Report to: General Committee                                                        Report Date: June 22, 2009

 

 

SUBJECT:                          An Update on Bill 150 – The Green Energy and Green Economy Act, 2009

PREPARED BY:               Viive Sawler, Manager, Markham Energy Conservation

                                            Office (MECO)

 

 

RECOMMENDATION:

 

THAT the Report titled, “An Update on Bill 150 – The Green Energy and Green Economy Act, 2009” (GEA) be received;

 

THAT Council supports the intent of the GEA to further the development of renewable energy projects and to continue to create a culture of conservation;

 

THAT Staff continue dialogue with other municipalities and the province to further understand the implications for municipalities of the GEA and the forthcoming regulations, currently under development;

 

THAT Staff report back to Committee as more information becomes available.

 

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (HR, Strategic, Affected Units)                                   6. Attachment(s)

PURPOSE:

The purpose of this Report is to provide a summary of Bill 150, the Green Energy and Green Economy Act, 2009.

 

BACKGROUND:

On February 23, 2009, the Ontario Government introduced Bill 150, the Green Energy and Green Economy Act, 2009 (GEA) which received Royal Assent on May 14, 2009. 

 

The GEA is intended to establish Ontario as a North American leader in building renewable energy, encouraging energy conservation and creating green jobs.  The Act results in Amendments to the Building Code, Electricity, Energy Efficiency, Environmental Protection, Planning, Conservation Land, Green Belt, Places to Grow Acts, amongst several others. 

 

Bill 150 is enabling legislation that provides new tools and Ministerial powers to lower the barriers to delivering renewable energy initiatives and conservation programs.  The use of clean and renewable energy sources including wind, water, solar, biomass and biogas is not only important for the future of our environment but will also support future economic prosperity.  The implementation details are now being rolled out through regulations.  To-date, draft regulations relating to the removal of local barriers to renewable energy installations and proposed content for the Ministry of Environment’s Renewable Energy Approval regulation under the Environmental Protection Act have been posted to the Environmental Bill of Rights (EBR) Registry.

OPTIONS/ DISCUSSION:

OVERVIEW OF THE GEA

There are two key thrusts to the GEA – development of renewable generation and a continued and strengthened emphasis on conservation and demand management (CDM). 

 

Development of Renewable Generation

The GEA is focused on fostering the growth of renewable energy projects and removing perceived barriers to, and promoting opportunity for these projects.  The GEA and the forthcoming regulatory changes and policies to achieve this include:

 

·         A Renewable Energy Facilitation Office to assist proponents of such projects with approval and procedural requirements at both federal and provincial levels of government and ensure the approval process is streamlined

·         Obligation by transmitters and distributors to provide mandatory access and connection to the electricity grid for renewable projects that meet technical, economic and other regulatory requirements

·         Creation of a Feed-in Tariff (FIT) Program designed to procure energy from renewable energy sources.  The FIT Program provides varying levels of incentives depending on the type and size of the renewable energy project (Appendix A)

 

Conservation and Demand Management

The second thrust is on conservation and demand management (CDM), an important component of the GEA as the cheapest kilowatt is a saved kilowatt (kW).  This is one of the main tenets of Bill 150 and consequently, the theme of CDM runs throughout the amendments to the various acts.  Some of the requirements included in the GEA to further the conservation agenda include:

 

·         Energy audits

·         Building code amendments

·         Efficiency standards for appliances

·         Requirement for public agencies to prepare Energy Plans

 

Reporting on the results of these efforts will now be the responsibility of the Office of the Environmental Commissioner of Ontario (ECO).

 

BENEFITS OF THE GEA

The GEA supports and prioritizes the implementation and expansion of clean and renewable energy sources, such as wind, water, biomass, biogas, biofuel, solar energy, geothermal energy, etc.  Phasing out coal is the single largest greenhouse gas (GHG) emission reduction initiative in Canada and will reduce GHG emissions by up to 30 megatonnes.  Replacing coal with clean sources of energy is a key step in combating climate change.  An increased emphasis on renewable energy sources in our power supply mix will reduce air pollution and GHGs.

