Minister's Order: On-Farm GHG Reductions Program [0006/2018]

Whereas the Government of Ontario recognizes the important economic and social contributions agriculture makes to Ontario;

Whereas Ontario's Climate Change Action Plan ("CCAP") is a five year plan that will help Ontario fight climate change over the long term;

And whereas the CCAP will help Ontario meet its short and long term greenhouse gas (GHG) reduction targets through new policies and investment programs that will be funded by proceeds from the cap and trade program;

And whereas in support of these goals and to assist with reducing on-farm GHG emissions Ontario seeks to reduce GHG emissions from soil, manure and enteric fermentation sources through potential programs and targets for greenhouse gas emission reduction;

And whereas the Ministry seeks to develop a program that supports implementation of Ontario's Agricultural Soil Health and Conservation Strategy and to support the CCAP;

And whereas section 4 of the Ministry of Agriculture, Food and Rural Affairs Act provides the Minister with the authority in relation to the administration of laws relating to agriculture, food and rural affairs and all of their branches;

And whereas subsection 6.2 (1) of the Ministry of Agriculture, Food and Rural Affairs Act provides the Minister of Agriculture, Food and Rural Affairs with the authority to establish programs for the encouragement of agriculture, food and rural affairs within Ontario;

And whereas I believe that such a program should be established for the encouragement of agriculture in Ontario;

Now therefore and pursuant to subsection 6.2 (1) of the Ministry of Agriculture, Food and Rural Affairs Act a program to be known as the

On-Farm GHG Reductions Program

is hereby established for the encouragement of agriculture in Ontario, including the encouragement of agricultural production and food processing.

Part I – Interpretation

Interpretation

  1. For the purposes of interpreting this Order and any Guidelines issued under it:
    1. Words in the singular include the plural and vice versa;
    2. Words in one gender include all genders;
    3. The headings do not form part of this Order or the Guidelines issued under it. They are for reference purposes only and will not affect the interpretation of this Order or any Guidelines issued under it;
    4. Any reference to dollars or currency in this Order or the Guidelines issued under it will be to Canadian dollars and currency;
    5. Any reference to a statute means a statute of the Province of Ontario, unless otherwise indicated;
    6. Any reference to a statute is to that statute and to the regulations made pursuant to that statute as they may be amended from time to time and to any statute or regulations that may be passed that have the effect of supplanting or superseding that statute or regulation unless a provision of this Order provides otherwise; and
    7. The words "include", "includes" and "including" denote that the subsequent list is not exhaustive.

Definitions

  1. For the purposes of this Order and any Guidelines issued under it,

    "Annual Cropland" means land this is currently planted to annual crops such as corn, soy, cereals, etc.;

    "Applicant" means a Person who applies for funding under the Program;

    "Biomass Crops" means Perennial Crops grown for diverse markets such as livestock bedding and electricity generation and may include switchgrass, miscanthus and/or woody plants;

    "BMPs" means best management practices;

    "Business Day" means any working day, Monday to Friday inclusive, but excluding statutory and other holidays on which the Government of Ontario has elected to be closed for business;

    "CAP SI Order" means Minister's Order number 0005/2018, which establishes the Canadian Agricultural Partnership Strategic Initiatives Theme Program, as may be amended;

    "Climate Change Action Plan" or "CCAP" means Ontario's plan to fight climate change, released in 2016;

    "Cost-Share of GHG Mitigating BMPs" means the Cost-Share of GHG Mitigating BMPs component of the Program, as set out in Part X of this Order;

    "CRA BN" means the business number Canada Revenue Agency issues to a Person pursuant to the Income Tax Act (Canada);

    "Crown" means Her Majesty the Queen in Right of Ontario;

    "Demonstration Farms and KTT" means the Demonstration Farms and KTT component of the Program, as set out in Part XIV of this Order;

    "FBRN" means a farm business registration number issued under the Farm Registration and Farm Organizations Funding Act, 1993;

    "Fiscal Year" means the period commencing on April 1 of a year through March 31 of the following year;

    "Funding Cap" means the maximum annual grant funding that an Ultimate Recipient may be entitled to receive calculated in accordance with the Guidelines;

    "Greenhouse Gas" or "GHG" means greenhouse gases described in section 5 of the Climate Change Mitigation and Low-carbon Economy Act, 2016;

    "Guidelines" means the written document prepared by the Program Administrator, or a third party in accordance with this Order, that sets out the rules, terms and conditions for the operation of the Program, or any component or sub-component thereof;

    "KTT" means knowledge translation and transfer, and involves the transformation of knowledge into use through synthesis, exchange, dissemination, dialogue, collaboration and brokering among researchers and research users;

    "Minister" means the Minister of Agriculture, Food and Rural Affairs or any such other Minister who may be designated from time to time as the responsible Minister in relation to this Program in accordance with the Executive Council Act unless the context indicates otherwise;

    "Ministry" means the Ministry of Agriculture, Food and Rural Affairs and includes a successor entity;

    "Ministry of Agriculture Food and Rural Affairs Act" means the Ministry of Agriculture, Food and Rural Affairs Act, R.S.O. 1990, c. M. 16, as amended;

    "Nitrification inhibitors" means products that are applied to soil to minimize soil nitrous oxide emissions (a potent GHG);

    "No-till" means an agronomic system that does not employ tillage operations;

    "Ontario" means her Majesty the Queen in Right of Ontario, as represented by the Minister of Agriculture, Food and Rural Affairs, unless the context indicates otherwise;

    "Order" means this Minister's Order, as amended from time to time;

    "Overpayment" means any Payment to which the Recipient or Ultimate Recipient is not entitled to receive at the time of the Payment or to which the Recipient ceases to be entitled to receive at any time after the Payment was made;

    "Payment" means the provision of funding under the Program;

    "Perennial Crops" means crops that are not tilled, cultivated or do not otherwise have their soil disturbed (with the exception of harvesting or grazing) for 2 or more years, and may include forage and pasture plants;

