Ontario s Climate Change Plan and Brownfield Redevelopment

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1 Ontario s Climate Change Plan and Brownfield Redevelopment John Georgakopoulos Partner, Certified Specialist in Environmental Law by the Law Society of Upper Canada Willms & Shier Environmental Lawyers LLP CBN Conference June 14, 2016

2 Overview Framework for Reducing GHGs Ontario s Climate Change Plan Impact on Brownfield Redevelopment? What s Next?

3 Legal Frameworks

4 GHG Reduction Frameworks Emissions trading (cap and trade) Carbon tax Emissions control regulations

5 The Cost of Carbon Quebec carbon trading system credits auction at $12.82 CAD per tonne Alberta fund/offset/credit system fund: $20 CAD per tonne over emissions reductions target increasing to $30 CAD in 2017 BC revenue-neutral carbon tax carbon is taxed at $30 CAD per tonne

6 The Cost of Carbon in BC Source: BC Ministry of Finance, March, 2016

7 Ontario s Cap and Trade Plan

8 Ontario s Cap and Trade Plan April 13, Ontario intends to join the cap and trade system under the Western Climate Initiative (Quebec & California) November 16, 2015 Ontario released Climate Change Strategy GHG reduction targets below 1990 levels o 15 per cent by 2020 o 37 per cent by 2030 o 80 per cent by 2050 May 18, Climate Change Mitigation and Low-Carbon Economy Act receives Royal Assent May 19, Cap and Trade Program Regulation is filed (in effect July 1, 2016) and Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation is filed (in effect January 1, 2017)

9 Ontario s Cap and Trade System What will the system look like? Timing January 1, 2017 Sector Coverage electricity generation and imports industrial and large commercial ( 25,000 tonnes CO2e) institutions ( 25,000 tonnes CO2e) petroleum product supply distribution of natural gas

10 Ontario s Cap and Trade System What will the system look like? Overall Cap available emissions allowances will decrease annually 2017: 142,332, : 136,440, : 130,556, : 124,668,000 Auctions quarterly single-round, sealed bid auctions with minimum price 5% strategic reserves sold at fixed price Mandatory, Volunteer, and Market participants

11 Ontario s Cap and Trade System What will the system look like? Allowances Are created and distributed by the Minister May be distributed for valuable consideration or free of charge Credits Early action Offsets o used against up to 8% excess GHG emissions o activities allowed to generate official offset credits still under consideration One emission allowance or credit is equivalent to one tonne of CO2e.

12 Ontario s Cap and Trade System What will the system look like? Auction Registration starts early August to November 30 regulatory deadline Application for Free Allowances starts July to September 1 regulatory deadline First Auction Notice January 2017 First Auction March 2017

13 Ontario s Cap and Trade System What will the system look like? Penalties for Non-Compliance Three-to-one allowance penalty Holding account suspension Removal based on fraud or trading-based criminal history Administrative Monetary Penalties

14 Ontario s Cap and Trade System Impact on Brownfields Offset Credit Opportunities? Excess soil management Renewable energy projects Green buildings Reuse of existing infrastructure Urban forestation Phytoremediation

15 ONTARIO S CLIMATE CHANGE ACTION PLAN

16 Ontario s Climate Change Action Plan (CCAP) June 8, 2016 CCAP announced Action areas Transportation Buildings and homes Land-use planning Industry and business Collaboration with Indigenous communities R&D Government Agriculture, forests, and lands

17 Impact of CCAP on Brownfield Redevelopment? Transportation/Electric Vehicles all new homes/townhomes with garages to be constructed with 50-amp, 240-volt, plug in garage by 2018, all newly built commercial office buildings and certain workplaces must provide charging infrastructure enhance cycling routes between residential, major transit stations, and employment areas increase use of low-carbon commercial trucks and shift to electric and natural gas powered trucks accelerate deployment of GO Regional Express Rail

18 Impact of CCAP on Brownfield Redevelopment? Homes and Buildings retrofit incentives for heritage buildings to incorporate low-carbon energy systems and high efficiency materials retrofit incentives to promote energy efficiency and lowcarbon housing update Building Code with long-term energy efficiency targets for new net-zero carbon emission small buildings o intended to come into effect by 2030 at the latest, with consult on initial changes that will be effective by 2020 launch in 2019 of Home Energy Rating Disclosure Program

19 Impact of CCAP on Brownfield Redevelopment? Land Use Planning Intended amendments to Municipal Act and City of Toronto Act o o o allow municipalities to require electric vehicle charging in surface lots allow municipalities to pass by-laws related to green standards in areas other than building construction (e.g., sustainable transportation management) eliminate minimum parking requirements over the next five years from municipal zoning by-laws o instead bylaws will encourage bike lanes, larger sidewalks and enhanced tree canopies

20 Impact of CCAP on Brownfield Redevelopment? Land Use Planning Intended amendments to the Planning Act o o make climate change a provincial interest, ensuring climate change is taken into consideration when planning decisions are made make climate change mitigation and adaptation mandatory in municipal official plans

21 What s Next? MOECC providing cap and trade training starting June 2016 Draft regulations for offsets and administrative monetary penalties anticipated summer 2016 for public consultation Ontario will work with Quebec and California to link with Ontario s Cap and Trade program with regulatory amendments expected in 2017

22 Contact Information John Georgakopoulos (416) Willms & Shier Environmental Lawyers LLP