GUIDE Provincial approvals for Renewable Energy Projects PIBS 7394e01 © Queen’s Printer for Ontario, 2011 Contents 1. Introduction 3 2. Overview of the approvals process 7 3. Consultation requirements 23 4. Protecting cultural heritage and the natural environment 27 5. Wind facility requirements 37 6. Solar facility requirements 47 7. Bio-energy facility requirements 55 8. Waterpower facility requirements 63 9. Helpful contacts 71 1 2 intRoduction 3 1. Introduction pollutants that pose both short- and long-term risks to the environment and our health. Ontario’s green initiatives, including the Green Energy Act, A key goal of Ontario’s approach to renewable energy project 2009 (GEA) and the Renewable Energy Approval (REA), are approvals is to provide certainty and clarity in the process transforming the energy landscape and requirements. Ontario has made and strengthening the province’s the approval process more modern the Green Energy Act commitment to conservation. and straightforward. These measures reflect Ontario’s With the updated approach and new leadership in harvesting the benefits Introduced early in 2009, rules, Ontario’s renewable energy to the economy, public health and the the Green Energy and Green capacity can grow more quickly. The environment that renewable energy Economy Act, 2009 paved the renewable energy sector can create projects create. The GEA and REA way for quicker development more jobs because projects are able to support energy projects that reduce of renewable energy projects in move forward faster. At the same time, our use of fossil fuels and provide Ontario. It triggered changes to provincial ministries carefully consider clean, sustainable power today and in the rules for obtaining approval projects’ potential impacts on the the future. Along with other electricity for most types of projects. The environment, human health and safety. policies, they are key elements in Renewable Energy Approval The province remains committed to a Ontario’s commitment to phase out (REA), issued by the Ministry strong framework of environmental and coal-fired generation at Ontario Power of the Environment, is one of public health protection that covers Generation power plants. Using coal the approvals the provincial renewable energy as well as other to generate electricity is a leading government uses for most types of electricity generation. source of greenhouse gases and other renewable energy projects. 4 Purpose of this guide Most renewable energy projects that generate electricity are subject to the approvals described in this guide, however, The purpose of this guide is to explain the updated there are a few exceptions (see list on page 10). Renewable approvals process for renewable energy projects to people energy technologies that don’t generate electricity, such thinking about undertaking small-scale projects themselves as geothermal heating/cooling (also known as earth energy and others with an interest in renewable energy in a non- systems) or solar thermal water or space heating are not technical way. Ontario’s new rules for these projects go covered here. The Ministry of Energy and Infrastructure’s hand-in-hand with the province’s other renewable energy and website (www.mei.gov.on.ca) provides information on these conservation initiatives. Information on Ontario’s leadership and other similar types of projects. in sustainable energy is available at the Ministry of Energy This guide provides an overview of the approvals process and Infrastructure’s website (www.mei.gov.on.ca). and requirements. Applicants and others interested in This guide outlines the new and improved process for approvals are also encouraged to refer to technical guides provincial approvals. The process coordinates approvals and related regulations and requirements. across government ministries to encourage renewable The requirements for other levels of government for a energy while ensuring the environment, health and natural renewable energy project include federal laws and municipal resources are protected. This guide looks mainly at the building permits under the provincial Building Code Act, provincial rules for developing renewable energy projects 1992. Conservation authorities, which manage the major that use wind, solar and bio-energy to generate electricity. watersheds in southern Ontario and parts of northern As outlined in the waterpower section, all waterpower Ontario, may need to give approval for activities that may projects currently do not require an REA, and will continue affect the control of flooding, erosion, dynamic beaches to follow the requirements of the Environmental Assessment or pollution. In addition, the Ontario Energy Board, which Act and other existing approval processes. regulates the province’s electricity and natural gas sectors, 5 may have additional licensing, notice and/or approval Section 2 outlines the key steps applicants must take to requirements. This guide touches on these additional prepare their project for approvals, what projects are exempt requirements but does not describe them in detail. It is the from the Renewable Energy Approval (REA) and what is applicant’s responsibility to meet all relevant requirements. required for a complete submission for provincial approvals. Information is available on the Ontario Energy Board and Section 3 describes the consultation requirements Independent Electricity System Operator’s websites for renewable energy projects and the importance of (www.oeb.gov.on.ca and www.ieso.ca). consultation to the success of a project. Section 4 discusses project requirements related to areas Structure of the guide of natural heritage, cultural heritage, water protection, Renewable energy projects, like other forms of development, provincial plan areas, endangered species and fish and wildlife are subject to a regulatory and approvals process that deals conservation. with matters such as advising people living nearby and Sections 5, 6, 7 and 8 set out requirements based on project ensuring sensitive environmental areas are protected. Each size and scope of wind, solar, bio-energy (anaerobic digestion, type of renewable energy project – wind, solar, bio-energy biofuel, thermal treatment, biogas) and water projects. (anaerobic digestion, biofuel, thermal treatment, biogas) Section 9 provides a list of contacts for applicants and water – also has characteristics that can give rise to and interested parties to learn more about matters technology specific requirements. As well, some proposed surrounding renewable energy generation projects and project locations may have site-specific approval needs. project requirements. The guide is laid out to reflect both the overall approvals process and the differing requirements of various renewable energy technologies as follows: 6 oVERViEW oF tHE PRoVinciAL APPRoVALS PRocESS 7 2. Overview of the ƒ Renewable energy projects are no longer subject to the Environmental Assessment Act (except for waterpower provincial approvals and transition projects). However, the protections built into the Environmental Assessment process continue in process the REA process ƒ Rules regarding setback distances from residences Ontario’s new approach to approving renewable energy where people reside and other sensitive receptors, as projects offers benefits to project applicants and local well as environmental features, now apply consistently communities while continuing to ensure rigorous protection across the province of the natural environment, cultural heritage and public ƒ Renewable energy projects are no longer subject to land health and safety. This new approach and updated rules use planning instruments under the Planning Act (e.g. reflect changes to regulations under the Environmental zoning by-laws and official plans) Protection Act, Environmental Assessment Act and The Ontario Power Authority (OPA) will issue contracts under Environmental Bill of Rights, 1993 (for which the Ministry the province’s new Feed In Tariff (FIT) program to purchase of the Environment is responsible), Planning Act (which is power at guaranteed rates over 20 years from wind, solar the responsibility of the Ministry of Municipal Affairs and and bio-energy facilities. Waterpower facilities will have Housing) and to policies and requirements set by the Ministry guaranteed rates over 40 years. of Natural Resources, under various pieces of legislation. It does not, however, address requirements from the federal As well, the province has set-up the Renewable Energy government or other agencies. Facilitation Office (REFO), for one-window access to help developers, communities and homeowners obtain Those familiar with the previous provincial framework information on creating renewable energy projects in Ontario. for renewable energy approvals will note the following The REFO can help navigate through the new approvals significant differences: 8