Ontario Launches Emissions Performance Program (EPP)

Overview ‍

Yesterday, the Ministry of the Environment, Conservation and Parks (MECP) launched the Emissions Performance Program (EPP). The EPP takes proceeds collected from the Emissions Performance Standards (EPS) Program and allows large emitters to apply for funding to support greenhouse gas reduction projects at eligible industrial facilities. Eligible applicants are EPS participants whose primary industrial activity is not electricity generation.

The available proceeds represent revenue collected through the purchase of compliance instruments, known as Excess Emissions Units (EEUs), by EPS participants to satisfy their 2022 EPS program obligations. Those eligible for the EPP will be able to apply for a funding amount which is notionally equivalent to the amount they paid in EEUs.

Program Details

The EPP will fund:

• Capital projects; and,
• Study-based projects.

Eligible facilities for the EPP are:

• Facilities that are registered in the EPS Program
• Facilities that have purchased EEUs
• Facilities that do not generate electricity as their primary industrial activity

Eligible industrial facilities would have received a notification email from the MECP outlining their ‘notional allocation amount’ which is the maximum amount of funding they are eligible to receive. To access funds, interested applicants must submit a project proposal through the Transfer Payment Ontario (TPON) portal, where program materials are available to organizations with a TPON account. Selected applicants will enter into a Transfer Payment Agreement (TPA) with the government.  

Examples of project activities eligible for funding include, but are not limited to:

• 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
• Clean electricity and low-carbon fuel production for own use

Next Steps

The MECP will hold webinars with key stakeholders to provide more information on the EPP in the coming weeks.