sources of energy (see our bulletin on Ontario’s clean energy credit registry here) and the government anticipates that it will create a new market for corporate PPAs, provide system benefits, enhance industrial competitiveness in Ontario, and support new clean generation. This bulletin briefly summarizes key information regarding the proposed amendments. Overview The Ministry indicated that the proposed amendments are intended to support the growth of clean electricity generation by enabling qualifying ICI participants (Class A customers) to offset their facility’s demand in the top five peak hours of a base period through PPAs with renewable generation facilities that are not connected behind the facility’s meter. This would allow eligible ICI participants to reduce their demand during peak hours by the corresponding amount under the PPA, thereby reducing the GA charges under the ICI. The Ministry noted that contracted generation through PPAs would be treated as if it is supplied to the ICI participant behind-the-meter for the purpose of determining GA charges, similar to other “virtual” net metering arrangements. Eligible Technology The types of technologies eligible under the proposed amendments is expected to include wind, solar, small hydroelectric (i.e., less than 10 megawatts), biofuel, and battery storage. Next steps The proposed effective date for the amendments is May 1, 2024. Interested stakeholders are encouraged to review…

Read More
By

Ontario Launches Clean Energy Credit Registry

No Comments By

Ontario’s Ministry of Energy (the Ministry) today announced the launch of the clean energy credit (CEC) registry (see our earlier bulletin on the CEC registry here). Ontario’s Independent Electricity System Operator (IESO) will administer the CEC registry. It is intended to assist businesses to meet environmental and sustainability goals by demonstrating that their electricity has been sourced from clean resources, such as nuclear power, hydroelectric, wind, solar, and bioenergy.   The Ministry also announced that proceeds from the sale of CECs held by the IESO and Ontario Power Generation (OPG) will be directed to Ontario’s newly established Future Clean Electricity Fund (the Fund). The Ministry noted that the sale of CECs will be used to reduce costs for electricity ratepayers and fund the construction of clean electricity projects in Ontario through the Fund. OPG is expected to immediately begin offering its CECs for sale, whereas IESO is expected to begin selling its CECs this summer.   CECs are electronic certificates used to demonstrate that clean energy has been acquired to meet a voluntary target. Each credit represents 1 MWh of clean energy that has been generated and is intended to be exclusively purchased and claimed (or retired) by a load customer within Ontario.   The IESO indicated that eligible generators and loads participating in the sale and purchase of CECs must register for the Ontario Program with Midwest Renewable Energy Tracking System (M-RETS). The M-RETS registry platform enables the creation, transfer and retirement of CECs.   The IESO today launched a Request for Proposals to provide brokerage services for the sale of IESO-owned CECs and noted that it intends to make available 2.5 million CECs for sale throughout Ontario in each calendar year, starting in 2023.   For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.

Read More
By

Ontario Proposes Changes to Emissions Performance Standards Program

No Comments By

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…

Read More
By

Premier Ford Announces New Ontario Cabinet

No Comments By

Ontario Premier Doug Ford today announced members of his new Cabinet. The new Executive Council has increased by three to 30 members and includes seven women, down from nine, and seven people of colour. The new Executive Council largely resembles Premier Ford’s Cabinet prior to the recent election on June 2, with a few notable exceptions, including the now former Minister of Health, Christine Elliot, who did not seek re-election, and Lisa MacLeod, the now former Minister of Heritage, Sport, Tourism. The ministers responsible for environment and energy portfolios remain the same. The new Executive Council is as follows: Doug Ford, Premier of Ontario and Minister of Intergovernmental Affairs Sylvia Jones, Deputy Premier and new Minister of Health Peter Bethlenfalvy, Minister of Finance Paul Calandra, Minister of Long-Term Care, Minister of Legislative Affairs and Government House Leader Raymond Cho, Minister for Seniors and Accessibility Steve Clark, Minister of Municipal Affairs and Housing Doug Downey, Attorney General Jill Dunlop, Minister of Colleges and Universities Vic Fedeli, Minister of Economic Development, Job Creation and Trade, with an additional mandate for small business Michael Ford, Minister of Citizenship and Multiculturalism Merrilee Fullerton, Minister of Children, Community and Social Services Parm Gill, the new Minister of Red Tape Reduction Michael Kerzner, the new Solicitor General Stephen Lecce, Minister of Education Neil Lumsden, the new Minister of Tourism, Culture and Sport Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development Caroline Mulroney, Minister of Transportation and Minister of Francophone Affairs David Piccini, Minister of the Environment, Conservation and Parks Graydon Smith, Minister of Natural Resources and Forestry George Pirie, Minister of Mines, with a mandate to develop the Ring of Fire Kaleed Rasheed, the new Minister of Public and Business Service Delivery Greg Rickford, Minister of Northern Development and Minister of Indigenous Affairs Prabmeet…

Read More
By
Load More