Environmental Assessment Requirements for Electricity Sector Projects: O.Reg. 116/01
Contents |
Background
With the introduction of competition into Ontario’s electricity marketplace, many new electricity projects will need approvals from MOEE and other ministries in the coming years. But, as the Environmental Commissioner of Ontario noted earlier, without new regulations, new private sector electricity projects would not be subject to the Environmental Assessment Act (EAA). Then, in 2001, MOEE made a new regulation that changes the way in which the EAA would apply to electricity generating and distribution projects. Ontario Regulation 116/01 sets out what kinds of projects are subject to the EAA. (An accompanying regulation, O.Reg. 117/01, is an administrative regulation, needed to change references to Ontario Hydro in other regulations.)
O.Reg 116
The key effect of O.Reg. 116 is to put in place a new kind of environmental assessment process under the EAA for screening certain proposed electricity projects. The process is to be carried out by proponents and will apply to projects that are expected to have significant environmental impacts due to their technology or size (see table below). Assessments or screenings under the EAA will now be triggered by thresholds that approximate the environmental significance of electricity projects rather than by whether the proponent is from the public sector or from the private sector.
The new process exempts proponents from the requirement of carrying out formal environmental assessments as long as the screening process is followed. If the old process had been maintained, proponents not captured by the EAA might have proceeded to develop a project on the understanding that the EAA did not apply, only to find their project halted later because of a request from the public to make the project subject to the Act. (The Minister of Environment and Energy can still make a project subject to the EAA, based on concerns about the project’s size, environmental impact, or the public’s concern over the project.)
A primary effect of O.Reg.116/01 is to ensure electricity projects can proceed with minimal delay, assisting with the development of electricity market competition by providing more regulatory and process certainty. This enhanced regulatory certainty, combined with opening the market to competition, will bring many changes to Ontario’s electricity generating sector. The new EA process will influence the size and type of projects that get built in the new “deregulated market.” For example, new coal-fired generation will not be encouraged by the new system, partly because it would still require a full environmental assessment.
To proceed with a project, a proponent determines the category of the proposed project, using the thresholds. Based on this, the proponent will have a relatively clear idea about the depth of review and level of public and agency consultation to be undertaken.
Thresholds and categories include:
Thresholds
| Electricity Project Type | Category A: No EAA requirements | Category B: Environmental Screening Process | Category C: Individual EA |
|---|---|---|---|
| Solar photovoltaic | all | N/A | N/A |
| Wind turbines | < 2 MW | > 2 MW | N/A |
| Hydroelectric facilities | N/A | < 200 MW | > 200 MW |
| Natural gas | < 5 MW | > 5 MW | N/A |
| Oil | < 1 MW | 1 to < 5 MW | > 5 MW |
| Coal | N/A | N/A | All |
Note: This table includes only select examples of thresholds and project types. See source for complete listing.
Source: Guide to Environmental Assessment Requirements for Electricity Projects, MOEE
Categories
A - No EAA Requirements
- Projects with relatively benign environmental effects would not require approval under the EAA unless designated by the Minister of Environment and Energy (these projects would not be listed in the regulation). MOEE indicates that proposals for these projects will be posted on the Registry for comment.
B - Environmental Screening
- Projects/activities with potentially mitigable environmental effects, which would be screened to confirm minimal effects or appropriate mitigation measures. Depending on the results of the screening, these projects may be subject to an individual environmental assessment.
C - Individual Environmental Assessment
- Projects/activities that, because of their known significant environmental effects, warrant an individual environmental assessment under the EAA.
Many proposed projects are likely to be slotted into Category B, which will entail the use of the new screening process. In short, the proponent of a project will screen the project against a set of criteria in order to identify its environmental impact, which in turn will assist in the resolution of any resulting issues. In terms of environmental assessment requirements, O.Reg.116/01 tends to favour smaller and more environmentally benign projects and demand much more scrutiny of larger projects, as well as those involving coal, oil, hydroelectricity and nuclear power.
ECO Comment
Commenters raised a wide array of issues during the two comment periods for this proposal when it appeared on the Environmental Registry. These include issues about process, technology, threshold levels and interaction with other regulatory and legislative processes. (For a fuller description, see the review of this decision in the Supplement.) MOEE deserves credit for attempting to balance the objectives of proponents with the views of the public and the imperative of protecting the environment, and its approach to designing the new regime displayed adaptability and sensitivity to a range of concerns.
However, MOEE’s objectives of making the new process “efficient and fair” and of meeting the related stakeholder preference for a streamlined approvals process were not totally realized. For example, MOEE decided to keep separate approval processes for the successor companies of Ontario Hydro, while applying the screening process to the same types of projects brought forward by other proponents.
Finally, the ECO remains concerned about certain aspects of the Category B environmental screening, which is expected to be the most frequently exercised process of the three, capturing most of the significant electricity projects proposed in the years ahead. The permits for such projects will not be subject to the public notice, comment and appeal provisions of the EBR. This gap may curtail public appeal rights on future electricity project decisions.
This is an article from the 2001/02 Annual Report to the Legislature from the Environmental Commissioner of Ontario. Click here for more information on the official document and its release.