    "Person" for the purposes of this Order includes an individual and a corporation;

    "Premises ID" means a unique identifier assigned by Ontario to a parcel of land pursuant to Minister's Order 0002/2018, as may be amended;

    "Program" means the program entitled the "On-farm GHG Reductions Program" (or similar title) as delivered by the Ministry or a third party;

    "Program Administrator" means the Director of the Environmental Management Branch at the Ministry, except where the applicable Ministry's Financial Delegation of Authority, the applicable Ontario Public Service Directives or applicable laws require a different signing authority in which case that signing authority will be the Program Administrator for those purposes;

    "Project" means an undertaking approved under the Program;

    "Recipient" means a Person that receives a Payment under a TPA that is signed by the Minister or the Minister's authorized delegate;

    "Requirements of Law" means all applicable statutes, regulations, by-laws, ordinances, codes, official plans, rules, approvals, permits, licences, authorizations, orders, decrees, injunctions, directions and agreements with all authorities that now or at any time hereafter may relate to the Recipient using the Funds or carrying out the Project, or both;

    "Research, Monitoring, Evaluation and Verification" means the Research, Monitoring, Evaluation and Verification component of the Program, as set out in Part XIII of this Order;

    "Soil Mapping" means the Soil Mapping component of the Program, as set out in Part XI of this Order;

    "Soil Strategy" means Ontario's Agricultural Soil Health and Conservation Strategy;

    "Strip-till" means an agronomic system that reduces tillage by leaving strips of undisturbed soil between tillage strips;

    "Tool(s) Development" means the Tool(s) Development component of the Program, as set out in Part XII of this Order;

    "Transfer Payment Agreement" or "TPA" means a transfer payment agreement that, depending upon the context, is entered into:
    1. Between the Minister, or the Minister's authorized delegate, and a Recipient, or
    2. Between a Recipient and an Ultimate Recipient; and

    "Ultimate Recipient" means a Person who receives a Payment from a Recipient.

Part II – Purposes and Term of the Program

Purposes

  1. The purposes of the Program are to:
    1. Improve knowledge on how to effectively reduce GHGs from agriculture;
    2. Reduce Ontario agriculture's GHG emissions;
    3. Support implementation of the Soil Strategy;
    4. Improve agricultural soil health in Ontario; and
    5. To do such other things as are commensurate with the preceding purposes.
  2. The Program will consist of the following components:
    1. Cost-Share of GHG Mitigating BMPs, which will involve supporting uptake of BMPs that will mitigate GHGs and that may be positive to soil health (based on existing knowledge at the time of implementation);
    2. Soil Mapping, which will involve continued efforts to revise soil maps and data so as to increase knowledge and inform regional applications and land management decisions;
    3. Tool(s) Development, which will involve enabling better site-specific advice for soil health activities;
    4. Research, Monitoring, Evaluation and Verification, which will involve quantifying site-specific GHG reductions of BMPs and BMP suites and improve knowledge of BMP economics, barriers and motivation to BMP adoption; and
    5. Demonstration Farms and KTT, which will involve activities to support KTT to educate producers and/or enable uptake of BMPs, and will also involve the establishment of sites across Ontario for use of monitoring, demonstration, applied research, etc.

Commencement

  1. The Program will commence on the day this Order is signed.

Termination

  1. The Program will terminate on March 31st, 2022.
  2. Despite anything else contained in this Order or the Guidelines, the Program will automatically terminate in the event there is an insufficient appropriation from the Legislature for any payment that is to be made under the Program. Where the Program is terminated pursuant to this section of this Order, the following rules will apply:
    1. The Program Administrator will post a notice on the Ministry's website where a copy of this Order is posted indicating that the Program has been terminated and the date that the Program was terminated. This Program will be considered terminated as of that date;
    2. The Program Administrator will immediately provide notice of the termination to any third party that is delivering the Program and cause that third party to post a notice on its website indicating that the Program has been terminated as described in clause 7 a). The Program shall be considered terminated as of the date indicated in the notice; and
    3. Any payments otherwise due under this Program for which there is no appropriation will not be paid.
  3. Despite anything else contained in this Order or the Guidelines, this Program may be terminated at the Minister's discretion through the issuance of a Minister's Order terminating the Program, including in the circumstances where there may be insufficient proceeds from Ontario's auction of greenhouse gas emissions allowances to fund the Program. Where a Minister's Order is issued terminating this Program, the following rules will apply:
    1. The Program Administrator will post a notice on the Ministry's website where a copy of this Order is posted, along with a copy of the Minister's Order terminating this Program, indicating that the Program has been terminated and the date that this Program was terminated;
    2. The Program Administrator will immediately provide notice of the termination to any third party that is delivering the Program and cause that third party to post a notice on its website indicating that the Program has been terminated and the date that it was terminated. The Program shall be considered terminated as of the date indicated in the notice; and
    3. Any payments owing under this Program will be paid, unless the Minister's Order terminating this Program provides otherwise.

Part III – Funding

  1. Funding for this Program will be from the monies allocated to the Ministry by the Legislature for the purposes of the Program, and may also include funding from the Climate Change Action Plan auction proceeds, federal funding sources and other sources. The Program Administrator may provide to any Person any funding that is contemplated or permitted under the Program. The Program Administrator may pay for any administrative costs that the Program Administrator determines are reasonable or prudent for the administration of this Program.
  2. Funding allocated to this Program will only be used for the Program and the costs of administering the Program.

Part IV – Administration of the Program

Program Administrator

  1. The Program Administrator will be responsible for the administration and delivery of the Program. This includes:
    1. Establishing standards and procedures for the delivery of all aspects of the Program;
    2. Monitoring the performance of all aspects of the Program;
    3. Establishing Guidelines for the Cost-Share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component and the Demonstration Farms and KTT component of the Program;
    4. Approving anything that needs to be approved for this Program; and
    5. Carrying out all other administrative functions required for the successful operation of the Program.

