Posted by Zoë Thoms and Andrew Lord
Bill 150, Green Energy and Green Economy Act, 2009 (the "Act") passed first reading Monday, February 23, 2009 in the Legislature of Ontario. As expected, the proposed Act is broad in scope and ambitious in the extent of legislative change it will implement. The Act has the potential to affect virtually everyone on the province, whether you are a homeowner, a renewable project developer, a local distribution company, a municipal planner, or a member of an First Nations community.
The full text of the proposed Act is available online. This posting provides an overview of the proposed Act. References in brackets refer to the bill as posted online.
In introducing the Act, Minister of Energy and Infrastructure, George Smitherman, stated that the purpose of the Act is to enhance Ontario's "green economy" and reduce the province's impact on the climate. The Act has two equally important thrusts:
1) making it easier to bring renewable energy projects to life, and
2) fostering a culture of conservation by assisting homeowners, government, schools and industrial employers to transition to lower and more efficient energy use.
The Act repeals the Energy Conservation Leadership Act, 2006 and the Energy Efficiency Act. Many of the provisions of those two repealed statutes are re-enacted in the Act. The Act further proposes amendments to 15 other statutes, such as the Electricity Act, the Environmental Protection Act and the Planning Act.
The "Green Economy"
Minister Smitherman predicts that the Act would create an estimated 50,000 jobs in its first three years in the areas of construction, trucking, and engineering. Architects, contractors and installers will see more opportunities as they're asked to retrofit buildings for energy efficiency. The proposed legislation would also enable the government to set domestic content requirements for renewable energy projects, aimed at creating those job opportunities in Ontario (Schedule B, s. 7). As well, if passed, the legislation would provide for First Nations and Métis communities to build, own and operate their own renewable energy projects (Schedule B, s. 2).
Expanding Renewable Energy
Some key measures aimed at expanding renewable energy in the province, include:
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creating a feed-in tariff regime - a pricing system for renewable energy - that will guarantee rates and help spark new investment in renewable energy generation, help increase investor confidence and access to financing for renewable energy projects (Schedule B, s. 7);
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establishing a streamlined approvals process, and provide service guarantees for renewable energy projects (Schedule G, s. 4);
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establishing a right to connect to the electricity grid for renewable energy projects (Schedule B, s. 8);
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appointing a Renewable Energy Facilitator to offer one-window assistance and support to project developers in order to facilitate project approvals (s. 10);
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establishing, for the first time, province-wide standards for renewable energy projects - like standardized setback requirements for wind farms (Schedule K, ss. 1-3);
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helping local communities to build and operate their own renewable energy generating facilities, including support for community projects (Schedule I, ss. 1-2);
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implementing a smart power grid in Ontario, making it easier to connect renewable energy generation to the system (Schedule B ss. 1, 4, 5; Schedule D, s. 8); and
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offering incentives for small scale renewables, such as zero or low interest loans to assist homeowners in financing the capital cost of residential renewables (Schedule C, s. 6).
Supporting a Culture of Conservation
If passed, the Act (and related policy initiatives) would support a culture of conservation among consumers, public institutions and industry through a series of initiatives, including:
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making energy efficiency a key purpose of Ontario's Building Code, establish a fixed review period of every five years to identify further opportunities to increase energy conservation and establish an advisory council to provide energy efficiency advice to the Minister of Municipal Affairs and Housing (Schedule J, ss. 1-2);
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Greening Ontario government and broader public sector buildings/facilities, and establish Leadership in Energy and Environmental Design (LEED) Silver as the standard (s. 9);
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requiring the development of energy conservation plans throughout the broader public sector, including municipalities, universities, colleges, schools and hospitals (ss. 5-7);
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establishing North American leading energy efficiency standards for household appliances, including efficient use of water. Energy STAR would be standard so household appliances sold in Ontario achieve continued reductions in energy use (ss.13-14);
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mandating home energy audits prior to sale of homes (s. 2);
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making more energy-efficient products more available to more consumers (s. 3);
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establishing mandatory electricity conservation targets for local distribution companies and empowering them to better deliver conservation programs to consumers (Schedule D, s. 7);
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increasing productivity in the Ontario industrial sector through energy efficiency programs and demand management plans (s. 5); and
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requiring targeted conservation measures to protect low-income Ontarians (Schedule B, s. 6).
Further Consultation
As the proposed legislation and its implementation move forward, the government plans to hold consultations with First Nations and Métis communities and stakeholders including business, environmentalists and municipalities.
