Overview

Emissions performance standards are used to determine an emissions limit that industrial facilities must meet each year. The standards become stricter every year, requiring emitters to either:

  • reduce their emissions
  • pay for exceeding the limits

The Emissions Performance Standards program will regulate greenhouse gas emissions from large industrial facilities by setting the standards for lowering emissions (emissions limits) that those facilities are required to meet.

The goals of the Emissions Performance Standards program are to:

  • encourage the industrial sector to reduce greenhouse gas emissions
  • maintain competitiveness of Ontario businesses
  • minimize carbon leakage – the risk of production leaving the province for other jurisdictions with less stringent climate policies

The program was created under the Emissions Performance Standards Regulation (O. Reg. 241/19), which came into effect on July 4, 2019.

Learn more about our commitments to address climate change and reduce greenhouse gas emissions.

Transition from the federal output-based pricing system

On September 1, 2021, the federal government formally removed the application of its output-based pricing system (OBPS) from Ontario, effective January 1, 2022.  The removal of the federal program means that greenhouse gas emissions from large industrial facilities will be regulated by Ontario’s own Emissions Performance Standards program.

On October 22, 2021, we made regulatory amendments to support a smooth transition from the federal output-based pricing system to the new obligations and performance standards for Ontario industry.

Learn more about these changes: ERO # 019-2813 and ERO# 019-3719 .

Compliance obligations under Ontario’s Emissions Performance Standards program will begin to apply on January 1, 2022 for registered facilities with emissions that occur in 2022. Compliance obligations continue to apply under the federal output-based pricing system program for emissions that occurred in 2019, 2020 and 2021.

As of January 1, 2022, only facilities that are registered in the Emissions Performance Standards program will be eligible for exemption from the federal fuel charge.

Ontario is continuing to work with the federal government to ensure a smooth transition for industry to the Emissions Performance Standards program.

EPS facilities that must register

You are required by law to register your EPS facility in the Emissions Performance Standards program if it meets the definition of “EPS facility” and the following criteria under section 2 of O. Reg. 241/19:

  • the owner or operator of the EPS facility was required to report the facility’s greenhouse gas emissions for 2014 or for any subsequent year
  • the facility reported 50,000 tonnes or more of CO2 emissions in one or more reporting year from 2014 onward
  • the primary activity at the facility is an industrial activity listed in paragraphs 1 to 38 of Schedule 2 of O. Reg. 241/19 

If you meet the eligibility criteria listed, you are required to register in the year that you meet the requirements.

EPS facilities that may opt-in

You may choose to apply to register your EPS facility in the EPS program if it meets the definition of “EPS facility” and it  meets all the following criteria under section 4 of O. Reg. 241/19:

  • the owner or operator of the EPS facility that reported the facility’s greenhouse gas emissions for 2014 or for any subsequent year
  • the facility reported at least 10,000 tonnes of CO2 emissions in one or more reporting year from 2014 onward
  • an activity at the facility is an industrial activity listed in Schedule 2 of O. Reg. 241/19

New EPS facilities that may opt-in

You may choose to apply to register your new EPS facility in the Emissions Performance Standards  program if it meets the definition of “EPS facility” and it meets all the following criteria under section 4.1 of O. Reg. 241/19:

  • the owner or operator of the EPS facility has not engaged in an industrial activity listed in Schedule 2 of O. Reg. 241/19 at the facility prior to the date of first production
  • the industrial activity that is to be engaged in at the EPS facility is not one that the owner or operator or a previous owner or operator engaged in at the facility
  • the owner or operator has a report prepared and signed by a professional engineer that demonstrates the EPS facility is likely to emit at least 10,000 tonnes of CO2 emissions  in one of the three years following the year that first production occurs  

How to register your EPS facility

To register in Ontario’s Emissions Performance Standards  program, as the owner or operator of an EPS facility, you must complete the following steps:

  1. Submit a Notice of Intention (NOI) to register your facility
  2. Complete and submit a registration package

Step 1: submit a Notice of Intention (NOI)

If you meet the required or optional registration criteria, you must submit aNotice of Intention to the Ministry of Environment, Conservation and Parks.

To submit yourNotice of Intention, please email EPSApplications@Ontario.ca with the following information:

  • company legal name
  • all Greenhouse Gas (GHG) ID(s) assigned to the facility, including those assigned to any sites that form part of the facility
  • facility boundaries map in pdf format

Step 2: complete and submit a registration package

After you submit a Notice of Intention, a member of the Emissions Performance Standards registration team will provide you with a registration package and further instructions via email.