Exercise of Administrative Powers

  1. The Program Administrator has all necessary authority to deliver the Program.
  2. When exercising any powers granted under or complying with the requirements set out in this Order, the Program Administrator shall do so in compliance with all applicable Requirements of Law.
  3. Where the Program Administrator has selected a third party to deliver the Program, the Program Administrator shall require the third party to deliver the Program in compliance with all applicable Requirements of Law, including the requirements set out in this Order.

Guidelines

  1. The Program Administrator may create Guidelines for this Program or a component of this Program, provided those Guidelines do not conflict with anything contained in this Order. For the purposes of determining whether the Guidelines conflict with this Order, without limitation, a conflict will be found if the Guidelines provide for something that is prohibited under this Order or if the Guidelines provide that something is not needed which is required under this Order.
  2. Where the Program Administrator creates Guidelines, those Guidelines will be posted on the Ministry's website where this Order is posted and on the website of the third party if the third party is delivering the Program.
  3. The Program Administrator may amend the Guidelines. Where the Program Administrator amends the Guidelines, the following rules will apply:
    1. A summary of the amendments to the Guidelines will be posted on the Ministry's website where the Guidelines and this Order are posted;
    2. Amendments to the Guidelines will be posted on the Ministry's website and on the website of the third party if the third party is delivering the Program; and
    3. Any amendments to the Guidelines will be effective as of the date set out therein.
  4. In no case will any amendments to the Guidelines have a retroactive effect. For greater clarity, and absent a termination of the Program under section 7 or 8 of this Order, a Recipient's right to a payment, if any, or an Ultimate Recipient's right to a payment, if any, that may be outstanding at the time any amendments to the Guidelines come into effect, shall, notwithstanding the amendments, be determined in accordance with the Guidelines in force at the time that their entitlement first arose.

Part V – Transfer Payment Agreements

  1. Without limiting the Program Administrator's general administrative authority under Part IV of this Order, the Program Administrator may enter into a TPA with any Person for the purposes of:
    1. Delivering the Program, including its operational control; and
    2. Contributing to the purposes of the Program.
  2. The Minister, through the Program Administrator, shall determine the terms and conditions of any TPA that the Minister may enter into under the Program, provided that the general terms and conditions for the TPA fulfill, subject to any authorized variances, all requirements set out under the Government of Ontario's Transfer Payment Accountability Directive, as amended, as well as other applicable Government of Ontario directives.
  3. For greater certainty, the Minister, through the Program Administrator, may terminate a TPA with a Recipient if that Recipient is in non-compliance with the terms and conditions of the TPA the Recipient entered into with the Minister.

Part VI – Other Agreements

  1. Without limiting the Program Administrator's general administrative authority under Part IV of this Order, the Program Administrator may under that authority enter into an agreement with any Person for the purposes of:
    1. Delivering the Program, including with respect to such matters such as: procurement and memoranda of understanding; and
    2. Contributing to the purposes of the Program.
  2. The Minister, through the Program Administrator, shall determine the terms of the agreement(s) that the Minister may enter into under the Program pursuant to this Part VI.

Part VII – Committees

  1. Without limiting the Program Administrator's general administrative authority under Part IV of this Order, the Program Administrator may under that authority establish one or more committees to provide non-binding advice on administering and delivering the Program or any component of the Program.

Part VIII – Delivery

  1. If the Program Administrator enters into an agreement with a third-party to deliver all or a part the following components of the Program or their subcomponents: i) Cost-share of GHG Mitigating BMPs, ii) the Research, Monitoring, Evaluation and Verification or iii) the Demonstration Farms and KTT, that agreement will include, at a minimum, the following:
    1. The roles and responsibilities for the Program Administrator and the third-party;
    2. The money that the third-party will receive for delivering the Cost-Share of GHG Mitigating BMPs component of this Program or a part thereof;
    3. The money that the third-party will receive for delivering the Demonstration Farms and KTT component of this Program or a part thereof;
    4. The money that the third-party will receive for delivering the Research, Monitoring, Evaluation and Verification component of this Program or a part thereof;
    5. Performance measures, if applicable and appropriate;
    6. Reporting and audit requirements; and
    7. Provisions for corrective action to address any events of default by the third-party.
  2. When delivering any component or subcomponent of this Program, a third-party will do so in compliance with all Requirements of Law.

