Toronto: In early December, Ontario’s Minister of Energy introduced Bill 153, Complying with International Trade Obligations Act, 2013, which, if passed, would eliminate the statutory requirement for domestic content in Ontario’s Feed-in Tariff (FIT) Program. Bill 153 is in response to a December 2012 decision of the World Trade Organization (WTO), which held that Ontario’s FIT Program was inconsistent with Canada’s international trade obligations. The process of bringing Ontario’s FIT program into compliance with the WTO ruling began in August 2013, when the Minister of Energy directed the Ontario Power Authority to reduce domestic content requirements for new FIT contracts to lower minimum levels. Bill 153 is needed to complete the process, eliminating the statutory requirement that Ontario’s FIT Program include domestic content.
The proposed legislation is not expected to impact existing FIT contracts. However, the removal of domestic content requirements and continuing declines in technology prices are expected to result in reduced tariffs for future FIT contracts.
— Based on a publication by Davies Ward Phillips & Vineberg LLP