The registration package includes:

  • an EPS Facility Registration form
  • a Letter of Authorization template

You must complete and sign the registration package, then send a scanned copy to EPSApplications@ontario.ca.

Step 3: registration in Emissions Performance Standards program

If your registration package is approved, you will receive a Director’s notice confirming your registration, accompanying EPS facility registration certificate and next steps .

Registered facilities can then apply to the federal government for exemption from the federal fuel charge on the fuel used at the EPS facility. Get more information on this process.

After registering your EPS facility

Submit additional information

Once you have received your exemption from the federal fuel charge from the federal government (see Step 3 above), all registered facilities are required under section 21.2 of O. Reg. 241/19 to provide copies of the following to the ministry within 30 days of receipt:

  1. The statement provided by Environment and Climate Change Canada in respect of the facility that indicates that the facility is subject to a provincial output-based performance standards system relating to a provincial pricing mechanism for greenhouse gas emissions.
  2. The notice of registration under subsection 64 (2) of the Greenhouse Gas Pollution Pricing Act (Canada)) from the Minister of National Revenue setting out the effective date of registration of the owner or operator as a registered emitter in respect of the facility. 

You must send the copies to us no later than 30 days after you receive them.

Email your copies of these documents toEPSapplications@ontario.ca with subject line: GHGID XXXX-ECCC statement & CRA notice.

Verification of GHG annual reports

Registered facilities are required to have their annual greenhouse gas emission reports verified . This includes the Total Annual Emissions Limit (TAEL) which is calculated using the applicable method(s) in the GHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit listed in the table below.

Summary table of current and past Emissions Performance Standards program requirements

Emissions yearActRegulationRegulation nameMethodology version
2021 and onwardEnvironmental Protection Act, 1990O. Reg. 241/19Greenhouse Gas Emissions Performance StandardsGHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit – October 2021
2019 and 2020 Environmental Protection Act, 1990O. Reg. 241/19Greenhouse Gas Emissions Performance StandardsGHG Emissions Performance Standards and Methodology for the Determination of the Total Annual Emissions Limit – July 2019

Changes to registration information

You are required under section 8 of O. Reg. 241/19 to provide notification of any changes to your registration information no later than 30 days following the change.

To provide notification of changes to your registration, you may use your previous EPS Facility Registration Form and change only the applicable fields.  The revised form should be:

  • completed on your computer
  • printed
  • signed by the account representatives (if applicable) and the authorized representative
  • scanned

Once completed, the authorized representative must email a signed copy to EPSapplications@ontario.ca.

You may contact EPSApplications@ontario.ca for a copy of the EPS Facility Registration Form and a Tip Sheet on how to submit changes to registration information.

Notifying the federal government
You are also required to provide notification to the federal government when there is a change in EPS registration information pertaining to changes in the facility’s:

  • ownership
  • boundaries
  • name

Find out more about this process .

If you are changing the account representative(s)

If you are changing the authorized representative or adding new account representative(s), in addition to revising the EPS Facility Registration Form, you must also provide an updated Letter of Authorization confirming that the new individual has the authority to act on behalf of the owner or operator.   Once completed, the authorized representative must email a signed copy of the Letter of Authorization with the revised form to EPSapplications@ontario.ca.
Email EPSApplications@ontario.ca for a copy of the Letter of Authorization template or for more information.

EPS facility re-registration when there is a change in owner or operator

You are required under section 6 of O. Reg. 241/19 to re-register a facility that has already been registered or re-registered in the Ontario EPS program if both of the following are true:

  • the owner or operator that registered the facility has changed
  • the facility is continuing to engage in an industrial activity listed under Schedule 2

As the new owner or operator of the facility, you must re-register the facility no later than 30 days after the change in owner or operator has occurred.

If you are the new owner or operator of an EPS facility that meets the facility re-registration criteria above, email EPSapplications@ontario.ca to request a re-registration package.

A member of the Emissions Performance Standards registration team will provide you with the re-registration package, a tip sheet and further instructions via email.

The re-registration package includes:

  • an EPS Facility Re-registration form
  • a Letter of Authorization template

The EPS Facility Re-registration Form should be:

  • completed on your computer
  • printed
  • signed by the new account representatives (if applicable) and the authorized representative
  • scanned

Once completed, the authorized representative must email a signed copy to EPSapplications@ontario.ca.

To register or apply to register a facility that is not already registered in the Emissions Performance Standards program, you must follow the process outlined above under “How to register your EPS facility”.

For more information

If you have questions about Ontario’s Emissions Performance Standards program, contact the EPS Program Help Desk:

Toll-free: 1-888-217-3326
Email: EPShelp@ontario.ca