Ontario’s Proposed
Green Energy and
Green Economy Act, 2009
Sharon S. Wong
Partner
www.blakes.com
Current Status
• The legislation was introduced in
Provincial Legislature on February 23,
2009.
• Green Energy and Green Economy Act,
2009 was enacted on May 14, 2009.
• The legislation that became law on
May 14 has only 3 sections – as yet, no
substantive changes to the law.
www.blakes.com
Current Status (cont’d)
• The substantive changes to the law are
contained in a series of 12 Schedules
attached to the Act.
• As yet, none of the substantive changes in
the Schedules are in force.
• The various changes will likely be
proclaimed in force at various times.
www.blakes.com
Current Status (cont’d)
• Assuming all of the Schedules to the Green
Energy and Green Economy Act, 2009 are
eventually proclaimed into force:
• It will create a new Green Energy Act and
amend more than 15 existing statutes
• The Bill lays the foundation for specific
programs that are to be implemented by
regulation or directives to be issued by Minister
of Energy and Infrastructure
www.blakes.com
Stated Goals
Green Energy and Green Economy Act
i. Create an environment conducive to the
development of more renewable energy
projects (solar, hydro, wind, biomass, biogas,
landfill gas)
ii. Create a culture of conservation in Ontario
Goals to be achieved as follows:
www.blakes.com
Initiatives for Fostering
Renewable Energy Projects
1. Creation of Feed-In Tariff Program
• Ontario Power Authority to develop a
government procurement process for energy
from renewable sources, providing standard
program rules, standard contracts and standard
pricing for different classes of generation
facilities
• Expected to replace current system of RFPs for
utility-size projects and Standard Offer Program
for small renewable projects
www.blakes.com
Initiatives for Fostering
Renewable Energy Projects (cont’d)
1. Creation of Feed-In Tariff Program (cont’d)
• Proposed tariffs announced by OPA are
significantly higher – e.g., currently Standard
Offer for Wind Power is $110/MWh, proposed
Feed-in Tariff is $135/MWh
• May cause migration of renewable projects to
Ontario from other jurisdictions
www.blakes.com
Initiatives for Fostering
Renewable Energy Projects (cont’d)
2. Streamlined Approvals
• Changes to the Environmental Protection Act
will transfer renewable energy projects from
existing environmental approval and permitting
requirements, and instead require projects to
obtain a comprehensive "renewable energy
approval" from the Ministry of the Environment.
• Amendments to the Planning Act will exempt
renewable energy projects from various by-law
and permit requirements.
www.blakes.com
Initiatives for Fostering
Renewable Energy Projects (cont’d)
3. Renewable Energy Facilitation Office
• Ministry of Energy and Infrastructure to create a
new office with the following objects:
– To facilitate development of renewable energy
projects
– To assist proponents with satisfying provincial
approvals procedures
– Alert proponents to federal requirements
www.blakes.com
Initiatives for Fostering
Renewable Energy Projects (cont’d)
4. Mandatory Connection to the Grid
• Electricity Act amended to require transmitters
or distributors to connect renewable generators
to the electricity grid if the project satisfies
requirements to be set out in regulations
• Transmitters/distributors also required to
provide “priority connection access” to
renewable projects that meet requirements in
regulations
www.blakes.com
Initiatives for Fostering
Conservation
1. Minister of Energy May Issue
Directives to the Ontario Energy
Board for the Promotion of a Smart
Electricity Grid for Ontario
•
Definition of Smart Grid very broad – this could
revolutionize our system
www.blakes.com
Initiatives for Fostering
Conservation (cont’d)
“Smart Grid” Definition
For the purposes of this Act, the smart grid means the advanced
information exchange systems and equipment that when utilized
together improve the flexibility, security, reliability, efficiency and safety
of the integrated power system and distribution systems, particularly for
the purposes of,
(a) enabling the increased use of renewable energy sources and
technology, including generation facilities connected to the distribution
system;
(b) expanding opportunities to provide demand response, price
information and load control to electricity customers;
(c) accommodating the use of emerging, innovative and energy-saving
technologies and system control applications; or
(d) supporting other objectives that may be prescribed by regulation
www.blakes.com
Initiatives for Fostering
Conservation (cont’d)
Possible Smart Grid Projects
• Smart Meters that measure time of use for
variable hourly rates for homes
• Smart Meters are also a gateway for electric
cars and home generation from solar and wind
• Technologies that allow variable production from
wind and solar to be stored for use during peak
hours
www.blakes.com
Initiatives for Fostering
Conservation (cont’d)
2. OEB Required to Foster Electricity
Conservation
• The OEB Act requires the OEB to be guided by
specified objectives when carrying out its
regulatory responsibilities
• Changes to the OEB Act would add three more
objectives: 1) promote conservation of
electricity, 2) facilitate implementation of a
smart grid, 3) promote use of electricity from
renewable sources
www.blakes.com
Initiatives for Fostering
Conservation (cont’d)
3. Distributor Conservation Targets
•
•
The Minister of Energy will have the power to
issue directives to the OEB to set conservation
and demand management targets for individual
electricity distributors (e.g., Toronto Hydro) as a
condition of their licence
Object is for distributors to develop local
conservation programs
www.blakes.com
Initiatives for Fostering
Conservation (cont’d)
4. Building Code Amendments
•
•
•
Energy and Water conservation to be an
explicit purpose of the Building Code Act
The Building Code to be reviewed within 6
months and thereafter every 5 years with
reference to energy conservation standards
Establishment of the Building Code Energy
Advisory Council
www.blakes.com
Initiatives for Fostering
Conservation (cont’d)
5. Energy Efficiency Requirements
•
•
Public Sector facilities required to meet
standards to be set out in regulations – likely
Leadership in Energy and Environmental
Design (LEED) silver standard
Requiring the development of energy
conservation plans throughout the broader
public sector, possibly including municipalities,
universities, colleges, schools and hospitals
www.blakes.com
Initiatives for Fostering
Conservation (cont’d)
5. Energy Efficiency Requirements (cont’d)
•
•
Establishing energy efficiency standards for household
appliances, including efficient use of water; energy
STAR would likely be the standard so household
appliances sold in Ontario achieve continued
reductions in energy use
Requirement that sellers of real property (including
homes) provide energy audit information to the buyer –
but now amended so buyer can waive the requirement.
www.blakes.com