MENU
01
Home
02
Services
03
Sectors
04
Insights
05
News
06
Team
07
Careers
08
Contact
Services
01
Government Relations
02
Communications & Digital
03
Advisory Services
Sectors
01
Energy
02
Environment
03
Health Care
Updates
01
Insights
02
News
HomeServicesSectorsTeamInsights
insights
updates
February 15, 2022

Launch of Federal Output-Based Pricing System Proceeds Fund

written by

Energy Team

Launch of Federal Output-Based Pricing System Proceeds Fund

Yesterday, Minister of Environment and Climate Change Steven Guilbeault launched the Output-Based Pricing System Proceeds Fund, a new program to support industrial initiatives that reduce greenhouse gas (GHG) emissions by deploying clean energy and clean technology.  

The OBPS is one of two elements under the federal carbon pricing system, along with the fuel charge on consumption. It covers facilities from heavy-emitting industrial sectors in provinces without a pricing system for industrial emitters, including Manitoba, Saskatchewan, New Brunswick and Ontario (for the years 2019 to 2021).

The programs announced yesterday will invest the proceeds from the 2019 compliance period of the OBPS, which amount to $161 million. Funds will be invested in projects that reduce emissions from covered facilities in the jurisdictions they were collected.

The program has two streams: the Future Electricity Fund and the Decarbonization Incentive Program.

The Future Electricity Fund
The Future Electricity Fund (FEF) will support clean electricity projects and/or programs. Proceeds collected from electricity generating facilities covered by the OBPS will be returned through funding agreements with governments of jurisdictions where the federal carbon pollution pricing system currently applies or applied in the past (in the case of Ontario).

Details of the funding arrangements with provinces were not revealed, but it is expected they will be reinvested via provincial programs or directly towards clean electricity projects.

The Decarbonization Incentive Program
The Decarbonization Incentive Program (DIP) is a merit-based program to support uptake of clean technology in all non-electricity generating OBPS facilities. The program will support single or multi-year projects to accelerate the deployment of commercially available and/or proven low-carbon technologies and processes in Manitoba, New Brunswick, Ontario and Saskatchewan.

Applications will be accepted on an ongoing basis until all funding within a respective eligible province has been allocated.

For-profit organizations are eligible to a maximum of 30% of eligible costs. Public sector, non-for-profit facilities are eligible to up to 40% of eligible costs. Applicants may request between $500,0000 and $10 million per project.

To be considered for funding under the program, the project must occur at an eligible facility and result in GHG emissions reductions. To be eligible, these GHG emissions reductions must be:

  • Material in the year 2030 and measurable over the lifetime of the project;
  • Affecting sources of GHG emissions either within the facility’s direct control and/or from acquired sources of energy such as electricity or purchased heat/steam; and,
  • Incremental to GHG emissions reductions obtained by other required actions, such as regulatory requirements or business-as-usual maintenance and repairs.

Clean electricity or fuel production must be predominantly for own-use (majority, or 50% or more, of energy content must be able to be used within the facility’s own operations). The application guide specifically references that electricity generating assets must be “behind the fence”.

Happy to help.

For additional information, please reach out to your Sussex representative directly or to a member of the Federal Government Relations Team.

Chris Benedetti
Managing Partner
cbenedetti@sussex-strategy.com
view profile
Devin McCarthy
Partner, Federal Practice Lead
dmccarthy@sussex-strategy.com
view profile
Christina Marciano
Vice President, Environment Practice Lead
cmarciano@sussex-strategy.com
view profile
Roberto Chavez
Senior Associate, Federal
rchavez@sussex-strategy.com
view profile
share article
Link copied
‍

recent posts

Ford Government Shuffle: What You Need to Know
September 23, 2023

Ford Government Shuffle: What You Need to Know

This afternoon Premier Doug Ford announced another shuffle to his Cabinet. These changes come only three weeks after a shuffle earlier in September that was prompted by the resignation of then Minister of Municipal Affairs and Housing, Steve Clark. This afternoon’s Cabinet shuffle was more unexpected, prompted by the abrupt resignation on Thursday of Khaleed Rasheed, Minister of Public and Business Service Delivery, amid scrutiny of a Vegas trip with developers linked to the Greenbelt controversy.

Prime Minister Announces Changes to Parliamentary Secretaries
September 18, 2023

Prime Minister Announces Changes to Parliamentary Secretaries

On Friday, Prime Minister Justin Trudeau announced the new complement of Parliamentary Secretaries. Parliamentary Secretaries are chosen by the Prime Minister to work with Ministers. Their responsibilities vary but generally fall into two categories: House of Commons business and department-related duties.

Ontario Government Cabinet Shuffle: What You Need to Know
September 5, 2023

Ontario Government Cabinet Shuffle: What You Need to Know

Yesterday, Premier Doug Ford announced a minor but significant shuffle to his Cabinet. These changes come just over a year since the Progressive Conservative’s re-election last June and amid a controversy regarding political interference around the swapping of land in and out of the Greenbelt.

view all
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
company
HomeTeamCareersContactTerms & Policies
explore
ServicesSectorsInsightsNews
follow us
ALL RIGHTS RESERVED © 2020