1. Introduction

This document provides definitions for the terminology included in O. Regulation 144/16 – The Cap and Trade Program and the equivalent terms used in other jurisdictions and in the Compliance Instrument Tracking System Service (CITSS) specific to the Recognition of Account Agent process and the Participant Registration process.

2. Glossary of Terms

This is the list of the terms used under Ontario’s cap and trade program.

Terms used under Ontario’s Cap and Trade ProgramEquivalent terms in other Jurisdictions and/or CITSSDefinition or Explanation
Account Agent or AgentUserAn individual who has undergone the Recognition as an Account Agent process in Ontario and has a valid CITSS User ID. There are also types of Account Agents, such as Primary Account Representative (PAR), Alternate Account Representative (AAR) and Account Viewing Agent (AVA).
Account Viewing Agent (AVA)Account Viewing Agent (AVA)An individual with the rights to view a participant’s account.
Alternate Account Representative (AAR)Alternate Account Representative (AAR)A designated representative authorized to act on behalf of a participant.
AuctionAuctionOntario’s auction of emissions allowances run four times during the year.
Authorization LetterN/ASupporting document required as part of the Recognition as an Account Agent process. It states that an individual is designated to act on behalf of a participant; signed by the Chief Officer.
Business NumberN/ANumber assigned by the Canada Revenue Agency; mandatory entity identification to be provided by during Participant Registration.
Business RelationshipCorporate AssociationWhen one participant has a degree of ownership or control over another participant, e.g. one participant owns or controls more than 20 per cent of another participant.
Business Relationship Disclosure FormCorporate Association and Structure FormForm completed during the Participant Registration process and to provide Business Relationship updates.
Chief OfficerN/AThe individual who holds the most senior executive position in an organization or entity, regardless of the actual title of the position.
CITSS Entity IDCITSS Entity IDSix-character digit assigned by CITSS to identify a single participant.
CITSS User Reference CodeUser Reference Code12-character digit assigned by CITSS to identify a single account agent (user).
CITSS User IDCITSS User IDThe unique ID selected by an individual with access to CITSS; used to login to CITSS along with the corresponding password.
CITSS FormsCITSS formsForms generated by CITSS during the recognition of account agent process and the participant registration process:
  • Recognition as an Account Agent Registration Checklist
  • Recognition as an Account Agent Registration Form
  • Proof of Identity Form
  • Participant Registration Checklist
  • Participant Registration Form
Compliance Instrument Tracking System Service (CITSS)CITSSThe web-based system used to register participants and track allowances and credits from issuance to retirement.
Capped ParticipantEntity/Emitter (Mandatory or Opt-in)Participants of Ontario’s cap and trade program that have compliance obligations, including Mandatory Participants and Voluntary Participants.
Compliance AccountCompliance AccountAn account held by Capped Participants and used to surrender credits and allowances to cover their actual emissions during a compliance period.
Compliance ObligationCompliance ObligationThe amount of credits and/or allowances to be surrendered by a Capped Participant during a compliance period.
Corporate Association Group (CAG)Corporate Association GroupA group of related persons created in CITSS to share allowance holding limits and auction/reserve sale purchase limits.
Credits (Ontario Credits)CreditsEquivalent to one tonne of carbon dioxide equivalent (CO2e). There are two types of credits: offset credits and early reduction credits.
Designated RepresentativesAccount RepresentativesIndividuals who are designated to act on behalf of a registered participant for the purposes of the Regulation and the Act. Two types: Primary Account Representative and Alternate Account Representative.
DirectorRegistrarAn individual designated with the authority under Ontario Legislation and Regulation to exercise certain duties and powers such as approving applications for individuals to be recognized as account agents and registering participants in CITSS.
Emissions Allowance(s) and Credit(s)Compliance InstrumentsEquivalent to one tonne of CO2e.
FacilityFacilityAll buildings, equipment, structures and stationary items, such as surfaces and storage piles that are owned and operated by the same person.

A facility must also be located either:

  • on a single site
  • on two or more adjacent sites that function as a single combined site, or
  • in the case of a pipeline transportation system, a transmission system or a distribution system, on two or more sites that are not adjacent.
Financial Services Administrator (FSA)Financial Services Administrator (FSA)The financial institution contracted by WCI, Inc. to provide financial services for auction participants.
Holding AccountGeneral AccountAccount assigned to all participants of Ontario’s cap and trade program used to hold emissions allowances and credits.
JurisdictionJurisdictionThe jurisdiction that you must comply with, i.e. Ontario.
Legal NameLegal NameThe name of an organization as it appears on its incorporation or establishment documents.
Mandatory ParticipantCovered entityAn organization required to participate in the cap and trade program because it emits over 25,000 tonnes of greenhouse gas emissions. Additionally, fuel suppliers that sell more than 200 litres of fuel per year and electricity importers must also participate in the program.
Market ParticipantGeneral Market Participant (GMP)A participant of the cap and trade program without a compliance obligation; can be an individual or an organization.
MinistryN/AMinistry of the Environment and Climate Change (MOECC).
MOECC FormsN/AForms located outside of CITSS, accessed through the Ministry’s cap and trade website. E.g. Business Relationship Disclosure and Identity Verification and Attestations Forms.
NotaryN/AAn appointed individual who has all the powers of a commissioner for taking affidavits, and can also verify that signatures, marks and copies of documents are true or genuine.
Ontario Reporting RegulationMandatory Reporting Regulation (MRR)Ontario Regulation 452/09 (Greenhouse Gas Emissions Reporting) and O. Reg. 143/16 (Quantification, Reporting and Verification of Greenhouse Gas Emissions).
Operating NameOperating NameThe common name of the participant or facility registering in CITSS (it may be the same as the Legal Name).
ParticipantEntityAn establishment or entity participating in Ontario’s cap and trade program.
Participant RegistrationAccount ApplicationProcess for Ontario’s participants to open accounts in CITSS.
Participant Registration ChecklistAccount Application ChecklistCITSS-generated form to be completed during the Participant Registration process.
Participant Registration FormAccount Application FormCITSS-generated form to be completed during the Participant Registration process.
Person(s)EntityIn relation to O. Reg. 144/16 – The Cap and Trade Program, it refers to an organization or company.
Primary Account Representative (PAR)Primary Account Representative (PAR)A designated representative authorized to act on behalf of a participant. The PAR must have Ontario residency.
Related PersonsDirect Corporate AssociationCompanies are Related Persons if they share a designated account representative and/or one of the companies controls the other by 50 per cent or more.
Resolution of the Board of DirectorsN/AA legal binding document used on behalf of a corporation. It is required when designating account representatives on a participant’s account in lieu of the Chief’s Officer signature.
SaleReserve SaleOntario’s sale of reserved Category A, B or C emissions allowances; sales can be held a maximum of four times per year.
Voluntary ParticipantsOpt-in EntityFacilities generating more than 10,000 tonnes but less than 25,000 tonnes of emissions that choose to opt in to the program. These companies will be subject to the same rules as mandatory participants.