This consultation was open from:
January 2, 2018
to February 16, 2018
Decision summary
We are no longer considering the Administrative Penalties Guideline as it informed a regulation made under the Climate Change Mitigation and Low-carbon Economy Act, 2016 (CCMLEA) which was revoked when the CCMLEA was repealed.
Decision details
On October 31, 2019, Ontario passed the Cap and Trade Cancellation Act, 2018 which officially removed Ontario’s cap and trade carbon tax law from the books. This orderly and transparent legislation wound down the cap and trade carbon tax in a way that minimizes the risk to taxpayers while offering some support for eligible registered participants in the previous program.
Eliminating the cap and trade carbon tax was estimated to save the average family $260 per year and also helped reduce gas prices.
On November 14, 2018, the Cap and Trade Cancellation Act, 2018 was enacted and proclaimed into force. This act repealed the CCMLEA and provided for various matters related to the wind down of the cap and trade program.
As a result, the remaining regulations under the repealed act were revoked, including O. Reg. 540/17, Administrative Penalties, which made the proposed Guideline no longer applicable.
This decision notice has been posted to advise the public that the government is no longer considering this proposal. The proposed Guideline was posted on the Environmental Registry for public consultation on January 2, 2018 for 45 days.
The purpose of the proposed Guideline was to:
- assist in implementing the Administrative Penalties Regulation and
- ensure compliance with the (CCMLEA) and its regulations as part of the ministry’s suite of graduated compliance and enforcement tools
Ontario has played an important role in fighting climate change and has already shown strong leadership by taking steps to significantly reduce its greenhouse gas (GHG) emissions since 2005.
We are building on these efforts, while supporting a healthy economy and environment, by taking practical and effective GHG reduction actions outlined in our Made-in-Ontario Environment Plans, such as finalizing emissions performance standards to hold large, industrial polluters accountable for their GHG emissions and establishing a new advisory panel on climate change that will provide expert advice on how Ontarians can prepare for the costs and impacts of climate change.
Effects of consultation
The ministry reviewed all submissions and comments received during the consultation period.
The purpose of the proposal was to consult on the Guideline which must work within the framework established in the CCMLEA and Administrative Penalties Regulation.
The comments received were related to the CCMLEA and Administrative Penalties Regulation, not for the proposed Guideline.
Consultations were previously conducted for:
- the CCMLEA, through proposal 012-6844 posted on the Environmental Registry for 30 days from February 24, 2016 to March 25 2016, and through the legislative process
- the Administrative Penalties regulation, through proposal 012-9958 posted on the Environmental Registry for 45 Days from May 24, 2017 to July 8, 2017
As such, comments that were not directly relevant to the proposed Guideline were considered out of scope.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
77 Wellesley Street West
10th floor
Toronto,
ON
M7A 2T5
Canada
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Contact
Bipasha Choudhury
135 St. Clair Ave. West
11th Fl
Toronto,
ON
M4V 1P5
Canada
Original proposal
Proposal details
Description of policy
On September 22, 2017, the Ministry of the Environment and Climate Change posted a regulatory proposal notice on the Environmental Registry that included a number of regulatory changes to the cap and trade program; including, a proposal for the implementation of a new administrative penalties regulation under the Climate Change Mitigation and Low-carbon Economy Act, 2016 (CCMLEA).
As part of this regulatory proposal notice, the Ministry stated its intent to develop, and post for public comment, guidance material to be used by the Ministry when applying and calculating administrative penalties. This proposal notice fulfils the Ministry's commitment to provide the draft guidance document for public comment in order to help ensure transparent and appropriate application of administrative penalties under the cap and trade program.
In April 2015, the government announced it would be limiting greenhouse gas pollution by implementing a cap and trade program and its intent to link Ontario’s program with those of Quebec and California.
On May 18, 2016, the CCMLEA received Royal Assent.
On May 19, 2016, two regulations that form the backbone of the cap and trade program became law under the Climate Change Mitigation and Low-carbon Economy Act, 2016 – the Cap and Trade Program Regulation (O. Reg. 144/16) which took effect July 1, 2016 and the Quantification, Reporting and Verification of Greenhouse Gas Emissions Regulation (O. Reg. 143/16) which took effect January 1, 2017.
Ontario’s cap and trade program came into effect on July 1, 2016, with the first compliance period beginning on January 1, 2017.
On September 22, 2017 Ontario signed an agreement to integrate and harmonize cap and trade programs, effective January 1, 2018. Regulatory amendments were filed to allow for linking on November 24, 2017 and this will allow all three governments to hold joint auctions of greenhouse gas emission allowances.
Purpose of policy
An administrative penalty is a monetary penalty that may be imposed by the Ministry to achieve the following purposes:
- To ensure compliance with the CCMLEA and its regulations; and,
- To prevent a person or entity from deriving economic benefit from non-compliance with the requirements in the CCMLEA and its regulations.
As part of implementing administrative penalties for the cap and trade program, the Ministry is proposing a draft guideline that would guide Directors when calculating and issuing administrative penalties.
The proposed guideline includes information on the application of administrative penalties, such as:
- A step-by-step process for issuing administrative penalties
- Considerations taken by the director when determining a base penalty value
- How economic benefit will be considered
- Process for making requests to the director to consider additional information regarding the contravention
The cap and trade program creates a multi-billion dollar market for emission allowances and credits. As such, it is important that the Ministry have a comprehensive suite of enforcement options to help maintain the integrity of the market and the program itself.
Implementation of administrative penalties will form part of the ministry’s suite of graduated compliance and enforcement tools under the CCMLEA – providing the ministry with the ability to choose the most appropriate and effective compliance tool, or combination of tools, to maximize compliance and prevent or deter future non-compliance.
Public consultation
This proposal was posted for a 45 day public review and comment period starting January 02, 2018. Comments were to be received by February 16, 2018.
All comments received during the comment period are being considered as part of the decision-making process by the Ministry.
Please Note: All comments and submissions received have become part of the public record.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
77 Wellesley Street West
10th floor
Toronto,
ON
M7A 2T5
Canada
Comment
Commenting is now closed.
This consultation was open from January 2, 2018
to February 16, 2018
Connect with us
Contact
Dushan Jojkic
77 Wellesley Street West
10th floor
Toronto,
ON
M7A 2T5
Canada
Comments received
Through the registry
0By email
4By mail
0