Regulatory Approvals ProcessRegulatory Approvals Processfor Energy Projects in Ontario

Nishnawbe Aski Nation Energy Conference

fMinistry of the EnvironmentFebruary 1, 2012

Overview of Regulatory ProcessesOverview of Regulatory Processes

• In Ontario, different regulatory processes apply to different types of , g y p pp y ypenergy projects which are based on the expected environmental effects of a project and apply equally to public and private sectors.

• These various regulatory processes include:

• The Electricity Projects Regulation (O.Reg. 116) made under the Environmental Assessment Act.

• Class Environmental Assessment for Waterpower Projects.

• Renewable Energy Approval Regulation (O.Reg 359) made under the Environmental Protection Act.

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Electricity Projects RegulationElectricity Projects Regulation

• Prior to 2001 private sector energy proponents were notPrior to 2001, private sector energy proponents were not subject to the Environmental Assessment Act (EAA) unless designated by Minister/Cabinet.In April 2001 the Ontario government passed Ontario• In April 2001, the Ontario government passed Ontario Regulation 116/01 - Electricity Projects Regulation, to protect the environment and create a level playing field in a

titi l t i it k tcompetitive electricity market. • Environmental assessment requirements for electricity

projects specified in O. Reg. 116/01 are based on the expected environmental effects of a project, and apply equally to public and private sectors.

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Electricity Projects RegulationCProject Categories

• Three categories of projects are recognized, based on the expected environmental effects:

• Category A: Projects that have minimal environmental effects therefore not subject to the EAA (i.e. transmission line less than 115 kV or natural

f ilit l th 5 MW)gas facility less than 5 MW).• Category B: Projects that have environmental effects that are

predictable and can easily be mitigated. These projects must follow an Environmental Screening Process (i e natural gas facility greater than 5Environmental Screening Process (i.e. natural gas facility greater than 5 MW).

• Category C: Projects with known significant environmental effects. These must complete an Individual Environmental Assessment (i.e. transmission line greater than 115 kW and longer than 50 km).

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Electricity Projects RegulationSStreamlined Process

• Environmental Screening Process (ESP) is a streamlined, proponent-led, self-assessment process and requires proponents to:

• identify the potential environmental effects of their project• consult with appropriate agencies, members of the public, and

Aboriginal communities• outline measures to mitigate or manage environmental effects• conduct appropriate studies• document screening into report and make publicly available

• The ESP requires that impacts on a broadly defined environment be assessed (i.e., impacts on the natural environment as well as social and economic impacts must be assessed).

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Class EA for Waterpower Projects

• Class EA for Waterpower Projects (October 2008) applies to all waterpower projects less than 200 MW in size.

Class EA for Waterpower Projects

• For waterpower projects greater than 200 MW, the Individual Environmental Assessment process applies.

• Projects that are subject to the Class EA include:• New waterpower facility < 200 MW (Category B projects under O Reg 116/01)• New waterpower facility < 200 MW (Category B projects under O. Reg. 116/01)• Expansion/change to an existing facility > 25%, resulting in < 200 MW nameplate capacity • Expansion/change to an existing facility < 25% (follows addendum procedures)

• If proponent chooses, they can include these components as part of Class EA process:p

• Transmission lines ≥ 115 kV and are associated with the project• Transformer or distribution stations that are ≥ 115 kV and associated with the project

• Under the Class EA, all projects require an evaluation and assessment of the potential impacts and benefits of the project, which should be commensurate with the janticipated potential environmental effects and in consideration of the surrounding environment

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Environmental Assessment and Approvals Process for Waterpower Projectsfor Waterpower Projects

ApprovalsPlan the

Class EA &Proponent Prepares

Review of Final Reports

Review of Review of Part II Order ApprovalsApprovals

Pre EA

Site Release/Applicant of Record

Class EA & Screening Process

Based on Federal Scoping Document/

ProvincialWaterpower Class EA

pEnvironmental

& Screening Reports

Based on Federal Scoping Document/

Waterpower Class EA Requirements

Federal and Provincial EA Requirements

Final Reports Public Review Period

Based on Federal Scoping Document/

Waterpower Class EA Requirements

RequestsMinister’s Decision

Based onWaterpower Class EA

Requirements

Federal Process Ends,Provincial EA

process continues w/

review of PIIO

ApprovalsAnd Permits

Based on Federal And Provincial

Regulations

OWRA and EPA approvals (MOE)

Lake & Rivers Improvement Act approvals (MNR)

ABORIGINAL CONSULTATION THROUGHOUT EA PROCESS

Lake & Rivers Improvement Act approvals (MNR)

Land Use Permits (MNR)

Cultural Heritage Clearance (MTC)

Notice of Project Construction (MOL)

Leave to Construct (OEB)

A th i ti f W k ff ti Fi h H bit tAuthorization of Works affecting Fish Habitat (DFO)

Approval for Construction in Navigable Waters (TC)

Building Permit (Municipal)

Public Consultation Opportunities

Proponent led coordinated EA process.

