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