Part IX – Third-Party Having Operational Control

  1. If the Program Administrator enters into an agreement with a third-party that gives the third-party operational control over all or a part the following components of the Program or their subcomponents: i) Cost-share of GHG Mitigating BMPs, ii) Research, Monitoring, Evaluation and Verification component or iii) over the Demonstration Farms and KTT component, that agreement will include, at a minimum, the following:
    1. The roles and responsibilities for the Program Administrator and the third-party;
    2. The money that the third-party will receive for delivering the Program or a part thereof;
    3. Performance measures, if applicable and appropriate;
    4. Reporting and audit requirements; and
    5. Provisions for corrective action to address any events of default by the third-party.
  2. The Program Administrator may allow a third-party having operational control over the Cost-share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component or the Demonstration Farms and KTT component, to create Guidelines for that component.
  3. Where the Program Administrator allows a third-party having operational control over the Cost-share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component or the Demonstration Farms and KTT component to create Guidelines for that component, the Program Administrator will review those Guidelines before they are operationalized by the third-party to ensure that those Guidelines do not conflict with anything set out in this Order. For the purposes of determining whether the Guidelines conflict with this Order, without limitation by the generality of the following, a conflict will exist if the Guidelines provide for something that is prohibited under this Order or if the Guidelines provide that something is not needed when this Order requires it.
  4. The Program Administrator will require the third-party to post a copy of this Order and the Guidelines on the third-party's website that relates to the Cost-share of GHG Mitigating BMPs component of the Program, the Research, Monitoring, Evaluation and Verification component or the Demonstration Farms and KTT component of the Program, as applicable.
  5. The Program Administrator may allow the third-party to amend the Guidelines for the Cost-Share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component and the Demonstration Farms and KTT component, as applicable. Where the third-party amends the Guidelines, the following will apply:
    1. A summary of the amendments to the Guidelines for the Cost-Share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component and for the Demonstration Farms and KTT component, as applicable, will be posted on the Ministry's website where the Guidelines and this Order are posted;
    2. A summary of the amendments to the Guidelines for the Cost-Share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component and for the Demonstration Farms and KTT component, as applicable, will be posted on the third-party's website that relates to that component;
    3. The amended Guidelines for the Cost-Share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component, and for the Demonstration Farms and KTT component, as applicable, will be posted on the third-party's website that relates to that component;
    4. Any amendments to the Cost-share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component and the Demonstration Farms and KTT component, as applicable, will be effective as of the date set out in the Guidelines for that component. In no case will the Guidelines for the Cost-Share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component or the Demonstration Farms and KTT component have a retroactive effect. For greater clarity, any payments may be calculated based on date from a date previous to the effective date set out in the Guidelines for the Cost-Share of GHG Mitigating BMPs component, Research, Monitoring, Evaluation and Verification component or the Demonstration Farms and KTT, as applicable, and such calculations will not be considered to have a retroactive effect.
  6. The third-party taking operational control over the Cost-share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component or the Demonstration Farms and KTT has all necessary authority to administer that component.
  7. When operating the Cost-share of GHG Mitigating BMPs component, the Research, Monitoring, Evaluation and Verification component, or the Demonstration Farms and KTT component, the third-party will do so in compliance with all Requirements of Law.

Part X – Cost-Share of GHG Mitigating BMPs

Purpose

  1. The purpose of the Cost-Share of GHG Mitigating BMPs component of the Program will be to increase the use of BMPs that will mitigate GHGs so as to reduce GHG reductions.

Guidelines

  1. (1) The Program Administrator will be responsible for establishing in the Guidelines for the Cost-Share of GHG Mitigating BMPs component of the Program the following as needed:
    1. Administrative deadlines;
    2. Formulas for funding for the Cost-Share of GHG Mitigating BMPs component of the Program;
    3. Funding Caps;
    4. Process and evaluation criteria for funding, including with respect to the proof required to demonstrate that the BMPs applied for will result in the specific BMP being employed on additional and incremental acres;
    5. Additional definitions for the Cost-Share of GHG Mitigating BMPs component of the Program to those already established within this Order;
    6. Additional criteria to what are already expressly set out in this Order to exclude Persons from the Cost-Share of GHG Mitigating BMPs component of the Program;
    7. Rules, terms and conditions for making any Payments under the Cost-Share of GHG Mitigating BMPs component of the Program, including eligible and ineligible costs and eligible and ineligible activities, not already set out in this Order;
    8. Terms and conditions of the Cost-Share of GHG Mitigating BMPs component of the Program, including with respect to stacked funding;
    9. Record-keeping requirements;
    10. Reporting and audit requirements in addition to what is set out under this Order;
    11. Additional categories of Eligible Costs and the types of costs that fall within those categories of Eligible Costs, in the Guideline; and
    12. Additional application rules.

    (2) Despite anything in this Part of the Order, the Program Administrator may use the guidelines created for an initiative providing cost-share funding for the BMPs covered under this Part of the Order established under the CAP SI Order as the Guidelines for this Cost-Share of GHG Mitigating BMPs component.

Funding

  1. The Cost-Share of GHG Mitigating BMPs component shall operate on a cost-share basis, whereby Ultimate Recipients will be provided with a percentage amount of funding, as set out in the Guidelines, for any Eligible Costs associated with a Project that are set out in the Guidelines. The Guidelines for the Cost-Share of GHG Mitigating BMPs component may establish specific Projects which will have priority in determining eligibility for Program funding. Ultimate Recipients shall bear the remaining percentage of costs for the Project. Ultimate Recipients may stack funding in accordance with the terms and conditions set out in the Guidelines for the Cost-Share of GHG Mitigating BMPs component.
  2. Funding under the Cost-Share of GHG Mitigating BMPs component shall be subject to the funding allocation made to the Program, and will be subject to the restrictions set out in the Guidelines.
  3. To receive funding under the Cost-Share of GHG Mitigating BMPs component, Ultimate Recipients will have to provide reasonable proof, in accordance with the stipulations set out in the Guidelines, that the BMPs applied for will result in the specific BMP being employed on additional and incremental acres.

Eligibility Requirements

  1. No Person shall be considered eligible to participate in the Cost-Share of GHG Mitigating BMPs component of the Program established under this Order unless that Person meets all eligibility requirements set out under this Part of the Order.
  2. (1) The Cost-Share of GHG Mitigating BMPs component of the Program shall be application-based.

    (2) Despite anything in this Part of the Order, the Program Administrator may use an application form created for an initiative providing cost-share funding established under the CAP SI Order for BMPs covered under this Part of the Order as the application form for this Cost-Share of GHG Mitigating BMPs component.