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Renewable Energy Approval Processgy pp

• As part of the Green Energy Act, the Ministry established a new Renewable Energy Approval (REA) process. The REA is a single multi-media approval that integrates various provincial and municipal approvals related to environmental health andvarious provincial and municipal approvals related to environmental, health and safety matters.

• The Renewable Energy Approval Regulation under the Environmental Protection Act (O. Reg. 359/09) came into force on September 24, 2009. Amendments to O.Reg 359/09 were made in January 2011 to clarify certain provisions and bring them in line359/09 were made in January 2011 to clarify certain provisions and bring them in line with the original intent of the regulation.

• The REA process enhances coordination between the Ministry and other provincial agencies (MNR, MTO, MTC and Conservation Authorities) to provide a six month service guarantee for proponents of renewable energy projectsservice guarantee for proponents of renewable energy projects.

• Up front province identification of Aboriginal communities that applicants must consult is also a key feature of the REA (coordinated with MOE, Energy, MNR and MAA).

• The Ministry established setbacks for renewable energy projects that are protective of• The Ministry established setbacks for renewable energy projects that are protective of human health and the environment. For example, for large-scale on-shore wind projects, the minimum setback from a sensitive receptor is 550 metres.

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Renewable Energy Approval ProcessWhat’s in and What’s OutWhat s in and What s Out

Wind Facilities• Over 3kW but less than 50kW (streamlined requirements)

O er 50kW (incl ding setbacks)• Over 50kW (including setbacks)• All off-shore wind projects (On February 11, 2011 the Ministries of the Environment, Natural Resources and Energy

announced that Ontario is not proceeding with proposed off-shore wind projects while further scientific research is conducted.)

Solar Facilities• Ground mounted over 12kWGround mounted over 12kW • No approval required for rooftop or wall mounted of any size• Prime agricultural land restrictions within the Feed-in Tariff contract rules

Bio-energy FacilitiesD fi d i th G E A t bi bi bi f l• Defined in the Green Energy Act as biomass, biogas or biofuel

• Can be anaerobic digestion or thermal treatment facilities• No approval required for farm-based operations addressed under the Nutrient Management

Act

Waterpower Facilities• Does not require an REA; existing Class EA and MOE/MNR approvals still apply

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Renewable Energy Approval Process Overview

Approval Process Service guarantee of 6 monthsRenewable Energy

EBR Decision

Notice

Approval Process - Service guarantee of 6 months

Studies &

Renewable Energy Facilitation Office

EBR Proposal

Notice

ProvincialReview

CompleteSubmission

(Ministry accepts

application)

Consultation• municipal consultation• public consultation• technology specific requirements• MNR/MTC letters for

Approvals• MOE REA• MNR permits• MTO permits• CA permit

REA AppealsProcess

(6 month

Proponent’sProject

Concept

application)

Specific Requirements (e.g.,

crown tenure documents issued, building permit process)

MNR/MTC letters for related assessments

(6 month maximum)

Aboriginal Consultation

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Transmission Lines

Three (3) streams of approvals exist for transmission lines:• Lines associated with an energy generation project and are greater than 115

kV bj t t th El t i it P j t R l ti (O R 116)kV are subject to the Electricity Projects Regulation (O.Reg 116)• Lines not associated with an energy generation project and are:

• 115 kV and > 2 km or• > 115 kV and < 500 kV and between 2 km to 50 kmare subject to the Class EA for Minor Transmission Facilities (Hydro

One)• Lines with a capacity of:

115 kV t 500 kV d ≥ 50 k• 115 kV to 500 kV and ≥ 50 km or• ≥ 500 kV and > 2 kmare subject to an Individual Environmental Assessment

**Renewable energy projects that have transmission lines less than 50 km are considered part of the project and will be included in the Renewable Energy Approval, therefore do not have to go through a separate approval process noted above.

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Appendix A - Resources

• Information on MOE’s Energy Approval processes:http://www ene gov on ca/environment/en/category/energy/index htmhttp://www.ene.gov.on.ca/environment/en/category/energy/index.htm

• Information on MOE’s EA process:www.ene.gov.on.ca/environment/en/industry/assessment_and_approvals/environmental_assessments

/index.htm

• Renewable Energy General information on the MOE Website:www.ene.gov.on.ca/environment/en/subject/renewable_energy/index.htm

• Renewable Energy Approval Technical Guide:http://www.ene.gov.on.ca/stdprodconsume/groups/lr/@ene/@resources/documents/resource/stdprod_

088422.pdf

• Public website for REA Projects:http://www.ene.gov.on.ca/environment/en/subject/renewable energy/projects/index.htmp g j _ gy p j

• Ontario Waterpower Association website: http://owa.ca/

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