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ARTICLE · 16 DECEMBER 2013

Ontario To Eliminate Domestic Content In FIT Program

Davies Ward Phillips & Vineberg LLP
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This week, 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 Program.

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Sarah Powell
Sarah Powell
Anthony Spadaro
Anthony Spadaro
Alexandria Pike
Alexandria Pike
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This week, 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. Ontario's FIT Program is North America's first comprehensive guaranteed pricing structure for renewable energy production.

Bill 153 comes on the heels of a December 2012 decision of the World Trade Organization (the "WTO") (which was subsequently upheld on appeal in May 2013), 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 the last step in the process, eliminating the statutory requirement that Ontario's FIT

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