    (3) Despite anything in this Part of the Order, a Person that applies to an initiative providing cost-share funding established under the CAP SI Order for BMPs covered under this Part of the Order will be deemed to have applied to this Cost-Share of GHG Mitigating BMPs component provided that Person applied to that initiative by the applicable deadline set out for that initiative.
  3. (1) At a minimum, an Applicant shall meet the following general eligibility requirements in order to be eligible to participate the Cost-Share of GHG Mitigating BMPs component of this Program established under this Order:
    1. Be a Person;
    2. Applies to this Cost-Share of GHG Mitigating BMPs component using a Program Administrator-approved application form;
    3. Submits a completed application form for this Cost-Share of GHG Mitigating BMPs component by the applicable deadline;
    4. Provides:
      1. Its CRA BN, or
      2. Its SIN if the Applicant is not eligible to receive a CRA BN and the Person is eligible to receive funding under this Cost-Share of GHG Mitigating BMPs component;
    5. If the Applicant is required under the Farm Registration and Farm Organizations Funding Act, 1993 to have a FBRN, the Applicant provides:
      1. Its FBRN, or
      2. In the event the Applicant is unable to obtain a FBRN, the Applicant provides:
        1. An Order issued by the Agriculture, Food and Rural Affairs Appeal Tribunal exempting the Applicant from having to have a FBRN,
        2. A letter from the Indian Agriculture Program of Ontario verifying the Applicant's farm business operates within a Reserve, as defined under the Indian Act (Canada), or
        3. Income statements or other evidence that is acceptable to the Program Administrator demonstrating the annual gross income for the farming business was equal to or greater than the amount prescribed under section 1(1) of Ontario Regulation 723/93 for:
          1. The previous fiscal year of the farming business, or
          2. The current fiscal year of the farming business;
    6. Provides the Applicant's Premises ID, if applicable;
    7. Agrees any and all intellectual property rights arising from participation in this Cost-Share of GHG Mitigating BMPs component will be his/her/its/theirs;
    8. Agrees to be bound by the requirements, terms and conditions of this Cost-Share of GHG Mitigating BMPs component, as set out in this Order and the Guidelines;
    9. Agrees to enter into a contract with Ontario as well as agrees to comply with the terms and conditions of that contract; and
    10. Is in compliance with, agrees to remain in compliance with, as well as remains in compliance with all Requirements of Law.

    (2) Despite anything in this Part of the Order, and Applicant that loses his/her/its/their eligibility to participate in an initiative providing cost-share funding established under the CAP SI Order for BMPs covered under this Part of the Order will also lose his/her/its/their eligibility to participate in this Cost-Share of GHG Mitigating BMPs component.

    (3) Despite anything in this Part of the Order, an Applicant found to be eligible to participate in an initiative providing cost-share funding established under the CAP SI Order for BMPs covered under this Part of the Order will be deemed to be eligible to participate under this Cost-Share of GHG Mitigating BMPs component.

    (4) Despite section 41(2) of this Order, an Applicant may not receive funding pursuant to this Part of the Order if there are insufficient funds to pay all Applicants who have been deemed to be eligible to participate in this Cost-Share of GHG Mitigating BMPs component pursuant to section 41(2) of this Order.

Eligible and Ineligible Costs

  1. "Eligible Costs" are those costs that are, in Ontario's sole and absolute discretion, properly and reasonably incurred, as well as paid or reimbursed by the Recipient or Ultimate Recipient, as the case may be, and are necessary for the successful completion of the Project. For greater clarity, the following costs are Eligible Costs and shall be eligible for funding under the GHG Mitigating BMPs component of this Program:
    1. The costs for the purchase/modification/rental of No-till equipment and/or for fees for custom operators.
    2. The costs for the purchase/modification/rental of Strip-till equipment and/or for fees for custom operators.
    3. The costs for the purchase of trees and planting the trees for the purpose of carbon sequestration in woody biomass, which may be achieved through practices that may include windbreaks, buffer strips, and retiring marginal and fragile lands.
    4. Such further and other Eligible Costs as may be established in the Guidelines for the Cost-Share of GHG Mitigating BMPs component of the Program by the Program Administrator.
    5. Such other costs that are, in the Ontario's sole and absolute discretion, direct, incremental and necessary for the successful completion of the Cost-Share of GHG Mitigating BMPs component of the Program or a Project, as the case may be, provided that those costs have been approved in writing by the Program Administrator or an authorized third party agent prior to being incurred.
  2. The Program Administrator may add other Eligible Costs in the Guidelines for the Cost-Share of GHG Mitigating BMPs component of this Program, provided those costs are consistent with the purposes of the Program.
  3. The following costs are "Ineligible Costs", and are ineligible for funding under the Cost-Share of GHG Mitigating BMPs component of this Program:
    1. The costs of BMPs implemented that will not result in a measurable and incremental reduction in GHG emissions due to the selected BMP and/or location of the proposed BMP's implementation.
    2. Such further and other Ineligible Costs as may be established in the Guidelines for the Cost-Share of GHG Mitigating BMPs component of the Program by the Program Administrator.

Part XI – Soil Mapping

Purpose

  1. The purpose of the Soil Mapping component is to ensure delivery of reliable soil maps and data and tools to allow for informed decision-making, land management and analysis by producers, industry, government and the public. It seeks to ensure:
    1. Soil inventory data and maps are current, well-documented, replicable and defensible;
    2. Soil data and maps are comprehensive, accessible, flexible and, where possible, publicly available; and
    3. That soil data and maps provide for a wide range of analysis and decision-making.

Part XII – Tool(s) Development

Purpose

  1. The Tool(s) Development component's purpose is to develop tool(s) designed to estimate GHG emissions based on information entered for individual farms. The tool(s) developed under this component should:
    1. Enable users to estimate GHG emissions based on information entered for individual farms;
    2. Enable users to contemplate possible options that might reduce GHG emissions;
    3. Facilitate interaction between the Ministry and users of the tool;
    4. Enable users to advance the Program's purposes;
    5. Enable the effective share of data within the Ministry, with other ministries, and other organizations; and
    6. Be publicly available on commonly used computing devices and platforms

Part XIII – Research, Monitoring, Evaluation and Verification

Purpose

  1. The purpose of the Research, Monitoring, Evaluation and Verification component is to improve knowledge so as to inform adaptive Program design and implementation. Activities in this component will include:
    1. Improving knowledge of quantified GHG reductions associated with BMPs, producer economics, cost effectiveness, and soil health/water quality co-benefits quality;
    2. Socio-economic research and/or analysis to determine motivations and barriers to BMP adoption;
    3. Academic research, applied research, on-farm research, enabling citizen science;
    4. Gathering baseline data; and
    5. Purchasing capital and labour to support the above listed activities.