 

Another benefit is that the GEA represents an opportunity to support local community power generation which can stimulate local economies by keeping profits in the community and creating work for local residents.  It also eliminates the need to extend transmission lines and reduces losses of electricity often associated with those lines. In addition, being situated nearby where power is produced, there is also an increased awareness of how energy is produced and consumed, thereby furthering the culture of conservation. Ultimately, the GEA provides us with the opportunity to determine the future of energy within our own communities.

 

The law also allows municipalities to generate electricity without having to set up a separate legal entity and restores the right of local distribution companies to also become generators, as they once were before deregulation. Energy co-ops are encouraged and legal barriers obstructing their formation have been removed under the new legislation.

 

While discussions with respect to the implications of the GEA have been taking place between the Town of Markham, PowerStream and Markham District Energy Inc. through the Boards of the Town’s affiliate entities and the Markham Enterprises Corporation (MEC), further thought and strategic thinking around the coordinated efforts, types of projects to invest in and partnership opportunities available will be required.

 

IMPACTS TO MUNICIPALITIES

The key impact to municipalities is with respect to the streamlining of the approvals process.  The legislation proposes changes to both the Planning Act and Building Code Act which will minimize the role that municipalities have in regulating these projects.  The province is proposing a one-window approvals process and standardized requirements for renewable energy projects.

 

The most significant changes are the elimination of any requirement to comply with a municipal official plan, zoning by-law or site plan approval.  The GEA also renders interim control by-laws ineffective against renewable energy undertakings.[1]  There are however, some controls that are not affected including tree cutting by-laws, or ravine control by-laws.  Property standards by-laws are not affected either. Nor does the GEA preclude application of the Building Code Act and need for building permits.

 

The intent of the new Provincial approval process is to reduce time and effort to obtain approvals and to permit development of renewable energy generation projects that might otherwise have been impossible.  The Act will allow for environmental standards and setbacks to be identified in regulation and will incorporate stakeholder consultation including a uniform process for proponent consultation with municipalities on site requirements and local infrastructure.

 

The draft regulations relating to Removing Local Barriers to Renewable Energy Installations (Appendix B) and the proposed content for the Renewable Energy Approval Regulation under the Environmental Protection Act (Appendix C) regulation have been posted on the Environmental Bill of Rights Registry (www.ebr.gov.on.ca - #010-6455 and #010-6516 respectively).

 

Staff will continue to work with appropriate departments across the Town and dialogue with other municipalities, the Association of Municipalities of Ontario and with the province as further details relating to these regulations become available.  The Town Staff will report back in the future with more information.

 

CONCLUSION

The GEA represents a tremendous opportunity for all communities across the Province to pursue renewable energy projects and continue to further our priority of creating a culture of conservation and encouraging everyone to reduce their energy consumption at home, at work and in their everyday lives.  Overall, the GEA and the consequential modifications to various other Provincial Acts or statutes are positive in nature as they will support the development of renewable energy projects through new financial incentives and a streamlined regulatory framework.

 

ALIGNMENT WITH STRATEGIC PRIORITIES:

The GEA aligns with the “Environment” priority under BMFT.  The GEA’s intent is to foster the development of renewable energy projects and further the success in creating a ‘culture of conservation’.  These two thrusts will positively impact Greenhouse Gas Emissions in Markham and support our commitment to a Climate Change Action Plan.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Planning

 

RECOMMENDED

                            BY:    ________________________          ________________________

                                      Viive Sawler, Manager,                      John Livey, CAO        

                                      MECO

 

 

 

ATTACHMENTS:

Appendix A

Proposed Feed-in Tariff Program - Revised Price Schedule, Ontario Power Authority, May 12, 2009

 

Appendix B

Information Notice - Removing Local Barriers to Renewable Energy Installations – Proposed Regulation, May 12, 2009

 

Appendix C

Proposed Content for the Renewable Energy Approval Regulation under the Environmental Protection Act, June 9, 2009



[1] Energy@Gowlings Newsletter – June 15, 2009 – Volume 7, Number 6.