Funding

  1. Funding under the Research, Monitoring, Evaluation and Verification component shall be subject to the funding allocation made to the Program, and will be subject to the restrictions set out in the Guidelines.

Eligibility Requirements

  1. No Person shall be considered eligible to participate in the Research, Monitoring, Evaluation and Verification component of the Program established under this Order unless that Person meets all eligibility requirements set out under this Part of this Order and any applicable Guidelines.
  2. At a minimum, an applicant shall meet the following general eligibility requirements in order to be eligible to participate the Research, Monitoring, Evaluation and Verification component of this Program established under this Order:
    1. Be a Person;
    2. Enter into a contract and agree to comply with the terms and conditions of the Program as set out in this Order and in the Guidelines for the Research, Monitoring, Evaluation and Verification component of the Program;
    3. Be in compliance with all Requirements of Law at the time that the application is submitted and remain in compliance with all Requirements of Law while participating in the Program; and
    4. Have appropriate governance structures, accountability and control processes in place to administer and manage the TPA funds.

Guidelines

  1. The Program Administrator will be responsible for establishing in the Guidelines for the Research, Monitoring, Evaluation and Verification component of the Program the following as needed:
    1. Administrative deadlines;
    2. Process and evaluation criteria for Project selections, and other activities relating to Research, Monitoring, Evaluation and Verification:
    3. Additional definitions for the Research, Monitoring, Evaluation and Verification component of the Program to those already established within this Order;
    4. Additional criteria to what are already expressly set out in this Order to exclude Persons from the Research, Monitoring, Evaluation and Verification component of the Program;
    5. Rules, terms and conditions for making any Payments under the Research, Monitoring, Evaluation and Verification component of the Program, including eligible and ineligible costs and eligible and ineligible activities, not already set out in this Order;
    6. Terms and conditions of the Research, Monitoring, Evaluation and Verification component of the Program;
    7. Record-keeping requirements;
    8. Have appropriate governance structures, accountability and control processes in place to administer and manage the TPA funds.
    9. Reporting and audit requirements; and
    10. Additional application rules. 

Eligible and Ineligible Costs

  1. "Eligible Costs" are those costs that are, in Ontario's sole and absolute discretion, properly and reasonably incurred, as well as paid or reimbursed by the Recipient or Ultimate Recipient, as the case may be, and are necessary for the successful completion of the Project. For greater clarity, the following costs are Eligible Costs and shall be eligible for funding under the Research, Monitoring, Evaluation and Verification component of the Program:
    1. Costs for academic research, applied research, on-farm research, enabling citizen science, setting up monitoring equipment, and labour expenses to carry out these activities.
    2. Such further and other Eligible Costs as may be established in the Guidelines for the Research, Monitoring, Evaluation and Verification component of the Program by the Program Administrator.
    3. Such other costs that are, in the Ontario's sole and absolute discretion, direct, incremental and necessary for the successful completion of the Research, Monitoring, Evaluation and Verification component of the Program or a Project, as the case may be, provided that those costs have been approved in writing by the Program Administrator or an authorized third party agent prior to being incurred.
  2. The Program Administrator may add other Eligible Costs in the Guidelines for the Research, Monitoring, Evaluation and Verification component of this Program, provided those costs are consistent with the purposes of the Program.
  3. The following costs are "Ineligible Costs", and are ineligible for funding under the Research, Monitoring, Evaluation and Verification component of this Program:
    1. Any costs not directly associated with the Research, Monitoring, Evaluation and Verification component of the Program.
    2. Such further and other Ineligible Costs as may be established in the Guidelines for the Research, Monitoring, Evaluation and Verification component of the Program by the Program Administrator.

Part XIV – Demonstration Farms and KTT

Purpose

  1. The purpose of the Demonstration Farms and KTT component is to drive adoption of BMPs that support GHG reductions and benefit soil health through technological transfer and demonstration. This may involve providing support for building capacity, establishing a network of sites across Ontario that could be used for demonstration, on-farm long-term research, and monitoring.

Funding

  1. Funding under the Demonstration Farm and KTT component shall be subject to the funding allocation made to the Program, and will be subject to the restrictions set out in the Guidelines.

Eligibility Requirements

  1. No Person shall be considered eligible to participate in the Demonstration Farm and KTT component of the Program established under this Order unless that Person meets all eligibility requirements set out under this Part of this Order and any applicable Guidelines.
  2. At a minimum, an applicant shall meet the following general eligibility requirements in order to be eligible to participate the Demonstration Farm and KTT component of this Program established under this Order:
    1. Be a Person;
    2. Applies to this Demonstration Farm and KTT component using a Program Administrator-approved application form;
    3. Submits a completed application form for this Demonstration Farm and KTT component by the applicable deadline;
    4. Provides:
      1. Its CRA BN, or
      2. Its SIN if the Applicant is not eligible to receive a CRA BN and the Applicant is eligible to receive funding under this Demonstration Farm and KTT component;
    5. If the Applicant is required under the Farm Registration and Farm Organizations Funding Act, 1993 to have a FBRN, the Applicant provides:
      1. Its FBRN, or
      2. In the event the Applicant is unable to obtain a FBRN, the Applicant provides:
        1. An Order issued by the Agriculture, Food and Rural Affairs Appeal Tribunal exempting the Applicants from having to have a FBRN,
        2. A letter from the Indian Agriculture Program of Ontario verifying the Applicant's farm business operates within a Reserve, as defined under the Indian Act (Canada), or
        3. Income statements or other evidence that is acceptable to the Program Administrator demonstrating the annual gross income for the farming business was equal to or greater than the amount prescribed under section 1(1) of Ontario Regulation 723/93 for:
          1. The previous fiscal year of the farming business, or
          2. The current fiscal year of the farming business;
    6. Provides its Premises ID, if applicable;
    7. Agrees any and all intellectual property rights arising from participation in this Demonstration Farm and KTT component will be his/her/its/theirs;
    8. Agrees to be bound by the requirements, terms and conditions of this Demonstration Farm and KTT component, as set out in this Order and the Guidelines;
    9. Agrees to enter into a contract with Ontario as well as agrees to comply with the terms and conditions of that contract; and
    10. Is in compliance with, agrees to remain in compliance with, as well as remains in compliance with all Requirements of Law.

Guidelines

  1. The Program Administrator will be responsible for establishing in the Guidelines for the Demonstration Farm and KTT component of the Program the following as needed:
    1. Administrative deadlines;
    2. Process and evaluation criteria for Project and site selections, and other activities relating to Demonstration Farms and KTT:
    3. Additional definitions for the Demonstration Farm and KTT component of the Program to those already established within this Order;
    4. Additional criteria to what are already expressly set out in this Order to exclude Persons from the Demonstration Farm and KTT component of the Program;
    5. Rules, terms and conditions for making any Payments under Demonstration Farm and KTT component of the Program, including eligible and ineligible costs and eligible and ineligible activities, not already set out in this Order;
    6. Funding caps;
    7. Terms and conditions of the Demonstration Farm and KTT component of the Program;
    8. Record-keeping requirements;
    9. Reporting and audit requirements;
    10. Additional categories of Eligible Costs and the types of costs that fall within those categories of Eligible Costs, in the Guideline; and
    11. Additional application rules.

Eligible and Ineligible Costs

  1. "Eligible Costs" are those costs that are, in Ontario's sole and absolute discretion, properly and reasonably incurred, as well as paid or reimbursed by the Recipient or Ultimate Recipient, as the case may be, and are necessary for the successful completion of the Project. For greater clarity, the following costs are Eligible Costs and shall be eligible for funding under the Demonstration Farms and KTT component of the Program:
    1. Costs for undertakings by demonstration farms that result in quantifiable GHG emission reductions (such as for tillage/no tillage, cover crops, manure and fertilizer management, improved animal nutrition, fossil fuel usage, and other techniques that can show reduced GHG emissions), including for equipment, monitoring, verification, staff salary, staff benefits, workshops, tours, and communications to the public, and farmer stipends.
    2. Costs incurred by demonstration farms for establishing a governance structure to oversee demonstration farm activities.
    3. Costs for KTT, including for labour, capital, technical and advisory services, materials needed to promote and drive BMP adoption and to raise awareness of BMPs.
    4. Costs for modelling, assessment, monitoring, accounting and reporting of operational data in order to report on Demonstration Farms and KTT component Project outcomes, including with respect to GHG emissions.
    5. Such further and other Eligible Costs as may be established in the Guidelines for the Demonstration Farms and KTT component of the Program by the Program Administrator.
    6. Such other costs that are, in the Ontario's sole and absolute discretion, direct, incremental and necessary for the successful completion of the Demonstration Farms and KTT component of the Program or a Project, as the case may be, provided that those costs have been approved in writing by the Program Administrator or an authorized third party agent prior to being incurred.
  2. The Program Administrator may add other Eligible Costs in the Guidelines for the Demonstration Farms and KTT component of this Program, provided those costs are consistent with the purposes of the Program.
  3. The following costs are "Ineligible Costs", and are ineligible for funding under Demonstration Farms and KTT component of this Program:
    1. Any costs not directly associated with the Demonstration Farms and KTT component of the Program.
    2. Such further and other Ineligible Costs as may be established in the Guidelines for the Demonstration Farms and KTT component of the Program by the Program Administrator. 

Part XV – Collection, Use and Disclosure of Information and Audits under the Program

Consent To Collection, Use and Disclosure Of Information

  1. The collection of personal information, as defined under the Freedom of Information and Protection of Privacy Act, is necessary for the proper administration of this Program. The Program Administrator will only collect the minimum personal information necessary to meet the Program's objectives. A Person that applies to, participates in or receives a Payment under any component of this Program will consent to the collection of any personal information, as defined under the Freedom of Information and Protection of Privacy Act, that is necessary for the administration of that Initiative.
  2. A Person that applies to, participates in or receives a Payment under any component of this Program will consent to the use and disclosure of any personal information that is collected pursuant to this Order, for the purposes of:
    1. Verifying any information the Participant has provided;
    2. Confirming the Recipient or Ultimate Recipient paid taxes on any Program Payments the Recipient or Ultimate Recipient received under the Initiative;
    3. Conducting audits;
    4. Enforcing the terms and conditions of the Initiative;
    5. Collecting any debts the Recipient or Ultimate Recipient may owe in relation to the Initiative; and
    6. Any other use and disclosure set out in the Initiative's Guidelines.
  3. Applications to any application-based component of the Program will contain a notice of collection of personal information and require the Applicant to indicate he/she/it/they consent to the collection of that information as well as for the use and disclosure of that information for the purposes set out under section 63 of this Order.
  4. (1) A Person participating as a sole proprietor, a partner within a partnership or a member of an unincorporated association authorizes the collection and use of his/her/its/their SIN where he/she/it/they do not have a CRA BN and that Person is eligible to receive a Payment under any component of this Program.

    (2) Where it is necessary to collect a Person's SIN under any component of this Program, that Person's SIN will only be used for the purposes set out under sections 63(b), (c), (d) and (e) of this Order.

    (3) Where it is necessary to collect a Person's SIN, he/she/it/they consent to the use and disclosure of his/her/its/their SIN to any government department/ministry, agency or third party for the purposes set out under sections 63(b), (c), (d) and (e) of this Order.

Audits

  1. Any Person who has an agreement under the Program will provide any information that is requested within ten (10) Business Days of the request unless the request for information contains a different deadline, in which case the information will be provided in accordance with that request for information.
  2. Any Person who receives a Payment under the Program will retain all records relating to that Payment for a period of at least seven (7) years from the date in which that Payment was received.
  3. Any Person who has an agreement under the Program will consent to any audits that may be conducted in relation to that agreement, whether those audits are conducted by Ontario or an authorized third party. Any such audit may be conducted upon giving the Person who has the agreement under the Program a minimum of twenty-four (24) hours' notice during normal business hours. This auditing authority includes the ability to enter upon premises of the Person who has an agreement under the Program to review the progress of the project or how any payment has been spent.
  4. Any Person who has an agreement under the Program will provide reasonable assistance during any audit. This includes:
    1. Allowing access to any person, place or thing required for auditing purposes within ten (10) Business Days of the request being made for access to that person, place or thing unless the request or access to that person, place or thing contains a different deadline, in which case access to the person, place or thing will be provided in accordance with that request for access to the person, place or thing.
    2. Allowing for the inspection of any records that relate to the agreement entered into;
    3. The taking of pictures or other recordings; and
    4. Allowing for the copying of any records that relate to the agreement entered into as well as the removal of any copied documents from the premises of the person that has the agreement.
  5. Applications for a component under this Program will contain a notice about the audit rights set out under this Part XV of the Order and require the Applicant to indicate the Applicant consents to having audits conducted, if required.

Part XVI – General

  1. An application to the Program for a Payment shall not create a legal or other right to any Payment under the Program.
  2. Payments under the Program may be pro-rated.
  3. Payments made under the Program will be considered as income for tax purposes.
  4. A Recipient shall not assign any Payments made under the Program to a third person without first obtaining the prior written authorization of the Program Administrator.
  5. Any Payment a Person may be eligible to receive under the Program may be set off against any existing debt that that Person owes to the Crown. The right of set off is in addition to any other legal remedies that Her Majesty the Queen in Right of Ontario may have at law, equity or otherwise to recover any debt that a Person may owe to Her Majesty the Queen in Right of Ontario as a result of that Person receiving a Payment (through administrative error or otherwise) under this Program that that Person was not otherwise eligible to receive.
  6. The termination of the Program will not, in any way, negate the obligation of a Recipient of the Program to repay any outstanding amounts owing to the Crown under the Program.
  7. Any Person that provides false or misleading information under the Program shall have their participation in the Program immediately terminated. Any Payments that the Person received under the Program, including those provided prior to the submission of the false or misleading information, shall be deemed to be an Overpayment and shall constitute a debt that is owed to Her Majesty the Queen in Right of Ontario payable immediately upon demand.
  8. A Person that provides false or misleading information or was negligent with respect to the provision of information submitted under this Program will not be eligible to continue to participate in the Program, unless the Minister deems it appropriate to reinstate them.
  9. Her Majesty the Queen in Right of Ontario may charge interest on the debt that a Person owes as a result of receiving a Payment (through administrative error or otherwise) that that Person was not otherwise eligible to receive at the applicable interest rate that is charged by Her Majesty the Queen in Right of Ontario.
  10. Funding for this Program is being provided in connection with a social and economic policy and this Program is considered to be a social or economic program.

Part XVII – Collection of Debt/Overpayments

Collection of Debts from a Recipient

  1. Any Payment a potential Recipient may be eligible to receive under any Initiative within the Program may be set off against any existing debt that that Person owes to Ontario.
  2. If a Recipient receives a Payment, or part thereof, from the Crown through administrative error or otherwise, that that Recipient was not otherwise entitled to receive under an Initiative, that Payment, or part thereof, shall be deemed to be an overpayment and shall constitute a debt that is owed to Ontario payable immediately by the Recipient upon demand.
  3. For greater certainty, the termination of the Program does not, in any way, affect a Recipient's obligation to repay the Payment that that Recipient received from the Crown, through administrative error or otherwise, under the Program if that Recipient was not eligible to receive that Payment to begin with.
  4. The right of set off is in addition to any other legal remedies that Ontario may have at law, equity or otherwise to recover any debt that a Recipient may owe to Ontario as a result of that Recipient receiving a Payment, through administrative error or otherwise, under any Initiative within the Program that that Recipient was not otherwise eligible to receive.

Collection of Debts from Ultimate Recipients

  1. A Recipient shall be required to collect any debts arising from an Ultimate Recipient receiving a Payment, or part thereof, from the Recipient, through administrative error or otherwise, that that Ultimate Recipient was not otherwise eligible to receive under the Initiative.
  2. For greater certainty, the termination of the Program does not, in any way, affect a Recipient's obligation to collect any debts arising from an Ultimate Recipient receiving a Payment, or part thereof, from the Recipient, through administrative error or otherwise, that that Ultimate Recipient was not otherwise eligible to receive under the Initiative.
  3. If an Ultimate Recipient receives a Payment, or part thereof, from the Recipient through administrative error or otherwise, that that Ultimate Recipient was not otherwise eligible to receive under an Initiative, that Payment, or part thereof, shall be deemed to be an overpayment and shall constitute a debt that is owed by the Ultimate Recipient to the Recipient and is payable immediately by the Ultimate Recipient upon demand.
  4. For greater certainty, the termination of Program does not, in any way, affect an Ultimate Recipient's obligation to repay the Payment, or part thereof, that that Ultimate Recipient received from the Recipient, through administrative error or otherwise, under the Initiative if that Ultimate Recipient was not eligible to receive that Payment to begin with.
  5. A Recipient may ask Ontario to set-off any debt that an Ultimate Recipient owes to the Recipient against any debt that Ontario may owe to the Ultimate Recipient.

This Order is effective as of the date of signature set out below.

Original signed by

The Honourable Jeff Leal
Minister of Agriculture, Food and Rural Affairs

Executed on this 27th day of March, 2018.


For more information:
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E-mail: ag.info.omafra@ontario.ca
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